Full text of Diaries of Charles S. Hamlin : Index-Digest of Charles S. Hamlin Diaries, Box 21, Volume 7, Reel 15, October 13, 1922-December 21, 1923

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Collection Tide

THE PAPERS OF

CHARLES SUMNER Hk.MLIN
DIARIES

Series and/or Container
•

Shelf/Accession No.

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Federal Reserve Bank of St. Louis

v. 7

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Federal Reserve Bank of St. Louis

ITIDTI-DIGEST
VOLUME?
DIARY

(1922, October 13 - 1923, recember 21)

Adelson
Attends heau'in,: before Federal Reserve Board. on the proposed Cuban
Agency. May 12, 193. p. 107
Ittands further hearing, on

iie.

..Iay 15, 1923.

p. 116

See - Cuban AE:ency
Agency, Cuban
See - Cuban Agency
Agra,ti, Sigicre.
Address liaticna.1 Grange Executive Committee at lunch given it by C .H.
the represents the Intern-tional Institute of Agriculture,
offices
in Roe, Italy.
February 28, 1923. p. 54
Ar:ricultural paper
Board voted for Dr. Miller's motion, subject to checking up by
counsel, to ive him the benefit of
for his address before
so..- 1e Farm Aesociation next Friday.
Thr4ctin Lade paper of cooperative mae.eting associations, +,he
proceeds of which were or were to be used for a.-Ivances to ar3mbers
against agricultural products d.alivered to it, Aiyicultural paper.
Dec. 16, 1922. p. 22, 23.
Counsel aivised that such paper could not be classified ae A.Fricultural
paper but that after careful -tudy it las posAible that he might
cilarige hil opinion.
Dec. 14, 1922. p. 23
The Feleral Res :rve Bank of Bo.:ton askei authority to put in a
discount rate of 5% on 9 months agricultural paper, becal se of its
longer maturity. Althcugh 4 other Federal reserve banks have put
in the same rate as for 6 mcnths ar-ricultnral paper, th3 Board felt
it ought not to override the discretion of the iirectors, e.,pecia117.
In view of the fact that the discovntg held by Boston of agricultural
paper of all maturities was very small, anL therefore, it approv3the application.
April 7, 1923. p. 82

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Atkan, Alfred
Favors Gov. Harding for Go7arnor of Federal Reserve Bank of Boston.
Dec. 18, 1922.. 1:6 26
Represents Boston Clearing House ot hearing on Cuban Agency.
May 7, 1923. p. 107, 109
Albany, N. Y.
C.S.E., H.P.H. and Anna spend Thanksgiving Day with
at Albany, N. Y. Nov. 29, 1923. p. 164

and Mrs. Rice

Anderson, Larz
Attends dinner of C.S.H.and H.P.H. to Ambas:.ador Hanihara in a
somewhat advanced stage of intoxication. Aftar dinner he ordered
the maid to bring whiskey and -cda into the parlor, without
asking our permission.
Mar. 14, 1923. ,. 62
Arliss, George
C.S.H. goes to Rialto Theatre with Mrs. Wilson and Admiral .and Mrs.
Helm, to see a moving picture, - "The areen Goddess" - in which
George Arlies took the leading part.
Sept. 12, 1923. p. 169

•

Assessment.
Cost of examinations of state banks.

Dec. 9, 1923. p. 20

Zee - Examinations.

Ohs

Atlanta
100, 101, 117, 118, 122, 124, 125, 127, 129, 130, 131, 135, 138,
140, 141, 142, 143, 147, 148 149, 156, 159.
See - Cuban Agency
McCord
Ottley
nnith, Hoke
Wellborn
Attorney General of U.S.
Board votes to notify the Attorney Genaral that Elliott desire:
to file with him a brief o4 to construction of Section 9 of
Federal 7everve Act. The vote was that the Board merely notify
him of Elliott's desire, without ap,vovol or •disapproval.
Miller
alone voted no and
no one should be permitted tc file a
brief. C.S.H. asked him if he fearea that Elliott would satisfy
the Attorney Galeral that his (Miller's) and Wyatt's olAnion
was wrong.
Miller then Intimated that some meter bad im-oroperly told Knott
that the Board was to ask for such an opinion.

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Attorney General of U.S. (Cont.)
C.r.E. told Triiller that at the hearing on May 22, at which
McAdoo and Elliott were pres.nt, they were informed that such
an o:inion was to be asked, and that Millar had even suggested
to Mr. McAdoo to start a friendly suit to teat the case.
June 11,'923.
p. 149
C.S.H. calls up Elliott who said ti-at he was toll of this at the
hearing held May 22, and that Gov. Crissinwer had also told him.
p. 149
June 12,3923.
..

The Board had voted to call for such opinion prior to said May 22
hearing, but Hoxton told C.S.H. he could find nohing as to this
in his minutes.

C.F.H. spoke of this to the Board, and Gov. Crissinger and Platt agree.l.
with C.S.H. that the Board had so voted.
The Board voted again on May 29th forulally to ask for such an opinion.
June 12, 1923. p. 149, 150
C.C.H. tells Miller just what 71liott had said to him.
June 14, 1923. p. 154
•

•
•

Austin, F.D. Aont
Tells Board that if any material reduction is ma:1e in earning- assets,
expenses and dividends could not be earned.
Oct. 13, 1922. p. 4
C.F.H. moves to increase salary of Austin from $15,000 to $17,000
Miller _ail the investigations of the Economy and Efficiency Committee
had already shown that Austin was utterly unfit tier his position.
C.S.H. said. that in view of that assurance from Miller, .e would
withdraw his motion.
p. 193
Dec. 19, 1923
Automobile
C.F.H. buys an automobile (second hand) from Wash. Cadillac Co.
turning; in his old car and paying $1365 in cash.
Dec. 16, 1922. p. 25
'Axson, DOctor
—S.H. meets Dr. Axson at dinner with Mr. & Mrs. Toodraw Wilson.
Oct. 23, 1923.
176

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-B-

•
•

Baker, Secretary
Or, Willis said. he ce-vised Baker tr sand out as tha head of the
PhIlippine National Bank some able banker, but Baker ignored
his advice; that Baker ,vas directly responsible for the bad
conditions in tha Bank.
April 20, 1923. p. 92
See- Philippine National Bank
Willis, E. P.

•

Baldwin, Chancellor of the Exchequer.
C. .H. O.ves a linner to Chancellor Baldwin (afterwards Prime 'linister)
vnd Gov. Norman of tiara Bank of England.

•

Present:
Sen. and Mrs Glass; Y.rs. Fred Grant; Fen. and Mrs. Kendrick;
Asst. Sec. and Mrs. 3liot Wadsworth; Comptroller and
Mrs. Crissingar; Mr. and Ire. Waring; and Anna.
JanAA 1923. p. 38

•

• •
••

Ball, R. L.
.
Member of Federal Advisory Council from Texas.

says

•

Tdllay
best man by all odds for Federal Reserve Aeent of
Dallas, dltho Collier was a p,cod fellow; that he had Indorsed
Talley but was told he had no chance, and than he had written
recommending Collier; that thera wasno question but that Talley
was the best man and that his appoIntment would eliminate
politics, - which mere bohind Collier.

He also aid that if Talley would give the credit for his appointmert
to the Republican boss Creagert he (Creager) had said he could
secure it, but that Talley had laclined.
Mr. Ball told C.S.H. th-t Talley vas a Republican.
Feb. 21, 1923. p. 49, 30

•

• •

Indorses Talley.
Feb. 24, 1923.
'Ealtimore and Ohio R.R.
:=Eta - Schriber.

p. 52

p. 63

Bancroft
Attends hearing an Cuban Agency, representing Boston C.ring
House. Nay 7, 1923. p. 107
Advocates jiving Cuban Agency to Boston.
Bangor and Arootock R.
See - Todd

May 7, 1923. p. 109

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Bank of England.
seo - Norman
Bank of Italy
Crissinger brox4-,ht two National Bank Examiners before the Board.
They said, Her son concurring, that there should be at least
•
one competent examiner and two competent alsistants at each
branch bank in order to make a satisfactory examinalcn.
all
Crissinger complained that California had only 8 examiner.: In
the
as
az
large
bank
a
examine
not
and that the ata e could
Federal
the
from
examiners
borrowing
Bank of Italy without
Reserve Bank to which he was bitterly opposed.
Crissinger aaid that if the Bank of Italy were to apply for a
national charter, he would decline to.gc4it one, because of
the laros number of branches (at that time, 65)
Crissinger did not deny that the Federal Reserve Bank could examine
the Bank of Italy but said the expense would be inordinate,
that is, size would dominate.
C.'.H. said the Federal Reserve Bank must exaL.ine every state
member bank, Whatever its size, unless it accepted the exam:mItion
of the state authorities.
Cri:singer insisted that the Board should take the same view of
size as he aid but C.S.H. pointed tut that that was for the
Board to determil.e.
Dec. 5, 1922. p. 13, 14
Criasinger took the ground that the Board should refuse to permit
the Bank of Italy or other banks to acquire any further branches,
becaase of the fact that California di't not provide for adequate
examinations.
C.E.H. said it would be monstrous for the Board to permit the Bank of
Italy tc retain its 65 branches anl yet to refuse to permit other
banks to have branches when conditions warranted it.
C..H. told Orissin6ar that if, as he (Crissinger) claimed, it was
impossible tc examine the Bank of Italy with its 65 branches,
logically the Board ought to force the Balk of Italy out of the
Federal Reserve systesa
Crissinger said he did nd insist on this, but wished to prevent any
more branches for other state banks, as California was dum;ting
than an the community with the feeling that the Federal Reserve
system would examine them.
C.=3.H. said we must examine them, if the :tate examination is bad.

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Bank of Italy (Cont.)
Crissingar said this would impose an unjuzt tax on the conssunity,
even though, as C.C.U. pointed out, the banks examined must pay
the cost of the examination.
C.S.TT. and Platt pointed out that the national bank examiners brought
to the meeting by Crissiner had. admitted that it was no more
difficult to examine 65 br an-hes, than 65 independent 1)enks.
.Jec. 5, 1922. p. 14
Crissinger sail that lending our examiners to the state authorities
made the public think that the examination as a Federal Reserve
examination.
C.S.H. replied that the Bo Ard vcoull make a public ststtersent vicsich would
clear this us.
One of the mat tonal bank examiners asked C.S.H. ju t ...hat the scope of
a Federal Reserve 3 xardnaticn of state member banks and 'ranches
should be.
replied:It should be a careful, thorough ehamination to ;Ascertain the
condition of the bank and. branches as to solvency, general management,
condition etc., but that the Federal Reserve Examiners shoull. not
undertake to ascertain whether the bank was violating the state banking
.9,
that the general condition of the bank was
Act, providing, of cour,
good; that the Federal Examiners should, of course, report as to aiy
violation of the Federal Reserve Act; that if the Federal Reserve Boari
should. publicly ar's.ounce such a policy, it would throw the burden upon
the state bankin_ authorities,' and that California wculi then have
to make larger appropriations for state exasinations:

•

C.S.H. believes that California can not adequately examine her
banks with such lar,s number of branches 'vith only 8 chief examiners,
and that she is using Federal A,,sistance to lc .vorit she out to'do
herself.
C.S.E. believes the Federal Reserve Act makes it obligatory for
Federal Reserve banks and their branches, no matter what the co.t,
=less they ac-apt the axxlination cf the state authcritie -.
Dec. 5, 1922. p. 14, 16.
C.S.H. believes that to refuse to permit Federal Exxciners to help .
the state authorities in the state exminations would cause deep
dissatisfaction sid trouble, but that, on the other hand, it mirht be
proper for the Board to fix some limitation beyond whish it will not go.
Dec. 5, 192s. p. 16

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Bank of

Italy (Cont.)
believes
(a) The branchas are authorized by the
(b) Secticn 9 of the Fedlral Resorva Act allows st.te banks to
entar the Federal rtrve t'ysterz vith all of these charter
statutory rights "subj ec t to the rii ons of this
to the regulations of the Boari made Pursuant theratc."
Act
and
•
: for admission.
(c) The Board mut extne them: 1 . When applyint
(2) After admission, unlek:sa the state examination is accepted.
D3C. 5, 192.. p. 16

C.S.H. think:. the Board. mi, ht take the position that for the prezent
branch banLing zru,..,t be confined to the largest pre:,.ent number
as a maximum, i.3. .3ay 65 branchet: (Bank of Italy), allowing
other bankb, otherwise fitted, to attain this maximum.
Dec. 5, ,922.
16
The Federal Ileserva Examiners were asked. by the Board to examine
the last report of condition of the Bank of Italy made by the
ctate authoritie'e.
They dia this hurriedly and reported:
1.

No 6b 1 ection to the form of the examtnation.

The findings as to doubtful assets were more favoratle than
the findings of national benk exasiners as to the
most ccnservative N. Y. banl:.s, i.e., the National
Bark of Ca:. erce, N. Y.

This made them suspect the Bank of Italy examination.
Dec. 5, 1022. p. 16

Dr. Miller pointed out that many California merchents borrow in
Nev York and nct in California, lnd that they were the one
who had suffered
Dec. 5, 1922. p. 17
Dr. Miller also zo.il that Fesieral Re:;erve Agent ?errin had reported
that the Ban.: f Italy 11.--1 been managed in a careful, (conservative
manner.
Dec. 5, 192:2. p. 17
Perrin ha_ often said tiAs to C.'.H.
C.S.H. believes Crissinger is oos;osed to - tate bank branche: ily
because national banks can not have branches, and that he
(Crissinger) would. ,o to far a.. alaaost to declare .4v.--r against
'7.tate bAnk 'branches.
D9C. 5, 1922. p. 17

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Bank of Italy (Cont.)
C.S.H. feels that Crissingsr think only in toms of the national
bank system, while the Board has to comItier all member
banks, state as well as national.
Dec. 3, 1922. p. 17

i‘

Conference with Elliott as to the examination of California state
banks and branches.
Dec. 9, 1922. p. 20

•

C.S.H. readk, from Volume 4, Feaeral Re:erve Bulletin, in whibh the
Board laid aown the principle cf cooperation with the state
authorlties, the examination, however, to be made by the -.tatl
authcritia.i,
Dec. 9, 1922. p 20

••

The Beard had previously ruled Jaat examination of the Pacific ".W.
Trust Cumpany 4na tbe Bank of Italy must be paid for by the
banks
examined; these examinations were in fact rsade by the Federal
Rewerve Bank and therefore must be assessed against thaw umAxer
the Federal Re.erve Act.
Dec. 9, 1922. p. 20
Elliott read telegrams from state banks stating that Perrin had
entered
into an agreement with them, before they entered the ystem,
to
examine them withcut expense to them.
Dec. 9, 1922. p. 20, 21
This undoubtedly grew out of the practice of accepting the
state
examination, which the circular of November 1918, read as
above
by C.S.H., -tated had always been done in the past. The
question
now arise za. to that rule to lay down for the future.
Lec. 9, 1922. p. 21
Wyatt advises Board that it haa power to loan examin
ers to supervise
and assist the state examination without imposing any
charge.
Dec. 9, 1922. p. 21
1liott-tIted that in California the state banks pay
the entire cost
of examination by .:aymentc into a atate fund in
proportion to
their resources.
Dec. 9, 1922. p. 21

•

•
.

Elliott ractically admitted that te California
_,tats zAuthoritiez
relied on the assistance of Federal reserve
examiners to save
the expeme involved in examinimi- trl state
banks with a laro
number of branche , e.., the Bank of Italy
etc.
Dec. 9, 1922. p. 21
C.S.H believes that the alleged agreement
with Perrin has in the !,,ast
iomewhat justified them. Dec. 9, 1022. p.
1

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Bank of Italy (Cont.)
Board voted to -ilk each Federal Reserve Agent to re,,
- ort what the
practice Aecs a: tc furniihin* examiners, h th cr without expens
e,
to aseist in state examinationz.
Dec. 12, 1922. p. 21, 22.
Elliott claimed:
California state banks get little help from tha Federal Reberv
e
bank, as a majority of their deposits are saving: iepozit a,
concernin Which, loans were very restricted and Could
create little eligible paper.
0.F..H. feels that the Board ruling that 1()70 reserve must
be
carried agAinst these deposits ( and nct
1.,res some
support to tiie claim of the state banks that the Federal
Re:erve bank should help them in their examinations.
wi thou t char re.
Dec. 12, 1922. p. 22
C.S.H. feels, however, that to tarnish say 60 examin
ers asiagatnet 6
furnihea by Cal ifor nia i
c tnc too far.
Dec. 12, 1922. p. 22
Boara voted to allow a branch of the Los Angele:,
Savings and Trust
Company at Pasadena.
Jan. 2,1923.

p. 34

C. .H. and Crissinger voted No fcr re a:.on that
Perrin reported that
there .vas no necessity for ad _itional bankin
g facilities there,
upcn a similar report the Board turned down the
Yuba City
application cf the Rank of Italy.
Perrin, however, bsed his _porovIl in this
case cn the Trround thet
Pasadena was in the :Zetropolit-n area cf Lot'
Angeles and cn this
gro,lnd th- Board voted qpprovA..
Jan. 2, 1923. p. 34
McAdco called on C.S.H.
Complained of Board's attempt to crash the Bank
cf
for branches.

applic-ticne

Prote‘ted against Yuba City decision.
Denied the necesity for a sireul -,areou
bank and branches.
C. T.H. tells him of Board'

examin:ttion cf the parent

decision cf Yuba City a7p11catIon.

—10

Bank. of Italy (Cont.)
IT.e denied any purpose of the Bank of Italy to monopolize credit
at Yuba City.
C.r,.1-1. asked him to go before the Boar.: anci discwis all of these
matters, and said. he would arrange a meeting at any time.
lircficloo said he hail no time and. that it 'Amid. be of no

use„xi yv'a y.

He was in C.S.H.Is office not over to minutes and lid not even
down. Jan. 17, 1926. p. 38

Applies for permiv si on of the Stockholders Auxiliary Cor?oraticn •.0
purchase the First Nat tonal Bank of El Centro, California, under
an agreement 'with the stockholders of the El Centro Bank, subject
to the qa-proval of the State Banking Department and the i7edaral
Reserve Board. The Federal Reserve Agent, Perrin, expressed
neither ...3p-sroval nor Lisapproval.

The Board votei not to azrove the purchase, as at present
could not a.I..F.rOVA its being turned into a branch.
March 6, 1C.. I:. 57

L4.1 v s ed ,

The Board. based i ts refusal principally on the grcunci that it would.
not consent to thi Bank of Italy establishing a branch in the
Imperial Valley, 7 or 800 miles from its home office in San
Francisco in territory naturally tributory to Los An,73139;
that one of Los Angeles banks alre,A.dy had a branch U101'30:11
that it would. surely lead to retaliation on the pzArt of Los Angeles
banks. larch 6,192:3. p.
voted to deny ;he ...pplication, but solely on the ,..round that
Perrin had not approved the applis.tion.
felt also it might enhance the difficulty of 3:arrilnatIcn,
matter •;hich was still peniinr before th3 Board..
March 6, 1923. p. 57
C.C.H. denied the power of the Board., under its power to tzpose
conctitions on admission, to reLula.te so as to settle the
queiticn of policy at to whether San Francisco banks should be
allowed to invade Los Angeles territory and reserved the right
to Aiscuss and vote cm this question when it came up specifica
lly.
larch6, 1923. p. 57, 58
McAdoo wires Bo.-xcl. that he will agree that api;roval
of the Board. of
the El Centro applic.A ion for approval of nagat i
at lens for
purchasl, shall not commit the Board in zny way as
to whether later
it will admit it
a br,..och.

tir

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Federal Reserve Bank of St. Louis

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•

Beni of Italy (Cont.)
C. :.H. moved that the Board approve the negotiations an the
underAanding that it is not mamitted as to it:. etablishment
as a bninch.
Defeatei by tie vote.
Aye - Platt,
No - Crissinger, Miller.
April 1C, 1923.

Board finally lot :id to inform ...'.cAdoo that its prior decision of
disa2proval remained unchanged.
Miller claimed that the defeat of
motion to recon..ider lait
week, c(matted the Board to the "sphere of influance"
C.13.E.c..rd Platt denied this.
April 10, 1923.. p. 83, 84.
C.S.H. then moved:
That tha Board, in pai.sing

cn branches well consider:-

The need of the territory for banking facilitiez
(for a as novo br-.,nch).

The need for ..,hdaitional facilities (incase of the
voluntary purvhu.se of an axi..,t Inc bank.)

The eff)ct of talr.in,] over the branch on the
balk.

No partition of "aoheres of influence."

Acceptar.ce of the decizion of the tate authorities
to the nece2sity from the po'nt of view of the
public.

to-rent

...
See - 'crap book
Board. agreed. that this motion should .vait as unfinii.th
ed buL:Lness
until there war, a full raeeting of thl Board.
April 10, 1923. -1). 84
,

IcAdoo appe!..trs before Board.
-

Diazusses application of Bank of
Lasted fran 10:30 to 1:30.

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Federal Reserve Bank of St. Louis

-12-

Bank of Italy (Cont.)
Canplained bitterly of Board'z decisions.
May 18, 1923.
1.

p. 119

2acranento
Board had declined this because it was outside the municipal
area of an Francisco.

Yuba City.
Board declined this:
(a) Perrinla disapproval.
(b) Statement of Criswinger that he had evidence to prove
that Bank of Italy wanted to establish a bank there
in order to crush out a national bank there which it
had tried but failed to purchase.

McAdoo Cla1.12114:-

Federal Reserve Board it; bound by the decision of the state
bonking department as to the need for fIrther bank;.ng
facilitie..

That in passing upon an application tha Board could only
consider Whether tz.king over the branch would impair
the condition of the parent bank.

Board has no power to divide the Aate into "spheres of
influence."

The Board hat; discriminated ag:Inst thi Bank of Italy in
.-iving so many "tellers windows" zo called, to the TO
Angeles Banks.

The - e "teller: •mindowa" are to all intents and purpos
es,
branche:.. Tay 18, 1923. p. 119, 120.

McAdoo .vas very indignant at the alleEed discri
rAnation of the Board
against the Bank of Italy.
C.S.H. said no merber intended to discriminate,
an: McAdoo practically
aimitted this but said it sae discrimination
in law if not in
intent. 'lay 18, 1923. p. 120
CA13 -• :44Adoc
C.S.H. said at the hearing that he agreed
generally Nith :4cAdools
construction of the law, with the excetion that
if it were

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Federal Reserve Bank of St. Louis

.43..

Bark of Italy (Cont.)
proved that a state bank wished. to acquire a branch :merely
to destroy(as opposed. to fair couwetition) an existing
national b_nk he thought the Board would have power to decline
the application for a branch.
McAdoo pointed cut with L•onae force that wherever a national bank had
a monopoly it naturally -clacaci F. very high value on its stock,
and. often refused to sell at any price in order to perpetuate
its monopoly, .ind that clearly the Board. had no power to prevent
fair competition by refusal to allow a branch. This seems sound
to C.F,.H.
May 18, 1923. p. 121
(0..1T. made the st.,ternent as to crushing a national bank because of
Crissingeri statement that he had evidence to prove this in
the case of the Yuba City application.)
McAdoo arri Elliott came before the Board. to obtain its consent to
the purchase by the Bank of Italy or its ztockholders
auxiliary of a bank which was In .1.. precarious condition.
The application was approved by -Derrin and. the state superintendent
.
:íy 22, 1923. p. 325, 126
After long d.iscussicn Miller moved to approve the purchase but
to
advise the Bank of Italy that it would. not permit it to become a
branch.

C.S.H. moved approval be cause of an emergency
this action iaculd. not be taken as
policy laid. loyal by the Board.

th the statement that
precedent against any future

Both motions were defeated.
C. S.E. then renewed his motion but it was defeated. by a tie
vote.
Aye - C. S.E., Platt and James
No - Crissine,er, Miller and. Dawes
The real reason of those voting No was the "sphere of influen
ce" poliqf
C. S.H. begged them not to found any such policy as this case,
wl'ers
refuzeil would probably mean closing of the bank,bu
t to treat it as
an emergency.
Dawes ;hen moved to reconsider and the "action
prevailed.

f T`r

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Federal Reserve Bank of St. Louis

Bank of Italy (Cont.)
It 'vas finally voted, to permit the purchase oil the understanding
that the State Superintendent and. the 3...tr* of Italy agreed that
this permission should not be taken as a precedent againht
any future policy the Board might lay down on the genera.1 question
of branches.
C.S.H. suggested. that we tr.-mt the applic...,tion as one for a. branch
but Miller objected.
The Board agreed, LoweveT, that if later a branch was applied, for,
Lt wo-Ad have to grant it because of
proval ct the purchase.
:Jay 22, 1924. p. 126, 127
Perrin wired that Bank of Italy b.ad formally applied f or a branch
at the above place.
The Board granted, it im the above conditicn.
May 24, 1923. R.. 127
Board voted to ask Perrin to review his alverse finding as to
the
Yuba City branch, in order that the Bank of Italy 'eight lay before
. him aid it ional evidence.
May 24, 1923. p. 127
Platt moved to reconsider the vote of the loard declining the
application of th Bank of Italy for a branch at r"-;a‘...ramento.
Defeated - Aye, C.F.:I. Flatt
No
Crissinger, James, Millar, Dawes
June 1, 1923. ,. 143
C.S.H. reported a form of letter to McAdoo giving the Board's reasons
for its original rejection of tl-le er.-211c,flons fcr Sacramento
and Yuba City.

•

The Board had asked Perrin for a review of his report on Yuba
City,
but this proposed. letter was in response to McAdoo's reque t for
the reasons for the origInal r efusal.
inentioned in the letter that the Superintendent of Banks
had
given his certifi;:ate in the Sacramento case 'before his
new Is clicy
as to de novo banks.
bliller insisted this should be stricken cut and that
we Lhould zay
that the Board has no infcrmation that the Superintendent
had
given
certificate in this case after the al option of hie new
June 1 , 1 923.

p. 144

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Federal Reserve Bank of St. Louis

-15•

Bank of Italy (Cont.)
opposed this ,ayinc the Bank of Italy miEht gat a new
certificate, ...nd the Board by such a statement would impliedly
take the position th=•,t it all dependld cn the c3rtificat3,
to Aihich C.S.H. and Platt would nct object to but to which
C.S.H. thou- ht the other members would object.
C.b.H. an'd Platt said the Board was bound to accept the certif
icate
of the State Superintendent except, perhaps, in some extre
me
case, where it was cl3ar1y erroneous.
•Illrla 1, 1923.
p. 144
The California Superintendent of Banks held a conference with
the
Board.
June 4, 1923. p 143
Prasent:

Gov. Crissinger, Platt, and C.:3.H.

The Fuperintendant zaid he had chanted the state p olicy
as to •cranch
banks; that there NBA a feeling that fcrzer ouparintande
nts
had gone too far and had been too 3aay in granting permi
ts;
that his ned policy ;Jai; fomed after an agreem3nt
entered into
with the v-ri oua banks.
He said kis new :olicy Naps to perwit bral :has in the
town or city of
the parent bank when necessary, but not to permi
t branches le
novo cut side except where, fcr si)ecial reasons, h
should grant
a certificate.
He said he ame the certificate -s to 2acramento
to the Bank of Italy
"cefore this change of policy.
He further said that if now asked for a certi
ficate he should decline
to rive it.
June 4, 1923. p. 145
The ab ova clearly justifies the Board in
rejectinir Sacramento.
:L.H. and Platt voted to grant it relying on
the original certificate
of the Uuperinteni .1nt, but they had knoln
his present attitude
they yould have voted differently. p.
146
The superintendent was asked as to Yuba
City and sald
over it aain
refully.

1:3

wcull. go

He said he felt the exaainatlon quest
ion could be .'.'ored oat
satiafactorily and that he could examine
the Bank of Italy and
branches aimultaneously with his force
augLented by clerks from

-16•
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Federal Reserve Bank of St. Louis

JikeZ.i .L1, .11.

10441e1144.X. e:ic.Jg; 614.1 10
4.1*
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4-...i.Zi"V> 111410

•

irrle;;;e::

Bank of Italy (Cont.)
the auditing and other aepartments, with such help a4 the Federal
Res3rve Bank would give him. p. 146
He 4.2.1d our ruling requiring a 10% reeerve against special i-avings
deposits .as regarded wi very extreme nd would. cause ...res.t
hardship on certain banks.
June 4, 1923. p. 145, 146
At Board meeting today the reading of the minutes of the last meeti.ng
(C.:-:.11. absent) showed that Wyatt's memorandum to the effect that
Elliott wished to file a brief with the Attorney General on the
proper construction of .5ection 9 was "noted."
June U, 1923. p. 148
Miller claimed it was the intenticn of the Board. to reject it.
C.S.H. moved to inform Attorney Genar_:.1 that Elliott desired to
file
a brief, thci Board neither approving or disar,proving but merely
to inform the Attorney General.
Carried.
C"issinger absent, all voted Aye except Miller.

Miller .vas very ..ne'rY and said no one should be permitted
to file a
brief.
C.S.11. asked Ailler If he feared that Elliott would convir
ce the
Attorney General that his (Miller's) and Wyatt*. opinion
was
• wrong. June 11, 1923. p. 149
Miller char gecb that some member had L.:properly told. Elliot
t that
the c;inion of the Attorney General had been or was
to be asked.
C.E.H. said that this fact las told. to :VicAdco and
Elliott at the
hearing on May 22, by the 30.2.rd, and d.iscu:.sed
freely.
C.S.H. also zaid. th,t at that hearing Miller auge,..e
ted to McAdoo to
start a friendly suit to test the matter.
June 11, 1923. p. 119
C.S.H. asked Elliott how he :came to know that an
opinon ens to be
asked for.
Elliott said. Gov. Crissinger told him arid that
the Board also mentioned
it at the hearing of Y.ay 22.
June 12, 1923.

p. 149

As a fact the Bo•ird had ageed to ask
for an opinion prior to May 22
but Hoxton told. C.S.H. his minutes
did not show it.

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Federal Reserve Bank of St. Louis

Bank of Italy (Cont.)
C.S.H. told this to the Board ••3nd Gov. Crissincer and Platt acreed
with C S.H. that the Board had so voted. LG‘ter, onMay 29, the
Board again forILally voted to a:.k for the opinion.
June 12, 1923. p. 149, 150
oves to reconsid er the Yuba City applic „ti on.
June 12, 19231
p. 150
The Board had aszed Perrin to review his unfavorable report and Perrin
had just sent to the Board a report reversing his original
report and ai:provine the application.
In thie latter :•et.:ort he said:1.

There Vida need cf additicnal banking facilitieL in Yuba City.

That the national bank than Avuld not be cral:hed by the
e‘tablish.aent of this branch.

That, on the contrary, the president of the national bank
favored this ai.).,.:dlication, c.n the ,:zrcuth that it was
inevitable that additional banking fxilities must be
established in Yuba City mci Sutter County to care for
the .Frov‘int business of Yuba City.
'Tune 12, 1923. p. 150

said he voted originally against the :Ipplication because of
Gov. Crissingers rtatement that he had. a telegrm which
convinced him that the Bank of Italy wished to crush the
national bank, not being ib1e to buy it; but th:_it now it appeared
there was no ,;uch danger, but that, on the contrary, the n..-.ticnal
bank favored the applied- ion.
C.S.H. also said he urt.erstood that the state bank superintendent had
•-iven hi c approval.
Gov. Crissinger doubted this hit some member pointed. out tilat it was
the
i'acramento bani:. to which the Superintendent had. said. he riould
not issue a new certifimte since his chane of policy.
(see zuDra, June 4, 1923, pe 145, diary).
It Ass also pointed out that the superintendent did favor
i lowing
this branch.
aaid he felt bound. to follow the state policy, and
that, cn the
assumption that the
haa a2orcvet-i this branch, he
felt bound to vote to reconsider.
...Also favored. :aeons: i-eration.

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Federal Reserve Bank of St. Louis

-18-

Bank of Italy (Cont.)
The :Lotion failed.
Aye - C.s.H., Millar, Platt
No - Gov. Cris singer, James, Dawea, Cunninghsa.
June 12, 1923. p. 151
Miller begs Pnard to reconsider Yuba City applicstion.
June 14, 1923. p. 153
Says Board relied on Perrin's first adverse report and, a telegram
of protest from the national bank; that we had aaksd
Perrin to review his 1-eport and he hai sent r,.; a second
report stang that there was need of addi tional banking
facilities, nd that he national bank would not - e crushed,
but that, on the contrary, the president favored it.
June 14, 1923 ). 153
Millr said
refusal would put our Board in „In arbitrary ,
%nd
ridiculous position and you'd lay us open to a charge of
liacrimination. p. 153
Gov. Cris singer said he lid not believe there was need of additional
banking facilities in Yuba City.
Miller • id Gov. C.

couldnot claim this in view of Perrin's findinp.

Cd'.3.11. pointed out - hat Gov. C. was not bound, in law, b..- Perrin
's
findings, but coul 1oical1y refuse to accept than, although
C.S.H. did accept them.
p. 154
No action was taken, but it was left fcr consideration by the new
cannittee on examinations, when appointed. D. 154
C.F.H. tells Miller that Elliott told him that he learned that
the
Board vas to ask an opinion from daa Attorney General, from
Gov. Criasinwer, and also from the Board itself LA tl_e hearin
g
of :Tay 22. (See aupra, June 12, 1923, p. 149)
June 14, 1923. p. 154
Crisainger reads letter from Elliott asking to be shown
the 2nd
report fram Perrin en Yuba City. ,Tuly 31, 1923.
p. 150
The Board had previcuIly refused to show this
report to Elliott, and
none of those Nho io voted would r..ova to reconr
idor 60 the refusal
tood. July 31, 1923. n. 159
The above refusal...place:. the T3oard
in a ridiculous position. when
Elliott and. ?.ficAd.co protested., .t the
he.i..ring, against the Yuba
C'ty decisiLn , the Board justified it
on the grouni. of Parr 'in's

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Federal Reserve Bank of St. Louis

-19-

Bank of Italy (Cont.)
first report th-t there was no need of :Additional banking fi..cilities
ther 3
also :•,aid. to McAcioo that if the purpose was to crush the nat cnal.
bank (referring to Gov. Crissingeris statammt) he thouht the
Board had. pow3r to refuse the application. (see supra, May 19, 15.'23)
Fine...1 - j, Elliott and :cAdoo Asked. the Board to ask Perrin to review his
report to that they could lay before him further evidence.
The 3u...rd informed theca that it would. grant this request, thus by
necessary implir.:a.tion taking the position that if Perrin found. that
there was a neceS.,ity for f-urther banking facilities, and that there
Aia.6 no attempt to crush the national bank, the Board. would approve
the appltati on.
Perrin sant in a report findinc that there was need cf additional
banking fad:litie s and. that the national bank, o far f
fearing crushing, actually favored the application, on the •_rouni
that it was inevita'ole that banking •facilitie -: be exterri3i to meet
the groaing busineis of Yuba City.
.The Board then deliber.atea,y ref-ased to recontier

prz.Int the ap

Finally tl.e Boar-1 refuses to permit Elliott to see this second ftvorable
report cf Perrin, altho it had. given him
coy of the fir it
advbrse reort.
This refu-sal was male, in C.F.El. Is oninlon, kncwinL that if the
econd report was trade public it wc-.2d convict the Board of
deliberate dit-:crimination agahst the Banl-c of Italy.
1.

Board. et.r.t idert. al.iplic_ttion of Bank of Italy to e tablish a
branch at Long Beach, California, 23 iIle
outh.vect of
Los Angeles.

Also con..',dared application of Pacific F,.W. (C.avings and. Trust
Company to esta.blish a branch at Porterville, 236 miles froa,
Lcz Angeles, but .louth of Fresno which
the flvUing line
between an Francisco a.ni Los Angeles as to freight charges.
July 31, 192;.'. p. 159
invo17ea the quest cn of spheres of influence; 772 does not.

Perrin report both favorably as did also the state Ciaperintenant.
• C.`:.11. arri Platt favored approvAl of both in accordance Pith
Perfint raport.
Gov. Crissincrer, :_rai.Aet and.

op,,osed both. p. 3.59

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Federal Reserve Bank of St. Louis

0•1

.. .

Bank. of Italy (Cont.)
then offered the resolution he offered on A„pril 10, 1923,
a3 to the 3oard being "c.)ounc1 by the .i.eciaion of the ;
)tate
su2erintendent 9.9. to nmaPsity, and against the power of th#3
2curd to divide the :tate into cohere: of infli.:enc...e
(Coe raprc., A..)ril 10, 1923, dit.ry p. 84)
efter long di.scussion, -rrved reference to the .:.ozarlittee
on
exczc.inati on. , hch was finally voted..
July 31, 1923.
160
Miller then moved that, in view of the strong opposition to this
resolution on the part of 2 members cf the committee, the
two petitions be referred. to the committee to re.dort back
reascns Ilich the Board might give should it finally determine
tc reject both ao,licationsl
This Nas "passed, C.c",.7. voting no.
July 31, 1S23. p. 160
The Comiiittee reported. In the forfl of a reollltion, that both
applications should be rejected.
August 2, 1923. p. 160
Reasons ziven,1.

Ztate 'eunks with numerous brch3
Jflricit'oe exalLined
Gatisfactorily either by the state authorities or by
the Federal P.eserve bank.

Admission of sta*.e bankb with unlimited right to e,tablish
branches is inconsistent with the 4pirlt of the Fedar5.1
Reserve Act. etc. Btc (Fcundsd on Wyatt's opinLon).

Nc mention of C.S.F.. resolution.

Platt filed

Lnerity rort. p. 18C

Board voted to leclha both applicyationsi.
"ye - 7rissinfz,er, Dawes, lynningham, James,
No -

.IT., Platt.
Anz:ust 2, 1923. p. 180, 131

:Mier offers pro:dosed letter to Perrin, announcin
g Board'
C. S.H. 0.
,jected that this letter 1i
rejecti cn.

not j.ve tio r1 realtns for

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Federal Reserve Bank of St. Louis

-21-

Bark of Italy (Cont.)
C.S.H. moved that the resolution of the Loard (based on said
committees report) be sent :o Perrin and to the briks
interested.
This 1.c.t ion fina.11 y paszed.
Miller voted to reject both qoplications, but also voted against
the r ,soluti ons b ecau se he objected. to sa..e of the reasons
;zi van. p. 1 Ea.
C.S.H. _;:ni Platt ,greed to insist that the letter to Perrin
conveying the resolution shoulJ state that the vote was a.
ma4oriti vote, ani that if this was voted down we should
give out a public statement, that a minority report had
been filed and that C. S.H. and Platt had voted in favor
of both applications.
August 2, 1923. p. 161
Platt tells C.S.H. that Perrin protests against giving said
resolution to the banks interested.
Au4gust 14, 1923. p. 162
Elliott tells C.S.H. that he ha, learned that the macittes on
examinations 'as to report a branch banlc resoluticn on
Friday next. Did not say how he heard this but C.F.H.
&grams aov. Crissinger told him. This was the first
information C.S.H. had a3 to this.
October 31, 1923. D. 177, 178
James', the next lay, told C.S.H. this was true.
C.E.H. asked Gov. Crissinger Who said that a resolution had
been prepared.
C.S.H. si_id James said it would come up Friday but that
he had tc
leave for lattapoisett 'that eveninc .id could not be
hare Fr id ay.
GW.T. Cris singer said it could not cane up on Friday,
as he was
not satisfied with it in its present shape.
C.E.H. told this to James Who r..ther ungraciously
agreed to
let it vo over until next week.
James said Secretary Aollon s]hould.also be
pre ,ent.
C.S.H. agreed to this and iaid. he could say
all he wanted about
the reolution in five minutes. p. 178
The branch bank resolution offered by the
cammittea .vas considered
and adopted. Nov. 7, 1323. p. 178

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Federal Reserve Bank of St. Louis

-22-

Bad1c of Italy (Cont.)
This resolution :provided that after February 1, 1924, the
Board would decline all application:: for br=ches autLide
the city of location of the parent bank and territory
contiguous thereto; that applications filed prior to February
1, 1924, for branches outside mch territory, would, however,
be dectied .cn their merits, etc.
Vote!
Aye - Gov. Crissinger, Dawes, Cunningham, James
No - C.S.H., Platt, Miller.
Nov. 7, 1923. e. 178
Gov. Crissiner said he thought the resolution transcended
the
powers cf the Board, but he fear e't the naticnal ba6:in
g
tem
was doomed to destructton unle ,s Congress 1-..hou1a change
the law,
and that therefore (1) he should vote for the resolution.
If
Gov. Crisainger had voted in accordance with his expresed
qpinion that the resolution Alas not within. he power
of the
Board, the re7olution mauld have been lost by a vote
of 4 to 31
Sec

Mellon sent word he cculd not be pr a ent and asked the
5card
to go in vithcut him.

C.S.H. regrets this as he believes that *Aellon wculd have also
been of c
1-_43,t the resolution was illegal L.,nd would
have voted against it.
James acnIsed 11111er of filibustering ai-7ainst the resolution,
and
Miller answered him very angrily.
The debate centered upon C.S.H.'s mcticn tc wubsti
tute Plattis
minorityre:,art for the majority report, which -vas
lost by
the co vote as above.
The 7card voted . o grant the petit ion of tha
Pacific S.W. Trust
Company to equire the Porterville branch with
two ether
branches cAned by the Porterville bank.
Nov. 22, 1923.
p. 179
Jameg ani Daweg voted for thig. to the sreat
surprise of C.F.H.
for they both opposed it wl-en the Board
originally refused
it on July Z1, 1923. (Sea supra, diary
page 139, 16C.)
Ja-el .ali th3 Board's resolution
did not take effect until
Feb. 1, 1924, aid that, meantime,
every application '..huuld
be decided on it merits.

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Federal Reserve Bank of St. Louis

-23-

Bank of Italy (Cont.)
As Dawe. and James are opposed to any rhnches, exospt perhaps,
in the city of location, it may seem inconsist3nt now to
grant this application, but it is not really zo, as the
Board in the past has repeatedly granted applications for
branches outside the city of location, and the resolution
provides that prior to Feb. 1, 1924, each application shall
be d.ecided on its merits, i.e., ac-_:ording, to the policy of
the Board up to -he time of the said. date.
Some members pointed cut this alleged inconsistency, but C.S.H.
originally pointed out that to le-xe the adoption of the
nes policy to take effect in the future, - Feb. 1, 1924,
inevitably would cause trouble, in that ap.lications filed
before Feb. 1, 1924, would. have to be decided accordint
: to
the former policy of the Board.
C.S.H., ther3fore, ;3es no in:..onsistency
in now ap_rovin. this
a.pplicationand therefore votet to approve it.
Board t-altes i ap.A.it ion of 'Bank of Italy for branches at
Watson City, Long Beach And
ta '!aria.
Dec. 17, 1923. p. 190
There had been rejezted on Auem t 2, 1923, (Sea s'pra p. 1tiC,161)
ea'..J. the Bank of Italy had deliberately violated its agreement
with the Board not to buy over 20% of the stock of ny new
bank without the con, ent of the Board.. p. 190
It seems that McAdoo h(...1 advised the Bank of Italy that the
stockholder's comittee cr the Banc-taly Corporation could
buy stock, notwithstanding such agresaent, as they had no
connection with the Balk of
C.S.II. said that while, technically, :dcAdoo's opinion might be
correct, he felt that looking through form'to substance, the
Bank had not acted in good. faith in the matter.
C.S.H. said that what troubled him -vc.s, whether in spite of his
opinion, he should -ase thl. a as a reason for voting to reject
the applications, inasizuch as, in each ease, the state bank
auperintendent had. certifiedthat the public interest and
necessity demanded thei:e branche.., anct that Perrin had. carting
to the saiLa effect.
Later, however, it appeared that the ak-_,- reernent of purchase vas
made
exross1y,Ilbject o the approval of the Federal Reserve Board.

-24-

Bank of Italy (Cont.)
said ',his put a d.ifferant complexion on the rIlattar and
he was inclined to fedi that it. dispelled Jat.,:e5 .;harEe
of
faith.
James
were it not for the bai fith, ha ., kould vote for at
least some of the.:e
The vote to apr.ro-.-a ‘'as lozt by a tie.
Aye No •

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Federal Reserve Bank of St. Louis

•

Gow. Criazin 3r, Platt and C.5.11.
J.soi r Cunningham, ni Dawes

•

Dr. Miller refused. to vote.
Dec. 17, 1923

• . •

p. 190, 1S1

Miller, later, moved to reconsider and Gov. Crissinger rulei that
he ha this r14;lit, although he had diclined to vote on the
ortna1 motion)
Dec. 3.7, 1923. p. 191
On :4i -11i:iris motion to reconsider, reconleracion

oriered.

The applications for Long Beach and Watson City were approved,
Miller votine
; aye.
Dec. 18, 1923. 9. 192
The

tp?lication for Santa Maria was then rejected, Miler voting
in favor of approv..1, an Gov. Criosirgar voting nc. p. 192

Bankers acceptances.
,
;.oved. that the privilege of buying bankers acceptances in
the foreign trade with maturities up to six months be
extended to docuetic banker a ::Accept.encas secured by .a.rehouse
receipts luring the life of the acceptance covering readily
marketable, staple, agricultural proltrts.
Voted

nLncul y.
Dec. 12, 1922.

p. 20

Most of the c- eptcs held by Boston and. New York on exports
are
bankers acceptences.
Jure 27, 1923. p. 158
Baruch, Bernard. M.
Gr - atly cheers :4r. Wilson on occasion of a call on
hi,n.
Sept. 25, 1923. p. 173

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Federal Reserve Bank of St. Louis

Beal, Thomas P.
Fears appointment of Governor Harding as Gov. of the Federal
Reserve Bank of Bo.;ton might be construed as a slap against
the administration.
Dec. 18, 1922. p. 26
Death of
May 25, 1923.

p. 130

C.,=.1.1. attends funeral
May 26, 1923. p. 130
Birthe..;.4 of C..E.
:,in. and :fire. Wilsongive C.S.H.
r•Ibbits hind foot ..o.unted in t old,
a: a birthday pre.ant.
Aug. 30, 1923
p. 163
Birkenhead, Lord
C..H. speaks to Mr. Wilson about the recent attack of Lori Birkenhead
on him.
Mr. Wilson gaid that while in many ways he was an able ran, in many
others, he was an unmitiE.‘ted ass!

•

• C.S... sa.Li he was Er teful to Birkenhead fcr ha frank expositIon
of the selfishness of nations, md for his advocacy of the long
exploded theories cf Mandeville and Hobbes, of over 200 years
ago, long since refuted by English Ethical philosophars,
that only he fittest survived, that the gain of one Aas the
precise measure oi the loss of the other, and that the zame
principles applied to nations.
.C.S.E. said these bestial conceptions were valutible as furnishing a
back ground, a chiaroscuro, so to speak, ag drist which the
idealism of Wilson hone forth like a glittering diadem;
that if the U.F. had but followed Birkenhead's ideals we
.hould have kept out of the war and Cre;zt Britain would ncw be
hewing wood and drawing water for Germany/
Fept. 25, 1913.
m. 172, 173
Just before this Charles Warren wrote a letter to Birkenhead
protesting against his remarks, sanding me a co,
i?y which I
read to Mrs. rllson at :.:attapoisett.
write a a letter to Wilson praising his article in the Atlanta
Monthly and attacking TJord Birkenhead.
Oct. 9, 1923. p. 175
Prev.iient wilson.write: C.:1.H. severely attacking Lcrd
Birkenhead.
Oct. 10, 192.'.7 p. 17F

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Federal Reserve Bank of St. Louis

Blake, :vs. Arthur
Sends her automobile to C.S.H. for use cf
Mrs. Wilson Ahile cur
machine, damaged by zollisicn, it beine
repaired.
Aug. 30, 1923. p. 165
Presic:ent Wilson sends his regards to
Mrs. Blake. Asks as to
her maiden name Lnd wrifes C.S.H. refl
rring to her '2onnection
with one of the honored families of N.E.
- the CreenouEha.
ives the letter to Ws. Blake.
p. 1711 173
Bliss, Asst. Sec.
Name appear. on list of a bootleEg
er assisted in Washin ton.
March 14, 1923. p. 62
Bolling, John Ranftolph.
i3OS Ir. 711son and Mr.
Bolling.
Sept. 4, 1923.

p. 165

1s Wilson is 6a1ning; that he was
able to izo up to his
room in the elevator alone; that for
a long time his
.atri had to ,
f c up Nith him.
Sect. 11, 1923. p. 157
SaYs Wilson.is most anxious to recover the
use of his left
that at time:. he is very emotiona
l; that he umally
warned callers against expressin symp
athy or elicgizing him,
as it rather unnerved him.
He referred to the tears in Wilson's
eyes when I told him of the
reception dlrs. Wilson received in
',!attapoisett and of the
a-idre.s she delivered. To Me, howe
ver, this ...rely revealed
his deep affection for Mrs. Wils
on.
Sept. 11, 1923. p. 157, 168.
Gov. Harding said Bolline replied
in a very brusque manner saying
that :dr. Wilson would not consent
to his publishing his
letter to Gov. N. onthe subject
of the BritiAh exchequer
loan.
Sept. 22, 1923. p. 171
Bolling said
Wilson had written a letter
to some friend ayin
he did not care to see Prof.
MeTlroylz. book an Cleveland,
a. fram .ihat he knew of IcElroy
he was sure it would not be
well done.
Dec. 1, 1223. p. 184

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Federal Reserve Bank of St. Louis

.037ss

BolahevIks.
Admiral Ntbladk tells C.S.H. that the Russian Bolshevik had
faithfully kept to their agreement with the U.S. as to supp
lies
shipped to them, but that, for some reason this had never
been made public.
Nov. 10, 1923. p. 10
Harriet Hamlin tells Wilson that the Faaciati in Italy was
originally a patriotic society
ething like our American
Legion bent on putting down Bolshevism.
Dc. 27, 1922. p. 30
Bonus, Foldierz
Mitchell (F.11 Board) tells C.F.H. he is disgusted
with SenaLor
Kellogg because of his vote for the bonus, that
it was
done to ,:atch votes.
Dec. 281 1922. p. 33
Bootlegger
A Washinrton bootlegger was arre,ted and found with
list of
persons, - presumably customer., - Aich the Wash
ington Post
printed.
The published list, wi:ong many other,
contained the name. of
•
Cong. Hill of Baltimore, Assistant Sec. Blis
s of the (..tate
De-)..rtment, Mr. Thom. Anna .as told by a
friend in the
State Department that Prssident Hardingla
name, Secretary
;vodka, and Edward cLean, owner of the
Wewhington -lo•.4, were
also on the list, but wars not printed
by th: Post.
The bootle#ger made an affidavIt the.t the
list Nasmersly one of
persona to whom he hoped to sell automcbile
s1
Borah, Son.
Mr. 7ilson tells C.S.H. that he believed
Borah to be a sincere mans
but one who always fell short of pract
ical alcomplishm,nts.
Dec. 27, 1922. p. 29, 30.
Borrower, Section 13, Federal Re.ierve
Act
C-07. Ceay asl:ed the Board to consider his
argument against the
correctness of LoganIg and Wyatt's opini
on on the following
facts: A cattle raiser sells cattle to 6
farmer, tAine their individual
notes for each steer, each note
being sithin the 10%
limitation of Section 5200, Revi
sed Statutes; the cattle
raiser then discounted these
note 4th a member bank,
indorsing each note.

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Federal Reserve Bank of St. Louis

llorroxer, section 13, F. R. Act (Cont.)
The member bank offered these note
Federal Reierve Bank.

for rediscount •.vith the

The Fe....eral Reserve Bank refused to redi.co,..nt them on he Rround.
that the cattle raiser ,vas the real borrower und.er !-ection 13 and
the sum of the notes, - althoua each vas sigied by a different
maker, exceeded 10% of the capital and. 4uro1us of the member
bank.
Our Coun3e1 Logan held that the ni‘akers of the notes were the real
borrowers under Section 13 and that the notes were technically
eliri'ole for relii-count, vhatever the noligi of the bank might
be, and Wyattzoncurred. in this colnicn.
C.r

prepared a menwrandum reachinp: the same conclusion.
(See crap book) Oct. 13, 3.22. p. 2, 3,

The Board referred this to the Federal Re..ierve Agents Conference, but
they were divided and no conclusion was reached.. 13. 3.
If the above opinion is correct, then an early o:Dinion of Elliott, that a borrower cease to become a borrower of a bank which
. has rediscounted hi; note vith mother banic, - must be wrong,
for if the borrower ceases to be a borrower of the bank from
which he originally borrowed. the
he it become a borrower
of the bank which rediscounted hi.. note, ,--)nd, in Gov. ;.:.,eayis
case this would be the Federal Res rve BanirConess, however,
never intended that the Fed::ral T.le.erve Bank ahculd become the
direct creditor of the original borrower. In C.S.H.Ia opinion
once a borrower .alwajrs a borrower.
Boiton, Federal Re.erve Bank of
The Federal Advisory Council .:4vised. the Board that the discount rateof
*.4) at Boston, Ne.% York, ‘42.1..1 San Francisco, should at once be
raised. to 4e:).
February 20, 1923. p. 47
(91 - Ne.v York
Board felt there were sc:Je

a of 6peculativi activity at Boston.
p. 48

Bozton wired askin,z, for a„-- proval on increase fror.. 0 to 441%.
February 21, 1923. .2. 48
Miller, while at firct not directly op.osing this increaze, finally
;aid it should be postponed until the adjournment of Cont-s,rezs,
&a otherwise Congress would attack the Board!
p. 48, 40.

-29-

on, F31 )r al Reserve Bank of (Cont )
tter.
Miller .Loved to table the
Crissinger and iller 7oted tc ti.13, but the others voted Tc
and motion was. lost.
On the main ruction to ap.prove the ircrease, Crissing3r and Miller
the other Nc, Lind it wa, carried.
voted Aye
Feb. 21, 1923. p. 48, 49.

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Federal Reserve Bank of St. Louis

Federal Reerve Bank asks for approval of increase in di a:cunt rate
on lorinc1e the longer
on 9 7.Lnt1:s at-r icultural paper to 5%,
maturity lac-landed a hic_rher rate.
kril 7, 1923. p. 82

Although 4 Federal Reserve banks have pit in the sone rate for 9
months ac f' 6 u.on ths aFr ic7.11 tur al paper, and al th.oui-h the
disccunt of aRricultural paper of all 1.1aturitiei, iv very Mall
at Bo.ton, the Board felt it ou.--1-.t not to override the '7,e..r.hea
of the directori, clnd therefore, approved the increase. p.
C`aban A: ency
1C), 11C, 11, 117, 118,
124, 127, 128, 129,
130, 131, 135, 136, 139, 140, 141, 142, 143, 1:36, 159
Lee - Oaban Agency
Curtia2, Federal Re.lrva Azent
Fir,4 National Bank, Bcstcn
II-rding, Gov.
Willa:, D.
13oAcn Cle.3.r1ng House
Committee of 3oz..ton Clexing House attend Cuban AFency hearing and
advccAtez de.ignation of Federal Reserve 'Rank cf Boston.
107
May 7, 1923.
Bradley
Salary comAttel reported favoring dro-lping of Bradley fror roll et
Coamialla office. This -Ara; .1cne xith(At consulting with the
Las CaL.Ittee, nor had Wyatt ever suggested this to Law Committee
or 4,er,tioned it in his written report concerning ‘alary changes.
Bradley waz originally appointed a 7rivate Secretry to lilictt and
was given sarue salary as - ivalte
cret:--rier.. to Board rpert.:..., rs,
and nom receiva, T thn1z, 2200.
On C.r,.H.
matter was refrre.-1 to Law Cc ,Littee arri .F..H.
and Platt reported that Bradley was qualified to earn ';1800
as stenoc,raphsr, and :c recom..encied.

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Federal Reserve Bank of St. Louis

Bradley (Cont.)
The Board, after a long, discussion, voted, to drop him
role: cn June 1, 1924, but that he covli receive
salary uttil then. :11.11 er
the cause of this
telked, at great length of the absolute nee 3.-lity
out dead wood., etc.

from the
his ore ,. ent
action, and
of cutting

C.F.II.
Tlatt said. Wyatt ha reported that Bradley was perfectly
competent to
a: a ztenogrAphs• :t 1POO ••?.. year and that
if dropped, a new =,tenoqrapher vvold have to be 3.Doointed in
his place.
Jcnes :;aid he would vote for $1800 for him but when the vote caz.le
- he voted to drop him.
C.S.H. and. 'Platt gave notice that if he was dropped frcm the roll
we zhould object to the aopointment of cily new t;tenogrvher.
Dec. 20, 1923. o. 192, 193
aunningham tells C.S.H. he hal misunderstood the vote os to Bri.
-dley
and. thol:ght the Board had. merely abolished his secretarial
duties .1re that he had not been dropped from the rolls. He
also sail he aould. be glad to move to reconsider tomorrow.
C.S.H. asked him to see JaL.es and. later he ',lid he had. seen Jache...
who said he soi.:11 vote to continue Bradley as a :stenographer
at $1800.
Dec. 20, 192,::. p. 193, 194
"goy. Cri ssineer, at C.S.E..'s reque:A, called a special ineetin; to
con6ider Bradley's case.
sta.tal what Cur.ningham Laid to him ye:;terda-,/, - Cunningham
had not then come in.
C.S.H. said the read ing of the records showed that the
Board merely
voted, to discontinue Bradley's secretarial duties, i.e.,
to
abolish the office of secretary and. stInograp.her, :and that
sonle
other c2.oticri was necessary.
C.

H. accordingly moved th at Bradley be continued. as.a stenogr
ep her
at 1800.

A bitter debate folloael, - :L.-Iler .aid ie vere
trying to carry along
dead. timber, that the committee's report on salarie
s ..e.s the
moat carefully ra._de of any he had ever seen, and.
that if we
did not sustain it he 3hcu1d move to lischarge
all committees
of the Boar.i.
A.e. a fact, however, :Mier was on
committee, 'tut dii. not siga
the report, hut in the Board. voted. against
practically every
increase f,...vored by the cammitteel

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Federal Reserve Bank of St. Louis

-31-

Bradley (Cont.)
James :-tied with

as to Bradley.

C.S.H. said he had asked for this special meeting
on Cunningham's
statar,:ent to him that James said he ;culd vote
for $1800.
Cunningham, to C.S.H.'s great surprise, deni
ed he had said
this to C.S.H., and James also denied having
said itI
Gov. Crilsinger then said to James, "I heard
you
y yesterday
that you. would vote for $1800 for Bradley.
James said,
"Yes, I did, and I am Nilling to now" and
then he voted to
drop Bradley)
Miller, Cunningham, and James voted Nc.
vote and the motion wasloste

Gov. Cris:Anger di

not

Gov. Crissinger told C..H. later tha Brad
ley :hould have been
held at $1800, but he declined to vote
.
Cunning
then said he would vote for $1500 4hic
h Eddy :aid was
the market value for a stenographar.
C.S.H. pointed cut that Bradley had been
doing stenographic mork in
the Board ftr 9 years, and, therefore,
should not now come
in at the initial rate of $1500.
C.r.'.11. then oternly asked E1dy if he had
recce:nen:lad to Wyatt
any one to fill Bradley's place.
Eddy flushed 911: stammered and finally
admitted that he had one
stenographer, a good man, for vinom
he had. no use, to ‘Iihian he
was paying $1500, and that ha had recommen
dd him to Wyatt
for appointment in place of Bradley. C.C.
H. is satisfied
that this is the "Ni,j,er in the Nood
•

•

will try to find whether ally node this
recolasendation for
the good of the service, or ;thether ha ha::
some other reason
in view.
Dec. 21, 1923. p. 194, 195
Branch banks. (See also, Examinations
)
Board voted to grant application of
LoE Angeles Savings and Trust
CoInany for a branch at Pasadena, Cali
f, an ground that it
was withn the Metropolitan area
at Los Angeles. C.F.H.
voted No, as Federal Reserve Agent
Perrin had reported no
necessity for further banking
then?, md because
the Board had refused the appl
iction uf Bank of Italy for
Yuba City. Jan. 2,1 923. 34

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Federal Reserve Bank of St. Louis

Branch banks (Cont.)
Applic ti on by Bank of Italy for approval of purcha.se by
Stockholders Auxiliary Corporation of the Trsir.24.; National
Bank of El Centro, California, ..aid agreement of purchase
having been made subject to the approval of the state
banking department and of the Federal Reserve Board.
Federal Reserve Agent Psrrin neither approved or disapproved.
Board declined to approve, as it would not amprove turning above
1e.
bank into a branch, if mch applicaticn were later
Board did.. not fz...vor the Bank of Italy oLng 7 Cr 800 miles down
into tne Imperial Valley, into territory naturally tributary
to Los Ingeles.bank.s, bne of vlich already ha'_ a branch taere,
a -. it would certainly Leai to retaliation on the part of the
Los Angelee banks.
r'.S.H. voted not to ao)rove, for reason that Federal Re,erve Agent
Perrin did not racoamiend it, and because it would probably
enhance the lifficulty of er3minat ion, a quelticn still
pend.ing.
C.E.H. doubted paver cif Board, under its pow-_.r to impose ccnditions
upon entrance, to r3fuee to allow San Francisco banks to invade
territory tributary to Los Angeles, and recerved rIFht to vote
on this question Nhen it C al. 3 ui.; specifically.
March 6, 1923.. 57, 58.
McAdoo wires Board that he vill agree that if 3oar.i will approve
the purchase of the El Centro bank, it will not thereby be
committed tc approving it later as a branch.
April 10, 1923. p. 83
so moved.
Defeated:
Aye: Z.S.F. & Platt
No: Criseinger & Mqler
Decided finally merely to tell .;cAdoo that Board's _teals/on
‘vas unchm,-ed. kTil 10, 1923. 83
Dr. Miller claimed that this refusal of the Board to reconsider
decided the que ;tion as to policy, spheres of influence, etc.
C.5.H. rand ?lilt denied thir..

C.Fz.H. moved that the Board in pasoing upon branches would conicier: -

Fr -

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Federal Reserve Bank of St. Louis

-33-

Branch banks (Cont.)
A. The ri?ed of the territory for bankinf facilities
bra.nch le novo); or for increased. bcnk.ing
(if
facilitie.. (if a bank is Aready then); or whether
for public interst (if
existing b,-Ink
being
1 ur.:110...ed).
B. :las effect of prorcaed br,..nch or parent bank's condition.
C.C.H. moved also declaration of pclicy hat
Board will not lay
down areas or zones, but will ac.;ept fin:lint, of state super
in
tandent as to public neces.ity and advantace.
April 10, 192L'. 83, 84.
C.S.E. asked. that above mOtion be considered as unfinished busin
ess,
to be voted on where ttaera was more nearly a full Board
.
Agreed to. 84
•

•

Mr. McAdoo appeared before the :1oard, from 10:30 to 1:30.
May 18, 1923. 119
Cccaplained V Board's decision as to Sacramento -,nd.
Yuba City.
.Board had. declined sacramento on ground that it was
beyond he
getropolitan area ar San Francisco, (yet the Board
had. granted
an applic;ation for Pasadena to a Lee Anjcles bank)
.
had declined Yuba City cn the grounds:1. Parr in's Lsaporoval
2. Crissinger's statement that the purpo
se was to crush
out an existing national bank which refused
to sell out.
119
McAdoc argued tha7; Board. was formed by the
certificate of public
advantage of state superintendent; that the Board
could only
-on:lider whether the br,Inch would impair the
ccnditicn of the
parent bank; that the Board had no power to
divide the tate
into zones; that the Board had liscrilainated
against the Lank of
Italy by E. ivine a0 many local agencies to Los
Angeles banks;
that the., e agerrie.. were, in affect, branc
hes. 120
lvicAdoc coplains to
Bank of Italy.

. . .

lo•

cc...z..os Club, of discrimination agairst

C.S.H. assured him no member,-; intended to
di ocriminate.
McAdcc :Aid. it

. ..

120

was

disc•.rim'.natia2. in la.v, even if not in inten
t.

Mc..4dcc referred to . Cris singer s di.:o
riminticn against state banks.

•

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Federal Reserve Bank of St. Louis

-34-

Branch banks (Cont.)
C.0,.H. pointed out that Crissinger, 4s
represented national banks, but a
Re::erve Board he repro. anted both
and that he hoped and belie Val he
both.
120, 121

CoLptroller of the Currency,
s Governor of the Federal
nation&1 an:
- state banks,
would try fatly to represent

toll McAd.00 at the hearing that he -as in ...ccord gen2ra1ly
with his construction of the law, except that he believed that
if in any case it were prafen that a state bank wished to
establish a branch merely to destroy an existing unit bank
and that there as not enougn business for two banks, the Board
could. lawfully deny the applic .ticn. 121
Mr. McAdoo pointed out that whenever a nt1or1 bank has a
monopoly it puts a very high price on its stock and often refuses
to sell at any price to perpetuate e monopoly,
x..e cia.tneC the
Boar! had no power to prevent fair coL4cetiticn by refusal c,o
grant a branch.
This S33::15 SC1211i to C.S.E., assuming that there is businesc encui:h
for both banks. 121
. McAdoo and Elliott came before Bcard to obtain authority for Bank
of ItalY on its subsidiary corporation to purchase a bank at
Ontario, ALich was in a precarious condition.
May 22, 1923. 125
Perrin and baa* sul..erintendent reported favorably. 125, 126
Mills: moved tc grant apill.:ation but with notice that it could
not be admitted as a branch. 126
C..H. mcved to anew: so as to permit a braich but -kith st.ltemant
that this was an emerency not tc stand as a precedent for
future act ion.
Both motions were defeated..
C.s.H. then again offered a .aotion like the above.
Defeated.
Vote : Aye, C.F.H., Platt, James
No • GV7. Crissinger, Miller, Dawes
126
Those voting No beli.eved the location was beyond the ;roper sphere
of the Balk of Italy.
C.S.H. begged Board not to base a zoning, policy on such a case a.;
this, but to
ant it as an mlergency.

r're

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Federal Reserve Bank of St. Louis

-35-

Branch banks (Cont.)
C.?.H. said. he could not ILVV3 to recon.lar an hl ha_ vote
d in
favor of the apl,licaticn.
Dawes - id C.Z.H. haa convinced him ond woved tc recon-il
er.
Voted to reconsl ter.
Voted, finally, to grant t..e applic.a.tion an conditio
n tat the 3ank
of Italy ,_4nd the State Superintan:ent areed that
this should
not interfere with any future policy the Board
...icht
C.: 1. advibed treating the 4ppl1cItion as one
for
Miler objected, 127

"xic..nch, tut

Th3 members all cl?reed., howwer, that if
an ap-4ication for
were filed they would ,r it it on abov cond
e
ition. 127

branch

Perrin wired the Bank of Italy h.J1 for.a11y
ap-1.- 1ieJ_ for a I:r,.noh, and
Board vot3d to grunt it on above conditio
n.
May 24, 1923. 127
36a....d. also voted to ask Perrin to revi
ew his unfavorable find:ng as to
the Yuba branch. May 24, 1923. 127
2cAdoo azi-s Board for its reasons for
rejecting Sacra....ento and Yuba
City applications of Dank of Italy.
June 1, 1923. 143
C.S.H. reported a dr It of reply to
McAdoo.
The Boi.:rd had sked Perrin tc revi
ew Yuba City but C70.H.L; latter
wa Ln re-ponse to MtAdoolo r -vest
for reasons for the
original rejection.
C.S.H. in the letter said:1.

:acramento
The State Superintendent gave his
certificate before_
the new policy he adopted an "lank
s ia novo. 114
Miler insisted on stating that the Boar
d ha:i no
raformation that the Superintendent
gave the certifica e
after his new policy 'has adopted.
C..H. objected, :aying the Bank
of Italy ml ht get a
new certificate, L:nd ouch a stat
ement would out the
Board in the apparent poLition
of relying upon the
presence or absence of a certific
ae from tho state
L-a-serintendent; that he Ani. Plat
t would not object
to thie, '.-mt he t.lought the othe
r members would object
144

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Federal Reserve Bank of St. Louis

-36-

Branch banki: (2!ont.)
C. .H. and Platt said ai a :latter of law, the Boar
d was bound. to
accept such a certificate, except in n extr
ema case, then it
was proved clearly erroneous. 144
Johnson, California Ctate Bank superintendent ha:
,, conference with
Board. Jim? 4, 1923. 145
Present:

Gov. Crissinger, Platt, C.S.H.

Johnson add he ha.:. brought abott. a change of
policy as to branches;
that previous Superintendents.ha been very
aa4 in granting
ermits; th— his pre“ent policy, - reached
aCter an .1greement
Ath the various banktng interests, - was
to permit brunches
in the location of the p-rent bank when necer
,sary, but not tc
permit te novo branches out-4de except in
.pecial cases. 145
Johnson skid he Lave a certificate to Bank
of Italy for Eacr_Llento
before his Change of 2olicy, Incl if one
were asked for now he
wculd decline to .1ve.it. 145
This justifies Board in refu,ini- the Sacr
amento appliction.
and Platt voted for it because of the cert
ificate ;-iven by
the state Su,erintendent, if they had know
n his present
attitude they would have voted against
the appliction.
145, 146
Johnson .aid he would go over the Yuba City
application
146

ain.

Wyatt files
mamoranlum stating that Elliott desires
to file a
brief with the Attorney Gener-1 as to
the construction of
Section 9, Federal Reserve Act.
Miller said it was the intention of the 7.1oar
d not to :-.prove this.
June 11, 1923. 146
C.".H. uovel to inform At#,orney General
cf Elliott's del,ire,
neither epprovini.: nor opposing it.
On vote, all favored this exctnt :1ill
er who said no ore should be
permitted to file a brief with the Atto
rney General.
C.S.H. asked if he feared Elliott woul
d convince the Attorney Generll
that the views of the r:lajority were
in error. 149
Miller then intimated that some memb
er had improperly told Elliott
that the 'Board mas to eRk an opin
ion 'from he 'Ittorney Gen)ral.
149

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Federal Reserve Bank of St. Louis

-37-

Branch banks (Cont.)
C.S.H. said this fast waa stated. to Elliott at the hearing, and
that Elliott than asked for consent to file a brief; that
Dr. 7.il1er even sug -:ested. to 'icAdoo to 'ring a friendly suit.
149
Elliott confirms this to C.S.H. And 2-aye also that ;Icy. Crissinrr,er
told. him. 14?
As a fact, the Board agreed to ask for an opinion prior to "lay 22,
but Hatton later told C.C.H. he could. find no reference to
it in the minute 3.
C.c.H. stated this to Board and Gov. "_`,rissinger c:nd Platt
remerEbered that the Board had. so voted. ln !lay 29, the Board
again voted to ask an opinion. 150
Dr. :,Iiller nioves to reconsider the Yuba City a-onlicat Lon.
June 12,1923. 150
lotion
based on second report fran Perrin reversing the
fir:t report 1-irld. ap,-roving the applick.-.tion.
Perrin aid. in this econd report that additional bankinr,- facilities
were needed at Yuba City; that the existing national bank there
aould not be injured; that, on the contrary, its President
favored. gr,..ntin the applic
on, on the ,Tound that sane new
bank must be established there to take care of the growing
buziness of Yuba City And. Sutter County. 1A)
C.S.H. said. he originally voted. ao,ainst the
p1IctIcn beceuse
Gov. Crissinger :aid he had recoived
telegram satisfying
him that the Bank of Italy .ci:zht to cruth the naticnal bank,
not being able to buy it.
also said that now the natirnal bank favoredthe
and the State superintendent had iv3n
certif icate of
approval. 151
Gov. Cri singer doubted this but it was pointed out that the :
.4
- :,ate
:luxe rintendent sal 1 he would not give a c3rtifialte,
his new policy, to Sacramento, but that he did approve Yuba
City. 151
he felt boun: to accept the certif ic ate of Johnson.
Dr. Tiller agreed with C.S.H.
On vote, the motion was loat.
Aye - C.S.H., Platt and !1i11er
No - Gov. C. Jame.; and Dawes.

151

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Federal Reserve Bank of St. Louis

BrE:nch balks (Cont.)
Dr. Millar urges reconsideration of Yuba City applicl_tion.
June 14, 1923. 153
Dr.

said our decision restadon Perrin's first report; that
we asked him to reconsider, and that he now frivored it,
as did the national bank.

',Tiller -aid. not to reconAder would put cur Board in a ridiculous
position and lay us open to a charge of di scrimination
ai-ainst the Bank of Italy. 153
Gov. C. aid he did not believe there %as need of additional
bankini facilities in Yuba City.
Dr. Miller said Perrin's second report settled. this.
pointed out that Gov. C. di not accept Perrin's second.
report, and clearly ne was not bound to do so as matter of
law, 1though C.S.H. differed from him in the aiatter of
fact.
The matter Au& left for the new committea on exam'.n-ticns to
con.A.Ler. 134
Elliott again asks for a copy of Perrin'
econd report on Yuba City.
July 31, 1923. 159
The Board had voted to decline this request and. today no one would
move tc reccnnider, so the refusal remained in force. 15"
Board. tike. -up applications: (a) Pacific C.N. 3avings and. Prunt Co. for branch at
9orterv1.11e, 236 mtles from Los Angeles, but
south of Fresno, the l
- ivid ng fraiiJit charge line.
Reasonably tributary to Los An7e1es.
(b) Ban.k of Italy.
Branch at To Beach, 25 miles :outh of Lo: Angeles.
This squarely involves sphere of influanca. 159
Perrinreported favorably on both.
Gov. C. and :liller opl- osad both.
C.1:.H. and Platt favored both, becalze of Perrin' i3
retort.
July 31, 3.532.;. 159

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Federal Reserve Bank of St. Louis

-.39-

Branch bznkL: (Cont.)
C.C.H. moves to take u.r., his resolution of Arril 10, 1923, to
effect that Board could not deli ..it zone:; but is bound by
16C
fincting of State Bank Ccraiissioner.
Millar bitterly objected ,And move/ r-ference to the committee,
which was finally voted. 160
Miller moved that, in view of the
application by t...o of the
renrred to that cazuritte.J
of rea,ons \•thich the Board
applic at ion:-.

strong opposition to these
examination committee, the matter he
to re:ort bacl- to 'Board a :statement
co 11 -3.Nrie if it finally refused the

This -ias passed, C.'.11. -Toting No. 150
'Idcamination coluoittee retorted against both of above applications in
the form of a resolution, v.hich contined a:, a "whereas" a
sta - enent that state banks .- vith numerous br4nches co711d not
be sa.tisfactorily examined either by the state or by the Federal
Re:.•,erve authorities; that the admitzion of .4,:ate banks with
unlimited rir:ht to eF;tablish branche,' .sas incon.si,tent with the
spirit of Sec. 9, Federal 73,serve Act, -3tc.
3 ..esolution.
No z:eport wbv.; maJ et an '
..
•
Platt offered a minority report.

Boarci voted to decline both appliciation3.
Aye - Gov. C., Dawes, Curininghert, James, Miller
No ani
Dr. "iller, although voting
'n the rll:ti cn1

7e, - aid he voted apa.in - t the "Nherea-es"

Pr. "filler pre-ented a draft of letter to "c'errin annc,lncing7 the
decision.C.'-.H. objected. savinr- it did not rilve the real
grounds for :ejection.nd a)ved that a copy of the ram'lution
be sent to Perrin.
This motion cf C S.H. was carried.
AuFuet 2, 1923.

160, 161

This puts Loard or. record that right to 3Stablizh
ranches
is inconsistent *.ith the spirit of cection 9, Federal 'Reserve
Act, - an absurdity.
Platt and
aeX eve to insist on a statement by Board that the
above vote on the resolution -,vas
r.-,ajority vote, .11:1 that if
Board refused to do this, they -foul cane out in a public
statement to this effect. 1:,1

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Federal Reserve Bank of St. Louis

Branch banks (Cont.)
Platt says Perrin :protests against sendimg this resolution to
the baniz:e interetited, - as the latter of the Boa.rd 1.1rected
him to
A.u.i.iust 14, 1923. 162
71liott tells C.S.H. the 'axar:Itnation committee is to report a
reeolution cn branch lo..n s on Friday. T,v,.iiently Gov. C.
had told him this.
Oct. 31, 1923. 177, 178
Jamel confirm, this to C.c...11. on inoviry.
sees Cr'..,singT who .a.az,,rs he is not satisfied with the
resolution an:, it sill not 'oe ready by Friday, and. says
C.F:..174. can le..ve for 7.:attalnisett T1urA.a.7 night.
C..H. tells this to .Tamei-. Aho, rather ungraciously agrees to
let it _c over until next weak, :zri es.id
be pre 'ant, tc ±ih C. .H.
178
The examination committee reorts a resolution.
.
it was ra,,,-,ed by Board.
7r..v. 7, 1923. 179

After long

Vote - Aye- Gov. C., Dane amninftharr., Jamen
.7., Platt, !liner
Coy. C. said he did not ,47ree with the resolrtim; that he
believed it went 1:eyerri t:he
sf
'card: but that in
71_3W cf
e ifficu1t7 In exar..Ininr• state bank* with
rinmercur,'; branches, and the danger of extinction of naticnal .
banks Urae3s 00=083 ., :hi...nged the law, - he ,±culd therefore
sir) vote for it)
Sec. Mellon ;vs.- asked to atter.d ar.d. vote but sent .;rd. that :le
could not core,
asked the 12.e:X.Ct tO ie on ..vithout
F..11. regrets thls -oelieving he could 1- ,terstade
that the noard xas i;rans,len-lIng its lawful poslr7.
178, 17e
refarred to the argument
filibuatering.

JEVer

az,-...inst the resolution as

anx.lered James angrily.
reserved. right . tc incorporate a protest in the record..

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Federal Reserve Bank of St. Louis

-41-

Branch bulks (Cont.)
The chief debate clntered on uoticn of
C.F.E. to substitute
Platt's LUncrity rercrt, !.hich Nes lost
on same vote as
:5,b eve.
This rlaolution 11c.nfined brnche
and "c ontiguoraa territory."

c the location rf parent bank

Th , 1efinition of "contizuous territor
y" was Al.ended. in january,
1S24, as to :lin -Franci.,co ani Los Ange
les by a•l'iinF a large
zone extending at lea_.t 100 rai1ec4=, in
sane instance: from these
The resolution provided that it shou
ld not beco:ue effective until
February 1, 1924, although C.S.11. poin
ted cut that thereby a
zone was created, - betwen Nov. 7,
192.3,
Feb. 1, 1924, •,vhich 7as sure to prove emba
rrassing. 17-2
Board granted
lization of Pacific 5outhvvett Trus
t and Savings
Bank for 2ortervi11e.
To C.:
Dave.Janes voted for this, although
the Board, soue tius ‘4,o, had reje
cted it.
Nov. 22, 1923. 172, 180
JaLea ex:plainId his vote by sayi
ng that the
rebolution
did not t:11.e3ffct 1.-„ntil Feb. 1,
1924, and until then, each
application v.hould be d3cided on its
merit:
C.0.1-1. does not 3 hos Ja...o. nd
Dawa: clad 7cte for this,
they vare opposed to all brunche:
1 outai‘le of location .of
iiarent bank.
C.:-;.II. pointed out that he had .. varn
ed the Board that puttinF: the
effer:tive date of the rlsolution
aheal. to
1, 1g24, would
c:J.I.:13,
C.'3.E. said, of ccur.;3, he .vou
ld -..ote to ap.:rove this apclications
as ha thought it was
clear .1...se cf public 3.1 vant?..r
e.
Nov. 22, 1923. 180
ConiLdttee recommerrls increase of
Wyattts Lialary to $10,000,
without consult ing
th he Law Omni tteeI
Dec. 11, 1923. 186
C.S.II. fears t.lis is In the natu
re of a reward for Wyatt for
helping this ;..ajority frame the
resolution of Nov. 7, 1923,
nrid for his on.cn, strange
and t;rotes4ue, as to the
power of the Board to impose
condition. ,vhile fact that .1-da•'.1
!.
ices not agree ',vith Wyatt's
cAni.cns
of

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Federal Reserve Bank of St. Louis

-42-

Branch banks (Cont.)
C. .H. feels 'Pratt -vent to the limit and beyond the limit
in egging on the me.jority to overthrow the policy of the
Board in force 3inc m 1917.
C.F.H. believes that one of his opinion:,, - to the effect
that the power to establish nlimited "ranches is inconsistent
with Section 9, Federal Reserve Act, md vith the whole Act,
Nhich, as he
was founded on indspendent unit banks, is simoly ridiculous, as C.S.H. proved in his testimony
before the Joint Committee of Con:ra:s.
Board ta4e,
4,;:1ioations of Bank of Italy for branches at
Watson City, Long Beach, and Santa
which some time ago
were rejected.
rec. 17, 1923. 190
Jams said the Bank of Italy had broken its agreement with the
Feders1 Reserve Board not to buy over 20'09 of the stock in
any new bank without the consent of the Board; that McAdoo
had advi sed it that it cculi buy any ..-nount t. roup-311 the
todahclders auxiliary co..11..ittee or ths Bancitaly Corporation,
as the latter had no connection with the Bank of Italy. 191
C.S.H. 3_11, Ahatev sr their technical relation, the:, had not Anted
in good faith in the matter; that ihat troubled him was whether
to use this as a reason for rejecting the applicatimi, as in
each case the state comnaissicner and the Feieral Reserve Agent
had certified as to public advant-ge. 191
Later it appeared that the purchases had been male expresly subject
to the approval of the Federal Reservs 3oari, and C.S.E. said
this put a different aspect on the attar, and, he was inclined
to feel, removed the charge of bad faith. 191
James said squrely he would vote for at lea3t some of thee
applications were it not for the above cited bad faith. 191
On vote, apclications failed by a tie: Vote: Aye - Gov. C., C.f%H., "Platt
No - J‘%„es, Cannimham, Dae
Dr. :iller refused to vote.
Dr. Miller then moved
to vote)

o recomider the vote -.1tho he had declined

Gov. C. ruled that he had this right.
C.F.H. objected but said he haI no objection to reopening the
matter to permit Jaller to vote.

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Federal Reserve Bank of St. Louis

nrbn.sh

banks (Cont.)
7.7eetin:, aajcurhed.
Dec. 17, 1923.
11, 192
Ltiller::loved to recon:tier.
and Santa Maria.

and approve Watson City, Long Beach,

On vote, Watson City :_Lnd Long Beach were approved.
The :,anta.:aria apfilicaticn was rejected,
Platt ,:.nd
voting aye, and Gov. C. and the others, No.
Dec. 18, 1923. 192
Br.sache , Federzal Reserve
Li*.tle Rock
Boar.? voted. aa:a.inst ecoroving letting of contracts for
branch bank "tmilding. ./farch 16, 1923. 63
• ti7e - C.(3.11. an. Platt
"To - Gcv. C., '!g.iller an

Campbell

believes ..!iller voted nr because he originally opposed
the branch bank in 1918.
he was
of • the neCe:', -iity for a :
1 ranch
bank there in 1918, and 1-;e1ieved
neces -,ity existed
today; that the . ecret servis.a rerort a tc vault
conlition showed
nece77ity. 63, 64.
In sending out i tis d.isa,:proval, Board suq3endec1 all br:...nch
building construction because of high prices, following
circular, of sec. Hoover.
:'arch 19, 1923. 64t
not vote against this general .-:l.spenF,ion but 7.tated
to Board that hebelleved the Little Rock
nct be held. up.
C.S.H. begged :card to interpose no objection to starting the
Little sock buIlding, but tc ask directors to consider
carefully ,vhether, in view of the hich cost of construction,
it wculd not be better to su.,,)
- end.
could not move to reconsider and nc one el!le

ould. G4

Cam:bell offered a resoluticn that builyinz, operations t
branches should be suspended because of the disparity
between Trice: cf farm product:. andprices of other --,roducts,
65

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Federal Reserve Bank of St. Louis

Branches, Federal Reserve (Cont.)
Little Rock (Ccr.t.)
object ,d to this and finolly withdrew his
resolution ,
.nd voted for the one dram by Miller. 65
C.S.H. warned. the Board till by di3ar..,2roving the Little Rock
buildinE, it a:isumed responsibility for -11 F. R.buildings
erected in th,3 past, for if th- Board ha pc,Ner to
disapprove now, vthich C. F..H. t. libte, it surely has always
had it. 65
James, returning from Little Rock, moved to approve construction
of the Little Rock brancia
as an emer7ency
exception to Board'. policy, at 3 cot not to exceed $400,000.
June 12, 1923. 151
Long diecussion
C.S.H. and .7:3411e: pointed out that since the Board policy was
announc ed, building operations in the H.F.
t er telly
decraai,ed and that this builling should be now
authorized. 132
Platt said. he would. approve this after 2 months.
Miller —id prices would then be higher than nos.
Platt moved to table.

Cirried.

Vote:

Aye - Gov. C., 7.1'..113r, Ounninhac and Platt
No - C. S.H., Dawe.-)
JArles
152
Salt LalIe City
LeA.7 gov 4.440then marAtar to authorize building at ;;;alt Lake City. Lost
Vote:
- Gov. C., Miller, "olatt, Cunninghan & Dawes
Tc - C.S.H. and James.
June 12, 1923. 152

14
'
L
r.

Dawes said. he voted rve bec..,cass the Little Pock motion had been
tabled. 152

. ..

Por tland.,Oregon
Board disapproved a,,
- plication of Forifire.1 Re..3erve Bank of San
Fralciscc to buy property for the 'Portland branch.
Dec. 2, 1922. 11
Board wired Perrin that 'le queAtion of consoliAation cf
the
North West branche,..
ba settled, and. that the
bank shalld report on this efore the present lease
expired, aril• that, if necesary, it shpuld ecure an
extens ion of the pre.,ent lease.
Dec. 2, 1922. 11

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Federal Reserve Bank of St. Louis

Branches, Federal Re:3rve (Cont.)
Portland, Oregon (Cent.)
7Iitchel1 moved thst it was the sense cf the Board that the 3
no thmest branches should be consolidated into one.
Gov. C. seconded this.

0. '.11.

sail we should wait fr the report of the Federal
Reserve nank of an Francisco, which Ne h9d. called for.

C. C. Nanted immediate action without w .iting for the report.
12
0
po'nted out that the northwest was vitally interested
in this qua:Aim; that while these branches were not elf
ugoorting at present, profit was not the test; that the
test was service; that •Alile he thou7ht, if there must be
consolitatLcn, that Portland was the beat location, yet
Gov. Criasing3r favored :',eattle, and that the difference
shamed the necessity of .avolding snap jule;ment.
C.S.H. moved as a substitute for !iltchellts
that the Board woul-d not permit land. ,o
Portland until the question of p oasible
settled, upon which the Federal Reserve
wr to report at ore.
This .Lstton of
accordingly.

moti on a resolution
be bought at
c onolidati on was
bank directors

.Jaa curried and a telegram .ant

C.S.H. stated, and it is so entered in the minutes, that in r.,o
voting he expressed no opinion on the merits, - whether or
not there should be eonsolilation and if so, when.
Dec. 2, 1922. 12
(Later the F.R. Bank -iirectors bent th Board a crarvay of the
whole ait uati on, but .:Ithout expressing any preference.
Fes next diary.) •
Brewer
Director of the Mint Cccbie and Gov. Crissinor want Brewer, a
National bank examiner appotnted Federal Reserve Area;
Dallas.
Jan. Z., 1, 1923. 41
:atchell says all the Texas Rerublican politicians aid Brewer; that
Brewer is hardly fitted forthe position. 41
C.F.H. remembers that 3mewer came oriinally from
Oho;
had 1=6 trouble and finally went to Texas, ani that he came
before the Federal Reserve Board on a matter of catje loans
and made a rather poor impression. 41

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Federal Reserve Bank of St. Louis

-46-

Bristol, Admiral
Admiral Niblack says Admiral Bristol is the senior diplomat
in Greece and Turkey und holds the Turkish loader :enal
in the hollow of his hand.
Nov. 10, 1922. 9
British Exchequer notes
Ccv. Harding says Bolling wrote him a curt note s4ying that
President Wilson refused to permit him to publish in his book
his letter to "on. Harding on the British Exohequer notes.
Sept. 22, 1923. 171
Brockhart, 2en.
Blocks Sen. Glass's sAech attaclzing John Skelton Willis.
Marca 6, 1923. 33

Mr.

Chappelle tells 0.?.H. that Cunningh4L was senatur 3rookhartis
right hand man.
May 8, 1923. 111

Bulldine contracts, Federal Reserve branches
Board voted to issufea statement suspendir4; further building
conatructicn at Little Rock and other Feder-.1 Reserve
branches, because of the high cost of buildingmAterials,
a majority of the Board believing that a slump waa bound 'Lc,
• c...ce perhaps in the near future.
The Board was influenced to do this because of a statement of
Mr. Hoover which they believed indicated that hoover folt
that prices of building and building materials were unduly
inflated.
C.:.H. did nct accept this conclusion but did nct vote ainst it
.as a general policy, but becluLe he N-faxited the Little Hock
branch built.
C.S.U. bogg.ed Board to advise Litqe Rock branch that while it would
interpose no Objection to their proceeding to erect the
building it asked them carefully to consider whether, in
view of the hlgh cot, it would not be well to suspend action
for the present.
C.S.H. could not move to reconciler a he had voted against the
main proposition, Ind no cne else .yould cc move so the
propcnition
Cam-I:bell said his reason for voting to suspend all building
operJtions was the disparity in prices of farm products and
other prices:
p. 64
Harch 19, 1923.
Bullen
Considered for Gov. of rederal Recerve Bank of Boston.
Dec. 7, 1922, 19
Cuban Acency.
100, 114, 116, 1b6

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Federal Reserve Bank of St. Louis

-47...

Bureau of Engraving Jnd Printing
At a dinner Liven by Senator Andreus Jones, the wife of a
Senator prer,ent told H.P.H. t .- 3t President Harding signed
the order dismissing the e:aployees late one niLht when
intoxicated LInd was greo.tly shocked the nextorning to
learn .,vhat he .he.:1 dom.
Pre.;id ant Hard.ing has recently revoked. the order nd. has
restored the Ta.ployees to their Civil :ervica status lout
he declines to put them back in their former positions?
against the
it is said. that one of them is to bring
President and. the lady said this suit would bring out
the ‘.1:-.)011,3 facts.
Feb. 23, 1923. p. 531 54
Durrage,
C.
ntertains the class of 1883 at his house in Beverly. A very
hot day. Chaxpa,gne flowed, freer than water. About
20 of the class -are so intoxicated that they slept
under the trees for hours. A disgraceful orgy.
June 19, 1923. 156

-C•
Cabinet
PreAdent Harding jays will consult with Cabinet as to Cuban
Agency. :,:ay 8, 1923. 110
Cable transfers, 131
See - Cuban Agency
Calder, Senator
Pre_Ident Harding tells Sen. Calder he Mill not sign Camnbellts
01:1241.63 ion for Federal Reserve Bo.i.rd until I•icITary is
confirmed as Comptroller. Feb.
1923. 45
Tells C.S.H. that Sen. Couzens talked. against time to defeat
:.ioNary's =ifirmat ion al Cali;troller and that Sen. King
said. he would use up ..A.ny time left for the 3,11118 purpose,
until adjz.u•nment. This forced the dropping of his name.
Also tells
that Sen. Pepper changed his mini. and voted
finally in commit tee to confirm Mc/Liry.
Mar. 4, 1923. 54, 55
See - :,Icl\Tary
Pepper
California bank 3;cm:in ati ons
Inadeauate
15
5ee - Branches
ExaLinat ions.

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Federal Reserve Bank of St. Louis

ecial ;laving s Account s
Cal ifornia
accounts of state bank::
Boar- votAd that the
reeerves as against demand deposits.

carry same

Board had a.lree,cy voted. this latlt October (1922) but Platt
reserved. right to move to reconsider. 17
The Board vote1 to reconsi ter but then reaffirmed original

vote.

C.S.H. and. Mitchell voted against this, i.e. in favor of lower
reserves. Dec. 6, 1922. 19
•
C. Z7,.H. feel: that this ruling 4yes equity to claim of state
Lumbar banks that 7ed.eral ileerve mithorities should assist.
in ex.:.=inat Ions of :,tate member bank..
Dec. 12, 1922. 22
tnt permitting a
At Governor: Conference, the Governors -voted
3?.) reserve against thee savings account.
Tn favor of
Calkins, Ncrris,

mar,ougal,

Yeung, Hard. el g.

Gov. Seay aweed in the Conference to vote for 3%; but finally
voted against it.
The qua. ti on put to the Governors: - assuming that the Board has
:.-)ower to permit 3%, ou=ht it to do it.
March 27, 1922. 76
Dr. Willis tells C.F.H.:
Savings en.:!ounts in Sec. 19 had reference only ts national
bankz originally; that tle national bank:: thought the
required reserves, - 18%, 131 and 10% were too high;
they tJd. Congress they hal large ormant ad -cunt s Ahich
re in essence savings zcounts; that finally Congess
gave them 6, .vhich later .ival lowered to 31.,; that finally
Congress provided for :leparate sztvirgs departments for
national banks, with crovi s ion for segregated
prior lien, etc., which passed the House, but as
striken out by the Janata; that he saw no reason why
there laould not 1,9 different reculatioz.is for state banks
than for national banks ; th•It in case of national ben.lr.s,
where checking is permitted, the same resrve should be
required as for demand deposits, a., 311 depo.rits,
whether s....vings or not, went into a common fund to be
loaned commercially; that in California tate
however, all .H.vings .Leposits. ere sagrega-.ted and limited
as to investment; that this was the essence of savings
acc,:unts;. that he saw no reason 1.ely the Board could not
per.Lit ..tate banks, if it thouht
adecriate, to
maintain
ch a reserve, Ahere the bank hi the right

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Federal Reserve Bank of St. Louis

-49-

California toeci%l saving- accounta (Ccnt.)
Dr. Willis tella C.S.H. (Cont.)
to require notice and presentation of the passport,
even the in practice P; -vaived this richt and permitted
the use of Ihedkl ta..Lled co as to be subject tc this
right. •
April 20, 1023. 93, 94, 95
Gov. Crissinger brings ur Ltion of ;..alifornia special svings
deposits.
17e pointed, cut that the matter ',vas settled on Oct. 1C, 1922, no
notice of which --as sent to Perrin, Federal Reserve Agent,
and.
ain cn Dec. 6, 192;2., of xhich Perrin ..vas nctified.
The bank., aaked. 3oard. to hold up its deci.ilon and
hearing.

ivi them a

At the .-4. .ez.tincr, of the Governors brief: were filed and ,rments
made,
C.F.I.% moved. to reconsider -ihich fAiled
and. „illler
Aye No - Gov. C. md. Platt

.4 ,:e vote:

Dr. nller :aid. he approved the decision of Dec. 6, 1922, _Lnd
voted to reconsider :rarely to jive Platt oportlzity to
offer a ii,otion as to he form of tactile to send. Perrin.
Gov. C. .s.nt. C. S.H. explened to Minns tht no reconsideration ‘.as
nece wry for this purpose, but ;31.1er wuli not chanr-3
vote.
Platt •.-.cved that -)errin be informed that time deposit i; were not
avings o.ccounts under Sec. 19, Fed.v.-.1 Ile:erve Act.
said this was in T...xopsr
Gov. ^. favored. warely 1-aying Joan', declined, to revnis,3
decision cff Dec. 5, 1922.
Platt's motion failed 3 to 1, 2.'.F1. voting ainst it on the
merit a.
C.S.H. felt Gov. Cs uction wa.s ci:...pler, Ind that the vote of
Dec. 6, 1922, _..ight be construed 3
exercise of jud,-;ment
and not a.-3 a ruling of law..
:lay 3, 1 922. 104, 105
:
.tate Superintendent ct Banl.k; in Californi .aya
above .- 1eci3iim
will cause preat hardahii:
certd.in banks. June 1, 1923.
143

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Federal Reserve Bank of St. Louis

-50-

Calkins, Gov.
Tells Dr. 111119r h cs pr-..ent at a directors' r.leetinc, of
Fedsral Res.rve Bank of Bo..; ton and there herd.r-ov. ".!orss'
rsLig.nation re 1 a part of the minutes. Board not told
of this until iuch later.
December 7, 1'.?27. 18
_t
Vote,s, iii Covernors' Conf 3r snc s in f.:vor of ' re. srva
California - pecial iving depol.ita. Mar. 37, 1.r;33. 75
Campbell, 7!lo
Nor,
'thk.!ted

,14.er....1 e sr 73 ncF,r6
irecer of the 77'
Janu,'.ry 12, 1923. 37

Precident Harding tent L'en. Calder he ..;i11 not .
teen confir:ad a
zoai.iczion until .:27,-:.ry
of the Currency.
Feb. 9, ]923. 45

Cezr-beill
Cork:troller

Some cne placed Campbell's rw.xe over rocai in ?edema ie.3rv3 7oard
before he wa.i. c.ppC.nted. 4t:

•

he has a very poor 0:Anion of Ca-i
Couzena tells
that
that he had been in active f. olitics for 25 ysur
President Hardin was -vi thholdin K. hie :{;:r c tuont as a means
of getting :.1:..Nary confirmed -.., Co 7tralsr.
Feb. 10, 1923. 46
Glass says
CaLupbell is a better mzsn than Crissinger.
Mar. 6, 1923. U9

Votez a.gainat approval of bililding contract of Fedval .21., -rye
Bank Cii.lahciat br ?rich.
March 16, 1923. 53
Offers a resolution to effect that the rsason 1..ctuating th 7card
in suspending bul.l.ding oper?ticns t Federol flessrve brar.che:;
nd cthsr
is the Ltrtty b t,vssn priceB of farm r4uct
pr cducte!
Finally withdrew this.
C.F.H. fs rs Car.fpbell may cause trouble in the De -xci in the future.
13, 13. 54, 65
Ceznpbell d.renz deld

ht1e7.)1a:71.nE- golf at coltlabia Country Club.
March 22, 1913. 55

Campbell, ConFre.-sreen
tc sell his house to Pr"::1:1.ent Wileon.

Zept. 12, 1923.

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Federal Reserve Bank of St. Louis

-.51-

Carlisle, John G.
2es :Joss, Asst. k,sec. of l'reasury
Carnegie ?ace Foundation
C.S.H. elected a trustee.

April. 20, 1923.

Case, Deputy Governor, Fe-d?ril Reserve Bank of New York
Attends hearinE-, of Fed nial e.erve Board. cn proposed Cuban Agency.
April 30, 1923. 09
agency in co:npetiticn with :-e:.iber banks; creat risl. in
buying bills becluie of exch-Anwe fluctuations; the Fed.eral
Resaive Bank of Ne,: York has always utilized. Ferieral Reerve
Bark of Atlanta in ship;Ing Fed.eral Reserve notes to Cuba;
finally admits that the National City Bank of New York and
the First 1;az,icn1 of Boston want this agency 1tha distinct
banifit to themselves as it would
them spot cash for cable
transfers and ac Aoptances; it ;:as also pointed cut to hi», that
there could. be no exchange fluctuations a all bil1 would be
payable in lollar.). 101, 102

01.-}00P,es

Miller calls up Case and tells him Board. will retrict acceptances
to eligible rirae banker:: ac::eptarices secured by slat-% :mg
documents, and Casa said. that, .'ithout waivinr his objections
'to the a ency, he thought this limitation vlry t,atisfactory,
but .vi shad tc consult Warburg. „jay 1, 123. 102, 103
Revisal draft made putting in cacle transfers az-) an Lirlied. power
form right to buy and. el1 bankers aceptances; Miller read
this to Case weir the telhone, who Fail the form
:-.K; that the agency could.
satisfactory, but that
buy :-ecursi bills not ylt accepted, as otherwise it would Elva
a preference to banks havina bran.:.1109, in Cuba, •vhich his bank
did not have.
Case asked. postponement until the New York banks could be heard. by
the Board..
Board. voted. to ,Tive a hearirir, at which Case zmnd the New Yon In.rilierr,
should be Inard.
:4Say 2, 1923. 10-.1
Haing on Cuban .ft,-ency at which Case was present.
Case said Federal 'Reserve Bank of New York did nct want a Cuban Ageir y.
Peads letter frail Warburg denying vJaker of Board to create
Ajency. •.•Tay 7, 1923. 107

uch

-.;arhaps
st-tanant howing that on a cert4n late most of the
acceptances held .by Boston and NOW York on xport. from Cuba
• were bankers acceptance . June 27, 1923. 15e

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Federal Reserve Bank of St. Louis

-52-

Central bank
Goy. Crissinger favors turning Federal Reserve System into a
central bank. J. a, 1923. 44
Chicago, Federal Reserve Bank of
See - Discount rates
Federal Reserve Bank of Chicago
Chancellor of Exchequer
See - Baldwin
Chappell'
Of Kansas, unsuccessful applicant for Federal Reserve Board
tells C.S.H. that at a meetinf of the Iowa Farm Bureau
Federation, Cunningham, just awointed on Federal Reserve
Board, introducled and put through a resolution condemning
the subsidy bill, president Hardingis pet hobby.
Said also that Cunningham is Sen. Broolchartes right hand man.
May 8, 1923. 111
Chauffeur
History of appointment by Dr. Miller of his crippled chauffeur,
Smithson, on the Federal Reserve rolls.
196, 197.
(See Vol. 4, Diary)
Christian, Sec.
Tells Prosident Herding he has right to appoint all Federal
Reserve officials.
Mitchell says ilhristian is a ustinker."
April 28, 1923. 97
Clarke, Judge John H.
Made address on L. of N. at Washington.
Guest of C.S.H. at Cosmos Club.
May 23, 1923. 129
Class C Directors
Platt, Mitchell, and Crissinger eivointed as a committee to
report a list of Class C directors for next year.
Nov. 8, 1922. 9
See - Harding, President
Mitchell
Collier
Brewer
Class of 1883
AL. C. Burrage entertains Class of 1883 at Beverly,Mass.
Champagne flowed like water. Many men drunk. An
June 19, 1923. 156

orgy1

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Federal Reserve Bank of St. Louis

-53-

Cleir ing sys ten.
Gov. Crissinger says abandonnent of clearing system would be
the salvation of the Federal Reserve System&
April 4, 1923. 80
Dr. Willis expresses views an.
April 20, 1923. 93
See - Willis
Board votes to approve C.S.H. writing to Sen. Glass as to
effect of Supreme Court decision on.
Miller and Gov. Crissinger asked C.S.H. to add in letter
that they regarded it as a body blow to the Clearing
system and C.S.H. said he would do so but yould state
that Platt and. he did not agree with this.
Arne 12, 1923. 152
Gov. Crissinger was evidently delighted with the decision,
saying it had. broken up the thole clearing system,
that the court had decided it vas illegal, etc.
June 12, 1923. 153
Sent Glass confers as to Sureme Court decision, with C.S.H.
Gov. Crissinger and Platt came in.
Gov. Crissinger said court had decided that checks payable
"in exchange" at option of drawee were not checks payable
von presentation unier the Federal Reserve Act ard that,
therefore, Federal Reserve banks had no right to take than
for collection; that Board should direct Federal Reserve
banks not to take such checks but should. advise the
Federal Reserve banks that, apart from an adverse state
statute, they could collect over the painter undar the
Atlanta decision, and that tha Federal Reserve banks should
be advited to accept exchange checks at par if offered.
June 16, 1923. 154, 155
Gov. Crissinger said that if the Tedaral Reserve banks excluded all
checks drawn in states like North Carolina, their banks
would soon realise it was for their interest to remain on
the par list.
Sen. Glass and all of us agreed that in circularising the Federal
Reserve banks we should say we were booth to exclude such
checks because of the Supreme Court decision.
We were all pleased that Gov. •Crissinger took this view for up
till now he has been absolutely opposed, apparently, to
the par clearing system.
Sen. Glass said that to clinch him he waild writs him praising

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Federal Reserve Bank of St. Louis

-54-

Clearing astan (Cont.)
his views and. quoting what he had said..
June 16, 1923. 154, 155
Clemenceau
Tells

MTS. Wilson he intaxls to make a careful study of the life
of Washingtoni that he bad never ocnsidered him a very
great men, but he wanted to look into his life carefully.
Dec. 27, 1922. 31, 32

Cleveland., Ohio
C.S.H. goes to, to attend funeral of Frederic Goff, President of
Central Trust Coq:any ani formerly of Capital Issue Ca:mitts*.
C.S.H. examines Federal Reserve Bank building.
Mr. Shriver, of B. & Ohio R.R. takes C.S.H. back to Washington,
C.S.H., of course, paying his R.R. fare.
March 16, 1923. 63

104441601141w

Cleveland.,President
Mr. Bolling tells C.S.H. that President Wilson wrote some one
.he did not care to read Prof. McElroy's life of Cleveland,
as frac' at he knew of McElroy he felt certain it would not
be well done.
Dec. 4, 1923. 184
Cadman, R.S.
C.S.H. visits, at Manchester by the Sea fa' class dinner.
June 1 9, 1M 3. 156
Collier
Republican politicians, having failed on Brewer, turned to Collie;
Tice President of a Texas Bank, for Federal Reserve Agent at
Dellss.
Mcliary sas strortgly for him.
Gov. Crissinger showed Mitchell a letter from President Harding
stating that the Republican boss, Creager, bad indorsed
Collier and that his recommendation should. be followed..
C.S.H. exanined the letters before the Board favoring Collier;
they came from all parts of Texas and were all addressed to
the Ccmptroller of the Currency and. not to the Federal Reserve
Board..

laik*
"
TIMP

There were some letters of protest stating that Creager had. publicly
stated that Collier would shortly be appointed. as a "Christmas
gift."

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Federal Reserve Bank of St. Louis

Collier (Cont.)
Mitchell tells Board that Collier's bank was over officered,
and intimated that his bank wanted to get rid of Collier by
dumptng him on the Federal Reserve Board.
Collier's tmdorsements were evidently the result of a careful
canvas, and C.S.H. suspects was engineered by Gov Criestnger.
Some banks sent in indorseaents of Collier, subject to previous
indorsements of Talley.
C.S.E. fears another political fight like that of Comstock.
President Earding's letter to Gov. Crisstnger as to Collier ASS
not put in Board's files (as was dons in Comstock case) d41.
C.S.H. never knew of it until Mitchell told him.
Jan. 24, 1923. 41, 42, 43
Board voted that committee report as between Collier and Talley
on Friday.
Feb. 21, 1923. 49
Judge Ball, of Federal Advisory Council, at its meeting in
Washington, said that Collier was a good fellow; that he
wrote recommending Collier because he had beentold that
Talley, wham be first recommended, had no Chance; that Talley
was undoubtedly the best man and that his appointment would
eltmlnate politics, which were behind Collor; that Talley had
been told that Creager had said he could secure it if he
would give the credit for it to the Republican boss, Creager,
but that Talley had declined.
C.S.H. fears Gov. Crissinger will fight in the Board for Collier
and that the Board has been plunged into politics.
Judge Ball said Talley was a Republican.
Feb. 21, 1923.

49, 50

Board takes up matter again.
Gar. CEissinger says both he and Monty (if confirmed)
will vote for
Collier.
Later ha intimated he did not know what McBary would
do.
Evidently be believed that MONAry will support the admini
stration
and will vote for Collier as a purely politi
cal appointee.
We all felt Gov. C. would protest against any
action before McNary
• was sworn in, but he did not.

..11511-

Collier (Cont.)
Miller raised all sorts of objecticns to Talley with the evident
purpose of currying favor with Gov. Crissingsr. Later,
Miller said that as between Collier and Talley, he would have
to vote for Talley.
TO. 23, 1923. 50, 51
Miller reported that Collier was an estimable gentleman, but in
his banking career he was not conspicuous for ability; that
after careful consideration he was satisfied that Collier was
not fit for the job, but that Talley was first class, barring
some temperamental peculiarities, which he thought Talley could
overcome.
e

•

The discussion brought out again that Collier was purely a political
naninee favcred by boss Creagar.
On final vote all, incluling Miller, voted for Talley, except Gov.
C.
who voted for Collier.

tgir

Gov. C. evidently remembered the Ccmstock fight, and voted but did. nct
fight for Collier, altho as Mitchell said, President Harding had
oraered Gov. C. to secure Collier's appointment at the request
of Boss Creager. A second victory for the Board over politics!
"ob. 24, 1923. 51, 52, 53.
Mitchell •saqs he will shortly resign from the Board. While he put
it ostensibly on ground of his private business maters, he
spoke freely of his disgust at the political interference of
the administration in the Canstock and Collier matter.
Mar. 13, 1923. 61
•
-4temtivilt

*Ow

ormilir*

*40

Committee on salaries
See - Salary Comnittee
Comnittees of Federal Reserve Board
See - Class C Directors
Comptroller of the Currency
See - Cris singer
Dawes
Comstock
Mitchell tells Sen. Neurone that the reason President
Raiding did
not reeppotnt Gov. Harding because of the Comstock
row.
Jan. 2, 1923. 35

t
,p,*.fotle*-..-*Apro V** Etti**0 toki•

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Federal Reserve Bank of St. Louis

The Comstock aid Collier ram was real reason why Mitchell
resigned.
Mar.13, 1923. 61

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Federal Reserve Bank of St. Louis

Conferences.
Federal Reserve Board, Governors, ani Peden. Reserve Agents.
Credit control.
Definition of "borrower" Sec. 13, Federal Reserve Act.
Federal Reserve bankinvestment in Government securities and.
acceptances.
Federal Reserve banks, expenses and di vidends.
Jay resolution.

Credit inflation
Oct. 13, 1922.

1,2,3,4,5,6,7,8,

Federal Reserve Board and. Governors
Hoover, Address
Balance of trade
Direct credit control.
March 26, 1923.

Special savings deposits.
Central committee on open market purcha:2es. 76
Expenses and dividends. 77
Gold holdings
Separate reserves. 78, 79
Federal Advisory Council
Cuban Agency.
May 21, 1923.c 121
See - Cuban Agency
See - Cuban Agency
Coolidge, President
President Wilson tells C.S.H. he regrets his telegram to
Coolidge congratulating him upon hia management of Boston
Police Strike.
Dec. 4, 1923. 184
Coolidge, Mrs. President
Goes to Railroai station to see Mrs. Harding off. Sept. 4, 1923.
166
Cost
See- Examinations
Cost of transfer of fumis. 80

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Federal Reserve Bank of St. Louis

Cousens, Sen.
As one of Subcommittee tells McNary he can not be confirmed.
Feb. 9, 1923. 45
Says he went to President Harding with Senators Pepper and
Hitchcock and. told him McNary could. not be confirmed as
Comptroller; that Harding said he would. insist on a vote,
but that there was no hurry about it; that evidently Harding
was thinking of gi/ging McNary a recess appointment.
Said Campbell had been in active politics for 35 years; had a poor
opinion of him; thought Harding was holding back his
appointment as a means of forcing McNary's confirmation.
Feb. 9, 1923. 45, 46
Talks against time to prevent confirmation of McNary.
Mar. 3, 1923. 54, 55
Cox, Gov., Ohio
Mrs. Wilson tells C.S.H. that Gov. cox was very courageous in
fighting for the League of Nations; that he maintained. this
course since his interview with President Wilson during the
1920 campaign. She spoke very kindly of him.
Nov.21 1923. 181
Crane, Charles H.
C.S.H. calls on, at Woods Hole with Mrs. Wilson.
Aug. 28, 1923. 163
Creager
Republican boss of Texas tries to force Collier on F.R. Board.
Man. 1923. 40 49, 52
See - Collier
Talley
Mitchell
Cri ssinger, Governor
Predicts within a short time there will be ass central bank
in Washington with the present Federal Reserve banks as
branches. Favors this.
Nov. 29, 1922.
Seconds Mitchell's motion that the three northwest branches of
the Federal Reserve Bank of San Francisco be consolidated
into one, and wanted immediate action without awaiting a
report on this question which we have asked the Federal
Reserve Bank to make.
Dec. 2, 1922. 12
Brings two national bank examiners to tal Board proper method
of examining banks with branches. Hereon present.

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Federal Reserve Bank of St. Louis

Cri ssinger, Governor.
They reported, 4erson agreeing, that there should be at least
one competent examiner and an average of two ccmpetent assistants
at each branch.
Complains that California has cnly 8 examiners and that it could.
not examine e.g. the Balk of Italy, without bestrewing Federal
Reserve examiners, to which he is bitterly opposed.
Said. he would not admit any bank to the national system with as
many branches as the Bark of Italy, were it to ask for a national
bank ct.ar ter.
Gov. C. admitted that any large bank could be examined properly
but said the expense would be inordinate, i.e. size would
prevent.
Went' Board to take same tiew of size that he does but C.S.H. says
that is for the Board to determine.
Wants Board to rafts() further permits for branch's on ground that
California does not adequately examine.
C.S.H. said. it would be monstrous to permit Bank of Italy to keep
its branches and refuse this to other state banks whose conditica
woild warrant just as many branches.
C.S.H. said if it is impossible to examine a bank with, say, 65
branches, logic would requirethe Board to expel it from the
Federal Reserve system.
Gov. C. said he did not insist al this, but wanted to prevent
further braiches,as Calif crnia was dvmpinE them on the community
with the feeling that the Federal Reserve bank would examine them.
C.S.H. and Platt pointed out that the above examiners admitted it
was no more difficult to examine one bank with 65 branches, than
65 unit banks.
Gov. Q. said that lending Federal Reserve examiners to help the
state examinaticns made the public believe it was a Federal
Reserve examinat ion.
C.S.H. said the Federal Reserve bank could make a public statement
which would clear this up.
Dec. 5, 1922. 13, 14, 15
C.S.H. believes Gov. C. Is against state btu* branches really because
national banks can not have branches,an.d that he is willing to
declare war against state bank branches.

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Federal Reserve Bank of St. Louis

Crissinger, Gov. (Cont.)
Gov. C. thinks only in terms of the National Bank Act, &lila
Board must consider .state banks as well.
Dec. 5, 1922. 17
Moves that California special savings accounts must take 10% reserve.
Dec. 6, 1922. 18
Rumor that Gov. C. has been appointed a member of Federal Reserve
Board. Denied. Dec. 7, 192:2. 19
Mitchell says the influential bankers do not trust Criss inger
and were appalled at the mention of his name.
Dec. 16, 1922. 24

• .

Mitchell intimates he will resign if Crissinger should be made
Governor of the Board.
Dec. 16, 1922. 24, 25
Totes against 'ranch at Pasadena for Los Angeles Savings and Trust Co.

•

C.S.E. voted also No, as Federal Reserve Agent Perrin in his report
practically recormaended against.it. It was admitted by Board
because it was in the Metropolitan area of Los Angeles.
Jan. 2, 1 923. 34
Senator Reed of Penna. said he had grave doubts whether he would
vote to confirm Criesinger if appointed to the Federal Resvve
Board,at at a redent bankers dinner at Pittsburg he became
gloriously drunk and made a semi-maudlin speech.
Jan. 7, 1923. 37

• • •

Attends dinner given by C.S.H. to Mr. Baldwin, Chancellor of the
ExChequer.
Jan. 15, 1923. 38
Shove Mitchell a letter to him'frail
Creager (the Republican boas of
Federal Reserve Agent at Dallas
should be followed.
Jan.

President Harding stating that
Texas) had indorsed Collier for
and that his recanmeniatice
24, 1923.

All of the letters favoring Collier were addressed to Crissinger,
merely an ex-officio member of the Board. 41
C.F.H. believes Crissinger is engineering Collier's boon. 42
Crissinger did not al* the letter of President Harding with the Board
(unlike his letter as to Comstock) and C.S.H. never heard of it
until Mitchell mentioned it. 43

-61-

Crissinger, Gov. (Cont.)
Crissinger speaks at dinner for members of Econany and Efficienw
Committee and said Congress ought to amend the Federal
Reserve Act so as to permit "exchange" charges. Said that
as "prospective Governor of the Federal Reserve Board" he had
received many letters favoring this.
C.S.H. hopes Crissinger has made no pledgea as to this, but fears
he may have.
Crissinger has often stated that the =all banks should. not
rediscount with the Federal Rearve banks.
Has also stated that the Federal Reserve system should be converted
into a central bank.
Crissinger said at this dinner that there should be one national
system of banking.
C.S.H. agrees to this but not with Crissingeris method of obtaini*
it, - discri*inaticri towards state banks.
Jan. 29, 1923. 43, 44
Cr i ssipger tells C.S.H. it is rumored that he, C.S.H. is opposing
McNary s conf1rmtion.
C.S.H. denied this absolutely.

Jan. 30, 1923.

C.S.H. told Crissinger no democratic Senate. had consulted him as
to MoNary; that Sen. Reed. of Pa. had told him of the charges
against McNary; that Sen. Glass had also spoken of the charges,
but that C.S.H. had expressed noopinion arii had no knowledge
on the matter, and could, therefore, form no opinion. 45

Pit

Totes to approve increase of discount rates at New York from 4 to
40, but did. not seem happy about it. Feb. 21, 1923. 48
tue
*ad gal: $s
lel seille0 beWrohal
(41 X*
inflahasmm000t 'Id Srati$

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Federal Reserve Bank of St. Louis

aid fat se$SAL

sod togat Lir -*
11164

bessie1246 tow I.UZOO3alizoiret
Jrot 60 11 %Moe Coll*

_fowl

104.0t

. 41/00 ScaSilattl. *1 1114,4014416 "-fol.** 10 tolt.,1 edtctri
(4044140 o si ipatitt *14
'
A
• -I

Crissinger voted with Miller to table a similar increase at Boston,
but it was approved. Feb. 21, 1923. 48
C.S.H. fears Crissinger will fight for Collier for Federal Reserve
Agent at Dallas, in accordance with President Hardingis letter.
Feb. 21, 1923. 50
Refuses to vote on application of two St. Louis banks to have their
reserve requirements lowered,ilk= defeating the application,
from lack of 5 affirmative votes.
Feb. 21, 1923. 50
Sec. Mellon tells Platt he favored this application but did not
want to oppose Crissingeri
Feb. 21, 1923. 50

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Federal Reserve Bank of St. Louis

Cris singer, Gov. (Cont.)
Crissinger tIals Board. he will vote for Collier,
Says McNary will also if confirmed.

Later he said be did not know hov McNary would vote.
He evidently, however, felt sure that McNary, being a purely
political nominee, would vote as President Harding wished. 50
C.S.H. feared Crissinger would protest against a vote on Collier
until McNary is confirmed, but he has not.
Feb. 23, 1923. 51
Miller fought Talley vigorously to curry favor with Crissinger. 51
On final vote, Crissinger alone voted for Collier.
Crissinger, however, did not fight for Collier.
Feb. 24, 1923. 53
Attends lunch of C.S.H. to Executive Commit tee of Farmers Grange.
Feb. 28, 1923. 54
Sen. Glass says Campbell, the dirt farmer, is a far better man than
Cri ssinger.
Glass says Crissinger is a shrewd politician as he had obtained the
support of Sen. Heflin.
Glass says he has heard that Crissinger had said he did not approve
of Gov. Hardingls record., nor that of the Board, ant that
be fears Crissinger may have made pledges as to his future
action. March 6, 1923. 53, 59.
Votes against approvirg letting of contracts for Little Rock branch
building. March 16, 1923. 63
Agrees wt h C.S.H. as to necessity for direct action by Federal
Reserve banks in passing upon credits.
March 26, 1923. 69
Intimates that some one misplaced a comma in the Agricultural
Credits Act and. thereby prevented, the agricultural credit
banks from rediscounting at the Intermediate credit banks, a privilege given to all state banks and. all state agricultural
credit banks.
March 27, 1923. 75, 76
At a discussion of sdbject of Federal Reserve banks absorbing
cost
of wire transfers of money, C.S.H. said if this were done
away with, the P.R. clearing system would collapse and
Crissinger at once said, -"That would be the salvation
of the
Federal Reserve SystemI"

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Federal Reserve Bank of St. Louis

Crissinger, Gov. (Cont.)
C.S.H. fears the exchange grafters have got hold of Crissirger,
and that trouble is brewing. April 4, 1923. 80
Votes against C.S.H. motion to approve negotiations of Bak of
Italy for pirchase of IC1 Centro bank on condition that Board
would not thereby be committed As to its later being taken
in as a branch..
April 10, 1923. 83
Crissinger sworn in as &member of the Tedaral Reserva Board,
and designated as Governor.
. May 1, 1923. 103
Brings up gaestion of reserves against California special savings
deposits.
Said matter settled by vote of Oct. 10, 1922, and Dec. 6, 1922.
Banks asked for hearing.
Votes against C.S.H. motion to reconsider.
May 3, 1923.

104, 105

C.S.H‘ tells Under Secretary Philipps he has asked Gov. Crissinger
to speak to him as to Cuban Agency.
May 4, 1923. 106
Says President Harding told him ha had received many telegrams as
to Cuban Agency but knew nothing about the facts; that
last night he told him ha would consult with Hughes and the
Cabinet and asked that no action be taken before ha bead
frcm him.
May 8, 1923. 110
Says President Harding has written him stating he had consulted the
Cabinet as to the Cuban Agency both from the political and
international aspect, and they were unanimous in favoring it,
and he requested the Board to designate an agency but he had
no suggestion as to which bank to designate but he hoped the
Board could arrimge it so as to cause as little friction as
possible.
Gov. C. added that Presidant Harding said the entire cabinet, including
Sec. Mellon, favored Boston strongly.
May 9, 1923. 111, 112
Advises C.S.HL to ask Gov. Harding to come to Washington, as C.S.H.
fears he thinks we will designate both Boston and Atlanta.
113, 114

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Federal Reserve Bank of St. Louis

Crissinger, Gov. (Ccet.)
Tells officials of Boston and. Atlanta that the President feels that
the_desigaation of a- Cuban Agency is most important internationally
and. that Board. has tentatively reached the conclusion that
Boston should be designatid.
May 15, 1923. 116, 117
See - Cuban Agency
Calls on C.S.H. fcr opinion as to Cuban Agency1 118
McAdoo complains of Crissingerls attitude on satate bank branches;
C.S.H. points out to him that Crissinger then represented the
national banks as Comptroller but now as an appointive member
and. Governor he represents both national and. state banks, and he
hopes and believes he will fairly represent both.
May 18, 1923. 120, 121
Federal Advisory Council was much stirred up because Gov. C. told it
the Board had settled the Cuban Agency before this meeting.
May 21, 1923. 122
Gov. C. says Atlanta bank had put out propaganda in favor of its
claim for the Cuban Agency and that it was most reprehensible.
May 21, 1923. 123
Goy.

e. opposes James motion to ask Sec. Mellon to come In on
Cuban Agency matter, wing the Board had already muuttimously
voted. on the matter and. that it could. not now be taken up
'except as a mction to reconsider.
May 21, 1923. 125

Votes against motion of C.S.H. to permit Bank of Italy to acquire
an insolvent bank but such action not to stand. as a precedent.
May 22, 1923. 1Z
Favors C.S.H. suggestion that Board designate both Boston ant
Atlanta in Cuba, Boston to do the operating and Atlanta to
issue all Federal reserve notes.
May 25, 1923. 130
C.S.H. tells Cris singer details of his conference at Boston, and.
Crissinger agrees it is most desirable to designate both
banks.
May 28, 1923. 138
Gov. C. thinks, in view of Gar. Harding's talk with Sen. Lodge,
that C.S.H. should see Lodge. 139
Gov. Crissinger, .1110168, and C.S.H. appointed. a committee to draw
a resolution designating both Boston and Atlanta for Cuban
Agency.
May 29, 1923. 140

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-65-

Crissinger, Gov. (Cont.)
Above committee reparts draft of a resolution. Voted unanimously
that this should stand as a basis of conference between
Boston and Atlanta.
143
June 1, 1923.
Votes against motion of Platt to reconsider action in refusing
application of Balk of Italy to establish a branch at
Sacramento.
June 1, 1923. 143
Gov. C. advises C.S.H. to go to Atlanta.
June 4, 1923. 145
Attends conference between Board and California Supt. of Banking
June 4, 1923. 145
Elliott tells C.S.H. that Gov. C. told him an opinion was to be
asked for from the Attorney General as to the proper
construction of Section 9, Federal Reserve Act.
June 12, 1923. 149
Crissinger criginally told the Board that he had received a
telegram convincing him that the Bank of Italy intended to
crush the National Bank at Yuba City, having been unable to
'buy it. June 12, 1923. 150
Votes to lay on table James motion to permit Little Rock brahch to
donstruzt its building. June 12, 1923. 152
Also votes to lay on table C.S.H. motion to authorize the building
of the Salt Lake City branch.
June 12,1923. 152
Asks C.S.H. to state in his proposed telegram to Sen. Glass that
he agrees with Dr. Miller that the Supreme Court decision
is a body blow at the Federal Reserve cl?aring system.
June 12, 1923. 152
Gov. C. is evidently delighted, with the Supreme Court decision,
claiming it had decided that the par clearing plan was
illegal.
C.S.H. told him decision merely was tbat Board is not bound to
establish par clearings.
June 12, 1923. 153
C.S.H. fears trouble from Gov. C. in the near future as to the
clearing plan. 153

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Crissinger, Gov. (Cont.)
C.S.H. tells Miller that it was Gov. C. who told Elliott that
the Attorney General was to be asked to construe Section 9,
Federal Reserve Act.
June 12, 1923. 154
Gov. C., C.S.H., Platt and Sen. Glass confer over Supreme Court •
clearing decision.
Gov. C. said Supreme Court bad ruled that checks payable in exchange
at aption of drawee were not Ipayable upon presentation"
Gov. C. said Federal Reserve banks had no right to take such
checks, and should be directed not to take than for collection.
Said also that, except where there was an adverse state statute,
the Federal Reserve banks could collect over the countsr
under ths Atlanta decision.
Further said we should advise the Fedsral Reserve banks when
presenting over the counter to accept exchange checks
(meaning, of course, satisfactory exchange Cheats) at par
if offered..
Gov. 0. said if we excluded all checks drawn in states having
statutes like that in North Carolina, the state banks would
soon see it was for their advantage to remain on the par
list.
Sen. Glass and 411 of us agreed with this.
We were all pleased at Gov. Crissingerls attitude (so different
from vihat it had been in the past).
Son. Glass said he would write Gov. Crissinger, to clinch him,
quoting what he had :mit said, ani pnising his stand.
June 16, 1923. 154, 155
Gov? C. opposes application of Pa.c. S.W. to establish a branch
at Porterville and. of Bank of Italy for Long Beach, and votes
against them.
July 31, 1923. 159, 160, 161
*President Harding dies.

Aug. 2, 1923. 162

Gov. C. tells C.S.H. that Mrs. Coolidge went to the R.R. station
to see Mts. Harding off.
•
Sept. 4, 1923. 166
Gov. C. tells Elliott that the examination canmittee is to
report on branch banks on Friday.
C.S.H. had not known of this until Elliott told him.
Oct. 31, 1923. 177, 176.

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Crissinger, Gov. (Cont.)
Later Gov. C. on being asked said the resolution could not come up
Friday as he was not yet satisfied with it. 178
Gov. Crissinger votes for the branch bank resolution reported by the
committee.
Gov. C. said he did. not agree with the resolution azi thought it
transcended the powers of the Board, but he feared the national
banking system vas (locoed to ultimate extinction unless Congress
changed the law, an therefore (1) he should vote for it.
Nov. st, 1923. 178
Gov. C. votes against C.S.H. resolution favorh g general principle
of a panatela plan, carefully guarded, for limited classes of
employees.
Dec. 7, 1923. 188
Later h3 voted for Dawes motion to reconsider. 188
On Dawes motion scmewhat changing C.S.H.Is he refused to vote,
thus making a tie and defeating the motion. 188
Gov. C. votes for another resolution of C.S.H. favoring the general.
principle of a pension plan. (see scrap
Dec. 13, 1923. 189
Sustains C.S.H. point of order that the pension matter is before
Board and some action must be taken by it. 190
Gov. Strong sews Sec. Mellon who favors the plan, must have talked
to Gov. C. to induce him to change his m ind. 190
Rules that Dr. Miller may move to reconsider the Bank of Italy's
requ.est for Iranches at Watson City, Long Beach, ant Santa
Maria, although he had declined to vote on the original
motion.
Dec. 17, 1923. 191
Gov. C. joined C.S.H. and Platt in voting to approve
these
applications, but they were defeated. 191
The applications for Long Beach and Watson City were
approved.
Dec. 18, 1923. 192
The application for Santa Maria was rejected, Gov.
Crissinger voting
No. Dec. 18, 1933. 192
Gov. C. votes against increasing Federal. Reserve Agent
Curtiss! salary
frau 18,000 to $20,000. Dec. 19, 1923. 192
Crowder, Gen3ral
likathusiastically in favor of Cuban Agency.

Mar. 9, 1923.

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Croader, General (Cont.)
Asked Gov. H. to cane to Washington today and confer with a
Cuban about it. 60
Deems it vitally important.

Apri130, 1923. 99

Cuban central bank arranged for by Gen. Crowder and Gov. Harding
has fallen through.
April 30, 1923. 100
Wants Cuban Agency.
April 30, 1923.

102

Phillips shows Platt why a cable sent him by Gen. Crcwder favoring
106
Cuban Agency. May 4, 1923.
White, of State Department, reads to Board letters and cables tram
Gen. Crowder strongly favoring Cuban agency.
May 4, 1923. 109
Gov. Harding reads to C.S.H. and later sends a letter from
Gan. Craftier dated Mar. 26, 1923, stating that Dr. Torriente,
president of Cuba and Mr. Peres, Secretary of the Cuban
banking legislative committee, had announced to him their
agreement with the suggestion that the Federal Res3rve Bank
of Boston should at once establish an agency at Havana;
Gen. Crowder suggested that the Federal Reserve Bank of
Boston establish such an agency with the consent of the
Federal Reserve Board. My 26, 1923. 131
Cuban Agency
Gov. Harding told C.S.H. that:The Cuban Govt. is to ask U.S. to request the Federal Reserve
Bank of Boston to establish an agency in Havana.
Ctject is:To buy ani sell bills, cable transfers.
To furnish U.S. money (legal tender in Cuba)
The Cuban silver dollar is also legal tender (same weight
and fineness as U.S. silver dollar).
He had gone over this with Dr. Miller, who approved it.
March 9, 1923. 59
C.S.H. aid it seemed a good thing, without committing
himself, especially if Cuban Govt. should &la State
Department to ask the Federal Reserv) Bank of Boston to
do it.
59

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Cuban Agency (Cont.)
C.S.H. said he should express no opinion
to Whether Boston,
same other Federal Reserve bank, or all the banks jointly
should establish it. 60
Gov. H. said Wing of First National, Boston, enthusiastically
favored it and said he would establish a branch of his bank
in Havana, if this were done. 60
Said that Gan. Crowder also favored it and had aiked him tocome
to Washington today to meet a Cuban and confer as to it. 60
Only difficulty is as to Federal Reserve notes of other Federal
Reserve banks. If taken in by the Boston Cuban Agency
apparently they must be sent for redemption to the Federal
Reserve Bank which originally issued them. 60
He thought they would not have to be sent to U.S. for tedemption as
they are legal tender in Cuba.
Said the Boston bank officials are in doubt as to this and gave it
up.
Asks that we examine into the law. 60
Said he had talked it over with Sec. Mellon who at first thought the
Federal Reserve Bank of New York might object.
He told Mellon that it was better not to give New York everything.
Mellon .aid there was much ill feeling towards the admini strati on
in New ngland, and that he would favor designating Boston.
60,61.
Gov. H. said the Cuban Govt. was to enact a law providing that the
Manager of the proposed central bank should be chosen by
those members of the Federal Reserve Board Who had served
continuously for 5 years, - Gay. H., Miller, and C.S.H. 61
C.S.H. doubted such a provision and said jokingly that the Act
should aid, "and Who graduated at Harvard, lived at Mattapoisett, etc. 61
Platt refers to application of Boston to establish a Cuban Agency.
Sec.Mellon said he did not object but feared New yoek would.
Gov. H. sends C.S.H. &personal letter discussing ltgal relation of
proposed Boston Agency to the other Federal Reserve banks.
C.S.H. sends this to Platt suggesting a legal opinion from cur
Counsel. April 7, 1923. 83

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Cuban Agency (Cont.)
Board holds hearing on Cuban Agency.
Present:
Governos Harding, Norris, Wellborn,
Federal Reserve Agent McCord
Deputy Governor Case of New York.
Governor Hardbg said: Gen. Crowder feels it vitally important to have Agency
"
estab ii shed.
State Department offers no objection.
Cuban Government has invited Boston to establit such an Agency.
U.S., through Platt amendment, is deeply interested in Cuba.
Almost entire circulation in Cuba is American currency.
No Cuban central bank.
No Cuban bank notes.
A few Cuban silver dollars of mme weight and fineness as our own.

U.S. money in Cuba consisted largely of national bank notes and
probably 90 to 50 millions of Federal Reserve notes
largely of Federal Reserve Bank of Atlanta; that an Agency
will greatly help American barks in Cuba as they could buy
and sell cabl3 transfers through the Agency, thus obtaining I
spot cash; that the Agency would keep up the quality of
the paper currency in Cuba, - especially Federal Reserve
notes, now in filthy condition; that 70% of Cuba's foreign
trade was with the U.S.; that the Royal Balk of Cuba did
50% of the banking business; that Cuba did not allow its
banks to issue notes; that the proposed Cuban central bank
arranged for by General Crowder and himself had fallen
thiiough; tbat if the Agency were established many more
American banks would, establish branches in Cuba in aid of
American commerce; that Boston was r eatly interested in
developing its trade with Cuba; that Boston had a regular
S.S. service with Cuba; that Boston was a lending district
and therefore better situated than Atlanta to buy and sell
cable transfers; that such cable transfers would amount to
between 2 and 3 hundred millions a year; that Boston's
future lay in developing her sea commerce; that the Boston
directors Isere unanimous and enthusiastic in favoring such
an Agency; that Federal Reserve Agent Bullen ant Washburn
and Cur ti se hat.studied the situation in Havana; that the
Federal Reserve district or Atlanta had the largest populatim,

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Cuban Agency (Cont.)
Governor Harding said (Cont.)
excepting only Chicago; that Atlanta needed all its resoteces
for its own development.
April 30, 1923. 99, 100.
Gov. Norris said he favored an agency in Cuba, but the Philadelphia
Bank did not desire it for itself. 100, 101
Gov. Wellborn opposed a Boston Agency and said:There are probably 40 millions of Atlanta peirol Reserve notes
circulatimg in Cuba; if Bosttn is given the agency these notes
would gradually be displaced by notes of redaral Reserve .oak
of Boston; the Atlanta Bank would thus lose the gold against
which these notes were originally placed in circulation in
Cuba; that the Atlanta district had an enormous business with
Cuba, far exceeding that of Boston; that his directors had
applied for an Agency in Cuba in, 1921, which had been refused
by the Federal Reserve Board. 101
Gov. Harding replied that the bulk of the export traffic as from other
parts cr the U.S. ,through the Atlanta district and not tram
it; that the large number of ship entries can from the fact
that there, was, in effect, a ferry service between Havana and
the U.S.; that tobacco was the principle import.
Gov. Harding said also that he would agree to put out only Federal
Reserve notes of Atlant or of banks other than Boston. 101
Gov. Case opposed creation of an Agency in competition with our member
banks; he woke of risk of exchange fluctuations in dealing
with bills; said that the New York Federal Reserve bank had
always utilised the Atlanta bank in shipping Federal Reserve
notes to Cuba; he admitted that the National City Bank of New
York and the Ft'st National of Boston wanted a Federal Reserve
Agency as a distinct benefit to themselves, as it would give
them spot eakh for cable transfers and acceptances. It was
also pointed out to Gov. Case that all bills must be payable
in dollars thus eliminating exchange fluctuations.
The Board then took up the matter.
Platt said the Treasury, Gen. Crowder, and the State Department wanted
an Agency designated.
C.S.H. made a rough draft of permission based an Gov. Harding's
statements and read it to Board., which gays power to deal in
cable transfers and eligible bIlls of exchange.
Dr. Miller said all transactions should be limited to eligible
prime
bankers acceptances, secured by Shipping documents.

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Cuban Agency (Cant.)
Board finally agreed to Dr. Miller's suggetAion and asked him to
read it to Case over telephone.
April 30, 1923. 101, 102.
Miller read draft to Case.
Case said that, without waiving his general objections to an Agency,
he thought this limitation very.satisfactcry, but wished to •
consult Warburg.
Platt called up Warburg who said he thought the limitations were all
right, but he said he did. not want to give any general expression
of opinion because of his relations with Wing of the Fir st National
Bank of Bost cn.
All of the Board agreed that all Federal Reserve notes held in UM
must be issued and. not unissued notes.
May 1, 1923. 103

*4•4%',

•
PIM *4

C.S.H. presented a revised. draft drawn by Counsel vilich put in Cable
transfers as 4.1. power implied. frcm right to buy ani. sell bankers
acceptances.

Miller read this to Case in New York.
Case said. the form was satisfactory.
gY*.

SPIV

Case also said sane bankers, eg. Mr. McGarrah, wanted draft changed
so that the Agency could. buy bills dram on banks, e.g. in
New York, but not yet accepted, as otherwise it would give
a preference to banks haring branches in Cuba, Eitch his
Bank did. not have.
Case finally asked that matter beheld up until the New York bankers
could have a hearing before the Board..
Warburg called up Platt and said he had been under the impression
that the Board had in mini an Agency of a member bank, and. not
of a Federal Reserve Bank,, that he seriously doubted the
advisability or legality of a Federal Reserve Agency.
-

The Board. then voted to have a hearing next Monday at which Gov.
Case, the New York bankers, Mr. Warburg, and. Gov. larding, would
be present.
May 2, 1923. 103, 104
Under Sec. Phillips showed Platt a copy of Gan. Crowder's cable favoring
Cuban Agency and. said. State Department had no objections.

4111 111,41100041*

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Ctiban Agency (Cont.)
C.:11 tells Phillips the U.S. is supplying Cuba with practically all of
her circulating medium; that the Agency in question had. an
international phase because of the Platt amendment; that thl State
Department shotild do more than merely say it had no objections
to the designation of an Agency; that it should tell the Board
affirmatively whether it wished such a designation to be made;
that C.S.H. had. asked Crissinger to speak with Phillips about it.
Phillips then told C.S.H. that the State Department wished to back up
General Crowder absolutely, :Art.. that if Gar. Cri winger would
talk with him, he, as representing the State De-,-,artment, would
say that it favored such a designation.
C.S.H. tells this to Gov. Crissinger who said he would. see Phillips.
May 4, 1923. 106
Board gave a hearing on Cuban Agency petition of Boston, on request
of Gov. Case, in order that New York Bankers might be heard).
Present:
Gov. Case, Mitchell (National City Company),
Gates McGarrah (Mechanics & Metals), a representative
of -the Interna.ticnal Foreign Banking Corporation, Ex-Senatcr
Hoke Smith (for Fulton National Bank, Atlanta), Adelson (for
Federail Reserve Bank, Atlanta), Gov. Harding, Feleral Re 3rve
Agent Curtiss, Wing, Aiken and Bancroft (for Boston Clearing
House Associati on), Ottley (Dir3ctorLa Federal Reserve Bank of
Atlanta) and others)
Gov. Harding presented the case of Boston and filed a brief
prepared by Counsel, ar. Weed,
Gov. Case opposed any Agency.
Gov. Case reads a letter from Warburg.
Warburg wrote: Section 14 (e) was taken from the Aldrich Act.
Warburg wrote this clause.
He meant by kency something other than Fed ?ral Reserve Bank
Agency.
The Federal Reserve Act, by "Agency" did not mean a Federal Reserve
Bank Agency.

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Cuban Agency (Cont.)
(The repcet of the Federal Reserve Boar* dated Oct. 12, 1915F.R. Bulletin 348 - shows conclusively that the
committee -(of which Warburg was a member)- meant
Federal Reserve Agency.
The committee report stated..
"In trade centers when American banks are not established
it might be proper for Federal Reserve banks to appoint
joint correspondents or agents in order to facilitate
the development of American acceptances in such places."
That the committee was 'peaking of Federal Reserve Agencies is clear
when it is remembered that the above statement was a
concession to Sec.MoAdoo who had publicly favored
Federal Reserve bank agencies in South Agerican countries
in many of which there were American banks or branches.
Mitchell (of National City Coqpany).
Favored keeping Cuba supplied with our currency.
Opposed giving power to Agency to bu y or sill cable transfers
or acceptances for reason that it would mean competition
of a Federal Reserve bank with member banks.
It was pointed out to him that the Agency would be restricted
to dealings with banks, that the banks would take the
initiative, and that there could be no competition of
the kind he described.
Mitchell could not answer this but vaguely hinted that If the
Agency was limited to transactions with member banks, or
at least, with Aaerican banks, he might favor it.
Later, after listening to the testimony of Mr. Dmeell (the
Cuban Manager of the National City Bank) he practically
withdrew his objection.
He finally admitted that the Agency would enable National City
branches in Cuba to reduce their reserves from 25% nom
carried, to 10.
He added that be might even be willing to contribute to the
expense of such an Agency in view of each reduction in
reserves. May 7, 1923. 107, 106.
Gov. Harding said that to confine the bustnes of the AgeMby
to member banks or American bmnks, would arouse bitter
• resentment on the part of the Canadian banks in Cuba and
the Cuban banks-109

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
ottley and Hoke Smith said they doUbted the power of the Federal
Reserve Board to create such an agency, but that, if it had the
power, it should designate Atlanta. 109
Wing, Aiken, and Bancroft, for Boston Clearing House Cammdttee,
denied that the Federal Reserve Bank Agency would compete with
the American, foreign, or Cuban banks. 109
Mr. White, representing the State Department, came before Board;
read letters and cables from Gen. Crowder; stating absolute
necessity of creiting such an Allency.
Gen. Crowder in these letters and cables said the Cuban banks had
casibined to raise rates and were charging from 10 to 12% for
first class commercial paper.
White said that from an international point of view such agency was
most desirable. 109
A Tampa cigar manufacturer than said that the banks in Cuba were
in a combination and charged 3% plus 1/8% commission for
collections. 109, 110
Federal Reserve Agent Curtiss calls up C.S.H. on telephone and said
that ha was an the train with Mitchell, returning from the
hearing, and that Mitchell told him that he considered an
Agency absolutely necessary, but he did not care Wnether the
designation were given to Boston or to Atlanta; thrt he bad'
favored Atlanta as to Federal Reserve issues because Atlanta had
agreed to provide him with notes in Cuba absolutely free of charge
if it were designated.
Curtiss said 1/81% should be charged.

May 8, 1923. 110

Gov. C. says President Harding told him he had received many telegrams
as to the designation, but that he knew nothing about the facts;
that he would take it up with Hushes and the Cabinet, and asked
that we take no action until we heard from him.
Said he had
also talked with Mellon.
Platt thereupon withdrew his motion to designate Boston.
May 8, 1923. 11J0
President Harding writes Gov. Cl a letter stating that the Cabinet
were unanimous in favoring an Agency, frc.i. the international point
of view. President Harding asked the Board to designate an Agency
but made no suggestion as to which Bank should be designated, hit
he hoped the Board could arrange it so as to cause as little
friction as possible.

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Cuban Agency (Cont.)
Gov. C. having read this letter, added that President Harding told
him the Cabinet all favored Boston, balthat Sec. Mellon told him he
was strongly in favor of Boston.
C.S.H. then moved, in view of this a. rcuzunization from till President,
and after due consideration of the Banking considerations
involved, the Board proceed to designate an agency of one of
the Federal Reserve banks in Havana.
C.S.H. said. Warburg's letter did not sustain his point that Sec. 14 (e)
of Federal Reserve Act was ltaited to Agencies other than those
of Federal Reserve banks, and pointed out tLit years ago the
commit tee of the Federal Reserve Board, of viaich Warburg vas
chairman, reported. that under certain circumstances, enura3r:-..ted in
the report, the Board had the power to establish Federal Reserve
Agencies in foreign ccuntrie s.
C.S.H.'s resolution was paesed unanimously.
May 9, 1923.

111, 112

Platt thlm moved that Boston be designated.
On discussion it appeared that every member favored Boston.
It was finally decided. not to take a formal vote, but to call the
officers of Boston and Atlanta to a hyAring next Tuesday, in
order to work out the details, so as to keep the Federal
Reserve note circulation of Atlanta in Cuba unchanged.
May 9, 1923. 112, 113
Board accordingly wired Boston ana Atlanta.
Federal Reserve Agent Curtiss called up C.S.H. on telephone to find
out whatthis hearing meant.
C.S.H. said he could not discuss it until Tuesday.
Curtiss than said to O.S.U. that Boston had not asked for a joint Agency.
C.S.H. said he understood this fully.
May 9, 1923.

113

tells Gov. C. he fears that Gov. Harding may think that we
are to create a joint agency and that, as a result, he may get
his directors to withdraw Boston's application entirely.
May 9, 1923. 113
Gov. C. advised C.S.H. to Call up Gov. Harding and tell him to "keep
his shirt on" and come down Tuesday. 113, 114.

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Cuban Agency (Cort.)
C.S.H. tells this to Platt and litchell.
Mitchell, thereupon, on his °ma responsibility, called up
Curtiss and said that without conmitting the Board, he felt
that matters were going along 41 right and to tell Gov. Harding
to bring Bullen with him Tuesday to work out all necessary
details with Atlanta. 114
James and Cunningham take oath of office as members of Federal
Reserve Board. May 14, 1923. 116
Board hearing on Cuban Agency.
Present:Boy. Harding, Bullen
Gov.Wellborn, Adelscn.
May 15, 1923. 116
Gov. C. opened by stating that the President and State Department
felt a Cuban Agency was most desirable from an international
point of view; that the Board after careful consideration
had reached Use tentative conclusion that Boston and not
Atlanta should be designated; that such designation should
not be allowed to interfere with the circulation of Atlanta
Federal Reserve notes in Cuba.
Gov. C. then aik3d the two banks to confer together end wark this
out. 117
Gov. Harding sail Atlanta had only 40 millions of Federal Reserve
notes in circulation in Cuba; that probably 100 millions
would be required as the Feteral Reserve notes would
probably displace other Ame2ican money now there; that
Dallas should be allotted to put out say 25 millions, and
the balance to be put out by Atlanta.
117
Gov. C. asked the Board members to express themselves.
Dr. Miller said if it was only a matter of currency he should
vote to designate Atlanta; that if only purchase and sale
of bills were involved, Boston cl3arly should be designated;
that he considered the banking functions as the essential
ones and that Boston clearly chculd be designated,
preserving, however, Atlanta's status as to Federal Reserve
notes. 117, 116
C.S.H. said, coming from Boston, he hai scrupulously refrained fry=
taking any part in the discussion so that his associates
could form an independent judgment upon the avid= e b3fore
them; that the conclusion that Boston should be designated
was a unanimous conclusion; that he could now say that he

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
concurred in this conclusion; that Atlanta was the nearest
district to Cuba, but that 75% of the Cuban exports to the U.S.
and 60% of the Cuban exports, went to and came from Phila., New
York and Boston; that bills normally were financed where the
gods went; that the only American banks in Cuba were the National
City of New York and the First Naticnal of Boston, just authorized;
that, in his opinion, the principal question was assistance to the
trade between Cuba and the U.S.; that the matter of Federal Reserve
notes was only incidental!
C.S.H. also said that if this were a contest between Philadelphia
New York, and Boston, each demanding to be designated, he
would be very much puzzled as both Philadelphia and New York
had a much larger business with Cuba than did Boston; that
both Philadelphia and New York bad stated unequivocally
that they did not want to be designated; that ho felt,
therefore, that Boston should be designated.
May 15, 1923. 117, 118
Meeting of Federal Advisory Council.
May 21, 1923.

121

Some days ago Rue wired Board that the Council desired to
be heard on gaestian of a Cub an Agency.
Rue, the Chairman, was very much stirred up and said the
Board Should not have acted without first getting
an opinion from the Ccuncil.
Extended discussion followed, brought out by fact that
Gov. Crissinger told the Com-mail that the Board had voted
and settled the matter prior to this meeting of the
Council.
Dr. Miller contended that the Council had no right to call
upon the Board for a report.
C.S.H. said that the Council, in his opin'Lon, clearly had
such a right, but that he was sure Mr. Rue would not
claim that the Council MS an appellate body, or that
the Board was bound to secure its assent prior to
rendering any decision.

Mr.

Rue said he did not claim this, thus backing down from
the positicn he originally took.

C.S.H. said it had never occurred to the Board to consult the
Council as such,. in this matter, but that if such a
request had been made by it he would have been only too
glad to have conwulted with them.

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Cuban Agency (Cont.)
Meeting of Federal Advisory Council (Cont.)
C.S.H. then brought out that both Rue and Warburg had
been invited to attend at one of the hearings and
that Gov. Case had. read. to the Board a letter of
Mr. Warburg, arguing the whole matter; that the Board,
he felt, had a right to assume that, - two members of the
Council having been invited to attend, and one of than
having argued the question by letter, and neither of
them having male any requet for consultation with the
Council, - no consultation with the Council was necessary.
This disposed. of the matter, so far as the prior consent of
the Council was concerned.
A general discussion of the advisability and legality of a
Cuban Agency then followed.
Little zip to this point had been said as to whether: Boston or
Atlanta should be designated.
Suddenly Mr. Lone of Florida said that if Atlanta were not
.cosignated, there would be a violent attack on the Board
by representatives and Senators, as soon as Congress came in.
123
Dr. Miller baid Lane's statement was blackmaili
Lane said he had done nothing in the way of propaganda.
Gov. Cri ssinger said propaganda had been used in the interest
of the Atlanta bank and that it was most reprehensible.
May 21, 1923. 123
Warburg read. a report of the Council:..
Strongly objected to any Federal Reserve Agency in Cuba.
Ccuncil believes that Agency in Sec. 14 means designation
of some local bank and not a Fe1eral Reserve Agency.
Danger of revolutions in Cuba.
Federal Reserve Agency should. never be established in•
foreign country.
Board replied to Warburg that because of Platt amendment Cuba
was not really a foreign country, and pointed out that
Cuba hai made our money legal tender.
Warburg said our draft as to power to buy and sell bills was so
stringent, and rightly so, that the proposed Agency could
do little business, and could not earn its expenses, as

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Federal Reserve Bank of St. Louis

Cuban Agency (Cont.)
sugar, the principal export, moved only during 4 or 5 menthe of the
year. 123, 124
As to the choice between Boston and Atlanta, the report said little
or nothing, but there was no possible doubt but that, ils between
Boston and Atlanta, the individual members favored Atlanta.
Walking over to lunch with Lane, C.S.H. asked him to tell him just what
Atlanta's posit ion was.
Lane said. Atlanta wanted the Agency both for Federal Reserve note azxl for
banking purposes, in short, she wanted everything and. objected to
Boston having anything.
C.S.H. asked him if he thought this was a fair position to take.
C.S.H. then asked him, speaking for himself personally, and without any
authority from the Board, whether, - if the Board. were to designate
both banks, they to operate together under the working agreement
made on the assumption that Boston alone should be designated, - it
would. not be a fair proposition which Atlanta should accept.
Lane said. he tought such a decision would be fair and that he would
gladly urge the Atlanta directors to accept it if the Board were
to adopt it.
- .S.H. to talk this over with the Board, as it would be a
Lane asked 4
most happy solution. 124
James said we 'tight to consider the matter of designating an A.zency very
carefully in view of the opposition of the Federal Advisory Council,
and that sec. Mellon and Cunningham should be present at the meeting.
Gov. Crissinger said we had already voted and. settled the matter and that
it could not be reopened except upon a motion to reconsider.
No such motion

s made.

125

Warburg at the Council meeting suggested a plan:Board to deposit Federal Reserve notes with Cuban banks, taking out
credits against which Cuban exchange could be sold; that such notes
would. be cash in the Cu.ban bank vaults; that all Federal Reserve
banks should be allowed to do this. 125
(This would, of course, break up Atlanta's monopoly.)

C.S.H., heating that Federal Reserve Agent cCord is in Washington,
sends for him and sugge-sts the possibility of designating both
banks, as he did to Lane. May 24, 1923.

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
McCord. said.:
Sure this would be accepted with enthusiasm by the
Atlanta bank directors, and by the whole south.
Will consult with them and write C.S.H. Monday.
Said Boston should. be allowed to do the banking business
under its own designation. 127
Said also that one of his directors told. him he should object
to Atlanta buying bills in Cuba, even if authorized to do so
127, 128
C.S.H. vaguely suggests to Gov. Harding, in Washington, the
designaticn of both banks, as he dick to Lane.
May 23, 1923. 128
Gov. H. flew off the handle and .-aid Boston would never consent
and would prefer to withdraw its application. 128
C.S.H. asks him tothink it over confidentially.
C.S.H. then asked him to write him, after consulting Wing, as
to just what Boston Agencor could do in Cuba along banking
lines, in the way of buying and selling bills, cable
ttransfers, etc.
Gov. H. again flew off the handle and said we should take his
word. for it and that he had already explained this to the
Board.
C.S.H. said this was true but that the Board might want to have
his views in writing in order to answer Warburg; that
Dr. Miller wanted more information as to the scope of the
agency.
Goy. H. was very bitter towards Miller, bit C.S.H. insisted he
should 4ye the Board this information in vrriting, and
finally he half-heartedl-y said he 'mould furnish it.
Gov. H. said. he he seen Senator Lodge who said he would back
him up to the finish and. would see President Harding
tomorrcw.
May 23, 1923. 128
Dawes tells C.S.H. he wants to congratulate him on his remarks
before the Federal Advisory Covnc14;said he never before
had heard such a tactful, able address. 129
Lane calls up C.S.H. from New York and C.S.H. tells him of
his talk with McCord and asks him to see McCord in Atlanta
and not t,o stop in Washington on his way dom.
May 24, 1923. 129

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
McCord told C.S.H. at his last meeting that the Atlanta papers were
all praising C.S.H. and said that altho he came from Boston
they would .,,srree in ,,tvance that he might be authorized to
settle the controversy between Atlanta and Boston. 129
C. .H. consults Gov. C., Dawes and Platt, as to possibility of
designating both Atlanta and Boston under an operating agreement
to be worked out.
Platt opposed, but Gov. C. and Dawes favored it and suggested that
C.S.H. talk it over with Gov. Harding and Wing, as he was going
to Boston to attend funeral of T. P. Beal.
May 25, 1923. 130
C.:3.H. talks over designation of both banks at Federal Reserve Bank,
Boston, with Gov. Harding, Curtiss and Wing.
They were irrevocably opposed to having both banks designated.
They said, however, that if ordered by the Board, they would doubtless
comply, but that personally they would rather have the whole plan
fall through than to have both banks designated.
C.S.H. pointed out that ever:Abing which Boston zould do alone, she
could still do if both barks were designated, under an operating
agreement under which Atlanta could have a representative to hold
and pay out Federal Reserve note., as directed by Boston, and to
sell to Boston all bills, cable transfers, etc. bought by Boston
and paid for by Fedaral Reserve notes of Atlanta.
They said it could not be done in this way,but, as a fact, this was
the plan they had eaggested, except that one of their own
employees would act as agent of the Atlanta Bank.
May 26, 1923. 131
Gov. Harding read to C.S.H. and then mailed to him at Washington a
letter fran Gm. Crowder.
This letter was dated March 26, 1923, and stated that the President
of Cuba (Dr. Torriente) and the Secretary of the Cuban Banking
legislative committee (Mr. Perez) anncunced to him their
agreement with the suggestion that the Federal Reserve Bank of
Boston should at once establish an agency in Havana, suggesting
the establishment of such an agency with the consent of the
Federal Reserve Board.
May 26, 1923. 131
Gov. Harding also read to C.S.H. and mailed to him a copy of a
letter, dated May 25, 1923, which he had sent to General Crowder.
131.

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
This letter stated, that the Boston Bank had applied for an Agency;
that New York opposed any Agency, but t(ok the position that if
any agency was established it should be Atlanta; that the Board
informally agreed that Boston ahculd be designated; that a plan
of operation had been arranged with Atlanta (under her protest);
that the Board, instead of voting formally to designate Boston,
laid the matter before the Federal Advisory Council; that at the
meeting of the Council Warburg opposed any agency but favored
Atlanta, if any should be designated, etc. etc.
May 26, 1923. 131, 132
Gov. Harding also mailed C.S.H. a memorandum: 1. Federal Reserve Bank of NOW York opposes any agency, but
favors Atlanta if any Agency is established.
2.

Atlanta insists on being designated if any Agency is established.

3. (a) National City Bank of New York apposes an agency because
now is the agent of the Federal Reserve Bank of
New York, having been so designated some time ago
to quell a banking disturbance in Cuba, on the
distinct understanding that it not do any business
under the agency; that, however, it had advertised
extensively and sent out calendars on which this
fact was printed; that thereby it created the impression
in Cuba that it had facilities in Cuba not enjoyed by
other American banks doing busines there. 132
(b)

That after its designation, the National City Bank asked
the Federal Reserve Bank of New York to deposit with
it a large amcmxa of Federal Reserve notes so it could
exchange them for unfit currency, - which the
Federal Reserve Bank of New York declined to do.

(c) That the Naticnal City Bank made the same proposition to
Atlanta, Which agreed to do it, but the Federal Reserve
Board disapproved this on representations from
Gen. Crowder that such arrangement would ba a
discrimination against other banks doing business
in Cuba.
(1) Atlanta then filed with the Federal Reserve Board a
statement that if an Agency for exchanging new notes
for old were •:mar established in Cuba, it would
claim the privilege.
4.

Mitchell, of National City Bark (or securities company) does not
want his Agency disturbed. He told the Board, however, that
such an Agency would be of advantage to American banks in
Cuba, but if one is to be established he preferred Atlanta.
He took this position because Atlanta had aig Jed that, if

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
designated, it would furnish the branch of the National City Bank
at Havana with currency free of all expense to it.
Mitchell hopes ultimately to be an active agent in Havana of the
Federal Reserve Bank of New York, after this agitation has
died down, so it can do an the Federal Reserve Bank of
Boston wants to do, - buying aid selling acceptances, bills,
cable transfers, etc., out of funds to be f urnish,x1 by the
Federal Reserve Bank of New York.
This would be very advantageous to the National City Bank, tut a
discrimination against Canadian banks, Cuban banks, other
American banks doing business in Cuba, and the Federal
Reserve Bank of Boston.
5. Asks Federal Reserve Board to Cancel at once the nominal aency
of the National City for the Federal Reserve Bank of New York.
134
At the conference in Boston on May 25, 1923, went over the above very
carefully and told. Gov. H., Curtiss, and Wing, that, although
the controversy might have arisen largely as a matter of pride
of croinion, Atlanta ah._ght have some for an equitable claim
for the use of its name as an Agency, although all of the
'banking operations were to be done by Boston . 134
Gov. Harding said that to designate Atlanta as well as Boston wculd
be to yield to political attack. 135
C.S.H. said, he did not fear any attack, politidal or otherwise, because
of any vote of his; that the Board would certainly be attacked,
if Boston alone were designated, for alleged discrimination
against Atlanta; that the question in his mind was whether it
might not be the duty of the Board to designate both banks;
that, in his opinicn, if only one were to be established, it
should unquestionably be Boston, because, in his opinion,
the purpose of such an Agency was pria,arily to help American
Banks in Cuba, to cause their nizaber to increase, as he firmly
believed would happen, and to stabilize banking con-itions in
Cuba, - as well as to preserve the status of Federal Re.erve
notes of Atlanta in Cuba, and ensure a =poly of clean currency;
that 3/4the of Cuba's foreign trade Was with t)se U.S. and. that
3/4ths of Cuba's exports arrl a majority in value of its
imports went to or came from Phila., New fork and. Boston; that
bills follow merchandise just as trade follows the flag.
C.S.H. said the question, to him, was, could not all this be
accomplished equally well, or perhaps better, by designating
both banks.

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Federal Reserve Bank of St. Louis

Cuban Agency (Cont.)
C.S.H. also said that if a charge of diacrimination were made, it
would appear, as expressly pointed out in Gov. Harding's
memoranda, that the Federal Reserve Bank of New York and Warburg,
both favored Atlanta if any designation was to be made, and that
it might be difficult to disprove discrimination if the charge
was backed up by such authorities. 136
Gov. Harding and Wing both said they did not care a rap about any
charge of discrimination in favor of Boston; that if there mils
to be a fight, Atlanta would find that Boston could fight. 136
C.S.H. pointed out that the charge of discrimination would be made
against the Board and not against Boston, and that it was the
duty of the Board to decide the question so as to do absolute
justice to each of the Federal Reserve banks. 136
Wing said that if the administration turned down Boston it would
suffer politically. 136
C.S.H. replied that that had nothing to do with the Board which would
decide the matter absolutely without regard to any political
considerations. 136
Wing sai.d he agreed with Warburg that Federal Reserve banks should not
establish Agencies in foreign countrie. 137
C.S.H. then asked him squarely, - "Do you or do you not favor a
Federal Reserve Agency in Cuba?'
Wing replied, - "Yes, because the status of Cuba is different from that
of a purely foreign country."
Wing also said the National City Bank agency should be at once
discontinued, that his branch in Cuba would. be open in a month,
and that it would be gross discrimination against his branch.
May 25, 1923.
136, 137

eseqi

McCord wires C.S.H. that Lane will wire C.S.H. from Jacksonville
Monday and that the matter is working satisfactorily.
Lane wires C.S.H'Satisfied can be arranged. Would you advise special meeting
or would regular meeting in Atlanta about June 10 be
satisfactory. Answer quick." 137
•

C.S.H. wires Lane to hold matter in Abeyance until he wired him as
he had not yet mentioned it to the full Board.
May 28, 1923. 137
C. .H. tells Gov. Crissinger full details of Boston Conference.
Gov. C. Agreed with C.S.H. that it is most desirable to designate
both banks, if we can lawfully do so.

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
Gov. C. says Miller is weakening on question of ILAving any agency.
C.S.H. has conference with Platt and Wyatt.
Platt is more inclined to designating both banks.
Wyatt says best way is to designate both with power to buy bills, etc.
but to arrange by regulation that Atlanta shall appoint an
agent to hold its Fed3ral Reserve notes, perhaps in joint
custody; that Boston is to manage the agency, buy all bills, etc.
that the Atlanta agent is to pay over Federal Reserve notes to
the Boston agency receiving the bills bcught but iumediately
selling them to Boston which will pay Atlanta through the Gold
Settlement Fund. 138
Wyatt says that if Boston alone held the Agency, while it wight be
possible to work the matter out, there would always be the
danger of a legal attack; that to employ an appointee of Boston
also as agency of Atlanta might be construed by a court to be
analagaus to one Federal Reserve bank appointing another Federal
Reserve bank its agent to receive and pay out its Federal
Reserve notes, which would violate provision of Act requiring a
Federal Reserve Bank Which receives notes of another bank to at
once return them to bank through Which issued for credit or
redemption.
We asked Wyatt to prepare a letter to Gov. Harding for Gov. Crissinger's
signature informally expressing these views. 139
Gar. Crissinger agreed. with C.S.H. that, in view of Gov. Harding's
talk with Sen. Lodge, it miOit be well for C.S.H. to see Lodge,
and Platt, at C.S.H.'s request said he would go with him.
Board considered Cuban agency.
rding's letters and memoranda.
Went over all of Gov.
C.S.H. tells Board in great detail of his talks with Lane and
McCord and of his conference at Boston.
Mr. James moved that a committee of 3 be anpointed (later fixed
as C.S.H., Gov. C. and James) to prepare a form of resolution
designating both Boston and Atlanta, and to work out
regulations in as great detail as possible along the general
lines of the agreement previously entered into by Boston and
Atlanta (on the assumption that Boston alone was to be
desimated), except that Atlanta was a representative to hold
and pay out Federal Reserve notes against bills etc. bought
by Boston.
This motion was passed unanimously, and it was agreed that when the
Board acted upon the report of the committee, C.S.H. could

Cuban Agency (Cont.)
take the matter up with Boston and. Atlanta.
May 29, 1923.
•

C.S.H. calls up McCord at Atlanta at 4:30 p.m.

•

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satisfied that Atlanta would be absolutely satisfied.

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Federal Reserve Bank of St. Louis

01
L.

744 .7-•

C.S.H. called. up Sen. Lodge at 5:45 p.m.
Originally called up his office at the Senate and he asked me to
call up his house, giving me his telephone number.

C.S.H. said the Board. was unanimous in voting to establish an
agency, but that the Board had only informalli reached. the
corclusion that Boston alone should be designated; that a
hearing had been held based on this informal understanding,
at vilich Boston and Atlanta were present, and an operating
agreement had. been entered into; that later much opposition
had developed, at a hearing, to the designation of Boston;
that at the Federal Advisory Council meeting, the Council
vigorously objected to having any Federal Reserve agency
established; that while its final report did not specifically
favor Atlanta, there was little doubt but that, as between
Boston and Atlanta, the members preferred Atlanta, if any
agency was to be created, as did specifically Warburg, the Federal
Reserve Bank of New York, and the National City Bank of New York;
that Gov. Harding in his memorandum so stated.

.T*0
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C.S.H. said he feared the greatest difficulty would cane frcm the
Boston end, and that he would. call him up again Thursday.
140, 141

C.S.H. explained the details to him.

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McCord. said he and, I think, also Gov. Wellborn thought it would
be a happy solution of the whole qu.estion, but did not want to
assume the responsbility of saying so until they could consult
their directors.

Lodge said Gov. Harding told. him the whole matter of Cuban agency
was settled.

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C.S.H. said he felt it would be a fair solution to designate both
banks under an opersting agreement; that he thought that Atlanta
would. be absolutely satisfied with such an arrangement, but that

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Federal Reserve Bank of St. Louis

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Cuban Agency (Cont.)
Gov. Harding absolutely refused to agree, and -aid that if
Atlanta wanted a fight she would find. Boston could fight,
that Sen. Lodge would fight ar1J. ha.1 promised to fight for
Boston to a finish.
C.S.H. pointed out to Lodge that the fight would not be aEl:ainst
Boston, but that it would be against the Board which would. be
charged with discrimination against Atlanta, and that if
Boston alone were designated Lodge wculd have to defend the
Board, with the certainty that the Federal Reserv: Bank of
New York, Warburg, and in all probability the ntire Federal
Advisory Council would claim that there was a discrimination
against Atlanta.
Lodge at once said this would be an impossible situation.
C.S.H. pointed out that his proposed solution, - designating both
banks, would give to Bobtcn about 99% of venat she want.id,
merely giving to Atlanta the nominal right to have an a-ency
under its oval name, although the banking operations would all
be done by Boston.
Lodu,e said he thought, without, of course, being familiar Aith all
of the facts, that this would be a wise solution.
C.S.H. told. Lodge he had this talk with him so that he ..ould know
generally about the matter if he were consulted about it in
Boston where he goes tomorrow.
May 28, 1923. 141, 142, 143
Gov. Crissinger, James, and C.S.H. reported to the Board a draft of
resolution designating both Boston and Atlanta.
Voted, unanimously, that this draft be tentatively be accepted as
the basis for a conference between the ccomittee and the Boston
and Atlanta Banks.
June 1, 1923. 143
C.S.H. telephones McCord at Atlanta and. asks him to come to Washington
to talk over the Cuban aituation.
June 1, 1923. 144
McCord earnestly requests C.S.H. to attend meeting of Atlanta board
of directors on June 8, and C.S.H., after consulting with
Gov. C. said he would attend.
June 4, 1923. 145
C.S.H. has talk with Hoke an ith as to plan to designate both banks,
he said it was most satisfactory andthat Atlanta ought to
accept it 4ad.1 y. June 5, 1923. 147

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Cuban Agency (Cont.)
C.F.H. leaves for Atlanta at 9:35 p.m.
June 6, 1923.

147

Arrives at Atlanta 4 p.m. Thursday, June 7.
Wellborn and licCord at station.
Atlanta bankers tendered a dinner in the evening.
Mr. Ottley, a director of the Federal Reserve Bank of Atlanta,
sat beside C.S.H.
Ottley is one of most bitter opponents to designation of Boston.
147
Attended presentation of oil paintings of McCord and Wellborn to
the Federal Reserve bank by employees.
Attended directors meeting at about noon.
After long discussion it was finally agreed that my suggestion vculd
be acceptable to the directors.
(See ',13.1-lorandum in scrap book)
Afterwards, Ottley said to C.S.H.:"Before youcame dcwn, I stated publicly that I woulc1,.be
damned if I would agree to any comprcmise, but your
reasoning was to. strong and convincing, your address at
the dinner was so charming, and we directors all have
such affection for you, that you twisted us around your
finger and we rather liked to be so twistedl"
Mr. Hoven lunched with C.S.H.
June 8, 1923. 147
C.S.H. goes $O Boston
Has interview with Gov. Harding 3nd Bulien.
Told them he came cn to attend. class dinner and dropped in to
see them en limits.
Carona not to mention Cuban Agency.
Acted as if assumed that they persisted in their refusal to
accept designation of both banks.
Finally got up to go, when Gov. Harding Lipoke of Cuban Agency.
C.S.a. said he assumed all negotiations were off.

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Cuban Agency (Cont.)
Gov. H. then began to talk and after quite a lcn.: discussion he
finally said he would agree to the designation of both banks
after going over the draft agreed upon by C.S.H. and Atlanta
directors.
Said he had a few changes he wanted to suggest.
June 18, 1923. 156
C.S.H. then left for Manchester to attend dinner etc. of class ct
1883.
C.S.H. has interview with Gov. Harding.
Goy. H. gives C.S.H. a draft containing his suggestions.
June 20, 1923. 156
Gov. Harding agrees to a draft drawn by Wyatt; at his suggestion
power given to buy bills not dram on banks.
June 26, 1923. 157
Board votes to approve draft on Cuban Agency.
June 27, 1923.

157

McCced came in later and read Wyatt's draft, initialed by
Gov. Harding at 5 p.m. yesterday, and, in presence of C.S.H.
ani James approved an:1 initialled it.
The Board eliminated cne or two Rwhereases0 of no importance.
It was read to Board by C.S.H.
Every member voted Aye excq:st Miller, who voted No.
Miller said that in the absence of a preliminary operating agreement
it would =rely C801110 a ram between Boston and. Atlanta.
C.S.H. replied that ycu can't make an operating agreement until you
have something to operate.
Miller then vigorously objected t o broadening the payer 3 granted so
as to permit the purchase of bills drawn on other than banks.
Miller said such bills were trade bills and that we would not permit
Federal Reserve banks to discount or purchase such bills even
in the U.S.
C.S.H. pointed out that most questions as to trade acceptances
involved the question, in the p-tst, of preferential rates;
further, that the Board long ago hai ruled that a Fedsral Reserve
bank could discount a bill of exchange before its acceptance,
if secured.

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Cuban Agency (Cont.)
Miller then read a statement prepared by Gov. Case, showing that an
a certain date most of the acceptance held by Boston and
New York involving Cuban trade were bankers acceptances.
Domes then asked Miller to state just what his negative vote meant,
and whether he was opposed to an agency in. Cuba.
Miller talked at great length very cryptically, but finally add he
favored such an agency on general principles, but was opposed
to this particular draft, etc. etc.
Mine' evidently voted No, feeling sure tra Ayes would carry, and
C.S.H. believes, in order to appear conservative and to please
Warburg.
Jule 27, 1923. 157
The officers of Federal Reserve banks of Boston and Atlanta came
before the Board and all disputes as to Cuban agency were
satisfactorily adjusted.
July 30, 1923. 159
Cuban Government
Invites Federal Reserve Bank of Boston, through Gen. Cromder, to wen
an agency in Havana. Invitation extended by the President of
Cuba, etc.
April 30, 1923. 99
Cunningham
C.S.H. tells Sec. Mellon that the White Hausa has just announced
the appointment of Cunningham upon the Federal Reserve
Board; Mellon segued coapletely amazed; said it was the first
he had heard of it; asked C.S.H. who he was, and said be
knew nothing about him, although he had a vague idea he
may have heard or read of his name as a candidatel
C.S.H. and Edward Hamlin met Sec. M. walking across the park to
lunch.
May 5,1 923. 111
Chappell, of Kansas, an unsuccessful candidate for dirt farmer of
the Federal Reserve Board, tells C.S.H. that Cunningham, at
a meeting of the Iva Farm Bureau Federation, introduced and
put through a resolution condemning the Subsidy Bill President Hardingss pet hobby.
Said also Cunningham was Senator Brookbart's right hand man.
May 8, 1923. 111

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Federal Reserve Bank of St. Louis

-92-

Cvxningham (Cont.)
Took oath of office as a member of Federal Reserv3 Board.
May 14, 1923. 116
Votes to lay on table C.S.H. motion to intsrpose no objection to
construction of branch bank buildings at Little Rock
and Salt Lake.
June 12, 1923. 152
Voted against Yuba City spplication of Bank of Italy.
Aug. 2, 1923. 161
Votes for resolution of Nov. 7, 1923, aL: to branches of state
member banks.
Nov. 7, 1923. 178
Votes against C.S.H. resolution favoring a carefully gu.arded
pension plan for employees of Federal Reserve banks for
limited classes of employees.
Dec. 7, 1923. 188
Votes against Dawes motion for reconsideration.
Dec. 7, 1923. 188

f fkur

Votes against Dawes motion that Board, without indorsing the
general principle of a pension plan, will interpose no
objection to submission to Congress of any bill.
Dec. 7, 1923. 188
Cunningham said. at the meeting, - "By God, I won't vote for any
pension planI I need one myself more than they dot"
Dec. 7, 1923. 189
Votes against C.S.H. resolution favcring, in principle, a
pension plan.
Dec. 13, 1923. 189
Votes against C.S.H. resolution that Board. has no objection to
having Governors committee introduce their pension bill in
Dec. 13, 1923. 189
Congress.
Voted against application of Bank of Italy for lranches at Watsons
Long Beach,and Santa Maria.
Dec. 17, 1923. 191
Voted. against increasing salary of Federal Reserve Agent Curtiss
frcq) 18 to $33,000.
Dec. 19, 1923. 192
Tells C.S.H. he misunderstood the Board's vote as to Bradley,
thought it only abolished his secretarial duties; will

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Federal Reserve Bank of St. Louis

-.93-

Cunningham (CorA.)
be glad to move to reconsider tomorrow.
C.S.H. asked him to see Janes.
Cunningham, later told C.S.H. he had. seen Jiin OS who agreed to
vote to give Brad* $1800 as a stenographer.
Dec. 20, 1923. 193, 194
At special meeting of Board, C.S.H. said he asked for it because
of his talk with Cunningham yesterday in which he said James
told him he would. vote for $1800 for Bradley.
Cunningham then absolutely denied he had said this to C.3.H.1
Votes against $1800 salary for Bradley.
Says willing to vote for $1500.
Curtiss, Federal Reserve Agent.
Tells C.S.H. that Gov. Morse is to resign.
C.S.H. tells Curtiss his action irt. not telling Board cf this
until after he heard it from Gov. Calkins, had seriously
embarrassed him.
Dec. 7, 1922.
18
Curtiss says Gar. Mores pledged him to absolute secrecy but
later spoke of it to Gov. Strong', etc. 19
Curtiss says Board is considering Bullen; that sane of Board feel
that appointment cf Gov. would be considered. a s3ap at
President Harding.
C.S.H. advises Curtiss to tell his Board. to consult with sec. Mellon.
C.S.H. tells Curtiss Board would welcome Gov. Harding's appointment.
Curtiss says Gov. Mores will anyway hold over until January and
then would be glad to go abroad for 6 months without salary,
leaving Bullen in charge.
Curtiss says he heard this morning that Crissinger had been appointed
cal Federal Reserve Board..
Dec. 7, 1922. 18, 19.
Charles Washburn says Curtiss fears that azointment of Gov. Harding
might be construed as a slap against the administration.
Dec. 18, 1922. 26
•

•

Curtiss, Federal Reserve Agent (Cont.)
Curtiss tells Gov. Harding he wants to talk with him In New Ycrk.
Dec. 28, 1922. 33
Board votes against increasing salary of Curtiss from 18 to $20,000.
Only C.S.H. and Platt voted Aye.
Dec. 19, 1923.
C.S.H. believes Miller voted No, for reason that he lately told
Platt he should vote ,A,aainst any further increases in salaries
of Federal Reserve agaats unless they would agree in alvance
to carry out any recommendations of the Economy and Efficiently
committee as to cuttaag clown or abolishing their monthly
reports. 198
See - Cuban Agency
Curtis, William E.
C.S.H. attends funeral of W. E. Curtis at Watertown, New York,
Was.Asst. Sec. of Treasury, with C.S.H., 1893 to 1897.
WAS one ct the finest characters C.S.H. ever knew.
Aug. 23, 1923. 163

Dahlia farm.
C.S.H. drives with H.P.H. to Reddings Danlia Farm at Long Pond,
Plymouth. Badding said the newspaper clipping that he bad
named a dahlia for Mrs. Wilson was in error; that a Waltham
grower had long ago done this; that he, however, raised both
the Woodrow Wilson and Mrs. Woodrow Wilson dahlias and would
send me some bulbs in the spring of 1924.
Oct. 201 1923. 176

Dallas, Federal Res' vs Agent
See - Brewer
Collier
Mi tchel1
Talley

441.-

ritirt
c
ihorry

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Federal Reserve Bank of St. Louis

•

AU
4,1

4 ur

444 .;

nLallst-A, t

4.10j

evnie,:en.

MS.

Davis,Asst. Sec.
C.S.H. asks Davis to make app intment for Dr. Willis with Sec. of War,
on subject of Philippine National Bank.
April 20, 1923. 93

eft.,

Dawes, Comptroller of/Currency
Takes oath of office.
May 1, 1923.

103

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Federal Reserve Bank of St. Louis

-95-

t
.

Dawes, Comptroller of Currency (Cont.)
Votes against C.S.H. motion to pennit Bank of Italy to take over
an insolvent bank, it not to create a precedent.
May 22, 1923. 126
Ws he is convinced by C.S.H. reasoning that this case of an
insolvent bank would be a poor case upon which to rest the theory
of spheres of influence (this bank being outside of what he believed
ti be a proper sone for the Bar* of Italy), and moved to reconsiders
ard. Board finally voted to approve application.
May 22,1923. 126, 127.
Tells C.S.H. his remarks at meeting of Federal Advisory Council on
Cuban Agency were most tactful, able, ant ccnvincing.
May - 1923. 129
Favors C.S.H. suggestion for designating both Boston a& Atlanta for
Cuban Agency.
May 25, 1923. 130
Votes againsr reconsidering vote of Board, refusing permission to Bank
of Italy to establish a branch at Sacramenbo.
June 1, 1923. 143
Votes agiiinst reconsideration of Board's refusal to grant spplication
of Bank of Italy for a branch at Yuba. City. 151
Votes to lay on table C.S.H. motion to appose no objection to
construction of branches at Little Rock and Salt Lake.
June 12, 1923. 152
Asks Miller just what his negative vote on Cuban Agency meant; whether
it meant that h3 was opposed to it?
June 27, 1 923. 158

sft

Votes against application of Pacific S.W. for Porterville and
Bank of Italy for Long Beach, etc.
July 31, 1923. 160, 161
Votes fcrresolution on branch bank policy.
Nov. 7, 1923. 178
Votes for consent to Pacif. S.W. for branch at Porterville.
C.S.H. at first failed to see how Dawes could vote thus, being
opposed to all branches
put in on ground that the Nov. 7 resolution did, not take
effect until Feb. 1, 1924, and C.S.H. thinks he is,' consistent.
•
Nov. 22, 1923.
180

Dawes

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Federal Reserve Bank of St. Louis

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Dawes, Comptroller of Currency (Mat.)
Votes against C.S.H. resolution as to Pension plan for P.R.
employees.
Dec. 7, 1923. 188
Then moves reconsideration. 188
Then moves Board, without indorsing general principle of a pension
plan, will not object to Governors having their b ill introduced.
188
Votes against C.S.H. resolution favoring general principles of a
carefully guarded, limited Pension plan.
Dec. 13, 1923. 189
Votes against C.S.H. motion that Board does not object to Governors
putting in their proposed. bill in Congress. 189
(Proposed this himself yesterday)
Bitterly objected. to reference of Pension matter to salaries comsd.ttN,
although both he and Janis were on it, on the grourri thit he
wouli be bou.nd by the principle of the resolution just passed.
by Board.
Dec. 13, 1923. 190
Votes against Watson City, Long Beach, and Santa Maria applications.
Dec. 17, 1923. 191
Delano, F. A.
H.P.H. and Anna stay at hou.se of, while Mr.and Mrs. Delano are away.
Nov. 16, 1922. 11
C.S.H. rides to Providence with Mr. and. Mrs. Delano.
Sept. 24, 1923. 171
Refers to Delano's defense of Miller in putting his chauffeur on
Federal Reserve rolls.
Dec. 21, 1923. 197
Dimock,Mrs.
C.S.H. and H.P.H. dine with.
Dec. 4, 1923. 11
Dinner
C.S.H. dines with Ex-son. Saulsbury.
Dec. 5, 1923. 184
(Not complete list, see - Wilson)

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Federal Reserve Bank of St. Louis

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...

Dinners given by C.S.H. and H.P.H.
Present:
mrs. Hou.stcn,Mrs. West, Vice President anl Mrs. Marshall,
Mr. Chiltern, Gov. Harding and Under secretary Gialbert.
Dec. 16, 1922. 25
To Mr. Baldwin, Chancellor of the Exchequer, and Norman,
Goy. cc Bank of England.
Present:
ML'. Baldwin, Gov. Norman, Compt. and Mrs. Crissinger,
Sen. 8c Mrs. Glass, Mrs. Fred Grant, Sen. and Mrs. Kendrick,
Asst. Sac. and Mrs. Eliot Wadsworth, Mr. & Mrs. Waring,
Charles Warren and Anna Hanlin.
Jan. 15, 1923. 38
To Belgian Ambassador and Baroness Cartier.
Mar. 2, 1923. 54
Direct control of credits.
Joint conference. Federal Reserve Board, Governors, and. Federal
Reserve Agents.
Long discussion between Federal Reserve Agent Perrin and Goy. strong
as to relative merits of rate control and direct control.
Oct. 13, 1922. 1, 2
See- Perrin
Stran, Coy.
Director of the Mint.
See - Scobie

.44

Directorx, Feaeral Reserve Bank of Dallas
Unanimously indorse Talley for Federal Reserve Agent.
Feb. 24, 1923. 52
See - Collier
Talley
Mitchell
Discount rates
Joint conference, Federal Reserve Board, Governors, and Federal
Reserve Agents.
Oct. 13, 1922. 1, 2.
Discussion as to how discount rates should be determined.
Perrin:
The rate does not control unless higher than commercial rates.
Impossible to have rates higher than comnercial rates, tt least
in states permitting rates as high as 12%.
Direct zcntrol of credits is necessary.

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Federal Reserve Bank of St. Louis

Discount rates (Cont.)
Fesieral Reserve banks should know the credit policy of its member
banks before they apply for rediscounts.
Should. know this even if a member bank is not rediscounting at all.
Strong, Gov.:
Discount rates are effective even althcuh below the rate to
du tailors.
When Federal Reserve banks increase rates, member banks put up
rates to their custaners, and conversely.
Federal Reserve balks should ccnsider merely the mount of
rediscounts in proportion to the resourm, of the member bank.
30•11./i•boiss4

tL '

•s t)(tUVO

EIvl,

If this proportion is reasonable the rediscount should be
granted, no matter what the member bank has been doing, whether 1.oaning on Wall Street, capital loans, real estate
loans, speculative loans, etc.

•

Gov. Strong said as a fact, however, that he often made direct
inquiries.
Gov. Strong said banks rediscount mainly to build, up their
reserves =i that to refuse rediEcounts wculd be disastrous
to their depositors.
Federal Reserve Agent Wills supported Perrin and said teat
Federal Reserve Bank of Cleveland had maintained a 6% maxim=
rate (as ag,.iin.4 New York's 7%) by policy of direct control.
:•1L

Perrin claimed that under policy of direct control, a reasonable
discount rate could be maintained without charge, keeping
control through direct action. 2
Gov. Mores strongly supports Perrin.
No vote was taken but C.S.H. thinks a majority favare'i both
rate control mad direct action. 2
The Federal Adviory'Council recommends an 'efedlots increase of
at New York, Boston,and San
discount rates from 4 to
Francisco.
Feb. 20, 1923. 47

At meeting of the Board, Platt wanted us to advise New York that
we concurred in the reccemandation of the Federal Advisory
Council.

Discount rates (Cont.)
York
C.S.H. objected as he wanted to obtain the judgment of the New
our
of
judgmrit
the
directors independently, unaffected by
Board.
The Board felt that New York conditions as shown by Gov. Strong's
letters, anci Warburg's statements to the Council, warranted
such increase, as the spread between Federal Reserve rates and
customers rates was increasing, and there were some indications
of speculation in commodities both in New York and Boston.
Feb. 20, 1923. 47, 48

New York and Boston voted unanimously yesterday to increase rates
from 4 to 40.
Feb. 21, 1923. 48

ledinei.
cod: el/..wasaa
.14
b,
' nee; .id.
Lt46.1 ,snkol
I.

Platt calls special meeting of Board.
Platt says Sec. Mellon approves increase but mn not coma to
meeting.
Board votes unanimously to approve increase.
Miller said it seemed warranted.

• .";;
a..0)Thi,ilita

3„1"iut

eL..

Gov. Crissinger voted for it but did not seeahappy about it.
Platt :aid Sec. Mellon had persuaded. Goy. C. to vote for it.

SA1.-$

nilleci ;,,C 'T.>
k
a keirt.tkt
$oel

Miller, while not opposing tha Boston increase, thought it should
be postponed until Congress adjourned, as Congress would
probably attack us for it1

:.13)

Miller them moved to table it and Gov. C. voted with him, but the
other members defeated the motion.
Feb. 21, 1923. 48, 49.
Conference with Governors.

`71 -

'I"

Pia

7acv Jhost 'mei!

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Federal Reserve Bank of St. Louis

C.S.H. said Board must have coir age to hold speculative activity
in check by means of raising discount rates; that he favored
the recent increase at New York arid Boston as a means of
"feeling the mouth" of the market; that he was averse,
especially when reserves were high, to putting up rates
against a merchant needing credit for a necessary coulmodity,
merely because his neighbor was speculating in some other
commodity; that direct action was needed, in the first
instance at least, to keep speculative activity under control;
that Cleveland, by direct action, was able to maintain a 6%
rate during the war; that when direct action got out of hand,
the Board must have courage to meet the situation through

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Federal Reserve Bank of St. Louis

-100-

Discount rates (Cont.)
the discount rate, no matter hoc high our reserves might be;
that whether we should. announce this policy, - as the econcmists
seemed to wish, - was a question for consideration, but that we
should, in any event, act On this policy.
Gov. Crissinger agreed with C.S.H. as to the nec-3ssity for direct
action.
Gov. Harding told C.S.H. that direct action could accomplish much,
in spite of Gov. Strong's contrary opinion; that he had used. it
recently on the Interne.tional Trust ecmpany of Boston, which
the next day reduced its rediscounts by $500,000.
March 26, 1923. 68, 69.
Board met to consider applicati on of Chicago to increase all discount
rates to 510.
April 7, 1923. 81
Sec. Mellon vas present at the meeting.
After long discussion, Board felt that the matter could wait awhile;
that the barik might better liquidate its holding of U.S. bonds,
notes and securities first.
Miller offered a resolution su.ggeuting that all Federal Re3erwe banks,
before increasing rates, ahculd first liquidate their .holdings
of U.S. securite.-3 and allow their acceptances bought in the
open market to runn off anti to put up their buying rates for
acceptances.
C.S.H. objected as to the acceptance part of the resolution.
C.S.H. said the total earning assets of Chicago had increased 31
millions since Jan. 4, 1923; that if the bank should liquidate
all of its hol41r4s of Govt. securites, it would, draw in from
the market, - U.S. bonds and notes, - 797 millions, U.S. certificates
35.7 millions, - a total of 43.3 millions, which would make the
total earning assets 145.1 millions, or 5.5 millions less than the
150.6 held on Jan. 4; that such a vrithirawal from the market Aould
be ample without the nece3sity of lit erfering with open market
operations in acceptances.
The Board., however, passed the resolution, and laid Chic,....go's application
on the table, pending its reply to the resolution.
April 7, 1 923. 81, 82
The Board felt it was not sure that production hal yet reached its
peak in Chicago, and. further, that there was no evidence of
speculative activity. 82

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Federal Reserve Bank of St. Louis

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Discount rates (Cont.)
The Federal Reberve Bank of Boston recommended an increase in the rate
on 9 m(nths aigicultural paper to 5%, an the principle that the
larger maturity justified a higher rate.

•

The Board did not feel it ought to override the wishes of the directors
and, therefore, approv,id this increase, as the total dimounts of
all agricultural paper were small at Boston, although 4 other
Federal Reserve banks had put in the seam rate, - 4% - for all
maturities.
April 7, 1923. 82
The Board asked Warburg, who was in town, to discuss the resolution
sent to Chicago.
April 12, 1923.
85
Warburg said he did not favor ordering Chicago to sell its Govt. holdings
of securities, or to withdraw from the open market for acceptances.
Warburg said, - as did Platt some days ago, that a FederA Reserve bank
had a right to keep invested ka the open market an _Amount equal to
its capital and surplus; that this was not inflation as the
capital and surplus had been originally withdrawn from the market
and its investment merely restored to the market this amount.
Warburg protested against withdrawing from the acceptance market,
especially as a rule for all Federal Reserve banks.
Warburg said C.S.H. was right in his claim that there was a fundamental
difference between putting money into circulation by: (a) Buying Govt. securities, and
(b) Buying acceptances; that money put into circulation
under (b) went primarily to aid general business
transactions; that under (a) no one could tell to
what use it could be put, e.g. it might be loaned
on Wall Street.
Miller said many speculative transactions had been floated by means of
acceptances.
C.S.H. said this did not affect the general principle that money paid
out in purchase of acceptances went primarily to finance comnercial
transactions.
C.S.H. pointed out that 90 day notes secured by Govt. securities could
be and doubtless often were used for speculative purchases, yet
out Board had ruled that Federal Reserve banks could as sums that
such paper was issued to carry or trade in U.S. '3onds.

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Federal Reserve Bank of St. Louis

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Discount rates (Cont.)
C.S.H. said it seeaed to him that his associates were trying to find an
excuse for not increasing discount rates, by withdrawing money
from the market by the sale of earning assets, thus iniirectly
accomplishing the same result; that mach a course would not avert
the necessity for increasing discoant rates, or, at least, only
for a short time; that withdraxing money from the market by
sales of earning assets, would tend to increase rates paid by
customers; that this would widen the gap between Federal Reserve
rates and customers rates, thus ultimately forcing the Board to
decrease the cap by increasing Federal Reserve discount rates,
unless we were willing to standby and lose all control over the
situation; that if pulling out of the market Waould result in
Increasing the demand of member banks for redi.counts, we should
have to Increase or Federal Reserve discount rates if we felt
that credit control was necessary.

ese

C.S.H. said the Board, - although in doubt as to whether rates should
be Increase, - was by the resolution, deliberately creating a
condition, which might not exist now, which might necessitate
the increase of Federal Reserve discount rates in the near future.
Warburg said he was in accord with C.S.H. as to the above.
85, 86, 8?
C.S.H. asked Miller why the Treasury was so desirous of having the
Federal Reserve banks sell their holdings of Govt. securities.
Miller said the purchase of Govt. securities by Federal Reserve banks,
thus pouring money into the market, disturbed the market and
made it difficult for the Treasury to ascertain just what rates
the certificates should bear to insure their absorption by the
public; -that the last issue of Treasury certificates was now
selling below par.
C.S.H. is convinced the Treasury is trying to tighten the money market
in order to depress prices and thus bring the last issue of
Treasury certificates up to par, and to put in higher rates in
the coming issues.
April 12, 1923. 8'?, 88
Professor Frank Teussig tells Board he does not favor any public
announcement by the Board as to our policy in fixing discount
rates, as favored by Sprague, et als.

• •

Taussig said that the science of rate making was not exact; that any
statement we might make would be criticized by economists;
that he believed we Should study production, prices In relation
to production, *peculation both as to commodities, and even on
the stock market, supply of labor, etc. etc.

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Federal Reserve Bank of St. Louis

—103Discount rates (Cent.)
Taussig further Jaid we had no exact knowledge as to production, at
least as to many industries built up on the foundation of the
basic industries; that all we could do wogs to \latch carefully, :41d
be ready to act at any Ulm, in the way of increasing discount
rates.
Taussig said. that while the time might be near at hand for an increase;
he was not prepared to say the time had yet arrived; that he
could cnly advi se "watchful waiting."
Taussig also said the gap between Federal Reserve rates and customers
rates was too great and ;night have to be changed in the n3ar
future.
Taussig said that, whatever politicians might claim, the tariff, as
regards recent increase of prices, was irrelevant except in the
case of wobl; that sugar, even, was not much above pre-war prices.
Taussig also said. prices would not fall much below present levels
for the next 5 years, largely owing to the labor monopoly under
the immigration law.

•

Taus sig said. he saw no reason for Federal Reserve banks withd.rawing
from the market by selling their Govt. securities, as our system
had originally withdrawn over 300 millions from the market, for
capital and surplus of the Federal Reserve banks ,and that the
purchase of Govt. securities merely restored this to the market;
that this was not inflation.
Taussig was vary much concerned ,t Platt's intimation that the
Treasury desired our system to get out of the open market because
our operations interfered with wiles of Treasury certifi
cates.
Taussig said. the Treasury shLuld approach the 4.ar1et as it found
its
and not attaapt in any way to interfere with it; that the
Federal Reserve system, so far as Treasury policy was concerne
d,
should never rtifictally manipul,tte the market to help
the
Treasury.
C.C.H. told Taussig he agreed absolutely with him; that because
of
the peculiar conditions at the present time h3 was willing
temporarily to permit Federal Reserve banks to lower the amount
of their holdings of Govt. securities, but that, for the
whole
year,, he believed it was the plain duty of the Federal Reserve
banks to earn expenses and dividends, •Ahatever the effect
on the
market or the Treasury might be.

t!hate

ikAimerie

Taussig said he agreed.
Taussig then said the only .suggestion hecould make was that
some
member should deliver an address and stress the point that
the

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Federal Reserve Bank of St. Louis

-104-

Discount rates (Cont.)
Present high reserves ware not an adequate indicator of credit
conditions; that such statements in the Federal Reserve Bulletin
were too impersonal.
Taussig finally said he did not agree with Sec. Hoover, that gold
would be exported from the U.S. in any large umount in the near
future.
April 19, 1923. 88,89,90,91.
rd.

Discrtmination.
Gov. Harding says he does not fear any claim of discrimination
against Atlanta if Boston should be given the Cuban Agency.
May 26,1923. 136
See - Yuba City

Dividends and Expenses, Federal Reservebanks.
Oct. 13, 1922. 4, 5, 6,
Gov. Morse tells C.S.H. the question of withdrawing from the open
market does not involve question of impairing the earning power
of the Federal Reserve banks as they could in any event earn
their charges and dividends.
Federal Reserve Agent Austin Wilcithat any material reduction in
earning assets might imperil dividends.
C.S.H. said the Federal Reserve banks were created as,,ermanent,
going institutions, and should never lose sight of the necessity
of earning expenses and the 6% dividend; that while the Attorney
General had given an opinion that Federal Reserve banks could
lawfully pay dividends out of surplus, nevertheless a public
announcement that any of the Federal Reserve banks had to
encroach on its surplus to pay its dividends would be hailed
all over the country as a blow at the Federal Reserve system,
and would discreit it in the eyes of the world.
C.S.H. dti not deny that some unforseen crisis might warrant a payment of dividends out of surplus, but that as a general principle
banks should make up out of open market purchase the amount needed
for expenses and dividends, just as if no surplus existed. 5
C.S.H. said the same question came up in 1916 before the Federal
Advisory Council; that it was then claimed that the necessity for
making expenses and dividends would cause undue competition
with the member banks, and that, as a consequeme, the paid-in
capital should be paid back to member banks to avoid such
competition; that the Council once so voted, but later reversed
itself; that Forgan pointed out that capital was essential to

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Federal Reserve Bank of St. Louis

-105-

Dividends und Expenses, Fedlral Reserve Banks (Cont.)
that the needed
Pedarel Reserve banks to strengthen their position;
ion; that no
competit
undue
amount could easily be earned withcut
the
follow
would
than
greater competition would be involved
York; that
New
in
e.g.
bank,
establishment of one new large member,
blow to the
serious
a
be
would
ds
failure to earn expenses and dividen
6,
5,
186)
p.
,
Diaries
Falaral Reserve System. (See Vol. 3,
- not competition
C.S.H. said the question had now aseuhed a new phase,
market purchss e
open
by
caused
ence,
interfer
with member banks, but
securities and
of Govt. securities, with Treasury operations in such
6
credit.
of
voluOe
the
with
interference generally

•

ns could be
C.S.H. said that in so far as Federal Reserve bank operatio
expenses and
earn
to
Ability
their
g
impairin
circumscribed without
the
with
tion
coopera
in
on
limitati
such
dividends, he favored
Reserve
Federal
time
present
the
at
that
felt
Treasury; that he
unduly
bank holdings of Govt. securities could be reduced w:thout
avoid
to
glad
was
he
that
;
earnings
ry
affecting their necessa
interference with the money market along inflationary lines
lost
(e.g. by continued purchases); but that it should never be
selfof
a
matter
as
banks,
Reserve
siyht of that the Federal
preservation, must earn expenses and dividends. 7
Mitchell vigorously supported C.S.H.Is views.
Some of the Governors pointed out that at the last meeting of the
Governors, (not yet placed before the Board), it was voted that
the necessity for earnings should not be considered in ming open
market purchases, and they also called attention to a similar vote
of the Federal Advisory Council.
the
C.S.H. pointed out that the resolution as originally reported by
ration
conside
Council to the Board, was to the effect that primary
who
was
Gilbert,
should not be 6iven to earnings; that Uhler Sec.
preseht, suggested striking out "primary"; that Rue
at once put this as a motion and it was carried at a time vthen the
members were leavirw and without any discussion. 7, 8
Gov. Strong said we should agree upon some policy, - that the Federal
Reserve banks had bought hundreds of millions of Govt. securities
and acceptances, halter shelter, viithcl:t any fixed policy. 8
Jay then presented a resolution to the effect that the Federal Reserve
banks should care for all necessary credit extension, but should
not permit credit inflation. Passed. 8
Gov. Strong put in a resolution that Federal Reserve banks should lower
the amount of their open maeket purchases in proportion as their
rediscounts increased. Voted.

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Federal Reserve Bank of St. Louis

-106-

Dividends and Expenses, Fedeaal Reserve banks (Cont.)
Gov. Mores moved to add "and as geld imports increase."

Defeated.

Board, at Governors Conference, considers proposed open market circular
appointing a central co.rrnittee of Governors to have general charge
over open market purchases of ac•eptances and Govt. ..ecurities,
laying down the principle that the effect on the m(ney market should
be primarily considered.
March 27, 192'3. 76
Gov. Harding objected to the preamble which affirmed power in the Board
to limit the aaount of open market purchases.
Gov. Harding said the Governors all agreed as to the policy at the present
time, but desired power in the Board to regulate the aluount.
Gov. H. suggested striking out this part of the preanfole.
Gov. H. sail that Sections 13 and 14 of the Federal Reserve Act gave power
to the Board as to bills and acceptances only, but no power as to the
purchase and sale of Govt. securities.
Incidentally, much was said as to the Federal Re.;erve banks not having
been organized as pro Lit making banks, and SGWO Governors said it
would be good if SOMA banks had to operate at a loss. 77
C.S.H. said the Federal Reserve banks could have met all expense_ and
dividends requirements in 1922 with 400 millions less of earning
assets, and that this excess undoubtedly affected the mcney market;
that he voted for the proposed circular, because he thcught it was
wise auiwould not impair the necessary (varnint
: powers of the Federal
Reserve banks. 77
C.b.H. further said that th Board. had AS nval regulatory power over all
open market operations, but that he was satisfied that the Board
had no poser, by reFul.-.J.tion or otherwise, to force any Federal
Reserve bank to do business at a los
i.e., to live on its surplus.
C.S.H. said. he knew the intent of Congress was to create living, virile,
banks, and not purely emergency banks; that the Federal •resexv e banks
were under a ;lain duty to earn their expenses and the 6% dividend,
..Jaatever the effect cn the mcney warket might be from their necessary
oper,ationu to this end. 77, 78
Gov. Harding pointed out that the proposed circular .hould not affect
the right of .., Federal reserve bank to buy freely in the open market,
acceptances ori4.natinw in their own districts, a.; otherwise the
*Iola matter would be centralized in 110'7, York,building it up at the
cost of other districts.
The Board and Governors all a6reed that such an exception was proper.
No final action was taken. 78

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Federal Reserve Bank of St. Louis

-107-

Dividends and Expenses, Federal Re..,erve banks (Cont.)
Board again considered proposed circular.
April 3, 1923.

C.S.H. moved to strike out the portion of the Ahereas, objected to by
Gov. Harding, a to the power of the Board.
C.S.H. said the whereas added nothing as the whole circular necessarily
implied such power.
Vote on C.S.H. motion resulted in a tie and was lost.
Aye - C.S.H. and Platt
No - Miller and Cunningham
C.C.H. feels there is grave doubt how far the Board can legally
exerci se such power, and that the circular was voted for with
little or no consideration of the question of power.
(The matter, as C.C.H. remembers, wad finally compromised.)
Domestic bankers acceptances
Millar moved that Federal Reserve banks be permitted to purchase doweatic
bankers ac3eotances in the open :market up to six months
waturity, covering the aomestic storage of poods, and li.cited to
readily morketable, staple agricultural products, secured by
warehouse receipts during life of acceptance. Voted.
Dec. 12, 1922. 20
Drum, John
Indorses Talley for Federal Reserve Agent at Dallas.
Feb. 24, 1923. 52
Durell
Cuban manager of National City Bank, Durell, favors Cuban Agency.
May 4, 1923. 108

-E-

Earning assets
See- Dividends and

expenses

Eckert
Master of Illinois Grange lunches with C.S.H.
Feb. 28, 1923. 54
Econamy and Efficiency Camnittee
Dinmer at Metropolitan Club for members of Federal Reserve banks
Jan. 29, 1923. 43
assisting the.

-108-

Elliott, M. P.
Conference with Federal Reserve Board.
Cost of examination of Pacific S. Wet Savings and Trust Co. and of
Bank of Italy.
20, 21, 22
Dec.9, 1922.
See - ExaminLeti ons
Willis says Elliott, when Counsel, advised Board that banks had legal
right to examine a check drawn upon it before being called upon
to pay it.
April 20, 1923. 93

if relao.f. itiat bem,ott t
• el,"2: J. el ,c-r ?..ory

it
quo
tat"
:torcciLo
.u.r? *
C.tut..:1 &UV

(•;2* ai41101G-4)0

Appears before Board with W. G. McAdoo to obtain authority for Bank
of Italy or its auxiliary committee, to purchase a bank in a
May 22, 1923. 125
precarious condit ion.

1.45(614.1P

Asks permission to file a brief with Attorney Genral as to construction
of Section 9, Fedval Reserve Act.
June 11, 1923. 148, 149

Tells C.S.H. Gov. Crissinger told him that Board was to ask an opini_on
of Attorney General. 149,154

ce4 cr. 491144, mega e€ naeona
nilln.-7;71
eti.1
,
teztrit
bigot:a
Ta&S
rt,1::-'11,i, • 4 , It
*1-1 %fib 34..13et
(NS .
,41 .oet

is singer to show him new report of Federal Res:rye Agent
Asks Gov:
Perrin as to Yuba City. July 31, 1923. 159
.

nu."
t4tST10.114 !fr.ve.tei: vilt "of to?
gj .FAA• r •.

rte

rostfif:

m
t.

leo! 10

oirssfroe

Tells C.S.H. that the committee is to report a branch bank resolution
on Friday.
Oct. 31, 1923. 177, 178
Told Board years ago it vas responsible for salary given to Smithson,
the Chauffeur of Dr. Miller. 1 97

A,
Europe
H.P.H. and Anna sail on Volenda.r. for Europe.

sSesea

April 14, 1923. 88

Examinations of state bank b r-tic he s.
Gov. Crissinger brines before the Board. two national bank examtners
who stated that there should be at least one competent examiner
and. two competent assistants at each branch.

Herson concurred in this.
neduard
.

sAtlad evict eeki Lomat.-

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Federal Reserve Bank of St. Louis

ee:SletattO 'tone'
11.41',01.
Vt. • ,
.

Dec. 5, 1922. 13

GOV. C. said. California had only 8 examiners and could not examine e.g
the Bank of Italy without borrowing Federal Reserve examiners, to
which he was bitterly opposed.13

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Federal Reserve Bank of St. Louis

-109-

Examinations of state bank branches (Cont.)
Gov. C. said. that he would refuse a national bank charter to the
13
Bank of Italy with its 65 branches if it applied for a charter.
a
Gov. C. dii not deny that our Board could examine state banks with
large number of branches, but said the expense would be inordinate,
i.e. that size was a factor. 13
said. the Federal Reserve bank or the Board. is obliged under the
statute to exanine state member banks unless the Federal Reserve
bank ac:epts the examination of the ctate authorities. 33
Gov.C. insisted that the Board should take the same view as to size that
he did.. 13, 14.
C.S.H. points out that it is for the Board to determine this question.
14
Gov. C. urges Board to refuse further applicstions of California state
banks for branches, on the ground that California examinations
are inestequate. 14
C.3.II. said it wculd be monstrous to permit the Bank of Italy to
retain its 65 branches and. at the same Ursa to refuse a similar
privilege to other state banks whose condition might warrant an
equal number of branches. 14
C.S.H. said that if it really is impossible for the Federal Reserve
Board or Federal Reserve Bank to examine a state bank with 65
branches, logic suuld seem to demand that the Bank of Italy should
be forced to give up its membership in the Federal Reserve System.
14
Gov. C. said. he dii not insist on this, but wanted to prevent any
more branches, as California was dumping them on the c arssuni ty
with the feeling that the Federal Reserve bank would. examine them.
14
C.S.H. said the Feders1 Reserve Board or Federal Reserve bank must
examine them, whatever the expense, if it does not accept the
examination of the state authorities. 14
Gov. C. said this wculd impose an unjust tax on the coin.unity, even
though the bank examined must isay it. 14
C.S.H. and Platt pointed out that the national bank examiners admitted
that it was no :ncre difficult to examine 65 branche than 65
unit banks. 14
Gov. C. said that lending our examiners to the state s.uthcrities made
the p ublic think they were Feder al Reserve axaminaticns. 15

ilL

-110-

:
1

Examinations of state bank branches (Cont.)
replied that the Board could. is.ue a public statement
would -leer this up. 15

t
r

) /Jas(
tie I .f

•

"
'43

of
One of the national bank examiners asked C.S.H. just what the scope
a Fe:13ral Reserve examination should be. 15

.',JraZoe *. eaLtrJi

• .0

;./

t!'.7 •

••••
•

e .1

j
Mr6
•

.1.

efl;!

v'eeE

;77. .•

J. L

1*Oct:fa

te,:v u J

:rd

A:dt,:(X-::

r=rY
•

njc.70,..:?-t c4

kisl

C.S.H. replied that it should be a careful, thorough examination of
the condition of the bank and branches fromthe point of view of
solvency, general management, etc.; but that the Federal Reserve
bank should not triderte to .scertain -thether the bark ..vas violating
the California state banking Act, - providing, of course, that the
bank is in good condition; that Federal Reserve examiners should,
of coarse, report any violations of the Fed.:ral Reserve Act.

.1 1/ eL

• 1 ,.1
, 31:1,f

which

C.S.H. added that if the Federal Reserve Board should adopt this policy
and. make it public, it would throw the burden upon the state, c.nd
that California %,:culd have to make larger appropriations for btate
exA-rrii nat ions. 15

4o v.'.

i41 g•

, Lir..

2i; 1

.";11

—

e.t...t..01

•

). CC.

d 4

:;:

a'
1 kiri.."If7i.tC.

..1
er,

:1,t4
t V

,770

.v30
9'1w:

VJ i: I lc 01 c.•4
e.

ct..)1342.

1
..:

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Federal Reserve Bank of St. Louis

al ed

0.13

r_ ;
, qj

Section 9, however, authorizes banks to enter with branches and. with
all their charter powers, subject only to reasonable re,ulations
and. lawful conditions imposed. by the Boara, and the Board must
exaniro then (a) when they apply for admission and. (b) after admission
unless the examination cf the state authorities be ac .- .epted. 16

skie.

i';e/Ot :t

o!' i

14.1 • . . .
10 L..,

48 f_J
saw

Tcr,

rSj

.r, t.t• 1 , 0: r4

C.S.H. believes the Federal Reserve syn tem ought to loan its examiners
to the state authorities, but that it might be well to impose
reasonable limitations beyond vthich it will not go.

:alt3

.t.

firi.ti

1..J _a

./Lie

v. h

t. rs

ic.i

ili4.JC47

rl`

,• , ,
oft

•

0,1

(t.:tr;!"

C.S.H. believes that California, wIth only 8 chief examiners, can not
adequ.ately examine banks with a large number of branches, ans. is
F.R. assistance to do work she ought to do herself. 15

4r.m4
,"4 A

I
f

bt*.

.0
o

r, 0

:“0 LL LJJJ
'
'

•

is'. ;a.

.q. .0

C.S.H. thinks the Board mighttfor the present, limit branches to the
maximum now authorized. for any state bank (Bank of Italy with 65
branches), permitting other banks to have this maximum if otherwise
qualified.. 16
These national bank examiners were asled to examine the last report of
the Bank Superintendent of California on the Balk of Italy. They
did this hurriedly and reported. that they had no objections to
offer as to the form of the examination, but that the findings in
the report as to daabtful assets were more favorable, than in the
case of the most conservative New York bank, - the National Ban, of
Com:erce, - and that this made them suspect the Bank of Italy report.
16, 17

h OW :
.-43n,

.triu
"

Miller pointed out that many California merchants borrow in New York
and not in California and that they were the cnes who had svf fared
most. 17

-111-

Examination of state bank branches (Cont.)
Miller also called attention to the fact that Federal Reserve Agent
Perrin said the Bank of Italy hk.id beanluanaged in a careful,
conservative manner. 17
')elieves is ra_dly opposed to state bank
Gov. Crissinger,
banks can not have branches, and.
national
branches because
practically to declare war
Lir
so
go
C.S.H. fears he will
17
branches.
bank
against state
C.S.H. feels that Gov. C. thinks only in terms of the national bank
system, while the Federal Reserve Board must consider all member
banks, - state as well as national. 17

.1.•

•

1 1.A
.

••

Board. has conference with M. P. Elliott as to examination of state
Dec. 9, 1927.. 20
bank branches.

C.S.H. read from Vol. 4, Federal Reserve Bulletin, showing that Board
laid dem the principle of cooperation with the state authorities
as to examinations, the examinations to be rn;)--le, how )ver, by the
state authorities. 20
Elliott asked Board to reverse its d;cision that the coat of
examination of Bank of Italy and Pacific South West Savings &
Trdst Company must be paid by these banks respectively. 20

•
)
•

Board 1.14.ta rested its decision on the assumption that these xaminat icn s
had., in 11:-ct, been ix.4e by the Federal Resvve bank, assisted
by the state authoritie.. 20

:A
Is.

1- r
(.F.) mr":

Elliott read. telegrams fran state banks stating that Federal Reserve
Agent Perrin made an agreement with thegp, before they entered
the Federal Reserve syAtegn, that they should be exasined without
cost to them. 20, 21.

EZ "I

WIT

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Federal Reserve Bank of St. Louis

, a,

C.S.H. believes any such agreement must have _ram out of the
practice of acceptin,. the state examinations, which the circular
of November, 1918, stated hal always been done in the past. 21

Question now is, - what shall be the rule for the future. 21

—

'cn

:ze

Wyatt advised Board that it had authority to loan examiners to
supervise zuld assist in state ex.min.e..tions without assessing
the cost in the bank examined. 21

•..t 03

Li,

—

EI i

Elliott said the expense of state bank examinations by the California
authorities Ass paid from a fund. contributed to by the state banks
in proporticn to their resources. 21

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Federal Reserve Bank of St. Louis

-112-

Examination of state bank branches (Cont.)
of the great expanse
Elliott practically admitted that, in view
the assistance
involvad,the state authorities were relying on
of federal Reserve examiners. 21
were sameWhat
C.S.H. feels, in view of PerrLai s agreement, they
justified in so relying. 21
the practice is
The Board voted to ask Perrin to report just what
t cost, to
withou
as to furnishing Federal Reserve 3xaminers,
assist in state bank examinations.
Dec. 12, 1922. 21, 22
little help from
Elliott said that California state banks could get
ts were savings
deposi
their
of
the Federal Reserve bank, as most
cted,
restri
y
closel
was
deposits, the investment of which
22
paper.
cial
furnishing but little eligible commer
reserve r crair anent
C.S.H. feels that this fact, coupled with the 10%
claim that
their
to
equity
gives
for special savings deposits
examinati,ns
bank
.Aata
in
assist
should
the Federal Reserve system
22.
cost.
t
by state authorities withou
bank to lend say
C.S.H. feels, hoNever, that for the Fedlral Reserve
too far. 22
going
is
8,
only
has
60 examiners when .California
examinations.
McAdoo tells C.S.H. there is no necessity for simultaneous
January 17, 1923. 38
because
C.S.H. votes against El Centro 4pp1ication of Bank of Italy
e
becaus
and
it,
ed
approv
not
hal
Perrin
Federal Reserve Agent
was
ter
mat
vdhic:h
ation,
examin
of
ulty
it wouli enhanc e the diffic
still pending.
March 6, 1923. 57
the
Jchnscn, Bank Superintendent of California, tells Board that
that
and
ly
actori
satisf
cut
worked
be
can
examination question
ly
aneous
simult
es
its
branch
and
Italy
of
Bank
he can examine the
and
ng
auditi
the
from
clerks
by
ted
with his force augmen
l
other departments, together with such assistance as the Federa
him.
give
Reserve bank would
June 4, 1923. 146
Board committee reports a resolution to effect that state banks with
numerous branches can not be examined satisfactorily either by•
the Federal Reserve bank or by the state wIthorities.
August 2, 1923. 160
(Above was a nwtor sae" in connection with the disacproval of two
branches.)
Exaudner, National Bank
See - Brewer

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Federal Reserve Bank of St. Louis

-113-

Examiners, National bank. 13, 16, 17
See - Examinations
Exchange charges
Gov. Crissinger favors an amendment to Federal Reaerve Act to
permit exchange charges, ,ayIng that as prospective Governor
of the Federal Reserve Board he had rsceived many letters
favoring this.
C.S.H. said our fight has already been won, and that business
interests would unanimously oppose such an amendment.
C.S.H. hopes Crissinger has made no pledge as to this.
January 29, 1923. 43
C.S.H. fears the exchange grafters have got hold of Criasinger.
April 4, 1923. SO
Expenses and dividends. 4,5,7,8,77,78
See - Dividen&and expenses, Federal Reserve banks

-FFarm Bureaujederation, Iowa.
Cunningham, before becoming a member of the Federal Reserve Board,
introduced and put through a resolution at a meetint of the,
condemning the subsidy (ship) bill, the pet hobby of President
Aay 5, 1923. 111
Harding.
Farm Loan Board
Laden, Chairman, ismes a circular discouraging 3 year loans
under the agricultural credits Act and advocating the formation
of subsidiary banks for loaning purposes.
Under Sec. Gilbart questions his ri,lat to issue a circular Nithout
the approval of the Sec. of the Treazury.
Bit ter dispute.
Analysis of the correzpondence.
March 27, 1923.
70 to 75 inclusive.
Farmer, Dirt
Sen. Kellogg responsible for putting a dirt farmer an F.R. Board.
Dec. 28, 1922. 33
See - Campbell
Cunningham
Farragut Square, 919
We move into.

Dec. 19, 1922 186

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Federal Reserve Bank of St. Louis

-114-

Fasciati
Harriet Hamlin explains to President Wilson as to.
Dec. 27, 1922. 30
Federal Advisory Council
Question of dividends and expenses came before Council in. 1916
5, 6
Forgan insisted Federal Reserve banks must earn.

Open market purchases of Govt. s.ecurities. 7
Advises incr!ase in discount rate frcm 4 to 4% at Boston, New
York, amd San Francisco. Fob. 20, 1923. 47
Ball, of Federal Advisory Council indorses Talley for Federal
Reserve Agent at Dallas. 49
Meeting with peddral Reserve Board.
May 21, 1923.
Cuban agency discussion. 121
See- Cuban agency
Dawes congratulates C.F.H. on his remarks on Cuban aFency at
,lboWS mating. 129
The Council objected to any Cuban ,,,gency, but C.S.H. thinks as
between Atlanta and Boston, they favored Atlanta. 142
, attend lunch of C.S.H. to executive coanittee of
Three membert,
Naticnal Grange. Feb. 28, 1923. 54
See - Farm Loan Board
leaeral Reserve Act
Gov. Crissinger favors amendment to permit exchange charges.
Jan. 29, 1923. 43, 44
Federal Reserve Agents.
Atlanta, 133, 134
See - Cuban Agency
McCord
Ottley
Smith, Hoke
Wellborn
Boston, 135
See - Boston
Bullen
Cuban Agency
Curtisa
Morss
Washburn
Hardin, Gcv.

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Federal Reserve Bank of St. Louis

-115-

Federal Reserve Agents (Cont.)
Chicago.
Diecount rates. 81, 85
Cleveland
Disc cunt rate discussion.

Dallas 41, 52
See - Brewer
Collier
Mitchell
Talley
Discount rate discussion, Direct control
1,2,3,4,7,8
132, 133, 134
New York
See - Cuban Agency
San Francisco
Direct control. 11, 12
Federal Reserve Board
Discount rates, direct control
1, 47, 48
Federal Reserve Banks
12
See - Mitchell
Rezerve Agent, Dallas
Federal
49
Central bank
Cuban
New
61
committee
market
Open
79
operations
market
Open
85
Agency
Cuban
107 ,108
Federal Reserve notes
114
Miller attacks Box d.
Branch banks
120
Cuban Agency
123
see

- Cuban Agency
Branch banks
Dividenis and expenses
Cuban agency
Federal Reserve notes
California special savings accounts

Federal Reserve branch banks
See - Branch banks
Little Rock branch
Foulke
Eddy told Wyatt that Foulke was not dclng good .v'k; told C.S.0
just the opposite
195, 196
Federal Reserve notes
Gov. Harding tells C.S.H. that principal .lifficulty with Cuban
agency relates to Bederal Reserve notes of other banks
that Atlanta. Max.9, 1923. 59

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Federal Reserve Bank of St. Louis

-.116-

Federal Reserve notes (Cont.)
Taussig sees no objection to stating reserve against notes and
deposits separately. April 19, 1923. 89
Is wzainst at andiLent m'-kin Federal resirve notes issuable only
against commercial paper. April 19, 1923. 89
out 40 millions of Federal Reserve
Gov. Wellborn says there are
notes of Atlanta in circulation in Cuba.
April 30, 1923. 101
See - Cuban Agency
Board agreed that only issued notes could be deposited at Havana
Mav 1, 1923. 103.
Dr. Maier attacks past policy of Board in not restricting the
issue of Federal Reserve notes.
May 10, 1923. 114
to. obtain Federal
Miller says real reason for rediscount in
d its control
had
surrendere
Board
tne
that
notes;
Reserve
in a
acted
had
Board
t_e
that
directors;
ossible
c
to 114L
of
ed
issue
unrestrain
that
manner;
negligent
shamefully
Federal Reserve notes was responsible for the inflation.
C.S.H. said he would later reply to this attack on farmer Board
members. :lay 10, 1923. 114, 115
See - Miller
Gov. Harding says 100 million of Federal Reserve notes will be
required in Cuba, under the agency, as they would displace
other form of American money.
May 151 1923. 117
C.S.H. says Cuban agency primarily is to assist American trade
and kaerican banks, and that Federal reserve note question
is only incidental. 118
Warburg suggests that Board shou.11 deposit Federal Reserve notes
with existing Cuban banks, taking out =edits on which
Cuban _exchange could be sold; that said notes would be cash
in the local banks. 135
See - Cuban Ai,ency
Miller
Gold reserve behind Federal Reserve notes
Sae - Miller
Federal Reserve system
C.S.H. delivers a lecture on, at house of George Hallin at Marion
August ;31, 1923. 154

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Federal Reserve Bank of St. Louis

-117-

First National Bank, Boston
See - Cuban Agency
Wing

102, 103, 118

Foley, League of Nations
much pleased
President Wilson tells C.S.H. that ha is vary
an the L. of N.
eb
spsech
his
of
with Foley's collection
177
1923.
Oct. 31,
Forbes, Cameron
Philippines, used
Dr. Willis sAys Forbes, while Governor of the
.
some of the reberve funds illegally to build roads
91
1923.
20,
April
ment in their
Dr. Willis criticizes Forbes and Gen. Woods state
ituted ont
report that the Philippine National Bank const
ng. 92
of the blackest chapters in the history of balki
several banks
Dr. Willis says conditions were no worse than in
in U.S., e.g. the Guaranty Trust Company. 92
Ford, Henry
that Hearst
Mr. Howell, of Atlanta Constitution, tells C.S.H.
for
and Idunsey (N. y. Herald) woull come out for Ford
President. June 8, 1923.148
Forgan

France

3arn axpens-s
Said. sol-Le y3ars ago that Fed3ral Reserve banks must
n
and dividends; that this would involve no more competitio
new
csaa
of
with member banks than would the establishment
large bank in Chicago or New York. 6
ing the
Admiral Niblack says France now sees her error in favor
her
n
throw
Turks against Grat Britain, as Turkey hell
down as hard az she did Great Britain.
Nov. 10, 1922. 9

-GGalt and Brother
gen,lral
mrs. Wilson postpones dinner for C.S.H. because of death of
manager of. Oct. 16, 1923. 176
Gaston,W. A.
that
S:n. Walsh (Mass) tells C.S.H. that Gaston is a corruptionist;
to
ed
refus
he
that
or;
Sanat
for
be bought his namimaticn
large
on
tax
income
of
tion
take issue with Lodge on reduc
incor,Ies; t:at if he had been elected there would have been
a scandal wcrse*than that of Newberry. Jan. 1, 1923. 36

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Federal Reserve Bank of St. Louis

•

Girard, James
d at Newport as she said
Mrs. Wilson declines to lunch with Girar
accept no hospitality
har
Mr. Wilson vivuld prefar to have
from him.
Aug. 28, 1923. 163
Gilbert, Under Secretary.
e out word "primary" from
Asks Federal Advisory Council to strik
seauritis primary
their recommenat ion that in buying Govt.
n,z, and Council
aarni
to
consideration should not be 4ven
7
does this. Oct. 13, 1922.
the picture of Sec. Carlisle
Tells C.S.H. he had issued an order that
told him of the controversy
Anna
should remain in C.S.H.Is room.
between C.S.H. and Asst. Sec. Moss as to the.
March 25, 1923. 66
March 26, 1923. 67
Far— Loan Board
Controversy between Gilbert and Lobdell of Federal
4proval of the
ut
witho
lars
circu
issue
to
as to powr of Board
March 27, 1923. 70 to 75
Sec. of the Treasury.
Glass, Senator
the Exchequer.
Attends dinner of C.S.H. to Baldwin, Chancellor of
Jan. 15, 1920. 38
nominated for
Speaks to C.S.H. as to charges .1gainst 'AcNary,
Comptroller of the Currency. Jan. 30, 1923. 45
Votes in comuittee against confirming AcNary.

1,4,1r. 4,1923. 55

ts to secure
Speaks with contempt of Senator Pepper for his effor
6, 1923. dB
confirmation of McNary.
ncipled scoundrel;
Tells C.S.H. that John Skelton Williams is an unpri
tiously
that he had prepared a speech denouncing him, but incau
n
Hefli
told Sen. BroOkbart of it; that Brookhart told Sen.
the
of
who got the floor and talked 7 hours up to the close
session, thus preventing him from spookily.
Mar. 6, 1923. 58
better man
Tells C.S.H. that Campbell, the dirt farmer, is a much
iciLn
than Crissingar; that Crissingsr was evidently a shrewd polit
heard
had
he
as he had obtained the support of Sen. Heflin; that
that Crissinger had said he did not approve of the policies of
had
Gov. Harding ncr of the Board; that he feared Cris singer
given pledges as to his future action.
Mar. 6, 1923. 59
C..H. sends telegram to Glass as to clearing aecision of U.S. Sullreme
Court, stating also, at Miller and Crissingerls request, that
they regarded it as a body blow at th P.R. clearinc syotem

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alouttnIPUIEN.1016

-119-

Glass, Senator (Cont.)
so regard it.
but adding that Platt and C.S.H. did not
152
1923.
June 12,
Gov. Crissinger, viho
Glass has interview with C.S.H., Platt and
- Glass —ays he
ion
decis
changes his views on clearing
so as to find him,
views
his
ng
will send him a letter quoti
and praising them.
June 16, 1923. 154, 155
Goff, Frederick
bexer.
C.S.H. attends funeral of, a. honorary pall
63
1923.
17,
March
Gold exports
See - Hoover
Taus sig
Gold reserve
y statement, to
Elovainors wanted Board to put a foot note in weekl
billion dollars
effect that the Federal Reserve system holds one
at no distant
of gold, really in trust to pay it back to Europe
lan_e as it
date, and that therefore Qtr gold, reserve iz not as
seemed to be.
Miller vehemently dbjected.
•

Mar. 27, 1923. 78, 79

See - Miller

er held by F.R.
Taussig believes that allg o ld reberves wheth
in Federal
Agents or by Federal Reserve bank should be included
their
in
notes
Rehlrve bank assets and ll Federal Reserve
April 12, 1 923.

Government securities
purcha es by
Discussion as to effect on Treasury policies of
securities.
Federal Reserve banks in open market of U.S. Govt.
1922.
Wt. 13,
3,4,5,6,7,8, 76, 77, 78, 79
See - Dividers and expenses
Governors Cbnference
Oct. 13, 1922.
y. Direct action.
polic
rate
u@t
Disco

1,2,3,4,78

Purchase of Govt. securities in open market. 1,2,3,4

rtT'

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Federal Reserve Bank of St. Louis

-120-

•

Governors Conference (Cont.)
Conference.
March 27, 1923.
savings deposits
Rea3rve against California special
76
Votes, 7 tb 5, for a 10% reserve.

•

76, 77, 78
Canmittee on open market purchase:.
Grange, Farmers
Coi.,..ittee of.
C.S.H. gives lunch to Executive
Feb. 28, 1923. 54
Mrs. Wilson xtiresse.

Sept. 1, 19Z3. 164

Grant, Mrs. Fred
the Exchequer Baldwin
dinner of C.S.H. to Chancellor of
At
. 33
1923
Jan. 15,
Grew son, Admiral
t Wilson's treatment by President
Gives H.P.H. a version of Presiden
of burial of unknown
Harding end Sec. Weeks on occasi on
ident Wilson.
soldier, differing from that of Pres
. 31
1922
Dad. 27,
d at the Empress Dowager Sen. Saulsbury says he was disEuste
Tumulty-Grayson combination.
Dec. 5,1923 185
Great Britain
siding with the Turks
Admire]. Niblack s-ys France now regrets
hxl turned France down
s
Turk
against Gre,%t Ititain; that the
ain.
as hard as they did Gr3at Brit
Nov. 10, 1922. 9
Sae — Grey, Lord
Greece
Turk as against Greece;
Admiral Nibk said he was frankly prothe Greeks, etc.
that the Turks were better and cleazer than
Nov. 10, 1922. 9
Grey, Lord
he hal arranged with
Vice President Marshall tells C.S.H. that
that it would
Lard Grey to have the British Govt. announce
ue of Nations, and
accept the Senate r a I.ervati cm to the Leag
ce him to say
tried to get an interview 'with Wilson to indu
ty with the
that if the Senate ratified the Versailles Traa
t Britain and
Lodge reservaticns he would send it to Grea
rView it th Wilson
not tear it up, but he could not get an inte
Dec. 5, 1923. 185

AIM

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Federal Reserve Bank of St. Louis

We, Rachael (Mrs. Chandlftr Hale)
and called. C.S.H. said
C.S.H. made an appointment with Mrs. Hale
her nephew colAng
Gertrude Myer vas almost in a frenzy about
d she would start
to Washington to live, and that C.S.H. feare
ude had great faith
a vendetta agL.inst him; C.S.H. said Gertr
brakes an her lest
in her judgment, and alvised her to put 'Jae
she thouifht the
she might do something rash. Mrs. Hale said
heard rumors that he
nephew wai; a worthlezs fellow; that she had
blame Gertrude
had even committed forgery; that she could nct
Society, but that she
for not want •ng to help him in Washington
ially while the
should be decent and pleasant with him, - espec
was almost beyond
will controversy was pending; that Gertrude
f-::11 of insanity;
the border line of amity; that her family was
was most mercenary;
that ihe dia not regard her as normal; that she
few weeks ago she
a
almost violent in her likes and dislikes; that
house, but that
own
had practicaly insulted her (rs. Hale) in her
even her
ugh
as an old friend, she had to overlook it, altho
her.
ed
children had noticed it, and thoroughly disIk
out Mr. Norton and she amazed him by saying that
C.S.H. asked her
told Norton
Gertrude had told her that, a long time ago, she had
that he marry
ded
deman
and
that his attentions haa compromised her
if she
that
but
her,
her; that Norton told h 3r he did not love
came of
ng
nothi
e,
cours
of
insisted he would marry her, but that,
this.

She

brother ,,hould
also said that Gertrude took good care that her
Catholic and
Roman
a.
e
becom
not .sarry; that she feared he would
leave all his =nay to that church.

making Norton And
She also said Gertrude some time ago made a will
to serve.
want
not
did
herself executors an.l. tat she
ude and fully agreed
C.S.H. said she aught to .)ay ths at once to Gertr
sake, not to serve
om
her
with her that it we ld be better for
in such capacity.
very unha-Ty
Mrs. H. also said she was convinced that canon Myer was
about
asant
unple
hing
g
somet
and that Gertrude was almost :rin
the church.
Nov. 25, 1923. 181, 182, 183
Harlin, Anna
Gov. Harding says people in Washington are commenting on our
ly,
partisanship and thinks Anna may have been talking incautious
ve.
t
a
belie
mommm
tor
which C.S.7-1. does not
Dec. 24, 1922. 26
for
Anna tells Under Secretary Gilbert about Asst. Sec. It:oasis demand
the
in
room
.Is
ng
k
C.S.H
hangi
sle
Carli
the picture of Johh G.
March 24 1923. 66
Treasury.

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Hamlin, Anna (Cont.)
Mr. Wilson sends warmest regard:, to Anna.
Sept. 25, 1923. 173
Hamlin, C. S.
International Peace.
Elected trustee for Carnegie Foundationf or
97
1923.
April 20,
foot for his birthday.
President and Yrs. Wilson give C.S.H. a rabbit
163
123.
Aag. 0,
See - Branch banks
Branches, F.R.
Cuban A_ency
Dividends and Ex,)enues
Examinations
Glass
Hoover
Pension plan
Vote,
Wilscn
Other headings.
Hamlin, Edward, Mrs.
20, 1923.
Mrs. Catharine Hamlin died 2 a.m. September
C.3.H., H.P.H. ant Anna attend fun3ral.
Sept. 21, 1923.
Hamlin, narriet G. art. Jane
Viait us in Washington.

Dec. 22, 1922.

170

171

Take tea with President and Mrs. Wilson
Dec. 27, 1922. 29
See Hamlin, H. P.
.
Lunches with Mrs. Wilson and talks with President Wilson
Prepares meworandum of talk.
(See szrap book)
Wilson
See -

Nov. 24, 1922. 10

Stays at Mrs. Delano's house from Nov. 16 to Nov. 25.
Nov. 16 ,1922.

Giv3s luncheon for Harriet and Jane liwain.
Present: Mrs. Wilson, Mrs. Bayard, Jane Rig,s, at als.
Dec. 23, 1922.

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Federal Reserve Bank of St. Louis

-123-

Hamlin, H. P. (Cont.)
g H.P.H. for partisanship.
Gov. Harding says people are criticizin
C.S.H. denies. Dec. 24, 1922. 26
defending Wilson administration.
C.:3.H. says H.P.H. confines lirself to
Think Miss Patten is Gov. Harding's informant.
28
Wilson's.
Mrs.
and
dent
Presi
at
Takes tea with Harriet and Jane
book).
scrap
(See
ks
remar
n's
Wilso
Prepares notes as to Mr.
Dec. 27, 1922. 29, 30.
President Wilson's
Admiral Grayson gives H.P.H. an account of
vAlich differs from that
er
soldi
wn
unkno
tr!atment at burial of
of Mr. Wilson, Dec. 27, 1922. 29
See - Wilson
to Mrs. Harding.
C.S.H. sends H.P.H.'s sketch, - flParick"
Jan. 2, 1923. 36
Takes Mr. Hagerman to Pan American reception.
Jan. 22, 1923.

Senator Pepper is
Mrs. Pepper tells H.P.H. that her husband
changing his views as to the League of Nations.
March 4, 1923. 56
See - Pepper
Sails, with Anna, on Volendam for Holland.

April 14, 1923. 88

H.P.H. at
Mrs. Woodrow Wilson and Mrs. Admiral Helm visit
Mattapoisett Aug. 26, 1923. 163
See - Wilson
H.P.H. to his
Pr-3sident Wilson thanks C.S.H. for the kindness of
wife, with tears pouring down his cheeks.
sept. 4, 1923. 165
See - Wilson
Hanibara, Japanese Ambassador
H.P.H. iive dinner to.
C.S.H?
March 144 1923. 62
See - Anderson
Harding, Governor
H. for
F.R. Agent Curtiss says his board is considering Gov.
n.
of
Bosto
Governor of Federal Reserve Bank
Dec. 7, 1922. 18

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Federal Reserve Bank of St. Louis

.424...

Harding, Governor (Cont.)
tment of Gov. H.
Curtiss says some of Board fea that appoin
ent Harding.
Presid
at
slap
a
would be construed as
would be pleased
C.S.H. says he thinks Federal Reserve Board
t with
appointment and advises Boston Board to consul
19
1922.
7,
Sec. Mellon. Dec.

l that Gov. H.
Sec. Mellon tells press that he is still hopefu
20
1922.
7,
Dec.
inted.
will be reappo
Council) that
Warburg and Rica wire Mitchell (Federal Advisory
his name
Gov. H. had just told them that he had withdrawn
24
1922.
for further consideration as Governor. Dec. 16,
him to withdraw
Gov. H. tells .C.S.H. that Sec. Mellon advised
his name from further consideration as Governor, as
mation
President Harding felt that the apposition to his confir
int
reappo
not
would block legislation and that he felt he could
some
y
vaguel
him. Mellon said President Harding expressed
regret that he had not sent in his name earlier.
This ends this miserable incident!
Dec. 16,1922.

Goy. H. for
Charles Washburn calls and says Boston is considering
favored this;
ly
Governor; that Stockton, Aiken and Wing strong
construed as
be
that Beal, Hollis and Curtiss feared it muld
Mellon
Sec.
a slap at the aiministrati on; that he had seen
and Weeks Who both favored it as did he also.
Dec. 18, 1922. 26
ential talk
Gov. H. dines with C.S.H. and said he had had a confid
C.S.H., he
of
last Sunday with a lady who said, as a friend
family
his
of
that
should warn him that his bitterness and
on, ,:nd
ted
commen
much
aL;ainst the administmtion.was being
that he should. egatiOn. him.
with C S.H.,
Gov. H. said. he spoke of this becalm, of his friendship
who were
s
hunter
voila
ican
especially, in view of the Republ
to call
or
ats,
Democr
all
urging Preatient Harding to remove
for their resignations.
C.S.H. asked if he
being urged
and that he
this woman,

had heard frow any :_ource that the President was
to call for his resignation, can Gov. H. said No,
had spoken of this merely because of his talk with
*hose name he said he could not mention.

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Federal Reserve Bank of St. Louis

-125-

ily had publicly
Harding, Gov. (Cont.)
t neither he ncr his fam
C.S.H. told Gov. H. tha
on, but that,
ding or his administrati
criticized. President Har
n definded I t
eve
certain occasions
on
hail
y
the
ry,
tra
on the con
.
against Republican attack
ublican
had reproved certain Rep
.H.
H.P
n
whe
ce
tan
ins
President
C.S.H. cited one
vtho war C nastily attacking
women at a ladies luncheon,
and Mrs. Harding.
Roosevelt for
e where a wornan was praisino?
C.S.H. also cited one :las
President
h
wit
t it was in contrast
his courage, stating tha
cut a single
nt
poi
.H. :-.aid,“Can you
Harding's weakness, wiz n C.S
e
rag
cQu
the
eer which showed
instance in Roosevelt's car
ll"
bil
us
in vetoing the bon
President Harding exhibited
The woman became silent.
Freeman,
the wife of Dr.,later, Bishop
n,
ema
Fre
.
Mrs
.as
an
wom
(This
s to Gov. H.)
but C.S.H. did not tell thi
ticize the
upulously careful not to cri
C. S.II. said they were scr
would hesitate
er
nev
y n ?var had and
administration, but that the
administration,
son
Wil
the
attacks upon
to respond vigorously to any
rce.
at any time, and from any sou
ly Anna may
of this, ind added that possib
bt
dou
no
hal
he
.
said
H.
a mcslent
Gov.
t, - which C.S.H. does not for
have said. something indiscree
believe.
was getting
.H. asked him how Miss Patten
k with
When Gov. H. was leaving, C.S
he said he had ha, a long tal
along with her broken arm, :And
g the cat out of the bagi
her last Sunday, - thus lettin
or 3 weeks ago,
.H. called on the Patten., 2
The last time C.S.H. and H.P
of
with Josephine over the League
H.P.H. ha.:. quite 6. dispute
s to
ark
the rez
thInks this was what inspired
Nations, scald
Gov. H.
the
really a political question, but
The League of Nations is not
Republicans have made it one.
g asked for
would do if President Hardin
Gov. H. asked C.S.H. what hs
his resignation.
se,
that if the ?resident had any cau
C.S.H. said he would reply
he could remove him, an that he
under the Federal Reserve Act,
should le-Ave him tothat remedyl
he
ind this than Gov. H. revealed, as
C.S.H. believar. there is more beh
at their recent defeat, aril how
knows how bitter the Republicans are
gladly they would remove all democrats if they only dorsi.

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Federal Reserve Bank of St. Louis

-126-

dare to remove
Harding, Gov. (Cont.)
ant Harding would not
sid
Prl
r,
eve
how
s,
iev
his attempt
C.S.H. bal
bring befor3t1 e public
ld
wou
it
ws
kno
he
him, as
ks for his
bu3iness of the F.R. ban
to secure the insurance
tem into a
sys
.
s to turn the F.R
ort
eff
his
aw,
n-l
r-i
. etc.
brothe
to appoint Comstock, etc
wArhine, by the order
28, 29
Dec. 24, 1922. 26, 27,
him.
BOV. Harding c4led.
Boston wants to talk with
C.S.H. aid Curtiss of
nt to wit him at
tiss and made an appointme
Cur
up
led
zal
H.
.
2. 33
Gov
k, tomorrow. Dec. 28, 192
the Harvard Club, New Yor
ge New York
he has an offer from a lar
.H.
C.S
ls
tel
g
din
operations,
Har
Gov.
but one having large fiscal
5 years,
corporation, not a bank,
for
h an office in Washington,
0,000.
to act as President, wit
$10
of
us
per year and a stock bon
at a salary of $100,000
. 28, 1922. 33
ler was a ,took:holder. Dec
Mil
Dr.
d
sai
g
din
Har
.
Gov
F.R. Board. 33
would soon resign from the
ell
tch
:li
d
sai
H.
.
Gov
See - Mitchell
N. Y. last Wednesday,
that Charles Washburn in
Gov..H. called and said
him the
the directors, tendered
by unanimous request of
ton.
Federal Reserve Bank of Bos
position of Governor of the
Jan. 1, 1923. 34
g dii not
erene why President Eirdin
Mitchell tells Senator Pom
1923. 35
reappoint Gov. H. Jan.1,
doubts whether he
t Senator Reed of Pa4 had
Gov. H. tells C.S.H. tha
the F.R. Board
ssinger if appointed on
could vote to confirm Cri
tsburg.
Pit
at a recent dinner at
because of his lrunkenness
37
Jan. 7, 1923.
Crissinger for F.R. Board.
President Harding nominates
Jan. 12, 1923. 37
ncy.
.H. and speaks of Cuban Aze
Gov. Harding lunchea with C.S
60
59,
:Aar. 9, 192.
See - Cuban kency
. bank credits
l is very efficacious as to F.R
Gov. H. says direct contro
st Co.
Tru
on the Internaticnal
and says he used it recently

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Federal Reserve Bank of St. Louis

-127-

iscounts by
Harding, Gov. (Cont.)
t day, reduced its red
of Boston, which, the nex
$500,000.
Mar. 26, 1923. 69
in favor of 3%
ence af Governor_,, voAps
Gov. Harding, at confer
sivings deposits.
reserve against special
Mar. 27, 1923. 76
of Federal
amble in proposed circular
the amount
Gov. H. objects to a pre
the Board has pow -r to fix
Reserve Board stating that
U.S.
of
by Federal Reserve ban?s,
of open market purchases
Govt. securities.
144r. 27, 1923. 77
hin the district
acceptances originating wit
power of
Gov. H. points out that
thould be excepted from the
of a Federal Reserve bank
complete
be
ld
as otherwise there wou
the open market comlUttee,
country.
the
of
k at expanse of the rest
centralization at New Yor
Al]. J.greed to this.
Mar. 27, 1923. 78
amble in
sugge-tion to strike out pre
Vote in Board on Gov. H.'s
.
tie
rations resulted in a
circular on open market ope
April 3, 1923. 78, 79
reserves
plan of publishing separate
Gov. Harding says Miller's
rtle the
sta
l
Reserve notes wil
against deposits and Federal
March 27, 1923. 79
public.
3. 83
Cuban Agency. April 7, 192
Vrites letter to C.F.H. cn
See - Cuban Agency
101
Acency. April 30, 1923. 99,
Attends conference on Cuban
Seel — Cuban Agency
on Cuban agency.
.ittends another conference
See- Cuban agency.
•

May 7, 1923. 107, 109

ough
sends :esage to Gov. H. thr

. May 15, 1923.
Attends hearing on Cuban agency
See - Cuban agency
▪

:lay 9, 1923. 113,114
116, 117

ks to Gov. H.
sag,ests designating both ban
May 23, 1923. 128
See - Cuban agency

ton.
C.E.H. tz.lks with Gov. H. in Bos
See —

COan agency

lay 26, 1923.
130,131,136,139

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Federal Reserve Bank of St. Louis

-128-

Harding, Gov. (Cont.)
ncy.
a memorandum on Cuban Age
Gov. H. mails C.S.H.
2
13
May 26, 1923.
See - Cuban Agency
Ws letters etc.
Board considers Gov.
May 29, 1923.
e

140

settled.
him whole matter was
Lodge says Gov. told
may 29, 194.3. 141
accepts double
with Gov. H. in Boston;
0.3.H. has interview
3.
resigna.tion. June 18, 192
3. 156
192
20,
June
itions to Wyatt's draft.
Gov. H. suggests add
June 26, 1923. 157
Said he wrote
C.S.H. at !tta.poisett.
day
Sun
s
rxi
spe
ter he wrote
H.
let
.
Gov
n to publish personal
Mr. Wilson for permissio
hequer notes,
Exc
h
stats.Lent as to Britis
Wilson
him approving Board's
ing
d in a brusque note say
but that Bolling replie
nt it in his bcok.
declined to have him pri
Sept. 22, 1923. 171
ointment of Gov. H.
Harding, President
directors fear that app
may be
Same of Boston Board of
Reserve Bank of Boston
as Governor of Federal
President Harding.
construed as a clap at
Dec. 7, 1922. 19
ent Harding to
be an affront for Presid
over head of
Mitchell says it would
Governor of F.R. Board
designate Crissinger for
24
Platt. Dec. 16, 1922.
s naLle from
. Harding to withdraw hi
Sec. Mellon a.ivises Gov
could. not
sident Harding said he
consideration; that Pre
ld block
wou
ht on confirmation
reappoint him, as the fig
uely awe
vag
sed
ent Harding expres
legislation; that Presid
expiration
cn
r
lie
in his name ear
t
sen
not
hal
he
t
tha
regret
2. 25
df his term. Dec. 16, 192
. H. as Governor
t the appointment of Gov
Washburn tells C.S.H. tha
Harding as a
ent
felt by Presid
of Boston bank will not be
22. 26
19
ration. Dec. 18,
slap against us actninist
ssure upon
has not heard. of any pre
Gov. H. tells C.S.H. he
s) resignation.
H.1
l for his (.C.S.
President Harding to cal
3. 27
192
24,
Dec.

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Federal Reserve Bank of St. Louis

-12r3-

Harding, President (Cont.)
n.gives Gov. H. instances where he and H.P.H. have defended
?resident Harding. Dec. 24, 1922. 27
See - Harding, Gov.
C.S.H. tells Gov. H. he md H.P.H. have been scrupulously c-reful
not to criticize President Harding.
Dec. 24, 1922. 27
Fee - Harding, Gov.
President Wilson spoke to C.S.H. in terms of contealpt for
President Harding; he said he was absolutely servile, - a
follower and not a leader.
Dec. 27, 1922. 30
President Wilson tells C. .11. of the treatment he received from
President Harding and Sec. Weeks at the burial of the unknown
31
fee. 27 19"
soldier.
Zee - Wilson
Mrs. Wilson tells C S.H. of the sudden cessaticn of flowers from
the Department of A7riaulture whicn Sec. of A ric. promised to
send her, on the order cf sane one "hif7ner up" presumably
President Harding. Dec. 27, 122. 32
Gov. ii. said Mitchell was utterly disgusted with Pre.sident H. and
with his failure to reappoint Gov. H. and that he would soon
resign. Dec. 28, 1922. 33
Mitcnell tells Sen. Pomerene that President E. refused to reappoint
Cov. Harding becaase F.R. Board would not appoint Comstock,
an utterly unfit politician, as F.R. Afent at Kansas City.
Jan. 1, 1923. 35
Vice President Marshall says he wrote Pres. Harding about F.R.
Agent Heath and added that of course he would not interfere
with agopoints Which the F.R. Board made under the statute.
Jan. 2, 1923. 35
Same years ago President Harding (then Senator) pranised to !live
C.S.E. some cc.ffee with the caffeine taken out. Mrs. Harding
Jan. 2, 1923. 35
sends some to C.S.H.
President Harding nominates Crissinger, aria Campbeil for F.R.
Board, and McNary for Comptroller of the Currency.
Jan. 12,1 923. 37
Mitchell and Crissingar showed him a letter from President Harding
stating that Creger (the Republican boss an, Naticnea Committeeman of Texas) had indorsed Collier for F.R. Agent at Dallas,
and that Collier ihould recAve the appointment (which as
solely within the jurisdiction of the F.R. 'Board, under the

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Federal Reserve Bank of St. Louis

-13C-

nt.)
Harding, President (Co
e Act.
erv
Res
Federal
Jan. 24, 1923.

the file,) of the
ding Atte not put on
Har
ent
bid
Pre
of
case. 43
This letter
ters in the Comstock
Board as were the let
sign Camybell° s
. Calder he would not
President H. told Sen
was confirued as
ary
Board until McN
.
F.R
for
nt
tme
oin
upp
politics!
: :7/Amiga
":*"- -1
rency. This is 1.1 rty
Canptroller of the Cur
45
Fen. 9, 1923.
together with Sen.
an tells C. C.H. that,
hig
Mic
of
s
sen
Cou
Harding and told
Sen.
ock, he ?ant to Pres.
Pepper, and Sen. Hitchc
s az.ain:A
character of the charge
him that, in view of the
sident H. said. he
be cnfirmed; that Pre
McNary, he could not
hurry about it.
intimated there was no
insisted m a vote, but
abeyance for a long
ld probably remain in
wou
it
d
sai
s
zen
Cou
Sen.
sident H. intended
the iipression that Pre
time and gave C.S.H.
ore, lid not want
appointm-ent and., theref
to F:71V 3 him a recess
withdraw his name.
Senate, ani refused to
an adverse vote in the
.Feb. 101 1923. 46
k the appointment cf
Harding was holding bac
s.
Pre
d
sai
s
zen
Cou
.
Sen
nging pressure
Board as a means of bri
CunninghaL on the F.R.
McNary.
for the annfirrnation of
Feb. 10, 1923. 46
Crissinger voted for
F.R. Agent at Dallas;
do, but did
Board elected. Talley as
ding had directed him to
Collier as President Har
not fight for him.
Feb. 24, 1923. 53

• 4.. •

s Jones, and H.P.H. c,fter
dined with Senator Andrea
r that
C.S.H. and
wife of Republican Senato
dinner WILs told by the
eraployeas of
the
the order dismissing
President Harding e.igned
n intoxicated,
whe
and Printing one night
the Bureau of 7ngraving
rn "hat he
lea
was greatly shocked to
and that in the morning
3. 53
hal done. Feb. 23, 192
order and has
ently revoked the abcve
, but
President Harding has rec
their Civil Service status
restored the employees to
!
ons
k in their old positi
declines to put them bac
.
Feb 23, 1923. 53
y told
the Presid.ent, am the lai
sue
to
is
s
yee
plo
ehh
se
One of the
al.
C Offe3 out at the tri
R.P.H. above facts would
Feb. 23, 1 923. 53, 54

111

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Federal Reserve Bank of St. Louis

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Harding
Harding, President (Cont.)
. Watson lled up President
Sen
t
tha
H.
C..
ls
tel
ss
Sen. Cla
Senator.
him that scarcely a single
ot the telephone and told
man for
fit
a
was
ary
believed that McN
Republican or Democrat,
sident
Pre
but
a,
mit
to withdraw his
their
Comptroller, and begged him
put
t
mus
rs
ato
ed, saying the Sen
lin
dec
y
tel
olu
abs
g
din
Har
bellies up to the sawJ
March 6, 1923. 56
put it no:Linally
he is to resign. While he
rd
Boa
the
ls
tel
ll
che
Mit
spoke very
vate business affairs, he
as the ground of his pri
sidJnt
political inference of Pre
freely of his disgust at the
Comstock
of
s
rd, epecially in the cae
Harding with the F.R. Boa
and Collier.
March 13, 1923. 61
that President
State Department told her
Anna says a friend in the
r, but
t seized from a bootlegge
Harding's nanm was on a lis
t.
others in the Washington Pos
was not printed with the
62
3.
192
March 14,
ignation to
Harding had accepted his res
fram
Mitchell said that President
to us a very flattering letter
take effect Kay 12; he read
.etc
etc
e,
to his distinguished servic
. President Harding referrinz
him that he
ding yesterday; that he told
.
He said he saw President Har
President
ngs on the F.R. Board which
(Mitchell) had done some thi
was
he
d
that President Harding sai
Harding had not approved of;
recommendaBoard declined to follow his
greatly disturbed because the
the
of
er
pow
that he was the directing
tions, evidently Chinking
C
ss
Cla
the
t he Laid he had promised
Federal Reserve system, tha
ght
Kni
d
yet the F.R. Board electe
directorship to Mullens, ad
declined
h; that the Board had also
in full knowledge of his wis
t Hurd of
tha
York; eat he simitted
to appoint Leffingwell In niw
Comstock.
ut
, but said ncthin:: abo
Nebraska was a good a4;pointment
inted
that th Board had not reappc
Mitchell said he reminded hir
(the
him
on
e of his unfair attacks
Wolfe, of Cleveland, becaus
sore
y
ver
t
that he would have fel
negro rumor), and he replied
had we rUppcinted him.
had filled up
sident Harding's Secretary,
Mitchell said Christian, Pre
Federal
all
ect
had power to dir
Harding with the idea that he
ian was
ist
Chr
n,
t, in his opinio
Reserve appcintment&, and tha
"stinker."
April 28, 1923. 97, 98.
Sac. :Iellon
h in error as to Leffingwell.
muc
y
ver
as
g
din
Har
ent
sid
Pr3
oint him, C.!'.H. especially, as
and the whole Board wanted to app
Leffingwell was Counsel for a
an antedote to Gov. Strong, but
did
d he mid not accept as he
number of banks and himself decide

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Federal Reserve Bank of St. Louis

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-141/1C1r.ciic.. 4IJI:771:11

„ I- __ "''

Cf:;

7t71711ST,'.17771r..:14111.111"

Harding, President (Cont.)
with these banks.
not wish to sever his relations
April 28, 1923. 98
ncy.
with the Board as to the Cuban Age
Preside:nt Hardin .l: communicates
s
gram
tele
ed many letters and
He told Crissinger he hagi receiv
about the facts; that he would
ing
noth
w
he kne
...upkwommijoieb out it, but that
and the cabinet this morning and
take up the matter with Huehes
ne had
ion until we heard fran him; that
,i••••••••••••••sked us to take no act
also talked with Sec. Mellon.
May 8, 1923. 109, 110
•
S9C. Mall on
rd;
Boa
.
P.R
for
am
ingh
Cunn
as
President Harding naminat
ut him, that tlis was the first
told c.r.u. he knew nothing alao
azed and said he had
tly
he knew about it. lie seemed perfec
heard of hi s name as a candidate.
only a vague idea that he may have
This is politics with a veng3ancesi

May 5, 1923. 110, 111

that Cunningham at a meeting of the
Chappell of Kansas tells C.S.H.
osed and put through a resolution
Iowa Farm Bureau Federation, prop
- President Harding's pet bobby.
condemning the Ship Subsidy bill,
May 5, 1923. 111
rd a letter from President Harding
Gov. Crissineer reads to the Boa
rnational phases of the
stating that he had taken up the Inte
they unanimously were of opinial
Cuban Agency with the Cabinet, and
ble; that he requested the
that such an agency was most desira
no sagge:Aions to offer as to
Board to establish one; that he had
be designated; that he hoped
which Federal Reslrve Bank should
ter so as to create as little
that the Board could arrange the mat
May 9, 1923. 111, 112
friction as possible.
ent Harding told him that SAC. Mellon
Gov. Crissinger added that Pre.id
should be designated.
and all the Cabinet thought Boston
1923. 112
9,
May
ice as naemberb of the F.R. Board.
James and Cunningham tae oath of off
May 14, 1923. 116
es that President Harding and the
Gov. C. at CaJn Agency hearing stat
blishment of the Cuban Agency
State Department feel that the esta
of international policy.
is most important from the view point
3. 116, 117
192
15,
May
almkrs been a Democrat, he had
Ja...Jes tells C. S.H. that although he hai
1923. '19
voted for President Harding. May 15,
see President Harding tomorrow
Sen. Lodge tells Gov.. Harding he will
ish as to the Cuban Agency.
and will back up Boston to the fin
May 24, law. 128

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Federal Reserve Bank of St. Louis

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Harding, President (Cont.)
Prebident Harding dies.

August 2, 1923.

162

him.
ident Harding had great regard for
Mrs. Ho.rding tells C.F.H. Pres
Sept. 4, 1923. 166
Harding, President, %la's.
" to
of H.P.H.Is s:_etch of "Patrick
C.S.H. sent Laura Harlan a copy
Harlan
s
',le
A.M.
This
Harding who :IAs qui te ill.
read to
nsely
inue
ch
sket
the
yed
enjo
wrote C.S.H. sewing Mrs. Harding
caffeire
the
with
ee,
coff
d
erize
and she also sent a tin can of Ba".4
.And had promised to send to
extracted, v.hich she said her husb
C.F.H. some years ago.
er
this promise one night at dinn
President Harding (then Senator) made
but
at his house to deliver it
mid later told. C. S.H. he called
.
found C.S.H. me away on a vacation
this
in her 111n3ss to have remembered
It sserrAs extraordinary for her
episode.
Jan. 2, 1923. 35, 36
e: C.1.1.H. thanking him for some
Mrs. Harding, through Miss Harlan, writ
her.
fresh :.:attapoisett eggs he ha i sent
40
.
Jan. 23, 1923
train. She was very much pleased,
C.S.H. sees Mrs. Harding off on the
t Harding estesIned him.
and told C.0 Jr. how highly Prebiden
166
.
Sept. 4, 1923
sett the .veek of President
C.S.H. delivered an address in illattapoi
Mrs. Harding and sent her
Harding's death, speaking especially of
to call and see her
a copy with a letter, saying he wculd like
before she left Washington.
she wculd be ,lad to see
She replied through Miss Harlan soin;
any day.
called uo C.S.H. but found h.
Miss Harlan, in her letter, said she had
was out cf town.
s car was on a siding and he
C;.S..H. went to the train. Mrs. Harding'
ed doxn on th -1 train.
walted until it was pulled out arid back
and
gnized
Gen. Sawyer .. vas on the platforAl and reco
sed and
plea
much
was vary
brought him in to b e :eirs. Hard. ing. She
nbertn,-; her.
affected and thanked C.S.H. for rema
(President) Coolidge and
Gov. Crissinger later told C.S.H. that Mrs.
no other Cabinet officer.
Postmaster GenerA New were there it
165, 166
Sept. 4, 1923.

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Federal Reserve Bank of St. Louis

Ito
-134-

Miss Laura
see supra - Hard:21g, President, Ars.
Harrison, Gov. Gan2ra1
Bank 1:as dl
Dr. Willis tell.. C.S.H. th-t 1.3 PhIliprine National
on it made
right while he was President of it; that under Harris
personally
on
was
bad loans an! ;:ct into bad condition; that Harris
Tammany
unload
honest but of bad moral chracter; that he did not
rging
discha
not
In
politicians on the Islands; that his failure Alas
incorzoetent and corrupt native officials.
April 20, 1'223. 91, 92.
See Havana
See - Cuban Agency
•
•

Hearst. W. R.
tely
Mr. Howell, of Atlanta Constitution says Hearst will ultima
c(me out fcr Ford. for President.
June 8, 923. 148
c.0
)01,
.

Heath, Federal Reserve Agent

sing
Vice Presid ent Marshall says he 'rote President Harding indor
with
ere
interf
not
Yould
he
.Heath, adding that of :curse
l
appointments which the Federal Rerserve Board, under the Federa
35
923.
1
2,
Jan.
Reserve Act, were to make.

Heflin, Senator
out, thus
Sen. Glass 3ays Heflin got the floor and talked the session
n Williams.
Skelto
John
ini:
attacl:
make
tc
was
he
crowding out a speech
59
1923.
6,
:.larch
Hezeru.an

Takes supper with C.S.H.
Gives 0;in 1. on as to McNary.
Jan. 21, 123.
:30 -

McNary

H.P.H. takes Hagerman to Pan American rec3ption.
7
40
Jan. 2?, 1::12,:.
HegerInan again ta.lks with C.S.H. as to McNary.
Jan. 3C, 123. 44
Se= Hagerman writes

1_,, L.-up

as to MoNary.

Feb. 10, 1923. 46

zt. exa

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Federal Reserve Bank of St. Louis

-135-

poise - t.
Helm, Mrs. Admiral
. Woodrow Wilson, t "Aatta
Visits H.P.H., ?Jith Mrs
163
3.
192
Aut-a 26,
Leaves attarcisett.

Sent. 1, 1923.

164

dria Road,
at an inn off the Alexan
per
sup
a
e
,iv
m
Hel
l
: Mrs. Wilson,
Irs. and Al“Ira
Caspbell's house. Pr- sent
lip
Phi
Lan
ss.
gre
Con
next to
Mrs. Helm.
C.C.H. an.: Admiral and
saw the Green Goddess,
o town to the Rialto ,,,nd
After supper we drove int
Capt. 12, 1923.
an Arliss mcving picture.
169
later went
Mrs. Helm was then!, nd
ch
ghi
at
son
Wil
.
Mrs
h
At diriner wit
to the theatre.
Oct. 31, 1923. 177
re.
Helm. Mrs. Wilson was the
rs.
arid
C.O.H. dines with Admiral
Nov. 21, 1923. 179
Heron, Chief Examiner
See - Examinations
Hill, Philip
Congressman from Baltimore.
rs list. ':ar. 14, 1923.
Name appears an bontlegFe

Hitchcock, Senator
med.
t McNary can not be ccnfir
Tells Presid3nt Harding tha
Feb. 10, 1923. 46
1923. 55
t confirAntz 'IcNary. Mar. 3,
Votes in oor—ittee ocains
istice Day
manner in delivaring his Arm
Tells C.S.H. thEt Wilson's
164
6.
Dec. 3, 192
speech was almost imbecile.
Hollis, Allen
. Bank of Boston
Harding a Governor of F.R
.
Gov
of
nt
tla
oin
app
rs
Fea
p at ?resident Harding.
might be construed as a sla
Dec. 18, 1923. 26
Hoover, secretary
of the F.P.
tan Club to the Governors
Talks at dinner at Metropoli
banks.
sia wlil
will shortly fall off, as Rus
s Ts that agricultural 3 ,_ports
-ay hope for farmers is in the
soon export grain; that the onl
in
t in 1922 the 7- a..11nce of trade
increase of the population; tha
e
that the invisible balance
visible ccomodities vas favrable;
ns; that m:.inufactured exports
gc eat1y against is, by .= a.e 500 millio

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Federal Reserve Bank of St. Louis

-136-

Hoover, Secretary (Cont.)
not increase
will not increase much; that imports
n...uch; but were increasing frau south Luerican cc,untria ;
that we are ne_.r an unfavorale b:_tlance in visible cora-oditiefe,
aa opposed. to invisible; that ;old v.1.11 ,hortly begin to be
exported; that it is vital that the billion dollars of gold.
received by us since 1920, be not used as a basis of credit
expansi cn.
Hoover also said that his circular aavising suspension of Govt.
builling contracts was not based on belief of prezent
inflation of prices; that there was g'at n ,ed of further
cons tructi cn of houes, railroa equipaant, etc.
March 26, 1923. 67, 66.
Taussig does not :scree ,vith Hoover' r, o'inion that gold. zoports
will Ltart in in any vole in th near future.
April 19, 1923. 91
Ho1n, Nina
Gives llmoh to

at Ne-Tort, R. I.
Aug-ust 28, 1923. 163

Hord.
'?r1:31.d.ent 'Harding admits that Hord., :ppointed Clase C Director
at Kansas City, was a 7ood ;appointment.
April X, 1923. 97
Howell
who ssid a third party
lunche;) at Atlanta with
seen.ed inevitable ...nd that Hearst and Yrunsey would. co,:a
out for Ford. He theuc_ht Rallston aiht e nowinated.
June 8, 1923. 148
Hoxton
attend xedding ot daughter of ec. Hoxton at
C.S.H.
Alexandria, and it in George VlashinEtoni s pel. at Christ
Churc . Jar.. 12,1923. 37
Hughes, Charles F.
Mary Patten says Hughes ::as very ciszirous of being z.tplocinted Chief
Justice of the Supreme Court; that he felt sure of get d ng
it and when congratulated m,iJ.e nc disclair_ar; that he was
bitterly disappointed when Taft was appointed, but gamely
said it was a Lood appointment.
10
Nov. 29, 1922
President Harding is to consult Hughes as to Cuban A ency.
Aug. 8, 19213. 110

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Federal Reserve Bank of St. Louis

-137-

Itutton, An.
Willis should give .1re. Hutton
Dr. Miller insisted that Dr.
staff. (Reflrences to
an aprJointment on P.R. Board
Volume 4, Diaries) 197, 1S)E

Inflation
banks
inflation for Federal Ret;erve
Taussig ,says it would not be
and
unt equal to capital
to invest in open market an amo
hdrawn from the market.
wit
y
surplus, which .vas originall
Apri119, 192. 90
pri_ry
led issue of F.P. notes was
Dr. fining said the uncontrol
ca4se of inflation in U.S.
:,lay 10, 1923. 114, 11:
International Peace
See - C(irnegie Foundaticn
International Trust Company
ct control over rediscounts of,
Gov. Hariinc baid he used :-- irte
0,000 in one iay.
which, as a result, fell off $50
March 26, 1923. 69
111
Iowa Farm Bureau Federation
m
g'a
nin
Cun
53e
Farm Bureau Federation

-J
James, G.
of Federal Reserve Board
TdkeE, oath of citric(' as member
May 14, 1923. 116
he voted
he has always been a Democrat
Tells C.S.H. that, although
for PreAdent Harding.
May 15, 192. 119
Express :cubt as to Cuban A ency.

221 123. 125

k of Italy or auxiliary corporaticn
Votes with C.S.H. to permit Baa
ion J,t Ontario, Lost
to buy a bank in precarious ccniit
126
May 22, 1923.

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Federal Reserve Bank of St. Louis

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James, G. (Cont.)
3 be appointed to draft a
Moves that a Board committee of
Lnd Atlanta for Cuban
resolution designating both Boston
. 110
Agency. Passed. May 29, 1923
James reports s-uch

ely -laor,ted.
resolution, vhich :as tentativ
140
June 1 , 1923.

of F.R. branch building at
Moves to authorize construction
June 12, 1923. 101
Little Rock.
operations haz materially
Ja..as pointed out that building
. 151
dwindled since cardla circular
152
Votes against laying on L:ble.
as to branch building in
Votes similarly on C.f:.E.Isr.ction
Salt Lake City. 152
on.
Initials proposed Cuban Lgency resoluti
June 27, 1923.

157

branches at Perterv!.116 and.
Opposes granting permission for
July 31, 1923. 159
Long Beach.
under a resoluticn.
Reports azainst above applications
August 2, 1923. 160
Votes for report rejecting both.

Aug. 2, 1923.

161

branch bank resolution.
Consents ungracicusly to postpone
Oct. 31, 1923. 178
Nov. 7, 1923. 178
Votes for branch bank resolution of
ging filibustering in
Miller vary .f:rigry with Ja-Les for char
connection Alth branch bank resolution.
Nov. 7, 1923. 179
Votes for branch bank. at Porterville.

Nov. 22, 1923. 179

on dia not take effect
Evlains vote on ground that resoluti
until Feb. 1, 1924. Nov. 22, 1923. 180
salary to $10,000
Rerorts in favcr of increasing Wyatt's
dently %rat t has
without consulting law c anmit tee. Evi
Dec. 11, 123.
s.
behind. cur back
been ;onsulting $1311
186
for egging on the
Really James is _iYing, Wyatt a reward
branches. 187
e
majority for restriction of stat bank

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Federal Reserve Bank of St. Louis

-13a-

James, G. (Cont.)
, of a Federal Reserve Board
Votes against approval, in princi.ple
pension plan. Dec. 7, 1923. 188
nsider. Dec. 7,
Votes a,gainst Dawes moticn to reco

128

rve banks to have their
Votes favoring peznitting Fedaril ResI
,vithc,ut coar.iitting
pension bill introduced nCcnress,
. 188
1923
7,
Board to any indorsement. Dec.
general principle of a
Votes against C. S.H. motion ind.orsing
13, 192. 189
Dec.
.
carefully ,..mard.ed pension plan
d will not object to Governors
Votes against C.S.H. moticn that Boar
. Dec. 13, 1923.
having pension plan introduced in Con,res,=
189
referred to his com..ittes,
Bitterly objects to having pension bill
lution approving the
as the ca.a.nitt33 .voul4 be bound by reso
passed.
general principle of a pension bill just
Dec. 13, 1923. 190
agreement with Board not to
Accuses Bank of Italy of breaking its
without its consent.
buy over 20% of the t.tock of any bank
Dec. 17, 1923. 19C
Vote., a6ainst

Beach and Santa .Aaria branches.
Dec. 17, 1923. 191

iss' salary from $18,000
Votes against increasing F.R. Agent Curt
Dec. 19, 1923. 192
to $20,000.
Counsel's office.
Reports in favor of -roppin_ Bradley from
er to LEVY Committee which
Board, at C.S.H.'s request, referred matt
reported.,
James hid. never consulted. Law Commitee
reducing him to $1800.
JEL:A3S 4:reed to th..s.
Bradley June 1, 1924.
On 1.:i1ler e ricticn, ...ajority voted, to drop
Ja.iles voted to drop him.

Dec. 20, 1923.

192, 193

Ler and. James
Cunningham tells C.S.H. he will move to reconstagrees to $1800. 193, 194
having said this
At special meeting both Cunningham and James deny

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Federal Reserve Bank of St. Louis

-140-

he :ADi.:1d
James, G. (Cont.)
he heard him say ye6terday
Gov. Crissinger told James
so vote.
ling to nowt
James sati yes and I am wil
Bradley ,t1800)
cn Platt's motion to CiV3
Jar.,es thereupon 7oted No!
195
Dec. 21, 1923.

•

.
that he favored increasing F.R
J3M35 told C.:3.H. and Platt
ler
Mil
h
.:tt
ed
,000 but vot
Agent Curtiss's salary to $20
198
and defeaed it
Japan
See - Hanihara
Jay, Pierre
- after
Conference, Alnich
Presents r !solution at Joint
for
ing
car
were new
reciting that the F.R. bans
banks,
ber
mem
ements of
s Iasonal and emergency requir
e all
vid
pro
to
ir policy
recited that it should be the
. not
doe:
it
t
tha
to see
necessary credit extension but
.
on. Passed
degenerate tntc credit inflc,ti
Oct. 13, 192. 8
was
end of his that he, 14itcne11,
/aitchell says Jay told a fri
the
of
or
ern
Gov
to be
not competent, nor AUS Platt,
;Board.
Dec. 16, 1922. 24
Joint Conference I
See - Discount rates
Dividends and expenses
Open market op vati one
Jones, Andreas, Senator
. Feb. 23, 192.7:.
C. .H. and H.P.H. dine Ath
See - Harding, Preident

-K-

Keith's theatre
Wilson.
C.S.H. Foe's to, Ai th PreAdent
Se2t. 12, 1923.

169, 170

ector, at Dallas.
Urges quick uction on Class C Dir
Feb. 21, 1923. 49

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Federal Reserve Bank of St. Louis

•

-141-

Kellogg, Senator
sen. Kellogg
Gov. Harding sLys. Mitchell is alienated frc:..
r on Fed.?ral
because of his work in behalf of a dirt farme
ell td.
Reoerve Board, .a;(1 i for his bonus vote; that .iiitch
that
he could not vote for him and is -lad he .vas
his ractive was to catch votes a.ri curry favor.
Dec. 28, 192. 33
Kendrick, Senator
of th3 Exchequer.
Attends C.5.H. dinner to Baldwin, Chancellor
Jan. 15, 1923. 38
King, Senator
in talking against ti%.e3
Says he is prepared to join Len. Couzens
to def3at Mdilary for Corixtroller.
1923' 55
Mar.
Knight
Board
Presid:nt Harding complains to Mitchell -decal se F.R.
knowing
fully
land
Cleve
at
tor
appointed Knight Class C Direc
ens.
:,full
to
it
sad
prani
had
that he (Presid:nt Harding)
April 28, 1923. 97
Lane (Federal Advisory Council)

123,124,127,128,129,136,140

See- Cuban .P-ancy
Lane, secretary
Wilson tells H.P.H. that the letters of Franklin Lane,
published by Mrs. Lane war) like a bolt froal the blue to
greatly
Mr. Wilson, And that he said that Mrs. Lane must have
shing
them.
publi
for
got
needed the woney she
Nov. 2 4, 1922. 10
League of Nations
toward.s the
Mrs. Pepper s..:ys Senator Pepper is changing his views
work iong
rood
doing
is
it
that
feels
an
League of Nations
r subjects,
simila
and
h
healt
c
publi
nal
natio
the lines of Inter
where it has no power, but is confined to recommendations.
March 4, 1923. 56
See - Pepper
Judge Clarke an

?resident Lowell of Harvard speak at Washink,ton on.
May 23, 1923. 129

,hould
Mr . Wilson tells C..H. that the League of Nations :
unquesticalably be the predominant issue in the coming campaign.
Oct. 31, 1923. 177

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Federal Reserve Bank of St. Louis

-142-

League of Nations (Cont.)
was at Mr. Wilson's radio
C..11. tells Mrs. Wilsbn how pleased he
Nations; that it
message and his references to the League of
McAdoo, as it
_ 00d for the politicians and esnecially for
was ,
the League.
for
would show him he must Corns Out unequivocally
Nov. 21, 1923. 180
Mrs. Wilson said. she and

. Wilson felt the same ww. 130

with McAdoo who said
Mrs. Wilson .aid she had aiscussed the matter
it years ago,
he believed in the League and. hal come out for
prominently
rd
but doubted the expediency of putting it forwa,
in the caning campaign.
Nov. 21, 1923. 180
See- McAdoo
his courage as to the
Mrs. Wilson spoke very kindly of Gov. Cox for
his interview
League, saying he had maintained this course since
gn. 181
campai
920
with Mr. Wilson in the White House in the 1
e he does not trust
C.S.H. believes Wilson is opposed to McAdoo becaus
him on the League. 181
against any
Mr. Wilson tells C.S.H. he shall CO 13 out openly
y to come cut for
vocall
. Democratic candidate who failed unequL
Nov. 25, 1923. 183
the League.
Lord Grey to gat
Vice President Marshall said he ha l arranged with
the Lodge
accept
,R.'culd
it
that
the British Govt. to mnounce
, and that
League
the
on
Treaty
lles
reservations to the Versai
him to
induce
to
Wilson
'.1.th
he tried to make an appointment
ations
reserv
the
with
Treaty
the
ed
say that if the Senate ratifi
but
t,
i
hole
pigeon
not
and.
n
Britai
he would send it to Great
he could nct get an appointment with him.
Dec. 5, 1923. 184, 185
Lee ITouse
IT.P

moves from the Lee House to 919 Farragut Square.
Dec. 5, 1923. 186

C.S.H. moves from the Cuemos Club. Dec. 10, 1923. 186
Leffingwell, Russell
t
Prdsident Harding was angry because P.R. Board would not appoin
of
Bank
e
Reserv
l
Federa
of
or
Leffingwell a Class C Direct
New York; as a fact, Sec. Mellon and. the whole Board would
have been glad. to appoint him, and C.S.H. especLally as an
ew
antedote to Gov. Strong, but Leffingwell himself vithdr
wish
not
did.
and
l
banks
severa
for
l
his name ar he was counse
do
to
had
have
would
he
as
them
.vith
to sever his connection
if appointed.. kpril 28, 1923. 98

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Federal Reserve Bank of St. Louis

-143-

Little Rock Branch
63, 64, 151, 152
See - Branches, Federal Reserve
Lobdell

ert 4s to poc:er of Farm Lcan
Controversy :rith Under Secretary Gilb
approval of the Secretary
Board to issue circulars without the
of the Treasury.
March 27, 1923. 70, 71, 72, 73

Lodge,Senator
Lodge for his statement in the
Admiral Niblaok very bitter against
declared was against Turkey.
campaign that the U.S. should have
9
Nov. 10, 1923.
See - NiLlack
Lodge h.s been stripped of
Mr. Wilson tells C.S.H. he is very Elaa
reelection as Senator; that
his
his power by the narrowness of
alive and feel dead.
be
to
it was better to be dead than
Dec. 27, 1922. 30
nst Gaston because he
Senator Walsh of Mass. very bitter agai
the redIction of
refused to take issue with Lodge against
. 36
1923
1,
Jan.
income taxes on large income.
cn to the finish for the
Lodge tells Gov. azding he will back Bost
128
Cuban Agency. May 23, 1926.
H. sLould see Lodge as to
Gov. Crissinor and Platt feel that C.F.
ing's talk d.th
Hard
Cuban Agency, in view of Gov.
139
.
May 26, 1923
Lodge as to Cuban agency.
CALE. has talk orer telephone with Sen.
;day 29, 1923. 141, 142,143
33.3 - Cuban acency
Lung Beach. 190, 191, 192
See - Branches
Los Angeles, Yietropolitan area.
See - Branches

Los Aneles Trust and Savings Bank. 34
See - Branches
Love, Asst. Secretary
as.
Favors Talley for Federal Reserve Agent, Dall
Jan. 24, 1923. 12

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Federal Reserve Bank of St. Louis

-144-

Universit
Lowell, President of Harvard
ington.
Wash
in
Speaks on L. of N.
cle.
ived into signing the 31 arti
.
Very bitter because .ice
129
.
1923
May 23,
Grange
Lowell, astar of Natianal
C.S.E.
by
n
cive
ch
Attend s lun

Feb. 28, 1923.

Majority vote.
branch
Board stating that resolution on
C.S.H. and Platt insist an
vote.
banks was passed by a majority
Aug. 2, 1923. 161
Marshall, Vice President
Dines with C.S.H.ani H.P.H.

Nov. 30, 1922. 11

rve
ident Harding about Federal Rese
Tells C.S.H. he Arote to Pres
of
th-t
er
stating in th lett
Agent Heath, of Chicago, but
interfere with appointments
not
d
woul
• course the ?resident
ides tat the Federal
which the Federal Reserve Act prov
2, 1923. 35
Reserve Board shall make. Jan.
Senator anilirs. Sallibury .-.1nd meet
C.S.H. and H.P.H. dine with ExMr. and Mrs. Marshall there.
hall :,aid 119 had not called on
While smoking after dinner, Mars
e as he did not Nant the
Wilson since he left the White Lous
zici refuL,ed admittance.
hutiliation of be inc, turned down
••

d be received if he asked for an
C.S.H. said he felt sire he woul
apointment.
y could not understand why
(Itre. Wilson once told H.P.H. the
did not say this
Mr. and irs. Marshall had never called, but he
to .larshall.)
s to see Wilron in the White House,
Marshall :;aid he tried three time
but without success.
he had arranged with Lord
Marshall explained this by :aying that
unce that it would accept
Gra" to have the British Go-t. anno
of Nations, and that he
ue
the Lodge reservations to the Leag
to iniuce him to agree
son
tried to get an appoint rent with Wil
ty Nith these
Trea
that if the Senate shoull ratify the
Gt.-:rttain and not pigeon hole it.
reservations, he would send it to

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Federal Reserve Bank of St. Louis

-145-

)
Marshall, Vice Pr 3sid ant (Cal t.
Wilson, arid
kine,at cro6s purposes vith
Aor
tly
den
evi
was
ll
sha
Mar
ons, it is
ati
erv
res
accept these
as Wilson hsd decided not to
ed, knew
pos
sup
be
t
son, who it mus
easy to urderetand why Wil
care to discuss it 7:1 '11
of this ne?-otiation, wo'ald not
Dec. 5, 1923. 184, 185
n
prepared a concurrent re s cautio
Senator Saulsbury said he hat
ls
bil
all
,
son
Wil
of
y
disabilit
providing thx , because of the
ll
sha
Mar
to
ure
nat
sig
be sent for
etc. passed by Congress should
s.
Marshall refused to agree to thi
as Acting Pret,ident, but that
Dec. 5, 192. 185
and
t McAdoo was a. dishonest man
Mrs. Marshall told C.S.H. tha
rs.
ula
tic
l
d for ful par
referred C.S.H. to her husban
ily he
McAdoo went west with his fam
She forther said that vb en
ad
lro
Rai
the
by
for
arranEed
travelled cn a priv..i.te car
er.
the ord
administration by antedating
Dec. 5, 1923. 185, 186
Mattapoisett
ett.
l Helm visit H.P.H. at Mattapois
Mrs. Wilson and Mr. Admira
August 26, 1923. 163
See - Ttlson
she
McAdoo, Mrs. William G.
in her eyes not to believe all
Tells Mrs. Wilson with tears
doo
McA
self. Insists that
hears about Mt. McAdoo ..ind har
57-3ara ago and that there is no
s
ca.:43 out for League of Nation
in now.
necessity for his doing it aga
1923. 181
"3.,
Nov.
McAdoo, William G.
Calls on S.S.H. with

e Corporation.
McLean, fc nAe r1:; of War Financ

ly.
t de ire to crush the Bank of Ita
Talks about Boarlis ;4pparen
Discusses YUbs. City applicatton.
bank
examinations of state parent
Denies necessiy for simultaneous
and br anche5.
a
inr to monopolize credit at Yub
Dented that Bank of Italy was try
City.
l Board and iiscuss these
C.:L.H. asked him to come before ful
matters.
would be of no use anyway.
McAdoo said he hAi no time and it

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Federal Reserve Bank of St. Louis

McAdoo, William G. (Cont.)
ting of
said. he would arrange a mee
t
this.
wan
not
but he evidently

ti-,3

Board at any time,

and would
dly :Lore than two Llinutes
har
ie
off
s
.H.
C.S
in
McAdo o ‘0.11-:
1923. 38, 39.
not even sit down. Jan. 17,
Centro bank
will approve plu.chase of El
McAdoo wires that if Bckad
in any Naar
ted
mit
com
reby will not be
the
rd
Boa
t
tha
e3
agr
he
will b3 atuitted a a branch.
as to whether in futize it
ion.
:Loved to consent on above condit
Defeat ed.
, 2latt
Aye - C.
,
,
sinior
i6 r
No - C
stood
that Board's adverse decision
Findley voted to ..ire :,1cAdoo
63
unchanged. April 10, 1923.
ed in Scrath
F.R. Bank aoncies elitblish
Mck.d.00, years ago,
Amer ican countries. 108
McAdoo appeared before Board.

ay 18, 1923. 119

a.a.. to 1:30 p.m.
McAdoo hi....ring lasted from 10:30
City
ision in Sacrament c and Yuba
McAdoo complained of Board's dec
case.
La:1
as being outside of sphere of
Board had declined Sacramento
Franci WO.
Board had declined Yuba City
(a) Perrings disay.mroval
he had a telegram satisfying
(b) stateraent of Crissinger that
ending to cru.sh the
hidi that th Bank of Italy zas int
National Bank.
McAdoo claimed:the state Bank '..ng Commissioner
Board is bound by certificate of
. 119
as to public nace.,sity and. aivantage
can consider only whether
In passing upon aplolicaticn, Board
the concliticn of
taking over the br-nch* will irapa.ir
the parent "oon.1:. 119, 120.
o zone:. or sr7here.: of
Board has no power to divide state int
influ.enc 3.

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Federal Reserve Bank of St. Louis

.447-

McAdoo, Waliam G. (Cont.)
McAdoo claimed: (Cont.)
Bank of Italy in giv ng so
Board has Aiscriminated against
banks.
many local agencies to Los Angeles
branches. 119, 120.
These local agencies are really
at Cosmos Club.
McAdoo meets
Italy.
di scrination against Bank ce
at
t
Indi&lan
to Wazhincton."
Tells C.S.H. he is "coming back
Sail that many were opposing
up his ruind to ccrue back'

but, by Gall he had made

he would remove some of the
Said that 'Alen he did. "come back"
nation1
Federal Reserve Board for this discriri.i
to discrirLinate against the Bank
C.S.H. said nc member intended
of Italy.
rimination
not deny this, but said it was disc
McAdoo finally
in law, if not in intent.
nating.
:,IcAdc o referred to Cri ssing sr as discrimi
- inger as CaLptroller thought
pointed out that Cris s
an
na.ti mai bank:., but now that he was
in terL.s
vrtole
the
esented
appointive member and Governor, be repr
onal
nati
as
s as well
Federal Reserve *Totem, - state bank
banks.
Criesirqer would fairly
C.S.H. said he hoped and believed that
represent both. 120 121
ed, generally, with his
C.S.H. at h3aring, told McAdoo he agre
rve Act, with this
construction of Sec. 9, Federal Rese
ch was
That if the Board fouxii that the bran
excerdt ion:d
woul
it
,
bank
desired wrely to crush out a national
have paver to refuse its consent. 121
bank had a monopoly
McAdoo pointed cut that wherever a national
refused. to
very high price on its stock and often
it put
cpoly.
.„cn
itb
sell at any price in order to per;etuate
..,•etition by
fair ..;c:h1.
McAdoo said Board has no power to prevent
refusal to permit a branch.
May le , 1923. 121
1923. 12-5
McAdoo and Elliott came before Board. :,lay 22,

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Federal Reserve Bank of St. Louis

-148-

McAdoo, William G. (Cont.)
auxiliary committee to purchase
Asked permission for Bank of Italy or
rious c cndit ion.
u bank at Ontario which was in a preca
allowed it.
Board at fir st rejected. it but finally

126, 127

See - Branche s
tion cf br Inches at Yuba
McAdoo wires Board for r3asons for its rejec
City and Sacramento.
Platt moved to reconsider Sacramento.
Defeated. 143
See - Branche,
oo as to rtason for original
C.S.H. reported. a draft of letter to :loAd
ted to.
rejection cf Yuba City and. Sacramento. Objec
143, 144
See - Branches
Wilson' ra:iio message should
C.S.H. tells Ars. Wilson that President
for the League of Nations;
convince McAdoo that he must come out
she atd. he and Mr. Wilson f31t the same.
Nov. 21, 192:!. 180
League of Nations with
Mrs. Wilzon said she had talked over th3
come out for it y ears
McLico, vhc .;aid he 'celieved, in it an: had
ng it forward praninently
ago; but ‘ioubted the 3xpediency of putti
in the ccminz campaign. Nov. 21, 1 92Z. 180
rats had cut the draft
McAdoo said to :Ira. Wilson that if the Democ
rm, It never could
of the Federal Reerve Act in their .platfo
have been passed, etc. etc. 161
often talked aver the League
Mrs. Wilson Laid iIrs.:444.1co and she I:ad
cane out for it,
of Nations and the necessity for McAdoo to
O.
out fcr it years
one
but .a.s. ::_cAdoo would only say, he did
181
Mrs. Wilson not to believe
Y.rs. ,IcAdoc, ,:ith tears in hr eyes, begged
the things you hear of Mac and. herself. 181
naninat ion
firmly believes Mr. Wilson is aainJt :,1cAd.00ls
ns.
of
Natio
e
bec;:a.ise he cites not trust his: on :la: Leagu
181
Nov. 21, 1923.
Democratic
Wilson tells C.Z.H. he shall cane ait opmly against Au
League of
the
for
candidate who fails to case out unequivocally
Nations. Nov. .25, 1923. 183

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Federal Reserve Bank of St. Louis

-149-

McAdoo, William G. (Cont.)
n ani r3fers C.S.H.
cnest
Mrs. Marshall says McAdoo is a 11.sh
to b3r huAand for articulars.
Dec. 5, 1923. 186
went wit with his family he
Mrs. Marshall s.sys that when McAdoo
Railroad atministration
travelled on a iriv..Lto car furnished by the
by an c:•der which Aas antedated.
Dec. 'z•i, 1923. 186
in other banks
4vised Bank of Italy that it coula buy stock
the Bancitaly
or
n
through the stockholders auxiliary corporatio
the Fed.eral
Nith
corporation, \vithout regard to its agreement
the consent
ut
witho
Res3rve Board not to purchase over 2O etc.
legal
no
had
ns
of the Board, - as these lett ter corporatic
connection with th3 Bank of Italy.
Dec. 17, 1923. 19r)
ically right, yet
first felt that while dcAdoo :-ight be t3chn
,
that there was a breach of good. faith
ase were
learned that all of these aw,reements of purch
al Rerve
Feder
th?.
of
val
specific:illy made subject to the appro
exion
compl
rent
a
iiffa
put
Board, and feels that thi 3 fact may
on the matter.
190, 191
Dec. 17, 19231

Later

McCord, Federal Reserve Agent.
99, 127, 129, 136, 140, 144, 145, 157
See - Cuban Agency
g that although he
Tells C.S.H. the Atlanta papers are all sayin
ce tc have him :iven
aivan
in
co:oes frau Boston, they Nal agree
ion.
y
quest
authority to settle the Cuban Acenc
May 24, 1923. 129
McDougal, Gov.
:cunts.
Votes for 3% rei;erve againht special suvings ac76
1923.
27,
March
See - Discount rates
Federal Reserve Bank of Chica t o
McElroy, Prof.
uf Cleveland.,
Mr. Wilson ays he does not care to read the life
will not be
as from what he knows of McElroy, he is sure it
184
well one. Dec. 4, 1-23.

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Federal Reserve Bank of St. Louis

-150-

McGarrah, Gates
Opposes Cuban Agency

May 7, 1923.

103, 107, 109

McIntire, Genera.1
and has
Dr. Willis bays Gen. McIntire is an able, t:ithful official
little
a
be
managed Philippine matters well; that he may
hesitant in acting, but this is proba.bly becx.se he had to
obtain approval fran the War Department for all of his orders;
and
that he believed firmly that Gen. Wood wanted him ousted
at
offered
was
n
.,..ras intriguing to this end; that a resolutio
York
Ne.v
in
a meeting of the Philippine Cht.nber of Cortmerce
censuring Gen. McIntire which Willis believes ,- vas instieated
by den. Wc.)cd.
Dr. Willis aid that perhaps Gen. McIntire had icne some thires
open to criticism in the management cf the Reserve funds, but
that the ohole troubla started with Forbes who, when Governor
General, vsed soe of this szney to build. ro.A.s.
April X, 1923. 91
McLean, Wttr Finance Board
Calls on C.S.H.
Jan. 17, 1923.

cLean, F,,dward
Prints in Washington Post a list seized from a bootlegger,
but omits his own name, that of Sen. Weeks, and, as linrla
was infozmeci by a friend in the state Departa,ent, - that of
President liard.ing.
Mar. 14, 1923. 62
McLean, Senator, Ccnncticut
Votes against ccnfirmation of McNary in com:dttee.
March 3, 1923. 55
McNary

President :larding Laminates McNary of New Mexico for Comptroller
of Currency. Jan. 12, 1923. 37
Senator Reed of Pa. at dinner at Mr. Lansing's, tells
that charges had tem filed azainst McNary to effect that in
_addition to borrcwinc from his bank in Las Vegas up to the
full 10% limit, he hai borrowed on notes of Lffice boys,
stenographers, etc. etc., that a sub-ccmaittee of inve.tiggtion h.,c1 been appointed. Jan. 20, 1923. 39
Hagerman of New Mexico, tel C.S.H. ti.at he n Er ..icNari well;
that he as a very agreeable man with an interesting wife;
that he got his start frciu his father-in-law, a. very rich
man; that he was really a resident of New :exico, his
residence in Texas ".:einc for "summer" or "political" purposeg

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Federal Reserve Bank of St. Louis

-451-

McNary (Cont.)
a very liberal
that he was very prominent in politics and
obtain some
to
us
campaign contributor; that he was anxio
for As..istant
tate
candi
a
position in Washington, and had been
a and
Franc
in
him
Secretary of War; that Gen. Pershing knew
liked him very much.
ion of Comptroller.
Hagerman z.lao said he was hardly 111: to the poidt
40
Jan. 21, 1923.
for Federal Rer.arva
Mitchell says McNary is strongly for Collier
41
Agent at Dallas. Jan. 24, 1923.
rumored that C.2.H. is
Gov. Crissinger tells C.S.H. it is being,
opposing McNar y s confirmat ion.
C.S.H. absolutely denies this.

Jan. 30, 1923.

anid asks if McNary
Elgerman, sick with Grippe, cells up C.B.H.
has ..let ;.1cliar y.
he
if
.
has been confirmed., asks C.3.11
nally and hoped the
C.12.11. said yes, •_And that he liked him perso
no details, .vould
knew
he
which
of
ch.arze.. against him, be disproved and that h -! would be confirmed.
s in his behalf.
Hagerman said. he had spoken to several San-tor
Jan. 30, 1923. 44
Senator hai consulted
C.S.H. tells Gov. Crissinger that no Democratic
told him
him as to Mallory; that Sen. Reed of Pa. had once
this to
that ch...rge:. had. been filed against him, but he said
Glass Llso
C.S.H. without any c,uestion from him; that Sen.
told him of the fact that char gaz had been filed; tha,t
orable, and
had never expressed any apinion, favorable cr unfav
on as
that he had no knowledge upon which to base any onini
to the charges. Jan. 30, 1923. 1.5
Campbell's
Pr3sidant 12.ardin2. told Sen. Calder that he would nct sign
com.desion until McNary .- as ncnt naiad. Dirty politics.
Feb. 9, 1923. 45
Hitchcock have
The papers announce that Senators Couzens, Pepper, aril
informed the prasid ant that McNary can not be confirmed.
Feb. 9, 1923. 45
he had gone
Sen. Ctuzens, dining at Mr. .1 "G1cott's, tells C.S.H. that
and
to President Earding with Sen. Pepper and. Sen. Hitchcock
examinad into the charge.. against
told him that they

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McNary (Cont.)
d; that Pr i.tiant
conf
'ileTary n I that he could not be
but that there was
,
vote
h
Harding said he should insist on
no occasion for haste.
Pr3k,ident Harding will •,ve :,IcNary
San. Couzens intimated that
r.jected by the Senate.
recess aDpointment if he is not
ident Harding was holdin-, back
Sen. Couzens also said that Pres
prei.'sure for ncNary.
Campbell's (..cpointment to bring
Feb. 10, 1923. 46
and Mrs. LIcNary at Chevy qhase
C.:D.H. and. H.P.H. call c
were not at home.
(Idrs. Corbines house) but they
Feb. 11, Sunday, 1923. 46
Mexico, that most of the banks in
Flagelluan write.- from Roswell, New
confirmed as they like
the state would like to have ficNary
have the office held by a
him personally and. would like to
eve the job require:, a
western man; they all, however, beli
aps, 'cNry is nct(Fite
big 1:lan a,t this time, and that, perh
of big enouj1 calibre for it.
he hopes AcNary will be confirmed.
Hagerman adied that, personally,
. 47
(See letter files) Feb. 12, 1923
confirmed, will vote for Collier
Gov. Crissingsr says McNary, if
later he says he is not
for Federal Re...arve Agent at Dallas;
ently believes that, being'
sure how McNarywill vote; He evid
'support the administration.
a purely political matter, Meary will
Feb. 23,1923. 50

Sen.

fought the confirriaIon of
Clder tells C.S.H. that sen. Couzens
be sinning to speak at 10 a.m.
McNary on the floor of the Senate,
s; that Sen. King said
and saying he should speak for 3 hour
time until Ltjourrrnent,
that if Couzens did nct use up all the
the isatter of confimation 'sae dropped.
he 'mould; as a re:..ult
March 3, 1923. 54, 55

6, No 5.
The vote in th3 Sene committee was aye
Those votin

:az,inst confirmation in th3 Com ittee were

s (Dem.) pcmerane (Dem.)
senators McLean (Rep.) Couzens (Re .) Glas
_4nd Hitchcock (Dem.)
• .

er that, as .•.t former
Senl.tor Paige di' not vote, but told Cald
man for
Pre ider- t, he f3lt ''..4cNary was not a fi National
Compt roll .
Ing would give :.!cNary
Calder said he hardly ti,cuht President Hard
a recess appointment.

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McNary (Cant.)
bad
as an unfit an, but that he
Calder said he regarded McNary
vote
to
,
tion
cita
soli
5,,.rnast
promised the President, at his
for him.
.11th.ough shortly before he went
Senator Pepper voted. for McNary
t Harding st3ting tht they
with the Sub-comUttee to Presiden
he reversed himself aid voted
could not vote for McNary. Now
for hLxJ
54, 4.
L408 - Pe:per

Sen. Class speaks to
to confirm :4cNary.
See - Pepper

rts
conteraptuously of Sen. Pepper's effo
SR
Mar. 6, 1023.

R.T. Co.
Mellon, Pre-ident,1". Y. N. II. & H.
rstate CaLmerce Commissionthat
Inte
of
ey
Ripl
s
Percy Todd tell
ial a.cc...cunt cn their books
J. P. Morgan and Co. had a spec
and that they gave Mellon
wi th Mellen Nhile he was President,
r.tilro-td got for bond
the
1.5g, of the dif ference bet7.-sen Abel
Co. placed thali-. on the
&
an
is ues and tile rice at -thich Morg
market'
s ago in .Boston.
Todd told C.S.H. of this some year
!lay 24, 192.3. 139
Mellon, Sec. Of Treasury
to consult Sec. :Iellon as to
C.S.H. tvises F.R. Agent Curtiss
Of Federal Rescrve Bank
appointment of Gov. Harding as Gov.
cf Boston. Dec. 7, 1922. 19
naz..e from con:31deration for
Advises Gov. Harding to withdras his
rea.ppolntment to F.R. Board.
Dec. 16, 1923: 25
could not reappoint him be c?use
Mellon .ays Presid..ent Harding felt he
block 13 -islaticn;
the opposition to his confir..ticn
some regret that he
that President Harding expressed vaguely
term expired.
had not reappAnted him just Lif ter his
Dec. 16, 1923. 25
of Gov. Harding as Gov. of
Tells Se-C. Weeks he favors a,npcintment
Bank of Bost( n. Dec. 18, 1923. 26
Mellcn.
C.F.H. and H.P.H. dire -iith. Secretary
took out 'Mary Rinehardt, the aut'r
Jsn. 16, 1023. 38

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:,Tellon, Sec. of Tra.aury (Cont.)
Bost n
discount r.Ate-., _t New York Eni.
:aellcn favors increase of
an
of
e
cc,re to meeting becaus
from 4 to 4-6, but can not
engagelent with the Pr3sident.
Feb. 21, 192.:,. 4E
k• 45:.:ents
favors layering the re ,3rve requ
Sec. ',lel ion tells Platt he
• 3r
isin
Cri.
not want to op:oi.e
of two St. Louis banks but di
who was b.i-ains t it.
:iv i vote.
beco.use of lade of 5 affirm
The moticn to low r fileJ
Feb. 21, 1923. 50
.
utive offic Ts of National Grzinrie
Attend.z lunch of C.S.H. •-,o exec
54
Feb. 28, 1923.
Bank
that he fears the Fe1-tr,:.1 Re -!rve
Sea. :ellon tells Cov. Harding
cy.
Agen
n
Cuba
iv1ng Boston the
of Ne.- York sill object to
Gov. H. tells

that New York

hculd not have -v3rjthing.

New
sition to the adruinistration in
Mellon said there Alta T.:uch opno
giving Boston the Cuban A erry.
Enc7-1311d an: 7hat he favored
Mar. 9, 1923. 60, 61.
Chicago apnlic-Iti on to ircreage
.ends Board meeting to pass on
At.
scount ratea to 5%.
April SI, 1923. 81
ses
1in7 off in open market purcha
Platt writes Mellon aa to great fal
s; recorm.ends a ralnin* of
of Govt. securities by F.71. bank
millions. Says eaplital
153 millions and a :-.1aximum of 350
, - all origLnally ,./itharawn
ions
surplUs of F.R. bnk 1 327 mill
in purchases is not inflation
from the rzazVet, Ini that this SUM
April 20, 1923. 95, 56.
Class C Director at Ney l'ork, but
Wanted to ap-coint Leffinewell as
98
l 28,
L. decided he di: not want it. Apri
Favors Cuban kency.

„Lay 8, 1923. 110

of Cunningham on P.R. Boarrt; he is
C.E .H. tells him of 4-,pointment
says he has only a vague
perfectly a:.azett; asks who he is;
h we been a emanate.
recollection
May b, 192E. 111
:ly f vor s Boston for Cuban A-zency.
Stron,

May 9, 1923. 112

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Secretary of the Treasury (Cont.)
nch
pre..ent ./hen r.solution on brc..
sa's Sec. _dell= sheuldb:
. 178
banks co.les up. Oct. 31, 19-3
Sty s

ider br:Incl. bank
not attend and asks Board to cons
178
.
1923
resolution without hi. Nov. 7,

lutien
convinced :viellon that the reso
C.. .H. believes he could hav3
ing.
was qrong, had he attended the meet
. 179
1923
7,
Nov.
.
Strongly favors F.R. pensiun plan

Dec. 13, 1923.
190

induced C;ev. Cringer to change
C.: .11. believes I.ellcn must have
his vote .2nd approve the plan.
Dec. 13, 1923. 190
Menai

tol was the senior diTlauz,.t in
Admiral Niblack says Ad:1)1ra]. Bris
ish Leader, .lenal, in the
Greece arid Turkey fl.. hold the Turk
,2,ply
N1L1 new sending a s- 1.
hollow of his hand; that th3 U.S.
and
ians
Russ
the
lo.2:71iel, for
ship through the Stnl.ights with
01
u.
hr
ing
throngh, hold
that :Aenal would let the ship go
days; that nct having
fea
for
,
-Ike
7,erhaps, for form:,
a ric-tt to d:mand this.
decl.lred war against Turkey we had
Nov. 10, 1923. 9, 10.

Metropolitan area, LOG Angyelec.
Fee- Brariche.
Meyer, ugene
Attends

onal Grange.
lunch to Ex3cutiv3 officers of Nati
Feb. 2, 1023. 54

Miller, Dr. Adolph
..ther
,
Irina borrow in Ne. York r.f.
Points out that many California conc
17
than in California. Dec. 5, 1222.
as sayin7 that the 7,ank of
Cflaots:, Federal Reserve Agent Perrin
conservative manner.
Italy has been managed in a careful
Dec. 5, 1922. 17
against sp3cial ..avings
Move:, to reconsider questien of reserve
for a 10c: reserve.
accounts but on reconsi.: eration votes
Dec. 6, 1922. 17, 18.

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Dr. Adolph (Cont.)
open
s be authorized to purchase in
Moves that Federal Reeerve bank
le,
etab
ring :stored, readily mark
mautk.et da,lestic acceptwices cove
ipts
secured by ..arehouse rece
staple agricultural products,
to six wonths waturity,
bring life of the ki.ccept,z.ce, ui)
export acc-k)tances.
and.
following the analogy of inroort
Dec. 12, 1922. 20
ive 1-:larketini.; associations, the
:4oves that the paper of cooperat
be used for ,;,'.721i1C95 to members
proceeds of which are used or to
such azsociations
ricu1tural prod.ucts deliv.ered to
against
classified aS asricultural pgper.
Dec. 13, 1922. 22
of Counsel.
Above was voted subject to opinion

it in his addrecs before a
did. this so that Miller ould. use
;And because we would. have no
FaraArs Associ:.tion on Frid.ay,
be away.
quorum later as CrissinEer was to
Dec. 13, 1922. 22$ 23

BOara

ent advised, such paper ..vas not
Counsel reported that, as at pres
equant study he might reach
agricultural paper, although on iubs
a. different conclusion.
in r 'cord, at that Board
hai our vote read which, a gut
paper as agricultural paper,
unanimously voted to classify such
of the vote by Counsel.
subject only to the proper wording
md. he would. so state at the next
C.S.H. said this was not correct,
meet ing.
er at the next meeting to clear
Platt said he would. wove to reconsid
:er. Dec. 14, 19X. 4,0
up the
er is a stockholder in the New York
Coy. Harding tell s C. S. H. that Mill
- which has offered him
Corporation, - not a biking concern,
•
the Presidency. Dec. 28, 1(.122. 33
sunt rates at New York from 4 to
Miller says proposed. increase in dise
41% seems Ararranted. Rob. ZO, 1323. 48
d for by Boston, although he lid
Miller said. the similar increase aske
its, should. be postponed
not express csay disproval on the ni3r
woult probably attack the
until Cbngress adjourned, as Congress
Board. b mause of it.
Crissinzer voted with him, but
Millar thereupon wcved to -,able it and
the others defeated it.
The

the others
being put, :liner and Crissinger voted No and.
in cti
49
Aye, and it vas oarri 3:1. Feb. 21, 1923. 48,

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.1iller, Dr. Adolph (Cont.)
erve
ctions to Talley as Federal Rez..
:diner maises all sorts of obje
xith
r
favo
to curry
Agent of Dallas, evidently seeking
ier.
Coll
ted
Crissinor ..deo ..:an
er said, he coul1 not ccrne.
PostDoned until afternoon, but Inn
now, if he could not
C.s.H. asked. :,Iiller to record his 7ote
attend. in afternoon.
he Acp.71d vote, if pre‘sent in
111111er said. he lii. not know then how
the afterncon.
Miller

Talley he would have to
Li. later that, as between Collier ani
23, 1923. 30
Adjourned..
vote for Talley.

ey.
Cc 4iitte3 reports in favor of Tall

Feb. 24, 1923.

friend of „ler, endorse,'
Robinson, the Los Angales., banker, and
Talley, .eni r..-inay others. Si
the calr.aittee hat not done its
Miller still ',Nobbled and. finally se.t:
=Ade Platt and :iitchell very angry.
work properly, 52
ng for him, and Cr1s3in.7er alone
Talley was finally elected, Miller voti
voting No. Feb. 24, 1923. 53
•

•

over the Cuban acency matter with
Gov. liard.ing tells C.S.E. he has gone
. 59
Miller who approved. of it. ',larch 9, 19_3
Little Rcck branch bank
Voted azainst approvine: constrIzticn of
buildinj. Mar. 15, 1923. &3
inally
- -Nas influenced by ft that he orig
believes :711.11 .3r
63
.
1918
in
o;;;I;osed the Little Rock branch
bank cc.nstruction lac...183 of
VoteL. in favor of tla and r.;r. all branch
naaterials.
ding
excessively high prices of buil
192:!.
19,
Mar.
as to
resolution exprezsing *policy of the Board
Miller offers
sualansion. Mar. 19, 1923. 61
.111er

viri as a reason
deprecates a resolution of Cm:pbell
ag'icultural
of
,
e,
pric
for suspension the disparity between
and. manufac tur ad .?rel= t a. 65

s for Alleris.
Cazobell finally withdraws his resolution and. vote
Mar. 19, 1923. 65

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Dr. Adolph (Cont.)
espal%.,.te rez,erve ratio agz.-dnst
Miller discusses his pla.n for
er to Governors.
. Federal Reserve notes at a dinn
deposit.:;
!Aar. 26, 1923. 68
estion of Governors that the
Miller vehemently objected. to sugg
wee1y :;tatements that the
Board 1- ,ut a. foot note on the
billion of gold. really in
Fecliral Reserve system holds one
irhaps at no distant day,
trust to pay it back to urope, p
1y xialler than they
and. that .113 old reserves are ra1
79
seemed to be. March 27, 1923. 78,
s against deposits and F.R.
Miller urged a separation of re.:Irve
note— 79
d. startle th e public. :iller
Gov. Harding predicted that this woul
drew his sugga.i-.tion. 79
said it woul.i ani practic,.-aly with
some time and had about convinced.
Miller had been pressing this for
but the minunto the plan
C.S.E. that it might well be done,
feet ju..t as he
vas attacked., he, apparently, :,ot cold
27, 1923. 79
did yars
ke from the prexable o: the
VOtes a.7ainet C.B.H. Is motion to stri
the part assert:A-4g
circular as to open market operations
l 3,1.923. 79
Board's power to fix the ;A:icunt. Apri
1.1',; of discount and Federal
Board considered again the splitting
Reserve note reserves. April 4, 1 923. 80
to issue of Federal
Miller attacked the ,-olicy of the Board as
sed sly 111.itation;
r
Reserve notes; said that we h4 neve i..po
Reserve agents who
ral
Fed!
that we had left the matter tc the
tion •vith
.-21a
circ.
had pimped Federe.1 Reserve notes into
that we had never
es;
cipl
reckless di.regard of all banking prin
s and Directors were
refused an application; hat the Governor
l banker he would
tica
densely ignorant; that if he was a prac
Syste-.. as at present
rve
never think of joining the Federal Rese
constituted, ei.c. etc.
cting himself more
Millar did not 83er4 to rbalize that he was Indi
than his assocites by this att:ack,
him.
C.S.E. will Answer him in detail later, _Ind so ..tated to
81.
80,
.
April 4, 1923
(see Also 114, 113, 116)
Board c...on daered. Chicago

p1icitcn to increase ,li.scount rt as to a:40

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..3.11er, Dr. Adolph C. (Cont.)
ve banks, before
off3rod a resolution that Fedlral Reser
their holdinjs of
increac,ing discount rates, :hould liquidate
ngs of acceptances to run
Govt. securities and allow their hol:ii
off .-nd increase their buying rates.
. vcting No.
The Board voted for the resolution C.S.H
April 7, 1923. 81, 82
o, by Bank of Italy.
Votes against purchase of bank at El Centr
April 1C, 1923. 83
ticn of 731 Centro
Millerclailas that the vote .a,c,..inst reconsid.era
sphere.; of
apzlization decidei affirmatively the policy of
ar.d. Platt denied this.
influence, zonine, 3tc.
Arril 1C, 1926. 84
as to accaptances,
C.S.H. objected to ..vithdr?......ring fraa the warket
as these renresented comLercial transacticns.
floated, by
.ettid many speculative trAnsactions hAve been
me,ins of acceotancea. A- ril 12, 1 93. 86
favoring withdrawing
C.S.H. said. ...iller and other., of the '3oard. !,.,:ers
ties 3n.1
raon3y from the m•trket by rlisposing of Govt. securi
ount rates.
ii.c...
asing
as an excuse 7,o void incre
• accept,::ncas
86
April 12, 1923.
of tighter
said Mi113r was delib3rate1y creating a condition
n-a.r
the
in
re..tes
of
ng
money Nhich Nould necessitate raisi
future. 87
of Laving the
C. .H. asks ..:iller ythy the Tr?.asury is so disirous
market by
the
from
money
g
Federal Res r vs banks -..ith.cirawin
ties.
selling holding—. of Govt. securi
by Fed.lral Reserve
!.0.113r said that the purchase of Govt. securities
It, and made it
rbed
distu
and
t
banks poured mcney into the marke
thould te put
rtte
what
mIne
difficult for the l'r?.a..ury to d,ater
was
i11
last
the
that
them;
on Treasury certificates to float
87
now below par. April 12, 1923.
to the F3d.oral
Miller says the power to buy aczeptance6 to be
ble, ;rime
elipi
to
cted.
be
r3atri
Rez3rve Acency in Cuba shculd
mt:..
docum
ing
shipp
by
d
bankers Accept ncez secure
to Gov.
The Board as:rsed to this, Tit asked Aller to r3t,-4 the ir...ft
102
1923.
Case Ln New York. April 30,
,
rea.d the ;2*,,ft to Casa who though' it very s. 4- isf ,ctcry
.
azt
aoncy
to
thcut waiving his cbjecticns
:4eir 1, 1923. 103

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t'ng
1.11er, Dr. Adolph (Cont.)
ared by C..H. and Counsel put
Jailer reads to Case, dr_ft prep
ied
impl
cJole transfers as an
in dal right to 'my uL ell
to buy and sell b._uakers
power 'Trovving out of the r1 ;ht
103
2, 1923.
accept anc
ncy to
ah wanted power given to the age
Case tcld Mlle: that /4,7Garr
acceptance. 1C3
buy secured. bills before their
ts.
against special ,,avings deposi
taLesupquaction of reserves
on that 10% reserve is required.
moved rec.lonsid.eration of decisi
nsideration.
Miller voted in favor of reco

rfiay 3, 1923.

105

and voted
decision rendered Dec. 6, 1923,
Miller said he favorei the
of
ty
uni
ort
opp
the
give Platt
for reccnsileration rierely to
for.. 105
gu.tting the ruling into proper
mtion
. to Miller that no reconsida
and Gov. Criasine-jer ex.1.)1ained
he would not change his vote.
was necesxy for this puri:osa, but
!lay 3, 1923. 105
: is to
erve banks rediscountir.:
i.-.ays real reason for Federal Res
the Board had Zolicated its
obtain Federal Reserve note:.; thha
es and relinquished it to the
control over Federal Riaerve not
int;
exercising the faintest restra
Federal Reserve banks, without
had acted in a sh&.efully
that the l'oard, all these year,
i.ri1y by the
im '.as cause
negligent inanner; that the inflat
rve notes.
unrestrained issue of Federal Rese
114
May 10, 1923.
-dic
er to this &oily unaarr-alted c‘tt
C.u.H. said. he AQUI reply lat
un part .i.em'asra of the Lora. 114
C.S.H. thinks _,:111er must be crazy.
ter of Ciov. 1..A.r.i1r.g to the
*sillier thoroughly 4.i.pproved the let
cy Canr-ittee iated
Chairman of the Balking and Curren
d. voli.u.e of Federal
8, 1919, sta.ting that the increase
effect .nt not he cause
Reserve notes in circulation •as the
of advancing wages and pz:ic - s.
702
See - 5 Federal Re.,erve Bulletin
913
5
:lay 10, 1923. 115
. 116
-laress a.t Chicago Set. 5, 119
See also
Saa also BC, 81
it iiir3 only a question
On Cuban agency hearing, 11.113r srAd if
e that Atlanta should
of Feder:x1 Reserve currency he would vot
ter of banlin such
be a34gruAted; tt if it were only a inat
a ,urchase of bill., etc., Boston should c1.3..;.2.14 be

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::1111or, Dr. Adolph (Cont.)
banl.:.nc, functions as
desibnated; that ae locked. upon the
should clearly -ce
on
Bost
the princil:a.1 ones, and that
nta's Jtatub as to
Atla
,
designated., „reserving, ho..vever
F31.3.rc1 Reserve note.
ay 15, 192.:). 117, 118
Board. with Federal Advisory Council,
At the a,eeting of Federal Reserve
the Council lk.-1 no
.1111er t first took the view that
a report as to the Cuban
for
.
Board
authority to call upon the
agency. :day 21, 1923. 122
be attacked. in
Board
iIiller saia Lane's ,itatemant tt till
...u,a
Congress if it did not desirna.te Atlanta,
123 124.
to Bank of Italy to buy a
Miller..;ove,-, that permission be Ep2nted
n, but to Elva notice
bank at Ontario, in precarious conditio
ch.
that it could not be operated as a bran
May 22, 1923. 126
Lrouni of emergency, saying
C.S.E. .,- loved to grt a.pi-lication on
. 126
- out a branch. Miller voted. de.ainst this
nothing a:;
condition that the
ally it was voted to pen.it the :v.rchase on
Fin.
agreed that I.+,
Bank of Italy and state bank Surintendent
should not serve as a ,:.rece'dent. 127
er objected.. 127
C.s.E. ..vanted to a.p-prove it as a branch, but :ilill
All agreed 4-,1-..at if
granted. 127

branch were later applied for, it would be

oaei agency in Cuba.
Miller ...4.-a.nts :Dore information as to scope of pror,
iez.3. 126
Gov. li ,rd'ing very bitter ae,ainot Miller. 128
question of h...ving &..ny
Gov. Crissinger -says Miller is weakening on
A6ency in Cuba. May 28,1923. 138
ap,Dlici.tion of Bark of
Votes against raoti cn of Platt to reconsider
Italy for Sacr...imento. June 1, 1923. 143
.- entc shcnld be that
Miller says rsply to McAdoo as tc branch at Sacr:
ner Lays
issic
Board has no information that Bank .;cua
cy. 144
poli
nel;
certificate since the doption of his
ott ....ish.es to file a
Votes ainst informing Attorney General that Elli
9, IP.11. Act.
on
brief with :Am as to construction of Secti
June 11, 1923. 148, 149

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Federal Reserve Bank of St. Louis

-162-

Miller, Dr. Adolph (Cont.)
a brief. 1
sa,ya no one should 1-;e 11oked to file
convince the Attorney
". aska if ,,I1ller fears Elliott will
General. 149
roperly told Elliott the Board.
Miler inti.Lates soca :i.ember has i.f:p
General. 149
was to ask an opinion frua At
Elliott of this, and :liner
C.S.H. tells :diner the Board. told
suit.
even suggested that he file a friemtly
June 1 1, 1923. 149, LA
vplicaticn, in vilw of
:4/11.2r irlove:; to reconsider Yuba City
it.
Perrin's. second report reccral,anding
June 12, 1923. 150
Lost on thevote. 151
Miller

two wonths than now
js buildinr- .pricos will b3 hipter in
June 12, 1923. 152

approve concatructicn of
;liner :.1ctres to table C.S.H. wotion to
1923. 152
Little Rock branch building. June 12,
Salt Lake City branch
Miller votes to table A:Alex motion for
building. June 12, 1925. 152
Glass
C.3.II. to add to C.S.H.'s telogreLl to Sen.
Miller as
he,
that
t,
Cour
on clearing d.ecision of U.":1,. Supreme
Re. -trve
•;.2
Feder
rezards it as a body blow at the
system.
C.S.H. does

is but at

that 131a,tt and he differ frm
June 12, 1923. 153

that \,ve had
Board. to reconAder Yuba City ref'.13a.1;
Miller be
rt, 7.Thich
repo
t
rested adverse decision on Perrin's firs
ew his
revi
to
WaS adverse; that the Board. asked Perrin
ticnal
addi
that
rts
report, 1rhich be did; th.•.t he now :73po
A-111
bank
onal
bankinc facIlittea are needed, that the nati
rs
f3vc
nt
,
id
Pres
not be crushed; that on the zontrary, it a
a
in
d
Boar
,Till put the
the branch; that our refusal '
open to a ch_Lrge Of
Us
1,4r
and.
on
i
0sit
.
s1
idiculo.
di scrimina.t i( n.
No ..ctIon taken.

June 14, 1923.

153

:.iseezzAcent between
Miller votes against final draft Of oper::tinE
n agency;
Boston .zil.Atlanta, designating bcth as to Cuba
.
that it ;rill surely cause a row between bcth
June 27, 1923. 157
the Cuban agency)
et
at
;..(in
:
vote
(This is a direct

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Federal Reserve Bank of St. Louis

-163-

Dr. Adolph (Cont.)
as to permit the
objects to broadening the functions so
accept:alces; said
purchase of bills other than bankers
nct permit
such bills were trade bills which A3 would
Feleral Re;lerve banks to purchase in U.:7d.
June 27, 1923. 157, 158
g that most of the
Miller reads statement of GOV. Cass showin
Cuban exports
acceptances held by Bo.ton aid New York on
were banker:, acceptances. 158
that he was
Dawes asLed 1,11113r whether Us negative vote x.eant
Felerul Reeve 7aak in Cuba.
opposed to any Ancy by
158
that he
ekiuivoca.ted at gra ,t length but finally::.,dmitte.i
but
was oposed
favored such an aeency on Eftn: ral iirinciple_
,ft, etc. etc. 158
to this ar,...
voted. ro
evi_Lently knew the agency was ours to carry so he
e
pleas
to
.:),
to appear conservative, and. as C.S.H. believe
158
WarburE.

Trust
op:)oses application of Pacific South west Savings and
Bank
of
ation
Ccedpany for a "):anch at Porterv'lle and appli?
of Italy for Long, Beach. July 31, 1923. 159
t that
called. up his resolution of April 10, 1923, to effec
ng
banki
state
the
the Board is bound by the certificate of
right
no
has
Board
tr,at
depart..ent 46 to public necessity aril
to divide state into zones.
July 31, 192. 1591 160

;Ansr bitterly objects and. ;..0173j reference to
c=,:littee which ..vas voted. 160

31C3121inat ion

of two of
!,Siller moves that in view of the yell- nown opposition
ns, the
natio
exami
these
ing
grant
to
the examination committee
ns
reaso
back
t
repor
to
ttea
cazmi
sat.:
matter "Je refrred to
two
these
inz
refus
in
Board
which would Justify the
ap:lications.
Passed, C.S.U. voting No.

July 31, 1S.2'.

160

Miller votes to reject both 4)plicittions as reported. by Committee.
Aug. 2, 1223. 161
's
Miller offer, iraft of letters to Perrin arinrunc ing the Board
decision, 161
C.S.H. objects as it does net ,;lve ;..1-le real reason for rejection

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Federal Reserve Bank of St. Louis

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Aller, Dr. Adolph (Cont.)
committee be
(In1 L'.ov'3s that the rosolution reported by the
sent to ?errin.
'vas

Thia

els sed. 161

inst the .1pplications but also
'Nhereases in the r33olution. (Exa-ainaticns
voted dehtinst
Federal Reserve Aet.)
and branchehi are '..n.:onsistent with spirit of
161

Dr. :4111 ar explained that h3 voted

;7ya,tt tell:
...vhich to buy

'hat isdr. .,:.11',er offered, to loan him $500 with
(see text of diary for conexebnte)
Au, ust - 1923. 162

cora:Litt
Vote., ...t,,,tain'st branch bank resolution reported by
Nov. 7, 1923. 178
that Millar
:Jilin: 'sari very ancry with James because of his remark
,vve,s filibustering on bmInch bank resolution.
Nov. 7, 1923. 178
South.vest Savings
72w.rd gr,..nted Porterville application of Pacific
& Trust Co.
s.
:tiller refused to vote and put in th'? record hi., reason
Nov. 22, 1923. 179
:prir.ei219 of a Fed3ra.1 Re.,erve
Vote., for C.S.H. resolution favorint
of
:cension 1arx, caref-ally guarded, for a li, ited elass
employees. Dec. 7, 1923. 18c
in
no object/ cn to :Joy errior s intrclucing their '3111
.Congress.

MOV3S

vo tea No.

188

Miller votes for 07,H nes resrlution 1 L e the above.

Passed. 189

3.cact1y liie Dawe.. 189

Miller votes acainst re.,olution of

salarie....
liner ILIOVed Govemors bill be referred to camIttee on
Defeated.

189
rejected.

Long Beach applieation
Millar refused to

VC.3.
Dec.

:,liller t h3n

Ti3 vote.

17, 193.

ved. tc r3cond ler.

191

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Federal Reserve Bank of St. Louis

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Dr. Adolph (Cont.)
hz4 refused to vote.
Gov. C. ruled he ccula so move although he
Adjourned.

Leo. 17, 1923.

191

Beach and
Mi1l9r voted, on reconLiderati , n, in fvor of Lon:Watson City branches, which were approved.
Dec. 18, 1923. 192
hcwever,

Miller also voted fcr th3 Santa *!%ria
was rejected. 192

Reach -as
r.-.H. thinka Miller's course in refuinr to vote on Long
extraordinary. 192
Miller votes ar:ainst incr2asing

Ac-ent Curtiss' salary to $20,000
Leo. 19, 1923. 192

Counsel's office
The Board, lei by tller voted to drop Bradley, of
on Jure 1, 1r/'..4. Dec. 20, 1923. 193
or mercy.
Miller revels in lowering wages without regard to justice
193
Miller upposes increase in salary of P.R. Agent Austin from
Dec. 19, 1923. 193
$15,000 to $17,000.
Miller ...ays the investigations of the economy Aril efficiency
committee have already- shown that Austin is utterly unfit
for his positicn. Dec. 19, 1923. 193
nt
0.6.H. Says he will githdraw his -cticn because of above statsme
of ii1lsr. Leo. 19, 1923. 193
C.S.H. moves that Bradley be kept on rolls at $1800 and Platt
joins him for Law Coa.wittes. Dec. 31, 1923. 194
Law
Miller was bitterly offensive to C.S.H. and Platt, - tl- e
Comittee.
Miller said we were tryint to carry along deal timber; that the
report of the salarie. comAttee was the most carefully
ma-te he had ever seen; that if the Board did not sustain it
he should move to aisaharze all committees.
194, 195
Miller voted ags-Anet $1800 motion.

195

chauffeur,
Miller's talk about d- ead wood. rarAnia C.F.H. of
Smithson, aid his washerwoman, and Mrs. Hutton.
(See diorias, Vol. 4, p. 98, 173, 176, 177, 178, 179, 1'30, 181)

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Federal Reserve Bank of St. Louis

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Miller, Dr. Adolph (Cont.)
any increase in salaries of
Miller told Platt he should oppose
advance to carry out any
P.R. Agents who would not agree in
ciency Cannittee as to
lffi
and.
omy
recommendations of the Econ
hly reports. 198
cutting dowl and changing their mont
s to vote against increasing
C.S.B2 believes Miller induced Jame
had told C.S.H. he would
P.R. Agent Curtissts salary. James
vote in favor of this increase. 198
Mint, Director of the U.S.
See - Scobie
24
Mitchell, Tederal Adiisory Council.
d
Boar
See. - Mitchell, John, F.R.
Mitchell, John, lederal Reserve Board
of lederal Resenrebanks
Mitchell aapports C.S.H. as to necessity
1922. 7
earning expenses and dividends. Oct. 13,
•
Spokane branch banks be
Moves that the Portland, Seattle and
consolidated into one. Dee. 2, 1922. 12
fornia special savings
Votes in favor of 3% reserve against Cali
accounts. Dec. 6, 1922. 18
Mr. Mitchell of the
Mitchell tells Board that While in Chicago,
urg and Rue had
Fedora Advisory Council told him that Warb
New York that
wired him that Gov. Harding had told them in
ation as a
he had withdrawn his namd from further consider
d him to
urge
they
member of the Federal Reserve Board; that
of
any
Comp
t
push Mr. Wailer, President of the First Trus
been
also
had
Chicago (rorgants bank) for Governor; that he
Rum
and
urg
Warb
told by some one (.C.S.H. forgets who) that
t
eten
comp
were
t
intimated that neither he (Mitchell) or Plat
New
of
t
Jay,
to be Governor, and that Feddral Reserve Agen
York, had expressed the same opinion.
Dec. 16, 1922. 24
Mitchell was very any with Jay and said
stand that he respected himself and
did not; that be was sorely tempted
told Gov. Strong what he thought of
undoubtedly tell Jay. 24

he would let him unierPlatt, even though air
to write Jay, but he had
him, and Gov. S. would

trust Crissinger and
Mitchell said the influential bankers did not
his name
were appalled at the base at the base suggestion of
as Governor. 24
of President Harding
Mitchell sail it would be an affront on the part
24
to designate anyone as Governor over their heads.

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Federal Reserve Bank of St. Louis

.167-

Mitchell, Johns 7ed3rel Reserve Board (Cont.)
as Governor he would
Mitchell said if Crissinger were designated
lyas long as he
loyal
him
rt
go to him and say he would suppo
- meaning clearly,
),
Board
the
(Mitchell) remained a member of
n. 24, 25
as C.S.H. believes, that he would at once resig
rlsigi within a week;
Gov. Harding tells C.B.H. that Mitchell will
Harding for his
dent
Presi
with
tbat he was utterly disgusted
become alienated
failure to reappoint Gov. Harding; that he had
dirt farmer on
from Senator Kellogg for his work in putting a
-all done to
the rederal Reserve Board, and for his bonus vote,
vote for him
curry favor and. catch votes; that he could not
ted.
and was glad he was defea
Dec. 28, 1922. 33
•
e the January
Gov. Harding said Mitchell will resign noir befor
ble for reelection
eligi
be
to
as
so
elections of bank officers,
33
1924.
ry,
Janua
as a bank officer by
tion,
Mitchell tells C.S.H. that at C.S.H.Is New Year's recep
not
would
ng
Hardi
dent
Presi
vihy
him
Senator Pcmerene asked
se of
becau
was
it
him
told
he
that
and
reappoint Gov. Harding,
tor
Direc
C
Class
as
cck
Const
nt
appoi
to
the refusal of the Board
to
amasei
at Kansas City; that Pomerene said he was absolutely
. learn this.
Jan. 2, 1923. 35
this to any
C.S.H. told Mitchell he had carefully avoided telling
35
all.
Marsh
dent
one, WV= to Vice Presi
scrupulously
C.S.H. told Mitchell, that as a Democrat he had been
careful not to criticise the President. 35
this. 35
C.S.H. feels Mitchell should not have told Pcmeren• of
the Director
Mitchell tells C.S.H., Platt, and Hoxton that Scobie,
r, a.
of the U.S. Mint and Crissinger originally wanted Brewe
at
National Bank Bxeminer appointed Federal Reserve Agent
Dallas; that he was the choice of all th3 Texas Republican
y up
politicians; that he (Mitchell) told them Brewer was hardl
to the job.
lung
C.S.H. remembers that Brewer came from Marion, Ohio, had sane
Board.
Ow
e
trouble, end finally went to Texas. He case befor
during the war or after in a hearing on (settle loans and made
rather a poor impression on the Board.
Mitchell said the politicians then took up Collier, Vice President
of a Texas bank; that *Mazy, nominated for Comptroller, was
strongly for him.

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Federal Reserve Bank of St. Louis

-168-

Mitchell, John, Federal Reserve Board (Cont.)
from President
Mitchell said Crissinger shoved him a letter
Nbosse of Texas
lican
Repub
Harding stating that Creger, the
icn should be
ieniat
reccan
had indoised Collier and that his
followed.
practically every
C.S.H. analysed the letters favoring Collier;
the Currency and
of
r
rolle
Caapt
letter was addressed to the
the appointment
not to the Board; several of them stated that
Collier wo'lld
would be pure polities, and. that Creger said
giftio
tmas
Chris
a
*as
shortly be appointed
over-officered
Mitchell told the Board that Collier's bank was
by dunping him
and. that the bank desired to rid itself of him
al the Federal Reserve System.
ical drive arzi
Collier's indorsements bore plain marks of a polit
C.S.H. believes it was engineered by Crissinger.
irevious
Some of the letters indorsed Collier subject to
y.
indorsement for Talle
Mitchell said he ass rather inclined to favor Talley.
Reserve Bank,
C.S.H. pointed ou.t that the Directors of the Federal
y.
scam of the Republicans, had unanimously indorsed Talle
Dove called
C.S.H. told Mitchell that former Assistant Secretary
said
an him and said, that Talley was the best man, and he
the same to Platt, to whoa C.S.H. introduced him.
C.S.H. fears another political row, as in the Comstock case.
case, was
President Harding's letter, unlike that in the Comstock
not filed by Crissinger on the Board's files.
Jan. 24, 1923. 41, 42, 43.
would not
Mitchell says President Harding told Sen. Calder that he
rmed.
sign Campbell's commissicn until McNary was confi
Dirty politics. Feb. 9, 1923 45
•

n on
Mitchell reads letter from Kell at Dallas urging quick actio
49
1923.
21,
Federal Reserve Agent at Dallas. Feb.
Mitchell says the choice is between Collier and Talley.
,
Toted that the casunittee, - Mitchell, Platt and Crissinger
43
report on Friday as to the best man.
Judge Ball of Fed'area Adviscey Council says Collier is a good
fellow but that Talley is by all odds the best men; that he

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Federal Reserve Bank of St. Louis

-169-

Mitchell, John, Federal Reserve Board (Cont.)
had indorsed Talley but was told he had no chews and then
he wrote recan.nending Collier; that Talleyis appointment would
eliminate politics; that "politics" las behind Collier; that
Talley had been told. that if he would Ave credit to Creger
for his appointment, Creger would secure it for him, but that
Talley had declined.
Judge Wall said Talley was a Republican.
Feb. 21, 1923.

46, 49, .50

Crissinger said he would. vote for Collier, as would. also Ms:Mary,
if confirmed; later said he did. not kixow how McNary would
vote. He evidently, however, is awe McNary will support the
administration candidate.
until
We all felt Crissinger would insist on holding up the matter
not.
did
he
but
office,
the new appointees had taken
Feb. 23, 1923. 51
Mitchell reported for the comittee that Collier was an estimable
gentleman but that his banking career was not conspicuous
for ility, andthat the committee after careful investigation
were satisfied he was not fit for the jot; that Talley,
• barring acme temperamental peculiarities, was first class,
and rec ommended
All voted for Talley except Crissinger who voted for Collier.
Miller voted finally for Talley but raised all sorts of objections
to him, to please Crissinger.
See - Miller, Feb. 24, 1923. 51
Mitchell says he is to resign from the Federal Reserve Board; he
put it primarily to the necessity of attending to his private
affairs, but spoke very freely of his disgust with President
Harding's political interference with the Board, especially as
to Cbmstock and Collier.
Re said he would do nothing for the present but go west for a ,
month or so to attend to his personal as tters.
March 13, 1923. 61
Mitchell said President Harding had. accepted his resignation to
take effect Mef 12.
April 28, 1923. 9?
Mitchell showed the Board a very flattering letter from President
Harding speaking of his distinguished service on the Board,eta.
97

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Federal Reserve Bank of St. Louis

-170-

.)
Mitchell, John, Federal Reserve Board (Cont
yesterday, C.S.H.
ng
Hardi
dent
Presi
saw
be
Mitchell said
he bad done
thinks; that he said to Harding that be felt
ng did not
Hardi
some things on the Board Wht h President
approve. 97
greatly disturbed
President Harding told Mitchell he bad been
recommeriations,
his
because our Board fhiled to carry out
he was the
,
evidently thinking, or appearing to think that
appointing power fcr the Board. 97
the Class C
President Harding told Mitchell be had promised
our Board
while
ns,
directorship at Cleveland to Mk. Mulli
dent's
Presi
the
of
edge
appointed Mr. Knight in full knowl
wish. 97
annoyance beaaase
President Harding also expressed to Mitchell his
C Director
Class
as
l
our Board did not appoint Leffingwel
at New York.
and C.S.H. wanted
(The Board was seriously considering Leffingwell
Gov. Strong,
from
rs
him appointed became he often diffe
thing, but
good
a
be
and C.S.R. thought that this would
his position
up
give
to
want
not
Leffingwell decided he did
withdrew
fore,
there
and
,
banks
as Attorney for a nmaer of
his name.)
against the
President Harding also spoke to Mitchell of his feeling
ted that
admit
he
ugh
altho
ock,
Comst
Board for not appointing
man.
good
a
was
nted,
Hord, *has we appoi
April 28, 1923. 97
not
Mitchell said to President Harding that the Board bad
ed attacks
alleg
his
of
ms
becal
land
Cleve
of
d
reappointe Wolfe
edge
on Harding (circulating the negro rumor) and their knowl
that this would have been offensive to Harding. 96
our Board
President Harding said he wouli have felt very sory, bad
appointed Wolfe. 98
tary,
Mitchell said be thought Christian, President Harding's Secre
ts
ntmen
had made Harding believe he had power to make all appoi
on,
in the Federal Reserve system, and that, in his opini
Christian was a stinker! 98
Mitchell, National City Bank
Attends Cubah agency hearing.

May 7, 1923. 107

Favors keeping Cuba supplied with our currency but opposed giving
power to an agency to buy or sell cable transfers, bills, or
acceptances, because it would mean a competitionwith member
107
banks.

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Federal Reserve Bank of St. Louis

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Mitchell, National City Bank (Cont.)
ete with msmber banks,
He was asked how the agency could comp
originate with
When all transactions of the agency must
ve. 107
banks, of their own volition and initiati
intimated that if all
He could, not answer this, but vaguely
at least American
transactions were limited to banks, or
after talking
banks, he might favor the agency. Later,
lly withdrew
with Durell, his Cuban manager, he practica
cy would enable
agen
his objections and admitted that each an
25% OWN carried)
from
his bank to lower their reserves in Cuba
ribute to the
cont
to
to 10%. He wan said he might be willing
108
do.
expense of such an agency, if asked so to
Mitchell who said
Curtiss says be rode back on the Railroad with
y, but he did not
ssar
he considered an agency absolutely nece
gnated; that
desi
be
care whether Boston or Atlanta should
Atlanta had
use
beca
be had favored Atlantias to note issues
lutely free
abso
,
Cuba
in
d
agreed to furnish him notes delivere
of charge, if it should be designated.
Curtiss said 1/8 of 1% should be charged.

May 8, 1923. 110

cy given to Mitchell's
Gov. Harding asks Board to revoke the agen
Reserve bank of New
ral
Fede
National City, by the
bank,
134
York. May 26, 1923. 132, 133,
hell favored Atlanta for
Gov. Harding says in a memorandum that Mitc
the agency. May as, 192a 133, 136
Money market
See - Dividends and expenses
Govt. securities
Open market operations
Morgan, J. P.
See - Mellen

139

Mores, Gov.
with Perrin
Believes in direct action on credits. Agrees
Oct. 13, 1922.
defeated, - that F.R. banks
Amendment to Gov. Strong's maim
nts in proportion
should decrease open market investme
Morse wanted to
that their discounts increased. Gov.
Oct. 13, 1922. 8
add "and as gold imports increase."
to resign.
Curtiss tells C.S.H. that Gov. Morse is
Gov. Calkins, and that his
C.S.H. says he heard this first from
rrassed him.
failure to tell him before bad emba
Dec. 7, 1922. 18, 19

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Federal Reserve Bank of St. Louis

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Moss, Asst. Secretary.
secretary of Asst. Sec. Moss
Eddy tells C.S.H. that the private
Moss wanted. to have
had come to him and said. that Asst. Sec.
H.'s roan,
C.S.
in
nav
the picture of John G. Carlisle,
say to him that
to
Eddy
told
transferred. to his roan. C.S.H.
picture as he had
C.S.H. had much sentiment about this
, ant was an intimate
1897
to
served. under Carlisle from 1893
. that all of the
friend of his, but that he fully realised
to the Treasury,
nged
belo
ding
buil
pictures in the Treasury
course C.S.H. could not
and, that if Asst. Sec. Moss installed, of
and would not offer any opposition.
s3cretary, but he said. to him
Eddy says he said, this to the private
ure.
Asst. Sec. Moss wished to have the pict
removed.
C.S.H. tells Eddy to permit it to be
and that Moss might at
C.S.H. feels this to be most discourteous
1923. 66
least he acme to him in person. Mar. 24,
C.S.H. told Anna and. H.P.H. about this.
etary Gilbert ath
Anna tells C.S.H. she dined with Miter Secr
was most rude,
jokingly told him about it, and he said. Moss
est, as the
and that he had no power to make such a requ.
was under Asst. Sec.
pictures were Under the Chief Clerk who
itadswcr th. Mar. 25, 1923. 66
Moss's rudeness; thinks
Gilbert calls up C.S.H. and apologises for
Very fresh secretary.
it must have originated with Moss's new mid
an ceder that Sec. Carlisle's
Tells C.S.H. that Sec. Mellon has issued
picture is to remain in C.S.H.Is room.
Mar. 26, 1923. 67
Motions, Resolutions, etc.
22,49,81,84,105,110,112,150,152,189
See - Votes
Mulls=
ding) had promised the
President Harding tells Mitchell that he (Har
Mullions, but that the
Mr.
Class C Directorship at Cleveland to
d Mr. Knight.
inte
appo
,
Board, with full knowledge of this
97
.
1923
28,
l
Apri
Munsey
will cane out for Ford
Mr. Howell tells C.S.H. he believes Munsey
8, 1923. 148
June
for President. New York Herald..
Myer, Gertrude 181, 182, 183
See - Hale, Mrs. Che.ntilor

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Federal Reserve Bank of St. Louis

-173-

-N-

National Bank Examiner
See - Brewer
National Ban Examiners 13
See - Examinations
National bank notes
of national
Gov. Harding says the U.S. money in Cuba consists largely
largely.
notes
I.R.
Atlanta
of
bank notes and 40 or 50 millions
April 30, 1923. 99
National banks, Savings accounts, F.R. Act
Sistory. 94
See - Willis, Dr.
National City Bank
as it
Gov. Case admits the National City Bank wants the Cuban Agency
•
will give them spot cash for cable transfers and acceptances.
April 30, 1923. 102
SOO-

Mitchell

Gov. Harding says National City bank some time ago was made the
agent of Federal Reserve Bank of New York on the understanding
it was to do nothing under it, but that it is advertising this
agency relation very extensively over Ohba, thus creating the
impression that it has facilities not enjoyed by other banks in
Cuba; that after its designation, it asked the Federal Reserve Bank
of New York to deposit with it a large amount of Federal Reserve
notes so it could exchange them in Wha for unfit currency, but
that this was decline; that it made the mime request of Atlanta
but the Board disapproved an representations from Gen. Crowder
that this would be a discripination against other banks doing
business in Cuba; that Mitchell, President, does not want his
agency disturbed; that Mitchell said an Agency would be of
advantage but that it should be Atlanta; that his reason far
preferring Atlanta was that Atlanta had agreed, if designated, to
furnish Mitchell branch in Cuba with currency free of all expense
to it; that Mitchell hopes, after this agitation had died down,
to be made the active agent of the Federal Reserve Bank of New York
and to do all that the Federal Reserve Bank of Boston wants to do
in Cuba, - buy and sell cable transfers, bills ani acceptances,
and to pay therefor from funds furnished it by the Federal Reserve
Bank of New York; that this would be discrimination against all
banks in Cuba; that the Board should at once revoke the designation
of the National City Bank as agent of the Federal Reserve Bail of
New York.
May 26, 1923. 132, 133, 134

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Federal Reserve Bank of St. Louis

-1744

National City Bank (Cont.)
a should
Gov.H. says Mitchell of National City said that Atlant
be designated.
See - Mitchell
National Grange
C.S.H. gives lunch to officers of.
List of those present:Lowell, Grant Master
Eckert, Master Illinois Grange
Thcmpson, South China, Maine
And others
To meet them:
Sec. Mellon
Platt, C.S.H., Hoxton
Meyer, Eugene
Cris singer
Farm Loan Board
Signora Agristi. Feb. 28, 1923.. 54
New, Postmaster General
Was the only member of the Cabinet to go to Railroad station to
see Mrs. Harding off. Sept.4, 1923. 166
New Year's reception
About 300 attend New Year's reception of C.S.H. and H.P.H.
Jan. 1, 1923. 34
New York
Discount rates. 47, 48
Philippine Climber of Commerce. 91
S.. - Willis
See also - Case, Gov.
Cuban Agency
Jay, Federal Reserve Agent
Strong, Gov.
New York Herald
Mr. Howell of Atlanta Chastitution says Munsey will come out for
Tort for President. June 8, 1923. 148
New York, N. H. ant H. Railroad
See - Mellen
Newsome

139

Asks to be relieved as soon as possible from F.R. Agency at Dallas
Tab. 21, 1923. 49, 52

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Federal Reserve Bank of St. Louis

-175-

Niblack, Admiral
n that
Very bitter against Lodge for saying in the recant campaig
it
said
He
.
t
Turkey
agains
Wilson should have declared war
war;
d
declare
have
to
not
was a master piece of diplomacy
that the Turks liked the U.S. and would do all in their
power to work amicably with US; that Acyniral Bristol was the
senior diplomat in Greece and Turkey and held the Turkish
saw
leader Menai in the hollow of his hand; that France now
as
n,
Great
Britai
t
agains
her mistake in favoring the Turks
n;
Britai
Great
did
she
as
hard
as
Turkey had thrown down France
Turks
the
that
k;
y
pro-Tur
frankl
that as against Greece be was
were far better and cleaner than the Greeks; that their word
was as good as their bond, etc. etc. that the U.S. was now
sending a battleship through the straights with supplies for
the Russians and that Menai would let it go through, holding
it up perhaps for a few days as a matter of form; that we had
a right to demand this, never having declared war against
Turkey.

•

to their
Admiral Niblack also said that the Bolsheviks had lived up
s,
eipplie
of
ts
shipmen
the
to
as
U.S.
the
agreements with
.
public
made
been
never
had
this
reason
some
but that for
Nov. 10, 1922. 9, 10.
Norman, Gov.
C,S.H. and H.P.H. give a dinner to Baldwin, chancellor of the
Uchequer, and Norman, Governor of Bank of lInglani.
Present:
Senator and Mrs. Glass; Comptroller and Mrs. Crissinger,
Mrs. Frei Grant, Senator and Mrs. Kendrick, Asst' Sec. and
Mrs. Walsworth, Mr. and Mrs. Waring, Charles Warren and
Anna Hamlin.
Jan. 15, 1923. 38
Norris, Gov.
Votes for 3% reserve against California special savings accounts.
Mar. 27, 1923. 76
Attends hearing on Cuban Agency.

April 30, 1923. 99

Favors a Federal Reserve Agency in Cuba but says Philadelphia
does not want it. April 30, 1923. 100, 101
North Carolina
Gov. Crissinger favors excluding from the pax list chacks on
North Caro;ina banks and others having a statute enabling
banks to iday checks drawn on them in exchange.
June 16, 1923. 155

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Federal Reserve Bank of St. Louis

Norton, Charles

182, 183
Chandler
Mrs.
Soo - Hale,

Olney, Mrs. Richard
rd Olney at Palmouth
Mrs. Wilson Mli H.P.H. call an Mrs. Richa
163
but she was out. Aug. 29, 1923.
Open market operations
3,4,5,8,76
Se'e- Dividends and expenses
agricultural products
Domestic secured acceptances covering staple
20
1922.
12,
with 6 months maturity. Dec.
Central committee. Mar. 27, 1923. 76
Acceptances.

Warburg
April 12, 1923.

U.S. Treasury operdtions, Iffect on.

April 12, 1923.87

ng Govt.
Taussig was shocked at diggestion of P.R. Banks selli
otherwise
se
becau
t
marke
the
of
' securities and drawing out
Taussig
d.
rasse
embar
be
might
Treasury sales of secvrities
as
it
just
t
marke
the
ach
said the Treasury should appro
e
creat
not
d
shoul
Board
ve
found it, dad that Federal Reser
ury.
Treas
the
help
to
any artificial conditions
April 19, 1923._ 90
iar conditions
C.S.H. agreed absolutely, but said because of pecul
decrease
banks
ve
Reser
al
Ireder
g
he would not Object to havin
that
but
y,
raril
tempo
ities
their holdings of Govt. Secur
earn
to
duty
plain
their
was
it
whole
a
taking the year as
t
marke
the
on
t
effec
the
ver
whate
nds,
expenses and,divida
90
be.
might
or the Treasury
Taussig said he agreed with this latter.

al ReserVe
Platt writes Sec. Mellon as to proper holdings by leder
banks of Govt. securities, and Sec. Mellon told Platt he
agreed with him. April 20, 1923. 90
Se - Platt
Ottley
Attends Cuban agency conference. May?, 1923. 109

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Federal Reserve Bank of St. Louis

-177-

Ottley (Cont.)
C.S.H. meets Ottley at dinner tendered him by Atlanta bankers.
June 7, 1923. 147
Ottley tells C.S.H. that before he came he had said publicly
he would be damned if ha would agree to any compromise on
the Cuban agency, but C.S.H.Is reasoning was so convincing,
and his dinner address so charming, and the directors have
such affection for him, that we all were turned around
C.S.H.Is finger and rather enjoyed being so twisted.
June 8, 1923. 147, 148
-P-

Pacific S.W. SaVings and Trust Company
Board had ruled that the examination of the bank had been made
by the F.R. Bank and not by the state, and that the expense
must be assessed upon the bank.
Dec. 9, 1922. 23
Porterville branch.

Declined.
July 31, 1923. 159

Granted.

Nov. 22, 1923. 179, 180

Sae - Branches
Paige, senator
Did not vote on Mcblary confirmation at committee meeting, but
he told Sen. Calder that, as a forMer national bank
president, he felt McNary was not a fit man for Comptroller.
Mar. 4, 1923. 55
Patten, Miss
Mary Patten tells C.S.H. that Sec. Hughes was crazy to be
appointed Chief Justice; that he was sure he would be, and
when people apoke to him about it, made nod. isclaimer;
that he was bitterly disappointed when Taft got the
appointment, but gamely said it vas a good appointment.
Nov. 29, 1922. 10
Tells Gov. H. to warn C.S.H. and family or fact that they are
thought bitterly partisan.
Dec. 24, 1922. 26, 27, 28
See - Haritag
Peace
See - Carnegie Foundation

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Federal Reserve Bank of St. Louis

-178-

Pension Plan, F. R.
Board considered bill prepared by the Governors for a pension
plan for Federal Reserve employees including those with
salaries up to and including $18,000.
Board, two years ago, favored this plan in principle.
The new members vigorously opposed any pension plan.
Dr. Miller said he would approve it if restricted to those having
salaries not over $5000.
•

•

the
Th3 Board unanimously opposed request of Garernors to start
plan without authority from Congress.
a
C.S.H. offered a resolution favoring the general principle of
of
classes
limited
pension plan carefully guarded for
employees.
Defeated:
Aye, C.S.H., Platt, Miller
No, Cris singer, James, Cunningham, Dawes
Dawes moved reconsideration
Carried:
Aye C.S.H., Platt, Crissinger, Dawes
No., James, Cunningham
Dawes moved that, without indorsing the general principles of
a pension system, the Board will interpose no Objection
to the sUbnission to Congress by the Governors of
their bill.
Defeated:
Aye - C.S.H., Platt, Dawes
No - Miller, Cunningham, James
Cunningham said: "By Gail I want vote for any pension plan.
I need one myself more than they do."
Dec. 7, 1923. 188, 189.
C.S.H. again moves that Board approve general principle, et*.
(See scrap book)
To C.S.H.Is amassment Gov. Crissinger chanted his vote and
the resolution Ras carried.
Aye - C.S.H., Miller, Gov. C. Platt
- Cunningham, James, Dawes
No

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Federal Reserve Bank of St. Louis

-179-

414

t.)
Pension Plan, Federal Reserve (Con
e no objection to Governors
rpos
C.S.H. moved Board. will inte
.
introducing their bill in Ccngress
Dec. 7th, but Dawes voted
This was same as Dawes motion of
against it.
.:
ated
Defe
Aye - C.S.H., Platt, Gov. C.
Dawes
No - Miller, Platt, Crissinger,
s had asked. our consent to
C.S.H. pointed. out that Governor
either apprcrle or deny.
introduce the bill, and that we must
on salaries. defaated.
Miller mowed refarence to ccramittee
action must be taken on
C.S.H. rose to point of order, that some
Governors request.
.
Gov. C. sustained. point of o rder
coamittee which, however,
Board referred. matter to salaries
d by the resolution
bitterly objected as they would be boun
in which they did. not believe.
Dec. 13, 1923. 189, 190
Mellon said he thoroughly
00v. Strong tells C.S.H.that Sec.
believed. in a pension plan.
d Gov. C. to change his vote.
C.S.H. believes Sec. Mellon persuade
Dec. 13, 1 923. 190
Pepper, Senator
and Hitchcock, state that
Senate Gubcommittee, Pepper, Cousens
1923. 46
McNary can not be confirmed. Feb. 9,
told Pr3sident Harding,
Senator Cousins tells C.S.H. that he
k, that Ms:Nary
together with Senator Pepper and Hitchcoc
could not be confirmed.
Feb. 10, 1923. 46
Pepper changed his mini and.
Sen. Calder tells C.S.H. that Senator
Mar. 4, 1923. 55
voted in the comad.ttee to confirm McNaryl
irm a man he said was
C.S.H. is smased at Pepper in voting to conf
and even said all
erry
not fit; yet Pepper voted for Newb
nst him. 55
agai
.
Democrats were insincere who voted
will outrival Que4, and
C.S.H. predicts, sorrowfully, that Pepper
56
Penrose as a machine politician.

a a tea when Miss
Last week H.P.H. was talking with Mr. Pepper
H.P.H. she thought
Lee came up and. said that whenever she saw
the League of
of the sturdy way in which H.P.H. fought for
Nations.

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Federal Reserve Bank of St. Louis

-180-

Pepper, Senator (Cant.)
H.P.H. said., "Be careful or you will have pepper throw
n in your
eyes.'
Mrs. Pepper laughed and then said that her husband,
Sen. Pepper,
was changing his views as to the L. of N.; that
he now felt
it was doing very good work along the lines of inter
national
public health and as to other questions where it
had no
power but could make recanneniationa, etc.
C.S.H. thinks
Pepper must be getting ready to 'flop" on the
L. of N. just
as he did on McNaryl
Mar. 4, 1923. 56
Senator Glass speaks in terms of contempt of Sen.
Pepper and his
conduct as to MoNary; said that Senator Watso
n told Presid6nt
Harding that there was scarcely a Senator,
Republican or
Democrat, Who believed MoNary a fit man for
Comptroller.
Max. 4, 1923. 58
Perrin, Federal Reserve Agent
Makes effective argument for direct control of credi
ts, at
conference of Basra, Governors, and Federal
Reserve Agents.
Oct.13, 1922. 1
Board refuses perrinis application for approval
to buy land for
Portland branch. Dec. 2, 1922. 11
Tells Dr. Miller that the Bank of Italy has been
managed in a
careful, conservative manner. Dec. 5, 1922. 17

•

Entered into agreement with State banks desir
ing to enter the
F.R. System to examine them without cost to them.
Dec. 9, 1922. 20, 21
Reports to Board that there is no neeessity
for further banking
facilities at Pasadena on applt: ation of Los
Angeles Savings
& Trust Co. Jan. 2, 1923. 34
See - Branches

•

No notice was sent to Perrin of vote of
Oct. 10, 1922, requiring a
10% reserve on special savings accounts,
but a similar vote
of Dec. 6, 1922, was duly sent him.
May 3, 1923. 104
Board voted to put above decision into
final form and send it to
Perrin. May 3, 1923. 105

•

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Federal Reserve Bank of St. Louis

-181-

Pepper, Senator (Cont.)
Recommends favorable action on application of Bank
of Italy or
its auxiliary corporation to purchase a bank in bad condi
tion
at Ontario. May 22, 1923. 125, 126
Perrin wires Bank of Italy has filed application
to turn Ontario
bank into a branch, and Board grants this.
May 24, 1923. 127
Board asks Perrin to review his unfavorable recommen
dation as to
Yuba City branch. NOV 24, 1923. 127, 144
See - Branches
Sends Board another report on Yuba City changing
his first report
and recommending approval. June 12, 1923. 150,
151
Miller says Gov. C. can not claim that there
is no need Dpr further
banking facilities at Yuba City, in view
of Perrin's second
favorable report. June 14, 1923. 153, 154
Elliott again asks to be shown copy of Perr
in's second report on
Tuba City. July 31, 1923. 159
Board votes to send copy of resolution
of Aug. 2, 1923, to Perrin.
Aug. 2, 1923. 161
Perrin protests against giving resoluti
on to banks interested.
Aug. 14, 1923. 162
Approves Long Beach and Watson City
apclicaticn.
Dec. 17, 1923. 191
Pershing, Gen 3r al
Likes McNary vary much.

Jan. 21, 1923. 40

Philadelphia
118, 135
See - C uban agency
Norris, Gov.

Philippine Chamber of Commerce. 91
See - Willis
.

••

Philippine National Bank 92
See- Willis
Philipps, Under Secretary. 106
See - Cuban agency
Platt amendment
99, 123
Sea - Cuban ag3ncy

•

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Federal Reserve Bank of St. Louis

-182-

NAM, Vice Governor
Says the National bank examiners brouisht by Cris singer before the
Board admitted that it waa no more difficult to examine a
bank with 65 branches than 65 unit banks.
Dec. 5, 1922, 14
Reserves right to M.0179 to reconsider decision that California special
savings deposits must carry 10% reserves.
Dec. 6, 1922. 17
Will, at next meeting, move to reconsider ruling making certain paper
of cooperative marketing associations agricultural paper, to
make record clear as to just vhat Board voted.
Dec. 14, 1922. 23
Mitchell says Warburg and Rue intimated thi Platt was not fit to be
Governor of the Federal Reserve Board.
Dec. 16, 1922. 24

As.
•410

Indignant at possibility of Crissinger being designated as Governor
over his head.
Dec. 16, 1922. 24
C.S.

and H.P.H. take Mr. and Mrs. Platt to Alexandria to atteni
wedding of Hoxton's daughter. Jan. 12, 1923. 37

Former Asst.Sec. Love tells Platt that Talley is best man for
Federal Reserve Agent at Dallas. Jan. 24, 1923. 42, 43
Wants Board to advise New York that it concurred in recommendation of
Federal Advisory Council for higher rates at New York,Boston
and San Francisco, - from 4 to 40.
Feb. 20, 1923. 47
Calls special meeting to consider application of New York for increase
in rates. Feb. 21, 1923. 48
Tells Board Mellon can't come but favors the increase.
Feb. 21, 1923. 48

•ttI

.1%

Tells Board Newsome wants to be relieved of Federal Reserve Agency at
Dallas. Feb. 21, 1923. 49
Appointed, with Mitchell and Crissinger on committee to report name for
Federal Reserve Agent, Dallas.
Feb. 21, 1923. 49
Mellon,tells Platt he favors lower reserve requiraments for two St. Louis
banks but does not want to oppose Crissinger.
Feb. 21, 1923. 50

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Federal Reserve Bank of St. Louis

483'

Platt, Vice Governor (Cont.)
Miller attacks Platt and Mitchell for their report favoring Talley
for Federal Reserve Agent at Dallas.
Feb. 24, 1923. 52
Attends lunch to Executive Committee of National Grange given by C. S.H.
Feb. 28, 1923. 54
Votes to interpose no objection to the erection of a Federal Reserve
branch building at Little Rock.
Mar. 16, 1923. 63
Votes with C.S.H. to strike out reference to power of Board to
regulate amount of open market I:archaises of Govt. securities,
in proposed circular.
April 3, 1923. 79
Speaks on application of Boston to establish Cuban agency.
April 4, 1923. 83
Votes to approve purchase of El Centro bank, without being committed
as to running it as a branch. April 10, 1923. 83
Agrees with C.S.H. that refusal of Board to reconsider El Centro, does
not commit Board to policy of soning, etc.
April 10, 1923. 84
Taussig talks with Platt and C.S.H. on discount rates, open market
purchases, etc. April 19, 1923. 88
Platt asks Taussig as to policy of Federal Reserve banks withdrawing
from the market by selling their holdings of Govt. securiti•s.
April 19, 1923. 89
Platt tells Taussig of Treasury policy that Federal Reserve banks get
out of open market because of interference with Treasury's placing
certificates and Taussig is shocked.
April 19, 1923. 89, 90.
Sends letter to Sec. Me11cn stating?Federal Reserve banks investiments in Govt. securities has fallen
from 603 millions 6n May 31, 1922 to 239 millions on April 4,1923,
a decline of 355 minims; that of this 239 millions, 10 millions
were held under repurchase agreemants, and 39 millions were
holdings of Govt. bonds nearly all bought before the war under
Section 18, some of which baar the circulation privilege and
others were conversions into 3% bonds; that subtracting these
only 189.5 millions are left as investments by Federal Reserve

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Federal Reserve Bank of St. Louis

.184-

Platt, Vice Governor (Cont.)
banks, of Watch 34 millions ar e Dec. 1923 maturities, 2 millions are
Max'. 15, 1924, maturities, and the balance - 117.5 millions are
Treasury notes.
Platt further pointed out that since May 17, 1922, itederal Reserve banks
he sold 14 .illions of U.S. bonds bearing the circulation
privilege, which, in his opinion, they ought not to have done, as
it will result in putting an equal anount of national bank notes
into circulation.
Platt says above figures show a very drastic deflation.
Platt further said that the Federal Reserve banksbave 137.4 millions
invested in Govt. securities less than their capital and surplus,
and, that, therefore, these holdings are not inflation.
Platt said the Federal Reserve banks bad agreed to sell to the Treasury
its Sept. 15 maturities, which would leave them with only 153
millions invested in Treasury notes and certificates. 96
Platt said he favored 153 millions as a minimum and 350 as a maximum,
.and that Sec. Mellon agreed to this.
Platt said the purchase of acceptances in open market go, prima facie,
directly to finance business transactions, differing tram purchase
of Govt. securities in their effect on the market. 96
Says Treasury wants a Cuban agency established.
April 30, 1923. 102

Platt asks Warburg's opinion on Cuban agency draft.
•

May 1, 1923. 103
Warburg tells Platt he supposed the Cuban agency was to be a member
bank and not a Federal Reserve stency.
My 2, 1923 104
Votes against C.S.R. motion to reconsider decision as to reserves
against special savings bank accounts.
May 3, 1923. 106
Moves that these savings accounts are not savings accounts under
Sec. 19, Federal Reserve Act.
May 3, 1923. 105
Platt says Under Secretary Philipps told him that State Department
had no objection to Cuban agency. May 4, 1923. 106

•

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Federal Reserve Bank of St. Louis

-185-

Platt, Vice Governor (Cont.)
Withdraws motion to designate Boston for Cuban agency because of
President's desire to look into the matter.
lay 8, 1923. 110
Moves that Boston be designated for the Cuban agency.
May 9, 1923. 113
Votes to permit purchase by Bank of Italy of insolvent bank at
Ontario. May 22, 1923. 126
Approves C.S.H. plan for a joint Cuban agency.
May 24, 1923. 130, 138
Agrees to See Sen. Loige with C.S.H. as to Cuban agency.
May 28, 1923. 139
Moves to reconsider vote disapproving application of Bank of Italy
for a branch at Sacramento.
June 1, 1923.
143
Agrees with C.S.H. that Board is bound to accept certificate of
state bank Superintendent. June 1, 1923. 144
Attends conference with Johnson, Calif. Banking Superin
tendent.
June 4, 1923. 145
Agrees with C.S.H. that Board scale time ago voted to ask opinion
of
Attorney General as to proper construction of Section 9,
Federal Reserve Act.
June 12, 1923. 15C
Votes to reconsider Yuba City.

June 12, 1923. 151

Moves to lay on table Little Rock branch building application;
also
Salt Lake building. June 12, 1923. 152
Wires Glass be does not agree with Miller that Supreme Court
decision
is a body blow at clearing 'stem. June 12, 1923. 152
Has conference with Senator Glass on Supra ae Court clearing
decision.
June 16, 1923. 154
Favors Porterville, Long Beach and Watson City applica
tions.
July 31, 1923. 159
Presents minority report in resolution of Aug. 2, and
on above
applic ations.
Platt and C.S.H. vote for minority report. Aug. 2,
1923.

160, 161

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Federal Reserve Bank of St. Louis

-186-

Platt, Vice Governor (Cent.)
Platt and C.S.H. agree that if Board refuses to state
that
resolution of Aug. 2 Ms passed by a majority vote,
they will
make a public statement. Aug. 2, 1923. 161
Platt says Perrin protests at giving to the banks inter
ested a copy
of the August 2 resolution. Aug. 14, 1923. 162
Platt, C.S.H., and Miller vote against resolution of
Nov. 7, 1923, and
for Platt's minority report. Nov. 7, 1923. 178,
179
Votes for C.S.H. pension resolution. Dec. 7, 1923.
188
Votes for Dawes motion to reconsider. Dec. 7,
1923. 188
Votes for Dawes motion to permit Governors to intrc
duce pension
bill in Congress. Dec. 7, 1923. 188
Votes for C.S.H. motion in favor of a pension
plan an principle.
Dec. 13, 1923. 189
Votes in favor of C.S.H. motiaa that Governors
be allowed to
introduce in Congress their pension bill.
Dec. 13, 1923. 189
Votes for Watson City, Long Beach and Santa
Maria applications.
Dec. 17, 1923. 191, 192
Votes to increase Federal Reserve Agent Curti
ss' salary fras $18,000
to $20,000. Dec. 19, 1923. 192
Reports for law canittee in favor of $180
0 to Bradley of Law Division
Dec. 20, 1923. 192
Gives notice will object to any new clerk
for Law Division.
Dec. 20, 1923. 193
Tells C.S.H. Miller said he should. oppose
any increase in salaries
of Federal Reserve agents unless they
agreed in advance to
accept and carry 011t ream:Emulations of
economy and efficiency
committee as to cutting down monthly repor
ts. 198
Politics
Proposed Collier appointment as Federal
Reserve Agent at Dallas.
Jan. 24, 1923. 41, 42, 49, 52, 61
Holding up Campbell's appotntment unti
l confirmation of Wary as
Comptroller. Feb. 9, 1923. 45

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Federal Reserve Bank of St. Louis

-187-

Politics (Cont.)
Miller wants to hold up Boston's increase in discount rates
until
Congress aijourns fearing it might attack us for it.
Feb. 21, 1923. 49
Sen. Pepper, Confirmation of McNary.
Philippine National Bank.

Mar. 3, 1923. 55

Gov. General Harrison. 92

President Harding.
Mullen., Federal Reserve Bank of Cleveland. 97
Comstock. 97
Dirt farmer, Federal Reserve Board. 111
Cuban agency 135, 136
See - Lane
Panerene, Senator
Mitchell tells, of reason why President Harding
did not reappoint
Gov. Harding, - the Comstock row. Jan. 2, 1923. 35
Totes against confirmation of McNary.

Max. 3, 1923. 55

Porterville bt•anch. 179
See - Branches
Portland, Federal Reserve branch 11, 12
See - Branches, Federal Reserve
Propaganda
Federal Reserve Bank of Atlanta uses, in conne
ction with Cuban agency
123
See - Cuban agency
Purchases, Open market
See - Dividends and expenses
Open market purchases

-Q-

-RRalston, Senator
Howell thinks, will be noel/nate by Democ
rats for President.
June 8, 1923. 148

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Federal Reserve Bank of St. Louis

.488-

Ramsey,Federal Reserve Agent, Dallas
Died a few days ago. Nov. 8,1922. 9
Reddings Dahlia Farm
C.S.H. and H.P.H. drive over to Plymouth to visit.
Oat. 20, 1923. 176
See - Wilson
Reed, Senator, Pennsylvania
Tells Gov. Harding he has grave doubts whether he will vote to
confirm Crissinger if appointed on Federal Reserve Board,
as
he recently became gloriously drunk at a dinner in Pittsburgh
and made a maudlin speech. Dec. 7, 1922.
37
C.S.H. and H.P.H. dine with W. and. Mrs. Lansing to meet
Sens and Mrs. Reed.
Sen. Reed tells C.S.H. of charges against McNary.

Jan. 20, 1923. 39

Recalls acceptarme of dinner with C.S.H. and H.P.H. becau
se of
engagement at Senate. Feb. 4, 1923. 48
Republican National Caumit tee
Gregor of Texas 81313,0112X%
that Collier will be appointed Federal
' Reserve Agent at Dallas as a Christmas gift.
Jan. 24, 1923. 41, 42, 491 52
Reserve requirements, Lowered
Application to permit, for two St. Louis banks fails
fres lack of
5 affirmative v•tes. Feb. 21, 1923. 50
Reserves
See - Calif omit special savings accounts
Special savings accounts
Savings accounts
Resolutions
C.S.H. offers resolution, originlly offered on
April 10, 1923, to
effect that Board is bound by certificate of
State Superintendent
of Banking as to public necessity and advantage,
and that Board
has no lawful authority to divide the state into
zones.
Referred to committee. July 31, 1923. 159, 160
Comnittee reports resolution denying applicatio
n tot' Porterville
and Long Beach and Watson City in form of a resol
ution
stating that state banks with a large numbe
r of branches can
not be satisfactorily examined either by
the Federal Reserve
bank or by the state authorities; that right
of state banks to
have unlimited branches is inconsistent with
the spirit of the
Federal Reserve Act, etc.

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Federal Reserve Bank of St. Louis

Resolutions (Cont.)
Platt presented a minority report.
Passed.
Aye - Gar. C., Dawes, Cunningham, Janes, Miller
No - C.S.H., Platt
Minority report voted down by same vote.
Dr. Miller said he voted against the application and also against
part of the reasons given in the resolutioni
Platt and C.S.H. agree that if Board. dc.. not announce that the vote
was & majority vote, they will issue a public statement.
Aug. 2, 1923. 160, 161
Perrin protests against delivering above resolution to the interested
banks as directed by Federal Reserve Board.
Aug. 14, 1923. 162
Branch bank resolution was adopted by a majority vote.
Aye - Gov. C., Dawes, Cunningham arrl James
No •- C.S.H., Platt, Miller
Gov. Crissingar said he thought the rem lution went beyond the
paver s of the Board but the national banking system
was doomed to extinction unless Congress should change the law
and therefore (I) he should vote for it.
Sec. Mellon said he could not come to the meeting and asked the Board
to go on without him.
Nov. 7, 1923. 178, 180
C.S.H. offers resolution favoring the general principle of a Federal
Reserve pension plan, carefully guarded, limited as to membership.
Passed:
Aye: Gov. C., C.S.H., Platt ani Miller
No: Cunningham, Janes, Dawes
Dec. 13, 1923. 189
See - Cuban agency
Richmond, Federal Reserve Bank of
See- See7,Gov.
Rinehart, Mary
meets, the authoress at dinner at Sec. Mellonts
Jan. 16, 1923. 38

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Federal Reserve Bank of St. Louis

-190-

Ripley, Interstate Commerce Connission.
Met C.S.H. on train aid said Percy Todd told him that J. P. Morgan & Co.
had a special account on their books with Mellen, the President,
and that, under it, they gave htibllen 15% of the difference between
what the New Haven R.R. received for all bond times and the
price received by J. P. Morgan & Co. on their sale.
Todd told C.S.H. this some years ago.

May 24, 1923. 139

Robinson
The Los Angeles Banker, Robinson, indorsed Talley for Federal Reserve
Agent at Dallas. Feb. 24, 1923. 52
Roosevelt, President
C.S.H. asks Mrs. Freeman to name one act of courage on the part of
Roosevelt comparable to the courage shown by President Harding in
vetoing the bans bill. Dec. 24, 1922. 27
ii-e-49.-‘444 •
&
t•-icwe.
Canada
of
Bank
Royal
The agent of, femme Cuban agency.April 30, 1923. 100

•

Rue, Federal Advisory Council
Wires Mitchell of Federal Advisory Council that Gov. Harding has
• withdrawn his name from consideration for reappointment to
rederal.Reserve Board.. Dec. 16, 1922. 24
Wires Board. that Federal Advisory Council wishes to be heard. on
Cuban agency.
Says Board. should not have created. an agency without consulting
the council.
Admits that Board was not bound to secure the assent of the council
and that council is not an appellate body.
May 21, 1923. 121, 122
See - Cuban agency
Russia,
Admiral Niblack SW'S Bolsheviks had absolutely lived up to their
agreasont with the U.S. as to shipnent of supplies, tut that
for some reason the administration hat never made this public.
Nov. 10, 1922. 10
-SSacramento branch
126, 143, 144, 145, la
See - Branches

•

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Federal Reserve Bank of St. Louis

.191-

Salary committee
See - Bradley

192, 194, 195

San Francisco, Federal Reserve Bank of
Federal Advisory Ccuncil recommends increase of discount rates from
4 to 40 at New York, Phila., and San Francisco.
Feb. 30, 1923. 47
See - Perrin
Santa Maria branch 190, 191, 192
See - Branches
Saulsbury, Senator
Very bitter against President and Mrs. Wilson; said he was
disgusted with the "Empress Dowager" - Tumulty-Grayson
combination.
Said that he had drawn up a concurrent resolution providing
that all bills passed by Senate and House be sent for
signature to Marshall as *Acting President* but that
Marshall would not agree. Dec. 5, 1923. 184, 185
Savings Accounts, Reserves
See - California special savings accounts
Savings Departments, National banks. 94
See - Willis
Scobio, Director of the Mint
Wanted Brewer appointed Federal Reserve Agent at Dallas.
Jan. 24, 1923. 41
Scott, James Brawn
Informs C.S.H. of his election as a trustee of the Carnegie
Foundation for International Peace.
April 20, 1923. 97
Seattle branch. 12
See - Branches, Federal. Reserve
Bev, Gov.
Objects to definition of word 'borrower" in Section 13, P.R. Act
Oct. 13, 1922. 2, 3
Argues in conference for 3% reserve against special savings
accounts but finally votes against it.
Mar. 27, 1923. 76
Senate reservations, Legue of Nations 185
See - Marshall, Vice President

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Federal Reserve Bank of St. Louis

-192-

Separate ratios. Deposits and. Federal Reserve
notes
See - Gold reserves
Federal Reserve notes
Miller
to *tad

6,7.11031I

411011114.**1

'sSaLøtFi ebaert"1..
"
r. 110004 %inn /Wilk
Ir.! weOr tat '

Shortr id ge, Senator
Forgets to attend dinner of C.S.H. Feb. 20,
1923. 48

lirlf

Bippican Pcmona Grange
C.S.H. and Mrs. Wilson attend meeting of.
,gorssui astiakeig, kola.
t.44t4nrolg ototn.-!7'

•IvaieLu.

ii-,.4pitssm
,,-f
efrp
.
.
r

Smith, Hoke
Attends conference on Cuban agency, for Fult
on National Bank,
Atlanta. May 7, 1923. 107
Questiuns power of Board to create a Cuban
agency, but claims
it should be Atlanta, if any. May 7, 1923. 107
C.S.H. talks with, as to proposed. joint agen
cy and he fully
approves. June 5, 1923. 147

'44

,..1

Sept. 1, 1923. 164

sitacee xicf tAbasar.-1sLLH L.
riot 8.% 1Ltdiouht 0 "

Smith, Rev. Earnest
Mrs. Wilson says Mr. Smith is a perfect snob
, always kowtowing
to those above him and hard. on those belo
w him, etc.etc.
Sept. 24, 1923. 173, 174
See- Wilson

.el VA, ,13f1

wry-ONO! it$1110000, 1 Lai two aline'

Smithson
Chauffeur of Dr. Willer
See - Miller

•
19?

Special savings accounts, California
See - California special savings accounts

Speculation
An inflationary bocci seems to be on the
way. Oct. 13, 1922. 4
Scme evidence of speculative activity
in Boston and New 'fork.
Tab. 20, 1923. 4E
reiliw'sms
-

Spheres of influence. 84, 126, 160
See - Branches

or!

Sprague, Prof.
Favors public announcement of discautt
policy of P.R. Board.
April 19, 1923. 88
boa014/400

fi t MtPI

St. Louis
Board can not get 5 affirmative vote
s to permit lowered reserve
requirements of two St. Louts bank
s. Feb. 21, 1923. 50
^

era

Welli11111111

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Federal Reserve Bank of St. Louis

-193-

State Bank Superintendent, California.
119, 126, 1.27, 144, 145, 146, 151, 160, 191
See - Branches
Exam in ati one
State banks
See - Branches
California, savings deposits
Examinations
State Department
99,102, 106, 109, 110, 116
See - Cuban agency

•

Stockton, Phillip
Presidant a Old Colony Trust Caspany favors appointing Gov.
Harding as Gov. of Federal Reserve Bank a Boston.
Dec. 18, 1922. 26
Strong, Gov. Federal Reserve Bank at New York
Argurnant with Perrin as to effective method of credit control.
Says discount rates is most effective method; that a Federal Reserve
rate is effective even though it is bolos the rates charged
•
to custcmers; thus when the Federal Reserve rate is increased,
the .nember banks increase their customers rates, and
conversely; that Federal Reserve banks should simply consider
the amount of rediscounts taken by a member bank, in
proportion to its resources; that if the amount is reasonable,
the discount should be granted, no matter what the bank has
been doing, e.g. loaning on Wall Street, Real estate loans,
capital loans, speculative loans, etc.
Gov. S. said, however, that as a fact the Federal Reserve Bank of
New York often made direct inquiries.
Gov. S. said a bank rediscounts for the dir act purpose of replenishing its reserves, and that the refusal of rediscounts would be
disastrous to the depositors.
Oct. 13, 1 923. 1, 2
See - Perrin
Mcr se
Wills
Gov. Strong said that if the Federal. Reserve banks should liquidate
their present holdings of Govt. securities it would result
in increased rediscounts, to the benefit of the Federal Reserve
system. Oct. 13, 192.3. 4
Gov. Strong said scale policy of open market purchases should be
agreed upon, - that the Federal Reserve banks had bought

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Federal Reserve Bank of St. Louis

-194-

Strong, Gov. (Cont.)
hundreds of millions halter skelter, without any fixed policy.
Oct. 13, 1922. 8
Gov. Morse tells Gov. Strong confidentially of his intended
resignation, which leaked out, before Board heard of it.
Dec. 7, 1922. 19
Mitchell tells Gov. Strong What he thinks of Federal Reserve Agent
Jay for saying he was not fit to be Governor of the Federal
Reserve Board. Dec. 16, 1922. 24
Board feels that conditions at New York as outlined in letter of
Gov. Strong, fully warrant an increase in discount rates from
4 to 46.
Feb. 20, 1923. 47
Says spread 'between Federal Reserre rates and customers rates was
increasing and there were some indications of speculation in
commodities in New York. Feb .20, 1923. 48
C.S.H. wanted to appoint Leffingwell as Class C Director at New York
as he frequently 1 ffered from Gov. Strong and C.S.H. thought
this a good thing. April 28, 1923. 98
Tells C.S.H. he talked with Sec. Mellon about the Federal Reserve
pepsion plan and that Mellon was 100% in !Ivor af the principle.
Dec. 13, 1923. 190
Subsidy bill, Ship
Cunningham introduced, at a comention of the Iowa Farm Bureau
Confederation, a resolution condemning the ship subsidy bill,
Prssident Harding's pet hobby.
May 8, 1923 111
Sugar prices
Taussig says sugar prices are not much above the pre-war level
April 19, 1923. 89
Superintendent of Banking, California
119, 126, 127, 144, 145, 146, 151, 160, 191
See - Branches
Examinations
Suspension of building contracts, Federal Reserve branch
64
See - Branches, Federal Reserve

-TTalley, Federal Reserve Agent, Dallas
Many banks which favored Collier sent recanmendations for Collier

-195-

Talley, Federal Reserve Agent, Dallas (Cont.)
subject to their previous indorsement of Talley.
Jan. 241 1923 42
Mitchell, Platt, and Crissinger appointed. committee to reconmend
Federal Reserve Agent at Dallas. Feb. 21, 1923. 49
Mr. Ball, of Federal Advisory Council said Talley was by all odds
the best man; that he had indorsed Talley but was told, he
had no chance; that he then reccmmenied Collier; that Tanay's
sp pointment would eliminate politic.; that politics was behind
Collier; that Talley had been told that if he would give credit
for his appointment to Creger the Republican National Coamittee
man, Creger had said be would secure the appointment for him,
but Talley declined.
Ball said Talley was a Republic in. Feb. 21, 1923.

49, 50.

Miller raised all sorts of objections to Talley.Feb. 23, 1923. 50
See - Miller
Mitchell, for the comnittee,reported in favor of Talley.
Feb. 24, 1923. 51
Drum of San Francisco, Robinson of Los Angeles, and many others had
wired. favoring Talley.
Talley was finally appointed..
All voted for him except Crissinger who so ted for Collier.
Feb. 24, 1923. 52, 53
Tampa
A cigar manufacturer of Tampa told Board that Cuban banks are In a
canbination and charge 3% for collections and 1/8% for
°omission. May 7, 1923. 109
Tammany
Dr. Willis says Gov. Gen. Harrisondid nct unload Tammany politicians
on the Philippine Islands. April 20, 1923. 92
iti ,TO1 ,I81

nag.

attriol
'

tia#0441,

,
tbfl *Jilt

mleseR fitinete%

414

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Federal Reserve Bank of St. Louis

Tariff
Taussig says that the tariff, in relation to the increase of prices,
was irrelevant, except in the case of wool; that even sugar
was not much above prewar prices.
April 19, 1923. 89
Taussig, Fre*,Professor.
Called on C.S.H.
C.S.H. brought him into Board. meeting, where he talked and. answered
questions for an hour.

as3A eviteusa I.
16
4flt/414 .

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Federal Reserve Bank of St. Louis

-196-

Taussig, Frei*, Professor (Cont.)
Lunched with C.S.H. and had a talk with him and with Platt in
C.S.H.'s room in Cosmos ClUb.
Taussig said he did not favor a public announcsment of our rate
policy, as did Sprague and other Boston econanists; that this
sciende of rate making was not an exact science; that the
economists would surely criticise any statement we might make;
that we should study production, prices in relation to
production, speculation in commodities, and on the stock
market, supply of labia', etc.; that we had no exact knowledge
of production, at least as to many industries built up on the
foundation of the basis industries; that all we could do was
to watch carefully and be ready to act at any time in the way
of increasing discount rates; that while it looked to him as
if the time was near at hand for an increase he was not prepared
to say it had yet *flayed; that he could only advise watchful
waitingi that the present gap between our disapunt rates and
customers rates was too great, and might have to be changed in
near future.
Also said that the tariff, in relation to present price levels,
except in case of wool, was irrelevant; that even sugar was not
much above pre-war prices.
Taussig also said that prices would not fall much below present
levels for the next five years, largely owing to the labor
monopoly under the immigration bill.
Also said he saw no particular cbjection to stating the note reserve
and deposit reserve for the system separately.
said he did not believe in unending the Federal Reserve Act 30 that
notes could be issued only against commercial paper; that all
gold held by Federal Reserve banks whether in their vaults or
with the Federal Reserve Agents should be included in Federal
Reserve bark assets and all Federal Reserve notes should be
included in the liabilities.
Platt asked him as to the policy of going out of the market by sale
of Govt. securities held by Federal Reserve banks.
Taussig said he saw MD reason for this as the capital and surplus
of Federal Reserve banks, 330 millions, had been originally
withdrawn from the market and that, therefore, these purchases
did not cause inflation.
Platt told him of wish of Treasury that we Should draw out of the
market, because our remaining in interfered with the Treasury in
placing its securities.

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Federal Reserve Bank of St. Louis

-197-

Taussig, Prof. Frank (Cont.)
Taussig said he was shocked as to this; that the Treasury should
approach the market as it found it and should not attempt
in any way to interfere with it, that our Board Should most
certainly not artificially manipulate the market to help the
Treasury.
C.S.H. said he was in fall accord with his views; that under existing
conditions he was willing as a temporary matter, to have the
Federal Reserve banks decrease their holdings, it that,
taking the year as a whole it was the plain duty of the Federal
Reserve banks to earn expenses and dividends even though it
involved going into the market for this purpose.
Tamosig said he entirely agreed with this.
Taussig said. the only suggestion he could make as to discount rate
was that some member of the Board, in a public address, stress
the point that the present high gold reserves were not an
adequate indicator of credit conditions, as saying this in the
Federal Reserve Bulletin was too impersonal.
Taussig said he did not agree with Hoover that gold exports were
likely to startup in any large volume in the immediate future.
April 19, 1923. 88, 89, 90, 91
Than
Name appears in a bootlegger's list published in Wash. Post.
M. 14, 1923. 62

1.44,
t

Thompson
Member of Grange from South China, Maine, attends lunch given
by C.S.H. to Executive Committee of Naticnal Grange.
Feb. 28, 1923. 54

t
•

A
• ,)

Todd, Percy
. Tells Ripley of Interstate Commerce Commission that J. P. Morgan
& Co. kept an account on their books with Mellen, President
of N.T.N.H. & H. R.R. Co. giving him a fixed commission of
15% of the difference between What ele railroad realised on
sales of thetr bonds and What Morgan received an their sale.
May 28, 1923. 139

3 1'.

a.t'

3;S-14

Todd told this to C.S.H. ayme years ago. 139

t..
„
..#

Thr

!.I.

...

n ..ti

Torriente, Dr.
Approves as President of Cuba the designation of Federal Reserve
Bank of Boston for the dban Agency.
May 26, 1923. 131

rikt

•••Xte

aiL

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Federal Reserve Bank of St. Louis

-198-

Townsend, Senator
mr. Campbell of Federal Reserve Board drops dead while playing
golf with. Mar. 22, 1923. 65
Trailer
Urged by Rue and Warburg for F.R. Board. Dec. 16, 1922. 24
Treasury, U.S. 6, 90
See - Dividends and expenses.
Platt
Tumulty
Sen. Saulsbury says he was disgusted at the Empress Dowager Tumulty-Grayson combination.
Dec. 5, 1923. 185
Turkey 9
See - Niblack, Admiral.

41-

-VVotes
C.S.H. aid Mitchell vote against 10% reserve for spectil saving,
acccunta. Dec. 6, 1922. 17, 18
Purchase in open market of domestic secured acceptances.
Unanimous. Dec. 12, 1922. 20
Making certain paper of cooperative marketing associations eligible
as agricultural paper. Unanimous.
Dec. 13, 1923. 22
C.S.H. and Crissinger voted against Padadenibranch.
Jan. 2, 1923. 34
Vote to authorize New York to increase discount rates to 4 %.
Unanimous. Feb. 21, 1923. 48
Vote to authorize increase at Boston to 40.
Miller and Crissinger voted No. Feb. 21, 1923. 48, 49
Vote for Talley for Federal Reserve Agent at Dallas.
All Aye except Crissin,er. Feb. 24, 1923. 53

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Federal Reserve Bank of St. Louis

'.199'.

Votes (Cont.)
Vote to disapprove El Centro bank ir anch.
C.S.H. voted to disapprove as not recommended by Perrin.
Mar. 6, 1923. 57
Vote to approve Little Rock Branch building.
Aye - C.S.H., Platt
No. - Gov. C. , Miller, Campbell
Mr. 16, 1923. 63
Vote, suspension of branch bank building contracts. Unanimous.
Web 19, 1923. 64
Vote, Governors
In favor of 10% reserve against special savings deposits
No'. Calkins, Norris, McDougal, Young and Harding
Aye- All others
Mar. 27, 1923. 76
Vote

on C.S.H. motion to strike out from open market circular
statement that Board has power to limit amount of
purchases ce Govt. securities.
Aye - C.S.H. & Platt
No - Miller and Gov. Crissinger
April 3, 1923. 79

Vote that Chicago, before increasing rates, should liquidate
its holdings of Govt. securities and allow acceptances
to run off, increasing buying rates.
C.S.H. alone opposed allowing acceptances to run off.
April 7, 1923. 82
Vote on C.S.H. to approve purchse of El Centro bank without
commitment as to operation as a branch.
Defeated:
Aye - C.S.H. and Platt
No - Gov. Crissinger and Miller.
April 10, 1923. 83
Vote on C.S.H. motion to reconsider- ruling that special savings
deposits must carry 10% reserves.
Defeated:
Aye - C.S.H., Miller
No - Gov. C., Platt
May 3, 1923. 105
Vote on Platt's motion that Board should state that special
savings accounts were not savings accounts under Sec. 19.
Defeated:
C.S.H. voted awinst it. May 3, l923/ 105.

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Federal Reserve Bank of St. Louis

-200-

Votes (Cont.)
Vote on C.S.H. motion that Board designate an agency in Cuba.
Unanimcdus. May 9, 1923. 112
Informal vote on Platt's motion to designate Boston for Cuban
agency. Unanimous. May 9, 1923. 113
Vote on C. S.H. motion to approve purchase of insolvent bank
at Ontario as an emergency proposition not to starsi as
a precedent.
Defeated:
Aye - C.S.H., Platt, James
No - Gov. C., Miller, aid Dawes
May 22, 1923. 126
Vote on reconsideration
Passed. Unanimous. May 22, 1923. 126
Vote designating G S.H., Gov. C. aid Janes as a committee to draw
resolution designating both Boston and Atlanta as Cuban
agency. Unanimous. !ay 29, 1923. 140
Vote accepting resolution of above committee. Unanimous.
June 1, 1923. 143
Vote on Platt's motion to reconsider refusal of Sacramento branch.
Defeated:
Aye - C.S.H., Platt
No - Gov. C., Miller, James, Dawes
JIme 1, 1923. 143
Vote on motion of C.S.H. that Attorney General be notified that
Elliott desires to file a brief with him on construction of
Sec. 9, Fedeaal Reserve Act.
Unanimous except that Miller voted No.

June 11, 1923. 148, 149

Vote on motion of Dr. Miller to reconsider Tuba City branch.
Defeated:
Aye - C.S.H., Platt, Miller
No - Gov. C., (Immingham, James, Dawes
June 12, 1923. 151
Vote on motion of platt to lay on table Little Rock branch
building 4)plication.
Aye - Goy. C., :Maier, Cmningham, Platt
No - C.S.H.,Dawes
June 12, 1923. 152

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Federal Reserve Bank of St. Louis

...201..

Votes (Cont.)
Vote an motion of Platt to
lay C.S.H.'s motion to aut
horise
Salt Lake City branch bank
building to be construct
ed.
Aye - Gov. C., Miller, Cun
ningham, Platt, Dawes
No - C.S.H., James
Dawes explained his vote
on ground that Little Roc
k branch
building motion had been
laid on table. June 12, 19
23. 152
Final vote on Cuban age
ncy.
Miller votes No.
All others Aye
June 27, 1923.

157

Vote on branch bank resolu
tion refuqing Porterville
arid Long
Beach applications and dec
laring (a) that state ban
ks
with numerous branches cou
ld not be examined satisf
actorily
either by state or Federa
l authorities; (b) that mem
ber
state banks with unlimited
right to establish branch
es
are inconsistent with the
spirit of the Federal Res
erve Act,
etc. etc.
Carried:
Aye - Gov. C. Dawes, Cun
ningham, James, Miller
No - C.S.H., Platt
Dr. Miller said he voted
for the decision but aga
inst
part of the reasoning.
Aug. 2, 1923. 160, 161
Vote against Platt's min
ority report same as on
main gaestion. 161
Vote an resolution confin
ing branches to location
of parent bank
and contiguous territ
ory.
Aye - Gov. C., Dawes, Cun
ningham, James
No:
C.S.H., Platt
Gov. C. said he believed
the re7olution transcend
ed the
power of the Board, but
in view of the difficult
y of
examining branches ant the
danger of extinction of
national banks unless
Clonvess should change
the law,
he should vote for the
resolution.
Sec. Mellon was asked to
come in and vote, but
said he could not
and asked the Board to
proceed without him.
Nov. 7, 1923. 178, 179

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Federal Reserve Bank of St. Louis

-202-

Votes (Cont.)
Vote on C.S.H. motion to substitute Plat
t's minority report
was the sane as in main motion. 179
Vote on motion to reconsider Porterville
branch.
Carried and branch authorised.
C.S.H., James and Dawes voted Aye aid
also Platt.
James arri Dawes justified their vote on
ground that Nov. 7
resolution did not take effect until Feb.
1, 1924.
Nov. 22, 1923. 179
Votes on Federal Reserve pension plan
C.S.H. motion favoring general principl
e of a pension plan
carefully guarded, for limited classes
of employees.
Defeated:
Aye- C.S.H., Platt, Miller
No - Gov. C., James, Cunningham, Dawes
Motion of Doves to reconsider carried
Aye: C.S.H., Platt, Gov. C., Dawes
No:
James, Cunningham
Motion of Dawes that, without indorsin
g the general principle of
a pension system, Board will interpos
e no objection to
introduction in Congress of plan of
Governors.
Defeated:
Aye - C.S.H., Platt, Dawes
No - Cunningham, James, Miller
Dec. 7, 1923. 188
Motion of C.S.H. like the one abov
e.
Carried:
API - C.S.H., Gov. C. Miller, Platt
No:
Cunningham, James, Dawes
Motion of C.S.H. like tkat of Dawes
above
Aye: C.S.H., Platt, Gov. C.
No:
Miller, Cunningham, James, Dawes.
Dec. 13, 1923. 189
Vote on Watson City, Long Beach, and
Santa Maria branch applications
Defeated
Aye: Gar. C., C.S.H., Platt
No:
James, Cunning,haap, Dawes
Dec. 17, 1923. 191

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-WWadsworth, Asst. Sec.
Attends dinner of C.S.H. to Baldwin, Chancellor of the Exchequer.
Jan. 15, 1923. 38
Wallace, Sec.
Tells Mrs. Wilson he will send her flowers from his Department.
Countermanded. Dec. 17, 1922. 32
See - Wilson
Walsh, Senator, Mass.
Tells C.S.R. that Gaston is a corruptionist; that he bow-ht his
nomination as Senator; that he refused to take issue with
Lodge as to reducticn of income tax on large incomes; that
if he hal been elected there would have been a scandal worse
than the Newberry scandal. Jan. 1, 1923. 36
Warburg, Paul M.
Wires Mitchell (Chicago) of Federal Advisory Council that Gov.
Harding has withdrawn his name from consideration for
reappointment on Board, and urges Mitchell to urge the
appointment of Trailer (of Forgan's security Co.)
Intimates that neither Mitchell nor Platt are fit for the
Governorship. Dec. 16, 1922. 24
Warburg's statements efore the Federal Advisory Connell warrant
ed
an increase in rates at New York. Feb. 20, 1923. 47
Attends funeral of W. Goff at Cleveland.

Mar. 16, 1923.

Warburg discusses with Board its advice to Federal Reserv
e Bank of
Chicago to Athdraw from open market and sell its Govt.
securities before increasing its discount rates, also to
let its acceptaces run off.
Warburg said that if the Board felt it wise to ire rease
rates it
should act accordingly, but he did not favor ordering
sale of its Govt. securities or withdramal from the
acceptance market; that the Federal Reserve bank clearly
had the right to invest in the open market an amount
equal
to its capital ands:nal:au., as this was not inflation,
as it
was originally withdrawn from the market; that it
would be
most unwise to withdraw from the acceptance market
; he
agreed with C.S.H. that there was a fundamental differ
ence
between putting money into circulation thrcugh (a)
buying
Gov. secutities and (b) buying acceptances; that ("5)
aided
genuine comdercial transactions, whereas (a) might
eventually
be used for e.g. loans to Wall Street,
etc.
•

-904-

Warburg, Paul M. (Cont.)
warburg agreed with C.S.H. that, in doubt as to
desirability of
increasing discount rates, the vvithdrawal of
money from the
market by selling Gov. securities, would undoubte
dly
create a situation, which might not exist new, ness
itating
the raising of discount rates in the near futu
re.
April 12, 1923. 85, 86, 87
Warburg told. Platt over telephone that while
he thought that the
limitation of powers in the proposed Cuban
agency circular
was all right, he did not want to give any
general expression
of opinion because of his ntations with Wing
, of First National
Bank, Boston, who hal established a branch
in Cuba.
May 1, 1923. 1 03
Tells Platt over the telephone that he had
been under the impression
that thi Cuban agency was to be a member
bank and not a
Federal Reserve agency, and that he seri
ously doubted the
advisability of establishing a Federal Rese
rve agency.
May 2, 1923. 104
Gov. Case, at Cuban agency conference, read
s a letter frau Warburg
stating that Section 14 (e) was taken from
the Aldrich bill
which he (Warburg) drew; that the Aldrich
bill in using
"agency" meant a local bank agency; that
the Federal Reserve
Act, using the same language, must have
had in mind a member
bank as opposed to a Federal Reserve
agency.
(The report of the committee of the Fede
ral Reserve Board., of
which Warburg was chairman, against
Sec. McAdoo's recommendation
for Federal Reserve bank agencies in Sout
h American countries,
published Oct. 12, 1915, - 1 Federal Rese
rve Bulletin, 348 - shows
conclusively that the committee believed
that the word
"agency" meant Federal Reserve agency.)
The committee said:la A

Iii

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Federal Reserve Bank of St. Louis

"In trade centers where American banks are
not established it
might be proper for Federal Reserve bank
s to appoint joint
carrespondents or agents in order to
facilitate the development of
American acceptances in such places."
The committee was opposing McAdoo's sugg
estion for ,.genci ea
of Federal Reserve banks in South Amer
ica, and clearly by "joint
correspondents or agents" the committe
e was referring to Federal
Reserve agencies, either jointly or sing
ly.
May 4, 1923. 107
C.S.H. tells Board .that Warburg's clai
m is not well founded, as
shown above. May 9, 1923.112

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Warburg, Paul M. (Cont.)
C.S.H. answers RueIs claim that the Federal
Advisory Council
should have been consulted before action
was taken. as to the
Cuban agency, by pointing out that both Warb
urg and Rue had
in fact been invited to attend the conferen
ce of May 7, 1923,
and that Gov. Case read to the meeting
a letter from Warburg
on the subject of the Cuban agency.
May 21, 1923. 122
Warburg, at meeting of Federal Advisory
Council read a report of
the committee strongly objecting to any
Federal Reserve agency
in Cuba.
Warburg said the Council believed that
by "agency" the Federal
Reserve Act had in mi]xl the designation
of some local bank as
correspondent or agent; that there was
always danger of
revolution in Cuba; that the Federal
Reserve system should
never be established in a foreign coun
try.
It was pointed out to Warburg that Cuba
opcupies a peculiar relation
to the U.S. (a) because of the Platt
amendment; (b) because
Cuba had made American money, - the bulk
of her circulation, legal tender.
Warburg said the Board's draft of powe
rs for the agency was well
drawn but was so stringent that
little business could be done by
the agency under it; that it could
not earn its expenses for
the reason that sugar, the principa
l export, moved only during
4 or 5 months of the year. May
21, 1923. 123, 124
Warburg vuggested that, in lieu of
an agency, the Federal Reserve
system should deposit Federal Rese
rve notes with the local
banks taking out credits against
which exchange could be sold.;
that these notes v.ould be cash in
the hands of the local banks,
azd. that any Federal Reserve bank
should be permitted to dothis.
(Such action would clearly break
up Atlanta's monopoly of
Federal Reserve note issue in Cuba
)
May 22, 1923. 125
C.g.H. asks Goy. Harding to give
tha Board full data as to the
business he expected to do in Cuba
in answer to Warburg's claim
that he could not make expenses
.
May 23, 1923. 128
Gov. Harding in a memorandum states
that Warburg favored At
If any Cuban agency is to be
established.
May 26, 1 923. 136
Warburg defended Miller's acti
on in putting his chauffeur on
the
Federal Reserve pay roll, in
1918. 197

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Waring, Guy
Mr. and Mrs. Waring of Newport, R. I. attend dinner of C.S.H. to
laldwin, Chancellor of the Exchequer.
Jarl 15, 1923. 38
Warren, Charles
C.S.H. dines with, to meet Admiral Nibladk.
Nov. 10, 1922. 9
Dines with C.S.H.
Nov. 30, 1922.

Dines with C.S.H. at dinner to Baldwin, Chancellor of the
Exchequer
Jan. 15, 1523. 38
Washburn, Charles
Tells C.S.H. the directors of Federal Resorts Bank of Boston
are considering Gov. Harding for Governor; that Stockt
on,
Aiken and 210g strongly favor this; that Beal, Hollis and
Curtiss fear it might be construed as a slap at Presid
ent
Harding; that be strongly favored it and that he had
seen
Sec. Mellon and Sec. Weeks Who also favored it.
Dec. 18, 1922. 26
Offers Gov. Harding the Governorship on the unanimous
vote of
the directors. Jan. 1, 1923. 34
Studies Cuban agency question in Hawana. April 30, 1923.
100
Washington, President
Clemenceau tells Mrs. Wilson that be intended to make
a careful
study of the life of Washington; that he had. never consid
ered
him a very great man but he wanted to study his
life carefully.
Dec. 27, 1922. 31
C.S.H. and H.P.H. sit in pew of, at Christ's Church
, Alexandria, at
wedding of Sec. Hoxton's daughter.
Jan. 12,1923. 37
Watson City branch 190, 191, 190
See - Branch banks
Weeks, Sec.
president Wilson tells C.S.H. of the treatment be
received from,
at funeral of the unknown soldier.
Dec. 27, 1922. 31
Anna is told by a fdend in the State Department
that Sec. Weekht
name was on a list taken from a bootlegger but
was amitted
from the names printed by the Washington Post.
Mar. 14, 1923. 62

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Weeks, Sec. (Cont.)
Confers with Doctor Willis as to Philippine National Bank.
April ao, 1923. 92
C.S.H. tries to arrange meeting between Dr. Willis and
Sec. Weeks on Philippine National Bea* matters, but Weeks
was about to start for the Canal Zone and the matter had to
go over. April 20, 1923. 91
We14, Mrs. Stephen
Mrs. Wilson lunches with Mrs. Stephen Weld at Wareham.
Aug. 29, 1923. 163
99, 101, 116
Wellborn, Gov.
See - Cuban agency
White

Representing State Department strongly favors Cuban agency.
May 71 1923. 109

Williams, John Skelton
Senator Glass tells C.S.H. be believes, to be an unprincipled
scoundrel; that he had prepared a speech showing him up,
but incautiously told Senator Brookhart of this, who told
Senator Heflin, who thereupon took the floor of the Senate
and talked 7 hours, using up the time to the close of the
session, thus cutting Glass out.
Mar. 6, 1923. 58
Willis, DT.

H. P.
Called on C.S.H.
Said that Gen. McIntire of the War Department was a faithful,
able, official and had managed Pnilippine matters well;
that perhaps he was a little besltant' in acting but
this came probably from havink, to have all his orders
approved by the Secretary of War; that he believed firmly
that Gen. Wood wanted McIntire ousted; that a resolution
was offered at &meeting of the Philippine Chamber of
Commerce in New York censuring Gen. McIntire, which Willis
believes was inspired by Gen. Wood; that McIntire had done
some things which might be open to criticism in the management at the Reserve fund, but that the whole trouble
started with Cameron Forbes who used some of the money to
build roads with; that the Philippine National Bank was all
right while he was president of it; that under Harrison it
made bad loans and got into bai condition; that Harrison was
personally honest but of bad moral character; that he did not

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Willis, Dr. H. P. (Cont.)
Tanraany politicians on the Islands; that he was weak in not
discharging incompetent and corrupt native officials; that
Sec. Weeks sent for him 2 years ago; that he advilled him to
send out as head of the bank some able banker; that a man
named Wilson (?) was sent out and managed the bank well; that
he, Willis, gave the same advice to Sac. Baker, Who ignored it;
that Sec. Baker was directly responsible for the bad conditions
in the Bars; that conditions today in the bank, although bad,
were not as bad as formerly; that Gen. Wood and Forbes, in
their report said that the conditions there formed one of the
blackest chapters in the history of banking; that, while bad.,
they were no worse than the condition of many U.S. banks, e.g.
the Guaranty Trust Coupway, etc. etc.; that he had not yet made
up his mind *lather the bank Should be discontinued; that if
it were, it would give a monopoly to the foreign banks there;
that undoubtedly the bank had helped the Filippinos.
Willis also talked of the clearing system; that the present system
was half clearing and half collection; that he firmly believed
the clearing system could be turned into a genuine clrm,ring
system by means of telegraphic notice to the banks of checks
charged against their reserve balances.
Said Elliott had advised Board that a bank bed a legal right to
exanine a check, e.g. to verify the signature before being
called an to pay it; that he was satisfied that nothing could
be done except by voluntary agreement or by =eminent of the
law.
Willis said that the words "savings accounts" in Sec. 19, Federal
Reserve Act bad reference in the first instance only to national
banks; that they felt that 18, 13 and 10 were too high for
saYinss accounts; that they told Congress they had large dormant
acccunts mhiah rarely were checked against, and were in essence
genuine savings accounts Which should carry a lower reserve;
that Congress permitted 5% and later 3%; that in Section 27,
as passed by this H.R., separate savings accounts with prior
lien, segregated assets, etc., were provi1ed for but the Senate
struck this out; that he saw no reason why there should not be
distinct regulations for national banks and state savings
departments; that as te national banks, if checking were per.
mitted the same reserves should be required as against demand
deposits, as all these deposits went into a cccamon fund which
was loaned commercielly, whereas in California state banks
all savings deposits were segregated and strictly limitel as
investment; that such segregaton and limitation were the
essence of sayings accounts; that he saw no reason why the Board,
in its discretion, had not lawful power to reqaire only a 3%
reserve agatnst each savings accounts, in cases where the bank

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Willis, Dr. H. P. (Cont.)
reserved the right to rewire notice and presentaticn of
pass books, even though in practice it waived the right and even
permitted the use of checks BO stamped as to permit this right
to be exercised at any time in the discretion of the bank.
April 20, 1923. 91, 92, 93, 94, 95
Tells C.S.H., in 1918, there was no work for Smithson, Dr. Miller's
chauffeur, to do, etc. 197
Dr. Mill* ordered Willis to appoint Ws. Hutton in 1918, altho
Willis said be h4 tested her and she was of no use to him. 198
Wills, Federal Reserve Agent
Strongly favors direct action in controlling credits arxipoints out
that by this means Cleveland maintained a 6% rate during the war
and post armistice period as against WA at New York.
Oct. 13, 1922. -2.
Wilson, President and Mrs.
H.P.H. lunches with Mrs. Wilson and has talk with Mr. Wilson after
lunch.
R.P.H. writes out a memorandum of his talk. (See scrap book).
Mrs. Wilson tells H.P.H. that Secretary Lane's letters, published
by Mrs. Lane, were like a bolt from the blue to Mr. Wilson;
that he said, "Mrs. Lane must have been greatly in need of
the money she got for publishing them1"
Nov. 24, 1922. 10
H.P.H. gives a luncheon to Harriet and Jane Hienlit at which Mrs.wilson
was present. Dec. 23, 1923. 26
C.S.H. tells Gov. Harding that H.P.H. has been scrupulously careful
not to criticise President Harding's administration but has
never and will never hesitate to answer vigorously any attacks
on President Wilson at any time and from any source.
Dec. 24, 1922. 27, 28

Mrs.

Wilson calls up H.P.H. and invites Harriet and Jane, C.S.H.
and H.P.H. to take tea with her this afternoon at 5:30 p.m.

We all went there and had a half hour's talk with Mr. and Mrs. Wilson.
C.S.H. had. not seen Mr. Wilson since March 4, 1921;
shocked at his appearance; he was Kitting in an
Library and apologised for not rising; his face
drawn down and he did not use his left hand; he

was somewhat
arm chair in
seemed slightly
had a look of

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Wilson, President and firs. (Cont.)
intense weariness; his mental faculties seemed absolutely
=impaired, but, possibly a little slugkish; he seemed at
times as if speaking through a somewhat dense fog; he
seemed very glad indeed to see us.
He spoke of Senator Borah and said. he believed him to be a sincere
man but one who just fell short of practical accomplishment.
He asked Harriet, - just returned from Italy, - about the Fascisti
in Italy aid asked just what they stood for. Harriet said
that originally it was a patriotic society, something like our
Legion, bent on putting down Bolshevism in every form, but
that later many extreme radicals had joined.
Harriet said they went around with pistols in their pocket and with
clubs in hand, and if any one was doing what they though was
wrong, they would go to his house, demolish hie furniture and
give him a warning.
C.S.H. said jocosely that If this were their sole Object he would
like to form such a band right here and he would know where
to begin.
Mr. Wilson replied with a smile, "Yes, but you would never know
where to end, the takk would. be so gr eatl"
He also spoke of agitators and said he always felt the best course
would be to hi* e a hall and give them full swing, - which would
surely kill them off.
He .expressed deep satisfaction that Lodge had been stripped of his
power by the narrowness of his victory in being reelection to
the Senate , saying it was better to be dead than to be alive
and. feel dead.
He spoke of President Harding in terms of contempt, saying he was
servile, - a follower and not a leader.
He said that whatsoever history might say of him otherwise, it
would surely recognize that he never feared to fight for any
cause he deemed to be just.
He told C.S.H. that the rumor of his treatment by President Harding
and Secretary Weeks at the burial of the " unknown soldier"
was absolutely true; that he was given no invitation to attend
and assigned no place in the procession; that, amazed at such
an affront, he wrote Sec. Weeks, who very courteously replied
-hat he would be assigned a place in the procession but that
he must leave the line before it passed into the cemetary;

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Wilson, President and Mrs. (Cont.)
that scarcely believing this could be true, be wrote
4 President Harding, Aiho replied, - referring to him in the
letter as "Mr. President," - that he felt sure that
WA I C1
NW. Wilson would appreciate that Sec. Weeks, decision was
Vlo•
approved by him, and that he would understand it; that he
constdered this letter as a deliberate affront.
.Same time ago, Admiral Grayson referred to this incident very
guardedly in a talk with H.P.H., who received the impression
that he thought this incident had been somewhat exaggerated
by Mr. Wilson.
Dec. 27, 1923. 29, 30, 31.
Mrs. Wilson told H.P.H. that clemenosau on the occasion of his
call on Mr. Wilson told her that he intended to make a
careful study of the life of President Washington; that he
had never considered him a very great man, but he wanted to
look into his life carefully. 31, 32

srs.

Wilson told H.P.H. that ihartly after President Hardingls
inauguration, Sec. Wallace wrote her a charming note saying
that the agricultural department would send some flowera to
President Wilson and herself every week; that she wrote
• thanking him; that for two weeks only the flown's were sent,
and then they suddenly ceased coming and have never been
sent since; that a friend told her they had been discontinued
on the order of a person "higher up." C.S.H. believes
President Harding must have been the parson "higher up" as
no one else could countermand the order of a Cabinet officer.
Dec. 27, 1923. 32

Mrs.

Wilson attends New Year's reception of H.P.H.
Jan. 1, 1923. 34

C.S.H. goes with Mrs. Wilson and Mrs. Admiral Helm to Mattapoisett.
Aug. 26, 1923. Sunday. 163
Take breakfast at Providence and go to Mattapoisett in Charles
R.
Crane motor which brought over eons of the Cranes to
Providence the night before, our aichine having been badly
damaged in a collision yesterday. Aug. 27, 1923. 163

•
,

•

H.P.H. takes than to Horse Show at Newport as guests of Nina
Hopkins. Mr. James Gerard wanted to ive them a lunch,
but Mrs. Wilson said that Mr. Wilson would prefer that
she
accept no hospitality foam Gerard, so C.S.H., by telephone,
told Nina that Mrs. Wilson wished to be very quiet and
therefore felt constrained to accept no other hospitality
than Nina's.

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—212-

Wilson, President and mrs. (Cont.)
C.S.H. could not go but the rest motored over in Mrs. Blake's
machine loaned to us until ours was repaired.
Nina and Hendrick:met them at the bathing beach and introduced
many people who waited there to meet them. Nina gave than
a lunch at her hotel which Hendrick presided over as his,
mother had an engagement, mule a long time previous- vihich
she could not conveniently break.
At the Horse Show they received an ovation, Nina introducing many
people to them. Gerard WWI in constant attendance.
Aug. 28, 1913. 163
All lunched with Mrs. Stephen Weld and then drove to Woods Hall
and called on Mrs. Richard Olney, who was out.
Aug. 29, 1923. 163
Mr. and Mrs. Wilson give C.S.H. for his birthday a "grave yard
rabbit's" left hind foot for good luck, mounted with gold
and with his initials on it. C.S.H. wears it on his watch
chain. Aug. 30, 1923. 163
Mrs. Wilson and Mrs. Helm attend lecture of C.S.H. an Federal
Reserve System at house of George Hamlin at Marian.
Aug. 31, 1923. 164
Mrs. Helm leaves for Washington an the 5:35 train from
New Bedford. Sept. 1, 1923. 164
Mrs. Wilson attends reception at Sippican Panora Grange at Town
Hall, Rochester.
Mrs. Wilson and H.P.H. did not intend to go but the Librarian
wrote me such a charming letter expressing their respect and
admiration for President Wilson, that, when I read it to
Mrs. Wilson she said it was a command and that she wanted to
go, so I accepted for them.
There were 135 people present, the women all dressed in white,
and it was really a charming affair. They All received us
at the door and escorted US in.
I told the Master not to call on Mrs. Wilson for an address as
she was not used to public speaking and he kept his word.
After I had finished speaking, a woman in the rear of the hall
arose and sati they all hoped Mrs. Wilson would say just a
word to them, at which she arose and made a short, charming
address. Sept.* 1, 1923. 164

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Wilson, President and Mrs. (Cont.)
Mrs. Wilson gave a public tea to the people of Mattapolsett,
and about 50 towns people came, including Mr. and Mrs. Pease
of Nev Bedford. Sept. 2, 1923. 164

Mrs.

Blake sent one af her autos to our garage the other day
saying that we were to keep it during Mrs. Wilson's stay
and later until our machine was repaired, - as a birthday
present to C.S.H. 165

C.S.H. leaves for Washington leaving Mrs. Wilson with H.P.H.
Sept. 3, 1923. 165
C.S.H. rides up to Mr. Wilson's house to leave a letter to
Mr. Wilson from Mrs. Wilson.
Saw Bolling and Admiral Grayson.
Grayson said he knew Mr. Wilson would want to see me and C.S.H.
waitaiwhile be went upstairs. He soon came down and
said Mr. Wilson wanted very much to see me.
C.S.H. went up and found Mr. Wilson eating breakfast.
Mt. Wilson was very glad to see C.S.H. and thanked him gratefully
for his and H.P.H.'s kindness to Mrs. Wilson.
C.S.H. told him of the outpouring of the people to see her, almost all Republicans, and of her address to the Grange.

Mr.

Wilson was very much affected and completely broke down, UM,
tears pouring down his cheeks.
Sept. 4, 1923. 165

(Later in the week Mrs. Wilson returned to Washington, Bertie
driving with her to Providence. Before leaving she wrote
C.S.H. a most appreciative letter.)
C.S.H. called up her house the morning she arrived and found
she bad just arrived. Later she called up C.S.H. to say she
did not know he had caller her up until later.)
Mts. Wilson called up C.S.H. and asked him to dine, saying she
had fixed the how at 7 hoping Mr. Wilson would join Us.
C.S.H. called at 7 and. found Mr. Wilson finishing his dinner.
Spent a half-hour talking with him.

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414-

Wilson, President and Mrs. (Cont.)
He seamed very Aell and in good spirits; he told several very
amusing stories, but we di-1 not discuss current events.
Just as he was starting to go up atairs, Mrs. Wilson asked C.S.H.
to take a look at their garden from the adjoining roam; as
it was too dark to see anYthing, I at once realised that her
purpose was to prevent my seeing Mr. Wilson helped out of
his chair by his attendant.
A, minute later Mr. Wilson followed me into the next roam, shook
hands wlth me, and walked out of the room vary easily,
using, of course his cane.
Mrs. Wilson, Bolling and C.S.H. then dined. Later I smoked
cigar with Bolling While Mrs. Wilson was helping Mr. Wilson
up stairs.
Bolling said Mr. Wilson was gaining physically, that for a ion,
tian his man had to go up in the elevator with him, but
that now he preferred to go and went alone; that he was most
anxious to recover the use of his left arm; that a times
he was very emotional; that he usually warned visitors
against expressing sympathy or indulging in eulogy, as it
rather unnerved him; he referred to my talk with him last
week when I so praised Mrs. Wilson and the tears rolled dawn
his cheeks, - tome, hoaev,r, it was merely an involuntary
manifestation of his love for Mrs. Wilson.
Later Mrs. Wilson, Bolling and C.S.H. played pool together, and
C.S.H. left at about 1045 p.m.
Sept. 11, 1923. 166, 167
From the talks I have had recently with Mrs. Wilson and Bolling
I am satisfied that Mr. Wilson deeply grieves over his
situation, and that his acute mental condition of mind makes
him fully appreciative at his physical condition.

Mrs. Wilson said he frequently complained that he could not write
or work well with only one arm, but 523 always told him
that she could always hold his books for him and help him;
that she told him that the loss a his arm was no worse
than if he had had it taken off as the result of some
accident; she toll H.P.H. that she had always cut the
leaves of books for him.
C.S.H. suggested Christian Science and Mrs.Wilson said that while
not a follower in Christian Science she would only be too
happy to have him try it, that she had sug listed it, but
could not induce him to try it, whether because he believed
in predestination or not, she did not know.

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Wilson, President & Mrs.
C.S.H. is satisfied that Mk. Wilson is weighed down with trief
over his physical condition, and that what he most needs is
rousing up so that his strong mind and will will mdke him well.
Mrs. Wilson said there is no hope of his ever recovering the use of
his left arm.
Sept. 11, 1923. 166
Admiral and Mrs. Helm gave Mrs.Wilsan and C.S.H. a supper at a
little inn just off the Alexandria road, next to Congressman
Campbell's house.
She said Mr. Wilson wanted to buy Campbell's house, but the agent
refused to sell; that later, Campbell heard of this and said
that , while the house was not for mile, he would sell it to
Mr. Wilson; that by that timethey had signed an agreement to
purchase their present house; that they were much touched by
Campbell's kindness. ,
After supper we drove into the city to the Rialto and sawithe Green
Goddess, a moving picture in which George'Ailiss took the
leading part. Sept..12, 1923. 169
Mrs! Wilson called up C.S.H. and asked him to dinner and later to
go to Keith's theater.

Kr.

Wilson finIshed his dinner be!cre we went in.

We drove down to the theatre entering the door opening an the
alley way in the rear; about 100 people wsre in the alley and
greeted Wilson with chsers which could be heard in the theatre.
C.S.H. went in first, taking, an reqaest of Mrs. Wilson, the third
seat itOthe last row nearest the entrance, followed by
Mrs. Wilson and Bolling.
The 3 seats to my right and 4 seats in front were unocaapied, the
manager having arranged this.
The manager stood directly on Mr. Wilson's left during the whole
performance, and there were several datbotives in waiting
futnished by the manager.
When Wilson entered the theater the whole audience, - who had
heard the cheering outside, - rose to their feet with applause
and cries of Wilson' Wilson; until he had taken his seat.
After the performance, the entire audience rose to its feet and
remained standing, applauding and cheering until Wilson left
the theater.

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•

Wilson, President & Mrs. (Cont.)
In the alley outside a large crowd had assembled, which greated
Wilson with cheering and cries for a speech. Mr. Wilson rose
to his feet in the auto and bowed again and. again.
C.S.H. would. not let them drive him home but walked around towards
the front entrance on the way home. He found all the
audience were discussing Wilson with evident appreciation, and
he heard one woman say to her husband, "I would willingly have
given up ten years of my life to see that grand old man againt"
It was a memorable tribute of love and respect.
Sept. 15, 1923. 169, 170
Mrs. Wilson called up C.S.H. and asked. him to dine this evening
and have a game of pool..
C.S.H. told her of the death of Mrs. Scbrard Hamlin, and it was
arranged he should dine next Tuesday at 7 p.m. She put it
at 7 so C.S.H. cculd have a talk with Mr. Wilson.
Sept. 20, 1923. 170
Gov. Harding spent Sunday with us at Mattapoisett and told C.S.H.
that he wrote Mr. Wilson asking permission to publish in his
book, - the history of the Federal Reserve system, - a personal
letter Mr. Wilson wrote him in approval of the Board's warning
as to over-investment in British exchequer notes; that Bolling
sent him a very brusque note stating that Mr. Wilson was not
willing to have the letter published.
Sept. 22, 1923.
(Bolling said Gov. Ws lotto* greatly amased Wilson) 173
C.S.H. dines with Mrs. Wilson, who asked him to axle at 7 p.m. as
Mr. Wilson wanted to chat with C.S.H. before he went up to bed..
Mrs. Wilson took C.S.H. up to the library Where he found Mr. Wilson
finishing his dinner.
Mr. Wilson talked with C.S.H. for nearly a half hour.
Mr. Wilson was in good spirits and told C.S.H. many amusing stories.
Ho spoke of the false econcray of discontinuing the Mattapoisett
Light House, - of which C.S.H. had spoken to Mrs. Wilson, - and
said C.S.H. should tell the Den. Natl. Committee about it.
We talked at length of Lord Birkenhead's recent attack on him, and
he said that while Lord B. might be able in some way., , yet in
many others he was an urraitigated assl

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417..

•

Wilson, President & Mrs. (Cont.)
C.S.H. said he really felt grateful to Lord B. for his frank
expression of approval of the utilitarian ideas of the 16th
centurgy; that he showed clearly that he had never advanced
beyond the views of Hobbes and M-ndeville who pictured
society as a collection of wild beasts fighting to the death,
the gain of one representing the loss to the other, and
applying a similar conception to the relations of nations to
one another; that Lord B. had furnished a chiaroseuro on back
ground, against which Wilson's views as to the duties of
nations to preserve peace stood out clear ly and beautifully.

Mr.

Wilson asked C.tt.H. what be thought of President Coolidge's
address on practical idealism.

C.S.H. said he could not follow his reasoning, unless be really
meant idealism for others, but practical selfishness for
ourselves.

Mr.

Wilson said. Coolidge gave no sign of any underetandin
g of the
subject, in which C.S.H. fully concurs.

Mr. Wilson was very sensitive at the unfair Republican
criticism
. heaped on him and said that sometimes he almost
felt as if we
should leave Republicans absolutely albne, socially
as well
as °thefts.
He sent his warmest regards to H.P.H., Anna, and
Mrt. Blake.
(See letter of Wilson to C.S.H. on Mrs.. Blake).
C.S.H. sees signs of marked physical improvement in
Mr. Wilson; his
mind has always been keen and alert.

mr46

Wilson said Mr. Wilson at first was much worried
about Italy
in relation to the League of Nations, but that Mr. Baruch
, who
dined with him a few days ago, hai Cheered him up
immensely.

C.S.H.'told him the L. of N. was simply suffering
from *growing pains*
and would cats out all right.
Sept. 25, 1923. 171, 172, 173

•

Mrs. Wilton, while at Mattapoisett, referred to Rev.
Ernest Smith of
Washington as a perfect snob, always kowtowing to
those he felt
to be above him; that she had been his psrishoner
for many years
but that he had. fairly driven her from his church
; that just
prior to her marriage the was visiting the
Wilson family at
Cornish, Vt.; that Rev. Mr. Smith wrote her a letter
in care

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Wilson, President and Mrs. (Cont.)
of President Wilson asking her to secure some appointment for his
son; that she wrote him pointing out the impropriety of his request;
that thereupon he replied saying be did not know she was visiting
the Wilsons, but thought she was merely visiting in Cornish; that
this was a delibarately false statement as the press was full of
her visit and Smith addressed the letter in care of President Wilson.
This statement amused C.S.H. as refuting the gossip that Rev. Smith
was so in love with her that he begged her to leave the Parish,
as he could not control himself to preach while she was present
in the congregation!
Mrs. Wilson begged C.S.H. to call up at any time when he wanted to
cane to dinner, - that he would always be welcome.
Sept. 25, 1923. 173, 174
Mrs. Wilson telephones C.S.H. to dine and eat some chickens H.P.H.
had sent her from Mattapoisett.
When C.S.H. arrived Mr. Wilson had finished his dinner and had gone
upstairs to his mom, Mrs. Wilson saying he was tired as he hai
seen some people late in the afterncon.
After dinner Mr. Wilson. asked C.S.H. to come up to hi.; roam, where he
found him playing solitaire, and had a very pleasant talk with
him.
Later C.S.H. played pool with Bolling ant Mrs. Wilson.
Sept. 27, 1923. 175
C.S.H. called on Mrs. Wilson and she asked him to dinner next Tuesday.
Oct. 4, 1923. 175
C.S.H. prepared a letter to
article.

Mr.

Wilson praising his Atlantic monthly

Oct. 9, 1923. 175
•

•

C.S.H. dines with Wilsans and later played pool. Had a fine talk with
Mr. Wilson who was in good shape, full of interest and vigor.
He is physically improving very fast.
Oct. 9, 1g23. 175
Valson writes C.S.H. a characteristically vigorous letter, in reply
to his letter, severely attacking Lord Birkenhead.
Oct. 11, 1923. 175

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Wilson, President and Mrs. (Cont.)
C.S.H. called up Mrs. Wilson saying he want
ed to come to dinner
but Mrs. Wilson said the general manager
of Galt Brothers
had just died,and she would be very busy
tonight and
Wednesday.
She asked C.S.H. to dine Thursday but
he could not as he was
going to Mattapoisett.
Oct. 16, 1923. 176

•
••
• •

C.S.H. and H.P.H. drive to Redding* dahl
ia farm at Plymouth to see
some dahlias the papers said had been
named for Mrs. Wilson.
Mr. Redding said the statemEnt was not
true; that this had
been done some pars ago by a Waltham
grower; that, however,
he raised both the Woodrow Wilson
and the Mrs. Wilson dahlia
but had none at the present time, but
would send me some bulbs
in the spring.
Oct. 20, 1923. 176

• •
Found note from Bolling that Mrs. Wils
on wanted C.S.H. todine with
her this evening.
Dr. Axson and Mr. arid Mrs. (Ralph?)
Bolling were there.

Dar'. Wilson had gone upstairs when C.S.H.
arrived, but Mr. Wilson
asked him to come up
to his room after dinner andtheq had
an agreeable time together for half
an hour.

Mr. Wilson had had a headache all day'
Oct. 23, 1923. 176
Mrs. Wilson wrote H.P.H., while
C.S.H. was at Mattapoisett, that
she was sending her two pure
bred Chinese ducks for our farm;
that she had fed them before ship
ping them, and hoped they
would reach us safely. We were
in great excitement and
ordered DeLong at once to build
a house for than ard C.S.H.
kept calling up the express ccmp
any at intervals of every
half hour during the day, but
no ducks cane.
C.S.H. left for Washington and call
ed up H.P.H. from University
Club, N. T.
H.P.H. amid screams of laughter
said the ducks had come, but they
were imitation Chinese ducks fill
ed with salt and. pepper!
Oct. 27, 1923. 177
C.S.H. calls up Mrs.Wilson and
she asks him to dine tomorrow and
go to the theater. Oct. 3:), 1923
. 177

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Wilson, President & Mts. (Cont.)
C.S.H. dines with Mrs. Wilson and Mrs. Helm and later
all (except
Zr. Wilson) went to a musical play at the theater.
Before we left Mr. Wilson sent for C.S.H. who went
up to his bedroom.
Mr. Wilson said that Foley's collection of his speeches
pleased him
very much.

ur.
•

•

Wilson also said that the League of Nations shoul
d =questionably
be the great issue for the coming campaign.
Oct. 31, 1923. 177

Mrs. Wilson asked me to dinner for Friday, Nov.
16, but C.S.H. could not
accept as ha was going to Mattapoisett.
Nov. 14, 1923.

179

C.S.H. mat Mrs. Wilson at dinner with Admiral
and Mrs. Helm; she asked
C.S.H. to drive home with her, but he bad alrea
dy accepted
Mr. and Mrs. Charles Warren's invitation
.
C.S.H. told Mrs. Wilson they had heard Mr. Wilso
n's armistice day
radio message at Mattapoisett, and that it
was magnificent, but
that it had made the politicians teeth chatt
er; that I felt this
was good for than and especially for
Mr. McAdoo, as it would
show him the necessity for coming out for
the League of Nations.
Mrs. Wilson at once replied that Mr. Wilson and
she were of the same
opinion.
She said McAdoo had often talked it over sith
her; that he told her he
believed in the League and had come out for
it pars ago, but
dnubted the expediency of pitting it forwa
rd prominently in the
cooling campaign; that if the draft of the
Federal Reserve Act
had been put in the National Democratic
Platform, it never would
have been enacted into law, etc. etc.

Mrs.

Wilson said Mrs. McAdoo said to her with
tears in her eyes, "Don't
believe the things you bear and will hear
of u.s1"

Mrs. Wilson spoke very kindly of Gov. Cox as
having been courageous
in fighting for the Lesigue of Nations,
saying that he had
maintained this attitude since the inter
view he had with
Mr. Wilson at the White House taring the
1920 campaign.
C.S.H. believes firmly that Mr. Wilson is
opposed to the nomination of
McAdoo for President, and that he does
not trust him as to the
League of Nations. Nov. 21, 1923. 181

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Wilson, Present & Mrs. (Cont.)
C.S.H. calls on Mrs. Wilson who was delighted to 1103 him and asked him
to stay to supper, but C.S.H. had an engagement with Mr. and
Mrs. Charles Warren. She then asked him to line Tuesday, but
C.S.H. was to dine with the Belgian Ambassador; also for
Wednesday, but he was leaving for Albany on that day.
Mrs. Wilson brought C.S.H. into the library where he had 15 minutes talk
with Mr. Wilson,
Mr. Wilson said he should come out openly against any democratic
candidate who failed to come out unequivocally for the League
of Nations.
C.S.H. told him he was delighted to hear this.
Nov. 25, 1923.

183

Mrs. Wilson called up H.P.H. and asked UA to line with her.
After
dinner we went up to Mr. Wilson's bedroom and found him sittin
g
in his dressing gown.
We had a very agreeable 20 minutes with him.
Mr. Wilson spoke with regret of his having telegraphed Presid
ent
Coolidge (when Governor) thanking him for his courage
in the
Boston police strike.
Bolling said Wilson had written a letter to some friend
saying he did not
care to read Prof. McElroy's book on Cleveland, as he was
ware,
from
at he krew of McElroy, it would not be well done.
Dec. 4, 1923. 184
(This was the last time C.S.H. saw Wilson alive.
)
Senator Hitchcock tells C.S.H. that Mr. Wilson's address
from his house
on armistice day was poorly delivered and that his manner
was
almost imbecile. Dec. 5, 1924. 184
Vice President Marshall, at dinner at Senator Saulabures,
told C.S.H.
that he had not called on the Wilsons since they left
the
White House, as he did not want the humiliation of being
turned
down and refused admittance.
C.S.H. said he felt mare he would be received if he asked
for an
appointment. Marshall said. he tried three times to obtain
an
interview with Wilson at the White House, and even writte
n0
letter, but all to no avail.
(Mrs. Wilson at Mattapoisett told K.P.H. they felt very sorry
that
Marshall had not called on them.)

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Wilson, President and Mrs. (Cont.)
Marshall said he had arranged with Lard Grey to get the British Govt.
to annourc a that it would accept the Lodge reservations to the
League of Nations, and wished to see Wilson to induce him to say
that if the Senate ratified the Versailles treaty with these
reservations, be would send it to Great Britain and not tear it up.
(Marshall was this working behind Wilson's back and as Wilson had
decided tot to accept the reservations, it is easy to understand
Why Wilson, Who probably knew what he was doing, did not care to
see Marshall.)
D ec. 5, 1923. 184, 185.
Senator Saulsbury, after dinner, -as very bitter taNards the Wilsons,
saying he was disgusted at the Empress Dcwager - Tumulty-Grayson
combination.
Senator Saulsburi also said he had prepared a concurrent resolttion that
all bills, etc. should, in the disability of the President, be
sent for signature to Marshall as acting PreAdent, but that
Marshall would not stand for it.
Dec. 5, 1923. 185
(Mrs. Wilson told H.P.H. at Mat tapoisett that neither she nor Mr. Wilson
knew why the estrangement between Mr. Wilson and House had cane
about.)

Wing, Daniel, let National Bank, Boston
Strongly favors Gov. Harding for Gov. of Federal Reserve Bank of
Boston*
Dec. 18, 1922. 26
Warburg does not want to give any general erpression as to Cuban
agency
because of his relations with Wing.
May 1, 1923. 103
Attends conference on Cuban agency.
May 7, 1923. 107
Strongly favors designation of Boston. 109
C.S.H. confers with Wing at Federal Reserve Bank, Boston.
Strongly opposes designation of Atlanta as well as Boston.
May 26, 1923. 130
Says if any charge of discriminaticn is mxie against Atlanta they will
show that Boston can fight. 136

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Wing, Daniel (Cont.)
says that the administration will suffer politically if it turns
down
Boston for Cuban agency. 136
Asks that Natiora.1 City,,Bank agency in Cuba be abolished at
ones.
137
Says he agrees with Warburg that Federal Reserve banks should not
have
agereies in foreign countries. 137
C.S.R. asks Wing, "Do you or do you not favor a Federal Reserv
e Agency
in Cuba?"
Wing replied, "Yes, because the status of Cuba, as regard
s the U.S.,
is different from that of a purely foreign c ountry."137
Wolfe
Mitchell tells President Harding that the Federal Reserve Board
did not
reappoint Wolfe as Director of Federal Reserve Bank because
of
his bitter attacks on him (circulating the negro blood ruaor,
etc.)
President Harding said he would have felt very sore had the
Board
appointed him. April 28, 1923. 98
Wood, General
believes Gin, Wood is conspiring to have Gen. McIntire ousted
from office; believes Gen. Wood inspired the resolution
offered at a meeting of the Philippine Chamber of Ccmmer
ce,
New York, attacking McIntire.
April 20, 1923. 91
Gen.

Wood. and

Forbes were in error, Dr. Willis says, when they said
in their report that conditions in the Philippines formed
one of the blackest chapters in the history of banking;
that while conditions were bad, they were no worse than
in
many U.S. banks, e.g. Guaranty Trust Co. etc. etc, 92

Wool tariff
Taussig thinks the tariff relation to high prices is irrele
vant
except as to wool and woolens. April 19, 1923. 89
Wyatt, Walter, General Counsel, Federal Reserve Board
Advises Board it has legal authority to loan examiners, without
charge, to supervise and assist at state superintendent's
examination of state banks. Daze 9, 1922. 21
Advises that certain paper of cooperative marketing associations
can not be classified as agpicultural paper, but intimates
that on more careful examination he may reach a different
conclusion.
Deo. 14, 1922. 23

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Wyatt, Walter (Cont.)
Advises Board that the best way is to designate both Boston and
Atlanta for the Cuban agency; but to arrange by regulation
that Atlanta shall appoint an agent to hold its Federal
Reserve notes (perhaps in joint custody; Wailes Boston is to
manage the agency, buy bills, etc. and Atlanta to pay over
its Federal Reserve notes to Boston, receiving the bills
bought, and than selling the bills to Boston which will pay
for them through the gold settlement fund.
May 28, 1923. 138
Wyatt says if Boston alone held the agency, while it might be
possible to work the matter out, there would almays be
danger of a legal attack; that to appoint an employee of
Boston agent also for Atlanta might be construed by the court
to be analogous to a Federal Reserve bank appointing another
Federal Reserve bank to receive and pay out its Federal Reserve
notes,which would violate the law rewiring such notea to be
returned, under penalty for redemption or credit.
May 28, 1923. 139
Board asked Wyatt to prepare a form of letter for Gov. C. to send
Gov. Harding expressing these views. 139
Board discussion of Wyottis memorandum that Elliott wishes to file
a brief with the Attorney General on the proper construction
of Section 9, Federal Reserve Act.
Board votes to notify Attorney General of this request without
comment. June 11, 1923. 148
Gov. Harding accepts Wyattle draft on Cuban Agency.
June 26, 1923. 157
Board adopts Wyattis draft of resolution designating Boston and
Atlanta, with a few slight changes.
June 27, 1923. 157
Wyatt tells C.S.H. he had casually told Milkr of his desire to
buy a Ford automobile, and that Miller offered to loan him
$500 for this purpose. August - 1923. 162
Wyatt gives to C.S.H. for law committee suggestions f or salary
increases for his force, but make- no eiggesticn as to increasing his °ma salary, although, in the past, he has worried
C.S.H. with his importunities on this subject.
A few minutes later James caue in and said Wyatt should be increased
to $10,000,

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Wyatt, Walter (Cont.)
C.S.H. believes Wyatt has been talking to James about this behind
the backs or the Law Comitteel
C.S.H. believes James is interested in this because of Wyatt's
opinion on branch banks.
C.S.H. is not prejudiced by the fact that he does not agree vAth
Wyatt's conclusions, but one part of his opinion was so
grotesque that the power to establish unlimited branches was
inconsistent with the spirit of the Federal Reserve Act which
was founded on independ'int unit banks, - that C.S.H. feels
he was going to absurd extremes to please the majority and egg
them on.
(For Wyatt's opinions on branch banks see scrap books.
See also C.S.H.'s testimony before the Joint Comnittee of Congress.)
C.S.H. feels Wyatt has arranged with James representing the
majority as to increasing his salary, and has not felt the
need for consulting the Law Ccmmittea.
C.S.H. and Platt will agree to an increase up to $9000, leaning
backward for fear of prejudice. Dec. 11, 1923. 186, 187
Eddy admits he has made a recommendation to Wyatt to fill vacancy
caused by dropping Bradley.
Dec. 21, 1923. 195
(Wyatt made no recommendation to the Law Ca:Mattes as to
reducing
Bradley's salary or dropping him, although James for
Salary Co:1=Mo' rectum:mended his being dropped.)
Wyatt tells C.S.H. that Eddy told, him that Polak, my former
Secretary, was not doing good work, and was dead wood.
C.S.H. told. Wyatt that Eddy had told him that Foulk had
done splendid work and that he favored transferring him
to the Gold Settlement rind. as Assistant Fiscal Agent
as
a promotion, which was done.
Wyatt said he heard Eddy say the same to James.
Dec. 21, 1923. 195, 196
•

•

Young, Gov. F.R. Bank, Minneapolis
Toted in favor. of 3% reserve on special savings acccunt
s.
Mar. 27, 1923. -76
Tuba City branch
McAdoo confers with Board as to Alba City branch application of
the Bank of Italy. Jai. 17, 1923. 38

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Yuba City branch (Cont.)
McAdoo and Elliott ask for reconsideration of adverse vote on.
May 22, 1923. 126
•

Board votes to ask Perrin to review his adverse finding in report on.
May 24, 1923. 127
C.S.H. presents draft of letter to send to McAdoo giving the reason
for the original rejection of. June 1, 1923. 143, 144
Johnson, State Superintendent of Banks, said, if requested, he
would go over Yuba City application again.
June 1, 1923. 146
Dr. Miller moves to reconsider TUba City spplicattn.
Perrin has sent in another report changing his adverse recommendation
into a favorable one.
Perrin, in last report, said there was need at additional banking
facilities; that the national bank there would not be injured;
that, on the contrary, the President of the national bank
favored the application saying he preferred it to establishment
of another unit bank, and that it was inevitable that same new
bank must be established there to take care of the growing
business of Yuba City and Sutter County in which it is established.
C.S.H. said he origirally voted against it because of Perrinis
adverse
report and because Gov. Crissinger said he had received a
telegram satisfying him that the Bank of Italy wanted to crush
out the National bank, not being dole to buy it; that now he
was satisfied there was no such danger; tat an the contrar
y, the
national bank favored the application; that the state Superin
tendent had given his approval.
Gov. C. doubted this, but it was pointed out that it was
the
Sacramento brunch to which the Superintendent had declined
to
give a certificate.
C.S.H. said he felt bourd to follow the policy laid doin by the
state
authorities, and, assuming that the state hal given a certificate
he felt boindto vote for reconsideration.
Dr. Miller also *Oka in favor of reconsideration.
Motion *0 reconsider was lost.
Vote:
Aye - C.S.H., Miller, Platt
NO - Gov. C., Cunningham, James, Dawes
June 12, l9B3.

150, 151

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Yuba City branch (Cont)
Dr. Miller begged Board to reconsid
er its action on Yuba City;
said that Board originally relied
on Perrin's adverse report
and. the telegram of the national
bank; that the Board asked
Perrin to review his original rep
ort and that he had changed
his views, nom reporting that ther
e was need of additional
banking facilities, and that the
Presidaat of the Tuitional bank
favored the application; that refu
sal to reconsider would r;lace
the Board in an arbitrary and ridicu
lous position and lay it
open to a charge of discriminati
on.
Gov. C. said he did not believe the
re was need of additional banking
facilities there.
Dr. Miller said this was settled by
Perrin's finding.
C.S.H. pointed. out that Gov. C. had
the right, altho C.F.H. differed
.
from him, on the facts to find ther
e was no need of additional
banking facilities, as Perrin's rep
ort was merely evidentiary,
and any member could find contra,
if he had any etidence or
knowledge on which to base his
finding.
No action was taken by Board., but it
was left for the new committee
on examinations, when appointed.,
to consider.
June 14, 1923. 153, 154
Elliott writes Goy. C. for a cop
y of perrin's revised report.
This requ.est had. already been
declined, and no one would move
to
reconsider, and the matter was
left in abeyance.
July 31, 1923. 159
This is the rankast kind of dis
crimination, - we originally turn
ed
down the application because
of Perrin's adverse report. The
n,
on hearing, at McAdoo's reques
t, we asked Perrin to reexamin
e
the matter. We did. not say it
plainly implied that if Perrin
should. change his finding, we
would grant the application. The
n
Perrin changed his finding, said
. there was need of additioral
banking facilities and that the
national bank favored the
application. Then we ag.3.in disa
pproved the application. Then
McAdoo and Elliott asked for a
copy of Pend Ws second finding.
We had shown his first report to
McAdoc, but mix Board refuses
to let him see Perrin's second
and favorable report'
Such conduct is imbecile.
(End of Volume 7.)

Full text of Diaries of Charles S. Hamlin : Index-Digest of Charles S. Hamlin Diaries, Box 21, Volume 7, Reel 15, October 13, 1922-December 21, 1923

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