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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
cottage
attached to the hotel, where I have an officelittlefrom whlch
and

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//'
not like ieettreeee-Of one bank, like Atlanta or Chicago, exhib..
---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

i

o long a

end

gales T

position

.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

7 oo
i

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 oporate 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 / hows s
o,

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-eh_
sn

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

eaking, I hold your hand.
hington.

with the

meeting a

foreign connections

you cannot do so.
ease don't answ

I know

are not up to

sun imbi

his and other letters from me for

g health.
est re

uch work and should be siting in the

and a speedy recovery.
Faithfully yours,

A. Kains, Esq.,
Governor, Federal Reserve Rank,

San Francisco, Cal.




question of our

competent to discuss then

any of them,

13S/VCN

This is an




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

hope

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.

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 matters we
r

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

J311




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Chicago, 25th January 1916

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

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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,

0

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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 th
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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KAi NS. GOVERNOR

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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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ro)

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

but we are expecting great

from the rookery in Estes Park

over which you

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
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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
So that shows to what a low estate I whiskey.
golf
drink have
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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1916

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
,I exposed myself however
deny that this is the truth but I am wondering just how
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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17th of Nov.

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 The only one's self.
keep to 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,'"'",
A7-4-_,,,i11th .
These meetings
,,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




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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 m

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,



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AL RESERVE BANK
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A. KAI Kt, GOVERNOR

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8th Dec.

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)
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,
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ERAL RESERVE BANK
F SAN FRANCISCO

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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;
have to wait a couple of years before I try. I shall be
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,

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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, for
office

TAKE

ARE SUBJECT
is, telegraphed

back to the originating

AND PA..

TELEGRAM
telegram, bey.,
BY THIS COMPANY its face,that IS AN UNREPEATED
order it REPEATED, THIS
times the

UNREPEATED

t.

any telegram, beyond fifty
telegram should indicated on as follows:
ciph,
the sender of a Unless otherwise Companydelivery, or for non-delivery, of
lines', nor for errors in
ALL TELEGRAMS
or delays,
non-delivery, el any REPEATED of its
in addition. telegram and this
transmission or

the
this telegran
delivery, or for
interruption in the working
the
To guard against mistakes rate is charged sender of delays in the
telegram
greater valueone-ienth
the non-delivery, of
whereof
one-half the unrepeated it is agreed between mistakes or the transmission or from unavoidable transmission or delivery, or for valued, unless a
equal to
liable for
arising
delays in
shall riot be
is hereby
for delays
or
ho consideration
delays in the
paid based on such value
this telegram
The Company same; nor for mistakesnor in any case
to reach ite
valued;
mistakes or
which amount or agreed to be
sending the
when necessary
damages for any
sum paid
DOLLARS, at
received for the same, unless specially
other Compan31
liable for the sum of .1,11,1Y
an additional
shall not be
beyond
office in other cities
or sending
transmission, and
over the lines of any
mile Of such
Company for
or otherwise,
telegrams. In any event the Company
expense, endeavor
and within one
to forward this telegram
or less,request, as his agent and at his
negligence of its servants is offered to the
ce
without liability,
caused by the at the time the telegram
5,000 population
is sent to such offi
in towns ofliability, at the sender's
writing hereonthereof.
made the agent of the sender,
offices; and if a telegram
cent.
will, without
telegram is
of the Company's office
one per The Company is hereby
one-half mile to make delivery, but
sixty days after the
accepted at one of its transmitting
free within
to eill
writing within
classes in addition
presented in
destination.
Company does not undertake telegrams until the same are
Telegrams will be delivered reasonable price.
is not
limits the at a
delivery
concerning the agent of the senctor. where the claim
in each of such respective
Beyond these
as penalties in any ease
COMPAN
towns.
attaches to this Company
shall apply to messages
contract for him for such niessengets, he acts for that purpose
TELEGRAPH
statutory
enumerated below
No' responsibility
liable for damages or
c/asses of messages
WESTERN UNION
the
INCORPORATED
THE
under the
by one of Tim Cdrepany'swill not be
PREsiDEMT
Company
CARLTON.
transmission of messages
Company for transmission.
NEWCOMB
filed with Special terms governing the
the
foregoing.
to vary the
.

is authorized
of the Company
the foregoing terms.
No employee

CLASSES

..

and at

date absolutely is subje Cl
on the day of its in this respect the tran s_
obligation
for
be delivered
Letter shall that the Company's remain sufficient timeits date duritig
events;condition that there shall Letter on the day of
but
of regto the
delivery of such Day priority of the transmission
the
mission and hours, subject to
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
NIGHT MESSAGESA,M. at reduced rates the ensuing business day.
morning of the ensuit
Accepted up to 2.00
than the morning of
NIGHT LETTERS
not earlier
for delivery on the night message rates,
to 2.00 A.M.
mesand delivered
than standard be charged for the tran
Accepted up
than the standard dayNight
at rates still lower words shall standard day rate for :
business day,standard day rate for 10
DAY LETTERS service at rates lower times the standard
of such words or less.
one-fifth of
follows: The words or less, and one-fifth
and one-half
A deferred day
or less and
additional 10
mission of 50
of 50 wordsless.
as follows: One
for each
sage rates for the transmission 10 words or
words shall be charged
Letter rate for each additional
rate
LETTERS:
LETTERS:
the initial
APPLYING TO DAY
this special ' Day
APPLYING TO NIGHT
for this special "Ni
to those enuSPECIAL TERMS the reduced rate for
SPECIAL TERMS
consideration of special terms in addition
of the reduced rate in addition to tI
further
special terms
consideration
Company as a
.the following to;
In further
the following
etter" service,are hereby agreed
by the Telegraph Day Letters
Letter" service, are hereby agreed to: of the -Telegraph Com,
of such
above
be forwarded and delivery
and
. crated above
the option
enumerated Letters may at the addressees, and the Company
A. Day Letters may transmissionthe priority of transmission
with 11
and the
A. Night destination to
obligation in such eases
deferred service
subordinate to
Code language
be mailed at have "discharged its
respects, o
Letters at destination, po.
'is, in all
plain English.
be deemed toby mailing such Night
Code lan,t
' delivery of regular shall be written in
Company
English.
to delivery
Day Letters
s.
be a
by the Telegraph
be written in plain
prepaid.
be delivered and such delivery shall
Letters shall
is not permissible_Letter may
Company to
s,
a. Night
authorized to vary the foregoing:
. c. This Day same to the addressee, the Telegraph
the
obligation of
is not permissible.!h,: Company -is
,f
the
by telephoning
discharge of
understandNo employee
complete
subject to the express, that a Day
undertake
not
deliver.This Day Letter is received
Company does

litIn

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



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