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/ I A". 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§sury, 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,. w 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.