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4

iwyicivNpADL,Toi, COMPANY

CHICAGO

OFFICE OF EXECUTIVE VICE PRESIDENT

December 29, 1925.

Ir. Benjamin Strong,
cio Federal Reserve Bank,
New York City.

ACKNOWLEDGED
1 J 23

B. S.

Ey dear hr. Strong,

I have just received a telegram from
Mr. Woolley advising me that you very kindly consented to come to Chicago to address the Industrial
Club the latter part of January, if possible, and
if not, that you will come at a later date.
I want to assure you how ve all deeply
appreciate your kindness and I can assure you of
a. very hearty welcome in Chicago and an audience
that I am sure it will be a pleasure to you to talk
to.

I hope you mry find it convenient to
advise me in the very near future of the date which
would suit you in January and the subject on which
you would like to address us.
Again thanking you in behalf of the
membership of the Club, I am,




Cor




December 28, 1925.

George P. Edwards,
Publisher, Coast ranker,
3e.
Francisco, California.

My dear Mr. Edwards:
I have your letter or December 18.
esteem for Mr. Perrin,

While I have the rrentest

I am afraid I must decline to undertake the article

you au&-est to I do not think I em the person to write it.

Banks are vretty lhrgely local institutions end it is therefore impossible
for anyone .P1 far away from the Pacific Coast as I am to kno* oath any

degree of intimacy the work which Mr. Perrin nas been Going.

*e nave

enjoyed very much our occasional contacts with hite once or twice a year at
conferences in Washinp,ton, but that is hardly a basis

teresting and useful article.

or writing an in-

If we wrote the article it would be rather

atetract and academic, and quite uniatereatint:.

I am sure you could do

better by having some prominent loc.l banker who :mows Mr. Perrin's work
better undertake the task.
I am sorry to have to decline.
Very truly yours,

Baij. SIONG
Governor
WaBs2




CitIPANTI
AND CALIFORNIA BANKER
PACIFIC COAST'S OWN BANKING PAPER.

CoratrrBANKEnPuitLisunio
576-578 SACRAMENTO ST.

SAN Pit.4aveisc0.
OUR HOME TERRITORY

GEO. P. E DWAR DS.

December 18, 1925

PRESIDENT.




Benjamin Strong, Governor,
Federal Reserve Bank,
15 Nassau Street,
New York City.

My dear Mr. Strong:

In anticipation of the coming retirement from the
position of Federal Reserve Agent of the Twelfth Federal
Reservse Bank of John Perrin, I am anxious, very anxious, to
show my appreciation of the man in a public way in COAST
BANKER, and the thought has occurred to me that you who
know the men so well, might be willing to write an appreciation
of him which we would publish as a principle feature of the
next issue of COAST BANKER.

We are publishing a page size photograph of him and
we would like to have a full page pen picture of him and the
service he has rendered the country, and I know no one is more
familiar with this than you and no one who is familiar wi the
facts, occupying as important a position as you do it seems
that you are the one man in the country to write that appreciation.
The only reason I am writing to you is because I know
that you are the outstanding figure in the financial world and
that you are personally acquainted with John Perrin's work.
At the same time may we ask that we be favored with a
recent photograph of yourself?
Yours very traly,

GPE:MC

December 17, 1g25.

Dear Mr. Forbes:

I live your letter of December 14 lnd I should like very much to

mAce you a Christmas present of a letter which would help increase the circula-,ion of your magazine, beoauco I think you are

F, good (Allow and are

ding a valuable and interesting piece of work in the magazine.

But I

am going to ask you to let me beg off from writing anything which will oe
used.

The fact is thti. It this time of yeYr I receive s perfect deluge

policy of turning

of re.iuests for st:.temonts 'TX! I hvo

The limits of time make it imooseible to .accede to all

them all down.

of these re uests

.11d

it is the.refore inpossible to Pcoede to any.

Move-

ovor, I think that the Federll Reserve fi.Inks are in the beet possible

situation if their officers go

.bout minding their own business and saying

.13 little an i:ossiblo, exceit 7ihcre it is a Tatter of givinF the public
oorre...:t information about the operLtions of thA AyetAm.

Let ma wish you personally, however, -,ho greatest of happiness

aLd success :44 a Chrisai
Sincerely

C. Forbes,
Forbes gagazine,
Mr. B.

1p,0 Fifth :,venue, New York.

WRBat



ours,

I

71:irrixext Alecgaz

maxidmkjiuunur

Nebx

exit

December 14, 1925.

Lr. Benjamin H. Strong,
Federal Reserve Bank,
120 Broadway,
New York City.
Dear Li'. Strong:

I would like you to send me a
Christmas present:
I would greatly appreciate a sentence or two from you telling how you regard
"Forbes" and the work we are trying to do.
Let me take this occasion to express the earnest hope that 1926 will bring you
and yours a bumper measure of health, happiness
and prosperity.

BCF/nv




December 8, 19.5.

Dear Gerrard:

Referring Lo our converent ion sbout ttht addrese, I

am encloeing a skeleton which may or may not be in line with what
you had in mind.

You will observe it contemplates little in retard to

policies, but it will not be difficult to introduce that if you think
it would be of interest.

The important thing, of course, is the European monetary
situation and our relation to it, and the general situttion as to

markets for our surplus production, particularly the crops; elao the
neec for extension of credit by this country during the period of
European recovery in order that this market may not be impaired.
If you till glance over the enclosed end return it to as
with your com:aents,

I will start something right away.
sincerely yours,

Honorable Garrard B. Winston,
Under Secretary of the Treasury,
Washington, D. C.
Enc.
P5.1.4




1ht Federal Reserve Banks from s National Point of View

1.

Introductory rewrke.

2.

U. S. Goveenment lergeet buRinese organization .n the world. Collects
and disburses vast sums, floats and redeems securities, and cerries
on other 2inenciel operations like private concerns.

3.

Yet Treasury until recently hes had no suitable country-wide banie.ng
agent.

4.

Our financial history has been one of constant endeavor to remedy this
defect
(a)
First and Second United States Banks
(b)
Period of tried with etste tenks
(c)
Independent Treasury system
Defects - Alternately withdrew fund6 from end pumped
funds into market; inadequate market for
government securities.
(d)
Lose of Treasury independency and growth of Treasury
paternalism

5.

Viewed from the standpoint of the Treasury, the most obvious services
of the reserve rianke h,ve been their purely fiecel agency ooenf
tione
(a)
(b)

and redemption of securities
Payment of checks and coupons, etc.
Eeitl.

8.

!welly important, though probably not 60 well recognizec: service,
has been that of relieving the Treasury of abeuming many of the
functions of a central bank.
(a)
Reeponsibility for stabilizing money rotes
(b)
Provision of funds for seasonal crop moving
(c)
Provision of emergency currency
(d)
i-rovieion for gold imports
(e)
Transfer of funds by wire
Illustrete above by examples of Treasury action in the past.

7.

Substitution through the Reserve Banks of a democratic for an autocretic monetary control
(a)
Formerly any decisions as to monetary control rested
eith the Secretery and his advisers, or with poterful
New York bankere; danger of political influence.




(b)

(c)

B.

These decisions now vested, through the directorates
of the lr Federal Reserve Danko, in the business
Lad banking leaders of the different Reserve Districts; Governmental supervision through the
Federal Reserve Board.
Thio aemocrL.tic control more in keeping with American
ideals and principles, which in banking have been
particularly opposed to monopoly.

Provi,ion of a responsible democratic authority for dealing with intera,tionia credit problems
(a)
Bank of Englandcredit and importance of cooperation
in ouch matters by the United States
(b)
impoi,sibility of the Treasury's assuming these duties
and inadequacy of private meaaures
Suitability of the Reserve Banks as responsible economic
(c)
powers subject to a minimum of political influenze.




Pecember 4, 1925.

.

Midzutt%ni,

Editor and Fublisher,
The Japanese Times,
35 Sixth i\venue, New York.
Dear Sir:

1 have your letter of December ? concerning the special number
of the Japaneas T1meo which io to apoear at the Ale? Year.

I greatly

regret that I cannot unlertake to prepare flay comment concerning economic
relationships between the two countrieu.

I as not at all as expert in

these matters and I find it imposeible to re:4-0nd to the many reoueets
of this sort, which are constIontly made.

,t thic time of year particu-

Lurly there are sc many requests for statements of various kinds thnt *e

have been forced to make it s rule not to attempt to accede to any of
thee, as much as we would like to do so.

The only other poseible course

would be to give out superficial and hastily oreptired material, which

would be of no volue and orobably dengereus.
I am cure ycu appreciate that no one ie more friendly to the
Japanese people and has more faith in their future than I.

Very truly y

re,

STAblIG

Governor
11118th




Cable Address "PANESEMIT NEWYORK"

SHE JAPANESE TIMES

TELEPHONE

SPRING

8277

PUBLISHERS, PRINTERS AND TRANSLATORS
JAPANESE-AMERICAN DAILY CABLE SERVICE

3 5 SIXTH AVENUE, NEW YORK
December 2nd 1925.

Dear sir:
The Japanese Tines will appear at the T:avi Year as a
special number with which it is desired to mark the renewal of friendliness and mutual understanding between Ameriaa and Japan.

The two nations came most frequently in contact in
the economic field. It is our conviction clearer conceptions of true
and just economic relations will foster, as hardly any other influence
can in so great adegrae, these friendly feeling that are keenly desired
on both sides of the Pacific ocean.
We therefore take the liberty of extending to you a
very earnest invitation to cthntributes to our TTew Year's issue an expression of your thought ragarding these basic economic conditions and
possiblities.
Your favorable response before the fifteenth of this
month would be very deeply appreciated, not only by ourselves but by
the entire Japanese community in America.
Very truly yours

S.Mi utani.
Editor and Publisher.

lion. Benjamin Strong.

Governor of the Federal Reserve Board,
Distric of New York, City.




1)




Deeeikber 2, 1925.
-1"-F

AL

g.71:

.144

Mr. T.

Gouvinc,
7inancihi t;ditor,
rorld Building, New York.

Delr Sir:

have received your lettsr of becomber 1 and I as
tarry that 1 find myself unable to Lccede to your requeat.
'ST: vPry much ties

t

could not possibly find

.acro3nt

the time to work out a statement.

We t.re not distrituting

my wk.tter of Late sort, with the exce?tion cf the unnu4i report
of t.te butt, which rii1 big i.ublirted some time in J6nutay.
Very truly yo,.:,rs,

bENJ. STRONG
Governor

INTERNATIONAL NEWS SERVICE, INC.
WORLD BUILDING
NEW YORK, N. Y.

December 1, 1925.

Benjamin L. Strong, Esq.,
Governor,
Federal deserve Bank,
33 Liberty street,
New York
Dear Sir:

Reports submitted by American industrial corporations in recent months prove conclusively that the
year 1925 was a prosperous one for most departments of
business and industry, while agricultural districts also enjoyed a large measure of prosperity this year.
For that reason our leaders of finance and business are
generally in agreement that present conditions and the
immediate outlook are probably more favorable than at
aiy time since the close of the great war.
We are anxious to secure for the millions of
readers of International News service an expression of
the views of business leaders relative to the accomplishments of the various departments of industry, trade, or
finance with which they are most familiar.
This is a
courtesy you have rendered more than once in the past and
it is because of the keen interest and appreciation with
which it is received by newspaper readers in every part
of the country that we are asking you to favor us again
this year.
Will you kindly write us briefly and for our
exclusive distribution what, in your opinion, have been a
few of the outstanding developments, industrially and commercially, of the year 1925; the outlook for the new year
and some suggestions as to how best to solve its problems.
We should like to receive this material as soon as possible
and not later than December 15.
All you also kindly furnish our office with such matter along this line which you
may be preparing for general distribution.
Thanking you for past courtesies, we are
Very truly yours,

$1;

By-

WSO*J



110410.

OA' AA A/a

Financial Editor.

I
November 19, 1925

ne. r kr. Gnrrett:
I sm Just new in rt:ceipt of your letter of November 17,
to which 1 fe r it is nooe:,uary for me to reply, a8 I hays in the

past, that it Is i ;osable for me to prepA.re
Annual

'inar3c1t..1

in

.r-L,iclo for the

u,..iness Review.

:it-,tem,.nt.13 by offic, rs of the Federal Res-rve
d,

e too likely to be misinterpretsa, or to be construed 'is in the

nature of 6. prophesy.

I feel it id t mistake

cp I.

ouch

inwit,-tions, though I appreciate your thou6htfuljeque\in nsking
me.

E'.ch year i read ths Reviet with kcsn int,sraA,

shall look foroaru to seeinc; it

tib

.r-:,

Very truly yours,

If'
U1

The




p. Garrett., Es.i.,

York Evenia5 Post,
Vesey 3trt,et, New York.

20-24 VESEY STREET. NEW YORK. N. Y.

TELEPHONE WHITEHALL 9000

grrit 7criVening

oot
ACKNOWLEDGED
November 146v

wis25

B. S.
lir. Benjamin strong, Governor,
Federal Reserve Bank,
New York City.

Dear

Strong:-

The Evening Post is preparing, after its custom of the
past 19 years, to include in its Annual Financial and Business
Survey brief statements on the financial 4nd business outlook
from a carefully selected group of well-known financiers, public
men and economists.

We hope to include your views, however briefly expressed, in this symposium, which incidentally promises to
carry a more authoritative list of contributions than azy
previous similar publication.
For what it may be worth, in
suggesting topics of wide interest, I attach a few queries but
trust that you will not feel restricted by them.
Llay we count upon you for something this year?
If, as we are hoping, :,rou should feel disposed to give us your
views, we should like to receive them between now and December
10th, When the mechanical prepartion for the special edition
begins.




Faithfully yours,

Prow
Financial Editor.

aw-tti)

el:text,4

kW ire

gleNt.

afro\ A4,4\,

ONE WHITEHALL 9000




20-24 VESEY STREET. NEW YORK. N Y.

Nein Bork petting

'pot

FOUNDED 1801

Suggestive Queries for Business Article

1. Do you expect a high rate of general business activity to persist during
1926? What do you consider the chief stimulating influences?

2. Do you see any factors likely to cause a setback to business during the
coming year? If so, what?
3. Are commodity prices likely to go lower during 1926? Or to advance? Or
to remain in general where they are; and why?
4. Do you expect firmness to develop in the money market during 1926, and
to what extent? What are the controlling factors likely to be?

5. How do you expect the European situation to affect American business
during the coming year?
6. Do you anticipate a large amount of foreign loans here during 1926?

7. Is the labor situation in your community satisfactory from the viewpoint
of the employer?
8. How do you view the present tendency toward installment buying in this
country?

9. What in your opinion is the most pressing problem in connection with
business at the present time?

December lb, 124.

Lear Mr. Herlmin,L,:

It sus roet mind of you to .:rile me ae )ou did on
December 15.

My idane at trie diaaent do not coottALAe a western
trip in the immudite fl tui 1.,

t.nd,

1r:deed, Lore I to be it,

Colorado Springs at the Limo you mention, I ehot.16 be ibliged
to etrictly adhere to the order:. 5f Ty dz.-Acre, Lbiel irobibit
my mestkine 9ddres6
I

sho.A.

of lny nature.

But were I La be C.:tele,

-zajay iceting kith the Ch:.mber of s'"%mlerce.

1313&36 10013T. !I thtnk!, for your good aisheFi, whin

I be!rtily reciprocate.
Very truly youre,

1. D. Hemmin,
Vice President, The Fir3t Altional
Cularvao
.;01.1).

ILA




117!1

TilE,

sT NATIONAL BANK
OF GOLORALIO SFR]

S

CAP I TAIA $ 300,000 * SU12PLUS $300,000
A.II. H uwr. PRESIDENT
I.vng.110WREUT.Pssnossx DETRE HOARD
E.P.Suovis.vicss PRIESIONNT
W.11.11EMISINO, vurs PRESIDENT
1.110VVIREIIT, c:wNRINR

0.L.6ODFREY- JEFFERSON HAYES - DAVIS ASSISTANT CASHIERS

R. SMITH

CM.tr_PJAD SP-AtiL.EsuM,R_Th

December 15,1q24

ACKM)W1_,EDCIED
NOV 18 1924
Gov. Benjamin Strong,
Federal Reserve Bank,
New York, N. Y.
Dear Yr. Strong:

I an writing at the request of our
local Chamber of Commerce inquiring if you expect to be
in Colorado Springs at any t"me during anuary or
February?
They would like very much to hive you
speak to a general membersip meeting of the organisation
some time when you are here.
If you would consent to do this any
subject you would care to use would be most acceptible
to them.

Best wishes of the season, and with
hopes that we will see you in the near future in Colorado Springs, I am




Yours very truly

Vico President.

Lece,acer 8, 1924.

My dear Mr. Cousins:

Replying to your note of the 4th inathnt, I fear that it
will not be -,:cssitle for or, to prepare the article you were good

enough to ask me to writs for the International News Service.

Sttersnte of thie sort from officers of this bank in the
nature of a prophesy of whht scly happen in prices, in the money
market, etc., are t:o liable to misinterpretation, or, inceeu, may

be regarded as having so much authority, th5t I really think it ie
a mistake for us to accept these invitations, hut.I nevertheless

appreciAe your asking me very mush.
Very truly yours,

49)
BENJ. STRONG'
Govsrnor.

W. S. Cousina,
Financial Editor,
InternAionll News Service, Ioc.,
21 Spruce Street, flew York, N. Y.

8S.LS







INTERNATIONAL NEWS SERVICE, INC.
21 SPRUCE STREET
NEW Y,_)RK,N.Y.

December 4th, 1924.

OEC

Benjamin L. Strcng, Gcverncr,
Federal Reserve Ban';,
New Ycrk City.

Dear Mr. Strcng:

Present indicaticns pcint tc a
very prcspercus situaticn fcr American industry,
American trade and American business, in the
coming seascn. The attitude cf the leaders cf
American finance and industries is prcbably more
confident and mcre cheerful than at any cther time
since the cicse cf the war. But the prcblems
which have been ccnfrcnting American business have
nct all been solved and there are still a number
cf important handicaps in the path cf industrial
prcgress.
',7e are very anxicus tc secure fcr

the millions cf readers cf International News Service,
an expressicn cf the views cf business leaders ccncerning the cuticck fcr American business in the year
1925.
This is a courtesy that ycu have rendered us
more than once in the past and it is because cf its
great value and the keen appreciaticn by which it
is received by newspaper readers, that we are asking
ycu tc favcr us again this year.
Will ycu kindly write us briefly just
hcw ycu feel abcut the business situaticn fcr the
next year and particularly hcw the country shculd gc
abcut solving the prcblems which still lie befcre us.
If pcssible, we shculd like tc have this material as
soon as pcssible and net later than December 24th.
It is pcssible that ycu are preparing such a statement
fcr general circulation and if sc, will ycu favcr us
with a ccpy
Thanking ycu fcr past courtesies, we are,
Very truly
INILONATIO

curs,

CE

By-

Financial Editcr.
7SC /KSB

!:i24

December 4, 1ki24.

My dear Pr. .)chneider:

replying to your note of the at instant, i tear that it
van net he noseible for me co propmre the Pirtle ls you tare good
enough to

itIC re to write for the Annual Fin'nci%1 end Busiu«-)es

Revi ew.

StFctetrents of this sort from offictre of this conk i.
naL.ur1 of

p.ro)hesy of shat may he',,,;:en in prict,&, in Lb:: money

market, eto.., are so 1.iable co misinterprett.tion or, indeed, say

regarded aa hi.tving so 7.uch authority, that I really think it is

a mistake for ue to accept these invitatione, gut I nevertheless appreciate your &siting me very much.

Ve:y truly yours,

EDI . STRONG

Governor.

F. Schneider, Jr. Eye,.,

Financial Editor, hew Yon.: Lvening Post,
hew York, Ai. Y.




20-24 VE5EY STREET. NCW YORK. N.Y.

ONE WHITEHALL 9000

xetia

art

FOUNDED 1806

C.V

vast

)1,?kl!,

DEC /"
4.7t

1924
7,4

December 2,1J24
LAI

DEC 4 1924

Mr. Benjamin Strong, "governor,
Federal Reserve Bank,
City.

Dear Sir:

The 1vening Post is prennrinl., nfter its custom of the
eighteen years nest, to include in its Annual 7inancinl and
financial and business
Business Review brief statements on
outlook fro a carefully selected group of well-known financiers,
public men and economists.

de hope tc include your veiws, however briefly exnresred
in this symposium. tecordingly I rim enclosinc, n set of nueriee
that Indic' te the noints on which it nnpenrs to us that the rublic
shall be hnpny, however, if you
is most anxious to have li-ht.
ill use your on judgment ns to what should ,e the mein concideration, and trust that you will not feel restricted by our suggestions.

your
If, as we hope, you may feel disposed to give
views, we sho.ld like to receive them between now and December
when preparation for the special edition begins.




Very truly yours,

2inancial

IIIEPHONE WHITEHALL

20-24 VESEY STREET. NEW YORK. N. Y.

9000

11/111

goixrit IT:VertittgFOUNDED1901

QUERIES REGARDING THE BUSINESS SITUATION

1.

Do you expect a high rate of general business activity to persist during
What do you consider the chief stimulating influences?
1925?

2.

Do you see any factors likely to cause a set-back to business during
the coming year? If so, what?

3.

Are commodity prices likely to go lower during 1925?
Or to remain in general where they are; and why?

4.

Do you expect firmness to develop in the money market during 1925, and
What are the controlling factors likely to be?
to what extent?

5.

How do you expect the European situation to affect American business
during the coming year?

6.

What attitude do you favor our Government taking with respect to the
foreign government debts owed to it? What principles should be followed
in framing terms for funding these debts? Do you believe that the
basic principle of the Dawes plan - that is, adjustment of the obligation to the debtor's ability to pay - should be applied to these debts?

7.

Is the labor situation in your community satisfactory from the viewpoint
of the employer?




: ::

Or to advance?

NoverIber 24, 1924.

kty dear Mr. fing:

four telegrpm Psxing for several butylred woras ex-

pre:ising rty opinion on tne possibilities for

invert s of

Iliropenn ms.nufacturee to this country, is just received.

My time is so fully occu?ied taid I ss so 'wane to
exprc66 opinion& on such mattcre ce thie, that I feel obligee.
to Leny ay elf the opportunity of writing something for yo,ir
Poabibly at pt time of more 1.isure I could manage

to ao it.
The.ratine, you, I be to remain
Very

L..

ii. King,

MAnagin6

'

ha.gazine or *all Street,
42 Brolditety, New Toric.
BS.L5




yot,r6,

Form 1201

WEATE

CLASS OF Sitilkleg
TELEGRAM

DAY LETTER

BLUE

NIGHT MESSAGE

NITE

T LETTER

If

I

app

UNION

TEL

of these throe symbols

fter the chietk-(numbey ft

wort . his is a telegram. Otherwise its character is indicated by the

J

symbol appearing after the check.

(.3

NEWCOMB CARLTON, PRESIDENT

..74

e';°'

in

SYMBOL

TELEGRAM

BLUE
NITE

NIGHT LETTER

AM

DAY LETTER
NIGHT MESSAGE

WESTERN UNION

NL

CLASS OF SERVICE

NL

If none of these three symbols'
appears after the check (number of

words) this is a telegram. Other-

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

wise its character is indicated by the
symbol appearing after the check.

The filing time as shown in the date line on full-rate telegrams and day letters, and the time of receipt at destination as shown on all messages, is STANDARD TIME.

Received at
7.128CC 2M 24 NPR 6 EXTRA

NEWYORK NY NOV 22 1924

57

BENJ STRONG

FEDERAL RESERVE BOARD 15 NASSAU ST NEWYORK NY
WOULD APPRECIATE SEVERAL HUNDRED WORDS YOUR OPINION ON POSSIBILITIES

FOR LARGE IMPORTS OF EUROPEAN MANUFACTURES TO MIS COUNTRY
E D KING

MANAGING EDITOR MAGAZINE OF WALL ST

CkNOWLEDGED
NOV

433P

1924

T1


http://fraser.stlouisfed.org/ OU
Federal Reserve Bank of St. Louis

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s/C,

Ir Al +77,,




eptember

17, igP4.

kr. sianthrop B. Grsnc4,
nitcr
Veue,re21 ;.euerve 3wik,

My ue'r NI-. Greene:
was iezviod cuthq for EV).M.

Governor :Arcing
thkye'

JOEi.tice rrom L.ns bunic Lexed MO tr) trnault. 60 full the

ttacb.ed,s-tstameut, i.repared in re...onse to yuur letttl. of

September 1?.

He hopes tile ,st:tem.,:nt 'ALL serve your

purpose.
truly yours,

14.11DL.FH 3URGESS
Assistiint Feder .5.1 neserve regent.

fi.

Enc.

leRasit

1 ef

7i, cry

measure the''value of matters commercial in
It is the ,,mericAriwsbit
vaiuticin for thelrede/4Was rye Zystem Aoulo enlighten critics
such
dollars.

It would 8h w vast "ecenomy" in thf interest

and ileacc friends of the' l-vtm.

mtchwnieul and

Erewt s ving aftcroed t

It would

re;:.1wcf,

the fystr.,m,

operwtiones

..cattreC tani uneccdomic,.1 ferhtions

elclAtrdd bunks, - such ws check end

through the unorLanize..11 iirocubure

tl:L currency, the tranaaction of fintricial overstions

other collection::,
with the Lub.i.:

municikal gov,i,rnmfrnt.

an

thc natio

account of the notion,

thr Tr..J.weury.

Mwny ethers cou:d be fnam.i.

The total in

dollars would be imi,rive.
Imi.ortf,at ws this is, the greater value cf the system ti.:La been the

treinsquilliv of mind, and the stwbiiity of buaine00, which it has made iciesible.
those: to be :acted under the caption "What

In this respect its accomi:lishments

has not happened."
We fought a war ten time., ue oxpensive ec the Civil t;ar rithout iseuing
any irredeemeb:e

cu, rency.

re pe;e the only major country in the world to

continue on a gold b:.sis.

In a Ffet-war leriou of tconsmic dislocation !la have avoided ..nything
in the nature of a tt.niel, and t v

h:

peice fluctuztion ;Aid ;cc& financisl

dieturbwnce than any other country in the world)4-.
have abmorbed without uric. inflation a tremendouz. flood of gold into

this country, hnounting since IVO to a billion and a. hell dcllara.
Since the ehtablishment cf the Federal r,eaerve System we have kvoided

that seaeonhl money etrinEfncy Ahich in the oic dLye forced interest rates to
their higheet points in the month: Then the farmer sorrowed to move his crois.
re have achieved Eoch fluidity of funds between the etc*.




the we et that there

ie never d premium on Ns York or Chicago or Can FIanclisco funs

Alpherfi in

the country.

We have been largely freed from the exp
which .exchane, chorL.as on c'r.ecks burned tht.

se, d

jr

d risk with

toitegtete,gr buskneas, tr!msacw

tion.
°P4I`CciN

In the Fwd rr i MIEEnrc, Zyst,m at have secure

eifr

t a

it

swift ,Iisaster which foilewe6 t.ny unusual fin,lnciz:i dieturbL.n

rigld Loiking sistm.

In the Feueza.. neseivk

3f.stem 4.

inat tho

um.itr the old

-rLve ,,rovid.,, for us

a smckAhly aorkini: mechaniem 4hich reliev.te ue from the constant irritations
which ..4re the regu't)r

r-cemi.anim,,nt of the old ch:.otio disorganized banking

by the stability it
movel

..fforrie to buoins

the Reserve System law; re-

grebt cuuse of anxiAy from ail classes of businens and workers.

has ;roiuced




earn of mind .nd tr!..nquil4ity which never before k.xistocl.

It

FEDERAL RESERVE BANK

MISC 4

OF NEW YORK

OFICE CORRESPONDE
To_

.

DATE_
SUBJECT:

Dr. Burgess

Governor Strong

FROM

_"/

Do you this

°61/;SI5P-0\\\\ .4);4

improvement, in place of the marked 'eortion

it. wdOIA
-4,

on thu second

some&Wettge

64 to su,stitute

tin6 that aside from material

17i

'

I

r.),

values, the Federal hes!WOOpstem; tiRAfe stab lity which it affords to business,
really has removed a great caueet-pf
workers.

It has produced an ease of11116.4wt

in the days of our former rigid system.

att.




m all classes of business :Len and

tranquillity which never existed

-"-^,mr

September 15, 1924.

y dear ,ar. GrecnaL

Your favor of Se.tcyner 12 is juet received.
oocible for go2

,a-ci.:are a ebort lettcx prior to ,ny lce.vinE; for

..es t on ThorLday, I All 1.e very 61ed tc do sc.
I cannot Lo it, you eby ftel r.i1

Yours very trul),

Lend. strong
Governor

Mr. idnthrop B. Greene,
Editor !,--C Fook,

Federal Reserve Bang,




If I fine

irlg to tsk coat one else in the

buil: in :14,

Fhilacelphi, P.

If it is

IL(
FEDERAL RESERVE BANK OF PHILADELPHIA

OFFICE

o.

THE

CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT

September 12, 1924.

Mr. Benjamin Strong,
c/o Federal Reserve Bank,
New York, N. Y.
Dear Sir:-

November 16th of this year will witness the tenth anniversary
of the establishment of the Federal Reserve System - a decade of banking
achievement unparalleled in the history of our country.
It is therefore
fitting that special note be made of this anniversary through a symposium
of ideas as to the value of the System to the country.
such expressions of opinion from a number of prominent bankers and business
men, who have either been identified in some way with the System or are in
a position to realize its value to the industry and commerce of our country.
The replies will be printed in the November let number of the 3-C rook,
which is our house organ.
Because of the fact that you have been so prominently identified
with the System, it mould be singularly appropriate to have a brief expression of your views regarding the System as you view it to-day.
Will you
not therefore be kind enough to send us a brief letter summarizing your
opinion?
We assure you it will be very much appreciated.

Very truly yours,

Editor 3-C Book

WBG*HL




5.

MISC. 4. 1- 100M -9 -23

FEDERAL RESERVE BANK.

OF NEW YORK

OVICE CORRESPONDENCE
To
,FROM

DATE.

June_ 16,

1 9 2.A.

Governor_Strang

SUBJECT: Letter for the Annuvereary Number

Mr. Snyder

of the Japanese-American

Would you like to kdd to the letter, after the first full paragraph
on page 2, the following, which I have just turned up this morning:
"An interesting sidelight, upon this quite astonishing development
is that Japan is now third among the nations of the earth in the amount of
electricity consumed, exce6ding in this repard even such large countries as
Great Britain and Franco, and surpassed only by the United States and Germany."




ri
)

1.i)c

June 11, 1924.

My dear !1r. Kozel:

My absence in Weehington reoantly has unavoidably delayed a
reply to your kind letter of May 31.

It it a rare thing indeed for me to write anything for the

newspapers, but the circumstances are such that I am complying with your
request this time and enclosing a short article for the anniversary
issue of the Japanese-American, which I hope is of the sort to meet
your needs.

I am unable, however, to send you a photograph as I have

not had one taken for a long time, and besides that, I have a constitutional objection to having it published, which I know you will
understand.

If the article enclosed is not such as you can use, plem_se

do not hesitate to consign it to the editorial waste basket, for I
nave no pride whatever in such matters.
With kindest regards, believe me,
Tours very truly,

Hr. George J. Kozai,
The Japanese-kmericn,
414 * 8th Ave.,
New Teri,. City.
3S. MV

ono.




1"/..4fr."




2

its manufactured products abroad for raw materials.
The ,,rovrth of manufacturing and trade has been reflected in the

rise of great industrial centers and the creation of a remarkable system of
transportation, including railways, ports, and a mercantile marine.

Banking,

currency, insurance, and other parts of the financial structure have been
greatly strengthened.

lodernizing of the economic structure has made possible

a rapid increase in the country's wealth, and a general gain in the standard
o f living.

'bile the, accomplishments of the people of Japan have been unique in

history, there remains one

field or

endeavor in which much can still be accom-

nlished to make modern Japan a well balanced organization for economic and
social well being.

The transforms.tion of the ration fro

cultural to equally important industrial

development

should not neglect the

need for corresponding social readjustments suitable to the needs and happiness
of an industrial population gathered in large cities, as distinguished from an

agricultural population scattered throughout the

islands.

The social life of

city dwellers depends just as greatly for happiness and health upon sound social
institutions as doesnindustrial welfare upon the development of well organized
industrial plants.

The enlargement of opportunity for the people of Japan

to enjoy healthy, stimulating social intercourse through religious, athletic,
musical, educational and other organizations is
the creation of city life.

a.

necessary accompaniment

of

Possibly here is where the giant strides of Japan

towards wnrld success have ou' distanced the collateral development towards

social and community advancement.
In the rise of Japan to her position as a world power, her relations
with the United States have been particularly close.

America's early part in

opening Japan to world commerce, her traditionally friendly attitude which must
not be impaired, the interchange of tourists and students, and the uniform






3

ESTABLISHED rgoo

Phone Chelsea 4768

ACkNOWLE

Japatitor-Aturriran
(Formerly JAPANESE AMERICAN COMMERCIAL WEEKLY)

414 EIGHTH AVENUE
NEW _YORK

JUN1 I 1924

---

R

cs7

3enjamin Strong,
15 Nassau Street,
New York, T. %Y.
7y dear 7r. Strong:

e herewith beg leave to inform you that this being the
Twenty-Fifth year of our paper's existence we have found
it 3n event that shall be commemorated to the public
service, for
it w-s founded, by placing within its
columns articles written by some of the most prominent
of American citizens.
re, therefore, request you, in behalf of this service anr1 for the better understanding betreen America and Japan, to kindly contribute to our pages
which, ye one confident, will serve a most happy purpose
at thistir-e when the future of ;merico- Japanese relations
forebodes of no substantial good-will.
Our anniversary issue is intended to be published in July
and it is needless to mention that a ready response to this
request will be greatly appreciated.
T!ay we add here that we would prefer an article of some 800
words or less accompanied, if possible, by your photograph?

Trusting that you will generously comply and taldnp this
opportunity to express my deepest rogrds, I am, my dear
"r. Strong,
Yours respectfully,

,-4 ge J. 7(
)73bTisiler.




ED

WSC.3.145M-9-23

FEDERAL RESERVE BANK

OF NEW YORK

OatICE CORRESPONDENCE
To

Governor Strong

_S-D-i ASKufif

W. R. Burgess

FROM

February 15,

DATE

mut _'7.15
FEDERAL RESERVE BANK
OF NEW YORK

Some weeks ago I had a talk with a. Mr. Saunders of the

American Magazine and subsequently with others of the editorial

staff of that magazine, who have been contemplating an attack
upon you.

I succeeded in holding them off until you should

return from your holiday and have a chance to get reacclimated.
What they went to uo is get a writeup of you to include

in the American Magazine in the series with which I am sure you
are familiar.

I am attaching herewith copies of the magazines

which contain articles about Mr. Mcliugh and Mr. Mitchell.

They

have also written up, among others, the following financiers:




Edwin R. Stettinius, of J. F. Morgan & Sompany
Albert Wiggin, Chase National Bank
.Frank A. Vanderlip
Charles Schwab
Charles H. Sabin

A. Barton Hepburn
William A. Nash

Walter E. Frew, president of the Corn Exchange Bank
George M. Reynolds, Chicago
James B. Fargan, Chicago
Frederick H. Goff, Cleveland
Judge Gary

192 4.

NEW YORK COMMERCIAL

EVERY

BUSINESS
MORNING

1797E0
1287m YEAR

RUSSELL R. WHITMAN. PRESIDENT

ORIAL DEPT.

TELEPHONE
7300 CORTLANOT

No. 38 PARK ROW - NEW YORK

._ALTER B. BROWN. EDITOR

CHARLES R. BARTH. MANAGlipO.
,

January-10 1924.4%.

Xr.
(2,

Benjamin Strong, Esq.,
Governor,
'1..4
Federal Reserve Bank of ae, Y
New York City.

"4

,

-

::"?

c.....;/

T.

ril

.4"

ry dear Mr. Strong,
The New York Commercial will publish a bank acceptance
edition before the end of January.

1 brief resume of the banking outlook by you would add
materially to the value of this edition for our large list of
banker subscribers. Llay we have such a survey from you for
publication under your sirnature within the next two weeks?
e would appreciate your photograph for publication in
this issue.

ter,

Thanking you for your anticipated courtesy in this mat1 remain, my Dear Mr. Strong,
Very sincerely yours,

zoezta,e,Z
Louis Durant Edwarr7s,
City Editor.

eka
&novo

110-

tuAA;

ff

LDE/tb



lv-vrvil-

S

December 11, 1923.

My dear Mr. Schneider:

I received your kind note of December 7, asking me to contribute
an article to the Annual Financial and business Feview of the New Yorl:
Evening Poet.

These queetions seem to bear so directly upon the policy

of the Reserve System that 1 have always felt it unwise to ma.',,e tte kind

In fact, discussions of these ratters - as they relate to the policy of the Federal

of answer that is really required to meet your wishes.

Reserve System as a whole - are ouch better when coming from the Federal
Reserve Board.

I think I have written you this before, E.- rut hope that you understand that it is not a lack of desire, but sirN-.1y a question of ;-ropriety
which com;,ele me to send this answer.

Yours very truly,

Mr. F. Schneider, Jr.,
Financial Editor, New York Evening Post,
LO Veeey St., New York, N. Y.
BS.M!4




20-24 VESEY STREET. NEW YORK. N. V.

TELEPHONE WHITEHALL 9000

Nay- gurit 7gttatittiff

111

t

FOUNDED 1501

December 7, 1923.

ACKNOWLEDGED
DEC 1 1 1923

Yr. Benjamin Strong, Governor,
Federal Reserve Bank,
New York City.
Dear Sir:
The '7,vening Post is preparing, after its custom cf the seventeen years past, to include in its Annual Financial and Business Peview
brief statements on the financial and business outlook f-om a carefully
selected group of well-known financiers, public men and economists.

We hope to include your views, however briefly expressed, in
,ccordingly I am enclosing a set of queries which indicates
this group.
appears to us that the public is most anxious to
the points on which
shall be happy, however, if you will use you: own judghave light.
ment as tc what should be the main consideration, and trust that you
will not feel restricted by our suggestions.
If, as we hope, you may feel disposed to give us your views,
we should like to receive them between now and December 17, when prep!,ration for the special edition begins.

Faithfully yours,

Enc.




Financial Editor.

a

NI.

TELEPHONE WHITEHALL

9000

20-24 VESEY STREET. NEW YORK. N. Y.

Ct 11 (nit `47-:

ening Vuot

FOuNDED1801

QUERIES REGARDING THE BUSINESS SITUATION

1.

Do you expect a high rate of general business activity to persist during 1924?
What do you consider the chief stimulating influences?

2.

Do you see any factors likely to cause a set-back to business during the coming year?
If so, what?

3.

Are commodity prices likely to go lower during 1924?
remain in general where they are; and why?

4.

Do you expect further ease to develop in the money market during 1924?
are the controlling factors likely to be?

5.

Is the labor situation in your community satisfactory from the viewpoint of
the employer?

6.

What attitude do you favor our Government taking will respect to the foreign
government debts owed to it?
Would you advocate early pressure upon such
foreign governments to mee-, their obligations? Or would you advocate a course
of settlement toward them analogous to that arranged with the British government, making allowance for their lesser economic capacities?

7.

Do you feel that German reparations are so interwoven in the whole interallied debt fabric that America should, for her own interests, be willing to
consider and deal with these questions as one?




Or to advance?

Or to

What

MIF

FEDERAL RESERVE BANK
OF NEW YORK

'.1 SC.

CORRESPONDENCE

DATE_ApriLlat

_19271,

SUBJECT:
Frio. 1

Miss Bleeaker

Mr. Carl Snyder asked me to hand you the attached copy of
Governor Strongts manuscript.




192_

SIXTY -SEVENTH CONGRESS

T. MC FADDEN. PA., CHAIRMAN.
LESTER D. VOLK. N. Y.
.R H. DALE. VT.
T. FRANK APPLEBY. N. J.
AD 4. KIWI. ILL.
HENRY F. LAWRENCE. MO.
0. SCOTT. MICH.
E. HART FENN. CONN.
SW
J9 P. NELSON. WIS.
OTIS WINC,. ARK.
JAMES G. STRONG. KANS.
HENRY B. STEACIALL, ALA.
L. S. ECHOLS. W. VA.
CHARLES H. BRAND,GA.
EDWARD S. BROOKS. PA.
W. F. STEVENSON. S. C.
ROBERT LUCE. MASS.
CLARENCE MACGREGOR. N. Y. EUGENE BLACK. TEX.
T. ALAN OOLDSBOROUOH, MO.
JAMES W. DUNBAR. IND.

PHILIP 0. THOMPSON. CLERK

AM-releiLISE OF REPRESENTATIVES
vimbettLUITAFE OLL BANKING AND CURRENCY

ibikil
NYE BAWF
WASHINGTON
4, MW Yon

April 20, 1923.

Mr. L. F. Sailer,
Deputy Governor,
Federal Reserve Bank,
New York City.
°y dear

ft

r. Sailer:

Your letter of April 17, enclosing copy
of address delivered by Governor Strong at Chicagoj
Cecemb-e-f-IT,
Eas-been received 'during Mr.
McFadden's absence from Washington. He will appreciate very much, indeed, your thoughtfulness in sending this to him.
I shall bring it to his attention
at the first opportunity.

Yours very truly,

b-b




Secretary.

April 17, 19E3.

My dear yr. McFadden:
1

am

enclosing herewith a copy of the address delivered

by Governor Strong before the Conention of Amerc.in Farm Sereau
Federation ir. D.acember last.

ttis a very interestin

i

sire that you will find

address.

We enjoyed your visit this morning and ho?e that you

will always fel free to

to

in and see us Olen you exe in hew

York and give us a little of your tiJie in discussing some of the
problws which are so vit,,,1

interestini: to as all.

liith kindest persaal regards, I am,
Very truly youra,

L. F. SAME,
Deputy Governor.

Honorable Louis T.
1703 nr," Street,

Wawa:16ton, D. C.




'iscFadden,

Amen
ARO
SNE

J. E. L.

SSIGNOL

D. A. MCCABE

0. M. W. SPRAGUE

'Economic Review

(Pti %Tithed by_ t4 American Economic Association)

40'
222c1lAiieOlver ROA Cambridge 30, Mass.

W. W. STEWART

4A

DAVIS R. DEWEY. MANAGING EDITOR

°-

Ats-

4A0*

ce

March 17, 1923.

Mr. George Beyer, secretary,
Federal Reserve Bank,
New York City, N. Y.
My dear Mr. Beyer:

Your letter of March 15th with the copies of
Mr. qtrongls addrec- at the Convention of American Farm Bureau
Federati-)n, Dec. 13, 1922, has been received.
Thank you for your courtesy and prompt attention
to my requeet.




Youre very truly,
cipLA.,)
.




I

ir 60
1`,
SPEARERcS BUREAU
MA.
'J R

AIDWAle NV.

Mt

TELEPHONE. 6343 BRYANT

Hon.Benjamin Strong,

April 16 th,1923.

Governor of the Federal Reserve Bank,

New York City.

Ly dear 111r.Strong :-

Some time ago I wrote you that I am continually
of inquiries from Secretaries of Boards of Trade, Chambers of Comm
and from Chairmen of Banuet Committees of National Commercial o
with whom I have been in negotiation during the past several yea
me to submit to them names of men prominent politically, for the p
of having these gentlemen deliver addresses at banquets, meetings

etc.- for a satisfactory honorarium monetary consideration.
I can say to you confidentially that on such occa
honorarium of from $100. to $300. net to you is presented, in add
traveling and hotel expenses incurred.

You perhaps have a message to deliver on the eco
The best way to d
your message is before such banquets or meetings, where prominent

or political conditions of the country today.

as semble.

It is to be understood and agreed that any and

engagements are to be first submitted to you for confirmation.

Let me impress upon you at this time the fact t

engagements will not commit your speaking except on occasions whe
you yourself choose the time and place; in other words, satisfact
your personal convenience. When I mention place, I mean that the
banquets, will be held in prominent hotels in New York City, Phil
and Atlantic City and would not reqtAre your absence longer than

at the most.

Should you wish to accept my proposal I would th

you to sug.7est to me the title of any address or adddresses (pref
three) you choose to speak upon.
I respec tfully refer you to the following gentle
regards to my reliability: Hon.James M.Beck, Solicitor General of

United States,Hon. Huston Thompson, Chairman,Federal Trade Commis
Hon. Bainbridge Colby, former Secretary of S tate ,Sena tors Borah, W
Walsh, Harrison, Lenroot and Harrison,Congressmen Kahn,Begg, Bead
Purnell, Rabbi S.Wise and Dr.S.P.Cadman.
I would appreciate an immediate response from
I am,
Sincere
TB/ JT




March 15, 19:,-3.

Lear Professor Levey:

I take pleasure in sending you herewith
three copies of the address which Mr. Strong made at

the Convention of American Farm 3ureau Federation on
Lee. 13, 1922, and which you were good enough to ask
for in your note of March 14th, received in Mr. Strong's
absence.

Yours very truly,

Secretary.
Encls. (3)

crofessor Lamle R. Dewey,
Massachusetts Institute of Technology,
Cambridge, Mass.

G3 :MM

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

-.AVIS R. DEWEY
'RROLL W. DOYEN
ilYD

VVV

7.

DEPARTMENT OF ECONOISIlit$

E. ARMSTRONG

MI

ITIN J. SHUGRUE
IIN H. SCHELL
ALD S. TUCKER
ILLARD L EEEEE AND

_

CAnip pRIDGE

MASS.

/1
1r1/0-(16

19"

firma }IA you

Ml.
kedef-_
19 Nass:,,

11

kvisignE

a

Is it posIble for L_ to secure a few
cokies of the Pddre.:,s anicr, you made before some
sc;ricultuia..,

Is_ociation in 1,ecerLber?

I should

like to use this in connection with one of my clas e




Your: ver,
ic 44-1

.

Fitts
(JAN

DER

RESOVE.
Ofw
tq
Peer

24,

1P23.

Dear fir. Saunders:

At ;Ir. Strong's request, i am sending you for your
information the encloseu copy of a letter addressed to Mr.

tours very truly,

Secretary to
Sea j. Strong.

L. Saunders,
c/o Ingerwoll -Rand Co.,
'N.

11 L-sroaelway, New York City.

Enc.
GB. Ml




January 24, i923.

Dear Mr. Dvis:
I regret to E.dviee you that I now find it will not be
iossible for me to prep.re the 1.aper for the Tenth National

Foreign Trade Convention.

My health h46 been such recently

.e to necessitate my taking, a couple of 3eakd rest, and upon my

return to the bnnk I fear I shall be pretty closely engaged for
some time.

So I eht.11 have to ek to ho excused.
It occurs to me tht Mr. James !Simpson of Chicago

could make an admirable adaress on the subject, if you .re able
to persuade him to r'o so.

Very truly yours,

BENJ. STRONG,
Governor.

Mr. O. K. Dforis,

Secretary, National Foreign Trade Council,
India House, Hanover Square,
New York City.




NATIONAL iFTYRIEIGN TRAIDM COUNCIL
INDIA HOUSE, HANOVER SQUARE

CHAIRMAN
JAMES A. FARRELL

NEW YORK

TREASURER
ROBERT H. PATCHIN

CABLE ADDRESS
NAFTRAC. NEW YORK

SECRETARY

TELEPHONE

0. N. DAVIS

BROAD 3712

ASSISTANT SECRETARY
EDWARD A. LEROY. JR.

January 22, 1923.

Honorable Benjamin Strong,
Governor, Federal Reserve Bank,
15 Nassau Street,
New York City.
Dear Governor Strong:

We were very glad to have yours of the
18th, indicating your willingness to accept our invitation to prepare a paper for the Tenth National
Foreign Trade Convention, on the facilities for foreign
trade through the Federal Reserve System.
I note that
you anticipate being able, within a few days, to give us
a definite reply.
We hope very much that it may be
favorable.
Faithfully yours,

OKD.DMS

Secretary.

TENTH NATIONAL FOREIGN TRADE CONVENTION, NEW ORLEANS, APRIL 25, 26, 27, 1923



FEDERAL RESERVE BOARD
WASHINGTON
OFFICE OF VICE GOVERNOR

January 20, 1923.

Dear Governor Strong:

The letter enclosed with yours of January 18th does
not seem to imply that you are to prepare a paper for the
Tenth National Foreign Trade Convention, but states that
"it seems that it would be most effective to have the paper
Apparently
prepared and delivered by a western man".
the Secretary of the Council is merely asking you for some
suggestions as to a speaker or a man who could prepare and
deliver such a paper.
I see no reason Nhatever shy you shoull not make such
suggestions as are asked and hardlir think it is neceseary
for me to delay answering until I can submit the matter to
the Board.

Dr. Miller is at home today, having suffered a little
set-back through what appears to be some sort of ptomaine
I talked with him over the 'phone, however, an
poisoning.
hour or so ago.
Am returning this morning to Mr. Jav copy of the report
of the New York Federal Reserve 'Bank, with a very few criticisms su_c_77ested by our Mr. Stewart.

'

Yours very truly,

Acting Governor.

Mr. Benjamin Strong, Governor,
Federal Reserve Bank,
New York, N. Y.

P.S.

The letter from the secretary of the National Foreign
Trade Council is returned herewith.



VZ

DEPARTMENT OF
AGRICULTURAL ECONOMICS AND
MANAGEMENT

CORNELL UNIVERSITY

NEW YORK STATE COLLEGE OF AGRICULTURE
ITI1ACA.:E>YORK

ItG. F. WARREN

G. N. LAUMAN

3t14

E. BOYLE
G. P. SCOVILLE
.1.

AL

E. G. MISNER
W. I. MYERS
C. E. LADD




'CAI DEAN
87,

C. V. NOBLE
L. J. NORTON
V. B. HART
L. SPENCER

C. H. MERCHANT
M. P. RASMUSSEN
B. W. BARKAS

I. F. HALL

January 19 , 1923.

Mr. Benjamin Strane,-,
Cr)

ve rno r ,

New York.

Federal Reserve Bank,

My de ar Sir:-

Thank you for the copy of what you
"pre pare d for the American Farm Bureau Federation .
It is of aid in our IF!) rk
Very truly yo urs,

CPTL S

January 16, 1923.

Dear Mr. Davie:

I am indebted to you for your kind letter of January 17, inviting ;to to precare a 128.ner for the Tenth Convention of the Notional
foreign Trade Council.

I as riot quite certain yet whether it will be possible for
me to be in New Orleans on that date, but will be able to write you in
the course of a week, and I hone thLit the delay will not in any way
inconvenience you.
Yours ver truly,

Benj. E',7c--.z,

G vernal'.

141r. 0. K. Tiavis,
Secretary, National Foreign Trade Council,
India House, Hanover S:uare,

Now York City.




055 t\
t.N.,

1s1+0
-131.

January 18, 1q2-

Dear Mr. Platti

letter' 'rom the sbcrotarY

tbs 'tational

il which explains itself.

stresses re so such as rre7aring veers and

d my immediate inclination is to decline t'lle

e other. hand, I .e.o not rant to

so if you

hin1c. there is any advanta3o to be gained lb

nr. and makin

such an address as they sugpst.

me '_once how -for,

yOur associates feel.

Icurc -Tory truly.

Qtror.,z,

Governor.

tt,

al reserve Board,




MEMBERS OF COUNCIL
CHAIRMAN
FARRELL.
TREASURER
ROBERT H. PATCHIN.

NEW YORK
NEW YORK

SECRETARY

C. K. DAVIS.

NEW YORK

NATIONAL
FOREIGN TRADE
COUNCIL

ASSISTANT SECRETARY
NEW YORK

EDWARD A LEROY. JR..

F. ALEXANDER,
TACOMA
J ULIUS H. BARNES.
NEW YORK
A. C. BEDFORD.
NEW YORK
WILLIS H. BOOTH.
NEW YORK
M. C. BRUSH
NEW YORK
R. M. CALKINS.
CHICAGO
EDWARD F. CARRY
CHICAGO
CHARLES LYON CHANDLER. PHILADELPHIA
HENDON CHUBB.
NEW YORK
WALTER L. CLARK.
NEW YORK
H

E. A. S. CLARKE.

NEW YORK

HOWARD E. COLE.
NEW YORK
C. P. COLEMAN.
NEW YORK
MAURICE COSTER.
NEW YORK
MINNEAPOLIS
JOHN CROSBY,
F. G. CROWELL.
KANSAS CITY
J. G. CULBERTSON. WICHITA FALLS. TEXAS
.1. J. CULBERTSON.
PARIS. TEXAS

J. S. CULLINAN.
ROBERT DOLLAR
.1. J. DONOVAN.
J. WALTER DRAKE.

7iatlis Emma
Ea:re:oyez Sztattre, New York City
CABLE ADDRESS- NAFTRAC" NEW YORK

HOUSTON

SAN FRANCISCO
EIELLINGHAm, WASH.

JAMES A EMMONS
M. L. FERGUSON.
S TANLEY G. FLAGG.JP..

DETROIT

PHILADELPHIA
NEWPORT NEWS

PHILADELPHIA

.1. ROGERS FLANNERY.
P. A S. FRANKLIN.
F. ABBOT GOODHUE

PITTSBURGH
NEW YORK
NEW YORK
NEW YORK
ST. PAUL

H. 0 HERGET.
LOUIS W. HILL.
CHAS. A. HINSCH
J. T. HOLDSWORTH
M. H. HOUSER.
HENRY HOWARD.

" Urea ler prosperity through greater foreign trade''

January 17, 1923.

DANIEL WARREN.
FRANK O. WETMORE,

J. N. WILLYS.
THOMAS E. WILSON.
DANIEL WING.
W. H WOODIN
CLARENCE M. WOOLLEY

CINCINNATI
PITTSBURGH
PORTLAND. ORE.
CLEVELAND




MEMBERS OF COUNCIL

EDWARD N. HURLEY.
CHICAGO
F H. HUXLEY.
NEW YORK
ERNEST LEE JAHNCKE
NEW ORLEANS IN
CHARLES E. JENNINGS. S NORWALK. CONN.
ALBA B. JOHNSON.
PHILADELPHIA
FRED I. KENT.
YORK
J. A H. KERR.
N ANGELES
LOS K W
K
WILLIAM H. KNOX.
NEW YORK
FREDERICK J. KOSTER.
SAN FRANCISCO
JOHN S LAWRENCE.
BOSTON
NEAL M. LEACH.
NEW ORLEANS
H. C. LEWIS.
NEW YORK
SAMUEL MATHER.
CLEVELAND
CYRUS H. MCCORMICK
CHICAGO
JOHN MCHUGH.
NEW YORK
J
R. MCWANE.
BIRMINGHAM
EDWARD G. MINER.
ROCHESTER
CHARLES M. MUCHNIC.
NEW YORK
BARTON MYERS.
NORFOLK
M. A. OUDIN,
SCHENECTADY
A. B. PAXTON
WHEELING. W. VA.
LEWIS E PIERSON.
NEW YORK
WILLIAM PIGOTT.
SEATTLE
WM. COOPER PROCTER
CINCINNATI
FRANKLIN REMINGTON.
NEW YORK
WELDING RING,
NEW YORK
JOHN D. RYAN.
NEW YORK
W. L. SAUNDERS.
NEW YORK
CHARLES A. scH:EREN
NEW YORK
CHAS. B. SEGER.
NEW YORK
G
F. SULZBERGER,
NEW YORK
F. H. TAYLOR.
PHILADELPHIA
S TEWART K. TAYLOR.
MOBILE
E. P. THOMAS.
NEW YORK
F. A. vANDERLIP SCARE,JPOUGIT-ONHUDSON
NEW YORK
CHICAGO
TOLEDO
CHICAGO
BOSTON

NEW YORK
NEW YORK

Hon. Benjamin Strong,
Governor, Federal Reserve Bank,
New York City.
Dear Governor Strong:

In arranging the program for the Tenth National
Foreign Trade Convention, which is to be held at New Orleans on April
25, 26, and 27 next, we are desirous of including a paper which will
present the foreign trade facilities of the Federal Reserve System.
Ae you know, therl has been more than a little
criticism of the Federal Reserve System on the ground that it does
not in actual operation provide the facilities for foreign trade which
many of its critics think it should provide.
Some effort has been
made to meet and answer this criticism, but the approaching Convention
se -ems to offer an opportunity for a paper that will go further along th
this line and that will be informative and helpful.
It se-me to us that such a paper should be prepared with special reference to the service that the Federal Reserve
System can render in the export of agricultural products.
With this
in view, it seems that it would be most effective to have the paper
prepared and delivered by a western man.
When this subject was under
discussion in the Committee of the Council in charge of the program,
it was suggested by Mr. W. L. Saunders that you might be able to give
We shall much appreciate
us some valuable suggestion as to a speaker.
if you can do so.
Faithfully yours,

OKD.DMS

Secretary.

JS
M

11

MISC 41-814-8-ft

FEDERAL RESERVE BANK
OF NEW YORK

CROSS REFERENCE SHEET

FILE No.

7

SUBJECT

SEE




aio,q

FILE NO.

LETTER OF

42eA44;Pv *43.S.

DATED
7g,3

ai,aAittl/-1A-

J71,04aA4-4-;-0-"'

frpt.e/i/c-c-444,

"ex-

January 13, 1925.

Dear

Mr. Newcomer:
On my return to the office this morning, I find your

kind letters of January 9 and 11, to which my secretary replied
in my absence.

It really will be impossible for ire to
Goldsboroughle kind

accept Vr.

invitation, much as i should like to AO co.

I have had some trouble

with my throat

for t`,.. east four or five

weeks, which will make it. Quite impossible to speak at any meetings
fear for sometime.
associates

won't you convey my regrets to

and express my

warm ax,,reciation of

their

your
courtesy in

asking me to address the meeting of the Merchants & Vanufacturers
Association.
I beg to remain,

Yours very truly,

lir. Waldo Newcomer,
President, National
Baltimore, Md.




Exchange Bank,

January 13, 1923.

idly

dear Mr. .

Go ds

ro ugh :

On my return to the office this rornin7,

1 find your letter

of January 8, to which my secretary has replied during my absence.
Unfortunately, i have had some trouble with my

throat

the past few weeks, which will make it impossible for me to
make any addressee, and F have had to cancel two or three enaagements
on

ceGunt.

it would be 7. pleasure

to attend your

meeting and enjoy

the hospitality of your association, but i a., unable to
Please accept my

warm thanks, and my regret that it will be ispoetrible

for me to attend.
Yours very truly,

fir. A. 8. Goldstx)rough,
General Secretary, Merchants k Manufacturers ASE0 C..
Baltimore, Md.
BS.M11.




do so..

TH E

NATIONAL EXCHANGE BANK
OF BALTIIVIOREND.
ORGANIZED 1865
CAPITAL.SURPLUS AND UNDIVIDED PROFITS OVER Two AND ONE HALE MILLION DOLLARS

WALDO NEWCOMER,
PRESIDENT

January 11, 1923

Ir. George Beyer,
Secretary to Mr. Benj. Strong,
federal Reserve Bank,
New York.
My dear Mr. Beyer:
I have your letter of 10th inst. and learn with extreme
regret of Mr. Strong's indisposition.
I sincerely hope that he will improve rapidly, both out

of D personal interest in Ir. Strong and also from the somewhat more
selfish point of view that I hope by next week
accept Ir. Goldsborough's invitation.




Very truly yours,

he will feel able

January 11, 1925.

Dear 4.r. McGui re :

Complying with your rec:uest of January 10, I take

pleasure in sending you under separate cover, six printed
copies of Governor Stronge address recently delivered before
the Convention of the American Farr Bureau Federation.

Yours very truly,

Secretary to
v
r Strong.

Yir. Constantine E. McGuire,

Institute of Economics,
28 Jackson Place, Washington, D. G.
c /-:s

GB. ?Di




Trustees
iEdwin A. Alderman
Robert S. Brookings

Officers

Institute of Economics

I,:. S. Brookings,
President

Arthur T. Hadley,

26 JACKSON PLACE

Vice-President

David F. Houston,
Treasurer

WASHINGTON, D. C.

Arthur T. Hadley
David F. Houston
Charles L. Hutchinson
David Kinley
A. Lawrence Lowell
Samuel Mather
John Barton Payne
Bolton Smith
James J. Storrow
George Sutherland

Harold G. Moulton

Charles D. Walcott
Paul M. Warburg

Director




Whitefoord R. Cole

January 10, 1922.

My dear Governor Strong:
I have read with the greatest
interest your address of December 3, at
Chicago, and I am writing to inquire
whether you could kindly furnish me with
a half dozen copies which I believe I
could put to very good use here.
I assume
that the address has been printed in pamphlet form..The copy I saw was in the
December issue of the "Acceptance Bulletin"
in one of the departmental libraries here.

Sin erely your)
fi

Constantine E. McGuire.
Olesump-44-ab.

The Honorable Benjamin Strong,
Governor of the Federal Reserve Bank of New York,
Federal Reserve Bank, New York City, New York.

CEM:D

s

9

January 7._0, 1923.

My dear Mr. Goldsborough:

Your kind letter of January 8 has been received in
Mr. StronAT's absence, and the enclosed copy of a letter to Mr.
Newcomer, which I am sending to you for your information,

explains itself.
lours very truly,

Secretary to
Yr. Ben j. Strong.

Mr. A. S. Goldsborough,

General Secretary, Merchants °r. Manufacturers Assoc.,
Baltimore, Md.
Enc.
GB.MM




FEDERAL RESERVE BANK
-OF

.Adk.iri,Akiwr.A.

OFFICE OF

CHAIDILAN OF THE BOARD
FEDERAL REsERvE Aox T.




January 10, 19e3.
(11

t$11

Hon. .)en,jamin Strong, Governor,
Federal P.eserve Bank of New York,
New York, N.

Y.

Dear Governor Strong:,

I wish to advise that I have received from the

American Acceptance Council, 120 Broadway, ::ew York, copy

of address delivered by you at the Conventim of Irrlerican
)arm Bureau 2ederation, December 13, 1922, rthicaro, Ills.

I shall read the sane with a Treat deal of int-

erest and pleasure.

e ry truly yours,

or,

"0

JAN 15 1923
fat".

MI*

January 10, 192S.

Yy dear Mr. I4wcomer:

four letter of J.n!..ary 9 as well as the one of January
8 from "r.'r. Goldsboroug,h, General Secretary of the "iierchante

Eanufacturere Association of Baltimore have both been received

in 4r. Strong's absence in Washington.

It is extremely r'oubtful whether Yr. Strong will be

able to accept your kind invitation to speak at the banquet on
rebru ry 8, to which you il..*ve so cordially invited
laid up with

he has

severe cold ;thich has no qffeet5d hie voice

that he has been obliged, on the advice oP his (bctor, to avoid
all speaking engegevents for a number of weeks.

I expect Mr. Strong the early part of next week at which
time your letter end that of :=Ir. Goldsborouh will he placed

bcf'ore hi- for i.ereonal attention.
Yours very truly,

Secretary to

Mr. Ben j. Strong.
Yr. lialcb Newcomer,

President, National Exchange Sank,
Baltimore, Md.
G3.11V






TH E

HARVARD UNIVERSITY
GRADUATE SCHOOL OF
BUSINESS ADMINISTRATION
OFFICE OF

WALLACE B. DONHAM, Dean
DONALD K. DAVID, Asst. Dean
CLINTON P. BIDDLE, Asst. Dean

Cambridge, Massachusetts

NEIL H. BORDEN, Ass!. Dean




January 9, 1923

Governor Benjamin Strong
Federal Reserve Bank
15 Nassau St.
New York City

my dear Governor Strong:I am very much
obliged to you for the conies of your
address before the Convention of the

American Farm Bureau Federation which
have reached me very promptly.

Very truly ;oure

20.24 VESEY STREET, NEW YORK

TEOFFIONE BARCLAY 4200

Nttil Rork gvening
FOUNDED 1801

JanuL-,ry 9, 1923

Benjamin :strong, Governor,
Federal Reserve Sank of _sew cork,
Eew York City.
Dear 17r. strong:

and
In the last week rush of getting out our Annual Financi
Business Review 1 neglected to answer your kind letter of Jecerler 18
Please believe, however, that 1
regarding a statement of your views.
thoroughly understand the reasons whigh made such a statement inexpedient
and suite appreciate your attitude ii the matter.

7"ossibly you have seen y'e Review as it appeared with the Post
I am taking the/liberty, however, of sending you a copy
on December 30.
of the tabloid edition which w published last week.




'Faithfully yours,

Financial Editor.

FOR THE CIVIC AND COMMERCIAL WELFARE OF THE CITY AND STATE

Merchants and Manufacturers`
Association

,("1

or

Baltimore
January 8, 1924.

Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.
My dear Mr. Strong:

On February 8th the Merchants & Manufacturers Association,
which is the largest business organization in the State, will hold
its banquet at the Hotel Belevedere, at 7 o'clock. The character
of the Association is such that it usually attracts the leading business elements of the community, which include financial and professionel men, as well as those in the industrial and commercial field.
The banquet is featured by three speakers only. We generally
ask a commanding figure like yourself, who is in touch with the main
factors relating to business, in the hope that through him we can secure a message well worth while. We happen to know that you are particularly familiar with the European situation. And knowing how closely that situation is interlaced with our own American business, we
feel that a straight-from-the-heart talk from you would be very wholesome in more ways than one.

Mr. Waldo Newcomer of this city, whom you know very well, is
a member of our Board of Directors. All of the national banks and
trust companies in Baltimore are members of our Association. In order
that you might clearly apprehend the nature of our organization, I
have asked Y.r. Newcomer to use his best offices to induce you to accept.
I hope you will give the matter more than favorable consideration, and will assure us at a reasonably early date that we can
schedule you as one of our three worth while speakers.
CNith best wishes for 1923, I am,

Very truly y

fur

A. S. Gold-

General Secretary
G:111







HARVARD UNIVERSITY

January 8, 1923.

Dear Mr. nonham:
0,7

As requested in your letter of January 6,

I take pleasure

in sending you, under sotarate cover, four printed copies of the
address which I recently delivered before the Convention of the
American Farm Bureau Federation.
Yours very truly,

B. Donham,
sir.
Dean, Graduate School of 3asiness Administration,
Harvard lniversity,
Cambridge, gas'.




.

HARVARD UNIVERSITY
GRADUATE SCHOOL OF
BUSINESS ADMINISTRATION
OFFICE OF

WALLACE B. DONHAM, Dean
DONALD K. DAVID, Asst. Dean
CLINTON P. BIDDLE, Asst. Dean

Cambridge, Massachusetts

NEIL H. BORDEN, Asst. Dean




January 6, 1923

Governor Benjamin Strong
Federal Reserve Bank
New York City

My dear Governor Strong:I should very much
appreoilte it if I might have a fcw copies
of your speech in Chicago before the farmers,
as I understand it has been printed.

If

it has not been printed, would you be willing to loan me a copy?

Very

F

truly, ours,

ISC

FEDERAL RESERVE BANK
OF NEW YORK

CROSS REFERENCE SHEET

7 '7/0 /3 s

FILE No.
SUBJECT

--S

SEE

0

FILE NO.

LETTER OF
DATED

Cui---LA,

.

ihi/ 2 3
(alw- <

-tex




-

.J.nuery 4, 102,x.

Deer ?rof9sser
-y3re th.? clncilir%tur who

r:u to o-tit

faraera in Chicegc, I nup.;:7.:74 it ie ef11-: fstr that I
4

p!-,111 sand you the onclor

relotior trod my trip 1
received from '.r. Cray

lottero.

AnJthe! !nt,,,rest-

an initttl..-n
to

T

1.0o!o

t`le f4rm orleit

legislation by expressing '..Lo some viowo to the Scnste

Bankine pne Currency Cormittor thft I exp-E,erse to hie
ergsnizstion in ChIcpuo.

tovld ,nu mind rfturninL the srolcsures as I Clink
I

keep their EF e

6Jrveni :f F vsr; intereutirg experifince.
Tours sincerely,

Freesoor Cherlep J.
c/1 hF.rvarl !Jniversit:.
Caalbridge,Leso.

asap!
Ence.(1.4 )




J9.nu:ry 4,

ky deer WT. Bean:
Thank y:.] very much Tor your courtesy in sendin
-

'-

copies
me copies of the reprint cf the adlress that I made in
Chicago 1Ftst

Certainly you devotad a good deal

of space tc it in your last isrue;

possibly mare than it

deserved.

At any re.te, the reacticn in Chicago ceems to hive
been satisfactory, arid that vias whet I was after.
;:ith kindect rechrds, believe me,

Yours sincerely,

lar. Robert R. Bean,

c/o American Acceptance Council,
120 Broadway, New !ork City.
BS.MX




a
January 4, 1923.

relr

nrammcni:

Thank :al for :,cur cordial note of Lecember 26, with
the v-ri U7 enclosures -1:1c, accotheanied it am which I have
reed v'ith interest.

1'ienknob6 compols ire to admit that

r!,: not at all cure ahen 1 uent to Chicago whether what I had

to smy 7ou1d DO very interesting or acceptable:

but it seem('

to hvve been, and I feel more than repaid for having gone, not
only by such letters ac you have written me, but by the ple &sure

I had in Leetiv those good folks who gave ne a very good time
indeed.

Flese accept my best wishes for the New Year.
Sincerely yours,

mr. 1. I. rrummond,
ehairman, Board of Covernore,
Internetional Farm Congress,
Kanete City, Mo.

HS. itk




January 3, 1923.

'.!)(

dear Mr. Drummond:

Supplementing

r. Strongle letter of December 26,

I am

enclosing at his recuest a letter from Mr. C. E. Mitchell, which
you may be interested in reading.
Yours very truly,

Secretary to
Mr. 3enj. L;trong.

Mr. W. I. Drummond,
Chairman, 3oerd of Governors
International Farm Congress,
Kansas City, Mo.
Enc.







The National City Bank of New York

December 29, 1922.

Dear Ben:

Excuse my belated reply to your letter of
December 21.
You and 64% Drummond are absolutely
correct in your thought that there are a number of us
who ought to get into the real country or the United
States more often than we do if we are to have our
thinking of the right kind and are to do our most
effective work at our desks here.
I have definitely promised myself that within the next two months I will make a trip to the
Pacific coast and back, and another one down the Atlantic
seaboard to Cuba, with some stops en route. I hope
that some of the others that Mr. Drummond mentions will
find it possible to do the same kind of trick.
Sincerely,

(Signed)

Mr. Benj. Strong,
Governor, Federal Reserve Sank,
New York City, N. Y.

C. E. 17,itchell

VICE PRESIDENTS
ANDREW KIMBALLTNATOMER ARIZONA
HOWARD LEONARD. EUREKA. ILLINOIS
I.T. PRYOR. SAN ANTONIO TE XAS

W N. JAMES. PREsiOENT
W. I. DRUMMOND. MANAGING DIRECTOR

BOARD OF GOVERNORS:
N'.1 oRummOND.C.camAN
ENIO.OKLANONA

W. K JAMES

ST. JOSEF,. MO

ou CAT

J. B. CASE

QAi

ABILENE.KANSAS

JEWELL MAYES

THE INTERNATIONAL FARM CONGRESS

Tv no,

KURT GRUNWALD

SOUTH OENVER.COLO

14.RLYMAN

SALT LAKE CITY. LIYAN

INCORPORATED

J. C. MOHLER

TOPEKA, KANSAS

W. R MOTHERWELL

DEDICATED TO AGRICULTURAL EDUCATION AND PROGRESS

REGINA SASS. CANADA

H.J.WATERS

KANSAS Ca, MO

THE INTERNATIONAL

OFFICIAL PUBLICATION

SOIL-PRODUCTS EXPOSITION

THE AGRICULTURAL REVIEW

KANSAS CITY, MO.
January

1923.

Mr. Benj. Strong, Presluent,
Federal Reserve Bank,
New York City.
Lly dear Lir. Strong:

I have your letter of December 26th in which
4 you enclose letters to you from Lit. Pierson and Mr.
Baker.

I have read thee with interest and am re-

turning them herewith.

I hope the year just dawning will be the most
prosperous and the happiest of your career.
Very truly yours,

4§1\




-/
Chairman 'Board 6-'fo*Vdnil.

PRINCETON UNIVERSITY
PRINCETON, NEW JERSEY

DEPARTMENT OF

ECONOMICS AND SOCIAL INSTITUTIONS

Jan. 2,

Governor Benjamin strong,
Federal Reserve Bank of Lew York,
Lew York City.

My dear Governor Strong:

"

`Q

,iliast a line to tell you that I have read

your address, given at the Convention of the American
Farm bureau Federation in Chicago, and think it is
The paragraph beginning with the following
fine.
sentence particularly appeals to me:
"I believe
that it should be the policy of the federal reserve
system, by the employment of the various means at
its command, to maintain the volume of credit and
currency in this country at such a level so that, to
tne ettent that tne volume nas any influence on prices,
it cannot possibly become the means for either promoting
speculative advanced in prices or of a depression of
orices."
I
was also pleased to see you put squarely
on the defensive those banks scattered over tne country
who are so active in their criticism of the federal
reserve system among farmers, but so unwilling to do
their part in cooperating with the system to help the

farmers.

If you are to be in Lew York this week,
going to try to see you a few minutes.

I

am

'dialling you all sorts of good things for the
Lew Year, I remain




Cordially yours,

AMERICAN ACCEPTANCE COUNCIL

111

NEW YORK

ROBERTH.BEAN

January 2nd,
1 9 2 3

EXECUTIVE SECRETARY




Dear Governor strong:I take this opportunity of expres_ing to you grateful appreciation
of the American Acceptance Council for
the opportunity which you granted us
to present to our readers, your must
valuable contribution to the subject of
Agricultural Financing, presented at the
ConvAation of the American Farm Federation Jureau in Chicago on December 13th.
I have had a few copies of your
Address put in pamphlet furm and am sending you herewith one dozen thereof. Should
you desire ary additional copies I trust you
will let me know.
With kind regards, 1 am,
sincerely

0

-

.::xecutive secretary
1.Lo-

Senjamin Strong, Governor
Federal Reserve Sank of .,ew York

GENERAL OFFICES

LEGISLATIVE DEPARTMENT

58 E WASHINGTON ST




MUNSEY BUILDING

AMERICAN

ILL.

WASHINGTON, D. C.

13
FARM v.
FEDERATION
TELEPHONE DEARBORN 1633

CHICAGO, ILL.
December 28, 1922.

Mr. Benjamin Strong,
Governor, Second Federal Reserve District,
New York, N. Y.

Dear Mr. Strong:

On behalf of the American Farm Bureau
Federation I wish to thank you most sincerely for the
excellent address given before our recent convention
here in Chicago.
We are having continued calls for
copies of your speech since the convention, and I want
to assure you that the farmers of America are vitally
interested in the subject that you presented.
Will you kindly send to us by early mail
your expense account in connection with our meeting in
order that we may remit promptly?
Again assuring you of our appreciation,
and trusting that we may have your co-operation in future
as we have had in the past, I am,
Very truly yours,

AMERICA

U FEDERATION

er ale - Secretary

JWC

LEGISLATIVE DEPARTMENT

GENERAL OFFICES

AMERICAN'

58 E.WASHINGTON ST.

I

RtJ

CHICAGO ILL




MUNSEY BUILDING

WASHINGTON. D. C.

fAti

Artivi '$:1

FEDERATION

TELEPHONE DEARBORN 1633

CHICAGO, LL, December 28, 1922.

`7kif

Mr. Benj. Strong,
Federal Reserve Bank,
New York.
Dear Mr. Strong:

The reaction from your splendid contribution
at our Annual Meeting week before last is fine. I am not
retching the point at all when I say that nc other representative of the Federal Reserve
Banks, since deflation,
made anything like as favorable an impression upon our farmer
I trust it is the beginning of the building
grou;s as did you.
up of an understanding which will be for the best interests
both of the farmer and the business man.
Accept my personal greetings and the assurance that
it was a very great privilege to become acquainted with you.
I trust the New Year will he a happy one and that
in it we may all make a definite progress.

Very truly ycurs,

AMERICAN FARM

UR'AU F

,RATION

1

J. R. row

- President.

VICE PRESIDENTS
ANDREW KIMBALL,T.A.Tc.EN ARIZONA
HOWARD LEONARD, EUREKA ILLINOIS

W
JAMES. PRESIDENT
W I . DRUMMOND. MANAGING DIRECTOR

I. T. PRYOR. SAN ANTONIO:TEXAS




BOARD OF GOVERNORS:
W.I DRUMMOND. CHAIRMAN
ENIOOKLAHOTIA

W. K JAMES

ST. JOSEP, MO

J B.CAS,E

ABILENE. KANSAS

JEWELL MAYES

JEFFERSON Gay MO.

THE INTERNATIONAL FARM CONGRESS
INCORPORATED -

KURT GRUNWALD
SOUTH DENVER. COLO

14.RLYriAN
SALT LAKE CITY, UTAH

-

J C. MOHLER

TOPEKA, KANSAS

DEDICATED TO AGRICULTURAL EDUCATION AND PROGRESS

W.R MOTHERWELL

PEGINAsAsn.cANA...

J WATERS

HAM SAS CITY. HO

THE INTERNATIONAL

OFFICIAL PUBLICATION

SOIL- PRODUCTS EXPOSITION

THE AGRICULTURAL REVIEW

KANSAS CITY, MO.
December 26, 1922.

Lr. Benj. Strong, President,
Federal _reserve
irew York City.

Dear Li. Strong:

I have your good letter of December 21st and
If I have contributed to
the promotion of a better understanding between our
financial and agricultural interests, I shall be very
happy.
appreciL-.te it very much.

_he extract from the Monthly Review of the South
African Dank is very interesting.
I just came from a luncheon meeting of part of the
members of our Board of Governors, where your Chicago
address was discussed at some length. This discussio
confirmed the views I expressed to you in my letter oncerning it.
I thank yiu for the invitation to visit your bank
and will certainly avail myself of the first opportunity
to do so.
Very truly/r,yo
milyo

Okai

Encl.

,

an Bo rd o

December V', WU.

Dear Sir:
Ne)

Enclosed is k copy of what I 7irepare
the American Faro 3areau Federation.

to

say

to

That I did actually

say was alone, the line of the paper, but as I expoke

extemporaneously, you may find a considerable difference
between the published reports and the enclosed paper.
Yours very truly,

Vx. C. N. Lauman,
New York State College of Agriculture,
Cornell University,
Ithaca, N. Y.




December V., 1922.

Dear Mr. Drummond:
1\\c\l

16
\

Following the receipt of your -Dotter, I wro

ill/

some of

the gentlemen that you named, and Lily:dosed are namples, of the
ICY

replies.

Xe ell need touching up in these :ratters, although

possibly I he.ve not been as delinquent as acme because I have in

fact travelled aoout through this country a good deal and
possibly

/Lade more effort to get in touch with other sections

than most. New York City bank presidents have opportunity to
Once :tore let me than

may I Also send you

you for your kind

every good wish for the New Year.

Yours sincerely,

Mr. W. I. Drummond,
Chairman, So d of Governors,

International Farm
Kansas City, Ib.
MM

Enes.




note, and

Congress,

a




December 22, 1922.

Dear Ben:

I know
I have your note of yesterday.
I also
Drummond well and think highly of him.
endorse his recommendations about New Yorkers
mixing more with the rest of the country, although
this seems to be a difficult thing to accomplish.
I generally try to do what I can along these lines
and always have tried to, although perhaps it may
Without any undue flattery to you,
not be much.
I would say, however, that, in my judgment, there
are few men here in New York who can get up and
talk to a Western audience along these lines in as
effective a way as you can, and I am not sure but
that if somebody tried to do it and did not succeed
in doing it in an effective way, he might do more
harm than good.
Yours fai

Benjamin Strong, Esq.,
15 Nassau Street,
New York City.

ully,


IRVING "NATIONAL BANK
http://fraser.stlouisfed.org/
7ArYoRK
Federal Reserve Bank of St. Louis

DEPARTMENT OF
AGRICULTURAL ECONOMICS AND
FARM MANAGEMENT

1

NEW YORK STATE COLLEGE OF AGRICULTURE

G. F. WARREN
G. N. LAUMAN
J. E. BOYLE
G. P. SCOVILLE
E. G. MISNER
W. I. MYERS
H. E. BABCOCK

AT CORNELL UNIVERSITY
ITHACA. N. Y
ALBERT R. MANN. DEAN

C. E. LADD




De cember 21, 1922.

Mr. Benjamin Strong,

40

Go ve rno r Fe de r al Re se rve Bank ,
New York,

My dear Sir:N'tikfr
I do not wish trely on the garble d
extract s from yi ur address before the American

Farm Bureau Fe de rat i )n .

May I have a complete

copy of it? It is pne of my duties t3 pre sent
this problem of farm credits.
Very truly yours,
N./

GNL: S

C. V. NOBLE
L. J. NORTON
V. B. HART
H. S. GABRIEL
F. A. PEARSON
L SPENCER
C H. MERCHANT
M. P. RASMUSSEN
B. W, BARKAS
C G. MCBRIDE

4

December 21, 1922.

r.

Dear Charley:
I

air enclosing you copy of a letter which I have just

received from an influential farmer in Kansas City, because your
!liy own experience in attending the

:,ame ie mentioned ills it.

Convention at Chid re convinces ire that Mr. Drummond's advice

ie good, and hie letter inspires me to ?axe it along to you.

The fact ie that we are all too much inclined to stie, to our
desks here in New York and not get out into the country ,:lnd
learn some more about the people who criticize us and whom we

:riticize, and get to know them a bit Netter.
Yours very truly,

Ir. Charles E Mitchell,

o/o National City Bank,
55 Wall St., New York City.

BS.

Enc.




December 21, 1922.

Dear Dwight:

I am enclosing you copy of a letter which I have just
received from an influential farmer in Kansas City, because our
name is mentioned in it.

My own experience in attendin; the

Convention at Chicago convinces me that Mr. Drummond's advice

is good, and his letter inspires me to pass it along to you.
The fact is that we are all too much inclined to stick to our
desks here in New York and not get out into the country and
learn SOTS more about the people who criticize us and whom we

criticize, and get to know them a bit better.
Yours very truly,

Mr. Dwight Morrow,

c/o !'essrs. J. P. Morgan & Co.,
23 wall St., New York City.
BS.MY

Eno.






V

December 21, 19!2.

Dear Charley:

copy of a letter whiel I !lyre .just

f.rmer in !ansas City becaws your
own ax:-erience in attending the

as

th.,t i r. tlrutmonP

me tc ,Ass

advice I s

to ;cu.

The

ch locliacd to stick tc our :les1,7 a

ut into the country and lei!rn some

iticize us s_zi Thor 3e clitiisize, and
Yours very truly,




December 21, 1922.
0'

Dear Pierson:
I

un enclosing you copy of a letter which I have just

received from an influential farmer in :Canoes City, because your
name ib mentioned in it.

;..y own experience in attending the

Convention at Cnicazo convinces -e that Mr. Drums ondts advice

is s-ood, and his totter ins;tres me to pose it along to you.

The fact is that we are all toc much inclined to stick to our
Desks here in hew Yor'i. and not get out into the country end
learn some wore about the people who criticize us and whom we

criticize, and get'to know them a hit better.
Yours very truly,

?r. Lewis E. Pierson,
c/o Irving National Bank,
Woolworth Bldg., New York City.
BS. ML

Eno.







December 21, 1922.
My dear

r.

Drummond:

receive

It is a great pleasure to

morning, and I am replying right

your letter of December 18 this

away to thank you for writing me.

There is no doubt whatever

about my being a poor speech maker;

feet, I think my friends concede the point

without argument, and possibly it

the eeeting at

was due to that fact that some of the farmers present at
Chicago construed my

remarks about Java as made for the purpose of comparing

living conditions rather
very important

in

than intended, as was

point in regard to world

the case, to bring out that
Those

competition.

were some of

things which I saw with my

own eyes and which 1- had the good fortune to

about a little bit because

during the whole of my trip

the

inquire

I was practically

passing

frora one set of government officials to another, all of whom were in greater or

less degree engaged In studying

I think the American

those very matters.

farmer should look upon the resu'ts of his work as being in cart a contribution
to

the great ease of

must get

farmer is

surplus foods produced by oome earts of the world which

an effective distribution

become convinced that

the

farmer's real

the

American

;sore we

problem will increasingly be that of

But a

his market rather than his finance.

subject alone, and I

the world if

The more we study this matter here, the

roeper.

to

inother parts of

book

could

be

written

on that

e..sr, really not intending to burden you with further dis-

cussion of it.
I

do, however, want to

experienced in attending

convince you

the Convention

simply to make an appearance, but as a




of the keen enjoyment which I

at Chicago.

I did not hang

matter of fact did

around

stay over for an

2

I. Drummond

W.

December 21, 1922-

extra day because I was enjoying myself, and for no other reason.

Without

any shame I confess to having learned a great deal more than . I was able to

impart, and if the members of the organization give me the- opportunity to

attend other meetings later on, I am proposing to make it a point to do so.
All that you write about New York bankers is true enough.

they are very busy men, but they could well afford to devote more time

course,

to making

acquaintances with the people of other sections o' the country, and they would
profit by doing so.

I wish I could persuade them to go to more of these

meetings, and your letter inspires me to make the effort, which I am proposing
to do.

Finally,

I.

want you to come

into

the ban' whenever you are in New

York and feel just as much at home here as you were good enough to make me
feel when I was in Chicago.

With kindest regards and again thanking you for your letter, I am,
Yours very truly,

Wr. W.

I.

Drummond,

Chairman, Board cf Coverncrs,
International Farm Congress,
Kansas Pi ty

,

Mo.

BS.MY
F. S.

I am enclosing an

extract from a

recently published review of the

Standard Bank of South Africa, ar.d call your attention to

the astonishin.g fact

that if you strike out a few names from the article it would he inponsible to
say that it lima not written about agricultural conditions in this country.




VICE PREilDENTS
ANDREW
CHER. ARIZONA
HOWARD LEONARD, E RENA. ILLINOIS
I.T. PRYOR. SAN ANTO 10 TEXAS
W, K. JAM ES, PR ESIDENT
. I. DRUMMOND. MANAGING DIRECTOR

BOARD OF GOVERNORS:
W I DRUMMOND.CHAIRH

W.K. JAM ES
JAM

(69

J B.CAS,E

BILENE.HANS

JEWELL MAYES

JEFFeRsoncvmmo.

ATIONAL FARM CONGRESS

KURT GRUNWALD
SOUTH DENVER.COLO.

RRLVMAN

SALT LANE CITY UTAH

INCORPORATED

J C MOHLER

TOPEKA, KANSAS

W. R MOTHERWELL

GRICULTURAL EDUCATION AND PROGRESS

REGINA SASM.CANAOA

H J.WATERS

KANSAS CITY, MO

OFFICIAL PUBLICATION

TION

THE AGRICULTURAL REVIEW

KANSAS CITY, MO.

cember 18, 1922.

Governor,
ve District,

ong:

write you concerning the eZfect of
the Farm Bureau Federation at Chicago
ved it out among my fellow farmers.

ch itself, and recalling your letting
that you are such a poor speechmaker,
farmers present never suspected the
cret.

ive of a more effective effort, from
is true that a Levi SUSTACiolls farmers

d about the rice planters in Java iii
he farmers) feel better by comparison,
the logic and the sequence of the
the actual competition with oo_r prorkets.

your talk was decidedly good.
This
ou stuck around for a part of a day
rowd instead of beating it for a train
nished.

t handicaps this country is urider lies
different sections and classes of peoother. You New Yorkers ought to get
tates oftener and further. The presence
or two at every farmer gathering would
I were running New York, I would round
ogether with Chas. Sabin, J. S. Alexanwis Pierson, Dwight Morrow, Chas.
and make you get out to these and other
owe it to New York nd tq the country.
Sincere
S









Kansas City, Mo., June 1, 1922.
Hon. Henry C. Wallace,
Secretary of Agriculture,
Washington, D. C.

My dear Mr. Secretary:
I trust that I may, without impropriety, suggest that the advance census reports on farm mortgage indebtedness disclose a situation that would
seem to warrant the serious attention
of your Department.
The census for 1920 will show that

while the number of farms in the
United States operated by their own-

ers was practically the same as in
1910, their mortgage indebtedness increased from $1,726,172,851 in 1910 to
$4,003,767,192 in 1920, or 131.9 per cent.

This means that in addition to the
mortgage indebtedness existing in
1910, a further dead load of $2,277,594,-

341 has been placed upon this class of
farms.

The census will further show that
nearly 40 per cent of all farms are
now operated by tenants. If the same
proportion holds good with them, the

total farm mortgage indebtedness increased considerably more than $3,000,000,000 in the ten-year period. The

added annual interest bill amounts to
about $200,000,000, or more than one-




fourth the farm value of the average
wheat crop, not only of the mortgaged

farms, but of

all

United States.

the farms in the

No figures are available showing the increase in chattel
and personal indebtedness, but this is
known to be very large. The degree
of increase may equal or exceed that
of the mortgage indebtedness. It is
not improbable that the value of more

than a third of the nation's wheat

crop will hereafter be taken each year

to pay the interest on the increased
rural indebtedness that has been piled
up during the past decade. Nor do
these figures include 389,459 farms
for which no report was made in 1920.

In 1910 only 48,092 farms failed to
report their indebtedness. The statistics are otherwise incomplete, but
could all the facts be known the showing would no doubt be more startling.

A recent circular by your Department, while admitting the seriousness

of the situation caused by this tremendous increase of farm indebtedness, draws reassurance from the fact

that the reported value of the mortgaged farms increased 117.6 per cent
during the decade, and that therefore
the proportion of indebtedness to valuation is not much greater. Just what
benefit accrues from this larger valua-

tion of the farms is not clear. The

earning power of land is not affected
by changes in its rated value. It can




Digitized forpay the expenses assessed against
only FRASER
http://fraser.stlouisfed.org/
it through the sale of what it proFederal Reserve Bank of St. Louis

a character of loans somewhat different from those of other industries, and
of commerce. Provision for an intermediate line of credits would no doubt
be wise. But the tendency has been
and continues to be to encourage borrowing on the basis of inflated values,
or of pure speculation; and the result
is shown in the census reports.
Misunderstanding of the character
and the possibilities of the business
of farming is increasing. A farm is

not like a factory whose output can
be increased indefinitely by the addition of more equipment. The productive capacity of an acre of ground has
rather definite limitations. Any increase in overhead expenses must

come out of the first revenues. Interest is the first item in overhead.
It takes the first bushel of wheat, the
first hog or calf-and sometimes the
last also. The only hams that go into
the smokehouse am those that are left
after the interest bill is paid. Interest comes ahead of shoes for the chil-

dren, or dresses for the wife.
In addition to its original purposes

of educational work in the field of
production and conservation, the De-

partment of Agriculture has in recent years expanded its activities to
include economics.

It asks and re-

ceives appropriations from the public
treasury to be expended in teaching




r

farmers better business methods. This
is

approved by the public and

ac-

cepted by the farmers. The Department has sought and been granted administrative, police and judicial
powers wholly outside its original

It has become the duly constituted authority of the nation in all
matters pertaining to agriculture. Its
advice is accepted by most farmers.
It is supported at public expense, for
the very proper reason that agriculture is the basic industry, upon which
the prosperity of all others depend. It
would therefore seem right for it to
take cognizance of a condition that
threatens to nullify all of its splendid
constructive educational efforts, and
that evidently constitutes a grave national danger.
It is now quite generally recognized
that normal business conditions canscope.

not prevail unless the purchasing

power of the farmer's dollar is normal. But the purchasing power of the

dollar that goes to pay interest is of
little concern to the manufacturer or
merchant who wants to sell to the
farmer. The additional third or more
of the gross returns from the annual
wheat crop, or its equivalent, that
goes for interest will not be spent for
machinery or clothing. It may make
business better along the Florida East
Coast in winter time. It may increase




the population of California. It will
swell the reserves of some insurance
companies. It will not fill many pay
roll envelopes. It is diverted right at

its source from the true channels of
trade.

The fever of restless speculation
that has gripped so many farmers is,
of course, not confined to that class.
It is prevalent among all our people.
But if the Department of Agriculture
can in some measure temper it among
those whose champion and mentor it
has become, the national economic
structure will be strengthened, and the
industry of agriculture will be headed

back toward that comparatively safe
position it once occupied.

The chief danger to American agri-

culture is not that our farmers will
be unable to borrow enough money or
engage in a sufficiently broad field of
business activities. It is that the
fixed overhead and the operating ex-

penses of our farms will become so
high as to absorb all profits, and
make it impossible for them to compete with the farms of other countries,
without a degree of protection and as-

sistance that will not be granted by
our consuming classes, and cannot in
fairness be expected.
That would be the short road to general ruin.
Respectfully,
(Signed) W. I. DRUMMOND.




4

r
FEDERAL RESERVE BANK
OF NEW YORK

MISC. 4.1-201A 10-21

IFFICE CORRESPONDENCE
To

Mr. Jay

DATE Dec * 18, 1922

11921._

SUBJECT:

Governor Strong

FROM

(4_

Attached is the recommendation in regard to Finance which was to be
submitted at the final meeting of the Farm Bureau organization, and which
I have no doubt was adopted, although I did not stay to learn what transpired.

BS.MM

Zi V

att.




DEC 1 [,

1922

P. J.

Resolutions at Fourth Annual Convention
of the American Farm Bureau Federation,
Chicago, December 13,1922.

In matters of agricultural credit and finance your committee reccommends:
Agriculture must have such access to kioneys and credits as till
enable it to readily finance its needs. Three forms of credit are
necessary.
1.
2.

Long time invested ca,ital on an amortization basis.
Short time credits such as should be provided through

3.

Intermediary credit to take care of marketing and productive needs.

ordinary banks of dei.osit.

To meet these ends we insist upon the passage at an early date of
needed legislation providing:
a.

The amending of the Federal Land Bank Act removing the
$10,000 loan limit and permitting it to function regarding amount of loan and facility of operation as
readily as the Joint Stock Land Banks.

b.

The amending of the Federal Reserve Act making the system
more readily accessip/e for banks of small capital,
allowing them to entr with a
capital of $15,000
and giving five years for building or increasing ca,ital
to the needed $25,000. The amending of the Federal Reserve Act extending the rediscount leriod of agricultural
parer to at least nine months.

c.

To forbid any member bank making a greater charge than
2% above the Federal Reserve rate of the eligible Taper.
eluding commissions and brokerage on district ind.

We endorse the principle of coocerative banking.

e.

The establishment of intermediary credit institutions for
rediscounting parer ,ro,erly secured, for the purpose of
orderly marketing, livestock and other productive needs
eovering a period of from six months to three years; to be
administered by an intermediary credits board which shall
-be se,arate and apart from the Federal Reserve and Farm Loan
Boards and which shall be authorized to recognize banks of
cooierative associations, farm loan associations
and farm finance corporations of the different states,
.alloving them to clear through an intermediary credits
department in the 12 farm loan banks and with lawful access
to the Federal Reserve System, the national reservoir of
moneys and credits by debentures or otnervise;and with the
further right of dealing in bank acceptances, and
o have an
aggregate capital of not less than $10,000,000 for each of
the 12 Federal Land bank Systems.

we arove the extension of such credits as ,ill facilitate the final-


cing of the exi_ortation of sur,lus ai:ricuItural comnodities through-. the
http://fraser.stlouisfed.org/
War Finance Corioration and its successor.
Federal Reserve Bank of St. Louis




December 18, 1922.

N;y dear Mr. Clark:

A reply to your note of Decemuer 11 has been delayed by
my absence.

My work has piled up on me so that I have been obliged

to forego the ples.sure of preparing hny articles for the newspapers or magazines this year, as I simply have not the time to

do it.
Will you not, therefore, excuse me.

yours sincerely,

James

...

Clark, Esq.,

c/o American Bankers Association,
5 Nassau St., New York City.




w

December 18, 1922.

Dear Sir:

Replying to your kind note of December 9, I find it will not be

possible to prepare replies to the inquiries enclosed in your letter,
pertly because i have been absent for over two weeks and am just now

overloaded with work, but also on account of the policy of the bank which

uniformly has been to avoid anything in the nature of prophecies as to

the future.

We feel that it is a hazardous business at best to attempt

to penetrate into the future, especially in times of such arreat uncertainty,
hat the Federal Leserve Syster, should scrupulously avoid

an

attempting to do so.
I

tan sure that you will understand the need for such a

policy.

Yours very truly,

Ben j. Strong,
Governor.

F. L.chneider, Jr., Esq.,

Financial Editor, New York Evening Post,
20 Vesey St., New York -City.
BS.MY




r.ecember 11, 1922.

re'r Professor Bullock:

Just a line to tell yDu that kr. Mackenzie was good
enough to cell on me, although unfortunately I had to see him
-den I was in bed.

I have just gotten about, snci am taking

the train to Chicago to-day, and I suppose eith a certain
decree of fear and trembling am proiosing to address the
American Federation of Farm +IT-say/Convention on ,ednesday.

If anything is thrown and hits me, the responsibilitr
rests with jou, good friend, but I will do the best 1 can.
Yours sincerely,

Professor Charles J. Bullock,
c/o aarvard University,
Cambridge, lass.




0
SECRETARY AND ASST TREASURER

PRESIDENT
J. H. PUE LICHE R.PRESIDENT
MARSHALL & 1 LS LEY BANK
,JKEE,wiS.
m.
FIRS'
E PRESIDENT
ER W. HEAD, PRESIDENT
W
O

O

WILLIAM G FITZWILSON

RS!

A NATIONAL !BANK

HA,NEB

DEPUTY MANAGERS
LEROY A.MERSHON
TRUST COMPANY DIVISION
LEO DAY WOODWORTH

SAVINGS BANK DIVISION

SECOND VICE PRESIDENT

EDGAR E. MOUNTJOY
NATIONAL BANK DIVISION

WILLIAM E. KNOX,AREs,DEorr

BOWERY SAVINGS BANK
NEW YORK, N.Y.

GEORGE E. ALLEN

EXECUTIVE MANAGER

F N.SHEPHERD

STATE BANK DIVISION

FIVE NASSAU STREET
NEW YORK,N.Y.

FIVE NASSAU STREET,NEW YORK CITY

TREASURER

F. A. IRISH, "ICE PRESIDENT

MANAGER PROTECTIVE DEPARTMENT

L W. GAMMON

EDITOR OF THE JOURNAL
JAM ES E. CLARK

F I R ST NATIONAL BANK
FARGO, N D

BRANCH OFFICE
708 -B COLORADO BUILDING, WASHINGTON, D.C.

GENERAL COUNSEL
THOMAS B. PATON




CABLE ADDRESSI"ABAN7 NEWYORK

December 11 1922.

Hon. Benjamin Strong, Governor
Federal Reserve B3nk of New York
New York City.
My dear Governor:

As an aid to the proper guidance of business will
you be good enough to send to me for publication in the
Journal of the American thinkers Association, an article
of about 500 words or more, on the business outlook for
1923.

We want you to tell the bankers of the country, if
you will, what the prospects are as indic-cted by present
conditions.

If you will do this, we will be grateful and I am sure
that your views will be of material assistance to bankers
and business men generally, in shaping their policies for
1923.

We would like to receive your article at least by the
23rd instant.

Awaiting your response, I am

JOURNAL OF T

Cordially yours,
AMERICAN BANKERS ASSOCIATION

Editor

TELEPHONE BARCLAY 4200

20-24 VESEY STREET. NEW YORK

pot

xetu Roth
FOUNDED 1E101

December 9, 1922.

I'. Benjamin 6trong, Governor,
Federal Reserve Bank,
New York City.
Dear Sir:

The evening Post is nreparing, after its custon of the
sixteen years past, to include- in its Annual Financial and business
Review brief statements on the financial and economic outlook from
a carefully selected group of 7-ell-known financiers, public men and
economists.
e hone to include your viel7s, however briefly expressed,
in this group, which in recent years included members of the Cabinet
and Federal .reserve Board, and such eminent bankers, business men,
and economists as Nr. Andrew Ti. Mellon, 7x. James S. Alexander, Yr.
David R. Forgan, Mr. Plul M. Ilarburg, Professor F. 7'. Kemmerer and
rrofessor ',:esley Clair ritchell.

I enclose a set of queries which we are sending to bankers
and financiers at various noints throughout the country. They indicate the mints on which it arrears to us that the public is most
anxious to have light. Tie shall be hanny,.howorrer, if you will
use your own judgment as to what should be the main consideration,
even if not included in our query.
If, as we hone, you nay feel disnosed to give us your
views, we should like to receive then between now end Deceml:er 20,
when prenaration for the snecial edition berins.
Faithfully yours,

Fnc.




Financial Fditor.

20-24 VESEY STREET, NEW YORK

TELEPHONE BARCLAY 4200

rk,IED entroz Vogt

et0

U

QUERIES REGARDING THE BUSINESS SITUATION

Do you expect the recovery in general business now in progress to

1.

continue during 1923?

What do you consider the chief stimulating

influences?
2.

Do you see any factors likely to cause a set-back to business during
the coming year?

3.

If so, what?

Are commodity prices likely to go lower during 1923?

Or to advance?

Or to remain in general where they are; and why?
4.

Du you expect the present conditions of easy money to continue throughout 1923?

5.

Or for only a part of the year?

Is the labor situation in your community satisfactory from the viewpoint of the employer?

6.

What attitude, in your opinion, should this country take with regard




to the rotated problems of reparations and the interallied debts,
including among the latter those owing to this country?

WT. 15 60M-7-22

FEDERAL RESERVE BANK
OF NEW YORK

TELEGRAM

WIRE TRANSFER

PRIVATE WIRE-INCOMING

314f b

Chicago Dec 8 439p

evyo rk

Telegram receivod.Reservation for Governor Strong made in accordance with
request

540p MCDOUGALL




DIVISION

I

MISC. 34.1

40M

4-5-22

FEDERAL RESERVE BANK

SENT BY

FOR TELEGRAPH DEPT

OF NEW YORK

COPY;80F TELEGRAM

December 8, 19_2.
McDougal

Chicago F/ R. Bank.

Governor Strong

ill arrive in Chicago Tue:iday morning

would appreci.ite your h ving res rued for him at

bath as he expects

to stly t o

or

three clays.

the Hotel Blackstone room ith

'ease

can be secured.




Decemb r twelfth, and

Beyer

vire

vaieth

r 3.cormodutions

Form 1228A

Charge to the account of Eric lezt,llie,,tia3aatc_4- 5_11a.sail_ Str_sat,
CLAS

. SERVICE DESIRED
ram

Day Letter

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arm

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Patrons should mark an X opposite the class of service desired:
OTHERWISE THE MESSAGE
WILL BE TRANSMITTED AS A
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Check

Time Filed

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

NEWCOMB CARLTON. PRESIDENT

Send the following message, subject to the terms
on back hereof, which are hereby agreed_to
Decer: Der

,

1922.

James E. Howard,

58 EaFt Washington Street,

Chicago, Ill.

/

Thank you for telegram, and gladly accept invitation.

Ho ,e to

have the pleasure of' meeting you before then as I shall reach Chicago
Tuebday morning.




Benj. Strong.

CLASS OF SERVICE SYMBOL
Telegram
Day Letter

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CLASS OF SERVICE. ,SYMBOL

Telegram
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If n

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essage

N

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en the check bulb
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words) this is a Wear-Am.
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AM

appear

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appears after the check number of
words) this is a telegram. Otherwiseits character is indicated by the
symbol appearing after the check.

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etter
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wiseits cataract
symbol appeari

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-_

I +COM 5 CA RLTO

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RECEIVED AT C HI CA GO ILL 6 11 rs 6A

1'01

1922 DEC 6

12 26

GEORGE W. E. ATKINS, FIRST liKar.-pRealoarer

OtC
S

17,M.36 11.
BENJAMIN STRONG

:1'72

GOV ER OR FED RESERVE BANK NEWY0 IR NY
HAVE PLACID YOU ON 'PROGRAM FOUR OCL OCK D EC MI:13ER TETRTEEN

HOTEL MERU N




J R HOWARD.

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1'

'710

IlLskilvAnD UNivEnsiriry
COMMITTEE ON ECONOMIC RESEARCH
CHARLES J. BULLOCK
CHAIRMAN

W. M. PERSONS

CAMBRIDGE, MASSACHUSETTS. U. S. A.

EDITOR REVIEW OF ECONOMIC STATISTICS

J. D. HUBBARD

CHARLES F. ADAMS
NICHOLAS BIDDLE
FREDERIC H. CURTISS
WALLACE B. DONHAM
OGDEN L. MILLS
EUGENE V. R. THAYER




EDITOR HARVARD ECONOMIC SERVICE

F. Y. PRESLEY
GENERAL MANAGER

December 4, 1922.

flovernor Benjamin Strong,
Federal Reserve Bank of New York,
15 Nassau Street,
New York City.
My dear (lovernor strong:

I em very sorry to learn +hat you
are obliged to lay off for a week or so, and trust that the
rest will do you a world of good.

Under the circumstances

you ought to forget about the Farm Bureau business unless,

in case you get out around the 10th or 11th, you can plan
to go out +here to meet the officers of the organization
I am

informally, without undertaking to make an address.

writing my Farm Bureau friend today, conveying to him the
nuroort of your letter.\"il

1

IX

Donham and I are planning to descend
on you at our earliest opportunity.

14esnwhile you must for-

get everything except the necessity of securing a good rest.
With best regards, believe me to be
Yours sincerely,

Q.._ L ----e.--

CJB/AYIB

1.

13 -,----e----e----.

HARVARD I_TNiviEnsrlrY
COMMITTEE ON ECONOMIC RESEARCH
CHARLES J. BULLOCK
CHAIRMAN

W. M. PERSONS

CAMBRIDGE, MASSACHUSETTS, U.S.A.

EDITOR REVIEW OF ECONOMIC STATISTICS

J. B. HUBBARD

CHARLES F. ADAMS
NICHOLAS BIDDLE
FREDERIC H. CURTISS
WALLACE B. DONHAM
OGDEN L. MILLS
EUGENE V. R. THAYER




EDITOR HARVARD ECONOMIC SERVICE

F. Y. PRESLEY
GENERAL MANAGER

December 1, 1922.

Covernor Benjamin strong,
Federal Reserve Bank of New York,
15 Nassau Street,
New York City.
My dear Covernor Strong:

The enclosed telegram from
H. C. Y:ackenzie shows that, after all, you may be "about
to take a long journey".

I certainly hope the thing

can be arranged.

Yours sincerely,

CJB/A.I03

December 1, 1922.

My dear Professor Bullock:

Thank you for your letter of November 29.

Since I returned from

Cambridge, it seems desirable for me to lay off for a week or so, and it locks
as though it would make my attendance at the convention impossible in
event.

MW

As i shall probably be able to get about again around the 10th or

11th of the month, I could, if that seemed desirable, go to Uhicago for the
purpose of meeting some of the officers of the Farm Bureau organization informally, and have a little chat with them; but it seems rather unlikely that
I could put myself in shape to maVe an address to the convention.
Whatever those matters may be which you and LonhE,m would like to

argue out, you may be sure tilat it will be a pleasure to tackle them with
you.

A bit of an argument is stimulating now and then, and I suspect that

you may disagree with some of the things that I said and
show that I am wrong.

If I am, I want to be shown and just as soon as

possible.

Yours sinrerely,

Professor Charles J. Bullock,
c/o Harvard University,
Cambridge,
BS.V1M




would like to

WESTER, 7A1 UNION

CLAS:7 riF SERVICE SYMBOL
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Day Lct Izt

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words) this is a teleerarh. Otherwiselts character is Indicated by the

NEIA'COMIll CARLTON, PRESIDFNT

symbol appearing after the check.

L'
RECEIVE,D AT

X 724
U=17.




-

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,

AM

GEORGE W. E. ATKINS. FIRST Ince.plarstothrr

CLASS OF SERVICE I SY VIROL

Telegram

Blue
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Night Messago

flight Letter
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II cone of these three s'firlAk
I

imams after the check ( number of
words) this is a telegram. ether
wiseits character is indicated by the
symbol armearinn aftor

v

TI

VIP] )t1--31

COMMITTEE ON ECONOMIC RESEARCH
CHARLES J. BULLOCK
CHAIRMAN

W. M. PERSONS

CAMBRIDGE, MASSACHUSETTS, U.S.A.

EDITOR REVIEW OF ECONOMIC STATISTICS

CHARLES F. ADAMS
NICHOLAS BIDDLE
FREDERIC H. CURTISS
WALLACE B. DONHAM
OGDEN L. MILLS
EUGENE V. R. THAVER




J. B. HUBBARD
EDITOR HARVARD ECONOMIC SERVICE

F. Y. PRESLEY
GENERAL MANAGER

November 29, 1922.

Governor Benjamin Strong,
Federal Reserve Bank of New York,
15 Nassau Street,
New York City.
My dear 14r.

Strong:

I was a little surprised to learn from you
last night that you had not received an invitation from the
Farm Bureau people, because I had received word which led me
to suroose that an invitation had been sent you.
I telegraphed iv 1r. i:leckenzie last night,

and hope that an invitation will now come in due course.
Of course, as I wrote you,when I spoke to Mr. Mackenzie
about the matter their convention was near, and their program Pretty largely made un, so that it will be no matter for
surprise if they are unable to invite you this time.

If

they fail to do so, I judge that I shall be the chief mourner,
and you will occupy a seat in the cheering section!
It was a great pleasure to see you yesterday, and listen to your talk last night.

This morning Don-

ham and I find ourselves with two or three things in our minds
that we would like to argue out with you some time.
It was very pleasant to members of our staff
here to receive your visit up in this ramshackle office.
Yours sincerely,

CJB/Aii3




2

Honorable S. P. Gilbert, Jr.

November :27, 192P.

To make the bare state-

A6,to that level of prices would appear to be just now.

"
ment in the language quoted from my letter, of course, would be foolish.
At the dinner the other night which you were unable tr) attend, every

man here urged that I go to Chicago, including Mr. Sydney Anderson, and I ma
tempted to go, but to make a very conservative talk

indeed in regard.to prices,

and beyond everything to attempt no defense whatever of the policy of the Federal
Feserve System.

I expect to see Professor 1ullock in Cambridge to- morrow Ind

have a further talk with him, and then decide whether to go to Chicago or rot.
I mill probably telephone you before deciding finally.
Yours very truly,

Benj. Strong,
Governor.

Honorable S. P. ''filbert, Jr.,

Under Secretary of the Treasury,
Washington, P. C.







NIvember 27, 1922.

Deer Professor Bullock:
110:11/4

fer 7c,r kind acte of 11:wember 24.

Of course, you

quite understand whet I mean '1y the phrase you ..juote frolt m) letter, but

am sure you equell-r unlerstend th,= un iftiOM Or talkinj in thEL

blaoded langue.ge to a group of farmers just ncw.

bare,,

colE-

I think tha rise thing

can be expressed to tbem In a different way wItt, equal effect, and especially

so RS to relieve their minds of any anxieties they may now entertain as to the
policy of the Reserve System.

I as very such tempted to attend the meeting if they really want me
to go, especially after a long taltr which I have just had with fir. Eydney

Anderson, who thinks thst I should attend the meeting; but I sill not finally
decide until after seeirg you to-morrow.

In fact, I will probably see you

before this letter reacher you.
with kindest re':"rde, I am,

!Jura sincerely,

Professor Charles J. Bullock,
c/o Harvard University,
Cambridge, Mass.
BS. M1




THE UNDERSECRETARY OF THE TREASURY
WASHINGTON

November 2E, 1922.

Ey dcar Governor:

I have received your letter of November 20, 1922, and have
reed with interest the enclosed copy of the letter of November lEth
from Professor Bullock.

I am not at all sure that it is wi

representetives of the Federal Reserve System to tell the farmer,
as

on suggest, that it is not "the Policy of the Reserve System to

nursue deflation with e view to the reestablishment of the 1913

Oice level".

Among other thie7s, it seems to me this would involve

taking the Position that the policy of the Reserve System determines
the course

prices, and it would seem at the same time rather beside

the point, for agricultural prices have already recovered from their
extreme depression, though doubtless not as hipt as the farmers would
like to have `.gem.

r= Federal Reserve Banks have not, this year at

least, been pursuing "a d flation policy", and in any event, I should
say that a speech &gong the lines suggested in Professor Bullock's letter
would tend to put the System on the defensive rather t'-en to reestablish
its position lith the farmer.

objections, therefore, go rather to the subject of the
speech than to the speech itself or to your making it.

I am inclined

to agree wit:- the Professor that it would be an advantage rather
than otherwise that you are "the 1:911 Street Governor".




As e metter

-2-

of fact, I notice that the President of the Stock Exchange recently
has made some speeches to agricultural audiences in the West, and
I think there is

e

^ocd desl to be gained by estal7lishing better con-

tact -7ith the farmer and his representatives.

It would at least bring

about a better understanding, which after all is what is most needed.
Very truly yours,

S. P. GILBER
Jr.,
Under Secretary.

Penle7in Strong, Ese.,
Governo
Federal Reserve Bank,
New York, N. Y.




,

ILIARVARrio UNIVERSITY
COMMITTEE ON ECONOMIC RESEARCH
CHARLES J. BULLOCK
CHAIRMAN

CAMBRIDGE. MASSACHUSETTS, U.S.A.

J. B. HUBBARD

CHARLES F. ADAMS
NICHOLAS BIDDLE
FREDERIC H. CURTISS
WALLACE B. DONHAM
OGDEN L. MILLS
EUGENE V. R. THAYER




W. M. PERSONS
EDITOR REVIEW OF ECONOMIC STATISTICS

EDITOR HARVARD ECONOMIC SERVICE

F. Y. PRESLEY
GENERAL MANAGER

November 24, 1922.

Governor Benjamin Strong,
Federal Reserve Bank of New York,
New York City.
Bear Mr. Strong:

Your description of stabilization at the
1913 levels as "little short of murder or suicide", if it
could be put forward at this time by every imnortant federal reserve official, would do more to alley unrest and
avert dangerous attacks on the Federal Reserve oystem
than anything else that could be done.
If you decide you cannot go to the Farm
Bureau meeting, I shall fully annreciate the reasons; but
I shall be very glad that I put the matter to you because
it fives me great satisfaction to know that you were inclined to consider the nronosition.

Looking forward to seeing you at this
office next week, I remain
Yours sincerely,

f_ 63
CJB/AMB

Et Ain \v_. \1 I] J rINIE \VIE RRFS' ltvirY
COMMITTEE ON ECONOMIC RESEARCH
CHARLES J. BULLOCK

W. M. PERSONS

CAMBRIDGE. MASACHUSETTS, U.S.A.

CHAIRMAN

EDITOR REVIEW OP ECONOMIC STATISTICS

J. B. HUBBARD

CHARLES F. ADAMS
NICHOLAS BIDDLE
FREDERIC H. CURTISS
WALLACE B. DONHAM
OGDEN L. MILLS
EUGENE V. R. THAVER




EDITOR HARVARD ECONOMIC SERVICE

F. Y. PRESLEY
GENERAL MANAGER

November 22, 1922.

Covernor Benjamin Strong,
Federal Reserve Bank,
New York City.
Dear Covernor Strong:
I have your letter f November 21,
I hope that your
and arnreciate fully your position.
colleagues whom you consult will feel that it will be
desirable for you to go to Chicago, and shall await
with interest the result of your inquiries.

The general line of thought you
propose for such an address as you thought of making
seems to me to be excellent; but as you develop it I
think it necessary to say something that will show,
so that no one can mistake it, that stabilization at
Farmers, like manu1913 levels is not in your mind.
facturers and merchants, are Pretty nractical gentlemen,
and they want a definite answer to the question that interests them at the moment.
'e are looking forward with Pleasure
I have been obliged to
to seeing you here next week.
decline an invitation to lunch with you that day, but my
colleague, Persons, will be at the lunch, and will bring
you over to our office afterward, where I shall exrect to
see you.

I was delighted to learn from Allyn
He
Young that he is going over to see you this week.
has got interested in his job, and it will be a mighty
good thing if we can all of us manage to keep him interested in it.

With best wishes, I remain
Yours sincerely,

CJB/AkB

November 25, 1922.

Dear Professor Bullock:
Thank you very much for your note of the teenty-second.
There are real and practic.=.1 difficulties about my making
I am quite unwilling to address such a body of a,en
the address.
without being frank and straightforward and explicit, and it may he
that such a talk tie that liould confirm in the min,!e of zany the
mistaken notion held in some parts of the west that the Peserve
System is run from Ball street and twat I am the chief devil in the
conspiracy.

So far as stabilisation at the 1913 level is concerned, I
I douot very mucn if we could
never entertained :Aloe a notion.
carry out such a program even if we did entertain it, and, assuming
that we did and were able to carry it out, I think it would be little
This notion, I believe, hes
short of murder or suicide, or both.
taken root in some parts of the country because of the belief,
hard indeed to eecape, that our efforts in 1919 to resist inflation
became converted in 1920 into adefihite policy of deflation.

The chances are that I shall decide not to make the
address, but Sydney Anderson is dining with us tonight and I
want to get his vie.a before finally decidinj.
I am looking forward to seeing Professor lcung.
With kindest regards, believe me,
Very truly yours,

Professor Charles J. Bullock,
Chairman, Committee on Foonomic Fesearct,
Harvard University,
Cambridge, MA,3e.

BS.NSB




!IIIIIT-

FEDERAL RESERVE BOARD

OFFICE OF VICE GOVERNOR

WASHINGTON
November 21, 1922.

Dear Governor Strong:

I have read with a good deal of interest Professor
Bullock's letter of November 18th, with relation to your making
an address at the National Convention of Federation of Farm
Bureaus, and also your own letter, and while., as you say, there
is cnsiderable difficulty and danger involved in making an address
of that character I think it might be a very good thing for the
Governor of the largest bank in the Federal reserve system from
the financial center of the country to show the farmers that we
really have an interest in their welfare, and I see no reason
why you should not make the address if you care to do so.
This
is not a matter that I thought I ought to bring before the board,
itself, but I have talked it over personally with Mr. Mitchell
who has also read the letters and who agrees with me.
I am not sure that I know
ideas are with regard to the Federal reserve system, but I disagree
considerably with some ideas expressed by Professor Sprague, who
seems to tnink that the Federal reserve system should be administered with relation to the effect of its rates on prices, and I think
that is a matter we ought to keep away from as much as possible,
though of course we know credit does have an effect on prices.
Apart from anything the Federal reserve system may do, furthermore,
it seems to me that it ought to be said that history has a very
uncomfortable way of repeating itself in financial mattera and no
one can say that we have reached a stability which will last for

rtant commodities,
ought to be
er, and they
hey come down
ving us somewhat
o cost them con-

ouch upon possible
rsonally pretty well
inciple of putting
t will be safe
er.
e President's
me as one of the
ng, and I have

de made one reference
control of the
hich you ought to



14r. Benjamin Strong

2

I tnink it not improbable that he has reference to the bill which
Eugene Meyer is preparing which will make nine months' paper
eligiole for rediscount and which will probably provide for
federal incorporation of cattle loan companies.
Mr. Gilbert
seems to think the bill a pretty good one, or at least not a
bad one.
I bad a chance to talk with only one member of the
iianking and Currency Committee, today, who knew nothing definite
about the matter and I don't knos yet whether the bill has been
introduced or not.
Yours very truly,

Vice Governor.

Mr. Benjamin Strong, Governor,
Federal Reserve Bank,
New York, N. Y.




V

NJvember 21, 192:1.

rear Prefeseor Bullock;
It was very good. of you indeed to give further thousht to our
convereati3n at the hank, which I enjoyed greatly, and from R(17:7'. meot.in;7r

I am frPnk to sty es sLays profit at tha bank.
It ie r groat temptation to reply at once to your roceeet:on that
I reuld go to Chicago if the arrcns,ement enuld to wee, but I think I
should explain rat or frank-1,
but confi:iantiell;, !ht, Az...t be *ha cccasion
1271,S

.

I a- uweilline to make an addrees of that character unless it is
freak and retconably complete.
It is difficult to make a frank addrens
sithou, enterine, into subjects of contreversy end in e rPther i.nfermal
-.ley the officcre of the Reserve Benks have had an under-t.rrl:inr 'not elways
oeserved, to be nure, but still, in general, fairly yell regarded) that we
I
could not discuss these controverted questions at public meetings.
hesitate to depart from that polio; and that is one cf the difficulties.
The ether lies in the fact that it would be construed that I wee speaking
I have no antherity to do Po unless
for the Federal Reserve B7-tem.
got it, and it seems to me that if Ruch a meeting is tonbe addressed bt
anyone who is able to epeak for the System it shouldbe t member of the Federal
I just learn thrt. Mr. Mitchell is making en rddrees in
Feeerve Board.
Ifireeapolis in shich he has decided to "side-stec" the subject of inflet!)n
an4 deflation end sllacf the quostims upnern:ort in the minds of the 7.(50T1r1
it tnot section, and it appears that that may be the policy of the membere
of the
oard.
That I have done, hOwever, is to ssi the ;dens of some of my
anscciateii in the Treasury, as sell eF in the Reserve Board, in regerd to
the meetin, - whether they feel it would he desirable for me to attend
it and mek
an address, - and I will await hearing from them before eendin;,
you any fu
nord.
n case I aid make suet, r;r1 address, I think it sould be An
elaboration
Every individual in an economic
r the following tholOat:
sense is two individuals, - as s producer he ir interested in high prices;
as aeaneumer
e_ie interested in for pricer; but in his combined capacities
of producer a d consumer he is interested in stable prices.

A farmer commences his business year in his cspacty as A

r

"4411116-

consumer; hs is buyine supplies and labor.
And during that period his
anxieties begi.
Developing
sr to the prospertive value of his crop.
this point, of
le., I think it mi'ht be possible to approach the subject
of
nfletion n. ,d deflation through a very simple exposition of the quantity
dory and mek
a rather A. B. C. talk on elementary lines which would take
the
"-;.-mer rig. t through the'ntere of is stability and ability to him that the future of
his beF"
cycle t his business year and show forecaet




Professor Bullock

11.21.21

with retsbnebls assurance.

How does it strike you?
What you ea, about, the members of the Federation
Farm 9ureous
impresses ms very much.
know some of those men and Pere a hixh regard
for the;...
-If they could only be mode to reeli7e that some of us hire in
H.s
aro earnestly interested in tLeir welfare it i.ould be helpful to
both of us

Atain ihnneing you for aritin
Sincerely

Ur. ulio,

Uman, Commi-itee on conomic hesebrch,

rvard University,
tbrid6e, kace.

.UEB




me,

I

ours,

spa,

110AS
'1)(0 1 0,

S

922

13'5

)C

1105''

nosIrember 20, 1922.

/0 I

°

A'Y
etter which I have just received from Professor

er was written to me after a lengthy discussion

s in the west and northwest where he had recently

ession that the resentment against the Federal

to difficulties for us in the y.ay of legislation

unteracted promptly by every reasonacle means in

he difficulty and danger involved in making

first instinct aculd be net to do so.

avid,

Gn the

urged me very stroraOy and some of my associates

ood thing to do and I am writing to inquire

you, and possibly some of your associates on the

for granted that either the present Congress, -

- will undertake to make some important amendments

se amendments are likely to take the form of depriv-

ome of its present powers.

tion.

'' hither they can pass

I have been privately informed that

onverted to the contrary, is determined to make an
Senator LaFollette has announced it as part of

who are likely to move in the same direction pith

he beet answer to all of this criticism and




I

Mr. Platt

2

11.20.22

ignorance ie a constructive and helpful program by the Federal Reserve System
and some convincing evidence that it is sympethetic in its attitude arel not hostile,

especially with regard to agriculture.

Of course it is none of my business directly, but I, peraonally, believe
that were the President convinced of the wisdom of making some constructive legisla-

tion*

part of the Administration's legislative program it would be more helpful

than anything that could be done, so I am writing to ask, first, veth,3r you think
it would be desirable to make such an address as is suggested by Professor Bullock's
letter, and especially to such an audience, and, second, whether you dc not think the
time has arrived when the Federal Reserve System, for its own protection, meet not
make some move towards constructive work with respect ito agriculture and the livestock industry.

I must got word to Pr-1'0380r Bullock very promptly and hope you will

not mind telegraphing or telephoning me shortly after the reeei,t of this letter.
V6ry truly yours,

Honorable Edmund Platt,
Vice Ce.verner, Federal easorve hoard,
Aashiregton, J. C.

BS.M3B
Enc.




November 20, 1922.

Deer Mr. Gilbert:

When Professor Bullock was in my office recently, we had some discussion

of the attitude of the West and eseecially the Northwest with regard to the
policy of the Federal Reaarva System.

tie had just

ade a trip through that

country and had returned imereesed with the fact that the entire agricultural
community in that suction feared that it was the policy of the heeerve $yste

to

eureue deflation with a view to the reestablishment of the 1913 .rice level.

Of

course, that is nonsense.

I was much surprised to gather from what he Wad that

himself had some such delusion ae to our views.

When I told him that I thought

it was nonsense, and would be in any event a reckless eolicy, he expressed some

surprise at hearing me make that statement, and then intimated that he thought it
should be made publicly.

As a result of this talk, he has apparently been

,/
giving a good deal of thought to the subject and has just written we a 1 ter,
of which the enclosed is a copy.

How does it strike you?

Would it ee worth

while to go out into that country and make such a talk as is suggested by his
letter?

Of course, there is some euestion as to whether any such address should

be made by me.

Professor Bullock's idea was that it would coee better fro

"Wall Street" Governor than from any one else.

But that is a matter of opinion

with which others may decidedly differ.
I should have a

rompt answer as he will need to sand word to his

friend Mr. DeeKenzie.

Honorable S. P. Gilbert, Jr.,
Under Secretary of the Treasury,

Washington, D. C.


Yours very truly,

Ban j. Strong,

Governor.

the




V.111-7,1t-Z§{743 Irlft7




B. S.

2

11/18/22.

such exceptional interest would receive "favored nation" treatment.
I am therefore writing to ask whether you would be
able and willing to go to Chicago on the 12th or 13th of December,
and would say again that it seems to me that this is the most appropriate occasion conceivable for such an address as you intimated
In view of possible developthat you were thinking of delivering.
ments at Washington and elsewhere during the next two or three years,
I believe it would be extraordinarily desirable for you to go to
Chicago in case Mr. MacWnzie can secure a cordial invitation for
you to come.
Mr. MacKenzie and most of these other Farm Bureau
leaders are essentially conservative men, and all they need is to
Of course they have to deal with their "gang" just
be educated.
as labor leaders and capitalists and college professors have to
I have a notion that you
deal with their own peculiar "gangs".
could make your office in New York a favorite place of resort for
Farm Bureau leaders who happen to be visiting the great metropolis,
and that it would be a wonderful thing for the country if this
could be brought about.

Those fellows don't think, until they get well acquainted with us, that bankers like yourself or college professors
However,
at a university like Harvard are more than half human.
I will not say anything more along this line, except that I hope
you will feel like going to Chicago, and that you will let me know
what you think about it; I believe that you will probably receive
If for any reason you cannot go, or
a very cordial invitation.
think you would better not go, I think it might be a useful thing
for you to write to my friend MaaKenzie, inviting him to call upon
His name is Mr. H. C.
you the next time he is in New York.
liscKenzie, and his address is Walton, New York.
We are looking forward to your visit to Cambridge.
Professor Sprague is arranging fbr my colleague, Persons, to meet
you and bring you over to our office some time during your visit
We are occupying very primitive and crowded quarters, but
here.
I should be glad if you could see Persons in his "lair".
Yours sincerely,

CJB/Ala

FEDERAL RESERVE BANK
OF NEW YORK

CROSS REFERENCE SHEET
FILE NO.

SUBJECT

SEE




FILE No. 71 ??,--wi-e-teLet,
(?)51-"-tfil-f4L
LETTER OF Z.0
403.
I/47/2,
DATED

-I)
RSECRETARY AND ASST TEASURa

PRESIDENT
THOMAS B. MCADAMS
VICE

WILLIAM G. FITZWILSON

'1 MERCHANTS NATIONAL BANK

DEPUTY MANAGERS

RICHMONO,VA

FIRST

JO
PRI

PRESIDENT

I. PUELICHER
IT MARSHALL & ILSLEY BANK
MI LWAUKEE,WIS.

SECOND VICE PRESIDENT
WALTER W. HEAD
PRESIDENT OMAHA NATIONAL BANK
OM All A, NEB.

EXECUTIVE MANAGER
FRED. N. SHEPHERD
FIVE NASSAU STREET,NEW YORK CITY

TREASURER

F.'A.IRISH

L.A. MERSHON

MET1 I CAN BANAT RA
AMAMI AT I gmi
FIVE NASSAU STREET
NEW YORK,N.Y.

THOMAS B PATON




SAVINGS BANK DIVISION

E.E.MOUNT,JOY
NATIONAL BANK DIVISION

G E.ALLEN

STATE BANK DIVISION

MANAGER PROTECTIVE DEPARTMENT

L.W. GAMMON

EDITOR OF JOURNAL

VICE PRESIDENT FIRST NATIONAL BANK
FARGO, N.D.

GENERAL COUNSEL

TRUST COMPANY DIVISION

L.0 WOODWORTH

JAMES E. CLARK

BRANCH OFFICE
708-9 COLORADO BUILDING, WASHINGTON, D.C.
CABLE ADDRESS."A SAN: NEW YORK

tober 24,

191-:2.

Benjamin Strong, Governor,
Federal Reserve Bank of New York,
15 Nassau Street, Nev York City
Dear GoVernor Strong:
This to ack owledge the receivt. of
yours of October 20th enclosing coy of your address

/V

delivered at the dinner to Pre ident .iicAdams.

Thank y

for the courtesy.

Y urs lu,ry truly,

Editor of the Journal.

cis.

)




October 20, 1922.

My dear Mr. Clark:
\ -P-

I enclose copy of the remarks which I Tsae ,at

tae luncheon, Out you will observe that I have eliminated
a little facetious introduction which does not team
appropriate for printing.
Yours very truly,

Jmes E. Clark, Esq.,
Editor, Joilrnal of tbe Anlrican rieners Association,
5 Nassau St.,
Ner Yorle City.
85. MM

enc.

PRESIDENT
THOMAS B. McADAMS
VICE PRES. MERCHANTS NATIONAL BARK

RICHMONO,vA

FIRST VICE PRESIDENT

JAW I PUELICHER
P

ENT MARSHALL A ILSLEY BANK

MILWAUKEE,WIS.

SECOND VICE PRESIDENT

WALTER W HEAD

PRESIDENT OMAHA NATIONAL BANK
OMAHA. HER

EXECUTIVE MANAGER
FR E 0. N. SHEPHERD

FIVE NASSAU STREET,NEW YORK CITY

TREASURER
F. A. IRISH
VICE PRESIDENT FIRST NATIONAL BANK

FARO°, N.D.

GENERAL COUNSEL

SECRETARY AND ASST. TREASURER

THOMAS B PATON

WILLIAM G FITZWILSON

THTe

DEPUTY MANAGERS

L A MERSHON
TRUST COMPANY DIVISION

MERICAN. BANKERS

WOODWORTH

L

SAVINGS BANK DIVISION

E E.MOUNTJOY

INIty3134

NATIONAL BANK DIVISION

G E ALLEN
STATE BANK DIVISION

FIVE NASSAU STREET
NEW YORK,N.Y.

MANAGER PROTECTIVE DEPARTMENT

L.W. GAMMON
EDITOR OF JOUR NAL

JAMES E CLARK
BRANCH OFFICE
708-9 COLORADO BUILDING, WASHINGTON, D

L.

CABLE ADDRESS:AsAN7 NEWYORK

October 19,

Strong,
the Federal Reserve Bank of Ae
reet, New York City.

19L.c..

York,

w

rnor:
4.S.
C

ll you/be kind enough to send to me for us:;
nal Ovthe American Dankers Association, a copy
ks"which you made at the recent luncheon of the
One Hundred to the .6xecutive Council of the
kers Association of New York State.

is function is not covered by the stenographers;
ecessity of making this appeal to you.
Yours very truly,
JOURNAL OF THE
CAN BANKERS ASSOC1A




Editor.

ON

-

31 PINE STREET

NEW YORK
October 19th, 1922.

My dear Mr. Strong,

i
f

i

/
.4.

/

..

Q AV

/
0
I quite agree with you and h94e reed your paper
\, o

/

I myself stoke very often in my

with very great interest.

country of the false bookkeeping in Oiery respect and of the

false working in that way that we #e not doing always what
would have given the best product

e result.

The real economy

begins there where we have to

ace our working force, and you

are absolutely right when yo

say that the last 40 years we did

not develop our forces in tte right way and forgot where nature

demands from us natural
always very happy to t

elp and peaceful work.

I shall be

k with you again.

lways yours

Hon. Benjamin St /ong,

Governor, Federal Reserve Bank,
of N4i York, New York.




raiw H




J. H. PLIELICH ER,

MARSHALL & ILSLEY BANK

J.H.DAGGETT, VICE PPesioenrr
AND Mom BOND DEPT.
JOHN E JON ES.
CASHIER
H.J. PAINE. AssisrANT CASHIER

FOUNDED 1847

JOS.C.MOSER,AssSTANT CASHIER

A.B.NICHOLS.JR, ASSISTANTCASHIER
C.R.JESKE.ASST BRANCH MANAGER

MEMBER FEDERAL RESERVE'SYSTEM

CHAS. F. ILSLEY, AssT CASHIER
ALBERT S PUELICHER,AssT.CAsH

MILWAUKEE.WIS..

October 10, 1iE2.

Ir. Benj. Strong,
Federal Reserve Banx,
New York, N. Y.

I

Dear :Ir. Strom::

Thar

you for your letter of October
-Ftt

5th and the copy of your aress given at the
luncheon of the Committee of One Hundred. I
shall very much enjoy r: eading your address.
It

was a great pleasur

of siting beside yo
There is

where the busines

P'PrerocAr

JOHN CAMPBELL ,,Acc PRESIDENT
G.A.PEUSS. VICE PRESIDENT AND
BRANCH MANAGER
F. X. SODDEN, VICE PRESIDENT

to have the opportunity
at the luncheon,

o doubt in my mind as to

man should stand with regard

to our national kiroblems.

Very truly yours,
,

!/-2,

President.

36 BROAD STREET

October 9th, 1922.

Benjamin Strong,Esq.,
ederal Reserve Bank,
15 ::assau Streot,:e York.
Lly dear ;overnor Strong:-

That speech

f yours reads just as well as

it sounded:

It is extraordinary how an exact statement,at a time of

generalizationsoill clear the Wtmosphere.




Thank you:

SinCerely,




iittite6 fitatetz Ertur.t Tompastv of Nett/ tut*.
45 & 47 WALL STREET.

EDWARD W. stiFILDow. Presitirst.

JOHN

STEWART. riff: irntan

Board,.

WILLIAM M. RTNOSI.b.-Y. Ist.Vieve. Prestiletstti

WILLIAMSON" PELL , 1 err Presitiottt.

WILFRED *.J.Wcym:ES'I'll, Seers/ter.%

FREDERIC W. R0/3BERT. Asst.SPerelat:y
CHARLES A.EDWARDS. Asa /. Secretory.
ROBERT S. OSBORFTE.A.Tat. Serretarj
WILLIAM C. LEE. Asst.Serretar.):
THOMAS H.WIL SON. Asst. Secretary
WILLIAM O. GREEN. Asst.Serrelary
ALTON S. KEF:LER , tisst.Se tetc):

October 6, 1922.

My dear Mr. Strong:-

I am greatly indebted to you for your kink let ter of yesterday
LooSt \NAenclosing a copy of your address at thelun)Seon on Tuesday last. I
lieve that it should have
was much impressed by what you said., and
a wide circulation. We especially nealt at this time to apprehend
the princi.)leswhich you so forcibly expressed.
Believe me, with kind regalds,
k

k

Yours sincerely,
7 44.44.,4

Benjamin Strong, Esq.,
Federal Reserve Bank of New York,
19 Nassau Street, New York.




,

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