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December 9th, 1915.

My doer Mr. -alker:

have a memorandum on my book of unfinished

business that you may want me to write a letter to
:2ecretary Daniels in regard to the Tennessee matter.

Has that been attended to so that I m relieved of fur-

ther responsibility, or is there anwthing further that
T can do?

Vepy truly yaara,

Roberts -alker, Esq.,
Care :losers. 7hite t Case,
14 Wall Street,
New York City.
3S Jr/VCM

CABLE ADIDRESS'WHITECASE

WHITE & CASE
14 WALL STREET

RW-SRP

NEW YORK

DiCember 10, 1915.

Dear Mr. Strong:
0

Answering yours of Tisterday:

After bearing fromyyou on the telerhone acme
weeks ago, I prer.,ared drafts

of

two letters, one to the Cartsin

and the other to the Secretaiy, and sent them to Mr. Kent. He
and I had

BOER

talk about Item a few days ago, but

arrarently

he has not moved them foryiard to you, which was my suggestion.
I shall jog

his memory./

Faithyours,

njamin Strong,




62 Cedar

Jr.!, Esq.,
Street,

New York City.

Way 23, 1918.

near Sir:
Your favor of even date, with enclosure, addressed to

'gr. Strong, io received in his absence.
Mr. Strong is expected back from ftshington the first

part of' next week, your letter will be placed before him for his

attention on his return to the office.
Very truly yours,

Seeretary to Mr. Strong.
Roberts




ta.14er,

hit
14 'all Street, N. Y.
care o

GB

O
CABLE ADDRESS',WH TECASE"

mAyisai91

MI -AM

WHITE & CASE
14 WALL STREET

NEW YORK

May 23, 1918.

Dear Mr. Strong:
",Tennessee" Gold Shipment.-

You have not forgotten the shipment of gold made
by the banks about August 6, 1914.

I enclose our file copy

of minutes of meetings with representatives of contributors.
to page 4 of the meeting of August 6,
1914, and to the passage there marked. Fay thinks that subsequently, perhaps on the same day, in telephonic communicaI call your attention

tion with the Secretary of

the Tre┬žsury, it was arranged

that no alteightment charges
shipment.

Can you remember

should be imposed upon this
whether such was the case? If

so, may I not be sent for so that you can tell me orally what

you_racall

of the matter?

The subject comes up in connection

with that unfortunate claim for commissions which is on the

carpet again, this time rather more

seriously than heretofore.

I might add that examination of the correspondence

chargedfand that the only
matter involving a payment from the Gold Fund Committee to
the Secretary of the Treasury was insurance.
file indicates that no freight was

FaittaikT
Benjamin Strong, Esq.,
Federal Reserve Bank,
15 Nassau St., New Ycrk.




yours,

May 28, 1918.

Dear Mr. Walker:

I expect to be out..of-town next week so suggest that the
matter referred to in yours of 1,14y 23rd be taken up some day this week.
Possibly you will be good enough to telephone me Whenever it is convenient.

Acoording to my memory, the statement that the Government would
charge freight for transportation was not made to me by Secretary McAdoo,
but by Comptroller Williams who was,

Secretary of

the

Treasury.

I

think, at that time an Assistant

That can be confirmed by looking up the

records.

I distinctly

'ecall protesting against any such charge and

remember his stating that it would be waived as well as any charge for

transportation of the five men Who were to
was handled under such pressure
that conversation,

go with him.

The matter

that I doukt if any record was made of

but certainly Mr. Williams would be glad

to confirm

it.
You have, as I recall, a record of

Secretary

Daniels on

Iv conversation with

this subject.
Very truly yours,

Roberts Walker, Esq.,
c/o blessrs. White and Case,
14 Wall Street, New York.

BS/M8B



Governor.

CABLE ADORESS',WHITECASE"

RW -AM

WHITE & CASE
14 WALL STREET

NEW YORK

May 29, 1918.

Dear Governor:

Many thanks fcr yours of May 28th. There seems

/

agreement Oat no freight was to be
charged, beyond the fact that thireceipt for the gold con/
signed contains no suEgestion oi freight charges. I am
glad to receive your recollec ion donfirming my understandirg
that no freight was charged 7'/P
to be nc record of the

Faithfrours,

Benjamin Etrong, Esq.,
Governor, Federal Reserve Bank,
15 Nassau Street,




New York City.




WESTEA

Form 2589 8 ,

UNION

,

1

WESTERN UNION

TER

DAY

THEO, N. VAIL, PRESIDENT

RhCEIVED AT COT7ON

EXCOANGE,

8150EX V 35 BLUE
NEWORLEANS LA FEB 27,1914
BENJ STRONG JR,

14 WALL STREET

NEWYORK

YOURS CONCERNING CURLL5.BILL STOP

NEVER KNEW HIS CONNECTION MATTER

BUT EVIDENTLY STRICTLY PROFESSIONAL STOP

NEVERTHELESS,REGARD GARVINS

FIGURE ENTIRELY FAIR UNDER ALL MUM= CIRCUMSTANCES STOP HIS
DISBURSEMENTS SHOULD BE-ADDED STOP DONT FORGET PRINTING BILL




DUPRATT WHITE

207PM

0leetit
MAR

(--ae4o4
`t.

Vro.d.eiL






NA, LI '4:0

%tev.,1Aa,.
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CABLE ADDRESS .WHITECASE

WHITE & CASE
14 WALL STRE

NEW YORK

October 7, 1914.

;, Jr.,
3treet,

York City.

0, -8 1914

you for your note of yesterday. After
ne I had already suggested to Van Antwerp
;ton people see Mr. Warburg.
His answer
aance Committee is still tinctured with
suspicion ana idley fear for the correctness of the
information they might get from that source.
Senator Hitchcock has gone home till after
Christmas and so you will not be able to see him in
Washington, but they all appreciate that you are wise
in not writing your views in the matter.
I am trying
to get hold of the man who wrote the article in the
"Chronicle".
If I do, perhaps you would be willing
to talk with him.
Yours sincerely,

4L:4,
4`4ZIO,




orva-

,6,

CABLE ADDRESS WHITECASE

WH IT E

CAS,

14 WALL STREET

NEW YORK

JDW- -MC

Mr. Benj. Strong, Jr.,
16 Wall Street,
New York City.

October 7, 1914.

OCT -8 1914

.i)ear Ben:

I thank you for your note of yesterday. After
your talk with me I had already suggested to Van Antwerp
His answer
that the Washington people see Yr. Warburg.
was that the Finance Committee is still tinctured with
suspicion and they fear for the correctness of the
information they might get from that source.

Senator Hitchcock has gone home till after
Christmas and so you will not be able to see him in
Washington, but they all appreciate that you are wise
I am trying
in not writing your views in the matter.
to get hold of the man who wrote the article in the
If I do, perhaps you would be willing
"Chronicle".
to talk with him.
Yours sincerely,

SZ&SC-.
Qhsqc;::




5LQ

Mr. Strong




From Pierre JE,4

ELT2 & cam
14 WALL STREET

New York, February 25, 1920.

JDU'LC

Federal Reserve Bank,
120 Broadway, NOW York.

Dear Sires'

You have asked for our opinion as to whether under the Federal Reserve
Aat the Federal Reserve Board has the power to initiate discount rates from time
to time, or Whether such power resides solely in the Federal reserve banks.
The FedThere can be no question as to the power of the Congress.
been given the absolute and exclusive power to
In fact in subdivision (t) of Section 11 of the Act is has
initiate rates.
rediscount rate to be charged by a
been given the exclusive power
tank on the rediscount for other Federal reserve tanks of dieFederal reserve
counted paper. The question is therefore, what the Congress inteaded by the
language of the several sections of the 44ot as to the power of the Federal Reserve Board in connection with the discount rates.

eral Reserve Board could have

tp fix the

seem to be
simple maxims of statutory construction.

No legal principles

involved in the question except a few
The Attorney General in his opinion

of Decorator 9, 1919, invokes one of these - that, if p088 ibis, meaning must
In applying this principle he emphasizes
given to all words of a statute.

be
the

use of the word ',determination,. in subdivision (d) of Section 14 of the Act,
wherein it is provided that discount rates as established from time to time by
a Federal reserve bank are subject to review and determination of tho Federal
Reserve Board, and the conolus ion he draws, which seems to us justified by the
limited
language, is that the power of the Federal eserve Board
view of such a rate but that the Federal Reserve Board may follow such review
with the one
by a determination establishing another rate, if
And the Attorney General goes further and holds in effect that
under review.
the Federal Deserve Board has the power to initiate rates.

is not

to a re-

not satisfied

' The same principle of statutory oonstruction requires, believer, that
use be made of the words found in the same subdivision giving to every Federal
reserve tank the power "to establish from time to time 'be* rates of discount."

our opinion is that the meaning Whioh must be given to those words is that the
Federal reserve tanks have the power to ialtiate r-.4te3 aad, -Lecause we find no
specific; grant of such power to the ?ederal Reserve Board, that that Board has
no such power except in so far as a determination in conneotion with a review
think that the Federal Reserve Board's
may to regarded
power is, however, spent after a-review and determination in respoot of a rate
13tal1ished by a Federal reserve tank.




as initiation.

-eederal Aeserve aank.

But there is a practical side to the matter.

eubdivision (j) of

general supervision
eeotion 11 of the Lot gives to the Federal Reserve
those words, Which have reoeieed soae ladle'
over the Federal reserve tanke.
oonsideration and oonstruotion, are broad and effective in their scope an,'
has been held that an officer Who can anly advise or sugges',:, to anefaer a
general supervision over him, his acts or his conduct.
Board

Bearing in mind the scope of the power
that a tank Was satisfied with its (mistime

of general supervision, asset,

rate, etieh had already been re-

viewed and determined by the Board, and assume that the Board had decided that
the rate should be Changed. The Board mIght call upon the bent-to establish

and report its rate, and even though the rate so reported might be the same as
before we thank there would have been a sufficient exercise of the power of initiation by the tank to open the door for review and determination by the Boerd.
Or MIMEO that the bank was not satisfied with the rate estatlishei
It might establish a new rate,
by the Board, after review and determination.
Should
which also would open the door for another review and determination.
such a course result in an unseemly race between the Board and a tank to fix the
rate, it would, we think, be a fair construction of the general supervision provision of the aat to hold that in such circumstances the Board might direct the
'tank not to change the rate as determined by the Board until the lapse of some
arbitrary but reasonable period, unless sone change in the situation "with a
.view of aocommodating oommeroe and business" (Sec. 14 sub. (d) ) should, in the

judgment of the tank, have reasonably suggested it - that is, some'dhange from
3udh inthe conditions obtaining at the last determiaetion by the board.
structions wonld praotically tie the hands of the tank, because its directors
could not resolve that in their judgment such a Change had taken place merely

They would in justice to themselves
because they thought the rate 103 wrong.
lip obliged to believe and find that sons such real Change had taken place.

We are not oommenting an the wisdom or uneisdom of the statute but on
the history of its passage shows a stragalo between
the statute as we find it.
the ideas of a central tank and Of more or less autonomous regional banks. The
latter policy prevailed in general end yet the
co-ordinate the eeveral tanks
compromise, and the intent
through a central power to Which is given, among other powers, "general sepervisional such absolute and coercive control as the power, an the affirmative

statute is in several respects a
IS clearly reflected to

vote of five neenters Of the Board, to require a tank to rediscount the discounted
paper of Other banks at rates fixed by the Board, and the power to suspend or re
move any officer or director of any Federal reserve bank.
There are inconsistencies in the statute, as there usually are in
statates that have passed through the fire of compromise betmeen strongly-urged

conflicting theories, tut the idea of central control, while it mey have, in
the popular understanding of the statute, been defeated, nevertheless is really
the dominant thought of the statute as a whole. As a further instance, it is
provided in Section 4 that the board of directors of a Federal reserve bank
shall "subject to the provisions of law and the orders of the Federal heserve

Board extend to each member bank suoh disoounts, advancements and accommodations

as may be severally and reasonably made with due regard for claims and demands
of other member tanks." The conclusion seems to us to be clear that the intent

Of the ecaaress Was, for all practiced purposes, to rive to the eederal %serve



to

rase,

,tc

)nt,
.ve the
is that the tan
the power to ah,,,,k0 thota so rbut ttg'..
oard
s ao pt - dirsoti,-, to initiate u rate tut that thc
dent to enable it by one mans or wother to tr_
..ei, is et;

ofaelue
th0
f4

out any u..

totate.




t4

.,

in thc

,..efor

soount rates in any dietriot that its judgment may
Yours very troll*

(Signd) white & oase.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102