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Estes Park, Colo., July 31, 1916.
Mr. Archibald Kains,
% Federal Reserve Bank,
San Francisco Calif.
dear 4,1r. Kains:
Your letter of July 24th has just reached me here
deal of pleasure indeed. You can
imagine how distressing it is to be laid on the shelf, even
for a limited time, and particularly at this time when it
seems as though the fruit of the last t -years' work is
just beginning to ripen. Ye-tie good WI et\sympathy are
very much appreciated although e4er Oa in
t savage
Scotch way, which you affect and whici I know c m e right
from the heart.
/
I am not going to be/at---le lay
geilf this
year but it will be possib e for in P doLee fishing and
I am hoping to commence t i week i/ e. very excellent trout
stream that runs right th o gh this alley.
All of the Go
ve writ/ten to me or to the
office, expressing the goo -f-66:1i1igs and sympathy at which
sometimes I am incline t wonder on account of the rather
ruthless manner in
ey have been treated occasionally
at our conferences
' airman. I do not need to 'tell
you thai the greaVe
re I have had in the association
with t
overnor,
n to watch the development of good
feeling
eh has
led 118 to accomplish many things that
and has given me a great
;
would hay
pendent of
ossible had we been working cilite inde-
r.
Abou_ that fishing you mentioned, if it should come
back to yo444. mind next spring, I would be strongly tempted
to run ovete,'to the MdCloud River and join you there for a
little flailing, if you are able to arrange it. It.vould not be
possible for me to travel that distance this year before
the fishing is over.
I au not afraid of the Scotch or the
Indians, or the combination, for I assume that there is a
proper .supply of mountain dew and the other accompaniments
of good fishing, but best of allwwhat is needea is goo&
company, which I would look to you to provide.
We are delightfullY settled here ie a little cottage
attached to the hotel, where I have an office
and from whlch
I keep 111D an active correspondence with New York. Just now I
have been working up the Bank of England arrangement which
the Board at Washington mast act upon pretty soon.
.
Drop me a line now and then when the spirit moves you.
Very truly yours,
-With warmest regards,
'BENJ. STRONG, Jr.
_PERSON L.
sbruary 9, 1915.
My dear Governor Itins:
Thank you for your letter o-:! the 4th in regard
to the 4istribution of the gold bind.
After consideration, the Committee decided that
it would not be fair to make the distribution without giving
the oontributors the privilege of accepting Few York sc.clvnge,
and of course, most of then; will take a4vantage of that
I. am very mnrry that it could not be arranged
opportunity.
the other 'may, but vie did the bost oo could.
71th kindelt regards, believe no
Very
tr07 your,
Governor.
Archibald Rains, Esq.,
Govornor;Foderal Rsaervo 'Ala: of San Frmnoisco,
Omn Frmncisoo,
3S-Jr-RAH-26
L.
January 29th, 1916.
dear Yainl:
Thank yo 7 for yrar ntes not and 17cod wishes
--,nt from Chicago.
Lehall certinly take the opportunity to becow, acnuaintk?d with the Bank of Scotland people through
the courtesy of Vr. Crimble and, of course, will see
Z:T. Jones at the
',,(Inff kong
Thanghai Bark and the
rs of the Chartered Bank.
wonder what kind of a fix I will be in if the
voluminous notes In crnnectien with my trip should be
scooped' by the censer.
Once more, my sincer- regrets that you are not
We could accomplish more and besides that
going with mo.
have a goof? time.
Yo-1 can, of course, consider yourself one of the
Tulare" at 1718 H Ftreet.
"11th best regards and prosperity to you and to
ymr bank, I
m,
Sincerely yours,
Al XanS
sq.,
Federal ?..esorve Bank,
San Francisco, Cal.
CONFIDENTIAL.
hay 31st, 1916.
Dear Governor Kleine:
Your favor of the 25th ihet. is just received.
Since i saw you in New York, I have discussed
quite fully with the Pederai Reserve Board, the various terms
of the eieleorandum which I zeowed yo e confidentially, and eub-
sequently have submitted to them a requeet for some action
with respect to operations contenplated by the terms of the
eiemorehdum.
You will, of cour,se, recognize that an account
of that character involve sone responsibility when it seems
Lectionary to purchaee bills abroad. It night be that some
of the Fedelal Reserve banks by reason of an ample demand
for discount from their members, etc., would be disinclined
to continue their participation.
Likewiee, when we bought bills in Nee York for
our fcreign corres ancient, it would be necessary to have all
twelve banks obligated to assume their share of the reeponsibility for the payment of such bills. So I have suggested
to the peard that whatever arrangement is made for the man-.
agoment of the accounts in behalf of the whole system should,
be sufficieetly formal and binding that they ooeld rely upon
the partnership holding together even when it involved some
sacrifice in the interest of the country ao a whole to conduct such operations.
To
A. /tains, Esq.
May 31, 1916.
at loath to make a definite suggestion as to
the character of the relationship or the agreement abroad
as we will be assuming a good deal of responsibility here
and I wotld like to eller° it as much as possible with others
who are fateilisr with business of this character. Would it
not, therefore, be possible for you to prepare an outline of
an arrangement to be entered into by the twelve recerve banks,
or those Who care to Join it, which would protect ell parties
and enable uu when the time came to operate leAeta the assurance
tat we 'could count upon the peemanency of the arrangement?
In view of the eonfidential character of the mem-
orandum which I snowed you, I do not feel at liberty to disclose it to other members of your k;ommittee, but it herdly
seezie necessary to do eo as the principles irvolved are
simple and can be covere(:, by a memcrendum in general terms.
1 am returning the erclosuree sent with your letter and thank you for your cooperetion.
Very truly yours,
Governor.
A. 'tins, esq.,
Governor
Federal Reserve Bank,
Skn nruncizeo, tial.
BS Jr/VC1Ae.5
Eetes Park, Col.,
September 2nd, 1916.
My dear Keine:
l'-have three letters from you unanswerild and haoten
to make my apologies.
The princiapl reason h4ribeen a slight
1
indisposition for a we or so which preVentedjet keeping up
t
with my mail. Your letters have 4j,yk me a gr
deal of
pleasure and I hope my own lapse ill
discourag you about
writing.
Reports of theD-414ston
ting have reached me and I
not
judge that while maiy/i-e:poit dec
ns were made, it did
clear up a good de.of mieund stadding between the banks
about varioqi f
ollection system. I am sorry,
10Lat
/
----ee'
as I krlyvt/you are, that it is developing with a certain lack
A
of unif r,ity, whi h later is bound to cause trouble. I do
ev//' one bank, like Atlanta or Chicago, exhib..
not like ieettreeee-Of
---iting too much enterprise in developing short cuts before the
other banks are ready or willing to undertele sibilar departures. The difficulty you refer to about the *2)ells-Fargo
Nevada national Bank has been experienced in New York where
relations between the big New York
banks
and
Chicago seem to throw things out of balance.
it, the New York banks all
the big banks of
As I understand
have ticmChicago accounts and their
Chicago correspondents object to their sending items through
the reserve banks.
On the other hand, the Chicago banks do not
hesitate
to use the seevices of the reserve system, so the
To
Sept. 2, 1916.
A. Kaine, Esq.
exchanges are naturally thrown out of balanct.
The par list is a formidable document but, of oouree,
for the present oomething of a bluff. It is a good answer to
Mr. Glass, who was threatening all sorts of attacks upon us for
our failure to start the
collection system in real earnest.
If you get your directors to give you a month's vacation and then run over tLe mountains here and rioefnd it with me,
i
!
I will divide the time between fishing and par friAlections and
believe we could work out a scheme of eame
satisfactory.
Up to date, we have -ka4
job.
/I
You and Charlie Moi)q
kin0
hat would be
too ma0\ooks on the
ld be able to work dome-
thing out of your oont,roverte OY the state bank situation in
your district, but ,t7. not N, e e u can afford to recede
from your
gales T
i
position
o long a
end
.1
ou
Drake by
st Company, wrote me about
Y</
1
you knov imi
remain
a Scotchman.
name, of the Los An-
the Jinks.
I
wonder if
ri
TWei have asked me for the last four or fivb
ut unfortunately, business interfered.
years to'h.tte_
In regard to the English arrangement; I was sorry
not to be able to mite you before the Conferende in reply to
yours of the 18th.
we have discussed
Your proposed report covers just the ground
from time to
time and
puts
the Committee on
record as opposed to the development of the foreign exchange
bueiness along lines which will be competitive with our own
membership.
Your suggestion about handling the matter in
'-3-
To
Sept. 2, 1916.
A. Keine, Esq.
The question of compensation to the New York reserve
We really do not make any money in
bank is of no consequence.
handling the investment
account for the
other reserve banks.
Our total commission account of t24,000 looks big on paper but
if the work involved were really charged with the actual cost,
phis overhead, I doubt if it could be shown
that there was any*
dividend of profit in it.
thing but an Irish
f course, we
account just as econor cally as possible, but rates of interest abroad arsa4a.p_4 so much higher
would handle the
foreign
than here that the commission would-mRpear to
possibly, a lower rate would }A
a'
My suggestion of 6.\
N
1 had hoped wculd
maat-411-aK7e
York bank handlin
7i oo
far as compensati
lusti iu from th etart.
to supervise the business
le objections as to the New
pro o tion of the business, and so
large
t
goes,
w,71
--
Gommitthe G
arger and
e-rir
1l agree to anything that that
nference d,termines.
/7 Another_objection to having
an agont in New York is
1
ion of 44ponsibility. Who would decide the policy
the q
,-,/
and reallyatakethe final responsibility? Would it be the
If I were an officer of a reserve
bank in another dietrict, I would much prefer to rely upon the
agent
or the New York bank?
Federal Reserve Sank of New York than any individual agent.
have covered the ground in your report by providing that
You
the
agent shall conduct his operations under the supervision of the
Governor of the iederal deserve sank of New York and the responsibility will rest on that bank notwithstanding that each of the
banks has an agent of its own in New lork, which seems to me to
be anomalous.
To
A. Kains, Esq.
Sept. 2, 1916.
Further, I do not believe that the Federal Reserve
Board desires, or that the Federal reserve banks would agree,
that the actual businese transactions should be subject to the
direction of the Reserve Board. Their power of supervision
extends e long way, but
is clear enough and their authority
when it comes to determining all the questions which arisq in
buying bills, that muet always rest with the mane ement of each
i
bank.
I ,
I have stated
above, my impressiarte_q4
about yoar report and wish you
nese, criticising the
would-yr-lets me
,/
Ih
scheme wk
grankly
qual frank-
aid out S64r? with which
you are now thoroughly familiN
N,
Your letter friiiii-Chk(76
hove that your inf,aeEence had On
ther encouraged me to be
ngly exercised with
Harding and Delano .\le complete)tle English arrangement as prompt/
ly as poe-ei
--]
eand
New York indicate also that these
efforts( ere succeszful.
I do not care what reaction this may
)
friends. We have got to go ahead and op..//
orate an theeeleevr-directs and authorizes and, of course: whenever
have up
our Teutbdic
,
Germany is in position to deal with us, we can make eimiler arrangements there, if they are willin to put the account on a gold
basis. Otherwise, I would not do business with them or with
France or
with any Other country.
Don't let us worry about the commission matter which
you also refer to in your last letter for we want no more than
to get our reasonable expenses back.
..5..
To
A. Keine, Esq.
Sept. 2, 1916.
1 don't mind saying
to you personally
that it would
suit me infinitely better to have the Federal Reserve Bank of
New York go it alone on all foreign business.
cate and difficult account to handle.
It is a deli-
There are only two or
three men in the System who really understand the business and
the idea of handling money belenging to the other banks in
transactione
of that character and incurring th9iresponsibilie
tiee involved, does not appeal to me a bit.
thing is that
44
important
the arrangement as outiindsl g been needed
between the London and New York
banksfept
in principle and when fully in,e
were in Now York
to41k
alon
tely sound
e,
rati
the entire system and add imm
is all detail and can,-l-a
is abtiek
e'
will be or/benefit to
our prestige.
ure
worked out.
ith,
The rest
I wish you
on these things.
It is
sickening to be co-.d
re just at the time when the
finishingeas el
on these important matters.
/Before the next meeting takes place in Washington, why
can't y
figure
4,\
a
spending two or three 'days with me so that
e/
we can go'nwAr 1.he program together before the meeting?
I will
likely be in Denver by that time which will save you at least
two days time if you
are willing to
travel on that old Western
Pacific.
Your letters are like a breeze out of a Bohemian grove
and I hope you will write me whenever you get opportunity.
I hope that you are
planning to attend the Convention
of the American Bankers Aseociation in Kansas City this month.
To
A. Kains.
Sept. 2, 1916.
It is more than likely that some attack will be made On us and
I think our representation should be as strong as possible so
as to prevent any hostile movement which might be made.
Cer.
tainly,"there should nt le A be some one from your bank.
My best regards, old man, and many thanks for not
forgetting me.
Lthfully yours,
A. Kains; Esq.,
Federal Reserve Bank,
San Francisco, Cal,
BS/VCM
Estes Park, Colo.,
September 11th, 1916.
My dear Kains;
to get
Yours of the 6th is just received and 1 am mighty glad
what you describe as "half baked stuff", which really rep-
resents your best opinion I knew about the foreign arrangements.
After reading through your letter a couple of tites,
find there is really no disagreement between us at all. We
both
agree
that an account of the inportance of this one must be
operated as one account and not as twelve, notwithstanding your
remarks about the bank in which you served and in which you car-
ried various accounts with the Bank of Scotland.
The bank to
which you refer, of course, did a regular commercial exchange
business through all their agenices, buying and selling exchange
'om and to their customers in the usual way.
serve banks will have no
customers dealing in foreign exchange.
All of our business will be
done
in the
open market of any leuportance where
can be
purchased when we
when we aee
liquidating
The Federal re-
open market.
exchange in
are accumulating
The only
large volume
balances, end sold
balances, is New York.
ivory one of the
twelve banks could start a foreign department and they would do
their business through New York, just the same as they would under the proposed arrangement.
-2To
A. Kains, Fee/.
Sept. 11, 1916.
You and I must not blink at the facts in this matter
and there are really only two points open to discussion or debate:
one is the question of compensation, which we can both
dismiss because the New York bank dors not want to make this
the means of adding to its net revenue at all. We simply do
not want to divide our own field of operations with the other
eleven banks except upon terms which justify our doing so, and
the principal obligations which we eant to put upon the ther
eleven banks is not to pay us profits, but to assume their
share of the responsibility and furnish their share of the capital required to make the account a success.
The other point is that of management and responsibility. If each of the eleven banks joins in appointing one man as
a manager in New York, it necessarily must be oraanged tat he
will receive his instructions and be subject to the supervision,
not of eleven different institutions, but of some one of the
tevlve institutions. Stating the matter frankly, I think you
will agree with me that no one of the officere of the reserve
banks outeide
of yourself
York bank are capable
and, possibly, one
or two in the New
of conducting this account successfully
and safely, and looking at it as you may, it will result under
any plan in the New
York bank undertaking the management and
giving the necessary directions.
Your letter rather imelies that the
reserve
banks are
going into the foreign exchange business in the same fashion that
the National City Bark or the Guaranty Trust Company does a foreign exchange business.
1
am sure that this will never be the
A. Kains, Esq.
To
Sept. 11, 1916.
This account will be operated, as stated in the last
part of your report, for the purpose of protecting the position
of the country as a whole in the foreign exchanges. To do it
case.
successfully, we must have united action.
We must avoid come
peting in London and we must make vvery dollen' employed in the
account as effective as it can be by all
operating together.
There is one point, however, that puzzles me a good
deal and on which 1 would like to have youreaggestionst
In
case we accumulate a large portfolio of bills in eondon, those
bills must be reported either as individual inventments by each
of the reserve bans according to such
or else
the
allotments as are mode,
entire investment tarried, say by the New York bank,
for the account of all twelve of the banke, the interest of each
being an undivided and unsegregated 'interest in all bills purchased. In the former case, if a lose occured, it would hardly be fair to have it borne by the bank which had a specific
bill that went to protest. In the latter case, losses would
automatically divide themselves. 'Mile I de not apprehend the
possibility of any loss whatever,on the whole, I incline to the
second plan of having individed interests in the account, having
the bills reported to Wanhington en blocque by New York end
reeerve bank resort simply the amount of
capital which they have contributed.
having each Federal
Your influence in Bostin was effective in cryetallizthe opinione of not only the Governors, but members of the
-4To
Sept. 11, 1916.
A. Kains, vet/.
Board and I am very anxious to have youroontinued cooperation
to help put this plan through.
The matter has now been gener-
elly approved by the Reserve Board, but requires consideration
by some of the other authorities in Washington.
If we get that
approval, I am hoping to be able to start business this Fall. How
would that strike your
Our Teutonic friends will not, I believe,
be disposed to resist this plan and we should accumulate our exchanges at present rates rather than wait until costs of
transpole-
tation, insurance, etc., have returned to normal and the gold
point begins to crawt back to
I enjoy your letters very much but would still more enjoy a visit from you here when we could
hrash this out.
By the
time of tne next
Conference in Washington, I will be located in
Denver and there
will
really be no *ouse for your not stopping
off on gour way through.
Another matter where. I would like some advice from you
is in locating a man
who understands foreign exchange, to
this job in New York, in case the plan is arranged.
tackle
Do you know
a man whom you Oen recommend as having all the necessary qualifications!
I am glad you know Jim Drake.
ner.
I have
seen so much of him in
He is .a good old mari-
past years that I did
not
realize that there were any spots on the main brace that were
capable of being spliced,
but if any one ceald
you could. With best regards,
Faithfully yours,
A. Keine, Esq.,
Governor, Federal Reserve
San Francisco, Cal.
http://fraser.stlouisfed.org/ BS/VCV
Federal Reserve Bank of St. Louis
Bank,
find them, I know
Estes PArk, Colo.,
September 15th, 1916.
My dear Kains:
Where did you ever come across that letter of Lord
Macauley's to
.
Randall:
I mm particularly intereoled be-
cause somewhere recently I saw it quoted.
It was either in
a book called "The 3u1t of Incompetence" or more likely, in
Bryoess "American Commonwealth."
At any rata, it looks as
if Lord Wacauley fifty-nine years ago had expressed in very
positive fashion some views about a purely democratic form of
government, which views are just no gradually filtering into
the heads of some of our peoole in the shape of doubts and Oisgivings.
You must be an omnivrous reader.
At least, you and I know what it is, as you express
it, to be in the bonds of serviin/de" under a democratic administration and under a democratic form of government.
',Mat a
mess this country would be in if now and then in a crisis, some
big man did not take it on himself to forget the constitution
and the poor peoAtle which it is designed to protect, and do a
little protecting along lineo of his owns I recommend for
your considoration the above mentioned book by Lord Bryce,
if
it is the best criticism of.our
institutions that I have yet read.
you have not already read it.
-2
To
Cept. 15, 1916.
A. Kains, Esq.
Incidentally, and not bearing at all on the above,
don't you think that 05,000,000 float le a prutiy big chunk
to take out of the reserve of the reerve banks? That is
the gigure reported as of September lot.
1 had another brief epistle from you the other day
which I will acnowledge longhand. The best wish that i can
send you is that you preserve your sense of humor, democracy
or no democracy.
Sincerly yours,
A. Kains, Esq.,
iederR1 Reserve Bank,
San Fr.ncisco, Cal.
BS/VCM
li:ITER OP LORD ]:,ACAULEY TO HON. H. S. RANDALL OP NEV: YORK
London, May 23, 1837
Dear Sir:
You are surprised to learn that I have not a
high opinion of Mr Jefferson, and I am surprised at your
surprise. I an certain that I never wrote a line, and
that I never in parliament, in conversation, or even on
the hustings,- a place where it is the fashion to court
the populace,- uttered a word indicating the opinion that
the supremo authority in a state ought to be intrusted to
the majority of citizens told by the head; in other words,
to the poorest and most ignorant part of society. I have
long been convinced that institutions purely democratic must,
sooner or later, destroy liberty or civilisation, or both.
In Europe where the population is dense, the
effect oi such institutions would be almost instantaneous.
at happened lately in France is an example. In 1848 a
pure democracy was established there. During a Short time
there was a strong reason to expect a general spoliation,
a national bankruptcy, a now partition of the soil, a maximum
of prices, a ruinous load of taxation laid on the rich for
the purpose of supporting the poor in idleness. Such a
s-jstem would, in twenty years, have made France as poor
and as barbarous as the France of the Oarlovingians. Ha-ply
the danger was averted; and now there is a despotism, a
silent tribune, an enslaved press, liberty is gone, but
civilisation has been saved. I have not the smallest
doubt that if we had a purely democratic government here,
the effect would be the same. Either the poor would plunder
the rich, and civilisation would perish, or order and
property would be saved by a strong military government, and
liberty would perish. You may think that your country enjoys
an exemption from these evils. I will frankly wen to you that
I am of a very different opinion. Your fate i eelieve to be
certain, though it is deferred by a physical cause. As long
as you have a boundless extent of fertile and unoccupied land,
our labeling population will be far more at ease than the
laboring population of the old 'erld; and while that is the
case, the Jefferoonian policy may continue to exist without
causing any fatal calamity. Aut the time will come when
hew
; ngland will be as thickly peopled as Old Jilngland.
Wares
will be as low, and will fluctuate as much, with you as with
us.
You will have your Manchesters and Birminghams.
Hundreds
and thousands of artisans will assuredly be sometimes out of
work. Then your institutions will be fairly broue,tt to the
toot. Distress everywhere makes the labourer mutinous and
diseontentod, and inclines him to listen with eagerness to
a itators, who tell him that it is a monstrous iniquity that
one man should have a million while nother cannot get a full
In bad years there is plenty of grumbling here, aria
sometimes a little rioting. But it matters littic,-for here
meal.
the sufferers are not the rulers. The supreme power ic in the
hands of a class, numerous indeed, but select, of an educated
3
class, of a class which is, and knows itself to be, deeply
interested in the security of property and the maintenance
of order. Aceordi3l7ly the malcontents are firmly yet gently
restrained. The had time is got over without robbing the
wealthy to relieve the indigent. The Springs of national
prosperity soon beein to flow aeain; work is plentiful;
wages rise, and all is tranquility and cheerfulness. I have
seen Pingland three or four times pass through such critical
seasons as I have described. Through such seasons the
nited States will have to pass, in the course of the next
century, if not of this. How will you pass through them?
1
heartily wish you a good deliverance. But my reason and my
wishes are at war, and I cannot help foreboding the worst.
It is quite plain that your government will never be able
to restrain a distressed and disnontented majority. For with
you the majority is the governent, and has the rich, who are
always a minority, absolutely at its mercy. The day will come
when, in the State of New York, a multitude of people, none
of whom has had more than half a breakfast, or expects to have
more than half a dinner, will choose the legislature. Is it
possible to doubt what sort of legislature will be chosen?
On one side is a statesman pre ching patience, respect for
vested rights, strict observance of public faith. On the ,
other is a demogague ranting about the tyranny of capitalists
and usurers, and asking why anybody should be permitted to
drink champano and to ride in a carriage while thousands of
4
honest people are in want of necessaries? Whic'e. of the
two candidates is likely to be preferred by a workin- man who
hears his children cry for bread- I seriously apprehend
that you will, in some such season of adversity as I have
described, do things which will prevent prosperity from
returning; that you will act like people in a year of
scarcity, devour all the seed COTT), and thus make the next
year, a yen r not ofseareity, but of absolute failure.
There will be, I fear, spoliation. The spoliation will
increase distress. The distress will produce fresh
spoliation. There is nothie- to stay you. Your Constitution
As I said before, when society
is all sail and no anchor.
has entered on this downward progress either civilisation
or liberty 'mot perish. Either some Caesar o: ITapoloon will
seize the reins of government with a stronf7, hand, or your
Republic will be as fearfully plundered and laid waste by
barbarians in the twentieth century as the Roman Impiro was
in the fifth; with this difference, that the Huns and Vandals
who ravaged the Roman '-r,mpire came from without, and that your
-Tuns and Vandals will have been engendered within your country
by your own institutions. Thinking this, of course, I cannot
reckon Jefferson among the benefactors of mankind.
Estes Park, C010.,
September 21st, 1916.
Dear Keine:
I thoroughly understand the feeling which is inppired
by the Federal Reserve Bark of New York in declining to make
settlement through the Gold Eettlement Fund when thuir ba1ance6
due to the other reserve, banks run ,o heavy. Jul they res3ly
do not scorn to understand the situation that arises in 1:ew York
due, if you please, to the prrmtice of trtking New York exchange
in such large volume for imrediete credit whon.Nsw fork exchange
is at a slight divcount.
So long as we im,*0 about :1,600,330000 in circulation
:t2 cannot be immediately converted into gold (except one is
willing to give grave offence to the Secretary of the Treasury),
the YeOeral Asserve 8ank of New York *ill experience difficolty
at times in avoidine; an undue acoumulaA.on of Silver certifioAtes
and United states notes. As an illustration: ?or a period
commencing with too oettlemont of Augut 9th down to
and includ-
ing September 14th, the balances due to other reeve hanks have
aggregated $72,384,756, in detail as follows:
t709,730
August Oth....
"
"
"
Sept.
16th......
23,d
30th
6th
12th
Total
11,450,017
3,840,474
6,050,485
30,191,172
26 442
4.672,384,756
To
A. Kains, Esq.
Sept. 21, 1916.
Confidentially, the only way by which we have been
able to
get
rid of all the silver certificates and U. S. notes
paid into us at the Clearing Houee in settlement of these bel.ancee tali by making private arrangements through J. P. Morgan
& Company, through
which we get the gold imported from Europe.
The rederal Leeerve Bank of
ew York huu new veld ebout
*200,000,000 to other eederal reaerve bunks in eettlement of
these exchenge balqnces, for the greater part of which we have
received silver and legal tenders at the Clearing houue, and if
it had not been for the huge importationu of gold fnmm Europe
which enabled us to effee- theoe swaps, the Federal Ze3serve Bank
of New York might to-day
neve been completely denuded of gold
in its general reserve.
This is no theory
which we
facing, but a real con-
dition and one whicn illustrates the weaknees of the system,
under weicn tee iederal Reverve Bank of Ner York is forced to re-
ceive payments frees its debtors in ei)ver cortif:cretes and C. S.
notes ana is forced to make payment to its debtors (the Federil
reserve banks), always in golds
You may -minder why it is that New York exchange
lways
runs against us and that we are constantly shipping through the
Gold Fettlement Fund to other centers. One reason is that the
other root/rye banks eeke Hew York exchange for imweeiete credit,
thereby creet±ng a corsiuerabLe float, end we a: e not willing to
add our oortribution to this doetructive policy be taking exchange
A
t
To
A. Kains, Esq.
Sept. 21, 1916.
on other Federal reserve cities for immediate credit. The
float three weeks ago was 05,000,000; week before last was
tze,000,000 end this last week, t29,000,000.
Another reason why exchange is running against New
York since the collection system was inaugurated . and it might
be expected to give us enough offset to wipe out these balancesis the attitude of the interior banks to their New York corres-
The big banks in other Federal reserve districte do
not hesitate to duoip their New York items on to the Federl reserve banks of thoee districts, but they seriously object to
their New iork correspondents doing the same thing. Coneequently, the big New York banks that have all of these reserve accounts
pondents.
from interior institutions, in order to retain their connections,
are still sending their items direct and we do not get the offset
to the items that the interior banks collect throueh their reserve
banks.
14r. Calkins is doubtleee correct in rayirg that this
difficulty will in a measure be corrected if the Federal Reeerve
hank of Lew York places its facilities without limit at the dieposal of, not only the reuerve banks, but all the member banks
of the country, in making telegraphic transfers for nothing. We
could do all'the business in the world on that basis, but I think
we have reached a point where we ought to connider theee operations
in the handling, not of a fee. millions of dollars, but hundreds of
millions of dollars, in fact, 1 think the toteln are now into the
To
A. Kleine, Eq.
Sept. 21, 1916.
thoueands of millions of dollars, justify some charge or some
compensation, at any rate, sufficient to pay for clerk hire.
As Mr. COAkins says in his let'er, New York is the
hub and when the axle stops, it is inevitable that there should
be some jolt in the machinery. I like his oimile. I do not
know any wheel that will revolve on its hub without some grease
and, furthermore, if it is not greased it will wear out.
he
best way to handle this matter is retire the greenbacks and to
have all silver certificates issued in the form of ono or two
dollar bills. Then they won't bother us. If the reverend
fathers at Washington won't do that, then we might as well quit
the Gold Eettlement e'und, and whenever we accumulate too much
chicken feed in new York, we will ship it to you at your wwn
expense.
If that cannot be done without a howl, then maybe
Congrese will amend the 14w and permit the issue of U. S. notes
and silver certificates in 10,000 or :If:R?,000 pieces to order,
so that you fellows who build up balarees on us could be paid
in kind and by the stems proccre we now employ in the Settlement
Fund.
What we will net do in New York is what has been frequently suggeeted,amd always diecouraged, to cover the matter, by
teking exchange on the other reserve cities without limit, Without time allowance, without exchange, and so debauch the whole
system.
Won't you eel(
vother Calkins to think of eomo remedy
for this puzzle which the holy fathers in Washington will consider
and see if we cannot get it fixed up?
5To
A. KainP, Esq.
Sept. 21, 1910.
7. () you recall Treman's statement at the Boston meeting
that between July 1915 and August 1916, credit balances of the
New York Federal Reserve Bank at the New 'York Clearing House had
aggregated t292,000,000, and the dehit balances, 20,000,000?
at would you do in a case like this?
Also, please tell Calkins that I am not laud but will
be 41hty interested in any suggestion he :;an send.
Faithfully yours,
A. Kaine, Esq.,
Gover.nor, Federal Reeerve Dank,
San Francieco, Cal.
FIVVCM
Estes Park, Colo.,
Septembr 21st, 1916.
My dear Kains
Yours of the 16th, enclosing Calkin's letter is just
received.
About that epieole in English history, the application
is all right in this particular case, if there hae beer ti.ny slip
in manners or methods, but I had a feeling that on the whole:
whatever wooing has been done originated in New York and was
rather more expensive to the wooer than the other way around.
ignoring ,Any unfortunate s14p that may have occurred
as to the method by which this matter had been approached (which
you and 1 can both do), I still think that your conclusions about
this businese are bused upon some misconcetion of what our program contemplates.
You refer to profits of 1/64, which for a long time
represented approximately the shave on exchange at New )ork- (just
now it is eomewhat higher), as though the commission to be imposed
by the Pew York bank would have to be paid out of this trifling
exchange profit and that the business would not be a littie unlike
Abraham Lincoln's steamboat, with such a big whistle that the
wheels stopped every time they blew at a landing; in other wordsi
it would be all commission and no division. That certainly is
not the case.
.
«2To
A }tains,
aq.
Sept. 21, 1916.
If the Federal reserve banks, either in New York or any
where else go into the open mnrket to buy long bills, such as
you refer to and undoubtedly have in mind as the basis of this
business, we will incur the everlasting animosity of all our member banks which are in the foreign exchange bueiness, and if we
are successful in making the busineee profitable, we will drive
them out of business. Their money at a minimum will cost them
2 % less than ours does and how can they ever compete with us in
buying such long bills PE copper and grain, meat and gotten
bills, etc.
The Federel Reserve Act and the recent amendments
to it were deeigned tc encourage national banks to extend tfteir
field of operation into foreign countries. How can they possibly
k
do it if the Federal reserve banks are eating into the profits of
their foreign departments by throwing countless millions of their
funds into competition in buying long bills that are really the
basis of their present foreign departments!
What I had proposed or the New York Bank was simply to
accumulate eterling by the purchase of demand exchange and cable
transfers, buying gradually whenever the market was weak, and blow
the present gold :mport point, say, $4.76, and as sterling was accumulated, invest it in London through the Bank of Ingland in long
sterling bills, selecting by preference those of American origin
and endorsement, rather than those which are purely elglishi not
necesserily confining ourselves to American bills drawn on English
ecceptors.
To
Sept. 21, 1916.
A. Keine, Esq.
Urder prevent condetions, the investment of this money
in London would realise an averaee of 54
to 51,4- % discounted.
The commission to be charged ley the Federal Reserve Benk of New
York, I had proposed to be at the same rate ae that which applied
to bills which we purchase in New York on which 2* % discounted is
erned: Unier the arrangement as to commissions, our charges
would not increeee with the higher rte of discount on English
belle ee against American, so ae a matter of fact, the reserve
harks would be having these eereicee performed for them for the
sere nompergation, althoueh they enrned from the money employed
twice as much:
Aiken wrote me free Boston, indicating that he had it
in mind the we would be shaving sixty-fourths on this business
and 1 suppose he got it from you, becOUse Aiken has had no experience whatever in thet business.
If it ia this proposed eommiesion that worries the
Scotchmen of 5Rn e' *Incise° and Chicago and the thrifty New Eng-
lender of '3orton, rhy lot me remind you that the question of fixing this commissiet Yee always been left to a committee of Governore an has ee:t L64A; fieed by the New York Federal Recerve Bank
anyway:
So much for your letter in which I can see evidence of
ocme slight change of heart. The beet pert of your letter, how-
ever, is the postscript.
joy to seeing me soon.
You Bey you are 1ooking forward with
Does that meun by ponsible chance you
To
A. Keine, Esq.
Sept. 21, 1916.
may be able to get out here on your/ to the next Gonfere.nQs?
I will be in Denver by that time and we can 119.1te some grand
visits if you will carry out your plan.
top Or your wpy
through, if possible, and we can go over the program together
and do not be skimping on your time.
I am ttking the liberty of writing you separately
about the Geld Settlement maAter referred to in Galkin's letter
to New York.
Ny'bent reEardn to you, old man, and many thanks for
your letter.
Faithfully yours,
A. Kains, Esq.,
Governor, fecieral Reserve Bank,
San Francisco, Cal.
BSPCM
.
4100 Montview Boulevard.
Denver, Colorado,
October 20th, 1916.
Dear Kains:
By tl:e time this letter roaches San It ancisco, I may
ever and I have
h.ve had the pleasure of seeing you a
not written you since the party left believingat
stop over on your way back.
I y.0
you at 4100 :ontview Bouleva d.
short and unfortunately interru
oiher vlditors, gave
Yo
a\
dea
d
ou might
warm welcome 'waits
isit, although much too
y the arrival of those
pleasure ond I am keen
to have it reaeated.( (
I havej useen rea' g over your letters of Septom
\\
Jalatter'tat te..1 graphic transfers seems to be the
ber 25th.
subject of
root cor anondence between Calkins and Hendricks
so I won't $ 'utt in". They will doubtless work it out to your
satisfaction.
About the foreign buciness, however, I though: you would
be interested in the enclosed copy of a letter from Mr. Forgan.
There seems little proeoect of doing anything just now as the authorities at Waehington still ref rain from taking any action on
our appliceticn. Mlat would your idea be of the amount of Money
that we could safely employ in London under the arrangement-'with
which you are familiar?
How much, for instance, would San Fran-
cisco care to invest in that way.
ment on this.
I would be glad of your judge-
-2
To
A. Kin,
Oot. 20, 1916.
sq.
Please give my regards to Ur. Calkins and Vr. Perrin.
You fellows on the Pacific Coast have such a keen gorse of humor
that it mrly be although I douht it, that some cf your friends
in the East tLink it eafe to t,Ace liberties with you.
Did you notice that the President has ccre to the conclusion Vial, the naughty bankers of Now York re trying to get
control of the Federal heeerve Syster !
real evidence.
-aith best regards,
Sincerely
A. Kains, Eeq.,
Covernor, Yederal R 8 ve lank,
San Francisco, Cal.
BS/VCM
/I
i h v not yet seen any
Denver, Colorado,
October 30th 1916.
Dear Kains:
Thank you for your letter of the 26h\.
too accurate
But why this SUmblepees bout the an
N 'NN
Your comment on Pr. Forgan's letter
to justify my replying.
Francisco "Branch",
RE
you call it: 44at to /Alan
City, it is as independent as an/
ank on the list.
, the question of quan-
am glad to get yo
tity.
I had in mind about t25,OOO
total myself.
a shock in what you say
You have giv
about your own health.
and Kansas
Won't y
end me further
particulars?
nary is in need of repairs,
Denver would Orlenditplaet to spend the Winter.
not at
surprised at your turning down the
What is the matter?
our ma
oodness sake, why put it on the ground
,agine your health anything hut above par.
of health?
There is a plan on foot to have all:ether Governors ConVanderlip of
but fo
If they have one, please cut out enough time
to make me a Visit both ways.
1 enclose a little picture of one of the Governors, sent
by Aiken, which it seems to me is good enough to pass along to our
Scandinavian friend at Minneapolis with instructions to add his initials and pass it on to the next one.
ference next month.
-2To
A. Kaine, Esq.
Oct. 30, 1916.
I await with anxiety some definite information about
your health.
Faithfully yours,
A. Kains, Esq.,
overnor, Federal Reserve Bank,
San Francisco, Cal.
BSPCM
November 6th, 1916.
Dear letins:
While
I
was delighted to get your letter of the 1st,
I am a good deal distressed by the suggestion
h t the doctors
1
have you in their clutches.
I am making such
o.
progress
myself that I am not able to extend tofoue_sy pathy that
. .
arises from sharing he misery about e1th. Be8N1:4that,
7----\,
your trouble seems to be mental 4,1 well s physical and doubly
hard to beer.
I
I/
am glad to s /o, hows s
that they have not
cut you off from business activiti
/--
Treman writes/17"n
made to persuade the
tion business free of
8 erve bank
sus e s some effort may be
tc) conduct
the check collec-
charge
,/ t the member banks.
1
rre-
spective of a,pjAm4stion4f-essiomy involved, I think this would
be a disast o
s move, eatablishing precedents which will for-
ever arise tother u
and costing us so much of the advantage
we have airead
Take my advice, follow the doctors orders and take
good care of yourself. Otherwise, you may he paying the penalty
that I am.
With warmest regards,
Faithfully
A. Kains, Esq.,
Governor, Federal Reserve Bank,
San Francisco, Cal.
BS/VCM
yours,
November 7th, 1916.
Dear Keine:
Yours of the 2nd arrived just after I wrote you yesterday and contains some little encouragement a o t your health, but
not as much as I had hoped.
When a man has
tobacco, tea, coffee, golf and most
minded of what you said in rep
t*red London.
remark was that you would not ca
Oa
drink of whiskey now( ad then,
abo4
ea.
I am r'-
(wiry as to what would
haopen to our gold if the C
don't care a rap
things worth
ortly willb.
having, he is.either in a bad way
be dead or want to be
ollille_Qatke
forego alcohol,
I think your
as you would probably
okea,bit, manage to sneak a
a e coffee with my breakfast and
II
't play golf but that is no
a,a
.
JuitaIaki care of yourself and you will be
-----/
gree depriv Van:
all right
,..\
i e Governor
If you can h\\Itt
sn -eh_
onference is called for December 11th.
ay or two to spend with me here, I shall
be more than delighted.
Your information about taller is correct.
lie has been
taken into the fold of the Roman Catholic Church and from what
we know of his character and habits I should say he would make
a very good Catholic.
I omitted yesterday to answer your inquiry about the
government bonds.
Personally, I would like to see a very large
amount of the 2s withdrawn and converted and the long 3s sold.
2
To
Nov. 7, 1916.
Mr. Kains.
To do it
comprehensively and at the same time to gvoid getting
tied up with too many one year notes, we should first have an
arrangement with LicAdoo by which a larger percentage of the
bonds could be converted into long 3s.
Why don't you suggest
the subject
Personally, 1 would n t mind seeing all
this for the program and give them a good lecture on
at the next meeting!
the national bank
notes
passible.
retired just as
promp\as
We have
too much currency in the countfi-n
Best regards to you,
about your health and be sure
old
Don't b
an
know the final
of the doctors.
Faithfully
A. Kains, Esq.,
Governor, Fed,ra4 Res40:!=ilerAi
San Francizga
BOCM
/
couraged
verdict
November 14th, 1915.
Dear Kaina:
Again I seem to be guilty of us g loose language
in my corres:eondence with you.
It was
my purpose to
suggest that you were afflicted
in the head but
that certain mentAconflicts had arisen on ac
t of deou found to be disturbnials in certain direction
.ing to Your mental aqui
you coup here and
make me a visit, I will
such comforts as are
possible in this d
hear that you have
It re,
is a sho to u
some trouble
h your heart. Lungs can be dealt with a man's heart owever, is an stable affair and I presume neyAbmgtat
treatmen
ther more irksome than even
ove all things, take good care of
I have wr
uation, wi
len Treman urging teat he submit a set
Governors in regard to our currency sita view to having them fully discussed and some
recommendations made at the next meeting.
If you find it
possible to attend and can save out a few days to spend
with me here on the way, I would like to go all over the
questions with you and see if we can't agree on what kind
of a program should be adopted.
To
wrr. Kains.
Nov.
1916.
California seems to have dumped Hughes into the ditch.
1 cannot feel as badly about it as I would have had the Republican candidate been a different man. What you say about the
vote of the hyphenates probably applies t
e whole country.
e and I have been
have been having zero weather
freezing my nose nights sleeping out doors.
Best regards and good wi
Faithfully
A. Kains, Esq.,
Governor, Federal Reser
San irancisco4 Cal
Bank
BSPCM
10th.
ince dictating
Take a go
crack at tho
at the WaP.
e above, I have yours of the
fellows on currency matters
n m eV
B. S.
November 20th, 1916.
My letter about the California ou
of the 15th.
ome crossed yours
S unnec
Further comment see
ary.
I have passed your last con ributio
to Wold.
You and he
divide
mor of the 3
e
equitably and I am glad t
can accumulate and perma-
Syst
f gold either behind the note
nently hold a vary large amo
permitting the deposit
issue or as a re
f member bnk
of all reerve
o ever, that
any emergenc
wou
probably resu
"cold
the
the
character of the note
Has
th(, Act.
extent that we do
manage to
which mig,ht arise under conditions which
t in
-'ongress passing almost any amendment
The gold under present
e ask them
If we
can hang on
off than if we hajd not collected it.
to it,
conditions is in
however, we
ing upon the efforts of our
through the amendment.
are better
I am in favor of doing
what we can to hang on to what we have and increasing
it oc-
prepared in advance with gold to
d hold 14
use
whic
until
t to
issue has been
colle
rather
between you.
I don't believ
curred to you,
mirth along
friends in Wahington in
it,
time
rely-
to get
..,e1 me know about the 71ashiht;ton conference.
I am
-2-
To
Mr.
ains.
Nov. 20, 1916.
7e seem to be losing gold
to Japan, to Argentine, to
Cuba and occasionally a little to Canada.
ments I
All
of thc,se move-
the case, England is eying for
out of credits raised in New Yor
Nothing can be done to stop these hipments
as is quite possibly
products
you
effort should be
heard that Japan has put a prohibi
not believe the
mar I have
on shipments of gold from J
ners going to Japan under
ment being only one way.
and we are
going
to disc
that
it
With
A.
Gove
San
ns, Esq.,
or, Fed ral R
cisco, Ca
his country?
age, it
llows are
erve Bank,
Cawldian
and I do
confirm a
freight
ru-
rate
Yith no ii-
insures
too smart
the movefor us
me day.
n conference.
Let me
hoping
Unless,
think are normal except possibly, to Canada,
I am
June 26th, 1916.
Dear Mr. Kains:
This letter will introduce to you my
older son Benjamin Ftrong, 3rd, whom t have asked
to call and see you on his way through an Fran-
cisco froq a vacation trip spent in California.
near Fanta Barbara.
Very tray your,
Archibald Kains, :sq.,
Federal RErerve Bank,
San Francsico, Cal.
VCL
December 9th, 1916.
:hank you for yours of the 5th and f
about that letter to Piller.
what you say
crack
He is a
the b(st evidence of that is probably the fact tha
humor at all in my letter.
Nor
and
saw no
did it get u der his
skin a bit;
Your state of discon
I know all about it and,
ses my deepest sympathy.
tive
It is too
important
hington.
with the
meeting a
foreign connections
question of our
you cannot do so.
ease don't answ
I know
are not up to
sun imbi
g health.
est re
his and other letters from me for
uch work and should be siting in the
and a speedy recovery.
Faithfully yours,
A. Kains, Esq.,
Governor, Federal Reserve Rank,
San Francisco, Cal.
This is an
competent to discuss then
any of them,
13S/VCN
eaking, I hold your hand.
W '16 S I ,k ssW71
UNION
Form 2280
WESTERN UNION
3Hva......7,7A
RECEIVER'S No.
TTER
BELVIDERE BROOKS. VICE-PRESIDENT
NEWCOMB CARLTON, PRESIDENT
GEOr E W. E. ATKINS. VICE-PRESIDENT
I
CHECK
TIME FILED
SEND the following Night Letter, subject to the terms
on back hereof, which are hereby agreed to
December 11th, 1916.
Miss Sarah E. MacDonald,
Care Federal Reserve Bank,
San Francisco; Cal.
Am distressed to learn of Mr.
Kains
illness. Stop.
"T.indly express my sympathy to Mrs. Eains and
Kains if he is able to receive messages.
give my loveto
Stop.
to his condition.
preciate your keeping me posted
Benj. Strong.
Charge Paid,
Benj. Strong,
4100 Montview Boulevard.
Will you
Will
ap-
December lath, 1916.
Dear Liss :11cDonald:
am very grateful indeed to you
of the 9th
and your
telegram
received
for
esterda
our letter
iving such
good news of Lr. Xains' progress.
With this, I am enclos
eck for $15 an
you will not mind executing
ssion for me.
would like to send >4*. &sins
that he would
joy and leave
it to your discretio
taste just what to g
them.
With many
lass Sa
Care Fe
San
BS/VCM
E. LiacDonald
al Reserve B
sco, Cal.
hope
en-
id knolwedge of his
a curd to go with
41.k
Denver, Colo.,
December 18, 1916.
=3
Miss S. E. McDonald,
New York City, N.Y.
Dear Miss
McDonald:
I am most grateful to you for keeping me in armed of Mx.
&tins'
ndition and deenly regret that his illnes
oems to be so
ous. Someone must have referred to
Washington
as a latter from T;here recently spoke o
being
rather serious, but no one knows apparently the charco
of the
trouble.
Wont you give Mx. .ains m
him that I am very greatly die
1.
regards and tell
of his illness.
Denver, Colorado,
February 26, 1917.
Dear Kains:
The enclesed offers opportunity for a pun when sent to a pillar
of the Church, like your good self.
I hope you are getting along all
right and axidelighted to know that yo
going
.m
so this letter
is being addressed to the bank with
tructions to f
is now back home on the job and my
y visit with h Jis a thing of
rd.
Curtis
the past.
The situation with Ge-w,.4y is to
Frankly,
out in thiis par
satisfactory.
f the world the
great amount of interest
is MD enthusiasm and no
sition.
have war with Ge
If we really
rve System something to do
and, of course, I
U. be 'A.rburg's attitude and
position.
Our amendments
fear at this session of Congress.
endriCks has s
a hornet's nest back home by concluding ar-
with the Express Companies and sundry Notaries Public to collect checks
When we must
non-member banks.
ut the screws on
way to do it
in
I guess the time has come
our district and I know of no other
opt through the postmasters, which would be the height
of folly.
I am glad to be able to balance a good report of your progress
with an equally good one of my own.
My best as always.
A. Kains, Esq.,
Fedar-Reserve Bank,
San Francisco, Calif.
Faithfully yours,
<4
Denver, Colorado,
March 22, 1917.
Dear liains
21ease don't forget my initunction to the
to answer
ect that you are not
my letters unless for recreation you fi
To. have such good word of your progress in your ov
makes me rejoice and you
stage of abasement
uner.
you will be back at the bank and
t I
In order to have a conference with
ey h e got quite a bank and, per-
I have no
as much more the center of things
than little old New
fine fellows and it did me good to
ing smile
s When ho witnessed the outward and
visible = feet of a year'
rest and 24 pounds
him and among 1.1,1
r matters we
Washingtm
Today
him with
rLie
-
have made a trip to Chicago
chtthmen of that town: I must
say they looked well
tions of
discouraged -
Aiken and, of course, took the
opportunity to look in
visit v
But don
idio before you know it.
In the way of news, si
see net
nd writing really
are now going
which occupied so much of my time la
sonally,
it some diversion.
=
.,ethren
in weight. I had a bully
discussed
the trials and tribula-
ad nausiam.
to meet Fred Delano on the 12:20 train and keep
for two days.
Incidentally, 1 have purchased an outfit of
golf clubs, joined the Country Club here and propose shortly to be back
on the turf.
.
The doctor has just left the house after a social call and
informs me that he saes no reason thy June should not see me back in
saddle, but he
me subdued.
the
admits that he finds his job a hard one just now to keep
C;)
2.
To - Mr.
March 22, 1917.
áins
In conformity with my custom, I give the following report on
11.7 low point was 129 lbs.; last night
weight;
I
sighed 154-1/2.
As
this weight has been put on in a climate there pe
e of middle age
don't acquire weight readily and, furthermore, wit
ut any stopping, I
shudder to think that will happen to me
k to sea level.
Best regards to you, old man, and continued impr.'
Fait
A. 4,aln.s,
Federal Reserve Bank
San Francisco, Calif
BS/CC
'ent.
Denver, Colorado,
itlarch 29, 1917.
Dear Keine:
I a. delighted to learn by yours of the 26th that you are able
to take Homeopathic doses of office work again; don't overdo it.
You and
I are living eyamples of the strenuous life, but there is nothing to brag
about in being alive if nothing goes with it.
really wonderful and I am
Not to make you
delighted and
But your recovery has been
relieved.
feel badly but really
to encourage you, 1 played
golf all the morning with the professional out here.
It is really three
years since I played and I was amazed to find that with a little assistance
from
him, I could whack them out 250
yards almost every crack.
After a
few more practice days, which I propose to indulge in almost every day, I
am hoping to go around the course and will send you my card, - again
not
to make you feel badly but to cheer you up.
I have just had a visit from Delano, after having made a short ran
to Chicago, Maere I met LeDougal, Aiken and Broderick, as well as the underlings in the bank.
It seems to be my mission in this job of ours to preach
just the sort of stuff that you preached to me.
intelligent
audience and if he had his way, our work weld be immensely
easier and the development would be
A little later, as soon as
going to
along
bigger lines 1 believe.
the weather settles down your way, I am
treat myself to a Short visit with you, but the doctor is still a
bit cautious about my
getting out
sudden changes near the ocean.,
Delano is a sympathetid and
of this climate and
subjecting myself to
he is rather optimistic of the possibility
2.
To - Mr.
:Ans.
L1arch 29, 1917.
of my going home in June.
With lots of good :Ashes,
Faithfully yours,
A. xely44,
FedoTal Res:II-v(3 Bank,
San Francisco, Calif.
BS/CC
Denver, Colorado,
April 6, 1917.
Dear 2:aim
Just a line to shake hands with you over our alliances. I feel
nretty happy about matters and only wish I were able to put in some licks
alongside our good friends abroad.
If nossib/e, I will have a look at those flowers with you before
going east and, any way, I deeply appreciate the sentiment Which led you
to establish "Benjamin's bed".
lily affectionate regards,
Faithfully yours,
A.
ains, 'sq.,
Federal Reserve Bank,
San Francisco, Calif.
BS ICC
Denver, Colorado,
hay 22, 1917.
My dear Kains:
It was cheering to get your letters, forwarded to me here from
New York, and the evidence in your firm and scholarly hand-writing that
you were your vigorous self
once more.
I took a flyer to New York for a couple of weeks, to help along
on our Liberty Loan organization,
eaTe back here for another two weeks'
golf, which has been largely defeated
by bad weather, and next Monday
I am off again to New York for a fairly indefinite period.
disanoointed in not being able to visit you, but let us
postponed because of the war; what
better cause
I am much
consider it only
of postponement could
there be?
The
Awe
oorresnondeace explains itself.
We wanted to keep
posted on what was doing in other districts and to exchange
etc.
Faithfully yours,
A. 4Q1Ap, Esq.,
Federal lieserve Bank,
San Francisco, Cal.
BS/CC
information,
June 19th, 1917.
My dear rains:
Thank you for your favor of the 6th enclosing the two replies to your letler which you
sent out in connection with the Liberty Loan. They
afforded considerable amusement to Curtis 1:nd myself.
Faithfully yours,
Archibald Xaine, neg.,
Federal Reserve sank,
San Francisco, Cal.
June 28th, 1917.
dear rains:
Thank you for your favor of the 23rd regarding Mr. Pierce. I stp:11 be very glad to meet
him while he is in New 7ork and give hin whatever
information I can.
Zaithfully yours,
A. Kains, Esq.,
Care Federal Leserve nank,
an '1'-r,ricieco, 7al.
VC!:
August 7th, 1917.
Dear Miss MacDonald:
Many thanks for your letter regarding the Canadian
recruiting posters, reply to which vas delayed by my absence
during a vacation.
As you probably know, Mr.Strong
went back to Denver
for another month and has just returned to the city, so Mr. Kains
has not been
in evidence around the bank.
flow that Mr. Strong
is back, we will probably have the pleasure of seeing him
here
occasionally, and at the first opportunity I will take up
with
him the matter of the posters.
I can just imagine how you feel about Mr. Kains
leaving
San Francisco and know there are a great many people who appreciate
San Francisco's loss and new York's gain.
Cordially yours,
Secretary to Mr. Strang.
Miss S. B.
MacDonald,
Care Federal Reserve Bank,
San Francisco, Cal.
V CY
_5-Frr-11
January 3rd, 1915.
My dear Kains:
While absent from
York 1 was still able to
write letters to both the Metropolitan and the Down Town
Association and trust that they may improve your pros-
pects for admission in both cases and not blast your hopes.
r,f.embership in tha netropolitan :nub does not
take so long but I think it is a sevsn year school
with the Down Town Association and your .nro oser and seconder
onould put this matter on their ticklers, as otherwise your
name night come up for action and not be properly pushed.
With beet personal regards,
Faithfully yours,
AmericAv Foreign Barlsing
56 Tall Straet, New '!erk City.
Palm Beach, Fla.,
February 9, 1925.
Dear
Not all things move as rapidly in New York
as they are sometiHes said to.
A notice has just been forwarded to me hero
from the Down Torn Association saying that November 1915
proposals for membership are now being considered, and
asking whether you still desire to be considered when
your name is rerchcd.
My best guess is that you ko longer have
a very active interest in becoming a member, - but of
course you might be back in the course of the next
decade, and it seems to take about that long:
However, I have today written to the Trustees that I 1111
send definite word as soon as I hear from you. Hou
do you feel about it?
The best of good wishes to you,
Sincerely yours,
Mt. Archibald C. Kains,
Federal International Banking Corporation,
New Orleans, La.
L1E3
Febru?-iy 13, 1025.
Dear italas:
I was just in receipt of your lavor of th 13h inc,tanu,
-iizuin, first conzratulate y.0 upon iinally beidi; able Lc retire.
1 of
ai,J2:,
,uod fortuae.
I edjoyed t
ke you
i1i not rcEL.in
candidate for r_penTherellip in the
Don ToAd Aseoci,..tion, 1 shall do ',,he 1.10ddfu1 6here.
In the mee.ati:, I hope that t
ye,rs or yo,.ir retirement
All be happy in evary 44. I know they will be, for you lvi.vo
capacity to e.;et e, lot out of life which is denied to many who have
attached themselves too closely to bueinese cnd t1
Ay beet rv,arde to you
Si ucerely 1013ra,
40:r1,11
Archibald Kai tie, Esq.,
Federal International
New Orleans,
ES.1,8
nking Co.,
king
money.
LLIT.T. STRONG, Jr.
RECEIVED
PERSONAL.
1915 2
FEDERAL RESERVE BANK
OF SAN FRANCISCO
PM
FEDE2ALL ".RVEBA-K
OF NEW '10R_K
A KA I NS, GOVERNOR
4th February 1915
14F-4,
iy dear Governor Strong,
Your letter of the 30th ultimo is received,
together with a set of circular letters and forms issued
by the Gold Committee, containing harrowing details, with
4.6.....aakifereli.diftgAWKINIVOraati*VAirale,
the net result that as far as District No.12 is concerned
there will be none of these cashiers' cheques deposited
in San Francisco.
Perhaps ten br a dozen of our banks are
the only ones that have taken advantage of your goodness
in cashing their cheques on us at par.
The indications
are that we will soon be able to reduce largely, if not
entirely wipe out, our debit balance with you.
Yours faithfully
Benjamin Strong Jr Esq're
Governor, Federal Reserve Bank
New York City.
FEDERAL RESERVE BANK
OF SAN FRANCISCO
AKAINsGovE
11th January 1916
4NC
My dear Governor Strong:
Your letter of 3rd instant came duly to
hand, and I take due note of the particulars of the audit
of the Gold Settlement Fund.
With regard to the comment of Mr Gamon
I am in hearty agreement, and I observe that the authori-
ties in Washington evidently recognize the force of what
he has to say, because they have enclosed cioher words
to authenticate telegraphic orders from this Bank operating
on the Gold Settlement Fund.
I understand also that the
Federal Reserve Agent here has received another list of
cipher words, probably covering similar funds at his credit.
Yours faithfull
Governor
Benjamin Strong Jr Esq're
Governor, Federal Reserve Bank
New York City
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My Dear Strong
This is simply a line to wish you Ood speed and to thank you very much
for permitting me to share in that joyous feast at H. street Washington the other
evening.
When you see Gamble in London get him if you have not otherwise arranged
it to introduce you to the Bank of Scotland people as well as the Chartered Bk.
He will be delighted to be of any use.
I arrived here an hour ago, and while awaiting my train to the wild west
have been discussing matters generally with that solemn representative of North
Britain McDougal.
With pll salutary wishes for yr self,
Yrs faithfully
Archie Kains
B. Strong Esq.
N.Y.
Kmad7,67//z
AZd
26th
January 1916
7.1y
Referring to our conversation'this afternoon,
in my opinion a visitor to London seeking information on
banking and exchange should not fail to call on the follow-
/
ing gentlemen who are the leaders in their profession in the
City
Lord Cunliffe, Goveryier, Bank of England
Sir Edward Holden 132.rt. London City & Midland Bank Limited
Sir Felix SchusteV, Union of London & Smith's Bank Limited
Henry Bell, Lloydt Bank Limited
H. H. Hambling, London & South Western Bank Limited
Lord Milner, IOndon Jo5rt Stock Bank Limited
R. M. Kindersey of Lazard Bros & Company
Christopher ugent of Union Discount Company
H. Wade of National Discount Company Limited
R. C. Wyse of Guaranty Trust Company
C. Gamble, and
A. R. Phi,pps of The Canadian Bank of Commerce
One coutd go on adding to a list of this sort almost ad
1
infinitum as various phases of the subject present themselves to
one's
mina,
but the above should suffice to answer any enquiries
along the lines of our discussion.
If information is desired on
South American, Indian and Far Eastern subjects other names occur.
If I can be of any service to your friend by way of intro-*
C5
A. Kains, Esq.
2.
duction to any of the gentlemen mentioned above, please
command my services.
Hoping to see you again in a few weeks' time, I am
Yours very truly
Archibald Kains, Esq.
c/o H. P. Schell, Esq.
The Canadian Bank of Commeree
16 Exchange Place
New York
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A. Kai
1qI
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24th July 1916
My Dear Strong
Even since hearing that you had been laid aside for repairs I have
had a feeling of sorrow and sympathy which I should like to express, but being
an uncouth Scotch Savage cannot do it very well. Mr. Parrin gave me a kind
message from you this morning with the information that you were recuperating
in the Rockies and if I had any influence with the said Rockies they would do their
work speedily and well.
I am keeping in a state of rude health by daily divorcing myself from
@ 4:30 p.m. & playing golf till 7, and the climbing round the hills of
7-course at the Presidio is making me as hard as nails.
thp,L9ffice
ga.
We are so far from the centre of things that we almost speak another
language to that prevalent in New York, but I feel sure that from the eleven other
Governors of the Federal Reserve Banks there will arise a sigh of relief not to
mention a note of praise and thanksgiving the day they hear that you are again
doing business at the old stand and that it will not be long before they can gather
together under your leadership.
2ope you are able to get a little good fishing. I would like to send
McCloud River running off Mount Shasta where a few of us have a
you up on
club house and about 10 miles of river, surrounded by mountains a fine place to
recuperate. The population is very sparse confined to Scotch & Indians and their
progeny. The marriage ceremony is almost unknown on the McCloud and yet the half
breeds are as kind & considerate as good christians.
With all good wishes
Yrs
Arch. Kains
Benj. Strong Esq
Estes Park
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8th August
1916
My Dear Mr. Strong
has just arrived and I am glad the dissertation
Yrs. of 5th inst.
amused you.
inst
.
Somebody has called a meeting of the Goys at Boston on 22nd
Why Boston? I suspect Mr. Curtis, I Qmmilli;'Nr. Aiken that
thought a meeting at this time premature in view of the short time the Collection
System has been in force too much as if, having planted some beans, we wanted to
dig them up to see if they had sprouted. Our Collection arrangement is not much
of a success as far as the amount or number of cheques handled by us is concerned.
Our member Banks in the City are only depositing with us their miscellaneous
stuff upon expensive and difficult points being timorous as to depositing with
us items drawn upon Banks in the principal towns of the district lest they should
NaAttBk receives an
lose their correspondents thus the Wells Fargo Nevada
item from the East of say 50,000 on Seattle Na MBank Seattle Wh. it could collect through us for 20 instead of which it sends it direct & submits to a charge
of 10d per hundred, but some of these days the Seattle Bank may fail to keep its
compensating balance and we will get the item. The W.F. Nevada will use us and
pull in its balances kept all over the country for exchange purposes and invest
in commercial paper eligible for rediscount, lovely picture. We have been trying
to make as many StateiBlia.45 as possible collect at par the items received from
our members, and by elffof coaxing cajoling & even threatening a good many
have assented but there are many stalwart protestants who cannot bqgot to see
that it is a good thing for them to give up what they have felt was a legitimate
profit and are not at present impressed with the "quid pro quo" these protestants
are both within the charmed circle of the members and without amongest the bucCharlie McIntosh was telling me today of the immorality of our attempt
caneers.
He says we are
upon these state Banks & I feel quite like an improper person.
the only F.R. Banks to exceed the instructions of the F.R. Board in this matter
and that we have no business to do it, but I told him that it was on a;A:
of the member Banks that we did it so that they would not be forced to give par
We may have to recede from our position which
while state Banks could charge.
of course would not be a good thing, as far as the efficiency of the System is
concerned. What do you think? I am glad yr office is working & would be delighted
to have a few "pearls of thought" from you. Whenever I can I haunt the Presidigl
I played a game with "Uncle" John Perrin yesterday and made one hole in ;another
in 37and a lot of 4s. & 5s but I regret to say that on one hole I got into 3 Bunkers
(all there were possibly to get into); On Sunday the Bohemian Club has its low
Jinks coupled with the cremation of Care which ceremony was creditably performed
the mourners at the funeral making a brave effort to draw in their grief later in
the evening. I find I should not have said Sunday it was really Saturday evening
that he ceremonies took place next Saturday the High Jinks and Grove play will
I'll try and beguile a few minutes of yr time by giving you an account
cted.
be
of it later on.
1.
I hope that yr plan arranging for an account
Pray pardon this
*
with the old lady of Threadneedle Street will sqp be out, so that I can take a
hack at it.
.
With kindest regards,
Yrs faithfully,
Benj. Strong Esq
Estes Park
Arch. Kains
OVERLAND LIMITED
EXTRA FARE TRAIN
eFlICAGO - SAN FRANCISCO
DAILY VIA
Chicago and North Western
Union Pacific
Southern Pacific
Skusust 18th4916.
SeA,49
Benjamin Strong, Jr., Esq.,
Estes Park, Colorado.
Dear Mr. Strong:I am just on Lay way to Boston to attend
a conference of the Governors of the Federal Reserve
Banks on the 22ni, and only wish that I had a couple
of days at my disposal to ran down and see you.
Just before leaving San Francisco, I had a
letter from Mr. Curtis, who said not to forget that
they were expecting a recommendation from me on the
subject of foreign exchange. This matter I understand
you have taken up thoroughly with the Federal Reserve
Board, but in order to*.eserve continuity I have today
written out my ideas, which I will submit to the
committee named by you to consider the matter, and if
they approve, will present it to the conference. 0
54,4,
With kindest regards, I am
Yours faithfully,
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4
REPORT OF THE
COMMITTEE ON ZESTIONS SUBMITTED BY FEDERAL
RESERVE BOARD TOUCHING FEIGN OPERATIONS.
It is evident that under subdivision "E" of Section
14 of the Federal Reserve Act, Federal Reserve Banks have
power, with the consent of the Federal Reserve Board, to
enter the foreign exchange market in a very full degree,
provided an amendment to the act passes giving authority
for dealings in ninety day or three month sightexchange,
exclusive of grace, and your committee considers it prudent to prepare at once the machinery for the exertion of
an influence favorable to this country, in accelerating or
retarding the ebb and flow of gold internationally.
Fur-
ther than this your committee does not consider it wise
to go, at least for the present, being of the opinion
that except for fiscal reasons, the Federal reserve banks
should
not enter into active competition commercially
with other banks, whether members or non-members.
As
the benefit derivable from the exercise of this function
is common to the commerce of the whole country, it seems
advisable that all of the Federal reserve banks should
join in the undertaking, which it is conceivable might
sometimes have to be accomplished at a financial loss for
the benefit of this country's trade.
Therefore partici-
pation in this activity should be shared proportionately,
based upon the capital and deposits of each Federal reserve bank, and operations be undertaken through one agency
for the Federal Reserve Banks collectively.
mittee does not
think
Your com-
well of the establishment at this
time of foreign agencies belonging to the system, but
rather inclines to the belief that the object can more
easily be attained by arrangements with the national
banks of foreign countries, which might in some cases, be
reciprocal, under which
purchases
or sales for account of
our system might be made, while on the other hand, throu gh
our agency, purchases or sales on account of these banks
could be accomplished.
Consequently, we would appear in
the market, generally speaking, at all times, and your committee would propose that the agency for our operations be
situated in the Fedeml Reserve Bank of New York under the
supervision of the Governor of that bank (which latter
would have so large a financial interest in our operations)
as well as the Federal Reserve Board.
The agent of the
Federal reserve banks united for this purpose
should of
course be a foreign exchange expert, and he should manage
the
affairs of
of the bank,
his
office quite
independently of the affairs
making an accounting and settlement of profits
or losses at regular intervals.
There would, of
course,
be many details to be worked out, but it is believed
that
before long a working arrangement might be had including
the principal European countries as well as ultimately
those
of South America, which would not only afford profitable
employment of our funds, but also wield a large influence
in regulating the price of exchange and consequently the
flow of gold.
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26 Angt
1916
My dear Mr. Strong
I arrived at this place from New York an hour or so ago and am much
grieved that I cannot get a train for Seattle before 10:15 tomorrow morning hence
I misspent a couple of years in this place
I am inflicting a letter upon you.
and generally speaking have no great love for it but it is fairly cool just now,
and I am in a forgiving humour having been stewed & boiled & sizzled & fried in
Boston & New York during the last four days. The only redeeming vice the Boston
meeting had was a dinner that Arken gave us at the Nahakt Club at which you may
be sure you were well remembered. Through Mr. Curtis' kind/I:W*4i was handed a
copy of your lucubration in the matter of foreign exchange connections but had
not had a chance of reading it over carefully before I vas summoned to the presence of their High Mightnesses Messrs. Harding & Delano and asked for my opinion
as to these proposals, to which in effect I said that I considered it expedient
to get ready the machinery at once if possible but I was Somewhat doubtful as to
the effect upon some of our etonic friends if we went much further, at the
moment though, it is the prettiest thing of its .kind I ever heard of and your
reasoning is cogent. The poison however is all in the tail where you propose that
the FRBk of N.Y. shall act as a sort of syndicate manager, the idea being also
to tax each transaction which I do not consider the best policy. I should be
very glad to see you name the man and supervise him and to have you paid a good
salary for such supervision but the Holy Federal Reserve System should act through
its own hired representatives and pay no commissions specifically otherwise I am
in absogodamlute agreement with what you have written & would like to see you get
the American equivalent of the order of St. Michael & George or la grand croix de
la legion d'honneur for bringing it about. I do hope you are "patiently abiding"
or if not that you will be given grace soon so to do. Bide a wee and dima be
weary is a pretty hard task I fancy for you, but what's the world to a man when
his wife's a widow & I am confident that with care & patience you'll be quite
good enough for the road for many years to cone though like King Hekeziah you
will have to go a little "softly" Little Seay & I travelled together on Thursday
evening from Boston to New York and talked a blue streak, we reached the Biltnnre
about midnight after a prowl up 5th avenue to try & get cool when he said he could
not get it out of his mind that it was Sunday. This was owing to the 6cripture
I had been quoting to him. We lunched yesterday with Messrs Jay &11-emanshad a
pleasent time of it. It is a terrible thing to be alone in a great city. I know
crowds of people here but am afraid of "stirring anythin7up" as I have to lemielye
on"Little Olaf" WolXd is expecting me to stay over at Minneapolis
so soon.
day to play a game of golf with him but alas I shall be on my way through his
I think there is some sort of understanding
diocese to the west by that time.
in Nov. after the elections. If I go I'll take a
that we meet at Wash
couple of days of fi over to get some inspiration from you "enroute" if you
I told them the other evening that you gave
will allow me. We 1 good night.
the accidental note or dash of colouirthat raised our song or picture out of the
realm of mediocrity & there were no contract minds..
AW
annoy.
"God give thee joy so deep that aechange can alter it orno. fear
For only so can life itself fulfill, GOD give thee joy"
Fa: Vobiscune
Yours faithfully,
B. Strong Esq.
Estes Park
Archie Kains
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A.KMNIS,GOVERNIOR
6th Sept4beis916
My dear Strong:
Your letter of 2nd instant reached me yesterday
just after my return from Seattle and the North Coast which I
was visiting on my way home from Boston.
Our people in Seattle are clamorous for a branch
there, and I was urging them to hold their horses for a little
while until we could swallow down our spittle!
You are quite correct in your diagnosis of the
Boston meeting, matters discussed there being for the most part
of the class which should be disposed of by the head acolytes.
I could wish there was some central authority that could speak
ex-cathedra, after mature consideration, and have us all accommodate our local and petty feelings to the central utterance for
the sake of uniformity.
I only wish I could get away for a little holiday
this year, but considering the fact that I was away so long on
the South American trip, not to mention these little Governors'
conferences, I think it will be difficult for me to leave here
at all.
But what I have said before regarding uniformity goes
with regard to par collections.
With reference to your friend Jim Drake, I remember
sitting by his side in the "Wee sma' hours" in front of the camp
fire at the Jinks, discussing everything, from his early nautical
career to the present attempt to par collections.
He is a very
decent fellow and we have spliced the main brace together very
satisfactorily.
As to the foreign arrangement, Solomon says, "If
you bray a fool in a mortar using the pestle, yet his foolishness
will not depart from him," and our dear old friend Bill Shakespeare
calls God to witness how hard it is for the truth to come out of
a Jew! Naturally, I do not mention these little matters with any
reference to you, but just to shew that other people are tenacious
in the same degree as the acclimated New Yorker is tenacious of
his opinion and good naturedly and tolerantly contemptuoub (perhaps
that is too harsh a term) of the opinion of the outsider.
For my
part, situated as we are, I should prefer such an arrangement as I
outlined with such modifications as seem necessary, to having the
Federal Reserve Bank of New York act for the whole Federal Reserve
system.
We could have the whole thing centralized under your
supervision and the cost of doing business reduced to a minimum
I think as a matter of fact
under the most favourable auspices.
that the agent who would be in your office would be practically
under your control and might well represent the outside banks in
I do not apprehend any serious
buying warrants and acceptances.
trouble arising, although naturally, no doubt, he would have to
spend some of his time explaining matters to you and to the other
governors, as we have often seen done before. The strongest
objection to this system, in my judgment, lies in the fact that
the law does not authorize the establishment of agencies of one
reserve bank in the district of another, but practically under
your proposal you would be the agency of the other banks. However,
I fancy if we desired to do so we could overcome this difficulty,
which would cover the great and fundamental difference between
In the matter of the question of
Tweddledum and Tweedledee.
compensation, it seems to me that each bank (yourself included)
should undertake to pay its pro rata of the expenses, which latter
Your
would of course include all costs overhead and otherwise.
suggestion of a committee to supervise the business if the same
is to be composed of our governors, does not carry much weight
In the first place, they have troubles of their own on
with me.
their hands, and,in the second place, they would be about as useful as a sore thumb in mixing up in matters of which they know
very little.
With regard to yourtobjection to having an agent
in New York on the Question of responsibility, I think we should
all be glad to have you decide the policy and take the financial
responsibility. The liability of loss to be shared pro rata.
AnaEg you
What is sauce for the goose is sauce for the gander!
would have such a large interest in the affairs of the foreign
agency I am sure that the other Federal reserve banks would be
only too glad to defer to you and have you act for them as well
as for yourself, compensating you therefor.
Now in relation to its suiting you infinitely better
to have the Federal Reserve Bank of New York go it alone on all
foreign business,- though as being a little cumbersome I should
prefer the former plan,- it would appear to me that there should
be no difficulty as to this, only that the other Federal reserve
It would mean that the
banks should have the same privileges.
but this
London bank would carry 12 accounts instead of one;
I am sure they would be glad to
presents no great difficulties.
I know that in the case of the bank in which
have the accounts.
I served for many years, that the Bank of Scotland carried a great
number of such accounts, for instance, accounts with our agencies
at New York, San Francisco, and Portland, as well as the branches
at Montreal, Toronto, Hamilton, London (Ontario), Winnipeg, Vanouver
and Victoria, B. C. These accounts all received the same terms,
and there is no reason whatever why the Federal reserve banks could
not arrange to keep accounts in a similar way; which would answer
I will enlarge on this, if you like, later
many of your objections.
one
3
All the influence I had was as strongly exercised as
possible to favour the completion of the arrangement made by
you as promptly as possible, but I was timorous as to the effect
the bruitinp- abroad of the knowledge that such an arrangement
had been made might have among our pro-German fellow countryI remember being asked what chance, in my opinion, there
men.
would be for a German army reaching England and capturing the
capital? My reply being that my opinion on the subject was
probably not worth much, because for my own part I would rather
be dead than see such a thing come about;
but that I felt there
was no probability of such a catasthrope happening.
I shall certainly make every possible effort to spend
a few days with you on my way to the next meeting.
I am only
sorry that I did not consider the possibility of doing so on
this latest occasion before it was too late.
With kindest regards,
Yours faithfully,
Benjamin Strong Jr Esq're
Estes Park
Colorado
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Sept. 11th 1916
My Dear Strong
Just by way of an endeavors to entice you away from your ireams of
evolving the safest and best plan for the painless robbing of the public and to
lead you to the consideration of higher things I am enclosing a copy of a letter.
by Lord Macaulay to a friend living in New York in 1857. How can a man be other
than an oligarch, if possible, unless he can awing things alone.
Yours in bonds of servitude,
Arch. Kaines
B.-Strong Esq.
f
FEDERAL RESERVE BANK
OF SAN FRANCISCO
419
4
A. KA I NS, GOVERNOR
16th September 1916
dr49/6
My dear Strong:
Your letter of 11th instant came to hand
last night and I have attentively noted its contents.
Of course there is really no disagreement
between us at all as to the desirability of operating the
account as one and not as twelve. My observation regarding
the twelve or more accounts that the Canadian Bank of Commerce
kept with the Bank of Scotland was only called for to shew that
it was quite possible to deal in that way, and desirable also
in case we could not do any better; but, nevertheless, one
account is the most desirable way to have the business handled.
My position with reference to your proposal
is simply like that of the old Earl of Huntly, when the
English people desired to make a match for their young King,
Edward VI, with I:ary of Scotland, and sent an army up there
to dictate terms,- he disliked not the match, but only the
manner of the wooing. Of course I know that New York is the
only large open market for exchange where transactions can
be cleared; but having spent five years in the South buying
cotton bills in five different States, I realize the possibility of accumulating immense quantities of exchange which
need never see New York; and the same .is true with regard
to the grain bills originating North and West of Chicago, and
But you look *upon these transactions
in many other places.
as naturally 'belonging to your field of operations, and I do
not desire to object, although strictly speaking they only belong
to you in respect of the function of New York as a clearing
house for foreign exchange.
As I stated before, I think it is of extreme
importance that our transactions should not be individually
and I speak with some little experience, having been
taxed;
sent down as a stranger to New Orleans and hooked up with a
respectable old broker there who knew all the ropes and whose
This was in the dark
charge for intervention was 1/32 of 1;70.
ages and before 1/64 was a desirable commission to chase, the
result being that I was only able to make about ' ;5000 over
expenses, whereas later on by doing business without this charge
I was able to increase the amounts handled as to shew a profit
of something like eight times that amount next season.
With regard to the joint agency which I re-
2
commend, I realize that the consummation of it calls for the
exercise of magnanimity on your part, but am confident that
it is the most scientific, economical and safe way to handle
Naturally, you would establish the policy and whoever
it.
you had to manage the purchases and sales would also be one
for whose mistakes we would be jointly responsible._ Personally
I would consider the risk of loss mighty small, but it would be
the same under a joint agency as under the sole management
of the Federal Reserve Bank of New York, and under your proposal
of taxing individual transactions with regard to business of which
you would have a monopoly, as far as the Federal Reserve System
would be concerned it would only seem reasonable for you to asmime all the risk as you would probably expect your European
But the joint agency under your control
correspondent to do.
could well afford, as I have said, to pay all the costs overhead
and otherwise and apportion such cost pro rata, and you would
have the satisfaction of being "primus inter 121,y_21" in doing a
beneficial work in a manner that could not be unfavourably
criticised with a contented body of associates for the benefit
in proper proportion of our banking system as a whole. Any
other course is, I think, under our circumstances unsound, but
rather than have compretition among twelve powerful banks and
economic waste I would personally be inclined not to gag at your
iniquitous proposal as being the next best thing.
Yours faithfully,
A
Benjamin Strong Jr EsqTre
Estes Park
Colorado
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FEDERAL RESERVE BANK
OF SAN FRANCISCO
4
A. RAINS, GOVERNOR
September 25, 1916
Dear Strong:
Your letters of the 21st instant reached me in due course
and found me sitting like a sparrow
over a game of golf.
alone on a house top and meditating
I say alone, because
my acolytes, Calkins and
Bordwell, are away, the former in Kansas City, where he has gone to help
swell
the noble representation you thought the Federal Reserve Banks
should have on the occasion of the meeting, and the latter somewhere in
Oregon on a vacation.
But why should I say I am alone, when I have
beside me, or rather, in they next room, the comforting presence of dear
old Uncle John, who I suspect has made enough money in the long-sustained
bull market in New York
to enable him to buy another thick coating as a
defense against assaults upon what was already
an almost
impregnable
citadel.
Be this as it may, I was truly concerned
exposition of the ravages
made
by that
reprobate old
at the horrible
Gold Settlement
Fund upon the peace and happiness, not to say potentiality, of the eldest
daughter of the church (I mean Federal Reserve System?) -- You'll excuse
i\
my French-, I've been so much abroad -myself up
principally to prayer
oblivious to the consideration
and, moreover, having given
and good works of late, I had become
that our dearly beloved children in the
faith, the member banks, have not yet appreciated the necessity
of
carrying their end of the log, which is indeed a vary saddening consideration.
-2is as
The way this works as between New York and San Francisco
follows,
gets gold on balances for all items
San Francisco
to-wit:
received from the other Federal Reserve Banks, but loses that gold to
with
balances which they fill not
member banks when they draw against
the items on the East which we could naturally expect them to give us, but
with their drafts on New York and elsewhere
which they sell us on the terms
fixed by us in our circular letter, at present a premium of 150 per thousand
for telegraphic
and
24
per thousand
discount, for mail .Naturally they
prefer to sell us mail transfers as they get interest on their balances
at 2%, and New York is five days off, and we, coterie oaribus, would rather
sell them mail transfers because, of course,
as far as we are concerned
under the present circumstances
and
there is no difference between telegraphic
mail, except that we would }lave to pay a higher price for the former to get
the same effect as we would from a purchase of the latter.
If, as we have endeavored to suggest, (see enclosed letters)
office
would allow us to deal in telegraphic
would probably reduce our rates to
regular as long as we did not
drawn in lieu of the same.
the service chargts
,
40
your
in the time-honored way, we
discount for wire
and, say, 514 for
get the covering items in place
of the exchange
We would if we got the latter, of course, get
so that the effect on us would be the same
,
except that
we would be doing more work, but the effect on you would be that you would
get gold for the telegraphic, as we would purchase telegraphic transfers
under a stipulation to that effect, or buy their mail transfers at a still
greater downward spread, our only effective weapon to preserve our gold
being by regulatioh of the rates.
I wish I could solve the riddle satisfactorily, but under the rules
as they now stand it would take a syndicate of wise men
their exclusive attention.
giving the matter
If it could not then be satisfactorily solved,
then change the rules.
Pardon this somewhat hasty screed,
things to emanate
from the rookery in Estes Park
but we are expecting great
over which you are brooding
at the present time.
I think I said before that I am hoping to coma along your way
during the first week of October, which is now almost
leave the moment Calkins returns.
Yours faithfully,
a-77i
t
//Al ,,t 7
(Benjamin Strong, Jr., Esqlre,
Estes Park,
Colorado
upon us, and I will
-3as they now stand it would take a syndicate of wise men
their exclusive attention.
giving the matter
If it could not then be satisfactorily solved,
then change the rules.
Pardon this somewhat hasty screed,
things to emanate
from the rookery in Estes Park
but we are expecting great
over which you are brooding
at the present time.
I think I said before that I am hoping to coma along your way
during the first week of October, which is now almost
upon us, and I will
leave the moment Calkins returns.
Yours faithfully,
17
Benjamin Strong, Jr., Esqlre,
Estes Park,
Colorado
(476
FEDERAL RESERVE BANK
OF SAN FRANCISCO
4
A KAINS.GOVEF.r1OR
25th September 1916
Dear Strong:
Your letter of 21st instant twitting on
exchange matters is at hand, and I have been trying to get
hold of my misconception of what your programme contemplates.
You say yourself that you do not wish to make any profit upon
this business beyond the 40 % or more to which your proportion
of the investment would entitle you; now, that being the case,
of course the expense of the business should be paid for, and
should be paid for by each of us in proper proportion.
The Federal Reserve Bank of New York in the
imposition of a charge on the individual transactions would
be charging all the Federal reserve banks, including itself,
a fixed rate which in all probability would be either too high
or too low, if the morst efficient method at the lowest cost
is the desideratum.
I never had an idea that the Federal
reserve banks should go into active competition with their
members, but I only mentioned the possibilities open to
Federal reserve banks under the Act.
Your proposition for the New York bank is
exactly what I should propose for all the Federal reserve
banks of the system as a joint account proposition. You admit
that in the event of loss you would expect this Bank, or any
other Federal reserve bank, to assume its proportion of loss;
and, therefore, I should say, that makes it practically a
joint account proposition in which the Federal Reserve Bank
of New York should not add a super tax to the business.
I think with regard to selecting by preference
bills of American origin, that your proposed correspondent
in London, if it were inclined to guarantee payment, could be
trusted to select bills that would be paid on due date.
should not care whether they were purely of English, or partly
American, or partly Russian or other origin.
With reference to the amount the investment of
this money would realize, I have a lively recollection of a
very extended period when money in London was less than 1.
However, the whole matter is a question of the principle which
should be applied in handling this business.
I do not think
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A. KA I NS. GOVERNOR
25th September 1916
Dear Strong:
e
4,
Your letter of 21st instant twitting on
exchange matters is at hand, and I have been trying to get
hold of my misconception of what your programme contemplates.
You say yourself that you do not wish to make any profit upon
this business beyond the 40 % or more to which your proportion
of the investment would entitle you; now, that being the case,
of course the 'expense of the business should be paid for, and
should be paid for by each of us in proper proportion.
The Federal Reserve Bank of New York in the
imposition of a charge on the individual transactions would
be charging all the Federal reserve banks, including itself,
a fixed rate which in all probability would be either too high
or too low, if the most efficient method at the lowest cost
is the desideratum.
I never had an idea that the Federal
reserve banks should go into active competition with their
members, but I only mentioned the possibilities open to
Federal reserve banks under the Act.
Your proposition for the New York bank is
exactly what 1" should propose for all the Federal reserve
banks of the system as a joint account proposition. You admit
that in the event of loss you would expect this Bank, or any
other Federal reserve bank, to assume its proportion of loss;
and, therefore, I should say, that makes it practically a
joint account proposition in which the Federal Reserve Bank
of New York should not add a super tax to the business.
I think with regard to selecting by preference
bills of American origin, that your proposed correspondent
in London, if it were inclined to guarantee payment, could be
trusted to select bills that would be paid on due date.
should not care whether they were purely of English, or partly
American, or partly Russian or other origin.
With reference to the amount the investment
this money would realize, I have a lively recollection of a
very extended period when money in London was less thAn
However, the whole matter is a question of the principle which
should be applied in handling this business.
I do not think
but it is quite possible,
Aiken got anything from me;
because we did have a conversation regarding the business
generally.
I am somewhat amused at being considered a
Scotchman; but have been doing the best I could at it
under the handicap of having a father and mother born
in Canada between eighty and ninety years ago, a paternal
grandfather who was a bow-legged English officer in the Royal
Navy, and a maternal grandfather who was a fox-hunting Irish
The Scotch comes in through the two grandmothers,
squire.
and evidently seems to have been the most persistent element.
I think that the thrifty New Englander you refer to, from
Boston, is more Scotch than I am.
As a matter of fact, I am not worried at all about
it is solely the principle of the thing,
the commission;
and, as .I stated before, the next best thing is to work
along the lines of your plan; beyond registering my opinion,
I would fall into line like a good dog, lie, down, roll over,
Because what we should have above everything
and play dead 1
is cooperation.
With regard to my movements, as I have intimated,
I expect to leave here early in October, say about next
Tuesday or Wednesday, if my plaris carry, and will be able to
be in Denver a couple of days later, when I shall not be long
hunting you up and having what you Yankees call a good visit
together.
With kindest regards,
Yours faithfully,
Benjamin Strong Jr EsqTre
Estes Park
Colorado
FEDERAL RESERVE BANK
OF SAN F:erICISCO
A . KAINS,GOVERNOR
26th October 1916
Dear Strong:
I found your letter of October 20th when
I arrived here on lionday, and was very glad indeed to get it.
To say that I enjoyed being with you in
Denver puts it very mildly indeed; it was a great delight to
me to see you looking so well and so courageous.
I carefully note what Father Forgan has to
say on the subject of foreign exchange.
I do not think he ever
did very much of a foreign exchange business; but och, man:
he's verra soond if he's no' deep.
It is too bad that their high mightinesses
in Washington take no note of your humble a.plication; but
constituted as they are you could not reasOnably expect them
to do so at the moment.
.
Your San Francisco branch would be glad to
invest a million or two any old time in the way suggested
when conditions are right as they are now, and I should think
the system could readily put out thirty million and upwards
with the Old Lady of Threadneedle Street.
I had a most interesting and enjoyable trip
as far as Omaha with Hessrs Vanderlip and Trumbull, the latter
of whom was a perfect joy as to the number of funny stories
he told.
Did he tell you the butterine story? If not, here
goes:As far as T recollect, he mentioned that he
happened to be crossing the ocean with the late Philip D Armour
after the latter had been victorious in his fight with Jbe
Leiter and when the packing houses were perfectly working
to full capacity etc etc.
He remarked to Hr. Armour as they
were taking their morning constitutional on deck, "I suppose;
21x Armour, now that everything has turned out so successully
for you that you are satiated, not to say cloyed, with success
and are probably getting indifferent. row, for curiosity,
I should like to know whether there is any one thing ',Mich you
do that gives you more pleasure than the rest?"
"Yes," said
1r Armour, "making butterine gives me the most pleasure."
"Why?" asked Trumbull.
"'ecause it is the only way I can get
the hog down the throat of these damn Jews!"
I yonder if Warburg would appreciate this? I rather think
he would but I should not like to write it to him; I should
not mind telling it to him on a proper occasion, because while
he is a perfectly good Jew, I have no doubt he is also a
perfectly good fellow.
Having returned after a more or less strenuous
I ha l a fainting
trip I am not anxious for any more travel.
fit in New York and felt for a while like an automobile that
was missing its stroke, and even now I feel like the breaking
up of a hard winter. I have not, however, taken down the sign
as I may be preserved for some good purpose yet. Heaven only
knows!
I received a most considerate, not to say
flattering letter from Er Vanderlip, making me an offer with
It was a great
regard to which'I believe you are familiar.
temptation, as the work would be in my line and the kind I
like; but, on my return here I had a thorough physical examination made of myself, which is not over yet; but larP:ely as a
result thereof I am firmly convinced of the necessity of
lying low here for a while, if I expect to decorate this
mundane sphere for any great length of time. Besides, I had
not squared matters with my wife, and I find so many ties
The
about here that it is almost impossible to shake off.
salary he offered me 025,000 was tot so temptinr, as the work.
But whether cheap
Perhaps he thought I was a cheap/skate.
or skate, I won't be trotting in his race course, but will
probably continue as far as I can be useful to trot along
quietly in the rederal 7eserve paddock, munching a few oats
now and then and -_:oing along like good 7ing Hezekiah after
he had received his warning, although he had fifteen years of
life vouchsafed to him, and I do not expect quite so many; but
if some of the years can be useful I will be very glad.
The only consideration that would make another
meeting of the Governors attractive to me would be the pleasure
I would have in starting a day or two earlier and dropping
dorm to see you, either going or coming.
';Ii kindest regards,
Yours faithfully,
0/AINC
;en
in Strong Jr Esq're
Estes Park, Colorado
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My Dear Strong
Today being All Souls Day my mind naturally turns to a strong soul
in durance-11'11e though mile high and I hope that before many months roll over
us that the body ghWasing the soul will have become strong enough to carry
round its impatient tenant without inconvinience.
,
There is very little in the way of news. We are fighting away on the
collection problem and losing about $2,000 per month in costspaid to express
companies for collection of items on State Banks in this district especially in
I expect we will be opening
the State of Washington but will just fight along.
an office in Seattle before long as a starter which will cure some of Af14-vils.
bonds and
Do you think we are aq;ve enough in redeeming or taking over the
converting them into 3 for disposal to th9 public : It seems to me that we could
ke much more rapid 05ess without d4ratning ourselies. The doctors
I have
golf
drink whiskey. So that shows to what a low estate
dam/)them,play
They don't look with favor with my motplte use of tea and coffee. Howfallen.
National Banlzin Fresno has been
ever, I live in hope of better times. One of
brought out by the Bank of Italy, a young vigorous institution with more sail
than ballast which is under state laws and is doing business with many branches.
All same Cosh. exchange New York. The highcontracting parties have appointed
me appraise' of the value of the expiring National Bank and I am going down to
attend the wake on Friday. This will be the first dry Ilake I ever attended.
I pray I may escape all untoward accidents. Uncle Johnigetting restless I think
he wants to go to East before long to tell the Board a Pew things which regard
to running Federal Reserve Banks. The elections are of course hampering proceeding at present. If Wilson has the ghost of a chance it will be due to racial considerations. The hyphen dies out slowly,of course a blown-in -the-bottle A New
England like you, also no4 appreciate this concideration like the branciOs' of a
my apologies for inflicting all this trash upon you coupled with
later vintage.
the assurance of my most distinguished considerations.
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Your friend,
Archie Kaines
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Dear Strong
Your note of 30th t,gte,), has just reached me.
There was no humility intended in my inadvertently referring to this
office as a Branch due possibly to my long association with a proper banking
system.
I have no words to express my gratification that you should class us
with those bright and shinning marks, Kansas City and Atlanta.
With regard to my (I hope) temporary indisposition the doctors tell
I have to be very careful inme my heart is enlarged and slightly dislocated.
deed in my actions and go about very quietly. Abstaining absolutely from anything
like whiskey, beer, wine, etc. also tobacco, tea, and coffee. The rest my machinery
is in such good order that I am relying upon the heart getting ashamed of itself
and falleInto line again. In this connection, I am reminded of interesting ditty
entiled "He never blames the booze", whatever that may mean.
Muchas gracias for your kind invitation to look in upon you which I
would fain do,I trust that the meeting may be postponed a bit, say till about
7 or 10th December as at the moment I would look with dread upon the prospects
of crossing the continent.
I note with much interest the picture of our friend "Miller at the Caw"
when in Boston someone said that 1w had joined the Roman Catholic Church being
He certainly had titzlook of those brethren, which
a convert on possibly a pervert.
to the practiced eye is almost inmistakeable. I will as you indicate, forward
this picture to Little Olaf at Minneapolis with instructions to read, mark, learn,
initial, and pass on to MacDougal.
When I get through with these dear doctors, I'll let you know what they
think & hoping I may me given grace to fool them & with all kind salutary sentiments. Believe me.
Your humble obedient servant who kisses your hands,
A. Kaines
B. Strong Esq.
Denver, Colorado
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4
My Dear Strong
Yours of 6th _t.-1.4.-eris just at hand and I am glad to have it even at
the expense of knowing that in addition to other troubles I may in
judgment be afflicted with "wheels in the head." Faz4b4it from me to attempt to
deny that this is the truth but I am wondering just how,I exposed myself however
think/the head will folis my old pump will get into its regular habit again.
low suit. With regard to what15-eman says in respect of the effort to persuade
F.R.Bks to conduct cheque collections free of charge, I would say that the chap
If we had practically all
who desires this effort made is damnably premature.
the Commercial Banks, National State and Trust Cos in our membership and to a
certain extent under our thumb and were making plenty of money legitimately I
would rather spend some of it for the benefit of the said members in the way of
lightening their collection charges then turn it in to Uncle Sam but we are no
that length yet as a Scoiaman might say and it will be time enough to bid the
devil good morning when we meet him. Instead of fishing themselves about the
mint anise and cummin they should leave these minor matters to fryin their own
fat for a while while the "weightiermatters of the law" receive attention such
as the making of F.R. notes eligible at reserve financing the green backs etc.
fixing it so that we can collect the dispersed gold. However when this political
I had a telegram from
turmoil is over, I hope something adequate will be done.
It looks
N.Y. this a.m. enquiring suspicioubly as to the result in California.
like Wilson at the moment much to everyones surprise, because this state properly
Johnson has hornswaggled
Nr.Airaa
handled is rock ribbext.Republican, but
the community and while nominally for Hughes has not supported the latter with
fervency enough to induce the belief that he was really for him and as he has a
wonderful organization for a young state. I am inclined to think some trading
was done, Johnson for Hugi4s, just as Warren Miller was traded for Ben Harrison
and "fell outside the breastworks" except thadi5it is not the Senator but the
Presidential candidate that is now doing the falling. Then again the British
vote is stronger here than any of the other hyphenates and when it was seen
that the German vote was going solidly for Hughes, the natural thing happened.
Then again I think our Holy Father the Pope in some way gave his faithful children to understand that while both candidates were heretics, Hughes was the preferred heretic for various reasons, while I may communicate to you some day, (if
I did here you would be confirmed in your belieki. that the lunatic asylum was my
proper homicile) and therefore when our '11.ristian science friend of which Southern
California is full realized this they also did the natural thing. However, politics
is a queer bird & you never can tell by the length of a toads tail how far he can
Commending all this nonsense to your astute mind & with kindest regards.
jump.
a
Believe me
Yours in virtue mercy & charity
Benj Strong Esq.
Denver
Archie Kains
FEDERAL RESERVE BANK
OF SAN FRANCISCO
November 10,
A. KAM. GOVERNOR
1916
Dear Strong:
Your letter of 7th instant is just to hand.
I am getting along as well as I could hope.
I suppose I ought
to be locked up somewhere to prevent exertion, but I really would pine away and
die if I did not engage in a certain amount of activity.
Just now we have had a vary exciting time over politics and my most
intimate friend here being
the representative
the Democratic party, I have had a view
of the National Committee
of
of the inside of politics which I have
found very interesting.
I enclose cards of a couple of temptations which I will have to forego, that is as far as making any great effort is concerned.
I wish to God we could get an arrangement with McAdoo
larger percentage
of the bonds
could be converted into
long
3's,
whereby a
and at your
suggestion I will do the bast I can along that line.
The American Bankers Association seems to have taken it upon itself
to work out a clearing and collection plan
nation-wide in its scope, and fair
and equitable to all banks and to the business interests, which means, I assume,
that the country banks are desirous of continuing
them profitable
handling of check collections.
their old unscientific, but to
They have written me, in
common with all the other officials of the Federal Reserve Banks, for opinions
and statistics, but Aiken has forestalled the likelihood of ans:.ers being made
by writing us, giving it as his opinion that no answer should be made
the conference of Governors
sound enough.
until
has a chance to consider the matter, which is
-2-
I am not at all discouraged
4
play
the
as regards my health, as I intend to
game properly, and if dissolution should coma along suddenly, I would
-be interested in experiencing
the various phases.
I had a nice note from Wold this morning anticipating a
meeting in December.
With kindest regards.
Yours faithfully,
Benjamin Strong, Jr., Esq.,
4100 Montview Boulevard
Colorado
Denver,
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1916
My Dear Strong.
Yrs. of 14th wish just hand pray overlook my reference to the wheels in
the head, these little weaknepe_§. one ought to keep to one's self. The only trouble
with my heart is that it has been a little expanded and uncomfortable but not particularly danerous state of affricate though extremely inconvenient7.sometimes but
abstemiousTrInd very gentle excercise will I think soon bring me back into normal
conditions and you can rest assured I am taking great care of myself. -- If I attend
the Governors Conference nothing will give me greater pleasure, than to stay over a
couple of days with you on the way. Our collection system has been working under
difficulties but we have kept on with coercive measures upon the fellows who would
not play the game, and yesterday Spokane our chief
came into camp.
My old Bank's Branch at Portland stood out for quite a while but we drained them
of gold, pretty affectionally and they lastweek announced thatt.,..e._ they
would remit at par for items sent them, all this is cheering in this
k vale of
sin.
We are to have a visit from his grace the Secretary of the Treasury who is
expected here next,week.
I wish we could divorce this Bank from its political connection or make the latter very nebulous. I am for sending your friend the Comptroller
and Ambasador to Dahomey or some other important place and as for the Secretary, I
should think that he might have a seat without a vote on the Board, like certain
English Bishops in the House of Lords. I am off for a meeting of Bankers in Central
California next week to talk (or read) about 30 minutes on Suggested Amendments to
the F.R. Act. So many of the brethren rush to print new a days to indulge in prophecies of good and evil that one gets tired wasting time upon so much vaporing.
Do you read all of these lucubrations, if so prrty tell me what you think of Mr. A.C.
Millers address at Indiana: -- Uncle John Perrin is woceeding to Washington on
Sunday to a meeting of F.R. Agents which will immedklY precede,..our meeting on-120-e,'"'",
11th .
These meetings
,-A7-4-_,,,i,74----. inspiring presence are too much like
,;,,,-----
salt that has lost its savour for my taste.
\
Benj. Strong Esq.
Denver
Vale
Archibald 'Coins
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A. KA INS. GOVERNOR
29th November 1916
Dear Strong:
Yours of the 20th instant came duly to hand and I
have also received yours of the 21st with its enclosure, which I
have not digested yet owing to the fact that I have been out of
town and rather busy with various matters.
I regret to say thatiI found as a result of my trip
to Fresno, where I.had to read a *per sitting down being somewhat
afraid to stand up, that I was not quite up to the shaking one gets
on these transcontinental journer, so Calkins is going East in my
place.
The meeting is going to be a mighty interesting one too,
and I think some good results should ensue.
I am quite sure iAiat the System cannot permanently
hold anything of consequence in the shape of gold, no matter how
much it may be able to accumulate, except in so far as the Federal
Reserve Note might be changed/for thb gold certificate now in the
pockets of the people. This latest amendment sounds very well
but is about as efficacious afs rubbing the stomach of a man who
has an ache there with a whiSkey bottle instead of giving him a
swig of the inside of the bottle; but I of course appreciate the
necessity of using all meand to accumulate gold, and hope to
goodness these farmers in Washington will come to their senses
and give us the full equip*nt for taking care of ourselves. I
cannot see that anything short of having the Federal Reserve Note
made eligible for reserves / both in State and National banks,
will do the trick.
We are of cdurse losing gold to Japan and the other
countries who have given us value for it; we can never stop that
little game.
The rumour /which you heard that Japan had to put a
prohibitive freight ratelon shipments of Fold from Japan is not,
I think, true; it is true to the extent that she endeavoured to
put a prohibitive freight rate a year or so ago on shipments to
China when Japan was being bled white; but things have changed out
there, as you know. No!matter how they change, however, there is
nothing that will prevent shipments of gold when the circumstances
warrant, and the Japs may be very smart, but they will never be
smart enough to prevent that movement by mechanical means,
I hope to be writing you tomorrow or next day.
With kindest regards, yours faithfully,
BENJAMIN STRONG ESQTRE
COLORADO
DENVER
C)
417
FEDERAL RESERVE BANK
OF SAN FRANCISC,0
December
A. KA I NS, GOVERNOR
.4?
xe'
c',",
5, 1916
'Fzo9/
Dear Strong:
What a time you are having, perched up in your milehigh aerie, looking down
upon the system
and its active angels:
I have just been reading your letter to the Angel of
the Church at San Francisco, and return it to you herewith.
the light thereof I can quite appreciate your descent
line of blue New England ancestry.
In
from a long
I suppose the humor came in
through some maternal strain, but the fiendish joy which you took
in telling him that his address
was the best thing of his which
had come to your attention, and then 'proceeded to skin him alive and
hang the skin up to dry, is worthy of the finest old New England witch
ducker from whom you descend
in a straight line.
Needless to say, I suppose, that I am in hearty agree-
ment with your views, though the Honorable Mr. Miller is to be commended for his industry.
I am in a state of discontent
simply because I want to
do so many things and can't, owing to a debilitated frame.
We have the branch question on in full vigor in this
district just now, and if I were feeling up to snuff I would like
take a trip up to Seattle, Portland, and Spokane and do some converting or proselytizing
which, as I dare say you
know very well, can
not be done unless one puts a good deal of himself
into the thing.
-2-
Mr. Perrin is at present in Washington, and Calkins, the Deputy
Governor, and Clerk, the
Auditor, are in
Chicago attending a meeting
of the lesser fleas, Calkins to go on later and attend a meeting of
the great fleas in Washington on the 11th.
Cashier, has just returned
lating
from
Bordwell, our
Spokane, where he has been confabu-
with the Spokane outfit, and Shepherd, the Assistant Cashier,
is leaving to-day for Portland
to make a speech at a group meeting.
So you sea we are fairly active in trying to do our duty to the
public.
I noticed a sudden flurry
to
15%, although I
in the rata for call money yesterday
see the close was
at 7%.
It seams like old
It gets interesting, however, when it goes to about
times.
which some of our member banks seem /to think
Federal Reserve System.
50,
impossible under the
They seam to clothe the System with awful
powers in cases of this kind.
I dare say Treman and his satellites
have a good deal to think
about, and I could wish you were sound in wind and limb and had a hand
on the throttle.
Pray excuse
occupied
this disjointed screed, as I am
pretty fairly well
and lately have had little time at my disposal.
I trust you continue to flourish like the green bay horse we
read about in the Scriptures, and with all kind thoughts, believe me,
Yours faithfully,
el#
(3 In
0-,
Penjamin Strong, Jr., Es q.,
4100 Montview Boulevard
Denver,
e
Coloradoft.
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AL RESERVE BANK
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A. KAI Kt, GOVERNOR
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1916
CONFIDENTIAL
Dear Mr. Strong.
Mr. Kains is in the hospital where he was taken lastTuesday. The heart
misplacement is apparently -- a trifling matter.
He is having hemorrhages and
they have not yet succeeded in stopping them or locating the trouble.
(The flow
comes from below the bowies.) X-Rays were made yesterday but no report as yet.
I am sending this word to you although no one in the Bank knows the
trouble, and think Mr. K. is at home res ting a few days, and no word is being
mentioned outside. Our two bank manager directors (McIntosh and Lynch) know the
situation.
I will write you a line tomorrow.
will learn more as to the present outlook.
Today I am to lunch with Mrs. K. and
Yours faithfully,
Sarah E. MacDonald
(Secretary to Mr. K.)
oze3,6,
tAA--
ERAL RESERVE BANK
F SAN FRANCISCO
GOe_r44
A. KAI NO, GOVERNOR
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12th December 1916
Dear Mr. Strong
Your telegram and your letter of 9th reached here this morning and
both will be handed to Mr. Kains at the first opportunity.
The assemblid governors at Washington telegraphed affectionate greetings
I fancy Mr. Kains does not want much said anent his illness. A very
yesterday.
few here know of it. I took it upon myself to acquaint you, thinking you might
be wondering why he did not write, and knowing of his regard for you and of his
enjoyment of the correspondence between you.
The trouble has not yet been located. The doctors think it may be
what I told you, but now they say they really do not know. They want to X-Ray
but Mr. K. is too weak to stand up. The hemorrhages have not ceased entirely,
and he is now absorbing nourishment but not through the stomach.
His brother is at
Mr. Calkins, our Deputy Govr. reaches here tomorrow.
He
is
a
U.S.
Navy
man
and
is
quoted
as
a
Manila
Bay hero with
the point of death.
Dewey.
Since writing the above I have had a talk with Mrs. Kains and she says
He
that today he has been taking food into the stomach and it seems to go well.
o'clock
this
afternoon-but
the
doctor
says
had another little weak spell about 3
that is just weakness. He had two of those spells yesterday afternoon.
I will write you again tomorrow.
Yours faithfully
S.E. MacDonald
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A. KA I NS, GOVERNOR
&41.k
26th March 1917
MAR2 9 1917
Dear Jtrong;
Your letter of 22nd inst is just at hand.
I have been coming down to the Bank every
day now for about a week for a few hours, the net result
being that I feel a good deal better than I did this time
last week.
I can notice the improvement week by week, but
cannot day y day.
I am just in receipt of a long petition
signed by the bulk of the active members of the Presidio
Golf Club, requesting that a lounging room which during my
absence had been changed for one of the ladies rooms, be
restored to its original status, so I shall have to pay
the Club a visit today or tomorrow, which is a sad thing
to contemplate for one on a d;et in liquid of matters
consisting only of milk and vlchy or water and bicarbonate
of soda,- delicious mixtures! Don't you think? I have
tasted nothing else since last December.
Did you c-ive Aiken the word of command in
Chicago?
If we are ever -oing to be the National bank,
we must take a little broader view of certain matters than
we have hitherto done.
I understand that OUT 7orthwest friends are
clamouring for branches, and that we are to have a visit
from one of their '-igh mightineases from ":lashington,
iTr
1211er, I presume, to go over this matter. I have no ,loubt
that we need branches up there in connection with the collection system; but they should be branches and not independent
banks, as laid down in the Federal Reserve Act, which badly
neec7s amendment in that respect.
I am delighted to hear of your increase in
weight.
I have not been keeping track of myself in that .
regard; but as to my blood, which i was 45% on December 5th*
last, I may ay that it now registers about 95%, and considering the fact that some people go through life eomfortably with 80:./J, is pretty fair.
This is the time of year that we have the
festival, and if you came out this way we could
chew you miles of white and pin blossoms at this moment.
I am hoping for the time to
come when I can have you out
'elocsor .
2
here and take you about a bit.
With kindest regards,
Yours :faithfully,
F
Benjamin Strong Jr Escirre
4100, Nontview Boulevard
Denver, Colorado
7<
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A.RAINS. GOVERNOR
APR6
2nd April 1917
1917
Dear Strong:
Yours of 29th March is just to hand, and I
I wish I
am delighted to hear of your new Golf record.
but
I
fancy
I shall
could whack a ball aS, 250 yards once;
I
shall
be
have to wait a couple of years before I try.
delighted to see your card after you get going.
We are at present havino' a visit of from
fifteen to twenty bankers from Spokane, Seattle and Portland
in connaction with branch banks, the matter having been,
I fancy, unduly hurried up by certain of their Senators
bankers in the North.
at the request of the
If we are to handle the collections of this
country properly, to do so we shall have to have our
membership increased by the State banks; and in that case
we would need branches in Spokane, Seattle, and Portland;
but under the present going ahead under one bell the
Northern part of this State is, at a great disadvantage, and
if we open only one branch there i8 going to be a great deal
But the
of bitterness on the part of the neglected cities.
Board in Washington and the Board here -rill just have to
skin their own skunks and make the , ecision.
I am delighted to hear that there i a chance
of your coming to pay me a visit. iJ thrifty Scotch secretary,
in sending me the beautiful flowers from you at Christmas, in
view of the comparative cheapness of flowers here, reserved
some money which she invested in bulbs which were planted in
a corner of my garden, which I have named "Benjamin's bed"
and some of these bulbs are now in full bloom, and ag inst a
pretty purple border of heather at the present time. I hope
you will come out before they fade away; but we shall have
plenty of other kinds of flowers by that time.
I have felt quite sure that if our Board in
Washington had a little More of Delano's qualities we should
get along swimmingly and on comprehensive and beneficial .lines.
With kindest regards,
A
Your
Benjamin Strong Jr Esq're
4100, Montview Boulevard
Denver, Colorado
faithfrlly,
It
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A KAI NS. GOVERNOR
11th May 1917
My dear Strong:
I was delighted to get your telegram today,
simply to know that you were back in the saddle.
I thought you said that you would come out to
see me before going back to New York, about the first of June.
The weather has been heavenly for the last month or more, and
the fishing on the HcOloud River is prime, I understand.
I
am sending a chap from Liverpool- whom I knew in New Orleans
over twenty years ago and who dropped in on me yesterday-
up to the Bollibokka Club, where he can revel in the beauty
of nature.
I only wish the question of the opening of
three branches and of seeing that our share in this District
is done toward the Government financing, did not nail me to my des'at the moment.
With kindest regards and best wishes,
Yours sincerely,
FEDERAL RESERVE BANK
OF SAN FRANCISCO
41.14
A. KA I NS. GOVERNOR
May 11th 1917
MAY 2 2 1911
Dear Governor Strong;
Thank you very much for your telegram of
today in answer to mine regarding Mr Page's despatch.
I have telegraphed Warburg, as you suggest,
also stating that what we want badly and at once is a
definite pronouncement officially as to particulars of bond
issue and terms of payment therefor, so as to have official
assurance that money will not be injuriously dislocated;
that everybody worth while was ready and anxious to cooperate
actively, but that we must have definite terms authoritatively
stated as a basis.
Yours faith ully,
941/v!
Gaverrtr'
Benjamin Strong Jr Esq're
Governor, Federal Reserve Bank
New York City
FROM FEDERAL RESERVE BANK OF SAN FRANCISCO
WESTERN UNION
POSTAL
COLLECT FROM
FEDERAL
COMPANY
MENT RATE
TELEGRAM UNLESS OTHERWISE STATED
CHARGES
CLASSIFICATION
CHARGE
RUSH
May 11
To
RESERVE BOARD, FEDERAL
FEDERAL RESERVE BOARD BUSINESS-GOVERN-
COLLECT
WE CONFIRM OUR TELEGRAM AS BELOW
Benjamin Strong, Jr.
Governor, Federal
Reserve Bank,
Telegrar R. G. Page
received
Nei York
purporting to represent New York
Liberty Loan Committee
desiring to exchange ideas
each district
Owing
Steo,
no committee
formally
immediately
provided
Principal
people here
to lack of official information we have
organized as
yet
th-ugh
this
could he done
we had any official particulars to base it on.
most anxious
to cooperate.
any information you can give us.
http://fraser.stlouisfed.org/
5155 16-3-23-17
Federal Reserve Bank of St. Louis
between committees
KA-LiV
Governor
Please wire us
YOUR PATRIOTIC DUTY-BUY A LIBERTY LOAN BOND
A. C. KAINS. CHAIRMAN
F. B. ANDERSON
LIBERTY LOAN COMMITTEE
i
,
4
,HN A. BRITTON
L LIAM H. CROCKER
JOHN S DRUM
111A
JOHN W. EDMINSON"
HERBERT FLEISHHACKER
A. P. GIANNINI
I. W. HELLMAN
' lk.
414-416 BANKERS INVESTMENT BUILDING
JOHN J. MILLER,
A(311
"'
SECRETARY
742 MARKET STREET
.........'7'1"' t
TELEPHONE
l''4'444
SUTTER 4917
HENRY T. SCOTT
RUDOLPH SPRECKELS
R. M. TOBIN
GEORGE TOURNY
GEO. K. WEEKS, EXECUTIVE MANAGER
SAN FRANCISCO,
Pbc,-(49/
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25th May 1917
C)
Dear Strong
Yrs of 22 "and just to hand" I am having a joyous time of it at all
May health is
sorts of committee meetings. I wish I were 25 years younger.
improving but I am a damaged article yet. But I look forward with pleasure to
foregathering with you some of these days.
With all good wishes
Yrs
A.K.
FEDERAL RESERVE BANK
OF SAN FRANCISCO
A. KA I NS. GOVERNOR
SUNG DEPT.
JUN 2
22nd June 1917
1917
MEAL limaa: CAE°
Y
)
Dear Governor Strong:
Permit me by means of this letter to
introduce to you Mr Cyrus Peirce of this City, President
of Cyrus Peirce & Company, (who was formerly President
of N W Halsey & Company.)
Mr Peirce is taking a trip
to New York and other Eastern centres, and is desirous
of acquainting himself with the financial condition at
first hand, and if you can do anything to facilitate
his desires I shall take it as a favour.
r Peirce did some fine work here in the
Liberty Loan campaign, addressing meetings in different
places throughout the State and in this City with great
effect.
With kind regards,
Yours fait fully,
Governor
Benjamin Strong Jr EsqTre
Governor, Federal Reserve Bank
New York City
FEDERAL RESERVE BANK
OF SAN FRANCISCO
RUNG DEPT, 4k
:-Ord June 1917
JUN 2 9 1917
c9d,is
F.Pazi4. rirgsarE
My dear btron_:
Luz
>>
:
.a.
.
I have given Mr Cyt;us Peirce of this City
a letter of introduction to you, as per copy herewith.
Peirce is a man who was of great assistance
in the Liberty Loan campaign here, travelling through the
country in his motor car, delivering his addresses at all
the small towns like a patent medicine vendor; but very
effectively.
If you can give him a few minutes of your
time I shall be very much indebted to you.
Yours faithfully,
Benjamin Strong Jr Esqlre
Federal Reserve Bank
New York City
Form 1206
ESTEkiSENA UNION
AM
TEL
WESTERN UNION
. Massage
.ight Letter
s shoalJ mark an X oppc.
crass of service desired;
Di. .,WISE THE TELEGRAM
WILL BE TRANSMITTED AS A
FAST DAY MESSAGE.
110.,W1 fir
NEWCOMB CARLTON, PRESIDENT
Send the following telegram, subject to the terms
on back hereof, which are hereby agreed to
Receiver's No.
Check
Time Filed
GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT
Boston, Wass.,
Aug. 24, 1917.
Benjamin Strong,
The Lewiston,
Estes Park, Colo.
For fear the cold blooded New Englanders and other inferior tribes should
no-ti.have conveyed properly our sentiments we desire to send Our love and
all good wishes for speedy recovery and joyous reunion.
Aiken, Rhoads, Seay, Miller, Treman,
Hoxton, McDougal, McKay, McCord, Wold Fancher, Kains.
TO THE FOLLOW1k,
office for
TAKE
ARE SUBJECT
is, telegraphed
back to the originating
AND PA..
TELEGRAM
telegram,
bey.,
that
BY THIS COMPANY
THIS IS AN UNREPEATED
order it REPEATED,
times
the
its face,
UNREPEATED
t.
beyond fifty
telegram should indicated on as follows:
ciph,
non-delivery, of any telegram,
the sender of a Unless otherwisethis Companydelivery,
lines', nor for errors in
or for
ALL TELEGRAMS
or delays,
non-delivery,
el any REPEATED of its
in addition. telegram and
transmission or
the
delivery, or for
interruption in the working
in the
the sender of delays
To guard against mistakes
telegram rate is charged
non-delivery, of this telegran
valueone-ienth
mistakes or
transmission
or from unavoidable
delivery, or for the
valued, unless a greater
whereof it is agreed between
one-half the unrepeated
liable
for
arising
delays
in
the
transmission or
shall riot be mistakes or
is hereby
such value equal to
for delays
ho consideration
delays in the
paid
based
on
this
telegram
in
any
case
nor
for
Thesending
Company
to reach ite
agreed to be
valued; nor
mistakes or
which amount
the same;
when necessary
damages for any
sum paid or
DOLLARS, at
received for the same, unless specially
other
Compan31
liable
for
of
.1,11,1Y
an
additional
shall not be
beyond the sum transmission, and
office in other cities
or sending
over the lines of any
mile Of such
endeavor
Company for
or otherwise,
telegrams. In any event the Company
this telegram
and at his expense,
and within one
offered to the
to
forward
or
less,
negligence of its servants
his agent
ce
without liability,
request,
as
caused by the at the time the telegram is
5,000 population
is sent to such offi
in towns ofliability,
if a telegram
at the sender's
writing hereon
made the agent of the sender,
is
Company's
office
offices;
and
cent.
thereof.
will,
without
telegram
of
the
one per The Company is hereby
after the
delivery, but
one-half mile
accepted at one of its transmittingwriting within sixty days
free within not undertake to make
to eill
the
same
are
be
delivered
classes in addition
destination.
does
Telegrams will
is not presented in
senctor.
limits
the Company
price.concerning telegrams until
delivery
at a reasonable
in each of such respective
Beyond these
ease where the claim
as thepenalties
agent ofinthe
this
Company
to
messages
any
COMPAN
towns.
him
for
such
that
purpose
attaches to acts for
shall apply
contract for
he
No' responsibilityniessengets,liable
UNION TELEGRAPH
damages or statutory c/asses of messages enumerated below
for
WESTERN
the Cdrepany'swill not be
INCORPORATED
THE
under the
by one of Tim
PREsiDEMT
Company for transmission.
CARLTON.
transmission of messages
Company
NEWCOMB
governing the
filed with Special
the
foregoing.
terms
to vary the
.
is authorized
terms.
of the Company
the foregoing
No employee
CLASSES
..
and at
of its date absolutely is subje Cls_
on the day
obligation in this respect
for the tran ig
be
delivered
Letter shall that the Company's remain sufficient time
durit
there shall Letter on the day of its date of regevents;condition
but
that
of the transmission
to the
delivery of such Day
mission and hours, subject to the priority
named above. foregoing.
regular office under the conditions
is authorized to vary the
OF SERVICE
4
FAST DAY MESSAGES
service.
A full-rate expedited
night
ular telegrams of the Company
to be sent during the
No employee
reduced rates the ensuing business day.
NIGHT MESSAGES
at
morning of the ensuit
Accepted up to 2.00 A,M.than the morning of
NIGHT LETTERS
not earlier
for delivery on the night message rates,
to
2.00
A.M.
mesand delivered
standard be charged for the tran
Accepted up
lower than
shall standard day rate for :
than the standard dayNight
at rates stillrate
for 10 words
business
day,
DAY LETTERS service at rates lower times the standard
of such words
standard
day
one-fifth
of
day
or less.
and
one-fifth
follows: The words or less,
one-half
A deferred follows: One and of
or less and
additional 10
mission of 50
50 wordsless.
for
each
sage rates as
for the transmission 10 words or
words shall be charged
Letter raterate
for each additional
LETTERS:
LETTERS:
DAY
'
Day
the initial
APPLYING TO
this special enuAPPLYING TO NIGHT
TERMS
for
this specialto"Ni
to
those
SPECIAL TERMS the reduced rate for
SPECIAL
tI
reduced rate in addition
consideration of special terms in addition
of
the
further
special
terms
consideration
Company as a
.the following
In further
the following
etter" service,are hereby agreed to; by the Telegraph Day Letters
to:
-Telegraph Com,
Letter" service,
of such
above
are hereby agreed
be
forwarded
and
. crated above
the option of the
and
delivery
Letters
may
and
the Company
may
at
enumerated
transmission
A. Day
the addressees, such eases with 11
and the transmissionthe priority of
A. Night Letters
destination
to
obligation in
deferred service
subordinate to
Code language
its
be mailed at
Letters at destination, po.
'is, in all respects, o
to have "discharged
plain English.
such
Night
be
deemed
written
in
of
regular
Code lan,t
shall be
' delivery
Company
to delivery by mailing
in plain English.
s. Day Letters
be a
by the Telegraph
be
written
delivery
shall
prepaid.
be
delivered
Letters shall
and such
is not permissible_Letter may
s,
a. Night
authorized to vary the foregoing:
addressee, the Telegraph Company to
. c. This Daythe same to the
permissible.
Company -is
obligation
of
is
not
,f
!h,:
the
by telephoning
discharge of
No employee
express, understandcomplete
subject to theundertake
that a Day
not
deliver.This Day Letter is received
Company does
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FEDERAL INTERNATIONAL BANKING COMPANY
N EW ORLEANS
2-99'
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21st July 1923
Dear Strong
Some time ago Kenzel paid New Orleans a visit and we had an opportunity
to talk over bygone days and I was sorry to hear from him that you were again in
the hands of the Philistines and as one who has suffered much from many of them I
desire to express my sympathy in the hope that you will soon be doing business
again at the old stand. As for me I am in my 58th year playing a game of golf
every morning before breakfest. And though I have scars of bygone conflicts of
some organs which might improved upon. I am reasonably cheerful, unregenerate,
and ready for anything from "pitch and toss to manslaughter" I am sorry to note
the tendency of the Federal Reserve people to get implicit in politics which if
it persists may spoil a splendid machine which has been a great use in the past
and will continue to be if let alone. I am presiding over the destinies of a
little export and import Bank in reality an acceptance house and it is childs
play but as I am no longer in the first flush of youth, but rather getting into
second childhood, childs play suits me quite well, and gives me enough occupation
to keep me interested fortunately my little economies in former days and their
results, rended me immune from the necessity to hustle any more but a job like
mine is like keeping the cows out of the cherry trees. I am on the eve of taking
my american wife up to the little town (London) in Canada where I was born, and
where they are having a reunion this year of old boys, and I suppose we will have
a most interesting time of it, then we shall go to Toronto and Ottawa Montreal
then to New York for a couple of weeks, then back to this sultry paradise.
Cotton
at the moment looks as if it might go down as crop prospects are fairly good and
people abroad will, I fancy, go naked another year if necessary rather than promise
to pay more than 25 per lb. for it. If you haNre time and inclination drop me a
line and tell me how you are, perhaps I might be able to prescribe some useful
"balm for the wounded warrior". I remember with pleasure that though your efforts
some years ago at Denver, I was enabled to slake my thirst by the grace of a charming lady Mrs. Whited I think was the name, I don't know how I remember this but I
have a villainous memory. I sometimes wish it were not so good. Pray forgive this
disjointed screed written to convey my sympathy and friendship.
Believe me always.
Your affectionate servant who kisses your feet, as our Spanish friends
say.
Archi Kains
FEDERAL INTERNATIONAL BANKING COMPANY
NEW ORLeANS
':-47
C.)
A. IAIN5.
PRESIDENT
February 13,*(f192501
ACT<NOWLEOATZ:1)
FilB
fl
s; 1925
Dear Strong:
Many thanks for your kind note of the 9th.
instant anent the Down Town Association. I have however, taken the veil, being sixty years of age and
am now retired from business altogether. Our stockholders last month decided to liquidate this institution which interesting operation should be completed
in sixty days. Henceforth I shall live on my fat,
and endeavor to get my score under ninety and also
occupy myself in other good works.
I am contemplating
the erection of a modest but useful house in Ottawa
just adjoining the Vice Regal Residence on the Ottawa
River, from which I can radiate sometimes South, sometimes to California and other times to England.
As far as clubs go in New York, I belong to
three which will render my former desires in respect
of the Downtown Association supererogatory, and I
shall be much indedted to you if you will be good
enough to withdraw my name.
Hoping to see you in Ottawa some su4mer day
irLien you feel like sitting loose to the world, and
with kindest regards,
Yours faithfully,
AK: WW
Ben Strong, Esq.,
Federal Reserve Bank,
New York City.
I I)
FEDERAL INTERNATIONAL BANKING COMPANY
NEW ORLEANS
A. RAINS,
February 19, 1925.
PRESIDENT
Dear Strong:
Many thanks for your kind
favor of 16th. instant and the good
wisnes therein contained. I am full
of trouble just now, as a niece of
mine is coming down from the North
to participate in the Carnival
festivities next week, and I know
I should accompany the chauffeur
to meet her at the train, but this
will prevent my playing my usual
Sunday morning game of golf, which
will upset three other old guys who
will vilify me unsparingly, so you
see, even the pleasantest situation
has its drawbacks.
With kindest regards,
You s faithfull
4-
"For dongas, rocks and scuffled greens,
"Give me the links up North
"The whins, the broom, the thunder
of the surf
"The three old fellows waiting
where I used to make the fourth
"I want to play a round on turf"
AK:EE
Benjamin Strong, 2,sq.,
3:5 Liberty St.,
New York City.
OOVERNOR'S OFFICE
RECEIVED
Rs 2
ED
@FedFRASER