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F.D. 12A.3

No

Federal Reserve Bank

579St tvG

District No. 2

P /9 tv72,5'

Correspondence Files Division

SUBJECT

/)

S772ONG 'S

GoRPES.

/ /II I.)

7774

/ 7 /7

hi/7W
S

2/.s. secfret

F

0

II.
,

July 14, 1921

Dear Mr. Secretary:

Referring to our talk or last week, Oevernor Harding ie at the present
time in New York, having come ovur for the purpoee of discussing an opportunity

whieh bee been offered him to associate himself with some Aew fork bankers in an

leportant entarprice.

I have had e talk

it

him along the lines of our dis-

cuesion of laet Thureday, and believe that ho ie pereuaded that tie duty lies in

continuing te serve out at leaet hie preeept tr

t office on tee Federal Reserve

,a,,Board.

On the ether head, I feel that I should not influence Aim to pursue this
conree if it meane foregoing a favorable opportunity to enter bueiness in Sew fork,
and without any knowledge or underctaading ae te the views of the present Adminis-

tration as tj his work and uoefulneez in hie present eosition.
Governor Herding, in my upinien, he performed a service of the greeteet
eAele to the Federal Reeerve Syetem, &wad to tale oeuntry, and has done it with
wieder, and coueege.

I gain the impreeeion in my talks with him that he is be-

coming incraesiaely coescious, as I 21119 ef the danger of too much poiitical
influoace entering into the maaagemeat or the Federal Reserve System, a asvelop-

ment .leich he ha e resisted frem the outset, end in which he has been supported
by the management of the different reeerve bunko, and ie general by the bankers

and the public.

It seems beet that I ebould write this to you frankly, because

believe, as do all thpre who are students of the Federal Recerve Syetem and who

are familiar with ite operatioes, teet an increasing political influence in the
manaement of the Syetem will ultimately be a death blow to its prestige uad
SUCC68Sw

r

Honorable John N. Weeks

July 144 1921

These views are emphasized by the report which I have juet received

that there is 80Me prospect of the iassage of a till recently introduced in the
Senate 4 :Osnator Capper, providing that the Secretary of Agriculture shall be a
member of the Feder&I Reserve board.

My opposition to this proposal is not based

upon auy euggestion of personal disqualification of the Secretary of Agriculture.
I do not know Lim, aid have no knowledge of hie :us.lifications for the office.

The

proposal will be interpreted by the country, wad I believe correctly, as an intention
04 the part A° CoLgrace, aich ib supported by the Administration (if the bill passes
and is sigaed by the

-elsi4nt), to inaugurate politioftl control.

The objections

to the proposal ,.ro .principally four:

(1) The one to ehich. I hive referred -,tove, that it would mean a political

and, ultimately, a partican control of the Syrtem.

(9) it would introduce a representative of special interests. Agriculture
would enjoy an advooate to the exclusion of all ether interests, and the tendency

of that particular interest, ia the present temper of the country, would be distinctly detrimental to the ystem Aore it allowed free ply or strong influence.
(!) Cabinet..temers :.;re engrossed ritt the duties of their departments
aud cannot regularly attend the msetings of the Board.

Such a membership would

result in delays and embarrassment in the despatch of the business of the System.
(4) Thu Fedoral aeserve System is hot ideally designed l'or furnishin3 the

type of ored'it needed 'ay a considerable class of our farmers wid cattle nen.
are at preseat served by the Federal Farr Loan Organization which provides funds

for long tiae mortgage loans.

Those who require accommodation for not aver

=oaths are adequately served by the Federal Reasrve System.

The farting business,

however, le seasonal, %ad largely annual, and the ?roduction of live stock usually
covers a cycle of possibly two years.
eix months.

They reed longer credits in many cases than

if the a3ricu1tural interests ,),,re specially represented on the

July 14, 192'

Reserve Board, the tendenoy will, be to preen for special privileges, special

.egislatien, end other adventages, such ae long time credit, or credits for unliqeid ead unliluidating transectinne, whieh ehould be discoureeed rather than
promoted by the supervisors ef the System.

This kerticular matter I am citing eimply as an illustration of one of
many developeents

the ';east year, which have led us all to reel ewe) anriety as

te tee future of the Syetem, andI would indeed feel anxious eere ee to lose now
the courageeus leederebii of Governor htrding at a time when he is meet needed.

Let me repeat the eueeertile eeich I have taken the liberey of uking to

you, thet all f theee eat4er6 can be dealt with by en underetenane between the
President end G. vernor Harding.

I believe that et. ereater eervloe can be per-

formed for the country in the difficult times threugh which we are now othoing

that to ineure by thi

.ean: e eentirueeoe of the hearty end eonstructive eupport.

eel ceoeeratiee of the entire Syetem, by giving the head of the System the courage
and confidence whioh he will feel if eup:orted by the %dee Executive.

Apoloeisieg for the length of tele letter, I beg to remain,
Respectfully yours,

Benj. Strong,
Governor.

Honorable ...leen W. Weeks,

Secretery ef the ear Department,
Washington, D. C.

WAR D EPARTM ENT,
WAS H IN GTO N.

ACKNOVLEDOED
JUL IC, 1921
July 16, 1921.

13, S.

Dear Mr. Strong:

I have your letter of the
fourteenth ani approve all you say in the matters
to which.you make reference.
I will do what I
can, as I have once or twice in the past, to make
the position of ;the, qovernor a stable and satisfactory
one, for I think I aprdciate as well as one can
outside of the system, how important it is that
that be done.

Sincerely yours,

,

Benjamin Strong, Esq.,
Federal Reserve Bank,
New York City.

9

JUL

sECI,

1.E3

lIqtii

GovEtzsolks

192.i

o

N.

0

July 18, 1921.
PERSONAL

Der Yr. Searets.ry:
Thank you for your rote

July 16.

1

1.m relieved

to have your asEurance of sympathy with the expressiDne contain-

ed in my letter of the 14th, which were inspired entirely by
my deep interest in the Federal Reserve System.

Sincerely years,

Honorable John W. Weeks,
War Department,
Washington, D. C.
BS:ftM

)

P

6,

Denver, Colorado,
April 27, 3917.

Dear Mr. Johnson:

I lms very glad today to receive your letter of April 10th, with
further word in regard to your plans

and of your doings in Paris.

I am called back home for a short stay and am leaving tonight,
and, until I reach New York,

it

seems impossible to send definite word

to you or lir. Lyons in regard to the exact date of leavin

the

house,

but I will see that notice is given and, of course, leave everything
in good Shane, with Flora in charge.

In case I return as expected and neither you nor the children
anticipate occupying the house until

the middle of June, it

we could stay on until nearly that date.

on readhing New
May.

may be that

On the other hand, I may learn

York that it will be necessary to leave by the 15th of

If necessary, I will cable you more definitely in a week or two.
With kindest regards and many thanks for your letter, I am,

pvery

truly yours,

C. A. Johnson, Esq.,

American Relief Clearing House,
5, Rue Francois ler,
Paris, Prance.

BS/CC
P.S. Sorry to say that clamps had been put on alcohol before the arrival
of your letter and no further importations are possible. I will leave a

moderate supply of Whiskey, both Rye and Scotch, and cocktail ingredients
with my compliments and sorry there is not more.

AMERICAN RELIEF ADMINISTRATION
Hotel de Crillon, Paris.

5th. September 1919*

Mr. Benjamin Strong,
American Embassy,.
London.

Dear Mr. Strong,

Colonel Logan has asked me to send you the enclosed tabulation.

Under separate cover we are sending a complete set of America
Relief Administration Bulletins.
Faithfully yours,

Secretary to Col. Logan.

Ritz hotel, Tiondon,
September 11, 19h.

Dr Mt. White:
Thank you for you.: note o. Jeptember
5th enolosing the eibulation which I hnve left
with Colonel Logan, and for the set of American
Relief Bulletins which you:were good enough to
send me.

Yours very truly,

G. A. White, l.,

0/0 Col. James A. Logan,

hotel de Grillon,

BS/P7

FOOD SECTION
.F0-/ROAST OF SITATIOP IN 1,717AD GRINS
_THORAYDUM FR071 DIRECTOR GENERAL OP 2,7LIEF.

The present date gives the last opportunity for pre-harvegtforecast.

The next available figures will

be harvest data, of

little additional value until the first of September.
continued to deteriorate in the United Kingdom.
proved in France and Italy.

Bread Grains

Wheat has

It has not im-

have improved in Germany

and Hunpary and have held their own in Czecho-S7ovakia.

Bread

Grains have held their own in the South:=East, but the maize is so
retarded,

the condition-so poor and the climatic prospects, on

the basis of experience, so unfavorable that we must fear a maize
crop so small as to exclude the possibility of exportation of any
material amount of wheat.

Crops in Denmark and Sweden are stated

to have improve'd and with rather heavy .carry-overs, their import
-.:equil-ements will tend to be

lower.

The condition of spring wheat in the United.States and
Canada has deteriorated so rapidly and so gravely as to have reduce
the figure for exportable surplus from North

America

very heavily.

The conditions for the new crop in India are favorable, in the
Argentine unfavorable.

The margin of safety

betwPenqmport,deman

and exportable surplus has been notably narrowed during the past
month.

July 24,

Number

aiy

FINAL PRE-HARVEST FORECAST

2

20

WESTERN EUROPE

THOUSANDS OF TONS

BREAD GRAINS

COUNTRY

CROP EX SEED

MINIMAL CONSUMPTION

MAXIMAL CONSUMPTION

MINIMAL IMPORT

MAXIV_AL ITT0RT

7,300
7,380

8,100
10,350

5,330

6,600

FRANCE

1,500
5,700

1,680

4,550

ITALY

4,000

7,000

7,200

3,000

3,200

BELGIUM

340

1,350

2,380

1,010

.

FINLAND

250

650

800

400

:

NORWAY

30

380

- 410

350

380

SWEDEN

710

1,010

1,100

300

390

DENMARK

410

540

920

130

520

HOLLAND

470

1,190

1,460

720

990

SWITZERLAND

140

610

680

470

540

SPAIN

3,780

3,780

3,900

000

120

TOTAL

17,330

31,190

37,200

13,590

19,860

UNITED KINGDOM

:

'

2,020
,

550

NU!IBER

FINAL PRE-HARVEST :ORECAST

3

ESATERV EUROPE
,

COUNTRY

CROP EX SEED

DREAD GRAINS

THOUSANDSOOF TONS

!dilli41kLY CONSUMPTION

MAXIMAL CONS!JYYTION

MINIMAL IMPORTS

NAXIMAL IMPORTS

GERMANY

8,500

11,160

12,230

3,000

4,250

AUSTRIA

520

1,350

1,460

810

940

HUNGARY

1,850

1,800

1,860

POLAND

4,000

4,860

5,900

800

1,200

CZEOHO SLOvAKIA

1,720

2,160

2,780

200

400

ROUMANIA

2050

1:j800(

3,240

S.H.S.

1,240

1,350

2,000

PULGARIA

1,160

900

960

,360

0,430

TOTAL

21,040

210

4,AID

6,900c

FINAL PRE-HARVEST FORECAST
BREAD

COUNTRY

CROP EX SE7T

MINIMAL CONSUMPTION

GRAINS

MAXIPAL CONSUMPTION

17,330

31,190

37,200

V

EASTERN EUROPE __040

25,360
56,550

30,430

...........

WESTERN EUROPE

TOTAL

38,370

67.:::10

PROBABLE EXPORT

MINIMAL

UNITED STATES
CANADA

THE PLATE
AUSTRALIA
TOTAL

10,000
1,500
2,500
2,000
16,000

MINIMAL IMPORTS

-.......

13,590

4,810
AW400

strI,AL IMPORTS

1:.,860
:

6 r 980
26,840

SURPLUSES

MAXIMAL

11,000
2,000
4,000
4,000
21,000

In the event of a good maize yield per average in Roumania, Bulgaria and S.H.S., they will have between 1,000 and 1,500 for export, but with
present maize forecast thsis vnlyy jingfrotallbl.

0 Includes iron Ore, Iron sheets

TOTAL REQUIREMENTS OF RAW MATERIALS
OF ALIT2D AND ENEMY COUNTRTYU----

profiles, rounds, wire, taken
at mien prices of £12 per ton.
# Includes copper square, rounds,
blocks, sheets and wire.
4,

1.

1761-17ore

ermany

,4,Als

84,40

zecio7-7rei7617-1.
Slovakia

50,000

0,

ron
Kanganese
Ore
erroManganese
Bohemian
Lignite

:

SO

-145ItaxillilithuarcareIll and.

OS41

(

8,300

,

-----7g7777:
39,44T--8,300

406,000
S;300
Os

1e1s

'SS

,0110

-------1Z,432

600

1/

3/3

ma

-------11575vt-

mon a

Lead

600

TotaI
Requirements.

46,000

opser
:rass sera
Brass rods
Brass Ingo

fin

Although amounts shown
are monthly requirements
a minimum supply would
have to be given at once
for three monAs.

1,000

l'yrites

An

:

ons.

ri-67--15inn.

sag

NOTE

.

ii

.

1,340,150

580

13D--------117

-----174691/2

ra e

marei-----Nickel

TANRIED
PORWA

87,400

4,989

102,650

3,680

1,042

600
, .

1,541,091

,z

0 Steel squares, rounds sheets,
wire & Tool steel 0

TOTAL REiOIREMENTS OF RAW MATERIALS
OF ALIIEnINDTEREETIMUNTRTEB---

.f.,'85 per ton.

ermany Aus r a

one
--Yeamonth

'o

an.

Note : Although amounts shown
are monthly requirements
a minimum supply would
have to be given at once
for three months.

- Tons.

'ouman a

er. a

s

on a zee ouan a

e

an.

Slovakia

o a

Requirements.

PROUGHT
FORWARD

1340,150

580

87,400

4,989

102,650

3,680

1042

600

1541,091

rome
chrome dye
7737-STWO:
Ferro
Tungsten

2,360

2,300

Cr-

44

Tifivitlar-

70

ore

70

Tungsten
Powder

.

rwiro

Sillicon
rri76-0-i.e
the G.O.B.
Zinc refined

Nickel

8,0O

8,700
..

160

25

WEbhite

TaTETETCARRIED
FORWARD

35

.0

--1-6---

erro

Chrome
Sulphur

35

317

_

_

62b

,c,b

+

1,24T

1,240
1/2

1/2

1353,175

675

87,716

5,064 102,810

3800

1042

600

15b4,8861A

3

TOTAL REQUIREMENTS OF RA! MATERIALS

-----Gr-=-ana A

/

ON IS

--TFF-61-EFTEEIE7- Tons.

Note

:

Although amounts shown

ttre monthly requirements

a minimum suppl-,- vould have

to be given at once for three

months.
Germany

COM&GDITY

Brought
Forward

Trail-TO

Austria

1,353,175.

Ramie

675

Poland

Roumania

87,716

5,068;12

Czecho-

Slovakia

Serbia Esthonia Lithuania
3,800

102,810

1,042

Lettlane_
WU

Total

Requiremen

1,554,886

9a7

-1-.7775------

175

76-a-Tnut

-

Fibre
MI5liides &

1B0

Skins

20,000

340

------776770

960----7
8 mil1,600

22,400

800

lion

XAustria

sq;ft.
upper

7iiITT-e7EB------5,160
Quebradh-87

Extract.

Aralonia.
Ohrome
Oxide

4,300

- 1Thia

FORWARD

500

,460

16,000

8,000

---------

Y-60"

100
731

&X

100

1,391,166

2,325

105,416

Rubbertraw)
RTETTi.(jaste)
CARRIED

leatizr

100

1,Z31

200

t518 lit

111,010

M7175-

4,600

1,042

600

1,621,481

-4TOTAL RETIREMENTS OF R 1 nATERIAIS

of AIZIED AND ETV:7==ES

NOTE

PUR-nn-7011M-7-TOns.

CONMODITY --Germany
BROUGHT
FORWARD

Shellac
RFFin
Oils

Austria

1,391,166
53
3,125

Petroleum
Turps
Oil
Castor
Cil
Tallow
Colza
Fertilise
CARRIED

Baitla Estonia

5;318]t

111,010

4,600

60

400
250

3. 4E---

FORWARD

500

Requirements.

1,042

26,500
500

12,500

800

160

253

3,631 1/2

1250

_

6,000

1,621,431

600
18

250

would have

once

for three months...,
Total
-Lithuania Lettland

175

105,416

Slovakia

,

15,000

are monthly requirements

to be given at

OzeCho-

12,500

LUbricatinp

Although amounts shewn
a minimum supply

Poland Rouman1a

25,000

Benzlne

2,325

:

100

100

.

22

22,182

-

250
1,700
2,800

2.50

1,700
2,800

1,498,094

8,325

114,026

62,000

8,000

8,000

46,000

5,322

119,070

5.575

1,392

1,354

640

1,753,798 1/2

- 5 -

0 American
a ) Excludine. Tungsten ore, coconut
In addition
fibre & Chrome Oxide.
(

there are small requirements of

other raw materials for Roumania
amounting to approx. 30,000 per month.

COMMDITIES
BROUGRT
FORWARD
To-Ft-On

Germany

1,498,094
48,000

Austria

8,325
4,000

Poland

TOTAL REQUIREMENTS OF IlAa MATERIALS
OF ALLIED AND ENEMY COUNTRIES
FOR ONE YONTH - Tons.

Note

:

Although amounts shown

are monthlyirequirements

a minimrn supply would
have to be given at once

for three months.

Roumania

5,322

3,0O

CzechoSlovakia

Serbia Esthonia

119,070
8,300

114,226
1,392
5,575
250
1,000

Lithuania Iettland

Total
Requirement

1,354

640

1,753,798
44,750

Cotton,

Cloth

6,000

6,000

Cotton

Yarn
Co

250
on

Waste Raw

rna

71--)61-1-6/731

Flax

Flax yarn
Trite

Mr
iNiation
Fabric
:amp

1,000
5,000
1,150
3,500
1,100

T760--

rer-

500

1,000
2,500

400

2,300
2,500

27.

,
4,00

200

1,000,000

3,300

50

13,750

37650

3,620

120
8

800

1,116
9,400
--1-13r-

100

-1,000

Cuantity to be served out with Raw
oil*
woo
y, a cos eac.
4,0o.y quan

Materials.
:

Ertgel.W--

TOTAL

1,548,781

24,053

1,177

123,046

131,470

5,930
6,845

2,442

1,3t4

667
..

I

1,844,548

-

AMERICAN LaLITARY MISSION TO LHMEDIA,

Paris, France, Angust 16, 1919.

MF.210RA,NDU1I FOR ALL TEIZERS
ALIERICLN MI LI TARY 1.1I SS ION TO idaLEITIA

1. With .regard to mail and telegraphic service while with the

American Militaryiassion to Armenia the following is presented for your
informations

For messages to Constantinople or beyond, best service will be
obtained by sending all messages through Admiral Bristol, whose cable
address 1st STANAV, CONSTAETIKOPLE.

The average time on ordinary mehsages.between Paris and Constantinople is two days. RUSH MESSAGES may make it in somewhat shorter time.
Mail should be addressed to each member care of

Major General Jas G. Harbord,

Chief,

American Military Mission to Armenia,
40 Ave. Montaigne,.
Paris, France.

Arrangements have been made with the Postmaster at Paris to collect
and re-foniaxid all mail addressed as above by courier to Constantinople
through the facilities of the American Commission to :Negotiate Peace.

nen',

F. R.
Brig. General, U. S. L.,
Chief of Staff

CIP/whe
ZIMICAN MILITARY MISSION TO ARLIELTISL,

Paris, Franc e, Lugus t 19, 1919.

--CENDULI 2011 ALL IMIBM3
IIIS..3ION TOARLUTIA:

For your informtion please be advised that it has now been
definitely decided for the Zission to leave Paris for Brest tomorrow evening,
.Ugust '20, 119, at 7.00 P.M. on the
JIC4 3EXL.L, leavjne, the
Station: GARD Dal INITALID.20 (Near the alexander III Bridge ) . Reservations
Lave been I.E.cle on this train for all members of the party.

assignient thereto will

Details as to

be in the hands of R. T. 0.

TILSRE iARE NO DLiiTG C.è.R 1710ILITIES ON THIS MAIN.
3.BIGG4kGE WILL BE GOLLPCTED TOMORRCIi BETWESIT 8.30 ZITD NOW. PIE
ILIVE IT RPADY FOR MUCK WDENT:SILIE MILLS,
4. For your information the Transport "1.1111THI vat.SHIL:GTCET" has been
placed at the disposition of the lassion.

GIARENCE I. POCELO,

Chief Clerk

Paris, August 26, 1919.

TELEGRAM

BRIGADIER GENERAL F. R. McOOY

Steamship Martha Washington

Gibraltar
Letter received

Will do everything possible to carry out your wishes

and only regret I um not with you

Best wishes
STRONG

AMMICAN MILITARY MISSIONTO ARLIENL6
On Board S.S. Lihrtha Washington,
Brest, France.

Aug. 23rd, 1.919.

Dear Ben:-

General Harbord and I were very muchdisappointed as we still had a strong hope that you would be
able to join us, but this in no sense is a
on you because we appreciate your noble effort to accompany us and we stillhope to have the benefit of your
Please have Rent work up everything that you
help.
the London and Paris end and join us
think advisable
at Constantinople if it can be arranged in reasonable
If he cannot join we would appreciate the retime.
work at this end on our return in October,
when we can either see him personally or have the result
of his work left at our disposition. In any case, please
help us yourself and have him do it from this end by
putting your Imperial Ottoman Bank people in Constantinople
and any other financial people there like the English head
of the Bank of Turkey, sympathetic toward us and ready to
appreciate
give us help and information, and I should also
your tarAng to Leland Harrison and asking him to arrange
to have Pr2fessor Elliott Mears work with us at Constan
tinople at/such information as he has at our disposition.

reflection

at

sults of his

All this I ask withont a flicker of doubt in
your ability or willingness and without hurting your own
health or business and shall always regret that you could
not go with us.
GiTO my best wish to Elliott Goodwin and tell
him bow much I regret to leave Paris without sitting in
him and you together.
Faithfully yours,

Mr. Benj. Strong,
Hotel Tatz,

Paris.

"

with

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