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Federal Reserve Bank
District No. 2
Correspondence Files Division

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PAPERS

THE ARMY WAR COLLEGE
WASHINGTON

October 31, 1924,

Mr, Benjamin Strong,
15 Nassau Street,
New York City.
My dear Mr. Strong:

Again I am calling on you to address the War College
on the subject of "War Finance." Thursday, January 22, 1925
at 9:10 A.M. has been reserved for you.

While you are, of course, at liberty to treat your
subject in any way that seems good to you, the following
suggestions are made for your convenience:
We realize that economic force may be as effective as
military force in bringing a war to a speedy conclusion. We
should like to hear in what ways finance may be used as an
offensive and defensive weapon to force our terms on an enemy.
Hoping that you will again favor us, I am
Very sincerely yours,

H. E. FLY,
Major General,
Commandant.

,011

NOV 2

24

Novecber 4, l9f4.

My dear General Ely:

It is very kind of you to invite me again to address t'e

i,ar College on the subject of war finance, and it is, in fact, a
real derivation to me that I am unable to accept the invitation.
AS I wrote you Lst year, the sericus trouble which I
had with my throat has resulted in the doctor's forbidding me to
*

make any addresses of that character; and only on that account an

sending you this reply.

If I can be of any service in securing a substitute,
please do not fesitate to call upon me.
Tours very sincerely,

Major General H. E. Fly,
The Army 'iar College,

'ashington, D. G.

THE ARMY WAR COLLEGE

9,1

'116Ad''''I7AI

WASHINGTON

(74,,ro

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)

November 6, 1924.

My dear Mr. Strong:
I regret exceedingly that your throat trouble
still persists and will again deprive us of hearing
from you.

I am going to take advantage of your suggestion,
however, and request that you select a substitute.
Your selection last year of Mr. Snyder wax eminently
satisfactory.

Yours very sincerely,

H. E. ELY
Major Genera ,U.
Commandant.

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

November 24, Li24.

--

My dear General Ely:

After thinking over your kind suggestion that I Tight be of assist7
mice by presenting some names for a lecture on War Finance, it occurs to me

that Professor Henry A. E. Chandler, who is the economic adviser of the
National Bank of Comverce in New York, could make a very interesting talk
Indeed.

I have a high regard for him, and believe that his ability qualifies

him for just such a discussion as you wish.
Another suggestion VS Colonel Ayres of the Cleveland Trust Company.

It may be that he does eliver some lectures at the War College, for,

5.3 you

know, he was intimately associated with Secretary Baker during the war, and

you may have already established that contact.

I have not mentioned the

matter to either of these gentlemen.
If you would prefer to have Mr. Snyder, he will be available also,

but he feels that possibly you would like to have a change, and either of the
two names that I have augAested, I believe, would be satisfactory.
Very sincerely yours,

Major General H. E. Ely,
The Army War College,
Washington, D. C.

p..

THE ARMY WAR COLLEGE
WASHINGTON

!low/

St.e24

November 25-, 1924.

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

My dear Mr. Strong:
I wish to thank you for your interest in the
War College and for your recommendation of a subI take it that you favor our getting a new
stitute.
angle to the subject and I have therefore requested
Professor Chandler to address us.
Regretting that you or Mr. Snyder will not be
with us this year, I am
Very sincerely yours,

H. E. ELY,
Major General, U.S.A.
Commandant.

..

Rol
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r)

Ci

THE ARMY WAR

exiizgqinviroorip

WASHINGTON BARRACKS, D. C.

JAN 10
Dec. 16, 1921.
c-4

Mr. Benjamin Strong, Governor,
Federal Reserve Board,
New York, N. Y.
My Dear Governor Strong:
The Army War College looks forward to
a talk from you this year on the Financial
Aspects of War.
As a tentative day, we
have set aside Saturday, April 15th, and
the hour of 9:10 A.M.

You will understand that the
will be an entirely new one and a
tion of your remarks of last year
If, however,
most satisfactory.
like doing so, I would appreciate
you would touch somewhat upon the
between finance and storage.

audience
repetiwill be
you feel
it, if
relation

It appears that at the outset of the
war, goods were rushed to terminals, causThis led to embargoes,
ing congestion.
consequent congestion at source and
resulting fall off in production.
It
occurs to me that method of payment was to
come extent to blame, - goods were purchased
for delivery at certain points and the need
of the producer for return of capital
urged him to rush shipments.
If acceptances
had been made at or near source, storage
there being required by contract, much confusion might have been avoided.
Accepted
'

(P.

,

I could have been moved

in car or train

lots.

In what I have said, I do not wish to
restrict you, desiring only to indicate a
question which I believe to be pertinent to
our military plans.

77
Very

'

incerely,

E. F. McGLACHLIN, Jr.,
Brig. General, U.S.A.,
Commandant.

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January 10, 1992.

Dear Sir:

Continued absence on accunt of i/lners prevente6 Mr.
Strong from sending you Nord sooner in ansNer to your letter of
December 11C, with rf,gar,i to hip addrescir- tho students of the

Army ?tar College, on Saturday, Aril 15th, at 9:1C a. m.
Although Mr. Etrong is ef--c+ed shortly
his oP4.1ce, he has

..etked no

to

returr to

vrite you etnting that he *ill

be ,,,lez.ked to give the talk you desire .i.rd ci/1 arr-n?;e his

engagementb so thet the date mentioned till be catirfnctory to
him.

Yo rs very truly.

Secretary to :Ir. Strong.
E. F. .,.cGlac.hlin, Jr.,
Brig. General, U. S.A.,

The Army Nar College,

iashington Barracks, D. C.
GE.MX

466-11---10

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THE ARMY WAR COLLEGE
WASHINGTON BARRACKS, D. C.

.111. 16, 1922.

*Mr. Benj. Strong,
Gov., Federal Reserve Bank of
New York, N. Y.

My dearr. Strong:
The Army War College is very
sorry to learn through a letter from
your secretary that you have been ill.
We are pleased to know that you are
now on the way back to full health
and that you will meet us again on
April 15th.
Very sinc rely yours,

E. F. McGlachlin, jr.,
Brigadier General, U.S/A.,
Commandant.

February 6, 192?.

My dear General McGlschlin:

My illness

detained me from the bank until last yeek, and only no

an

I able to mrite you in responee te your kind letters which indicate that the iar
College wishes me to make an address this year, as I did mith so much pleasure
last year.

In your letter Of December 18, you emphasize the need for some discussion

of the relation between finance and storage as applying to the army supply program.

This is

a. rather difficult

is so much out of the line

financial or

of our

part

matter for me to deal with because in

it

direct experience, and in part because in

banking sense it must be dealt with in such broad and general terms.

ka feel here that the difficulty
period and which

of transportation, which arose during the war

resulted in such congestion at

transportation problem than a financial one.
of goods to market creates

financial

terminals,

as more strictly a

Any interruption in the even flow

congestion, that is,

the banking up of loans,

just as it creates a congestion of goods.But under our present banking system,

even as it as in operation

during the

without serious embarrassment to any

war, we were able to deal mith that matter

one so

far as I am aware, except

in

the limited

way that the Treasury was somewhat concerned at one time; and as you know the meat
packers encountered difficulty when ocean transportation fell down.

It

as al-

ways our belief at the bank that the _inherent defect in the program of supplying
material to our own armies and to

the Allies lay in

the failure to adequately

realize hoe narrow the neck of the bottle was in the year 1917 and the
of 1918.

I am referring of course

of goods as was then

to shipping.

In such a

required of us, if care could not

early

part

tremendous movement

be unloaded and ships

General UcGlachlin

February

1922.

ialmediately loaded at the ports, eepecially the Port of Nev 'fork, as rapidly as

goods arrived, the storage and handling facilities along the Atlantic Seaboard
in a very short time would, and did, prove quite inadequate to meet the emergency.
The congestion at the Port of New York was, of course, tremendous.

local problem, which even now,

That is a

under the present relaxed conditions of our foreign

trade, is one of serious moment to the city, and is constantly being studied.
That it will be ten or twenty years from now no one can guess, but I apprehend

that some radical, far-reaching means for encircling

the city with some sort of

a belt line, with more adequate facilities for trucking and warehouse storage, and
with enlarged literage facilities in the Bay, must certainly be developed if this

Port is to continue a growth at all comparable vith that of previous years.
It

occurs

to me that an engineer of considerable note in this city,

Mr. J. Kennard Thompson, can speak more autheritetively on these matters than any
other men that I know.

He has long been studying the subject, has had a. vast

project before the city authoritiee from time to time, and I feel sure he can
On the other hand, he is very deaf, and Questions
make an interesting address.
from his audience would

need to be repeated to him on the platform.

In default of Mr.

Tbompaaa,I might further suggest Mr. Irving T. Bush,

of the Bush Terminal Company. Mr. ThOmpsfeWs point of view is theoretical.

Mr.

Bush has had practical ecperience in this matter of probably vider extent than
any other individual business man, and is a very good speaker.
May not these suggestions

afford you the means of getting a better dis-

cussion of the subject than could be made by me;

end then if you feel quite villing

to have ma do so, I could present the subject dealt with last year, either in the

same form, or in

such revised form as you may suggest.

I very much appreciate the honor of being invited to address the College

again, and am glad to do so

at any time.

Yours sincerely,

E. F. McGlachlin, Jr.,
Brigadier General, U.S.A.,
lashineton. D. C.

THE ARMY WAR COLLEGE

c:5

WASHINGTON BARRACKS. D. C.

February 8, 1922.

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

My dear Governor Strong:

Please accept my sincere thanks for your
very thoughtful letter of February 6th,
suggesting that we have Mr. Bush talk to us
I have written him today and hope
on storage,
he may be able to come.
Your talk last year was of very great
value and a repetition of the same talk will
be most satisfactory to us.
In asking you as I did to talk a little
on the connection between finance and storage,
my only thought was to drive home from a
different angle the absolute necessity of our
considering the method of handling goods
ordered in large quantities in war.

We cannot forward to the ports or other
concentration points the quantities beingt
turned out unless we can store; nor can we
refuse to accept goods from contractors as
this will cause him financial distress;
so
we must provide ample storage either at the
source of manufacture, or at terminals, or
at intermediate points from which solid main
shipments to ports may be made.

not talk on this subject if

Please do
may be out of place in the
scheme of your

you feel it

talk.

I am pleased to know that you are restored to health and look forward with great

pleastire to meeting you on April

15th.

On

your

arrival let us know where to send a car
for you.
Ver

sincerely,

Jr.,

E. F. McGLACHLIN,
Brigadier General, U.S.A.,
Commandant.

Pea
19e.

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111...

THE ARMY WAR COLLi*,?

(:)

WASHINGTON BARRACKS, D. C.

C.F '144

FebruaggaktV19

1?p-

u'tf.' 4°44
Mr. Benjamin Strong,
Governor, Federal Reserve Bank,
New York City.
My dear Governor Strong:
Please accept my sincere thanks for
your helpful letter of the 6th instant.
In accordance with your suggestion I
am asking Mr. Bush to talk to us on terminal
storage.

The lecture which you delivered last
year was of great value to the College, and
a repetition of that talk is most desirable.
My thought in asking you to touch a
little on the relation between finance and
storage was prompted by a knowledge that
embargoes declared in order to free bottle
necks or terminal points frequently cause
congestion at the source, and that in war
we must arrange, in contracts or otherwise,
to finance storage at source or at some
intermediate point, or production will slow
down. My only thought was that if this
point of view is a correct one, we should

her it home from all points of view.
Please do not touch on the matter unless you feel like doing so.

I look forward with great pleasure
meeting you on April 15th.
Very- sincerely,
tr-ILAAA51-0--

E. F. McGLACHLIN, JR.,

Brigadier General, U.S.A.,
Commandant.

I look forward with great pleasure

-(7 meeting you on April 15th.

Verysincerely,

E. F. McGLACHLIN, JR.,

Brigadier General, U.S.A.,
Commandant.

jr

March 4, 1922.

My dear General McGlachlin:
Very reluctantly, I find

the date for my

it necessary to ask if

addressing the 4ar College may

poned until later in the year.

not be post-

I had no doubt vhen I last

wrote you of my ability to attend the meeting and to deliver
an address, but unfortunately, because of a

recent operation,

my doctor is unwilling to have me speak at meetings where it
is possible that I might strain my Voice.

however, to be

able to deliver the address before the College

closes this summer.
Yours sincerely,

Brig. Gen. E. F. MoGlachlin,
The Army Nar College,

lashington Barracks, D. C.

Bs.mv,

I should hope,

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS, D. C.

March 6, 1922.

eL3CHEi)

WV3?7 11902
Mr. Benj. Strong,
Gov., Federal Reserve Bank
Of New York, N. Y.
My dear Gov. Strong:

Gen. McGlachlin is absent from the College and, therefore, unable to reply to your
letter'in person. I am, however, authorized
to speak for him and to assure you that we of
the College appreciate your willingness to
help us so fully that we will make any rearrangement in the course necessary to meet the
demands of your health or business.

The course in Supply, of which your conference forms a part, closes May 27th. The
College, however, does not close until June
15th. Any date before June 15th will, therefore, be suitable to us. After June 15th this
particular class of student officers will be
in the field at summer camps or other, similar
duty.

However much we desire you to talk to us,
we feel that we must make no request which
might induce you to strain your voice, and if
the dates of May 27th or June 15th are both
too early, we will rest content in this year's
work with an issue to the class for study of
your last year's talk, looking forward to a
new meeting with you next year.
Very sincerely yours,

I

Harry
Smith, /
Colonel, Inf. (D.O.L.),
Acting Commandant.
.

May

1922.

My dear General McGlachlin:
It now appears that it

will

likely be impossible for

me to make the address before the Wnr College, which I had hoped
to do, and I am writing

have me revise the

to inquire

whether you would care to

ddress which I made lest year, bring it

somewhat up-to-date, and put it

in a form rather more suitable

for circulation ss a document than it is at

present.

I am very sorry to be obliged to send you this word.
Yours sincerely,

Brig. Gen, E. F. McGlachlin,
The Army War College,
Washington Barracks, D. C.

BS.MM

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS, D..

MT

.

23, 1922.

s
15P,tac
2
Mr. Benjamin Strong,
Governor, Federal Reserve Bank,
New York City.

My,dear Governor Strong:

I regret very much that it will be impossible for you to address the War College
in person this term, but I shall be very glad
to have you revise your address of last year,
as you suggest, and send it to us for circulation in the College..

We appreciate your willingness to help
us out in this matter, and thank you for the
attention you have given it.
Very s ncerely yours,

E. F. McGLACTILIN, JR.,

Major General, U.S.A.
Commandant.

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS, O. C.

March 13, 1922.

Mr. Benj. Strong,
Governor,
Federal Reserve Bank,
New York, N.Y.
My dear Governor Strong:

I am delighted to learn that you
feel you may be able to be with us by
June 15th and appreciate your thoughtfulness in accepting the task of preparing an article for us to help out
if you can not come.

With many thanks to you for your
courtesies, I am
Very

4ncera1y yours,

E. F. McGlachlin, jr.,
Brigadier General,U.S:A.,
Commandant.

June 15, PDS?..

My dear General McGlachlin:
LuuraE

Fttlf--

At last I am able to send you the article ehich I promised you
sometime ago, and which I hope frill take the place of the address which I

had hoped to be able to deliver.

Let me explain in regard to the authorship of this paper.

I

found it impossible to give the necessary time to its preparation and entrusted it to one of my associates in the bank, Mr. George 1. Roberts.

ge had discussed the article, which in its inception as intended to be
simply a recasting of the paper which I read last year, but 'which you
will observe has taken a considerably different form.

References to literature that has been quoted will be found in foot-

notes, and 4111 enable you if you desire to get direct access to sore of the
more interesting literature bearing upcn this eubject.
I hope that the delay in sending you this paper'use caused no inconvenience.

Assuring you of my deep interest in the work or the Ccllege,

and sith kindest regards, believe me,
Yours sincerely,

Brig. Gen. E. F. McGlachlin,
The Army gar College,

laehington barracks, D. C.

ES.VM

(----

THE ARMY WAR COLLEGE

0

WASHINGTON BARRACKA

C 11:

June 19

NOWLEDGED
littO. 1922
f.30.1.

yoV
Mr. Benjamin Strong,
Federal Reserve Bank,
New York City.
My dear Mr. Strong:
AAPOISE IN FILE

The artic e that you sent me under date
of June 15 arrives in good time, as the class
will not leave the College until the last day
of the month. The paper will be read to the
class by one of the faculty after its return
from a reconnaissance to which this week is
devoted. It will also be furnished the students for study hereafter.
General Williams has told me of your interest in the college. On behalf of the faculty I want to thank you for this evidence of
that interest, and to wish you an early and
complete recovery of excellent health.
We shall ask you
present in person.

again

Very sinc

next year to be

aly yours,

E. F. gcGLACHLIN, JR.,
Major General, U. S. A.,

Commandant.

June 20, 192?,.

.:,ear General McGlachlin:

Thank you for your kind note of the 19th instant just received.
am indeed interested in the work of the College and I hope you will not
misunderstand my saying that I .in especially interested in the intention

which seems to characterize the work of the College to place good sound

fundamental ideas on war finance in the minds of a highly trained group

of men who will, if such an emergency as tar again arises, furnish a
background of sound opinion on this most important subject.
You may command me st any time and I shall consider it an
honor.

Yours sincerely,

Major General E. F. McGlachlin, Jr.,
Commandant, The Army lar College,

Nashington Barracks, D. C.
ES.MM

October 6, 1922.

Vy deer General McGlachlin:

It will be 7(
,,Jeat pleasure to address the Var College
at some convenient date this year, as you were kind enough to

auggest in your letter of October 4.

The date you name,

October 40, presents some difficulties, but I am expecting to
he in raehington *11 of next week and will telephone you
probably on Monday.

Tours sincerely,

E. F. McGlachlin, Jr.,
Major General, U. S. A.,

The Army Wsr College,

'fa shingtartritrt":"*""*,74%.
B S. Ma

Form 12281

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AM

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

Send the following message, subject to the terms
on back hereof, which are hereby agreed to

October l, 1922
Vajor General E. F. -cGlachlin

Jr.

The Amy War College
Washington Barracks

shington, D. C.

Regret inability to reach you last week

Shall be in

Washington part of next week and could arrange lecture then or a rew

-.eeks later as you prefer

Kindly reply New York

Benj Strong

'

Time Filed

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CLASS OF SERVICE

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vvi...Et)orr)
OCT 17 1922

t)39
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OTHERWISE THE MESSAGE
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NEWCOMB CARLTON. PRESIDENT

GEORGE W. E. ATKINS. FIRST VICE-PRESIDENT

Send the following message, subject to the terms
on back hereof, which are hereby agreed to

October 17, 1922

',ajor General E. F. McGlachlin, Jr.
Army War College

Washington Barracks, D. C.

Can address War College Thursday next week if satisfactory
to you

Am writing

Benj Strong

Time Filed

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In further consideration of the reduced rate for this special Day
Letter service, the following special terms in addition to those enumerated above are hereby agreed to:
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Letters is, in all
subordinate to the priority of transmission
and delivery of regular telegrams.
respects'
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is not permissible.
c. This Day Letter is received subject to the express understand-

ing and agreement that the Company does not undertake that a
Day Letter shall be delivered on the day of its date absolutely, and
at all events; but that the Company's obligation in this respect is
subject to the condition that there shall remain sufficient timt for
the transmission and delivery of such Day Letter on the day of its

date during regular office hours, subject to the priority of the transmission of regular telegrams under the conditions named above.
No employee of the Company is authorized to vary the foregoing.

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Accepted up to 2:00 A.M. for delivery on the morning of the ensuing business day, at rates still lower than standard night message
rates, as follows: The standard telegram rate for 10 words shall be
charged for the transmission of 50 words or less, and one-fifth of
such standard telegram rate for 10 words shall be charged for each
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SPECIAL TERMS APPLYING TO NIGHT LETTERS:

In further consideration of the reduced rates for this special Night
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Night Letters shall be written in plain English. Code language
is not permissible.
.
.
No employee of the Company is authorized to vary the foregoing.

October 17, 1922.

My dear General McGlachlin:

From your letter I have gathered that the paper which
I sent to you last year has not been used

with

this year's

course at the War College, and therefore I shall use that on

Thursday of next week (the 2eth instant), and prepare myself
with some information and

labor, as

aammente in regard to conscripting

you were good enough to suggest, although it would

possibly be better to lets any statement on that subject ne made

in response to inquiries.
I shall be stopping at 1718 - M Street, and await
word from you at your

Greatly

convenience as to the hour of the

appreciating your

courtesy in

desiring me to

make this address, and with kindest regards, I am,
Faithfully yours,

jor General E. F. McGlachlin, Jr.,

c/o Army War College,
Washington Barracits, D. C.
BS.MM

meeting.

THE ARMY WAR COLLEGF7.,,VA,F;i-Fr)
WASHINGTON BARRACKS. D, C,

18 i922
Oct. 17, 1922.

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

My dear Governor Strong:

The date you suggest in your telegram
of this date suits us perfectly.
We will,
therefore, schedule you for 11:15 A.M., Thursday, October 26.
If you will let me know where to meet
you in Washington I will provide an officer
and automobile to conduct you to the War College in time for the lecture.

Thanking you

or helping us out, I am,
ry sincc rely yours

E. F. McGLACHLIN, Jr.,
Major-General, U. S. A.,

Commandant.

'

October 18, 1922.

Ny dear General 1,;dGlachlin:

Your note of the 17th instant is just received.
I am going to Washington on iiednesday the 25th instant,

and shall be at 1718 - H Street Thursday morning prepared

to attend the lecture at 11:15.
Yours sincerely,

Major General E. F. McGlachlin, Jr.,
The Army itsr_golleze,

Washrtglini-3arracks,-t. C.
85.MV

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS. D. C.

October 4, 1922.

Governor Benjamin Strong,
Federal Reserve Bank of N. Y.
New York City.
My dear Governor Strong:

May we not look forward to a talk from you on War Finance
on or about October 30th?
I presume you have a retained copy of the paper you so
kindly prepared for us last year and then, on account of illness,
were unable to deliver in person. If you have no copy, I will
be pleased to sand you our file copy for your use.
There has been considerable discussion, pro and con, at
the College and elsewhere of the desirability of a general draft
of labor and industry in the event of another great war coupled
with a "freezing of all prices" at the outset of the war. You
are doubtless aware of some of the proposals which have been made.
If you do not touch on this point in your talk, you may
expect that some one in the audience will question you along
such lines. It is hoped that you may feel at liberty to give
your personal ideas in the matter from a practical business
viewpoint.
Very sincerely yours,

E. F. MOLACHLIN, Jr.,
Major General, U.S.A.,
Commandant.

.

,,,,,

ITY

sfo'r

RtC.SittE0
GovERNOil'S

OCi

tre

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS. D. C.

November 14, 1922,

r.
Benjamin Strong,
Governor, Federal Reserve Bank of New York,
NeW:Ycrk City, N.Y.

:

dear GovernoeStrong:

In the conversation I had with you at the close of the very
aluable talk you gave us recently, you agreed to
come again and
iscuss "The Draft of Industry and Capital - Will It Produce? How Deobilize After the War?"
1
I have formed no fixed opinion in the matter. It does occur to
me, however, that many of those who are pressing this idea are doing
S) not so much because such a system will produce more supplies for
the fighting forces but rather because such a system will avoid profiteering.

It seems to me that the tests of any supply system should be:
Will it supply the needs of the fighting forces in a manner to
give the Commander the utmost possible freedom of action against the
enemy?

Will it permit the nation to emerge from the war with a sound
economic and political structure and a virile people?
It may very well be that in the event of a great war while the
memory of the last one persists with the people that to pass a Selective Service Law we would need to include a clause for the Selective
It would remain to work out the deService of Industry and Capital.
tailed procedure under such a law which would cause the least dislocation of our economic structure.
I know you will understand that I am not pressing my opinions
upon you and that I do not wish to restrict you in any manner as to
what you may wish to say. I have felt it only fair to state a few
questions which may be put to you.
Tentatively I have set aside the date of Tuesday, January 16th,
However we shall be glad to arrange for
and the hour of 11:15 A.M.
the talk during some time when you are in Washington and to suit your
(,convenience.
c
Very sincerely you 1
)e

I

fr:1-

cb

E. F. McGLACHLIN, JR.,
Major-General, U. S. Army,
Commandant.

s

Nov 16 I 92a

-}"se

relOasJe

teiL

ea,

asecesatetevet

3ovember

le, 1g22..

ky dear General McGlachlin:
Replying to your letter of Piovember 14, so far as I am now able to
tell, Jenutry 16 will be a convenient date for me to address the War College,
with the sole possible exception so far as I can now forecast that I may be

called upon tc attend a meeting in Sen Francisco sometime during the month of
January, but the date has not yet been fixed and will not be until probably
the middle of December.

I would like very much te accept your suggestion and disuse the
question which I understand is very much in your mind just now, namely, whether
conscription - which WRET so eucceeeful in raising the fighting forces - may not
be extended to industrial workers, to the products of industry, and to capital.
It is a subject which is filled with perplexities, and frankly will
preparation.
One ef the difficultIes in the
approach to such a subject is that thich Is encountered in discussing the
quantity theory of money.
Students and critics approach the subject with e
strong desire to develop an exact formula, mfghematically accurate, in expressing the problem, and with the hope that it will be equally accurete in producing
the result.
require

considerable study and

The
Unfortunately, human nature is too often left out of account.
attitude of the public will not always accept and be governed by sound doctrine.
biie I personally believe that the most convincing arguments can be advanced
to justify the extension of the principle af conscription in time of nsr to
practically all the activities of the people, I am equally convinced that
would meet with failure just because tMe public sould not understand it, because
human weaknesses, such as ignorance, selfishness and fear vould not support
the plan, and in the long run any nation which undertook such n program would
shortly be forced back to the older methods, inefficient, extreeragant And
faulty though they may be.

it

shell try, however, to prepare something that would be of interest
even though I may not he able to teke e definite position myself. 'fleakt I
had in mind was to provoke some discussion without attempting te be Quite AB
definite and dogmatic as I may have been the last time I addressed the College.
Thank you very much for inviting me to oome again.
Yours sincerely,

Major-General E. F. McGlachlin, Jr.,
Commandant, The Army War College,
Washington Barracks, D. C.
3S.7,4)4

THE ARMY WAR COLLEGE
WASHINGTON BARRACKS. D. C.

Nov. 18, 1922.

Mr. Benjamin Strong,
Governor, Federal Reserve
Bank of New York,
New York City, N.Y.
My dear Governor Strong:
Vie are very pleased to know that you
will be able to talk to us on January 16th,
except for the possibility of your presence
being required in California.

In case you are called away in January
I will, of course, alter tile engagement to
suit.

Very kthcerely,

oh

E. F. McGLACHLIN, JR.,
Major-General, U. S. Army,
Commandant.

,irrryfru
[V';

it';14)11
I

". J

st,

'He
NOV 21

0

I

A922

January 3, 1923.

My dear Sir:

Mr. Strong regrets that on the advice of his doctor he is
obliged to cancel his arrangements to address the students of the
War College on Tuesday, January 15.

He unfortunately contracted-a severe cold which has settled

in his sinus and has EID affected his voice that he can hardly speak
above a whisper.

The doctor feels that it would be unwise for Mr.

Strong to attempt to use his voice to any extent for the neXt Cew
weeks.

I know you will thoroughly appreciate the circumstances

which compel 4r. Strong to defer his visit, but he hopes to soon

main set a date when it will be mutually agreeable for him to address
the students.
Yours very truly,

Secretary to
gr. 3enj. Strong.
MajorGeneral E. F. McGlachlin, Jr.,
Gomrandant,, The Army War College,

Washington Barracks, D. C.
(18.11X

THE ARMY WAR COLLEGE
SHINGTON BARRACKS, D. C.

January 5, 1923.

Mr. George Beyer,
Secretary to Mr. Benjamin Str ng
serve Bank
Governor of the Federal
of New York,
New York City.
Dear Sir:

Please convey t Mr. Strong my regret
at his indisposition a d the hope that he may
soon recover. I also regret his inability to
visit us at the timeischeduled, but we shall
be very glad to havb him at some time later
in the year and he that he will let us hear
from him with regard to it when he is better
and at his convenience.

Very

incerely yours,

E. F. McGLACHLIN, Jr.,
Major General, U.S.A.,
Commandant.

1016

01"*

"010/1:16 _anuery
"111
luad

17, 1923..

,q

Dear General McGlechlin:

,:14 0

Thank you very much for sending we copy of the address
on War Finance which I delivered at the Army War College in
-44.1.0.164,41,

October, and whinh I am pleased to have for my nereonal file.
Yours very truly,

Major-General E. F. 441G1ach1in, Jr.,
0/6 Army War College,

Washington Barracks, D. 0.

*

C),'L

ifi-L

x.-01°

/r2-3

/t?

THE ARMY WAR COLLEGE
IN F

REFER TO

ACkNOWLEDOED
NOV 1 f.) 1923

OFFICE OF THE COMMANDANT

AWC 264-39

r4

WASHINGTON BARRACKS, D. C.

November 13, 1923.

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

The War College is anxious to have you lecture to
the new class this year on the subject of 'Tar Finance."
There has been tentatively set aside for you the
date of Tuesday, February 15, 1924, at 9:10 A.M.

We would be glad if you could tell us of the strategical use of money in war making, both offensively and defensively as:
Drafting the dollar.
Cutting off the credit of an enemy.
Cornering market in supplies essential to enemy.
Financing internal dissention of enemy.
Borrowing for the purpose of obtaining allies.
Financing neutrals to become allies.

In other words, looking on money as an arm of the service,
in which ways can it be used to attack the enemy and to
defend against himt
Very sine rel

ours,

GEO. S. SIMONDS,
Colonel, Infantry (D.O.L.),
Assistant Commandant.

11:<1

"

1

'

-

Eeferring to

November 19, 1923.

AWO 254-39

My dear Colonel Simonds:
It hes ,-lways bier) a great pleasure for me to address the

and I heve felt much complimented that you
invitation from year to year.
interest

tar Coll

have been kind enough to renew the

The subject selected for this year has

peculiar

and appeals to me strongly.
Unfortunttely, I have just recovered from a serious difficulty with my

throat, welch has kept me ,Iwey from my work at the bank for nine months, and I

have been warned by my physiciane that addresses for a time are absolutely
\

prohibited.

for me to make

it may be that by next February they will feel taet

the

address;

will be s-fe

but of course I should be able to let you know well

in advence of that so that another speaker on that topic could be selected in
case I cannot deliver the

address.

It #ould be quite possible for me to sugFest a substitute - even some
one from our own organization, who has made e special study of these matters
and who would be able to give you an interesting discussion.

Reluctant es I _a to forego the oprortunity, how would it do for you
to advise me by whet date - sty ,t the end of the

year - a

definite reply would

not inconvenience you; or if you need to conclude your arrangements now, I
might suggest someone to mek,a the talk in my place.

If the latter plan appeals to you, I would be

very glad indeed

to

join in the preparation of the lecture.
Assuring you of my appreciation of your courtesy, I beg to remain,
Very sincerely yours,
Colonel Geo. S. Simonds,
prmy ur College,

...saington Barracks, D. C.

culkea 4.1-39

THE ARMY WAR COLLEGE
IN F

REFER TO

OFFICE OF THE COMMANDANT

WASHINGTON BARRACKS, D. C.

November 22, 1923,

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

Your letter of November 19th has just been received.
I wish to thank you for the interest you take in this work.
The College fully appreciates your position and we are very
sorry to hear of your illness.

We are particularly anxious to have you talk in
person and the matter will be kept open until two weeks
before the date set. If in the meantime you decide that
it is impracticable for you to "03 with us, we will be glad
to have you select the substitute and'it is hoped that in
such case you can join in the preparation of the lecture.
Hoping that February will find you completely recovered and thanking you again for the interest you take
in the Army War College, I am
Very sincerely yours,

GEO. S. SIMONDS,
Colonel, Infantry (D.O.L.),
Assistant Commandant.

6

Cre

Janua.ry 4, 1924.

My dear Colonel Simonds:

I have del&yed writing you uo long in regard to the possibility

of my dellverine s. lecture at the iar Collese ttt yeur, until developT.enta enabled me to e:end

definito advice.

After consult!.n:g my physician, he tells me tilat there is too

much hard to my throat tc enable me to think- of doine co.

I si

7ery sorry indeed becvAss I hare s.lways enjoyed the meeting very much.

It there saything I can co to furtter you,. nroEram?

do not hesitte to let me know.
71.th cordial reurds, believe me,
Tours sincerely,

Colonel Geo S. Simonds,
la-my tar College,
Wsuli=m6ton &Tracks, D. C.

If no, 7Aense

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