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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