The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF MINNEAPOLIS NINTH DISTRICT REC OFFICERS zvFILING S.S.COOK, CASHIER DI RECTORS THEODORE WOLD,OOVERNOR JOHN H.RICH,tHAIRmAN AND FEDERAL RESERVEAGENT J. C. RAE S ETT, AGERDEEN,S.D4 APrl 2 `: iii6 D P.M.HERST,vicE. cHAIRNAN AND DEPLE, FEDERAL RESERvE AGENT E.W.DECKER, HINNEAPC LIS ,0 INN. R.B IGELOW, Sr. RAUL.N1INNESOTA APR 2 L. B.HA N NA, FARGO, N. DAKOTA JOHN W. BLACK, HOUGHTON,NIICH. 1915 19 41 F. R. H IXON,Lw CROSSE,WISGONSIN N. B.HOLTER,HELENA,MON, FEDERAL RE8thit BANK April 19, SiiEIRALREVEBANK Ad Mr. Benj. F. Strong, Jr., Governor, Federal Reserve Bank, OF NEVI YORK air494 44°49..e New York, N.Y. Dear Governor Strong: Your favor of the 16th in response to my letter of the 12th regarding plan of settling balances between the Federal Reserve Banks and asking regarding the custody and safe-guarding of the gold pool which is to be contributed by the Federal Reserve Banks, is at hand, and attached correspondence noted. In the opinion of Attorney General Gregory, made public by the Secretary of the Treasury on December 19th, he holds that the Federal Reserve Board is a separate and distinct board, not a branch of the Treasury Department, and he holds that the "assessments that have been levied by officers of the board pursuant to the provisions of a Federal statute are to be devoted to the payment of official salaries and the expenses of this official board." He also holds that this money so collected is no longer the property of the paying banks, but is money belonging to the United States, and subject to audit, but under no stretch of the imagination could it be held that a gold pool,such as is proposed, would be part of the public funds and subject to audit. Section 16 of the Federal Reserve Act confers upon the Board the power to exercise the function of a Clearing House. I understand the function of a clearing house to be to accept money from those members from whom it is due and to pay it to those members to whom it is due, and where the members of a clearing house association see fit to form a pool, as they do in a few of the cities, but which is not general in practice, they safeguard those funds, and it is no reflection upon the Federal Reserve BoardiOr the members of this pool, which are the twelve Federal reserve banks, to want to know to whom to look for the safe custody of the funds they deposit. The Treasury Department advises us that there is no way provided for the issue of a duplicate registered gold certificate except through an act of Congress. The fact that the funds which we deposit will be order gold certificates and that no one else but the Federal Reserve Board or member banks can receive the gold represented thereby, does not justify us in not using the utmost precaution. From what dealings the writer has had with the Treasury Department and Government officials, he is led to believe that they assume no responsibility whatever, but require the other fellow to "hold the bag". Only recently our Federal Reserve Agent asked that a quantity of Federal reserve notes be deposited with the Assistant Treasurer at Chicago so that they might be obtained quickly in case of an emergency. After some correspondence, he learned that this might be brought about, provided the Federal Reserve Agent or this bank assumed all responsibility in case of loss. While we do not expect it, do you think we ought to lose sight of the fact that there might be a loss of some of these certificates, and in case there was a loss, who would be responsible? It seems to me we ought to know whether or not the Federal Reserve Board have the legal right to act as Trustee of this gold pool, and if so, a clear understanding that the Board would be responsible. 1L)'" i "no kt \--.) 19\5 n \ York- - -3 In reference to your letter to Mr. ::arburg, .suggesqm a change in ' Paragraph 4, its adoption would eliminate the time schedule entirely and make drafts upon a Federal Reserve Bank immediately par upon receipt. That is one feature that appeals to me, but we would probably, in order to protect ourselves, require member banks to make transfers through requests to us instead of by check on us, which is the proper way for transfers of funds to be made. Yours truly Governor U RR LAEBRIS OF igt5 L(6 JG DEPT. JAN 7- 1915 FEDERAL RESERVE BANK f January 6th, 1915. Dear Governor Welds Your greeting lad good wishes were on my desk this morning on my return from 'Mite Sulphur prings, and IL hasten to thank you most cordially for your note and wish you the same most heartily. Very truly yours, Gogernor. Theodore \:;$31,4eator Governor, taier,ipeierve Bonk, Minneapolis, :inn. B6jr/V05.4 October 15th, 1915. Dear Governor Vold: Your wire came yesterday and I wa very sorry to be obliged to auswer as I did, but the situation really would not justify my making an engagement to speak at the banquet of the Twin City Bankers. If I am able to go to Anneapolis for thd conference, as I now expect to do, I will explain to you more in detail When I see you. With best regards, believe me, :incerely yours, Theodor....;44,. aovernor, Federal Resorve Bank, Minneapolis, Minn. BS Jr/VCM Estes Park, Col., September 2nd, 1916. My dear Wold: I have read your address delivered at the Montana State Bankers Aseociation last month with a great deal of interest and much admiration for your good "puncht lin the interest of the System. It has done a 1ot4L7------1 Or-go-o-4-o, I noticed quotations from it in various pub14.0ails, g the conservative old Chronicle in. w Yorio ' all with favorable I comments. Z:-77-----;'N It leads mt,io su .g/myst th* osirability of you being , / 0 \-/' one of a number ofio r frater ly to attend the Kansae City Con.rere ar\!, re t.00' some attacks launched at the vention./' ---I / / Syste, t e and we should be fully and ably represented, if posoiblt to head off. If you can go, I,certainly hope you oh the liberty of writing similar suggestions to will anNk 1 some of the others. I heard all about the Boston meeting and wns very much gratified by the telegrams you fellows sent me. You can irAlgine my disappointment at not being there, With warmest regardsi Sincere; y yours, Theodore Wold, Esq., Governor, Federal Reserve Bank, Minneapolis, Minn. BS/VCM /77 FEDERAL RESERVE BANK OF MINNEAPOLIS NINTH DISTR I CT OFFICERS THEODORE WOLD,GOVERNOR OS. COO K. CASH IER DI RECTORS JOHN H. RI CH,CHAIAMAN AND FEDERAL RESERVEAGENT W.H.LIGHTNER.ospu-ry CHAIRMAN AND DEPUTY FEDERAL RESERVE AGENT J. CRASS ETT,ABE.RDEEN,S.OP.H. E.W. DECKER,N,os,r,mN. F. R.BIGELOW,s, PAUL-MINNESOTA L. B.HAM NA, FAR., N. CA ROTA JOHN W. BLACK, HOUGHTON,MICH. F. P. HIXON.1-4 CROSSE,WISCONSIN N. B.H0121-ER,HELens,morcr. September 6,1916. Mr. Benj. Strong, Jr., Estes Park, Colo. Dear Governor Strong: Your favor of September 2nd is at hand, and I thank you for the kind reference to my Montana remarks. In reference to the Kansas City convention, aside from Mr. Treman there was not very much enthusiasm displayed. A number of them thought that we might find ourselves in an embarrassing position if we did go. Upon my return home I therefore turned over my reservations to Mr. Hendricks, as he was without reservations. Since then, however, I have been urged by Mr. Treman, and now get your letter setting forth the necessity, in your opinion, and the importance of being represented. I defer to your judgment in the matter, and if I can secure reservations will arrange to go. Governor Aiken handled the Boston meeting very nicely indeed, but the meeting was incomplete for the reason that the "King" was not there. If you could have heard the regrets expressed and the hopes that you would soon be with us again, I am sure it would hasten your return to good health. Sincerely you s vernor TWC 4'6 Estes Park, Colo., September 9th, 1916. Dear Governor Weld: Your letter of the 6th is just receirtd and I am feeling a little uneasy in my conscience if my1 fetter led to decide to go to Kansas City againetIcauz_bls the other hand, after attending rip- of bank' you judgement. On Group meetings, ives of the c a restraining influence, Federal Reserke System will vs vitt in the proceedings. oven if those preeel,tViret: ., it ena es m ers to ask questions and Then aglii sence mn convinced that the more ± get accurate ane ' s and, represen 1 more important, it conveys the bankers that we are interested in w%14 all e / their( ffairs an -ufficiently no to watch what is going on. I impreedt hope o eCk. o,and feel repaid for doing 'so. 1La.lay-Ahanke for your letter and for giving considerafollow w ,/ tion to my suggestion which was reallg none of my business. With warmest regards, Sincerely yours, Theodore Jold Esq., Governor, Federldheserve Bank, Minneapolis, Minn. BS/VOM T-14,49DORE WOLD cit/ze GOsav 2 7I co,a 1/0 7, G? -0 - \ 741, 7a4. 4A.,5 jf C - - ) - c-Cz -z_- 70 0 -c ' L_ c- 777'1 -0) 6,/ 74, (AD - C9- November 21st, 1916. Dear Weld: I have just re ived o of the 17th nd appreciate your writing me very You can d w'nnt a depr otion it is for me to meeting, but 'nevi things that are now u only the Governors in all the interesting way. f my getting on much as 1 we id like to the boys my warmest re- ing along very well and still hopeful of eturning sore day. ,h warmeet regards, Faithfully yours, Theodore Weld, Esq., dovernor, Federal Reserve Bank, Minneapolis, Minn. BS/VOY FEDERAL RESERVE BANK OF MINNEAPOLIS NINTH DISTRICT OFFICERS S.S.COOK. CASHIER THEODORE WOLD,DOVERN.R DIRECTORS W.H.LIGHTNER,DEPUI, CHAIRMAN JOHN HRICH.CHAINNIAN ANDFEPERALIRESERVEAG C.BASSETT.ABERDEEN.S.17 F. R.BIGELOW.5-r. FAuL ItAES JOHN W. BLACK, liouGm-ron,m1.1 Op JO LT E R / I V ANDOEPUTYFEIDEPALRESEGVIEAGENT . DECKER MINNEAPOLIS.MINN. E Jo . HA N NA, FARGO, N. DA o-rA P. HIXON.L.4 CROSSE,WISCONSIN November 27,1916. Dear Strong: I am enclosing herewith a picture of our Kansas City associate, which before it WS received by me, bore the initials of yourself and Archie: The picture has been noted by members of the fraternity and is returned to you for filing among the archives. I called upon your friend, Robert Masson, yesterday morning, a mighty interesting gentleman. J/0-1- Decker, Jaffraytand myself today. He is to lunch with My only regret is that his visit is not going to be longer so that I coul Benjamin Strong, Jr., 4100 Montview Blvd., Denver, Colo. him. November 30th, 1916. Dear 'old: of Thank you for the souvenir wt the r ivcs where the 27th. le/am adding it it will afford permanent evidence of the v stile the governors attainments of at leqe I am glad y with Vasson. He bcst bankers I know and on a very i somewhat heodore Wold deal Res sq., Lank, inn. unity to visit man, one of the _re, as you realine, hovever, is FEDERAL R ESERVE BANK OF MINNEAPOLIS NINTH DISTRICT OF F I C ERS THEODORE WOLD,GovERnop FRANK C. DUN LOP. ASST.CASHIER S.5. COOK CASHIER DIRECTOR'S W. H.LIGHTNER, DEPUTy CHAIRMAN JOHN H. RI CH, CHAIRMAN AND FEDERAL RESERVEAGENT .C.BAS ETT. ABERDEEN,S.C.K. F. R.BIGELOW. ST. PAUL,HINNESOTA akfef. AND DEPUTY FEDERAL RESERVE AGENT E.W.DECKER.,,KNEARo,s.m.n. L. BRA N NA, [ARGO. N. DA 001A F. P. HiXON,LA CROSSE,WISCONSIN JOHN W. BLACK. HOLIONTONJAICH. N. B .HO LTER,NELENA,moN-r. February 21,1917. FEB2 6 1917 Mr. Benjamin Strong, 4100 Montview Blvd., Denver, Colo. Dear Mr. Strong: I have receipt of a letter this been made very happy by morning from Mr. Treman, written after the return of Mr- Curtis from a visit to you, and I am looking forward with keenest pleasure to June, when you will be with us again, ready to encourage and inspire us in the work. Sincerely yours, ,Governor TW-C (COPY) FEDERAL RESERVE BAN( OF MINNEAPOLIS February 21, 1917. Mr. R. H. T4Q2211, C/o -Federal Reserve Bank, New York, N. Y. Dear Mr. Treman: I am delighted and encouraged with the information contained in your letter of February 19th, regarding the tmproved"condition of Mr. Strong. The system needs him, his ability, experience and his enthusiasm. Individually, I need the support and inspiration of the association with him from time to time. I shall look forward to June and to his return with anticipation and pleasure. Sincerely yours, (Signed) Theodore Wold, Governor. Denver, Colorado, February 26, 1917. Dear Wold: Many thanks for your nice letter so husky that I could lick my weight the 21st. wild cats and irtly, when Ihibition the weather permits, hope to be playin6 golf. The bes of progress is my weight: 3 pound Enclosed is a little Archie Kains. aithfully yours Theodore "old, Esq., Fedeial Reserve Bank: o Minneapolis, Minn. e last June. us, FEDERAL RESERVE BANK OF MINNEAPOLIS NINTH DISTRICT 0 FF I C E RS S.S.COOK, CASHIER THEODORE VVOLD,GovERNoR FRANK C DUN LOP, ASST.CASHIER DIRECTORS W.H.LIGHTNER,DEPUTY CHAIRMAN OOHS H. RI CH,CMAIRMAN AND FEDERAL RESERVEAGENT AND DEPUTY FEDERAL RESERVE AGENT J. C.SAS SETT. ABERDEEN,S.DAK. E.W. DECKER. MIN NEAPOLIS,ININN. L. BRIAN NA, FARGO, N. DAKOTA F. P. HIXON,LA CROSSE,WISCONSIN JOHN W. BLACK, 00000TON.M1CH. N. B .80 LTER,HELENA.n. NT. R.B IGELOW, sr. PAL1L,HINNESOTA March 1, 1217. Mr. Benj. Strong, 4100 Montview Boulevard, Denver, Colo. Dear Governor Strong: Your note of the 26th is before me, and. I Irve had a good laugh over the Scotch joke, unaccompanied by any Scotch liquids. So long as a man can enjoyi6eotch stories and put on twenty-three pounds, there is no o casion for his friends worrying' over him any longer. Just to t some 3mii.2.ing things may be system, I am enclosing e the curse off and to prove that rought out in the development of this rewith an argument prepared by our Transit Manager as to why redi counts should be made to member banks without any charge for inter s by mail, by freigh loan them money . If we are going/to transfer funds by telegraph, and by gosh, there is no reason why we ought not to thout interest, he says. Sincerely you Gbvernor fiw-C An argument for doing away with the charging of interest by Federal Reserve Banks on rediscounts of member banks. The principal argument Federal Reserve System was based upon Banks could render their member banks rendered the service the member banks business of the country in general. for the establishment of the the service the Federal Reserve and through the service thus would be enabled to render the It is stated emphatically by those interested in the establishment of the Federal Reserve System and those directing the management of the Federal Reserve Bnaks that dividends on the stock of the Federal Reserve banks are of secondary consideration and that The first little consideration should be given to their earnings. With this in consideration is to be given to the service rendered. view exchange charges are to be done away with and no charge is to be made for service rendered in the transferring of funds from one center of the country to another. The reason given for not making such charges is that such service costs the Federal Reserve Banks little or nothing. It is stated that such charges "Will surely be no more than might be properly absorbed by the Treasury Department or the Federal Reserve Banks - for the benefit of the commerce of the country and the member banks of the system - An incidental (and possibly subordinate purpose) of the Federal Reserve Banks is to provide beneficial service to member banks, and the necessary costs, provided all member banks share in the benefits, may in many cases be absorbed. Having provided them (the member banks) with the facilities afforded by reserve depositories, may the Federal Reserve Banks not properly absorb the cost of such facilities." According to the conclusion reached by several authorities the Federal Reserve Banks have been able to entirely eliminate space and time as regards the transferring of funds and the benefits derived therefrom should be passed on to their member banks without charge for the service rendered. Exchange charges are the most Ancient and honorable in banking history and until the establishment of the Federal Reserve System have never been questioned. They are charges made for the transferring of funds from center to center and have aDays been recognized as legitimate. The only questions that have been raised as regards such charges are as to whether or not they are reasonable and as to who shall pay them. Interest charges were condemned by all ancients, both philosophers and lawmakers and it is only in comparatively recent times that they have been tolerated. Aristotle said, "Money is barren." The charging of interest was prohibited by both church and state and the man who charged interest was without the pale of society. With the foregoing in view it would appear that -2- if the Federal Reserve Banks are in a position to do away with any of the charges with which modern business is burdened that the first one upon which effort should be made is that of interest. It would also appear from careful study of the different statements of the Federal Reserve Banks and their combined statements that the Federal Reserve Banks can well afford to waive interest charges on rediscounts made with them by their member banks and thus grant to their member banks a service they are justly entitled to. Referring to the combined statements of resources and liabilities of the Federal Reserve Banks as of December 29th, 1916, we find that the total of rediscounts of the Federal Reserve Banks at that date was $30,196,000.00. The earnings of all the Federal Reserve Banks on bills discounted for member banks for the entire year ending December 31st, 1916 were $1,025,675.00 out of total earnings of $4,955,343.00. On December 29th, 1916 the Federal Reserve Banks held as deposits of member banks net $668,786,000.00 upon which no interest was paid. total It would appear that by wise and judicious investment, of a portion of the large amount on deposit by member banks, in government obligations; municipal.warrants acceptances and by dealing in government bonds, that the Federal Reserve Banks should be in a position to waive all interest charges on rediscounts for member banks. It would also appear that the member banks are fully entitled to receive this benefit in view of the fact that no interest is paid them upon their deposits and that they are compelled to carry such deposits with the Federal Reserve Bank. Some criticism night be raised to such a policy on the ground that all member banks might not participate in the benefit, but as long as the privilege was open to all members such criticism would not apply any more than it does to the doing away with the charges for transferring funds from one center to another. It would appear that it is the duty of the Federal Reserve Bank to co-operate in the efforts that have been put forth by others from time immemorial in reference to interest charges, as interest is the cause of our being afflicted with the idle rich, the drones, the Shylocks and parasites of modern times. (Signed) A. Nutt of the FEDERAL RESERVE BANK OF MATTEAWAN. EDERAL RESERVE BANK X Lay (THIS CONFIRMATION OF TELEGRAM OF MINNEAPOLIS !.T0.).1LEI-) D") BELOW IS A FACSIMILE COPY OF TELEGRAM SENT YOU TODAY Ohp,' ez bank !'e rx) 1 is Octobt:r 1,.t17 enj Strong..., 1191 oqTl ui17 . New York ii you vry =lei', for t/ JLT. paid .when prnsented. Thc Odoro W. U. iO1C tOrI -0 rro-muy 4r k*," Form " IF SERVICE SYMBOL lessage Letter Blue Night Message NL TEL If none of these three symbols appears after the check number of v rds)th is is a day message. Otherse its character is indicateeltrt tps s UNION Bite Night Letter WESTE II appearing after the -ftfk. (JEiia mEm..60N.5gs,DENT CLASS OF SER ICE *Day Letter Night Message AM GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT appears after the check number of words)this is a day message. Otherwise its character is indicated bythe symbol appearing after the check. SU MINNEAPO IS MINN 520P OCT 15 1917 BENJ STRONG JR .' FEDERAt_ RESERVE BANK NEWYORK ARE OF THE BOY DRAFT WILL BE THEODORE WOLD ' y 0'T1 7/917 631P Bite NL If none of these three symbols 16 BROAD ST. N.Y. 457 NA ANV 17 PROAPTLY PAID WHEN ?RESENTED Be Night Letter RECEIVED AT THANK YOU VERY MUCH FOR TAKING SYM r IL Day Message ,-9aasu March 6, 1919. AND CcaFIDaTTIAL My dear Governor Welds For some time I have been interested with some friends in a study of some of the problems of ties of a our national financial system and particularly to the possibili- reform movement which might result in the establishment of a scientific The need for this has been made apparent to me uuring the plan for a Federal budget. past two years and as a result of contact with the opportune Some of my friends believe the time is now est the people of the financial machinery for a in Washington. general attempt to inter- financial reform. country in national The campaign for saving, thrift and sensible spending, incident to the flotation of Uovernment loans has put many of our people in a receptive mood ther suggestions in these matters. be reduced if both individuals is particularly true with The national for fur- debt must be reduced and can only and the Gavernment practise sensible spending. It the GOvernment but cannot be made possible until scienti- fic machinery is installed to accomplish it. Students of this subject seem to be in general agreement budget system is the only solution. be installed, a nonpartisan It is a scientific To persuade our peopie that s organization paign of publicity inaugurated. that should be built up and a wise and sane cam. a plan of that sort in which some of my friends are interested with a view to activity after the next loan is placed. In the meantime steps must be taken to prepare the publicity, and the personnel of the organization must be developed in advance. It is, of tions as such for course, out of the question to utilize the Liberty Loan organiza- an enterprise of this character. It does not proper for me to ask you if in your experience with the Liberty Loan, -:iar Savings, or other organizations in connection with the war, you have come in contact with individuals # 2 in your March 6, 1919. . district who would be likely to be interested in this movement and who would be qualified for service in such an organization and who would do so as a matter of public duty. What is first needed is a representative in every State, competent to take charge of the movement and direct it in the State. He should have qualifications to enable him to become a leader of the ,Aate movement, some ability as an organizer, should be public spirited, able to grasp the suoject and willing to study it, and should be regarded locally as without political prejudice or purpose, and have the confidence in general of the people of the State. In addition to State directors, similar organizers must be appointed in the various counties and principal cities. I shall be greatly indebted to you if you can let me have suggestions and names of men in your district for this work without, to them. You may now them well however, mentioning the matter enough to make ,:efinite because you came in contact with them recommendations not only in Liberty Loan matters, but other public spirited activities with which you are acquainted or connected. This is a matter in which I have a strong personal interest and grateful for your assistance. have an opportunity to refer will be At our meeting in Washington on t to this matter more specifically. Sincerely yours, Governor. Theodore Wold, Esq., Governor, Federal Reserve Minneapolis, Minn. BS/DT Bank of Minneapolis, 4 April 3, 1919. Dear Mr. ';old: I nm anxious to gez suggestions from you as to some one to do 6=18 work in 3outn Dakota in oonnection with a proposal now being haped for kederal legisla- tion designed to establich a financial budget for our Government. The work revired will not be very onerous, but it will need the services of a an who oar develop an organization for the purpose of some little educational and publicity work to bring about a better understandina, of this subject. it will be necessary to raise a small amount of money, and,generally, to carry out the program which will be laid out by ,trie organization at the ew fork headquarters. It needs the services of a man .Jiho is interested in the economic aspects of the Government's finance, and who is sufficiently interested in the subject to be 1l.Ling to delote sor:e time aud energy to brin;.;ing about an Improve:a:Lt. It would be preferable to have some one 4ho would be capable of making an occasional address on this s,..zioject, and who ' iold be xillial himself to study and understand it by an examination of literature L vill later be furnished. I will greatly appreciaLe any help you can tjive me in this connection, by suggesting anyone you think could undertake this work successfully. iaithfully yours, Theo. 701d, sq., Governor, iederal 7:ieserve Bank of linneapolie, ainneapolis, Linn. April 11, 1919. Dear Mr. .. 01d1 It 'vas very good of you to make the further auggestions contained in yours of the ninth of possible South Dakota mpresenta- tives, and I thoroughly appreciate your cooperation in this matter. Sincerely yours, Theodore o1d, Esq., Governor, Ped-ral Reserve Bank of Minneapolis, Minneapolis, 4inn. USB 42-1- IPI September 14, 1921. Dear Governor Young: You will recall that about two years ago we had some correspondence in regard to the work of the National Budget Committee. In part, at least, passage of the budget legislation by the Congrees was due to the work conducted by that Now that the basis of the budget system has been adopted by Congress, committee. our organization is endeftvorine to cryetallize public sentiment for the support of the progray of governrent economy and thereby to insure permenent success for the new national budget system. y re are eeking to extend this work by eelecting, so far ?,fii poseible, bankers to accept active chairmanehips in various of the eore important cities, simply to carry on work which will be laid out for the by the national oommittee. The scope of the work is described in the enclosed memorandum. Can you sudgest representative rea, prefereoly bankers, who might be willing to accept such appointr,,ents in the cities of dinneapolis and St. Paul. At the present time I shall only ask you to suggest neoess, but leter on poeeibly you would be willing to commtnicate yeah them directly and further our object of having them accept these appointeents. If for any reason you think it unwise to make these sugeestions, will you not write me quite frankly and, if you ere willing to do so, give me your reasons. With best regerds, and thanking you very- cordially, I am, Yours very truly, R. A. Young, Esq., Governor, Federal Reserve Bank of Minneapolis, eenneapolie, Minn. BS:UM enc. November 28, 1921. Ok Dear Governor Young: 00 Mr. John tion he is T. Pratt just wrote me of the warm receiving at the hands of my good friends in connec- continental tion with his recep- trip in the interost of the National Budget. He particularly mentioned the pleasant and profitable visit he had :fah you, and with what It is Budget matters. the National enthusiasm you discussed gratifying to,knom Budget Committee is that the chairman of meeting mith such hearty cooperation, and that good progress is being made in forming I deeply appreciate your organizations. courtesies and um glad he had the opportunity of meeting you. With best aishes, believe me, Yours sincerely, Mr. R. A. Young, Governor, Federal Reserve Minneapolis, Minn. Amp Bank of Minneapolis, State to Mr. Pratt, -790 FEDERAL RESERVE BANK OF MINNEAPOLIS November 30,1921. Mr. Benj. Strong, Governor, Federal Reserve Bank, New York, N.Y. e),1159 2 'C 92/ ()))4'' 7)ear Governor Strong: willja mawledge receipt of In my humble way I attempted to do what I could for Mr. Pratt when he was here, and am more than pleased that he has been so appreciative. This your letter of November 28h. I am sending you in confidence a copy of a letter I wrote the Federal Deserve Board I am rather keen in reference to Exchange drafts. about this question and hope they do not remove the I know that you are against removing the limit. limit, and if it is not askin.g too much, I would be interested in having a copy of your reply to the Board I can assure you in advance that any on the question. information furnished me will be used with discretion. With kindest pers Yours 1 regards I am y t41117, Gove*Jor RAY-C FEDERAL RESERVE BANK // F MINNEAPOLIS January 30,1922. <1;) 4 ,/ 4ek.it Mr. Benjamin Strong, Governor, Federal Reserve Bank, New York, N.Y. 4, f 1.63 s 'f2 '<<9 Dear Governor Strong: Under date of June 30,1921, Mr. S. P. Gilbert, Jr., Under Senretary of the Treasury, dispatehed' Memorandum No. 90 to all Federal Reserve Banks. An excerpt from the second paragraph of the memorandum reads as follows: "Federal Reserve Banks will not be reimbursed for postage and registry fees Incurred in connection with exchange transactions of issues dated prior to July 1,1921, including exchaages of temporary for permanent bonds". Would you be kind enough to advise me if your bank is absorbing this expense without reimbursement from the Treasury Department, or whether you have discontinued reimbursing banks in Your district such fiscal gency for postage and registration fees transactions? Yours very RAY-C