Full text of Diaries of Charles S. Hamlin : Index-Digest of Charles S. Hamlin Diaries, Box 22, Volume 8, Reel 15, January 1-June 17, 1924

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Collection Mita

THE PAPERS OF

CHARLES SUMNER H MLIN
DIARIES

Series and/or Container
•

Shelf/Accession No.

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

INDEX - DIGEST
DIARIES
VOL. 8.
1924, Jan. 1 - June 17.
Adams, Senator
C.S.H. meets, at sypper at Mrs. Harriman's.

May 9, 1924. p. 70

Adams, Vice President, Nati Shaumut Bank, Boston.
Telephones C.S.H. in favor of McFadden branch bank bill.
C.S.H.
explains situation to him, - the Board favors increasing
the
powers of national banks as to branches, but is divided
as to
cutting dorm existing powers of state banks. p. lea.
lily 26, 1924.
Adjusted compensation.
See - Bonus
Agriculture
Dr. Miller mildly reproves Cunningham for not presenting a
draft
for our annual report on subject of agriculture, although
the
Board asked him to do this weeks ago, Which Cunningham
admitted.
May?, 1924. p. 64, 65.
Albany, N. Y.
H.P.H. and Anna leave for, to take part in celebration of
the 300th
anniversary of foundation. May 30, 1924.
174.
P.
Argentina
C.S.H. and H.P.H. dine with Ambassador of.

May 26, 1924. p. 166

Assistant Secretaries
Cooke of State Department advises C.S.H. that the members
of the
Federal Reserve Board outrank all Assistant Secretarie
s,
whether lst,2rd, or 3rd.
Jan. 24, 1924. P. 7
Associated Press
Admiral Grayson gave, a list of honorary pall beare
rs at hr. Wilson's
funeral which did not contain name of C.S.H.
C.S.H. called up
Grayson Who said it was a stupid error an part of some
one and
that he would ask its correction in the associated
press.
G. said the name of C.S.H. was the first one chose
n by Mrs.
Wilson. Feb. 5, 1924. p. 15
w

Austin, Federal Reserve Agent, p. 197,
198
See - Federal Reserve Bank of Philadelph
ia.

-B-

•

.8.1.3 .1/id 1.eisc

• A —

$1110Vic:;.
eAl 311&.8010(11
0:

as ,OtrIvIt et 3rid

•

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

.E41

•

.tarsad e$4:a "zo

via
.11al:manezpot, belauthA
aur:o6.• tea

.i61 XILL2.0
793'1
, 1-- o .
T..

.14

Baker, President 1st National, New York.
Attends dinner to Ambassador Hanihara in New York, and tells C.S.H.
his address was one of the best he ever heard.
Mar. 10, 1924.
p. 72.
Baker, Secretary Newton D.
Is guest of C.5.14 for Wilson funeral.
Calls up C.S.H. fres Cleveland and sad* that he had been asked to be
an honorary pall bearer, but the invitation did not mention
Mrs. Bajer; that he wished me to ask Tumulty if ladies were
expected. He asked if I had Mrs. Wilson's telephone number,
and on my saying I preferred to talk with Bolling he asked me
to put the cpestion to him.
C.S.H. called up Bolling who said he did not know but would ask
Mrs. Wilson. After a few minutes he said Sys. Wilson said that
as the space was so limited ladies were not mooted.
C.S.H. suggested that he had, better not qpote Mrs. Wilson, but
merely to wire Baker that Bolling says etc. (in order to shield
Mrs. Wilson). Bolling seemed rather annoyed and said,
rather brusquely, - *Say anything you please, these are
Mrs. Wilson's exact words* and then repeated them.
C.S.H. wired Baker that Mr. Bolling says etc.

Feb.

4
4

1924. p.14,15.

Tells C.S.H. that Wilson utterly despised McAdoo for resigning just
before he (Wilson) started for Paris.
nob. 5, 1924. p. 16.
Says he has just had. a conference with Sea. Dadelse at the Hamilton
Hotel an the Teapot dcme iii scandal. Feb. 5, 1924. p. 16
See- Daniels.

rL,e,
-•

•

Speaks of a land patent on oil land which sea. Lane wanted to approve
but which was held up by Wilson. Feb. 5, 1924. p. 16
See - Lane, Sec.
Says he protested to Lane as to this. Feb. 5, 1924. p. 16
•

Babioneteff, Ambassadcr
C.S.H. feels Prince Caatani, the Italian Ambassador, reminds him of
Bahkmetaf, the Russian Ambassador, - a cynic.
Feb. 25, 1924. p. 53
Baldwin, Miss.
Announcement ofsagagsmsnt of Stanley Hawk's to, precipitated Mariparet
Harding's suidide. Jan. 30, 1924. p. 13

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

-3-

Bank of /Unload.
GiVes credits to Reichsbank, - to enable it to rabscribe for me-half
of the stock of the Schacht siLd bank, plus one share, - in
April 7, 1924. p. 109.
sterling.
Gov. Case tells 7. R. Board that a director of the Bank of Inland
told him that Great Britain was overburdened with credit
&emends which it could not handle, and that her discotnt rates
should be increased and ours decreased. May 7, 1924. p. 130

Gov. Strong says he belies the Bank at Ingland or Great Britain
has a large amount of gpld, not mentioned in its financial
statements, received from France and left aver gram Russia,
with which it will take care of the interest pigments it mist
make to the U.S.
May 22, 1924. p. 152
See also - Norman, Gov.
Bmak of Italy.
ination Division, Federal Reserve Board, tells
Berson, Chief of
CO 13.1i., that in his opinion, the Bank of Italy was in an
absolutely souni condition; that he hod carefully studied the
last state examination report, and that the Bank was in fine
coalition. Feb. 18, 1924. P. 28, 29.
e

Johnson, California Supartntendent of banking wires Board urging
favorable action on application of Bark of Italy and
Pacific S.W. Co. to take over and operate as a branch the
Talley Bank of Fresno, Cal., unier an agreement to divide the
existing branches of the Taney Bark aid to close sane of them.
Johnson said that if not granted the Bank must close, aid would carry
with it other banks, and. might imperil the whole banking
situation of the San Joaquin Iralloy.

•

Fresno is midway between San ?rand WO and Los Angeles, - about
200 miles from either. Miller favored, but Dawes and James
objected.
Gov. Calkins and Mum. Committee at F.R. Bank of San Francisco wire
that it was urgent and both favored it.
Board voted to give P.R. bank authority to eq:sprove, if satisfied
thin was the only practicable way of meeting the situation.
•

All voted aye except Dawes and James Ida o voted No.
Fob. i5o 1924. p. 46

.111&tat*
oldurie 01 - t inudertalefi OJ Sti:100,
1Lad-#03 101 tr,1170 ed4.4) 0$ 11
:aortae etf$ to 40G1# oriS *s0
,e7,41,1# ono iurig, ,Ricsa big Ir.
.1301 .q .i4:bet
4•3
;,"
ik110 ,664
brIS
',Ansaiii to i.)111)
tlhou dIPN bettedrurdieva $ow fr.14.314 ttle141 0444$
cs1 on ilitoo 11 'rldldiv. atrateet
aelLi 1rutoauli.: *wit 1,16:1J ttro
1 ,
.tit! 4,cimL vwo ktis4- •Iumiottni- 1;!f: .1-voda
a
aLL .q

•

exste stio•z$8
lasEt17taos livt"
,
Ltitoibra
41.16411a' 1)4 tet)
1.rtuoce.ki #1:,04.r s sad
!on ,1144
14/anettit e$1 ni
:
.
cohleali 0311 'ley° r:tel tie eriI moil Lc-110ov
rib.t.14
11.1vN
la ei4a
.tzv91-elra
,
nestrusc
trial fl
61641.
.
.8.11 t4.3
.4 e.E
1,
.i0

,ntit,:s
4144 I lo ;tn.'
,aairtelT

1.4)
j.1_11 t
iaG Je hic.1
s eii.a.
11W.: ,J.10 A L 1i, 0 III.I 4-11'
JiGazt
=rAtz,:i fr. s :a.: a Vail
arjj
t 310
.eg t • •
1
• "..

If'
traP,2

ti,11 belliliTV. , it.
1
GA- 11 al sa

sta
e,:

11
xi:A*511r ,
c.
fl euW 5112*i.id -., , ".,;.E.1..t.m$Ltrzeiril
,Ji/t'1i ci,
y:3 13 Ari4,'.'. 10 itoci/L.,..4-4: L-1:.) 3
J3
rit'aitCId iiA “1 6.h. .1LC1,0 1114 7,0‘70 tts:•:11: 0 1 . •W.
:
OA
N,-,,t);1.a
03' ::1,C-ialliK *IXt-, :i..: If iair ,
I,
•i
,.'. a .1.:`, Zlj
e;1,-,-.1 , !
1
Zik-s ;'ti-440( V.1.:AV e

gig.i.(1..

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

4
f,1 „ro It 1
1
3tItiaad

V
,

I. 'It :iitt

«Nr.6 TIAN r, :4-sio
it.crod.h
atmut

4
- 11161:

b..4.44;
t

)J
,
;‘,) rt J1

rt
‘41

muiv: e iwri 94amtl. a tail.:
.

17. rtwet
,
,Lielt34
-1.11 dotl:
bewaa Jou „tourist lei:Lim

.40;

•"
le, I Ci: Afti

„Tf.

)

ov
0

.
.

rt,i 14 r 4..;1"

It. 1.16

Zenon presents report to Federal Reserve Board dated Feb. 15, 1924,
as stated above. C.S.H. moved te accept the report and that
simultaneous examinations be imsediately ordered of Bank of Italy
and other Calif. banks having a large number of branches.
Miller bitterly objected and James moved to lay on table.
Vote:
Aye - Miller and James
No - C.S.I. and Platt
Gov. C. than voted aye and the notice was tabled.
rib. 38, 1924. p. 53, 54.
Giovini, of Bank of Italy,appeared before Board advocating certain
branohes. Mar. 12, 1924. p. 72.
C.B.H. moved that Board proceed to examine simultaneously the Bark of
Italy sad other California banks having numerous branches.
Miller moved to table. Defeated.
Vote on 0.8.1. motion?
Aye - C.B.H., Platt, Ownlinghsa, Dawes
No. - Miller, Jams
Carried.
Mar. 18, 1924. p. 80
Miller says this will precipitate a banking crisis in California
Max. 18, 1924. p. 83

b-utk
rit4 ;•.
.
lto

Bank of Italy (Cont.)
James says Hereon will shortly report that a simultaneous examination
of the Bank at Italy and other banks having a large =Aar of
ranches is perfectly practicable; that it will require perhaps
140 examiners, easily procurable frail the Federal Reserve bank
and fras other sources, which his report will reveal; that the
cost to the Bank of Italy would not be over $30,000 which was not
excessive nor unreasonable. Feb. 25, 1924. p. 48, 49.

Giovini, of Bank of Italy, wires cmgratulations to Miller co his
reappointment on P.R. Board, ani sends flowers.
May 19, 1924. p. 147.
H.
C. . says McFadden branch bank bill will give an unjustifiable monopoly

to Bark of Italy.
May 26, 1924. p. 166
Bankers acceptances
Wyatt, or his predecessor, ruled some years ago that a bank could not
dram a bankers acceptance against another bank secured by a trade
bill drawn on the foreign purchases, bought by said
drawer bank
in connection with an import or export
transactim.

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

-5-

Bankers acceptances (Cont.)
Comptroller Dawes, Goverror Strong and C.S.H. thought such
acceptances were at least technically legal, but on grounds
of banking policy should be strictly limited or perhaps
forbidden.
The Federal Advisory Council advised the Board as to the best banking
practice, on assumption that such acceptances iiltAr technically
11.1.
Later, Wyatt said he had changed his opinion and believed they were
technically legal.
C.S.H. asked him to write out his opinion.
Wyatt then gave a 17-page opinion, the gist of which was that the
Board could rule either that they were or were not legal.
lb

Most of the opinion dealt on gnostic:la of good banking practice, and
he soemad rather to favor a ruling that they were not
technically legal, in spite of his statement to C.S.H. that he
now thought they were technically legal. A most extraordinary
opinion!

•

He practically said, NI am such a brilliant lawyer that I can reach
any conclusion the Board wishes''
C.S.H. directed him to prepare another opinion stating categorically
and svccintly Just what his opinion was, reaching whatever
conclusion he deemed right.
He then asked C.S.H. to put In writing Just what the Board felt about
the above opinion, which C.S.H. did.
Feb. 23, 1924. p. 35, 36, 37.
See — Wyatt
4

Bead, T. B. 2z4 National, Boaton
Wires C.S.H. favoring the McFadden Is•anch banking bill.
May 26, 1924. p. 162

•

Bibbs, Judge
C.S.H. meets, at dinner at Mr. Danislos in Raleigh, N.C. as one
of trust*** at Univ. of North Carolina;he congratulated C.8.1.
warmly on his address.
June 11, 1924. p. 192.
Birkenhead, Lord
Dr. Kauxedy an Rriglish Chaplain tells C.S.H. that Lard Birkenhead
was both an ass and infidel.
Feb. 3, 1924. p. 13.

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

Bolling, John Ranlolph
Asks g$j, to be an honorary pall bearer at Mr. Wilson's Amaral,
by request of Mrs. Wilson. Feb. 3, 1924. p .13.

4
,Cr'!

Tells C.S.H. ladies are not expected at the funeral, in response
to inquiry from Sec. Baker.
Yob. 4, 1924. p. 14, 15.
Tells. C.S.H. that Mrs. Wilson, under her arrangement with the
Cathedral authorities is free to remove mi.. Wilson's body at
any time.
May 4, 1924. p. 129
Tells C.S.H. how Ws. Wilsonsfractured her shoulder.
May 25, 1924. p. 160.

•

Bonus bill
Sen. Reed of Missouri asks C.S.H. to cane to Finance Comnittee
with an expert, to meet Democratic members.
C.S.H. went with

mad.

Conferred with SM. Reed, Walsh (Mass.), Andreas Jones (N. Mexico)
and Simmons.
They asked me to consider the following plane:1. Payment, in full in cash by issue of loyal tender notes,greenbaas
2. Same, with a bond issue.
3. Same, but to carry very lcav rate of interest and to be
taken by the rederal Reserve banks.
They wanted to know particularly as to danger af inflation ahd higher
prices.
C.S.H. opposed all three and said he would prepare a memorandum.
April 12, 1924. p. 114, 115.
C.S.H. told Board, of this mid. an said no objection to sending
memorandum. Sen. Reed had told C.S.R. he could tell the Board
of this in confidence. April 14, 1924. p. 115.
C.B.H. prepares letter to Sen. Reed based on Mead's criticism of
above 3 propositions.
Platt typroved and C.S.H. showed it to Killer.
April 16, 1924. p. 118

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

Bonus bill (Cont.)
Miller approved it but suggested some condensation.
C.S.H. said he would ask Stewart to go over it and all agreed that
C.S.X. could send anything he and Stewart agreed upon.
C.S.H. conferred with Stewart and both agreed upon a shorter
memorandum which C.S.H. mailed Sen. Reed for his confidential
memorandum. (See scrap book).
April 17, 1924. p. 118
Borah, Senator
Tells Senator Glass that if he is nominated he would be glad to run
with him as Roe President.
Glass said he thought Borah was not serious, but son. Swanson told
Glass that Borah had spokenwith him seriously to same effect.
May31, 1924. p. 174.
Borden, Dr.
Cuts sut a sebaceous cyst frau back of C.S.H.Is neck.
of having it analysed. April 14, 1924. p. 116

Said no need

Bornet, David
Tells C.S.H. he may store furniture for summer in 919 Farragut
Square on same terms as last year - $30 per month plus cost
of wiring, etc. April 26, 1924. p. 124
Boston Herald
Publishes letters for and. against Lodge for his plan of adhesion
to World Court. There were over 2000 letters opposed and
only 10 or 12 in favor. May 2?, 1924. p. 167.
Branch banks. (See also McFadden bill)
(S424
.1P-4 6.6%44
44
"'•-)
( Nov. 7, 1923 resolution)

...

Board voted that it would not entertain petitions for blanket
authority to establish branches filed prior to Feb. 1, 1924,
under Board resolution of Nov. 27, 1923, but that it would
entertain petitions filed prior to Web. 1, 1924, naming the
towns or the loaation in non-contiguous territory as defined
by Board.
Tote as passed made it clear that approval of state superintendent
and Federal Reserve bank need not be obtained as a condition
of filing petition.
C.S.H. moved that 7.B. Agents be directed to notify each member bank
of this ruling. yassed.
C.S.H. moved that the date Feb. 1, 1924, in the Resolution of
Nov. 27, 1923, be changed from Fib. 1 to April 1, 1924.
Tote:
Aye - Gov. C., C.S.H. end Platt
No -Miller, Demes,Cunningham and James
Jan. 7, 1924. p. 4,5
Lost

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

-8

0,10e

Branch banks (cont.)
Hereon, Chief lexaminer, tells C.S.H. it is perfectly practicable
to examine simultaneously the banks having numerous branches,
without undue expense; that the examinations could be made
just after the examination of the Federal Reserve bank, ohich
requires a detail of examiners from other Districts.
Feb. 15, 1924. p. 23.
Hereon tells C.S.H. he has prepared a plan for simultaneous
examinations of large state banks with numerous branches, which
was perfectly practicable, and that the cost would not exceed
$20,000 for the largest bank; that it would require say 175
examiners, of which the Federal Reserve bank could supply 100;
that they need not all be skilled examiners, as the ledgers,
securities, etc. only had. to be listed, which could be done
within 2 days as a maximum; that, following this, the examination
would proceed as if each branch were a separate bank; that one
examination each year would be ample.
Feb. 18, 1924. 9. 27
See - Bank at Italy
Hereon
Superintendent Johnson of California wires Board strongly urging
favorable action on petition of Bank of Italy and Pactif. S.
West Savings and Trust Company to take over the Wiley Bank of
Fresno and its branches, the branches to be divided between the
two banks and some to be closed; he said that, if not granted,
the bank must close aid would carry down with it a number of
other banks and imperil the whole banking situation in the San
Joachin Talley.
Fresno is midway between San Fran. and Los Angeles, - about 200 miles
from either. Miller favored; Dames and James objected.
•Gov. Calkins and lixecutive Comnittee of P.R. Bank said it was vitally
urgent.
Board voted to authorise the Federal Reserve bank to approve, if
satisfied this was the only practicable way to wet the situation.
All voted aye, except Dues and James, who voted No.
Feb. 25, 1924. p. 48, 47.
lastern Banking and Trust Company or Newburn, N. C., files application
to take over a small bank and operate it as a branch.
Ma., James mid Platt favored it as the bank and proposed branch
were in sound condition.

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

-9-

Branch banks (Cont.)
Gov. C. strenuously objected as state examination was not good,
and said Board had determined to permit no more branches miles.
state examine& simultaneously.
C.S.R. said Board hat not yet done this; tlat such a ruling wculd
directly violate the Federal Reserve Act which prescribes that
the Federal Reserve bank must examine if state examination is
not satisfactory, and if satisfactory, it can accept the state
exam inati on.
Gov. C. said the F.R. bank could not make a proper examination.
C.S.R. said that clearly in this case it cculd.
James agreed with C.S.R. and said that Hereon would soon report that
simultaneous examinations of banks with a large =saber of
branches was perfectly practicable; that it might require 1,40
examiners glitch could sadly be procured frau the Federal
Reser'. bank and other sources, which his report would reveal;
that the expense to e.g. the Bank of Italy, wculd not exceed
$30,000 which was not excessive nor unreasonable. C:S.R.
pointed out that the Federal Reserve Bank of Boston charge
d one
P.R. bank $7930 for an examinaticn, and that the bank was
delighted to pay it as it placed such reliance on F.R. bank
reports.
Miller moved that the Federal Reserve Bank could approve provid
ed the
state was examining simultaneously, and the condition was
sound.
,latt awed to and, that approval be granted if the
F.R. bank
on examinatica found the condition of bank and branch were
sound.
C.5.11. announced that if the Board ruled that it would reject
applications fraa states not having satisfactory simulaneous
examinations, and would not examine through the F.R. bank,
he
might feel it his duty to apply to the courts fcra mandat
ory
injunction against such a plainly illegal act.
Plaiirtt• amendment carried and lanai's motion failed; Miller and
Gov. C. alone voted for it.
Miller said if this policy ore not adopted we might as well
throw
up our hauls to California.
C.S.R. said Congress alone could provide for this but the
Board had
no each paver.
C.S.R. said Sen. Glass wished Board to examine for itself
throughthe
P.R. bank, m matter how many branches there were.

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

.40
-

Branch banks (Cont.)
C.S.E. gyre notice be would so move, as soon as Hereon's report
was filed.
lob. 25, 1924. pi. 47,49,49,50,51.
Hereon files report, dated Feb. 15, that simultaneous examinations
of state banks having numerous branches, e.g. the Bank of Italy,
was perfectly practicable; explained methai in detail; that the
cost for the Bank or Italy would not exceed $20,000, - not an
unreasonable sum.

Lr1„:

C.B.N. moved that the report he accepted and that such examinations
be directed immediately, of all stata member banks with branches,
where the state did not examine satisfactorily and simultaneously.

e, • 0.

•!.•

Miller bitterly objected.

wet7-4.4

Platt moved to table.
6

•

.v.
11
/4 ,

t!r) 446
'

•

1' ts,k
IP

Vote:
Aye - Miller, Jaws
No , Plat t.
Gov. C. then voted Aye sad the motion was tabled.
Feb. 28, 1924. p. 53, 54.

4 liez.ue
.
th3.i /7,

Board discusses proposed regulation of Dr. Mills', providing that
the Board hereafter shall approve no h. &inches in states not
having a satisfactOry system of simultaneous examinations.
C.B.N. pointed out this would be in direct violation of Sec. 9, as it
is the duty of the Board to examine if the state examination is
not satisfactory.
•

•

Miller was fxrious, said the Board was all cowards; that President
Coolidge ought to be informed of conditions in the Board and
*clean it out* etc.
C.S.U. again pointed out the duty of the 7.R. bank to examine unless
the state stagnation is accepted; further; that the Board bad
declined to approve the state examination of California since
it gave up simultaneous examinations; that Berson had reported
that a simultaneous examination is practicable ani not unduly
expensive.
Feb. 28, 1924. p. 54, 55.

•

Miller offers above regulation.
C.S.H. and Platt oppose.
Vote:
Aye - Gov. C., Miller, Dawes, James
No - C.S.H., Platt
Feb. 29, 1924. p. 58.

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

. ..

Branch banks (Cont.)
Board, after long discussion, tentatively agreed on a new draft of
regulations on stala:bank branches.
C.S.N. and Platt voted for some of them, but stated that they would
vote against than when the final draft wee voted on.
C.S.R. moved to refer the draft to a special committee for report.
Passed.
C.S.H. declined to serve and Platt, Jagless and Miller were appointed.
Feb. 29, 1924. p. 58
Board took up cp.estion of referring to branch banks in annual report.
Platt offered a resolution that national banks should., unier
regulations of the Comptroller, have the sane rights as to branches
as state banks.
Miller offered a draft to be inserted in the annual r sport to the
effect that state banks should be limited to the posers now
exercised by national banks, or that national banks should be
given the powers nos being exercised by member banks, the latter
being favored by the Board.
Agreed that Sec. Mellon and Cunningham, both absent, might record
their vote.
Feb. 29, 1924. 1). 59

•

Dawes then moved to substitute a general indorsement of the McFadden
branch bank bill.
Tote:
Aye - James, Dawes
No. - Gov. C., C.S.H., Platt, Miller.
Lost, as even if Sec. Mellon and Cunningham voted Aye, it would
merely be a tie.
Tote on main motion.
Aye - Goy. c., c.s.B., putt, miller
No - Dawes, jamee
If Sec. Mellon and Cunningham are recorded No, it will be a
tie and lost.
Feb. 29, 1924. p. ao, 60.
Sec. Mellen asks to be recorded as voting Aye on Dawes motion to
opprote McFadden bill and No on Miller's motion.
March 4, 1924. p. 60

3‘*4.‘

*.44.444•-•A A•4

sk.444A4444
cle#4444 **
4
eot4
AAAftftArt yu4:oode 4,)1 ,Ct .
i4
„,dr„ 4.46104k.
fr.) r1A4
,
4
4t,
for
A. 4/

,AL.
011.6

oi
0,64A.

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

40!:;.de

Branch banks (Cents)
Board takes up the new branch bank regulations presented by
•
Miller, James, and Platt.

(1 /1"01
0
3)
A

,11.1

id;

,s;

C.S.H. pointed out that tuxler these regulaticns the Board could
not grant a teller's window in the city of location in
California as the date is not examining simultaneously.
•

•

Miller and Janes said California does examine sianaltiseously all
but the four banks having the largest umber of Venable;
that Johnson told than this at his last conference.
C.S.H. said he did not so understand it.
Miller said the new regulation would apply only to the 4 Calif.
banks.
C.S.E. said this was illegal; that if the state examinations were
not accepted the P.R. bank must examine every member bank.
Wyatt said the regulation was legal.
Miller and James disputed as to the condition that the Board would
grant applic Aims only in the place of location iath contiguous
territory as defined by the Board.
Miller wanted it to read, - as to territory tributary in a banking
sense to the parent bank.

•

C.S.N. said the regulation was vague and should be darifict; that it
might be construed much more narrowly than the area defined in
the Nov. 7 resolution, u', on the other hand, it might be
construed to embrace state wide branches.

•••

•

C.S.111. said that while he was opposed to the limited area of the
Nov. 7 resolution, as amended, it was at least specific, while
Miller's was hopelessly Tagus.
Platt favored repeal of the Nov. 7 resolution.
C.S.N. said he would vote for repeal, but thought the area defined
was in better she than Miller's sons of banking influence.
James 3aid he favored, cutting down state banks powers as to branches
to that allowed to national banks.
C.S.H. begged James te move this and have a test vote, but James
would not do it.
Miller said he would move to amend the draft by substituting his
sons of influence draft.
Mar. 7, 1924. p. 67,68,09,70.

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

Branch banks (Cont.)
Application of a, state bank in Elizabeth City, S. Carolina, to
take over and operate as a branch a bank 40 miles away.
Miller moved reference to Federal Reserve Agent for report as to
condition of parent bank and branch - :Lolly apart frcm the
Nov. 7 resolution.
0
James mat ed postponement for a meeting of full Board.
Vote:
Aye - C.S.H., Janes, anmiinghan
No - Gov. C., Miller, Platt
Lost in tie
Miller motion put.
Passed., C.S.H. voted Aye.
As this was merely an inquiry, James should not have objected,
but C.S.H. could not vote against reque-t for full Board ac tion.
March 12, 1924. p. 74
James says it is absolutely necessary to have a full vote of Board
bn all applications for branches, as otherwise the country would
think that the appointive rusubers had been "fixed.."
This mats bit terly resented by most of the appointive umbers as a
thinly disguised. charge of bad faith, or oven corruption.
March 12, 1924. p. 78.

•

Application of Pacific S.W. Savings and Trust Co. to merge a
national bank at Torrance, 13 miles frcm Los Angeles and
within the territory defined in amendment to Nov. 7 resolution.
The state bank suptd. favored. it.

)

•

Federal. Reserve Agent Perrin ald F.E. bank executive cow:Attee
reperted that the Torrance bank was in good condition, and
favored it.
The cocadttee of the Board reported:
Aye - Dawes. No - Janes.

••

•

Miller said the Pac. S.w. bank had reached the limit of safety and
had gone beyond it.
James said he should vote against it because of failure of
simultaneous exanina.tions; t1.9.4,, the clause in tbe proposed
regulations as to this he thought would soon be adopted.

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

-14-

Branch banks (Cont.)
Dawes then changed his reccmendation to 110.
Miller moved to reject because of failure of state to examine
simultaneously.
D.S.H. moved as a substitute to suspend action until a simultaneous
examination be male by the F.. bank, which the, Board
herewith orders.
C.S.H.

greed that Sec. Mellon ma Gov. C. could record their vote.

Vote szn C.S.H. substitute motion:Aye - C.S.H., Platt, Cunninghan
No - Miller, Doses, Eames
Left for record

vote of Sec. Mellon „ind Gov. C.
p. 79, 80
Mar. 18, 1924.

C.S.H. then Luovad that the F.R. Board proceed to examine simultaneously
all state member banks of California having branches, or such
of them as are not now being sinultaneously examined by the
state Superintendent, said examinations to be conducted by
Herson in the Loaner described in his. report.
C.S.H. agreed that Sec. Mellcn and Gov. C. could r3cord their vote.
Miller moved to lay on table. Defeated.
Vote in C.S.H. motion:
Aye - C S.H., Platt, Cuminghan, Dawes
.
No - Miller, James.
Gov. C. in afternoon recorded his vote as "not voting."
Debate followed on Miller's motion to disapprove.
Miller denied hz,ving said the Paz. S.W. had reached or exceeded the
limit of safety as to branches.
Said he was refarring msiely to the bank_ng situation.
Said no ct ubt bu.t that a, simultaneous e:4anination would show that
Pixcif. S.W. was in fine condition.
Vote on Miller's motion to disapprove.
Aye- Miller, Cunr_ingham, Gov. C.
James, Dews.
No Platt.
Mar. 18, 1924.

p. 81

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

-15-

Branch banks (Cont.)
Miller says such an examination would precipitate a banking crids.
p. 83

.. .

C.S.H. said Miller was merely seeking n 3=1.189 for rejection.
Mar. 18, 1924. p. 81, 83.
Perrin wires Johnson is examining simultaneously the smaller banks
with branches, but Uhat it is not practicable so to examine
the Bank of Italy or Pac. S. W. Co., but that he may so exa-ine
the Security Trust Co. and Mercantile Truat Co.
Mar. 20, 1924. p. 82
Board takes up ',raft of new regulations as to branches.
James raves adoption of report as submitted.
Miller Moves to strike out the paragraph as to contiguous
territory and to mibstitute "banking area tributary to the
parent bank."
Miller admits this would repeal the Nov. 7, 1923 resolution.
Postponed until Tuesday.
Mar. 18, 1924.

p. 82

Pact!. S. W. Savings & Trust Co. sands telegram saying that the
delay as to Torrance bank is seriously enbarrassing it.
It arpearei that no notice oftho disapproval had been sent to
Perrin or to the Pacif. S. W. Co.
The record shams disapproval becaase of failure of state to make
simultaneous examinati ens.
James did not want Board to give this reason and. wanted merely a
statement that tha Board had clisapproved it.
C.S.H. pointed out:1. Torrance is in contiguous territory as defined by Board.
F.R. Bank approved.
2. F.R. Ai:ent
3. Prima facie application should be approved.
C.S.H. said the real reason shuuld be stated.
-a
Voted, to infcmi the b.. nk in exact accordance with the record.
An absurd posit ion:The Board disapproves because of a regulaticn not then
in existence, but which the majority .hopes to pass.
.4ar. 2, 1924. p. 83, 84.

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

-16-

Branch banks (Cont.)
n with
The commit tee. has been in consultation all the afternoc
Me11 , n on the proposed new branch regulations.
Sec.
Mar. 25,1324. p. 85
•

•

Board takes up new branch regulations.
amendment as to "banking area tributary
Diacu.sed. first .4iller
to the parent bank."
The committee could not sta 'A just what Sec. Mellon favored.
Miller went to Secretary Mellon and 1:-J.ter returned, saying
Sec. Mellon wished to be recorded in favor of the following:
"The P.R. Board will restrict the establishment of branches,
agencies, or ailitioall offices by such hanks or trust
companies to the clty of location of the parent bank said
the territorial area within the state tributary to and
connected with the city of locaticn of the parent bank in
usual banking relations, excepting in instances where the
situation is such that peculiar bud substantial acnditiona
exist :a& Ing departure from the rule necessary or desirable.
Miller moved to substitute Soc. 'Iellontsdraft.
Gov. C. vi.e.s about to put the motion when Dawes, evidently
disapproving Sec. :Tellon's draft, insisted that Sec. Mellon
•
be asked to ccme in and vote.
Gov. C.and Platt objected and demand.ed a vote, as Sec. .:ellon had
recorded his vote.
Dawes rushed out of the roan saying he shculd sea Sec. Mellon
anyway and would. not ask the consent of the Board, either.
Gov. C. acain started to put the motion, but C.S.H. objected
until Dawes returned.
•
had seen Sec. Mellon, but
Dawes, meantime returned., :Aid. said he
only for a mo..uent, and that he had said he might possibly
usual
,
agree to inserting in his draft after the words '
territory having
banking relations", the words - "said
been defined in the resolution of Nov. 7, 1923, and the
amendment of Jan. 1924."
Dawes moved to substitute above words.
Vote:
Aye - Javies, Dawes nd Cunningham
No - Gov. C., C.E.H., Platt, Miller
Sec. Mellon to have right to record hie vote.

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

-17-

Branch banks (Cont.)
Vote on Miller's motion.
Aye - Gov. C., C.S.H., Platt, Miller
No - Dawes, James, Cunningham.
Sec. Mellon to have right to record his vote.
Mar. 26, 1924. p. 85, 86, 87
C.S.H. moved to substitute for the clause as to refusing
applications for branches where the state does not make
simultaneous examinations, the following:The F.R. Board will, except unuer extraordinary amergenci3s, grant
no further qpplications of state member banks for branches,
unless there has "oeen made, within one year before the
date of application, a satisfactory simultaneous examination
of the parent bank and its brandies by the F.R. Bank or by
the state authorities, nor unless the condition of the
proposed branch is found to be satisfactory upon examination
by the FedaralReserve authoritias.
Vote:
Aye - C.S.H., Platt
No - Gov. C., Dawes, Miller, James, Cunningham
Lost
On final motion to .dopt the draft of regulations as amended,
Vote : Aye - Gov. C., C.S.H., Miller, Platt
No - Dawes, James, Can-Ingham
Sec. 4friker to have right to record his vote.
"
A44.44 ' Mar. 26, 1924. p. 87, 88
C.S.H., Platt, and Dawes reserved right to explain their vote
an the record.
C.F,.H. was in a quandary as to how to vote. He felt Sec. Mellon's
substitution was, an the whole, not objectionable, as it
gave the Board the right to permit state-wide branch
banking if it saw fit; that much of the draft was not bad.
Having been voted down, C. .H. felt i t was better to vote an the
regulations as a whole, realizing that if he voted No
it would make a tie, and plunge the whole matter into
chaos again.
Even on the vote as cast, Sec. 1,ellon could defeat it by voting
No, thus making a tie, but C.S.H. believes he could
hardly be recorded against his own draft for which he has
asked to be recorded.

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

-18479

Branch banks (Cont.)
The spectacle of Dawes reishing cut of the room to induce
Sea. Mellon to vote aEainst his own draft for which he
-ed to be recorded., is enough to satisfy anyone of the
bad asit.
domination of the Board by its Ex-officio members.
Mar. 26, 192r. p. 88, 89.
. . .

Dawea tells C.S. H. that Sec. Mellon will vote so as to :aake a
tie on all the above votes.
Dawes bas C.S.H. to accept his da:11end.r.aant but C.S.E. cannot.
Mar. 26, 1924. p.90
Dawes, Gov. C. aid. Platt Oi..e into C.S.H.'s roan; C.2.H. tells
them he cannot accept Dawes an
i
Dawes begged 8.S.H. to draw so;:athing he (C.2.H.) would acce- pt.
C.S.H. agreed, saying, however, that he feared. Dawes would. not
accept it.
1
C.S.H. acc or din gly drew a new draft differing only j i ht1 y from
Dawes draft, which itself 448 an amendment tO Sec. Mellon's
draft. This was prepared prior to the meeting and was
shown to no one.
C.S.H. draft
The F.R. Board. will, as a general principle, restrict the
eetablishment of branches, agencies, or additional
offices by such banks or trust companies to the city of
location of the parent bank and. the territorial area
within tie state tributory to and connected with the city
t.e city of location of the parent bank in usual banking
relations, as said territcry has been defined in the
Board's resolution of rov. 7, 1923, excepting in instances
vhere the State Ban'..ing authorities have certified and.
the Board finds that public necessity and aivantige renders
a departure from the principle necessary or dealn.ble.
At the meeting, C.F.H. read this and threw it down on the table
fully expecting it to be voted ci ann.

•

C.S.H. said he would not agree in asivance to vote for it, but
that he hal. dram it as a basis for further di scussi on,
but that he was inclined to vote fcr it as a compromise.
C.S.H. said he made no reference to the Jan. 1, 1924, azr.endment
to the Nov. 27, 1923 resolution (defining additional
territory arcu.nd S. Francisco an" Los Angeles) as this
amendment would remain as an exception to the gen3ral
principle under the last part of his draft.

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

-19-

Branch banks (Cont.)
James, after C.S.H. read. the draft, immediately left the rocm
and in a minute cane rushing bank with 33C. Mellon, having
.
evidently t old him of C E .11. a compromise draft.
Se3. Mellon took the chair and. said. it was most advisable to
settle this queation, and that C.S.H.Is draft was a fair
compromise aid he felt strongly liould be adopted.
Miller attacked it, .44,ying it left everything wide open.
Sec. Mellon said this might be true as a. matter of voting, but
that the principles and exception laid town were fair.
Miller suggested substituting "contiguous thereto" forntributory
to and _:onnected with" etc.
assuming .,:iller wculd vote for the draft, accepted the
amendment.
Miller said, however, he should vote against it.
Vote:
Dawes, Ja.,es, Cunningham
Aye - Sec. Mellon,
No - Gov. C., Platt,Miller
Carried

Mar. 27, 1924.

p. 91, 92, 93.

Merely to complete the parliamentary record, Sec. Mellon voted
against Miller's and Jai.es' motions, thus creating a
tie and, defeating each.
Later a final vote .was taken approving the dr.:.ft of regulations
as amended, and i t was the same as the vote on C.S.H.° a
motion. liar. 27, 1924. p. 94
To sunup:
1. Dawes told C.S.H. the secretary had decidel to
vote ar:ainst his own draft of Clause 1.
2.

s i..otion and would
This wculd have defeAted
have left the resolution of Nov.? in full force
as an acting policy of the Board.

v.ft, 'Athich was adopted., makes the
C.F,.H.it dr,
principle of contiguous t3rritory merely a prima
facie rule subject to thvowar of the Board to
grant state wide permits if it so desires.

Dawes tells C.E. II. his statesmanship has saved the 3oard.
Mar. 27, 1924. p. 95
See - Dawes

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

•

Branch banks (Cont.)
C.S.H. explains his vote for the regulations on the Record;
said h3 originally accepted all but two;that he was opposed
to the zoning regulation as originally drawn; that he
accepted Sec. !,Tellonis draft as a fair nomprcruise which did
not necessarily violate Sec. 9 of the Act as he construed it;
that he was opposed to that part relating to simultaneous
ex;aminations and voted ag inst it when offered; but that
taking the regulad. one as a ,vaole, he re7arded so many of theca
as good that he decided to vote for them as a whole, reservng
the right to move to asend them in the future.
.vas at first -,rery disapnointed at vote of C.S.H., but when
Platt ,
he realized. that. 0.3.H.I5 compromise really so amerviel the
Nov. 7 resolution as to pr,..ctically repal it, he changed his
views.
;Lir. 28, 1924. p. 95, 96.
A state bank at Charlotte, 'T. Car. applied for permis:zion to
buy another state bJnk with 3 branches.
.
Gov. Seay : aid they 'sere all in fine condition.

•

Dawes and James reported adversely because of the nre regulations.
C.S.H. and Platt said only condition the bank agreed to on
admission Nas as to changing the character of its assets
t
:Ind. this was the only cuestion before the Board-.
J./nes claimed the new regulations apnliad to all banks no matter
what c. ,nolit ions they originally agreed to.

...

C.S.H. read the new regulations, which, in Section 6, stated that
the regulations as to simultaneous examinations and the
consent of the Board to new branches only applied to banks
which en entraice agreed to this condition.
C.S.H. asked James if he seriously asked the Board, in its first
decision under the new regulations, to deliberately violate
them?
All voted in favor of C.S.11.1 s position except Janes, whc voted
against it.
Wyatt said C.S.H. was right.
April 16, 1924.

p. 116, 117.

Johnson, Bank Superint endent of Cal if has confer enc e with Board..
.
April 22, 1924. p. 119.

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

-21-

Branch banks (Cont.)
Johnson says he.has Increased his examiners to 30 (old, 8) and
is now prepared to make simultaneous examinations, without
assistance of F.R. examiners, and would pay entire expense,
that he thought the banks would agree to have one simultaneous
examination by the state and one by the F.R. system.
Referred to Herson to work out details, and report to Board.
April 22, 1924. p. 119.
Sen. Glass opposes Board compromise regulations as trying to
validate the illegal resolution of Nov. 7, 1923.
175
May 31, 1924.
)
Brandeis Justice
C.S.H. and H.P.H. dine with Justice and Mrs. Brandeis. He said
President Coolidge was a very narrow, timid, cunning man,
April 23, 1924. p. 122.
of absolutely no courage.
Brock, Asst. F.R. Agent
Miller asked Board to give Assistant F.R. Agent Brock, of San
Francisco, leave of absence with full pay go to with
Mr. Robinson of Los Angeles to 'attend the meetings of the '
Reparations Commission, of which Robinson, Dawes, and Young
were unofficial members of a committee.
CO.H. objected:
1. No authority to detail an officer of a F.R. bank for such
a purpose.
2.

Congress provided against any participation in foreign
commissions without its authority, by any office of
the U.S., and that the detail of Breck would violate
the spirit of this provision.
(See reservations to the treaty of the U.S. with Germany.)

Miller suggested sending Brock but assigning some other nominal
purpose!
Gov. C. consulted with Sec. Mellon
Sec. Mellon said he did not approve, and that the cabinet also
disapproved.
Robinson then came before the Board.
Miller said we ihould do this, in spite of what Sec. Mellon said,
evidently "performing" before Robinson.
Robinson said Hoover had delegated some of his officers who were
abroad for this purpose on the understanding they would not sit
on any sub-cotmittee.
It as stated that the committee would have to pay their own expenses.

-22-

uLs
'".1041i4:44X111 aid bei.littlotti aac o
tax (9 „tie) N.;
,
-xi/
aniassze Emelt Lamit a e tem 00 .rwiaqt
0.3 t
eoruidistsas
,alf,ninakico
r7OVI
;esnowc€, *71trie via
eNi.aari ed.;
svari
sfroens:luula ono
t
•• 1.16.$A el.; •te
.Loed

Break, Asbt. F.R. Agent (Cont.)
That a pitiable foreign policy for the administrationl
Jan. 2, 1924. p. 1, 2.
C.S.H. reads rezervations to German treaty (42 statutes at
Large, p. 194.5) aid claimed that sending Brack abroad at
the experse of the F.R. System would violate the spirit of
these reservations.

fin *tuft

1,4a.
as
)0./ L sa0.1341.4e1 eslatolgata,. !„..)-LE Ea04
.vouton‘Ji/J„Lo.-.ert La,so 1,A tilt
d.Nse(
f

Miller talked for nearly an hour suue-ting a resolution of the
Board which would not be obj ctiorrable.
../rd. James said. it could be arranged in form but in
substance it would. violate the spirit of the reservations.

.
:41 e pt./aut. sisti,*
a...4011002 arib.Ct
1
Ira
'
).; •rf' .t. .. oada

.-1s.-1 a±1.& .mv1
.1.1
:tloa!
eflt1'JY

,o JOU

:szle*

knA oseco0

doze

z .VjgeS

4- Cveilt.
,

• .13.1 v4'
I'M 11— u.

aA
.1.i
,.-ecgaa 16S LW,

SISdriv-to
icg1mpo3•

trp.),t.t.k.-zaqe?
La20f11001

ngiel
,
eDirto %ft
ioele
eti e_11.1T rtzj
-

s'st

ri3

beivc

C.2.H. said the auditor and Couptroller General 41.11d surely
disallow any salary payments to Bredk while on this service.
Miller said in such event he Nould tell the auditor to go to hell!

10.

Miller characterized Sec. Mellon's opinion as a "curb stone"
opinion arid C.S.H. as a "scared school girl!"

VP14A,„
!

Millar moved as a substitute to C.S.H. motion that Gov. C. consult
the Secretary of State.
C.S.H. pointed out the discourtesy of going over Sec. :fi.ellonis
head.

bt.7801b10.14

.!sala /ud

0.1 3

Vote on C.S.H. motion:-

•
$.31'da

Aye - C.S.H., Jamas ec Cunningham
No - Miller, Gov. C.

.
V c. 4"L;

;

tf-

.rtso9,

"gr
.1.A4

CleW On*
!P :aMu
-

.scosnerr7i1O lied/ %mg 01 evAct

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

as A

7+.1.11. ....s0atebnv

k
rJ

C. .H. moved to wire 'lerrin that the Board had no ;-iuthcrity to
authorize such a detail.
A long, bitter debate followed.

:boJ0eLd0
•A
3;'!C .° /us QM
0'
sesovlucL

)4a.r..d .1.1.1 a

7.11.Agent Perrin telegraphed Board asking authority to detail
Brack to accaapany Robinson.

idl%

140

.
Q;. tilt()Oa
D`.:1 eq."- xf.0net

own levoi.)8
1:.)1
5304•Lu(L

ISIQW 064 31=09

L3 )IL

erf: .1s41 lia.,;444

Rai :I
,

Gov. C. said he believed -'card had authority to send experts
abroad.
C.S.H. agreed. if it was for a F.R. purpose.
Jan. 3, 1924. p. 1, 2, 3.
See - Miller
Strong, Gov.

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

-33-

Brock, Asst. F.R. Agent (Cont.)
C.S.H. cites Brack vote while opposing requee,t of Young an the
Dawes committee to have Gov. Strong sent abroad.
Feb. 23, 1924. p. 43.
Bredkinridge, Asst. Sec.
Glover says Breckinridge told him that McAdoo ask. Sec. Garrison
to remove the Philippine deposits frau the Riggs bank, about l millions but that Garrison declined and that
later he WAS ordered to do so, he thought, by President
Wilson, and Lhat the deposits were gradually drawn down and
.
and not added to.
Feb. 20, 1924. p. 30
.. .

British Ambassador
C.S.H. dined with Mt. rd Mrs.Chilton to meet Sir. Risme and
Lady Isabella Howard. June ., 1924. p. 178

...

•

Butler, Justice
Calls on New Years Day after cur reception was over, with Justices
Sanford and Vanievanter. We apmn-d a special bottle of old
Madeira.
Jan. 1, 1924. p. 4,

•

1
•

•

Bullard, Arthur
Dire with C.3.H. and H.P.E. to meet Egyptian 'anister and
%ladame Youaouri.
:.lay 25, 1924. p. 161

Butler, Nicholas .lurray
Looked distressed Ahen C.S.H. moved at meeting of Carnegie
Endowment for International Peace, that the Executive
Committee prepare appropriate resolutions on the death of
President Harding and President Wilson, enumerating their work
,
for the peace of the world. /4
AprilA 4?) 1924, P. 123.

•

New Ycrk Times prints an abstract of the report of Butler for
the division of intercourse and education. This report was
presented at the Carnegie meeting Last Thursday by Butler,
but was not read. Butler gave a resume of the report lasting
30 minutes, but did not refer to the League of Nations in
any way.
The abstract in the Times quoted at length stutemmts about the
League and scarcely mentioned anything else. The abstract
said public opinion had changed about the League and was now
against it, 21D1 that there was no hope for it, or words to
that effect.
It NAS

purely prepagAnda against the League

April 28, 1924. p. 125

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

-24

Butler, Nicholas Murray (Cont.)
Gov. Montague confirms C.E.H. recollection that 3utler, in his
address, never mentioned the League.
April 30, 1924. p. 127
Bruce, Senator
C.S.H. and H.P.H. dine with.
Nov. 20, 19,4.

p. 30

At the dinner the sone of Senator Bruce said, "I wish I could have
told Wilson What I thought of him."
This was said in terms of contempt.
Feb. 20, 1924. p. 33.
Senator Bruce gave out a very neutral tribute on the -Leath of
Wilui , - sore of a coy/nit attack than a tribute.
Feb. 20, 1924. p. 33, 34.

Cabinet.
Disproves sending of Brack, Asst. F.R. Atent, by the F.R. Board
to help Robinson in Dawes Commission.
Jan. 21 1924. p. 1
Agrees Arith Sec. Mellon that Gov. Strong should not he permitted
to go Libroad to consult with Young, of Dawes Commission.
Feb. 23, 1924. p. 43
Caetani, Prince
The Italian Minister, Prince Caetani, in talking about the suicide
cf Margaret Harding, spoke of her death with great regret;
said she would have been just as happy with many other men,
as with HaWkes; that Awerican girls thought more with their
wombs than oath their intellects.
Feb. 25, 1914. p. 51, 52.
Spoke of President Wilson; said he did not wish to criticize the
dead; that Wilson did not understand the Italian people;
that he was sorely deceived as to Fiume; that Fiume mas
given to Italy by the treaty with Jugoslavia; that Jugoslavia
got a post only four or five miles from Fiume; that 2un,lary
was wore entitled to Fiume than was Jugoslavia.
Feb. 2b, 1924. p. 31, 32.

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

-25-

Caetani, Prince (Cont.)
He also said that Italy had consented to Gov. Harding being
maae financial dictator in Hungary; that Harding knew all
about the matter; that the reason Why a formal public tender
to Harding had not been made was because certain details
suggested by Harding had not yet been completely arranged.
Feb. 2..), 1924. p. 52
The more C.S.H. sees of Caetani the lass he likes him. While
charming and Democratic on the surface, C.S.H. believes him
to beavery cynical Aristocrat, ve4y much like the first
Russian Ambassador Buhkmateff.
Feb. 24 1924. p. 62, b3.
p. 141, 142.
Capital National Bank
See - Mitchell, John
Capita Securities Co. p. 141, 142
See - Mitchell, John
Capital Trust Co. p. 195
See - Mitchell, John
Carnegie Endowment for World Peace
C.C.H. attends annual meeting of trustees. During entire meeting,
although much was said about peace in the astract, not a
wcrd was said of the League of Nations, Limitation of
Armaments, the World Court, or the deaths of President Harding
or President Wilscn.
C.S.H. was amazed at this, and just before adjournment moved that
the Exlcutive Cosuittee be instructed to prepare appropriate
resolutions on the deaths of President Harding and of
President Wilson, referring to their work for World Peace
and that a copy be sent to the respective fa;Ulies.
There was quite an interval of silence, Nicholas Aurray Butler
and Robert Lansing appeared to C.S.H. as rather stunned
at the motion; finally James Brown Scott explained the motion
to Judge Grtly, the presiding officer, who was very deaf, and
after another interval of silence, Scott very feebly seconded
C.S.H.Is motion, and it was passed very quietly,
fancying that a lare number did not vote at all.
April 25, 1924. p. 122, 123.
The N.Y. Times publishes what purported to be the report of
Nicholas Burray Butler of th! Intercourse and Education
Division; it was really propaganda against the League of.
Nations saying there had been a great change in public
opinIon so that now it was inipossible, etc.

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

-26-

Carnegie Endowment for World Peace (Cont.)
Butler gave a 30 minute resume of his report at our meeting,
but never alluded to the League of Nations.
His report, however, did. contain this propaganda, but was not
read at the meeting.
Gov. Montacue told C.S.H. that he thcught most of the trustees
were not friendly to the League, and that Scott, although
aleiming to favor a world court, 70.8 opposed to this one.
April 30, 1924. p. 127
C.S.H. tells Mrs. Wilson about the Carnecie meeting.
May 4, 1924. p. 128
Case, Deputy Governor, N. Y.
Gov. Crissinger tells O.S.H. that Case was opposed. to lowering
New Yorkra,te to 4
12.
.
C.E..E. says this was not mentioned at the Board meeting; that
was stated there that Case merely wanted the reduction
postponed for a few days.
April 51 1924. p. 129.
Gov. base explains reasons for lowering N.Y. di:count rate
to 4%:Brings F.R. rate into harmony with customers rates; will
not cause inflation; a director of Bank of England
told N.Y. directors that Great Britain was overburdened with credit demands which it could not
handle; an:i that P.R. rates should. go down and Great
Britain up.
iy 7, 1924. p. 130
Says F.R. System needs 300 millions more of earninv assets to
make its dividends and expenses; that such an amount
can not be secured for the money relftsed by F.R.
banks in open market purchases will be used to pay
off FL bank rediscounts; he _rimitted that when the
rediscounts were all paid off, then the earning assets
wculd be ircreased, he said that to pour ..50 millions
and, later, more intc the ixtrket would entail conpet
ition
with member banks in buying acceptances and Gov.
securities, and would interfere with Treasury
operations.
May 7 1924. p. 131, 132
C.S.E. believes Gov. Case's ob,cticns to enlarge
d open market
operations is founded upon aversion to any coupat
ition
with member banks, or any interferere with Treasu
ry
placing of ce-rtificates, and,
suspects, fear of
disturbance of the stock market.
May?, 1924. p. 133

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

-27
-

Cassell, Prof.
Gov. Strong thinks ultimately prices will rise in
fall in Great Britain, thus reaching a parity of inflation.
This is also Cassell's wish, but he would like inflation
deliberately produced. in the U.S.
t1e Gov. Stztng thinks
it will calla naturally.
:day 22, 1924. p. 133
Charlotte, North Carolina.
See - Branches

p. 116

Chase, Dr. P. 191, 194
See - University of North Carolina
Chilton, Henry Getty
Mr. and Mr.;. Chilton attend high tea given by H.P.H. to the
Egyptian Minister and Aadame Yousry.
May 23, 1924. p. 161
C.S.H. dines with Mr. and ire. Chilton to meet the British
Ambassador, Sir Esma Howard and Lady Isabella Howard.
June 4.), 1924. p. 178
Citizens First National Bank, Albany, Georgia
This 'tank closed sometime ago and. the stockholders, through
Shernwell, its president, are trying to reorganize it.
Canptroller Dawes is very anxious to have this done, and
claims that the Federal Reserva bank, through lack of
cooper :on, is responsible for its closing.
Their last suc_esti. on was that the F.E. bank should release all
of its excess collateral ($213,000) over the amount owed it
by the bank ($217,000) and, further,
purchase some
$118,000 of very ioubtful or worth1368 paper fran the
bank for $75000, later reduced to $50,000, the bank to be
released from all liability, the notes purchased to be
indorsed by the old stockholders.
Some months ago,
sent Herson to Atlanta and. he reported
that the P.R. bank had one to the very limit in its efforts
to help open the bank.
About a month ago, the Board. called a conference at Walington
at which there were present, Gov. Wellborn, P.R. Agent
McCord, Shame11 and Captain Fletcher, the National Dank
Examiner.
Fletcher said. the $118,000 paper was practically ,vorthless.
After a long conference Showell made the .tbove propoziticn, saying
that if accepted, the bank could. reopen, as new stockholders

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

-28-

Citizens First National Bank, Albany, Georgia. (Cont.)
..vould come in and put up $150,000 of nex capital.
The Feder al Reserve Bank turned. zi

this proposition.

It agreed, however, subject to approval of its Counsel, to
surrender all but $100,000 of the excess collateral and to
buy for $50,000 the $118,000 of worthliss paper provided
the directors and all of the new stockholders would indorse i t.
Dawes said this was a minor difference, in a letter to C.S.H. or
Crissineer, and urged to Board. to urge the F.R. Bank to
accept the fir t proposition.
C.S.H. wrote Dawes that, assuming that the F.R. bank could.
lawfully enter into such an arrangement, which he aid not
decides the matter was one purely of banking ju.dgment o which
the Board must leave to the Federal Reserve bank to decide
uninfluenced by it.
It was agreed at the Conference that the F.R. bank sLculd take
no action without the express approval of its counsel.
ay. C. later came to C.S.H. with a d.r.ft of letter to the F.R.
bank urging it to accept the proposition, and its languae
Was tantamount to an order.
C.S.H. objected. saying that if a question of banking judgment
we had no rip-ht to interfere, and if a question of legal
power, it was for the bank and its counsel to determine
this, at least in the first instance.
Gov. C. said he would not send. the letter.
May 16, 1924. p. 143, 144, 145.
Clarkson, Judge
C.S.H. meets Judge Clarkson of the Supreme Court of North
at dinner at Are. Daniels. He is a trustee of
C
the University of North Carolina and warmly congratulated
C.S.H. cn his address.
June 11, 1924. p. 192
Clayton Act
Hearing before Boar.!. on matter of Welch serving as director of
Old. Colony Trust Co. end Nat. Tin:on Bark.
Mar 20, 1924. p. 82
Clearing system, F.R.
C.S.H. thinks the opposition of legislature of Na. th Carolina
to the clearing system was the reason the University of
North Carolina cila not ills him an honorary degree.
June 11, 1924. p. 191

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

Comraitte,e on Economy and. Efficiency
C.S.H. moves to discharge the comiAttee frcm the duty of mal.ing
recausen:.at ions based on its examina.tions And. to transfer
this function to the committee on salaries and. expenditures.
Miller bitterly opposes.
C.S.H. said the commit tee positively reftises to mak) recommend.atim
and that he wanted action.
C.S.H. cited the vote of the Board months ago directing the
committee and. Stewart to report as to the F.71. agents monthly
reports, which lies sleeping in the coraraittee.
Miller said. the cormiittee could not and would not report.
C.5.11. said that is why he made his motion.
Finally C.S.H. moved, - suspending his first motion, - to
reconsider the adverse report on the CunninkLham resolution,
as to an investigation by committee on salaries and. expergiitures.
Miller said. he heartily vproved the Cunningham resolution if it
directed instead of merely authorizing the cctaittee to act.
The Board then voted to reconsider and Miller alone voted T.Tot
Jan. 17, 192-i. p. 6, 7.
Comnattee on Salaries and expenditures.
Cunningham introduced a resolution that the Cothait tee report on
the number of officers and salaries of F.R. banks and branches,
with a view to finding 41.ether economies can not be effected,
with authority to employ experts, etc.
Jan. 14, 1924. p. 5
C.S.H. moved an amen:latent that no expenditures of money be
authorized except by dir ect vote of the Board. Passed.
Jan. 14, 1924. p. 5
Miller said he gas in sympathy with the resolution as amended.
and then proveeded bitterly to assail it. He said he
originally favored it when moved by C.S.H. some years ago.
.C.S.H. strongly favored the resolution with his amendment.
Vote:
•
Aye - C.S.H., Cunningham
No - Gov. C., Platt
Not voting, Miller James
Lost
Jan. 14, 1924.
p. b, 6,
See supra- Commit tea on ec onomy and eff ic iency.

-29

Committe'3 on Economy and Efficiency
raal.ing
C.S.H. moves to discharge the coralAttee from the duty of
And to transfer
ions ,
rec craseni at ions based on its examinat
this function to the comr2.ittee on salaries and Ixpenditures.
•
Miller bitterly opposes.
C.S.H. said the commit tee positively refises to mak) recomr,lendatim
and that he wanted action.
C.S.H. cited the vote of the Board months ago directing the
ccmmit tee and Stewart to report as to the F.R. agents monthly
reports, which lies sleeping in the comLittes.
Millar said. the cora.ittee could not and would not report.
C. .H. said. that is why he made his motion.
Finally C.S.H. moved, - suspending his first Lotion, - to
reconsider the clivarse report on the Cunl.inham resolution,
as to an inv?..Aigation by committee on salaries and. expenditures.
Miller said he h3a.rtily Approved the Cunningham resolution if it
directed. instead of merely authorizing the caimittee to act.
The Board then voted to reconsider and Miller alone voted T.Tot
Jan. 17, l92-1. p. 6, 7.
Committee on Salaries and expenditures.
airmingham introduced, a resolution that the Codr.it tee report on
the number of officers and salaries of F.R. banks and branches,
with a view to finding ,thether economies can not be effectod.,
with authority to employ experts, etc.
Jan. 14, 1924. p. 5
C.S.H. moved an amerriaant tha t no expenditures of money be
authorized except by dir ect vote of the Board. Passed.
Jan. 14, 1924. p. 5
Miller said he'has in sympathy mith the resolution as amended
and then proveedsd bitterly to assail it. He said he
originally favored it when moved by C.0..H. some years ago.
C.S.H. strongly favored th3 resolution with his amendment.
Vote:
Cunr.inglum
Aye C., Platt
No - Gov.
Not voting, Miller James
Lost
6,
p.
Jan. 141 1924.
and 3ff ic lency.
See supra- Com.it tee on economy

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

-30-

Committee, Special
Platt, James, ani Miller ar.pcinted to report draft of new
regulations for branch banks.
Feb. 29, 1924. 158, 159.
Board takes up report of special co11:Litte3.
Mar. 7, 1924. p. 67.
Competition with member banks.
Gov. Case fe6.rs extended open market purchases will result in
competit ion with memb3r banks in purchase of Govt. securities
May 7, 192-1-. p. 131, 132.
Comptroller of the Currency.
Daltc.is
See
Conferences, Governors
Discount rate:- Open market operations.
May 7, 1924.

p. 129, 130, 131, 132, 133
140.

See - (Case
(Dawes
(Discount rates
(Harding, Gov.
(Open market op rations
Confirmation
Millar confirmed by Senate for new term of 10 years.
.
May 28 (?) 1924. p. 167, 175, 176.
Cooks, State Department
Advises C.S.H. that Federal Reserve Board outranks all Assistant
Secretaries, whither 1st, 2nd or 3rd.
Jan. 24, 1924. p. 7.
Coolidge, President
Replie,:, to Senate Resolution calling for Denby's resignation to
This is true but thereby
effect that that is his business.
he accepts responsibility for retaining Denby.
p. 25.
Feb. 15, 192 4.
C.S.H. thinks Sec. Aellon consulted President Coolidge before
disapproving sending Brock and Gov. Strong abroad to Dawes
Comidssion.
Feb. 23, 1924. p. 43
Miller says President Coolidge ought to be informed. as to the
envisions in the Board. so he can "clean it out."
Feb. 28, 192i. p. ).)

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

Coolidge, President (Cont.)
Justice Brandeis says Coolidge is a very narrow, timid
, cunning
man, of absolutely no courage.
April 23, 1924. p. 122.
C.S.H. and H.P.H. dine at White House with President
and Mrs. Coolidge,
at a dinner in honor of Speaker and Mrs. Gillette.
C.S.H. took
out Mrs. Pierce, wife of the Clergyman of President
Coolidge's
church in Washington. April 24, 1924. p. 123
President Coolidge redesignates Crissinger as Gover
nor for one year
from May 1, 1924.
May 5; 1924. p. 130.
President Coolidge nominates LT. Miller for 10
year term beginning
Aug. 10, 1924.
May 17, 1924. p. 147
Sec. Weeks told K.P.H. At dinner of Argentine Ambas
sador that
President Coolidge When assaulted always Urree
d the other cheek;
that the other day, in speaking of Lodge's vote
for the bonus
bill over Coolidge's veto, he asked Sec. Weeks
with innocence
of a child, "Why does Lodge act in this way?"
May 26, 1924. p. 166, 167.
Cosmos Club
C.S.H. elected Vice President of Cosmos Club over
William Bruce King
by a' vote of 176 to 120. Jan. 14, 1924. 16
5
Cotton, Joseph
Gilbert says, McAdoo's partner, is identified
with Wall St.
May 25, 1924. 161
Court, World
Gov. Montague says James Brown Scott is for a
World Court, but
against the one proposed by Presidents Hardi
ng and Coolidge.
April 28, 1924. p. 127
Court injunction
C.S.H. warns Board homey apply for an injun
ction if the Board
declines to consider applications for branc
hes from statesnot
making simultaneous examinations, and,
at smae time, refuses to
examine mach banks itself or Uanyugh the F.B.
bank.
Feb. 25, 1924. p. 50
Criesinger, Gov.
Favors recommending to Congress that natio
nal banks be given all
privileges as to branches now accorded
state banks, under
reasonable restrictions; said that he
wuuld try to get Miller to
agree to this and Chen he, Platt,Miller
and C.S.H. could put it
through, leaving the minority to file adiss
enting report, if they
saw fit.
lib. 21, 1924, p. 34, 35.

-32-

trfoO) 3dsI1a.1cl
aloW) sy,sc stsbnieta eol/apl,
4 wevis..1 y,tev a al litik
.03.s•wor: on N; Le So Loads\ 'to e nam •

Crissinger, Gov. (Cott.)
Opposes i..Ap_lication of Eastern Banking ,sid Trust
Company of
Newburn, North Carolina, because state is not
?salting
simultaneous examinations, although the cendition
of assent
at' Board to branches was never imposed on
it.
Feb. 23, 1924. p. 48

.q
isi1)110°C

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

Iott;n

trial .E.i?..;.;
ca
oulot.1 *SLAV
!
tag Itis.bliwtc 6.1
slrv.).et rri isnritat a $s
1.eAseqt1.10
dititak.
1
lc racoate:".. e:i4 to el.tu ,egoisPi *.e111 4110
sto•wri
IA
,41.s In( .
E.41

din0 101 nOrileVeD
.0CS

mewl.i.84t1.0
.

grilnaloci arzeI
Slf

Claims that Federal Reserve banks can not make
a satisfactory
simultaneous exauinati one
Feb. 23, 1924. p. 48) 33.

H10444:*14441401 0Abli003

se ,e *N1

.01Wi

10M moll

Votes to lay on table C.S.H.Is motion that Her son's
report be
accepted and that simultaneous exaninaticns be
ordered. by
Board of all state member banks with
branches.

se.C.L.X .-1(1 ??.s$rittswri sivb113 Jattleesci
.toGel ,)1 4.riA
v04
#

Feb. 28, 1924.

1)1°4
16.-latt
IsaZ %caseload:tit &al Zaerti
Iltrasas.Clea* elb1ioo0 ,I1setteel5
;21.sedv larizo ert$ beam *it
s.t3 Ntr13
synod efil 1°1 e/ov toesboI,lo 3riliseqs [4,1 ,lot lea°
,Oev soehtilooD it.vo .1110
eoaeteoruil dj.tw sXseg .Dee .belLsa elf
i LlIdo a 3o
sshoJ seot
"'Now alq..4 i1
xsk
.r8I ,u11 .a

Appoints :liner, James, and. Platt a special
committee to present
draft of regulations for branches.
Feb. 29, 1924. p.58 , 59.
Votes aainst general indorsiment of the :ileFadden
branch bank
bill offered by Dames as a substitute for
;Ailleris inction.
Feb. 29, 1924. p. 54

tioavo
F1r'-t

own& czslLSZW no.tvo 751:13 somiieD
t: 4

ILO Litt*

isoff be*oe.r.e
.OSI OI 811 to e.t.ov a ltd
rfcresol,
svas$1.0(111C,
.

otar-Lect v‘ooltkolA

•
\

.#4.:el ids voi

ttsmot.:

C.S.H. thinks this is - sound ruling.
5, 1924.

riol*otust.
-z1
iirriaTt
sus-ail:Jet

cvd
IsAtt
ritv1-, u slasid :Aro:
:
sesellvIlq
eZbIs belinrione won •aciormid 1,!' as
teLau ouLasid
;a7101,1il*el Iciaaosset
,
$em ozvi. 'arra' ad latio bLisAt
J 1tt;
Dioait1 03,, etiovA
1.11e let11114$$461.1
J! 4;J(4 zLuots
elft o: t,.11-tniatm odl ...11111hit
antSns, t
'testi 11
.$11 Ifts
.441
.q
.as

p. 63.

Totes in favor of draft of completed
report to Corgress.
Mar. 7, 1324. p. 60

err, eitsti
"
• .ri#.
a.•*iiig •

,itA412

Votes for 'Millar! s draft offered as a motion
that either state
banks should be restricted to sane privilege
s as national
banks, or national banks should be riven
the powers now
being exercised by member banks, - the latter
being preferred..
Feb. 29, 1924. p. 59.
Gov. C. rules that henceforth no vote of
a :.43..,br of the Board vh o
is actually in Washington shall be
recorded, unless he is
present at the meeting.

ass8....fc2oir. .vcoi)
4' .) • attr.e. .ograst else
41.4 ,II.:rof) blare* 4, V)
ia
r$steb.tselc d tis14,01:7, sir est: taa!ap
!
.egi/10t30 bait
;•!cfA.
,
.q .441! ,t3:
.IrtaoE t:13 1 iloJ. *afuttril co' /It v..!
eriol$a*J.i,-4pi
3onsists$t swift
e.•
ri
a is)
te,
a/ sec.flel tent.• sang
k.
a
.atzsed
44n .e.eqi
Ca .%;.:

p. 53, 34.

41D

Votes .:gainzt postponing for a meeting of
the full Board the
application of a bank in Elisabeth City,
South Carolina, to
take over a bank as a branch.
Mar. 12, 1924. p. 74
Voted for motion that F.R. 4V-_ent b3
instructed to reDort on the
condition of the parent bank and. propos3d
branch.
Mar. 12, 1924. p. 74

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

-33-

Crissingsr, Gov. (Cont.)
Gov. C. has been a failure as presiding offic3r of Board; the new
members distrust him because of his changed attitude on
branch banks, - certainly not to his discredit; he is unable,
however, to hold the meetings in hand, and a change s: ould be
'Lade.
Mar. 12, 1924. p. 75.
Gov. C. allows the meetings to drag on at great length and cannot
turn off business expeditiously.
Mat'. 12, 1924. p. 76
Says he has reduced to writing Jauesi statement that a full vote on
all questions of branches is necessary, for otherwise the
country will think that the ppointive meanbers hAve been "fixed."
Mar. 14, 192A. p. 78
Announces that he would not have voted on C. --LI. motion for an
immedi te simultraiecus examination by the F.R. Board, through
Herson, of all state member banks with branches. The motion passed
Mar. 18, 1924. p. 80
Votes for iilleris motion rejecting the Torrance bank appli,lation of
Paz. S. W. Savings and Trua Co. because the state was not making
Bina taneous examinat ions.
Mar. 18, 1924. p. 81
Objects to recording of Sec. Mellonis vote on proposed araft of
regulation ott state bank branches, ..vhich draft 630. Mellon had
prepared and for which he desired to be recorded.
Mar. 26, 1924. p. 86
Votes agptinst Dames motion, - to which he said Sec. :Anon inti:nated
he might agree, - to insert in Miller's draft of regulations
"said territory having been defined in the resolution of
Nov. 71 1923 and the szsenthaent cf Jan. 1924."
9. 87
Mar. 26, 1924.
Votes for Miller's motion ...hich 'Miller said. Sec. Mellon favored.
Mar. 26, 194. p. 87
Votes against C.S.H.Is notion restricting entertaining of branch
applications unless within one year there has been a simultaneous
examination made by the state authorities of by the Federal
Reserve Board or Federal Reserve bank,
Mar. 26, 1924. p. 88
Votes for final adoption of the branch regulations.
record vote. Mar. 26, 1924. p. 88

Sc. Mellon to

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

Crissinger, Gov. (Cont.)
Tells C.S.H. that Dawes and his chief examiner Pole has had a long
conference with Sec. Mellon ting with him the minutes of
today's meeting, says Dawes had no right to do this.
Mar. 26, 1924. P. 90
C.S.H. tolls Gov. C., Dawes and Platt he cannot accept Dawegl aL.endrnent
but will draw a dr ft he can accept.
Mar. 27, 1924. p. 91
Votes against C.3.H.'s co-promise dr_Xt, to which Sac. .dallon agreed
and which Nas finally passed, only
Platt, and Gov. C.
voting agAnst it.
Mar. 27, 1924. p. 93.
C.S.H. advises Sen. Thout to sea Gov. C. as to the silver dollars
exported for benefit of banks in the East.
Feb. 26, 1924. p. 104
Votes in favor of C.S.H. motion modifying proposed letter on
application of a member bank at Charlotte, North Carolina, for
a branch, - to effect that the only question is as to the
condi.tion of the bank LAnd. proposed branch, as the bank nsver
agreed or .as ‘.2.aked to agree that consent of Board urust be had
as to branches.
April 16, 1924. p. 117
Denies
statement (fran Herson) that only one complete examination per year of national banks was nec 3:3Sdry ZVI that
Coamtroller was to r3cct—end a change in the Law so as to
reggire only one examination, but more in discretion of the
Comptroller. April 22, 1924. p. 120
Returning frcm New York meeting Ls.ye all the directors of the F.R.
Bank of New York Ranted to reduce rates to * .
)
4
April 26, 1924.p.125.
Tells Board that Gov. Case opposed the reduction.
C.S.H. says it was merely stated at Board meeting that Gov.
Casa
merely wanted it postponed for a few days.
April 5, 1924. p. 129
Redesigusted as Governor for one year fran May 1, 1924.
May 5, 1924. p. 130.
At Governors' Conference, favors
general reduction of rates at other
F.R. banks. May 7, 1924. p. 131

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

-35-

Crissin er, Gov. (Cont.)
per cgry for his
Board considers action of Gov. C. in charging $5.00
two years ago, in connection with
reports furnished F.R. banks,
Dawes plan of charging $10.
May 7, 1924.p. 141
bank of
Drafts letter requesting and practically ordering F.R.
ent with citizens 1st National of
Atlanta to put througi settlem
Albany, Georgia.
C.S.H. protests ad

G07.

C. agrees not to semi it.
May 16, 1924. p. 145

-earnings
Denies that F.R. banks are under any obligation to make
cperaticns if the effect of putting mcney
through open market
nds are
into the market will disturb it; says fact that divide
cumulative shows this.
May 20, 1924. p. 147
the Board
Gov. C. reads letter frcm :iIcFa.dden asking for a vote of
branch bank bill.
on the :41cFaiden
bill
(At this time McFaJ.dens cccarrd.ttee hai already reported his
to the H.R.)
Votes fa' Curnine,harn resolution favoring the McFadden bill.
May 26, 1924. p. 163
Explains his vote, - does not approve Sec. 9 of the :Acradden bill
.
but voted for the resolution in order to help national banks!
May 26, 1924. p. 163
Objects to ilaier Secretary Winston's requ.e.,t that, as representing
the 'Sec. of the Treasury, he should.'01 ccunted for purpose of'
axiking a Luorum of F.R. Board, and. rules adversely.
June 12, 1924. p. 188
Cunningham, Edward H.
Votes for C.S.H. motion that all reference to future intention cf
the Board to publish separate deposit and rte razervez be
stricken from the annual report.
1921. p. 62
Mar.
Then Cunningham chanEed his mind. and said he wanted separAte reserves.
Then he chancred a4nan.i said he favored. Platt's motion to af2ect
that a clause be inserted. that the reserves should be
separated. Mar. 5, 1924. p. 62
C.3.H. and Cunriinghamt s views, that all reference he excluded, were
finally adopted.. Mir. b, 1924. p. 63

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

46
-

Cunningham, Edward II. (Cont.)
Cunningham records his vote in favor of Da,wes motion and agains
t
Miller's motion as to the lacradden bill. (see p. 59, Diu.ry), as
did. also Sec. ',Zenon; both therefore failed by a tie vote.
Mar. 6, 1924. p. 64
On motion to order annual report as agreed upon printed and signed
by Gov. C., Cunningham talked in a rambling manner saying
he
supposed the report was all right, but that it d.ii not give
a
full report of the Board.' oper ti cns
.
It was pointed out that the appendices contained everything, and
that the report was merely editorial.
Mar. 7, 1924. p. 64
Miller reproved. Cunningham for not having presmted
a draft of what
he wanted. to go into the report on agriculture, for which
h3
asked. weeks ago.
Curningham admit ted ti- at he hi forgot ten all all c:rut it.
.
Miller suggested. that, if not satisfied, Cunningham should file
a
minority report.
C.S.H. a.sketi Cunningham if he would not renew
motion male the
other day to strike ksut parts of the report and a vote
could. be
had.. on it, 'out Cunninghaa refused.
Mar. 7, 1924. p. 65
Voted. with 1181198 not to accept and print till report.
Mar. 7, 1924. p. 65
Said. he would not file a. minority report.
Mar. 7, 1924.

p. 66

Cunningham is a mixture of shrewdness, densanes.:;, and
politics.
During the debate reference was al:.de to the propos
ed reference
to the McFadden bill, Dawes' motion, defeated
by a tie caussd
by tee ord of Cunningham'a and Sec.
s vote.
Cunningham said. he knew nothing about this, althou
gh only yesterday
he recorded his vote against it!
He evidently fears to sign any report Lull wants
to curry fvor with
the political farmers!
A ,_reat mistake, - appointing him on the
Board.
Mar. 7, 1924. p. 66

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

-37-

Cunningham, Edward H. (Conte)
If Gov. C. is not redesignated C.S.H. does not kno': Nho will be, clearly Cunningham is not fit.
Mar. 12, 1924. p. 76
Voter; for C.S.H. substitute motion that action on application of
Pac. S. W. Savings & Trust Co. for Torrance Bank be postponed
until a simultaneous exazination be made by Board, which is
hereby ordered.
Aar. 18, 1924. p. 80.
Votes for C.S.H. motion that Board exal.ine simultaneously all state
member banks with branches which are not being so examined by the
state banking althorities.
Aar. 18, 1924. p. 80
Votes for Miller's motion to reject Torrance application because
state sae not examining simultaneously.
Mar. 16, 1924. p. 81.
Votes for Dawes motion to amend the mction of Miller as to branch
banks in proposed regulations by inserting a reference to
contiguous territory as defined in Jan. 1924 amen&lent to
Nov. 7, 1923 resolution. Lost.
Aar. 26,1924. p. 87.
Voted 2.gainst main motion of Miller which Miller said Sec. Mellon
would acc- pt.
Mar. 26, 1924. p. 87.
I
Voted against C.S.H. motion that application for branches, except in
extraordinary contingencies, will not be entertained unless a
satisfactory simultaneous exxlination has be:m=1de Athin 1
year by the Federal Reserve or by the state authorities, etc.
Mar. 26, 1924. p. 88
Voted against draft of ref
:
Illations as finally amended.
Mar. 261 1924. p. 88
(Sec.::ellon later defeated the irlt by recording his vote, NV)
Voted for the compromise draft drawn by C.S.H. ath al
cproved by Sec.Aellon
Mar. 27, 1924. p. 93
Voted for regulations as above amended.
Mar. 27, 1924.

p. 94

Complains of leaks in Board on subject of branch banks, referring
evidently to Platt's tA.ks with representative of N.Y. Journal
of Commerce and Ca=1. Bulletin.
•
27, 1924. p. 94.

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

Cunningham, Edward H. (Cont )
bank rates should be reduced.
Believes F.
May 7, 1924.

P. 1,!.1

Says it will eause trouble if Board suggested control of
speculative activities in the future, in discussing open
market operations.
May 21, 1924. p. 1t0.
Moves a resolution (evidently not prepared by him) that Board favored
passage of tha McFadden branch bank bill. Votes for it.
Me186, 1924. p. 164, 165.
Votes for C.S.H. resolution condemning F.R. Bank of Cleveland for
renting share of i to bank to National Republian CamLittee for
t'a Convention.
May 29, 1924. p . 173
Cunningham and Miller, the Minneapolis coittes, directed to report
on Mitchell for F.2. kent at F.R. Bank of Minneapolis, - to
interview Mitchell arid ascertain whether he vvuld accept if
tendered the office, but with no authcrity to tender it.
.
June b, 1924. p. 179
Reported an intervie / with Mitchell in 1;. Y.; that i„itchell was
completely wiped out; that just before he qualified for
F.R. Boari he sold all his stock in :he Capital Trust Company
to his brother, etc. etc.; that he acted as an upright,
honorable man, etc. etc.
June 17, 192'. p. 194, 195, 196
See- Mitchell
Agrees with C.S.H. that the proposed rtes of F.R. Bank of Philadelphia
should not be approved, because it differenti,ted 7it,eilinst 9
,
months farmers paper in fitvor of shorter ,i,aturities.
June 17, 1924. p. 196, 197.
Curtiss, Feaeral ReLerve Agent, Bo:3ton
Tells C.2.H. over telephone tKat Aargaret :Ihrding shot herself.
Jan. 28, 1924. p. 9
Says Feral Reserve Bank will not follow New Yoek and reduce di accunt
rates to 4% for the prasmt, but executive commLt tee has been
authorized to do 60 in its discretion.
April 30, 1924. p. 127

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

-39-

-D-

7aniels, Josephus
ls at Hamilton Hotel;
Baker and Redfield have conference with Danie
Senator La:Follette
aaid that Daniels had prepared. a latter to
vollanteer
on t..:3 Teapot Dome leases; 'hat Daniels elould not
be lad to do
to testify before the Walsh Committee, but would
t
so if asked; that Daniels protested to Sec. Lane agains
tory
confirming a patent granted by Lath Board in terri
by the Navy)
re erved by the Government (not however controlled
finally
that Daniels went to Attorney Gen!ral Gregory, and
not to approve
they both went to President Wilson, who wrote Lane
for 4 or 5
it before consulting with him; that the matter rested
ve it just
years; that Daniels heard, that Lane was going to appro
n who wrote
before 13aving office; that a4n they went to Wilso
that Lane
a si:ailar letter to Lane; that Damiels told them
reserve after
repeatedly urged him to lease the Teapot Dane
if the :mg:Ai:tee
:
Ccnt ress had put it in charge of the Navy; that
summoned hiLa he should tell the whole truth.
.Zeb. 5, 1924. p. 16, 17.
Daniels at Raldgh, North Carolina;
C.S.H. stays.with Ir. and.
of North
delivered the comencerment address at University
Carolina, Chapel Hill.
loyalty to McAdoo,
Daniels told. C.S.H. that, were it not for his
him for ?resident.
North Carolina Nculd have declared for
Daniels vets away on occasion of
South Carolina.

s vial t, speaking in

v where he met Judge.
:Irs. Daniels gave him a dinner in the 3ventn
Broom,
Cl'erkson of the Supre...e Court, Ex-Judge Bibs, Mr.
and. others.
formerly of the Federal Advisory Council,
June 11, 1924. p. 191, 192

Davis, John 1.
Mrs. aexl „Ira. Davis lunched with us.
.ent.
Talked very frankly of his chance for nomination as Presid
decidecily
Said. he h.d told his West Virginia friende that he most
under
would not enter the lists as a professed candidate; that
ed units. the
West Virginia laws delegates can not be pledg
candidate files his approval.
but that
Sail that he was not the personal counsel of J. P. :,:org:n,
his firm handled much of their banking and fInan al questions.

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

Davis, John W. (Cont.)
He frankly said ha could. be nominated only as a compromise candidate;
that he was not seeking it, ezid that, if nominated he ,culd
accept cnly as a public duty.
He said that, during the war, Doheny wanted. a passport to Fo abroad,
it the State Department wuuld not give it, as it suspected he
wished to =broil the Peace Conference at Paris in the .oxican
oil controversies; that finally he satisfied the State Dept. that
he would not attempt this and. a passport was given to him and to
his attorney; that he sailed from Halifax and on the day of the
sailing gave out n interview that he vas goiag abroad. for this
very purpose; that under Secretary Polk cabltd. him to take up
his passport and to give him one merely authori -ing him to return
tothe U.S. at once; that he wired all the Consuls in Great Britain
not to vise& his passport, but to take it up; that one day Doheny
called on him to have his passport vise6d; that he told him his
instru.ctions; that Duheny as livid with rage and denied ziving
oat the interview; that he told him that any protest he cared to
make .would be cabled. to the State Department; that Doheny asked
him to write down his protest, but he declined and bast he could
have his passport for a few days for ilentificaticn purpos.es, and
if he brought in a prote ;t he 'vould cable it; that later he brought
in 4 protest ant he cabled it.
Davis :;aid that, accordin, to his recollection, Dokteney at QC
sailed back 1,0 the U.S., but that Polk told hiri, the 'other day
that Doheny was finally allowed to have his passport viseed,
having given asurance that he would not try to mix up with the
P346 Conference; that he was going to find out wh ether what
Polk said, was correct.
Davis also said. he was asked .to reFresent Doheny in the Congres..icnki:
inve.Aigation, but declined because of. other professional
engagements and :.lartin Littlefield was retained.
Davis was very severe on the Roosevelt boys; said. that Archie did
not voluntarily go before the Walsh Committee; tib. t Archie wrote
Theodore a letter about his suspicions of Sinclair, and that,
York;
while the letter was en route, Theodore went to him in
.ry to several
,
.
that the letter Ass shown by Theodore' a secret,..
people anl finally was given to the committee which at once
notified him to appear, a.ring it would cummon him otherwise.
Davis aid Archie's betrayal of Sinclair h.. caused the coinage of
a new word, "To Archie"; that a friend of his heard two
employees of a New York Corr,oration tiarreling, .nd that one
said he would not be "Archied" by the other, i.e. have sot.ie
delinquency shovel un by the other.
Feb.. 24, Sunday, 1924.
p. 39, 39, 40, 41.

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

-41-

Davis, John W. (Cont.)
could not afford to
Col. House tells C.S.H. the De.,.ocratic Party
would. h.ve to be explained, and
narainate any man whole record
„lorgan
that the fact that Davis' firm 13eing of counsel for J.P.
Leration.
would elii-inate him from coml.
:Iar. 10, 1924.

p. 71

Dawes,(Comptroller of the Currency )
branch bank bill
Superintendent Johnson wires Board that the :IcFad.den
an akTeelzent entered. into between
is absolutely inconsistent with
James, and. Dawes,
himself and. a com....it tee of the Board, visit to Washington, - a
,
made on the cc ;:asi on of his last
month ago.
Feb. 21, 1724. p. 34
believe that
Dawes, Gov. Strong, and C.S.H., differing from Wyatt,
the foreign trade, drawn by another
an acceptance of a bank in
bank, is at least technically lawful.
Feb. 23, 1924. p. 35, 36.
Bank of
Votes against dividing up the branche.i of the Valley
Bank of Italy and the Pacific S. W. Savings
Fresno between the
6'. Trust Co.
p. 47.
Feb. 2,:, 1924.
to consider
Votes for .1:her 1 s draft of regulation declininz
sir.Ault _neous
branchaz in states not
applications for
Feb. 29, 1924. p. 58
examinationL.
Moves as a substitute for Miller's motion (that National banks
be gIven seine ri hts as to branches as exercised by member
banks,), - a general indorsement of ',he :!cF,Ad11 bill.
Votes

or this mbstitution.
Feb. 29, ;924.

Votes against wain motion of ':iller.
Feb. 29,1924.

p. 59

p. 60

and
Zee. Mellonesks to be recorded. as voting &le on Lawes =Aim
No on iLiler's motion.
Mar. 4, 1926.. p. 60
who
C.S.H. believ:s Sec. Mellon /..as induced to do this by Dawes,
him an.: that he was oppo.;ed to the
he hal seen
told.
branch banking system.
Mar. 4, 1924. p. 60

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

.)
Dawes, Comptroller of the Currency (Cont
amended so as to take away
P.R. Act shoulJ
C.S.H. believes the
the Treasury t..n1
the right to vote ZnAL th3 S3Cr3t,Ary Of
the Comptroller.
ddent s camoittee radical
Dawes, as Cooptroller, recommends to Ibicl'a
swrstem will
,
chanres in the F.R. Act, sayinf that the P.R.
ed, and. then,
be ruined. unless the :Ac.Fadden bill is adopt
to put
when 4 of the 6 c..ppointive a,3LIbers iesire ar- vote
disa&ree with
into the 3nnua.1 report of the Board. that they
and the
Dawes and do not approve the ..IcFadderi bill, Da:Nes
me.,:bers
of the Treasury vote with the 2 appointive
by
against the wishes of the 4 appointive alsobers and,
tying the -tote, kill it.
ts to Ccm.:ress,
Thus the ex-officio members can send their own repor
of the
and, at the ua:oe time, prevent the m ,jority
ma:ter to
appointive members from sending any report on the
Congres6 -t alit
:4x. 4, 1924. p. 60, 61.
nton at the
Gov. C. miles that no member, who is actually in Washi
it himself
tio.e .can have his vote rccord.eci unless he casts
at th.a meeting.
technicallN
A slap at ..lellon ,Ard. LaNes, but perhaps a sound ruling
1924. p. 6.3
Liar.
n.
Cuatingharo records his vote in f...:vor QC Dawes substitute motio
idar. 6, 1934. p. 64
sabers recording
Dawes quetitiona Gov. Cu ruling as to absent m,
their vote. C.S.H. opposes the ruling.
:kir. 12, 192.1. p. 72
See - il.m1in, C. S.
by voting
C.S.H. believes if Sec. Ilellon had fully realized that
n he hrAd
s root ion ;:).rii for L'a.Nes motio
against
ng
prevented a railjority of the ap.pcintive meroibers from putti
..rould not have thus voted,
their views in the Annual Report, he
...embers.
at least .Nitheut haring the ViT.kii of the 4 a-ppointive
ALT*. 12, 1924. p. 77, 78.
bank
Votes Aye and James vo ,es No, as a oit tee an Torrance
Mar. 18, 1921. p. 79
application .
Dames changes his vote to No.
:Jar.. 181 1924.

p. 79

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

-43-

Dawes, Comptroller of the Currency (Cont.)
Votes against C.S.H.Is mibstitute motion that Torr mce bank
application be podtponed pending a simultaneous examimition by
the F.R. Bcard. which id herewith ordered..
Mar. 18, 1924. p. 80
Votes in favor of C.S.H. motion that the Board examine sis,ultaneously
all state member banks with branches, not now so 3.taL.ined by
state authorities.
Mar. 18, 1924. p. 80
Votes in favor of Miller's motion rejectinp_ Torrance bank application
because state i s no t examining simultaneously.
Mar. 18, 1924. p. 81
Spends afternoon with Sec. Mellon and other mambers of CoaL.ittee
considering proposed branch regulaticns.
Mar. 25, 1924. p. 83
Miller moves draft of regula.ticn approved by Sec. Mellon, who
desired to be recorded for it, - Sec. Mel.bnIs own uraft.
Dawes asked that we ask Sec. Mellon to come in ant discuss it.
Gov. C. and Platt cbjected, as the draft was Sec. Mellonts ,and
he had. a,alced to be recorded in favor of it.
Dawes, very angry, rush - 1 out of the room saving he should. see
Sec. Mellen and should not ask the consent of the Board., either.

Gov. C. was about to put the vote, but C.S.H. insisted on waiting
until Dawes returned.
Dawes finally rAurned; said he saw Sec. .Iellon only for a mcrnent,
but that he intia.ated he might possibly agree to an inserticn
of a reference to contiguous territory as defined by the Board
in the Jan: 1924 ameniment to the Nov. 7, 1923, resolution.
Dawes move1 this as an eruenlmant to

draft.

Dawes voted for his amendment.
Lost - 4 to 3, but Sec. alellon to have right to record his vots
Mar. 26, 1924. p. 85, 86, 87.
s hAin motion.
Votes agsingt
Lost, 43 to 3 bat Sac. Mellon to record. his vote.
Mar. 26, 1924. p. 87

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

11
Dawes, Comptroller of the Currency (Cont.)
inary
Votes against C.S.H.Is lixtion that Board, except in extraord
emergencies will grant no further branch applications, unless
within one year before date of application there haz been a
simultaneous exalutaation by th3 Federal Reserve or by the state
authoritieb, etc.
dar. 26, 1924. p. 88
Votes a6ainst the regulations ds
Carried 4 to 3, but Sec. Aellon to record his vote.
Mar. 26, 1921. p. 88
C.S.H. Is shocked at Dawes, an ax-officio member, rushing out of the
Board room to induce Sec. Mellon, another ex-officio member,
to change the Tote he had just recorded.
The F.R. Board is dowina,ed by the ex-officio members, - both
political appointees.
Unless voting rights are taken away from the ex-officio members, the
P.R. System is io(Imell
The Board ia looked on with amused contempt by the country.
President H-%rdine has changed it Into a political system.
Mar. 26, 1924. p. 89, 90.
Gov. C. tells C.S.H. that Dames, with his chief examiner Pole, has
just had a long conference with Soc. Amnon on the branch bank
regulations, taking with him the minutes of tolayls meeting.
Gov. C. was bit:erly incensed and denied his right to do this.
Mar. 26, 1924. p. 90.
Dawes comes in and tells C.S.H. that Sac. :Zenon will vote so as to
cause a tie and defeat the Miller motion.
Dames begged C.S.H. to accaPt hi (Dawes) substitute mction, which
had been voted down.
C.S.H. said he would consider it but felt he could not accept it.
Dawes then begged C.S.H. to prepare sotae oompromisa draft which all
could accept.
C.S.H. said he would try but he did not believe the majority would
be satisfied with it.
26, 1924. p. 90.

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

-45

Dawes, Comptroller of the Currency (Cont.)
Dawes case in, also Gov. C., and. Platt.
C.S.H. said he could not accept DaNes .tiotion but would try to
draft some compromise which he could accept.
C.S.H. then drew a compromise draft as an °Lan:tit-lent
(Sec. ',:ellonts) draft, and slightly chan --ed Dawes draft.
For C.S.H. draft, sea p. 91,
Later, at the Board. meeting C.S.H. read his draft, not aLreeing in
advance to accept it but would be Jad to cliscuss it.
Jaiesrushed out and brought in Sec. :elellon, who strongly -Qproved.
s draft.
C.
C.S.H. accept 3d

gel thillerximent

by Miller.

D&A1313 votes for C.S.H.Is draft.
Passed, 5 to 3, C.,ov. C., iIL1lr zxi Platt voting No.
Mar. 27, 1924. p. 93
Dawes votes to accept the relations as ar.ianded..
Same vote as above.
Z?, 192.

p. 93, 94

See - Reg lations
..liller bitterly at .acks Dawes for his latter to :icFadden to effect
that the Fed - ra..1 Reerve systeai was in danger unless the
McFadden bill was passed.
Millar said the letter was written as if it were the opinion of the
Board, whereas 4 out of the 6 appointive members were of a
contrary o-iin Lou.
Miller said Dawes should have first consulted th

-".oard.

Dawes said in ju.:.tifica,tion that the letter stated that these were
merely his personal views.
C.S.H. feels Miller's re:arks were justified..
Mar. 27, 1924. p. 94
To sum up the mat tar:the secretary had decided to vote against
1. Dawes told
his oln ..raft of clause 1.

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

szerm-

spipPOPORPINIMINIIIIIIINIKompo

v, •,t

4
m, ?..141..1 1::',:L.,..
fv
,

Currency 'Cont.)
Dawes, Ccuiptroller of the
Miller's motion and
This would have tied ...rid. .lefsteci
2.
on of Nov. 7, 1923 in full
have left the resoluti
acting policy of the Board.
force as
3.

3
the princip1, of contiguous
C.S.H.'s compromise draft 13ft
facie
7 resolution merely a
territory In the Nov.
grant statebjest to the power of the Board to
rule,
so.
wide branches, if it wished to do
7 resolution,
draft, therefore, so ar.lended the Nov.
and in fact
as to practically take its teeth out,
it.
practically to repeal
Mar. 27, 1924. p.

maintained the high stano.ard usual
Dawes conies in and says ;....3.11. had
statesmanship had saved. the
to him, this Laming, and that his
Board fran chaos and. public ridicule.
Mar. 27, 1'7434. p. 95, 96.
Seay statinc that under the new
Reports, with James, a letter to Gov.
h Carolina, could nct take
regulations a -oan,t. in Charlotte, Nort
over a branch.
of :card as to branches
ect t as no conliticn as to .._oproval
.
was ever im - 'osed on this bank.
s draft of letter, that only the
Dawes VOt3G to substitute C.f:..1.1.1
d be inquired into by the
condition of the bank and branch coul
April 16, 1924. p. 116, 117.
Board..
him for his fairness and.
Wills tells C.F.H. that DaNes praised
impartiality.
April 23, 19-1. p. 121
ral Advisory Council, as to
C.F,.11., asked by Warb 1.1r g, of the Fede
explains how Dawes and
opinion of Board. ta to McFadden bill,
ive maubers again:It
d.efeated the draft of 4 of the appo:.nt
the McFadien bill.
May 13, 1924. p. 133
to indorse the McFadden
Dawes as: el the Fe Ler...a Advisory Council
on.
bill, - an extraordinary acti
May 13, 1924. p. 136
i memberahi- in Federal
A m.,jori.ty of the Council f.tvored iktr
s, but not at the
Reserve system voluntary for naticnal bank
present time.
DaNOS .vas

very much disturbed 4t
May 1.3, 1924.

p. 139

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

-47-

Dawes, Comptroller of the Currency (Cont.)
he wanted the F.R. banks
Atha Governor's conference, Dawes
reports, in place of $5 now
to pay $10 per coy for his
paid. The Governors see,lad willing provided the Board
auroved.
The Board stated it vouli not affirwatively advise this, as it was
a matter to be deLmlined between thi Comptroller and the
respective Federal Reserve banks, but that it culd not
disapprove any suoh paymenta.
:lay 13, 1924. p. 140
Dawes showed. C.C.I. a letter fraL C.ov. Hardin-g objecting to paying
$10.
Gov. Harding said. it was originally aE.yeec1 to pay $b to help out
-,a
,
Gov. C. 'then he was Comptroller; that such a char: was not
fair to state mluber banks upon v.hoir. the Bo6,rd has to charge
ct of examination, while the law requires
the whole
Co.uptroller to assess his costs ag•Ainst the national banks.
May 13, 1924. p. 140, 141.
Gov. Harding sends Dawes a copy of a vote of the Directors of the
Federal R966111V e. Bank of Boston ainst payini.i. for the
Co.ptroller'rs reports more than che cot of trans?,ribing
and furn ishing co- les.
:
May 14, 1924. p. 142.
Dawes writes expressing the hope that the Board will induce the
Fed ra1 Reserve Bank of Atlanta to ag;c el to a proposed
settlement with
e Citizens First National Bank of Albany,
Georgia.
Dawes told C. -H. tLle Federal Re.,ervs bank was respcnsible for its
closing.
Arote Dawes declinim- to interfere.
May 16, 1924.

p. 143, 144.

See - Citizens Fir:A National 3.3.1k, Albany, Georgia.
In trying L:,o secure indorseraents frac banks of !cFadden bill.
May 26, 1924. p. 161
McFadien tells C.S.H., after hearing how Dawes and :len= tied
the Board in McFadd.an bill, said it was. t reason for
abolishing the Comptroller or putting him under the Board.
May 26, 1924. p. 163

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

.)
Dawes, Controller of the Currency (Cont
ed by the
s C.S.H. claim that the ?Wadden bill, as amerxi
Dawes admit
state bank entering the
House comnittee would prevent any
all Of its trenches
Federal Reserve system unless it gave up,
parent bank. (The bill,
situated outside of location of the
this only to branches
as first reported by committee, applied
the McFadden bill.)
established after. the passage of
May 26, 1924. p.164
of the McFadden bill.
Totes for resolution favoring the pass Igo
voted Aye.
Passed, 4 to 3. Sec. Mellon
s.
Carried by the votes of the Ex-officio member
Otherwise would have failed 3 to 2.

May 26, 1924.

p. 165

ned and voted
It would have failed 4 to 2 had not Crissinger •ireake
not believe in it, but voted for it to
for it, saying he did
help the national banks..
May 26, 1924. 165
special
Davos tells C.S.H. that Under Secretary Winston had no
in Chicago, that he. had no tact and ass
deputation as, a lawyer
r.
_ merely the son of his father who was a good lawye
June 10, 1924. p. 187
Dawes Com:Dission, Germany
send Asst.
Board refused request of F.R. Bark of San Francisco to
help Robinson on the Camaission. Sec. Mellon
F.R. Agent Break to
.
and. the Cabinet were opposed. Jan. 2, 1924. p. 1,2,3
over to
Board. disapprove)s revest of Young that Gov. Strong come
consult with him. Sec. Mellon and Cabinet also opposed it.
Feb. 23, 1926. p. 42, 43.
be
Gov. Strong believes the report of the Dawes canmission will
be followed by a broad uprising of business.
accepted arxi will
May 22, 1924. p. 153
report.
Prof. Kemmerer tells C.S. H. he drew the currency part of tie
June 9, 1924. p. 187
See - Hoover
Hughes, Sec.
Kammerer
De Sorrier.
g in
Sec. of Dutch Legation attends funeral of Margaret Hardin
Boston. Jan. 27, 1924. p. 7

-49-

(.1:100) Vilevia0 fri/ lo tullol4w03 ,aswa7
,
suLLIL.
anaiba sewaa
v.cf table= ea „LIM netballoM
e1igrillezne )11:lad es via :neve irq l)ltraw atIShrtroo asap!!
jIO 1116 cp.r evaNi t1 iethu sre3saia ev•rebefr Lrietvel
serlons'xf
„LIM
rio1J.sool lo 17,-01e:tro ±,e:Aviit;
0):,/$1=ot,b 1iqe
81,41 ex
sekdakld 0J it
,
1olbl4da:se
(.111d rIeLhILY. 0a4 10 e-74aaa4c1 sA:
e8.1.q .A.SQ1 .8S yod4
reLbiJ. eL

JoV
o cor zcaaq eU1.1111-loael ao.:IrrIcptel 7451
t
bf,av norfeK
0$ k- ,./Jeitoaq
to a e:OV eii: %digs/v=0

• .aledmem
dal

,Stil .8S y,s14
.t

.S o

& 1%611.81 olveri bicosi

o$ ê belial evati bleic-10 :T
be:ov rat, te.:41sew lesaisall3 :ors taul
11 ;
• o: .11 lot belov /Ltd .11c ersellee lot: .Lib Lanly.ba 0 .1.04
latarr coal glari
ikt
dal .k;ti'l .aL
astvaa
laloeqa n Lied rto,Inn/Yi vta/atoe2
a ea noiSaViciet
saw Lai iota., otiLaii uJ Jaw oxisttitin rri laxly/al
,
.'reicycal boos a USW 5:01 •re,13.0 aid 10 aot ett'a yl'elsra
V81 .q .oset got enut
.1.../030 a swaci.
'to .41aff .R.1 to :coupe's *tassflerr trzasoff
.:saAicte..J.; oostorasTi ras',
:frisgA
cccb qled ct.
X701 Isl.! • DO8 .nsitD
.r.AL .bes -3,1clo zeUsniciat) a4
bsisoE
Sitraroo

:s:14 anuoY 10 $happe"
leW O'LJt.11 bellows oala Unicia0 brie no 1.16W. .oeF .tair
i&s•de:
.E.t, .C4 .q
svgaa e:
ed IZiw no leairrz
astralsuo• to linteily.r Liaold
gss icak
WI .(1

.voZ
o.{: evelltj
7.)LI
oLtot ed LSI*/ Ina be•qeons.

Deflati on
C.S.H. answers :viiller's dr:....ft for Annual Report to affect that the
...raa the cause of
excessive issues of Fed3ral Reserve notes .
duty of the Board to place a restriction
inflati on arri that it is the
on Fedlra.1 Rez3rve note iues in the future; also that Federal
Res,!rve banks liscounted chiefly to s3curs currency, and that the
,rialarily note-issuing banks.
Federal Re63rve "oan'zs were iC.S.H. pointed out that any such limitation of notes would c )rtainly
bring about drastic ieflaticn, but 'NILS lntirely unncessary; th.,t
every Festeral Reserve note issued (except iirectly against told)
rested on an anteced.ent rediscount of conisercial paper, ani that
proper control over rediscount by fixing discount rates would
incidentally regulate note issues; that when the credit la created,
whether it is availed of in the shape of a deposit credit, or by
taking cut cash or Federal Re-3rve notes is ira.Jaterial, so f-t.r
inflation is concerned.; that in fact, if F.P. note., are t am no
bank credits can be eatJ,blished against 'hem, while if 4:11-3 credit Is
left as a deposit credit the member bank csn loan on this credit
about 7 to 1.
For memorand.urs, see so re

bock.

:11.11:r Was very an6ry and. said my article
prepare' to show.

as nrauddlehead.ed" as he .vas

C.S.H. dared him to put ht 4 draft in the ra-oort and he would file
minority report.
Feb. 14, 1924. • p. 19
See C.S.H. gives Board. his reasons for answering .1iller and shows up
inconsistencie—
Reminded .:iller that he Nag the original inflationist, r4sotint his
social science.
article in the annals of political
Feb. 15, 1924. Y.). 21, 22.
See - _Mier

.1toqvr WO to Slaq

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

eitIw. 4611-,1w.it elf .13.
emir,

4
7,01m...el! .1311

levuoE - QC!
,aeria.rdi
stolen:ma
wisivree ea
14.7Frur. abcret.t,,, rsol:age.1 dolel to, .t.40e
Lica. .43) sofl
./C91 ,

•

:,
'
441414-;

Denby, Sec.
Last week the Senate passed a resolution demanding Denby's resignation.
Prebiaant Coolidge informed Senate that that was his busines_, which
was true, but thereby Coolidge accepts the respcnsibility for
Denby's retention.
The Senate resolution should have merely expressed the opintcn of the
Senate that in view of the grave char.,es against Denby, he should
at once resign, even th.cuF-h in fac : he was entirely innocent of wrong
Feb.. l., 1924. p.
icing.

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

-50-

Deposits and notes
Separate ratio.

Discuss ion.
Mar.

192.1.

p. 62

See - Iiller
Reserves
Designation of Governor.
See - Governor

p. 7o,76,

Differential di xount
see - Discount r‘ttes

p. 196, 197, 1,98

Dimock, Mrs.
C.S.H. dines •lith ::rs. Dimock to meet Egyptian Minister and wife.
June 7, 1924. p. 181
Dir.ectc.)r, Interlocking. p. 82
See - interlocking director
Discount rates
Gov. C.just returned from New York says director. want to reduce
discount rates to 4%.
Miller and C.S.11. favor
Platt at fir.t had doubts.
Voted to call special mee'.ing Monday.
Sec. Mellon to be present.
April 26, 1924. p. 124
Board meeting.
Sec. Mellon at first opposed any reduction in 'T. Y. rates.
Miller pointed out decline in both production ,id. prices; thought it
well to reduce rates from psychological point of view.
C.L.H. favored lower rates; he thm, t prices, how:ever, would continue
: -h
-to fall, aril believed it would furnish a good object lesson to
those who claimed that prices could be stabilized through rates.
Miller said business recession would continue, but that by July, a
pronounced upward movement would set in and that it Nould be
far easier to check any possible speculative movement by
incre-sing from 4% than from 4.

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

-51-

Discount rates (Cont.)
Board voted to notify N. Y. that, if at their next meeting, it was
the jud.gr.ent of the N. Y. .directors t o c6o in to 4%, the
Board would ap prove.
Board authorized executive carLiiittee to i.rprove scuch reduction on part
of N. Y., Philadelphia and. 'Boston, if proposed when no qu.orma of
Board. present.
April 26, 1924. p. 124, 126.
Executive can:Attest ratified proposed Action of N. Y. to reduce to 412
today.
to take 3ffect at 3 p.
April 3(), 1924. p. 126
C.S.H. calla up C:ov. Harding who says be knows of New York's proposed.
action anci asks if it resulted from the desire of the Board
caumunicated to N.. T.
....H. said. ::o; that the Board erely said. that if the judgnent of
approve,
the dir actors .vas for lowering the rate, the Board.
ani that this applied also to Philadelphia and Boston.
Gov. Harding aaked. if Board Nou.ld. object if Bos ton di
for soite Jr yet.

not reduce

said Board would. not object.
Gov. H. asked. if Board. approved the N. Y. reduction in connection with
any plan under the Dawes com..ission report.
C.S.H. kiaid. No; that the Dawes report was barely mentioned ani not
in connection with the rate r ;:luction.
April 00, 192. p. 126, 127.
he is certain that the movement for lower
Gov. Harding tells
rates in New York was. inspired by Gov. Strong, now ill in
Gov. Norman's houae in London; that Gov. Norman wanted inflation
in U.S. to put us more nearly on a parity with Great Britain.
Gov. Crissinger told C.S.H. %ht

o•r. Case opposed the reduction.

C. .H. replied that at the Board. 1.13eting it was merely a..-dd that Case
a few daya.
wanted. the production postponed f
April ;5, 1924. p. 129
At Governo rs Confer Inc , Gov. Case
at New York to 44:1.

iv eS the re sons for r3the t;.cn

Brings rates into harmony with custaLers

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

Discount rates (Cont.)
2. Will not cause inflaticn
3. A dir se torof the Bank of England. told him that Great Britain
was over burd.aned with credit deliaulds 7iiich it could
not handle; that her 'to tea should go up and ours down.
Gov. HArding said there was .no necessity for reducinft rates at Boston
but that ultimately Bo 4t on must follow Nei York; 1-i at country
rates wire genrally 6% in N.3. to custoiars •And would not be
reluced,if F.R. rates were lowered to 4A.
.
Gov. Fancher .said countrf r .,ez in his district would not fall below
.
the custtrnary 6 to 8%, even if F.R. rates were lowered to 2;Q.
Gov. :,1cDougal expressed the sat:ie view.
All 4;reed, however, that F.R. rate red= ticm .vo:ld help large
borrowers in the larger c...ities.
:1111er s -id F.". bank& si,ouli lead, - downward as .vell as upward; that
lower rates meant 1ow3r cost of nanufac tura; that prices had
declined. 15% in six months which prevented carrying large
.
invmtcrie und maie for uncertainty.
The Govirnors, As did Jay in 1921, all seerr.ed tc believe that F.R.
banks should nct lead, but should follow the market, at least as
to ciescinding ra.tes.
•

•

an/ Curningham believed the principal F.R.
Gov. C., C.S.FI.,
banks should reduce rates. Platt was so-ewhat equivocal.
:.lay 7, 1924. p. 130, 131.
Gov. Strongsaid he was rather favorable to lowering N. Y. discount
rate to 4%; that this would not tffect domestic conditions it
might induce much borrowing fra“ abroad; that it would :Ave the
U.S. an opy,ortunity to become the money centre of the world.
He predicted a tremendous business boom, not however, until aftlr the
Presedential elections ariI perhaps long after; that this would.
be preceded by speculative activity in the stock market, aided
by low interest rates, etc.
Feb. 22, 1924. p. 1.)4
See - Open market operations.
6
Phil.Adelithia proposed new rates, 41,- fellows:
6 months
90 days
?resent rtes
1
4
41
3
Proposed rs
4111

9 months
5
41

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

-L3

Discount rates (Cont.)
Every other F.R. balk has flat rates for all maturities.
Board unanimously agreed on *AI for 90-day paper; C.S.H.,
Cunningham and tialiteki objected to the differential against
6 and 9 months paper.
Miller said a lower maturity should carry a hi. :her rate.
'C.

said.- this was true as to ordinary coicnercial loans, but
he did nct believe Cork rafts intendei that acricultural
per (necessdrily of longer ist turity) should necearly
have a higher rate than ccuumercial paper; ',hat the 90-day
paper was of tan renewed at she low 3r rate; that the claim
that banks, if the discount rate were flat, would offer first
their long term paper, could easily be taken c -Ire of by the
F.R. banks .tna the attempt frustrated; that in the bonus bill
Congress ic.a.de 9 months veterans notes eligible at be 90-d41
rate.
(C.6.H. the other day saw 6 months and 90 thy paper quoted
at the atIli) rate.)

Miller said the F.P. banks might cease to be liquid if they hid
in their portfolios an unusually large aucvnt of long- term
paper, and might be in danger of insolvency.
C.S.H. said the F.R. banks could sid. woull regulate this, and
pointed' out that it is the bad quality of the paper and not
the saaturity ià.ich :Lakes banks insolvent.
Board voted to approve the 3kia rate and to disapprove the rest.
June 17, 192.1. p. 196, 197.
.
C.S.H. c,taled up F.R. Agent Austin .rho sail that :he spread. of
between 904ay and 6 months paper was an error which
1%
his Board irould be at once reconvenbd to correct.
C.S.H. expressed ho7)a that his Board ..:cmld bear in mini that all
other F.R. banks have a flat rate, and that raising the
-question of a differential by a balk having so little of the
long term paper might raise an awkward question which could
better be raised by other banks having a material amount of
such paper.
June 17, 1924. p. 197, 198.
Dividends and - .apenses, Federal Reserve banks.
i
Gov. Case says Federal Reserve banks must have $00 :Anions
more of earning assets to have system make; that such an
amount can not be secured.,for the money poured out into
the Laarkt will at once he used by the m. banks to pay Off
their redis2ounts .-ith the F.2. banks; that only when a.11
discounts are paid off will such purchases increase earning
assets; that to pour C millions into the rr.:2..rin t would mean

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

-34
-

Dividends and. Expenses, F.7. Banks (Cont.)
corapetiti on with M. banks in buying acceptances and Govt. securit leg
woul I interfere with Treasury operations.
Gov. McDougal said. the F.R. banks ought to engage in open market
operations in order to ensure payment of expense and
dividends.
Gov. Norris .aid it would violate reserve bank pelicy to pour money
into the market at the present time.
0.3.:1. said. this wal1-11)e true if the Federal Reserve banks had
say 600 millions of Govt. securities, but that now it can buy
them little by little, nithout causing Inflation, to use for
control against future undue speculative activity, and Dr. .1111er
took same position.
C.0.11. is satisfied Case does not want to canpete with 1. banks,
or to interfere with Treasury operations, or, i:oasibly, with
the stock marko t.
May 7, 1924. 131 to 133.
The Federal Advisory Ctuncil sta'es that the present a.g,grega+,e of
investments, -(833 millions) should be retained and, perhaps
somewhat increased if it ban be done %-itlicut affecting the
market; that the Federal Reserve bans should not make
investments for the sole purpose of increasing earnings in
artier to meet expense and r.iiviAend reh.lairements; that
dividends :Lould be paid. as long as the surdlus will justify
it, even though not earned.
May 13, 1924. 135
Above recomsendation ignore,. open market operations as a source
of earnintis, in ontrovention of the spirit of the F.. Act;
C.3.11. poi ted out this to the council.
Warburg, replied vary ambiguously .ctying that open market
operations justified for other reasons, would usually
incidentally take care of earnings.
C.S.11. asked Warburg if he Waki rii-ht in interpreting the Councils
a
stiItsment to me ri that open market pow ir
hou1i. never be
used. for earnings unles.-: ju.it :fled cn other grcunds, and.
,
7arbur
ail Yea. 137
This is a complete reversal of the intent of Congress.
C.S.H. votes from Board's annual report ft.: 1914, and .1r. Forgan's
sta.tauent in 1913 to effect that expenses and dividends should
be earned and tint the resulting competition with M. bunks
would be negligible. 137
" La4•44.
'

at.64.....C■••• are. 74.444-•1444.44 •

-55-

.$ r.))
.
".111'1'7.4r0 11

. vo3 tat, al-,
iairt.,

d
.d/Iw

rfir

tf!ML
,....esnegx1r LL
1J?C)
*)
ft 4 .N.:1,1D::

.5.

aerv ni
_

•V

ILI).41) .;)

11) ,t

Doheny
excitem.ent from discovery that :,10,Adoo had reo3ived
retainers of $1JC,OGO from Dohany.
Feb.
1924. 18
bee - :IcAdoo

s
Controv9rsy ...rith John W. Davis 0.6 to passport.
• V.)

,...1.rt;

•

.trov

10;1..44

Asks Davis to accept retainer.
See - Dvis, John W.

39, 4C.

Drum, John

1.1111
.

S33 -

ilercantile Trust Co.

‘s
•

d .;
,

•
.

-r r

7arning assets
Sae - Dividends and expenses
Opan market operations

tf,

Eastern Banking and. Trust Company
Application of, of .Nawburn, North Carolina, to take over a
40.11 bank as a branch.
sr-

.404

.71

. t

James ard Platt bott. favored, as the condition of both the
parent bank and at the proposed branch was sound.
•

-o
t

LJLr VO

•3i

t; 7.1/21

•

C.S.H. pointed out that, whatever the Board. might do in the
future,
it had not yet done . .his, and. that such policy would viol
.
e
the Federal Reserve Act, •rhich calls for examination
by the
F.R. banks if the state axamination is not satisfactory
.

1..

:•:t •
,

Gov. C. bitterly opposed as state had no aystem of sinult
anecus
examinations, and said Board had determined to peralit no
further branches in states having no such 32tanainJ.tions.

'•
r

Gov. C. claimed the F.R. banks could not make a satisfactory
simultaneous examination.
f.•

71.1

Jt.

14.•

C.S.H. po.nued out that clearly in id
one parent bank and (dna branch.

VA:
sit

case it was practicable, -

.-.1k74•4

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

••

•T:.4.)

•

rf.t.

,aa.111.11
•

James agead with C.S.H. and. said ilerson would aho:tly report
that
it would be perfectly practicable to arrant e for sind.xl`
danecus
axa:Anation of 3van the 1..rg3st state banks with branches,
3. g. th3 Bank of Italy; that I t 1441.ght
recrair 3 perhaps 140
ex..z..iners which could easaly b3 ::,rocured fru- ;he
Feliral

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

-56-

Eastern Dunkirk:, and Trust Co. (Cont.)
Reserve bank all frau other sources; that the cost
to the
Bank of Italy would not be over $20,000, which
was not
unreaaanable.
C.S.H. pointed out that the Federal Reserv? Bank of
Boston charged
one Rhode Island. bunk $7000 for an extuaination, Lind
that the
bank ..vas ti.aoi to pay it as I; was of such value
to it.
er :i-loveci to permit Bank to tak3 over this branch,
provided
(1) a satisfactory, siLaultaneous 3xamination Was
being made
by. the state and (2) t1- at condition of parent bank
,
azid bnuiches
was s
Platt offered .ameniment that if (1) not fulfilled,
then the Federal
Reserve Bank should examine.
Miller's motion failed, :Allier and Gov. C. alone
voting for it.
Platt's motion was carried.
Feb. 26, 1924.

47, .18, 49, JO.

Eoonctay ..Ind Efficiency Coaaittee.
moves to 'discharge, fram the d.uty of .king reco::
:mendaticns
'based on, its examinations and to transfar this
function to the
salaries wid expenditures corm .ittee.
Miller bitterly opposed this.
C.S.H. said committee positively refused to mal
,a a.ny recommendations
and that he %%tinted action.
C.S.H. cited vote of Board months ago to report
on dvisability of
continuinc publication of Federal Reserve Agent
s monthly
reports, and :.;aid it was sleeping in the ,
c.
,o:uLittee.
71i113r
•

3ctid

the committee could not and would not report.

C.S.H. replied that was why he

Lli.:13 tht

oticn.

C.S.H. finally irop ad his :ction a.nd move
o reconsider the
adverse vote cn the Cunningham resolution reves
tIng sal. and
expenditures committee to report on all salaries,
officer,
etc. .1.th reconanerxiat
Passed, !Mier .lone voting No.
Jan. 17, 1924.
6, 7
See - Sal. and FIc_aenditures co mittse.

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

-5?-

Egyptian Minister
H.P.H. gives a New England supper to the Egyptian Minister and
Miasma Yousry.
Present:

C.S.H., H.P.H., Egyptian Minister, Madame Yousry,
Mr. and Mrs. Henry Getty Chilton (Counsellor of
Brit. Embassy), Sir Maurice Law, Mr. and Mrs. Eugene
Meyer, Mr. and Mrs. Sweatier (attached to League of
Nations), Mr. and Mrs. Arthur Bullard, Miss Josephine
Patten.
Drank to health of the Minister in 1811 sherry.
May 25, 1924.

161

Sat beside Madame Yousry at dinner at Mrs. Dimodk's. Had nice talk
with her about Egypt. She said she enjoyed her supper with us
immensely snd sent her love to Bertie and Anna.
C.S.H. asked how he should address her, - she is the niece of King Thad.

She said to use simply °Madame"; that she made no official calls in
Egypt but fould when she arrived in U.S. she would have to
make calls; that she wrote to her uncle, the King, Who replied
that if this was the austaz in U.S. she Should conform to tts
but that she should not use any titles.

I •

Elizabeth City, North Carolina, branch.
Application of a bank in, to take over as a branOli a bank 40 miles
away.
. ..

Miller mowed Federal Reserve Agent report whether the Acquisition
was desirable on banking grounds, - wholly apart from
ramlution of Nov. 7, 1923.
James moved postponement for a fall Board meeting.

v
." •

Lost on the vote:
*ye: C.S.H., James, Cunningham
No : Gov. C., Miller, Platt
Miller's motion was then passed, C.S.H. voting for it.
Pointed out that it was merely an enquiry, not necessarily Liplying
a change in policy, but James insisted on his motion.
C.S.H. felt bound to vote with James on preliminary motion.
Mar. 12, 1924. 74, 75.
Elliott
Writes C.S.H. asking for a contribption towards McAdoo's campaign.
Did not answer. Will explain when I see him.
May 13, 1924. 140

-58-

Ixta 104etaiN1 :1.6.1:trWr ed: o

•te$ elzaDi ris1Squ'E
nenqut. brta.fatiN Wei4 A sev.t. J.
A
.çL4JOY sashailt

,xlsvoY exabla ,leCatalM
lol/flaiwo0).n. 4111i0 10.1eD ruteil sallt bat .tr.
:
.11ff
sanM bne .1M wiA;ointialk' 'xig .,(1:44adata .1
4.1s .nM
)03a) siesleswa
.
10 gxat.41.1 o4 btl.lt
bm
onidoaot e*IM
..awauct

Four of appointive lumbers voted. Aye 6n question of expressing opinion
on McFadden bill in Annual Report, but the :J.dverse vote of the
2 ex-officio members tied, the vote nd d3feated it.
Mar. 4, 1924. 61

Arar:Al

xi./ 'to

11ELE tt.t ne4aartiX

::latimang

.44e:

181

als lenzil :A %namoY eulataM abisec;
114, spin bal! .0l3omla
iw.da led :141w
:2
qqixe •ztri bexo Ltse aria bias ti
ex; #3
...,attealati
evo1 is41 at .trat
brsa el nag o4
101)! to eoe

t:ia

'zed

!Nit

oif. te.iaa .F4

as ni4,40 briforie

Lqinie oat! 03 .01464 etti
;1sata1
.
ni a Ilar, .Lal .n'to oz Istvan elle
viz ra dor lors.rol $.utr tcra31 •
stl bev I Tus
0: avail b Prow edit
i>611c.ir oztv 1.14.an1 ad: 4eI.cw lett o e3oIvv ads lacy :211aD elam
eif/ saw al A: tiSa4
,fl 03 :molt's°o bit:oda ads .e'.0 til
:on. Etioria oda lad: ufe.
fUl eau

e1flu a *bid a dam;Id

aa neva ea3 o:

ianilo•La0 ito1,N,4!D ds edas 12
1 *lad a to rot 1 a?,11qqA
•Y ablt*
r

vo Ts111k
ttO14 14119 DA ads ncLiedir *loge% tioh.6 aitrivi,oil IA le bet
iJon I a sib saw
- Lined cio
1
- Ozziro
•
,S' .voti to no .1-103e
,
04111! ec.

j7ift a iotraoaftinocr$ aoq bavo1.1 s mat

-tAvr.I.Z

marl •:11

mot grIbov •h

,beiv:

ei
I

:I:: JOS' ea.4 ito 460.1
.S E.0 ttv,.i.
,
-, .0 .vo.0 : oil

le
r1tLf3mat at)I:ow ' 11 tlti

ie it x, kolas% Aso $1 loci.? .1.uo Le.Intoci
Iiin1x,14111 1I nasaeoen Soo
erwL a
riottl3m etif no NO steal zeasit lucf
.
•

.1414

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

3o45 so.kinittilIenq ‘10
.as ,#v .sel s u

biurod S Let .E.8.0

a no: wadies .5.R .0 89$1§
ao I 14d
.lewsns Ion LIG
008 I aedw niaLqAE ILW
.44Q1 ICI 14.011

o otskoM a tn.e,wo
421d

• rtW LIOV 0

Ex-officio member, Federal Reserve Board.
Law should be changed to take away from, the right to vote.
Mar. 4, 1924. 60
Mar. 12,1924. 74

The Ex-officio members can express their opinions in their report to
Congress, but by their adverse vote in the Board ,prevented, the
appointive members expressing their opinion in their report to
Congress.
Mar. 4, 1924. 61
Sec. Mellonts adverse vote, together with Dawes, left in effect
Comptroller Dames report and letter to the McFadden Ccxm2ittee,
stand unchallenged.
Mar. 12, 1924. 77, 78
Spe:tacle of Dawes, an ex-officio member, rushing it cf the Board
room
to induce Mellon, another qx-officio member, to chants the vote
for Ahich he had asked to be recorded, shows that the Board is
now dominated by the ex-officio members, both political appointees
.
The Board is doomed unless the right to vote is taken away
from
the ex-officio members. They are turning the F.R. system into
a
political system.
Mar. 26, 1924. 89, 90.
Dawes announces that Sec. Mellon will vote so as to cause
a tie on
subject of new regulations as to branch banks.
Mar. 26, 1924. 90
Winston, Under Secretary, claims that he has right to sit in Board
meetings as an ex-officio msmber, in absence of the Sec. of
the Treasury.
Wyatt advises he has no such right.
June 12, 1924.

188

Bxaminati ons of branches
Hereon, Chief Examiner, oays it is perfectly practicable for F.R.
examiners to exanine branch member banks simultaneously even
tho there may be 75 brarehes to a member bank.
Feb. 15, 1924. 23
Hereon tells C.S.H. he has prepared a plan
that it was practicable, and expense
for banks with the largest number of
require at raxiraum 175 examiners, of

for such examinations;
would not exceed $20,000
branches; that it might
which 100 could be supplied

Examination of Branches (Cont.)
by the F.R. bank; that to make simultaneous examinations
skilled examiners were not idoessary, as the assets, ledgers,
eta. only had. to be checked up and copied, and that this could,
be done within 2 days as a rna.ximum, that after that the rest of
the examination could proceed just as if each branch were a unit
bank; that James had directed him to hold back this report
until he could. ascatain &ether these branches had sufficient
capital, e.g. whether the capital of the parent bank was
sufficient; that one examination each year would be ample, ard
that any other information desired would be secured. by credit
inquiries; that the National Bank Act should be amended so as
to require only one exaniriation each year and as many mere as
the Comptroller deemed necessary; that the present requirement
of two examinations forced the Comptroller to spend much of his
time in examining banks known to be south, at the expense ct
those suspected to be unsound.
Feb. 18, 1924. 27, 28.

0:
/..-zkkiff
.12 .

etti
:40'1.:"I

:•:401%.
,f8J

-uv "3'11 v_e
lo.
ttookaG i11rr.
t, t:rr ;pit)je
;

ftsie

OWL a z.4
41rIT I nine -x ,:rf1
!O 212
,nolleM enptat
Y
t,d4 OP-14r1!.
it
,
et! oteste.e fi4*.' f,itir
."!L !dr,
ri•;43'.
z*.tkAilro
liors
trd...ntrtibt 31 !,:,1 ;IV
c7"1
,
witsci KV!
tq
sof
j eo: A
rti;"
f 14. telIT .i
O1
rdl: .1.04.
.0‘.? -*

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

LlAkirt

ttl

tic

,
7 04 ?f- ‘ 4 tr'!CV :UV
,
;1' J4 (AI
.

twarorirtr fie
,

*--1
.

og
CT

)

Lai' extol art)W
e3ratbeta

&L
I:CI.)

41'18

tU4

$:zvw

,KI imrt

881

Gov. C. says F.R. examiner cannot make a. satisfactory simultaneous
examination of state banks with branches. C.S.H. denies this
and. James backed up C.S.H., saying Herson would shortly report
that such an examination was perfectly practicable, etc.
Feb. 25, 1924. 48, 49.
C.S.H. tells Board that if it lays down the policy of not examining
state banks with branches and yet excludes all branches unless
the state Makes a satisfactory simultaneous examination, he
might feel it his duty to apply to the court for an injurctioni
Feb. 25, 1924. 50
C.:5.H. says Senator Glass told him our Board should make examinations
of state banks no matter how many branches they might have, and
that he would so move as soon as Hersones report was filed.
Feb. 25, 1924. 50, 51.
Hereon files report showing that simultaneous examinations by the
Federal Reserve examiners of all state banks with branches,
no matter how many, was practicable, sitting out t-ie method
in detail; that the cost would not exceed $20,000 for the bank
with the largest number of branches, - the Bank of Italy.
Report dated Feb. 1:5, 1924.
Feb. 28, 1924. 53

o
vi..tnr'11,1-1 al :1 OVV
t1C&tiJ ext
IC 4M;;t
,Ci.

.•71.4
;

tit.:110H
t

1; 7i: NI rri •,*1

..74 2':
(

tlid 1

Miller bitterly objected.

,71
.E J 1.

44:— •

;:!

be .s ".;

ti:.`,4rf:

fo.

r!.:
7

&..../Eri

CU'
Itt•

C.S.H. moved that the report be accepted. and. that immediate e.camination
of all state manbw banks -ith branches, be ordered in the
manner outlined in Hersonl s report.

"%La I

/tr.•

2(CWCI 101.
e

!Li;

1.
*

-60-

Examination of Branches (Cant.)
James moved to lay on table.
Vote:
Aye: Miller and James
No : C.S.H. and Platt
A tie vote.
Gov. C. then voted Aye and C..H. motion was tabled.
Feb. 28, 1924. 53, 54
Miller suggested a regulation providing that Board shall hereafter
admit no branches unless the state was making a satisfactory
simultaneous exam inati on.
C.S.H. showed that this would be in direct violation of Section 9,
Which provides that the F.R. bank shall make such examinations
unless the state examinations are not accepted.
Miller WEIA furious, said we were all cowards, that President Coolidge
should. be informed of conditions in the Board so that he
could "clean it out" etc.
C.S.H. pointed out that Board has notified the F.R. Unk of
San Francisco that it will nct accept the California
examination because it is not simultaneous, and that it is
now our duty to examine, Ahich Sargon says is practicable.
Feb. 28, 1924. 53, 54, 55.
-

" =ic 1-414107. w
„ tviN .4"4

m1a

Proi;..)

•

Miller offers the proposed regulation referred to above.

441

Regulation tentatively passed.
ad,d anoltn.almexe elitersOiamls Jodi Iti1tlwr.1
oretaslddw forme! 61404 ILA lc *Ie..'
hortletae.t suo
t.fft ,e;64,*13e,ein 0,
"
tad ads lol 000,Cg$ bee:me :oz. bill, 1603 ed.;
:
cIAM
Itd
. 1611 to Irma f

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

4444 .

Vote:
Aye:
No

Gov. C., Miller, Dawes, James
C.S.H., Platt
Feb. 29, 1924. 58

Board discusses draft of state bank regulation presented by special
cooraittee, - Miller, James, and Platt.
C.S.H. points out that that part forbidding entertaining of
application for branch where no state simultaneous examination,
would prevent Boani from approving even a teller's window in
city of location.
Miller and James said Calif. superintendent told than he does now
examine simultaneously all banks except the 4 largest.

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

Examinations of bran(thes (Cont.)
of
C.S.H. does not so understand it.
Mills' said. proposea regulation forbids entertaining an application
only in case such bank is not being examined. siaultaneous ti.e.
it would apply only to these 4 large banks.
C.S.H. said: it was an illegal condition; that it is the duty of the
F.R. bank or Board to examine, if the state bank examination
is not accepted..
Wyatt denied this.
Mar. 7, 1924.

78, 78.

Applic3ti on of Pacific S.W. Co. to merge a national bank at Torrance,
15 miles .frcrn Los Angeles, and within the tributary territory
as defined in the amendment to the resolution of Nov. 7, 1923.
Perrin and Sxecutive Committee ct P.R. bask reported that the
Torrarne bank was in good condition, and the state superintendent
approved merger and gave a certificate of public necessity.
The Carmittee reported.:

Dawes Aye, James No

James aid he should vote against approving the merger on ground
that he expected the proposed regulations, - providing no
applications 3hould be considered where state was not examining
simultaneously, - would. finally be adopted.
Davrea then changeb his VOt3 to No.
Miller moved to reject application on ground that state was not
examining simultaneously.
C.S.H. moved as a substitute a postponement until a simultaneous
examination be made by F.R. authorities, which is hereby ardered.
C.S.H. agreed Mellon add Gov. C. could record. their vote.
Vote on C.S.H. substitute:Aye:

C.S.H., Platt, Cunningham
Miller, Dawes, James

Left for record of Mellon's ant Gov. C.'s vote.
Mar. 18, 1924. 79, 80.
C.S.H. moved. for immediate examination by Hereon of all state barks not
nal' being examined simultaneously by State Superintendent.
Miller moved to table: - defeated.

-62-

Examinations of branches (Cont.)
Vote on C.S.H. motion.
Aye:
No:

C.S.H., Platt, Oanningham, Dawes
Miller, James

Gov. C. in afternoon, said he would not have voted,
no mat-er how
Miller would vote.
The motion, therefore, was carried.
Miller's motion, - forbidding entertaining of ap-li
caticn where no
state simultaneous examinations, was then discu
ssed.
C.S.H. said Miller was using this motion as an
excuse for rejecting
the application as he himself had said that a Feder
al Reserve
bank simultaneous examination would 3h ow the banks
were in
fine condition.
Vote on Miller's motion:Aye: Miller, Cunningham, Gov. C., James, D.awe
s
No: C.S.H., Platt
Passed
4ar. 18, 1924. 79, 80, 81.
Miller said the simultaneous examination ordered
by Board, on
C.S.H. motion, will precipitate a banking crisi
s in California!
Mar. 20, 1924. 83
James did not want Board to give to the Pacif
ic S.W. Co. the real
reason of the Board for rejecting the applicatio
n.
C.S.H. insisted it should be i,iven.

AP_Joecus:4
,bee:' v.Cif n •

Finally voted to give the real reason, - lack
of a simultaneous
examination by the State Superintendent, altho
the
regulation as to this had not been passed
by the Board at
that time.
Mar. 25, 1924. 83, 84.

.6:0V

Johneon, Calif. Superintendent tells Board he
will examine all
banks with branches simultaneously, as he
now has 30
examibara while formerly only 8; that he
could do this
without assistance of theCF.R. examiners
but he would prefer
to have them and would pay the entire
cost.

.•
.•:;

:toff

a *rad aos$55t

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

. .

Board asked him to confer with Herson
who was iir3cted to report
an the method proposed tomorrow.

••

-63-

(.,•rio0) sehionsnd
.n-31$0co
sewssU

1p7;
,aer

t ;:".1.11
.

,H
,neL1114

.LOS&rivr11.12

0 8f
-

:UK

C.S.H. said. he heard Dawes was to recommend. a change in Nat.
Bank Act so as to require only one arnual examinati on.

c,vrAi Ion t1„.;.,ow en 1)1444 ,csoosrterta al
.e.tov tLLW
t.r IkW
.be Pitt 7)

EleAW

enol.t4nlas.
no 0,40V

at:4

Gov. C. denied this.
April 22, 1924.

•;.;<sin

1.61,`

t$L'1t
Ltiuzf- icy
efr.lefilt#
1Lit4 euoorsllumla ',tate

17.Z aiJ

014;
vvrefiefi. :Jou. soli 4- ./IsiL1
*c. wo.s. fltew vol7L.Ilmaxe

44iN
b.a
roll 0:1Z q ad:
rorr3tjr
Lci.
t!all

*Lb 4111 ,PT
140a
fIC't;"

Lr:

,finarit •
tJaln

N.VA. ,.3 •
,

(3:

:of!

,OS
eltj 01 1
,

t.):1,1:Nef:, Ft
g-11

:
±
7

itt

e (4"

Ins* Son
70( 41 IC) ITA)11411

Warburg said open market operations justified for other reasons
would incidm tally cars for expenses and dividends.

*az

boSalkai . . .
-

sAtionne4itimle a 'to
e:
be:av %.L.Lan.r7
.
evls4
ed or:,,
4:rts.Ialtost.r1.1 b.;sca ed3 xd r
sal irs.1 e
bessa,q atred Sort si iUi o3 5s:1 rrolJaLuil
.esul J.k.111
.48 ,&8
eas .141
i IA sal a Ii
erf butoe.
$rte bis»alugpC .11 Lisa ,a
Oe. r.i4 won ad ea ,x1a.u, * nal Isimla aed'id riJ lw eairsacr
.
s1z3 oi• bfro tL.1aci: ;8 xlaro %.1.1ciersol eildw
le`telq :Avow :7.7
anenlonsxr.
epos:Jo/alba
.Jao:
ad: vici
brv oira evari 33
Slogegi o

01,71•111.

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

le.ttletii saw odv,
loteco 03 03141,
ivicersorao3 besoclolc: todr eia no

.690-S.",

Examiners eeports: 140, 142
Sale to F.R banks
Sae - NSA. Bank examiners reports.

C.S.H. said Congress intended that the open market powers should
be used to secure earnings for expenses and dividends.

Laials est3 blae
,no I/oo.i .F.".

1140 a!

See - National bark examinees reports.

Expense and dividends
Federal Advisory Council advises dipping into surplus to pay
expenses End dividends if not earned.

. e.

•

iv!

M
-

119, 120.

Exchange charges. 191
See - Univ. of North Carolina

8 1 *:011.t:N4 tv)
. Pt1E44

Examinations of branches (Cort.)
Johnson said he thought the banks would ai ree to have one
simultaneous examination by the state , and one by the
F.R. authorities, and that hi would ascertain this and.
report to Board.

Warburg says C.S.H. is justified. in assuming that Fed. Adv.
Council is of opinion that open market powers s, ould never
be used to secure earnings unless justified on other
grounds.
C.S.H. shows such a policy is a reVersal of Board's position in
its report for 1914, ni quotes Forgan as sustaining the
Board tn 1916.
May 13, 1924. 136, 137.
C.S.H. points out at Board. meeting that the F.R. system is
bleeding to death, and that the Open Market Ccrmaittee is
being deterred by the Treasury from increasing its
investment in Govt. securities; that holdings of 500 million
were needed properly to regulate future speculative
activity.
Gov. C. aid Platt say that fact that dividends I. a cumulative shOwe
that Congress did not intend to have the F.R. banks use
open market powers solely to make earnings, and that they

Expense and dividends (Cont.)
tould disturb the money market.
C.S.H. said all the Governors were of opinion that such investments
at the present time would not disturb the audney market.
C.S.H. said we yielded to the Treasury during the war and post
armistide, and 'hat it was dominating our Board now.
May 20, 1924. 147,148.
C.r).H. offers resolution at Board meeting reaffirming position of
Board as to earning' in annual report of 1914; concurrence in
recommenaticn of Federal Advisory Council given May 13, 1924
as to increase in earning assets; that present earning assets
phould be considered as a minimum and should gradually be
increased to approximately one billion of dollars; that the
only justification justifying abstention from open market
operations, thus sacrificlng earnings, would be when such
purchases would serL ously disturb the money market and encalrage
inflation; that the Governors agreed that no such effect would
be produced at the present time; that the objection advanced
by some Governors, - competition with member banks and interference with Treasury operaticns, w !re not sufficient reasons
for suapending such open market purchases.
149, 150.
May 21, 1924.
See - Open market purchases.

1: 1 Lv
otti•Lt Li,
oll

sat;

oal .10. :,,,b1
1
•te von blao

rroilotook, '

a.1,1 ArT ti.7"eclo

,
c,aim-... sa& al rcillIbmt $1 .44.,
1 LxW`7'
,
capflo
WI :i1 i- AiLtau$, vurcilip
arâV

irsTotts1
d
efit.i -to%

eds

Sen. Glass tells C.S.H. Congress intended that open market powlrs
should be used to make earnings on lines suggested by C.S.H.
May 22, 1924. la
above.

vw-)rlk

x,:.11ficr &
1.14.?1 nrr:
0
r

Arm.

Gov. Strong raid increase of earning assets was imperative; predicts
broad revival of business.
May 22, 1924. 152, 153
See - Strcng
Export and import transactions
Wyatt ruled that a bark could not draw a bankers acceptance against
another bank, secured by a trade bill drawn an the foreign
purchaser bought by said drawer bank.

lp r
411 iEV8 . .

.v114 ‘101..toex 1,1000

:00 44)3
et.:•D1 -;ollteeld

:ei.1104 :.L1pr.10
84!
te tk%le4pt vslee
Lrel' ;/PvetIT •
,
., voi; a! :trem7eevnl
we lo lootblori "tads
noUllm
tombet;t telew
,
eulfv: ( ;.1 xi- evl$aLnerie el
.101171:o,
.

a ve:,

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

trs

tie, •

:".u.tcr kr.

Dawes, Strong and C.S.H. thought such acceptances were at least
technically eligible but should be limited or perhaps forbidden
as a matter of banking policy.
Later Wyatt modified his opinion.
Feb. 23, 1924.
See- Wyatt

35.

-65-

-F-

Fancher, Gov.
Says country rates in his District*would not be reduced below the
customary 6 to 8% even if F.R rates ware reduced to 2%.
May 7, 1924.. 130
Takes position that open market purchases should be made only when
market rates are high and we wish to soften rates; that when
rates are low a3 now we should sell securities to stiffen up
rates.
May 28, 1924. 170
Sae - F.R. Bank, cleveland
Strong, Gov.
Farragut Square House
Bornet agrees we may keep furniture in, for summer at same rate as
last year.
April 26, 1924. 124
Federal Advisory Council
Meeting,Menday, Feb. 18, 1924.

4A.1.14.

—44.4.4.7........
.

•= =

) d MasvAsige i:4111 rio esolnmoe szLim oz beau ad big
;
1
.t
Jto14.41

*154 4111,c-A4Wa

a4Oviem . 4i4a411.(**

tad!4"o Ls'

tve

• .
*01,felga e4matgeOte s'isdetad a Ora
04' *rn
flid elosIO

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

anutlfwsmex14
Upon

:sae: tk stew spons$0as dace tAlvol.1 .H..3.3
_.==
ir

4'40

Qualifiedly indorses the McFadden branch bank and Nat. banking
Act bill (H.R. 6855, Feb. 11, 1924), Section 6 of which
permits branches of nat. banks in the city of lcaltion in
states nermitting branch banks, and Section 7 of which
amends Sec. 9 of Federal Reserve Act so thlt, after its
passage no state bank shall be admitted into the Federal
Reserve System unless it shall relinquish any branches
established after the passage of the Act beyond the limits
of the city of location, and that, after the passage of
the Act, no mamba* bank may establish a branch outside of
th6 city of location.
Mr. Warburg said the council was unanimous as to city branches,
divided as to county branchas, and scarcely considered statewide branch banking; that the council was willing to swallow
Sec. 7 to gat Section 6 (B).
(See scrap book for notes as to the debate).
mt.
Feb. 18, 1924. 27, 28, 29.
Meeting of Council
Warburg says Federal Reserve System should always have a
billion of earning assets; that Govt. securities should be
purchased and that it wculd not, at the presant time, cause
inflation: C.q.H, said that d,
Iring the war and post armistice
period the Board subordinated itself to the Treasury, and that

-66-

Federal Advisory Council (Cont.)

-1

%IA al
o
ztVe

asicl
:c /am

DC/
ntA,e
at

vwatroo aval
ôvuaisto.lazo

tst
• ;
o."t

Cri••t

neicio lea: :t..131soq ectiT
bw bCtt L1tL •Igt Me3eL st eAlsa
• won ca %NCI oimr, se/es
.;:f.vorirt
.es4iiet
ti!.; -01.11

he was opposed to further Treasury dominati on; that the
Treasury should approach the market as it found it, subject
to all the influences which regulate it, including the
effect of F.R. operations in the open market.
Warburg agreed to this, but said. the F.R. System could cooperate
with the Treasury, so far as practicable, in making open
market purchases, and that he did not see how the Treasury
could object if open market operations enabled it to place
its certificates at more advantageous rates to the Govt.
May 12, 1924. 134

•

tnatevein onsa
,oro0

1,7Y:
•
.

eawii #31.4413 VrAr"1
r* a&b4D4a
4.114A

Council makes a very ambiguous reconmendati on as to open market
purchases, to effect that. F.R. banks should have a sufficient
volume of investments in normal, times to be able to stabilize
the market when necessary; that they should keep on hand
investments equal to present volume (discounts 440, open
market bills 87, Govt. bond e and notes 250, U.F. certificates 60,
total 835), with & tendency somewhat to increase these
investments if posstble ivithout unduly affecting the market.

,S1 .
ee%lokal
,
NriMard ..*4-** .1 0A ,rnse
.,
1
,11 .45
,
JAN.tlec
-fw
r4c1.
co - n1 irtned .
lq
:,/
,64.1.cd Ashkld N70:!Iiirtetr Re/aJa
,
; !
xs. 1$.) ,P.
40,1w
#4rteaeil 137er.elL to e .ve8 ettieme
al!;/ecli 1 :!;4
124146 oa cv-4.10tes4
bo:/tmofi ed ilesrfa tw
;
, t4a::414%d ys r7'.tiktca/1.41 .[Is la •)1 a elruf ebt604; elme,sH
‘0
. 6',,APilt cAs •;t$'.4k beAsildoz:te
bnoed $ok
s/irll
Ix1 ,J'Ai 3 bm triotigitoZ10 liAt..) ell 10
lO v-3s;.4.scl
Icir4ste x441 iti.iar •admem cc: Jti44 etf:
h
lo t LI 4 '."0
1
71 J 4i1,1
.)
.11. lime° t
aurda
-tcr
.
ob at. tr:oxim.4 sac .1.1Diture:
7
17 sa .bsailv.th
-61 Al r)tilei,/arvn tlfgruso. Sits;TAI-IL-rad tioire oittw
x‘vo.r.r.tirt.! n," unt.i..EPN soy liwurot,
a aol.:De lea 0$ C .rsdee
.(fc:
'7)

Also ad.vised paying dividends out of surplus when necsss -try.
C.S.H. pointed out that Congress intended that open market powers
should be used to make earnings in ease discounts shall fall off.

Warburg replied ambiguously that open market purchase:: justified
for other reasons would incidentally take care of earn'ngs.
Warburg said C.B.H. was justified in assuming that the Coundil
was of opinon that open market purchases should never be
used to make earnings unless justified upon other grounds.
C.S.H. says this is a reversal of views of Board in 1914 annual
report and cites Forgan in 1916.
May 13, 1924. 136, 137.

( .P.'1•Nt
-1

IC%
itcru.so:'lo
.
torlener 1.1441 atosa
bSt.rortz4 frielsy,P.
r
`
.
:
v0;1
c
EL;.•
Lae :Aar
„Nirr.tirv
,
:ssIsai. w. De,
!A?Trilt
!col
tlooa esiI iol
Mk%r..0.1

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

The council also said investments should not be rre.ds solely for
revenue purposa 3.

Warburg says Council had asked him to write McFadden strongly
urging a rule to take up McFadien bill.
C.S.H. said he did not question the right of the Council, but
that if it did this sane members would try to have the
Board oppose such a rule.
Warburg asked attitude of Board - as to McFadden bill.

.67-

(.3non)
:rt.)14.n.troat vortesenT zeal/Let ca: N.4,410(1113 aziot
Ji. a,laligesat titioationcia1L::44
Luie

tr.,etd

1.41.1v1

aril An!

erf:, al say' tkArct

57.ra1tgo1c ;11:130 ..m ,s ;;P 011.1 sit
,
, fie%) zi.11.1,ax

•

i.tAl,
:

:r)

rtov

;gel.=

ev.1 J.?

nr:gt vat 'to .3:41.trio,
-

vedt : :rnsit
:art: ;1,11.bese -: m tterfw
:
,
tzr•oac It) rcu.:10v /rreair:q
c,t
tezir, ,
ie:on bas %1Jaod
Sr21-3,71•ou

•11 34iso. te.
.

eAdh

11 .- 1.1:4;Jtis
.

f Y:',

tfJIf.

.trle n 117

et 11

LZr 4
-

• ';
Lfl

J147) Jail:

611.rc

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

,F ;:-17

it-.:!aliviat

•

$.1.1144 ae q3
NO:144m1,1-xl!

Ice

vzou •vr.v

•'L

tteciLl

4:1 -.;

rf7q4s Zentoaut, iselars t

imri,-irf
nt

1 •Id;
kas

1.e.oE 'to ewe iv :to
.b1P-

ov.a .7 .

efl

,t,:r y
ear
0:1114

1. t I t:
2

tn boAas

ttuf

.tIt5nel USW c;
(•.° J
tvc

a7•1, £.1r.fry4

eril rrol:..c..ip

eleOL.If tr:

L.- Joa. "10

4.4 r

ow:0

rttrrita7

Federal Reserve Bank of Atllanta.
Controversy between Board. and Comptroller Dawes as to assistance
to citizens First Natl. Bank of Albany, Georgia.
May 16, 1924. 14.1 to 146

.1, Li a

:on

bit eri

alma ate* Ilk :1

.e3 LIM

Dr. Miller reads report of Federal Advisory Council which rather
feebly favored an increase in the earning assets of the systaz.
May. 20, 1924. 148
Federal RePerve Agent'
C.S.H. criticizes action of economy and efficiency easnittee not having
reported on question whether th_e monthly reports of the
F . Agents should be cut down or di scontinued.
Jan. 17, 1924. 6

sisr

:irri;:Npai3 n1 143/ '11•.'

-A

The Council, Eddy said, voted informally in favor of the
reappointment of Dr. Miller on the F.P. Board.
May 13, 1924. 142

De idle:ill

kftr11.17:,

It was pointed out that the old reserve requirementg would revive
as to all banks so withdrawing, and also U.S*.R.S. sec. 5202,
limiting liabilities to 100% of capital.
Council finally voted not to reccmmend a rule for the McFadden b
May 13, 1924. 139

•Jrie,11.rs!fl

azigavre

The Council thought, if macte voluntary, none of the large banks
would leave but that many small banks mielt.

;T:•z!.',1., i5V;1!

'Li

TL
eE nc4,1 ciettw

The Council stated informally that a majority favored making
membership in F.R. System purely voluntary for national
banks, but not at the present tigke.

:
46on.ex

ao4

(LI,' tit, 1
4

rt.
,

ht 4ii.r!olts

„e's

.ca

all

4E44. i SI

:Legriftk
eL

Warburg said the Council would reconsider this recammendation.
May 13, 1924. 138

J:Iet;do

rio ter.""rt..44o ..lot•r cro.c. 4.!
,
.
i

oaozLV

Sad .17"

elori saa se 4 Neft.iltrt:,
-

,ar.r.lorrias
-:41,):

' r
1,
-etz•-. •"
bee'13a z

4.1

irebn

.
4

0...1

tas

s r._
1

o$
: ft6
,
..)er

tea go Lit ad if iG:114
zeibd,ine crt.31/eao
etietco

)t •12
roii% t

L2a$ssr

,f)rdiloL. o.c h:
1
. ,an
-

vw.trNod
es

aeonotrilia e,;.J.:

4 .:4814.qierxrLr.t
,-

necio

Federal Advisory Council (Cont.)
C.S.H. said all favored extending the power of national banks;
that 4 out of 6 of the Tpointiva mmbers opoosed cutting
dam the per of state member banks as to branches; that
the 2 3x-officio members joined with 2 appointive members,
thus making a tie and preventing the appointive' members fran
taking any action.

ri0011 0pn .:t!) 1,141011
z

imica

Federal Reserve Bank of Boston
Board tells Gov. Harding that if he asks for it he may have a
6 weeks leave because of ill health. Papers say League of
Nations is to ask him to take financial charge of Hunary.
Feb. •23, 1924. 43, 44.
See - Harding.

-68-

Federal Reserve Bank of Boston (Cont.)
Gov. Harding asked C.S.H. if the layering of the N. Y. rate to
4% was caused by an y suggestion of the Board. C.S.H.
said No.
April 30, 1924. 126
See - Harding
Gov. Harding asked if the Board approved the N.Y. reduction in
connection with any plan under t h3 Davies c cmmit t ee report.
C.S.H. said No; Mr., Dawes report was barely mentioned an/
not .in connection with any rate reduction.
• April 30, 1924. 127
Federal Reserve Bank of Cleveland
Smelad tells C.S.H. that the F.R. Bank of clevIland had. rented
rooms in its bank building for the use of the Republican
Natl. Comaaittee for the National Convention.
C. S.II. is very much disturbed at this.
May 13, 1924.

.111 t5 rtett44'..;;.•
,

C.S.H. tells Senator Glass of above. He deplored this and feared
it might injure the F.R. Sys t 3rn; he said son. Heflin
would seize on this; that he feared that if the Board
ccrald'legally and should insist on a cancellation of the
lease it might serve to increase the trouble; that the
Board should go on record as opposed to such leases, and
perhaps send out such a communication to all the 7.3.
banks, but whether to do it now or wait puzzled him
greatly.
May 22, 1924. 151

,61
I

,
..bt .14
7
*P:

•

-1
• St
4
Ift. 41 dt:1:orv
-0
'ND N
.mee

edt

lo locom ckttb
rzl eaam%*at ;as
r_ • 'nil" .06 NAY, •
I

:z.;e.J1 ';‘) Ntt

-k•

.X
C1
ed

OSI 311

81.% eta'

Gov. Strong told C.S.H. he talked with Sec. Neils= about it
yesterday and he was very much disturbed about it.

Ll.e.•!,o
1.0 inse.

,a: tat
OiE
!A

•Vei.

a‘:

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

Winston said he had called up Panchen. Hho said the Repub.
National Coanittee had been in possession since May 7,
and that the Uecutive Comm and the full Board both
approved and vted for it.

i Ono!

a lei 14a

:
•

4110

ev,.i7.:0014
,

L'LIX 2,
'

Eddy gives C.S.H. a clipping from a Cleveland paper stating
that the convention headquarters of the Repub. Natl.
Cotanittee in the F.R. Bank building had been transformed
fran a bare room to a suite of offices partitioned with
newly painted metal, etc.
May 23, 1924. 156
C.S.H. told Under Sec. Winston of the lease.

ne fr,I

3J 1:A

temi

elms.-off
1.10. .
rro beVzwiei
.F.

.
,
,
:1117&
.*SO =± 1MS/4 • -. .S• 1"i'te Lac, ,,r;yo oe
N.; rv-Au ..d
II! mob
notr;
4 T1

Nri1 V.4ii

.14

te-ifl

142

Winston at first was inclined to minimize the matter and said
there was no politics in it.

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

-69-

Federal Reserve Bank of Cleveland (Cont.)
C.S.H. said. he assumed this was true and that civic pride was
the only motive, but pointed out that if known it might
furnish the basis of an attack which mizht injure the
System; that Sen. Glass said McAdoo and Heflin would
use this; that if the DemocratS discovered this a similar
lease might be demanded. in the F.R. Bank of New York.
Winston asked C.S.H. what he wanted. C.S.H. said the best plan
-mould be to have %as lease quietly rescinded; that as the
contract was made he doubted . thether it could be rescinded
.
except by consent of both parties; that the Board should at
least at once place on record its di &approval forbidding
future leases to any political organization, sending a copy
to each F.R. bank.
C.S.H. further pointed out that while the lease was said to be
purely for clerical purposes, a newspaper clipping referred
to "The Convention Headquarters in the Federal Reserve
Bank building," and t'
-‘at he feared the stationery of the
Republican Cannittee would have some reference to the
F.R. Bank building.
Winston agreed this would. be bad and said that cur Board had
a right to see that no action by a F.R. bank, in the future
at least, should be allowed vthich might subject the system
top ohi tic al attack, whether warranted or unwarranted.
.

"Tr,j

•

Winston fintIlly said he would at once consult with 'Sec. Mellen
about it.
May 24, 1924. 156, 157, 158, lga.

NLL

•

; a .-...r.%)t't
;,
1 7.
al.;• ).
11'! fkrun:

'II

;1:
-

Parker Gilbert called eni said he had. heard of the rztion of the
Clevelarrl Bank and thought the Directors had acted most
unwisely.
May 25, 1924. 160

• kizl`
•

(Um 1,41(.12:
.
&lam iocv 7,4A et
t.rtrittct

,11

•

tIV et, JJi

•
:'.

rro
II 11

ktot

C.S.H. introduced a resolution condemning the lease by the
Cleveland Bank and directing that a copy be sent to it, and.
after the elections, a circular be sent to aach F.R. Bank
forbiddirug leases to political comittees. Passed
unanimously altho Platt voted against send_ng the circular.
May 29, 1924. 173

tetertI,

`10

seLeer

cti.i la
!. j
(let% f!
evi.turAlla

ik.

;to I:41'4
ata/

4- 11
2 -

'111e3.trut‘

% fi.'hfa
7,

' 2.4 t
.11o sxvi

•

16.

The Wash. Post prints an article from Cleveland to effect that
all eyes were fastened on the vaults of the F.R. Bank where
-mere kept all tickets to the Rep. Convention. (See sc. book)
June 6, 1 924. 180

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

Federal Reerve Bank of Cleveland (Cont.)
The Fed.ral Reserve Bank of Clevelard replies to he Board
resolution, stating that it caused great excitement in the
Board of Directors, and vaguely intimating that the Federal
Reserve Bourd had no jurisdiction over the matter.
The resolution seLd, anong other things, that the Directors gave
careful consideration to the obvious iifference in the
points of view of the two Boards, which difference it
sincerely regrets, that the chairman is instructed to convey
to the Federal Reserve Board its unqualified belief that its
action and that of its officers was varranted and governed
by no other consideration than the Obligation of community
hospitality, sound business management, and its own belief
in its authority over the idministration of such affairt.
The resolution was proposed by Mr. Williams, Stambough and Knight
and was unanimaasly adopted.
June 6, 1924. 182
The resolution was accompanied by a letter dated June 7 from
Federal Reserve Arrant Wills giving the particulars of the two
leases:1.

Lease to a non-partisan convention coamittee.
Jan. 23, 1924.
868 sq. feet from Jan. 1 - June 30, 1924
rental - $300 per month.

To Repub. Natl. Committee:
8500 sq. feet for 45 days from May 8, 1924
at a total rental of $7500, which includes
cost of partitions.

Wills said in his letter 'Ito the beft of my recollection I have not
seen our Board so stirred since the organization of the Bank."
June 6, 1924. 183
Smead tells C.S.H. the rentals were fair.
Federal Reserve Bank of Minneapolis
See - Mitchell
Rich
Federal Reserve Bank of New Ya0z.
C.S.H. visits.
Mar. 10, 1924. 71
Federal Reserve Agent Jay confers with Board as to whether German
trade bills (not bankers acceptances) payable in dollars
in U.F. drawn by Germans against Germans, were eligible fa
purchase by federal Reserve banks.

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

Fed3ral Reserv3 Bank of New York (Cont.)
Bcard finally held they were eligible.
April 5, 1924.

105 to 111

Gov. C. returning from Nev York, says N. Y. d.irector. want to
lamer discount rates from 4i to 4%.
hoard finally voted it would approve if request made by N. Y.
April 26, 1924. 124
April 28, 1924. 125
Exec. Conmittee ratifies N. Y. request to lower rates to 4%.
April 30, 1924. 126
Gov. Harding says this was inspired by Gov. Strong.
May 5, 1924. 129
See-Discount rates
Harding
Conference of Governors. long diussion on ciiscount rates by
Gov.. Case et als.
May 7, 1924. ao to 133
Gov. Strone Ilan for open market purchases.
May 22, 1924. 154
Gov. Strong tells of dispute with McAdoo itho asked him to release
certain rooms in Equitable Building leased by the Federal
Reserve Bank of New York.
May 22, 1924. 156
Open market committee meeting. Gov. Strongts remarks.
Meg 29, 1924. 168, 169, 170, 171.
See - Open market operaticns
Federal Reserve Bank of Philadelphia
See - Discount rEt es
Norris, Gov.
Federal Reserve Bank of San FrarciFco
Sae - Branches
Brock
Federal Reserve banks
Miller's suggestions for Annual Report. 19
Competition with member banks. 132
Treasury policies and. 132, 134, 148, 149 to 154.
Expensea and d.ividends. 136
See - same

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

•

-72-

Federal Reserve Board
Outrank assistant secretaries.
Jan. 24, 1924.

Miller's draft for Annual Report. 19
See - Miller
innual report. 59
Board in hopeless morass.
Jams charges vs.
Votes.

7h, 76

See same, principal heading

Exportation of silver to U.O. banks in Orient. 100 to 105
Reed consults

as to bonus bill.
April 12, 1924.

Report on branch banks.
See - Branch banks

114, 118.

117

Miller takes oath of office.
June 17, 1924. 196.
See - Fiscal Agent
McFadden bill
Miller
Regulations. Branch banks
Report, Annual
Federal Reserve notes
C.S.H. and Miller clash on Annual Report.
Feb. 14, 1924. 19
Separate ratio for deposit and rates. 62
Federal Reserve System
Platt suggests making membership voluntary.
May 13, 1924. 139
See- Feddral Reserve Bank of Cleveland
Repub. Natl. Commi t tee
Fiscal Agent, Federal Reserve banks
Under Sec. Winston, without any previous consultation with the
Board, notified the Federal Resvve banks, that, because
of using up the appropriation, up to July 1 (when the new
appropriation would be available), he could no longer ship
U.S. currency in exchange for unfit notes unless the
Fed ?ma Reserve banks would pay for the postage on the
unfit notes, and take out and pay for insurance on the new
notes shipped.

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

-73-

Fiscal Agent, Federal Reserve banks (Cont.)
Wyatt advised Board that the Federal Reserve banks could pay
postage on the unfit notes, as they haa hitherto done,
even though Congress might not reimburse Chem, they
could not lawfully insure the new currency shipped to them
as the title did not vest in them until received, and that
such action would violate the law swainst creating
deficiencies.
The Board wired the F.R. banks to make no commitment as to
insurance daarges. June 9, 1924. 184, 185.
Winston writes Board that he labs temporarily discontinued the
Fiscal Agency relations of the P.R. banks with the
Treasury, forwarding it to Washington, and receiving in
exchange new currency, and that if they desired new currency
they must pay the cost of dipment.
He cited the old practiCe, before ta13 F.R. banks were made Fiscal
Agents, w. en each bank had to pity the cost of shipment to
and from the Treasury and Subtreasuries.
He said that after the abolition of the SUbtreasuries, the
Treasury, as a matter of convenience, ahthorized the F.R.
banks to receive for the Treasury unfit notes and the
Treasury paid the cost of shipment to id from the P.R. banks.
He added:
"Since funds for this expense are no longer available and
will not be until the beginning of the next fiscal
year, on July 1, the Treasury has been cbliged.to
withdraw these Agencies temporarily aril return to the
original practice. It is, of course, unfortunate that
the deficiency bill did not pass, but theTreasury is
• faced with a condition it can not remedy, and unless the
Federal Reserve banks are willing to assume the expense,
shipments of nes currency tel the F.R. banks will cease
until July 1, 1924. I trust, therefore, that your Board
will advise the P.R. banks of the Treasury's position and
your views in respect thereto."
Winston did not refer to the Board's telegram of yesterday, of
which he had a cory.
Winston evidently looks on the F.R. Board as an appanage of the
Treasury!
June 10, 1924. 185, 186, 187.

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

-74-

Fiscal Agent, Federal Reserve banks (Cont.)
Winston told Gov. C. and Platt he had not yet discontinued the
fiscal agency relationship of P.R. banks' as to redemption
of unfit currency.
June 11, 1924. 189

•
•

Winston came before the Board with a draft of telegram to all
F.R. banks stating that he hal temporarily, until July 1,
discontinued the fiscal agency functions as to exchange of
fit for unfit currency; that, until July 1, the F.R. banks
could take in unfit currency, cut it in halves and ship it
to the Treasury, receiving credit therefor when received by
the Treasury; that the Treasury would ship new money charging
it to them when shipped (thus vesting title in them); that
they could then pay thd cost both ways and pay for insurance
as an ordinary banking matter;. that the F.R. Board would
interpose no objection.
Miller said Treasury should agree to ask Congres: to reimburse the
P.R. ftrilcs.
Winston said this could be considered later.
C.S.H. said he pref vred to have this lone without any reimbursement, as an agreement to reimburse would make the service a
voluntary one forbidden by the statute.
Nothing was finally said as to reimbursement.
The Board did not order the F.R. banks to do this, but merely
permitted it if they saw fit to do it.
C.S.H. moved to approve Winstonts telegram.
All voted Aye except Miller and Crissinger, who voted No.

•

C.S.H. felt .tat as Winston had at la:t consulted with the Boart and
admitted its independence of the Treasury, we ought to cooperate
as above.
June .
12, 1924. 189, 190.
Fiume
Met Prince Caetani, the Italian Ambassador, at dinner at Mrs. Reyburd s.
He spoke of President Wilson, saying he did not wish to criticize
the dead, but that he did not understand the Italian people and
was sorely deceived as to Fiume; that by the Treaty between
Italy and Jugoilavia, Fiume was given to Italy while Jugoslavia
got a port only 4 or
miles Trom Fiume; that Hungary was more
entit led to Fiume that Jugoslavia.
Feb. 25, 1924. 51, 52.
(See my talk with Mrs. Wilson in August, 1924, as to this.)

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

-75-

Flat rate
See - Dtcount rates
Fletcher, Capt. 143
See - Citizens 1st Natl. Bank of Albany, Georgia.
Foreign Government debts
Gov. Strong says we must ultimate* readjust the debts of
foreign Govt.. owed to us.
Miller said No.

C.S.H. agrees with Strong.
May 22, 1924.

153

Foreign policy. 2
See - Miller
Robinson
Strong
Forgan
Said, on Feb. 15, 1916, absolutely neces.;ary for F.R
earn expenses and dividends. 137

banks to

Foster, Mrs. Was Hoar)
Mrs. Eugene Thayer telephones Mrs. Foster to go and see her sister,
Margaret Harding. Jan. 26, 1924. 11
France
Kemmerer tells C.S.H. France bitterly objected to having Germahy
placed on the dollar, gold standard,while her standard was
depreeiated; that Germany later might even offer Whelp
France go an the dollar standard.
•
June 9, 1924. 187
See - Kemmerer
Freeman, Bishop
Glover tells C.S.H. that Bishop Freemen, at the time of President
Wilson's death had come to him to ask if he would consent to
have him buried in the Cathedral, saying that Ars. Wilson
wanted this very much, and that he, Glover, had said:
"I have fought that man bitterly for many years, but
if you and Mrs. Wilson want to have him buried in the
Cathedral, - the future Westminister Ablay of the Country,
I.shall not object, but •fill consent."
See. - Glover.

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

-76--

Funk, Antoinette
says C.S.H. is McAdoo's .choice for Vice President, and hopes he
will be ncminat3d.
May 9 1924.
133
Dined with us last week. Is trying to raise a fsand for McAdoo.
Bertie eplained that we had never contributed money in -iny
campaign, not considering it proper in view of my position on
the Federal Reserve Board. She a4'ead this ,was a proper attitude
to take.
May 13, 1924. 140

•

Garrett, Mrs.
Tells Bertie Margaret Harding once spoke to her of her mother's
suicide and said she would go that way also; that she had
told her she had said to Hawkas she WOuld kill herself if he
did not marry her.
Jan. 28, 1924. 10
Garrison, Sec.
Glover says McAdoo asked Garrison to remove his Philippine
deposit of about 1 millions from the Riggs Bank; that
Garrison refused; that later he was crdered, he thinks by
President Wilson, to withdraw the deposit, and he finally
drew it dovri gradually nuking no additions to it.
Feb. 20, 1924. 30
General Counsel, Federal Reserve Board
See - Wyatt

.. .

German reparations
Gov: Strong says if we fix, on the basis of "ability to pay" we
should give our Allies similar consideration. Miller dissents.
See - Miller
May 22, 1924. 153
German trade bills
Long discussion between F.R. Agent Jay and the Board as to whether
trade bills drawn by Germans against &amens of foreigners,
payable in dollars in TJ.S., indorsed by the n3w German bark
and bou.iiht by ow* member banks, - *ere eligible for lurches.
by F.R. banks. Harrison advised F R. Bank of New York they
were eligible. The Board finally ruled they were eligible.
(They were not bankers acceptances.)
April 5, 1924. 105 to 111

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

-77-

.. .

German trade bills (Cont.)
Sec. Mellon said it was not necessary to conEult Sec. of State,
as it was a purely banking qu.estion.
April 8, 1924. 111
Germany, U.S. Treaty with
C.S.H. claimed that the Senate reservaticn on ratification would
be violated in spirit at least, if our Board permitted Buck,
Asst. F.R. Agent of F.R. Bank of San Francisco, or Gov.
Strong, to go abrO(u to help the Dawes Commission.
The Cabinet felt the same way, .:And authority was denied.
Jan. 3, 1924. 2
Feb. 23, 1924. 42, 43.
See - Brack
Robinson
Strong, Gov.
Germany, Dawes report
See - Dawes report
Germany, Treaty with
Rep.arations Coramission
Gilbert, Under Secretary
Thinks directors of F.T:. Bank of Cleveland were very foolish to
lease rooms in bank to Repub. National Committee for the
Convent ion.
May 25, 1924. 160
Said that Cotton, McAdoo's partner, was conspicuously identified
wIth Wall St. influences.
May 25, 1924. 161
Gillett, Speaker
C.S.H. and H.P.H. dine at White House to meet Speaker and Mrs.Gillett
April 23, 1924. 133
Gionini
See - Bank of Italy
Glair., Senator
Tells C.S.H. tha Board 3hou1d examine all bran3hes of 3tat3 member
banks where the state examination is not accapted, no
matter how many and no matter shat the expense.
Feb. 25, 1924. 50
Col. House tells C.S.H. that Glass 3.nd Sweet would make a good
Presidential ticket.
Mar. 10, 1924. 71

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

Senator
Glass, Senator (Cont.)
Deplores the leasing of rooms in the Federal Reserve bank buildin
at Cleveland to the Repub. Natl. Coranittee for the National
Convention. He said if Sen. Heflin or McAdoo found it out and
denounced it, he could only deplore it.

He also said that for the Board to insist on cancellation might only
increase the trouble; that the Board should go on record as
opposed to such leases and. possibly so notify cal th3 F.R. banks,
but whether to do it at force puzzled him greatly.
May 22, 1924. 151
Also :,aid the F.R. banks should go into the open market purely for
sake of earnings to pay expenses and dividends, unless such a
course would so ai sturb the market as to cause inflation; that this
was clearly the intent of COrIrrille; that the Tret.a...ury rauet come
to the market as it finds it, an', should leave the F.R e banks
alone and cease interfering with their operations.
May 22, 1924. 151, lt2
Never mentioned Miller's nomination for F.R. Board..
May 22, 1924. 1 52
Gov. Strong said that while Glass disliked him and. attacked him while
Secretary, he recognized his ability and honesty and felt that he
was the type of man for whom he should like the opportunity of
voting for for President.
May 22, 1924. 156
C.S.H. tells Board •Arhat Glass said about the lease of the Cleveland
bank ro ems to the Rep. Natl. Conn it ',se.
May 24, 1924. 158'
C.'3.H. believes i'ilcFadden knows that Glass . 1•111 attfAck him for not
asking for the opinion of the Board on his branch bank bill, and
therefore, after reporting on the bill, he d.sked the Board for
an opinion.
May 26, 1924. 162
Glass's secretary tells C.S.H. the Senate Co:matte reported favorably
the McFadden branch bank bill while Glass was in Philadelphia
making a speech; that there was a gentlmen's agreement that the
bill would not be taken up while Glass as away; that Glass mei
very indignant and tvould fight tra bill in the Senate and would
defeat it.
May 28, 1924. 167
Glass speaks freely to C.S.H. about his Presidential boon; said
that Sen. Borah told him that if nominated, he would be glad
to run with him as Vice President; that he thought Boma was
not serious, but Sen. Swanson told him that Borah hgad spoken
with him seriously to the st41115 effect.
May 31, 1924. 174

•

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

Glass, Senator (Cont.)
Glass said that McAdoo was severely to be critio.ized for not
coming out squarely on any great issue, - especially the
League of Nati ons
He said McAdoo favored a Referendum on the L. of N., to be held
apart froni the alections to got the opin on of the people,
which he, - McAdoo - believed to be overwhelmingly in favor
of the League.
May 31, 1924. 174
Glom said that President Wilson, just before he died (Feb. 3,1924)
wanted to come out publicly against McAdoo for his course
in avoiding the L. of N., and his attitude on the bonus, and
that only with g eat difficulty he and others persuaded. him
to poitpcine this.
May 31, 1924. 174
Glass said McAdoo told him it would be bad politics to press the
May 31, 1924. 174
L. of N.
Glass said the Senate Committee justified. its action in reporting
the McIadden branch bank bill by the fact that it had
changed Sec. 9 so as to permit the entrame of all non-member
banks with branches established before the taking effect of
the bill.
Glass still Ass bitterly opposed. to the bill as an ,Ittewpt to
legalize the illegal Board resolution of Nov. 7, 1923.
C.S.H. explained to him that his compromise adopted with Sec. Mellon's
help, in the Board's new regulations, in 3ffect so modified.
the above resolution as substantially to annul it.
Glass said he was very uncertain whether merely to speak and vote
against the bill on its merits, or to arrange such a long
debate ass to defeat it.
(Seewletter of C.S.H. to Glass on the bill.)
May 31, 1924. 175
Glass ,aid. Miller's nomination was a.K.Id by the committee without
a meeting, and that there was no opposition on the floor.
May 31, 1924. 175
Glover, Charles
C.S.H. and H.P.H. dined with Senator Bruce of Maryland.
there.

Glover roe

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

-80-

Glover, Charles (Cont.)
Glover began to talk of his fight with Sec. McAdoo and John Skelton
Williams about the Riggs Bank.
Ho said that McAdoo telephoned asking him to call at the Treasury;
that he felt that if the Sec. of the 'Treasury wished to see him,
he should call at his office and not ask him to come to ,the
Treasur yi
He said he finally decided to go, and told in a gen3ral way of
the quarrelsome scene with McAdoo, in which McAdoo charged him
with being responsible for certain editorials attacking him, which he-- Glover- denied.
He said Asst. Sec. Breckenridge later told him that McAdoo asked
Sec. Garrison to remove his Philippine deposits of about
millions from the Riggs Bank but that Garrison refused; that
later Garrison was ordered, - he thought by President Wilson, - to
withdraw the deposit and finally (thanked it down gradually and
made no new deposits.
He then became very excited (he ASS recovering from a severe
operation) and said that McAdoo and Williams had conspired to
ruin his bank.
He then went on and said that at one tine he thought he could prove
that President Wilson was a party to the eonrpiracy, adding
rather grudgingly, that that link of the chain was not proved;
I thought this had gone a-lout far enough and I interrupted him and
very quietly,but very firmly said: "President Wilson was not a party to that alleged conspiracy
nor to any other. The President has to trust his cabinet officers
and use their eyes and ears. They may, of course, deceive him
but he can not be held responsible for that."
than added:"President Harding transferred the naval oil rsserve from
the Navy to the Interior Department on the rlcommendation of
his cabinet officer, Sec. Pall. The country believes that was
a betrayal of the public interest. Do you believe that President
Harding was in a conspiracy to betray the public interst in
ordering this transfer, Ithen apparently, he was deceived by
sec. Fall?"

s.•

To my surprise Glover at ance changed his whole manner, became quiet
and said: -

-81-

Glover, Charles (Cont.)
"I think your point is well taken. No President should
justly be charged with any illegal intent when he accepts as
true the advice given him by his Cabinet officer."
Glover, to my alrpriso, "cane down" very quicidy. Had he not,
there would have been a scene Which he would not soon have
forgotten.

Later, Glover said that on the occasion of President Wilson's
death (Feb. 3, 1924), Bishop Freeman had come to him as a
trustee of the Cathedral to ask if he would consent to have
the President buried in the Cathedral, saying that Mrs.Wilson
wanted this very much, and that he (Glover) said to the Bishop:-

I
b2eLe.:t
:a, r
bts:s.usa
,e
%
allq1:2Aq old stu4ien o! .loa2•714,t
.1. f. .1 .410 es o stboqq4,t
!us( Arne sApLCitwr Mont snoilIlw
:ii:1,74t Lf / antleuzat
,Apv nos:In:Ian ne:a/
ifr :atktenk-.
satbd:lw
re/k
. iL64t
:1
tcoqp!: *ea Ge *tam

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

actx

(

a•

Pil,I

sr., 1—

**V:`,

4
10Y ".„1.4,ne„.: Aoz(:
&.•,.1 • ;.1
/41q1 1;1' 'ill'I.:
•111

sPa' ee

onfvta
o.be Itz

_r•rik:

rorti•T

-;$-rfiq r
"!r. %LI: I 3sx.....;

fN,P.

?,*;

$AAT.r
ner

,
Ipl 1,c) a er70-;
;LL.1 xvoir
ocislIw

!on

"I have fought that man bitterly for many years, but if you
and Mrs. Wilson want him buried in the Cathedral - the future
Westminster Abbey of the country - I shall offer no objection,
.
but will cons ent "

,7r .1
,
sat lac
4
;lege frie;. :
Mat, cud it.gf
$ori

•

.
zt,
viur.c.•

mod: 1

His manifest feeling that he was the Cathedral (L'etat cleat mot)
was really grotesque in its humor. I was tempted not to
let even this pass unchallenged tut I let it go, as, to do
justice to him, I was iatisfied that he was not intending to
attack President Wilson, but rather to make an amusing
display of personal egotism and vanity.
The picture of "Charley" Glover an an arch-episcopal throne
graciously permitting Bishop Freeman and rs. Wilson to
.
,
interr President Wilson's body in the Cathedral it enough to
make a horse laugh - if a horse can laugh!

!OLIO X cla

z
. .;

As we were going out of the smoking room, Sen. Bruce's son said:
"I wish I could have told Wilson Airlat I thempht of html
(Meaning how he hated him.)
I said to him:

vls!7
,
tY st„sviic1

•

"President Wilson will be canonized by our daillren and
our children's children."

.11ri

to,e
o:
tf

:
te

.--.
';'k'S .1

,•••

f: ne

I..:

t.v

1 7C

Glov r smilingly said to young Bruc a: "Be careful or Mr. Hamlin will annihilate you."
Thus this incident ended..

1'.
:

Feb. 20, 1924.

30, 31, 32, 33.

-82-

(.*a60)

quoy, 111114
ed
colvta a:f

.„1101‘.xt

4
4 :CTimblat
L4:110:

:
a& a$a.e-)!`-,4, e. :se
“..lir“..q/Io 443: 7hn
0,1
,vnooa J.311 till:1w

tlf

i'erk..):: ec-414.n" t eat:x(11AS V.:
140e2 Jto 119tCr ftvoal LIVOsA,

t 4ors

6P,

Glover, Charles (Cont.)!
C.S.H. tells Mrs. Wilson of the above cony aisaticre with Glover,
and explained to her the row between McAdoo and Williams
and Glover over the Riggs Bank, saying that Glover started
the controversy by inspiring the .editorials attacking
McAdoo (as C.S.H. believes in spite of Glover's technical
denial); that Glover was a coarse, dominating man who tried
to dominate McAd.00 as he had other Secretaries of the Treasury;
that he felt that McAdoo arri Williams in their rage had tried
to injure Glover and the Riggs Bank; ani explained to her hit.
interview with President Wilson about Williams attitude and
McAdoo's conduct ac3 to the tax deposit3.
May 4 1924. 128

40.;
a4

,t
$5104,,t,

.11.61:03101

ctoisatz4o
i
1.7.0411W inettsfIc
°slot) Lay/ nameell
a at win o:
03
4 Wei, toll

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

(tow, )

c-",.! lt

,
t%;1

17.t

14 104 '10
:eltea aO

e
,'

L -rfri!,u5
.

ai
be zi*

,
I..45L 3 I

fia,1
toiqud

r4s;

803:7;.:n3

•

;1,1 tel-tud
zirla

-1(na

Calte0 t'!.3

.
tali*41 11A1 oiJ

;
:7 itt!ITV

1
,(4.sel it, .C41) ;flee.

'
,
,
,rati Is
elY

A08II,

4seme
ve :0A u
fitcloo lf* ji
i

saw
°

•

Li
75 rt arrart
R

4•

-C.S.H. tells Mrs. Wilson about his talk with Glover as to interring
President Wilson's body in the Cathedra.
May 4, 1924. 128

Le
- lo

eL
itp

Gold
Gov. Strong says he believes England has a large amount of gold,
not stated in its financial reports, received frcm France and
left over from Russia, with which it can make interest payments
on its driot to U.S.; that he believed our imports of gold
will increase rather than fall off for the balance of the year.
May 22, 1924. 132, 133
Government securities

131 to 134, 147 to 1D2, 168 to 171

See - Dividends and expenses
Open market operat ions
Governer of the F.R. Board.
See - Cris singer

75, 76, 130

Governors
Dr. Miller says the fact that all the Governors are opposed to
expressing the deposit and note reserves separately
absolutely conNinces him of the necessity of doing so.
Mar. 5, 1924. 63
Governors Conference. 129 to 133, 140
Comptroller of Currency
See - Discount rates
Open market operations
Grgir son, Admiral
Gave out to Associated Press a copy of the list of hcnorary pall
bearers of President Wilson, without mentioning
name.
Tells C.S.H. it was a, stupid blurrier,- that my name was the first
that Mrs. Wilson selected, and. that he will alike the
correction in the press. Feb. 5, 1924. 15

-83-

$ePisid0 •'Lev° .

(

,teral;` diw ro,; e.,411A vn at) cvocS:..,
,
oab.A0V. astavzed
szo.t.t.f.tif
4 AMAirf:
voL)3h.11.1

'10
tecritaqxe .ti;
1'010 ICIPVIZI Lan

404!7
,

Gregory, Attorney General
See - Daniels

e•
,
e:140t1 svsL.Lu44Y Oa
v"2fvo.L0
; La
.
s
o;)
-;9 vo
.
1 s1iivL': se
b*JU oriv; Jazz
h. .d.S.C
,
1A4Of.116
ivat "LT
sd
•
,11117
ie:1-4
te'i e5.61
V4,4;!: f#f"art,ril
t,:x.
it.t.a it- Igzit mot,
Ir e
•
11.ou.:;'07
.1!W
iuse.1.1
2.4.1 t

,•

Gregory, Nina
Is visiting Mrs. J. P. Morgan at Highlard Falls.

June 7 , 1924. 181

8S1.
ff.

•)..•!

Hale, Mrs. Chandler
Talks about Gertrude Myer.
Feb. 16, 1924.
June 1, 1924.
June 3, 1924.

4i i t v,

.4k1.;..*4440
-8SI Jse.c ,t

5(1

P11)
e tot'
11#11'S 0011.CII CX)11
;tat eter
$$ttear..461.

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

Green, Theodore Francis
Lunches with C.S.H. & H.P.H. to meet Mr. and Mrs. John Davis.
Feb. 24, 1924. 38

be31144
tele°

te:k!

ti.go Deveiltc
eoristLedeiVia
10
1 •

Berates Sen. Hale for voting for bonus over Pr3Adent's veto.
June 1, 1924. 176, 177

•
Talks as to Mrs. Miller

June 3, 1924. 177, 178
-

L7.1,

Talk as to Gertrude Myer's statement as to Mrs. Wet.
June 3, 1924. 177
June 12,1924. 193

It14
.-

cr*

•

P.. .

e!.-11 `to

Talk as to Mrs. West ind Senator Fred Hale

June 12, 1924. 193, 194

- et.

4.4

26, 27.
176
177

&s0'
'ILaqi evleseat
u
,oEiruIjt oT ltlaiicntia

1.43r1
.11

C1J

Lit
fix

Mrs. West told some one stle was 'practidally engaged to Sen. Hale
June 12, 1924. 193, 194

Orqi.

twoost rteci(

e
:

v.43,:.

irci
!•ru- ,T,

&kw MtS:1
iL

'IP

Jab
avelq..O
uo
. ,
3;•.e.t.,;,!. 1'Tio..leite.ecr

-,netactior 4,1v:tit
,I•t,cocies rtool
. i .4
Cor

• ,.•"••.' •

Hale, Senator Fred
Mrs. Hale beratec, for voting for bonus ovar President's veto.
June 1, 1924. 177

Hamlin, Anna
Says Margaret Harding had violent fits of coughing in which she
raised a good deal of blood.
Jan. 28, 1924. 10
Feels that Margaret Harding may have ha. some responsibility as
-t
well as Hawkes, - that • she was always telephoning him Ecid
asking him to take hr out to lunch.
Jan. 28, 1924. 11

s: fer
oriP irL

•

...,••••.**. •

-84-

Hamlin, Anna (Cont.)
Returns from Margaret Harding's funeral and 4ves us the
Jure 30, 1924. 11
iartioulars.

. ivtei

Says Sinclair or Doheny had employed Sec. Lane's son before Sec.
Lane resigned.
Feb. 5, 1924. 17
Leaves for Albany with H.P.H. to attend the Albany Tercentenary;
Anna takes part in the pageant.
May 30, 1924. 174

so rrl,

Anna says the movie' agent at the pageant said. he would be Aad to
sign a contract with her for the movie stage.
June 7, 1924. 181

•

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

Hamlin, C. S.
See various headings
votes

,
ci

;

7711
it ID 7:

Hamlin, H. P.
Mrs. Barret tells Bertie that Margaret Harding said she told
Harikes she would kill herself if he lid not marry her.
Jan. 28, 1924. 10

.
-t

iLL

Leaves for Albany to at tend the Tercentennial.
May 31, 1924. 174

-It!)

Spends week-end with Mrs. J. P. Morgan at Highland Falls.
June 7, 1924. 181

.P1
Mrs. Morgan writes Bartle eulogizing 'President Cleveland.
See - scrap book

lo.1.0oi..
.V21 ,LC stw

t ez
,

Hanihara
C.S.H. speaks in N. Y. at dinner to.
Mar. 10, 1924.

Tero iunod lo%
VcI vo.s.ei 4 1

C.S.H. and H.P.H. give dinner to.
elali

a* si
,.Q!

lo a Jfl flieoZv bad
Let too,F4
.

Hanihara shows c.S.H. a letter to Sec. Hughes on immigration
and asks him to criticize it. April 10, 1924. 112
C.S.H. calls up Hanibara who says the letter has already gone to
Hughes.
C.S.H. points oat

011141maNe
at. ,
4.141

April 10, 1924. 112

5floam.

.:"..nrsai
.::

71, 72

U
117,1 :
1
axaw;i4 a.sw Gift
nit!u

If .#,TI

FIllt%g

CP) ItIf CAL6

ek; .

SOMS

criticisms.

tr.

Irap,
slt

Hanihara fears his Govt. 'will not understand huN powerless he is
in the matter.

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

-85-

Hanihara (Cont.)
C.S.H. suggests that friends of Japan write President Coolidge
bagging him to amounce in advance that he will veto the
bill if it passes with the objectionable clause in it.
H. said he could. not ask this of Hughes.
C.S.H. believes the clause is a tirect affront to Japan.
(See scrap bcok for Haniharais letter.)
April 11, 1 924.

112, 113.

Bitter resentment in Congress over H.'s latter to Hughes.
eiv
N.Y. World demand:3 veto.
C.S.H. wishes H. had consulted him ard had. heard troll. him before
April 15, 1924. 114
he sent the letter.

LIO,te
.1e4v.

0141:411.4:::

Hanihara says Hughes said President Coolidge and he were in full
sympathy with the feeling of the Japanese Govt.
April 20, 1924. 119

1031fa
4
;.-2

Hanihari dines with C.S.H. ard H.P.H.

Opened a bottle of 1811 sherry and C.S.H. gave a toast to:

i44iA711
kc"
(

ua,
t.11

.eLki.tral1t.11.7!

•

IEVA

"His Excellency, the Ambassador of Japan, and the great
country he so worthily represents."
envI,

May 23, 1924.

"of'

'77VY:". .37:1
"

.1 al

. .

ion!

ST ,1T
SI:

.
no ti

enos)

it :Is
10C .101

L/14'1A

1.1c1.

.ce.i! (LI le
...A

lo i
1sV1
.1

ie:i

s
i
\

,
.
vet. J.

ir1,1

Hanihara says he has given up 311 hope that Coolidge will veto the
May 23, 1924. 157
iranigration bill.
Harding, Gov.
Away from Boston when Margaret killed herself.
Jan, 28, 1924. 8
Writes C.S.H. the Doctor has ordered him to take 6 weeks rest and
that he is to sail for Europe 'larch 1 and asked me to get
passport applications fran the State Department.

)102& -car

cit.; ell

The Board authorised me to say it would grant him leave of absence.
The papers

• • •
ad :660::ewoq ODA IIRP,

1ptlacr :1

t•Lue"-J.

iit

r!.t.

15?

ay he is to take charge of the. finances of Hungary.
Feb. 23, 1924. 43, 44.

Tells C.S.H. the Doctor rays his blood pressure is excessive, that
he was not at 311 well, and that till Doctcr had ordered him
to take 'a rest for 6 weeks.
He said he had received no formal notice in matter of Hungary.

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

-86-

A'SA.61:14I

Itoii.L.øO

.3 0 JUN 1.11w or,
,
:
.11 cr.'. tiei:JA,In

tat31-fi
ti

411 IF; r)ifif,).711.3
do *la
iv! strois,aicr

11 ILI,
:

.
z.k10- 1
,1.

,r1!..7,!

a a!

r f semiliu
:liqk
.

1 f.i070

Harding, Gov. (Cont.)
He said. it would involve an absence of 5 years, and that he should
almost certairly decline it, when offIred.
Feb. 25, 1924. 45

s':cerjacra

1.1*.rJa
#

euL in 6;

.e.-1 bias,
1 i're

ti
•

"So far as I am concerned the matter is at an end. I know
less about him than anyone else. I told Margaret 2 years ago
I should not consant to her marrying him. So far as my friends
go, I shall leave them to decide as to their Iourse.

1401 100d qs/,:;; .et0

et.e•rizop ruiJatTatrTe

f.5;1•

C.S.H. asks him about Hawkes saying he would. like to take up the
matter. Gov. Harding said:

.e)Iev is-brus4:tk:
elcAtg mid :3)11 1- 1sed tad hit...mld beiLmcto
.
.JSPI lel iltqA.

td .H

C.S.H. said Heuvkes while at our house seelted an ardent lover; that he
had herd a rumor that Hawkes hal a mistress in Washington.

.
ed

Albat

Clul n! elew se tau eAb11000 lnettbeiel !Var.
axavd audirv,11
, 110 )
1
t.P.ectiviat elf/ 10
J1e1 ti. d4lw xdJacilzox
eil
ii:)S 1114
hvn
o:

.1A01

evaG

d/lw. E.ealb alad/aaF

olerte 1181 10 al$10d

henaq0

13 'ImLiket.16444.ai,vpnellacxg IfY"
"..1Jr1(4!elrol vlia*Lw on ea ylin3

Gov. E. acted as if he had had a shall shock.
Feb. 25, 1924. 45, 46.
Prince Caetani tells C.
that Italy has consented to Hardin.-'s
appointment as financial dictator of Hungary; that Harding knew
all about this ani that the only reason for not having made a
formal tender was that certain details suvested by Harding
had not been completely arranged.
Feb. 25, 1924.
51, 52
Asks C.S.H. if directors of F.R. bank of New (ork had lowered
discount rates as the result of the policy of the F.R. Board.

ri"

C.S.H. said No.
(..1/1 111",
,

aaF., oil /mak

EIP74 'err

V441,7
.

.11ealeA xfilliX lela
8 .4\3t:1
.rut .
Lam

e40' aotz.ofT, orlI

sgetor

J a.tif be:et/3 4AA
bns•I
0;, el ed
.ve&Ptikiklea
ad:, moll ;i101$A021,
14a

.e0heedi lo fvae1 fill A ,tria174
.vfaAnvE lo tet;nbail
.44x ,F4- .psw

:1 v,as

awyAdo e7fe: c
.(1111

,priaerciis al tT.lu5act4, 4001d *Id ,
10'10 tad % )/col
.
,
taki , loyv
8
vH ,o

so .tA.z:21o:f!

ee I

eAT

NI e0..

0.111.

.:- ts .10A 4.0.
4
,1c1
alk'

1411:no'l on 1+7,-- Jt,

ortitiz"
iA

•

Gov. H. asked if the Board would object if Boston did not reduce its
discount rate for some days yet. C.S.H. said No.
April 30, 1924. 126
Gov. H. asked if Board approved reduction of N.Y. rate in connection
with any plan under the Dawee commission report. C.S.H. said No;
the report was barely mentioned and not at all in connection
with discount rates.
April 30, 1924. 127
Gov. H. tells C.S.H. he is certain that the N.Y. rate reduction was
inspired by Gov. Strong, now ill in Gov. Norman's house in London;
that Norman wanted inflation in the U.S. to put the dollar on a
parity .vith the pound. sterling.
May 5, 1924. 129

Objects to paying $10 per copy for examiners reports, to Coaptroller.
Files legal opinion.
140, 141
May 13, 1924.
May 14, 1924.
142

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

-87-

Harding, Gov. (Clort.)
Denies power in F.R. Board to forbid the purchase or sale of Govt.
securities by F.11. banks.
169
May 29, 1924.
Harding, Margaret
Details as to suicide of.

7 to 11, 12.

Gov. H. forbad Margaret's marrying Hawke.
Prince Caetani on Margaret's death.
See - Caetard

•
Harding, Prasidant
Apptintments to F.R. Board are changing it into a political system.
Mar. 26, 1924. 90 •
C.S.H. Introduces resolution on death of, in meeting of Carnepie
Foundation. Passed. April 23, 1924. 122
C.S.H. tells Mrs. Wilson he wants her to tell him in detail az to the
aation.ct President Harding and Sec. Weeks toward? President
Wilson at the funeral of the unknown soldier. She says nhe will
be glad to do so.
June 6, 1924. 180
See - Wilson, Mrs. Woodrow

At enLteit

4/kj.i
r!0:

•

Harriman, Mrs. Borden
C.S.H. and H.P.H.take sapper with, afterwards a mock trial was held
investigating Sen. Walsh on the oil scandal. Mr..Hard. acted as
Mar. 9, 194. 70
judge.

ttdO'jçiv—
Y::%)11 1'41 V:IY1 .1.11!%17;1.

tAfrn

.„A
11 r
N7,na :fclw

. .

"f,itEAW ,t1QqE1
sib
:arron.

a, Ile ;;,, 1or7

See - German trade bills

•
.7

*:nzicit
)

Arr

v.,

.
;7 Pi
n:k.%:

iltql

,C,01

Harvard Club
C.S.H. attends meeting of, at Chevy Chase School, Washington.
May 21, 1924. 154
Hawkes, Stanley
Margaret Harding's connection with. 9, 10, 11, 12.
Gov. H. tells C.S.H. about. . 45, 46.

01'.!

•

A. wt,r7
:1: 1! ry)i

Harrison, George
Advises P.R. Bank of New York it may purchase German tree bills
payable in dollars in N.Y. anl indorsed by a m3mber bank.
April 5, 1924. 105

a1%aci
•-r

(,:dncter
Hereon, Chief Examiner
Tells C.S.H. it is perfectly practicable to exmine state banks
even with 75 branches simultaneously and without inordinate
expense. Says we could armnge it as to California just after

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

-08-

Hertscn, Chief Examiner (Cont.)
we examine the 7.P. bank which would. require a detail of
examiners from other parts of he country.
Feb. 15, 1924. 23

41 all.,1841
,

Tells C.S.H. he has prepared. a plan of siraultanecus examination
of state banks with many branches; that it vias perfectly
practicable; that the cost would not exceed 20,000 for the
Bank of Italy; that it would take 175 .exaniners, cf which 100
could be supplied by the F.R. Bank of San Francisco: that skilled
examiners were not necessary to copy the ledgers and list the
assets and that this would not occupy over 2 days; that after
that the examination would proceed as if each bank were a unit
bank.
He said. James asked him to hold back hiE report .
until he could
ascertain whether these branches had sufficient capital, i.e.
whether the capital of the parent bank was sufficient.
He said one exeminati on would be ample for each year, and that any
further information could be obtained by credit inquiries.
He said the National Bank Act should be amended so as to raquire
only one examination per year and as many more as the Comptroller
might order; that the ir esent requirement forced the Controller
to spend much of his time in examining banks known to be solvent
at the xperuse of suspected banks.
He said, in his opinion, the Bank of Italy was absolutely sound;
that he had carefully studied the last report of the state
examinat ion.
Feb. 18, 1924. 2 7, 28, 29.

•

James says Herson will shortly report that a eiraultaneous examination
of state banks with the largest !mbar of branches is perfectly
practicable, etc.
Feb. 25, 1924. 48, 49.
C.S.H. says lp will more for a simultaneous examination of all state
banks not now making a satisfactory simultaneous examination,
as soon as Hersonis report is filed.
Feb. 25, 1924. W I 51
Herson files report showing that a simultaneous examination is
practicable, not to exceed $20,000 for the Bank of Italy.
Report dated Fab. 15.
Feb. 28, 1924. 53

•

Hereon, Chief Examiner (Cont.)
sly
C.S.H. moves that Herson be directed to examine simultaneou
being examined
all state member banks of California not now
simultaneously by the state superintendent.
Passed 4 to 2.
Miller and James voted No.

C.S.H., Platt, Cunningham arxi Dawes, Aye.
there.
Go:. C. later said he vtould not have voted at all, had he been
1924. 80, 81
Mar. 18,
Herson directed to report whether proposed simultaneous examination
of California state superintendent is satisfactory in form.
April 22, 1924. 119
C.S.H. sends Hereon to Atlanta to report on F. ;. banks relations
with Citizens First National Bank of Albany, Georgia. Hereon
reported the F.R. Bank had done all it legally could to help
open the bank.
Mr 16, 1924. 143
Hoover, Sec.

01 , 4 1.t.6 Os i•
):.
ed. et; L1vita.

(.).;

rt;z1.64,.ciii.L
.

.46 48S

sit on any sub-cannittee.

aill a.

.a 3.

,
;.tytti JE 341E szylcsess saic
zis s
lo
ocial

to
Robinson says Hoover has delegated some of his officers abroad
Commission on understanding that they should nbt
help the Dawes

.teq no
e:i:
:,)st w

t •

31.a4a tri17 ,(14) falsz..)
tital %11c.rt:el.bc
.1424'no/ No:11.11,ta b
.
iit?/
I .dc.

•'

•
us09ms Iurr.1

A J.164V /1)c,E, %I:lode IA tvw norTeli sy
. 1
ias

•;1

szaos 44 "...o
4

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

at ru

▪

erP!rf

.r,e-LE.:1•4.'14

Av altar! 6:At4's
.540

:r:±
.

'vox: 111.. (41 sv
iat.:
sialkAaiLiasia, ‘tricoabial.tae At pal
.n wen :oa eirsed
islo, t1eusL tzao:
.t.e.1-1
,Oc..4€I
•
te4 e

4f, !kJ.

0 > E...1.10

Ansa *A*

v.);ie VitOciet 2utri r:;
.1410r

Zcs:ae o•
(41

.t -

t eletx.13,ertg
/*tr.!) /•.:ogeE

Jan. 2 ,1924.

House, Col.
C.S.H. has talk with Col. House at his apartment in N. Y.
He said he had been one of the managers of McAdoo's campaign; that,
up to the oil scandal he was ware of the nomination, but that
now he was absolutely out of it; that the party could not afford
to nominate any man whose record would have to be explained, and
that this would eliminate John W. Davis also, because of his
acting ay counsel for J. P. Morgan & 3c.
He suggested Glass and Sweet an a strong ticket.
Mar. 10, 1924. 70, 71
Houston, David R.
C.S.H. calls on, at his office in New York.
Mar. ZO, 1924. 71
Hughes, Sec.
Tells a friend of Robinson that it would be most inadvisable for
Robinson to take a federal Reserve bank officer with him to the
Dawes Commissi on.
Feb. 23, 1924. 43
•
See - Hanihara
state Department

-90-

f
• l'au9,
4te

1 :M.,:*
0
1
11

1;)

lentmAJLS Istd1 ,

r, „ 41 aid

Hughes, Sec. (Cont.)
New York World demands that Hughes should resign if Congress
passes the Japanese clause of the Immigration bill.
April 15, 1924. 114

.st
.cfavi to At
z
cr
.3,./

Jan

,1";4
,OS

J-

bessa/1

.614,ov, t:Li

,:Q•

AMA*

1.471 - 1.1
te
brit
E 1,14:P

•
.

AL'i I

; Cr,'

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

zi *- 1)ift.v."H
1
a await

advises Hull to etop tne McKellar resolution as to %vhether
Sec. Mellon is holding office illegally because of ownership
of bank and business stock.
C.S.H. says Mellon has kept in many Democrats and has acted very
fairly, and that such a resolution is very ill-advised. Hull
agrees absolutely.
Mar. 30, 1924. 97

ao •
cr,:•.*,0.
/1

1,hwON

//,.;
T3417,6,11 eIV

,V.

.
‘
1

1"! el I
t13

1t,1;:*

Prince Caetani tells C.S.H. that Hungary was more entitled to Fiume
than Jogoslavia.
Feb. 25, 1924.
52

acme ha."! e:f bias
47,111-14. n? Lb o
o:
.snv ed wor
et 3,-v 7.tmo
5:jutt„cori 0
:
1:4
-rra eiriz; :A(1.4
tot Is tfitIOC
wrlior
.
*C) err •

t'Ittti

P it.EC

Feb. 2; 1924.

.74

:41r)

Hung/Lry
Gov. Harding, and. 44, 45
See -.Harding, Gov.

Says Italy hss consented to Hardin's ags po intment to Hungary.

i
t) , 4;tt,'
4
7

troste"i' .a"ies
saest:10iw
•11 e
teVroce7
.1icavf
frecto

)i4,r)3/

Lea/44141w ftcf
s t:i

•

,:,-rt;

•

fir'
sL

. 11; no
Io

'7""

I D.i.„
r

%TO

.t L41!
4vTad.r4
itsAL lattolltZ
r
rx. etTot- t
t4101k7.

r..t
.
f

Hull, Cordell
Mr. and Mrs. Hull take supper vfith us.

eiL.
r It. L.t.
vro :Nils 1,1 Av.. Mot y

it
:„Izt ;4,3:1
-716ri

Tells Hanihera the President and he are in full sympathy with the
feeling of the Japanese Government as to the Immigration bill.
April 20, 1924. 119

irte 7e/11111
t :A.C9
.

Inmigrat Ion Bill
See - Coolidge
Hanihara
Hughes, Sec.

ale .ta

.00a t.i St'

3oartidoff 14.) .410111
elleT
ek:46,..:O
oterricloR
1a al zactraf.) ewag
CUSP

Dee

Import or export transactions.
See- Wyatt

InduLtrial Trust Co. R.I.
Delighted to pay F.R. Bark the cost for examining it.
Feb. 24 1924. 49

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

41-

Injunction
C.S.H. tells Board that if it Lays down the policy of not examining
state banks by F.R. banks and of exclusion from FIR. systan of
all state batiks with branches where the state does not have
simultaneous examinations, he may apply to the courts for a
mandatory injunction.
Feb. 25, 1924. 50
Interlocking directors. Clayton Anti-Truat Act.
Hearing before Board
Old Colony Trust Co. aid National Union Bank.
Mar. 20, 1924. 82
International Peace. 122, 123
S30 - Carnegie Endowment.
Italy
See - Caetani
Fiume

-J-

James, George R.
Votes in favor of C.S.H. motion to consult the Sec. of State as te
detailing Asst. F.R. Agent Brock to help Robinson on
Dawes Ccomission.
Jan. 3, 1924. 3
,

Tells Hereon to hold back his report on simultaneous examinations:if
state banks and branches until he could ascertain whether the
capital of the parent bank Ass sufficient.
Feb. 18, 1924. 28

rafF

111:
lonD -

tgrofitze
,
7-- p

.4
0

California Suptd. of Bmaking wires the Board that the McFadden bill
is absolutely inconsistent with the agreement entered into
between himself and a committee of the Board, - a month ago
in Washington, - James, Miller and Dawes.
Feb. 21, 1924. 34

$LOqjuI

4auTT 1411. %ctaI
Le.Lii311:

Votes against giving authority to F.R. Bark of San Francisco to
approve the taking over and op-ration of the Valley Bank of
Fresno by the Bank of Italy and Pao. S.W. Co.
Suptd. Johrmon said if not done the whole banking situation in the
San Joachin Valley would be imperilled.
Feb. 25, 1924. 47
Says Hers= will shortly report that a simultaneous examination by
the Federal authorities of all state member banks with brahchea
is practicable, and the expense not unreasonable. Favors
such ettamination.
Feb, 23, 1924. 48, 49.

-92-

'to

fosob irtal
!!
4.
'VEX
Le.
cots/IC...1%c lo bra.. I
. .
v,d eirme
Liaise ,,114$8 //4
:iv sad ,,;.tieste:
e:talra
! rtol:!nif.t'41,
,
trO ;It:,3 ra:it it
1 31.

James, George R. (Cont.)
Moves to lay on table C.S.H.is motion that an irunediate simultaneous
examinaticn be ordered of all state member banks with branches
not now being examined sirmataneously by the state authorities,
and that Hersonis report be accepted..

•
7. 11.t ino kie...
1
4r11

•J

Feb.

e olecr
,
.
.4

.trT7J
e o,

Motion tabled.

1924.

IC
•*T.

•

.1.e1.09

4nle3aI

- ter;
a.1I
asleaD •Es."V

Totes to substitute a general indoraemsit of the McFadden bill in
place of lillert s mot ion that i t be atabs d in annual report
that either state banks should be limited as to branches to
powers now permitted to naticnal banks, or that national banks
should be granted all powers now exercised by member banks, the latter being r econmended.
Feb. 29, 1924. ffio
Totes against accepting and printing the final draft of the
annual report.
Mar. 7, 1924. 65
Says he will not file a dissenting report.
Mar. 7, 1924. 66
James said the giving separate reserves for diposits and notes was
all he objected to in the annual report and this was stricken
out. His action in voting against the report is, therefore,
extraordinary, to speak mildly.
Mar. 7, 1924. 66

s
,o4,16.1Leii

rto

a,..titl•!er141K

i-tog:
e
atf 11.3au 5rv1
Yrtieti"

JLJu1

ustriattf
14

.rf

tCl

r1.-tena &1?et.tv.
I:
13 *tit
1116 riettisIokl
'
el Is m r,rt.t xleStfio
o
Int Snetniee174 ett £i
* 'orr ities.Liff
osjA rf:sru),77
11 se
iierNACI brut eLLfl
eLt- ,:r3S1.1714?,e,

"3 '47,6E.

• 0 cm I

1o irts:77

•

'lc

. 1; • W,.
4
.

:eft' ri.t.

7,(jn

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

&it 4,43
trt

anears.. e rtf
.Lt1fa
1 4). .4
,%ef

:I I 1;)

foci

enr.t.e7.;,s -seloY
fit
pit
j ço rt?
ties
as?
,

ecf

;lo .1s 4t vjz'iorisIv
,-

-041
1? Lmate
k.
rti
.
:{:tv$ slated -.fq's', sis.at
. I cfrect Aistestr..r

ros•rell •VA

James said the California bank suptd. said to his boranittee at the
last conference that he does exacnine simultaneously all
but the 4 banks having the largest number of tranches.
Mar. 7, 1924. 67
Gets into a row with Miller ar to the condition that the Board will
grant applications only in place of location and contiguous
territory as defined by the Board.
Mar. 7, 1924. 68
Says he favors cutting down the branch powers of state member banks
to those exercised by national banks.
Mar. 7, 1924. 69
C.S.H. asks James to move this as the policy of the Board, as he
would like to vote on it, as the motion to increase the power
of national banks haa been voted 'town, but Jarne3 would not
make the motion.
Mar. 7, 1924. 69, 70.

fedi
4 1
- ,
j =1,c!,,esnit4. 1 et
:
.
L A(1151.sta, St US

James, George R. (Cont.)
Carolina,
Moves that application of a bank in Elizabeth City, South
a full meeting of the
to take over a branch, be postponed for
Board..

syn. .
terltaial
,

an
Jamesshould not have done this a the motion called merely for
inquiry and report.
Mar. 7, 1924. 74
•tr,

rys,11.0iolv

.
t.iqe

,
.1 • -4.! .7.-Le e

3.r.a

r.10

fr. 't

c I

f„cr

aL telL11

slued
irs.cm".

C.S.H. believes James is not to be thcught of as Governor.
Mar. 12, 1924. 76

ILI'

Le.
ed

applications
Says it is absolutely necessary to tave a full vote on all
country would think the appointive
for branches, as otherwise the
members had been "fixed."

,C1
..! :ter: ‘..)/ tv.
:I.linneg wan et€1,

mill ed L.

s)
A-

p4r

-• F

ti
,

""n "Tr41

saw 12!54

4.114,C;

111v.L*CR

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

Votes against C.S.H. motion that above application be postponed
pending a simultaneous •examination by the Federal Reserve bank of
the Pacif. S. West Co. and branches.
Mar. 18, 1924. 80

tl L.43 L
e o(if.

r .

2
-colr*.! E.!.144)

L11
f
)1: r.r.o

i.o.tLqcztrsell
n vco
e
o *it
bti e.a
.LrJ 'C. nri,
,r
.

f•ib

n.ct.t mat) 6,a1.1:1.".1) stove.A
Lesivtehe esoci,1

v
. -Croal ti/ss!.% lo
Ze.

OcalT,
4 ,7

•

-•

Xn.tioq eciJ sAs
tr:

Reports against application of Pacific S.West Co. to merge a national
bank at Torrance, 15 miles from Los Angeles and within the
territory defined by the Board.
Mar. 18, 1924. 79

Jf. 1w,st,et,croe fis
-..
rtol:c4t, e.tii .Jzo

6.1.:* • ;.•1'!

Bi LiOJ

ek.1/

and said
Gov. C. was very bitter against James for the above statement
he had written it down.
Mar. 14, 1924. 78

!ei
7,
'117.

,
h"Le'..!7 1`

€.17

:. ft, ni.rt:r...)n:-..1.....`.J.X11.fr. 13.1.1%1t*
L
dttu

PU:111111
r

•

i1e1-k34t-i

sib

:Leak

-e1T

)2eV'ir

I '•_:),.;.!

'rTrqo.s

f1:

corruption
This 'was bitterly rezented as a thinly disguised charge of
against the minority.
Mar. 12, 1924. 78

:10V

D, t. A:11 LIzfow

Votes again3t C.S.H. motion ordering a simultaneous examination by
Herson of all state member banks with branches, not examined
simultaneously by state authorities.
80
Mar. 18, 1924.
Votes in favor of Miller's motion that the application be rejected on
ground that the Pacific S.W. Co. is not being exanined
simultaneously by the state authorities.
Mar. 18, 1924. 81
Moves to accept proposed new regulations as to branch banks.
Mar. 18, 1924. 82

.
/1,71

Objects to Board statement that TOrrarce bank applicat:cn 'vas
rejected because Pacific S.W. Co. was not 'bathe examined simultaneously
by state superintendent'

- 441140.
.
J7ne3, George R. (Cont.)
Wants Board to say merely that it was rejected..
Board voted to give real reason.
Mar. 25, 1924.

83, 84.

Votes in favor of amending Miller's motion to substitute Sec. Mellones
draft changing proposed regulations, as moved by Dawes, by
adding-"Said territory having been defined in the Resolution
of Nov. 7, 1923, and the xnend.ment passed in January 1924."
Motion lost.
Mar. 26, 1924.

Votes against main motion of Miller
Mar. 26, 1924.

Votes against C.S. H.'s first comprcolise motion.
Mar. 26, 1924. 88
Votes against final motion to adopt the regulations as amended.
Mar. 26, 1924. 88

LLP .1tre r•rt.ls,f .

,
01

.cn 461kW.

elem

r...7i•

E.).7

Lk,

C.S.H. offers a compromispbranch bank regulati. cti. James rushes out
of Board roc= and soon retirns with Sec. Mellon.
James votes for C.S.H. motion.
Mar. 26, 1924. 92, 93.
•lteM

•

James objected to minutel stating that the vote of the Board on the
German trade bills was unanimous, saying he voted against it.
,
The other members reminded him that h3 voted for it, an4r.3t ,S.H.
however, denied
remembers perfectly that he did. James,
April 8, 1924. 111

ftvo da.

lealoc.:taq cr.1
. foru,
,a

.04.; XS

NIVAC

It.

oe,wat.IC
.7.41
.45.C1?1
zcrtra3A retuv
nobleF

grill.eblo
irmcf

cia2:acti,xas suotta‘..t1..:.nr,s
e
.1-mn a

ate/e. -rr

rnaketo

,91
rio beIoetbi. ed IL;
i1r3(ir.

rio1.4.1.11 s'

!It 10 •toithil rio.

St
9 ,

so, ;ID • .1ao14.707.
/141;p0ense$IMMIte bea1cLuxe TAied

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

(*. CSIZI

Platt and C.S.H. pointed oat that the bank had never agreed to apply
to Board for branchez.
James insisted the reculations applied whether agreed to or not.

dagle 11eDt.1
.ki;C1 18:

Reports in favor of Board telling a member bank of Charlotte, North
Carolina, wishing to buy a state bank Alt h 3 branches, that it
would be useless to apply because of the new regulations.

Saa: tfAY

,,,.01W .10 .W.1 rAttuml sitzEstc.
PrtoCiiit

,ts.tst.

Voted against sending draft of C.S.H. that consent of Board did not
apply to this bank. C.S.H. draft accepted.
April 16, 1924. 117
James marries his steno rrapher and secretary. Never told any of
the Board or invited them. Hereon acted as best man.
April 21, 1924. 1 19

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

-95-

James, George R. (Cont.)
Sec. Mellon told C.S.H. he did not know of Jazues marriage until
C.S.H. told him.
April 23, 1924. 121
James, ay, wires Gov. C. he wishes to be recorded unqualifie
dly
on being in flexor of the McFadden bill.
May 26, 1924. 162
,

Japan Society
C.S.H. speaks at dinner of, in honor of Hanihara.
Mar. 10, 1924. 71 , 72

,
01
ty!tx.•
88
..t.-ftInsalae

•7

Japanese Ambassador
See - Hanihara

•

.ASI?:

011011*IVnel

Jay, Pierre
C.S.H. confers with Jay at Federal Reserve Bank
of New York.
Mar. 10, 1924. 71

t.,4,
4.:Net* G4 no

89 .;.t..T.r
.?:10

6fidstr1 asmat .rv1/,ts.f.trgei tam; :1,
7.1.1,g
snii4lort i'v.),!=1 tor mcon
0011ebl. .3tF.
silo rem
.t,k•

lerta

sejcv e vast,

steM

6,14 'to ctov e.:{Z :4kici: - :113a
• uo
ste&on.tm 03 beSost,do must
1
4
.:1 :1411
uoinlitartv *taw, *JIM e
-433,e, be.t ov e
Ze
mearisk0
trw
SI '20/ Le3v ref .
•
oetin2at,47 altdalaw
s s4.? wal
•arn"
4
vcr:rtelIsq sisdforziet
.11 botrier • VPINO..
=at.
If! .t•Sel 18 irick
:{:lo'd* se:.,ol•LadO
.8 C1*. 11.F. LTSIf411
,

o 4 bpe.

rihoa

.4,-1/A:1 •redmx
.t4t*efi. 1.1 ispirriI tzr ctlocre if
i
&i t i.rsase 530.. .14 v.i.f (lc 4r72- ifsiv.
elotr.iec
serissu sod blow*
i

1.11

7z.fl

,1 1

•

Opposes the differential betvvem six and nine months
paper in
proposed Philadelphia rate ,
schadule.
June 17, 1924. 196

aloct
nal bmsoff

1-)
.1'.
1±1o;

tentwiz bow,

•

. frt.74

btu 76A4L1.
,e
Le.71-, 1!:
h.:A

set71.6 seL
tqAcie *At,

Jay confers with Board as to eligibility for purch
ase by Federal
Reserve Bank of New York. of German trade bills
(not bankers
accept moos) indorsed by the new German bank,
payable in U.S.
in dollars, and indorsed by a member bank.
Board rules they
are eligible.
April 5, 1924. 105 to 111
Johnson, California Superintendent of Banking
Bitterly protests against the McFadden bill, sayin
g it violates
agreement between him and. a commi
ttee of the Board..
Feb. 21, 1924. 34, 33.
Strongly urges favorable action as to Valley
Bank of Fresno. Says
if refused will imperil banking situation in
San Joachin Valley.
Feb. 2
1924. 46, 47
Tells oannittee of Board he is examining
simultaneously all except
the 4 banks having largest number of branc
hes.
Mar. 7, 1924. 67
Says he is examining the smaller banks
simultaneously, but not
practicable for large banks, but could
examine the Security
Trust Co. and Mercantile Trust Co.
Mar. 20, 1924. 82

essizei.71 cze.- At

7trat.1;
,
.,
t*orz

-1.1.447

/LI:
,

:Tr; I

:I; err 'ao

.Ltd :to

11.1;
rual04

t-Iv? 11.!:

co,

. cr0 Lel ivi

Lteed o

xl±,tpt

aogryr.:
. .

I tic-le 1.4

„

Confers with Board together with Oliver, his counsel.

ta no c.:10

e ri

Is prepared to examine all banks simultaneously as he now has 30
examiners as compared with only 8 in Dodge's ti aka
.

risaAT.
la a Ifilfpl

bt:;

Johnspn, California Suptd. of Banking (Cont.)
Perrin sends C.S.H. a letter dated March as, from Johnson stating
that since his agreement with the Board., he had granted. no
branch permits either for member or non-mmber banks
outside
of area definsd as contiguous territory around San Francisco
and Los Angeles by the Board, except in cne cuise of great
emergency. - the Valley Bank of Fresno, ,,,hich the Board
finally ratified.
April 4, 1924. 9?

Board asked him to confer with Herson who will report whether his
plan is satisfactory.

k* C
?
44
toe.etui,

'to tam a
-

.14)Y vic"/.
.14-

.U 41

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

(er4,E

Jugoslavia
Price Caetani says that under a treaty between Italy and Jugoslavia,
Fiume was given to Italy, while Jugoslavia was given a post
four or five miles from Fiume; that Hungary was more entitled to
Fiume than was Jugoslavia.
Feb. 25, 1924. 52

.
i) vv4 1

,
)(mod r -Is

r0IfL

pjgt4.T.ecnei.)

Sidi he thought the banks woi.411 agree to one simultaneous examination
by the state and. cne by the Federal Reserve authorities, and he
would ascertain this and report to the Board.
April 22, 1924. 119, 120.

•

til1713

tiLtbLe

euarir.Y.trf.-.;

a t

N‘d

*ter:I

:.
11

S1 CI F_101

j.!
titi;$a.tnt.otoV *Is=)1.
;
fl
mobiliebiti. 0:1:' lartiasoo asastoici
::rectseti..a
-,ta11 :mem
:
. ;:t t 1 Irmo 7i.
,

Said he could do this without help from Federal Reserve
aminers
but he would prefer to have their help and would ply entire
expense.

Br:.1

t
.0

'LI 10

.Z L'

.de• ,O;

-K*..;13110

a01

ar. iffr•!tio

:au!

41.1`.:11.11.0 e;
Ifrsici:"-.es7,-_

c.rve...w 3 Itzt.1 s
AFs"

.)
tt'ef4
.o)

'Nf.5

11;

4
0, ii

rd 'tad airia

verJ

t '
41

E ;1r -1%,1I

IN:. re, an
, ill" ad a
ttr *:..

Siad 11\,44
os1'zc.1
I 1(41 010101:
? furl'
brit

Kennedy, Dr. Studdert
Lunched with us Saturda,v, Feb. 2, 1924.
On Sunday, Feb. 3, while President Wilson was dying, he preached
a sermon at St. Johns Church on Faith, and paid a tribute to
President Wilson, which for pathos and elbquence surpassed
anything I ever before heard.
He said President Wilson went to his cross verily as did Jesus
Christ forthe peace of the world, and that those misguided persons
who opposed him were in reality fighting God, Himself.

•
.1.4,qire. stexati/40
,,$now3) grelLtzsg.
irufolt rrtt ,81it Aogusk: betsb
.e tiiee
acremt.e r.i),,4 ath
.
.41
on NO:TATA Liszt.
.
'vs eedtetta 'tot ten116 $.tzfisvi tfuisil0
elsis.t.ao alrrif
atrott*Ilat.n• e4;4
Joeta 1/.1
pte !crit•A r•„4.3.?, trricria
cle34.
toltrze ,IrteOti ert d
SactlA 'to tak•n
.•%ufial,oteezib
,OfTP*11
IfrAg "4A,c.r.E,
blA3a erf
Alo111140 w

co . k.c.-;›!
.

0 rittn.t, P.1

•

fri)

-r“i;14.0r1,), frt

1w orxel.n_•

4
OZ. sed w...m toff asi N,1*.zrolotts“, 1.truhte sialtd :la &limas 31 1ett4*rtc7
.
t':"Y
e...r/Irciac.rt
tel4t>o(.1
k$41o‹

51w

re1e

t1ct

s.t a:4aq
.
.7t.:!:I/W
VC.V.Axa IVP4.1031 MO'n
tly.rew Ins q:en: ledI evt,,!1
.

1:“S=48;fU.:, ti,t;://1 trio r.31
.
erl trig, ,s 11-.I.17.);.4 ,,iis evleaeR
,

RIcLI

ab /4 ;an jk:
1
tlyow elf Wc;
.esnecxe

igy seined

f'a Tia

1:i7.1.cso4-1.1 eri ;1z.r!,

eri$
trt,

rif-e.•

P I
.

.os 1
.
41:va1soa.ut
•faltgrt, .bnitt4 %Ivtl neewlst:
•

'tioc:i.1;ey

ts
,.f.41 $rrt
-

Sri

Ctaltr

143C1

, , 412!
7:‘
.

!
^
rir! 3(4:',: •ta

sor pawl!
LL1 o7
'tool
map. vio*ru..13 $4•Pit !*21,14
-11 ar:ox,lim fv11
,
.vekIao- tt cow rtsci$ ecturril
go.

iv jk

rIt1W

•

$nel
•

bertentlq L1,-, :7.!7:11 gist" ttpalliW $rte-i.Aart4
1
,
rto tzn3 endot
t.eq. has
o$
beexicrlo' ems:Tills bat; serf:al:1
;J:vt!thf

e•Lreel,
,•

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

,-;54spririel
• .
zit“:•.c.rti7.1

nonn.es
;ins newel
:
•sts.1ns-

.1)3 LIW $ne,nhetir balk ei
7.11-Tev esoic. Ii
o:131o1 .taterf)
e..1 tzri: tax
Leseqcre ads
.
,bo3 efit!;ta
y„: 11,sen. ru elfsw
6

Kennedy, Dr. Studdert (Cont.)
After the service I thanked him and asked for a
co- ,y of the sermon
as I wanted to print it.
His sermon was evoted to showing that neither
individuals or
nations can live in isolation, that God had mat'
them
dependent one upon the other, and that the
principle of the
League of Nat ions was the principle of God.
I hal the sermon printed for distribution. (See
scrap book.) / 3
Dr. Kennedy was unable tosecure a ticket author
izing him to be present
at the Cathedral at the Amaral services of
President Wilson,
and he went into one of the boys' roe in the
Boys School
where he could 3ae the procession Lind the
Bethlehem Chapel
where the services were held, and kneeled
down and prayed
during the whole service.
I spoke about this later to Mrs. Wilson
and she asked me to tell
Dr. Kennedy how terribly she felt about this,
and to say if
she only had known about it she would. have so gladly
arranged
to have him present.
.
Feb. 3, 1924. 12, 13.
Kemmerer, Prof.'
Tells C.S.H. he drew the currency part of the
Dawes Com ,ission
Report as it was originally framed; that t,he
introductory
part as to the impossibility of redeeming the
,
new cnrrency in
gold, for at least a short time, ../as a compro
mise; that the
intention was to establish the niw Gait=
bank on a sterlin_g
and not on a q:old basis; that as he origin
ally drew it it
opecified the dollar end not the sterling
standard; tat
France bitterly objected to having German
y on the dollar
standard while she was on a depreciated ,
tandard, that France
feared Germany might later offer to help her
to go on the
dollar standard; that Gov. Norman came before
the Co:mission
and positively demanded and insisted that the
new bank be
established on the sterling and not on the
dollar basis; that
it will certainly be established on the
sterling basir unless
the American bankers decline to help unless
the dollar
standard is accepted; that the American banker
s . _re !sounded"
and said they vcruld help on the dollar basin
.provided the
British bankers would join with them!
He said Schacht also strongly favored
the sterling basis.
June 9, 1924. 187, 188

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

-98-

LaFollette
Daniels has prepared a letter to LaFollette on the oil scandals.
Feb. 3, 1924. 16
Lam cnt, Thomas
Attends dinner to Hanihara Ind congratulates (7.,.F.H. on his aldress.
Mar. 10, 1924. 72

4,ta oZ L'ffr

Lane, Secretary
Baker and Redfield. tell C.S.H. that sane years ago Sec. Lane had.
before him a patent granted by the Land Board coveting lend
reserved by the Govt. contaning oil (not, however, land
controlled by the Navy); that if Lane approved it the title
would. be indefeasible, there being no right of appeal to the
courts; that the nutter had been dibcussed in the cabinet; that
Lana insisted on approving the patent against the protebt of
Daniels, Baker, and other members of thl Cabinet; that Daniels
went to the Attorney General, Gregory, who strongly advised
against it; that Lane still persisted; that finally Daniels and
Gregory aPpealed to President Wilson who wrote Lane not to
approve the patent until he had consulted with him; that the
matter then rested for about 5 years; that Daniels heard that
Lane was going to approve it just bi fore leaving office; that
again they sent to President Wilson who again wrote Lane to do
nothing until he had conaulted with him; that 10 deys after
Lane rasiy.ned Sec. Payne disapproved the patent.
Feb. 5, 1924. 17

øi
LLiz‘

toiltt
"IA; ,

.1..".Jr$U

11": a

404'

• c.
ao ink,r4;
Wet
r1 rz
:,.11,
• -14 !.).1, c.:.12 no ‘ftei;
j 12.C,V ad
:1111.4414
64, 110 q: 1 ttd qleA o:
ut:
.)*teet..7.,erric)V. eva0 ALI/
!-C1

11.t21.7,
Isii
rr,-).11nearil
no ;ton
1\0 4t.ltierit..

, •

i-,4.c•Xru•
,11
1.-4 7 c::,114

etillook, :teal=
;

no zi

. 14.67

.t.Latt.,*),/

\„.

tt,.,,tws a

ed:

They also said Daniels told them that Lana had repeatefly urged
him to lease the Teapot Dane Reserve after Congress had put it
under the care of the Navy; that Daniels said teat if the
committee summoned him and. asked him about it, he should tell
the whole truth.
Feb. 51 1924. 17

.hrie

Anna 3ays Sinclair or Doheny employed Lane's son, before Lane resigned..
Feb. 5, l9k4. 17

.re‘:ap
tf,da.z.
.
:I /•
molter), &eV"
116 a VIA bra *Is
tils&
:14a1,1 /11.

;
f... 1•31-,Lv,

.
Lansing, Robert
Looked disconcerted when C.S.H. at the Carnegie Yndowment meeting
moved and had passed a resolution on the le th of President Wilson.
April 23, 1924. 123
egi

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

League of Nations
meeting about the L. of N.
Not a word said in Carnegie Fourviation
Nicholas Murray Butler renort to
New York Times prints abstract of
Committee alIntercourse
the Carnegie Foundation as Chairman of
and Fdducation.
at the meting of the trustees.
This report was presented but not read
r3mmile, speaking for half
Butler, howevv, in presenting it, gave a
League of Nations.
an hour, but never referred to the
ed in full what Butler hat
The report in the Times, however, print
ns, and barely alluded
put in the report about the League of Natio
to anything else.
evidently prepared for
The report, as printed in the Times, %as
of propaganda against
publt ation by Butler and was a clever piece
the League.
April 28 1924. 125, 126.
that Butler never
Gov. Montague confirms C.S.H.Is recollection
before the Board cn his report.
mentioned the League in his remarks
April aB, 1924. 127
ed to the League
Gov. Montague said most of the trustees weri oppos
not only opposed to the League
and that James Brown Scott was
world
d to favor
but also to the World Court, althouFh he claime
28, 1924. 12?
April
court.
supper, - attached to
C.S.H. and H.P.H. had Mr.and Mrs. SCweetser at
the League of Nations at Geneva.
May 25, 1924. 161
out for the League of
Glasc criticizes McAdoo for not squarely coming
s a referendum on the League to be
Nations; says %IcAdoo favor
held apart from the elections.
orm would amount to an
C.S.H. points out that such a plank in the platf
and of the principles and ideals of
abandonment of the League
referendum.
President Wilson; that the election should be the only
31, 1924. 174
May
died, wanted to cme
Glass said that President Wilson, just before he
o because of his avoidance of the League,
out publicly agatnst McAdo
he and others
and that it was with the greatest difficulty that
persuaded him to poitrione this.
May 31, 1924. 174
to press the League
Glass said McAdoo told him it would be bad politics
in the campaign.
May 31, 1924. 174

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

-100-

•

Leaks in Federal Reserve Board.
Cunningham complains of leaks in the Board as to action on branch
banks.
Tvidently aimed at Platt who had talked with a N'W York Journal of
Comm. representative.
94
Mar. 27, 1924.
See - Miller
Platt
Leffingwell
Deposited 50 millions in silver in F.R. Bank of New York in 1920. 103

•

Legal tender notes
Sen. Reed favors payment of bonus in each by iSRUO of legal tender
April 12, 1924. 114, 115
notes.
Smead, Stuart, and C.S.H. prepare a memorandum in criticism.
April 16, 1924. 118
Littlefield, Martin
Retained by Doheny to act as counsel before oil investigating
committe'e after Davis aeclined to nerve.
Feb. 24, 1924. 40
Lodge, Senattr
Mrs. Wilson tells C.S.H. and H.P.H. that When she saw in the papers
that the Senate -Jaa to appoint a committee to attend President
Wilson's funeral, she asked Sen. Swanson to object to Lodge
being put upon the committee; that Swanson begged her not to
insist on this as it would infringe on the prerogative of the
Senate; that she told him she had great respect for individual
senators but vary little respect for the Senate; that later he
telephoned her that Lodge had been put upon the committee; that
thereupon she wrote Sen. Lodge that she felt ware he would
appreciate her feeling that he should not be present at the
funeral; that Lodge acknowledgsd her letter stating that he had
not realized that it was to be a private faneral1
Feb. 28, 1924. 56, 57
Sen. Weeks tells Bertie there is a revolution against Lodge in
Mass. because of his vote to pass the pension bill and bonus
bill over the President's veto; that one Republican advised Lodge
not to go to lass. for fear of personal insult, and, perhaps,
even assault; that there had not been such feeling sin: Webster's
7th of March speech; that President Coolidge, then assaulted,
always turned the other cheek; that Coolidge asked him the other
day with the innocence of a child, - "Wiw does Lodge act in this
way!"
May 26, 1924. 166, 167

-101-

Lodge, Senator (Cont.)
The Boston Herald publishes letters pro and con Lodge's 3=be.
Two thousand were received and they condemned Lodge in the
ratio of over 10 to 1.
May 26, 1924. 167
Mrs. Chamilar Hale spoke very deprecatingly about Lcdie and his course.
June 1, 1924. 176
Love, Asat. Secretary
Thought McAdoo should withdraw hi a candidacy following the discloGure,
of the Doheny retainer.
Feb. 5, 1924. 18
Law, Sir Maurice
Attends our supper to Egyptian Minter.
May 23, 1924.

161

Lyon, Tracy (Mrs. Brewster)
Says she has knoAn lia4es for years in Et. Paul; that he was always
falling in love, and she warned Margaret against him.
Jan. 28, 1924. 9

:
11044.410***ii s 4. —
, .

$111411`
ofortes
01 «Ofzei 41Wil 4
-Mlute,,•414.0 0414 try t
,
41043$0#4,t OW **404 •44

60 Wit eitie fit** USW ipli

siegfisx,
Aft4441* iet. moose oc foot tow* A
kc'El
, 4
*alto o$ spetdo st.40AMAPI 410 1N000 0 * iiiWAN't .40,
,1
40 meOrt0q .Oftnale $00* Ittio******
0* INA 1010 beasiod
aripPetaitakipwArip si41 ,igt;tip.
OM AO 1111fflitiOlen *0 so
i
40 0
016.4021C$ ° 16 ....01 *SP
.4,010041_ Vet 00001 laoll tigt...
ilk.,11*,141,!;443414tvireavg tad wait*
,
Art liteitai itigit WAND'S 00
?
es64 boot .
to& tost$Ispo ccil nois dtvg pied 110d 1110104 "ad*
. 411,0TA.1 044 40:.
SO
.
,b40540 *4.010111- .ifet ,
i.ip.1110100
fiti*..*11 :fiteorst *I Outi'.14004*
1,304 Viimi- lie
off "AP - -.tots 4
,
! ''- -.:-. 4 e"fre',14IVY 111 ad 03 *Ai it 3.0 bil
(: 41

MI ezbo:

10 ealrf.".:qq:

LEI

41$

G.? 07.,„o
LIAre.

•

c!Cr4am)

11::J

$ott

Feb. 16, 1924.

Mandatory injunction
C.S.H. says if Board refuses to exzcaine state raen2ber banks ani
refuses admission of state banks with branches unless ex/mine
d
by the state simultaneously, he may apply to the courts for
3.
Feb. 25, 1924. 53
McAdoo, William G.
Sec. Baker tells C.S.H. that President Wilson utterly despised
McAdoo for r3signing when he did, - just before he started for
Paris, and that he told him McAdoo should have remained at
his post.
Feb. 5, 1924. 16

Much criticism of bloAdoo because of the Doheny fees $150,000
and an annual retainer of $15,000. McAdools backers
are in
despair. Roper and Love thoiight he should withdraw,
as
did also Bob Wooley.
Feb. 5, 1924: 18
(So Aid Asst. Sec. Moyle).

•

"4-;

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

7 ";

* bet

MacVeagh
We dine with Mr. and Mrs.

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

-102-

McAdoo, William G. (Cont.)
McAdoo made a good. appearance before tha Congressional Committee.
The New York Times and World say he is absolutely out of the race.
C..11. is inclined to think that if oil is to be a gre,t issue,
the people will not want a man formerly, howev?r honorably,
under retainer from the oil. interests.
Feb. 0, 1924.
Glover attacks McAdoo, at Sen. Bruce's dinner, for his conspiracy
with Williams against the Riggs bank.
Feb. 20, 1924. 30
See - Glover
Mrs. Wilson tells .us that while the McAdoos were with her it the
funeral of President Wilson, the hotese vas absolutely jammed
with political visitors to see Mr. McAdoo, pr3s3 representatives,
etc.; that Mr. McAdoo was almost wild with excitfraent, cawing one
thing to one group and. another to another; that his supporters
were entirely demoralized. bec:Alse of the Doheny retainer.
Feb. 28, 1924. 57
Col. House tells C.S.H. that he had. been one of the managers of McAdoo's
campaign, but that, in view of the oil Acandal, his nanination
was absolutely impossible; that the Party could not afford to
nominate anyone Atose r3cord had to be explained.
Mar. 10, 1924. 70, 71
C.S.H. tells !!rs. Wilson of McAdoo', row with Glov3r over the Riggs
bank; that both Glover and McAdoo were dominant men; that clover
really gtarted the row and. that there were undoubtedly irregular
things done by the Riggs bank but which could have been easily
corrected without the bitter, sensational row; that McAdoo vas
in such an uncontrollable rage with Glover that he and Williams
did all they could to rain the bank; also told her of my interview
with President
,
.
May 4 1924. 128
Mrs. Funk tells Bertie that McAdoo is to attend the National Convention
May 8, 1924. 133
in New York.
Mrs. Funk says C..H. is ilcAdoo s choice far Vice President and hopes
May 8, 1924. 133
he will be nomirkited.
Elliott writes asking C.S.H. for a contribution for McAdoo's canraign.
I will not answer, but will tell Elliott &en I see him that
I have not contributed since I joined the F.R. Board,.
May 13, 1924. 140

,f1.0•41.11111.

-103-

ti ots..k

le,

e'ico

461 434 ,-,t.ta .L.17.t.ffr tux.. "luta i• irtiol.

:LO

Dt
dCLOIYI 101 6CI16 LcorL
-VIM
rjj.3.1 '1041t7
4.12 $70,;..: "f1011

41
',A

r 4 Art

McAdoo, William G. (Cont.)
Mrs. Funk :tined with us last
t'he is trying to raise money for
McAdoo. I explained. why I could not contribute and sha said it
vas a proper .ttitude tc take.
May Li, 14. 140
Glass fears McAdoo will attack the Federal Res3rve Bank of Cleveland
for leasing rooms tothe Rep. National Cd'or.mitt ae, if he hY4ari-• of it.
iy 22, 1924. 151

3L4aca.114t.t...1"1"

T,..01$
• d''

dtl

e1•

e'..•

-L.
T.

t.e.

I -.1 •

etto

Gov. trong is very bitter over McAdoo's o tat e.nent, that he Nill r3iove
the grip of Wall Street from the Federal Revi3rve Board; said uch
language was unworthy of a man who wished to be President; that
no Sec. of the Treasury ever availed himself of Wall Street help
as did McAdoo; that he mithered in the Treasury at least 16 met
closely identified. with Wall Street.

•1
418'7tjot1&oairN..113..
f•Tfi. .

V4iliqkr!')7
,

(For a list of Wall St. men, see p. 171)

Jr.,
ato;t1....1v
4'

May 22, 1924.

c.:.trong also said that after McAdoo formed a partnership with Cotton,
he asked hini to release to him for his law offices r- oi.ie rooms in
the upper story of the Equitable Building leased by the Federal
Reserve Bark; that he explained it was not possible as the Bank
was now scattered in 7 cr 8 different buildings; that McAdoo was
insistent and finally asered him not to forget that he callei a
special meting of the Federal Reserve Board and secured an increase
of his salary as Gov3rnor to $50,000 per years
May 22, 1924. 156

41:.

.1t :
,C1. z

.•

.1C

1,03

8.1

Is -

?"1,:.f

Lre

al(

a list)

tO
;

10
.

kSL

eti
f'7`

riz eJ*,:fita

Or'

t 'few

i.Of64.1). eI 1L'w
.
r

. .
16,14t,
7.ot eleohiek lo
neve ttv.L.fl
A3 j
PO1
C.;dO
3
:tat 41.,t4r31:: k
.
3axil
Won/
.
(Ai Si1.'0 .0161Ewoi e•fin.34V r•
(ns.r!..tew
"Sni;e771 V.11*".
Pint)
PoIrrt,
tae xetc tV4110
144141.1411i1ei t le4..t1d eat
.
sait cso.bADIR ;,5.pri3
nc.;"
itvi i3±w taw: sicALlistz,-Te:,„:ur
i
u3al tilW
/Lb bit
:.).L.oc,
r'f'
pfelf
),
icd
wetvte.
r
.
.4 SP: .4.
,

frnt tot vflor 1..ero

04.7

Willy .7.a 0*

&F;.0
A(ACLo

:rie.Li

Ns( 14.E.t. 4 1 .4 ibikt;
Pig
*AM" .r

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

elIeleS.LLtt

4111.1
,
J.:114LN .
•.* 1 ,

slatti
,
e r"'

pi
10k:
•r.e4

ircas itriC .
e1I.1w eL
ital.au.)a

).bt.t.;=

43o1117.
,
bf.1 t, I t•-4...1;

Irr('
X

155

1•

;IQ LACY! •

r ell.:s-tc,4.1

31.1w
;
)r.
Oi1 v.ex

Parker Gilbert said that Cotton, McAdoo's former partner, was
conspicuously identified with Wall Street interests.
May 25, 1924. 161
Gov. Strong gives C. $I. a list of tbe 16 Wall Street men .4cAcicc
brought into the Treasury:Paul M. Warburg,
Albert Strauss
Leffingwell
Oscar T. Crosby
F. A. Vanderlip
Louis Franklin
Allan B. Forbes
Albert Rathbone
"Tagene Meyer
S. Parker Gilbert
Clarkson Potter
Nicholas Kelley
Gearge May
Ncrrchan H. Davis
F. I. Kent
Geor- Franklin
e

Kuhn, Loeb & Co.
Seligman & Co.
Cravath, Henderson and DeGaradorf.
J. G. WhIe &
National City Bank
Guaranty Trust Co.
Harris, Forbes & Co.
Joline, Larkin, and. Rathbone
/Eugene Meyer & Co.
Cravath, Henderson and cieGersdorf
Farley & Co. (N.Y. & ST. Louis)
Joline, Larkin and Rathbcne
Price, Waterholse /if Co.
Bank of Cuba
Barkers Trust Co.
Fpooner end Cotton
May 29, 1924. 1 72

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

McAdoo, Wm. G. (Cont.)
Glass criticizes McAdoo for not coming out squarely for any great
issue, especially the League of Nations. He sail McAdoo
favored a rdferendum on the League, to be held apart fram
the election to get the opin1on of the people Nhich he said
he believed was overwhelmingly in favor of the League.
May 31, 1924. 174
Glass slid that President Wilson, just before he died, wanted to
come out publicly against McAdoo for his course in avoiding
the League of rutions and his attitude towards the bonus
bill and that it was only with tha greatest difficulty that
he and others pn.suaded him to postpone this.
May 31, 1924.
174
McAdoo, Mrs. W. G.
Mrs. McAdoo was in constant tears saying that if Mr. McAdoo withdrew
as a candidate it weuld kill him.
Feb. 28, 1924. 57
McClintock, Mt.
Mrs. Chandler Hale told C.(3.H.. that Mr. •icClintock was calling an
her one day when they wv, me pass by, and. Mr. McClintock
said, - "There roes Charles Hamlin. I 3n sure he is ironing
out some differences between Republicans and Democrats in the
Federal Reserve Board, that is his forte."
June 1, 1924. 176
McCord, Federal Reserve Agent
Confers Ath Board as to Citizens First National Bank, Albany, Georgia
May 16, 1924. 143
McCormick, Vance
Gertrude myer says she heard nrs. We-t (Mrs. Miller's friend) sayo
some time Ago, that she went with Vance McCormick and Mrs.Wilson
to the Cathedral to make arrangements for interring President
Wilson's body there.
She told this to Mrs. Chandler Hale and later she asked McCormick
why he had not came to see her pihen ha was in Washington
(icCorwick is hr cousin). - He said he was there only a few
hours. Mrs. Hale said: "You had time enough to take Mrs. West
to Mrs. Wilson and go with them to the Cathedral."
McCormick, in amazement, .Ati he had not seen Mrs. West and she did
not go to Mrs. Wilson or to the Cathedral with him.
June 3, 1924. 177, 178.

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

•164.

McCormick, Vance (cont.)
C.S.H. asks Mrs. Hale for the facts as to whet Gertrude Myer 3aid
about Mrs. West. Mrs. Hale said Mrs. West told her she had
seen Vance McCormick cn the occasion of his visit to Mrs. Wtlaon
to talk over the permanent burial place of Ph.. Wilson; that
Mrs. West evidently did not knoa McCormick was h3r cousin
.
Mrs. Hale said later As saw Mr. McCormick who told her he had not
seen Mrs. West or any won= in Washington for a year!
We were dining at Gertrude Myer' When this occurred and I said to
Gertrude, "You told me that Mrs. West said she had. ozcne to the
Cathedral with McCormick End Mrs. Wilson."
Gertrude at once said, "Yes, I said that and It was not true,
but
what Mrs. Wls t said. anyway was a lie and. what I added made no
differenc I
Certrvde is a dangerous malingerer!
June 12, 1924.

193

McCoy, Judge
Dines with us and with Mrs. McCoy to met Ylanihara.
May 24, 1924. 157
McDougal, Gov.
Discusses discount rates at Governors' Conference.
May?, 1924. 130
Says purchases of Govt. securities ,
;hould be made by Federal Reserve
banks only when rates are high and we wish to 6often
ccnditions;
that when rates are lam we should. sell them.
May 29, 1924. 170
McFadden, Branch bank bill
The Federal Advilory Council qualifiedly indorses the
McFadden branch
bank bill. (H.R. 6855,Feb. 11, 1924.)
Sec. 6 B allows brancheE of national banks in the city
of location
of the parent bank in state: which permit branches.
Sec. 7 amends Sec. 9 of the Federal Reserve Act so that
after the
pasnage of the Act, no state bank can be admitted to
the
Federal Reserve System except on relinquishing any branches
it
may have established beyond the limits of the city of
its
location, and, after the passage of the Act, no member
bank can
establish a branch outside of the city of its locati
on.

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

-106-

lcFadden, Branch bank bill (Cont.)
(Later the House Cctundttee struck out "after the passag
e cf this Act"
making tha Act much more stringent. Tha Senate co.arni
ttea ftnally
restored this.)
Mr. Warburg said the co-uncil was unanimous az to city branch
es, divided
'as to county brancha-, and scarcely considered statewide banking.
He said the Council ,Aas willing to swallow Sac. 7 to
get Section 6 3.
(Sae scrap book fcr notes as to the debate.)
Fe:). 18, 1924. 29
BAnk Suptd. of California wires Boi,rd protesting agains
t McFadden
bill saying it violates an agreement made between the
Board
committee and himself, on his recent visit to Washin
gton, the
Board Committee being Miller, Jmmes and Dawes. He
asks the oarl
to define itself on the McFadden bill.
Feb. 21, 1924. 34
Dawes :novas to substitute for Miller's riotion a genara
l indorsement
of the McFadden bill. Vote!
Aye:
No:

Jane-, Dawes
C.S.H., Gov. C., Platt, Miller

(Even if Sec. Mellon and. Cunningham vote Aye, the
:Lotion
was lost for it would merely make a tie.)
Feb. 29, 1924. 59
Miller's main motion was that the
annu4 report should say that state
banks should be limited as to branches
to atuae degree as
national banks, or that national banks ,;houl
i be -dvan all
power now exercised by rdember banks, - the
latter being the
preference of the Board.
Vote:
Aye - Gov. C., C.S.H., Platt and Miller
No:
Dawes, Janes
If Sec. Mellon and Cunningham are recordsi
No, it will make
a tie and the !notion will be lost.
Feb. 29, 1924. 60
Sec. Mallon racords himself Aye on Dawez
motion And No on Miller's
motion.
The Dawes m otion was therefore lost,
but the Miller woti on astJnds
unless Cunningham records his vote
as No.
Feb. 29, 1924. 60
.

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

-3044.0

McFadden branch bank bill (Cont.)
Assuming Cunningham to vote No, we have the apf'cintive members
favoring giving national banks all power exercised by
state banks as to branches by a vote of 4 to 2, but
the
ex-officio members by voting No tie the vote and prevent
the appointive members expressing their views in their
report to Congress. An extraordinary ,itu:Ationl
Mar. 4, 19.4. 61, 77, 78.
Canninghan. records his vote as Aye on the Dawes motion and
No on
the Miller motion. The latter therefore Is tied and
loat.
Mar. 6, 1924. 64
Cunningham in the debate 'aid he knew nothing of any motion
as
to telling Conereas 'that Board felt al, to the McFadden
bill,
yet only yesterday he recorded his vote ae•Anst it:
Mar. 6, 1924. 66
Warburg tells Board that the Federal Advisory Counci
l bat asked
him to write tr,e Congresoicnal Committee urging
a rule be
granted on the McFadden bill.
C.S.H. said if the Council did this, some members of
the Board
would try to have the Board oppose such a rule.
May 13, 1924. 138
(Walburg did not send the letter.)
Warburg asks what the attitude of the Board is on
the MmFadden
C.S.H. said all members favored extension of powers
of national
banks; that 4 out of 6 of the appointive members appcee
d
cutting down branch powers of state member banks; that
the
2 ex-officio member. voted &o al to make a tie and
pretent
the majority of the appointive membera thus axpres
atng
themselves to Congress.
MAy 13, 1924. 138
Warburg says Council will reconaider its request that
Warlouri ask
for a rule.
May 13, 1924. 138
The Council voted not to ask for a rule.
May 13, 1924.

139

McFadden calls on C.S.H. and said hehad not
called on the Board for
a report on the McFadden bill because he knew the
Board vas
divided on it; that he would sendthe Board later
this morning
a requet for a categoricll answer to certain
qaetions; that
the Board VA8 to meet this afternoon
had not heard of
this :heating.)
May 26, 1924. 161

40
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-108-

McFad'.en branch bank bill (Cont.)
Tells C.S.H. a bill merely giving iutional
bank: the right to have
branches in city of location of parent bank
would have no
chance of pas:Age.
May 26, 1924. 162
C.S.H. believe., McFadden knows Glass will
attack him for not
having asked the opinion of the Board
on this bill and,
therefore, At this late date, and afte
r his com.ittee has
reported the bill, asks the Board for
its opinion.
May 26, 1924. 162
C.S.H. believes the scheme is to forc
e an indorsement of the :, cFadian
,
bill through the Board by a majority
vote.
Aay 26, 1924. 162
James wires from the West his desire
to be recorded as unqualifiedly
in favor of the McFadden bill.
May 26, 1924.

162

T. P. Baal, President of Second Nati
onal Bank, Boston, wires C.E.H.
favoring the McFadden bill.
May 26, 1924.

162

Mr. Adam., of National Shawmut Bank,
Boston, calls up C.F.H. on
telephone and indorses the McFadden
bill;
explains that
the Board is unanimous in favoring
the general increase of
power given to national banks unde
r the bill, but is divided
on the part relating to state bank
branches.
May 26, 1924. 162
P

Dawes is evidently making a camp
aign among the national banks.
May 26, 1924. 162
C.S.H. explained to McFadden how Dawe
a in his annual report and in
a subsequent letter to the comm
ittee, reported that not only
the na.tional banking syateni, but
also the Federal Reserve Syst
em
will be injured unless the powers
of state mmber banks are cut
down, and then joined Sec. Mell
on and voted in the Board against
informing Congress that 4 out of
the 6 appointive members did
not agree with him as to any inju
ry to the Federal ResIrve syst
em.
May 26, 1924. 163

T"-TilmrAiwdh***464Aumaas..
•

iMMAMM

McFadden said whilingly, "This
certainly is an argument in favo
r of
abolishing the Coaptroller or putt
ing him under the Board, as the
comaittee originally favored.
"
May 26, 1924. 163
At the meeting this p.m. a
letter from 4CFadden to Gov.
C. ,va.; read
diking for a vote of the Board
on the McFadden bill, and
adding that any qualificatio
n in the vote would be regarded
a:1 a
vote against the bill!
May 26, 1924. 163

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

-109-

McFadden branch bank bill (Cont.)
C.S.H. pointed out that the original bill permitted state banks
to come in With all brxiche. established befor,? the passage
;
:
of the bill, while the bill as reported required the
relinquishment of all branches out side cf the parent city,
not matter when established,
Dawes at first denied this but final ' y admitted it was true.
Cunningham then read. a resolution, - evidently vrt tten by Dawe.„,that the Board favors the passai-e of the McFadden bill.
Sac. Mellon said the amendments to Sec. 9 of the Fediral Reserve
Act, contained in the bill, werl not in all rezpects good,
but that the Senate could amend it.
C.S.H. and Platt said the bill would change the Federal Reserve
system frau a national system into a purely national bank
system; that it would cause an exodus of state banks from
the system, thus crtppling it aev3r.ay.
Dawes said many national banks would leave the Fed?.ral Reserve
system if it were not passed.
Cunningham resoluticn •
Aye:
No:

then voted on:-

Sec. ,tlellon, Gov. C., Curzitn,i7ham, Dawes
Platt, Miller

Gov. C. said he di I not approve of the amendments to Sec. 9 of the
Federal Reserve Act, but to help the rk.lticnal banks he
voted for the r !solution:
All the members, including Sec. Mellon, deplored the change in
the
connitteels report pointed out by C.S.H., and Dawes agreed
it should and must be changed, but no one sug79zted changing ,
his vote.
Gov. C. in his testimony before the Congressional co:r.mittee
absolutely agreed yith Platt's views, but now votes contra!
. 4..

C.5.H. said the bill as reported did not interfere with any
established branches of present member banks, and p3rmittect
non-membn' banks to enter the system with similar branches,
no natter when established; that this gave an injuatifia'ole
monopoly to the Bank of Italy, Pacific S.W. Co., the
Mercantile Trust Co. and other large state member banks which
have now many brenches.
Someone said Gionini of the Bank of Italy, favored this
bill.
C

H. said he raieit well favor it.

•

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

-110-

McFadden branch bank bill (Cont.)
Considering the mcnopoly it :a.Are him; that one banker told him
(C.S.H.) it waa equivalent to a gift of 10 million dollars.
May 26, 1924. 163, 164, 165, 166
Sec. Glass's ae:Iretary told C.S.H. .over the telephone that the
Senate committee had reported favorftbly /the :1cFadden bill the
other day while Glass Nail in Philalelphia making an addreaa, in
• spite of a gentlemen's agreersent that no action would be taken
while Glaaa was aaAy: that Glass was vary irdignant and would
fight the bill in the Senate and mould defeat it.
May 28, 1924. 167
The SerAis committee reported the bill changing the 1'.ouse bill as
reported so that state banks may enter keeping all branches
established before the passage of the Act.
This restores the provision in the original draft of the House
!Jay 29, 1924. 168
bill.
Glass says the Senate coranittee justified its action in reportincUle bill In his absence by changing the House bill as reported
so that state banks cculd come in with all branches eEtalllished
prior to the passage of the bill.
Glass still bitterly opposes the bill end said it was an .i.ttempt
to legalize the illegal Board resolut'cn of Nov. 7, 1923.
Glass Eays be is uncertain whether merely to fight and vote against
it on its merits, or to arrange for "extended debate" to
defeat it.
May 31, 1924. 175

tripeashha

Congress adjourned without passing the AcFadden bill.
June 7, 1924. 181

-40,0F

rr-4".00

McFadden, Congresaman
Telephones C.S.H. urging tilat the Bori bring pressure upcn the
Federal Re,srve Bank of Atlanta to accept the proposals 'Lade
in cornecticn with the Citizens First National Bank of Albany,
Georgia. As this is a purely banking matter, it was highly
improper for the chairman of the Banking and Currency
committee to attempt thus to influence the Board.
May 16, 1924. 143, 146
McGarrah, Gates
Aided Sec. McAdoo during war.

4i4-441111, 0,00940e,
Impropw

Artill**41140314.41141

. 13:5

McKellar
C.S.H. tells Cordell Hull that the resolution of Sen. McKellar
claiming that Sec. Mellon ib holding office illegklly
because of ownership of bank ami business stock, i3 foolish
and should be killed.
Hull agrees absolutely.

Mar. 30, 1924.

-111-

Mellon, Secretary
Op-,oset; sending Asst. Fed.aral Reserve Agent Brack abroad to help
Robinson on Dawes Commission.
Jan. 2, 1934. 1
Miller eve See.

oiDinLon is a "curb stone" opinion.
Jan. 3, 1924, 3

Opposes sending Gov. Strong to help Young on Dawes Commission.
Feb. 23, 1924. 43
Records hia vote, - Aye, on Dawes motion to approve McFadden bill.
Feb. 29, 1924.
60
Records his vote, - No, on Dr. '4i11eris motion cn branch banks.
Feb. 29, 1924. 50
Sec. Mellon an.' Dawes, ex-officio me:rbers, ,vith Jardes aryl
Cumingheun tie the vote of the Board, preventing the appcintive
members from pre:entirw their opposition to the McFadden
bill to, Congress in the annual report.
Mar. 4, 1924. 60, 61
Gov. C. rnles that Sec. Mellon can only vote by attending meeting
of Board.
Mar. 5, 1924. 63
C.S.H. and H.P.H. :tine with Sec. Mellon.
C.S.H. tells him of the di seensions in the Board. Seemed surprised.
Ma'. 12, 1924.
76
C.S.H. believls any member, irnluiing Sec. Mellon, has a right to
have his vote recorded, when absent, but that he should find
both aides of my ctiestion before he record-A his vote.
Mar. 12, 1924. 77

t t

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

belleve3 that if Sec. Mellon realized that his vote was
being used to legislate against state banks under the guise
of conditions he wculd hesitate to record. it . vithout hearing
.
all the evidence.
Mar. 12, 1924. 77
The practice of recording a vote, as Sec. Mellon has done, without
hearing the other side, is invisible C."-overnrnent in the worst
sense.

Mar. 12, 1924.

-112-

Mellon, Secretary (Cont.)
to Dawes.
,
Sec. 7Zellon's alverse vote on the Miller motion [;,died
members putting
James and Cvn..ingham, prevented the appointive
en
in the Ennual report a etatement or..poeed to tIls Y.eadi
of 4 to 2 favored
bill, altho the appointive members, by a vote
reoort
such a statement. It left Dawes statement in his annual
l committee, and his subsequent latter to the Congressicna
state
that the Fedural Rezerve Systam would be injured unles:3
Cut down, - unchallorgod.
/5r3
banks power to come in with brarIChal; 1
Mar. 12, 1924. 77, 78
all the afternoon
James ald. Dawee have been talleing with Sec. Mellon
es.
on the propoeed new regulations on brunch
Mar. 25, 1924. 85
n just what clause
The committee told the Board. they were not certai
of the first clause as to
.f.ac. Mellon wanted inserted in place
"contiguous territory."
back :laying
'Aillervvent in and conferred with Sec. Mellon, and cxne
of the folloNing clause:he desired. to be recorded in favor
t
"The Federal Reserve Board will restrict the establishmen
s by sach banks or
by branches, agencies, or additional office
bank and
trust companies to the city of location of the parent
territory to and connected
the territorial area within the state
g
with the city of location of the parent bank in uirsal bankin
the situation is such
relations, excepting in instances where
that peculiar and substantial conditions exist making departure
from the rule n:cessary and. desirable."
Miller moved to substitute Sec. !Zellon's draft.
AF 41**Ift 04100400t
ti foods *A .100
. $

tradaba

•

OM, e4wv

•

e4mi.

Dawes insisted that Sec. Mellon corset in and. vote.

1, *if
It1.

eseist.t
Ot Iler
trete
me

*Id ssag lea Lisel
as
tom' edasd
,
ttle el*
r•t!..*-

•

i ee.or ,

:
tr

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

' LAW ..impe is ,
,
.1! t-T.mr4Tc.r: .f0p'4,-.:.

:MVP 5

own
PI 104t?!F 0

fewer edT
-T.
.'

Gov. C. and Platt objected as Sec. Mellon had asked to be rlcorded
in favor of this his own draft.
Dawes rushed out of the room saying he should ace Sec. Mellon and
would. not ask the consent of the Board either.
Dawes soon returned saying that ha could see Sec. Mellon only for
a moment but that he had inti.iated he might possibly agree to
the insertion after the Nord "relations" cf the following:
"Said territory having been defined in the resolution of
Nov. 7, 1923, and the amendment pa -red in Jan. 1924."

-113-

Mellon, Secretary (Cont.)
Dawes moved to insert above.
Loot, 4 to 3, Sac. !Qellon to have the right to be recor
ded.
Miller's motion was carried, 4 to 3, but Sec. Mellon to have
right
to be recorded.
Mar. 26, 1924. 85, 86, 87
On motion to accept the regulations as amended, it was passe
.
d, 4 to 3,
Sec. '4ellon to have the right to record his vote.
Mar. 26, 1924. 88
C.S.H. feels Sec. Mellon's draft was, on the whole, not
very
objectionable, as it really gave the Board the riFht
to permit
state-wide branches, if it saw fit.

.41 f

rAU, SLUO, IL)

4141.);444

"eNCVIJ

:falS Lk:

A vote by Sec. Mellon against the regulations would defea
t them by
causing a tie, but C.3.H. does not S38 how he could
record
himself against his own draft.
Mar. 26, 1924. 89'

.1. CIA

tc,a;Lf:: 1/41r.
')!,"1!440
.;

V;Zi
etre"
:ev-sta
i 5e1ruto71 ,a6rtnettslc to'
j't 1an()ITO
.tvn. "J
sgt,
sea i
43hist
dze-thq ed.?
InIS:istxi: ,onoVsloI
,
i.r•L:e,,-.11
442:,.m.460p, .7-1.,4
:.
i at!' r, ,3C.
II ft
01
.66- 7

F.71*.nod
3ste-i.kaq
LOt;;C:r1r
r.b7t
Y.1114* Ler,ra...r al
..)_:1,..-AgJls
va
:1t
t

:Awe o..!

Ete. •

•

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

oe?

;n
t4Le ;SA., aA
t.1

c.d.!

I:01i01:1 Ag,-

VZ.tt5": .1.).!;~
of.
rlov e.ti 1e:1c
C

:.t etiv."
W

•jJi

WO
e,i 'to .7.-.ee.no.o 0,713

.14.:•.
gc .eY

.
1- ..e,:oet,cfo
i-oko Ig/ti

Lt* i3C

ZiV.ifX1,0
et trui

Gov. C. tells C.S.H. that Dawes, with Pole, his chief
examiner, haq
a long conference with Sec. Mellon thio afternoon
taking with
him the minutes of today's meeting. Gov. C. said
he haTi no
right to do this and was bitterly incensed.
Mar. 261 1924. 90
Dawes ,ells C.S.11. that Sec. Mellbn will vote so
as to make a tie
on the two above motions ant bagged ma to accept
his
amendment which ILA been voted down. C.S.H. said
he v..c uld
consider it but did not believe he could. change
his mind.
Mar. 26, 1924. 90

.oea

c7 1.41t

;4117,.6-

cqf o:

•:r

: c14.4-u

The spectacle of DEVNOS, an ex-officio member, rushi
ng out of the
meeting to persuade Sec. Mallon to change the vote
he hal just
asked to be record.ed, is positive evidence that the
Federal
Re.;erve Board is dominated by the ex-officio a- mbers
a
, both
political appointees.
Mar. 26, 1924. 90

ffrA

Dawe

C.
Platt come into my office. I said I
zould not
accept Dawes amendment but would try to
draft some
.
ccmprcxnise I could ac opt.

I thereupon drafted the following,
which only slightly iiffers
from Dawes addition to Sec. M811071°8
draft:.1

"The Federal Reserve Board will
an a gent' al principle
restrict the establishment of branc
hes, agencies, or
additional offices, by such banks 'or
trust carpaniss, to
the city of location of the parent
bank andthe territorial

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

-l14-

Mellon, Sec. (Cont.)
area within the state tributory to and. connected with the
cit:y of location of the parent bAlnk in usual banking relations,
as said territory has been defined in the 73oard's resolution
of Nov. 7, 1923, excepting in in stences where the state
ban1;.ing authorities have certified •_:,nd the Board finds that
public neceselty and advantage renders a depar Au's from the
principle necessary or desirable."
At the ::ieeting, C.S.H. read. this to th Board, not agreeing in
advance to accept it, but saying he might accept it as a
compromise.
0.5.H. said he omitted all reference to the amendment of Jan. 1924
(A3 to additional territory around San Francisco and Los
Angeles), as this wouli remain as an exception to the gen)ral
principle of his compromise regulation.
Jams, after hearing it read, ru.shed out of the room and shortly
returned with Sec. Mellon, who took the chair and strongly
advocated C.3.H.
compromise.
Miller at*acked it sa,
-ing it left the matter wide open.
Sec. Mellon said this micht be true as a raa., er of votim-, but that
the principle and exceptions WSTS fair.
then moved subatiti2ting "contiguous thereto" instead of
"tributar:, to and connected with the city of location of the
,
parent bank in usual banking relations."
C.F.H., assuming Miller would. vote for the compromise if this were
dcne, finally accept.'" Miller's, amendment.
Vote:
Aye:
No:

S'Ec. Mellon, C.S.H., J,Lues, Cunringharn, Dawes
Gov. C., Platt, Miller

Sec. Mellon showed plainly his disgust at .1111er for so voting.
To' co:.plete the parliamentary record Sec. Mellon then voted against
Miller's and Janes' motions, so as to make
tie and
defeat each.
, ?

•

A formal motion was r.iale by James to adopt the regulations and
the vote was the dams as in C.S.H.Is motion.
Mar. 27, 1934. 91, 92, 93, 94.

tlte
t
It •

44
4.1

•

-AL- •

C.S.H. sumelAry of above, as to Se!.. Mellon.

0410:04, mt4
.11,41 oft,* SAMIG
4 It

'sr

9:5, 96.

C.S.H. explains reasans for his vote for the regaol'Ations.

).C.

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

-113--

Sec.(Cont.)
Warhurg said Sec. Mellon favored the authority of Faieral Re.,erve
banke to purchase the German trade bills, provided they
were negotiable cotanercial bills, and stid he would
the tate Departwent if there was any international rianon for
refusing our consent.
April 7, 1924. 110

•

ec.;dellon tells Board he did not deem it necessary to consult the
State Dopart.i.ent as to the German trade bills as the laestion
was purely a banking one.
April 8, 1924. 111

•

Platt says Sac. e11on sent Under Secretary Winstcn to him to say
thlt he arreed to much of vat Platt believed, and that the
Board should make sore r3commenda ioro to save for country
banks, at lealt, the right to have branches.
April 16, 1924. 117, 118.
Felleral Reserve Agent Wills tolls C.S.H. he has talked with Sec.Mellon
in behalf of Jr. lillerla realDpointment; that hip told
Sec. Mellon he hoped he would not be prejudiced because
Aller'voted acainst C.S.H.le compromise branch bank reaulation.
He said. Sec- Mellon said Miller had explained this to him and
that he as favorable to his reappointment.
April 23, 1924. 121
C.F.H. meets Sec. lellon at Sen. Pepper's reception at Lauschers; he
did not know, until C.S.H. told him, of Jame' marriag..
April 23, 1924. 121

•

Sec. Mellon at first op-)oued the reduction in the Feoaral Reserve
Bank of New York discount rate from 42 to 4%, but finally
/i
acquiesced.
April 28, 1924. 124
Miller says Sec. million -told him at the Wallace wedding, a fe.: 4 ays
ago, that President Coolidge told him his appointment was
settled.
May 19, 1924. 147
Gov. Strong says Sec. mellon was gratly disturbed at the action of
the Federal Reserve Bank of Cleveland in leasing rooms to
the Rep. Natl. Committee.
May 24, 1924. 157
cec. Aellon attends
bill. Says
Reserve Act
could amend

meeting of the Board to consider the !cFaldan
he thought the amendLent of Sec. 9 of the Federal
ma• not in all respects Food, but that the Senate
it.

See. Mellon votes to indorse the McFadden bill.
May 26, 1924. 164, 165

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

-116-

Mellon, Sec. (Cont.)
Sec. Mellon deplored the change made by the H.R. Committae in
reporting the bill, providing that state banks entering the
system must relinquish all branches outside tha city of
location, no matter whether acquired before or after the
passage of the bill.
May 26, 1924. 163
Mrs. Chandler Hale tells C.S.H. he Krimired Sec. 'fell= greatly, and
C.F.H. explained to her his plan for income tax reduction which
the Republicans in Congre:.s had unceremoniously thrown lown.
June 1, 1924. 176, 177
Sec. Alellon asks Board to take no action az to aprcintmant of
Federal Reserve Agant at Minneapolis until he could confer
with the Board. At our request he came into the meeting and
we told him What we had done. He asked for delay until a
week from next Tuecday, to which we agreed.
June 5, 1924. 180
3sc. Mellon discusses with the Board the suggested apQcintment of
John Mitchell az Federal Reserve Agent at Minneapolis. He
was not unfavorable but we decidad to wait a few weeks
before final action.
June 17, 1924. 194, 195, 196
C.S.H. ilkz Sac. Mellon whether he was not sworn in by a
Notary as Sec. Of the Treasury after being: sworn !ri by
Chief Justice White. Sac. Mellon said Nc.
I looked my diary and found that I had told Houston that the
Chief Justics, not being a Notary, could not administer
the oath of office, Add that Houston told we later that he
had toll this to FAIO. ',Fallon and that the oath had been
later administered to him by a Notary.
He finally said he hal a vague recollection that what I said
might be true, ana that he scull look the matter up.
June 17, 1924.
Melting of silver dollars.
See - Pittman Act
Thomas

196, 198

98 tc 106

Member banks
Gov. Case deprecates the :ompetition with mambar tanks caused by
Federal Reserve bank purchase of Govt. nacuritie2 and
acceptances, and thinks it will interfere with Treasury
operations.
May 7, 1924. 132, 133

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

-117-

Memorandum of C.S.H.
On Fed3ral Reserve note ism's, combating 'Allier's claim thr.t they
should be reduced by the F. R. Board.
Feb. 14, 1924. 19, 20, 21
Mercantile Trust Co., Sun Francisco
California Suptd. of Bunking says he can examine simultaneously
the branches of.
Mar. 20, 1924. 82
Meyer, Eugene
Mr. and Mrs. Meyer dine with us to meet the Egyptian 'linVAer.
May 25, 1924. 161
Strong says, is one of the Wall Street men brought to the Treasury
by McAdoo.
May 29, 1924.
174
Miller, Adolph
Aske Board tc give Asst. F.R. Agent Breck of F.P. Bank of San
Francisco leave of absence with full pay to go with
Robinson Allf the Dawes_Com:Assion.
C.S.H. dbjectei:.
(a) No authority in Board
(b) Violates Senate reeervation to Treaty between U.S.
and Germany, forbidding sending any $ant.,ission
abroad without direct authority of Congress.
Miller 3811 we could send Brack assigning soma other nominal reason:
Gov. C. said Sec. Mellon and the Cabinet lid not approve.
Robinson than came in.
Miller wain said there was no reason why Breck coul t not be sent,
in spite of what Sec. :Zenon
Miller evidently was "performing" before Robinson.
C.S.H. reads Senate reservation to Treaty betwem U. . and
Germany. (42 sts. at Large, p. 1945)
Miller contended for over an hour that a Board resolution could be
passed which would be unobjectionable.
C.S.H. and James said in form but not in truth.
C.S.H. moved Perrin be instructed that the Board had no authority to
make this assignment.
Ii113r still wrangled.

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

-118-

Miller, Adolph (Cont.)
C.S.H. said the Cogstroller General would lisallow any payment of
salary to Brack for any such purpose.
Miller said in such event he would tall the Comptroller to go to
hell:
Miller said Mellonts disapproval was a "curbstone opinion."
Miller 3a1d C.F'.FT. acted like a scared school girl.
Miller then moved as a substitute fcr C.S.F.'s motion that
the Governor consult the Secretary of State.
C.S.H. said this would be discourteous to Sec. Mellor..
C.S.H.Is

otion vas carried.

Miller voted No.
C.S.H. thinks Miller has some relations with Robinson, perhaps
financial relations, which :bade him so insistent. It may be
that Robinson helped him put up the 600,000 for the Globe
Ccmisany.
Jan. 21 1924. 1,2,314.
Miller votes No on C.S.H. motion that the time within which blanket
authority will be given for plant: for branches be extended frcm
Feb. 1, 1924 to April 1, 1924.
Jan. 7, 1924. 4
Miller said he was in sympathy with Cunningham resolution that the
ccsamittee on salaries and expenditure c• report on the number of
officers, salaries, etc. with a view to effecting economies,
and then proceeded bitterly to assail it.
Miller said he approved a similar resolution cffered by
On the vote, Miller declined to vote.
Jan. 14, 1924.

yea's ago.

5, 6.

Miller bitterly opposes C.S.H.ts motion to discherge the economy and
efficiency committee from the duty of making recommendations
based on its research work and to transfer this function to the
salaries and expendi tures commit tee.
cited the vote of the Board months ago directing '11.11eris
economy .3nd efficiency :omrnit tee to report on the F.H. Agents
mcnthly re:ports, ,
.vhic...h lay sleeping in !illeris coax- tte).
A
said the committee had not reported and woull. not.

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

-119-

'4111er, Adolph (Cont.)
C.r.F.. sail that as the reason for, his motion.
,
C.F...H. final] y susperrieci hie ;Lotion f.nci moved to rsconsicier the
adverse vote on CuLin inghan s resolution.
Miller said he thoroughly approved the resolution if the committee
should be directed instead of authorized.
The Board finally voted, to reconsider.
Miller alone voted Not
Jan. 17, 1921.

6, 7.

Miller presents a r_le.zorandizn containing suggeztial z for the annual
report.
His article favored limiting of filture F.R. note issues by the Board.
It stated that F.R. note issues had been the cause of past inflation;
that member banks rediscounted. for the purpose of obtainIng
F.R. notes; that the F.R. banks were originally created
primarily•as note issuing banks.
C.c•.H. s ^.:er3orandurn stated that every F.R. note iti sue, - except those
issued dollar for iollar against gold, - grew out of an
antecedent rediscount of commercial pbver, end that the Board
could effectually regulate F.R. note issiies by controlling
thee antecededt credits.
(3ee, : crap book.)
,
Miller was very ugly and sail my memorandum .vas "muddleheaded," as he
was prepared to show.
C.S.H. told Miller to put his memorandum in the annual report and he
would. file a m inor it y report
Feb. 14, 1924. 19, 20.
C.S.H. addresses Board as a matter of personal privilswe, saying that
one reason for preparing his mancrandurn •vas as follows:1.

Miller, in May-, 192.31 attacited F.R. note i:sues 0,e. the
cause of inflation, past and preset.

Miller bitterly at packed the other members of the Board
for gross negligence in surrendering to the F.R. banks
the power crer F.11 note issues, leaving their izsue
to the uncontrolled power of the ignorant directors to
flood the country with per is ,
ues, this caueing the
apeculaticn and inflation which folloNed.

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

Miller, Adolph (Cont.)
C.C.H. said this was an unjust and untrue attack upon members not
now an the Board; that the Board gave more study to the que6tion
of F.R. note issues than to any other qaestion before it; that
the Board's policy at that time was unanimou..7, including Miller.
voted !'11.31er as f:JAtoring the Board's policy.
Miller denied this, Lind C.S.H. said he had quoted his exact words, ant
that unless yes meant no, he'Iii fivor it.
(Se i scrap book).
C.S.H. said he did not question 'Illler's rioht to chamrs his mind, as
he had frequent) y done before. .
C. S.H. ac an instance of Miller's change of mind, reminded hits that
he as proba.'lly the original "deflationist" of the country,
quotinq his article in the annals of Political and Coeial S.31ence.
(see scrap book.)
Miller rnade no reply to this.
C.S.H. referred to Miller's statement that C.91.11.'s statement was
.
"muddle headed," at which Miller began to apologize, but C.S.H.
sail no apology was neceseary, as the phrase implied no
opprobrium but was the one usually used. by economists to indicate
disagreement with the views of their brother economists, and I
felt flattered at being treated as if I 'vire an economist, for
Miller elevated me to that Freda by the use of this phrase.
At this, the whole Board was convulsed .with laughter'
Miller finally agreed to strike out all r f-erance to the necessity
for Board regulation of note issues, and to the atatamer.t
that F.R. banks were created primarily as note issuing banks,
and the epieode ended.
Feb. 15, 1924. 21, 22.
Bank Superintendent Johnson wires Board that the McFadden bill is
absolutely tnconsistent with the agreement entered into by him
with the Boa.rd's canAtte, - Miller, James and Dawes, when last
in Washington.
Feb. 21, 1924. 34
Gov. C. says he will try to induce
to put through the Board
and insert in the annual report his resdition that national banks
ehould be given all branch powers now exercised by member banks.
Feb. 21, 1924. 34, 35.
Twohey, of Federal Advisory Counail asks C. .H. If he does not think
Miller ski ould be reappo int ed. C.S.H. said. ha 1-a1 differed with
Miller :sore than with any other meeiser, but that he reco -nized
that he was an economist and believed there 3hould always be one
accnomiat on the Board, and. that he thought it wise to rea - s., int 1-.1rn.
,

.411I

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

-121-

Miller, Adolph (Cont.)
It was very difficult to t;ay this in view of Miller's personal
idiosyncracies, but I leaned backward to avoid any suspicion of
personal prejudice.
Miller is lazy and hates to clic, but on the whole has done •Jorne

iTocd.

woes.

In disputing with hia, I have got at the --ist cf many serious problems.
Miller' a normal tendency is to :i.ay No to every que:ition: he has no idea
of practical aiministration; he always wants to decide every
quetition wi thout Marine- the evidence pro and con, in fact, evidence
seelis to annoy him.
If he ware not revpointed, however, doubtless so:ne politician wo,11.d be
given the place.
On the whole, therefore, I attach more i*portance to his econcr.alc fitness
than to his personal unfitness, and I lf.11011 I cen always watch him.
Feb. 23, 1924.
41, 42.
Miller says that when Perrin asked authority to detail Break to
Robinson, a friendof Robinson saw Sec. Ilu.,Ihes whc aid, it would be
most Inadvisable to detail Break.
Miller said he did not tell the Board of this at the time for 4 t had
.
already declined to detail Breck.
Feb. 3.3, 1924. 43
Miller favors granting the petition to take over the Valley Bank of
Fresno, al.1 so votes.
Feb. 25, 1924. 47
Miller moved to approve the applicaticn of the 7.astern Banking and.
Trust Cowan. at New'ourn, North Carolina, on conditiontleat the state
,
"
was giving a satisfactory, simultaneous examinztion, and that
the cualition of the plrent bank and branch was sound.
Platt offered an merriment conditioned uoc the parent bank and branch
.
,n
were found sound on examination by the state or by the F.I1 bank.
Platt'a amendment was carr
Gov. C. and "riller alone voted for Miller'' motion.
Millen* said if his policy .vere not accepted
our hands in California.
. .

.werbeewirtaikw4dealwaliwaria.

might as well throw up

C.S.H. toll Miller the Board had: no such power, apart from new legislation
by Congress.
Feb. 2b, 19'..!4. 49, O.

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

.422
-

Miller, Adolph (Conh.)
.Miller bitterly objects to C.S.H.Is motion ordering a simultaneous
examination by the F.R. bank of all state member banks and
branches where the state Was not giving a satisf3ctory simultaneous
examination, and votes against it. Lost in a tie.
Feb. 28, 1924. 53, 54.
Miller says he is to introduce a resolution to effect that the Board
shall hereafter admit no state banks with branches unless the state
is examining them simultaneously and satisfactorily.
C.S.H. points out this is in violation of Section 9, P.R. Act, which
requires a F.R. examination if the state examination is
unsatisfactory.
Miller was furious andssid we were an cowards.
Miller also said that President Coolidge ought to be informed as to
contiticns in the Board so he could "clean it mt."
Miller is Clearly trying to devise some way of keeping out branches of
state member banks aid this seems to him a specious way of doing it.
54, 55
Feb. 28,1924.
Aller offers a draft of regulation that the Board voill refuse to
receive any application for a branch from a state member bank
in a state which did not provide fcas adequate, simultaneous
examination of the state bank or trust company with its branches,
whether a member or non-member bank.
C.S.H. End Platt pointed out its illegality, but all to no avail.
Passed, Miller voting for it.
rob. 29, 1924.

Miller offers a draft for annual report that either state banks should bt
limited to branch powers enjoyed by national banks, or that national
banks be given all branch powers now enjoyed by state member banks, the latter being recommended by the Board.
Agreed that Sec. Mellon and Cunningham could record their votes.
Dawes moved to substitute a general indorsement of the McFadden bill.
Miller voted against this.
Feb. 29, 1924. 59
Miller voted for his
in motion, which was passed, subject to failure
as a tie, if sec• vellon end Cunningham recorded their vobes
against it.
Feb. 29, 1924. 60
Miller accepts C.S.H.Is motion to strike out all referenc3 to separate
reserves for notes and deposits from the annual report.

-123-

ic
(.64-rip) t
a 44.4itdo vt.t.t4J te
101,aritemze
tMZC
1.44 eltrtw
thixø
s,'ICZ CV '1+, 4411

1,1oif. *I .
;
arroessal Ltar fa is 1. .1...st:f.•.7
•I Le *.o *sad
but 14*Lii4f.
i1
-11v/7,1 :On tbtx
szostis411,411$
.:1
r!i
.It

Miller, Adolph (Cont.)
C.S.H. accepts amendment of Miller to insert a short sentence saying
that the existing reserve statement does not accurately show
reserve conditions.

avika telifitt
1,( El
t. eourdoirs
£4,441.
ors dt.tii.bis.
,rtralaxize •
a* bat., xle tioeite.11;.:-.1!fa AD:1: 'k.
I

After long discussion C.S.H.'s motion was lost, Miller and all members
except C.S.H. and Cunningham, including Miller, voting against it.

Jae: .tr*rti co' rsop

ttay
eoa.ta

4et :Lie:a,:k

alsa4
rso.tbe 10.a7,1%;11;': is! al ale,: :dt
aolJhalmxe .M.1 a eest4cri,es
10.1,:a.4
al no1:411:414ix
cite.=
.Vie
LLa e1c • elv
0: ChiLii1sc-

o: :rigi; t,.r' Lo<J;.`)
fT1
II net ID"
-11C*

10 6eXtrditerld
5
4! 7 £1., of lo

.8 Lto t.e,:kt

ok?

..L1.1 'L(

te4

a.0e,/,‘ 16Illy(
-tor, 114.1011 •rf+"ciLI. 41,h
ELLM

e•

16 1"t.e!.

9
kiLf/e k , M
.

CS.

tir.$
.

4 atello
Vs)
:Oil*eine
,t1t,Pe.
O1Jtrsa Aryl eat':
.
4.
S& L =11 4..: .rst•so .4 tO
laisd •terriazfo
1 rfc1!iv7 tJ3:11 a ill
.cm Istivonq 4
.
,
(c. ,•aupsta
avoersiz
.
Assad 'e 3 eZe ,. 6:i„; to no 1lisai ma*
. 1*
44o , utierilnot zurs,1
t
, erforsal
• a iss.41trta

Miller was very ugly and. finally. moved that the minority view of
C.S.H. and. Cunningham be adopted, and C.S.H. thinks this motion
prevailed.
Miller said this was the last time he shoulii vote on split ressrves
and •perhaps the last time kis should vote on any question.
Miller bitterly attacked the members saying that they were dominated
by the minority; that the minority had imposed Soviet Govt. on the Board.
March 5, 1924. 62
Miller said. that the foot tiiat all of the Governors opposed splitting
.
the reserves was an absolutely conclusive reason to him for
insisting upon splitting them!
March 5, 1924. 63

0: larAvt

tsloq :Sala

,X`11-Ese/li afl .co

OfT

itsEgac!

.$1 not anIt7*7

,• es .c;ex
11,.•..r 41 bull° 'le/ Ind
410 c-rs .r.a.urtrui
.tr,
e'zre4e
/feat
rieroq ff.=Arid o:
,eissisci• trzsoilAti f
raioin :ad:
dLIi rrevla ad
wort i.t*t,
c Leo t
*triad I a:4mmea
.
..ttatla trf: •trf botrse=”a: uzie rf.le:141.S. est:
tLLsOrstrahae

ns.thatobi e

o 341ezealo.br.2 Ian z.1.4 a s311114editii ct4,,Levorr. eeviaG
•

Et
en.ollat o
seat),

olaisaqes oi

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

befer0

.ea

1--1ooe's .blmon aurfyllarxr? Lati

•oe:or

rtiCSA

beSov

„net „es .det

,
e
scfrs. ,1- ssaq. ea* riot* ,rio/1„a: 11!a= old *so': teJov •teli114
bebamen ma4grzi 'irs.srt•/` boa rto116.1 oel

.det

Ski le&fi

aJgaz)r.a.
noltow a'
-.rieftelez 1Z& 2UO iaNa
selors 131 uvnesel
bine
1
3
?.,f40115. es41 ,posei EllaOtiel,

Miller attacks- Cubninghan for saying he would not vote for the annual
report as it did not give a full report of the Board's operations,
saying, in a most reproving we,v, that 6 weeks ago Cunningham was
asked to present a draft on agricultural problems for the
annual. report, and.yet he had done nothing about it.
Miller added, - "If you don't approve of the report, thy don't you
file a minority report?"
This seemed to phase Cunningham Who admitted he had forgotten all
about it.
Cti the moticn
adopt the annual report it was carried, 3 to 2, but
Miller refused to vote.
C.S.H. told Miller he ought to vote one way or another, as by refusing
to vote be really alligned himself with Cunningham and James,
viho voted No, and that we ought not to send a 3 to 2 report to
Congress. Miller then voted Aye.
Mar. 7, 1924. 64, 65, 66.
The special committee, - Miller, James and Platt, presented the draft
of new regulators.
Mar. 7, 1924. 67

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

.124
-

Miller, Adolph (Cont.)
Miller and James said Johnson told them that be was examining
simultaneously all but the 4 banks having the largest number
.of branches.
Mar. 7, 1924. 67
Miller pointed out that the draft reported said the Board would not
entertain an application unless simh bank was being examined
simultaneously, i.e., in California, it applied only to the 4
largest state banks.
Mar. 7, 1924. 67, 68
Miller and James got in a row as to the condition that the Board will
grant an application only in the place of location and contiguous
territory as defined by the Board.
Miller wanted inserted a clause covering territory tributary in a
banking sense to the parent bank.
C.S.R. said although he lid not favor the area defined in.the
resolution of Nov. /, 1923, it was at least clear and specifio
while Miller's was hopelessly vague.
Mar. 7, 1924. 68, 69.
Miller gave notice he would move to amend by inserting his ecoromic
and banking zone draft.
Mar. 7, 1924. 70
Miller moves that the application of a bank in Elisabeth City, South
Carolina, to take over a bank 4/3 miles away and ma it as a
branch, be referred to the Federal Reserve Agent to report
whether desirable an banking grounds, wholly apart from the
Nov. 7, 1923, resolution.
Miller votes against postponing this for a meeting of the full Board.
Mar. 12, 1924. 74
C.S.H. feels Miller could not possibly be designated as Govarnor.
Mar. 7, 1924. 76
Miller opposes application of Paotr. 8. W. Co. to merge a national
bank at Torrence, 15 adios from LOS Angeles, and within the
territory defined by the Jan. 1924 amendment to the resolution
of Nov. 7, 1923.
Miller we the Pacif. S. W. Co. has reached the limit of safety as
to branches and has really gone beyond the limit.
Miller moved to r•jeot the application because the state was not
examining the bank and branches simultaneously.
C.S.H. mowed postponement pending a simultaneous examination
by the
Federal Reserve Bank.

ANS*

Miller, Adolph (Cont.)
Miller votes No. Lost on the vote.
Miller votes No on C.S.H.'s motion Cat a simultaneous examination
be held by Hereon of all California state member banks and
branches, which are not now being so examined by the state
vote passed.
Mar. 18, 1924. 79, 80
In debate on Miller's main moticn he denied saying the Pacif. S.W.
Co. had gone beyond the limit of safety, saying he was
referring only to the banking situation, adding that he hai
not the slightest doubt but chat a simultaneous examination
would show that the Pacif. S.W. Co. was in fine condition.
Miller objects to C.S.H. request that this statement be put in the
minutes.
C.S.H. insisted and said Miller's remark showed he was merely
seeking an excuse for rejecting the application, by putting it
on the ground of failure to examine simultaneously, while
averring tint such an examination would reveal that the bank
was in sound condition.
Miller's motion was passed 5 to 3.
Mar. 18, 1924. 81
Miller moves to strike out of draft of regulations, "contiguous
territory" etc. and substitute *banking area tributory to
the parent bank, etc."
Miller admits this would repeal the resolution of Nov. 7, 1923.
Set down for special assignment.
Mar. 18, 1924.
st'Lm0(

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

Miller says the simultaneous exaninaticn under C.S.H.'s motion which
was passed will precipitate a banking crisis in California'

.1clatc vcri.)

IT"
:

it4

4—

Miller is evidently seeking an excuse for prohibiting further branches.
Mar. 20, 1924. 83

c
‘

a," 4

Miller consults Sec. Mellon-and returns bearing a draft as to branches
which Mellon asks to be recorded for.

,
ri

Y„d

Miller moves to sibstitute Sec. Mellon's draft.
•••:43,0;

1-41$
1.41..-:::v.eci

V7;7.
,
E

=etel 04 Lvem5;4flE
a:L7.axt

Dawes rushes into Sec. Mellon's office and returns saying may
possibly agree to his motion .to insert a reference to thl
Nov. 7, 1923 resolution 'and. amendment of Jan. 1924.
Miller votes against Dawes motif= to substitute this.

Lost

:4
ca:

; tai

Miller votes for his own motion to substitute Sec. Mellon's draft.
Carried 4 to 3 but Sec. M. to have right to record vote.
Mar. 26, 1924. 85, 86, 87.

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

.426
-

Miller, Adolph (Cont.)
Miller votes against C.S. H.'s proposed draft requiring simultaneous
examination by the state or 7.R. authorities. Lost
Miller's vote to adopt the regulations as amended.
Mar. 26, 1924. 88
Miller attacks C.S.H.'s compranise draft of regulations as to
branches, saying it leaves the whole matter wide open.
Mar. 27, 1924. 92
Miller suggests striking out from C.S.H.'s draft the clause
Itributory to and cormectel with the city of location of the
parent bank in usual backing relations* and substituting the
words "contiguous thereto."
(Yet on Mar. 18 he moved to strike out of the original draft
the words *contiguous territorrand substitute *banking
area tributory to the parent bankl" (see p. 82). )
C.S.H. accepted w1.th reluctance Miller's suggestion, assuming
Miller would vote for the draft with his amendment in it.
On C.S.H.'s motion to accept his compromise draft with Miller's
amendment, the vote was in favor, Tito 3.
Miller, hcwavar,. much to Sec. Mellon's disgust, voted No.
Ma. 27, 1924. 93
Miller bitterly attacks Dawes because of his letter to McFadden
stating that the Federal Reserve Act was in danger unless tie
McFadden bill 'ass passed, charging that he wrote as if this
was the opinion of the Board, whereas 4 out of the 6 appointive
members were of a different opinion.
Miller said Dawes should have first submitted the question to the
Board.
Dawes said he was merely expressing his personal opinion.
Mar. 27, 1924. 94
Miller says Smead's memorandum on the views of Sen. Reed on the
bonus bill is good, but might well be condensrt,
faller agrees to sending any memorandum O.K.'d by Stuart.
April 17, 1924. 118
Federal Reserve Agent Rills tells C.S.H. he has had a talk with
Sec. Mellon as to Miller's reappointment on the F.R. Board.;
that he told Mellon he hoped he would not be prejudiced
against Millar because he voted against C.S.H.'s compronise

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

Miller, Adolph (Cont.)
regulation on branch banks; that Mellon said Miller had
explained this to him and that he was favorable to his
reappointment. C.S.H. explained why he favored it.
April 23, 1924. 121
Favors lowering N. Y. discount rate from 41 to 4%.
April 26, 1924. 124
In discussing discount rates Miller said the Federal Reserve System
should llgA, downward as well as upward; that lower diecount
rates would mean lower cost of manufacture; that prices had
declined 15% in six months and that this interfered with
carrying large inventories and made for uncertainty.
May 7, 1924. 131
Agrees with C.S.H. that the principal banks should reduce rates.
May 7, 1924. 131
Miller says now is the time for Federal Reserve banks to infest in
the open market in order to acquire a weapon to use later
if speculative candition3 should arise.
May 7, 1926. 132
Silly tells C.S.H. that the Federal Advisory Council voted informally
in favor of the reappointment of Miller on the F.R. Board.
May 13, 1924. 142
President Coolidge renominates Miller for the P.R. Board.
May 17, 1924 (Saturday).147
C.S.H. goes into Miller's office and congratulates him.
Miller said Sec. Mellon told him at the Wallace wedding, a few
days ago, that President Coolidge told him it was settled.
Miller said Gionini, of the Bank of Italy, had wired congratulations
and had even sent him flowers.
May 19, 1924. 147
Miller tells Cunninghamthe Board was criticised for not having sooner
controlled credit by putting up discount rates.
May 21, 1924. 150
Miller said he had had a two-hour's talk with Under Secretary
Winston yesterday to persuade him that the F.R. banks should
increase their earning assets by open market purchases of
Govt. securities; that he thoaght linston's objection was
rather for tactical reasons, and that he was prepared to see
us do it if we could present a carefally drawn-up plan

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

Miller, Adolph (Cont.)
showing clearly the necessity; that he was absolutely
indifferent as to the question of deficient earnings, ani
thought this of absolutely no importare e.
C.S.H. feels this shows domination by the Treasury,
May 21, 1924. 150
Sec. Glass calls on C.S.H. but never once referred to Miller's
nomination for the F.R. Board.
May 22, 1924. 152
Min' takes issue with Gov. Strong's opinion that the debt owed us
by the Allies should be readjusted, saying that full payment
was necessary to protect the sacredness of an international
oblikation.
May 22, 1924. 153
Miller votes with C.S.H.aird Platt against Cunningham's resolution
favoring the :Wadden bill.
May 26, 1924. 165
Miller disagrees with Gov. Strong that the F.R. Bank of New York
should be permitted to meet a speculative situation in
New York if one should arise, by selling Govt. securities
without first getting the consent of the Open Market
Committee, saying that no one bank should be allowed thus to
control the stock market unless it were the consensus of
opinion of the other F.R. banks, the open market cannittee,
and the Federal Reserve Board.
May 29, 1924. 169
Miller says if there is any doubt as to the power of the Board to
forbid the purchase or sale of Govt. securities by P.R. Banks,
we should ask Congress togive us that purer.
May 29, 1924. 170
Senator Glass says Miller's naninati on was O.K.'d by the members of
the committee without a meeting, and that there was no
opposition in the Senate.
May 31, 1924. 175
C.S.H. feels there is a mystery about Miller's nomination. It was
sent in late one Saturday afternoon, just a we* ago, and
was confirmed the next Friday. C.S.H. saw no mention of
it in the papers until after he was confirmed, although
others said it was mentioned.
May 31, 1924. 175, 176
Miller is appointed with Cunningham to meet John Mitchell in
New York and talk over with him his possible appointment as
F.R. Agent at Minneapolis. June 5, 1924. 179

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

-129-

Miller, Adolph (Cont.)
Miller says the Treasury should agree to ask Congress to reimburse
the F.R. banks if they assumed until Julylst the expense of
shipping and insuring unfit currency.
June 12, 1924. 189
Miller's committee reports all facts as to Mitchell's losses and
recommended his appointment as Federal Reserve Agent.
June 17, 1924. 194, 195
Miller takes oath of office for new term as a member of the
Fedral Reserve Board.
June 17, 1924. 196
(He also took another oath at the beginning of his new
term, - Aug. 10, 1924, being advised to do this by C.S.H.
ami Wyatt).
Miller defends proposed differential by Philadelphia, in favor of
6 months paper and 9 months paper, saying the longer
maturity should carry a higher rate.
June 17, 1924. 196, 197
Milli', Mrs. Adolph
Mrs. Chandler Hale tells C.S.H. she has seen something of
Mrs. Miller at Mah Jong parties, and that every once in a
while she would say something which made her feel she was
not vita a lady; that she called every one "Deary" etc.
June 3, 1924.
178
Minority
Miller says the minority governs the Board and that President
Coolidge ought to be informed. so he could *clean it out."
February 28, 1924. 54, 55.
Minority report
Cunningham and Janes say they will not file a, on annual report
of Board.
Mar. 7, 1924. 66
Mitchell, John
Mr. Prince, of P.A. Council, says Mitchell is wiped out financially.
May 13, 1931. 141
Mr. Prince says Mitchell did not want to be made Federal Reserve
Agent, and seemed to be opposed to our offering hii the
place.
June 5, 1924. 178
Board appoints Miller and Cunningham to see Mitchell and report
on his affairs with a recammenciaticn.
June 5, 1924. 179
Platt tells us of Mitchell's embarrassment.

June 5, 1924. 179

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

-130-

Mitchell, John (Cont.)
Committee reports asto Mitchell's financial troubles and recommends
his ev'ointment.
June 17, 1924. 194, 195, 196.
Montague, Gov.
C.S.H. asks, to dinner to talk over the L. of N. and Carnegie
Foundation in connection therewith.
April 28, 1924. 126
Says Butler did not mention League in his synopsis of his report
delivered to the Foundation.
Says the trustees are opposed to the League, especially James
Brown Scott, who also is opposed to the World Court, although
favoring a World Court.
April 30, 1924. 127
Morgan, J. P:
Davis tells C.S.H. he is not the personal counsel of, but that
his firm handles much of theirb sinking and financial questions.
Feb. 24, 1924. 38
Col. House says the fact that John W. Davis was of counsel of,
elidanates him from the Presidential nomination.
Mir. 10, 1924. 71
Mr. Lasont of firm of, congratulates C.S.H. an his speech at the
Hanihara dinner.
Mar. 10, 1924. 72
Morgan, Mrs. J. P.
Bertie spends week-end with, at Highlamd Falls, N. T.
June 7, 1924. 181
Myer, Gertrute
Wants C.S.H.to be an executor umder a new will she is making,
with Mrs. Chandler Hale, an executor under her old will.
C.S.H. detines to act, it be inconsistent with his duties under
F.R. Board.
C.S.H. advises her to appoint a trust company with some other friend.
Mrs. Hale tells C.S.H. she does not want to act as her executor.
C.S.H. advises her, if she does act, to insist on a trust company
also to be appointed.
C.S.H. said he sympathised with her disinclination.

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

'71

-131-

Myer, Gertrude (Cont.)
She said her sister, Mrs. Rogers, would probably insist upon her not
doing so.
She said she feared trouble with the. nephew, if she served, and
C.S.H. fears so too.
Feb. 16, 1924. 26, 27.
Mrs. Hale says Gertrude spent 2 or 3 hours with her the other day
complaining of her brother Walden; said that he AUs very
irritable and provoking toNards her; that ore day he told her
she acted like an old hog; that she no longer feared his
becoming a Raman Catholic.
June 1, 1924. 176
Tells C.S.H. at dinner that Mrs. Hale said that Mrs. West told her
(Mrs. Hale) that she had gone with Mrs. Wilson and Vance
McCormick to the Cathedral to make arrangements for interring
the body of President Wilson there.
(The above is changed froanhat my diary says being corrected by
a subsequent talk with Mrs. Hale.)
June 3, 1924. 177
C.S.H. dines with Gertrude Myer; Mrs. Chandler Hale was also there.
C.S.H. asked as to the facts about Mrs. West and Mrs. Hale said that
Mrs. West told her that she had ssen Vance McCormick on the
occasion of his visit to Mrs. Wilson to tali over the permanent
burial place of President Wilson; that she evidently did not
know that Mr. McCormick was her cousin; that later she saw him
mmi asked why he bad not coae to see her when in Washington;
that he had. had time to go and see Mrs. West; that he said
he had. not seen Mrs. West or any woman in Washington for a yeart
C.S.H. said to Gertrude that as he remembered it she tcld him
Mrs. West had said I1113 had gone out to tha Cathedral with Mrs.
Wilson and Mrs. McCormick.

AN‘
Gertrude at once said that she did sty that, and that it was not true,
but that What Mrs. West said anyway was alio and what she Gertrude - added made no difference!
June 12, 1924. 193
See also

- Hale, Mrs. Chandler

•

-132-

' :zed :I.-cf., ,t 44 I 4
ton

,1L)S4

)

I
18:i I,
.4' 3 iin.L4,4_
r41::

70 • ;i /1;e.
.1141
T ..

1
n LAO 70"V..

W..)

; Id zio
;

0'!!

.sx1:
10;/

41 •.).L

.,
.tr, 11. .ga: Jr, 41 6

Gov. Harding protests, saying the F.R. banks originally agreed to
pay $5 to help out Crissinger when he was Comptroller; that
it was not fair to state member banks upon Wham the Board
assesses the cost of Federal Reserve examination, while the
Comptroller under the National Bank Act must and should assess
•
the cost of examinations against the national banks examined.
May 13,1924. 140, 141

zat

i
;1st,.

eavi tr.&
$441.! AtJal* tHr...pW ora
r.iat 4; LI Oa1
ea.;
.,f. ivc'
‘.;
$oa tit 'i:o-tl-tr-u eAp

ILL
.P.L',u,

4.;

.tW

.1/ 6,4
.7.•xkl.
ett;r. 11.4•X"'

tilo$Firild4AW at
LLs;
Pe,exa 11'
,*

National Bank Act
Hereon says should be amended so as to relpire only one
examination each year and as many more as the Comptroller might
order; that one was ample for banks known to be in good
condition; that 2 examinations took much time from the
examination of banks suspected to be unsound.
Feb. 18, 1924. 28
National Bank Examiners reports.
Dawes tells Governors he is to raise price for furnishing, from
*
$5 to $10 per copy, Most of the Governors were willing.
The Board took the ground that this was for the Comptroller
and the F.R. baLks to determine, and that it would not
disapprove such payments made by any F.R. bank.
May 13, 1924. 140

-110 AL): :401 .4.1„:4
igiv.T..ft 3,
,
pILH .61Vi
coma hail aosr19 .%111.
orrA rufn esi3
41
MC) 004
rt:4
r

elato:

.,cI.1-ta
r;t u itIA r
c.?
,11.1.i

-N-

'Lehi
ei

4
I 01

.1V`f

. 4 :4
«..0
• :

11
• .1tS
4 •
c.L
Uzi
• -1,44

1:1r1

.
bi
ze tr:5;iitAriv:
%ao71.LLMStar': $ase'a, .

Gov. Harding writes Dawes that the banks counsel had advised that
he could not pay $10 for copies of the examiners reports and
encloses copy of a vote of his directors refusing to pay
more than the actual cost of making copies of the reports.
May 14, 1924. 142
See also - Dawes
National banks. 34, ail 69
See - Branch banks

Jou taw
- 6di.

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

vAsi
%.siwyjsts

e..16
her
a..;

FRI

.4,.,;.c.r
e

.624,t ',1,1
lady
tba
e btrat

•

r At.

National Shawmut bank
Mr. Adams, President of,calls up C.S.H. to indorse the McFadden
bill. C.S.H. explains the situstion to him.
May 26, 1924. 162

Oa 14 6(
National Union Bank
Hearing on interlodkutory director between the Old Colony Trust Co.
and the.
Mar. 20 1924. 82
New York Journal of Commerce and Commercial Bulletin
Curningham complains at Platt's talks an branches with a representative of the.
Mar. 27, 1924. 94

.133-

New York Stock Exchange
Gov. Strong says business recovery will be preceded by activity
in the stock market Watch may attain proportions of a
violent speculative activity, axxl that tha New York F.R. Bank
should be allowed to meet such a situation by selling
Govt. securities without the preliminary consent of the cpen
market committee.
t.-10 6%,:.14,101

Miller took issue saying no ors F.R. bank should be allowed to thus
control the stock market.

1d412

ed cht
eiJ,1;•yzPJ

o
Actrut
ad c..1 11.0 v.10q

C.S.H. imis shocked at Gov. Strong's evident desire to control the
N. Y. stock market, and said he assumed that such control
should only arise incidentally with or from the control
of commercial credits.
May 29, 1924. 169

.41;*!0:;110•1

alonntr_
q

w011

i
1.6:f riar 1!din *. cne
r•.!,-).&v
Jmoff

• ti,A:
ti.10
.
e az .1 4
•Iiker!oI

IF: It.'

147:3 iia•

aiJal
AX , 7 ,
1.!. 41

,DVA

0: eI

New York Times
Says Doheny retainer puts McAdoo out of the race for the nomination.
Feb. 5, 1924. 18

to .1 * c

;

Prints analysis of Butker Is report to Carnegie Foundation, attacking
the League of Nations.
April 28, 1924. 125, 126

,
r
t o60..

ItArit J* 2V
izasCit
iE (Lt
. Ta •!1.-

,tottitz
Z,0le:I aar.$gc,
LL: cur

71'

saessa blvorti•

Gov. Strong tells CIS.H. that the regulation of the stock market
by the Money Comaittee after the armistice was not a F.R.
System matter but solely done by or throvgh the F.R. Bank of
New York with Sec. Glass's approval.
May 29, 1924. 171

!
0

nod:4mq r

ddift1

ate

•

0-.•;„

"1,AS. ICI

t ao

erf,7

• J1
iturA
,
•": ,H.r..i7;71‘010".!
bis.;
• tgoi .

4-141:14e

too:
It;

'7,?„4
4_'to elt i

Lizo

New York World
Says Doheny retainer puts McAdoo out of the race.
Feb. 5, 1924. 18

tcvip.t.aesoC

rodt

Demands that Coolidge veto the immigration bill and that Sec. Hughes
resign if he does not.
April 15, 1924. 114

444

egipi

,
“L.; e

Saud 4.trtdear.'d
"V
•" A .
•
r

*
Sot•3

f:r

New Tear's recepti on
Over 300 attend our reception.
After it was over, Justices Van de Venter, Sanford, and. Butler called
and we opened a bottle of Madeira and had a delightful half
hour together.
Jan. 1, 1924. 4

•ILi•ska :sc. id/
.

e .1;

t.re.
a

•

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

, C4:
•
.

.iNsel
, if
ms

t.e .

itoQtI IO1u
'
..
I ".c

.0 ••••0
Latrurf)t,
'10 oz.lAtIqmo
.ittit, 'its)

Nineteen Twenty-three, Resolution of Nov, 7
4, 69, 74, 79, 82, 84, 87, 92, 95, 175.
See -Branch banks

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

Nineteen twenty-fOur, Feb. 1
C.S.H. tries to extend time for receiving branch applications from
Feb. 1, 1924 to April 1, 1924. Lost.
Jan. 7, 1924. 4, 5.
Norman, Sir Montague
Gov. Harding says Gov. Strong is ill at Gov. Norman's house in
London; that Gov. Norman wants inflation in U.S. to put
Grat Britain an an exchange parity.
May 3, 1924. 129
Ummerer tells C.S.H. that Gov. Norman came before the Dawes Commission
and positively Insisted that the new German bank be established
on the sterling and not an the dollar basis.
June 9, 1924. 187
Norris, Gov.
Objects to F.R. banks buying Govt. securities now as a vidation of
Reserve bank policy'
May 7, 1924. 132
Tells C.S.H. that Winston strongly objected to the recent increase of
53 millions of Govt. sectrities purchased by the F.P. banks.
May 8, 1924. 133
Operated on for removal of his prostate gland.
June 17, 1924. 198
Noyde
Mr. Noyes,financial editor of N. T. Times, lunches with C.S.H.
June 9, 1924. 187

Oath of office
Miller tikes oath of office for new term on the F.R. Board.
Juns 17, 1924. 196
(On Aug. 10, he took another oath on advice of C.S.H. and Wyatt)
•

•

C.S.H. talks with Sec. Mellon as to Whether he was not sworn in by
a Notary after the oath was administered by Chief Justice White.
June 17, 1924. 196, 198

Oil lease scandal.
..30"ft

tCj 101 sal:
,1 1:!1,1A11.
4a$0:

rrrIIqqa

,T
ru

rti

O./

.mat

,.
0vrah.sa wet ef
Lao • niyaraio
m1
te.Zaiii.lates ad *UV *trze+47 Ys'ea
5
ss
oolagse
V131
le ertal.

lo rfc'jiittlt7

See - Biker
Daniels
Davis'
Denby
Doheny
House
Roosevelt

es/30mM
ta Iflal a.“1•1$6 .vo0 $y,as
t..7.;)1!!. r•?cro:ilt
ad$ ;=0.t .v0
r.a
ex-sasioxr.

eazoti

•
is;10 ise'lersuei
beSstatti,v,tevitisoli bits
lat....:1o .1? PA., no

.voC ,sttioV.
aatypad a4pi4d .2.1 oL4coLd0
/triad ev*Iees.11

win ee.c.%Ifvos

,1*
•.
,
xlAnoiStr. a..)3411 ,N;
I ;. 3eoet ef oi
4
.
10 8114-ArT
.
.811iiso
etJ i‘d baud:m.1c aelt2.7 :

.
:
a11011

EI .Q1 ,8 7alc:
:Ar0.'.161

.hru.17$ el:446014 ela

78t .JJ:2 r,P

e.:11 10 to
.

del
(:!4,134W

rInlvhs ct)

tolI13

Oliver
Counsel for Bank Suptd.. of California appears before Board.
April 22, 1924. 119
Open market
Rearing on purchase of German trade bills by P.R. banks in.
April 5, 1924.
105
See - P.R. Bank, New York
German trade bills
Jay

141.1.1"

Open market purchases and operations
Gov. Cass says 300 malion more of earning assets is needed to
enable all the P.R. banks to earn expenses and a 6% dividend;
that such an increase
be secured for the purchase money
going into the market will be used by the banks to pay off
1A41.44.4
that to pour say 50 millions at once into the
market by.the pnroba se of Govt. securities or acceptanc 38
would put the F.R. banks in competition with the member banks
and would interfere vd th Treasury operations.
Gov. McDougal said the F.R. banks cught to go into the cpen market
for the sake of earnings.

C1.6t-f:tgl, loot fld ,C;1.

rt.t rritows on aus. ed rterktedw Q.
bone/lap1n:11a saw cilac
.0411171 t -fitft,

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

rf,iso

Old Colony Trust Co.
Hearing an application for an interlocutory director between
National Union Bank and. Mar. 9, 1924. 82

Open Market Committee
See - Open Market Purchases, etc.

41t;

'to

ao urrit3
.nei ,17/ ctuit

16, 23, 39, 71

,
,aex a s2i iss

eittw
1.01'1U X41414

Miller said now is the time to buy to obtain a weapon to check
speculation if it should arise later; that our purchases would
not be supplying =nay dousing Inflation at the present time,
pointing out that present gold imports were not being used
for speculative loons.
Gov. Norris said it would violate reserve policies to pour money into
the market now.
C.S.H. said if we had say 600 millions of Govt. securities we might
talk of reserve policy, but that at the present time we can

AINI1111181111111Mr

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

-136-

Open market purchases and operatlons (Coat.)
buy little by little so we can later control speculative activity; that
such buying would not hecessarily cause further inflation.
C.S.H. believes Gov. Case's objections are founded upon an aversion
to any comp, tition with member barks, upon fear of the effect
on the stock market, and to a desire not to hinder the
Treasury in placing its securities.
May 7, 1924. 130, 131, 132, 133.
G. Norris tells C.S.H. that Winston strongly objected to the
recent increase of
millions of Gov. securities by
F.R. banks.
May 8, 1934. 133
Warburg, at Federal Advisory Council meeting, tries to define the
proper scope of open market operations, saying that the
F.R. System should always have about one billion of earning
assets, or at least 900 millions as a minimm; that more Govt.
securities should be purchased and. that such purchases would
not cause inflation.
C.S.H. deplored the Treasury attitude of objecting to purchases of
Govt. securities, saying that during the war aid post war
period we subordinated our discount policy in the interest of
the Treasury, rightly or wrongly, and that he opposed having
the Treasury dictate our open market policy as it was trying to
do; that the Treasury should approach the market as it finds it,subject to all the influences which regulate it, including
the influences of the F.R. System in its open market operations,
which influences were and were intended to be a factor in the
market.

,
er

Warbarg agreed with this but said F.R. banks would cooperate with
the Treasury as far as was practicable in making these
purchases; that he lid not see how the Treasury could object
if our open market purchases enabled it to place its
certificates at a more advantageous rate to the Govt.
May 12, 1924. 134, 135
The Federal Advisory Council makes a very ambiguous reccamerdati on as
to open market pirchases, saying that, in normal times the
Federal Reserve banks should have a sufficient volume of
investments to stabilise the market, when necessiry, etc;
that under present conlitions the system should preserve an
aggregate investment of substantially its present volume
(835 millions: - discounte 440; bills 87; Govt. bonds and
notes 250; U.S. certifimtes.60.), with a tendency somewhat
to increase these investments if possible without unduly
affecting the market.

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

-137-

Open market purchases and operations (Cont.)
The Council also declared that the F.R. banks should not make
investments for the sole purpose of earnings.
The Council also Was unanimously of the opinion that dividends
should to paid as long as the amount of surplus justifies,
even thcugh not earned.

•

C.S.H. feels the council has thus stricken out one of the two
methods (discounts and, open market purchases) of making earnings
and has substituted dipping into the surplus.
C.S.H. pointed out to the Council that Congress intended that open
market powers should be usec to make earnings in case discounts
fell off.
Warburg replied ambiguously that open market purchaees, justified
for other reasons, vo uld usually incidentally produce sufficient
earnings.
Warbuig if he (C.S.H.) correctly interpreted the statement
C.S.H. asked.
of the council to mean that open merket purchases should never
be uset- to secure earnings unless justified on other grounds.
Warburg said yes.
This is absolutely oppos3d to the views of Board in the Annual Report
for 1914, and to Mr. Forganis views of 1916. Quoted.
May 13, 1924. 135, 136, 137.
C.S.H. tells the Board the F.R. System is almost literally bleeding
to death; that its earning assets are dwindling and that some,
at least, of the P.R. banks cannot earn their dividend; that t s
open market operations, %tale increasing slightly, are not
increasing in the proportion of the falling off in discounts;
that he felt that the Open Market Corusittee was being interfered
with by the Treasury and prevented from increasing its investments
in Govt. securities; that the system should. hold at least MO
millions of Govt. securities to enable it properly to regulate
credit in case of future speculative activity.
Miller read the racommendation of the Federal Advisory Council feebly
favoring some increase, and introduced a resolution favoring an
im remise.
Gov. C. and Platt denied. that F.R. banks were under any obligation to
make earnings through open market investments if such pouring
out of money would disturb the msrket.

..l38..

baLt
.1:Lei.kcdL.4,
.4. ..
21..j ii4 701
r;r

Off bit"
.1127e .F•'4 t
z
.
.agrarimlez * ) 634

6:1Arr

Lu.btvUZia-t::
bLurt.atirTx...d

*di to
a1Jui1Cu3rJ
A.4
e.d4
.10(11.E,E

riwitrov,

e.IT

C.S.H. said our Board yielded to the Treasury during the war and
post war period and that the Treasury asbr by its pressure upon
the open market comadttee was.daminating just as thms.
May20, 1924. 148

ew
:

..t.)n

rtore
C.S.H. offers a resolution reaffirming the declaration of the Board
in its annual repert of 1914 as to the necessity of making
earnings; quoting also the Federal Advisory Council recommendation
of May 13, 1924; that the present volume of earning assets should
be the minimum, and should gradually be increased approximately
to one billion it dollars; that such course would enable the
F.R. banks to make effective future discount rates which might
have to be put in to control speculative activity in the future,
and would, incidentally furnish needed earnings; that such
purchases should be made with discretion so as to bring about
minimum changes in the money market; that the only justification
for abstention from such purposes, thus abandoning the n_.cessity
for earnings, would be where such purchases would seri cusly
disturb the money uarket by encouraging credit inflation; that
it was the consensus at opinion of the Governors that increase
in such investments would not cause inflation and speculative
activity at the present time; that the Objection offered by
Gov. Case, - competition with member banks and incidental
interference with Treasury issues of certificates, was no
sufficient reason for the system not to strengthen itself so it
can make future discount rates effective through the sale of
Govt. securities.

•e:-!* 1.3 t- oh.)
,^yeafril Se 8Lr.dZt sad 11;aux) ea./
*1.
. nal:Lem to imeaa4i3.w.-*4I nw Lag.
atoilesm
fik.r1Zir ;1.1 t..):ft( 14
be.n7.11,,recfus sari
•

*Tin

▪

Open market purchases and operations (Cont.)
They said that the fact that dividends are cumulative, proved this.

neci0

r.ecio Jii
s thi.7)OU

1
.1
6 •
it.' IT!4.1

I wig! • c.•;*
401."ed lirocia

beJztioci
.1.1.o 110.

be 2I

.0, eassAi;ci

fle cr.)

7,1skvt.r.g.i
be 11.cist 31176-zisti
,adv.casvi ad$si 'so1
...;rtlfrzac

L.:: aqi

:ima

Ira
"-14;. 7.411!c5.14;1 tes.no
tLf q 3'n atco
• nek
I oz.L.:.:94
oo
beim: asittrrsie, est..
iA1k;
..!.
C 443.•

bias
fi Tauttrti

r).1 Lew:•7.

st;F•17 *Az o:1 Vti
swot,' elasysoi
-void

.b6.10.cic :ales
41.1Leie /It
rIbeeld ,
leo -Jo usd: oits
:11.1! ;hiletlytt
3ort
retc

:t.TA

•;trti
,
00' 41:-.4.)f
jc.

P
,
I .13t £

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

_bat,

•.t tasJsx.d .57.! e
busuasi
II
iwb11-ai
s$
:11c.oet 04
nuT .toarLso wined .R.7. *4/ 'to Ofxsel_
111 elan I eilrbt obi-cc/tromp tex1441. afffqc
,
"zo 4, )1J-zoqoiq e.lb rs1
.
201.11‘. :IeV ad, Sarl.; 3Se": er:
I - Les LA ,±:vt. -1 biu riusselT erf:
6;1 .tw
;
r: V
;le 1 J.11.A.:ser ./TtAl; ttl
,
•7o0
brig It:1st
eguiul
b SAO 12.1 t.the.

Ivr1

Abtfoal

,
14
..teJts1oli.s al*Lir"

*4;4.4,

iiki

:on"

tes

t. :

•
.

f7.

C.S.H. and Miller replied tlat the Board was severely criticized
for not having put up discomt rates sooner in 1919 to control
speculation.
Miller said he had had a two-hours' talk with Under Secretary
Winston yesterday trying to per sisde him the F.R. System
should increase its earning assets; that he thought Winston
objected, as he did object, for tactical realms, but that he
was prepared to have us do it if we could present a carefully
drawn up plan showing clearly the n?cessity; that he thought
the loss of earnings wow absolutely of no importance.

ei 1VAA
vino Irio-r1 Icork•
.81/1.4toT

.
rL

Cunningham said it might make for criticism if the Boad were to speak
of control of future speculative activity.

Ir..:1 a
.

..;
. .v
elais

Are we dominated by the Treasury or not?
May 21, 1924. 149, 150.

611,1

•

-777.7.7-7.---

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

4.39-

Cpen

market purchases and operaticns (Cont.)
Sen. Glass is in absolute accord with C.S.H. that open market
purchases 4hould be nude purely for earning purposes, unless
such course vituld so disturb the market as to cause inflation
and speculative activity; that such Ass the clear intent of
Congress; that the Treasury should. approach the market just
as it fiml s i t, and should cease interfering with Federal
Reserve policy.
May 22, 1724. 151, 152
Gov. Strong tells the Board it is imperative that the F.R. Bystem
increase 1. ts earning assets by meals of purchases at Govt.
securities; that this could be done without injuriously
affecting the money market; that the Dawes Camnission report
will probably be accepted; that the political situation will
soon cease to be a factor of uncertainty (meening, I suppose,
that all will concede Coolidgets election); that this will be
followed by a broad uprising in business;that the F.R. System
must be in possession of ample larcing assets to prevent this
movement from degenerating into a speculative, run-away
market; that, in his(pinion, one billion should be the minimum.
May 22, 1924. 152, 155
Board. votes to call a meeting of the open market investment
comaittee for next Thursday.
May 22, 1924. 153
Gov. Strong wanted to get the consent of the Open Marla) t Conmittee
to having the P.R. Bank of N. Y. Inv Govt. securities for
its 2s1 account, leaving untouched the present holdings of
the other F.R. Barks.
He also wanted an agreement that in future sales, N. Y. should be
allowed to sell first.
The Board agreed to the first ani did not consider the s3cond.
Gov. Strong predic ted, not however, until after the elections
and perhaps not until long after, - a tremendcu.s busies.*
boas; that this would be preceded by activity in the stodc
market, aided by low interest rates; that we should be pre-.
pared for this by at once increasing our earning assets; that
Gates McGarrah, a most astute banker, thought 500 millions of
Govt. securities should. be the minimum; that he took no soock
in Gov. Case's fear of competition with member banks or
incidental interference with Treasury cterations in certificates.
May 22, 1924. 154, 155.

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

Open market purcha.ses and operations (Cont.)
Meeting of Open Market Committee: Gov. Strong, Fancher, Norris,
McDougal and Harding.
After long discussion it was voted to increase at once holdings of
Govt. securities up to 150 millions and to apportion the
same in the ratio of the earning necessities of the F.R. batiks, the same apportionment to be made of acceptances purchased; that
N. Y. could increase its holdings wart from the Committee
purchases, up to a reasonable amcunt, say 100 millions of Govt.
secuxities.
Gov. Strong also asked authority to use the bonds purchased through
the Canmittee, as also N. Y.'s own purchases, to exchange
temporarily with N. Y. banks having favorable credit balances
at the clearing house, to tide over the situation which will
arise on June 15, when dividend disbursements and other payments
will have to be made by the Treasury, said bonds to be ultimately
returned to the F.R. banks. Agreed to.
May 29, 1924. 168, 169.
Gov. Strong also said the P.R. Badk of New York should be =powered
to meet any run away market by zelling Govt. securities
without first getting the consent of the Open Market Committee.
Miller objected saying no one P.R. bank should be permitted thus to
control the stock market, unless with the concurrence of an
opinion of the Open Market Committee and of the F.R. Board.
C.S.H. was shocked at this bold assertion of control over the stock
market and said he believed such control could properly and
should be exercised only incidentally in dealing with
commercial credit conditions.
This was

clearly not Gov. Strong's view.

No action was taken as to this.
May 29, 1924.

169

Gov. Strong and Harding denied that the Board had power to forbid
purchases or sales of Govt. securities by a F.R. bank in the
open market.
The only power directly given in the F.R. Act is in Sec. 13, and thet
is limited to acceptances purchased in the open market.
Miller said if there was any doubt as to this we should ask Congress to
give US this power.
May 29, 1924. 169, 170
Gov. McDougal and Poacher said that purchases of Govt. securities
should be made only when rates are high and we wish to soften

-141-

)
(• 10t
1

LiE

0)1

m 1 ettoc,,c1 1.4w *esit:d3•auri 40.7Suscrt nog°
4dkatif neqC toantielf,
t, ne
,

f
...ralloa 1,00, JL.OS
10 rt.
kra; erq.:141: DOI
fori: aolVoaqits.

nad .Z.1
tt

8444v
.

ea.1
lo e.)&m cid

:16.W.:)/LN
rf3lac1

:sf malvauvalL 4a>1 /0/1&
LUr.ek
W e
ni aoaa
+1
J1
0 1. ,

J.A5tenol4t4, :;ei emu
,

Od$

iUCat;liat1,1%1 o:: eeneitml bl.tro:)

,:taporp.6 efLi-11001,t

111
,

,sermAa"
.... 1/ huot,:

;,!1‘:.),141
,
aro el.Y .1; oalAt fia tebJ:frIMOC it
Ltrir: tr,Vielov.1,41 nlveri alasor . .;•'; Jr.*: 1r fr,, 1 Iselo
(
1
*vzve ELI.?*01ji
tiiNA - 3:attewsze•delb
crefl:w
0=1 nd 61111.6
lalke orusimetT e.1./J etsan J 11,1 euiii law
o! :oti*Tlir$101
.sliAr4d
.03 bee%A
.10;e1 ,es
!.-. 4r.gf eril eau
1

arle Le
,
4,trti avyl
,

*clt

f.•

Gov. Strong tells C. S.H. that the regulation of the stock exchange by
the Money Committee after the armistice was not a system transaction, but was done entirely through the F.R. Bank of New York,
with the approval of Sec. Glass.
May 29, 1924. 171

44143. vlitsf.;:, .vc
Iticnals *toy vrtqf to Ansa .17.14. en:
un voka, eem o
.21.1 ct,tinrzIIJ. i
.1../eJet.st! csts. f-f,*
/L:eo eii34- 4 4 scv
1
0
pd sAfr

ap
,
.1\tA5,•6

cf1

*J.* •-•
L:m,.;rv

inse
a al

e0.1,i1.11Or .te

s z,
eno on
h.izo a **Li/ Loilc
‘!c,

Pacific Southwest Savings & Trust Co.
Torrance application. 79, 81, 83, 84, 85
McFadden bill gives valuable monopoly, etc.

35 bviis /I& • .
it* 4eci•Le.
.1)eeAzt
btarate
.

,
"10 no 1:16 a441. L134 a!
tz %re

.bI'./0

AJJ..

rase!

S33 ....

&VT

il/a orof.; loz
.4 1.11O.t 9I1;3, Lux ne)!:•,

Irae

O . a.

is xd ot:1117.uter.

al il:nA
;:•;is)
ew a

1
%.(7 re.44 (..tw t
,

dtViy,
CrW:L.

-VP

•ff
:"IC

We attend reception of Sen. and. Mrs. Pepper at Rancher's.
April 23, 1924. 121

kieJbit :I
';‘11f14

&law
AU

JV1 ,e%$1

ra$1.0it 03 '0

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

Payne, Sec.
Disapproves oil land patent. Sec. Lane wanted to approve but was
forbidden by President Wilson.
Feb. §, 1924.
17
Pepper, Senator

'Vol) ( eteisoi To a MiOsis:
tf.)
. • eisrt.sm freq44

.!'.12;J

01gJ

sol:

Branch banks

Attacks Hanihara's letter of protest on the immigration bill.
April 15, 1924. 114

!1!!1( .
. .
0
ef

Lab 1 r4.

166

r.tpl

t fie tL

rti

..Y.e1'.:
r

All agreed this was true under normal conditions, but that at the
present time disco-sit rates were not of prime importance; that
it was imperative to get into the market now to be &ale to
exercise control later in case of threatened inflation and
speculative conditions, which might come sooner than we now
anticipated, especially in view of the large 'old imports.
Gov. McDougal and Fancher finally accepted this view, and all agreed
such purchases should be increased in so far as they did not
unduly disturb the market.
May 29, 1924. 170

011Oftiefill4

rfl

Open market purchases and operations (Cont.)
rate conditions; that ,vbsre rates are low,as now, we should be
selling rather than buying.

.t.c.;e1
•.,-ssitric•Laer

•.

fiLms irrionfeli
-

.1,4400tiO.P?

•.41r- •-

4K)-

Mrs. Chandler Hale speaks deprecatingly of.
June 3,1924.

177

Perrin, Federal Reserve Agent
Asks authority to detail Brock to help Robinson of Dawes Commission.
Jan. 3, 1924. 2
See - Bredk.

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

-.142-

.1.414 aeasuiteurq $eitlf.ge rutiq0
t. I

(r irrx. sk
,

%.;

tl tier.;
•tv,L1

Mill:

Lesvos 14.A
tetate ar-LJ adow
lear$ .1sid
:"..srx;a1b ti:trtesettq
!•:.***
tzew
!alit :ecia.1-4o4.9c1
)zrviie1 so* $1
&al o1
&
03 ei-r. , c.;:f o$ vort
7o;a1 rot3i:ot: e-slolsze
Lerstr,:t.e.td.) '11 et!wc.)
-r3eqat
4
: SI .13tV i saci'Irmo ev1:31i
ri;",1
9.W5C
,
CW Ile it %AM
)
Itile.::tcqe s betiltq1t- 14,st
14,114 F.:,1
.
•
4

•F

sV,E

c),J
-

L....

1
,111 •72.f;dong5.5 Ions
ox, I 1
LluoJs OtairulDISIq
keaxemnall ed
virtntr

3•13i7
,sZ,1
lO tio.U.E..el.
cetti.vo'3 xerro'01 e:L.t
••:IA.
14 taa fOt.A•
haw Sird sao1::le
'to ;rs6c
lavoIcaL sr::
.r.e"
skrEus

i;a2

Board.'s adverse decision not conznunicated to.
Mar. 20, 1924.

Reports Torrance bank in god. condition.
Mar. 25, 1924.

Sends letter from Superintendent of California banks to Board, as to
simultaneous OXIIMinations.
April 4, 1924. 97

ev:

.63
tES
aki
:
04..r.)(1. 3102

Perrin, Fed3ra1 Reserve Agent (Cont.)
Sends to Board. application for Torrance bark.
March 18, 1924.

autr 2. •csnivafi::•:itevili$tro:i
eolunn -eel"
rotbe
,2% 11.1d
,e0

Personal privilege
C.S.H. as a matter of, replies to Miller's attack on his memorandum
on F.R. notes.
Feb. 15, 1924. 20
Pierce, Mrs.
C.S.H. takes out at White House dinner Mrs. Pierce, wife of
President Coolidge's clergyman.
April 23, 1924. 123
Pittmaia silver Act
Sen. Thomas calls on Board for all memoranda on its bills relating to
shipment of silver dollars to Amvican banks in Orient in 1919 and
1920.
April 5, 1924. 98 to 105, 128

triad dLtni,E.

evatcri,.

.LAC semi. •
agevol „: se
.
.1ctivIzx truii 110
erizAl
aek.,kelettol.
.rfos:i1! fiet
.
oril i3 ;.:•eiJitc

gu:3301 a

izottnea
str..r.VIA

.
if% • CIT .10 twl:gooe. 4..ae/34 eV

a "1r

ci T1

.10 vtaal
.psel,f;

azeltAnd3

it..e7 A etPtelieS1 Janet...!
s
litArte 1 Islet. c.0 x:1111..+:te sisA
.

..416.11:00 &MAC

. sei t r.

eee

Platt, Edmund
Gov. C. says he will try to induce Platt, Miller and. C.S.H. to put in
annual report a reccmmerziaticn that naticnal banks be Avon all
branch privileges now exercised. by member banks, leaving minority
to file a dissenting report.
Feb. 21, 1924. 34, .35.
Platt, going to Boston, is directed by Board to tell Gov. Harding he
may have a 6 weeks' lame of absence because of illness, if he
applies for it.
Feb. 23, 1924. 44
Favors application of Zastern Banking and Trust Co. at Newburn, North
Carolina to take over a branch.
Feb. 25, 1924. 47
Moves approval proviied parent bank and branch are found sound on
examination by state or by F.R. banks. Carried.
Feb. 25, 1924. 49,50.
Voted against laying on table C.S.H. motion for a. simultaneous
examination by Herson of all state member banks and branches not
now being simultaneously examined by the state.
Failed by the vote.

Feb. 28, 1924.

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

443..

Platt, Edmund (Cont.)
Points out illegality of Miller's motion that Board will decline to
receive application for branches there state is not examining
simultaneously.
Votes against Miller's motion. Carried.
Feb. 29, 1924.

Put on a special comnittee to prepare draft of branch regulations,
with James and Miller.
Feb. 29, 1924. 33, Si
Offers resolution that national banks, under regulations of the
Comptroller, be giv3n sane branch powers as member banks are
Feb. 29, 1924. 59
now exercising.
Miller extends Platt's resolution.
Feb. 29, 1924.

Votes against Dawes motion to approve McFadden bill.
Feb. 29, 1924. ai
Votes for Miller's motion.
Feb. 29, 1924. 60
to put in annual report a. statement that reserves on
deposits and notes should be given separately.
Mar. 5, 1924. 62

Moves

Votes against C.S.H. motion to strike out fromannual report all
reference to split reserves.
Mar. 4 1924. 62
Cunningham reverses himself and favors Platt's motion.
Mar. 5, 1924. 62
Votes in favor of printing annual report.
Mar. 7, 1924. 65
Platt, Miller and James presents report of special committee
on branch bulk regulations. Platt dissents.
Max'. 7, 1924. 67
Says Board ought to repeal the resolution of Nov. 7, 1923.
Mar. 7, 1924. 69
Raises point of order that no member can record his vote, and.
that unless present he cannot vote. C.S.H. opposes this.
Mar. 12, 1924. 72

.4441C-

./non)
.1 1e1.11M io%/11.se1C1 /uo
olries*zi
101 mcf:401i.;

!
O . ettrall,?+.•:. [Pi( tusoE ta,;:
,
wilnInaxe 11):'

Platt, Ihimurx1 (Ccnt.)
Votes against postponing for a full Board meeting the application
of an Elisabeth City, Scuth Carolina bank, for a branch.
Mar. 12, 1924. 74
C.S.H. feels new member, would not like to have Platt designated as
Governor, although he would be Lir and. impartial.
Mar. 12, 1924. 75

se4o*IT
Platt, however, allows meetings to drag out at great length.
Mar. 12, 1924. 76
01.11.4.:E7F,e1 .itmvui .10 41tim 6%41coLi„, G.t

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

.161.ZiM Lt Roont

.del
rioltgioarl amen.'
!
'4) a an //alyzen 'scow iaina,d Ian° /Aan
,
1
t
el.a sifted ledneha ea clewol liortald ems rrevtr ed oallum/q=n
'gate trAoct: von'
VC. .t.sez op'S .oelt

sewbfl

rteati;100. tivudv.is,E* o/
e eS

Oc.

strr,le. soL!

.101,Lui3sel
.0tri:

.ksel ,

ye 4017
.

,es .crel
seva40
a ono..n
/rsame/a/e a /1671,
.xlevel.e.gea atorla ffd ft:toils •COL btWst.leociet

.#se: ,e .17m
11.tx

/a:11Np; ei/oT
°ay' tarrsraantl .7fi0 es o not /vat
“•t7lbstel :114 0:1 ecazotettoz
.1.;;Q1 I:1 •%EN
2,$6t:
Z:b

Votes in favor of C.S.H. motion that Torrance bank application be
postponed pending a simultaneous examination by Harsco of the
Pac. S.W. Co. anibrancra e. Tie vote.
Mar. 18, 19:54. 80
Votes in favor of C.S.H. motion that Herson make a zimultaneous
examination of all California state member banks with branches
not now being essmined simultaneously by the state enthoritie—
Mar. 18, 1924. 80
Carried.
Votes against Miller's motion to reject the Torrance application on
ground that state was not examining simultaneously. Passed.
81.
Mar. 18, 1924.
Mjects to Dawes request that Sec. Mellon be asked to cane in and vote
on the branch bank draft, as he hal asked that his, vote be
recorded in favor of this, his own draft.
Mar. 26, 1924. 86
Votes against Dawes motion to aid a refererce to the resolution of
Mar. 26, 1924. 87
Nov. 7, 1923.
Votes for Miller's motion to adopt Sec. Mellonis draft.
Mar. 26, 1924. 87

4rAiillbLi1 aiEVZ)
•.t0V •

%
• t Seal.

•

le:Ian

q lo Iowa a 4 46.u-fr

4:4,1471414

,‘•
;L1tL u /tOclors i3iessç tziat, bild fie I
et.:1 ialot.en31/alt.13e1 isdthis
.LisTe.1)

Votes for C.S. H. motion that Board, except in extraordinary emergencies,
will grant no Th.rther applications for branches Unless within
one year of the application, a satisfactory simultaneous
'examination has been held by the Federal Reserve or by the state
authorities, lug' unless the condition of the parent balk and
branch has been found satisfactory. Failed.
Mar. 26, 1924. 871 88

o tolstilpert ecid 1.6pAir.

leNv iit%or,:)el ae.o 7.ed'masi
.614IT +canna°
.e1A1 aso0T70
ISI •"1.8iN •

rtc.;•s.aoE': rips?:

r;z',7y2401.
loosrlq A•tri:ar

Votes in favor of tie regulations as amended.
Mar. 26, 1924.

C.S.H. tells Dawes and Platt he will draw a canpranise branch regulation.
•
Mar. 27, 1924. 91

l45
-

Platt, Edmund (Cont.)
Votes against C.S.H. is compromise regulation, but it vas carried.
Mar. 27, 1924. 93
Cunningham complains of leaks in the Board, evidently referring
to Plattis talks on branches with the representative of
the N.Y. Journal of Commerce.
Mar. 27, 1924. 94, 95.
•

•

Platt said he had written several letters to Congressmen et als
and would continue to do so, as he saw fit.
Mar. 27, 1924 95
Favors purchase of German trade bills by P.R. banks.
April 5, 1924. 106
Offers a proposed letter, in the matter of the application
of a
member bank at Charlotte, North Carolina, for permission to
take over a bank as a branch, - that the only condition
imposed
on entrance was that as to changing the character of ita assets
,
and that the F.R. Agent should merely report as to this. Says
Wyatt says this is correct. Passed.
April 16, 1924. 116, 117.

-49 f— 1J•

.bei• t)(1
r.:7rni

cuot

Sends Sec. Mellon a strong letter cn branches,criticizing Dawes
for recomending in hi s annual report changes in the F.R.
Act
and later voting in the Board against our putting in the
annual report a statement that we do not agree wIth his
recoranendati one.
April 16, 1924. 117

z.:”4
As

P, 4.1

110

a filo .11.0L

-14

.11:c:A •
,selonswmre
1111,i1:611.11

Tr.)
:
C ,saY

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

I.E.V'

box ..<11 •
.
- r

,
•11 1.E.c.I
88 ,113
4-,ZE

4f.,11.
v: .

).:

eFr-.1.M

Platt tells C.S.H. that Sec. Mellon had sent Winston to
him to say
that he agreed with much that Platt had said in the
latter,
and that the Board should make a recommenciati on to save
for
country banks, at least, the right to have branches.
April 16, 1924. 118
Sec. Mellon tells C.S.H. he agrees with Platt that
it VMS not right
that the appointive members should be .prevented frau
addressing
the Congressional Committee cn the subject of
suggested
amendments of the T.R. Act, because of a tie caused
by the
votes of the ex-officio members.
April 23, 1924. 121, 122
Doubts advisability of lowering N. T. discou
nt rate from
April 26, 1924. 124
Finally votes to appre reduction.
April 26, 1924. 125

4 to 4%.

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

Platt, atmund (Cont.)
Gives somewhat equivocal answer to statement of Gov. C., Miller,
Cunningham, and C.S. H. that the principal banks should reduce
rates.
Nbiy 7, 1924. 131
Suggests for consideration of the Federal Advisory Council whether
the time has not coma to make membership in the F.R. system
voluntary for national as well as state member banks.
The Council replied that a majority favored this ultimately but not
at the present time.
The opinion was expressed that none of the larger banks would leave
but that many small banks might.
It was also pointed out to Platt that all national banks which left
would be subject to the old reserve requirements and to
Sec. 5202 U.S. Rev. Statutes limiting liabilities to 100% of
the capital.
Dawes was very much disturbed at Platt's suggestion.
May 13, 1924. 139
Denies that F.R. banks are under obligation to make earnings by open
market investments if thereby inflation will result.
May 20, 1924. 148
Says McFadden bill will change the F.R. System from a national system
into a national bank system, and drive out state banks.
May as, 1924. 164, 165
t••

Votes against resolution indorsing the McFsiden bill.
May 26, 1924. 165
Gov. C. after agreeing with Platt's testimony before the
Congressional
Committee against the McFadden bill, now votes in favor
of itl
May 26, 1924. 165
IOUs against that part of C.S.H.'s motion, condemning the
lease of
rooms in the Cleveland bank to the Rep. Natl. Committ
ee which
required notide to be sent to the other F.R. banks.
May 29, 1924. 173

Votes for the main part of the motion.
May 29, 1924. 173
Platt tells C.S.H. that Prince said litchell would
have to pay an
assessment of $195,000 on his bank stock; also that
the Chase
National of New York and a Chicago bank held his
notes to a large
amount.
June 5, 1924. 179

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

-147-

Plat t, Edmuni (Cont.)
C.S.H. tells Board of Prince's talk with Platt.
June 6, 1924.

181

Winston tells Platt he has not yet discontinued the fiscal agency
functions of the F.R. banks as to exchanging unfit for fit
currency.
June 12, 1924. 188
Politics
C.S.H. feels Cunningham is at dimes dominated by political consideraticns.
Var. 7, 1924, 66
The ex-officio members are dominating thi Board., and they are political
appointment s.
Mar. 26, 1924. 90
President Harding did his best to turn the F.R. Board into a political
machine.
Mar. 26, 1924. 90
Sen. Thomas says the Republicans will be glad, by passing his bill, to
show the silver mine owners that the administraticta was just
to them, but he hoped Sen. Pittman would get the credit.
April 5, 1924. 105
Prices
Gov. Strong thinks prices ultimately will rise again in U.S. anti nil •
in Great Britain, thus reaching a parity.
This is Cassel's view, but he would force inflation in U.S. while
Gov. Strong thinks it will come naturally.
Maf 22, 1924. 153
Price, Federal Advisory Council
Tells Board of Mitchell's financial collapse.
May 13, 1924. 141
Mildly deprecates Mitchell's appointment; says he does not want it.
June 5, 1924. 178
Tells Platt Mitchell must pay $195,000 assessment on his bank stock.
June 5, 1924. 179
C.S.H. tells Board of Prince's talk with Platt.
June 6, 1924.

180

Propaganda
Of Nicholas Murray Butler against the League of Nations.
April 28, 1924. 125, 126
See - Butler

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

-148-

Purchase of German trade bills. 105 to 111
See - F.R. Bank of New York
German trade bills
J4, Federal Reserve Agent

Worum,of F.R. Board.
C.S.H. tells Board that in spite of Wyatt's opinion, there is no
provision for a quorum er for any fixed number of members at
.
a meeting, except where the Act requires an affirmative Pal 4
of 5 members. When a quorum is prescribed the 7. B. Agent
so states specifically, e.g. for the Organisatiou Commaittee and
for the Federal Advisory Council. C.S.H. believes that at a duly
called meeting any numbers present can act, no matter whether
a majority or not. To rule otherwise would cripple the Board,
as the individual members have very frequently to be away from
Washington on official business.
C.S.H. believes however, that even assuming that menbers have no
legal right to have their vote recorded when absent on official
business, the by-lams should be amended so as to give them that
right.
Soelso, if any member present asks postponement of any question so
that absent members may be recorded, this request ousht to be
granted, whether there be a right to demand this or not.
So also, the Sec. of the Treasury should be given the privilege,
whether as a matter of right or not, of recording his vote on any
question. Otherwise he could nci perform his joint duties as
Secretary of the Treasury and Chairman of the F.R. Board.
C.S.H. believes, however, .that the F.R. Act should be amendod by taking
'way the right of ex-officio members to vote in the Board.
Mar. 12, 1924. 72, 73, 74.

Rate differential, Philadelphia
See - Discount rates
Ratio, separate. Deposits and F.R. motes.
See - Miller

20, 62

Redfield, William C.
C.S.H. wires Redfield that ladies are not expected at President
Wilson's funeral.
Feb. 4, 1924. 15
anre;,11,

el.» L.

Guest of C.S.H. at funeral of President Wilson.

Has oonference vrith Daniels at Hamilton Hotel.
See Haniels. Feb. 4, 1924. 16

tQto'.1

e-14.."2.(4.2.*) d 1
',EN
,
.

=Li

L•

4. 4044
:
trent

1„

410 It.es.trm,
„

Reed,

1-;
.

..b. .

sty

•

May 23, 1924. 157

frk

at*

del a

J
4 ci

Reed, Captain
Captain and Mrs. Reed, the daughter of Mrs. Swaim dine with us to
meet Hanihara.

."
,
L.A. 1...7.

.At

tb4 s8

cIx;~1
• o.;

5 i

e4.7.1r
,

Lel*Irf.o no $atoac.
es:i..

titev t•ri

4iemsonoq4c.v.i
.

Regulations, Branch banks.
See - Branch banks

io1,1•1

Inesienci

,
ON

'41.t.i

,t!*'egr

ty. Q. :r17<tru 3 etsivy's t

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

7 er
,1

'•

.7:Afbattian t

.
on froisae j
-

-1.i
,14:. V NIX

ni=if

(In

Reed, Senator, Pennsylvania
Votes for exclusion bill (Japanese) because of Haniharals letter.
April 15, 1924. 114

4 Intf.741 1:

.410V
.tile'AiSi:64
11 87

kt
.1r .

tt riw
,

iLi a ed

kg.tem-1 o

rseT ttl"o

15.14.sr..i....

t.4 a•44.4daltAr
,

JI43,ieve -Po;!
f
,
al. oillt:.)-xe

82, 84, 85, 86, 87, 95, 96, 121

Reichsbank
Bank of England has given sterling credits to Reichsbank to enable
it to buy one half of the stock of the new German bank plus
one share.
April 7, 1924. 109

Reparations Commission. 1,2,4,42,43
Sea - Dawes Commission
Robinson
Strong, Gov.

mon.jkla•

via.!$nelettlt 0440
tritro7
,81(1

. .1

58$ 59, 67,

Reparati cns
Gov. Strong says that if German reparati ons zre fixed on the
*ability to pay" basis, our claims vs. allies should be
similarly adjusted. Miller (pposei this.
May 22, 1924. 153

tet• .

rt
.

1 Ldvori7 :a& ed 5A

Senator, Missouri
C.S.H. and &need criticise suggestions of, for paying bonus by
issue of legal tender notes etc.
April 12, 1924. 114, 115, 118

:. 2
4
.

Report of F.R. Board, Annual
Branch barks
See same
Separate ratio. Deposits and.notes.
See- Miller
Printing of report. 641 65, 66
Report of Dawes. Brarch banks. 117

20$ 62

-150-

eZbiL

lk booq

•
el.

711
.i-to a iiv
.

erti

In;

Reports of national bank examiners. 140, 142
See - Dawes
National bank exasiners reports.

zw,t
acItiellbel sou.
...1.6-luraft a °mita IN

:"%e ±:

. ;„1.,,;"; •
1

10 .'siii.(1)

1, '0 lateaut
LrAil

4)1.
:

e±t1

Repub. National Committee
F.R. Bank of Cleveland. leases rooms to.
142, 151, 156, 157, 158, 158, 160, 173, 180,
182, 183

ftXIO3rA7
1*,
.4101/m1i ef,E:

See - Fed r al Reserve Bank of Clevelard

t:J4.0.7a3 OP!"7
tee a •&Wu LOA. i'i1J3:444
:sum
pht10,34

*to

McFadden branch bark bill.

du;oil a lit ,•ro/srle7
7%Lc$ IkS10:1110 LSO WE LAS
,'14) aro/ ; 7
1
.0:0 ee sot, 'ire
t.a.r. [110

,E1Q

61ilavivinnoq
MC CV:0 131,1:Ft
-

4F .
to
-!E,,cf!0
,

CC'S

df!

SA8

Cro

.
..iaLcitc,oleJl
41 off ,? *to
*q dime' rsetnei)

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

od$

zcxe

May 26, 1924. 165
Nov. 7, 1923.

4:14,*
XiAt

,
'it.tr

,be

E,640V

iptapq,;,?
";;S
.

Open market operations,
May 20, 1924. 149, 1 51, 152

1
• i:11115 ii.10-14iTi.1: ,re5
ortv: - t
ktlasd

-a
af.k.t tirst),4.
rzt ir
''.11.1sa sn ird:1
bin

II t4
ffiaq
,D401 cv VA

Branch banks.
79, 82, 84, 87, 92, 95, 175

U.S. Senate, Denby.

nu 1.!.4n4liget
3trYt.1% .vo3

7, 51

Robinson
Perrin Want s to detail Break, Asst. F.R. Agent bo help Robinson
on Dawes Con:mattes.
Board declines.

Nii4;

Cabinet oppose.
.“:.;13a ±n1100iwie
tvt%
telaa1xo0
tioaaldoir
or4Z

-..14. 1)-1
ZAkr.74 , tsoa . .
sAI.8-4e1 cast,.
a
04444 •
!leave
;iJLL! -eta
ia til:rti•ILir
tvisccobi
he Ida *4.3
•ee ris(I 'to =tie:7

Feb. 15, 1924.

See - Branch banks
Miller
Rayburn, Mrs.
Talks about Margaret Harding.

SlyI

T.' a AO
,s bean
rt g &-•UILk .ev

Resolutions o f Board
Leasing of rooms to National Repub. Committee
May 29, 1924. 173

Jan. 2, 1924. 1,3,3,4, 43

Roosevelt, Archie
Employed by Sinclair at request of Theodore Roosevelt, before he
became Asst. Sec. of Navy.
Feb. 15, 1924. 23
Wife had stock in Sinclair's oil companies which later she sold. 24
Sinclair gave valuable furs to Archie's wife.

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

Roosevelt, Archie (Cont.)
Particulars as to his testimony before Congressional Coallittee.
23, 24, 25.
Davis lays Archie did not go voluntarily before the Committee. 41
New word coined, "To Archie"

Admiral Staunton says Theodore induced Sinclair .to appoint Archie
at $25,000 per year.
Feb. 24, 1924. 44
(See scrap book.

Sinclair Is letter on Archie.)

Archie in 1921 was Vice President, Secretary, and Director of
Roosevelt,S.S. Co.
Feb. 26, 1924. 53
Roosevelt, Theodore
Analysis of teetimony of, before Committee.
Feb. 15,.1924.
. ..

23, 24, 25.

Davis tells C.S.H. how Theodore ar_d Archie were summoned by Committee
Feb. 24, 1924. 41
Admiral Staunton tells C.S.H. Theodore was a director of one of
Sinclair's oil companies, receiving $30,000 per rar.
(Probably ,vrong. T. swore he was not a director when appointed
Asst. Sec. of Navy.)
The Directowof Directors says T. was a dirsctor of Sinclair Oil
and Refining Co. in Nov. 1919. 51
Roper
Wanted McAdoo to withdraw after testimony as to Doheny retainer.
Feb. 5, 1924. 18
Rulings of Board
Gov. C. rules that the vote of a member actually in the city calnot
be recorded in his absence.
Mar. 5, 1924. 63
Dawes questions this ruling.
Mar. 12, 1924.
C.S.H. opposes it.

Mar. 12, 1924.

72
72

C.S.H. believes it better to have votes defeated by recording votes
of absent members than to refuse them this privilege.
Mar. 12, 1924. 75
Sec. Mellon should hear all the adverse views before recording his
Mar. 12, 1924. 77
vote.

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

-152-

-3-

Salaries and expenditures, Committee on.
See - Committee on Salaries and Expenditures.
Sale of National bank examiners reports.
See - Dawes
National bank examiners reperts
Sanford, Just ice
Calls on New Year's day

Jan. 1, 1924.

Schacht
Kemmerer mays, favors putting new German bank on
sterling and not
on dollar basis.
(See scrap book for interview apparently contra).
June 9, 1924. 188
Scott, James Brown
Sends
•mot icn for rnsoluticn on PresidvIt Wilson in
Carnegie
Board.
April 23, 1924. 123
Is opposed to League of Nations and World Cour
t.
April a), 1924. 12?
Sow, Gcv.
Yorvc...rth; application for a branch by a
Charlotte, North Carolina
member bank.
April 16, 1924. 116
Security Trust Co.
Superintendent of California banks says
he can examine, simultaneously.
Mar. 20, 1924. 82
Senate, U.S.
See - U. S. Senate
Sheawell
President of Citizens First National, Alba
ny, Georgia, presents plan
for assistance of Fed er al Reserve Bank
of Atlanta.
May 16, 1924. 14%, 144.
Silver dollars
See - Pittman Silver Act
Thomas
Simmons, Senator
Asks C.S.H. to go before Committee.
Sen. Reeds wants to pa,y
bonus by issue of legal tender notes.
C.S.H. ani Smead
criticize plan.
April 12, 1924. 114, 115, 118.

-153-

Sir=ltaneous exaninations.
50, a,
53, 59, 67, 79, 80, 81, 82,
83, 84, 119, 120.
See - Branch barks
Sinclair
Amra sgs, gave Sec. Lane's scri a position before Sec. Lane
resigned.
Feb. 5, 1924. 17
Nmploys Archie Roosevelt at request of Theodore.
Feb. 15, 1924. 24
Arches wife ovried stock in one of Sinclairis oil compan
ies, Vat
acid it.
Feb. 15, 1924, 24

J- )rt

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

Gave valuable furs to Archie 's wife.
Feb. 15, 1924. 25

,
.(i.vin-t;f:, 141:We-sr:IQ-TA ro .i.v•Is.1.1: st.
•,e t.curt

Theodore was a director in Sinclair Oil Co. in Nov. 1919.
Feb. 25, 1924. 51

rr),

&mead
Criticizes Sen. Reed's proposition to pay bonus in
legal tender notes.
April 12, 1924. 114, 115, 118

.
1. -11A
1
,
.tilion 1,110W Lulu mato 244611 1,0
,OF.;flicA

titztava

O. bow 7„,

Tells C.S.H. of lease ce rocms in Cleveland bank
to Repub. Natl.
Committee.
May 13, 1924. 142

xd LIczetd a •:o1
leduem
irscA

LWO cod

i'"Aie

.o3 16.orr; 1(411
.1,t4d 14111.1011:40 10 -3nebat ntiequ

Special Committees
Draft of branch regulations.
Platt, James, Miller.
Feb. 29, 1924. 59
Committee report.

E ,77 .`26V

Z.8

Sphere of influence.
See - Zones

,vcaer

a LI
rta,A lo

,Lao!:

Branches

State Department
Opposes sending Brack to Assist Robinson on Dawes
Commission.
Jan. 2, 1 924. 1, 2, 3, 4, 43.
See - Hughes

puw&;31Z)

O eL3..10

Mar. 7, 1924.

IVRY

o‘'uft.toi
az44.
AL.

to.lans
EC18:3et5f. .rnr,3
,i:
.A, e:On
r,xi

•

Zellie

,s.r

ruiA

)!el A /).:,
ei,
L `to ew'sc;

sts.aiUi.
sjtnr

Sec. Mellon said not necessary to consult, as
to German trade bills
as the question is purely a banking one.
April 8, 1924. 111
Hugh33 and Hanihara.
See - Hanihara

April 11, 1924. 113

1'7
.1

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

-154.-

State member banks
See - Branch banks
Examinations
Johnson
Staunton, Admiral. 44
See - Roosevelt, Theodore
Sterling
See - Dawes Commission
Kammerer
Stewart
Corrects Smeadls memorandum criticizing Sen. Reed's views on bonus
April 17, 1924. 118
bill.
169, 170, 171
Stock market
See - Open market purchases.
Strauss, Albert
Left many records as to silver dollars permitted to be shipped to
American banks in the Orient.
May 3, 1924. 128
See - Pittman Silver Lot
Thomaa
Gov. Strong says Strauss was one of the Wall St. men McAdoo
called on for assistance.
May 29, 1924. 172
Strong, Governor
Believes, in spite of Wyattes opinion, that a bank can draw a
bankers acceptance against another bank, secured by a trade
bill drawn on the foreign purchaser, bought by the drawer
bank, in connection with an import or export transaction.
Thinks it may be in many cases bad banking practice.
Fib. 23, 1924. 35
Tells Board that Young of the Dawes Commission cabled asking him
to come over to help him.
Platt favored this.
C.S.H. opposed it.
•1

Mellon and cabinet opposed it..
Board refused permisOlon.
Feb. 23, 1924. 42, 43

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

455-

Etrcng, Governor (Cont.)
C.S.H. has interview with Gov. Strong in P.R. Bank of New York.
Mar. 10, 1924. 71

010

sa:
no I/slaw:0D seweLi - se?
ieirkasie)i

Gov. Harding says Gov. Strong, now ill in London, at Gov. Norman's
house, inspired the N. Y. directors to loser discount rates.
May 5, 1924. 129
Purchase of Govt. a3curittes to increase earning assets.
May 22, 1924. 151, 152, 154
See- Open market purchases
Predicts a broad business bocm following acceptance of Dames report,
titxt probably not before elections.
May 22, 1924. 1 , 155
Says U.S. shouli readjust debt of Allies to us.
May 22, 1924. 153

Miller dissents.

Thinks prices in U.S. will socn rise again and fall in Great
Britain, thus causing parity.
May 22, 1924. 153
Attacks McAdoo for saying he will remove the grip of Wall Street from
the Federal Reserve Board. Says McAdoo availed himself of
help of Wall Street more than any other Secretary.
Gives list of 16 Wall Street men brought to tho Treasury by McAdoo.
May 22, 1924. 155, 172
Says McAdoo 'Alen he fcrmed a partnership with Cotton asked him to
release to him some roans held by the P.R. Bank of New York
in Equitable Building, for his firm; that he said. he could
not; that McAdoo than reminlai him that he called a special
meeting of the F.R. Board and had his salary increased to
$00,0001
May 22, 1924. 156
Tells C.S.H. Sec. Mellon is greatly disturbed at the lease of roans
to the Repub. Natl. Cannittee by the Clevelarsi bank.
May 24, 1924. 157
Remarks before open market comnit tee on necessity of increasing
earning assets.
May 29, 1924. 168, 169
See - Open market purchases
Wants P.R. Bank of New Yozic to be allowed to sell Govt. securities
to stop any speculative movement in future, without prior
conserA of oven market ccmmittee. Miller Objects.
May 29, 1924. 169

-156-

•Aro-,-••••••• -•
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Strong, Governor (emit.)
Denies powers in Board to forbid a F.R. bank from buying or
selling Govt. securities.
May 29, 1924. 169
Says regulation of stock market by Money CcoLidtte3 after the
armistice was not a system transaction bu' was done by the
F.R. Bank alone with the approval of Sec. Glass.
May 29, 1924. 171
Gives C.S.H. a list of 16 Wall Street men brought to the Treasury
May 29, 1924. 171, 172
by McAdoo.
Superintendent of Banking, California
See - Jchnson
Swaim, Mrs.
Wita of former Consul at Bermuda dines with us to meet Hanihara.
May 23, 1924. 157
Swanson, Sen.
Attacks Hanihara's letter.
April 15, 1924.

•

Mrs. Wilson asks, to
attend funeral
this saying it
Senate. Later
comrait tee.

114

object to Sen. Lodge being put on cortmittee to
of Presilnt Wilson, but he did not want to do
would be infringing on the prerogatives of the
he telephoned Lodge had bean put on the
Feb. 28, 1924.

See- Wilson, Mrs. Woodrow
Tells Glass Borah told him seriously he ROuld be walling to be
nominated by the Democrats as Vice President if Glass were
norairated for President.
:day 31, 1924. 174
Swe
•

•

, Gov.
We E173a t, at supper at Mrs. Hard wan's.
Mar. 9, 1924. 70
Col. House says Glass and Sweet would make a good ticket.
Mar. 10, 1924. 71
(A few days later he took tea with us.)

Sweetest
Mr. and Mrs. Sweetser, attached to the League of Nations, dine with
us to meet the Egyptian linister.
May 25, 1924. 161

-T-

Taft, Henry W.
Presides at Hell ibara dinner, N. Y.
Mar. 10, 1924.
Teapot Dome scandal.
See - Baker
Daniels
Davis
Denby
Roosevelt
Sinclair
.

t•

16, 23, 39, 71

Thayer, Mrs. Eugene
Wires us of- largaret Hardia gls death.

Jan. 27, 1924. 7, 11.

Thomas, Ex-Senator
Asks for all r.3cords of Board as to permitting export of silver
dollars to American banks in Orient.
April 5, 1924. 98 to 105

;

Torrance branoh
ez z).
‘
ro smq
gird ,nceirlf :weiLesarcflo
oL Q/ tzusw 3oczL Z ed
a.hi1 d A14-401/ n 441/1044 464.0
r serl.tagoun era no
,
,
11,,T '14!...A&Aroi. Al tesaJ

•!.-?9"1

ad 0$ gnlilis id Wald
•.

79, 83, 84, 85

Trade bills, German. 105 to 111
See - German *rade bills
Jay, F.R. Agent
Trassury policies, F.R.banics teld.
Treasur y influere as Open Market Commit tee.
May 7, 1924. 132, 133

Tr
:

/4smoileS old Up: gialot saaio pils1
,4--t001002

Winston objects to recant increase of 50 millions of Govt. securitie s
May 8, 1924. 133
Treasury dominates Open Market Committee.
May 12, 1924.

.4/ZAM ,hOn

„er

- •

.0S01 40 ./

asiol, Wog a etas Mum

Lc .*set

*woe

bus, auLO mos $

0.1

•

4$1‘4 aet Ito°

134

C.S.H. objects to Treasury dcminaticn.
May 20, 1924.

148 to 154.

Treaties
C.S.H. points out that detailing Brack abroad to help Robinson,
of Dawes Committee, will violate Senate reservation to
separate Treaty between U.S. and Germany.
Jan. 2, 1924. 1, 2.
See - Jugoslavia

emt
Twohey, Federal Advisory Council
Asks C.S.H. if Miller abould be reappointed.
C.S.H. says yes and gives reasons.
Feb. 23, 1924. 41, 42.

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

'eslwegumamaiiiima

mosesossommissilalwaterialisail

-163-

••••

-U-

vinell irk
cI $s

-Lft maWaxoq SociefT .
"seteg.
slelaet
sivea
xirreq
Jlevesoo,E

,es ,Ls 181

Pens
,
.i:4e1. 'g ri,L•1411

i*vIt&

o
e.01

?v 41,e%arc'
.
roc relff
.

rconaifiDLLEvu
,

Lil

'3(1 •'ti qSL.V &Lt.
8111.: *toll ciameD - 69n
$atkAA .gwl

vt.tic, -*ET
..11,
,
.hryt mx`rsaar
,
ae4C ioLassi Vin I v•74.raaeier

.
tAlt.t :tror!i

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

Jil.CGt1

o
to sm011111.10
. :

United States
Gov. Strong favors readju,itment of debts of Allies to the.
Miller opposes.
May 22, 1924. 153
U.S. Rev, Statutes
Sec. 5202, limiting indebtedness of national banks to 100% of
capital, would revive as to all national banks leaving the
P.R. System,if membership were 111313 voluntary.
May 13, 1924. 139
U. S. Senate
Resolution calling for resignation of Sec. Denby
Feb. 15, 1924. 25

74,1J44.X:0)1..1
'so siiio.,rn ;Lk.
seta .$nei30 rueirtad ryz,•.)1..t.r.41
-14
..pse, e; Lc
11.8 ,e7

Under Secretary of the Treasury
See - Winston

University of North Carolina
C.S.H. delivers ccermemcement adlreas at.
June 11, 1924. 191, 192, 194
Unknown sold.i 3r
Mrs. Wilson says she will tall C.S.H. of the treatment ao-orded
President Wilson at the burial of the unknown soldier. 180
June 6, 1924.
See - Wilson, Mrs. Woodrow

sInetdo averriw

Valley Bark of Fresno. 46, 47, 97
See - Branch banks

.oWlz.rwt;
.*SV1
40
,
../P1..t.tar.trvid
r. IC .

Vice President of U.S.
Mrs. Punk says C.S.H. is McAdoo's choice for.
May 8, 1924.

133

)1. r. ik•e'T
tflO 40.21-JC:
,
W1111*.IC,1"
1v Illw ,ce:ilAcae0 sewse IJ
fteewie$ Veva e$placte

,nourricrol 044 o$ .turirr41;
t,!,k41ea

Voluntary membership in F.R. System
Federal Advisory Council favors, but not at present time.
May 13, 1924. 139

. : .ses. IS
4
J„Iv.olso3c11.
xmosivilA
.1)6 al:cAsel
4a4

.ksei

.1.1rio.de
'F,114E*: it#171' ;1144 ilf)X uN'44

4Vd011e:
24aA

Votes
Absent members
Gov. C. rules vote of, cannot be recordeu.
Mar. 5, 1924. 63, 72, 73, 86

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

-159-

Votes (Cont.)
Annual report
Vote to print.
Aye - Gov. C., Platt, C.3.H.
No - Cunningham, Janes
Not voting - Miller
Miller finally voted Aye
Mar. 7, 1924. 65, 66
Branch bank appltcations
Prior to Feb. 1, 1924, bilashart petitions may
filed naming location.
J. 7, 1924. 4

C.S.H. moves to extend until April 1, 1924
Aye - Gov. C., C.S.H., Platt
No - Miller, Cunningham, Jones, D-was
Jan. 7, 1924. 5
Valley Bank of Fresno
Aye - Gov. C., C.S.H., Platt, Millar, Cuminghan
No - JaLies, Dawes
Feb. 25, 1924. 47
Sec. Mellon records vote in favor of McFadden bill
(Dawes mot im.)
See - McFadden bill
Sec. Mellon rscorde vote against Miller's motion favoring
giving national tanks all branch privileges enjoyed
by member banks.
Feb. 29, 1924. 60
Cunningham records same votes as Mellon'a.
Mar. 6, 1924. 64
Elizabeth City, South Carolina
Motion to postpone.
Aye - Jiea, C.S.H., Cunningham
No - Gov. C., Miller, Platt
Mar. 12, 1924. 74
(See - Simultaxeous exaainaticns).
Branch bank regulations
Dawes motion to add reference to resolution of Nov. 7, 1923.
Aye - Dawes, James, Cunningham
No - Gov. C., C.S.H., Platt, Miller
Sec. Mellon to record vote.
Mar. 26, 1924. 87

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

-160-

Votes (Cont.)
Branch bank regulations (Cont.)
Miller's substitute draft.
Aye - Gov. C., C.S.H., Platt, MIller
No - James, Dawes, Cumningham
Sec. Mellcn to record vote.
Mar. 26, 1924. 87
C.S.H. substitute
Aye - C.S.H., Platt
No - Gov. C., Dawes, Miller, James, Cunningham
Mar. 26, 1924. 88
To adopt regulations as amended.
Aye - Gav. C., C.S.H., Miller, Platt
No - Dawes, James, Cunningham
Mar. 26, 1924. 88
Final vote
Aye - Sec. M., C.S.H., James, Cunningham
No - Gov. C., Platt, Miller
Mar. 27, 1924. 93
Sic. M. to complete the record, records his votes.
Mar. 27, 1924. 93, 94
Commos Club
C.S.H. elected Vice President. 176 to 120
Jan. 14, 1924. 5
Discount rates
Reducing N. Y. from 41 to 4%. Unanimaus.
April 28, 1924. 125
To approve 31 for Philadelphia but against the differential
aFainst 6 months paper.
June 17, 1924. 197
Efficiency and Economy Committee
To direct committee to investigate as to number of employees,
salaries, etc.
Miller alme voted No.
Jan, 17, 1924. 7
Fiscal Agency functions. F.R. Barks
Motion to approve Wins tan's telegram as to exchange of unfit for fit
currency.
Aye - All except
No - Gov' C. Miller
June 12, 1924. 190
German trade bills
April 7, 1924. 109, 110, 111,
11?

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

-.161-

Votes (Cont.)
McFadden branch bank bill
Dawes motion to indorse
Aye - Janes, Dames
No - Gov. C., C.S.H., Platt, Miller
Feb. 29, 1924. 59
Cunningham motion to indorse:
Aye - Sec. Mellon, Gov. C, Cunningham, Dawes
No - C.S.H., Platt, Miller
Janes recorded as Aye
May 26, 1924. 165
Gov. C. explains vote.
May 26, 1934. 165
Recommendation
Board votes that any member may move to reconsider no
matter how he voted originally.
Feb. 9, 1924. 5
Reparations Can Ut tee
Vote to refuse application to send Brack to help Robinson
on Dawes Connittee.
Are - C.S.H. , J110108, Cunningham
No - Gov. C., Miller
Jan. 3, 1924. 3
Gov. C. explains his vote.
Jan. 3, 1924. 3
Republican National Counittee
Vote disapproving lease by F.R. Bank of Cleveland to.
Notice to be sent all other F.R. banks
Unanimous, axcep t that Platt voted against notice to other
F.R. banks.
May 29, 1924. 173
Salaries and Expenditures Committee.
Vote to examine number and salaries of all employees.
Jan. 17, 1924. 6
Simultanecus examinaticns
Herson has prepared. a practicable plan for.
Feb. 18, 1924. 27
James refers to Hereon's report.
Feb. 25, 1924.

Miller moves to permit Eastern Banking and Trust Co. to
establish a branch provided the ntate was making a
satisfactory simultaneous examination, etc.

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

463..

Votes (Cont.)
Simultaneous examinations (Cont.)
C.S.H. says if Board. insists on simultaneous examination by
state and refuses to exit:nine itself he may apply to
court s for a mandatory injure ti on.
Feb. 25, 1924. 49$ 50
Hereon files report Aving plan.
Feb. 28, 1924. 53
C.S.H. moves trznecliat e simultaneous exam inati on of all
state
banks not now being simultaneously examined by the
state. Lost.
Feb. 28, 1924. 54, 55
Miller gives notice he will introduce a regulation
that Board
hereafter admit no branches from statenot havin
g a
6atisfectory simultaneous exani
nation.
Feb. 28, 1924. 54
C.S.H. says Board. has notified. the F.R. Bank of San Franc
iwo
that it will not approve the California exaninat ion
because
not simultaneous, and. therefore it is our duty to do it.
Feb*, 28, 1924. 55
Vote on Miller's motion. Passed.
Feb. 29, 1924.

Miller moves rejection of Torrance bank applicatio
n on
ground that state was not examining simultaneo
usly.
C.S.H. moved to substi =te to postpone applicatio
n until a
simultaneous 3xamination is made by F.R Bank
of Pacif.
S.W. Co. Lost.
Mar. 18, 1924. 80
C.S.H. moves simultaneous examination by Herso
n of all state
member barks in California not now being simul
taneously
exaained by the state. Passed.
Mar. 18, 1924. 80
Board. rejects Torrance application, because
no simultaneous
examination by state.
Mar.18, 1924.
81
C.S.H. moves to substitute for the regulation
that Board will
not entartain any application fran any bank
not being
simultaneously examined by the state, a regul
ation that,
except under extraordinary anergencies the
Board rill
grant no further applications unless, withi
n one year
of the date of applicb.ti on, there has bean
a satisfactory
simultaneous exaninaticn by the F.R. or
state, etc. Defeated.
Mar. 18, 1924. 88

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

-163-

Votes (Cont.)
Simultaneous eataminaticns (Cont.)
Vote on Regulaticns. Lost. Tie.
Max'. 18, 1924. 88
Vote on C.S.H. ccmprcmise regulations.
Max. 27, 1924. 93
Reserves, Split. Deposits and. notes.
Board votes to strike from annual report all reference to.
Mar. 5, 1924. 62

Wall Street
McAdoo's attack on P.R. Board and.
See - licA.doo
Strong, Gov.

155, 171, 172

Walsh, Senator, Mass.
C.S.H. criticises plan of, to pay bonus in legal tender notes.
April 12, 1924. 115, 118
Walsh,Senator, Montana
C.S.H. attends mock trial of, cn oil scandals at hone of
Mrs. Borden Harriman. liar. 9, 1924. 70
War debts of Allies to U.S.
Gov. Strong says should be readjusted. Miller opposes.
May 21, 1924. 153
Warburg,P. M.
Asks as to eligibility of German trade bills for purchase by
F.R. banks.
April 5, 1924. 105
Warburg explains these bills.

109

Warburg says Sec. Mellon favors their purchase. 110
Discusses open market purchases at meeting of Pedral Advisory
May 12, 1924. 134, 135, 136, 137, 138
Council.
See - Open market purehases
Warder, Mrs.
We dine with.
Feb. 24, 1924.

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

-164
-

Washington Post
Refers to lease of F.R. Bank of Cleveland to Repub. National
Committee.
June 6, 1924. 180
Wellborn, Gov.
Attends Board conference on Citizens First Naticnal Bark of
Albany, Georgia.
May 16, 1923. 143
Weeks, Sec.
Tells 118 there is a reVolution in Mass. against Lodge for his
votes on th: pension and bonus bills, over the Pre:tient's
veto; that a friend advised him not to go to Mass. for fear of
personal insult and perhaps even assault; no such feeling since
Webster's speech of Mar. 7; that President Coolidge asked him
with the innocence of a child Adhy Loige acted this way.
May 26, 1924. 166
Mrs. Wilson says she will tall C..H. of treatment of President
Wilson by President Harding and Sac. Weeks at funeral of
-unknown soldier.
June 6, 1924. 180
West, Mrs. 177, 193
See - Hale, Mrs. Chandler
Myer, Gertrude
Williams, John Skelton
Glover EL:aoks, at Sen. Bruce's house.
Feb. 20, 1924.

C.S.H. explains to Mrs. Wilson the row between, and Glover
.
May 44 1924. 128
Wills, Federal Reserve Ai.ent
Says he asked Sec. Mellon to recommend reappointment of Miller
;
that he said he hoped Mellon would ')e prejudiced against him
because he voted against C.5.H.°5 branch bank compromise
regulation; that Mellon said Miller had explained this and
he was favorable to his appointment.
April 23, 1924.
121
Wills said every one believed that C.C.H. would be design
ated as
Governor; that even the majcrity respected him, and that
Dawes, especially, praised h13 fairness and Impartiality
.
C.S.H. said he could not believe it, but Wills said it was
coming.
April 23, 1924. 121
Writes a letter to the Board for his directors,.expla
ining the
lease to the Repub. Natl. Covaittee.
June 9, 1924. 182

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

-165
-

Wills, Federal Reserve Agent (Cont.)
Says that to the beat of his recollection he has not
sen his
Board so stirred since the organization of the bank.
June 9, 1924. 183
Wilson
Index:(References are to numbered paragraphs.)
Accident to Mra Wilson. 34
Baker, Ex-secretary. 7, 9, 12, 13.
Birkenhead, Lord. 3
Bolling, John Randolph. 2, 5, 7, 8, 9, 33, 34.
Bonus bill. 35
Brown, Mrs. Col. 34
Bruce, Senator. 18, 19,20, 21, 31
Bruce, Son of Senator. 18
Caetani, Prince. 21
Carnegie endowment. 29
Cathedral, Washington. 17, 33.
Daniels, Ex-secretary. 13
Death of President Wilson. 1, 2.
Eniless Caverns, Va. 34
Fall, Secretary. 16
Fiume. 21
Freeman, Bishop. 17
Funeral of President Wilson. 5, 14, 27.
Glass, Senator. 35
Glover, Charles. 16, 17, 18, 31, 32
Grayson,Admiral. 11
Gregory, Ex-Attorney General. 13
Harding, President. 16, 29, 38
Hungary. 21
Hamlin, C. S. 4, 5, 6, 11, 15
Italian Ambassador
21
Italy 21
Kennedy, Rev. Studdert. 3
Lane, Ex-secretary. 13
League of Nations. 3, 35
Lodge, Senator. 23, 26
McAdoo, W. G. 14, 16, 27, 31, 35
McAdoo, Mrs. 27, 35
Myer, Gertrude. 35
Pall bearer, C.S.H. 5
Redfield, Ex-secretary, 10
Resolution. Carnegie Endowment. C.S.H. 39
Riggs Bank. 16, 31.
Soldier, Unknown. 38
r
,tate Departfwant. 22

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

-166-

Wilson (Cont.)
Index (Cont.)
Swansimi Senator
23, 24, 25.
Pumulty, J. P. 7
U.S. Senate. 24
Unknown soldier, Burial. 38
Weeks, Secretary. 38
West, Mrs. 35
Williams, John Skelton. 16, 31
Wilson, Margaret. 27
Wilson, Mrs. Woodrow. 5, 6, 8, 9, 11, 17, 22, 23, 24, 25,
26, 27, 28, 30, 31, 32, 33, 34, 36, 37
64.ww,4014.4.04 4 66 7
. 44
4
('1.'9 t.44,...A•444.4
Wilson, President
. See - other headings
Yugoslavia. 21
1.

President Wilson dies Sunday at 11.15 a.m.
Feb. 3, 1924. 12

President Wilson had a bad tarn two weeks ago unl Mr. Bolling
•
told me it was only a question of time, - that there was
no hope.
Feb. 3, 1921. 12

Dr. Kennedy, an Englishman, one of the King's Chaplains,
preached at St. John's Church. He lunched with us
yesterday, and I was not particularly impressed with him.
He delivered the ablest sermon- on faith - I ever hard,
and at the and ha paid a tribute to President Wilson, which
for eloquence, fire, and 1) J:a oratory excelled anything I
,
ever heard.
He said Wilson went to his cross as did Jesus Christ for
the
peace of the world, an-1 that those misguided people who
opposed and attacked him were, In reality, fighting God
himself.
After the service I thanked him and asked him to write
out his
sermon and I would have it printed.
He said Lord Birkenhead, who had lately attacked Wilson'
s
idealism as an ass as well as an infidel.
His sermon went to prove that neither individuals
nor nations
could live in isolation; that by God's will they are
dependent one on the other; that the principles of the
League
of Natiana were the principles of God.
Feb. 3, 1924. 12, 13.

Li. 144

.1'

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

.167-

t
•

Wilson, (Cont.)
4. C.S.H. printed this sermon.

(See scrap book)

•

Mr. Bolling writes C.S.H. stating that Mrs. Wilson wished hi,
to serve as an honorary pall bearer at the funeral.
Feb. 3, 1924. (10 p.m.) 13

C.S.H. that night, Sunday, wrote accepting and carried, it to
the house, 2340 S Street.
Feb. 3, 1924. 13

Ex-Secretary Baker telephones C.S.H. fran Cleveland and says he
had been asked to serve as honorary pall be_irer; that
nothing had hem said about ladies; that Mrs. Baker would.
not cane on =less she was expected..
He asked me to ask Tumulty if ladies were expected.
C.S.H. said he would prefer to Ake the matter up direct with
Mr. Bolling.
He hesitated, and asked. if I had his telephone number.
C.S.H. said yes, and. Baker asked him to call up Bolling and wire him.
Feb. 4, 1924. 14

I called up Bolling who said he would ask ldrs. Wilson upstai
rs.
In a minute h3 said Mrs. Wilson said that as the space was
so limited., ladies were not expected.
I said to Mr. Bolling, - why not have me wire Baker Amply
that
the best information I can get is that on account of
the
limited space, ladies were not expected,

That Mr. Bolling says, etc.
I made this suggestion to shield Mrs. Wilson fran being (rioted
directly. Mr. Bolling said, rather brusquely, thus
are Mrs. Wilson's exact words, - say anything you please
,
and then repeated them.
Feb. 4, 1924. 14, 15.

10.

C.S.H. accordingly wired Baker that Mr...Bolling says
etc.
being determined to shield Mrs. Wilson fran a direct
quotation, knowing , that a bitter disappointment this
would
be for the ladies.
Feb. 4, 1924. 15
C.S.H. 8.1sc wired Sec. Redfield to same effact
, as Mr. and Mrs.
Baker, and Mr. and Mrs. Redfield were to be ovr
guests.
Feb. 4, 1924.
15

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

-.168-

Wilson (Cont.)
11. Admiral Grayson gives a list of honorary pall bearers to
the Associated Press and. C.s.H.'s name is not al it.
Called up Grayson who said it was a stupid error, - that my
name was the first one Mrs. Wilson mentioned, and he would
correct the list.
Feb. 5, 1924. 15
12.

Baker says President Wilson was very indignant with McAdoo for
resigning just 'oefore he started for Paris, and said. to
him McAdoo *should have remained in th3 Cabinet.
Feb. 5, 1924. 16

13.

Baker and Daniels said that President Wilson directed Lane not
to approve a patent for oil lend pending before him, which
he told Gregory aid Daniels he wanted to aporove; that
the matter rested for sane years, when again they heard
that Lane , just blf ore re sigiing was going to approve it;
that Daniels again went to th3 Whits House, and
President Wilson again wrote Lane not to approve it.
Feb. 5, 1924. 17

14.

For a complete statement as to the funeral of President Wilson,
prepared by C.S.H., see scrap bock. 17

15.

The papers announced C.S.H.'s mine as an honorary pall bearer.
Feb. 5, 1924. 17

16.

Charles Glover, at a diriner at Sen. Bruce's, attacks IcActoo
and Williams for their conspircy to wrack th- Riggs Bank,
and said that at one time he thought he could prove that
President Wilson was a party to the conspiracy, but tather
grudgingly said. that link was not proved.
C.S.H. immediately interrupted him and very firaly but quietly
said that President Wilson was not a party to that alleged
conspiracy nor to any other; that he was of such ch‘tracter
that it was not necessary to defend him.
C.S.H. added that, without reference to this particular matter,
he would point out to Mr. Glover that a President has
necessarily, to depend on his Cabinet officers; that they
were his ayes and ears, that they, of course, may deceive
him, but he cannot be held responsible for this.
C.S.H. also said President Harding turned over the naval oil
reserves to the Interior Department on the reco anendation
of his Cabinet officer, Sec. Fall, and that the ccuntry
believes this was a betrayal of the public interest, ana
asked Glover if he believed that President Harding,

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

-169-

Wilson (Cont.)
deceived by Sec. Fall, could properly be charged with
having entered into a conspiracy to betray the public
interest? Glover at orce subsided and said that C.S.H.'s
point was moll taken, and that no President sLauld be
charged with illegal intent when he accepts as true the
statements of fact made to him by his Cabinet officer.
If Glover had not so speedily "come down" C.S.H. would have
said things to him which he would not soon have forgotten.
Feb. 20, 1924. 30, 31, 32.
17.

At this same dinner Glover said that Bishop Freeman came to him
and asked his consent to have President Wilson buried in
the Cathedral, owing that Mrs. Wilson wanted this very
much and that he (Glover) said to the Bishop; - "I have
fought President Wilson bitterly for many years, but if
Mrs. Wilson and you want him to be buried in the Cathedral
the future Westminster Abbey of the Country, - I shall
not object, - I consent."
I do not think he said this, - to do him justice, - to in any
way triumph orar Mrs. Wilson, but merely to show his
intense egotism and vanity.
Feb. 20, 1924. 32

•

18.
•

•

After we left the dinner table, young Bruce, son of the Senator,
said he wished he could have told President Wilson what he
thought of him.
C.S.H. said - President Wilson will be canonized by our children
and our children's children long after you and I are
forgotten.

•

Glover said to him smilingly, - "Be careful or Mr. Hamlin will
annihilAte yotl,
Feb. 30, 1924. 33

•

19.

20.

•

Senator Bruce and son are, I believe, graduates of Princeton,
and are evidently prejudiced against President WilsoN
because of the Princeton controversy.
Feb. 30, 1924. 33
Sen. Bruce gave a very cryptic interview an the death of
President Wilson, - the aaly interview which Nee more of
a covert attack than a tribute.
(See scrapbook)
Feb. 20, 19244 33 , 34

21.

Prince Caetani tells C.S.H. that he does not want to criticise
the dead, but that President Wilson did not understand
the Italian people and was sorely deceived as to Fiume;

•

. ..

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

-170-

Wilson (Oct.)

22.

Fiume
that by a treaty between Italy and Jugoslavia,
a post 4 or
was given to Italy while Jugoslavia got
to Fiume
5 miles away; Chat Hungary was more entitled
than Jugoslavia.
Feb. 25, 1924. 51, 52

sent word shG
Bartle and I call on Mrs. Wilson, she laving
wanted to see us.
She seemed very wan and sad.
ence, and had
She said She had received 8000 letters of condol
from a Govt. or
already answered in person every letter
sovereign, from all parts of the world.
official
She said the State Department, &Joh helped her 4th
L;tandard form of
titles, etc., would not let her use one
letter, because, as one of the officials told her, the
Sovereigns migh compare the letters!
Feb. 28, 1924. 86

23.

Senate was
She said that when she read in the papers that the
ent Wilson's
to mpoint a committee to attend Presid
funeral, she communicated with Senator Swanson and asked
him to object to Sen. Lodge being put on the committee;
bogged
that Sen. Swanson at once care up to her house and
him to object would be
her not to insist on this, as for
to infringe upon the prerogatives of the Senate.
Feb. 28, 1924. 56

24.

She said she told Sen. Swanaon she hat great respect for
individual Senators, but very little for the Senate.
Feb. 28, 1924. 56

25.

She said that Sen. Swanson telephoned later that Sen. Lodge
had been app cinted. on the committee.
Feb. 28, 1924. 56

26.

She said that thereupon she addressed a latter to Sen. Lodge
saying she felt sure he would appreciate her feeling
that he ahould not be present at the funeral, and that
Lodge acknowledged her letter saying he hat not realized
that the funeral was to be a private one!
Feb. 28, 1924. 56, 57

27.

She also spoke of the visit of Xr. and Mrs. McAdoo at the
time of the funeral. (This was just after McAdoo had
testified before the Congreasicnal Committee as to his
Doheny retainer.)

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

-171-

Wilso n (Cont.)
She said her house was filled to overflowing with callers
on McAdoo, Press representative, etc. all the time
he weathers; that he received delegations in every
roan; ;hat she scarcely had a roan to herself.
She said. McAdoo was altsost beside himself with excitement,
saying one thing to one group and another to another;
that his supporters were entirely demoralized; that
sane were begging him to withdraw and same to fight on.
She said Mrs. McAdoo was in constant tears, sobbing that the
affair would kill "Mac;" that Margaret Wilson, who Ate
a Christian Scientist, went around the house with a broad,
smile saying everything would. coma out all right.
Feb. 28, 1924. 57
'
She said she thcught failure to secure the nomination would
kill !.!r. McAdoo.
Feb. 4, 1924. 57
28.

She burst into tears several times during our interview art/
seemed terribly sad and depressed.
Feb. 28, 1924. 57

29.

C.S.H. introduces a resolution at meeting of the Carnegie
lidowment fa' International Peace, directing the 3.xecutive
Committee to prepare resolutions on the death of President
Wilson and President Harding, recounting their services
-nilies
for world peace, and that a copy he sent to the fa.
of the deceased Presidents.
Passed unanimously.
April ZS, 1924.

122, 123.

30.

C.S.H. calls up Mrs. Wilson and tells her of the above resclutians
April 23, 1924. 123

31.

C.S.H. calls on Mrs. Wilson; tells her of the Glovar episode
at Sen. Bruce's dinner, and explains about the Riggs
Bank row saying that Glover started the row and his bank
was engaged in many illegalities, which, however, could
easily have been put an end to without the bitter row, and
that while McAdoo and Williams had undoubtedly much
provocation,he believed they were so incensed, as to lose
their haacia ani that they really tried., perhaps subconsciously,
to wreck the Riggs bank in their vengeance.
May 4, Suniay, 1924. 128
,

-172-

(e r
flaw 9gLead lucf blas sj fr 1.1
,notkoll Ly4
,..ANI./ktnesPtgeal seel9
.
xtert xicnol,t4.;st:let bevktoel ed Ceall ;eted$ sew sill
v
:se& ;theet
141f 'tIotattoe.
o3 LIO

elt-11.

0111VVO j:1

etelln

ktsed :soisLa; saw ooluto;.: bliss ce
It.113o11s: hn4 4uot,A eau- 0: sincld: eao
;bes11.4.T.Imei xle71:ao etlk slevioqqm sld
ee stew *ae:T
.no .1'117311 u: einoa ii
„Ineine:loxe

Wilson (Cont.)
to permitting President
32. C.S.H. told her about Glover's talk as
she said
Wilson's body to be tnterred in the Cathedral, and
came from her
her chief hesitation at having him buried there
feeling towards Glover.
May 4, 1924. 128
inxilr her arrange..ant,
33. Mr. Bolling tells C.S.H. that 'Ars. Wilson,
was free to remove the body at any time.
May 4, 1924. 129

al Hv. ootkolit..sti," bits erfP
ezi3 aart: 302,:doz: issiae$
.
Ye-ea:01N 3114i. ";cald" 11111 blarow
sex ";
::fai...tal•r.d0 a
€63 kturil.s..,
to.
:
basol. anixact er.ttcs
creoc 1;,Zwari
11

34.

Mr. Bolling told C.S.H. that Mr:-;. Wilson while visiting
to
Mrs. Brom at the Endless Caverns, Newmarket, Va., started
as she
go dawn three stone steps into her bathroom, and just
was getting into her bath, she saw scmething black on the floor
which looked like a piece of black cloth; that she started to
brush it away when suddenly it flew up toward.s her (it, in
a
fact, was a black swallow); she, howev'er, thought it was
and fall ag.-4nst
bat, and with a scream jumped back and slipped
the steps, breaking a bone in her shoulder; that a nearby
Doctor bound up her shoulder; that he insisted on her going
back to Washington to have it set, all wanted her to ta'Ae a
conpartment on the train; that she Insisted on going back'by
autonobile, - 180 miles; that she would not let the Doctor
strap her arm to her side or across her chest, and. made the
long journey, but with very great pain and suffering.

va .;asel os .061

tizow

eid3 eltroes

4
,11:44U13;i:
0,7 6'114 141 :

•

weivle3n1 rwo art.t.wt as,2iZ:! liestvcis ewe; o/ni •leurc,"
.bessexek bra; .t.‘L xlettle:1 ttixeco
.601
seOubotital
:132/ulosen
e4srrx40 e113
sum laaslannfeni val $neowobrIT.
(
ftd$,E4a1:w)tib
o$ eeStlagna!)
Ittertp;wff 10 rfb 6,11 iosaolUrlose's
3netiael9
• secivuit i1irti n1.1111Jor,e1
:acat en coo a Sad/ tar, ,eozeg bilow lol
e:11 1:
.s3netlaytr.: Lesasoeb ed.1

to be done
Vt. Bolling said the bone was set yesterday, that it had
r had to be
under anesthetics, and tl-at her arm and shoulde
placed in a plaster of Paris cast which could. not be taken off
for a month or six weeks.
May 25, 1924. 160

.T.lairoattna.au beassq

Evo-A; ea: lo ¶e4:1e1 1,A4 nosll

.3I".0, ;i slLso

.0&

.ksel
.fitli1 no slIzn . .
1
- fu:1 eliel
oix?slqe ivoI E;
s'etuftE .ne3
.ATI.3
L1x6.1. sgalf1 *A3 3f0C;41
:/
tetta:s ievoI3/4. pinitcae.
Insid 111
vewod 0by Ise1:t11:6111 xnam n/ bez.eans MAW
blyoc.
evari xilsas
.
Lisa ,wol 1.01 J13" efii :motibtkod o3 tint. na Juct aced
sirew 34111,
t:'duobtut tad swat If.IW fru. otJ
:fovlko
i5o0irolta
Gaol 03• at tesrseenl 06 CgeW xe:71.1 bevelled eii,noil
Iled1
Ji
IIas'
sqzikile
LoDd
inelw o!
•
.ebnaeAnev hhlierl3 n1 stnad
ixatruf8
. P
Zg.L.

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

C.S.H. calls on Mrs. Wilson.

35.
..LE

Senator Glass tells C.S.H. that President Wilson, just before he
died, wanted to come out publicly against "4cAdoo for his cow'se
in avoiding the League of Nations and his attitud.e towards the
bonus bill, and that it was with the greatest difficulty that
• he and other friends persuaded him to postpone this.
May 31, 1924. 174

36.

Gertrude Myer says Mrs. West said she had gone to the Cathedral
with ;Ars. Wilson and Vance McCormick to arrange for the
interrment there of Presti ant Wilson's body. Later she admitted
this was a pure fabrication on her part.
June 3, 1924. 177
June 12, 1924. 193

37.

C.S.H. calla, by a! pcintment, on Mrs. Wilson. She was on a
couch in her roan, and is getting along finely.
June
1924. 178

-173-

Wilson, (Cont.)
38.

Mrs. Wilson promised

C.S.H. to give him a detailed account
of President Wilson's treatment by President Harding and
Sec. Weeks on the ocdasi on of the burial of the unknow
n
soldier at Arlington.
June 5, 1921.

180

Winston, Under Secretary
Strongly objects to F.T. banks buying Govt. securit
ies.
May 8, 1924. 133

.. .
AC S
ee,V

.
oev.at, 1:61*:Ibni t;:a4
r.

!Lk

Iooi1 G17:.

.0 .14.,1,.}.4

171 1
0&4c

5e.pla.,16 eAlk
, &so i.
L

.124,1:6 to eoe.t.
-

f'flE

16,4
3 boqout. olostlt,..k A
.

lel 4on
"

sasa,

A.1 w ran

,
r s:i0.1 1.10 4--4,n.:ftaitsW OI
1
.

Zocs:sL

. ;7.i•..:140 elle
fr
it:: a

;

aoc'
zz,4r*;::.; zt,.4- .
•
403

081 -

t.,th. 7„.!.°,:" •1.
!
.

1tt.

June 5, 1924.

188, 189, 190.
Wooley, Robert

Led z

kie!bert Jra

ea' 34 be,!.

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

:Or

178

Dispute with Board. as to F.R. banks tempor
arily assuming cost of
shipment and insurance on unfit curren
cy exchanged for fit.
June 9, 1924. 184, 185, 186, 187,

er7.
C

15'7, 158, 159

says Mr. Price is to confer with him tomorrow
as to appointment of
F.R. Agent at Minneapolis.

u Lag° 5 la 4oo
(
-

f":41 beftsts
,
- L)4s4 wilog 113 te,lc

May 24, 1924.

:1 rKauld

i,*

,Li
t.

11:t.toC rtf4

C.S.H. confers with, as to lease of rooms in F.R.
Bank cf Cleveland
to Repub. National committee.

14743.

tve11SA 1
41.aettc.n. ricar.
rokimi
(wo Lem A361

May 21, 1924. 150

ofrut,

e 1v4 0 mi

INle,tit

to at...Tee to increase in earning ask,ets
of F.R. banks;absolutely inifferent to &ether F.R.
banks
make sufficient earningb for 3xpensos and divide
nds.

(1K,

4:ni a(te4 ,

!1,no,o

Miller tries to perauade him

3'4

iLz

i 2111ci 10
ew

Lie

h.:CA
13

bects.L
Itt

Thinke McAdoo should withdraw as a
candidate for President.
Feb. 5, 1924.
18
World Court
Gov. Montague says James Brown Scott
is against this World Court,
but for a World Court.

•

April 30, 1924.

127

Wyatt, General Counsel, Federal Reserve
Board
C.S.H. tells, hia opinions are too
iiffuse and mix up policy
with law.
He originally ruled

that a bank could not draw a bankers
acceptance agp.inkat another 'bank, secured
by a trade bill
drawn on foreign purchases bought by the
drawer bank,
in connection with an import or export
transaction.

C.S.H., Gov. Strong and Dawes thought
a bank could technically
accept rich a bill, but that in most
cases it would
be arainst sourri banking policy..
Wyatt said he hag changed his opinion
and
were technically leg,al.

thought such ..1.ccei.:tances

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

-174-

Wyatt, Gen3ral Counsel, F.R. Board (Cont.)
C.S.H. asked for a new opinion.

Wyatt giv
a new opinion, 17 pages long, mixing up policy with
law, which C.S.H. could not understand.
C.S.H. called for .nother opinion glving solely hie conclusions
as to the law.
C.S.H. dissatisfied with Wyatt's opinions; he Sleatils
iz a member of' the Board.
Feb. 23, 1924. 35, 36, 37.

think he

Says Board can lawfully enact a regulation that it will not
• entertain a branch application unless the bank is being
examined simultaneously by the state.
Mar. 7, 1924. 68
Says German trade bills ar3 technically eligibl3 for purchase by
F.R. banks.
April 7, 1924. 108
Says Board cannot refuse application for a branch because no
simultaneous az= inItion by state, unless the bank on
entry to syste-r. agrald not to
tablish a "cranch except
on consent of Board.
April 16, 1924. 117

Doubts legality of Atlanta banks arran,.az13nt as to
Citizens First
National Bank of Albany, Georgia.
May 16, 1924. 146

C LT

-1;*

Rules that Under Secretary Winston is not an ex-offic
io membr of
the Board and. cannot vote as ropresentin the Secret
ary
of tin Treasury.
June 12, 1924. 188, 190.
See - General Counsel.

4i4L. 53k;

,
:tk4j".. "lett

ria.r

le ett

r41:1;

ribatt.V

wow L.

4...tc{
04ga

Cfl

):.1;3n

4411-e 1.1

-X-

tt-111%

4 4se

y„

:istr

a sa!

110

IJ :1oqL1.!
.L.Lvot

. . .

.e tisso
ro

:•
4

e•

ciL,)

Young, Owen
Cables asking detail of Goy. Strong to help him
on Dawes Committee.

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

-175

Young, Omen (Cont.)
Most of Board, e6pecia1ly Platt, favored.
C.S.H. opposed, as being in spirit at least, in violation of
Senate reservation to treaty batim:11 U.S. and Germany,
Sec. Mellon op - oses.
Board decided Gov. S. should net go.
Feb. 23, 1924.

Zones of influence. 68, 70, 82.
See - Branch banks; regulations

(The end)

•

42, 43.

Full text of Diaries of Charles S. Hamlin : Index-Digest of Charles S. Hamlin Diaries, Box 22, Volume 8, Reel 15, January 1-June 17, 1924

FRASER