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Misc. 34

Fl

',AL RESERVE BANK
NEW YORK

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows :
York, March 1, 1917.
Benjqmin Strong,
4100 ::ontview Boulevard,
Denver, Colo.

Following telegram received from Paris today: Quote.
Recevens votre telegramme annoncent decisionYederal Reserve
Board. Stop. Semmes bien sises voir realiser projet dent le
principe a ete concerne entre i. Strong et moi lore ue son
dernier voyage a Paris. Stop. Vous remercions vivement
de
votre emoresEement a nous aviser du succes de nos cothmunes

demerches. Stop. Signed, Georges Pallain."
RHTPCM
Charge Federal Reserve Bank,
Equitable Building.
9-2




R. H. Treman.

FEDERAL RESERVE BANK
OF NEW YORK

March 1st, 1917.

Dear Governor

Stro*15

1917

Government Bonds.

Governor Rhoads expects to be here on Saturday, as
well as Governor Aiken and I assume we will discuss the question of purchase of United States 2

bonds.

I suppose for

the present, until we know more about the proposed issue of
new bonds by the Government, that we should do nothing towards the purchase of 2
version.

bonds in the open market for con-

Undoubtedly, if the new issue is made, we will

have an opportunity during the year to pick up 2 % bonds
below par.

If you have any additional ideas on the subject,

kindly advise me.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK
March 1st, 1917.

Dear Governor Strong:

State Banks and Trust Companies.

I have been talking with Jr. Jay about ways and
means for securing expressions from state banks which are
now members of the Reserve System as to their experience.
I think I shall try and enlist the Ithaca Trust Company at
home to send out some letters explaining that they have,
as is true, considered joining the Reserve System, and they
can very properly ask such banks for testimony as to their
experiences in the System.

I can also enlist George Allen who is now Secretary
of the State-Bank Section of the A. B. A., and feel confident
that he will write these letters for me also if I desire him
to do so.

In that way we can secure some testimony which

may be of use in our campaign which should be developed later,
but on the other hand, the present time is not opportune to
push this in my judgement.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 :..icntview Boulevard,

Denver, Colorado.

RHT/VCM



FEDERAL RESERVE BANK
OF NEW YORK

March let, 1917.

Dear Governor Strong:
Investments.
.

I am pleased to note in yours of February 21st that you

are satisfied with the line of bills we are carrying.

Our pol-

icy is not to buy any municipal warrantsat the present time.
Mr. Cann's leaving will necessitate our securing another

man to work with Mr. Kenzel and I feel that they should keep in
touch with each other so that in case of illness or otherwise the
other would be in a position to carry on the work.
I am trying to keep in touch with Kenzel on these purchases and will advise him to keep well informed as to the makers
and acceptors of the bills.

In this connection, Mr. Jay and I

had an hour's visit with Mr. James Brown of Brown Brothers, who
made another statement to us and when Rhoads and Aiken are here
I hope to arrange to have him make a statement to their banks
along similar lines for their information.
6incerely yours,

t*AAALLA____
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCIA




FEDERAL RESERVE BANK
OF NEW YORK

MAR5

191/

March let, 1917.

Dear Governor Strong:

I have been talking with Mr. Rovensky to-day about securing an expert young man who can handle our foreign exchange'
matters, at least temporarily until your return and he has promised to look up such a man. for me.

I shall probably talk with

Mr. Kent a little about it also, but assume that for the present
we do not need a high salaried expert capable of handling the
matter without consultation, but rather at present one who has
had special training in foreign exchange matters and is familiar
with the customs of foreign banks and who could under such advice
as we would secure from Mr. Kent or Rovensky on important matters,
handle it until your return.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 MontviewBoulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 1st, 1917.

MAR5

1911

Dear Governor Strong:
Directors Meetirg.

All the members were present yesterday except Mr. Palmer.
After the usual routine business, there was some discussion as to
the National Butchers er. Drovers Bank, to which bank we are loan-

ing $300,000 to $400,000.

They seem to be jr better condition

than they were two or three years ago, but we are having Mr. Cann
with two others of our force at the bank going over their matters
more in detail, so we will be in a position to judge of their
loans.

No change was made in rates of discount and Governor
Aiken advised me yesterday that they would probably reduce their

rate today to conform to ours as they made an advance about two
or three weeks ago and since then the Boston bills have been coming to New York to secure rates of 3 to 3* %, instead of the Boston
rate of 3* to 3i %.

We reported the status of negotiations with the Bank of
France up to date.

I stated that as there were some discrepancies in my
letter to the Reserve Board in re cables to England, that next
week I would like to submit a report correcting same to make our
files in conformity with the facts.




^to
FEDERAL RESERVE BANK OF NEW YORK

cNiFi

2

Governor Strong.

2/1/17.

I also reported the recommendations of the Committee
of Governor Strong and "Judge Curtis" in re emergency preparation and read them my answer as giving the facts which, after
being received, they discussed somewhat and there seemed to be
a general feeling prevailing that we were giving the situation
proper attention.

Mr. Cann's resignation was accepted and the Secretary
insturcted to prepare a suitable letter expressing appreciation
of his work.

We are now seeking another credit man and also

will look up the question of a foreign exchange official.
The Board, on Mr. Locke's motion, suggested keeping
up to approximately ,100,000,000 of Federal reserve notes in
New York, of which $25,000,000 might be in the Subtreasury.

The

Federal Reserve Vault will take care of about $92,000,000.
Mr. Saunders was made a member of the Executive Committee in place of Mr. Towne.
The meeting adjourned for two weeks, subject to call,
however, if conditions changed.
With best regards, I remain,
Sincerely yours,

Deputy G-IV-67717O-r.

Benjamin Strong, Esq,,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK
114)4 .
MAR'S

March 1st, 1917.
1917

Dear Governor Strong:

Accumulation of Gold.

Regarding the accumulation of gold, would state that
we are working constantly on this matter and day before yesterday Mr. Jay had a long talk with Mr. Bovee who asked if we
could store some surplus gold in our vaults for the Subtreasury
as their space was practically all taken up now.

We are going

into the matter further but personally I should prefer to purchase additional gold bars even if we accumulated t75,000,000
or more rather than to have our vaults filled up with gold belonging to the Treasury for the care of which we would be responsible.

We are constantly at work on the gold situation and
if you think it unwise to accumulate as much as t75,000,000,
please advise.

My best regards.
Sincerely yours,

fe,g
Deputi-Z-4Nli:nor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March let, 1917.

Dear Governor Strong:

Amendments to the Federal Reserve Act.
I understand that they are having much trouble in Washington concerning the passage of the proposed Reserve Act amendments.

They have finally lined up the Rules Committee of the

House which hassgreed this week to send their consideration, but
frankly, at present it seems extremely doubtful that they will
get through this session.

This may not be an unmixed evil as

there are many bankers who feel that it would be well if the Reserve Board did not push so fast in these changes but let them
come more gradually And allow those affected to see the wisdom
of their enactment.

From various sources of information, I am impressed
with the strain under which the members of the Federal Reserve
Board are now working and am taking the liberty of suggesting
to you that in your correspondence with they that for the present
you put things mildly and not raise issues unless you think it imperative to do so, as I believe thIA after Congress adjourns and
they have time for rest things will receive better consideration
as they will be under less irritation and pressure.




FEDERAL RESERVE BANK OF NEW YORK

To

"2

Governor Strong.

3/1/17.

I expect that one of the points about which Aiken desires
to confer with Rhoads and me on Saturday is the apparent change
in policy which has taken place in Washingtpn and after that interview can perhaps give you some light on their view.
My very best wishes.
Sincerely yours,

Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




Form 1294

WESTE

'VICE
ssage

der

SYMB°
Nite

Night Letter

Day Message

NL

Day Letter

TEL

If none of these three symbcls
appears after the check number of
words) th Is Is a day message. Otherwise its character is Indicated by the

AM

Mann

BiiANQH OFFICE.

Nile

Night Lotter

If none of those three symbol
appears after the check (number of
words)this Ise day message. Oth erwise its character is indicated by the

NEWCOMB CARLTON, PRESIDENT

symbol appearing after the check.

Blue

Night Message

Blue

Night Message

UNION

CLASS OF SERVICE SYMBOL

symbol appearing after the check.

230/ %. L'uu

YORK 2545.
32D AG 60 BLUE MAKIONS
F NEW YORK NY MAR
BENJAMIN STRONG

`-.3

c./

1 445 1917
C

.

./.

4100 MTVIEW ST DENVER COLO

Act Teener,

.

4*.v.

FOLLOWING TELEGRAM RECD
FROM PARIS TODAY QUOTE RECEVENS VOTE
k.4.t.t.4Q , P4,0, /30,,,,,)
et-t-e4:44-11/4.
144"4141"4
4-4-('1,44447ELEGRAMM ANNOUNCMENT DECISIOU FEDARAL RESERVE BOARD STOP SOMMES
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ENTRE M STRONG ET MO! LORS DE SON DERNIER VOYAGE A PARAS STOP
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VOUS REMERC IONS VIVEMENT DE VOTRE EMPRESSAENT A
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AVISER DU SUCCES DE

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COMMUNES DEMARCHES STOP

NOS

GEORGES PALLAIN




NOUS

01:01,-

R H TREMAN
343PM

SIGNED

FEDERAL RESERVE BANK
OF NEW YORK

March 2nd, 1917.

Dear Governor Strong:
Preparedness.

Answering yours of February 23rd, I am glad that you
approved of the plans we had already made before we received
your special communication.
In addition to what I wrote yo

a description of the Directors Yeetin

,

yesterday in giving
I want to add that

Curtis is looking after the perfecg of police arrangements
and equipment through some of th/other officers so I think

you can rest assured that thesp matters are all being careful-

/

ly considered and will be fo lowed up.
My very best re

rds.

Sincer ly yours,

Deputy Governor.

Benjamin Strong, E q.,
4100 Montview Bo levard,
Denver, Colora o.
RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 2nd, 1917.
Dear Governor Strong:

Regarding our gold accumulation, we have sent all the
German coin we have over to the Assay Office for remelt.

Yes-

terday, we had inquiries from one or two parties about the French
coin and made numerous inquiries from different ones as to whethus

er our selling French coin would aectAin any way detrimentally
and were advised by Mr. Rovensky

.

James Brown, Mr. Hamilton

and others that they see no regtson why we should not sell it as

a commercial transaction.

Roveneky felt ±It we should hold some English, French
and possibly some Germanicoin as a matter of accomodation, from
one standpoint, but mo e because of ecomomic waste in remelting,
as it will undoubted

be needed as soon as peace is declared

because so much coii has been withdrawn from circulation and other
amounts remelted.
We ar,/ receiving bids to-day for four millions plus of

French coin

and have assigned to Mr. Jay the question of accumu-

lating gold b/ars, etc., and he will undoubtedly write you in detail.
With kind regards, I remain,

Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.


http://fraser.stlouisfed.org/
R.111/VCM
Federal Reserve Bank of St. Louis




FEDERAL RESERVE BANK
OF NEW YORK
Larch 2nd, 1917.

Dear Governor Strong:

Answering yours of February 21st in re Federal
reserve bank drafts would state that I am

scuring a num-

ber of suggestions from the various Governors and having
them tabulated and condensed by Lr. Hendricks in preparation for the meeting of the Governors/Committee to be held
on or about March 15th.

I have advised Governot Harding that we were contemplating having this Governors Conference about the middle
of March.

From a letter setyt out by Governor Harding and a
talk he had with Mr. Woodwal4 on Sunday he intimated that ow-

ing to the unsettled condi ions and the fact that possibly
they may change overnight

heir posts and that they should not

Governors to remain at
come on from the West

the Board thought it wise for the

nd South for a conference at the pres-

ent time.

Aiken e idently feels that there is quite a change
in the attitude ofithe Reserve Board, but I am inclined to

think thnt when the Governors need a conference there will be
little difficul/

in securing one and I think the argument in

regard lo the ,$restern Governors coming East just now a sound one.
Sincerely yours,

Benjamin Strong, Esq.,
4100 Eontview Boulevard,
Denver, Colorado.

Deputy Governor.




FEDERAL RESERVE BANK
OF NEW YORK

March 2nd, 1917.

Dear Governor Strong:
I have yours of Febr

ments upon Mr. Peples Memora

um in regard to Fed-

eral reserve exchange and same will be incorporated
in our brief which Mr.

me to submit to the

endricks will prepare for

overnors Committee.

incerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 M ntview Boulevard,
Deny r, Colorado.

RHT VCM

y 26th w

FEDERAL RESERVE BANK
OF NEW YORK

March 3rd, 1917.

Dear Governor Strong:

I have your favor of February 27th and note that
you do not approve of the way in which the st.b.,tement of the

bank is furnished to the newspapers.

On receipt of your for-

mer letter upon this subject, I turned it over to Mr. Jefferson
for him to consider and adopt the proposed form suggested by
you.

till take the matter up again and endeavor to have

your suggestions complied with without futther delay and if
there is any reason why the office does not agree with you, we
will take it up later.

Governors Aiken, Rhoads and McDougal are here for a
conference to-day and this morning I received a cordial letter
from Governor Harding stating that he assumes I will not hesitate to call the Gpvernors Committee together whenever I deem
proper to do so and he will send over

1;q

Attebery of St. Louis,

who has been drafted for temporary use by the Federal Reserve
Board from the Federal ReserveBank in St. Louis.
We are having regular March weather and are glad that
you are away from it.
With kind regards, I remain,
Very truly yours,

Benjamin Strong, Esq.,
4100 nnitview Boulevard,
Denver, Colorado.




FEDERAL RESERVE BANK
OF NEW YORK
March 6th, 1917.

Dear Governor Strong:
I had a very nice talk with Mr. Cann tip-day assur-

ing him how greatly we would miss him and reiretted his
going, but that we could not wish it other ice as he had
such a good opportunity offered him.

seemed to appreci-

ate greatly the letter you had sent to him and the resolution passed by our Board of Director /and the granting him,
as Mr. Sailer and I decided to d
the balance of the month, which

,

payment of his salary for

e stated was entirely unex-

pected.

We have several names under consideration for the position of credit man and ho e to report some progress in this
matter soon.
Sinc

ely yours,

Deputy Governor.

Benjamin Strong, Es
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




h,41.

FEDERAL RESERVE BANK
OF NEW YORK

MARI 5 191/
Larch 6th, 1917.

Dear Governor Strong:

Statements of Condition.

I am enclosing herewith a revised form of statement
of condition of the Federal Reserve Bank of New York for your

consideration

and criticism.

If any changes occur to you

which you think it desirable to make, kindly advise me.
Jefferson states that one reason for carrying the
statement in the form used last year was that at that time
we had not charged off our organization expenses.

Now, how-

ever, they have been charged off and we have no item of this
character except the cost of unissued Federal reserve notes,
(which we must necessarily carry as an asset), and he hopes
the present form will be more in accordance with your views.
If not, please let me know.
Sincerely yours,

-

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM
Eric.




FEDERAL RESERVE BANK
OF NEW YORK

March 6th, 1917.

DearGovennor Strong:
Bank of France:

Answering your favor of February2lst in re Bank
of France I turned same over to Mr. CWitis who has secured
from Monsieur Masson a statement as to the French law per-

/

tainingtoexportsofgoldandllr4Curtis assures me he
has given attention to the othedi matters suggested in this
letter.

Sincerely/yours,

....

"?'EA4AJ4-1-

Deputy Governor.

Benjamin Strong, Es q,
4100 Montview Boul4vard,
Denver, Colorado.

RETPCM




///

FEDERAL RESERVE BANK
OF NEW YORK
March 6th, 1917.

Dear Governor Strong:

I remained in New York on Saturday meeting with Aiken,
I assume Curtis has written you

McDougal, Rhoads and Curtis.

concerning this meeting as I returned to IthaFfi Saturday night

and came back again this morning.

/I

Aiken indicated a desire to talk/#1th you on some mat

/

ters and thought he would endeavor to mAet you in Chicago soon.
I hope you may enjoy each Other and y ur meeting result in good.

I note what you say in reged to the sentiment which is
attached to the arrangement betweAn the Bank of France and the

Federal Reserve Bank of new

and insofar as I have sent any

Yo/
letters to Monsieur Pallain I/ilave tried to recognize the need
i

for extreme courtesy and expi.essions of good will.

/

We will be

very glnd to carry out th4 thought hereafter.

/

Mr. Jay is not dAwn today having had a little upset
,1

from a luncheon yesterday with two Japanese and Kenzel, the Jape

being the manager of/he Yokohama Bank here and his successor
who is to be here fqr six months while the present manager is
in Japan.

We expec

to have a meeting on Monday, Larch 19th of the

Committee on Federal reserve bank drafts and hope that we may




EDERAL RESERVE BANK OF NEW YORK

-2-

To

Mr. Strong.

3/6/17.

reach a harmonious conclusion and be able to develop a plan which
if put into effect will prove sound and workable.
hope that yourgain is constant and with our best wishes, I remain,
Sincerely yours,

ae)(71,(_Th
Deputy Governor.

3enjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




POSTAL

APH

TELEGRAM

.ECEIVED AT MAIN OFFICE
(NI

COMMER

CLARENCE H. MACKAY, PRESIDENT.

CRANNIER BUILDING

,c0 17TH STREET

DENVER, COLO.

TELEPHONE: MAIN 4500

The Pdstal Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed on the back of this blank
MO-2Q019

98-cbho

DESIGN PATENT Na, OUP

42

1138a

1d

cb-New York Mar 8-17

Benjamin Strong

Ttlgv11-10N

Esq

.0-g-

4100 Montview Blvd
Denver Colo

pea.-

By

Curtis absent today think you misunderstood purpose of

Ti:

fUe

is

telegram

yesterday stop Question is shall we insert words quote earmarked or
end quote before word shipped in last sentence
to correspond with




similar provisions

paragraph

twelve E

paragraph eleven D please wire.

R H Treman

7

POSTAL TELEGRAPH-COMMERCIAL CABLES

1

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PACIFIC

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VANCOUVIL

OCEAN

APAN

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Fiir

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elFtgovOn

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ATLANTIC
OCEAN

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411.

THE GREATEST TELEGRAPH ANDCABLE SYSTEM. IN THE WORLD,.

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amount received for sending the same; nor-for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond
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CHARLES P. BRUCH,
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TVIE FASTEST TELEGRAPH SERVICE IN THE WORLD



1166,

OPERATOR'S NOTATIONS.
TIME SENT, ETC.

Form 1201
OF SERVICE

ESTEOANI UNION
TEL
AM

SYMBOL

3

Message

Dat

Blue

Night Message

Nite

Night Letter

NL

Day Message

Day Letter

w.

NEWCOMB cARLTON, PRESIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

RECEIVED AT 915-91 9 SEVENTEENTH ST., DENVER, COLO.

Blue

Night Message

WESTERN UNION

If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

CLASS OF SERVICE SYMBOL

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If none of these three symbols
Night Letter

appears after the check (number of
words)this is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

ALWAYS
OPEN

221NY AZ 30 BLUE

Q NEWYORK NY 330 PM MAR 8 1917
BENJ STRONG

952

4100 MONTVIEW BLVD DENVER COLO
'AM GLAD YOU AND AIKEN WILI MEET IN CHICAGO STOP HAVE EXPRESSED
VIEWS FREELY TO AIKEN STOP IF ANY FURTHER SUGGESTIONS
CUR TO ME WILL ADVISE YOU AT CHICAGO




R H TRE,U
237 PM

FEDERAL RESERVE BANK
OF NEW YORK

March 8th, 1917.

Dear Governor Strong:
Investments.

We are running rather light at the present time in

/

the matter of purchase of bills because the market is about
1/8 below us.

We don't however see any necessity for "reach-

ing" for bills, as under present conditions

e may have a

change any moment which will bring large ,eferings to us.
It is our desire, however, to

eep a sufficient

amount invested to pay our expenses arid our dividends and we
may seem otherwise.

have this always in mind although

Mr. Jay has agreed to tae up with the Reserve Board
promptly the question of a move/to induce state banks to come
in and I shall confer with hirptto keep the thing in mind.
Sincere

yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 rontview Boule7rd,
Denver, Colorado.

RHT/VCM




Misc. 34

P.VRAH
Postal

FEDERAL RESERVE BANK

OF NEW YORK

(TO BE MAILED)

1 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
Benjamin Strong Esq
4100 Montview Boulevard
Denver Col.

Curtis absent today
Think you misunderstood purpose of his telegram yesterday
Stop Question is shall we insert words Quote earmarked or end quote Lefore
word shipped in last sentence paragraph twelve E to correspond with similar
provisions paragraph eleven D Please wire

R. H. Treman
Charge Federal Reserve Bank,
120 Broadway


B-2


Min. 34
FEDERAL RESERVE BANK
OF NEW YORK

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as_11q11,WSTER
RHT/VCM

3 P. Id.

March 8, 1917.

Benjamin Strong,
4100 i.:0ntview Boulevard,
Denver, Colorado.

Am glad you and Aiken will meet in Chicago. Stop. Have excressed

my views freely to Aiken, Stop. If any further suggestions occur to me will advise you at Chicago.
R. H. Treman.
Charge

B-2


Federfil Reserve Bank,

Equitable Building.

FEDERAL RESERVE BANK
OF NEW YORK
March 8th, 1917.

Dear Governor Strong:

Bank Organization.
You asked the about matters pertaining to our organiza-

tion and I am glad to give you some information herewith:
Manager Credit Department:

I have been making some in-

quiries up the state and also in the city and a number of names
are being investigated at present.

Foreign Exchane Clerk:

We have one young man under

consideration whom we expect to call upon Mr. Sailer this week.
He was recommended by Yr. Rovensky.
Efficiency:

I have had talks at different times with

Mr. Sailer about making our organization more efficient.

We re-

alize that in the rapid development, we hnve taken on more employees to perfect the work than perhaps is necessary under normal conditions and at the present time, under Mr. Jefferson's supervision,
there are one or tvo men studying each department in detail and
this will be continued throughout the different departments.
Bank Examinations:

We have already secured information

as to banks in this district that need more frequent examinations
and are being supplied with information from time to time but as
a result of cur talks with Mr. Malburn, we realize that we must be
patient until he can secure a better grasp of the situation.



FEDERAL RESERVE SANK OF NEW YORK

-2

To

Emergency Preparation:

Mr. Strong.

3/8/17.

At our officers' meeting this

morning, it was reported that most of the employees are now coming in through the fifth floor entrance; additional police guards
are now on duty and will not be changed with out our knowledge
and we are having three uniforms for use of the inside force prepared.

We are now considering plans for building two additional inner vaults in our large vault down stairs, the two vaults to
be equipped for the purpose of storage of gold coin and bullion.
Transit Department:

The Transit Department is doing

good work I think, and we are prepared to handle twice the present volume on four or five days
Additional Space:

notice.

We are to recommend to our Directors

at their next meeting the securing of additional space along the
discount and note departments so as to have about double the capacity for handling our present volume.
Private Bankers' Statements:

All private bankers who have

already made statements to us have brought them up to date except

Messrs. J. P. Morgan & Company and Messrs. Muller, Schall & Company.

Mr. Jay has not yet spoken to Mr. Morgan but expects to
do

so shortly..
No decision has been arrived at regarding the statement

furnished by Messrs. Muller, Schell

O.:

Company last Fall, and they

have not been requested to make a statement as of December 31, 1916.




3

..4ERAL RESERVE BANK OF NEW YORK

To

Mr. Strong.

3/8/17.

Messrs. Sutro Brothers & Company recently filed a

statement with

1r.

Cann which has

not been considered as yet.

Sincerely yours,

Deputy Governor.
Benjamin Strong, Esq.,

4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




Form 1217
CLASS OF SERVICE DESIRED
Fast Day Message

Day Letter

WESTE4aisNA UNION
AM
TEL
WESTERN UNIOW

Night Message

Night Letter
Patrons should mark an X opposite the class of service d sired:
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Cev

Receiver's No.

Check

Time Filed

NEWCOMB CARLTON. PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York City,
March 8, 1917.

4011
Benjamin Strong, Denver.
Curtis absent today.
yesterday.

Stop.

Think you misunderstood purpose of his telegram.

Q,uestion is shall we insert words "ear-marked or" end

quote before word shipped in last sentence paragraph 12 (e) to correspond
with similar provisions paragraph 11 (d).




Please wire.

R. H. Treman.
`-....-.,

401

ALL TELEGRAMS TAKEN BY THIS COMPANY A11E SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. For .1s,
all the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS
isideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amount
:ed for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
:riding the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
:ms.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
:g hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
er cent. thereof.
The Company is hereby made the artnnt of the sender, without liability, to fbrward this telegram over the lines of any other Company when necessary to reach its
:ation.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
.
Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
set for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
e of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all

-cooing terms.
No employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the trans-

T DAY MESSAGES
ull-rate expedited service.
HT MESSAGES
cepted up to 2.00 A.M. at reduced rates to be sent during the night
elivered not earlier than the morning of the ensuing business day.
LETTERS

deferred day service at rates lower than the standard day mesrates as follows: One and one-half times the standard Night
rate for the transmission of 50 words or less and one-fifth of
itial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

further consideration of the reduced rate for this special "Day
r" service, the following special terms in addition to those enued above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
ed service and the transmission and delivery of such Day Letters
all respects, subordinate to the priority of transmission and
ry of regular telegrams.
Day Letters shall be written in plain English. Code language
permissible.

This Day Letter may be delivered by the Telegraph Company
ephoning the same to the addressee, and such delivery shall be a

ate discharge of the obligation of the Telegraph Company to

This Day Letter is received subject to the express understandd agreement that
 the Company does not undertake that a Day


mission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.
No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuing
business day, at rates still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words. shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

FEDERAL RESERVE BANK
OF NEW YORK

March 8th, 1917.

Dear Governor Strong:

f March 4th in re Mr. McDougal's efforts

I have yours

and note your comments

ith which I agree.

Garrah, Chairman of the
letter sent out by Mr. Mc

I sent to r. Mc-

earing House Committee, a copy of the
ugal to the state banks recommending

that they have printed on teir checks "Payable in New York Exchange at Current Rates" and this morning was advised confidentially that Mr. McDougal was

New York yesterday, attended a

-

conference (I assume of the St te Bank Executive Committee), and
that he finally admitted that

bably he had been wrong in tak-

ing the position he had, so I thi k the matter is moving along
in the right direction and will be killed off.
This morning we had a disc,ssion at our officers meeting and reached an unanimous conclus on that the time had come
to move to collect chagks on all bank

in our district and that

we would once more write to those stats banks that had declined
to remit at par, stating that we were i augurating this plan to
collect all checks and ask them to join

o the extent of remitting

at par for their own checks sent them; t1en to proceed with this
plan about the 1st of April, collecting
most successfully.

1:4.1

such wny as we can do

We also hope to indt4e the Philadelphia and

Cleveland banks to inaugurate the same pl n in their districts
about April 1st, joining with us in this




ovement.

_

FEDERAL RESERVE BANK OF NEW YORK

-2-

To

Mr. Strong.

It is clearly our duty to go ahead now.

3/8/17.

Governor Hard-

ing suggested to us the latter part of January that we had better
postpone taking any decisive steps until after the Congress had
adjourned, but now we should proceed withoUt further delay.
agree with you that it is the psychological time.

Yr. Wills from Cleveland is to be in New York to-morrow
and we hope to see him in reference to this matter.
bincerely yours;

0-6V-V=444"Th
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCN







FEDERAL RESERVE BANK
OF NEW YORK

March 8th

1917.

My dear Governor:

Bank of_Euland Cableee.

I note your suvestions if March 4th and will
bring your letter to the attenti n of our Board of Diredtors at their meeting next eek. At that meeting,
I expect to present a stateme t in writing to correct
the error e in facts in my 1 tter to Washington. As to
what further action should then be taken, it seems to me
the Board must decide aft r a free exchange of views and
I shall present your viers to them.
With kind re rds, I remain,
S'

erely yours,

ak-gt10/444.--,
Deputy Governor.

Benjamin Strong,, sq.,

4100 Montview Bybulevard,

Denver, Colorado.

RHT/VCM

FEDERAL RESERVE BANK
OF NEW YORK
March 8th, 1917.

Dear Governor Strong:
Bank of France.

I have yours of March 3rd in re lettqt to Monsieur
Pallain.

This letter was considered yeste/day by Curtis and

Jay,and Jay has been over their conclusi ns with me to-day
and I think we shall get the letters
to-morrow morning after receipt of

off

this

afternoon

or

6ur advice by wire, for

which we are now waiting.

Possibly Mr. Curtis ma

have written you, but he

contemplates sending three co ies, one of which will be forwarded through the French AMipassador, as you suggested.

We do not think
and are doing our best

ou overcautious about these details
have them correct, but in any event,

I assume they are sublAct to revision in minor details when
presented to our Board for fianl approval.
ncerely yours,

Deputy

Benjamin Strong, Esq.,
4100 Montvietir Boulevard,

Denver, Colorado.

RHT/VCM




Governor.




FEDERAL RESERVE BANK
OF NEW YORK

March 8th, 1917.
,/

Dear Governor Strong:

I ammnding copies of today's letters
to Chicago

(

though the originals are going to Den-

ver for your files), thinking you may want to take
up with Governor Aiken some of these matters.
Talk with Aiken about the Federal reserve
draft matter which will come before the committee
on Monday, March 19th.

asit

Sincerely yours,

Deputy Governor.

req.,

Benjamin Strong,
4100 Montview Bo'ulevard,
Denver, Colorado.

RHT/VCM

FEDERAL RESERVE BANK
OF NEW YORK

March 8th, 1917.

Dear Governor Strong:

Foreign Banking Connections.
I note from yours of March 3rd that you will prepare a
sketch of letter in the Argentina matter.

Our Executive Committee discusse

our foreign banking

relations and decided that for the present, until matters were
settled with the Bank of England and the Bank of France, they
deemed it unwise to attempt arrangements with other banks during
this present period of uncertainty.

As to the Philippine Bank matter, I asked Mr. Jay some
time since to take charge of this and consult with Dr. Willis
when he was in Washington.

Dr. Willis is to be in New York

tomorrow and I hope that we can reach some definite conclusion
with him as to steps that should be taken, although Mr. Woodward,
I am confident, feela that for the present it would be wiser to
withhold all these matters at present except the Bank of England
and Bank of France.

If you feel that there are any banks with which we should
begin negotiations, please advise me so that we may take same under consideration.

There is a feeling on the part of some of our

Directors that just at present, it would be more advisable to have




FEDERAL RESERVE BANK OF NEW YORK 2

To

Mr. Strong.

3/8/17.

the foreign banks open negotiations with us rather than our
seeking to do so with them.

What are your views on this

point?

Sincerely yours,

Deputy

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Colorado.
RHT/I/CM




GoVeT7i.

FEDERAL RESERVE BANK
OF NEW YORK

atfr

March

9th, 1917.

ofki 5 1917

PERSONAL.

My dear Governor:

Your letter of March 5th came in this morning in which
you stated your own plans were indefinite until you could consult with your doctor.

I feel very strongly, as I have indicated to Governor
Aiken, that it would be well for you to come to New York in May
...if you can so arrange for the purpose of conferring with the of-

ficers here, also, to spend some in Washington in order to pick
up the broken threads and to arrange for such organization in
New York as you deem best.

In case Governor Aiken should decide not to consider that
proposition, it has been intimated that a shift of Mr. Jay might
be advisable, making him Deputy Governor in my place, but if this
should be considered, much thought in my judgement should be given
to the question of the appointment of his successor as Federal Reserve Agent.

It would seem to me wise to secure a good, well-trained
banker of from 35 to 40 years of age who, while not capable at
present of doing more than perhaps carrying routine matters successfully, has shown ability to develop and if he could have this
training under you and associated with Jay and Curtis, he ought
surely to develop quickly, if he has it in him.




With such a man

To

FEDERAL RESERVE BANK OF NEW YORK

Mr. strong.

3/9/17.

if you should after a few years feel disposed to retire and
Aiken was still in Boston he might be called over as head of
the bank and this Deputy Governor would be invaluable to him.
Think this over as I inferred from my talk with Governor
Aiken that he was not disposed to consider the matter favorably now.

If you come on in May and spend a month or so between
ashington and New York, it would enable you to shape up matters
so that then you could be absent for a month or two in the Summer during the heated period and perhaps in August go abroad
if conditions at that time were favorable to such a trip.

I am

strongly of the opinion that you should not consider taking the
trip in June or July because of the present disturbed conditions
and especially because of your health.

Take a little more time

to develop surplus strength and it will pay you in the end.
Moping you will have a fine visit with Governor Aiken
nd with my very best wishes, as always, I am,
Sincerely yours,

enjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM







FEDERAL RESERVE BANK
OF NEW YORK

March 9th, 1917.

My dear Governor:
'

Government Bonds.

Nothing new has developed 0th r than the newspaper reports that we are to have an issue of e150,000,000
one year, 3 per cent. notes.

I h ve felt for some time

that they would probably issue o/

year note to cover tem-

porary demands, leaving the qu stion of bonds to be brought
up later.
Sincere

yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boule ard,
Denver, Coloraao.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 9th, 1917.

I/

My dear Governor:
Accumulation of"Gold.

;-

Answering yours of Mar

5th would state that

Mr. Jay is handling our gold q cumulation matter now
so I will leave this correspqndence to him and you.
Sincerely y urs,

Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulev r
Denver, Colorado.

FEDERAL RESERVE BANK
OF NEW YORK

March 9th, 1917.
My dear Governor:

I am delighted to hear through your letter of :. arch 5th
that your health is coming along all right and I certainly hope
that you will let nothing interfere with it.

It is largely a mat/

ter of your ownidetermination and creation.
I am glad to note that your corresponden e with Washington has been of such a satisfactory and tempered character and hope
that youranticipated visit from a member of thitBoard may material-

/

ize.

Mr. Warburg may come over to New York/next week and Governor

Harding telephoned Mr. Jay yesterday that
on the 19th.

Mr. Jay replied that that

would meet here on the Federal reserve
might be a good thing to have Governo

e would probably be here
as the day the Governors

ank draft matter and it

Harding here to hear the dis-

cussion.

I leve in a few moments
Acceptances at which there will b

pttend a conference on Trade

present those who have taken an

important part thus far in an ef ort to educate business interests
to the value of their use.

WI

is of Cleveland and Curtiss of Bos-

ton are to be here, also, Raymond B. Cox of the Webster-Atlas National Bank and one or two fro
With kind regards,

Cincinnati and others.
remain,

Sinc rely yours,

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Golorado.

RHT/V0M



Deputy Governor.




FEDERAL RESERVE BANK
OF NEW YORK

March 9th, 1917.

My dear Governor:

I have yours of March 5th and have

lready

written you concerning our moves to secure /a successor to Mr. Cann.

We are also awaiting a call this

week from a party whanwe are investigatang as a for-

/

eign correspondent man.

Regarding the Federal rese;ive notes would

state that $600,000,000 seems excessive, but it seem-

/

ed to be the judgement of .a numVer of our Directors

so I did not oppose it, as if

here was an error it

was on the safe side.
I have noted also

$50,000 to $55,000 per mo

ur earnings of about
h, but think we must judge

results by a six months period and am inclined to think
that during the year we/will have but little difficulty
in keeping up our earn ngs at good rates.
Sin erely yours,

)1A-4AA-___
Deputy Governor,
Benjamin Strong,* Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 9th, 1917.

My dear Governor:
Philippine Bank.

I beg to acknowledge receip

your favor

enclosing copy of letters from and/to Dr. Willis in
re Philippine matter.

I hope to see Dr. Wi lis to-day at the
Trade Acceptance Conventiori and will endeavor to have

/

him come down to the Ban

of a conference on this sub-

ject.

Sin erely yours,

Deputy Governor.

Benjamin StroW , Esq.,
4100 MontvieW Boulevard,
Denver, Colorado.
RHT/VC

667 )-Y.t-

,.//V CCO-4-AA

- A-tat
/0(

ACy

Afy

FEDERAL RESERVE BANK
OF NEW YORK

AVArVarch 13th, 1917.

MAR16

1917

My dear Governor:

Just received your telegram stating that you would
write fully regarding Aiken on your return to Denver.
I will try and arrange for your telegrams to be sent
via Western Union.

It was probably not realized in the of-

fice that it made any difference.

I hope that you had a satisfactory visit with Aiken
and McDougal and we are looking forward to seeing them both
on Monday next.

I note what you say about an effort to build up our
investment account and will bring this up for consideration

tomorrow at our Directors Meeting.
You have asked whether conditions have

permitted me

to play a little golf yet and in answer will say that I have
had it only in imagination.

I derive pleasure, however, from

hoping that during the Spring and Summer I can do more than I
did last year, but the opportunity has not yet developed. These
days you can appreciate we do not have much peace of mind if we
are away very far from the bankwhen things are liable to change
any day.

At present, I am feeling well and hope it continues.
Sincerely yours,

A2)74,21440-14-------Th
Deputy governor.

Benjamin Strong, Esq.
4100 Montview Boulevard,
Denver, Colorado.







FEDERAL RESERVE BANK
OF NEW YORK
MAR19 1917

March 14th, 1917.

My dear Governor:

Mr. Jay received word from Mr.Warburg that he would

be at the bank tomorrow, Thursday, as he was coming to New
York this afternoon.

We have heard nothing from Governor

Aiken yet, although I wrote him asking him to

dvise me of

his visit as soon as he reached home.

Mr. Palmer told me that he had met you in Chicago
and thought you were looking very well, in fact, better than
he personally had ever seen you look.

We are investigating various credit men to take
Cann's place and are following up two or three leads which
promise somewhat favorable results and I expect to have a
conference this afternoon with Messrs. Jay, Curtis, and Sailer
concerning this.

The party whom we were looking up for foreign exchange
work does not seem to promise well and we are now working along
other lines.

It seems difficult to secure a good foreign ex-

change man unless he is a German.
With my very best regards,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM

FEDERAL RESERVE BANK
OF NEW YORK

arch 14th, 1917.

hdP
My dear GoveNWR1 9 1917
Directors Meeting, March 14th.

All present except Lessrs. Locke and Woodward, Mr. Locke
hnving a cold and Mr. Woodward being in Boston attending

P

busi-

ness meeting.

I mm sending herewith a memorandum of the increases and
decreases since the last Directors meeting.
No change was made in the rate of discount.
I read extracts from your letter in regard to our in.vestments but the general feeling among the officers of the bank
at present is that the open market, owing to temporarily easy
money and the desire of the banks to absorb very liquid and short
time maturities, we should keep out of at the present,anticipating that around April let conditions may be more favorable for
our repurchases of acceptances.

The officers were authorized to subscribe for the renewal
of our 3

'7.

one year notes in April to the extent of about 0_,500,000

which will mature at that time.

I had intended to bring up the question of the Bank of
England cables but as Messrs. Woodward and Locke were away,
thought it wiser to postpone it until the next meeting.




I

OF NEW YORK

"2"

To

3/14/17.

Governor Strong.

Mr. Jay reported the effort he was making through Secretary McAdoo to remit the Assay Office charges in connection
with our accumulation of gold.

In this connection, Mr. Gar-

dine and another gentleman from the City Bank came over this

morning to suggest that the Federal Reserve Bank take the sovereigns and francs which are coming in now, either keeping them
or arranging with the Subtreasury to hold them for a period until after the war, thus saving the economic waste caused by their
being re-melted and re-coined.

We presented the Philippine National Bank matter and reported as to Dr. Willis' visit here last week.

Mr. Curtis raised

the point that the Philippine National Bank was not a foreign bank
and we are straightening out this legal question before we make formal application to appoint it as our agent.
We discussed the question of the use of express companies
in collecting checks on state banks where we are still unable to
make collections at par - (there are about 100 such state banks)and the Board reiterated their authority to the officers to proceed to make these collections through the express companies or
otherwise if we deem it best.

The Board adjourned for two weeks subject to call if necessary.

Sincerely yours,

Deputy Governor.
Benyamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM
Enc.



FEDERAL RESERVE BANK
OF NEW YORK

Ailkarch 20th, 1917.

MAR2

?l90

My dear Governor:

Governor Harding is looking much better and seemed
to be in good spirits yesterday.

jay and Curtis took Govern-

or Harding Harding and two or three of the other Governors to
the theatre last night.

To-day we are to give Governor Hard-

ing a luncheon at the Bankers Club, having besides Woodward,
Curtis and Jay, Messrs. Vanderlip, Alexander and Townsend.

Gov-

ernor Harding also had a talk with Mr. Morgan yesterday and will
meet other bankers to-day.
Later.

We had our luncheon to-day and think it was quite successful.

Governor Harding intimated that the Secretary of the

Treasury might put out approximately $100,000,000 of temporary
notes, payable about July 1st at the time the income tax returns
come in, but he, the Secretary, felt that the Federal Reserve Banks
might underwrite these proportionately, which would make perhaps
$40,000,000 for us to take in New York; and further, that the Secretary felt that the rate should be 2 %.
we took them at 2

%, it would be about right, to which Governors

McDougal and Famcher agreed.




Jay and I felt that if

At the luncheon Mr. Vanderlip felt

7-

4r**t
........"

,.....z,

V FEDERAL RESERVE BANK OF NEW YORK

-2-

To

Mr. Strong.

3/20/17.

'4(

that they might go at 2 %, while Mr. Alexander said not less than
to which Mr. Woodward also agreed.
At the luncheon, there was an exchange of views regarding amendments, especially the reserve amendments and Governor Harding stated that they would send over to us as soon as they were
framed up, the proposed amendments and ask that the New York bankers
formulate their views or send some representatives down to Washington to discuss the amendments there.
After luncheon, we took lessrs. Alexander and Townsend
down to the vaults and up to our collection department, with which
they apparently seemed well pleased.
We go along from day to day here in suspense, not knowing what will take place the next, but working things out as they
arise to the best of our judgement.
Sincerely yours,

71./W24444,214.4._Th
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 20th, 1917.

My dear Governor:

I spent Saturday and Sunday in Atlantic City, returning yesterday morning for the meeting of the Committee of Governors in re Federal reserve exchange.
There were present Governors Aiken, Rhoads, Seay, Fancher, McDougal and Governor Harding, as well as Curtis and myself.

We took up the report of the Committet as made at the Washington
meeting, discussing each paragraph and by consent of the members
invited Messrs. Woodward and Jay in to present the views of the
Directors of the Federal Reserve Bank of New York as, of course,
my position, as well as that ofiliendricks, being that we were com-

mitted to the report of the G vernors made in Washington.
We discussed the mftter -from about 11:30 A. M. to 5:30

P. L. and reached practica

a unanimous conclusion so far as

the members of the CoMinitlee were concerned, Aiken siding rather

with Woodward and Jay in/their position, but the others feeling
that the important thing was to have double advice and then make
the checks receivable

thus avoiding the responsibility for for-

gery, etc., by making them payable.

I will son" you a copy of the minutes when they are prepared by Curtis and,/advise that we shall have a Governors' Confer-

/

ence probably the/early part of April in Washington at which the




_RAL RESERVE BANK OF NEW YORK

-2

Er. Strong.

To

3/20/17.

matter will be finally considered and the views of the other six
banks can be presented.

I hope the results of the conference yesterday will meet
with your approval but if not will be glad of any suggestions as
to what shall be done at the Governors' Conference later.
With best regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

March 20th, 1917.

WW2 71917
My dear Governor:

I had a talk with Governor Aiken yesterday in regard
to your return and views as to our action in the interim.
suggested to him that he have a talk with Governor Harding
stating how much improved you were and your intention to return
about June 1st and your thought was that matters should remain
in statu quo until you could come here and go over matters in
detail.

Aiken told me he had such a talk with Governor Hard-

ing and Harding telephoned Warburg this morning in illy presence

to that effect.

In this connection, I want to say that the gen-

eral impression among your friends here is that it would be unwise for you to go abroad directly on your return; that it would
be much wiser for you to return as soon as your doctor deems it
advisable, say, the latter part of May and after a short stay
here and possibly a visit to Washington, go to the Adirondacks
and arrange for your stay there for a period at least, using that
as your temporary headquarters, coming to New York for a portion
of each week or occasionally for a few days until you become more
acclimated.

In other words, spend a portion of your time right

along in the Adirondacks for a month or two at least.
If you could return wisely and safely the latter part
of May, we could go over matters here and if then you thought it




-EDERAL RESERVE BANK OF NEW YORK

-2-

Mt. Strong.

To

3/20/17.

advisable to secure a Deputy Governor, I can in the meantime be

looking up

some man or leave it entirely in abeyance until you

come, as you may think best.

As to the suggestion about Mr. Jay, it was first proffered as a suggestion for consideration by Mr. Peabody in case
the other matter did not

work out

satisfactorily.

I have not

felt at liberty to discuss the matter with Mr. Jay, but will do
so if you think it best.

I hope to have a talk with Mr. Woodward

as soon as

mat-

ters ease off a little so that we can secure a few minutes time.

I am sure that Governor Aiken's talk with Governor Harding and
Warburgas well as what they have absorbed here will tend to improve the feeling as to the situation here.
Do not let down at all in your observations of the good
doctor's instructions, build yourself up all you can and return
to us only when it seems safe and advisable for you to do so.
There will, however, be a number of people mighty glad to see
you.

With

kind regards, I remain,
Sincerely yours,

Ale1174Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM







FEDERAL RESERVE BANK
OF NEW YORK

March 21At, 1917.

My dear Governor:

I beg to acknowledge r ceipt of your
letter enclosing one from Mr. iontague Norman.

We also received a letter fro#4 Lord Cunliffe, copy
of which will probably be sl,nt you today.

After

hr. Aiken, I turned them

these letters were read b
t

over to Mr. Curtis for dc/ailed consideration and
after we have had a conflrence on them, will advise
you.

'

Sine rely yours,

7>"t44-441144L---Th
Deputy Governor.

'

Benjamin Strong, Es.,
4100 Yontview Boulevard,
Denver, Colorado.

RHT/VC

FEDERAL RESERVE BANK
OF NEW YORK
March 21st, 1917.

Ar.

MAR2 7 191i
My dear Governor:

In furthar explanation of the minutes of the Executive Committee as enclosed herewith, would state that I have
received from Mr. Warburg a copy of his letter to you which
we will take into consideration in framing up our final letter to the Banco de la Nacion Argentina.
We thought it advisable to sell our 3 % United States
notes due January 1, 1918 on a 2

k % basis and hope that you ap-

prove.

Regarding acceptances, we have been holding at 3 - 3i
but 3 1/8 has been about our minimum rate for me-Jiber acceptances.

After discussion, we thought it advisable to not drop

below 3 % at the present and at that rate, by giving Kenzel a
little more leeway we can pick up a certain amount of good acceptances.

Regardirg your own connection with the bank, the unanimous opinion seemed to be that there was no reason for any
change in the relations existing, but all hoped that you would
be able to return about June 1st.

Regarding our discount rates, Governor Harding stated
yesterday that the Board felt that a stretch of two points from
2 % to 4 % was somewhat larger than was advisable to maintain




AL RESERVE BANK OF NEW YORK

To

-2-

Mr. Strong.

3/21/17.

now and that ultimately they hope to have the difference between
the maximum and minimum rates probably hot over 1 % in normal
times.

He then asked if we felt that a difference of 1k %

would be satisfactory between maximum and minimum rates at present and we approved.

We will proceed to put into operation the authority
given for rental

of additional space so as to enlarge our dis-

count and note tellers' spaces and thus provide for an increased
amount of business along these lines.
The Liberty riational came in to-day and instructed us

to settle their clearing house balances and this makes two banks
now, the Corn Exchange and the Liberty, and we hope it will ultimately lead to all the banks doing it.

We are still investigating the matter of a credit man
but have not reached a conclusion.
With kind regards,
Sincerely yours,

Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM
Enc.







FEDERAL RESERVE BANK
OF NEW YORK

rch 22nd, 1917.

My dear Governor:
Bank of En,rland.

We have your letter from Mr. Montague Norman,
have read same and I return it to you herewith as you requested.

I have discussed the matter with Mr. Curtis and

we have no suggestions to make concerning this.
We forwarded you yesterday copy of Lord Cunliffe's letter and proposed changes and this morning received your telegram that you also had received same.

We will give this our consideration to-day and whatever
comments we have to make will probably be forwarded tomorrow.

Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCM
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FEDERAL RESERVE BANK
OF NEW YORK
March 23rd, 1917.

My dear Governor:

Answering your two letters of March

,194,/h.

We are advised this morning that

the t10,877, 500

of government bonds allotted to the FederaYreserve banks for
purchase April let, our proportion will

e <1,2,479,700.

We have been selling some of our 3 % one year notes
on a

We agree with

% basis.

,

that the bonds should be

sold to the extent that the markv4 will take them, and also to
sell the one year notes if rat s are favorable.
We purchased abo
der the additional leeway

f:700,000 of bills yesterday un-

ven to Mr. Kenzel as to rates of

non-member banks and priv te bankers' acceptances.
propose for a few days

We do not

o cut the rate below 3 % but hope to

ount of bills from day to day now to

pick up a reasonable

replace those runnini off.

We are rered to purchase warrants from our memher banks as we

d from the First National, assuming that they

need to sell the

to strengthen themselves.

Wit/ kindest regards,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Ifiontview Boulevard,

Denver, Colorado.

RHT/VCM


FEDERAL RESERVE BANK
OF NEW YORK

Mfr
MAR3 1 1917

March 27th, 1917.

My dear Governor:

Your letter of March 22nd enclosing comments on article
in the January number of the Journal of the American Bankers Association came this morning.

I am sending you herewith copy of the article as it ap-

peared in the Journal and have just had an interview with
Welton, who is the Editor of the Bankers journal.

LI'. A. D.

I know him quite

well and he had stated to me confidentially that this was written
by an English banker whose name he could not use, but who furnished
him with this material and he reproduced it.

I spoke of some of

it being incorrect and asked if he would care to have some points
brought out correcting same and if it could be done without any
signature in order that he might be informed and use this for publication should he desire to do so.

He said he would be very glad

to and wish it could he furnished him promptly as they are just now
getting material ready for the April number.
I leave the matter in your hands to prepare such an article unsigned, as you suggest, and will be glad to carry out any
instructions connected therewith,
Sincerely yours,

Deputy Governor.

BenjaminStrong, Esq.,
4100 Montview Boulevard,
Denver ,Colorado.

http://fraser.stlouisfed.org/ RHT/VCM
Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BANK
OF NEW YORK

MAR3 1 1917

March 27th, 1917.

My dear Governor:

I enclose copy of letter I received from a friend of
mine in New Orleans in answer to some inquiry I made about
R. S. Hecht, who wrs formerly with the First National of Chicago.

I have been investigating hit somewhat on the theory

that he might make a good addition to our force in New York
possibly, or at least be wcirthy of considering, and pass this
information on to you for youto pursue the matter further if

you so desire or drop it as you may deem best.
I spent Sunday and Monday in Ithaca, having a very
busy time with no cessation up to train time lest night. Sorry
to have missed Mr. Warburg who was here yesterday and went over
with Curtis and Jay the matter of some of the amendments, also,
the letter to the Banco de la Nacion Argentina
Matters are very quiet here with a deep undercurrent
of suspense, awaiting action of Congress.

Bills are scarce

and we are not buying many, but hope that after the 1st of April
we shall be able to secure some.

The Governors Conference will be held in Washington
April 4th and if there are any matters which you feel should be
taken up at that time, will be glad to have suggestions from you.
With kind regards,
Sincerely yours,

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Colorado.

C 0 P Y

New Orleano,
March 22, 1917.

My dear Rob:

I have your confiddntial inquiry regarding Mr. R. S. Hecht
now connected with the Hibernia Bank & Trust Company.
I know him. personally pretty well, having had some bond
deals with him for my sisters' accounts.

He is a strictly business fellow - good address - and
gives the impression of solidity and good balance at once. He
is of average height and weighs about 165 pounds.
He is very thorough in what he does, and is a very conscientious worker.
The attorney of the Hibernia Bank, (Mr. Bernard McCloskey)
several months ago told me Hecht was far and away the strongest
man in the Hibernia Bank, and he considered him the most thorough
banker and student of banking in the city.
Mr. A. C. Wuerpel, the cashier of the Metropolitan Bank,
(my father's bank connection) told me he knew Hecht very well and
that he considered him an extremely able banker.
He was born in Germany, but is now a citizen of the
He is 32 years of age, married, and has one
United States.
His wife is a member of my Church - Trinity Episcopal.
child.
His standing in the community is well illustrated by
the fact that the Board of Liquidation of the City Debt selected
him to arrange its recent bond issue of t9,000,000.
His present salary is in the neighborhood of t6,000.
A very prominent young lawyer here (Percy S. Benedict)
who is very well acquainted with him socially and in a business
way, told me he considered Hecht a man of unusual mental attainments and far superior to either J. H. Fulton or Sol Wexler, re(J. H. Fulton is
cent New York importations from New Orleans.
Vice President of the National City Bank and Sol Wexler is with
Both are strong men).
Bache & Co.
My personal opinion is that he isbeing groomed for the
future presidency of the Hibernia Bank, md that he likes his
position and prospects here very much.

Any further information wanted, I shall try to supply.
The matter will, of course, be considered strictly confidential.




With kind regards and best wishes, I am,
Very sincerely yours,
(Signed) Edw. E. Sou14.




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FEDERAL RESERVE BANK
OF NEW YORK

March 29th, 1917.

My dear Governor:

APR2

1917

You wrote me about the let of February suggesting
that it was desirable to address a letter to Dr. Visserirg of
the Bank of the Netherlands.

I brought this matter before

the Board February 8th and the Directors decided to hold the
matter in abeyance.

Now that Holland has decided not to allow

any American vessels to land at their ports if armed, I am writing to ask whether you see any reason now for our taking up

this matter with the Bank of the Netherlands or shall we allow
it to remain asleep for a while yet.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCV




FEDERAL RESERVE BANK
OF NEW YORK

March 29th, 1917.

My dear Governor:

hiLft.

After invelifii2ti491

number of men suggested to

us for the position of credit manager, we have decided to
offer the position to G. E. Chapin who has been with the
Westinghouse Electric for 20 years.

He has been highly

recommended to us by a number of credit men and officers
of the Commerce, First National, Chase and others.

J. H.

Tregoe of the National Association of Credit Men stated
to me that he should think we could consider ourselves most
fortunate if we could secure him.

He is of good address,

about 33 to 35 years of age, has been receiving3,000 a
yer salary but will probably come to us for about $3600
to $4000.

The Directors authorized his employment yester-

day after I reported details concerning him.
SinCerely yours,

)2Y0
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCT'




FEDERAL RESERVE BANK
OF NEW YORK

ad.P.
APR2

March 29th, 1917.

1917

My dear Governor:

Our Directors met yesterday and all were present save
Mr. Thompson, wi-,o was in Arizona.

After routine business and the continuation of the same
rates of discount, at least for the present, we discussed a telegram
from the Reserve Board in re flotation by the Secretary of the Treasury of $50,000,000 of certificates of indebtedness, 90 days at 2 7/0,

and we had a long discussion as to the amount we should take and finally it was thought well to offer to take any amount up to

,

5,000,000

which might be necessary to make the loan a success, as the rate of 2
which was fixed by the Secretary was too low to attract investment in
them by member banks.

We offered them to five or six of the large

banks here yesterday and they all felt that if it was a question of
patriotism they would take them, but were apparently agreed that the
rate was too low, so they did not take any of them.
We had indicated to Governor Harding when he

vir's here

that we felt 21 % was about the right rate and hadlheyput them out at
that rate they would have been absorbed quickly.

He probably fslt,

however, that this w7s a small issue and he would prefer not to disturb the market against a larger flotation later on.

I felt strongly

and so stated that I thought it was an unfortunate precedent to establish to expect the reserve banks to take as investments government




7.

,ERAL RESERVE BANK OF NEW YORK

2
Mr. Strong.

3/29/17.

loans at rates to be determined by the Secretary and after exchange
of views this opinion prevailed and a committee of Messrs. Locke,
Peabody and Curtis was appointed to draft a suitable resolution, expressing the views of our Board in regard to this not being taken as
a precedent.

We expect to forward this to the Secretary of the

Treasury and the Reserve Board.
The Board decided to sell our conversion 3

7.

bonds of which

we will probably get $3,000,000 or so, possibly more, after April 1st.
We expect to take in
J. P.

$10,000,000 of

gold today from Messrs.

organ & Company, we now having about $17,000,000 besides.
Lord Cunliffe cabled yesterday and Curtis told me he would

forward the telegram to you so that our final proposals can be -sent
over to them as speedily as possible.

The Board approved of the rental of the addition space back
of the teller's cages so as to provide more space for the tellers and
discount department.

Mr. Vanderlip has invited the officers and directors of this
bank for a dinner to be held next week at a date mutually convenient.
Mr. Peabody reported for the Committee composed of himself
and Mr. Woodward that in View of your expected return about June 1st
that no change be made in the organization until your return.
The session lasted nearly three hours but not much time was
wasted as we had considerable business to attend to.
With kind regards, I am,

Benjamin Strong, Esq.,
4100 Montview Boulevard,

Denver, Colorado.


Sincerely yours,

Deputy Governor.

144.- sa-k

FEDERAL RESERVE BANK

OF NEW YORK /

/March

30th, 1917.

/

My dear Governor:

Your letter of March 26th'received this morning.
I note your view of the

the United States one yenr notes
justified in making the profit
offered in view of the fact t'

uestion of holding or selling
It seemed to us that we were
the one year notes at the price

t we are soon to have another large

lot.

I received your st tement of expense in connection with
your secretary and same wi 1 have proper attention.
Mr. Jay went over to Washington night before last and is
expected back this morni

I had a very p easant cell from Mr. L. Ward Bannister
yesterday who told me hb had seen you a week or 'ten days ago and

he reported that you wire apparently in fine condition.
also anticipating wit

pleasure seeing

We arc

Delano after his re-

turn froth the West.

We are now raking plans for a Governors Conference on
Wednesday next at Wishington and I assume that the Federal reserve
exchange matter wi
ReserveBoard.

I

11

be finally put in shape and presented to the

hink Mr. Jay and Mr. Woodward do not feel quite

satisfied that the; drafts were not made"Payable'' instead of




_...../....7,ESERVE BANK OF NEW YORK

.......

...2

Mr. Strong.

3/30/17.

"Receivable", but having heard both sides of the argument and
with a knowledge of what is expected to be done to protect the
situation, I personally, see no objection to trying it out,

making them receivable and saving the necessity of having the
signatures of all the member banks and by making them receivable
protect themselves against forgery.
With kind regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

ta4.irt.
APR2

1917

March 30th, 1917.

My dear Governor:

Some representatives of the small New York State banks
met in Rochester day before yesterday to discuss our proposed
action in re collec-tion of checks on all banks in our district,

and I enclose herewith copy of resolutions which they passed at
that meeting.

This committee was in Albany yesterday confer-

ring with the Superintendent of Banks and Hendricks talked over
the 'phone with Mr. Persons, the Chairman, in answer to a telegram Persons sent us requesting us to suspend putting this matter into operation.

Hendricks invited the committee to come

down to New Iork and talk the matter over with us, as we would
be very glad to give them our viewpoint and have theirs,
to do

some good by the conference, but as yet we have not

whether they will come or not.

hoping

heard

In any event, we have proceed-

ed very slowly in this matter, we have the approval of the Reserve Board in our action and I believe we are fully justified
now in proceeding to handle these matters.
Kenzel tells me that some of the Western and Southern
14.s
banks are 7)1anning to offer more of theirlbonds now, apparently
believing that they had better sell them and go more liquid.




FEDERAL RESERVE BANK OF NEW YORK

2

Mr. Strong.

3/30/17.

We are to take t20,000,000 of the certificates of indebtedness issued by the Secretary, as finally allotted.

They

request us to pay the Subtreasury tomorrow, Saturday morning,
taking their receipt for same and await certificates which will
be sent from Washington as soon as finished.

They will use

our money to pay for the Danish purchase in the West Indies.
These certificates will be registered, written "with interest
at 2 per cent." and in denominations of t250,000.
Mr. Jay has just telephoned me that the Secretary of
the Treasury did not come forward as he had hoped in regard to
waiving Assay Office charges, but I have not yet had the details
and will ask Mr. Jay to write you more fully when he comes in.
With kind regards, I am,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

044,
PERSONAk.

APR6

April 2nd, 1917.

1917

Dear Mr. Strong:
I have your favor of 'Zarch 27th this morning and also

your "Personal" letter.

Answering the latter, would state that "the suggestion
as to Mr. Jay" to which you refer is now in cold storage, and as
I understand, unless something unusual develops there will be no
change in the situation until you return about June 1st.
As to Y,r. Palmer, I shall have -leisure in conveying to

him your message and say to you that he expressed to me very great
pleasure in having met you in Chicago.
I appreciate very much your kind words in regard to the'
conduct of the bank here.

With it all, however, I am not unmin-

ful of my own limitations and lack of experience which had they
been different might have been conducive of a more satisfactory
administration, at least, to you.

Please do not feel however,

that there is any debit or credit between us.

On the other 11,-,rd,

I have the desire to contribute in every way to your speedy recovery and quick return.

We are entering upon the most eventful week in the history
of the country and await each day's opening with the feeling that
no one can tell what the day may bring forth.
My best regards.
Sincerely yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,

http://fraser.stlouisfed.org/
Denver, Colorado.
Federal Reserve Bank of St. Louis

APPROXIMATE AMOUNTS OF ACCEPTANCES BASED UPON CREDITS WITH
RENEWAL PRIVILEGE HELD BY EACH FEDERAL RESERVE

BANK AS PER SCEEDULE1 ON FILE WITH
THE FEDERAL RESERVE BOARD

March 31, 1917

(In thousands of dollars)
Ammints

last

held

Mar. 30

Bought

1917

Boston

Date of

Amount s

hell

Matured

schedule
recqived

March 31
1917

300

300

Mar. 28, 1917

Nev York

7,910

7,910

Mar, 29, 1917

Philadelphia

2,142

2,273

Mar. 30, 1917

eleveland

2,475

2,475

Mar. 26, 1917

Richmond

900

900

Mar. 30, 1917

Atlanta

25

25

Mar. 28, 1917

Chicago

2,788

2,788

Mar. 27, 1917

St. Louis

1,942

1,942

Mar. Mg, 1917

Minneapolis

354

354

Mar. 28, 1917

Kansas City

586

586

Mar. 23, 1917

Dallas

220

220

Mar. 23, 1917

San Francisco

912

912

Mar.

TOTAL

20,554

131

'

131

DIVISION OF REPORTS AND STATISTICS,




FEDERAL RESERVE BOARD,

MARCH 31, 1917.

20,685

....._321v

FEDERAL RESERVE

Ice-

Correspondence

BANK OF NEW YORK
-

Date_q3r1.1_2.,_ )l7.

Subject

_

regard to Federal reserve banks and
lovernment

rom

;he 2ederal re ,rve-banks arc filoal agents of the Government, and

it seems appropriate to consider how they might serve in the dintribution to
investors of new issuel.
ns doubtless the ,physical distributionrof bonds to subscribers =hen
issued can be more lalokly and economically accomplished from the 2reasury De-

partment direct rather than through banks, it seam that the assistance of
iederal reserve banks would better he reserved to
(1) aecciving sabscriptionS:

Directly;.

Throurt moMber and nonmember banks and

bankers;

(L)

Distributing uniform'llterature by the twelve re..
reserve banks to banks anil bankers in their re-

spective districts.

(3) Conferring with the ;averment regarding pros-

pective issues.

OILL.0=:

As probably all subscriptions le:ist be collected and tabulated in the
salary Department as a basis for allotment and 'isvue of bonds, subscription
forms and forms for tabulation should be devised to avoid unnecessary duplication of work, and methods of work arranged.
..luiLLL211.L21;2:

1he subsorirtion forms shanld be in quantity at each Federal reserve

bunk for distribution over counter to the nublio.
They should also be available at the office of every member and non-

her bafik and banker in each district.
'ale question of having them also at post offices in placeo where
mare no banks should be considered.



In any event, the subscriber should be supplied with return envelope-.

37

1101W

3ffice Correspondence

110
FEDERAL RESERVE
BANK OF NEW YORK

Date epril 2, 1917.

Subject:augeestIons for consideration
reeard to eSderal reserve banks and

Government issue.

Kenzel,

nmm

for forwarding subscription to the Federal reserve bank of the district.

"ultable literature for distribution

should accompany the subscription

forms when forwarded to the local banks, bankers and post offices.

This should contain specific Instructions to the public as to preparing and forwarding their labscriptions to eederel reserve banks, and full
information regarding the issue, and whatever of a general nature is deeirable.

eeparate letters or circulars to local banks might be prepared
urging their cooperation in securing sebecriptions from their deeesitors, and
suggesting their financing their depositors' purchases with the assistance of
federal reserve banks through rediscounts and loann is required.

TIOM:
The denominations

f a new Josue

should have careful

consideration.

le it would seem that el00 wore a small enough bond, I an told by dealers
hat the

en

and ..;50 piecee are popular and that many small investments are

e in bonds of those*nominatione.

would, therefore, surest that the

Oupon bouds.be Issued in denominations of "e'2,3, etiO, el001, U00

and e1,000

each

d that the registered forms include all Or eest of those denominations, and
also issued in denomieations of ,5,000, ,A0,000 and ;50,0400 each.

As the plan o

the offering, i.e., whether at par or at a price to

bid, and also whether or not a deposit would be required with each subecripe

on

would determine to a degree the machinery needed, these points should be

refully considered.

It is generally thought that an offering at par, being a definite

°position, brings a larger response, as a laree part of the eenerel public



Asap

FEDERAL RESERVE
BANK OF NEW YORK

tfice Correspondence
Co.

, 1917,

Date_

,

Subject: __14,43130.6a4.0414_

reeard to Federal r:.

r OM

banks and

noveruneat tune q
leek the ability to settle on
If that form of

aw

price.

offering is made, possibly no deposit.is

desirable on

subscriptions of .500 or less, but, if bids are desired, then a deposit should

accompany each bid, as the bids would
soriptions at par;

be feuer and ia larger amounta than eab-

and it Is desirable not to have irresponsible bidders.

ie interest rate and maturity of issue might determine which form

offeril would be preferable.
:eould

If'a low rate bond were offered in moderato

attract one class

another if of 'singer maturity.

ae

investors, if of short maturity, and

If a. short lond, bids might be asked, but if

a long bond at 10* rate, offerings at par would probably meet with better respoase.

If a large issue, one Of an indeterminate meturity and at a higher

rate might yield better results as

even the possibility of early retirement

helps an issue, and a refunding feature is

not unattractive.

For instance, an issue of 3-30 year bonds, that is, redeemable at

or after three gears but payuble In thirty years, if issued at 15 lA would
undoubtedly aell well and at e
amount offered.
low rate.

substantial premium for

almost any reasonable

After three years, -3 Or would probably be either a high or

If high, the Government could then retire, the issue by refunding

at lower .rate.

If lee, the Government

would have made a good bargain.

luoh

an issue selling at a premium would probably affect conversion 5s less unfavorably than a large issue of 3ø Of either' long or short maturity,

In any event, careful oonsideration should be given to the effect
of new issUe or issues on the money market, and precautions

too great a loak-up of funds be made at any one time.

taken that not

Government deposits

in Federal reserve banks are a lockup, es witness the disturbance last July



"""magi"iirl*
Dffice Correspondence

FEDERAL RESERVE BANK OF NEW YORK

Date

Subject: ,7umestiorts for C13idOrL.tim.1 in

0.

i.rom

April 2, 1017.

regard to Federal reserve banks and

B. Kenzel.

.lovernnent issues.

Incident to the deposit of incorle tax receipts

in

Fnderal reserve banks..

A similar stringency following a Government Issue would be unfortunate and
night affect the success of subsequent Issues.
Payment of subscriptions in instalments, or providing for aubscrib-

ars taking up their allotments

'at intervals, and/or deposits by. the

Government of part of the proceeds in national banks, might be considered in
this regard.
-'1.F1T0RIJ4L:

The 3r: bond iinue of 1398 (panish 7:ar loan) was for ;200,000,000;

the offering was for public subscription at par; circulars of

information

with blank forms for subscription were supplied to more than 22,000 money

order post offices, to every express company, and

to.

all the banks.

A

period of thirty-ono days was allowed for the receipt of subscriptions;

320,226 subscriptions amOunting to more than 41,500-000 wore received.
these 11,403 were for amounts of Tess
and 20,376 for more than ,4,500 each.

Of

than ,100, 100,573 were for ,500 eaoh,
It should be borne in mind that these

bonds carried the circulation privilege and showed a prospective profit to

purchasing

banks from the moment the issue was announced.
The J0,000,000 issue of 50-year 3' Panama Canal Bonds sold In

June, 1911, did.not carry the circulation privilege.

They were offered for

public subscription by bid, eadb bid to be accompanied by certified cheek for
of the par value of the bonds desired.

I have been unable to find

he

*Ember of bids submitted, but they aggregated ,212,111085,200,. and the average

Aprice realized was 102.5325, thereby producing a premium of ,1,291,274.19,

and lade the actual interest rate transaction 2.9019.

It Is interesting to

note that these bonds which are now within forty-four year of maturity, are




Ace Correspondence
--'rom

FEDERAL RESERVE
BANK OF NEW YORK

Date_Lprfl 2. 1917
Subject
regard Ls othra1 re::erve banks r.tryl
Anye.-ntnent tomes.

Aan

R. Kenzel.

5at present no:TALI:111y (Noted. par bid.







(COPY)
THE FIDELITY TRUST COMPANY
Buffalo

April 6, 1917.

Dear Treman:

I shall not be able to attend next Wednesday.
Rand has offered to raise a regiment of 1,000
at

his

own expense and go with it wherever ordered.

cannot bear to think of it,

I

A Prussian would shoot at

him as soon as at anybody else.

It brings the war close

home and I am hardly able to work in thinking of possible
eventualities.

Sincerely yours,

(Signed)

Franklin D. Locke.

FEDERAL RESERVE BANK
OF NEW YORK

April 7th, 1917.

h41.k
My dear Governor:

APR1 0 1917

I regret not having been able to write You fror Washington but from the time we arrived there Tuesday night until we
left at 7 o'clock last night, we had a strenuous time, working
Wednesday night until 11 P. M. and Aiken, Rhoads and myself working the next night until 11:30 so that they felt, it reminded them

of the first meeting when you were the "stern dictator" and drove
them to do their full duty, with a little added.
Mrs. Curtis having gone down to Washington, Curtis decided to remain over Sunday and will be back Monday morning.
I assume Mr. Jay has kept you in touch with what has
been going on during the week here.

You can imagine that Washing-

ton was a most interesting place during the present week and the
f,/

climax was reached yesterday, Good Friday, when the President signed the bill finally placing the United States on the side of the
Allies.

I will give you a hasty account of what took place and

Curtis will give you the full report a little later.
I had a short talk with Mr. Delqno who gave me a glimpse
of what you had in your mind, he reported you as looking in splendid health and I am glad that he visited you.




CRveyaNk OF NEW YORK

2

To

Mr. Strong.

4/7/17.

Easter will undoubtedly be a day of serious thought
and meditation, but as Delano expressed it yesterday, God seems
to be directing all events towards making real democracies out
of the principal nations of the world.
My regards to you.
Sincerely yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




WILL APPOINT G. I. SKINNER.
Deputy to be Made Head of Banking
Department.
The Now fok Timm

pril 6.A large delegation
of bankers from many parts of the State
A LBA

called upon Governor Whitman this afternoon to urge him to appoint George 1.
; Skinner of Chenango County to succeed
Eugene Lamb Richards as State Superintendent or Banks, when the letters
term expires On July 1.
The Governor told the delegation that
he had decided to make the appointment
and that Mr. Skinner's nomination would
be sent to the Senate on Wednesday. At
present Mr. Skinner is Deputy Superintendent of Banks. He has been in the
1,.partment for nearly twenty years.




FEDERAL RESERVE BANK
OF NEW YORK

April 7th, 1917.

My dear Governor:

Our new credit man expects to take up his
work about the 15th of April and we heat very good reports concerning him.
As to a foreign exchange man, 7:.r. Kent has

been away but writes under date of April 6th that he
will be glad to help us in any way he can.

He says:

"It so happens I have similar requests on my hands for
four other banks", so I assume that we may have difficulty in securing the right kind of man at once, although we have a number of names now which we are investigating.

I have been advised that Mr. Arnold of the

First National of Chicao is a good man and am writing
McDougal about him to-day.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM

MEMORANDUM IN REFERENCE TO CONFERENCE OF GOVERNORS

WASHINGTON, April 4, 5 and 6.

St. Louis was not represented and Governor Miller who
had reached Washington Monday night was called home by a telegram
so that he and Mrs. Miller left Monday night.

Curtis received a

telegram later stating that he could have remained had he understood the basis for the telegram.

The Conference elected Aiken, chairman, and after a
short preliminary exchange of views we went to the rooms of the
Reserve Board where Mr. McAdoo presided.

He addressed the Gov-

ernors, stating that he wished to make explanation as to the
$20,000,000 short loan to the government; that returning home to
Washington, he found that the debt for payment of purchase price
of the Virgin Islands to Denmark of $.:5,000,000 had been changed

to March 31st instead of April 17th; that he did not wish to issue
bonds as if war was declared we would be called upon to finance
the Allies and might have to raise from three to four billions of
revenue, both through very much higher taxes and bond issues; that
inasmuch as the resources of the reserve banks were ample,that.the
loan he desired by the government was a short time loan of 90 days
he thought it a very proper act for him to offer the loan to the
reserve banks; that he had placed government deposits without interest in the reserve banks and felt that if they paid 2 % on the
loan it was a fair rate under the circumstances.

He stated that

they would nrobably have to issue another loan, probably of $50,000,000
before the 1st of July; that we were working now in strenuous times;
that he has always tried to be reasonable in his requests but that



-2-

often tnere was not time for consultation, etc, etc.

He stated

that in view of these facts he waG disappointed to receive a set
of resolutions from the New York Bank evidencing some criticism;
that so far as he was concerned he felt that there was no obligagation on his part to consult the banks in these matters and he
wanted it understood that he did not request the banks to take
the loan but had made an offer to them and wanted them to feel
free to accept it or not.

I thought I would reply to this defending the bank but
Aiken, whom I was sitting next to, advised me not to, although I
did do so in part the next day, but unfortunately after the Secretary had left the meeting, 'leaving the members of the Reserve
Board there.

Rhoads stated also to the meeting afterward that

the way the telegram was framed, it was more than a tender or offerit was an implied obligation.

Curtis read the resolutions of our

bank to the Governors later and they seemed to meet with very general support and approval.

An a sequel, Governor Harding told me confidentially that
the Secretary told him the next morning that he had a c:ld and bad
throat thai morning and,he feared that he did not express his views
nor outline his position very well.

He hoped that I, as represen-

tative of the New York bank had no feeling over what he had said
and he was extremely nice to me during the days while we were there.
He is evidently working under very great pressure and we had another
meeting with him yesterday afternoon at his office at which he was
very cordial, sad my own views are that the resolutions made an im-

pression on him;that he felt called upon to defend himself, in doing




which he justified his position but evidently did not wish to
convey the impression that he was sore.

I think now that the

situation is in good shape and we had better drop it, although
I wish to report to the Board in a general way as to his statements.

The Secretary stated that he would probably issue
another offering of

50,000,000 before the rirs-t. of June and de-

sired Governor Harding to ascertain whether the banks wanted to
handle this as fiscal agents, feeling free to do so or not.
There seemed to be a unanimous expression that it was wise for
the banks to handle them but that the rate should be made sufficciently attractive to permit the reserve banks to place them with
outside investors a s they would be attractive, being issued from

30 to 50 days only in anticipation of taxes.

Later Governor Hard-

ing told me confidentially that the Secretary had informed him that
he would place them through the reserve banks but had not decided
whether the rate would be 2, 2-;Lor

21--

per cent.

Personally, in

view of his explanation andhaving placed ourselves on record against
precedents,

I

should be inclined to feel that we should subscribe

liberally if the rate should be attractive and if any should he left
on our hands and nOt be placed outside, we could carry them for the
short period for which they would be issued.

Just here, let me state that I read your suggestion to
the Governors about accumultion of gold and they will govern themselves accordingly.

(Mr. Treman wished me to state, that the above was dic-

tated very hurriedly immediately on his return from Washington this
morning.



V.

C. N.)




FEDERAL RESERVE BANK
OF NEW YORK

April 7th, 1917.

My dear Governor:

I return herewith the letter of R. H. Malone.
I wonder if he is correct in his statement that it was
the president of an REIREE bank or does he mean unstate
bank?

Certainly, there is no basis for the statement

that any bank in New York City cannot se'cure currency

in plenty at the New York Reserve Bank at any time within a few hours' notice.

Regarding the vault reserves, I assume that he
refers to the amendment.

Should you secure the name of

the bankers, I will be glad to pursue the matter further.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM
Enc.

FEDERAL RESERVE BANK
OF NEW YORK

kVA-%
APRI. 0

April) 7th, 1917.

1917

My dear Governor:

Regarding our collection system, Mr. Hendricks perhaps
while I w,s away may have advised you that the state bank protec-

tors have had introduced into the New York State Legislature a
bill, No. 1589, amending the law as follows:
" To pay in cash or by a draft upon a bank in the
City of New,York in which such bank has deposits sufficient for the payment thereof, any check presented for collection by any express company or messenger.

This Act

shall take effect immediately."

Hendricks tells me that he has advised the managers of
the express companies to accept no

draft on New York unless it

is certified; cash, of course, we do receive and have agreed to
pay the transportation charges.

We are keeping in touch with the situation and hope that
the bill will not pass.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

April; 7th, 1917.

PR1 0 1917
My dear Governor:

Regarding our collection system, Mr. Hendricks perhaps
while I ws, away may have advised you that the state bank protec-

tors have had introduced into the New York State Legislature a
bill, No. 1589, amending the law as follows:
" To pay in cash or by a draft upon a bank in the
City of New York in which such bank has deposits sufficient for the payment thereof, any check presented for collection by any express company or messenger.

This Act

shall take effect immediately."

Hendricks tells me that he has advised the managers of
the express companies to accept no

draft on New York unless it

is certified; cash, of course, we do receive and have agreed to
pay the transportation charges.

We are keeping in touch with the situation and hope that
the bill will not pass.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM







FEDERAL RESERVE BANK
OF NEW YORK

April 10th, 1917.

s

APR1 6 1917

PERSONAL.
My dear Governor:

Your letter in regard to Mr. Arnold is at hand and
our letters seem to have crossed as you had one from Mr. Mckay which I am returning herewith for your files.
I have consulted with two or three parties this
morning who know Mr. Arnold and find that he is a man of
very good address, was trained as a minister, is a fluent
speaker, is used by his bank as a promoter of good relations,
attends upon conventions, travels a good deal and in this respect seems to be successful.

Parties consulted, however,

feel that he has not the real knowledge of the banking business sufficient for the position we have iht mind.

I would

feel, therefore, that it would be unwise to tax your strength
by making a special trip to see him, but when you come East
you could easily stop over there perhaps and in a quiet way

make such inquiries as to him and others as to you seem desirable.

If you wish me to pursue the matter further, kindly

advise me.

With kind regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

FEDERAL RESERVE BANK
OF NEW YORK
April 10th, 1917.

My dear Governor:

I have a letter just received from Mr. Warburg from
which I quote as follows, as I know you will use the information which he gives me as confidential.

It may be that he

will write you himself concerning it.

"I have just returned from Chicago, whereou will
be glad to learn that my speech was very w,44/7
received,

much better than I thought it would

be./4

got some real

reaction, and I believe that two or

ree o

State banks and trust companies w)1.1 come in.

As a mitt-

,

ter of fact, the Union Trust Company has definitely promised,

and the Merchants' Lo

/

0/ and Trust Company has prom-

ised with a very small reaervation, which I believe will
not prove serious.
of

Chicago is now ,W

I)also believe that the State Bank
the verge of coming in.

This infor-

mation, howevert'is only for you and Mr. Jay.The St. Louis Union Bank was admitted to-day:"
Sincerely yours,

Ce.W__Ace./1,t4
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

Taff.

April 10th, 1917.

APR1 6 1917
My dear Governor:

I have your favor in reference to the organization
of the bank and your suggestion that we consider putting on
additional employees.

This matter has not been lost sight

of and already we have had added some in one or two departments.

In this connection, I asked Mr. Sailer a week or

two ago to have a chart prepared which Mr. Jefferson has
done making blueprints and detailed information applying to
these will be in readiness to submit to-morrow and forward
to you.

Taking this as a basis, we anticipate formally dis-

cussing it in detail at the Board meeting to-morrow, making
such changes as seem advisable.

I think we can properly add to the Discount Depart-

ment some additional employees and train them, although we
have a number in other departments prepared to draft into this
department when necessary.

As you know, we have employed Mr. Chapin as head of
the Credit Department and he begins his work next week.

Mr. Jay has promised to see Mr. Malburn to-day about
having a meeting of state bank examiners at the Federal Reserve
Bank in New York so as to be able to get into close touch with
them.




RAL RESERVE BANK OF NEW YORK

-2-

To

Mr. Strong.

4/10/17.

Regarding the foreign exchange man, we are still working
on this and I have had a conversation with Mr. Kent this morning
as a result of which he asks us to wait a few days as he is giving the matter a good deal of thought, it being his desire that
we have a very good man.

It will be difficult to secure a high

grade man perhaps at once and it may be necessary to put in a
younger man who is competent to open books and look after the details in a satisfactory manner, but might not have the experience
to justify his being made head of that department.
We are always glad to have suggestions from you on these
points.

We know that in these stirring times how greatly you
desire to be back in the thick of the fight, but if the war goes
on there will be ample time for you to come

in

after things are

more fully developed.

We hear a great deal about the issue of bonds in the mar-

ket and business generally is awaiting the determination of this
most important movement.

On the other hand, we do not yet know

whether the reserve banks are to be used in this connection, nor
in what capacity, nor to what extent and we cannot do very much
in the way of developing a department to handle our share of this
until we know wh.A our share is to be.

We are, however, investi-

gating the matter of additional space and will be securing information as to additional help.
If at any time you become uneasy over the matter do not
hesitate to wire for information as we will keep you in touch with
affairs whenever we feel the situation at all alarming.
Sincerely yours,

0
Benjamin Strong, Esq.,

http://fraser.stlouisfed.org/
4100 Montview Boulevard.
Federal Reserve Bank of St. Louis

Deputy Governor.

FEDERAL RESERVE BANK
OF NEW YORK

April 11th, 1917.

APR1 6 1917
My dear Governor:

Answering yours of April 2nd regarding your suggestion

to offer to the Secretary of the Treasury to take charge of the
'physical issue of the short time bills, etc., would state that

the Governors last week all indicated to him their desire to
have the reserve banks act as fiscal agents in whatever way seemed most desirable, further, that they deemed it most essential
for the influence of the reserve banks that insofar as they could,
all such transactions of the government pass through the Federal
reserve banks.

This was impressed upon the Secretary of the

Treasury and upon the members of the Reserve Board.
advise any further action being taken?
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCM

0



Would you




FEDERAL RESERVE BANK
OF NEW YORK

a 41. fre.
APR1 ti 1917

April 12, 1917.

Dear Governor Strong:

I enclose herewith copy of a letter received from
Governor McDougal this morning.

At different times I have

been going over the matter with Mr. Sailer, urging that he
secure a foreign exchange man as soon as possible, and we

have about concluded that it will be wise to find some young
man who has had good training and whom we can employ at a
salary of probably from 42,000 to 43,000.

Then, after your

return when we shall have had more knowledge of how much work
will be necessary, we can secure a head for the department
if you think that advisable.

With kind regards, I remain
Sincerely yours,

Deputy Governor.
Benj. Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

t4A-z/v t,U
RHT/HAB
Enc.

l
1-44-* "f6"444414-

I ma-- "9

C&isiit's




FEDERAL RESERVE BANK
OF NEW YORK

April 12th, 1917.

PERSONAL.

Ny dear Strong:

While these are busy times here at the bank we are
all thinking of you, knowing how interested you are in developments from day to day and how strongly you are drawn towards
New York.

On the other hand, things while they are develop-

ing rapidly have not yet crystallized and it may be that before the present quiet and suspense changes into activity, the
days will pass so that your time for coming will have arrived.
It is better for you to keep out of the maelstrom just as long

as you can anddo everything possible to build up your surplus
strength.

Be assured that we will wire or telephone you in
case anything unusual develops quickly.

Do not think that we

are letting matters run along in a haphazard way because we are
trying to make preparations in every direction to meet the onslaught.

I wish you could be here for one of our alarm drills

which -we practice now every few days.

We shall keep in touch with the bankers here more
closely than ever now and feel confident that any advice we
need will be willingly given and we shall have the fullest cooperation.

FEDERAL RESERVE BANK OF NEW YORK

9
.....

To Er. Strong.

4/12/17.

More than that there are signs developing on every
side that some of the larger trust companies and state institutions will be coming in soon.

My very best wishes to you as always.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Yontview Boulevard,
Denver, Colorado.

RHT/VCM







FEDERAL RESERVE BANK
OF NEW YORK

APR1

1917

April 12, 1917.

Dear Governor Strong:

Last night Mr. Vanderlip entertained at the Metropolitan Club, as his guests for dinner, Mr. J. P. Morgan,

the members of the Clearing House Committee, (Messrs. McGarrah, Prosser, Frew, Alexander and Townsend), the directors
of our bank with the exception of Er. Locke, and Er. Curtis
in addition, a total of sixteen.

After dinner Er. Vanderlip stated that he had felt
for some time that the clearing house and the Federal reserve

bank are not so closely identified as they should be, and
that matters had drifted along without anything arising to
force closer relationship.

He felt that the member banks

should really take more interest in the Federal reserve bank
than they had thus far evidenced, and Er. Jay suggested that

we have an occasional meeting of the clearing house committee
and our board.

This seemed to meet with general approval and

was the best result of the dinner, I thought.
There was an exchange of views on the bond issue

matter, and the general opinion seemed to be that if the Secretary of the Treasury should issue one billion dollars of
bonds now and later should issue another billion as needed, it

_CRAL RESERVE BANK OF NEW YORK

Benj. Strong, Esq.

2

4/12/17.

would be wiser than to attempt to issue two billions at present.
Everything is held in suspense at the present time, awaiting developments as to the bond issue.

Er. Jay has gone to Washington to-day to confer as to
the amendments.

He has been in consultation with a number of

State bankers and also with trust company men during the past week,

and knowing their views will confer with the Federal Reserve Board
so that it can reach the house committee before the amendments are
finally settled.

Governor Aiken called me up and said that he is disturbed
over the proposed two .billions of one-year certificates of indebtedness.

He thinks there is danger in having this much additional to

the five billions of bonds authorized, and says he thinks we could
finance the Allies for the next two or three months by the issue of
certificates of indebtedness maturing in July or August, to be refunded into the 3e, bonds, and that they would be taken up to five
hundred millions by the banks, at once.
I shall keep you posted from time to time.

Don't worry,

as we shall advise you quickly if anything unusual should develop.




Sincerely yours,

Deputy Governor.

Benj. Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/HA.B

FEDERAL RESERVE BANK
OF NEW YORK
April 12th, 1917.

APR1

1917

My dear Governor:

Our directors met yesterday; all present save Mr. Locke
who wrote a very amusing letter, a copy of which I enclose.

Rates of discount were reaffirmed; there was considerable discussion of the government bond issue, a statement of what
was contemplated having appeared in the morning papers.

I made a

brief report of what took place at the Governors Conference; explained

some of the amusing things which have developed from our collect-

ing checks on state banks through the express company, as some of the
banks are sending small silver and mutilated currency and in other

ways trying to annoy us, but we are taking allthat comes with good
grace, believing we will win out in the end.
We decided to hold in abeyance the question of our treat-

ment of employees who may enlist as some of the directors felt that
it was quite a serious question and that no plan should be formulated committing us to hold positions open for so indefinite a time and
obligating ourselves to pay salaries without knowing to what extent
our men would enlist later, etc.

We discussed the question of purchase of acceptances
bearing German names, especially originating in South America.
We are sending off to-day our final draft of the Bank of
England matter.




Adjourned to meet in two weeks unless called sooner.

RESERVE BANK OF NEW YORK

-2-

To

Mr. Strong.

Mr. Curtis tells me he has written you

4/12/17.

in

longhand

the essential matter connected with the Governors Conference in
Washington, so I will not repeat, as you will receive the detailed report later.

My best wishes to you.
Sincerely yours,

Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM

Enc.




0




FEDERAL RESERVE BANK
OF NEW YORK
APRi 6 1917
April 12, 1917.

Dear Governor Strong:

I enclose herewith copy of a letter from Mr.

James Brown in reference to inquiries made by him in
our behalf.

The letter explains itself.

I also enclose copy of a letter received from
Mr. Meredith, president of the Bank of Montreal, with
whom Mr. Curtis and I lunched, as a guest of Mr. Jay,
about two or three weeks ago.

If you have any comments

on this kindly advise.

With kind regards, I remain
Sincerely yours,

Deputy Governor.

Benj. Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/HAB
Enos. (2)

.

FEDERAL RESERVE BANK
OF NEW YORK

,

al tr.
APR1 8 1917

'AP ,,

April 13th, 1917.

My dear Governor:

Your letter of march 31s1 was received and taken to
the Governors' Conference at Washington at which the paragraph in reference to the accumulation of gold bars by some
of the other reserve banks in case they expected to paztici-

pate in the foreign business, was read and absorbed I think.
I have$not heard from Mr. Kent yet and will wait a
day or two longer before taking up the question of a foreign
exchange man with him, but meanwhile we are pursuing investigations along other lines.

The financial district gives evidence of preparation
for war emergency in that in connection with a number of buildings large window guards are being erected, our building as well
as the Hanover and Liberty National being recent additions to
this class.

I had a long talk yesterday afternoon with Mr. W. W. Orr
who with Mr. J. H. Tregoe are the managers of the National Credit
Men's Association.

Mr. Orr is working on a manual or primer

for extensive distribution among business houses of all kinds
and quite an extensive campaign has been entered upon to facilitate the consideration of the trade acceptance system more gen.

erally.




All this in preparation for the time when we will have

,ERAL RESERVE BANK OF NEW YORK

Mr. Strong.

.

4/13/17.

a more contracted credit situation and will need to use every
credit which can be availed of.

I assume that you will advise as soon as you make any
definite plans as to your return so I can govern my own personal plans accordingly.
With kind regards, I remain,
Sincerely yours,

tA4-44k,a4,__

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCY




FEDERAL RESERVE BANK
OF NEW YORK

Lfr

April 13th, 1917.

APR 1 8 1917
My dear Governor:

I have your two favors of April 10th.
M. de Neuflize called on us to-day, he having just
returned from Paris on Wednesday of this week, having sailed
March 31st.

He reports very great encouragement given to the

French people by the entrance of the United States into the war;
he seems to have a feeling of personal relief that it has happened and that now there will he fewer obstacles placed in the
way of financial and other dealings with France.

He did not

seem to have any inside information as to the duration of the
war except that the morale and spirit of the German prisoners
seems to be much lower than that evidenced in prisoners who
were taken during the first stages of the war.
Curtis told me to-day that Mr. Delano informed him
that Lord Cunliffe was expected to come over with the commission
from England and should this prove to be true, I assume you would
want to meet him either in Chicago or in the East.
Mr. Jay and I had a long talk with Mr. Alexander today, discussing the bond situation.

He and Mr. Woodward both

feel, I think, that the money secured from subscriptions should
in part be left on deposit with some of the state banks and trust




_SERVE BANK OF NEW YORK ....... 7_2-7

To

Mr. Strong.

4/13/17.

companies either with security or on some basis which can be
worked out.

The other point of view of course is that the

favors, if any,in connection with the bond issue should be diverted toward member banks as they have had rather a hard struggle in competition with the state banks and trust companies for
the past few years.

Mr. Jay stopped over at Philadelphia on his way back
from Washington and came over on the train with Mr. Rue this
morning.

There is a meeting of the Executive Committee of the
Advisory Council to-day and Mr. Morgan invited Mr. Jay to take
lunch with them.

I will ask him to write you fully to-morrow

concerning his Washington trip and the luncheon.
There seems to be quite a well-defined impression that

on:

a good many trust companies and state banks are seriously considering joining the Reserve System soon.
I expect to go up to Ithaca to-night to remain until

Monday night unless something unusual develops, this giving me
three days at home and hope to secure a little rest from it as
I have begun to feel somewhat the strain.
I hope that you are gaining all the time and that you
are able to get in some golf occasionally as that will give you
diversion of mind as well as outdoor life.
My best wishes to you as always.
Sincerely yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM



Deputy Governor.

Misc-37

Office Correspondence
To

FEDERAL RESERVE
BANK OF NEW YORK

Bowe

April 13, 1917,

Subject : Mr. Strong's lt_t_er_oi April 9th-

Mr. Treman

From E. R. Kenzel.

Our present holdings of bills drawn by or bearing indorsement of banks of
German name or affiliation in South America are as follows:
Banco Aleman Transatlantico, Valparaiso, appear as indorsers on 041,921
bills accepted by Muller, Schell & Co. and also indorsed by the Equitable Trust Co.
The drawers, amounts and maturities are:

4 1,925

G, Ehlers
Montval & Co.

due June 15
due June 6

39,996

This Banco Aleman Transatlantico represents itself to be a native bank
and not a German institution.

Banco Germanic° de la America del Sud are drawers of 0200,000 dollar exchange finance bills accepted by the Equitable Trust Co. and due April 30th;

and

indorsers on 0166,865.08 comprising the following bills:

Acceptor

Amount

Nat.Bk of Commerce
Irving Nat'l Bank
Brawn Bros. & Co.

072,466.40
10,929.56
30,580.32
28,425.72

ttft

tt
It

It

It

Nat'l City Bank
Equitable Trust Co.
Nat.Bk of Commerce
tl

It

H

It

It

H

Apr. 23
"
"
"

May

Guaranty Trust Co.

Maker

Maturity

23
23
23

Other Indorser

Horn & Co.
It

II

It

It

II

Equitable Trust Co.
Fritz Schwarzschild
5,000.00
It
It
Vorwerk & Co.
Nat.City Bk (Chile branch)
Springer & Flugel
Oskar Tutzer

4,750.00

It
H

3
3
3

3,539.03
1,471.68
It
3,770.59
2,931.74

It

8

t,

8

It

8

at

22

ft

"

Pt

Mr. Neilsen of Brown Bros. & Co. is checking up for me the affiliations
of all of the South American banks that have ever appeared on our books.

I under-

stand that a number of the banks in South America were organized by combinations of

nationalities, and that therefore the title of such banks may not be a clear indication as to the nationality of the interests concerned.

For instance, one with

Belgian, Italian and German interests might have either an Italian, German or French
title.

Brown Bros. & Co. have very complete files on this matter, and are checking

up the identities of these institutions for us.



3,000.

lice Correspondence
To

Ak. Treman

FEDERAL RESERVE
BANK OF NEW YORK

Date April_l_3_,,_1911.

Subjed:Mr. Strong's letter of April_fth._

From E. R. Kenzel.

They also have very complete files on the names blacklisted by England.

This information they have received from the British Government and have been required
to hold in the strictest confidence, but 15±. Neilsen tells me they will try to have it
made available to us.

I understand that at the outbreak of the war, in England there was legislation which prohibited British banks or merchants from paying their maturing bills
if the name of an enemy alien appeared on the bill either as maker or indorser;

that

all of these bills were later taken over by the Bank of England where some are still
carried;

but that on practically all of them where it could be proved that cover had

been received to provide payment and/or where such bills were owned by Britishers and
where no enemy alien interest remained, under suitable guarantees payment was permitted.

From what I have learned in these regards, the feeling among banks and
bankers in New York is that nothing should be done by this Government to prevent the

payment at maturity by American banks and bankers of their maturing obligations, and
there is little, if any, fear that such bills will not be met at maturity.

ERK/PE







FEDERAL RESERVE BANK
OF NEW YORK

April 13th, 1917.

My dear Governor:

Mr. Jefferson has practically finished his
chart of organization and told me to-day that he had
worked out the detail in connection with each important office.

I then suggested that he give a blue

print chart with detailed plan to each of the officers
and we are to meet one night during the coming week if
nothing prevents to have a forum for the exchange of
views, after which we will make definite decisions as
to the points discueed.
With kind regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/V0M
Enc.

FEDERAL RESERVE BANK
OF NEW YORK
APR1 81917

April 13th, 1917.

My dearGovernor:

Answering yours of April 9th in regard to bills of
German origin or with German names would state that we have had
this matter under consideration for a week pr so past and on
Wednesday discussed the matter with the Board of Directors

who,

while not taking action, expressed on the part of one or two,
at least, the thought that we ought not to take any bills of
this character.

I have discussed same with Mr. James Brown to-

day as to whether we should adopt so radical a policy or rather
adopt the policy of putting each bill offered with German names
to the acid test as to credit, names and purpose for which the
bills are drawn, etc.,

and he very much favored the latter one

asbeing the only practical policy to work under.
I asked Mr. Kenzel to prepare a statement as to our
present holdings which I enclose herewith.
I learn from Mr. Brown that Lord Cunliffe is probably
on the way over here at the present time.
I have arranged a meeting between Mr. Jay and Mr. Hard-

man Lever to discuss the methods which the English used in floating their bonds and Mr. Brown will come with Mr. Lever to-morrow
at 10:30 A. M.

Benjamin Strong, Esq.,

4100 Montview Boulevard,
http://fraser.stlouisfed.org/
Denver, Colorado.
Federal Reserve Bank of St. Louis

Sincerely yours,

Deputy Governor.

FEDERAL RESERVE BANK
OF NEW YORK

UP.

April 18th, 1917.

APR2 2 1917
My dear Governor:

One by one we seem to be making headway in bringing
in state banks, having now gained 24 banks, leaving but 90 out
of the 1025 in the district on which as yet we are unable to
collect at par, except through the express company.

We are having a meeting this afternoon with the Clearing House Committee and hope that this may be the beginning of
closer relationship with them and they with us.

Mr. Woodward

unfortunately was called to Boston last night so will be unable
to attend.

We are picking up nearly every day some acceptances
at from 3 to 3-1 % but are running off much faster than we are
accumulating.

I believe, however, that within a month or so

we will have changed conditions so that we will probably be able
to secure what we need.

The Committee of the New York State Trust Companies is
at work securing legislation which will permit them to deposit
with the Federal Reserve Bank and have those deposits count as
part of their required reserve under the New York State laws.
Mr. Merritt stated to-day that they were considering having the
restriction removed against counting Federal reserve notes as
reserves which restriction wee instituted in the New York State




_cRVE BANK OF NEW YORK

-2-

To

Mr. Strong.

4/18/17.

law on the recommendaticn of Mr. Hepburn, yourself and others.
The Committee is in conference to day with Superintendent Richards and I hope may accomplish the necessary legislation.
With my best wishes, I am,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

April 18th, 1917.

My dear Governor:

Our Committee on bonds, Governors Rhoads, McDougal and
I were to have met yesterday to open bids on the offering of
about $5,000,000 of the conversion 3s.

McDougal could not come

and Rhoads came over but we had no offerings and gave a brief
statement to the press, copy of which I enclose.

The reason as

you understand is that the conversion 3s are not included in the
list of those convertible into bonds carrying a higher rate and
raises the question as to what is to be the status in the future
for the plan of retirement of national bank circulation as outlined in the Federal Reserve Act unless the conversion 3s are
made convertible into 3i% or 4 % bonds later, to be on the same
basis as other bonds.

Possibly, you can think out some new and

better plan which will insure the reitrement of the national bank
circulation and all.the 2 % bonds securing same.

We are hoping that you may see your way clear to drop
in for a few days during the time Lord Cunliffe is here so that
you may visit Washington and New York, not only giving us a glimpse
of you but helping in outlining the present important developments.
With this goes our best wishes.
Sincerely yours,

Deputy Governor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.




POSTAL TELEGRAPH
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VT & CRAMMER ROILDING

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TELEPHONE: MAIN 4800

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CLAFIENCE H MACKAY, PRESIDENT

TELEGRAM

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TheYo'srarrelegratth-Catfarktimny(hicorporated)transmits and delivers thit-message subject to the terms and conditions printed on the
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IGI MEAT 16.106211

b87 ch ja 61
CB 71ewyork apl 19-17

tenjamin qtrong
4100

Ifontview Blvd--nenver.

This morning harding telephoned asking us to join with other
reserve banks in offering two

hundred millions treasury certificate

due July first at two and one half percent have been
canvassing banks and bankers today and have secured up

five thirty

about ninety millions
it has

is that rate too low and

to
but practically unanimous opinion
created rather unfavorable

impression.




P. Treman...621g
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THE POSTAL TELEGRAPH -CABLE COMPANY-(INCORPORATED)
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TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
1. The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED
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amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEA TED telegram, beyond
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I. In any event the Company shall not be liable for damages for any mistakes or delays In the transmission or delivery, or for the non-delivery of this
telegram, whether caused by the negligence of its servants or otherwise, beyond fifty times the REPEATED telegram rate, at which,nount this telegram, if
sent as a REPEATED telegram, is hereby valued, unless a greater value is stated in writing hereon at the time the telegram i8 offer.s. In the Company for
transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company \,,er, necessary
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Messages will be delivered free within the established free delivery limits of-the terminal office. For delivery at a greater distance a special chargep
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No responsibility regarding messages attaches to this Company until the same are presented and accepted at one a its transmitting offices; and if airs,
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The Company shall not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the
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S.

The above terms and conditions shall be binding upon the receiver as well as the sender of this telegram.
NO EMPLOYEE OF THIS COMPANY IS AI-TI/ORIZED TO VARY THE FOREGOING.

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ADAMS,

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VICE-PRESIDENT.




CLARENCE H. MACKAY, PRESIDENT.
EDWARD REYNOLDS, VICE-PRE. AND GENERAL MANAGER.
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THE FASTEST TELEGRAPH SERVICE IN THE WORLD

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FEDERAL RESERVE BANK
OF NEW YORK
April 19th, 1917.

My dear Governor:

We had a joint meeting of the Clearing House Committee
and the Executive Committee of cur bank yesterday.

Mr. Vander-

lip was unable to be present but Messrs. McGarrah, Prosser, Townsend and Frew came and Messrs. Peabody, Thompson, Saunders, Jay
and Treman of our Executive Committee were present, Mr. Woodward
being absent.

We had an informal discussion as to government bonds,
Mr. Peabody expressing quite a decided opinion that the government
would issue three billions as its initial offering.
We discussed the removal of the exchange charge of 1/40
of

1

7.

so that all banks in our district would be practically on

the discretionary list, thus removing this charge.

While no pos-

itive action was taken at the meeting yesterday we were given to
understand that this,would probably be done.soon.
Mr. McGarrah Made some estimate as to the proportion of
bonds which would be taken by the different sections of the country based on each billion of bonds issued and his estimate was as
follows:




New England

t100,000,000

Chicago District

200,000,000

West of the Mississippi

200,000,000

New York and the South

500,000,000

- EDERAL RESERVE BANK OF NEW YORK

____

-2-

To

Mr. Strong.

4/19/17.

Mr. McGarrah stated that this was merly his own estimate
based on conversations he had had with bankers from different sections.

He suggested that through our statistical department we

might make up figures as to the wealth of the different districts
and the banking resources and assuming that each section took their
proportionate share see how it would work out,and this we are preparing to do.

As another method of securing the desired esti-

mates I telegraphed and wrote to each of the eleven reserve banks
last night asking them to advise us by wire next Tuesday, after
making a quiet, confidential inquiry in each district as to the
probable amount which would be subscribed on two proposals: first,
if the initial offering was one billion; second, if the offering
was three billions.

This may give us some valuable information,

at least, so far as estimates can afford such.

Mr. McGarrah stated that the result of the meeting yesterday gave evidence of the value of having these meetings regularly and it was decided to hold them every two weeks at the Reserve
Bank.

The Executive Committee also discussed our relations
with some of the foreign banks and decided as follows:
Bank of Naples:
tions

To do nothing, as in making their sugges-

the Bank of Naples had thought that we would be in a position

to transact commercial business.
Bank of Montreal:

The Committee saw no way in which we

could have any definite reciprocal relations but thought it tactful
to hold the matter in abeyance and talk with Lord Cunliffe.




cRAL RESERVE BANK OF NEW YORK

-3-

To

Bank of the Philippines:

Mr. Strong.

4/19/17.

Hold in abeyance as if the

Congress enacts into law the proposed amendments, the Philippine
National Bank will become a member of the System and it will be
necessary to secure added information from San Francisco and elsewhere before tying up closely with it.
The Executive Committee also considered and discussed
the securing of additional space for handling government bonds in
case the reserve banks are called upon actively to participate.
With kind regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




nocOusx

FEDERAL RESERVE BANK
OF NEW YORK

RHT/RitH

(TO BE MATTiED)

Bostal
5:45 p.m.

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:

...urn 19, 1917.

Benjamin Strong Esq
4100 Montview Boulevard
Denver Col.
This morning Harding telephoned asking us to join with other. Reserve banks in
offering two hundred millions Treasury certificates due July first at two and
one half percent
Have been canvassing banks and bankers today and have
secured up
thirty about ninetymilliono but practically unanimous
opinion is that rate too law and it has created rather unfavorable impression

to five

R. H. T.Diailaal

Chge. Federal Reserve Bank
120 Broadway

B-2




FEDERAL RESERVE BANK
OF NEW YORK
April 19th, 1917.
My dear Governor:

This morning we received telegram from Governor narding,
copy of which is enclosed and Mr. Jay also had a telephone message
informing us that the Canadian Pacific R. R. bond issue of
$200,000,000 had been withdrawn and that the Secretary of the Treasury was offering to-day $200,000,000

of Treasury certificates at

% and interest, maturing July 1st of which he desired $50,000,000
available to-morrow, Friday and the other $150,000,000 next Monday.
He intimated that this money would be paid over to J. P. Morgan & Co.
presumably for Canadian or British use.

We have been spending the

day, therefore, ascertaining the views of bankers here and as to
their willingness to subscribe for this loan.

The practically unan-

imous opinion was that the rate was too low and should have been 3 %
in which case we could have placed many outside of New York.

As it

is, we have secured subscriptions up to 5:30 P. M. of $93,000,000.
The other districts are not doing proportionately as well.
More to-morrow.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




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41.1.17,

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FEDERAL RESERVE BANK
OF NEW YORK

14.k.

April 20th, 1917.

APR 2 3 1917
My dear Governor:

Mr. Jay and I lunched with Messrs. Allen and Thralls
of the A. B. A.

To-morrow the up-state small'state bankers have

a meeting at Rochester, their creed being as per the encloeed memorandum.

You will note that they expect to head off our collect-

ing through the express companies, but if they succeed in this we
will have to devise some other way to collect their check.

it is

probable that banks in the large cities would not receive these
checks, although they might, if marked -Not payable through an
express company".

We are making headway all the time, and while

we had a very pleasant luncheon with the two gentlemen and quite
an extended argument with Mr. Thralls, his viewpoint is somewhat
different from ours and I assume he will continue

to make his fight

although he stated positively that he did not favor the Kitchin Bill.
This morning the morning papers stated that Senator hardwick of Georgia had introduced a bill permitting the charging of exchange end I have asked Mr. Curtis to send for some copies.
With kind regards, I remain,
bincerely yours,

4

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

HHT/VCM
Enc.




FEDERAL RESERVE BANK
OF NEW YORK
April 20th, 1917.

My dear Governor:

Answering yours of April 16th in regard to your suggestione as to preliminary preparaticns which we have made in
case we should be called upon for much additional work in connec-

tion with the United States Government bond issue and as fiscal
Mr. Curtis and Mr. Higgins have been in

agents in other ways.

consultation with the Equitable Office Corporation and we can secure a large amount of space,about 11,000 feet square,on the same
floor adjacent to the space we have recently acquired, should that
develop.

We have this week leased another room on the Pine Street

side of the fifth floor.

We have been giving careful consideration to the increase
of our employees, training for special work, etc., and are prepared
to make reports on these subjects when you come East, as we hope
you may for a few days, but expect you to then return to Denver or
to the Adirondacks and not remain here longer than necessary just
now.

Sincerely yours,

Deputy GoVernor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

April 20th, 1917.

My dear Governor:
I have your confiden-A.Pali213-01917 in re foreign exchange

man and have read copy of letter you sent to party about whom you
had intimate knowledge as to his qualifications, but felt that
the matter would have to be handled very carefully.
We have had suggested to us and have talked with a Mr.
Jones who has been with Lazard Freres for 25 years - a man about
50 years of age or younger, has had very good experience in every
branch of the detail but has not bought or sold exchange.

He

could probably be secured for t2500 and we have thought of him as
one whc might come in now and organize the work and be able to do
what might develop in the very near future, leaving the higher
grade man, (should such a one be found necessary),to be secured
later.

We also started to-day to look up another man at the At-

lantic National Bank who is highly recommended.

We have followed

up a great many different suggestions but in view of your letter, I
am led to believe that it wouldbe wiser to secure all this data
and should you come on next week or week after to see Lord Cunliffe,
we could very easily go over these matters with you, having the
data at hand.

Will:follow this course unless you advise to the

contrary.

Sincerely yours,
031)4,44441144.1

DeptirrGover7r.
n
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.







FEDERAL RESERVE BANK
OF NEW YORK

April 20th, 1917.

My dear Governor:

I have your five letters of April 16th.
I note your thought that one officer at
the Briarcliff meeting is sufficient.

My opin-

ion was based on the fact that undoubtedly there
will come up at that meeting more or less criticism of the Federal Reserve collection system and
its doing away with exchange charges and that we
should be able to answer any criticism.
Sincerely yours,

Deputy Governor.

Benjamin Strong; Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

h(1

April 20th, 1917.

APR 2 3 1917

My dear Governor:

Regarding the treatment of those employees
of the bank who may enlist will state that this has
been held in suspense until the next meeting of the
Board.

Mr. Towne has been gathering considerable in-

formation on this subject and stated a few days ago
that he would present data as to what was being done
by others.

Governor Aiken is spending the week in Washington at the Hotel Shoreham with his family, I believe.
Imagine that things are moving so rapidly down there
that he will be unable to take much rest.
Sincerely yours,

Depefr6;;:rnor.
Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM

Misc. 34

F

',RAI RESERVE BANK
NEW YORK

(TO BE MAILED)

RHT/VCM

1:15 P. M.

CONFIRMATI

LornrELEGRAm

We have today telegraphed you as follows:
April 20, 1917.
Benjamin Strong,
4100 Montview Boulevard,
Denver, Colorado.

Just received following telegram from Washington: Quote. Owing to delay
in conference report on war bond bill Treasury certificates cannot be dated
or issued before about next Tuesday or Wednesday, while responses from Large:
cities have been entirely satisfactory Secretary has decided in order to
create wider market and to give country banks opportunity of subscribing
to place them at 3 percent interest instead of 2i. You are requested to
notify your member banks accordingly and receive subscriptions on this
Action very
basis. Certificates will mature June thirtieth. End quote.
much approved here. Stop. Total subscriptions received by us thuH far about
hundred and ten millions.
R. H. Treman.
B-2

Charge to Federal Reserve Bank,
http://fraser.stlouisfed.org/
Equitable Building.
Federal Reserve Bank of St. Louis




WESTE
Nits

TEL

NL
these three symbols

.er the check number of
.nis is edgy message. Othercharacter is indicated by the

appearing after the check.

NEWCOM B CARLTON, PRESIDENT

UNION

CLASS OF SERVICE SYM st,,_
Day Message

Blue

Night Message

AM

Day Letter

Nita

NL
If none of these three symbols
Night Letter

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

EIVED AT

?aV(f.\9\1

C212CH 109 BLUE

1917 APP 20 PM

Q. NEW YORK NY 347P 20 PR
.BENJAMIN STRONG

7 54

JA66
4100 MONTVIEW BLVD DENVER COLO

TO DELAY
,i1JST,RECEINED FOLLOWIV TELEGftAM FROM WASHINGTON QUOTE OWING

CERTIFICATES CANNOT
IN CONFERENCE REPORT ON WAR:MOND BILL TREASURY

-

OR WEDNESDAY WHILE
' BE DATED OR ISSUED BEFORE ABOUT NEXT-TUESDAY
RESPONSES FROM LkRGER'CITIES1HAVE BEEN ENTIRELY SATISFACTORY SECRETARY

HAS DECIDED IN ORDER TOACREATE WIDER MARKET AND TO GIVE COUNTRY

.BANKS OPPORTUNITY OF SUBSCRIBING TOtPLACE THEM AT:3-PERCENT

'INTEREST INSTEAD OF SUBSCRIBING TO PLACE THEM AT 3-PERCENT

'INTEREST INSTEAD OF 2 1'-2

YOU ARE REQUESTED TO NOTIFY yoo

,0

CLASS OF SERVICE SYMBOL

SERVICE

Day Message

sage
tter

,

Night Message

Blue

Blue

Day Letter

Nile

Night Message

Nits

Night Letter

N

NL
Night Letter
none of these three symbols
pears after the check (number of

If none of these three symbols

appears after the check number of
words)this is aday message. Otherwise its character is indicated bythe

ords)this is a day messagm OtherIse Its character is indicated by the

mbol appearing after the check.

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

CEIVED AT

C212CH SHEET

symbol appearing after the check.

1917 APR 20 PM 7 54
TWO

MEMBER BANKS ACCORDINGLY OD'RECEIVE(SUBSCRIPTIONS ON THIS BASIS

CERTIFICATES WILL MAUTRE JUNE THIRTIETH END QUOTE ACTION
MUCH, APPROVED HEREISTOP TOTAL SUBSCRIPTIONS

RECEIVED BY US,

'THUS FAR ABOUT ,HUNDRED AND TEN MILLIONS

OT




VERY

ra

Form 1204
CLASS OF SERVICE SYMBOL
Day Message

Day Letter

it Letter

I

of these three symbols

NL

If none of these tliree symbols

after the check (number of

appears after the check number of

its is a day message. Oth erdiameter is indicated by the

words)this is a day message. Other-.
wise its character is indicated by the

NEWCOMB CARLTON, PRESIDENT

wearing after the check.

OX" BRAM

V 03 AT

I1D BY 109 BLUE

Nite

Night Letter

L

Blue

Plight Message

DUP OF FONED MESSAGE

symbol appearing after the check.

uncl, WZ7 L001,

TELAPHONB TORX 254E.

Q NEWYORK N Y 347 PM APL 20-21
ffNJAMIAN STRONG
4100 MONTVIEW DENVER COLO
WASHINGTON QUOTE OWING TO DELAY
UST.RECEIVE FOLLOWING TELEGRO Fr)
BOND BILL TREASURY CERTIFICATES CANNOT
N CONFERENCE REPORT ON WAR
E DATED OR ISSUED BEFORE ABOUT NEXT TUESDAY OR WEDNESDAY
HI;,J RESPONSES FROM LARGER CITIES HAVE BEEN ENTIRELY SATISFACTORY
:CKETARY HAD DECIDED IN ORDER TO CREATE WIDER MARKET AND TO

IVE COUNTRY BANKS OPPORTUNIEY OF SUBSCRIBING TO PLACE THEM AT
HREE PERCENT INTEREST INSTEAD OF 21 -2 YOU ARE
MEMBERS BANKS ACCORBINGLY AND RECEIVE
EQUESTED TO NOTIFY YOUR
'ILL MATURE JUNE THIRTIETH
IIBSCRiPTIONS ON THIS BASIS CERTIFICATES
QUOTE ACTION VERY MUCH APPROVED HERE STOP TO-TAL SUBSCRIPTIONS
EIVED BY US THUS FAR ABOUT HUNDRED AND TEN MILLIONS




H HREMAN

1 056 AM




FEDERAL RESERVE BANK
OF NEW YORK

April 25th, 1917.

My dear Governor:

Reached New York this morning.
Subscriptions up to 10 o'clock A. M. amounted to
$134,000,000 plus, of which $106,000,000 plus were subscribed at 21- %.

Philadelphia reports that they will take

$11,000,000.

Aiken has just come in the bank and goes with me
to Washington for a dinner to be given by Secretary McAdoo

to Lord Cunliffe tonight.

Rhoads joins us at Philadelphia.

Bank tried to reach you yesterday all day but failed.

Hope that you can certainly come on to Chicago to meet

Lord Cunliffe but think it preferable to come to Washington
if ti will not be too great a strain upon you.
I have your letter stating that you will certainly
return the first week in June.

Hope to be back tomorrow morning to attend the
Directors meeting here and will write you more at length.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHT/VCM




4W
. 5 OF SERVICE

SYMBOL

e, Letter

M.

Night Messes-

WESTE

Ca,

AJ. SNA

Message

Mte

UNION

TELve AM

words )this isaday message. Otherwise its character Is indicated by the

symbol appearing after the cheek.

NEWCOM 5 CARLTON, PRESIDENT

Blue

Nita

Night Letter

wa

Day Letter
Night Message

WESTERN UNION

NL
Night Letter
If none of these three symbols
appears after the check number of

Day Messes

NL

If none of these three symbol,
appears after the check number o
words this is aday message. Other
wise its character is indicated by th,

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

symbol appearing after the check

RECEIVED AT
.-tzLIUT.111

Ttt

1.917,4 PR

!

26 PM 5

22

NEwYORK NY 1P 26

AmIN 3TRONG

1254
4100 MONTVIEw BLVD

ENVER. COLO

,FIED YOUR MOTHER AND ENGAGED ROOM AT HOTEL
PLAZE BEGINNING

RNING STOP ANTICIPATE YOUR COMING WITH PLEASURE STOP TRYING
_RD CUNLIFFE TO AR_ANGE FOR DINNER
H

Q.LEANii

FEDERAL RESERVE BANK
OF NEW YORK

o

May 15th, 1917.

'9\1

Dear Governor Strong:
Bank

England.

We received by registered mail this morning a
package from the Bank of England containing signature

cards, a special code and memorandum of igreement, together with two letters, copies of which I enclose herewith
for your information.

We will, of course, make formal acknowledgment
and if you have any suggestions as to other matters to be
taken up in connection with this kindly advise.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.
RHT/VCM
Enos.




FEDERAL RESERVE BANK
OF NEW YORK

Or to

00"\

May 15th, 1917.

My dear Governor:

I earnestly hope that you reached Denver safely and
that your strenuous ten or twelve days here did not affect you
adversely.

Mr. Woodward did not return home yesterday but is expected to-day and I will endeavor to see him before he sees Mr.
Perkins.

The Government bond Department seems to be assuming
shape although there are some conflicts of work and other matters which need to be straightened out.

The Federal Reserve Board has postponed the inauguration of the Federal exchange system until June 1st.

Yesterday

I sent out a communication to each of the Governors asking their
opinions on certain questions pertaining to the detail of the plan,
after receiving which we will formulate our views as to certain
modifications in the plan and forward to the Reserve Board.
We only purchased about

350,000 of bills yesterday.

Everything seems quiet pending the floating of the Liberty
Loan.

With kind regards, I remain,
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

http://fraser.stlouisfed.org/ RHT/VCM
Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK
OF NEW YORK
May 16, 1917.

MAY 2 0 1917
My dear Governor:

We have an adverse balance of $40,000,000. today at the
Clearing House, caused largely, we interpret it, by J. P. M.

ci

Co.

placing the ten checks of $5,000,000. each paid them yesterday for
the British' Government account in the city banks and instead of their

depositing them with us, sending them through the Clearing House.
We will withdraw $25,000,000. from the $126,000,000. in the Gold Settlement Fund and strengthen our cash position.

We have done nothing about the foreign exchange man, es
we interpreted it that you had some plan in your mind as to the proper
ones to secure and were expecting to wait until your return to carry
out those plans.

We hear nothing definite as yet as to the Hardwick amendment settlement, but assume that it will become law with the Owen Bill
enactment.

We have authorized our representatives, i. e. the express
companies and others, to accept New York Exchange from the nonmember
banks in payment of their items when presented in case it was not convenient for them to remit in cash.

The Newton Bill was made a thirtyday bill at Albany, which
will give them time to await developments as to the Hardwick amendment.
Matters in the Bond Department are shaping up so that it
will be an active organization soon.

Mr. Jay, I understand, had a talk with Mr. Woodward yesterday about securing the party to take my place.



Benjamin Strorg, Esq.

BANK OF NEW YORK

5/16/17.

I trust that you are living on the golf links as much of your
time as is possible and that you will continue to gain strength and
vigor pending your return.

I am making my plans to remain until July

let, as you suggested, and hope that by that time you will have secured
the other party to take my place.
With kind regards, I remain,
Sincerely yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.







FEDERAL RESERVE BANK
OF

kV*?

RK

MAY2 0 1917
May 16, 1917.
Dear Governor:

The Executive Committee met to-day, Mr. Vanderlip being absent up-state in connection with the Liberty Loan.
Mr. McGarrah brought up the question of the correspondence between himself and you as to settling balances at
the Clearing House.

This led to some discussion and then Mr.

Frew stated that a prominent banker had made suggestions to
him which he had incorporated in a paper, copy of which I enclose to you.

There was considerable argument as to the advisability of having Federal reserve notes not only as reserves
for banks but also as legal tender, and Mr. Frew made a motion that the matter be taken up with the Reserve Board, but
at the suggestion of one or two present he withdrew it.
I enclose a memorandum which Mr. Gidney prepared,
which possibly you Shave not seen.

Informal exchange of views was about all that was
accomplished to-day, but I think these meetings are really
helpful in framing sentiment.
Very truly yours,

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colo.

RHT/CEP



FEDERAL RESERVE BANK
OF NEW YORK

May 17th, 1917.
My dear Governor:

We have been notified to-day that we will be expected to pay out on Saturday $50,000,000 to France and we
//

are notifying the banks in which the $100,000,000 are deposited to make partial payments on Sat'urday.

mr. Crosby has

//

agreed to give us 48 hours advanee notice of these matters.
Mr. Jay was advised/by Mr. Crosby to-day that
another issue of $100,000,c0o of certificates of indebtedness
would be issued, payable hext Thursday, May 24, maturing July
30, 1917.

The Liberty/Loan Committee discussed same this

morning and recommen'ed that the rate be 3 1/4 per cent. and
I understand Mr. Crieby said he would consider same favorably.
I

learn4 to-day unofficially that there is being a

strenuous effort made on the part of business interests to defeat the Hardwick amendment and assume the matter will be determined this week.
With kind regards, I remain,
Sincerely yours,

/e,1)'61-14
Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.

RHTPCM



FEDERAL RESERVE BANK
OF NEW YORK

a(1. ter.
May 17th, 1917.

MAY 2 2 1917
.e,y

dear Governor:

In the matter of Federal reserve exchange, most of
the Governors seem to prefer a uniform form of draft and seem
to be agreed on the main points about which I asked their opinions.

We are having forms prepared by Mr. Jefferson and
they will be ready by to-morrow to submit.
I regret that we cannot postpone the inauguration
of the plan longer than the first of June to give it more consideration, but perhaps a trial of the system will be the quickest way to bring out whatever defects there are in it and demonstrate whether it will fulfill a need.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 1ontview Boulevard,
Denver, Colorado.
RHT/VCM




FEDERAL RESERVE BANK
OF NEW YORK

114k

May 18th, 1917.

MAY 2 2 1917
My dear Governor:

In the matter of Federal reserve exchange, we have pre-

pared forms for both the exchange and transfer drafts, samples of
which I enclose herewith for your information.

We expect to send

them to the reserve banks for their consideration and then pass
the suggestion on to Washington for their final decision.
We are in receipt of a telegram from Assistant Treasurer

Crosby announcing an additional issue of300,000,000 of 3 t 5
Treasury certificates and we are issuing a circular letter this afternoon to not only our member banks but state banks, bond houses,
etc.

We hope the additional quarter percent may assist somewhat

in placing them.

Mr. Crosby was somewhat averse to making the

rate higher than 3

°A

but finally decided to do so as it is a com-

promise between those who favored 3

and those who favored 3k %.

We learned last night that the hardwick amendment is being strongly debated and much opposition to the passage has develed.

We assume that a decision will be made to-day or to-morrow.
I assume that either Mr. Jay or Mr. Curtis is keeping

you posted as to the Liberty bond matter so I am not touching upon
this in my letters.
Are you keeping in touch with J. H. Perkins or will Mr.

Woodward, as Chairman of the Directors Committee, follow that up?




2

ERVE BANK OF NEW YORK

I, of course, have

Mr. Strong.

To

not felt that I should be the one to discuss

this with him unless he desired

it.

Sincerely yours,

Deputy Governor,

Benjamin Strong, Esq.,
4100 montview Boulevard,
Denver, Colorado.
RHT/VCM
Enos.




May 18, 1917.




FIRST NATIONAL BANK

No.

SYRACUSE, N. Y.
50-36

SYRACUSE, N. Y.,

P AY

191

TO THE

ORDER OF

DOLLARS

THE FEDERAL RESERVE BANK
OF
WILL PAY THIS CHECK UPON ADVICE

CASHIER

FROM AND FOR ACCOUNT OF THE
FEDERAL RESERVE BANK OF NEW YORK 1.120
SEND BY FIRST MAIL TO THE FEDERAL RESERVE BANK OF NEW YORK.

,ea OOOOO

FIRST NATIONAL BANK

No.

SYRACUSE, N. Y.._

TO

191

FEDERAL RESERVE BANK
OF

NEW YORK.

THIS SPACE

WE HAVE DRAWN CUR FEDERAL RESERVE TRANSFER DRAFT ON YOU PAYABLE AT THE

FEDERAL RESERVE BANK OF

191

IS TO BE USED
AS THE MEMBER BANK

FOR $

DESIRES

FAVOR OF

_ DOLLARS
RGE OUR ACCOUNT.
SIGNED

CASHIER

ILITY AT PAR.

CASH/ER




SYRACUSE. N

191

ORDER OF
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SOLD TO

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AMOUNT_

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_

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PAYABLE AT FEDERAL RESERVE BANK OF
Lt.

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No.

FIRST NATIONAL BANK
z

SYRACUSE. N. Y.

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191_

iv r. 2
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AMOUNT $

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EXCHANGE $

FEDERAL RESERVE BANK
OF NEW YORK

May 22nd, 1917.

My dear Governor:

I cannot tell you how glad I am to have your letter
of the 19th in which you state that Dr. Sewall has telephoned
you an excellent report of the examination he made after your
return.

Just keep up the good work, the outdoor life and the

rest as much as you can.

Mr. Jay being away on Saturday and Sunday for rest,
I stayed until Saturday noon and spent Sunday and Monday in Ithaca, returning this morning.

We are having an oversubscription of the 34- 7.ertifc
icates up to to-night, there being about $80,000,000 subscribed
from the eleven districts and we have $92,000,000 firm with pros4.1ww

pects of about $40,000,000 additional to-morrow.

The Committee in conference over the Owen Bill with the
Hardwick amendment is still in session.

Much opposition seems

to have developed on account of the business interests regarding
the passage of the Hardwick amendment, so its future is still unsettled.

You will note by the enclosed copy that Governor Whitman
has signed the martin

Bill

but the Newton Bill regarding exchange

is still in abeyance and is a 30 day bill.
Sincerely yours,

Deputy Governor.

Benjamin Strong, Esq.,
4100 Montview Boulevard,
Denver, Colorado.




Form 1201
OF SERVICE SYMBOL
Blue
ge

_etter
*hese

i
Mears after the ch.t
....

WESTEoap. UNION
AM
TEL
WESTERN UNION

Nite
NL
nbols
of

words)this is a day messr
wise its character is indicated by the
symbol appearing after the check.

NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-pRESIDENT

RECEIVED AT 915-919 SEVENTEENTH ST., DENVER, COLO.

289NY AZ 27 1 EXTRA

CLASS OF SERVICE SYMBOL
Day Message

they Letter

Blue

Night Message

Rite

N'gtit Letter

NL

If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing atter the check.

AL6vp1ris

'11 tre.:47

MitCr4

Q NEWYORK NY 356 PM MAY 23 1917
..NdAm IN STRONG

1:11

,471t

4100 MONTVIEW BLVD DENVER COLO

SUBSCRIPTION OF DISTRICT NUMBER TWO TO CERTIFICATES OF INDEBTEDNESS

TO BE ISSUED FRIDAY ONE HUNDRED AND SEVENTY FIVE MILLION FIVE
HUNDRED AND EIGHTY ONE THOUSAND DOLLARS




TREMAN
GOVERNOR

223 PM

im




Form
CLASS OF SERVICE DESIRED
' Day Message

WESTE

E

04.162N

UNION
M

VSTERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

TEL

%VW /11F

Receivers N

Check

Time Filed

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS, VICE-PRESIDENT
BELVIDERE BROOKS, VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

New York City
May 23, 1917.

Benj. Strong.
Denver.

Subscription of district No. 2 to certificates of indebtedness
will be issued Friday 4175,581,000.
R. H. Treman.




_L TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TER
uard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comm.. ..
r this
unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPL'ATED TELEGRAM AND PAID FORM. UCH
ttion whereof it is agreed between the sender of the telegram and this Company as follows:
he Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the amoun
sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum receive,
the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscur,
any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whethel
be negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated
on at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth o
t. thereof.
he Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach it:
elegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities c,
yond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor tc
him for such delivery at a reasonable price.
o responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such offict
he Company's messengers, he acts for that purpose as the agent of the sender.
he Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
le Company for transmission.
mcial terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to al.
terms.
o employee of the Company i8 authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
AY MESSAGES
ate expedited service.
M ESSAGES

3d up to 2.00 A.M. at reduced rates to be sent during the night
ered not earlier than the morning of the ensuing business day.
TT E: RS

rred day service at rates lower than the standard day mess as follows: One and one-half times the standard Night
,te for the transmission of 50 words or less and one-fifth of
1 rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

her consideration of the reduced rate for this special "Day
service, the following special terms in addition to those enu-

Letter shall be delivered on the day of its date absolutely and -at all
events; but that the Company's obligation in this respectig subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.
No employee of the Company is authorized to vary the foregoing.

NIGHT LETTE RS

Accepted up to midnight for delivery on the morning of the next
ensuing business day, at rates still lower than standard night message
rates, as follows: The standard day rate for 10 words shall be charged
for the transmission of 50 words Or less, and one-fifth of such standard
day rate for 10 words shall be charged for each additional 10 words or
less.

3,bove are hereby agreed to:

iy Letters may be forwarded by the Telegraph Company as a
service and the transmission and delivery of such Day Letters
I

respects, subordinate to the priority of transmission and

of regular telegrams.

ly Letters shall be written in plain English

rmissible,

Code language

us Day Letter may be delivered by the Telegraph Company
aoning the same to the addressee, and such delivery shall be a
discharge of the obligation of the Telegraph Company to
his Day Letter is received subject to the express understandagreement that the Company does not undertake that a Day

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in
add
enumerated above are hereby agreed ,to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language

is not permissible.

No employee of the Company is authorized to yarn the forenoina.

FEDERAL RESERVE BANK
OF NEW YORK
July 16, 1917.

Benjamin Strong, Esq.,
128 Gilpin Street,
Denver, Colorado.
Dear Governor Strong:

I spent yesterday in Ithaca, returning this morning and we have
had quite an eventful day as will be shown by the report enclosed.

I had two talks with Mr. McGarrah who stated that they tried to
hold the rate to 6% but there were very heavy maturities to-day, among
them .1;',50,000,000 of French credit and in addition there was the after-ef-

fect of the payments for New York City bonds, etc.
Strong demand for money and very few banks are in a position to
loan as they were close to their reserves.
Of the ,;r40,000,000 loaned on call about

40,000,000 were at 6%.

Expect the governors and a number of others to report to-morrow
for a several days, conference as arranged by Mr. Jay.

I hope you are taking in all the ozone possible and not giving
much thought to banking matters.

There will be plenty to do on your re-

turn.

Best wishes.

Sincerely yours,

Enc.




FEDERAL RESERVE BANK
OF NEW YORK
July 17, 1917.

Dear Governor Strong:

Your article on the importance of saving in

connection

with the next

government loan and your suggestions connected therewith received most favorable
comffendation,as they deserve to.

We have had a very pleasant call to-day from Governor Rains, who is
looking in

fine

shape.

He and you, as you look now, would certainly make a

good pair of healthy, vigorous men.

Mr. Warburg dropped in this morning and goes back to Washington to-night.
We had a talk with Mr. McGarrah to-day and impressed upon him the importance of
keeping the call money rate down.

Mr. McGarrah has talked with a number of

other bankers to-day and reports this afternoon that some are reluctant to go
into the same arrangement as before but evidently there will be some cooperation in trying to keep the rate down to 6 or less.

To-day the renewal rate

was 6 and closed at 5.

Governors Seay, Rhoads, Aiken, McDougal and Fancher, with a number of
associates, in all about 25

or

more, are here.

They have been working at 50

Wall Street but how much they have accomplished I have not been advised.

We

all expect to lunch together at Hahns so that they can work again this evening.
The enclosed letter will give you the details of to-day's business.
Curtis brought over from Washington the reporter who has attended the
governors' conferences, he bringing two assistants with him for the work of this
conference and Curtis will frame up the results.

Only two or three of the other banks are participating with us in investments and I shall take up with them While here their going in with us again



ANKOFNEWYORK

2

7/ 17/ 17

as it would help our situation in New York just now and it would seem fair that
they should join with us at such times rather than put the burden upon us of
carrying the load.

Only Chicago, Kansas City and St. Louis are participating

at present, I believe.
Kind regards.

Very truly yours,

Benjamin Strong, Esq.,
128 Gilpin Street,
Denver, Colorado.

Enc.




FEDERAL RESERVE BANK
OF NEW YORK
July 18, 1917.

Benjamin Strong, Esq.,
128 Gilpin Street,
Denver, Colorado.
-

Dear Governor Strong:

The five governors and others, twelve in all, dined at the Har-

vard Club last night and worked until midnight over the bond selling and
other details.

To-day Governor Kains cane in and lunched with us at the Bankers
Club and we had a discussion on the collection system, especially the proposals of Mr. Delano.
proval.

Your suggestions were read and met with general ap-

No difference of opinion among the governors that the suggestions

were not such as to justify their being put into effect.

The executive committee met to-day and discussed the organization
for the bond department and I think we are gradually coming to see things
alike and within a day or two

shall be able to begin active development. Mt.

Jay will probably advise you in detail.

The governors seem to feel that there should be another conference
of the governors the middle or latter part of August.
Very hot and sultry here.

Will try and write more in a day or

two when the rush is over.
Sincerely yours,

RHT/ELS




FEDERAL RESERVE BANK
OF NEW YORK
July 19, 1917.
Benjamin Strong, Esq.,
128 Gilpin Street,
Denver, Colorado.
Dear Governor Strong:

You are entirely right in keeping your correspondence limited to an extreme.

Mr. Kent has had several interviews with the Italian gentlemen and told
me that he would write you in detail concerning their position.

Briefly, they

propose three things:

They to earmark in Italy most dollar exchange here.
They to make all collections in Italy for the Federal reserve
bank.

We to enter into an arrangement with the Bank of Italy somewhat similar to that with the Bank of France.
They also made some other suggestions regarding the purchase of bills but
Mr. Kent evidently has handled them with great care and has shown them much courtesy.

I assume that we shall receive an application from them eventually in which they
will outline the basis on which we can serve them and they us.

I doubt if we can

do anything for them other than to make a formal agreement for such reciprocal arrangements as may be subsequently agreed upon and make such arrangement subject to
the change at the option of either party.

I have arranged to have a copy of the daily statement and of the bills
maturing and purchased sent to you each day.
Regarding the call money market this week, you already understand the

reasons, but the principal one, aside from the unusual congestion on that particular
day, is due, it seems to me, to the shifting of bank reserves of the country banks
into the Federal reserve bank.

We have had a very delicate money market for the

past week and expect it will continue until to-morrow or more probably early next



-4RAL RESERVE BANK OF NEW YORK

z

7/19/17.

Benjamin Strong, Esq.

week.

The Government will transfer to us ' 150,000,000. to-day and to-morrow
which we shall put out on order to Great Britain and probably Italy and Russia.

On

Monday we shall make another payment of :;;,50,000,000. probably to France, making a

total of

200,000,000. at this time and the Government will make another transfer

of ;;100,000,000. to us on Monday or Tuesday, thus saving us from making any with-

drawals for the immediate present from the banks in which the Government funds are
deposited.

The copy of the daily letter to Mr. Warburg and the statement sent you
will give you the details of the business.

The executive committee has finally approved of developing an organization
for the Bond Issue Division by making Mr. Sailer responsible and directing head, he
to secure first-class assistants and make up an immediate organization.

Sailer is

to be relieved of many of his detail duties, placing most of them on Hendricks who
will be practically, if not so called, first assistant cashier.

We shall probably

have Hendricks take a desk where he will be interrupted less and Higgins or some
other assistant cashier will be the one to receive the callers and interruptions,
turning over to Sailer the most important.

I have suggested to Sailer that he

should, in any event, arrange his work to do less detail and to give more study and
thought to the perfecting of the 'different departments in our organization, as SDIT4
of them need study.

This will promote Hendricks in the responsibility of his of-

fice and will entail the securing of probably two assistant cashiers, one being from
the country probably, as we talked.

I assume Mr. Jay will write you regarding tha

details of the Government loan organization as soon as he has a little leisure.

Most of the Liberty Loan people, including Governors Rhoads and Aiken returned home last night but Governors NbDougal, Fancher and Seay are here to-day attending Mr. Jay's informal conference on the subject of the "savings" organization.

Mr. Sailer having been unable to get a report from the Liberty Loan department
 finally


took up the question of the deposits of Government money and this morning

BANK OF NEW YORK

...7

Benjamin Strong, Esq.

7/19/17.

showed me a detailed report of the excess and deficient balances which he proposes
to immediately readjust and there will probably be about 020,000,000, to be deposited
in banks which have qualified but up to the present time have had no redeposits.

I am mighty glad to hear of Dr. Sewall's report but shall defer expressing
any opinion as to the date of your return until my next letter.
Best wishes as always.
Sincerely yours,

Enc.

Dictated
but not read.







0/111 1.4
CLASS OF SERVICE

SYMBOL

y Message

..y Letter

Blue

Night Message

Nile

ht Letter

NL

OrRECEIVED

TEL

Day Message

AM

Day Letter

Bi a
Nile

NL
Night Letter
If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

NEWCOMB CARLTON, PRESIDENT

CUSS OF SERVICE SYMBO,

Night Message

WESTERN UNION

If none of these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the check.

UNION

WESTEL,

symbol appearing after the check.

AT

Al3D KG 47
Q NEW YORK NY 1225 P JULY 23 -17
STRONG

128 GILPIN ST DENVER
LE JUST RECEIVED

READS

Nu)
'

CUWIld AN1)

ENEMY

sit4onla STUP

HAVE WEEK

KOO

BILL STOP CALL MONEY OPENED

'FEW BILLS

LEAVE IN NORMANDY ALL WELL
R

IN WASHING-10 UN lAviNG

AND RENEWED

A

THREE

OFFERED AND LOANS ONLY IN SMALL AMOUNTS
TREMAN

1146AM

'

wlim

NOW TWO STOP

STOP VERY HOT HERE

7

Form 1201
CLASS OF SERVICE SYMBOL

WESTEkiSSA UNION
sikeL
AM
,

-essage

atter
Night Message

Blue
NI+

,etter
NL
If none of these :hree symbols
appears after the check number of
wordslthis is day message. Otherwise its character is indicated by the
symbol appearing after the check.

RECEIVED AT

WESTERN UNION

. NEWCOMB CARLTON, PRESIDENT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

CLASS OF SERVICE

SYMBOL I

Day Message

Day Letter

Blue

Night Message

Nit -

NL
Night Letter
If none ar these three symbols
appears after the check number of
words)this is a day message. Otherwise its character is indicated by the
symbol appearing after the cheek.

S. E. CORNER PINE AND MONTGOMERY STS., SAN FRANCISCO A Mil s

281NY OC 47 BLUE
Q N EWYOR K NY 1225P AUG 2 1917

1293

BENJAMIN STRONG

128 GILPIN ST DENVER COLO
AM fiN ACCORD

WITH YOUR SUGGESTION AS TO NOT PURCHASING

CERTIFICATES EXCEPT POSSIBLY IN SMALL LOTS TO ROUND OUT STOP
WE MAILED CIRCULAR LETTER AND FORMS TO MEMBER BANKS LAST

NIGHT STOP ANTICIPATE OVERSUBSCRIPTION THIS ISSUE STILL VERY HOT HERE
CURTIS BEGINS VACATION TODAY ALL SEND GREETINGS




)-

R H TREMAN
414PM

POSTAL TELEGRAPH -COMMERCIAL CABLES
-..;EIVED AT MAIN OFFICE
EfIT

CRAMMER BUILDING

920 17y9 STREET

DENVER, COLO.

T9LILP.H0NE: MAIN 4500

CLARENCE H. MACKAY, PRESIDENT

TELEGRAM

DELIVERY No.
4_;)

(

The Postal Telegraph-Cable Company(Incorporated)transmits and delivers this message subject to the terms and conditions printed on the back r th
16-32352

I
blank

DESIGN PATENT 14. 40529

II r

I224P

leit'tEw ,y93PWAG

0A

BENJ.MIN

Lt(''

TRW*
128 GILPIN ST
-

o1 TFLEPIVI0NE0
. ......
T

-

DENVER COLO

_

BI-- -----

VERY MPORTANT INTERNATIONAL MATTER HAVING ARISEN I THINK IT MO
I/TORTANT YOU BE HFRE ON MONDAY OR AT THE LATEST TUESDAY MORNING FOR
PI-PORTANT CO1'iRENCE TUESDAY WITH GOVERNOR HARDING AND OTHERS E77P
YOUR COMING CONDIDENTIAL.




R H TPTTMA1T




POSTAL TELEGRAPH-COMMERCIAL CABLES
ALASKA
ENGLAND
VANCOUVER

PACIFIC

OCEAN

11.1
11JAPAN

SAN FRAN ,ISCO

YOKOHAMA
BERMUDA

ATLANTIC

OCEAN

HONOLULU

4f MANILA

ST. V INCEN

GUAM

THE GREATEST TELEGRAPH AND CABLE SYSTEM IN THE WORLD.

EXTENDS OVER TWO-THIRDS OF THE WAY AROUND THE EARTH.

THE POSTAL TELEGRAPH-CABLE COMPANY (INCORPORATED)
TRANSMITS AND DELIVERS THE WITHIN TELEGRAM SUBJECT Td THE FOLLOWING TERMS AND CONDITIONS:
To guard against mistakes or delays, the .sender of a telegram should order it REPEATED; that is, telegraphed back to the originating office for
comparison. For tills, one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on i face, THIS IS AN UNREPEATED

TELEGRAM AND PAID FOR AS SUCH, in consideration whereof it is agreed between the sender of the telegram and this Company as follows;
The Company shall not be liable for mistakes or delaya in the transmission or delivery, or for non-delivery, of any UNREPEATED ttel gram, beyond the
amount received for sending the same; nor for mistakes or delays in the transmission or delivery, or for nomdelivery,,,af any REPEATED telegram, beyond
fifty times the sum received for sending the same, UN-LESS SPECIALLY VALUED; nor in any ease for delays arising from unavoidable interruption ID the
working of its lines; NOR FOR ERRORS IN CIPHER OR OBSCURE- TELEGRAMS.
In any event the Company shall not be liable for damages for any mistakes or delays In the transmission or delivery, or for the non-delivery of this
telegram, whether caused by the negligence of its servants or otherwise, beyond, fifty times the REPEATED telegram rate,. at which amount this telegram, if
sent as a REPENTED telegram, is hereby valued, unless a greater Value is stated In writhig hereon at the time the telegnam is offered to the Company for

transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of one per cent. thereof.

8. The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary
to reach Its destination.
4.
Messages will be delivered free within the established free delivery limits of the terminal office. For delivery at a greater distance a special charge will be
made to cover the cost of such delivery.
6.
No responsibility regarding messages attaches to this company until the same are presented and accepted at one of its transmitting offices; and if any
message is Bent to such office by one of this Company's messengers, he acts as the agent of the sender for the purpose of delivering the message and any notice or
Instructions regarding it to the Company's agent in ifs said office.
The Company shall not be liable for damages or statutory penalties in any case where the claim is not presented In writing within sixty days after the
telegram is filed with the Company for Mansmission.
Ti' a
e terms and condifirms shall he binding upon the receiver as well as the sender of this telegram.
..
EMPLOYEE OF THIS COMPANY IS AUTHORIZED TO VARY THE FOREGOINn.l.

,-- ,

2S C. ADAMS,

CH
III

NICE-PRESIDENT.

CLARENCE H. MACKAY, PRESIDENT.
EDWARD REYNOLDS, VICE-PREST. AND GENERAL MANAGER.

CHARLES P, BRUCH,
VICE-PRESIDENT.

THE FASTEST TELEGRAPH SERVICE IN THE WORLD

OPERATOR'S NOTATIONS,

TIME SENT, ETC.

FEDERAL RESERVE BANK
OF NEW YORK
November 14, 19

/7

iviy dear Ciovernor:

When at Ithaca last ;::>aturday at _,ntling a meeting

of the Cornell trustees, I was invite

y Dr. Schuman to

attend a meeting described in the rolosed letter and at
that meeting I heard Professor
has recently come from one o

avenport, a professor who
the 'Western universities to

Cornell, propound some of. AlS views as outlined in the enmai"




closed letter.

took dee Lied issue with him as did two or three
f the other of t)

u have plenty of leisure and are rested,

When
I shall be gi

trustees and I think we made a "dent."

d.

to have you give me your views on the pro-

esals of tese various economists for my own satisfaction.

/With kind regards, I am,
-.6incere1y yours,.

zenjamin Strong, Lsq.,

The Homstead,
Hot 3prings, Va.

#IIT/ELS
Enc.




FEDERAL RESERVE BANK
OF NEW YORK

December 1, 1917.

Benjamin 3trong, Esq.,
0/0 Honorable Paul

IL:.

r2reasury Building,
.,;ashingto-n, D. G.

idy dear C)overnor:

but found
I called you by telephone this afternoon
not to disturb you.
that you were in a meeting so advised them
You will recall talcing a memorandum of recommendations

among the officers,
from Mr. Sailer in reference to rromotions

to me on that
etc., and said that you would write a memorandum
subject.

Tuesday next,
I assume that as you will be here on

in person or advise me so that our
you will present the matter
to me should be recommittee can make their report which seems
other committee on the
ported on next week in order that the

officers can be carefully
.alaries of those below the junior
considered'and submitted to you.
Very truly yours,

Mai PALS

Denver, Colorado,

Larch 2, 1917.

Dear Mr. Treman:

Thank you for repeating Governor Pallain's cable which interested
me very much.

oposed ar sement by our

considerable sentiment attached to th'
French friends and they are most pun

llious, more so

the way, in making courteous acknowle

this kind in order to evidene
It is most important
of course, will send no
it may be well to

are net %xpected in Loud'

Feder
New Yor

BS/CC




remaa, Esq.,
eserve Bank,

I

eats and

we are by

sead) expressions of

sfaction.

,:t we don't

so I,
llain direct from here, but

a CI

unications to

r in ,ind that if

cluded, it will be

R.

ze that there will be

I suppose you and the others

-5

purposes

hen matters are finally con:13

e of felicitations. Such things

ut they are much appreciated in Paris.




Denver, Colorado,
March 3, 1917.

Dear Mr. Treman:

Yours of the 28th is just received.
is certainly moderate,

it of renewal credits

s

the home and

York which

particularly for

headquarters of these awful instrumento
I will prepare a

sketch of a lett
concerni.

ago. Dr. Willis is the man o corresnend

.Joh I

w

ry sincerely
11. H. Treman, asq.,
Federal Reserve Bank,
New Yoric City.

the Argen

e well to d

In the meantime don't you think
the Philippine Bank arrant;

In

44, rs,

matter.
31 ethind

about

ote you sometime

Denver, Colorado,
Harch 3, 1917.

Dear Mr. Treman-

Not hearing further about Assay Office charges, I am getting a
little uneasy about delay in

dispatching the letter

to Pa/lain, so have
copies and two

prenared a new letter and a new memorandum, tvo
extra copies in each case, which I am o
these now accord with the situation as

sing

with t

assay office cs

your own views at the bank, they might as well be sent b

letter, and if
ges and with
be earliest

moils.

I have written Mr. C
be prepared and sent.

ter

changes which occur to

If, on consultatio
entrust these packages
request that one env

knows him wel

Mr. C




make any necessary further
h Whom you are advising.

deem it wise to do so, do not hesitate to
sserand, the French Ambassador, with a

next;

by one mail and the other by the

n anti event, I would be disposed to use care

n steamer direct to France and not via

that they

ILl

changes made in both the

P1

memorandum and the 1

s to just how these should

England.

of Channel mail and avoids the British Censor; if sent by

It obviates

mail direct an
Don't

t by Ethbassy Pouch, they should be registered.

me over cautious about these details, because many an

important matter has gone badly astray through one little slip.

Once more, let me cautior you that this is a most important transaction and 1 am keen that nothing be overlooked.
ports her

Without any of the ex-

to discuss the matter, I do not want the Bank to rely too




2/

To - Er. Treman.

L1arch 3, 1917.

comolete/y on my own language in either letter or memorandum.
Best success to this interesting development and than:4s for your

Patience in the course of its preparation.

Faithfully yours

R. H. Traman, Esq.,
Federal Reserve Bank,
New York City.

P.S.
Enos.

I will

leave it to

cables monied

enclose copies of the
siour Pallain.

Also please malt

The one thing I feel
from here is the price at

shipped. I have no me
calculation in connect
done.

rtain about getting exactly accurate
ench gold is to be ear-marked or
- the figures or the exchange
d must rely on you to have that




Denver, Colorado,
March 4, 1917.

Dear Mr.

TA1111;

Thank you for yours of the 28th relating to the Bank of England

eh were modified

ables. My letter to Br. Curtis explains

letter by the sorb o

after dictating the
extent are still

more modified as the

and to some

tar developr

iousness of

tha

ituation

unfolds.

t the responsibi-

On the thole, I am now

lders by a ver:; brief letter

lity for this matter be sq
to the Board thic

irritating, but Which will

will no

not sent to the Bank of

explain that the cab
England, and that

they

tion with me, in which I
was done right away, I
deuce.

it and

If they want t

t of the telephone conversathat unless something of that sort
ed with a wilfull violation of confi-

with me about it, no harm will come of

will'permit the restoration of

more friendly relations between

and members of the Board, Which I think is a
active offic
most necessary'tug just now.
Very sincerely yours,

A. H. Treman, Hsq.,
Federal Reserve Dank,
New York City.
;S/CC




Denver, Colorado,
March 4, 1917.

Dear Ur. Treman:

Yours of the 28th, enclosing the McDougal emission, is received.

I would not be disturbed by it. He has a
the answer to his proposal to mark (she°

payable in He'

ork exchange at

current rates, is to decline to handle
Should Mr. McDougal succeed in organizing a Stat

---

tion of Banks to handle check4.awn

on

Wh

say onetenth, it would si
because it would concert

nation Of exchange charges,

all of the exc.

devise, but I would no

e charging banks into one

shoot at. I think our best

organization and gi

plan is just to go right
collect checks on all th

business and when the time comes,

by the best measures that we can
masters.
ery sincerely yours,

R. H. Treman,
Bprk,
Federal Rese
New York City.

BS/CC

tsisted in charging




Denver, Colorado,
March 4, 1917.

Dear Mr. Treman:

I was delighted to have your letter of Feb
had no news directly from you for some days.

r7 27th as I had

You

e treated to a fine

no serious dnmez

combination between McDougal and Fowler
to your temper or ear-drums.
killing his own goose.

To tel

the truth, I t

If he wil

McDougal is

nue on his present course

with even more violence, he

thy in following; that is

what befell Congressman Fowler and

ect Lyford has also suffered

that fate.

I do not thin

t I agree wi

egory about deferring the

extension of our Col

state bankers are hesitating

about putting on a
The may pin
or two,

hey think are going to pinch.

tie a

after they have had them on a month

Ty will forget all about them.

lection

I believe pass

to do us
that I do no

damage, but

The danger point in the Col-

It was not in the power of the state banks
was our own member banks.

I am frank to say

ere is a bank of any importance in the Federal

Reserve System that would dare retire ender present conditions and
be very foolish if we do not put an all the harness
conceive of a

right now.

bank retiring when the country is facing war?

WB

will

Can you

This is the

psychological moment - possibly the only one we will have - to get right
after this /matter and I sincerely hope it is done, not through the post-

masters, but just by notifying the state banks that we are going to collect
checks on them, even if we have to aopoint agents in every town; they will




2.
'o - Mr. Treman.

March 4, 1917.

come across all right.

This is the beat time also to start a country wide campaign
get the State Banks in.

If I were governor of

the r'ederal Reserve Board

I would get together a committee of the Re ;,
a plan

with

...ernors,

them for an active campaign

Congress is not going to monkey with t
While this war pressure is on

to

prepare

at once.

matter of collec

and While the Reserve Bo

it and urging other amendment

On charges

s opposing

-.14000/

I am glad not to be
It would gratify ma

day you could find the

to write me a sl.cetc

on of t4e bank is working

and include a statement

ness, having to do with new

developments.

I have as
matters in the Clearing House relations,

ppointment of foreign correspondents,

statements of private

other

etc.

London and
do hope you will not

,70giceth ich

detail of the
really was not
It

is

fine to s

burdening yourself with a

mass of the

does not belong on your shoulders and which

e of the legacies that I was obliged to leave behind me.
the bank

in

such strong position.

As I have frequently

said, don't host ate to run along with about fifty millions invested.
present rates, this will take care of our dividends,

except such a

At

part

on the old accruals, and give everybody a feeling of satisfaction that we

amount to something.

We are amply

fortified for any reasonable strain

and dividends will help grease the wheels with the country banks.
Faithfully yours,

BS/CC




3.
Mr. Tremen.

March 4, 1917.

DX. Your personal letter, with admonitions as to mci behavior, etc.,

is a welcome addition to various contributions of this character that
have recently been received. I am taking good care of myself and there

really is no grounds for corn nlaint on that sc

well as I do.

R. H. Treman, Esq.,
Federal Reserve Bank,
New Yor,c City.

hope you do as




Denver, Colorado,
March 5, 1917.

Dear Mr. Treman:

Yours of Larch 1st regarding amendma

ived.

has gone over the dam and with an exhi

on of leek

think unmatched in bletory, our Congr

has succeeded

That water

triotiam I
disgracing the

country. I don't refer simply to amendments to our par

ular statute,

but to the act of a few mamb

S in d

lative program and holding

n s efforts to protect the

ing a Whole legis-

country.

About my corr pond

caption of a couple o.

dent jelly I hope to see

in Washington, with the ex]anged with Delano, Who eonfi-

e this month, they have been mild as milk.

In fact, I have bad n

e with the Board to speak of for a

long time, excent an

hange of letters with Warburg of no

part

consequence.

only for a
Thank

uld like to be able to visit Washington, if
frank talk with them..

for that you say about my health; it is coming along

.,111 right.

Very sincerely yours,
R. H. Treman,
Federal Reserve Bank,
New York City.

BS/CC




Misc.

34

P3/ RR
postal
12:45 a.m,

2F,-1AL RESERVE BANK
1F NEW YORK

(TO BE MAILED)

CONFIRMATION OF TELEGRAM
We have today telegraphed you as follows:
March 5, 1917.

R. H. TSAUGIA, Esq.,

Ithaca, New York.
erything quiet

Acceptance rates softer

Secretary announces one hundred

and fifty million one year government notes will be sold promptly public
subscription

Pierre Jay

8-2

Charge Fed. Res. Bank
120 Broadway




-,Aniver, Colorado,

Aprch 5, 1917.

Dear Mr. Trernan:
ACCUMULATIONS OF GOLD.

-eplying to yours of the let, 1 have written IAr. Jay fully on
this subject and won't repeat it now.
arrangements are concluded and the ot

it if our foreign

My

well afford to carry even $100,000 00

gold bars, bar

share of our own bank alone should not exceed

Don't overlook the fac

Office as to charges are
available by simply surre

R. H. Treman, Esq.,
Federal Reserve Bank,
New York City.

BS/C

in us, we could

Reserve Banks

ssibly the

at the outset.
with the Assay

efactory, ol

rs can be made instantly

certificates.




Denver, Colorado,
March 5, 1917.

Dear Mr. Traman

0V NT B1ID3.
My best opinion just now is to awai
:Aay purchases miess indeed the Board'

7u.ts before making

ranouncement L regard to the

us
purchase of $15,000,000 will make it ,,. essary for us t'

chase bonds

in anticipation of tenders by member banks; as to that

not up-to.-

date. It looks to me as th

near future.
Very truly yo

R. H. Treman, Seq.,
Federal Reserve Bank,
New York City.

BS/CC

ve som

ge issues in the




Denver, Colorado,

larch 5, 1917.

--

Dear Mr. Treman:

Quite a budget of mail reaches me from you today, including a

general letter of February 28th. Mr. Curtis
resignation and I am sorry to be unable

me about Mr. Cann's

estions, other

make any

than those sent him, as to a success°

We need a good

redit man to

work along side of Mr. Kenzel and the

or officers,

we need a

man who has a good understandine

en though at

the outset he hasn't very
man and break him in to d

ertheless get a good
ther work, pond

wit, making inquiries

partment. The only

reliab

through friends wh

putting candidates thro
Of course my own

get final word from
any

and I would no

activity in his own device and then, if you please,

third degree.

ery indefinite and must be until I

t will be difficult to get to Europe
1 any matters requiring attention by me

at the o
or in Washington, had been dealt with to the best of my
still h ng against hope that Aiken may be persuaded after
ability. I
all to join u
Under no

ideration, according to my view, should we be satis-

fied with anything but a man of first quality and experience to take the
office of Deputy Governor. There is no occasion to give the matter of
change

of altitude any

consideration in making plans.

There is some need

need of considering the intense heat of our midsummer months in New York,

combined with the humidity, and that was one reason for

considering the




To - Mr Traman.

March 5, 1917.

trip to Europe then rather than

later when the weather is more favor-

able.
1 do want,

however, to

developments and the

give some time to studying our ()an office

unfortunate situation regarding the Board in Washing-

ton, just as soon as possible.

he was an

seriously, for

I feel Cann's loss very

experienced and competent man.

Sometimes I think

ng trip

worth While for you or Mr. Jay to make

it might

be

t here to discuss

some of these matters.

Yours of :larch 1st is also recel
posal to keep ;:i100,000,000 of P

I agree wit
eserve notes i.

ult.

wish they could all be carr

ew

York and only

n't you think that

inclined to

a supply of ci;600,000,000

. Locke's pro-

believe it is too

much.

Our statemen

of only ,600,000 a year;

velopment of the polio
we should bring our
so b

reasing otr

shown earnings at the rate

e seriously impaired by further deFederal Reserve notes. Don't you think

aunt up to at least S50,000,000 and do

of bills?
Very sincerely yours,

R. H. Treman,
q.,
3ank,
Federal Rose
New York City.




Denver, Colorado,
March 5, 1917.

Dear Mr. Treman:
OF EUGLAND.

The enclosed let
It roc:Ares no acknowa

R. H. Treman,
Federal Reserve Ix
Dew York City.

Lord Ounliffe.

be in the aarik's files.

Denver, Colorado,
March 5, 1917.

Dear Mr. Treman:

Referring to my recent letter about the Philippine National

Bank, I have just received a note from Dr.
of a letter addressed to the Federal R

Bank of

in Which he tells re a copy has also
enclose copy of Dr. Willis' letter and

sent to our o
f my reply, bee

lustrates the desirability of
promptly arrangements of
a MRD of sufficient oxpor

deal of detail that

:nclosing a copy

erienced




Bsice

Encs. - 2.

c

I

e this il-

to take up

character a
rest of us of a zood
he Senior officers.
yours,

H. Treman, Esq.,
?ederal Reserve Bank,
Few York City.

Francisco,




Denver, Colorado,
March 6, 1917.

Dear Mr. Treman:

ttero%o

Thank you for your hand writ
I will add my vote to the others as

1 sincerely hope that Mr. Jay and M
of heart as to other members

believe have been much o
I hate to impo

11 A

Federal Reserve 3
New YorK City.

BS/CC

Curtis will ha
organization,

a charge

I verily

orked.

that this is the last.

R. H. Tx...9212au, ESN.

o the
e, but proposed

1ong hand lette

V

eh 2nd.

incerely

on you and trust




Denver, Colorado,
March 7, 1917.

Dear Mr. Traman:

Aiken and I have finally
arrang

to meet in Chic
so I am telegraphing you as per enclos
d confirmation,
may be right up to date in my

at the office. Will advis

R. H. Truman, Esq.,

Federal Reserve Bank,

New York City.

as to oi.ha

on Monday

order that I
s transpired

the r salt of our meeting.

TE
TEL

OF SERVICE DESIRED
Fast Day Message

Day Letter

UNItoN

WESTERN UNION'

Night Message

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

AM

NEWCOMB CARLTON, PRESIDfiNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

ranver, Colorado,
_arch 7, 1917.

R. H. Treman,
Pedoralnboorve Bank,

'1 York City.

Am leaving Saturday to meet Aiken Chicago on Lionday.

any eua;oetione you trave.
Benjamin Strong.

Chg. Benj. Stron6,




4100 Uontviciv 31v.

7e1ograph

1111rMIMEIP/WINVAT,'

EGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
A mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparison. For this,
d telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FOR AS SUCH,
eof it is agreed between the sender of the telegram and this Company as follows:
.ny shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEAED telegram, beyond the amount
the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum received
unless specially valued; nor in any case f or delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
ent the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
.genes of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
he time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to ba paid based on such value equal to one-tenth of

npany is hereby made the am,t of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
ms will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
for such delivery at a reasonable price.
sponsibility attaches to this Compa.iy concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
company's messengers, he acts for that purpose as the. agent of the sender.
Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
Company for transmission.
ia/ terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all

CMS.

THE WESTERN UN ION TELEGRAPH COMPANY

employee of the Company is authorized to vary the foregoing.

INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
W MESSAGES
11-r ate expedited service.
IT MESSAGES
;ept !cl up to 2.00 A.M. at reduced rates to be sent during the night

leliv wed not earlier than the inorning of the ensuing business day.
LE TTERS

defe wed day service at rates lower than the standard day mes-

e rate s as follows: One and one-half times the standard Night

,ter ra Le for the transmission of 50 words or less and one-fifth of
initial rate for each additional 10 words or less.
SPECIAL TERMS APPLYING TO DAY LETTERS:

n further consideration of the reduced rate for this special "Day
ter" service, the following special terms in addition to those enu-

Letter
Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuing
business day, at rates still lower than standard night message rates, as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for 10
words_ shall be charged for each additional 10 words or less.

-ated above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
rred service and the transmission and delivery of such Day Letters
in all respects, subordinate to the priority of transmission and

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

.

very of regular telegrams.
.

Day Letters shall be written in plain English.

ot permissible.
.

Code language

This Day Letter may be delivered by the Telegraph Company
eleph ming the same to the addressee, and such delivery shall be a

plete discharge of the obligation of the Telegraph Company to
ver.

This Day Letter is received subject to the express understandand agreement that
 the Company does not undertake that a Day


In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those
enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.

r
Denver, Colorado,
March 8, 1917.

Dear Mr. Treman:

Your telegram of today is just receiv

ads as follows:

"Curtis absent today. Think yo
urpose of
oundersto
telegram yesterday stop. Tuestio
s shall we in
t words
quote "ear-marked or" end quote
word shipped in
st sentence paragraph 12-(e) to correspond
h similar provi
ns paragraph 11-(d). Please wire.

To this I am replying as
I am very sorry to

misund.ersto

that that telegram eae j
ment and, as

they hav to

enclosed.

I was leavi

b

telephoned out

to reply to it withou

, whether you are doint

tam].so.
all.

Very sincerely,

BS/CC
Enc.




om the City, I was obliged

ther conditions permit you to try a

little golf now and t

ank,

to keep a dentist's aopoint-

or and in the interest of your health and

.;eneral behavior, I

R. H. Trzap,
Federal Reserve
New York City.

The fact is

of me; the drinks are on me.

We are having bully

Bee'

wire.

it?

I eer-

Receiver's No.

by Letter
Check

Night Message
NigM

Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

Time Filed

NEWCOMB CARLTON, PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,
March 8, 1917.
R. H. Premark,

rodoral Loserve Banc,
Bow Yort City, P. Y.

Would oortainly insov words mentionod in paragraph ,. Stop.
Undoubtedly amiAod by oversidht.
Benjamin Strong.

Chg. Benj. Strong,




41)0 Montview Blv.,
Denver, Colo.

ALL TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO THE FOLLOWING TERMS:
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comparisor. For this,
ne-half the unrepeated telegram rate is charged in addition.. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID FO% AS SUCH,
consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyoi.- the amount
:ceived f or sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fiftytimes the sum received
n. sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obscure
legram s.

In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
lused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
riting hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
ae per cent. thereof.
The Company is hereby made the aaont of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach its
:stination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
woo. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
ntract for him for such delivery at a reasonable price.
No responsibility attaches to this Compaxy concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory. penalties in any case where the claim is not presented in writing within sixty days after the telegram is
:c1 with the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all,
foregoing terms.
S. No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRESIDENT

CLASSES OF SERVICE
ST DAY MESSAGES
full-rate expedited service.
HT MESSAGES
.ccepted up to 2.00 A.m. at reduced rates to be sent during the night
delivered not earlier than the morning of the ensuing business day.

y LETTERS

deferred day service at rates lower than the standard day mesrates as follows: One and one-half times the standard Night
er rate for the transmission of 50 words or less and one-fifth of
initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

further consideration of the reduced rate for this special "Day
H." service, the following special terms in addition to those enu-

ted above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
red service and the transmission and delivery of such Day Letters
1

Letter shall be delivered, on the day of its date absolutely and at-a/1
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular 'telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuing
business day, at rates still lower than standard night message rates,!as
follows: The standard day rate for 10 words shall be charged for the transmission of 50 words or less, and one-fifth of such standard day rate for .10
words_ shall be charged for each additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:

all respects, subordinate to the priority of transmission and

In further consideration of the reduced rate for this special "Night
Letter" service, the following special terms in addition to those

Day Letters shall be written in plain English.

Night Letters may at the option of the Telegraph Company
be mailed at destination to the addressees, and the Company shall

zy of regular telegrams

Code language

permissible.

This Day Letter may be delivered by the Telegraph Company
ephoning the same to the addressee, arid such delivery shall be a

ete discharge of the obligation of the Telegraph Company to

This Day Letter is received subject to the express understandd agreement that the Company does not undertake that a Day



enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such cases with respect

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.




Denver, Colorado,
March 8, 1917.

Dear Mr. Treman:

With this I am enclosing a draft of a letter addressed to the
attempt in order

Banco de la Radon Argentina, Which is si
that you and the others may study it ov
of sending it in this or some modifie

and decide a

Orlit.

This is neculiarly a matter in mh ch we should

sem underine and his natural

standing with Mr. Warburg bee

acquaintance with this vhol

e, therefore, addressed a

letter to him, of which I

copy, and await further ad-

vices from you as to

h

Please have it

members of the Reserve Board

tha

should extend the scope of our operations

are disposed to believe

in South America over
fied and it is exceed/

under

tug, that our p

ield than I believe is vise or justi,

therefore, in order to avoid mis-

nary discussions with the Board should cover
fully and remove all possible ground for misurder-

all of thes
standings.

Ii wid

2 e se see my letter of January 26th on this subject.
Very sincerely yours,

R. H. Tremor, a.q.,
Federal Reserve Bank,
New York City.
BS/CC

Dies.

Denver, Colorado,
March 9, 1917.

Dear Mr. Treman:

Some of my telegrams from the office
some by Postal.

I have made an arrange$

-estern Union and

with the v,'ern Union Company

here which facilitates prompt delivery if messages and b

mand

ieve it would

be better if all of my wires are sent 'bs that Company.

I an leaving tomorrow

king foraard

to a visit with Aiken and

The statement of th bank just recei
wonderfully strong p sitio

000 of gold tucked away

and $228,000,000 of
I fully believe that we

certainly exhibits a

total of .g70,000,000, and
rd to build our investment account no

a bit in consequence.

The question

ing

/y arise as to our attitude in buy-

ort goVernmen

of the bo

bills run for more than three months,

would certai

ment obli

s and I have no information as to the terms

tio

government bil

be

disposed to buy

acceptances rather than these govern-

unless there is some real necessity for our taking the
or the government's benefit.

Very sincerely yours,

R. H. Treman, Esq.,
Federal Reserve Bank,
New York City.


BS/CC





Denver, Colorado,
March 15, 1917.

Dear Mr. Treman:
FOREL GN BANKING CONN

TI

Replying to yours of the 8th, mi
in these matters has been made some

we move ahead

ut of deference

views of the members of the Res

a letter from him which reac

we ought to at least start inquiri
to him explaining Why

I wrote 1.1r. Jay in reply to
go

New York

BS/CC

explaining why I thow;ht

no, will ask you to read my letter

tin 0. this subject.
ours,

R. H. Treman, Esq.,
Federal Res

the apparent




Denver, Colorado,
March 15, 1917.

Dear Mr. Treman:
FOREIGN BANKING CONNEZTIONS.

Replying to yours of the 8th, my

ut of deference

in these matters has been made some

go, explaining Why I thought

a letter from him which reac

nd will ask you to read mq letter

we ought to at least start inquirl

R. H. Treman, Esq.,
Federal Res
New York

BS1CC

the apparent

I wrote Mx. Jay in reply to

views of the members of the Res

to him explaining Why

we move ahead

tin

this subject.




Denver, Colorado,
March 15, 1917.

Dear Mr. Treman:

FEDERAL RESERVE EX

I had a talk with Aiken, as well as LieDougal a%iay, on
this subject and suggested a cour
some assistance.

You doubtle

get a situtation intelligently

n which I hope

difficult it really is to
s complicated as this one

after so long an absence
This is no ti

see the wisdom of

ad. 1 hope the Board will

ucing new machinery, the working

of whic'a will be d

ncerely yours,

R. H.
Fedora
New Yo

BS/CC

zon,

Esq.,.

°serve &Ink',
City.

Denver, Colorado,
March 15, 1917.

Dear Mr. Treman:

Bank of England.

The enclosed letter has just reached me from Montague Norman
and I am not replying to it until you and t

to read it and return

it to me. It wi

have had opportunity

xplain the

sent

somewhat and emphasize what I have a

long apprehend

probable necessity for a further treat

nt of this subj

correspondents On the grovala,

reading

kindly ret

as I will not ans

situation

that is the

t of our foreign
the letter after

comments from you

and the

others.

Referring to the se

personally

man's letter, I wrote him

and priva

the Board in ,ashington a

nation of the announcement of
possible under the

a nay, I believe, as

parent breach
hardl

under a
his associate

was briefly to

the

of the motives of the

pressure and I was so far away, and
would look at the

matter in

effect that it would
Board,when

Pederal-nierve Bank,
New Yor: City.

BS/CC

Enc.




they were

I felt sure that he and

the same way that I had.

Very sincerely yours,

R. H. .,2reman, Esq.,

such

sible criticism of the Board for an an

of conf

fair for me

circumstances and in

Denver, Colorado,
March 15, 1917.

Dear Mr. Treman:

Yours of the 6th

but it contained no

regarding statements of conditions is received,

enclosure.

Separately I received a

statement in new
orandum in Mrs.

form as of the close of business Februar

of "Larch

McLarents handwriting that it was omit

but I seem

to have no letter of Iffarch

The statement

referred to

3d,

on that subjec

urned herewith

make the fol-

lowing comments:
1.

Please consider

able to separate

that is held in New York

la thinK we could consolidate

two actounts LI this

2. Might it not

in
may

gold

It is physically available

in New York with s

the

the

one item?
.441

o show commercial oaper and

It wil

ising the extent to which member banks

discounting w

or unea

.

c sometimes might dive rise to discussion

I realize that

various ba
stirs up pub
Inv

acceptances

these seoarato items are available in

and the bulletin,

but it is the daily

press that

comment.
ments.

I am inclined to think that these

are

stated in

the best form, so long as our ownership of government bonds is so moderate.
The question is will the item in

as may be the case, we
The word

this

form always be satisfactory, when,

get loaded up with

"Reserve" which I have

governments.
marked

strikes me as

blind

and that it will not be understood; in fact, i do not understand it myself.




2.

March 15, 1917.

To - Mr. Treman.

The Words "and lawful money" give the impression that
silver certificates and green backs are held behind our note issue,
which is not the case.

Might this not be omitted entirely or changed

in some way so as to indicate that we simply hold

There might be

some advantage

side the items °Profit and Loss" and

from the total the item of "Current

golds

the liabilities

ombin

rent Earnings
ense" on

-end deducting

roes side, so

the roe

that we would have but one item among the liabilities

somewhat as follows:

"Prof

Cur

.

ich would read

r'nings (less current
'

expense)".

7. In this connect
consider in advanc

we shall show the two o

r. Jefferson be asked to

deriez the question of how
oks when we commence to buy

foreign exchange and 13.

, according to my view, imnortant that

our statement Should

too much information as to our actual

opera ions and 1 woul

after

o have Mr. Jefferson write ma his views

s gone into the subject. It will undoubtedly be necessary

and desirab

lInderstanding with Washington in advance on

this point.

Very sincerely yours,

R. H.

Tt2alan,

Log.,

Federal Reserve Bank,
New York City.

BS/CC




C4orado
1.1; 4.4.1.1i4U DEPT.

Denver,

March

ifl

OFC

PERS MAL.

FED.RRAL

.14r:=.,7,1161 nANit

Dear Mr. Treman:

let me thank you

This is in renly to yours of the 9

there awaiting

for sending me copies of letters to Ca aago, which we
my arrival.

I en:

This is my report about

There are I believe reasons which he believes ar
will prevent his coming to N

n t

e interview wit

compelling that

uture.

I am not

outweigh inducements that

definitely satisfied that

r me to return, or to take

might be apparent, if it

up mu work permane

e definitely

opinion in my own ml

etter net to

formed

the

make any final

change in the office of

in this regard until I have a chance

to talk it over with

hers.

before, possibly it would be feasible

my coming to New Yor

have a meeting n Chicago.

for u
Jay leavi a

even on

If this cannot be arranged by

en

This could be done by you and Mr.

on a Yriday and

returning say on Sunday or

Mond

if you could both arrange to

I am gr tly disappointed
could not urge

that Aiken

cannot

come to New York, but

im in the face of his very definite views.

Now in regard to the suggestion about Shifting Mr. Jay, would you
mind writing me just what the situation is
whom the suggestion was made and

in

regard to that plan, by

whether,r. Jay knows about it and feels

that it is either desirable for the batik or in his own interest.




I do

2.
To - Mr. Treman.

March 15, 1917.

not want to exoress an opinion about that move without hearing particu-

lars. If this delay in a decision is satisfactory to you and the others,
it will not be necessary to consider another man of the type you suggest
for the present.
I am more than satisfied that 1

s important t t i should make

that trip to Europe this summer, if i is at all possib to cross the
ocean and that, of course, effects my plans. I am wr rig separately
on that subject.

H. T,.eman, Esq.
Federal Reserve Bank
New York City, N. Y.
R




Denver, Colorado,
March 16, 1917.

Dear Mr. Treman
of your recent let-

I have not written you in reply to that pt

ter written by hand Which related to my expense, ut here, as I wanted
to think it over.

After doing so, it seems to mi

hat it is a matter
in New York.

Which should be considered by the off

a i would be

bank is no

Such worl: as I an doing out here

or not,

s connected with the be

willing and glad to do any way

d of the bank than my own record

and I am much more anxious

s than I am to excape expense.

should be untmoeccable in those

and the only other expenses

Miss Carlton re

one m ssages, for Which the bank has

incurred are for t

d stationery Which is not worth

reimbursed me re
discussing.

Mi
to sa

ariton give

requently Satu
ted to purely oe

is d

It

s been in

and the othe

11

day to her work,

ays and Sundays, but of course a part of her time

nal correspondence of ng aan.
ind to write you for sometime, asRing that you

der Whether at the proper

to again discuss the subject of mg own salary.
cerning which I think any suggestion
mo.

including I am sorry

time it may not

be necessary

These are not matters con-

or recommendation should be made by

It is much better that the officers of the bank Who are on duty de-

cide them and you know without my saying so that any arrangement Which you
make will be entirely agreeable and satisfactory to me.




The thing that troubles me the most is your own position.

I know

2.

To - Mr. Treman.

March 16, 1917.

What a sacrifice it must have meant to you to have your own business

and all of your home arrangements so terribly disarranged as has been

necessary by your act of devotion in takingti
relieve you just as much as possible an

work.

is no 3f

I want to

part of the

incentive for no to get well quickly. o won't you and sour associates
please decide these matters without as ng me to make
eerely yours

R. H. Tian, Esq.,
Pederar-Reserve 3
New York City.




suggestion?

Denver, Colorado,
March 17, 1917.

Dear Mr. :ppeen:

a bit of foundon
I mail q

Thanks for yours of the 13th.
returning from

Chicago and possibly in my haste o catch up 1 did not

write you as fully of my Chicago visit as I sho

have done.

Aiken

and we at once

was at the hotel awaiting my arrival
went into executive session, disct

particularly

"-'tter of his

coming to New York. He explal

he circumstances in detail

and while I do not think hi

be considered as final as to

the future, I ai satisfied that
join our staff in th

I not be possible for him to
am also satisfied that it

would be unwise fo

a

during which he c

f the bank

This, of course, w

summe

safe

you ar

request f

while I am there.

question if there was no prospect

but I fee
hat I think th

of my r

er a period of some months,

It 'bothers m

ve now of being able to get back this
conclusion stated in my last letter is the only
good deal to realize what a great sacrifice

ng and t

this involves your

nths' longer. One consolation that I get out of it,

but a thoroughly selfish one, is the

knowledge that the bank

hands and the further knowledge that

at

is in good

least one of our directors has

had opportunity to himself exeerience the many difficulties involved in
starting

a brand new

thing and adjusting all the porsona/ equations to

a satisfactory working basis.



Even when I get back, when que

importance arise, you can always count on my looking to you for an

11111.1111

2.

To - Mr. Treman.

Earch 17, 1917.

experienced aopreciation of the "domestic" as well as the "foreign"
situation.

Sunday evening McDougal joined us for d
enjoyable evening.

and we had a most

Monday morning Aiken and I

nt in going over a

good mnny matters, concerning which he will make

report to you.

The principal one was, of course, our re atione w
have pointed out to him, and I

portunity aho

wise to point out to some o

have been made

and no doubt other
knowledge.

40111

and,

ording to 1my vi

spirit

importance t -4..

:. i

develops,

there

the Board has ever realized

cal development of the System in its
has been due to the devotion of the Governors,
, their loyalty and cooperation

all branches of

tisfacti

made of which I have no

dissatisfaction

I d'

eat extent

and upbuildin

machin

bee

unhappiness
us.

will be a

the various Reserve Banks,

miler offers

If ge

Reserve Banks

dgo of attractive offers that

enior

might be a 74 :
gral
to what

f the

I have personal
to se

e made like-

the Board privately that

shaking a big stick over th
losing policy.

he Reserve Board.

:Ind a general

the System is of much Greater

vain-glorious effort by the Board to demonstrate or

establish its authority.

Along this line I think you will find Aiken

fully posted after our talk.

What you say about golf disappoints me. I have just been elected
a non-resident member of the Country Club here and wish you could get out
and start me off at the game again.

moderates,



i

expect

to play When the weather

but then no one realizes better than I do that your peace of

3.
To - Mr. Treman.

March 17, 1917.

mind depends on being on hand.

My

absence has

done much to upset my

neace of mind during these unsettled times, so I am an anpreciative
sufferer.

Continuing

about the Chicago meting, Aik

Reserve Banc in Chicago on Monday and had lunch
apd Heath.

We had a nice talk

and I t

by general apoearances,

my looks and behavior.

to get evidence of
health.

Aiken an

and early Eunddigy

friends.

R. R.
Federa

New Yor




eman, Esq.,
°serve Bank.,

ty.

visited the

hotel and had a

and that evening I

by Mr. Palmer, who happened in

I

th McDougal, Meliay

Afterwards Aiken and 1 ret

further session together

ment

and

was ove

ad to be joined

erve Bank after

had left.

who can measure my improveou an encouraging report as to

great pleasure to

see him and

me in such apparent good

most of the

evening, with Palmer,

ek to Denver with some

Denver

Denver, Colorado,
Larch 19, 1917.

Dear Mr. Treman:

I have yours of the 14th regarding the Dir, tors'

at the same time that one arrives from Warburg, i

both of which it

o see the bank

anpears that I am in a distinct minori
t dividends.

earning enough at least to pay its

esire to keen

past has been more consistent

dollars in our inv
ing dividend

and n

r

re

°mails, the Whole system is

it was and the
tment

the bank

ent from what it was a year or

that our siLuation is materially

vastly stronger t'

y in the

t I think we can all now agree

liquid and be neepared for

a year and a half ago

Meeting

of ten or fifteen million

h is the difference between earn-

account,

earning

ce

them

11 not

impair our ability to meet

a particle, so I still urge that
throug, u.derate purcha
millio

or thereabouts

not well

s we get our investment account up to fifty
if possible.

ount

on chickens before they are hatched, but

I am very cö4mb,and now believe that Warburg and his associates are
also, that when Congress meets the amendment to the note provisions of
the Federal Reserve Act will be

promptly

adopted, which will add over

$150,000,000 of gold to our reserve and will make the Federal Reserve
Bank of New York the strongest central bank that has ever existed in the
history of banking.



We will have a gold reserve of at least 90%.

If

2.

To

March 19, 1917.

Mr. Treman.

the amendment to the reserve provisions is also passed, 1 figure
it will add a trifle over $100,000,000 to our go
uive the Federal Reserve Bank of New York a tot

reserve and will

of about175,000,000.:

of cash, practically all gold. Without counting
to our strength,

this huge addition
resources upon

except, of course,

which we may figure slightly in emergency situations,
is no excuse whatever for our no

I agree with you that a
warrants; in fact, as you know,
only exception that 1

When they want money

R. H. Trer.
Federal
New Yor

BS/CC




rve Bank,
ity.

el that there

r full divide

norease our holdings of
d this for sometime pant, the
purchases from member banks

Denver, Colorado,

March 19, 1917.
Dear Mr. Treman:
I have just read Mr. Kenzelts memorandum
to governments.

March 9th in regard

The chances are that from now o

long period the Reserve banks will hav

possibly for a
losses on bonds

which they buy as a result of tenders by the
tory price of -oar. I suppose we
and being hung Ar) so to speak
suiting.

31s at a loss in order

think I would prefer to
will take them.

H

the statu-

the choice of

notes or selling the retying up too much money.

Federa
New Y

BS/CC




n Esq.,.
lescrve Bank,
City.

I

id to the extent that the market
on this score?
cerely yours,

R. H. 1

onverting

Denver, Colorado,
Larch 22, 1917.

Dear 1.1r. Treman:
=117,1

Montagu Norman has sent me copy of Cunliff

2nd and with a inemoranduLi enclosed

ng Which I wrote

ther

At the same time he sent me the ono

Curtis yesterday.

an Eaglish publication contain'

page from

from an artic u Which was

recently printed in the jour

can Bankers

Association.

I did not see the article nor do

journal out here regularly,

but it has resulted in s

e comment abroad because it

portrays such dense

c. and conditions.

interest of a bette

ese




Sditor of t
attenti

writes

of the facts

ay that the Ba

ho shoul' ;xplain vihat h

with our friend the

1 do not recall, and draw his

lioa

o 00me

matters, it might be a good

ential talk

e plan to have a very

In the

regarding British finance.

Ghen a man

f England is not a Government

institution,

ans. When he says tnat it has avoided al-

e of his facts. And when he says that war

liances, he

financing has not been done through the Bank of England, he portrays
such stupid ignokance that he subjects the Whole banking committey to

criticism. Almost every

either itself

statement in

the quoted part of

inaccurate or so incomplete as to portray all

of inaccuracy, and if we could arrange

ing article

the article is

the faults

published in the journal in

to have a discreet but illuminat-

regard to this matter, it might




2.

To - Mr. Treman.

March 22, 1917.

be a good thing. I would be glad to write it if

could be published

without my name appearing.

Very sincerely yo

R. H. Treman,
Federal Reserve Bank,
Few York Oity.

,




Denver, Colorado,
March 26, 1917.

Dear Mx. Tregnn:

1 judge from your letter that you have received a copy of Mx.
Irburgis letter of March 19th, addressed to me on the subject of the
proposed arrangement

with the 3anco de la Nacion

Argentina.

i am en-

closing copy of my reply as the best means of answering the specific
statements contained in his letter,

which I hope you

and the others

will consider before finally determining the form of letter to be sent.
Unfortunately, Ea:. Warburg and I

have

never seemed to agree in

regard to some features of these foreign accounts.

In these matters

please bear in mind, however, that the actual business is to be conducted by the Federal Reserve sank of New York, under the supervision
of the Federal Reserve Board, and I think we must apply our own convictions to these matters and

not be

unduly influenced by the views of any

one member of the Reserve Board.
Yours very truly,

-

-. H. Treman, Esq.,
Federal Reserve Bank,
New York City.

13s/cc

Denver, Colorado
Larch 26, 1917,

'if

prterf7ILL\i_
,

PIIMS3NAL.

A.

"

Dear Mr. Treman:

1

0 14

41?

I

%

rgPrre

,

';'t

Yours of the 20th reached me just as Lir. Delano

as leaving.
He will

be in New York shortly and will report to you just exactly what Dr. Sewall

that it will

told him in regard to my prospects and I hope
satisfactory.

be reassuring and

Meantime, I hope it won't be necessary for inc to make too

or

definite plans about either going to Europe
in the Adirondacks -- this can be determined

spending a part of the summer

better

after I return.

The suggestion about Mr. jay I think by all means should not be mentioned
to him.

I have discussed all of these office matters very fully with Mr.

Delano and he will explain to you better than I can by mail just What my
own views are.

My visit with Mr. Delano was
we

delightful. He arrived Thursday noon and

spent Thursday afternoon and evening together in continuous session, as

well as Friday morning.. Priday nooa we had luncheon at the University Club
with the officers of the Denver National banks.

In the afternoon

WO

saw Dr.

Semnil and in the evening Mr. and Mrs. 'Welborn, old friends of his, dined here.
That night Delano, .;elborn and I went to Pueblo in

Mr. Welborn's

private car

and Saturday went through the Colorado Fuel & Iron Co's plant there.
Welborn is President of that Company.

gr.

Saturday evening we dined at the Country

Club and I saw gr. Delano off for Dallas on t-ie night train.

I wish very much that I could have opportunity for a chat with you such
as I have had with Delano; I know it would be productive of good.

not have it before the first of June, you may be sure we will then.

If we can-




Faithfully yours,




Denver, Colorado,
March 26, 1916.

Dear Lr. Treman:

r copy of the

Llany thanKs for yours of Liarc% klst, ancl

I am writing you se

Executive Conmittee idinutes.

Banco de la Nacion Argentina matter, to

our

°op

ra.ely regarding the
les straight.
- it is not

About the sale of the United States one-year n

view of our obligation to

t that in

I have always

an important matter one way or the
repur

t would be better to keep

more completely and likewise

them, thereby showing our actu

;min to such proportions

making the earning. Our reserves

t this amounts to)

borrowing money at 2-

that

seems

to

be an unusual proce

have
in

viev(f

factoril

our ,strong c

su,zestlan about
this

is no evidence o

t

Iv

opinion

holdings of the bills

our earnings impaired rather unnecessarily

educed too -rap

bee

made th

so that our

too

it has been

In

ow the wa:1 I feel.

About our acc

ition.

I am also sorry that Governor Harding

ur rate for bills.

It has

worked very satis-

nd changes are really to be deplored when

necessity for

it.

objections to

the

there

change are as

follows:

First, with a maximum rate of 2;; we have enough latitude so

that

frequent changes are avoided. When the difference between maxim= and
minimum is reduced by

curtailed and we

are

raisin,_,

dependent

will be forced upon us when

the minimum,
upon

our latitude is necessarily

approval of changes of rate, which

rates decline.

In

other words,

the Board




2.

To - Mr. Treman.

in Washington can

-

March 26, 1917.

restrict our activities by declining to reduce the

rate.
The second objection applies to the mforimum rate which never
should have been established.

If the maximum

The rate should be a minimum rate only.

rate is designed to

are so bad in quality that they

prevent the .purchase of bills that

bring more

than 4,

method is an unsound one because it is exercised

not based upon knowledge of the credit of

discount, then that
a method which is

acceptors and endorsers.

If

it is designed to restrict the quantity of bills purchased, it would
operate against all bills good or bad whenever the market advanced

sharply and, of

course, at just the time when we should be discounting

freely and should not have such restrictions imposed upon us.

1 would

like to sec this matter held up until my return, if possible.

The rate

has worked all right for nearly two years and

don't see the force of

any argument for its change.
Th

expenses.

executive coundttee is very considerate in regard to mg

t am enclosing a memo. of one- alf of Miss Carlton's

sation since she has been with me, if you and the others

satisfied that the bank

are

compen-

thoroughly

should pay that proportion.

I am glad that the additional space is being taken for the bank.
Best regards to you and the others.
Very sincerely yours,
R. H. Trerna,...,

Federal -RiTserve Bank,
New York City.
BB/CC
Eac.

Denver, Colorado,

March 27, 1917.

Dear Mr. Treman:

I have yours of the 26th, returning* Monta6u Norman's letter.

You will appreciate from reading it the character of the friendly relations which we will have no difficulty in establishing with the Baru( of
England and it seems appropriate

to say that our action

in approaching

them as we did a year age, at a time When things looked rather black,

was the means of establishing a basis of relationship that could have
been developed

in

no othar way, hence

my anxiety to take advantage of it.

Very sincerely yours,

R. H. rilman,

Federal "oserve Bank,
New York City.

:bS/CC




Denver, Colorad.o,

March 27, 1917.

Dear Mr. Treman:

Referring to your report that the Liberty National Bank is now
authorized to settle their Clearing House balances, let me draw your attention to one matter
you.

iu

this connection which may not have occurred to

There are doubtless other bans in the Clearing House which would

be glad to mai:e the same arrangements as the Liberty and the Corn Exchange.

If those banks that like the plan are permitted to employ it, the consequences may be:
(1)

.(2)

That the pressure which would be exerted by those
members to make the plan universal will be lost.
That our balances may awing unduly one way or another,
because acting for only a few banks we would not get
the benefit of both the credit and the debit balances
and, consequently, an average.

-!Iis is just a suggestion for your consideration.

Very truly yours,

R. H. Treman, 2sq.,
Federal Reserve Bank,
New York City.

BS/CC




4




Denver, Colorado,
March 27, 1917.

"T!Pr:4.

PERSONAL.

ls.4iort

Dear Mr. Treman:

Your hand-written letter
by my other

letter of

1,11V1"-

argjilitiah zzno. is really fully answered

this date. The suggestion as to Mr. Jay to which

MI refer would not be in Mr. Jay's interest nor in the interest of the
bank.

If the matter had developed to the point Where he was aware of

any such plan, I would not hesitate to either write him or, preferably,
have a talk with him, and believe I could convince him of that fact.

Should any one be disposed to press this matter before my return, you are
authorized to repeat this as being my opinion, but neither Ir. Jay nor
the bank would benefit by such an arrangement.

All

these

matters, of

course, make me keen to get back but feel that the status quo if preserved until June is really all that I need.
am delighted by the arrangement for Mrs. idcLaren's salary

and as to the

adjustment of Miss

Canton's salary, anything is agreeable

to me; in fact it would be entirely agreeable for me to pay it all.

Won't you say to Er. Palmer When you see him that I enjoyed having
a visit with him tremendously; it was really an unexpected treat.

Now, as to your own work
feel

that you

at the bank.

have just been there trying.

It is all wrong for you to

18 a matter of fact, your ad-

ministration has been over the most difficult period possible and under
the most trying circumstances and at a great sacrifice

to yourself. I will

never cease to be grateful and hope some day in some way to be

able to show

2.
To - Mr. Treman.

Larch 27, 1917.

my appreciation.

Many thanks and very warm thanks for all that you write me and

all that you have done.
Faithfully yours,

R. H. Treman, Esq.,
New York City.

BS/CC




vitt

r""4.-.4A
I,

oto*

wttC

r aiu




Copy

March 27, 1917.

Mr. R. H. Treman, Deputy Governor,
ederal Reserve Bank of New York,
New York, N. Y.
Dear Mr. Treman:

On the 23rd instant I acknowledged your letter
of March 21, in which you made inquiry concerning Mr. R. S.
Hecht, and told you of my intention of inTliring with a view to
securing in your behalf such information as I understood you
desired.

From your letter it was evident that you were under
the impression that Mr. Hecht had at one time been with the
First National Bank of Chicago. Inuiry here, however, discloses
I have learned that Mr.
that you were evidently misinformed.
R. S. Hecht, now Vice-President of the Hibernian Trust Company of
New Orleans, was for a number of years in the employ of the
It is quite a number of
Comlarcial National Bank of this city.
years since Mr. Hecht left Chicago, but officers of the Continental
& Commercial National Bank, who were formerly with the Commercial
National Bank of Cicago, tell me that Mr. Hecht occupied a
clerical position in the Foreign Exchange Department of the bank
and that he was 4 young man of good ability. Another banker who
knows Mr. Hecht speaks well of his ability, although I am not
able to get any up-:lo-date information suChaas I know you must be
I regret very much my inability to do so.
seeking.

Very truly yours,

Governor.




Denver, Colorado,
March 31, 1917.

Dear Mr. Treman:

Yours of the 27th is just received. 1 have known of Hgeht rather
slightly and have had the improsrion that he has been a very active American
Bankers Association man. but really do not know enough about him to form
a vex.' positive opinion one way

or another. It rill not be difficult to

get Information from 1;:r. Kent of the Bankers Trust Comnany, who I believe
knows him very well.

.

I wish I could make up my mind that we could afford

to promote one of Vie Junior officers, provided of course we definitely
accepted

the nece:-eity later on of getting

the organization, in case I were obliged to give up.

toll you very

frankly about

outside of

a permanent Governor

Hecht, if you think it

;ienty will

undoubtedly

desirable to pursue

the

matter further, and I would like to hear what he says.
In connection with the Governors' Conference,
the matter of

sold

I suggest discussing

bars as some of the other banks ma 7 want to join with

us in accumulating bars.

their participation in

It

will be a natural arrangement on

any foreign

account of

business that we undertake.

also be a good plan to remind the Governors that this is a _,00d
pursue the policy

It

might

time to

energetically of accumulating gold, oven at some sacrifice

of earnings. I have no doubt that Congress will pass the amendments to the

note provisions of the Act as one of the preparedness
immensely strengthening our position and we ought
Of course

consideration will be given to

Seattle failures,

measures, thereby

to take advantage of it.

the situation growing out of the

where it seems to me some

obvious lessons can be

learned




2.
To - Mr. Treman.

!:iarch 31, 1917.

by all narties.
After some delightful summer weather, we had a fall of snow last

night and today it is cold and disagreeable, Allah puts a stop for the
present to my :tlolf.
I hone you have a most sucoeseful meeting in Washington.

Best regards to you all.
VaithfUlly yours,

R. H. Treman, Esq.,

Veo.eral Reserve Banc,
New York City, N. Y.

BS/CC




-

Denver, Colorado,
March 31, 1917.

Dear iir. Treman:

Yours of the 27th is just received and I am amazed to learn that the

article in the Journal was written by an ing1ish Banker. It is most misleading and inaccurate. 1 will try and prepare a paragraph and send it to
you but, of course, care must be exercised that it should not be known es
having come from the bank or from me.

Thank you for makinb the inquiry and setting Welton straight.
(

B. H. T4eugAn, bsq.,
Federal Reserve Rank,
New York City.

Very sincerely yours,

Form 1
DESIRED

IN ESTE i/SaNA UNION

.cer

E

ViESTERN UNION

.esmgo

Message

Night Letter
strons should mark an X opposite the class of service desired;
THE TELEGRAM
WILL BE TRANSMITTED AS A
, FAST DAY MESSAGE.
LOTHERWISE

Receiver's No

Check

WNW, AV

TEL :PI

AM

NEWCOMB CARLTON, PRESIDENT
GEORGE W. E. ATKINS. VICE-PRESIDENT
BELVIDERE BROOKS. VICE-PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colo.,
April -

R. H. Treman,
Federal rffdrve Bank,
New York City.
Telegram received.

Am delighted at change reported

and hope you are successful in placing the whole issue and more.




Strong.

41110

Time Filed

..L TELEGRAMS TAKEN BY THIS COMPANY ARE SUBJECT TO ltrIE FOLLOWING TL
uard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for comps/.
unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID Ft.,
Ilion whereof it is agreed between the sender of the telegram and this Company as follows:
he Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond
sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum
the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or o.
any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whet,
he negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated i.
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elegrams will be delivered free within one-half mile of the Company's office in t6wns of 5,000 population or less, and within one mile of such office in other cities or
yond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
him for such delivery at a reasonable price.
o responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
he Company's messengers, he acts for that purpose as the agent of the sender.
he Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram is
se Company for transmission.
_

mcial terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to all
r

'o

terms.
employee of the Company is authorized to vary the foregoing.

THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON, PRES:DENT

CLASSES OF SERVICE
kY MESSAGES
ate expedited service.
ME.<SAGES

up to 2.00 A.M. at reduced rates to be sent during the night
red not earlier than the, morning of the ensuing business day.
TERS

rod day service at rates lower than the standard day mesas follows: One and one-half times the standard Night
e for the transmission of 50 words or less and one-fifth of
rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

her consideration of the reduced rate for this special "Day
ervic,e, the following special terms in addition to those enu-

bove are hereby agreed to:
7 Letters may be forwarded by the Telegraph Company as a
ervice and the transmission and delivery of such Day Letters
respects, subordinate to the priority of transmission and
[ regular telegrams.
7 Letters shall be written in plain English. Code language
nissible.

3 Day Letter may be delivered by the Telegraph Company
ming the same to the addressee, and such delivery shall be a
discharge of the obligation of the Telegraph Company to
s Day Letter is received subject to the express understandgreement that the Company does not undertake that a Day



Letter shall be delivered on the day of its date absolutely and at all
events; but that the Company's obligation in this respect is subject
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of reg
ular telegrams under the conditions named above.
No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS

Accepted up to midnight for delivery on the morning of -tile next
ensuing business day, at rates still lower than standard night -message
rates, as follows: The standard day rate for 10 words shall bb eharggd
for the transmission of 50 words or less, and one-fifth of SuCh standard
day rate for 10 words shall be charged for each additional 10.ifords or
less.

SPECIAL TERMS APPLYING TO NIGHT LETTERS:

.

In further consideration of the reduced rate for this special "Night...
Letter" service, the following special terms in addition to those.enumerated above are hereby agreed to:

Night Letters may at the option of the Telegraph Company,
be mailed at destination to the addressees, and the Company shall
be deemed to have discharged its obligation in such cases with respect

ii

to delivery by mailing such Night Letters at destination, postage
prepaid.

Night Letters shall be written M plain English. Code language
is not permissible.
No employee of the Company is authorized to vary the foregoing.




Denver, Colorado,

April 2, 1917.

Dea r Ur. Tronan:

I am just advisiag Colonel Farnsworth of my iaabilitj to attend. the Sprin,-; meetinc; of the Executive Council, INA I hope that some

one from the Bank can be there as this year we will need representat-

tion without fail.

V

Very sincerely lours;

L-wivur, Colorado,

April 2, 1917.

Dear Mr. Treman:

Lnclosed is a rather hastily dictated article which you
justified in turning over to Welton.

may feel

It is, of course, highly important

that the source of the article be carefully preserved in confidence which
I am sure you can arrange

with him

without difficulty.

If, for any reason,

the article does not strie you as being a wise one, do not hesitate to
tone it down.

I am so much out of touch with What is going on just now

that it is a little difficult to judge what is the best character to give
it.

Very sincerely yours,

R. H. Tan, Lsq.,

FederarResarve Bank,
New York City, N. Y.

BS/3C

&Lc.




The article appearing in our January nudeer, entitled "Eater the
Bank of England"

has brought a request from some of our readers to amplify

the statements it contained, which it is claimed were misleading as to the

operations of the Bank of England during war times, owing to the brevity of
the article.

Inquiry has been made respecting the relations proposed between the

Bank of

England and the Federal Reserve Bank of Ilea York, as well as the ac-

tivities of the Bank of England in war financing, in reply to which there has
-

been given us from a confidential source the following statements

The Federal Reserve At authorizes Federal Reserve Banks, with the
consent of the Federal Reserve Board,

to establish offices or agencies or

appoint correspondents in foreign countries. Aitrough such offices, agencies

or

correspondents Federal Reserve Banks are permitted by the Federal Reserve

Act to deal in gold to open banking accounts in foreign

countries

and to buy

commercial bills Which have not more than 90 days to run, exclusive of days
of grace, and Which must bear the obligations of two responsible parties.

They have noNpower to deal in investments, to receive deposits (save from the

correspondent

r--

or agent)

nor

to open commercial credits.

It will be seen that the scope of the activities of a Federal Reserve
Bank in the

foreign be.nking field is very properly quite restricted, so much

so in fact that all

transactions which theymay need to engage in can be very

well conducted through an agent or correspondent, rather than by means of the
more elaborate and expensive machinery of its own office.
fore, that the Ban

of England should act as the correspondent

The

in London of

the Federal Reserve Banks would appear to suggest a very simple banking arrangement of such a character as any two banking




institutions might conclude

2.

with each other; it is in fact chiefly notable in that these two institutions,

with their immense reserves and with the prestige which always attaches to the
business of a central or reserve bank, would doubtless conduct their business
with each other along broad lines of National interest, rather than upon the
more conventional

banks

basis

of private profit.

It is not at all surprising that

of such similar character and particularly those which are charged with

the custody of the banking reserves of the nation should prefer to do business
directly with each other, rather than through intermediaries, as the objects
to be served by an alliance of this sort could best be served by a coordinated
and friendly policy, rather than by a discordant and antagonistic or competitive policy.

Those Who are acquainted with the Bank of

Englshd,

its management

and policy realize that such a relationship is in a measure a departure from
a certain isolation Which has characterized that bank's history in the past,

just as has been the case with the Bank of Franco.

But those two institutions

have themselves found it desirable in the past to establish relations of importance with each other to which in fact prominence attaches, whenever an
emergency develops the need for coordinating their policy, or for mutual cooperation.

no doubt, recognition of the importance and advantage of
It was,

such cooperation Which brought about the suggestion of the alliances now in
contemplation by the Federal Reserve Banks., and the Bank of Englpnfl.

The suggestion that British war financing has not been done through
the Bank of England is a most misleading comment upon the relations which
subsist between the Treasury of the British Government and the Bank of England.

highly perfected budget system in England naturally results in considerable
economy, far beyond that practiced in this country, in avoiding carrying idle
treasury balances.




As the revenues of the British Government are collected

3.

aora largely at certain periods of the year than others,

expenditures and

revenues must be balanced from time to time by means of short loans, Which

usually in normal times, and particularly now in war times, are conducted
by the British Government on a large scale, with or through the Bank of
England.

In fact, the Bank of England serves as

ernment in almost

every department of

banker for the

British Gov-

its affairs, it is the agent through

which the government floats practically all of its loans and the only departure
of importance Which has been made during the period of the war has been in
the issue of the so-called "currency mites".

are direct obligations Of

by the

the

These

are not bank notes but

Treasury; they are secured by gold held in trust

Bank of England for the Government's account, by interest bearing

Goaernment obligations which are purchased by Government Commissioners and

deposited with the Bank of England and by
Bank of England.

cash balances on

deposit with the

it is an men question Which has been much discussed in

England, whether these notes

should have been issued by the

Government, even

with interest bearing obligations and gold and cash balances as security, or
whether they should not have been issued as small denomination bank notes by
the Bank of England, thereby, of course, considerably weakening the position
of the central bank of deposit.

When one contemnlates the character and extent of the transactions
which the Bank of

sgland has conducted for the British Government throughout

the entire period of

the

war, one need not be surprised to discover that that

fine old institution has stood as an anchor

in

the center of the greatest net-

work of banking and of the greatest volume of Government financing over developed in the world's history, and has taken the -Shock and strain of the

past two and a half years without disturbance to its credit, or to the public's
confidence in its stability.




The first great financial transaction undertaken

4.

by the bank immediately upon the outbreak of the war is

net

understood or

The British

appreciated in this country, either in its scope or significance.

Government under the terms of the Moratorium undertook to take up so-called
"frozen bills".

These were purchased by the Bank of England for the Govern-

ment's account.

The extent of the obligation assumed by the Government and

by the Bank of England in this transaction cannot be accurately stated,

but

it amounted to many hundred millions of dollars and actually resulted in huge
purchases of bills for government account by the bank.

Thu sm

Which are still unnaid are now being liquidated by the Bank of England for
government account.

in the English

This transaction restored the circulation of life blood

banking

system, ahich had been arrested by the war.

England's

financial heart started to Seat again.

Practically all long time, as well as short time, loans of the
British Government, negotiated at home have been issued through the Benw of
England.

It is generally

understood that the management of the last loan

necessitated the Bankisrsenting a large buildingentire and employing a special
staff of nearly 2000 clerks for that purpose only.

We in this a)untry who conduct our business so largely under the
guidance and restraint's of statute law have not yet realized the

benefits and

advantages of respect for tradition, for time honored custom and for
tions Which

have grown naturally instead of arbitrarily.

ness institutions of that
respect than the "Old Lady




character none is entitled to

of Threadneedle Street."

institu-

Among eeiglish busi-

greater admiration and

Denver, Colorado,
April 2, 1917.

Dear Mr. Treman:

Replying to yours of the 29th ult. regarding that

letter to

Dr.

Vissering. Lluch the sae reason inspired me to make that suggestion as
in the case of the Argentine.

old personal friend of

As

' e.rburg's.

matter of fact, Dr.

Vissering is

an

it came to my knowledge that some of

the members of the Reserve Board and possibly Warburg felt that we were

pressing

the English arrangement to the exclusion

and that the

bank should indicate some desire to develop foreign relations

more generally
matter rest,

of all other proposals

than we had yet

indleated,

1 au quite

but this is a case where at the

personal discussion with

Warburg might avoid

do not correspond with him

about these bank

any misunderstandings or cross-purposes,

If the Putchmen are discriminating

future

BS/CC




misunderstanding.

I

matters because I want to avoid

and will leave it to you
against us, for , odness sake

Very sincerely yours,

New York City.

let the

first opportunity a little

don't lets go courting,them.

R. H. Trsga, Esq.,
Federarneserve Bank,

content to




Denver, Colorado,
April 2, 1917.

Dear Mr. Treman:

The enclosed letter is just received from a Denver man, who is
a director In the Federal :ieserve Bank

ofnsas City.

He is a very

active individual in just such directions as indicated by this letter

If I see him, I will try and ascertain what bank it was, but will not
make a point of it.
Very sincerely yours,

R. H. T;amarl,
Federal Reserve Bank,
New York City.




Denver, Colorado,

April 2, 1917.

!ear Yr. Treman:

Yours of March 30th, 2Jv1ng an accieunt of the Rochester meeting

of kickers and enclosing their resolutions, etc., is received. Personally, I think the present is the most opportune time to develop our par
collection plans and doubt very much if the opposition is going to make
such headway.

Cengress will not listen with -patience to a long discussion

of this subject to the exclusion of important legislation, including the
amendments to the Federal Reserve Act.

Thank you for keeping me 60 fully posted.

Very sincerely yours,

e.

R. H. Tuain, Esq.,

Federal Reserve Bank,
Neu York City.

/7




Denver, Colorado,
April ,f7, 1917.

Dear Mr. Treman:

A

It is gratifyina to learn that you found c mafor the Credit
nosition. I hone he provos to be a cracking ood one.
Very truly yours,

R. H

TeERg.,11sq.,

?edam' Reserve bank,

New York City.

BS/CC

Denver, Colorado,
April 2, 1917.

Dear Lir. Treman:

Now that our Government has adopted the policy of issuing short
time bills

(which it should have

adopted years ago), I believe it would be

wise for our bank to offer to the Secretary of the Treasury to take charge
of the physical issue, transfer and delivery of these bills, in

a service would be of value to the Government in any way.

the

physical management of
Washington,

but it does

case such

Of course

the

Government's debt has always been conducted in

not need to be so and among

the other fiscal

agency

functions to be undertaken in time by the Reserve Banks, we may be able to

work up an arrangement to handle the bond issues, payment of coupons, etc.
This is just a suggestion to be considered with the idea, of course,
of indicating to the Treasury Department
in any special matters

growing out of

7
7
R. H. Treman, Esq.,
Federal lieserve Bank,

New York City, N. Y.

3s/cc




that we

stand ready to be of service

war developments.

Very sincerely yours,




Denver, Colorado,
April 3, 1917.

Dear Ax. Treman:

Yours of the 29th, reporting the Directors'
received.

Meeting, is just

I agree entirely with the Board's view about the twenty

million loan to the Government.
a sound financial

program.

The rate was too low and it is not

I.suppose I would have done just what you

all thought bast to do in offering to lend the money and give the
Government a little interest in connection with the loan, but I still

feel that such patriotic rates are really

unwise and

that

it is an-

businesslike.

It

will certainly be wise to sell the three million 3A conversion

bonds if we can.

About gold now arriving, it might be well to figure out just
what we can do in order to get bars, even though McAdoo will not give
us a)ecial facilities.

I wish I could be at Vsnderlip's dinner.

Very sincerely yours,

,/'
R. H. Trsesz

Lsq.,

Federal Reserve Bank,
New York City.

BS/CO




Denver, Colorado,

April 4, 19174

PlaBJNAL.

Dear lir. Treman:

I enclose a letter just received from Mr. McKay. Mr. Arnold I

oelieve is a man of considerable ability. If he were open to an offer
from the Federal Reserve Bank, he might prove to be the type of man

for the position as Deputy Governor, as he is an experienced banker

and has occupied an important position in the First National.

If that sugestion appeals to you and the others, and you will
let.ma know, I would arrange to run on to Chicago and see him myself.
It would probably be unwise just now to make inquiry of Mr.
Foregan.

I will explain the reasons later when I see you, but this

Is another case whore Mr. Kent can give you some information and will

respect the confidence of course.
Veri sincerely yours,

R. H. TrQmpul, Leg.,
Federal Reserve Bank,
New York City.




Denver, Colorado,
April 6, 1917.

Dear Ur. Treman:
1 anticipate that our clerical force may be somewhat depleted
by enlistment and otherwise.

We cannot get at the job of protecting

our organization too quickly, particularly as we may have very heavy
demands made upon us before very long.

May I suggest, therefore, that

new clerks be taken on just as rapidly as they can be

would not hesitate to employ a goodly proportion
:ark as they can perform, because

they will

located, and I

of women for

such

not be subject to military

service, unless they volunteer in some department, and I do not know
but what working in the Federal Reserve Bank is just as much a patriotic
duty as working in a Red Cross Hospital.

I am sure that you and the others have all had this in mind, as
well as the necessity for looking into the condition for additional
floor space, which we might require at almost any minute.

I do not mind confessing that I am hanging on here merely by my
eye-lids.

The desire to return is almost irresistible, particularly

as it would give me

opportunity to see my oldest son Who has been mus-

tered into the Federal army and may be shot off to some remote point
at

any time.
Very sincerely yours,

R. H. Treman,
Federa1'ireser7o Bank,
New York City.

BS/CC




Denver, Colorado,

A11 9, 1917.

Dear Mr. Treman:
*attleowieellik

I have not written you anything about the possibility of bills of
German origin causing sine trouble, realizing that you and the others have
undoubtedly given this careful consideration.

Now that we are at war with

Germany, however, and you have

probably

looked into the sitnation as to all of the bills of South American banks,

would you mind dropping me a line, advising me
learned.

Is there going to be any trouble between our bankers and the

German banking institutions
connection

with South

with Which they have

American matters?
Very truly yours,

R. H

Treman, Esq.,

Federal Reserve Bank,
New York City.

BS/CC

in a few words What you have

dealt, particular* in

Denver, Colorado,

April 10, 1917.
Dear /Ir. Treman:

Thank you for yours of the 7th, with memorandum of your doings in
Washington.

It was just as well not to say anything further in reply to

AzAdoo's statomont and I am glad you sat tight. The episode was of trif-

ling importance comgarod with the seriousness of the whole situation and
I feel a good doal of consideration for AcAdoo, who has been under such

great pressure.
Curtis has written me in some detail about the financial program

and I will write him, asking you to read that letter as an anzwer to yours.
Best regards to you all.
Sincerely yours,

R. H. 41pan,

Fedoral-Tesorve Bank,
New York City.







Denver, Colorado,

April 10, 1317.
-iar Mr. Treman:

Yours of the 7th about the proposed amendment to the bankino: law

has just reached me in the same mail with a similar letter from Ur. jay,
to Which I am replying sugestin6 a possible answer.
Very sincerely yours,

R. H. Treiea,a, Esq.,
Federal Reserve Bank,
New York City.

BS/CC




Denver, Colorado,
April 16, 1917.

Dear Mr. Treman:

Replying to yours of the 10th about our organization, let me
write a faa frank words on that subject as it appears to me from here.
I think the Junior officers, say Mr. Sailer, Mr. Jefferson, Mr. Higgins

and others if necessary should be called on to sketch out a plan and

make all preliminary

preparations possible for handling our share of the

pending Government bond issue, even though we are not yet definitely advised that we will do so.

This will include temporary help, additional

space, addinn machines and all the mechanical arrangements

applying to

such a transaction, including the handling of Government deposits with
member banks made through us, should that plan be adopted.

Of course we

would need to draw on the services of other banks and I believe that the
best man in New York to manage a job of that kind is mr. B. W. Jones of
the Bankers Trust Company.
before.

No doubt he could be borrowed, as he was once

1 r"
The Discount Department would eresent a most serious problem

if we had men in other departments already trained.

Where I fear we will fall down is, as I have written Mr. Jay before,
in the work of some of the Senior officers.
graph in your letter.

This is suggested by one para-

I really think it is a mistake for Mr. Jay, simply

as an illustration, to give his time to making arrangements with Mr. Malburn
of the character mentioned in your letter.

Personally, I think Mr. Malburn

should be invited to come to the office for a conference.

In five minutes

2.

To - Mr. Treman.

Anril 16, 1917.

it could be explained that we were seeking to develop cooperation and
then the Whole matter be turned over for arrangement to some man like
Jefferson.

That is the kind of work that Mr. Jay should delegate.

am still standing bitched out here, but

with

some difficulty.

Certainly 1 should return for a few days any way to meat Lord Cunliffe
when he arrives, and I await word from 1.1r. Jay on the subject.

Best regards.

Very sincerely yours,

R. H. Treman, Esq.,
Federal Reserve Bank,
New York City.




Denver, Colorado,

April 16, 1917.

Dear Mr. Tremah:

I have yours of the 12th, enclosing copy of a letter received by
Mr. Jay from Mr. Meredith of the Bank of Montreal.

r. Jay had already

sent me a copy of this letter and I have written him about it.
Very sincerely yours,

R. H. T4Rawn, Esq.,
Federal Reserve Bank,
New York City.

BS/CC







Denver, Colorado,

April 16, 1917.

Dear Mr. Treman:

Thanks for copy of letter received from Ur. James Brown about
the exported gold from France. It is most interesting and just about

what i expected. There seems to be nothing further we can do here,

pending the receipt of Pallain's reply.
Very sincerely yours,

R. H. Tan, Esq.,

Federal Reserve Bank,

New York City.

-0/




Denver, Colorado,

April 16, 1917.

Dear Mr. Treman:

Replying to yours of the 11th, I think it would be a mistake
to have more than one officer of the Bank attend the Briarcliff meeting.
One of our difficulties has been too much overlapping in some of these

matters and I hope it can be arranged to have the ground covered by
one man only.

Very sincerely yours,
R. H. Tremaa, Leg.,
FederaPTeserve Bank,
New York City.

BS/CC




Denver, Colorado,
April 16, 1917.

Dear 14r. Treman:

Replying to yours of the 12th, reporting What transpired at our

Directors meeting.

I rather lean to the view that we should continue

salaries eipi, if possible, hold places open, subject to course to revoca-

tion at any time, in favor of men who enlist.

The salary to be paid them

Should be gross with deduction of Whatever they received in the service
and whatever allowance

might

be made to their family.

At any rate, the

English banks are all doing that, although I understand the French
are not.

Cannot that matter be held in abeyanceuntil

banks

we know just what

the Government proposes to do for the families of those who are going to
enlist?

sincerely yours,
C.--.Very

R. H. T.gman, Esq.,
Federal Reserve Bank,
New York City.

BS/CC

7

Denver, Colorado,

Anril 16, 1917.

Dear Mr. Treman:

The reason for my suggesting submitting a proposal to MeAdoe that

we could handle the distribution of short term obligations, effecting transfers, etc., was because I thought that particular scheme night not occur to
him and, consequently, it should be brought specifically to his

attention.

All the short obligations of the British Government are handled

through

Bank

the

of England that way, and it would save an enormous amount of bother,

correspondence, ate., for us to issue them right in New York, where so many

of them will be taken from time to time.
Very sincerely yours,
R. H. Tre
Federal eserve Bank,
New York City.

BS/GC




COLORADO
APRIL 17, 1917.

Dear Mx. Treman
Replying to your various letters about a Foreign Exchange man.
From what you say, Arnold is not the man we want.

idea of getting

I would not give up the

Brady without pursuing it to a funish, as i

think

he might

be just the man.

Deans was suggested to me by Kent over a year ago and I did my
best to

get him but

without success.

Mr. Kent has written me that he is

still working on the matter and will try and make a suggestion shortly.
In strict confidence, I have a letter from Mr. J. F. Schmidt, Mr.

Kent's second man, who inquires as to the possibility of his getting the
position; copy of his letter is enclosed.

Of course this must net be

disclosed to Mr. Kent.

Schmid in my opinion is just the man for the position, but there
are one or two difficulties.
would not want to

let

him go.

One is that I know the 3ankers Trust Company
Another is that he is of German parentage,

although born in this country and we would need to look into his views

about

the war very thoroughly.

result.

I am writing him and will advise you of the

He did a lot of work for me when the war first broke out and

at

that time demonstrated that he had no end of ability, thorough knowledge of
the business and, furthermore, that he was not pro-German, but his views
may have changed since then.
Very sincerely yours,
R. H. Tzemen, Esq.,
Federal Reserve Bank,
New York City.

BS/CC


Denver, Colorado,
April 16, 1917.

Dear

Treman:

Thank you for yours of the 12th with an account of Mr.
dinner.

Vanderlin's

It is all well enough for him to say that the Clearing

House and

Reserve bank are not suffioiently identified and I understand his doing so,
but if he will look over the record, he will find that ever since we organized we have been urging meetings together and all sorts of schemes of
cooperation which the Clearing House so far has not seen fit to encourage.

There is no point to be made of the matter

MOW,

but it might be

that some of those at the meeting may not have understood our attitude in
the past and gathered that we were either too slow or too indifferent.

hope you or Mr. Jay made that

I

clear.

Have written Mr. Curtis fully about the bond issue.

I agree with

Aiken that two billions of one year certificates of indebtedness should not
be issued.

It would be better for the Government to borrow on shorter

obligations Which would be constantly maturing and which could be paid off
out of the proceeds of bond sales and tax collections when the amount got
large, and then a fresh start made.
Sincerely yours,

R. H. Tan, Esq.,
Federal Reserve Hank,
New York City.

BS/CC







Denver, ,,olorado,

April 18, 1917.

Dear Mr. Treman:
Your letter of the 13th and Mr. lienze/Is memorandum indicate a

very satisfactory situation as to German bills.

Let me suggest, however,

that instead of dealing through Mx. Brown, and other third parties, it

would be a little better and in a way more dignified for the Federal

Reserve Bank to twe this matter up officially with the British and French
authorities.

This could be done either throw,h Lord Cunliffe when be ar-

rives or through the Reserve Board or with Sir Cecil Spring-Rico.
Very sincerely yours,

R. H. Treman, Esq.,
Federal Reserve Bank*
New York City.

BS/CC

Denver, Colorado,
April 18, 1917.

Dear Mr. Treman:
Thank you for yours of the 13th.

the matter of gold bars.

You refer to the discussion of

I feel the urgent necessity of making progress

in that matter right away because with the credit of this Government behind
the allies, there is no doubt in my mind

that it

will result in an earlier

recovery of the exchanges and possibly a turn in the other direction long
before it would have developed without our participation in

the war.

NV

suggestion now is that figures be prepared accurately to show just What it
would cost us to

accumulate aa:y

one hundred millions of gold in mint bars,

joint account with the other eleven banks.

Possibly you will take this up

with Mr. Curtis and start something going.
It seems to me that you can count definitely an my return by the

first week

in

i expect to have a final discussion of this with Dr.

June.

Sewall on Friday of

this week and even if it proves impossible for me to

stay permanently all of this year, I would devote enough time to working

-V
Out the problem of organization so that your plans could be worked out
'onclusively.

I am getting

along

famously and, barring accidents, think you can

count on this program.

Very sincerely yours,
R. H. T40,5511 Esq.,
Federal Reserve Bank,

New York City.
BS/CC






Denver, Colorado,
April 18, 1917.

Dear Liz. Treman:

Replying to yours of the 13th, I have written fully expressing
some views about state banks and trust companies acting as government depositafies and hope you consider it for what it is worth.

It is a close

question in m7 mind and yet, now that the bill is passed authorizing such
deposits, I suppose they must be made.

I have written Jack Morgan, asking an expression of his opinion
about the big trust companies and state banks.

The Clayton act will still

be the obstacle and I woula like to sea steos taken to overcome it, if
possible.

\

I am playing a bit of (;olf almost everyday now and getting on
famously.

Very sincerely yours,

R. H.

lospu.Esq.,

Federal Reserve Bank, 7
New York City.

BS/CC

CLASS OF SERVICE

COrT

Fast Day Message
/ Letter

iv.jItt Messaae

Night Letter

If no class of service is desig-

WESTTEMH UlAMOM TELEEMAIMI%

nated the telegram will he transmittad as a fast day message.

Denver, Colorado,
Anril 209 1917.
R. R. T*sman,
Federal ilesorvo Bank,
Now York City.

hile rato seems rather lea believe we should place as such of
issue no possible because that yill demonstrate attitude of Dew Yerk

banks and if rate is much too laa that fact will be more apparent in

Other districts stop. Thiw;. Now York banLizers Should realize that any
demonstration of Socrotary's misjudgment of rates should arise from

failure of borrowings in other districts than ours.
Benjamin 3tron6.

Ch. Benj. Strong,
4100 Lontviaa.







Denver, Colorado,
April 20, 1917.

Dear Mr4_,:gamLIP:
Your telegram about the 250,000,000 issue of government notes
came last night just as I was leaving the house to attend a dinner and

patriotic rally at the Denver Club and I was unable to send a reply
without keeping ng hosts
being so far out

in

waiting.

the country.

That is one of the difficulties of
I have given a lot of thought to your

advice and this morning I au renlying as per enclosed copy.
It seems to me that the Secretarv is makint2 a mistake in the

method he is pursuing for placing these

notes and I hope opportunity

will be taken not to criticise the plan but to suggest an improvement
on it which will be of aesietance to him.

I think that the Government should make arrangements with the
Reserve Banks to have short notes on sale constantly, the rate to be

fixed from time to time according to the needs of the Avernment for
balances and the condition of the money market.

Those notes it should

be clearly 'understood can be rediscounted at any time at the Reserve

Bank, so that member banks will be willi , from time to time, in fact
every day that they have surplus balances, to take them up in blocks and
if by chance at any time they are short of money, we should stand ready
to discount them at market rates.

By fixing a rate and the amount to be borrowed, instead of
selling an indefinite anount at rates which might vary as frequently
as once every few weeks, the Secretary always exposes the levernment to




April 20, 1917.

To - Jr. Treman.

the risk of failure to a loan or to the necessity of placing them on
the banks, which is undesirable.

It seems to me that the Secretary has overlooked one very important factor in connection with his borrowings and that is the difference

in the different sections of the country. By his present

in money rates

would be pumped out of funds in a rhort time by reason

method New York

of New York's lower rates, and the rest of the country would be flush
with money.

Our banking

arrangements should enable the Government to

borrow with substantially equal facility in any section of the country.

The proceeds of the borrowings should be left on deposit in the Reserve
banks of the respective districts whore the borrowings are made and

those balances, so far as possible, should be disbursed in those dis-

tricts.
Of course i shs11 Ma40

no direct su,gestions to Secretary McAdoo

from here, that opening the door to possible confusion, but 1 do think
that you and the other officers should ez,etob up a plan for developing
1

-t;ular syStematic short borrowings by the Government somewhat as above
suggested,

11,

impress upon him the desirability of pursuing that plan.

That has worked elsewhere will work here and 1 suppose you realize

that the British Government at one time was borrowing seven hundred million

sterling, or thereabouts, bo substantially the plan 1 have su,gested and
did so with no disturbance whatever to the ..;nglish money market.

So far aa the present rate is conoerned, even though some of the
New York bankers might feel it was too law, it is a grand opportunity for




Z.

April 20, 1917.
them to demonstrate that :Jew York always stands ready to help and,

of course, the higher rates in the other Reserve districts will be the
means shortly of illustrating to Secretary LidAdoo that his plan is not
workable. It seems to me you did mighty well in getting ninety millions

placed in a few hours. A part of the plan I think should provide that
the :ederal Reserve Bank of New York might itself

nage the handling of

the funds to be left an deposit with member banks that take large blocks

of these notes. It would immensely facilitate the work and permit our
performin the best service for the Government.

Success to your efforts in this and all the other important
tters now developing.

Faithfully yours,

R. R. Treman, egg.,

'eederal Reserve Bank,

New York City.

Denver, Colorado,
April 21, 1917.

Dear 2r. Treman.

I wns delighted to receive your long telegram last

night, quoting

telegram received from Harding in regard to the issue of Treasury bills.

Anparently the vary situation developed that I anticipated and now I am
sure you will have no
entire issue in

difficulty in

getting subscriptie7.s to cover the

New York, which is most

desirable.

I still feel that ft program of havinikeertificates constantly on

sale at the Reserve banks at rates to be fixed from time to time by the
Secretary of the Treasury

is by fur the best plan and should be adopted

right away.

It is mighty good of you to keep me so fully and promptly posted
and reconciles me somewhat to being away just now.
Very sincerely yours,

/
Usan,

E. H.
Yederal Reserve Bank,
New York City.




c

Denver, Colorado,
April 22, 1917.

Dear Mx. Treman:

Thank you for yours of the 18th

about the Government bond matter.

It gives me a great feeling of satisfaction to have our bank
entanglement

in a big government bond account, such as is

so free of

the case In

Chicago, Aansas City and elsewhere. I wish we did not hold any, but the
anount we do hold is too small to give us any

concern as to possible de-

preciation.

I am relying entirely upon you anii4. Jay to advise me by
telegram or telephone of just when

should return to meet Lord Cunliffe.

I can co ,e bac,c on a flying trip at any time,

nor would such a trip

interfere with my expected return about June 1st.

It

really is quite

important that I meet him, but at this distance I cannot
the best time

for me to come

back for the puroose, so I rely

Mx. Jay to advise nate,

Faithfully yours,
\\*""-----

\
,

R. H. tuman, LAN.,
Federal Reserve Bank,

New York City,

B/CC




judge

when is

on you and

Denver, Colorado,
April 22, IVI7.

Dear Mr. Treman:

Replying to yours of the 18th, I am glad to see the progress that
We should not let up for one instant,

is being made with the state banks.

this being the best opportunity we

will ever

have to whip them into line.

Incidentally, it might be a good plan to get Li.. Hoffman and some of the

other newsnaper men who sympathize with our aspirations to write a few

articles
zine.

along the line of

Mr. Jay's

The public in my opinion does

article in the Trust Company's maga-

not

sympathize

with

these recalcitrant

state banks who are holding out for exchange and some well considered articles in the daily papers will undoubtedly keep this
I am interested in what you say about

amendments to the

It was on my recommendation that Federal reserve

to count as cash

sentiment

notes

alive.
State laws.

were not permitted

reserves for member banks and that recommendation was

based upon the understanding at that time that the notes would be entirely
secured by commercial paper.

The character of the

note issue groves

to

be so different from what was anticipated that I now see no reason why
state banks

should not count

them as reserves and I would be glad to see

4

the amendment enacted.
Yours very truly,

R. H. Txsman, Esq.,
Federal Reserve Bank,
New York City.

BS/CC







Denver, Colorado,

Anril 23, 1917.

Dear ar. Treman:

Yours of the 20th, enclosing the program of the up-state

bankers for their Rochester meeting, is just received. The fight in
this matter has really been transferred to Washingtou end I am sorry
to gather from

rburg's letter that he feels some concern about it.

Personally, I cannot share his views for I think the country as a
whole is doing to support us in our program and if the country does,
Congress will. Certainly the documents you enclose, if published in

full in thu daily papers, would not receive a very enthusiastic reception. It has a \Ter,/ narrow sound to me and I think most people would

interpret the stateleents in that way.
I am glad to learn of progress in preparing for busier times.
Very sincerely yours,

R. H. Triewan, 11eq.,

Federal Reserve Bank,
New York City.

BS/CC

Denver, Colorado,

April 23. 1917.

.

Dear Mr. Treman:

Replying to yours of the 20th about a foreign exchange man, 1

hope you will continue your investigations just as fully as possible,

so that we will have all the data and, if possible, the rnn before
I return.
Of course no man who has 7worked for 25 years, is 50 years of

age and leonly earning 42500, can be considered more than a very ordinary clerk and we really need a very much stronger man that he

likely is to fill the position, even in a preliminary way. ay
leanings are towards Brady if he is in any way available.
Ver7) sincerely yours,

R. H. Tan,

Federal Reserve Bank,

New Yort.c. City.




lc a




Denver, Colorado,
May 18, 1917.

:,ear 1.1r. Treman:

The enclosed letter from Mr. McGarrah explains itself. I will

as:: you to refer to my letter, which Mrs. McLaren will locate for you,
and after getting in touch with Mr. McGarrah, advise me of the exact
status of eul- sutzeations to the Clearing House Committee. Mr. lic-

Garrah's letter is a little too blind for me to undcrstand it.
Very sincerely yours,

R. H. Tuition, Esq.,
Federal Reserve Badk,
No

Yoric City.

Denver, Colorado,
Llay 19, 1917.

Dear Mr. Treman:
BANii OF ENGLAND.

With reference to the enclosures in yours of the 15th, let me
suggest that in replying you intimate that we believe it would be desirable for both the Federal Reserve Bank of New York and the Bank of England
to make preparations for the drawing of checks respectively on the banks'

accounts which we will carry with each other, but explain that our checks
will be in

round

amounts only and drawn only to represent sales of exchange

when we are withdrawing balances, that no checks for commercial purposes

will be drawn

on the account and we presume a like principle will apply to

their relations with Us.

That most of our transfers, at least under pres-

ent conditions, will consist of cable payments under 'lode protection.

It

might be desirable to prepare a cipher similar to the one employed with
other Reserve banks, only varied as to the symbols and, of course, transmitted under the usual protection.

Embassy pouch,

I suggest that it be sent through the

addressed to the A,erican Ambassador in London, with request

that he have it delivered to the Bank of England.
1 would also suggest that you advise.the Deputy Governor that the

pendency of the loan operations of our respective governments makes it seem
inadvisable for us to undertake any extensive operations for the moment, and
that we are still without an experienced officer to handle the detail and
that it will take some time to obtain the necessary authorizations in detail
from the other eleven Reserve banks, all of Which however are under way and

as soon as completed full details will be furnished, together with a suggestion
of the amount of our possible transactions.



2.
To - Mr. Treaan.

It might be

May 19, 1917.

well to advise

Mr. Cokayne that we are

having duplic ate

original copies of our agreement engrossed for exemplification for both institutions, to become apart of our permanent records, which engrossed c opies
can be substituted for the typewritten Copies now held.

I think of no other points to be covered and therefore am seturning
all of the enclosures with your letter,
confidential

which should be placed in

file.

Very sincerely

R. H. Trajaam, Esq.,
Federal Reserve Bank,

New York City.

BS/GC

Enos.




"--

yours,

the special

Denver, Colorado,
May 19, 1917.

Dear Mr. Treman:

Thank you for your two letters of the 15th.

I reached here in

good shane and am now indulging in a good course of golf which is interesting and beneficial.

Dr. Sewall has just telephoned me an excellent

report from an wiemination that he made on Thursday and one Which satisfies
me that no harm resulted from my trip home.
I am writing separately about the Bank of England letter.
Again many thanks and more for your help and your willingness to
continue

to help, which is

characteristic of your attitude toward the bank

and its officers from the beginning.
'

I cannot tell you how grateful I am

or what a groat help it has been to me in my struggle for health.
With warmest regards,
Faithfully yours,

H. Tamgn, Esq.,
FederarReserve Bank,
New York City.

BS/CC'




-

Denver, Colorado,
May 20, 1917.

Dear ArL.2444u4an:
I have yours of the 16th, with enclosures which are returned herein.

I had seen Mr. Gidney's memorandum before leaving New York.

My last

suggestion to him was to follow the matter up and see that blank certifi-

cates were prepared by the Clearing House authorities, if possible, in
such a form that they could be put into use on very short notice.

Mr. Frew's memorandum is simply a re-statement of views entertained by Ur. George

Blumenthal of

Lazard-Freres, who explained them to

me verbally when 1 was in New York.

The only new idea is the

thoroughly

unsound one of making unlimited use of government securities the basis of
unlimited issues of paper money.

When we reach that deplorable state of

financial degeveration we might as well admit that
on a gold

basia,

the

world is no longer

including theU.S.A.

Every other idea in the memorandum, as you will appreciate, we have
been harping on insistently for two years.

all of this

conversation we can finally got our colleagues in I:ashington,

as well as the
about it.

I do with and hope that after

Clearing House committee, to do something and quit

talking

Just as sure as fate this is one of those eatters that will be

postponed and again postponed until the

emergency arises and then it will

bete° late.

Tqe thing
balances should




to do now is to

convince tho Clearing House committee that

be settled on our books and that they should take appropriate

4

2.

To -

Treman.

May 20, 1917.

action instantly that the amendments pass to affect such settlements as
are effected in cash with the state members in Federal Reserve notes.

would be advisable for us to agitate again the project
Reserve notes count as

legal reserve for state banks.

It

of having Federal
With

those three

things done, ug concern about the imnediate future is reduced to nil.

Without having them done, you can bet your last

dollar that we are going

to have trouble in New York and it is not very far ahead of us.
There
tender.

is no

necessity for

having Federal Reserve notes legal

Neither gold certificates nor silver certificates not National

bank notes are legal tender and they form the great bulk of all of our
circulating medium.

Cannot someone press this matter

House committee and try

and get

something done?

with the

Clearing

Vanderlio is the one

:an to help as he i.e thoroughly impressed with the importance of this
action.

.\\
I am mighty glad to get such full reports from you.
Very sincerely yours,

R. H. Treman, Esq.,
Federal Reserve Bank,
New York City.

BS/CC




Denver, Colorado,
May 20, 1917.

Dear Mr. Treman:

Replyin; to your general letter

of the 16th1

It seems to me that

someone in theoffice must have slipped up in the arrangements aboutthocile

chocks aggregating 450,000,000. Morn's people have agreed to the ar-

rangements that I proposed to them
no objection to

it.

seeing that these

About the

Please charge

and the metbor banks will certainly make

Mr. Sailer

with the

responsibility

for

arrangements are carried out.
Foreign

exchange man, - if we do not get Mr. Perkins. I

think we ought to dragoon the City Bank into giving us Mr. Brady, so I have
done nothing in the matter, awaiting the outcome
My last word with Perkins was an understanding

of the Perkins

matter.

that he would see Woodward

immediately upon Woodward's return.

I am playing golf every afternoon and feel the benefit of it
I.

tremendously.
Best

regards

t6 you all.
Very sincerely yours,

R. H. Treman, Esq.,
FederarReserve Bank,

New York City.

BS/CC




Denver, Colorado,
May 22, 1917.

Dear kr. Treman4

mpny thanks for your letters. I hope that Mr. Sailer is carefully
working out the arrangements about these big transfers so as to avoid

possibility of a money up-set. It can be done with a little care and cooperation and it is exceedingly important.
Very sincerely yours,

R. H. Trepan, Esq.,

Federal Reserve Bank,
New York City.

BS/CC




Denver, Colorado,
May 22, 1917.

Dear Mr. Treman:

Thank you for yours of the 18th, enclosing samples of the now

forms of drafts and posting me as to doings at the office.
I have telegraphed Mr. Perkins and Mr. Woodward and there seems

nothing more that I can do from here. The matter now seems to be up to
Mr. Perkins, Ur. Vanderlip and Mr. Woodward and I hope to have a favorabl

rely.
According to the present plan, I will probably see you in /Tow
York the middle of next week.

Best regards,

Faithfully yours,

R. H. Twan, :sq.,

Federal Reserve Bank,
New YorK City.




Denver, Colorado,
0Al1y 23, 1917.

011114.

Dear ilk. Treman:
My present

lan is to leave here about the 6th, which
,7 York the 8t% or 9th, asad I hoc that will

would got me to
lino -uith your own plans am! not inconvenience
be cult'
would havc to return than any way to attend the
you at
,eting in 1: hington on the 15r.. and have a few days in New

iork first
will WT

but meantime netio
Par1:ei4s department, e °opt
go in

the zmlary matter,
out sA.ary in Hiss
i3S Keys. 1 am
tment and a few

to make a personal mE,..

rivatelL
ot1or0, and am writing you se
gest that yOU might toil lass Parker hat her salary 7i
in abeyance, pandiPg my return.
T hope this i2 in accordance with ur OWT1 viel

lours very trul
R H. Troman,
Pederal Reserve Ban
row York City.
B3/00




held

Denver, Colorado,

July 23, 1917.

Dear Ur. Treman:

-

I have your lettersof the 16th, 17th, 18th & 19th,
and thark you most heartily for keeping me so well posted.
, a little courage by our bahking friends
About
ship in our office is all that is needed to
and the le
se 10'd rates and I hope you and the other officers
can get t ether with LIOGarrah on some plan which will keop
1 very much regret a bad
e,dy. We
things ic 1
record in
look over the copies
Would
ascertain just how
of the last repo
7

much eligible aper each if our flow Yorl City member banks
there, I think
banks holds. If the info ation is no va
rring with Garrah, askwe should prepare a letter,
6

ing each bank in Now York City to g v us the infori, ion, divid-

ing it into three classes :lligible commercial p
Ankers bills,
evernment securities or
ment securities.

. on govern-

Your report on the Italian negotiations is most interesting. I do not understand the first proposal - there is probably
a typographical error. If this can be rolled along until my
return, well and good, but don't hesitate to deal with it during
my absence. I an writing Ur. Jay about the Bond issue diviAon.
I hope the readjustment of Government deposits is promptly effected so as to avoid any sore-heads as to the next campai7n.

http://fraser.stlouisfed.org/
Sincerely yours,
Federal Reserve Bank of St. Louis
L,r4

1

Denver, Colo.,
July 31, 1917.
Dear :r.

Thank you for your various letters and for keeping
inc so well poste

branch in Buffalo - I an decidedly opposed to

Abell
,

desire to 11.,

certainly unless the bankers there express a
If they do, we than sheuld give it

e a branch.

serious eon dem'

I wrot

Lock about it personally
believe he has made inquiry

before lacy'

sive in Washington.

locally so that

I feel sur.t

our collection charge

to IN per item.
The suggestion abo
How would it do to get Captail

has been pctoned by

the First iational Dank? He is a very

liable man.

be well to inquiredt the First 1ationa

whether he wo

equal to the job.

It is essentially the

Id

of we

be done by an older man, or oven by a reliable

night

d be

that could

Ian.

It is certainly bully of you to consider returning
again to the bank after you have had a holiday.

You are always

-

to self-depreciating about year own work there that sometimes it
-makes no think that you are keen to get away again.

other hand, I do not see

wki. you should not accept the expressions

of appreciation of your own associates at full value.




On the

It is a

-2To -

July 51, 1917.

roman.

difficult job at boot and -articularly so for any one from out
of tom. i don't know vhat we would have done without you, and
if you do find it posoiblo to roturn after your vacation, it will
of course be a tror-ondons relief to me and probably enable me to

;other short rest before the real active time
an is placed.

,got off again i
when th,

-

.

Jay and Zailer should certainly tako holidays
wo must not all break downs'
=ft I am sure ',-hat can be arrang
ito very few letters, and
that
lay a good deal of golf,
were you here yol
ly approv
all ol which Dr.
Curt

,

AthfUlly your
R. H. (.2reman,

,sq.,

2odoral :osorve Bank,
EOW York City.

1157CC




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NEWCOMB CARLTON. PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Domor, 1010., July 019 1917.

a.trei-am, Foloral riosorvo

:170.7 Yar% Cityo

Strzor.,t yon ack Kent to shmt you. my tologram of toclou rogardig3

tal iz arratis °Lento.
Tlerajardll Stirs AC.)
Thg

3on,j. St/Dik-j,

123 Gilpin St.




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47i4N

lessage

UNION

TEL' AM
WESTERN UNION

Night Message

Night Letter
Patrons should mark an X opposite the class of s3rvice desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

s

Receiver's No.

Check

Time Filed

NEWCOMR CARLTON. PRESMFNT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

Denver, Colorado,
August 1, 1917.

21._)144nan4 Federal Reserve iank,
Necl-York City, 11

Y.

Hope you agree tbat it would be unwise for us to
subscribe ourselves for Certificates of Indebtedness about to
be issued.
Benj amin Strong.

Chg. Benj. Strong,
128 Gilpin St.




ALL TELEGRAMS TAKEN BY-THIS COMPANY ARE SUBJECT TO THE V., .LOWING TERMS:
T
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for coin,
)ne-half tse unrepeated telegram rate is charged in addition. Unless otherwise indicated-on its face, THIS IS AN UNREPEATED TELEGRAM AND PAL.
n consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any UNREPEATED telegram,
an.
received for sending the same; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum receiv.,
or sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obseurt
'elegra ms.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whether
;aimed by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated in
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth of
nae per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach it
Iestination.
Telegrams will be del red free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities or
umns. Beyond these limits the Company -does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor to
ontract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such office
y one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties In any case where the claim is not presented in writing within sixty days after the telegram is
iledvith the Company for transmission.

Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition to alt.,
e foregoing terms.
No employee of the Company is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
INCORPORATED

NEWCOMB CARLTON. PRESIDENT

CLASSES OF SERVICE
rAST DAY MESSAGES
A full-rate expedited service.
1 I GHT MESSAGES

Accepted up to 2.00 A.M. at reduced rates to be sent during the night
nd delivered not earlier than the morning of the ensuing business day.
)AY LETTERS

A defer-ed day service at rates lower than the standard day mesage rates as follows: One and one-half times the standard Night
setter rate for the transmission of 50 words or less and one-fifth of
he initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
etter" service, the following special terms in addition to those enu-

Letter shall be delivered on the day o. its date absolutely and at all
events; but that the Company's obligation in this respect is sublect;
to the condition that there shall remain sufficient time for the transmission and delivery of such Day Letter on the day of its date during
regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.

No employee of the Company is authorized to vary the foregoing.

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuing
business day, at rates still lower than standard night message rates, a
follows: The standard day rate for 10 words shall be charged for the trans
mission of 50 words or less, and one-fifth of such standard day rate for 1'
words shall be charged for each additional 10 words or less.

ierated above are hereby agreed to:

Day Letters may be forwarded by the Telegraph Company as a
Arred service and the transmission and delivery of such Day Letters

SPECIAL TERMS APPLYING TO NIGHT LETTERS;

in all respects, subordinate to the priority of transmission and
Day Letters shall be written in plain English. Code language

,

In further consideration of the reduced rate for this special "Night
Letter" service, the following special term.. in ad...Li-lion to those

Night Letters may at the option of the Telegraph Company'
be mailed at destination to the addressees, and the Company shall

;livery of regular telegrams.
not permissible.

c. This Day Letter may be delivered by the Telegraph Company
, telephoning the same to the addressee, and such delivery shall be a

mplete discharge of the obligation of the Telegraph Company to
liver.

This Day Letter is received subject to the express understand., and agreement that the Company does not undertake that a Day
D.




enumerated above are hereby agreed to:

be deemed to have discharged its obligation in such eases with respect

to delivery by mailing such Night Letters at destivation, postage,;
prepaid.

Night Letters shall be written in plain English. Code language
is not permissible.
No employee of the Company is zuthorized to v.:.-,7c ihe foregoing.

`

IV ICE

SYMBOL

Jay Lobe,

Nite

Night Letter

I;

Blue

Night Message

A'i0E

ESTE.;AT? WON

NL

ITELL

If none of these three symbols
appears after the check number of
words)th is is a day message. Otherwise its character is indicated by the

symbol appearing after the check.

.474r
WESTERN

NEWCOMB CARLTON, PRESIDENT

RECEIVED AT N2OD CRY

OENVER COL.:

Form 1201

Uri°

CLASS OF SERVICE SYMBOL
Day Message

AM

Blue

Night Message

,-

Day Letter

Nite

NL
Night Letter
If none of these throe symbols

GEORGE W. E. ATKINS, FIRST VIC ,PRESIDENT

appears after the check number of
words)thls is a day message. Otherwise its character is indicated by the

symbol appearing after the ch.*.

26

AUG

3

6PM

ii

R H REMAN -FEDERAL RESERVE BANK

261-'6

NEW YORK

FIVE TWENTY FIVE
AM ARRIVING ON PENNSYLVANIA TRAIN DUE AT
EVENING
MONDAY AETERNOON SUGGEST CONFERENCE SOMETIME MONDAY
PLEASE NOTIFY ME PLAZA HOTEL OF ARRANGEMENTS YOU MAKE




BENJMAIN STRONG

Kei707




Form 1206

liVESTE

- DESIRED
age
,

7,5113NA.

.-ener

UNION

WESTERN UNION

Night Message

TEL

Night Letter
Patrons should mark an X opposite the class of service desired;
OTHERWISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.

NEWCOMB CARLTON. PRESIDENT

Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to

7.0

Z.z

'"ew

AM

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

Denver, Colorado
imgust 3, 1917

R. K. Traman
Yederal Reserve Bank
New York City

Lin arriving on Pennsylvania train due at
five t7enty..five Monday afternoon. Suggest conference
.caetime Monday evening. Please notify me Plaza Hotel
arrangements you make.

Benjamin Strong

arge

8 Gilpin Street
DAY 12.951.024




ALL TELEGRAMS TAKEN BY THIS COMPANYARE SUBJECT TO THE FOLLOWING
To guard against mistakes or delays, the sender of a telegram should order it REPEATED, that is, telegraphed back to the originating office for cc mp,_
one-half the unrepeated telegram rate is charged in addition. Unless otherwise indicated on its face, THIS IS AN UNREPEATED TELEGRAM AND PAID 14,ot
in consideration whereof it is agreed between the sender of the telegram and this Company as follows:
The Company shall not be liable for mistakes or delays in the trarismission or delivery, or for non-delivery, of any UNREPEATED telegram, beyond the a
received for sending the same; nor for mistakes or delays in the transmission- or :delivery, or for non-delivery, of any REPEATED telegram, beyond fifty times the sum rem,
for sending the same, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines; nor for errors in cipher or obsc
telegrams.
In any event the Company shall not be liable for damages for any mistakes or delays in the transmission or delivery, or for the non-delivery, of this telegram, whet'
caused by the negligence of its servants or otherwise, beyond the sum of FIFTY DOLLARS, at which amount this telegram is hereby valued, unless a greater value is stated
writing hereon at the time the telegram is offered to the Company for transmission, and an additional sum paid or agreed to be paid based on such value equal to one-tenth
one per cent. thereof.
The Company is hereby made the agent of the sender, without liability, to forward this telegram over the lines of any other Company when necessary to reach
destination.
Telegrams will be delivered free within one-half mile of the Company's office in towns of 5,000 population or less, and within one mile of such office in other cities
towns. Beyond these limits the Company does not undertake to make delivery, but will, without liability, at the sender's request, as his agent and at his expense, endeavor
contract for him for such delivery at a reasonable price.
No responsibility attaches to this Company concerning telegrams until the same are accepted at one of its transmitting offices; and if a telegram is sent to such offi
by one of the Company's messengers, he acts for that purpose as the agent of the sender.
The Company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the telegram
filed with the Company for transmission.
Special terms governing the transmission of messages under the classes of messages enumerated below shall apply to messages in each of such respective classes in addition

Ahe foregoing terms.

fo

THE WESTERN UNION TELEGRAPH

No employee of the Company is authorized to vary the foregoing.

INCORPORATED

NEWCOMB CARLTON, PrESIDENT

CLASSES OF SERVICE
FAST DAY MESSAGES
A full-rate expedited service.

NIGHT MESSAGES
Accepted up to 2.00 A.M. at reduced rates to be sent during the night
and delivered not earlier than the morning of the ensuing business day.
DAY LETTERS

A deferred day service at rates lower than the standard day message rates as follows: One and one-half times the standard Night
Letter rate for the transmission of 50 words or less and one-fifth of
the initial rate for each additional 10 words or less.

SPECIAL TERMS APPLYING TO DAY LETTERS:

In further consideration of the reduced rate for this special "Day
Letter" service, the following special terms in addition to those enu-

merated above are hereby agreed to:
Day Letters may be forwarded by the Telegraph Company as a
deferred service and the transmission and delivery of such Day Letters
is, in all respects, subordinate to the priority of transmission and
delivery of regular telegrams.
Day Letters shall be written in plain English. Code language
is not permissible.
c. This Day Letter may be delivered by the Telegraph Company
by telephoning the same to the addressee, and such delivery shall be a

complete discharge of the obligation of the Telegraph Company to
deliver.

This Day Letter is received subject to the express understand'lag and agreement that the Company does not undertake that a Day
D.

Letter shall be delivered on the day of its date absolutely and at a
events; but that the Company's obligation in this respect is subjec
to the condition that there shall remain sufficient time for the trar.
mission and delivery of such Day Letter on the day of its date durin
regular office lours, subject to the priority of the transmission of reA
ular telegrams under the conditions named above.
No employee of the Company is authorized to vary the foregoing..

NIGHT LETTERS
Accepted up to 2.00 A.M. for delivery on the morning of the ensuiv
business day, at rates still lower than standard night message rates,
follows: The standard day rate for 10 words shall be charged for thelran
mission of 50 words or less, and one-fifth of such standard day rate for
words shall be charged for each additional 10 words or less.

1

SPECIAL TERMS APPLYING TO NIGHT LETTEIV:

In further consideration of the reduced rate for this special "N:
Letter" service,
special terms in addition ttf.
the following
enumerated above are hereby agreed to:

.

Night -Letters may at the option of the Telegraph Com}
be mailed at destination to the addressees, and the Compa.P
be deemed to have discharged its obligation in such cases ,wrfh

to delivery by mailing such Night Letters at destination, posta
prepaid.

Night Letters shall be written in plain English. Code langul
is not permissible.
No employee of the Company is authorized to vary the foregoing:

in111111111Wr

11111111111r
CLASS OF SERVICE SYMBOL

4)44X
.e

Blue

Night Message

Nite

w, N.

NL
of these three symbols
Letter

Day Letter

WESTERN UNION

Night Letter

NL

Pay Message

cr,

If none of these three symbols

,,ears after the check number of
words)this is a day message. OtherIts character is indicated by the

symbol appearing after the check.

'wise

NEWCOMB CARLTON FRESIDENT

RECEIVED AT

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

appears after the check number of
words)this is a day rnessaie. Otherwise its character is indicated by the
symbol appearing after the check.

0306.00, 411

way, IV, Y.
It17 F,'JG

5

V, 11 26

CHICAGO ILL 5
A H TAEMAN

8718
FEDERAL RESERVE BANK NEWYORKCITY

IF THE MATTER MENTIONED IN YOUR IRE RELATES TO FOREIGN LOANS SUGGEST
YOU SEND ME AT PLAZA HOTEL COPY OF ACT UNDER WHICH THESE LOANS ARE
AUTHOhIZED AND ANY OTHER PAPERS I MAY NEED




-

BENh STRONG.

1111


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102