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Collection Tilde THE PAPERS OF CHARLES SUMNE DIARIES Series and/or Container • Shelf/Accession No. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45' v. II MLIN http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INDEX DIGEST VOLUME XI. September l, 1925Aft,z_gg4,__az& Aldrich, Mrs. Richard H. P. H. says Mrs. Aldrich once told her that she was calling on Dr. ana Mrs. Miller one day after President Wilson had gone out of office, and that they were both virulent against Mr. Wilson, that, in indignation, brie arose and left the house. Jan. 17, 1926. 90, 01. Aldrich, Sen. See - Andrew, Cong. Alexander, Mr. At supper given by Dr. Miller to the Federal Advisory Council, Mr. Alexander defended the call loan market. He coke of the early predicticns of Glass, Owen, and C.S.H. that Federal Reserve money would be divorced from Wall Street but pointed out its continuous growth. He opposed the suggestion of Dr. Miller that the Federal Reserve Act be anaendeci to authoriz Federal Reserve banks to decline to discount for member banks carrying speculative loans. He said the Federal Reserve banks, by cooperating with the member banks, could correct any abuse. C.S.R. told him he agreed with what he said, but pointed out that his (C.S.H.ts) statements in 1914 were based on the fact that tinier the old law, 3/5ths of the country banks required reserves could be placed with New York banks and loaned out by them on the stock exchange; that thus the country bank reserves were really nothing more than call loans, which in times of panic could not be realised on; that under the Federal Reserve Act the reserves of country banks and all banks were in gold in Federal Reserve banks; that while the Federal Reserve banks, setting aside 35% reserve, could grant loans on the balance (65%) of these reserves, the loans could only be made against eligible paper. Mr. Alexander agreed to this. May 20, 1926. Alien Custodian property See - Genaan claims bill 200, 201. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2. Aluminum See - Trade Commission Anderson, B. M. German business and finance under Dawes plan. April 2, 1926. 169 - 13 American Committee, Geneva Dr. Shotwell says Root and Scott tried to induce the Expcu tive Committee of the Carnegie Foundation to revoke the $4000 appropriation for the, but finally gave up the attem pt. Sept. 17, 1925. 8 Dr. Butler writes C.S.H. that he wishes to have the appro priation for the, increased to $10,000 for next year, and C.S.H., who can not be at the meeting, wires approval. Dec. 4, 1925. 54 Ames, Lady Gives Bertie a ticket to Assembly. Sept. 13, 1925. 4 Dined with Sri Herbert and Lady Ames, List of guests. Sept. 15, 1925. 6 Amory, Copley We lunch With Mr. and Mrs. Mr. and Mrs. Edward Atkinson were also there. April 18, 1926. 163 Anderson, Father Has a special service at St. Agnes church, Washi ngton, in memory of Anna. C.S.H., H.P.H., and Marion Oliver were present. Monday, April 26, 1926. 171 Andrew, A. Piatt Comes an board "Pittsburg" at Cherbourg. Sept. 24, 1926. 13 Points out Gen. Robert Lee Bullard. He thought at first it must be Count Tolstoi; said that he had written articles on the war for the Hearst newspapers and bitterly criticised the administration for its conduct of the war; said that he changed his clothes two or three times each day; that when walking on deck he wore a derby hat and carried a cane; that one night he came down to dinner in a dinner jacket with his breast covered with medals. Sept. 27, 1925. 13, 14. Spoke of his troubles with Secretary MacVeagh. Said that MacVea4 did not like him and that finally they did not even speak to one another. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3. Andres, A. Piatt (Canted.) He said that While a Professor at Harvard, Sen. Aldrich asked him to serve as Secretary of the Monetary Commission; that he got leave from Harvarm to do this; that later he was appointed Director of the Mint and after that Fiscal Assistant Secretary of the Treasury. He said Sen. Aldrich wanted him to go to the Chicago National Convention to put through a plank indorsing the Monetary Commission bill, but that MacVeagh flatly refused to allow him to go, whereupon he resigned. He said one day Vanderlip called him up from New York and said that Charles Norton, Secretary of President Taft, was negotiating a hundred million dollar loan In New York for Treasury purposes through Baker of the First National and the Morgan interests; that Vanderlip ;aid his bank, the National City, had not been consulte1 nor offered any participation, and he was ver indignant. Andrew told Vanderlip that altho he was fiscal Assistant Secret ary he had. never even heard of this. • He said he drove to Norton's house one morning and asked him what it all meant; that Norton told him he could not talk about i t; that he than drove to MacVeagh's house, but that he had not yet came down; that he kept him waiting a half hour and finally came down and said petulantly, "Well, Andrew, vihat do you want?" Andrew said he came to talk with him about the hundre d million loan; that McVeagh said, "By what right do you came to me on a loan matter, - I am the Secretary of the Treasury!" Andrew said he told MacVeagh all he had heard and that finally, to his amazement, MacVeagh admitted that he also had never heard of it. He said that later MacVeagh went with him to New York and had an interview with Vanderlip and verified the fact; that when they returned MacVeagh said he uss to be at the Mate House that afternoon and that Taft would undoubtedly tell him all about it; that later he told him Taft invited him int o the pantry and gave him a drink but never referred to the proposed loan; that MacVeagh seemed utterly disheartened and broken down. Andrew said that finally he went to Sen. Aldric h and asked him to inquire about the loan; that he tosally had sympathy for MacTeagh, although they never spdke now; that Sen. Aldric h went to Taft and learned that the loan was being arrang ed by Norton; that Sen. Aldrich protested and as a result, the loan wa4 finally dropped. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4. Andrew, A. Piatt (Contld.) Artilrat said that in spite of this treAment MacVeagh did not resign. Andrew thinks, because he had just completed his new house and did not want to leave Washington. Andrew told, him if he resigned he also would resign. , Andrew said MacVeagh was a very weak man, not fitted for the Treasury; that he was appointed only because a western man was wanted for the position, and. that George M. Reynolds had been offered and had. accepted but that at the last moment his directors had doubled. his salary and he finally declined the position; that MacVeugh was decided. upon only in the twenty-fourt hour in order to complete the Cabinet. Andrew also said that Frank Stearns of Boston told him that while at the White House he had moved his bscl into the President's bedroom as the President liked to talk with him early in the morning before he arose. Andrew said he owed the administration nothing, and that the opposition of Constance Lodge (Mrs. Williams) helped him in his campaign rather than hurt him. He said Sen. Gillette never would be able to oast an independent vote in the Senate as he had been put there solely by Stearns and Sen. Butler. He said neither Stearns nor Butler liked him as he would not take orders fron them. He said. Charles Norton had fixed matters to secure and had secured a position in Baker's bank in NW, York. Andrew was quite liberal in hie references to the League of Nations ard we believe he will come out for it ultimately. He very bitter with the administration for not giving better terms to France; he said he was ashamed of our country's attitude in demanding payment of the pre-armistice debt. was He showed me an interview he proposed to give out on landing on the subject of the French debt and asked what I thought if it. I told him, without expressing any opinion on the merits, it would certainly be regarded as a blow in the face of the administration and that he ought not to publish it without full knowledge that it would be so regarded. Oct. 1, 1925. 15, 16, 17, 18, 19. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Annual report, Federal Reserve Board Dr. Stewart came from New York to discuss his draft of the Board's report which he had not finished before resigning. Miller strongly Objected to certain portions and intimated that he might file a minority report. Miller said discount rates at Nsw York should have been incrsased long ago; he dislikes the reasons given by the Board for not having advanced them. He specially Objected to the statement that increased rate.: might have encouraged further gold imports, evidently not wanting such a good reason to appear in the report. He dsnied that such would have been the effect. C.S.H. reminded him that Gov. Norman said our high call loan rates threatened his gold and made our discount rate inoperative. Dr. Stewart said a discount rata put up to 4% would put a higher base under the call loan rate and tend to keep it up;that it would tend to increase customers rates. Miller said a higher discount rate would reduce call loans and release credit which would lower commercial rates. Dr. Stewart and the Board did not agree with him. •4 , IIJ`f. • ; Miller kept saying, - if you will only change this and that, it will enable you to "get by." Evidently he has a supreme contempt for the rest of the Board. He also inferentially accused Dr. Stewart of taking a particular date for his figures so that his conclusions might be supporte d by the figures, which made Dr. Stewart very indignant, as he afterwards told me. He said he took th3 dates under discussion in the report. C.S.H. believes Miller will not dare file a dissenting report. Mar. 2, 1926. 108, 1C9, 110. Antwerp Drive by auto fram Brussels to Antwerp stopping at Mabgnea where we visited the Cathedral. The carillons were being repaired and were not playing. Called at palaae of CardirAl Mercier. His secretary said he was engaged for the morning, but he showed us the chapel and pictures. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6. Antwerp (Conted.) Arrived at Antwerp about noon and called on Mr. Mitchell of the Red Star Line. He gave us sane mail including a delightful letter from Mrs. Wilson. He said he thought he could give VA abetter roam on the Pittsburgh and gave us an order on the Chief Steward for lunch. Our roam was changed from C24 to B49, - a large comfortable roam but without a bath, - there were very few rooms with bath. Before sailing we went to the Cathedral and saw the Prolnen tomb. We sailed at 4 p.m. The ships Doctor examined me and agreed with Dr. Ruffin that my only trouble was intestinal indigestion. Sept. 23, 1925. 12 Arnold, Mrs. B. W. Mrs. Arnold called an Bertie in Albany same ten days ago, and gave her a typewritten account of a seance in N. Y. last October. It was conducted by John W. Tecknor. She met her friend Edward S. Martin, of "Life" one day when walking with one of the Erving girls, and he asked them to go with him to the Seance. They were not introduced to Mr. Tecknor. About 25 were present, including Robert Underwood Johnson. The medium was "Black Hawk" who fram tire to time would call out names of those present, Eaying that some relative wished to speak with them, whereupon he would deliver the message. During the middle of the slance he called out, - Anna Hamlin: Mrs. Arnold answer yes. Thereupon, he delivered the following message from Anna:"This is more difficult than I thought. I see now why the troubles of getting words back and forth have not been expedited. It is all in the mind, thought moving from one to another, but the fact that a word does come now and then is better than thousands of words of argument. I don't want to give any more." There was no possible waf in which Mr. Tecknor or any one there could ever have known that Mrs. Arnold was a friend of Anna. Mrs. Arnold haa nct mentioned Anna's name while there, and was completely taken by surprise when her rame was announced by Black Hawk. Dec. 5, 1925. 55, 56 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Assembly of League of Nations Dr. Zimmerman says the, will neiver consent to shelving the Protocol. Sept. 13, 1925. 3 Lady Assisi. gives Bartle a ticket for the AsseclIply tcmorrow. Sept. 13, 1925. 4. Attended. meeting of Assembly. Sept. 15, 1925. 5 Assistant Secretary of Treasurys Fiscal See - Andrew, A. Piatt Atkinson, Edward We meet Mr. and Mrs. at lunch. April 18, 1926. 163 Attorney Gen. Gregory Advised Board it had no power to cut down the number of Federal Reserve banks. 90 Attorney Gen. Sargent Mr. Boman, Class B. Director of Federal Reserve Bank of Boston calls on C.S.H. Says the Attorney General is a very old friend and that he came to Washington at the r, cluest of the Board of Directors and. Gov. Harding, to present to the Attorney General this unanimous hope that C.S.H. may be reappointed, End to ask him to urge this upon the President; that Gov. Harding also asked him to say to the Attorney General that at the recent conference of Governors, it was their unanimous opinion that C.S.H. shculd be reappointed. C.S.H. asked him to tell the Attorney General ttatt he had, been an active member of the Grange for 30 years, that he was a farmer and. had worked assiduously for the farmers since he had been on the Board. C.S.H. also suggested that Mr. Borman tell the Attorney General to consult with Sec. Mellon before speaking with the President. April 1, 1926. 139, 140 Ir. Bowman writes C.S.H. as follows:"Springfield, Vt. , Apr. 5, 1926. Just a word. to let you know that I had a most friendly talk with Mr. Sargent al cng the lines we had talked when I called on you at your office on Thursday. I am sure the matter will have his attention within a reason&le A. C. Boman." April 7, 1926. 151 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8 Attorney General Sargent (Contld.) Sen. Glass expresses satisfaction that the Attorney General will take tp the matter at the Whtte House. April 8, 1926. 155 Austria Gov. Norman says Austria will soon adopt a real gold standard in place of the avid •atchange standard. Dec. 31, 1925. 72 -BBagg, Mrs. We dine in Geneva with Mrs. Bagg, the mother of Mrs. Arthur Bullard. Present: David Fairchild, Mr. arld Mrs. Gilbert Grosvenor, aad Mr. Mowser, correspondent :f Chicago News. Sept. 15, 1925. 6 Baker, First National Bank, New York See - Andrew, A. Pitatt Biker, Newton D. Speaks at memorial dinner to Wilson in Washington. Dec. 28, 1925. 70 Calls on us with his daughter. Is shocked at House's book. Mar. 7, 1926. 111 Sands C.S.H. clipping from Cleveland Plain Dealer, advocating May 13, 1926. 187 his reaypointaent. • • • Baker, Ray Stannard Breckenridge Long says haa no objection to C.S.H. urging, to have a talk with him at once. Nov. 18, 1925. 40 C.S.H. advises Mrs. Wilscn to have her counsel go over any agreements she may have entermd into with, as to the Wilson biography. Jan. 5, 1926. 76 Baldwin, Stanley We gave, an official dinnsr when he was in Washington. Jan. 15, 1926. 87 Balfour Breckenridge Long says he knows that Balfour told Wilson of the secret Treaties in May, 1919, at a secret conference at the White Hausa; that be did not know whether Balfour told Lansing or not; that Wilson was in error in saying that he first heard oe these secret treaties abroad in 1919. Nov. 18, 1925. 39 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 9. Bank of England Gov. Strong tells Board that, must soon incr.& se its discount rates to 5%. Dec. 1, 1925. 49, 50 Increase its discount rate to 5%. Dec. 2, 1925. 56. See - Norman Strong Bank of Italy, San Francisco Some of Federal Reserve Board feared that if they granted application to Drum for Mercantile Trust Co. for branches at Burlingame and Palo Alto it would reopen the application of the Bank of Italy. Invntigaticn showed, however, that the Baik of Italy's applic ations were all for de novo branches. Dec. 8, 1925. 60 Banking and Currency Committee, H.R. Miller in testifying before, said that Milo Oampbell and Cunnin gham were the best men ever on the Federal Reserve Board. April 29, 1926. 174 Baruch, B. N. Mrs. Wilson Bays Nancy Lane had asked, to help her obtain a movie engagement. Nov. 15, 1925. 37 Baruch, Miss Mrs. Wilson asks us to dine alone with her as, is giving a dinner at the International Club to members ccnnected with the L. of N. Sept. 16, 1925. 6, 9 2rs. Wilson says she will send "Pa, Ma and Mae" to Miss Baruch to examine. Jan. 13, 1926. 82 Mrs. Wilson said Miss Baruch told her that she gave "Pa, Ma and Mae" to the reader of the Non-Partisan League to read; that she reported that she liked it very much but feared it was too partisan for the League to use it, but would report officially later. Jan. 23, 1926. 94, 95. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10. Basle, Switzerland Left Berne at 5 p.m. reaching Basle at 7:30. Staid at Trots ROSS Hotel. Had very good. room and bath overlooking the Rhine for $6 per day. Left Basle 10 a.m. next morning. Sept. 18, 1925. 10 Bear Garden See - Berne °T; I1 Belgian Debt Cannission See - Belgium : VALI Belgium Phillips sent me in his machine to leave a card on Gov. of National Bank in Brussels. He offered to obtain an official interview but I said I would make only a courtesy call. The Governor's secretary, connected with the Belgian Debt CommissiOn, said the Governor was just leaving to keep al important official engagement, but would be glad. tc see me tomorrow at any time agreeable to me. I explained I was just passing through Brussels en route to Antwerp. At 5 p.m. we took toa with Ambassador and Mrs. Phillips. Sept. 21, 1925. 11, 12 Federal Reserve Board. Belgian agreement. See - Strong, Gov. Gov. Norman explains Belgian Financial situation; said it was caused by Belgium's taking over the francs issued by Germany during the occupation. Dec. 31, 1926. 72 Board gives Gov. Strong authority to buy 15 millions of bills from National Bank of Belgium. Mar. 8, 1926. 111 Bermuda Anna leaves Washington an route to Bermuda. The last time we e'en* saw her - alive. Thur sday, Feb. 18, 1926. 207 Berne, Switzerlarx1 Left Geneva 11 a.m. aid reached Berne at 3 p.m. Drove to Swiss National Bank and. called on the Vice President , Mr. Schreider. Called on Amer. Minister, Mr. Gibson, but he Was away. Fed the bears in the bear garden. Left for Basle at 5 p.m. Drove around the city. Sept. 18, 1925. 9, 10 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 11. Biddle, Mies Took Christmas lunch with. Dec. 25, 1925. 70 Blemerhasset, Lady We meet, ciining with Sir Herbert and Lady Asser. Sept. 15, 1925. 6 Bolling, Bertha We cirive with Mrs. Wilson ani Mar. 8, 1926. 1 11 Boiling, John Randolph Calls me up to tell of death of his mother. Nov. 21, 1925. 42 Boiling, Mrs. Death of. Funeral at Wytheville, Va. Nov. 23, 1925 . Oid4( . IA:0E;4tirPzi Nov. 21, 1925. 42 Borah, Sen. Lawrence Evans tells C.S.H. that Mr. Call , Publisher of a paper, told hist. that Sen. Borah told him that Coolidge said to him (Borah) that he felt the U.S. should stee r clear of the World Court but that he pressure was so great he could not withstand it. Cet. 13, 1925. 23 Boman, A. C. Gov. Harding writes that, is ready to write Attorney General Sargent to see Mellon any time C.S.H. wish es. &y?, 1926 180 * See - Attornet General Sargent r". Branch banks John Drum asked Board to reconsid er its refusal to approve brawlers of the Mercantile Trust Co. bought by its subsidiary at BurlingsrLe and Palo Llto,Cal. Board orginally declined the appl ication, and. Federal Reserve Agent Perrin recommended refusal solely on grcunci that they were beyond the area cf San Francisco, as defined by the Board as contigu.ous territory. The Committee on Examinations, Platt and James, suggested that we consider the adirisability of exte nding the definition of contiguous territory so as to take in these towns, consulting with the Federal Reserve bank and the State Superintendent of Banking. Miller objected to extending the area. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Branch batiks (Cont id.) Miller claimed, however, that the application should be granted. because Drum originally included. these tams in a blanket petition filed before the expiration of the time limit originally set by the Board for places outside of the defined, area, within which time branches could be established outside of such area; that the Board informed Drum that it would not act on blanket petitions; that at the time of filing thi s blanket petit ion Drum had practically acqnired these banks; that in equity Drum had. complied with the Board's regulation as the petition was nct a blanket petition as to these two banks, as tne petition as to these banks did not ask for future branches to be later acqui red but related. to already acquired branches; that later, after the time limit had expired, Drum filed another petition speci fically limited to these banks; that in equity and good consc ience Drum had complied with the regulations. C.S.H. said he agreed with this; that the Board recog nised the equity when it originally refused the petition and would havA granted it but for fear that it would have reopened appli cations of the Bank of Italy; that the latter's applications, howev er, covered wholly de novo 'ranches. Comptroller of Currency McIntosh said that grant ing this petition would . give Drum a monopoly and cut out other banks which would now like to establish branches, but had filed no appli cation within the time limits, as Drum and. the Bank of Italy had. done. C.S.H. said these other banks had filed no petit ion within the time limit Lbs Drum and the Bank of Italy had done, and therefore could not complain. C.S.H. said, however, he, oath° favoring grant ing of this petition, woubd be glad to take care of these other banks by extending the area, as these two tcins were claw ly within the greater municipality of San FrEncisoo, and that he preferred to do it this way. James also agreed. ds to the extension and with views of Comptroller of Currency. Miller finally moved approval of the petition, reconsidering its original refusal, on the ground that Drum had mibstantially complied with the Board's regulations; that he had come before the Board with clean hands. Carrick: Aye- Gov. Crissinger, Hiller, rlatt, C.S.H. No McInttsh, James, Cunningham. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 13. Branch banks (Cont'd.) The Examination Committee wits then directed to consider and. report on extending its definition of contigu.oue territory to ecnItrace this new area, - End to consult State Superintendent of Banking and Federal Reserve bank. Curried: All voted Aye except Cunningham, Aho voted No. Dec. 8, 1925. 59, 60, 61, 62. Board considered proposed salary of $18000 for manager of Buffalo branch. Board rejected $18000 ani substituted $15,000. C.S.H. alone voted No and James did not vote. C.S.H. begged the Board to ask Gov. Strong to explain the salary,hear the evidence before deciding the question. Coe Member said jocosely - lets vote first ard take the evidence later, - which the Board proceeded to do. C.S.H. said frankly the amount seemed excessive bat that he should • like to hear the evidence before deciding it. He therefore voted No. Dec. 15, 1925. 63 ) Board. gives hearing on proposed. branch of Federal Rel-erve Bank of Richmond in South West part of District. Jan. 15, 1926. 86 Board. voted to permit the Valley Bank of tresno, Calif, to take over a bank in Prescott, 50 miles &Way, and opeiste it as a branch. The Federal Reserve Bank and. the State Euperintendint both favored it. we found that the Board had. not imposed as a conditicn of admitting the Valley Bank that it should establish no 1:r anches without the consent of the Board.; that the only condition imposed. was as to change of assets affecting the bank's condition. All agreed that taking over this branch would not injuriously affect the conditim of the Valley Bank. Even Cunningham agreed to this, but he had left the Board room when the vote was taken. Carried: Aye - Gov. Crissinger, Platt, Miller, C.S.H. No - James. James persisted in votirg No in spite of the above facts. April 6, 1926. 146 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 14. Brassour Hotel, Luxemburg Spent night at. Sept. 20, 1925. 10 Briand C.S.H. sends :,1rs. Wilson a note quoting Briand's statement that the Council of the League of Nations dedicated the happy ending of the Greco-Bulgarian dispute to the memory of Woodrow Wilson who conceived and realized the L. of N. 46, 47 Nov. 26, 1925. British delegation to L. of N. Dr. Shotwell says the, except Lord Cecil, had little sympathy for the L. of N. except in so far as they could dominate it; that they were opposed to any present corsideration of disarmament plans, although the other mttions wanted immediate consideration; that very likely they might have to yield in part, but this would be unwillingly. Sept. 17, 1925. 7 BritLsh - French - German pact Shotwell says may soon be agreed upon. Sept. 17, 1925. 8 Brokers loans See - Federal Reserve Board N. Y. Stock Exchange Bruce, Mrs. Senator Takes H.P.H. to opening of World Court debitte and later to lunch. Dec. 18, 1925. 64 Tells H.P.H. Sen. Pepper once told her he was not a, Prohibitionist and did not believe in it but that it was good politics for him to be dry in Washington. April 10, 1926. 156 Writes Bertie acknowledging his letter of congratulations in her son's engagement to Mica, Mellon and adds: "Cabell tells me that Sen. Glass says that the President is going to reappoint Mr. Hamlin and Cabell tells me tonight that he (Cabell) is going to see the Secretary of the TreaAiry about it." May?, 1926. 180 C.S.H. believes, from above letter, that Sec. Mellon must have told Glass in confidence that it was settled. May 8, 1926. 182 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 15. Bruce, Sen. Calls on us with Mrs. Bruce. Said Pepper was a very agreeable man but had no convictions; that he was evasive and shifty and not honest intellectually. Dec. 17, 1925. 64 We dine with Sen. and Mrs. Bruce. He asked when my term expirel and felt sure I would be reappointed as a matter of course. He said he was at my command if he help. I suggested that he confer with Sen. Glass which he said he would do at once. He said he was on very cordial terms with Coolidge He also said he would guarantee that he could get every Democratic Sonatas to g0 with him to the Whit e House to ask tor my reappointment. He said again that Sen. Pepper was shifty, evasive, and intellectually . dishonest; that he had. made a total failure in the Senate. He feels that Pepper can not be renominated. He said Sen. Reed (Pa.) was a good lawyer but p6litically somewhat evasive. He implied that Pa. politics were injuring him in his character. April 10, 1926. 156 C.S.H. writes Sen. Glass about his talk with Sen. Bruce, suggesti ng that if Bruce were to see Mellon and later the President it might be helpful. April 11, 1926. 157 Sen. Bruce writes C.S.H. as follows: "Dear Mr. Hamlin: I saw the President yesterday and had a pleasant interview with him. The first question that he asked. me was 'Hex is his health? ' I replied tka t I bad. no reason to believe that -,rour health was at all impaired, and that I had. seen you only a day or so before. Any inapression that your health was not good might be due, I suggested, to the fact that you had for scme time been courting a larger deErree of retirement than usual because of the danestic affliction vthich had befallen you. I also told him that Carter Glass was very desirou s that you should be reappointed." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 16. Bruce, Sen. (Cont'd.) "At this he pricked up his ears and said, Is Carter Glass for - exhibiting a decidedly quickened interest. "I told him that Glass certainly was, because I had a conversation with him about you only a few days before. This morning I suggested to 4Flass that he had better see the President just as soon as possible, and he said that he would. Truly yaws, William Cabal Bruce." April 16, 1926. 160 , 161 Glass tella C.S.H. over telephone that he has had a talk with Sen. Bruce and will see the President t4ay or early next week. April 17, 1926. 161 C.S.H. writes Sen. Bruce telling him of his neurities and extracted teeth. April 17, 1926. 162 C.S.H. writes Gov. Harding as to Sen. Bruce. April 25, 1926. 171 C.S.H. tells Mrs. Wilson as to Sen. Bruce, April 26, 1926. 172 Glass says he saw President Coolidge and he inquired after my health just as he did to Sen. Bruce. April 28, 1926. 173 Gov. Harding writes C.S.H. to have Sen. Bruce see Mellon at once, as Bruce has supported Mellon's policies. May 7, 1926. 179 H.P.H. receives letter from Mrs. Bruce saying that Cabell had told her son. Glass had told him that Coolidge would reappoint C.S.H. and that Cabell was to see Sec. Mellbn this evening. May 7, 1926. 160 C.S.H. writes Gov. Harding that Sen. Bruce has seen Sec. Mellon and Coolidge and feels very hopeful. May 7, 1926. 161 Brussels See - Belgium Bryan, W. J. Mrs. Burleson tells Bertie that Bryan's friendship with Col House arose through Col. House's cousins, the Moody. Feb. 8, 1926. 104 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 17. Bryan, W. J. (Contid.) Willis &y a draft of the proposed Federal Reservs Act was drawn in June (a fourth draft) 1913 incorporating Bryan's suggestions. April 4, 1926. 150 • 4 42 4 44 • Buffalo branch bank See - Branch banks 4 3 Bullard, Arthur We call on Mr. and Mrs. Bullard in Geneva. Sept. 16, 1925. 6 I: • We meet Mr. and mtg. Bullard at dinner at Mrs. Haggis, his mother. Sept. 16, 1925. 6 " .!: Bullard, Gen. Ro'rert Lee. r. See • • • • Andrew, A. Piatt Burleson, Mrs. Tells Bertie at Woman's Democratic Club that Roper had reminded her that Col. House had been an ardent supporter of Gov. Harmon of Ohio for President in 1912, and that she now remembered perfectly hearing her father and. Col. House and a Mr. Kenniscn •talking on her father' s piazza; that her father urged. Wilson 411 the legitimate candidate but that House and Kennison balked Harmon. • • • 13, 14 .• :Is.' • fT117.414 She also said Bryan's friendship for House ;ace through the Moody's, c ousins of Col. House. Feb. 8, 1926. 104 riot, Burlingame, Calif. See - Branch banks recesaion Gov. Strong says business recession has started in all over the country; that no one can tell now whether it will contin ue; that he knew of one company in N. Y. which estimated a 20% increase in trade and placed their orders accordingly, found that the real increase during a given period was only $%; that we must be prepared to cope with it if it continued; that if it continued on increase we should ease up the situation by further investments in Govt. securities. Mar. 20, 1926. 125, 126 BUTA11638 • • • • • • • • • • Gov. Strong referred- to the recession of busines s. Said that N.Y. City banks were rediscounting heavily, - 142 millions; that this tended to a pressure for liquidation of customers loans; that conditions in Europe looked bad; that he feared a sullen increase in business recession; that we should buy Govt. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 18. Business recession (Contid.) securities to ease the money market; that this money would return in shape of paid off rediscounts, thus giving greater facility for enlarging customers loans. -.41.44,1Ai714.1d He also said that reducing discount rates would only make it easier for member banks to carry their rediscounts; that it ASO the unanimous opinion of the Open Market Committee that permission should beviven, in case of any emergency, to ease the money market by buying, between now and April 15, not to exceed 90 millions of Goverment securities in addition to replacing the 60 millions maturing March 15. Mar. 24, 1926. 127, 128. I Air, • i Miller said the talk about tusin3ss depression was all rot, and that the real motive was to help the stock market. Irn t• C.S.H. said he feared a sudden increase in the buiiness recession; that European canditionsmight become worse at any moment, and turn the present recession into a real business reaction. Mar. 24, 1926. 129 - • •N- Gov. Crissinger gives out an interview in which he speaks of the business recession although the interview was generally ' optimistic. Mar. 30, 1926. 139 Butler, Nicholas Murray Dr. Shotwell hopes, All now push the L. of N.; that he and Pritchett practically dominate the executive committee of the ,Carnegie Board. Sept. 17, 1925. 8 va Writes C.S.H. he wants appropriation for the American Committee at Geneva increased to $10,000 for nest sumer; also an appropriatio n of $50,000 for sending American teachers abroad to study the L. of N. Asks C.S.H., as he can not attend meeting, to wire his approval. C.S.H. wires full approval based on two weeks study of conditions in Geneva. Dec. 4, 1925. 54 Delano told Bertie that Butler got through all the appropriations he wanted at the Carnegie meeting; thwt Butler had written eminent men all over Europe asking maggesticns and criticism; that all replied eulogistically except Ramsey MacDona ld who severely criticised the work of the Carnegie Board, saying it had spent $750,000 for no practical purpose; that some of the trustees were indignant at this but Delano said he agreed with MacDonald and that he felt the only practical work the Carnegie Board had done was the appropriation of $4000 for the American Committee last year. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 19. SI Butler, Nicholas Murray (Cant sd.) Butler said he absolutely w reed to this, sad that if the Carnegie Board could not now take up and help the work- of the L. of N., the only practical movement for peace, in which 55 nations had joined, - there was no further use for it to exist. Dec. 5, 1925. 57,58 Butler tells the Carnegie Board that the L. of N. had Cut down its budget and that Miss Wilson had had to drop one of her ,best emplcy3es from the Library roll of the L. of N and might soon go herself; that he would be only too Llad to make her Librarian of Columbia Untveraity. C.S.H. asked if he could mrite Ishii of this, expre:;sing his deep regret, and Butler za id yes. April 16, 1926. 160 . . Butler, Sen. Andrew sa:/b. Butler and Stearns gave Gillette his place in the Senate and that he never could be depend' upon for an independent Oct. 1, 1925. 19 vote. Anarew says Butler and Stearns dislike him as he vill not take orders Oct. 1, 1925. 19 from them. Federal Reserve Agent Curtiss Gaya Butler will go into the Cabinet. Oct. 13, 1925. 23 • Sen. Andreas Jones told C.S.H. that Butler came. into the Senate feeling that ha was the leader by virtue of his position as chairman of the Repub. Natl. Committee; that he calmly picked out Sen. amoot's seat to appropriate it as his own, tat that he soon learned his Dec. 2C., 1925. 64 place. • • • • • • John F. Fitzgerald told Gov. Harding that he had ju.t had an hour 's talk wi th Sen. Butler; that Butler aSked him wham the Democrats would nominate for Governor; that he replied that C.S.H. would be if not reappcinted on the Federal Reserve Board; that Butler evidently did not relish this, for he at once said that C.F;.H. had made an excellent menber and that he was strongly in favor of his Jan. 6, 1926. 74, 75. reappointment. C.S. H. suggests to Gov. Harding that his directors, if they wished him reappointed, shculd take up the mat ter with Butler, Mellon , and the President. Jan. 6, 1926. 75 Wash. Star has an article by David Lawrence stating that Coolidge had just designated M'arvi n as chairman of the Tariff Commission; that he wanted to designate Dennis, a Demccrat, but an old friend of his; that the Mass, Republicans said. it was vitally necessary to http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 20. Butler, Nichelas Murray (Canticle) to debiEnate Marvin; that Sen. Butler urgently pressed Marvin; that it would help Butler in his Senatorial campaign and that it would be difficult enough to elect Butler in any event; that Coolidge yielded to please Butler. Jan. 18, 1926. 92 Gov. Harding tells Platt, In Boston, of Fitzgerald's talk with San. Butler. Feb. 15, 1926. 106 Sen. Glass. tells 0.5.H. he wants to have a frank talk with Sen. Butler, of course gave. with his consent, which . . . Glass said he was fearful that Butler would want the place given to some Republican politician. C.S.H. explained the political situation in Mass; that Walsh was opposed by the Wilson democrats, other-rise he wculd have dsfeated Gillette: that Butler's only hope, of election rested on these Wilson..,emocrats; that if C S.H. were to take part in the campaign, he could, if he were so disposed, persuade these Wilson demacrats to support Walsh, which mould certainly imperil Butler's chance of success; that Butler undoubtedly realized this, and C.S.H. thought he would prefer to have C.S.H. remain quietly in Wadlington. Glass said he felt Butler must look on it in this way. , Glass said he woula tell Butler C.S.H.'s name should be sent in at once, so he could be ecnfirmed before Congress adjournnd. April 3, 1926. 141 , 142 . . . Sen. Glass calls an C.S.H. and says he will speak to Butler tomorrow. April 4, 1926. 148 Sen. Glass writes C.S.H.: "I heve talked with both San. Butler and Sen. Metcalf. The former staed that he ha:1 heard that there had been soule discussion at the White House of the al-Tointaant and had also heard that you would, and avain, that you -ould not be selJcted; that Butler added, "No importance should be attached to the latter report." He did not explicitly state his an position, but invited my opinion of your qualifications and usefulness, Which I save unmietakably April 8, 1926. 155 See - Glass Gov. Harding tells C."). in Wa hington that •n his return to Boston he would ask Wing to wire Sen. Butler that it was imperative tl.at C.S.N. be reappointed at once. April 30, 1926. 176 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 21. Butler, TTichlas Murray (Cont Id.) Gov. Harding tells C.F. H. he will ask Wing to wire Butler that it is imperative for C.S.H. to be reappointed at once. April 30, 1926. 176 Gov. Harding writes that Curtiss has seen wing who said be useless for him to .ire Butler as Butler had told Mellon would control the arpointment and that he had. from Pa. in mini; that he would have no control over May 7, 1926. 179 it '7o1.1.1d him that scree man the matter. Maloney, of the Federal Trust Ccrnpany, tells Gov. Cri ssinger he flare Butler may have some Pepublicarn politician in mini for May 12, 1926. 187 for C.S.H.Is place. Gov. Harding tells C.. H. that Butler told varg that the appointment hi been tzken out of his hand3 to his greet relief as he lid not want to disapToint the Repub. politicians nor C.F.H.is friends. May 17, 1920. 190 • C.S.H. tells Gov. Crissinr er and Comptroller in confidence that discontinuing the Cuban Agency of Federel Reserve Bank. of Bo8tcn might raise ,00litical questions which might injure Butler in hiL campaign for Senator. May 17, 1926. 19C Byrnes , Cc r. Sea - Whalley. Cafeteria, Feder31 Retlerve bank:: Board approved absorption by Federal Reerve banks of 1/3 of expense of. Miller alone voted No, swing tl-e employees did. not like to eat in cafeterias ae they looked on them as a kind, of charity! April 6, 1926. 154 Campbell, Milo Mill ir, before Banking and Currency Ccomit tee describes death of. Said he waa one of ablest men ever on Federal Reserve Board. April 29, 1926. 175 Cailloux Richard 01noy tells C.S.H. that :k.lellon made an ageernent with Callioux e to the French debt, gcrat that the Republicans en the Debt Corn:T.1881m refused to agree to it: Nov. 7, 1925. 34 4 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 22. ... Calkins, Gov. conflict between Gov. Calkirs and Miller tells Board that Feral lies.erve Agent Perrin ha:, practically subsided. Dec. 3, 1925. 52 Call loan rates Gov. Norman tells 'Federal Ros. r ve Boarci that the high call loan rates ut New York e:ta.ie our discount rate negligible and seriously affected Great Britain in its efforts to conserve its gold Dec. 31, 1925. 72 holding a. . Norman told Miller the call loan rates made the New York aiscaint negligible end that he could not understand Vily the New York discount rate had not long a€: o been increased. Jan. 13, 1926. Etl, 82. See - Fect.eral Advisory Council Federal Pear ve Bank, New York Alexander Mill r :4.. 2'..i See - Coolidge, Pr. Campbell, Dep. Gov. Fecieral Re9lifirV4 Bank of Atlanta See - Cuban Agency Carillons We stoEped at LIalisnee en route froth Brussel.; to Antmerp to hear the Carillons at the Cathedral but they were being repaired and were not ringing. Sept. 23, 1925. 12 Carnegie EndC14ifilent Board Dr. Shotwell tells that Root and Janes Brown Scott tried to have executive Comittee hold the $4000 appropriation for the American Committee at Geneva, but finally abandoned the atte,apt. Sept. 17, 1925. 6 Nicholas Murray Butler writes C.S.II. to •,,ir 3 his apir oval, as he can not come to the meeting, of an apprcr.riatior, of $1000 for the American CcciLlittee at Geneva, (And $50,000 for sending teachers abroad. to study the League of Nations. C.S.H. wired approval, based on two weeks study of the matter when in Geneva. Dec. 4, 1925. 54 • -7 Delano tells C.S.H. that the Board vroted the above appropriaticne. Dec. 5, 1925. 57 23. i Carnegie Endowment Board (Contld.) Delano tells K.P.H. there was nocprosition to above approlriations and that Butler handled the matter admirably. Dec. 5, 1c125. 57 Delano told H.P.H. that Butler had written eminent man all over the world asking far suggazAions and criticism of the Board's peace work; that most of the replies were eulogistic, but that Raaaey MacDonald oriticiseed the Board severely, saying it had spent $750,000 for no practical purpose; that some of the trustees were very indignant, but that he said he agreed with MacDonald; that the only practical thing the Board had aver done was to pass the $4000 appropriation for the American Cormittee at Geneva, urged by C.S.H.; that Butler said he absolutely agreed tc this, and that if the Board could ncbt help the L. of N., - the only practical work for Peace, in vilich 55 nations were interestod,there was no further reason for tts existence. Dec. 5, 1925. 57, 4 • r c •' http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e Bertie aaked Delano whether James Brown Scott objected to the above appropriations, and he replied, “No. Be knows his new Master's voice!" Dec. 5, 1925. 58 Mrs. Wilson 10.11s up C.S.H. at the Treasury and says James Brown Scott has just sent her the Wilson resolution of the Board voted an April 16, 1925. 1 ' 7:41-• Some days ago, learning frou Ara. Wilson that she had never received it, C.S.H. called up Scott's office to enquire and the above was the result. Mrs. Wilson read me her prol)osed reply which C.S.H. approved. Had it not been for 0..H.'s enquiry, probably Scott, with hia well known hatred of Valson, would never have sent it. Jan. 20, 1926. 91 • • • James Brown Scott writes C.S.H. enclosing reply of Vrs. Wilson to his letter sending her the Wilson resolution. The resolution was voted April 16, 1925, aria. Scott did not send it until Jan. 19, 19261. Jan. 20, 1926. 93, 94 C.S.H. lunchis with David Jayne Hill and prepares a report favoring six candidates for trustee out of about 25 names sent in. C.S.H., Hill and Dr. Pritchett were Appcittad a committee by Er. Butler. Pritchett was in Tnrope. Hill joined with C.3.H. in recommending Jesse Jones of Houston, Texas, as one of the six. . Feb. 15, 1926. 108 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 24. Carnegie Endowment Board (Contld.) Meeting of Board at Washington. Four trustees were elected to fill six vacancies. Neither Jesse Janie, c3V. yaul Revere Frothingham, Louis Frothingham, Norman Davis, nor Judge Clark , - all proposed by C.S.H., ware ellcted. Jesse Jones was put on the preferred list by the Committee and I think would have been elected but for the fact that Mr. Parker of the Get -American Claims Car,...isaion, also from Houston, was nominaed, and, ae he lived in Washington :ind could amp attend meetings, and was a very valuable man, the Boara elected him, and, raturally, dii not take Jones, also from Texas. April 16, 1926. 159 the work being Thera was a long discussion in the mleting done by Pan Ambrican Jurists in making a code of internaticnal law. Scott read and advocated a rdsolution drawn by Root some years ago, calling for a reconvening of the Hague Conference to make such a code. Scott said. the poNirful nations in the L. of N. did not wart to be governed by law but by men, - r thsmselvec; that they rejected tion Root's resolution at the time fAnd that intended to delay in frAming a code. Root said it was not necessary to pass this resolution and he drew one approving the Pan American work towards codification which was passed:. We agreed to this as a means of bringing pressure upon the L. of Y. Root said ultimately all must join in a cor.r.on endeavor to secure such a code. April 16, 1926. 159, 160 • •• Butler, at the meeting, said the L. of N. had cut down the budget for the Library in charge of Miss Wilson, and. that she had had to drop one of her best employees and might herself resign later. He said her work was wonderful; that the European natl.= did not appreciate the value of Librariee as we lid; that he would be only too glad to make Mtes Wilson Librarian of Columbia University. C.S.H. said he haa been in the Library every day While in Geneva; that it was a wonderful library, a monument of efficiency. C.S.H. believes the trustees would have been only too glad to have made up the deficit, but this, of course, was out of the question. He asked Butler if he could write Viscount Ishii and express his den regret and Butler said most certainly he http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 25. Carnegie Ella onuent Board (Cont Id.) could and, hoped he would. April 16, 1926. 160 The Board lunched at the Met. Club. April 16, 1926. 160 C.S.H. tells Paul Revere Fr othingham 'XI I Louis Fr0thiligham he had no:Unated thlra for the Bo,..Ard and they were much pleased. April 18, 1926. 163 Carnegie, Mrs. Andrew C.S.H. called on Mrs. Carnegie in Geneva. She said the L. of N. had wonderfully impressed her; th.t she wished her husband were alive; that he would have pushed it with all his energy. She begged. C.S.H. to come and. see her in N. Y. Sept. 17, 1925. 8, 9Cathedral of St. Peter, Galeva We heard Dr. Fosdick d.e1iv3r a very impressive sermon. He said he was mortified. that his country .vaa not a member of the L. cf N. (See scrap book) Sept. 13, 1925. 3 Cacti, Lord The feelirg in Geneva is that if Lord Cecil vere Minister of Foreign Affairs he would have accepted the Protocol in principle, at least, with perhaps the right to suggest reservations. Sept. 13, 1925. 4 Mr. J. G. McDorala invites C.S.H. to a dinner given by the Corrmittee on International Relatiens to Lord and Lady Cecil, but C.S.H. could not accept as he was dining with Mrs. Bogg. Sept. 15, 1925. 5, 6. Dr. Shotwell says Lord Cecil is the only member of the British delegation really in sympathy with the Leue; that the others wished to deninate it and. were opposed to present consideration of d.itiarmaizent plan: which all the other nations favored; that perhaps they might have to yi ad but would. be frora no sympathy on their part. Dr. Shotrilell also said Lord Cecil haa no irtluence with his delegation. Sept. 17, 1925. 7, 8 C.S.H. sends Pre-:lc:Lent Coolidge an abstract of Lord Cecil's and Chamberkin's address before the International Club on the World Court, Sept. 7, 1925. Nov. 24, 1925. 43 (See Er rap bock) http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ' • Chairman of Federal Reserve Bank Mr. Sproule, director of the Federal Reserve Bank of San Francisco talked with the Federal Reserve Board aa to the respective authority of Chairman and Goverrcr cf the Federal Reserles Bank. He said the San Francisco airectora considered that Perrn's job was limited to presiding at meetings of the directors. r;,• He felt the Chairman should be the preponderant influence in the bank and should be consulted on all questions of policy. .14 • . • He said Perrin's resignation squarely raied the issue which the Federal Reserve Board must decide. He agreed to aend Board a memorandum giving his views in detail. (See scrap book) Nov. 19, 1925. 41 Chamberlain, Austin At lunch with Mr. and Mrs. Arthur Sweetear. Several delegates to L. of N. "Pere there, also Dr. Zimmern who lectures every morning an the progress of the L. of N. All were bitter against Chamberlain saying he wished to shelve the League. Sept. 13, 1925. 4 C.S.H. sands President Cooliare an abstract of the aldress uf Chamberlain before the International Club in Geneva on the World Court, Sept. 7, 1925. (See scrap book) Nov. 2b, 1925. 43 Cherbourg we arrived at Cherbourg about 7:30 p.m. an the Pittsburg. Andrew came dbnard. Sept. 24, 1925. 13 Christie, Dr. 53, 54, 56 See -Xrays China See - Ishii Chu, Mr. Addresses International Club, Geneva snot. 15, 1925. 5 Congressman http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 27. Cleveland, Hrs. Grover Harry 'Ducker tells C. S.II. that, about 18 months before W11 sc n was first nominated. be was visiting Gen. Greely in N. H., and Mrs. Cleveland came to lunch; that he praised Wilson and, Mrs. Cleveland said the could not vote for him as her husband said he was intellectually dishonest. Tucker also said ha met her again in California in 1919, and tbat she told him there was absolutely nothing in the Peck letters discreditable to Wili;cn, - that ha always was interested in bright women. Jan. 24, 1926. 95, 96. Cleveland Plain Dealer Sea. Baker sends C.S.H. a clipping from, strongly urging his May 13, 1926. 187 reappointment. Codification of International Law. 159 , 160 See - Carnegie Board. Collin., Deputy Corsi)troller Tells Federal Reserve Senate Coumittaa at a preliminary of Currency Board the Comptroller is agreeable to the compromise on the McFadden bill. This was conference in the morning. The Bourd. approved the bill in the afternoon when neither Collins nor the Comptrolly VVILII present. April 23, 1926. 169 Commercial and Financial Chronicle Gov. Strong says that Miller, W1411s, and, are leagued. together for radical deflation. April 13, 1926.159 Commodities, Speculation in Gov. Strong says, is in evidence. Oct. 27, 1925. 30 Contiguous territory 59, 60, 61, 62 See - Branch banks Couiptroller of Currency Opposes granting of applixation of Mercantile Trust Company for branches at Burlingame and. Palo Alto, Calif., as it eive a monopoly to Marc. Trust Co. and debar other banks which might like to establish branches there, but which had not filed apli ticns within the time limit fixed by the Board. Dec. 8, 1925. 61 Favors, hover, extending the definition of contiguous territory so ae to take in theie towns. Dec. 8, 19"-.).5. 61 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 28. Comptroller of Currency (Cont Id.) Votes against application. Dec. 8, 192b, 62 Votes in favor of examination and report by Examination Committee as to extending area of contiguous territory. Dec. 8, 1925. 62 Votes to permit Open Market Investment Committee to purchae 15 ot 20 million; of Govt. s,wurities to call money market US member banks did not want to increase their rediscounts pending the Couptrolleris call. Dec. 22, 1925. 68 Votsa against Dr. Miller's motion to amend Federal Reserve Act and abolish 15 day collateral notes of member banks. Jan. 13, 1926. 80 e 714 Vot3s in favor at' proposed amendment to Federal Reserve Act permitting metzbar banks to give direct notes to Federal Reserve banks, up to 90 days, secured. by eligible paper other than Govt. bonds. Jan. 13, 1926. 81 Votes against permitting Federal Reserve Agent Jay to give oat New York figures of loans on stock exchange collateral tomorrow in etead of waiting until next week for the Board's figuree which would. be a ,veek late. Feb. 6, 1926. 99 • Votes in favor of C.S.H. motion to lay C n table Dr. Miller's proposed. letter to Federal Advisory Council asking advice and assistance in controlling or wiping out loans on stock exchange collateral based on 11 3:3 of Federal Reserve credit. Mar. 11, 1926. 122 • At a preliminary meeting of the Board in the morning, Dept. Caaptroller Collins told the 4oard that the Controller was agreeable to the Senate Ccunit tee ranpranise on the McFadd.en bill. In the afternoon the Board voted to ap7;rove it, neitir Collins r.or the Comptroller being present. April 23, 1926. 169 Tells C.S.H. he hact yesterday a long talk with Sec. Mellon about Federal Reslrve Beard matters which disturbed him (Sec. M.) greatly; that Sec. M. spoke of C.S.H. very appreciatively and said he hat always found him helpful and cooperative; that he asked him if he did not bens ye he should be reappointed. The Co:nptroller said he told Mellon he f31t strongly that C.S.H. should be reappointed; that he via very independent in voting, but always fair and courteous and helpful; that he believed every http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 29. Comptroller of the Currency (Cont'd.) member of the Board liked ana re:pected him and. would be greatly pleased at his reappointment. • He added that Mellon said he considered C.F.H. as a close friend; that he wow greatly attached to Ann& who was one of Ailsais 4eare3t friends; that if there were no other reason his close friendship for C.S.H. and his affection for Anna would male it impossible for him to rccramend inyons else. May 11, 1926. 185, 166. Tells C.S.H. that Sea. Mellon is much aisturbed over scme of Miller's suggestions as to changes in the Federal Reserve Act before the Banking and. Currency Committee, so as to prohibit a bank having .p,culative loam from obtaining rediscount:. May 14, 1926. 18e Says Sec. Mellon told him he mad e a mistake two ylars ago in recommending Miller for reappointment. Ma:,' 14, 1926. 186 Tells C.S.H. that Sec.liellon has no use for Platt. May 14, 1926. 188 C.S.H. tells Comptroller of James' plan to discontinue the Boston Cuban Agency, Aho said he would. vote against it, as he had no confidence in the Federal Reserve Bank of Atlanta as now managed. Ma:, 17, 1926. 189, 190. C.S.H. tells Comptroller in confide= e that, even if all agreed to aiscontinuance of the Boston Agency, this was not the time to do it, as it would be injected into the political campaign in Massachusetts and perhaps imperil.Butler's chance of reelection. May 17, 1926. 190 James in reply to a cLueation of, admitted that Bostcn was entitled to he heard before it s Cuban k-ency should be discontinued. May 20, 26. 197 .. • Coolidge, :Ire. Calvin Senda rememberances to Bertie at White House New Year's reception. Jan. 1, 1926. 72 Coolidge, President Cong. Andrews said. Frank Stearns told him that when visiting at the White House he had his bed moved into Coolidge's bed room, as Coolidge liked to talk with him early in the mem'ng before getting up. Oct. 1, 1925. 18 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Coolidge, President (Cont'd.) Lawrence Evans tells C.S.H. that a Mr. Call, proprietor cf a newspaper, told him that Sen. Borah had said to him (Call) that Coolidge had told him (Borah) that he (Coolidge) felt that the U. S. should steer clear of the World Court, but that the pressure upon him was ao gre.,It he could not withstand it I Oct. 13, 1925. 23 C.S.H. sends Coolidge an abstract of the addresses of Lord Cecil and Mr. Chamberlain on the World Court, delivered before International Club on Sert. 7, 1925. (See scrap hlodk) Nov. 25, 1925. 43 Very cordial to C..H. a: Whit e House New Year's reception. Jan. 1, 1926. 72 -ile tolls Evans that Coolidge knew more about WI-at the people were thinking than any other President; that his only policy was to put his eAr to the ground, find out what the people wanted and then proceed to carry it cut. Wile also said he believed that Coolidge was getting ready to accept the L. of N.; that Coolidge saw evidences of a wive of public opinion for it; that he was about satisfied that in opposing it he had put his money • on the Wr Orig hOr se. Jan. 1, 1926. 72, 73 David Lawrence says Coolidge wished to designate hie friend Dennis, a Democrat, as chairman of the Tariff Com .ission, but that the Republicane wanted Marvin, and Sen. Butler urged Marvin as a help to him in his Senatorial campaign and that Coolidue yielded to help Butler, Whom, Lawrence added, it will be difficult enough to elect anyway. Jan. 18, 1926. 92 Mr. Bowman, Class 3 Director of the Federal ReElrve Dan.' of Boston, comeg down to Washington to -.ell Attorney Gan. Sargent that it i3 the unanimouz feeling of the Directors that C.S.H. should be reappointed, and to ask him to urge this upcn Coolidge. April 1, 1926. 139, 140 Sen. Bruce tells C.S.H. he is on very friendly terms with Coolidge and will call and ask for C.S.H.Is reapprintment. He said he would guarantee that he could get every Democratic Senator to go with him to Coolidge aid make this reguest. April 10, 1926. 156 C.S.H. .iuggests to Glass that he write or call on Coolidge. April 11, 1926. 157 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 31. Coolidge, ?re3ident (Contid.) Glass viten C.S.H. that he Load sen. Bruce will each call on Coolidge. April 13, 1926. 157 C.S.H. writes Bruce to remind Coolidge that he i the omner of a farm and has 'eaen a member of the Grange for 30 years. April 13, 1926. 157 ... Sen. Bruce writes C.S.H. as to his interview with Coolidge. See - Bruce, San. April 16, 1926. 160, 161 Glass tells C.S.H. he will see Coolidge today or early next week. April 17, 1926. 161 Glass writes C.S.H. as to his interview -rith Coclidge. See - Glass. April 28, 1926. 173 Gov. Harding says on return to Boston he will ,sk Wing to wire Sen. Butler to tell Coolidge it is very important that he reappoint C.S.H. at once. April 30, 1926. 175 Gov. Harding says Charles Washburn told him he had written Coolidge strongly urging C.S.H.'s reappointment. April 30, 1926. 176 C.S.H. fears Coolidge may have given some promise to Sen. Reed (Pa.) at time Woodlock nomination was held up in Senate. May 7, 1926. 130 C.S.H. writes Gov. Harding that Sen. Glass and Sen. Bruce have each seen, and feel very hopeful. May?, 1926. 182 Gov. Harding tells C.ti.H. that Wing told Curtiss that C.S.H. reappointment was out of his hands and in the hands of Mellon ano Coolidge. May 17, 1926. 190 Cosmos Club Annual election. C.S.H. gives farewell speech as President. Jan. 11, 1926. *0 C.S.H. gives lunch at Club to Louis J. Taber, Master of National Grange. Jan. 23, 1926. 94 32. • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Cotton Mr. James told Board that increase in Boston rate might psychologically result in increase at Atlanta, which Gov. Wellborn favored; that cotton Ali other staples were too high and must soon brea4 ; that if the break followed an increased 6iscount rate it would be claimed that the latter had caused it, whereas he thought it was inevitable in any event. Oct. 16, 1923. 25 .• Gov. Harding tells C.S.H. that an increase in Atlanta rata woald be foolish as it would affect the mover:Ant or price of cotton. Oct. 19, 1925. 27 r • • Counsel, Federal Reserve backs Wyatt advised us that Counsel were not officers or arployees of Federal Reserve banks, and therefore that their compensation need not be reported for Bodrils al3proval, that the U. S. Supre.-ae Court has. so decided. The Board, on Niller's mntion, n'Terthe1es3 voted that such payments must be reported for approval. C.S.H. suggested that te.) Board inform the U.S. Supreme Court that it had overruled it: Finally a limit was fixed beneath which no report need be made. Feb. 6, 1926. 103, 106 Covington, Judge Mrs. Wilson asks C.S.H. about standing of judge Covington, recomluended by Baruch, to act as her counsel. Nov. 15, 1925. 35, 36 C.S.H. call d up Judge McCoy who .;trongly praises Covington. Nov. 16, 1925. 37 C.S.H. ;mites Mrs. Wilson as to above. Nov. 16, 1925. 37 Mrs. Wilson tells C.S.H. she has taken Judge Covington as her counsel. Jan. 5, 1926. 75, 76 Mrs. Wilson shoNs Judge Covington her proposed reply to auston's letter as to publishing in his book lette rs Of President Wilson. Covington ahid she should softe n it so as not to show any sign of anger. Jan. 13, 1926. 85 Cow pasture Edward Hamlin goes before Board of Engineers in Washington to ask for 4 marvel of Dorchester Harbor, refused by Local ainginesr. Dec. 22, 1925. 69 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 33. Cow pasture (Cent'd.) The %engineer Board ord.ers feet in depth. 311 immediate survey for a channel 30 Dec. 24, 1925. 73 Cowdir, Mrs. Winthrop We lunch with. Jan. 10, 1926. 79 See - Whalley Cox, Charming Federal Reserve Agent Curtiss says, may run for Senate and Butler 23 go into Cabinet. Oct. 13, 1925 Curtiss said Cox knew nothing uout banking but received a salary of $25,000 frau Wing's bark for no known service except talking speecheb at dinners, etc. Cc t. 13, 1925. 23, 24 Credit Bureau Miller 1oves to establish a credit bureau in the Board, -1.,nd that the research division re:)ort as to its scope and expense. Miller hal referred to this s cue clays agts C.S.H. asked him then if he meant to have a bureau established to coriduct an irsirependent system of credit files of borrowers from Feleral Reserve banks, pointing out that the Board app, inted Walter Hackney, Assistant Federal ki3erve Agent at Boston, to do this but it vvas founi to be impracticable. Miller said he merely tainted all the credit files of the Federal Reser e banks sent to the new Bureau in Wash. This morning, however, he said it had to do only •ivith the treatment of extended member banks and long continued borrwers, by Yederal Reserve banks. C.3.H. asked him to r;onfine his resolution to this, but he said that to find cut this it would be necessary to have the data as to all biinks. Miller said Sprague favored etch a Bureau. C.S.H. asked that Sprague be called upon for suggestions but would not c on sent. C.S.H. asked Ailler if his purpose was to obtain c redit statements of every borrower from Federal Reserve banks covering loans to their customers but he gave an ev &sive answer. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 34. Credit Bureau (Cont ed.) Firally Miller split his resclution into two parts: 1. That a Buzeau be establishei. 2. That the Research Division report scope and exnse. atki to its proper Mtlleragreed that 1 should be laid cn table pending the report on 2. We finally agreed to this. C.S.H. believes iillw wants to build up a kind of centralized detective force to examine into all loans by member banks and to restrain them, etc. This would be autocratic authority greater than ever yet clainled for the Federal Res irve Board. April 8, 1926. 152, 153, 154. Crisp, Cong. Olney says that he, :dellon, Hurley and Crisp of the Pebt Cocu-Assion favor var.j liberal cettlerments. Nov. 7, 1925. 54 'lssiier, Goy. Tells Board that Federal Advisory Council deprecate any increase in discount rates. Oct. 13, 1925. 22 Says he is to confer with directors of Federal Reserve Bank of New York toersrow; ,hit they 'e Cln: OS ld. to increasing di c)unt rt s. Oct. 13, 1925. 23 C.S.H. believes ltrong doainates Gov. CrissinEer. Oct. 13, 1925. -23 Tells Board of his conference with directors of Federal Reserve Bank of New York yesterday. • • • Said the directors all opposed any increase at present tir.-le; that they sars bringing direct pressure on•the New Yark banks to cut down their stock exchanFe loans; that so far as New York banks were concerned this prassir a had been successful; that the greater part of the funds 101117i on the Stock Exchmr,e carse from the interior, either loans against their balances in New York or .iirect leans. the Sugglation was made that Boston should increase just before the neat ::,eoting of th , New York directors, end a week He Silia http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 35. Crissinr- er, Gov. (Cce later Clevel and a- d. a wet* later Philadelphia; that this would cause uncertair.ty on the l'tork Exchange and might tend. to dimin4.sh the ixtont of the speculative ',says. The Directors said this might throw an increased burden on New York but it could take care of this more effectively than could the other Federal Reserve banks. Oct. 16, 1925. 24 C.S.H. calls up Gov. C. from Mattapoisett. He said. Phila. had taken direct action and had the matter well in hand. and did. not wish to increase its rates. He said Sec. Mellon did not favor an increase in New York at present. C.S.H. asked him to tell above to Gov. Harding by telephone and he said he would as soon as he 4;1. called 1.1) Gov. StrJng, which he was about to do. Oct. 19, 1925. 2E Bourd voted that Gov. Crissinger ane Gov. Strong advise Sac. Mellon of the understanding reached toddy at the Open Market Conference as to first increasing rates at 130,4t cn, Phila. ard Cleveland. Oct. 27, 1925. 30 Votes againet Cunntnghera moticn to put in a rate of 4% at New York over the heads of the directors. Nov. 6, 1925. 32 Votes in favor of approving the Boston increase to 4%. Nov. 6, 1925. 32 Says he may change his vote unless Boston rata is made effective on Monday instead of today - Trida-j. Nov. 6, 1925, 33 Gov. C. sail nothinras to attitude of Sec. Mellon, but as he had been directed to inforra Mellon as to the understanding reached Oct. 27, C.S.H. assumed. he lad done this and that Sec. Mellon approved. Nov. 6, 1925. 33 Votes azainat Miller motion that 50 millions of Govt.securi ties should be sold at once, including in this the 38 millions maturing Dec. 15. Nov. 23, 1925. 42 Asks C.S.H. to speak at the Open :Aarket Conference on the Board.' s rei;olution that the conference be called to determine whether changed conditions necessitate a ohmage in Open Market policies. D3C. 1, 1925. 46 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 36. Crissinger, Gov. (Contld.) Votes to approve plan of Open Market Committee to replace the 38 million, uf Govt. securities maturing Dec. 15. Dec. 3, 1925, 50 Says Drum of Mercantile Trust Co. had cane before Board. with clean hands and that the ap, ,,:licati ad should be granted. Dec. 8, 1925. 61 Votes to grant application of the Mercantile Trust Co. Dec. 8, 1925. 62 Votes to d.irect examination commi -tee to consider and report cn advisability of extending the definition of contiguous territory to include Burlingame and Palo Alto. Dec. 8, 1925. 62 Calls special meeting of Board to consider conditions in New York as reported by Gov. Strong, - heavy withdrawals by interior banks, 6% call loan I.-Ass, etc. Dec. 21, 1925. 65 C.S.H. tells Board he had heard Gov. Strong describe New York situation over the telephone in Gov. C's office. Meeting adjourned and Gov. C. requested to talk with Gov. Strong again. Dec. 21, 1925. 66 Gov. O. states Gov. Strong's position again tc Board.. C.S.H. moved approval of request of Open Market Co-mittem tc buy 15 or 20 millions of Govt. securities to ease the N. Y. situaticri. Before this Gov. C. asked Miller whether be had any motion to make but he said he knew the Board would approve and he should. simply vote in the negative. Gov. C. vot.s to approve revest of Open tiarket Committee. Del. 22, 1925. 68 Gov. C. informs Aca.rrt that the New York directors had unanimousl y directed Gov. Strong to buy frau 15 to 18 millions of Govt. securities. This announcement was made before the above vote. Miller made no ccroment. Dec. 22, 1925. 68 Gov. C. tells C.S.H. he -aelieves that Miller is acting in close touch with Hoover and is seeking to embarrase the Board; that Sec. Mellon said. the same to him 3,riet was very indignant with Hoover, who, he said, had talked with him about our Open Market policy severely criticising the Board; that Miller NE*,s very indignant .with Miller also and. asked Gov. C. Nhen his term expired.; that he replied, "it has only just befrun." Dec. 22, 1925. 68, 69 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 37. (Cont'd.) Crissinger, tells 14,..H. that on Dec. 31, Miller came into his room Gov. C. Norman 'las there and talked very sevIrely to him Gov. while about trie rubber situation rid Great Britain's export ciutien on rubber; that Gov. Norman told. him he was very raich annoyed at what Miller had said. Jan. 4, 1926. 73 Gov. C. tells C.S.H. that 3en. Lenroot less written anothr letter on the subject of New York Stock Exchange speculation being fed by Federal Reserve credits; that in this letter he repeated almost verbatim the talk of the Board. as to brokers lc.lans when it Acts deciding on its rerly to his first letter; that it vas eviaent ti-&t acme Board, member must have supplied. Lenroot with this inforniaticn ‘tni tat he -oelieved Miller had. "leaked." to Hoover, EInci that Hoover prompted Lenroott Geoond letter. J. 4, 1926. 74 Vo -,es in favor of Miller's motion to recomend' an amendment to Federal Reserve Act abolishing the 15 day collateral note. Jan. 6, 1926. 78 Gov. C. tells Board the 1st Natl. Bank of New York had borrowed 115 millions on its lb-day collateral note and loaned it on stock exchange at from 6 to 7%. Jan. 8, 1926. 78 Gov. C. reverses himself and votes against Miller motion to abolish the 15-day collateral note. Jan. 13, 1926. 80 An arzusirg scene follo'ved, when Miller tried to persuade Gov. C. hob illogical he was in reversing his first vote. Jan. 13, 1926. 81 GOV. C. said he still felt their notes were absolutely bad but gave no clAlr reason for reversing his vot -i•. Jan. 13, 1926. 61 Votes for proposed amendment to Federal Reserve Act to permit member banks to give direct notes to Federal Reeerve banks secured, by eligible paper (but not by Govt. bonds) up to 90 days. Jan. 13, 1926. 81 Votee against C.S.H. ::action that Open Market Committee z.uthr:rized to increase open market holdings of Govt. Lecurities up to 300 naillione, up to April 15th but cn express und.erstanding that this authority may be revoked at any time. Mar. 24, 1926. 129 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 38. Cr, issinger, Gay. (Cant *d.) Votes in favor of above motion without C,S.H.'a proviso. Mar. 24, 1926. 129 Miller said he was informed that the New York situation came about from fact that certain New York banks were loaded up with issues of new securities they could not place. Gov. C. asked Miller who his informant was (meaning Hoover), but Miller declined to state. Gov. C. then said he should place no reliance on inforniation from a. source which Miller declined to reveal. Mar. 25, 1926. 133 Votes in fvor of James motion to approve increas Irg open market purchases to 300 millions up to April 15. /le •-• Mar. 25, 1926. 133 Gov. C. tells C. S.H. that Winston told him it is well understood that Hoover is dominatine Miller and that he had proved that Hoover got infonmati on frun Miller as to Board action; that Sec. Mellon was much disturbed, at this. Mar. 26, 1926. 134 Gov. C. said Harrison told him the Open Market Committee denied power of Board to forbid open market purchases, arid, that he (Gov. C.) believed that if the Board refused in any spelific case, theFederal Reserve Bank of New York would act in spite of Mar. 29, 1926. 136 the Board. Gives out an interview in Washington Star in *rich he speaks of business depression altho generally optimistic in tone. The reference to d.epressicn, however, was very foolish. Mar. 30, 1926. 139 Votes in favor of Miller's moticn that the appointment of Olsen, confidential secretary of Gov. McDougal, of Chicago bank, as Assistant Secretary, was against the policy of the Board, as it believed the Secretary and Assistant Secretary should be appointed from the Federal Reser le Agent aide of the bank, nd that the appointment was suspended. April 6, 1926. 148 Gov. C, Baja Harrison has offered Warren of our Research Division $6000 per year to go to the foreign divisicn of the Federal Reserve Bank of New York; that Harrison had asked him if he could speak to Warren and he said. yes; that he knew Dr. Stewart would give Warren $8000to get him. April 19, 1926. 163 See - Miller http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 39. • CrissinEer, Gov. (Contli.) Gov. C. tells C.S.H. he is not at all well; the.t he has bladder trouble and. has to go to his Doctor three timeE a day. This locks like prostate trouble. Apr. 20, 1926. 165 Votes in favor cf authorizing Warren's appointment at 1'6000 by Federal Res3rve Bank of New York. April 20, 1926. 165 Gov. C. asks C.F.1.H. for copy of o1k 1t ter of Board. directing that que:3ticns should he broe)ght to attention of 3oard through the April 20, 1926. 165 Governor. Miller said. Warren's Tpointment ,Aaa accomplished behind his back altho he vas Chairman of the Research Committee. Whereupon Gov. C. -0ecarr.n very angry aad said to 'tiler: "The trouble is with you - you are too damned jealous. You want to act as Governor cr.' the Board. I want you to understand. that I am Governor and not youI" April 20, 1926. 165, 166 Tells C.S.H. cf a clipping in New York Journal of Commerce to effect that Cong. McFadden wart C.S.H.'s positicn and says it be d. purely po1itic:31 appointment ani he did not believe Coolidge mulct me it. (See ccrap book) 182 May 8, 1926. Tells that Maloney, President of Federal Trust Conpany• Boston, said there were some feeling in Boston that Butler's Senatorial fight might injure C.S.H., as Butler may want come Republican appointed. May 12, 1 926. 187 C.C.H. told Gov. C. that he had reason to believe that Butler favored hit a4-.pointment and that the matter no"; rested with Sec. Mellon. May 12, 1926. 187 Gov. C. seemed very fri endly and said :40FM:ten's appointment would be s - o purely political he did not think for a mcment it would be nude. May 12, 1926. 187 Gov. Harding tells Platt 4,hat Gov. C. designation as Governor expired in April and that he is now merely holding over. May 18, 1926. 191 Gov. C. insists that the letter to Sec. Mellon asking opinion of State Depa.rtwent as to the Cuban Agency be approved. by Board before sending. May 20, 1926. 198 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 40. Crisaingar, Cov. (Cont'd.) Mr. Goebel of Federal Advisory Council (Kancas City) tells C.S.H. that they all lie Gov. C. personally, "out that he knew little of balking 4.1nd was not fit for his jo -.;. May 2C, 1926. 201 Crowder, Gen. Gov. Harding told Board that Gen. Crowder, our Ambassador to Cuba, was a first-class ism and Ambassador but unfortunately could so no business after 4 p.m. as he invariably became "full" then. April 30, 1926. 177 Cuba See - Crowder, Can. Cuban Agency Atlailta Cuban Agency, Federal Reserve Banks of Boston Board met to go over with Gov. Harding the report of Mr. Chase, one of his employees at the Havanna branch. The r ç ort gave a graphic description of the run on the Cuban banks and the efforts of the Federal Reserve banks to cope with it. It showed that Federal Reserve Bank of Atlanta wac caught with an insufficient bupply of Fect,ra.1 Reserve notes; that Federal Reserve Bank of Boston gave most valuable assistarce; that the Cuban Govt. advanced 15 millions to it; that finally Federal Reserve notes came from Jacksonville and Key Went and the run was met and soon ceased. The report also stated that Deputy Governor Carzr::ell, Mr. McCrary, and other employees of the AtLanta bank were sent by Atlanta to guard the shipment of some 26 millions of Feaeral Reserve notes sent by Atlanta bank and trars ported. to Cuba on a Cuban gun boat furnished by the Cuban Govt; that during the voyage they all became so intoxicated that they were stretched. out prostrate on the dmk; that it was a grave scandal. The Board decided to send. James, Horson, aid Wyatt 4-,o Havanna to investigate. Many felt the Atlanta Agency should be !discontinued., arid Wyat t was asked as to some plan under which one of the Boston employees could be designated to act as Assistant Federal Rev.erve Agent for Atlanta to hold. Federal Re::erve notek, and eliver them ',then needeci to another Boston employee designated, to represent the Atlanta bank. Jaries strongly advised abolishing both agencies and giving the matter to Federal Reserve Bank of New York. Gov. Harding aala he had talked this over with Miller who atrongly objected as New York had enough to do tc handle its present foreign relations. April 30, 1926. 1 175, 176 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41. Cuban Agency (Contid.) Ja.nes, Herscr, zind Wyatt start for Havana,. May 2, 1.926. 1 77 See - Crceecter, Gen, 0.5.H. tells Ccraptrollni of Currency about James plan to discontinue Boston. He said he would vote against it as he had no confidence in the Federal Reserve Bank of Atlanta as at present managed. May 17, 1926. 189, 190. Board meets to ccnsi,ier James! report. It considered first the first recomeendation, - that Dept. Gov. Campbell should be "eliminated" from the Feierd. Reserve Syst.w. C.S.H. seid. Cerapbell should have an opportunity of being heard. before that the F-deral Reserve Bank sentence was passeci upon him of Atlanta should be dir ected to inveLtics.te and report immeciia.•;ely. James bitterly objected, and moved adoption. C. .IT. moved to lay the motion on the table temporarily pending a motion to direct Federal Reserve Bank of Atlanta to irvectigate and. report. Defeated: Aye - C.S.H. and. Platt • No - Gov. C., J612t113 , and. Cunningham Comptroller of Currency moved to adopt the firFt recomeeei ati on that it was the sense of the Board that Dept. Gov. Campbell should be eliminated from the Federal Reserve System. Pas sed: C H. al one 'voted No. May 20, 1926. 193 Conptroller of Currency reeved that the Zi.cr.duct of Director NcCrary be investigated by the Special Committee to ascertain „mei re7ort whether he should be eliminated. from the Fedlral Re,erve t3ysterD. Passed unanimously. C.S.H. then moved, that the Federal Reserve Bank of Atlanta be directed to invs.tigate and report concarninr ,th .3 whole matter of shipment of Federal Re-erve notes to the Havana Agency, stating all instructions given by the Federal Re '3rTre bank to the officials and the personal conduct of said officials. C.S.H. moved that Jam:: personally communicate the foregoing action http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cuban Agency (Cont'd.) of tha Board to the Federal ReL:Irve bank arr, to the individuals conc irned. Passed unarliruously. cs.::. felt that the above moult give Caranbell a ch.-Ance for a hearing if ha desired cne. C.S.H. told th. Board it should not reluove an officer on an ex parte investigation, without giving tIv3 Federal Reberve bank an opportunity to investigate imd recommend action; that if the Federal Reserve bank failed to investigate ard report, or if its report were plainly unsatisfactory, then t e Ferieral R1,6erve Board could take all necessary action. Jane bitterly objected to thi .;a7ing that Campbell was not fit, any way, to b. . Dept. Governor, slid was densely ignorant of bankhg. C.S.H. replied that, ..--ssuming this to be true, for the sake of argument he -res clearly entitled to a hearing upon this specific charge. The Board decided that James should 41ietly say to Campb .41 that if he wished. to have a hearing on the chare.eL, it would be accorded to him, the members, Li.1.1 but C.S.H., believing ho would. c.t once resign to avoid public acanal. May 2C), 1926. 193, 194, 195. James also asked the Board to declare that McCrary should be eliminated. from the Federal Reellve System, but it was pointed. aat that James -eported no evidence au to any ;:lisconduct on the part of McCrary, except the mere fact that he vas one cfthe party. The Board, however, passeci the motion to the Comptroller cel ling for an investigation. May 20, 1926. 195 Ja;:ies also a6Led the Board summarily to remov9 Gov. Wellborn, on the ground. that he was recently intoxicated at a public dinner of Federal Rase:I-vs officials and later at b, private house. The whole Board felt that this question should not he talc en up in thl present investicp.tion but should be decided upon its merits later. Ma:' 20, 1926. 195 James said Gov. Wellborn via grossly incon;etent, anyway, and should be removed. Cunningham asked why then did_ th, Board -ecently irc rease his salary to .25,000? James replied this salary was given to thA office and not to the man. Mx 20, 1926. 195 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 43. ) Cuban Agency (C ont Cunninehers eat: that, avert froci the VidCe of intoxication, which James said he could produce, he should vote to retain Irier.born in office, a3 he believed he was as competent as the usual run of Governors. May 20, 1926. 195, 196 The Beard then t oCit up James recommendation to abolish the Ag: ency of Boston. C.S.H. said he shoulci like a reasonable time to study the report of James; that he felt Boston should help Atlanta by issuing a reasonable aisount of its own Federal Reserve notes; that he did net, of course, favor abolishing Atlanta's agency, but wished to strengthen it. C.S.H. pointed out that Atlanta was the 9th bank rf the System from the point of view of capital, 6urplu, 'arti reserve depOiSite, and. he 3rd benk from the point of view of Federal Reserve notes in actual circulation; that it had outstanding 186 milliorn of Federal Reserve notes, being 9xceede'_ only by Cleveland :ead. New York; that such a situation was top heavy and not in accordance with sound banking principles; that the theory alemed to be that Atlart 33curel much gold from alba, through its Federal Reserve notes circulating there, about 75 millions, - and. that time na es never would be redeemed, that there might easily occur contingencies where they :eight be redeemed, 1. j. the passage of a central barti.. bill in Cuba. C.S.H. also pointed out that Atlanta had all it could. do to Mk() care of thI dorseatic needs of its district, that its deposit reserve was down to 54; that in the last four years it had charged off 2 millions for bad debts; that it now had claims against insolvent banks for l millions, altho it claimed ite losses on these would be small. C.S.H. asked time to go over James report an:isaid there was no contingency requiring immediate act'cn. James said there was an emergency; that there was a rumor that we were •oing to abolish both of the :Agencies; that r. it& ell hart wired Gov. C.of this rumor and of the danger likely to arise from it s spread. The Board members felt there was no emergency. C.S.H. said. he would gladly vote to notif:i all the banks that the od.rd had no such intention but merely had under consideration measures for increasing the usefullness of the agencies. . May 20, 1926. 196 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 44 Cuban Agency (Cantid.) James moved that the Board should tentatively approve his plan and then hold a public hearing at 'which the officers of the National City Bank should be invited to appear and give their opinion of the plan. May 20, 1926. 197 In reply to a que:3tion from the Comptr( ller, James admitted. that all the banks int ereuted should be heard, including the Federal eserve 3ark of Boston. MAy 20, 1926. 197 the Secretary of the Treasury should be notified before we voted on the plan, au did also the Comptroller. Jamez! did. not specifically object to this. May ZO, 1926. 197 Suddenly Jame became livid with rage and. za.ict that if Board did not no.v tentatively approve his plan he was through and. would even 7o to Atlanta to investigate the Campbell charges. He acted like a spoiled child and apparently tooi, . the r osition that when he made a rerort on -.ny matter the Board was bound tc cprove it without die ci3ssi on .3nC .without debate. At 230 the Dowd reconvened ar.d. James was more quiet. au-Li-Anglia= •.i- nd. the Comptroller told me, before acijourning for lunch that they would quiet hir-,. The CaLptroller told C.V.H. that the Secretor', of the Treasury knew the whole ai tuat ion and ,Irould also quiet him. Miller then moved that the Board apk. the Sec. of Ste •drether the State Department still favored. an agency in Cuba and whether the uncter the Platt amendment was under any obligation to keep in Cuba a supply of American mc,ney. objected to going over the heal of Sec. in this via:', but Miller insi6ted, but finally it was agreed that the letter should be xidressei to Sec. Mellon. 0.`-'•.T-r. then moved that Gov. C., Miller, and. James be appointed a Ccm.nittree to confer with Sec. Mellon and ask him to fixcertain as lecve, stating that he dict this merely because Gov. C. had. said he knew the State Der)a* tment had chAnged its opinion since 1923. Passed unanimously. May 20,1926. 19?, 198 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Cuban Agency (Cont d..) Gov. C. insisted that the form of the questicn to be put to Sec. !.:31.1on be fixed by the Board before the conference vith Sec. Mellon. The Coramittee was than directed to prepare a lraft of letter and. report it later to the Board.. C.S.H. then moved. that the Federal Reserve Bank of Boston be advised that a Coaxal ttee had -recommended. abolishing the Boston Asency _gr.d that it be given an orportunity to be heard. No vote was taken on this as the matter went off in the question of the letter to Sec. "fellon. All, however, favored it. lilay 20, 1926. 198 Cunningham then moved that the Atlanta Collmitt93 (.0.S.H. and James) take up the Cmpbell matter with Atlanta. C.S.H. said, coming from Boston, he preferred. not to act on this CannatteF.i, as the matter was tied up with the iiiestion of aboliehing the Boston Agency in the James report, and. he preferred not to be drawn into any preliminary discussion of the matter, and that the Special Committee should have no connection with eithr Boston or Atlanta, and as James had made the Cuban inve.:stigation as a special Ccxamittes of one, the Com...ittee should not be changed. All, includirg Jame3, said this was a fair positi..n to take. May 20, 1926. 199 James bitterly attacked. Director McCri:try and wanted the Bor.s.rd to removed him forthwith, altho the only evidence in his rarort was that he had accompanied the Party to Havana. James:aid. SUL11 years ago McCrary had used his position as ,=& director to coerce member banks into buying bonds from him; that the Board had a representative of the Attorney General's office inve3ti ate this, and that he reported that vithus he was satisfied the charge was true, he could not get enough direct evidence to convict him. C.S.H. vaguely remembers going with J&208 to the office of the Attorney General's Assistant on this matter. May 20, 1926. 199 Cunningham, Edward. All of the Board except Cunningham agreed. to the policy of rate advances at Boston, Phila. (aid. Cleveland before any advance at New York. Oct. 27, 1925. 30 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 46. Cunninghari, Edward (Cort 'd.) During ctiscussion of Boston's aprlicaticr to increase its rate from3 to 4ts, Cunr.inght suddenly read a proposed resolution that the Board would approve a rate of 4',:o at New York to take --Iffec t ira.iodiat ely. On inquiry he said he rent that the Board should put this rate in at once. At his suggeation the reaolution was alightly changed sc as to make this clear. a explanation of his resolution was very °confused, - he said New York Wiv3 the plc-ce at which to begin rate in -Teases, bu.t did not aci -ra cl aar as to whether thar3 should be any increaud. Miller saici that as betwe3n (a) increases at Bouvon, and Clevelarxi Lind (b) increase at New Ycrls., he favored the ould vote for Cunningham's motion. latter and On vote, Cunningham' s motion was defeated: Aye- Cunningham, aller No - Gov. C., J95, and C.S. H. Nov. 6, 19S. 31, 32 Cunr_inghezu alone then voted iss.inst Jw.es motion to take from the table the Boston Elpplicaticn and approve it, which was Nov. 6, 1925. 32 passed. a- action to instruct Oren Market Cunna.nghem voted fcr Mill Committee to sell at once 50 milliona of Govt. securities (including the 58 millions maturing Dec. 15). Lost Nov. 23, 1925. 42 Cunningham begs to hive action postponed. as to giving authority to Gov. Strong to buy from 5 to 10 millions bills from Bank of Belgium, although he said. he saw no objection to it, but %vented time to think it over. Gov. Strong said quick .ac ti cn was necessary as he might have to take action on Friday. Cunningham finally reluctantly consent to have the vote taken. Nov. 25, 1925. 45 Cunningham and. C.S.H. go to Phila. to meet with the conference groups which take place there in lieu of stockholders meetings. Dec. 7, 1925. 58 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 47. Cunningham, Edward (Contld.) Votes against granting application of Drum for the Mercantile Trust Co. to take over banks, alread.y owned by the Cog:any in Burlingame and Palo Alt c, Cal., as branches. Dec. 8, 1925. 62 Voted against directing the Exeznination Comi.dttee to reyort upcn the desir%bility of xtending ;e area of contiguous territory to include Burlingame and Palo Alto. Allothers Dec. 8, 1925. 62 voted Aye. Votes •ivith Miller ac,-ainst many proposed. increases in salaries brought before Board for approval in many Federal Reserve Dec. 15, 1925. 63 di strict s. Voted. against :Aving Open Market Committee autho•rity to purchase 15 to 20 millions of Govt. securities to 90.41 the N. Y. situation. Mill' also voted. No. Dec. 22, 1925. 68 Voted with Gov. C. aid Millar to reccomeni an amendment to Federal Reserve Act to abolish 15 day colle.teral notes Jan. 8, 1926. 78 Voted ivith Miller agtin, as above, on reconsideration by the Board. Gov. C. revirsed his vote an4 tha motion .ias Jan. 13, 1926. 80 defeated. Votes in favor of C.S.H. raotion that Federal Reserve Act be .3mended to permit member banks to give direct notes to Federal Reserve banks, up to 90 days maturity, secured. by eligible paper, other than Govt. bonds. Jan. 13, 1926. 81 C.S.H. gives a lunch to Louis J. Taber, Master of National Gre at which Cunningham was preset. Jan. 23, 192. 94 ent Jay to , Voted to refuse permission to Federal Reservs Ac give out the New York figures of loans on the stock exchange tomorrow instead of waiting until next week for the Board. announcement, the figures then being a week late. Feb. 6, 1926. 98, 99 Votes that payments ty be reported. to Board us that Counsel were Suprerie Court had so Federza.1 Reserve barks to counsel must for approval, lthough Wyatt advised not officers or employees anithat ruled. Miller and James also voted the saaie way. Feb. 9, 1926. 106 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 48. Cunningham, Edward (Cont'd.) Voted against laying on table Miller's motion to approve a letter to Federal Advisory Council asl-ing its assistance in restraining or eliminat ing speculative loans frail Fecirnial Reserve System. M ar. 11, 1926. 122 Voted .ainr3t C.S.H.'aitottcn to authorize Gov. Strong to buy for Open Market Carrnittee up to 300 millions total holding of Government securities not later than April 15, -orovided this authority may be at any time revoked by Board. Mar. 24, 1926. 129 On Jmes motion for general authority leaving out C.F.H.Is proviso, Cunningham, Platt ad Miller ,roted No, tying the vote. Mar. 24, 1926. 129 Th3 above matter taken up again by Boztrd, Sec. Mellon presiding. Cunningham said he did not object to delegating authority generally to the Open Market Committee, but felt there was no emergency in this case calling for such action. Mar. 25, 1926. 132 James renewed. his motion and it was carried. Cunningham, Miller and I'la.tt Iroted No. Mar. 25, 1926. 133 Cunningham was not preeent wh3n vote was tic en on application of Valley Bank of Fresno for a branch, but he agreed that. as we had originally imposed a branch bank condition on entrance into the Federal Reserve System, the only que 4.; cri now before Board vs whether talling over the branch would weaken the assets of April 6, 1926. 146 the bank. Cunningham asks Comptroller of Currency to join with him as the Chicago Ccmmittee is recommending nisapproval of the apt-ointment of Olsen as Assiztant Secretary of the Board of Federal Reserve Bank, Chicago, on the ground that the Secretary and Assistant Secretary should be taken fron the Federal Reserve Agent's side of the bank, as the Board had declared to be its policy. It -sus pointea out to Cunningham that 6 of the 12 Federal Reserve banks had secretaries tazen frcm the operative side, so he chanEed his report so as merely to disapprove this particular appointment. It was finally 'pointed cut that Olsen Nag confidential secretary to Gov. McDougal; +..hat over a year the Board approved an increase in Olsen's salary for the , xpress purpose of ultimately 7:aking irn Assistant Secretary to help http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 49. Cunningham, Edward. (Cont td.) the Secretcry, Vrhite, Assistant Federal Reeerve Agent. Cunningham and Jain"3 admitted that this put the Board in an embarr.issinc position but it did. not change their opinion. Cunningham had left before the vote was taken disapproving Olsen,s !appointment. April 6, 1926. 146, 147, 148 Cunningham was away when Board. vot ad to appr ova 5,1nt a C crnmitt ee compromise on McFadden bill. April 23, 1926. 169, 170 Dr. Miller when testifying before Banking and. Currency Cornittee said. Milo Campbell and Cunningham - dirt farmers- were the ablest IlernberK the Board ever had. April 29, 1926. 174, 175 Objects to JLAC139 t s attack on Gov. Wellborn as inccmpetent. Asks vhy, then, 11. the Board recently increase his calary to $25,00C? Says that, apart from a deciel cn of this new charge of intoxication, he will vote to retain Wellborn. May 20, 1926. 195, 196 Tells C.S.H. he will try to quiet James. !,lay 20, 1926. 19? Moves that the Atlanta Comuittee, JULIO and C.;.}T. - gc to Atlanta in connection it.th the Campbell investi.gticn. explains to satisfaction of all why he doe:, not wish to servo. May 20, 1926. 199 3ee Cuban Agency Curtiss, Federal Reserve Agent has ccnfererc e with, in Boston. He said Boston had. a'zlied for an increase in discount rateL from 31 to 4%, but that the Board had held it up; that the increase was necessary; that the banks were using this low rate to Cat money for call loans. Oct. 12, 1925. 22 Says they are all working for C.S.H. s reappointment; that their only fear was that sec. Weeks might want the rosttion; that Butler 7.1.11 probably go into th- Cabinet; that perhaps Cox would go into the Senate; that Cox knew nothing about banking but had http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 50. Curtiss, Federal Reserve kit (Contid..) a salary of $25000 from Wing's hank for no known services except making speeches at dinners. Oct. 13, 1926. 23, 24 Wing tells Curtiss that f.`,.:;.H. reappointment has been taken ou.t of Sen. Butler's ha.nds and rests with Sec. :fi.ellon and the Presiient. May 7, 1926. 179, 190 -D- Danish ?Iinister to Switzerland. We meet, ,t cinner with Sir Herbert and. Leay Ames at Geniva. Sept. 15, 1925. 6 Davi B Norman Wilson tells C.S.H. of her talk with Houston at dinner with. Jan. 13, 1926. 84 Mrs. Begs Houston to cme to Wilson dinner in N. Y.; tolci Houston he owed all he had in the world to Wilson. Houston had another engagement. Jan. 13, 1926. 86 See - Houston Wilson, Mrs. Deaconess ICospital C.S.H. spends four days at, fur Xray exa:rdnE.tion. Oct. 5, 1925. 19 See - Xrtoy Debts, Allieci Andrew very hitter about Administration's tre.,tment of France. Oct. 1, 1925. 18, 19 See - Antrew, Cons. Olmy says Mellon is very liberal as to settlements of Allied lebts; that he made an aF,reement with Caillouz as to the French debt but the Rerublic, ms on the Debt Commission turned, it down; that the Democrats on the Debt Co:mission helped Mellon more than the Republicans; that the Italian ageement was hanging fire; that Mellon, Hurley, Crisp and. he v:ere for very liberal eettlements, but that the Republican me:share were influenced. by p olitical c0ns/a erat ions and held ba:k. Ncv. 7, 1925. 34 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 51. Deflation Gov. Strong tells Miller he (Miller) is for deflation, pure and Dec. 1, 1925. 49 Delano, F. A. Asks C.S.H. to serve on Committee to arrange a dinner in Wash. on Wilson' birthaay arid C.S.H. accepts. Dec. 5, 1925. 57 Tells C.S.H. the Carnegie Board, at its meeting in N. Y.(.....htch C.S.H. could not attend) :rade an ar.propriati of 750C) for the American Committee at Geneva, and. of $50,00C to send teachers abroad to study the L. of IT. Dec. 5, 1925. 57 Calls on H.P.H. and said /3utler managed the rr.efting ov=marably. Dec. 5, 1925. 57 Says Butler vrote eminent raen all over the world. for sugge,:tions and. criticism of Board's work; that most replies were eulogistic but that Raulaey MacDonald. said the Board had spent $750,000 all to no practical purpose; that some of the trustees were indignant; that he said he aereed with MacDonald and. that the only practicable help towards peace was the t4000 for the kaerican Cuinittee at Geneva made last y-%,r cn C.S.H.'a motion. He said Butler absolutely agreed with what he said and that if the Board. could not help the L. of N., - the only practical work fOr peace - in which 55 nations were intare ted, - it had better aisband. Dec. 5, 1925. 57, 56. Bertis aal:ad Delano if James Brown Scott opposed the above appr op ri at i cns, and. he replied, "Not He knows hi 5 new master's voice!" Dec. 5, 1924 58 Delano presides at Wilson dinner and makes a fine address. Dec. 28, 1925. 70 We lunch with Mr. am :Ira. Dalano. Jan. 17, 1926. 86 C.S.H. tells Charles, Warren of attempt of Delano, Warburg, Harding and Miller to cut down the number of resIrve banks. Jan. 17, 1926. 89 DeLong, A. D. Death of, tt :lattapoisett. Feb. 18, 1926. 107 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 52. Democrats Sea - Debts, Allied Denison, Mr. C.S.H. tells Ishii the story of Gen. Foster being refused an audien:e for himself and family by the %perm. of Japan, as told him by Denison, American Adviser of Japanese Foreign Office. Sept. 12, 1925. 3 Dennis, 5ee - Tariff Commission Dinners, lunches, suppers Viscount Ishii, Genega. Sept. 12, 1925 Sir Herbert and Lady Ames, Geneva. Sept. 15, 1925. Mrs.Baggs, Geneva Sept. 16, 1925. Mrs. Wilson, Geneva. Sept. 17, 1925. 9 Mrs. Wilson, Sunday, Nov. 15, 1925. 6 6 35 Miss 31.1id1er, Christmas day, lunch. Dec. 25, 1925. 70 Col. and Mrs. Rogers, Dinrer, Christmas Day, Dec. 25, 1925. Admiral And trig. Halm, Tuesdav, Jan. 5, 1926. Mrs. Winthrop Camrttn, Jun. 10, 1926. Mrs. Wilson, Jan. 13, 1926. Mr. and Mrs. Delano. Lunch. 70 75 79 82 Jan. 17, 1926. 88 C.S.H. Lunch to Louis J. Taber, Master of Natl. Grange, Coss Club Jan. 23, 1926. 94 Misd Squire, Dinner. Feb. 1, 1926. 96 Mr. and Mrs. Pennington, Feb. 5, 1926. Miss Wilson. Tea house. Mar. 8, 1926. 98 111 Mr. and Mrs. Penningham, April 5, 1926. 146 Mr. and Mrs. Copley Amory Lunch. April 18, 1926. 163 !Ire. Wilson, April 26, 1926. Regretted. Anniversary of Anna's death. 171 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 53. Dinners, lunches, suppers (Cont id.) Also z.t number of dinners with Mrs. Warder. Direct pressure Croy. Crissinger was at direatots meeting of Fedwal Re.,erve Bank. of New York yet.terday, ard. told. the Board they •, .ere bringinr dtrect pref. , ,ure upon the N.Y. member banks to reduce their atock exchange) clans; that these -fforts had been successful so far as the N.Y. banks were concerned., but that the greater part of the bands used came from int erica' banks, either loans against balances or direct loans. Oct. 16, 192Z). 24 Dr. Stewart tells Board that he saw evidence that the stock exchange market was being fed by Federal ReL;erve rediscounts; that there was absolutely no reason for increasing rates 'from 4,1-9 point of view of agriculture, conmerce, or business, altheuah the Federal Reserve rate was 1% below customers rates; thst direct pressure would meet the situation if it could be *plied.. Oct. 16, 1925. 25 C.S.U. tells Gov. Harding that the IT, Y. situation was being held well in hand by direct pressure arid the Board felt he could use direct pressure in Poston. Oct. 19, 1925. 27 Gov. C. tells G.S.H. that Philadelphia held meters well in hand through direct pressure and. did not want to increase rates at the present time. Oct. 19, 1925. 2E, Board discusses direct pressure at a meeting with the open Market Investment Cora ittes. Dr. Miller said. the term direct pfesstre was invented by Assistant 3ecretary Leffingwell. Gov. Strong said it could not completely be carried. out unlese the Federal Reserve bank should refuse to discount for any bank having speculative loans which should include real estate loans as well as Wall Street loans; that this would mean ratiming of credit which would be ciisaetrous. Oct. 27, 3P901). X.) Gov. C. told Board that she 1st Natl. Bank, New Yorl, had just borrowed. 115 millions from the Federal Reserve Bank of New York on its direct note collateraled by Govt. securities and had loaned it on the N. Y. Stock Exchmage at frazi 6 yo 7%. C.S.H. suggested that this called for some direct pressure, or perhaps for a higher rate on member bank collateral notes; that we should examine into the facts. Jan. e , 1926. 78 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 54. Director of the Mint. Piatt Andrew was once. 16 Directors meeting, Federal Recerve Bank of Boston. 27, 28 See - Fea.er.1 Res.-Irve Btnk of Boston Dikiarmamalt Dr. Shotwell tells C.S.H. that the British delegaticn to the L. of N. was opi)osed to ,..tny present consideration of Disarmament plans, although the other rations favored immediete consideration; that the British might have to yield in part, but fran no desire cn their part. Sept. 17, 1925. 7 Discount rates Curtits tells C.S.H. that Boston, in September, had applied for an increase from 31 to 4%; that the Board Was holding it up; that it was plainly necessary as the banks were usinstz the low rate to get money for call loan operations. C.S.H. then drove to Gov. Hardingis house and he said about the same. Gov. H. said N. Y. felt the increase at Boston would not embarrass it but that if 1Fshi1a. and Cleveland shouk also increase, it xight throw a heavy burdel on New York. Oct. 12, 1925. 22 Gov. C. said the Federal Advisory Council deprecated, any increase in discount rates; that he -.41*s to confer vith Gov. Strong in N. Y. tomorrow; that the N. Y. dire'ctors were opposed to any increase. Oct. 13, 1925. 22, 23 C.11. believes Gov. Strong is thinking of the effect of increased rates in Europe as well as the domestic situati qt. Oct. 13, 1925. 23 Platt and Miller believe the Now York rate should be increased, and C.S.H. is rather inclined to the same vie/ because of the speculative movement on the N. Y. Stock Exchange. Oct. 13, 1925. 23 Gov. C. tells of conference yesterday with directors of Federal Reserve Bank of New York; said that they all opposed. increasing ctiscount rates at present time; that they were bringing direct pressure to bear upon the N. Y. banks to cut down stockexchange loans with great success .:;o far as the N. Y. banks were concerned, but that the trouble was that the g'eater part of the money loaned. on the exchange caiiie from interior banks by direct loans or loans through their N. Y. correspondents; that sane of the directors thought it might be well in order to discourage the stock speculation, tc hare Boston increase just before some meeting of the N. Y. directors, to be followed in successive weeks http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 55. Discount rate3 (Cont d.) by Philadelphia and Cleveland; that tis cour, e ..culd bring tir;out uncertainty in the stock market and might tend to depress the speculative f‘ver; that such a procechr e world throw an increased burden upon New York but that New York could cope with this better than the other Federil ReK,erve banks, .1rr1 Nev York could then Aecicie what course to pursue. Oct. 16, 1(:25. 24 Jamey, said that if Boston increased Atlanta world also want to increase, - that :icy. Wellborn had suggested an increase alreaciy, ani the movement might spread over the whole country injuring crop moving ard depreasing the price of cotton, whet and other staples; that these staplps were now tec high and rust soon recede of themselves, ,ind if such rec-asion 'vire to follow a rate increase it would be charged 713e,‘:, the Federal Re.Lerv Boerd had again deflated the farher aL in 1920. Oct. 16, 1925. 24 Platt daid the Federal rie..,erve Board would surely be attacked for keeping in at New York a 4% rate, to the benefit of stock exchange speculators, as against a rate of 4% at other Fedeeal Tte.:erve banks for farm paper. Oct. 16, 1925. 25 C.C.H; answered Platt by pointing to the fact that under the rate, call loans of the New York banks vere decreasing. ail% Dr. Steviairt went over the whole sttu3,tion graphically using charts. He said prcduction was slowly increasing, .vith prices pra.ctic4.1y stationary; that he saw evidence that stock apeculatim 'Mae being fed. by Federal Reserve discounts; that there was, ho absolutely no reason for increasing rates from agricultural or ccrrnercial grounds, altho the New York Federal Recrve rate was 11; belo.v customers rates; that direct action ,rould meet the situation if it could be obtained; that h,-1 was inclined to think that an increase cf would not result in increasing customers rates. Oct, 16, 1925.251 26 1/25 C.S.H. said that usually, an increase, under conditicns such as at :present, would reault in increasing custowrs rates, which all agreed vs not necessary or desirable at the present time of crop moving. said the question seems to be whether it is necessary or desirable to increase rates on agriculture, commerce And industry, possibly penalizing them by making credit iliore expensive, for the sole purpose of checking: stock exchange and real estate speculation. Oct. 16, 1925. - 26 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 56. Di scuunt rc.kt ed (Cent 1 :J.) being used to C.S.II. reale that Federal Reserve re:Ulcerate some extent for stool.. speculative loans, but believes that in - right ) the first instance, at least, direct pressure should he' to bear or. the burfA:s to draw on their secondary res.?rvez., call loans, and perhaps dispose of their inves'atents in Govt. and other securities, before borrowinE; from the 1Vedera,1 Rei: rlerre bank to make good deficient reslrves. Oct. lo, 1925. 26 Gov. Ilard.ina tells C.3.H. over telephone that his directors at the meeting on Wednesday would again press their request for an ircrea.se, that they wer 'hiving bills in the open tharket at higher rates thso the discount rate. C.S.H. told him that the Board, - except Platt, - fslt that the increase should. be deferred. fcr a while; that James felt an increase now would be followed by an increase at Atlanta. Coy. H. said. Atlanta -you'd. be very foolish to increase its rate for such course 7ould interfere with the tovernent and price of cotton. C.S.H. told him of James fei..;,r that increase in rates, if followed by Atlanta, ,voula c i issmedd. ate break in cotton, a break •,vhich he thoucht bound to come in any event, but which fclloNing an increase in the discount rate, suld give rise to a charge of Federal Reaerve Board deflation as in 1920. C.5.11. also told. him the Federal Reserve Bank of New York held the matter well in h4md as regards the Ne4.7 York banks by direct pressure and we felt he could do the ara . Oct. 19, 1925. 27 0,444,13,2.‘, Aiy 4.-(444. k) y.,44.441A. ir 3 C.S.H. then called up Gov. C. in WashinL:tcr.. He said Phila. held matters well in hand tirtugh din ct pr 413zure and aid not want to increase discount lutes now. He also said Sac. Mellon was against any present increase. C.S.H. asked hits to call up Gov. Harding and. tell him this and he said he would as soon as he had talked with Gov. Strong in New York. Oct. 19, 192K. 08 attends directors meer.ing of Factiral Re5Arve Bank of Bcston at 0 p.m. Went over the rate siti-tati on. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 57. Discourt rates (Ccntld.) The Directors still felt rates should be increasei but were n'A inclined, to press th autter in view of the feeling of Sec.Idellon and the Federal Reserve Board. Fiat,lly the Board. passed a resolution but stated that this was done to and that it would not be sent to Oct. 21, again favoring en increase keep their racord straiEht, the Federal Reserve Board. 1925. 26 Board has a conference with the Open Market investment Curmittee. Gcrr. Harding explained the Boston situation. He said. Boston rate a should be increased as they were out of line with custasers rates, which ran from to 4e1 that the Federal Refierve rate offered inducements to rediscount for profit by putting proceeds into call loans; that large auras were being loaneci by so:a Boston banks on call in New York; that the Federal Reserve bank 21E4 no chance to exert direct pressure as these banks were not habitual borromers from the Federal Reserve bank; that an increase would probably not increase customets rates as the l-re borrowers could. borrow in New York at the lov.'er rates which would be prevalent there. Gov. Strong•finally said it miEht be wise for Boston to increase just before acme meeting of the directors of the Federal Reserve Bank of New York, to be followed in successive weeks by Phila. and. Clevelarti; that this would create a doubt in the inind.s of speculators each W99:k as to ,hat New York would do and ,vould In'obasly have a sobering effect on the stock market; that later, New York could necide what action to take. Gov. Strong said. acue action must be taken as he saw some signs of speculation in canmodities. As a result of the discussion a final understanding_ was reached that the above arrangeriont should be carried out. All agreed to this except possibly Cunningham. Oct. 27, 1925. 29, 30. The Board met to consiier Boston's applicaticn for increase from 3111 to 451,3, in accordance with the understanding reached last week at the conference with the Open Market Investment Committee. Janes moveci to take fran the table the Boston application. Suddenly Cun.lingham read a resolution to the effect that the Federal Reserve Board vaald ap prove a rate of 4 for New York to take effect immediat ely. In answer to queations he atated that he meant to move, by the http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 58. Disomnt rates (Caritid.) resolution, that the 4% rate should be put into ef:.ect at once, euid at his sug•-estion, the resolution was slightly amended to make this clear. that New York was the place at His reason for the resolution which rate increases should begin. ' Dr. Miller said that as between rate increaseF, at Boston, Philadelphia and Claveland, and rate increase at New Yo4, he decidedly favored the latter, and that he shouli vote for Cunningham's resolution. Dr. Miller added that there was too much credit in the country end that New York should be forced to increase. C.5.H. asked if such increase would not customers rates and he said. No. CaLISA an increase in C.S.H. asked diller if customers rates were not high enough now and he said Yes. A,14.40V,41 James reminded Miller that the whole reached an accord at the Open Market Ccaamittee conference last week, as to the increase at Boston, Philadelphia and Clevelana. Miller denied this although, on questions, he admitted he had then said nothing to indicate any opposition to the plan. As a matter of fact, not only was an ciccord reached at the conference but it was there voted that Gov. C. and Gov. Strong should inform Sec. Mellon of the conclusion reached, and this vote was unanimous, except possibly as to Cunningharra, of which C.S.H. has no clear recollection. Mina'finally stated that if Cunningham's motion were defeated he would vote for the increase at Boston, Phila. ant Cleveland. Cunningham's motion was then voted on and a.efeated Aye: No: Miller, Cunningham Gov. C., JEces and C.S H. On motion of Jalle8 the Boston applica tion was taken from the table and approved. Cunningham alone voted No. Nov. 6, 1925. 31, 32 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 59. Discount rates (Cont'd.) The qaestion then arose as to when the Boston rate should become efftsctive. James and C.S.H. favored at close of business today, Friday, the usual practice. Gov. C. instated on close of business on Monday and intimated he might change his vote if this were not done. We tried to call up Gov. Harding, but he was in New York not to return until Monday. We all thought he should be present when the rate increase took effect so we voted tome it effective at close of busir.ss on Monday. Miller at first objected sug6esting that there might be a 'Ilea." if the data were put so far ahead. Gov. C. said nothing as to the attitude of Sec. Mellon but C.S.H. assumed he was favorable as Gov. C. and Gov. Strong had been directed to inform him at the close of the Open Market Committee Conference. Nov. 6, 1925. 32, 33. Gov. Strong told C.S.H. this morning that he went over the whole matter of the Boston rate understanding with Sec. Mellon who fully Nov. 7, 1925. 33 approved it. The Board today, Wednesday, approved the application of Cleveland to increase to 4%, to take effect at close of business on Monday. C.S.H. and Miller voted against holding it up until Monday. Nov. 11, 1925. 35 Philadelphia increased to 4% under 4pproval of Federal Reserve Board. Nov. 20, 1925. 41 Board held conference with Open Market Investment Comlittee to determine whether to replace, as recanmended by Committee, Or to let run off the 311 millions of Govt. securities maturing Dec. 15. Miller favored an immsdiate sale of 50 millions. Gov. Strong urged replacing the 38 millions. Gov. Strong said Miller favored deflation, pure and simple. Gov. Strong said that stock speculation was now under control; that stock prices were not Abnormally above the 1913 level, allowing http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 60. Dis:ount rates (Contid.) for the 50% increase in prices of all commodities; that production was ire reasing and prices fairly stabilized. Gov. Strong said. customers rates were not low, but really were high; that the deflation Miller wanted could be brought about only by an increase in discount rates; that Inch an increase would cause an increase in customers' rates; that it might bring about further gold. importations, and thus ifurther unstabilize Great Britain, ant, as well create uncertainty in domestic business. Gov. Strong said. his directors were a unit against any present increas3 in discount rates at the present time, although in course of time they might have to increase them; that the Bank of England must soon go up to 5%; that our rates and open market policy should not now be changed.. The other members of the Committee agreed with Gov. Strong. Dec. 1, 1925. 47, 48, 49, 50. The Federal Advisory Council at its meeting voted that no increase in discount rates was desirable. Dec. 1, 1923. 51 Mr. Wetmore, President of the Federal Advisory Council said at the meeting that the speculation in the call loan market had increased customers rates 1%. Gov. Strong disagreed. Dec. 1, 192'64s- 51 Balk of England increases discount rate to 5%. Dec. 2, 1924.S 55 Special meeting of Board. Gov. Strong said Open Market Committee wished authority to buy 15 ot 20 millions of Govt. securities because of large withdrawals frora N4N York by banks which had been loaning money on call loan market. Said that call loan mtes were up to 6%; that the New York banks had to meet the situation; that they had already rediscounted heavily and did not wish to increase their rediscounts because of the approaching Comptroller's call, and it was felt that liquidation would normally set in within 10 days or so. C.S.H. said Gov. Strong told him over the telephone that bulging interest rates on the call loan market might ultimately affect customers discount rates. Dect 21, 192). 65, 66 Gov. Strong tells C.S.H. over ,elephone sthat his request is based primarily on business conditions. Dec. 22, 1925. 66 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 61. Discount rates (Contld.) C.S.H. repeated at the meeting what Gov. Strong hid said. Board finally approved, Miller and Cunningham voting No. Dec. 22, 1925. 68 Board approves application of Federal Reserve bank of New York to increase from 3i to 4% effective Jan. 8. Jan. 7, 1926. 76 Miller says Gov. Norman told him when hare that the high call loan rates made the New York discount rates negligible and that he could not understand why the die cunt rates had not long ago Jan. 13, 1926. 81, 82 been advanced. Dr. Stewart came down from New York to discuss draft of annual report of Board. Miller objected toparts of it, saying the New York discount rate should have been increased long before it was. He bitterly objected to the reasons given in the report for not approving advances in discount rates. He particularly objected to statte.,ent that advances in discount rates might induce farther gold Imports. C.S.H. reminded Miller that Gov. Norman said that the high call loan rates threatened his gold and had made our discount rates negltgible. Dr. Stewart said that an increase up to 4% would put a higher base under the call loan rate and tend to keep it up, that it would also tend to Increase customers rates. ‘ N Miller said a higher discount rate would reduce call loans and the release4 credit would lower customers rates. Dr. Stewart dtd not agree with Miller. Mar. 2, 1926. 108, 109 Board meets with Open Market Investment Committee. Gov. Sjrrong spoke of business recession which has set in, and that we should be ready VJ buy more Govt. securities in the open market to ease the situation. Dr. Miller opposed this. Mar. 20, 1926. 125, 126 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 62. Discount rates (Contid.) At conference of Governors, Gov. Strong spoke of conditions in New York. He said the member balks were borrowing heavily fran the Federal Reserve bank, - about 142 millions; that a business rec3ssion had set in all over the country; that the heavy borrowings from th3 Federal Reserve bank tended to bring about a pressure for liquidation of cust aner s loans; that conditions in Europe looked bad; that there vas danger of a sudden increase of business recession; that we ought to begin and Iny Govt. securities to ease the money mErket; that this money would cane ba* to us through member banks paying off their rediscounts, thus enlarging their ability to loan to their customIrs. Mar. 24, 1926. 127, 128 Gov. Strong also said that lowering discount rates would merely assist the member banks in carrying their loans with the Federal Reserve bank, and would not make them pay them off; that the Committee were unanimous that between now and. April 15, in addition to replacing the Mar. 15th maturities, not to exceed 90 millions of Govt. securities should be bought. Mar. 24, 1926. 128, 129 Board finally approved. Mar. 25, 1926. 133 See - Open Market CanLiittee Board approvea application of Federal Reserve Bank of New York to lower discount rates from 4 to 30. April 22, 1926. 166 Platt said he dici not believe in it but Aould not vote against it. Miller was not present but said later that if present he would have voted against it as premature. April 22, 1926. 166 Drum, John 59, 60. See - Bianch banks -EEckles, Capt. 79 See - Whalley dge, Sen. Agrees to fight with sen. Glass o the end in the McFadden bill. Mar. 21, 1926. 126 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sa. Editorials Newton Baker sends C.S.H. aa editorial from the Cleveland Plain Dealer strongly advocating m.S.H.'s reaR,ointment. (See scrap boa) May 13, 1926. 187 Mrs. Cong. Kahn sends C.S.H. a copy of the sane editorial. May 13, 1926. 187 See also - Scrap bock; Sprin. Republican Eliot, Rev. S. A. Delivers addresb at Wilson memorial dinner. Dec. 28, 1925. 70 Mrs. Wilson thanks C.S.H. for sending her a copy of aleiess. Jan. 19, 1926. 91 C.S.H. reads address to Mrs. Wilson. Jan. 23, 1926. 94 Elliott, Edvvard Mrs. Cong. Kahn tells C.S.H. that she believes that Dr. Miller got his appointment on Federal Reserve Board from the fact that Elliott, the brother in law of the first Mrs. Wilson, was ordered to California for his health, and that Miller got a place for him in the University of California, ead gave him his house rent free, in Berkeley. May 6, 1926. 178 Elliott, Milton Tells C.S.H. that John Skelton Williams sericusly thought of bringing McFadden before a grand jury as President of the 1st Natl.Bank of Canton, Pa. for certain amicsions in the bank's accounts; that he believed there was good reason for this, but advised against it as, in viaw of the Riggs Bank suit, it would be claimed that he ASS persecuting McFadden. He said McFadden, as President, had made many bad loans to concerns in ihich he was interested, on his own indorseaent; that he borromed more than the 10% limit. He also spoke of a suit brought by McFadden against Williams alleging persecution and a conspiracy to wreck his bank; that the decision was hel4 up over a year by a state judge controlled by Sen. Penrose. (See Kane, Dept. Conptroller) http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 64. Elliott, Milton (Contld.) He said McFadden's bank recently forced him to resign and sued him for over $50,000 on his indorsement cf bad loans to enterprises in vthich he vas personally interested; that the bank finally petitioned him into insolvency; that his debts were t250,000 and his assets not over $50,000. April 29, 1926. 174 Esterline, Mr. Arrives at Geneva with Dr. Ruffin. Sept. 12, 1925. 1 Eustis, Mrs. William Has been at Johns Hopkins Hospital since her return from Europe. Nov. 15, 1925. 36 H.P.H. goes to Leesburg, Va., with Mrs. Wilson to lumat with Dec. 22, 1925. 69 Mrs. Eustis. Evans, Lawrence Tells C.2.H. that Mr. Call - a newspaper publisher in Washington told. him that Sen. Borah told him (Call) that President Coolidge told him (Borah) that he felt the U.S. should steer clear of the World Court, but that the pressure was so gceat he could not Oct. 13, 1925. 23 wi thstand it. Tells C.S.H. that Wile, the newspaper correspondent, probably a:3 near to Coolidge as any newspaper man, tdd him that Coolidge knew more of what people were thinking than any other President; that his only policy was to put his ear to the ground, find cut what the people wanted., and then proceed to do it. He also told Evans that he believed. Coolidge was getting ready to accept the League of Nations; that he saw evidences of' a wave of public opinion for it; that he was about satisfied that, in oppositing it, he had put his money on the wrong horse. Jan. 1, 1926. 72, 73 Tells C.S.H. that Cong. Luce, the other day, praised him very highly, saying C.S.H. deserved reappointment, and that what puzzled him was that there should. be any dcu.bt about it. May 15, 1926. 189 Examination Cctinittee, Federal Reserve Board. See - Branch banks; Mercantile Trust Co. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 45. -F- Fairchild, David We meat, at dinner with Mrs. Bagg, Geneva. Sept. 16, 1925. 6 Fedsral Advisory Council Gov. C. tells C.S.H. that the Council deprecated any increase in Oct. 13, 1925. 2?, 23 discount rates. Meeting of Council Nov. 30, 1925. 47 Voted, no ircrease in discount rates aivisable. Dec. 1, 1925. 51 Meeting of Council. Feb. 18, 1926. 107 Miller draft of letter to, asking anvice and assistance in muting or eliminating speculative loans. Mar. 11, 1926. 112 Tabled. See - Miller Federal Reserve Bank of New York Meeting of Council May 20, 1926. 200 Miller gives supper to Board and Council. May 20, 1926. 200 Alexander defends cal loan market Speaks of prediction of Glass, Owen,and C.S.H. in 1914 that Federal Reserve Act had divorced Federal Reserve money from call loan market. Sews in spite of these predictions the call loan market has grown enormously. He opposed Miller's suggestion as to amending Federal Reserve Act to rewire refusal of discounta to any bank carrying speculative loans and said cooperation between the Board, Federal Reserve banks, and the member banks would cure any loan abuses. He sail call loans were good seconlary reserves and that good banking prescribed using these before borrowing from the Federal Reserve banks. He said abuse of the redig:ount privileges were not frequent and could easily be checked. C.S.H. explained to him that in the early interviews to which Alexander referred, what Glass, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 66. Federal Advisory Council (Cont id.) ) Alexander defends call loan market (Co Owen and he had in mind, was that under the old. law country banks could and did mass 3/5 of their requir ed reserves in the N.Y. banks; ‘thich loaned them in the call loan market, and thus a large part of the fixed reserves of these country balks consisted. of call loans on the N. Y. stock exchange; that under the Federal Reserve Act all fixed reserves had to be in gold. and. ultimately ;vere coralled in the Federal Reserve banks; that the Federal Reserve banks could loan these reserves (over the 35% required reserves) just as could the N. Y. banks under the old law; and that while the N. Y. banks under the old, law could loan these reserves on call, the Fe-teral Peserve banks could. loan then only on eligible paper; that in 1914 no one denied that the ccu.ntry banks could make deposits with their correspondent banks in N. Y. but they could only so deposit their surplus funds and not their -required reserves. Mr. Alexander entirely agreed vgi. th C.S.H. as to this. Mr. Vogel, of Kansas City, a member of the Council, told, C.F.H. that while they all liked Gov. C. they felt he knew little about banking and was not fit for the job. He also said. the last 3 or 4 men appointed were not big enough men for the job. - May 20, 1926. 201 Federal Council of Churches Mr. Sweet ear tells C.S.H. that the, is simply an adjunct of the Republican machine. Sept. 13, 1925. 4 Federal Reserve Act Glass raises no objection to proposed anendment authorizing member banks to give direct notes to Federal Reserve banks, secured by eligible paper, but not by Govt. securities, up Jan. 6, 1926. 75 to 90 days. C.S.H. and Platt report to Board a draft of anendment to Federal Reserve Act as above. This had been suggested by McFadden and approved by conference of Governors and Federal ReserV3 Agents. Warburg also approved it with certain suggesticns. The Board inserteci a clause, - subject to conditions, restrict .ons, imposed by the Federal Reserve Board, so as to have complete control. This privilege it was stated, must be availed of chiefly by the smaller banks-, *itch ncw prefer to bcrroN frap their http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Reserve Act (Ccnt'd.) corresponients, pledging say 120% collateral en their notes. They do not like to borrow from the Federal Reserve Bank for they can only rediscount the particular paper they offer, aid if acme technical fault were found. in any note it might take some time to correct it and meantime hey could. not get the benefit of the rediscount. The Board. felt that if they could. give a direct note with a pledge of say 120% eligible paper, any technical defect in any one note woad not delay the redivcount ard. the anendment would result in the banks more largely availing themselves of the rediscount privilege. Jan. 8, 1926. 76,77. C.S.H. moves approval of the anendment. Before consi lerati on of C.S.H. s amendment, Miller moved an amend= t to Federal Reserve Act abolishing 15 day collateral notes. Failed by a tie vote. Aye - Gov. C., Miller, Cunningham No C.S.H., Platt, James Jan. 8, 1926. 78 It was finally agreed to reconsider this vote and to take it up, with C.S.H.Is rnoticri at a 1\111 meeting "then Sec. Mellon could be present. Jan. 8, 1926. 78 Board took up Miller's motion to abolish the 15-day collateral note. Defeated.: Aye - Miller, Cunhingham No - Gov. C., C.S.H., Platt, Cccrpt. of Currency. Jan. 13, 1926. 80 Gov. C. reversed his vote and Miller tried to convince him how illogical his ccurse was, but to no avail and much to amusement of all. Gov. C. maid he thought these notes were bad, bat had decided to vote against repealing them. Jan. 13, 1926. 81 Sec. Mellon sent in word, that he was absolutely opposed to Miller's amendment. Jan. 13, 1926. 81 C.S.H.1 s amendment was then taken up and passed.. Aye - Gov. C., C.S.H., Platt, Cunningham, James Compt: of Currency No - Miller Jan. 13, 1926. 81 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis es. Federal Reserve Act (Contid.) Col. House's connection with framing th Fedentl Reserve Act, and C.S.H.'s talk with Sen. Glass abrut it. April 4, 1926. 148, 149, 150. See - Glass Ccrnptroller of Currency tells C.S.H. that Sec. Mellon is much disturbed over Miller's suhhestions to Banking and Currency Conenittee as to mending the Pectoral Reserve Act so as to prevent Federal Reserve banks frau discounlng paper for banks having speculative May 14, 1926. 188 loans. Alexander, of Federal Advisory Caincil, opposes Miller's suggested May 20, 1926. 200 amendment. See - Miller Federal Reserve Bank of Atlanta James says if Boston rate is increased Atlanta will also want to increase her rate. Oct. 16, 1925. 25, 27 Also 167, 168, 175, 176, 189, 190, 193, 194, 195, 198, 199 See - Cuban Agency Discount rates McCrary Newton, Federal Reserve Agent Wellborn, Gov. Federal Reserve Bark of Boston C.S.H. talks over application for increased rates with Curtiss and Oct. 12, 1925. 22 Gov. Harding. Also 24, 25, 27, 26, 29, 33, 199 C.S.H. delivers address before stockholders meeting. Oct. 21, 1925. 28 C.S.H. attends directors meeting. Oct. 21, 1925. 28 Federal Reserve Board approves increase in Boston rate from 3i to 4%. Nov. 6, 1925. 32 See - Bomnan Cuban Agency Disc mint rates http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 69. Feieral Reserve Bank, Chicago secretary Board d.eelines to approve appointment of Olsen, ccnfidential of Gov. McDougal, as Assistant Secretary of the Board of Secretary Directors on the ground that the Secretary and Assistant should. be taken from the Federal Reserve Agents side of the bank. had no C.S.H. and Platt took the ground, that the Feder& Reserve Board for choose power to detenuine whom the Board of Directors should a over Secretary or Assistant Secretary, ani pointed out that year ago our Board approved an increase in OlsenIs salary for the express purpose of enabling him to act as Assistant Secretary in addition to his other duties. Vote: No - C.S.H., Platt Aye- Gov. C., James, Miller April 6, 1926. 146, 14', 146 Board modified a letter prepared in accordance with above vote so as to cmit disapproval of appointment but leaving in a statement that the Board adheres to its policy that the Secretary and Assistant Secretary should be taken from the Federal Reserve Agents side of the bank. It vs pointed out, without avail, that 6 of the banks now had secretaries not fran Federal Reserve Agents side of the bank. Vote: Al] Aye except C.S.H. arid Miller vtho voted No for different reasons, however. C.S.H. voted No because he believed the Board had no power to dictate in this way. Miller voted. No because he believed the appointed should be absolutely disapproved. April 8, 1926. 152 Federal Reserve Bank, Cleveland. Agreed that Boston, Cleveland ani Philadelphia should advance discount rates before New Yozis. Oct. 16, 1925. 24 Oct. 27, 1925. 29, 30, 31, 32 Board approves increase from 3* to 4% for Cleveland. Nov. 11, 1925. 35 See - Discount rates Federal Reserve Bank, Nev; York Gov. Harding tells C.S.H. that, does not object to Boston putting up its rates but that if Cleveland and Phila. did also it might thrum a heavy burden on N. Y. Oct. 12, 1925. 22 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis _ 70. Federal Reserve Bank, New York (Oont,d.) Opposes increase in discount rates from present Oct. 13, 1925. 23 Oct. 16, 1925. 24 rata. C.S.H. tells Gov. Heird.ing that N. Y. by direct presstr e held the situation well in hand. Oct. 19, 1925. 2'7 Gov. Harding told Board that if Boston put up its rates, the lower N. Y. rate would enable large borrowers in Boston to borrow Oct. 2?, 1925. 29 in New York. Gov. Strong said. direct pressure cculd nct &loosed in N. Y. unless the Federal Reserv '3 bank refused to discount for banks carrying speculative loans, which would mean rationing of credit which Oct. 27, 1925. 29 would be disastrous. Gov. Strong finally au.ggested putting up rates rit. Boston, Philadelphia and Cleveland, in successive weeks, just --)ef ore the directors meetings of the Federal Reserve Bank of New York. Oct. 2'7, 1925. 29 Cunningham moves to put in a rate of 4% at New York to take effect Nov. 6, 1925. 31 at once. Defeated: Aye: No: Miller and Cunningham Gov. C., James and. C.S.H. Nov.. 6, 1925. 32, Board votes authorityto Federal Reserve Bank of New York to buy 5 millions of billsfrom the Bank of Belgium, in behalf of the 12 Federal Reserve banks. Unani arms. Nov. 25, 1925. 45 See - Strong, Gov. Board votes to increase FecteralReserve Agent Jay's salary to $40,000 and Harrison's salary to $30,000. Dec. 15, 1925. 63 The Federal Reserve bank has been operated this year under the new buil-ding for less than last year under the old. building, whereas we all thought it would be more. Dec. 15, 1925. 63 Board refused to approve proposed salary of $18,000 for Manager of Buffalo branch and substituted $15,000. C.S.H. alone voted No. James did not vote. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -777'777:7- 71. Federal Reserve Bank, New York (Contld.) C.S.II. begged Board. to her New York before deciding, but without avail. Dec. 15, 1925. 63 Before i-assing upon request of Open Market Investment Corenittee for authority to buy 15 or 20 millions of Govt. securities, Gov. C. told the Board that the directors of the Federal Reserve Bank of New York bad unanimously No ted to direct Govt. Strong to buy from 15 to 18 millions of Government securities for account of the Federal Reserve Bank of New York. Dec. 22, 1925. 68 Board approves application of Federal Reserve Bank, New York, to increase 1i scount rates tram 3i1 to 4%, effective Jan. 8. Jan. 7, 1926. 76 Gov. C. says let Natl. Bank, New York, borrowed 115 Winona from Federal Reserve Bank, New York, on its note arii loaned, it on stock exchange at fran 6 to 7%. Jan. 8, 1926. 78 Miller says Gov. Norman, while here, told him the high call loan rates in New York made the Fedlral Reserve discount rate negligible, and. that he could not see why the New York Federal Reserve rate had. not long ago been increased.. Jan. 13, 1926. 81, 82. Sec. Mellon objects to action of Board. taken at Miller's suggestion, that Federal Reserve Agent Jay report to the Board all borrowings from the Federal Reserve Bank of New York exceeding 2 millions, to be reported. weekly. It was explained that this called for no further information from the New York member banks, but that the Federal Reserve Agent would. merely analyze the gross borrowings now reported by him to the Board., segregating loans over 2 millions; that it was merely for the Board's intonation and that the member banks would not necessarily even knot/ 1;sf it. Mar. 11, 1926. 119 Board met to consider draft of a letter to Federal Advisory Council asking for its advice and assistance in an effort to curb or eliminate security loans in the New York call loan market. Sec. Mellon presided. Sec. Mellon s,tid he feared.. it might imperil the extension of the Federal Reserve bank charters in the McFadden bill, if it became known that the Federal Reserve Board, was contemplating radical control over stock exchange transactions. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 72. Federal Reserve Bank, New York (Cont'd.) C.S.H. said. that, vkile he did not object to asking the Council what control it could. exercise in respect to excessive use of Federal Reserve credit for security loans, this letter went much farther in that it stated that the Board is giving much thought to the development of a procedure which will check or altogether eliminate the misuse of credit facilities; that it seemed to imply that the Federal Reserve banks could and would, refuse discounts for banks having speculative loans. C.S.H. said. it was very doubtful legally whether such action could be taken by a Federal Reserve bank; that member bankg were not solely commercial banks, nor were their reserve deposits made solely against commercial loans; on the contrary, these deposits were the reserves against every lawful 7 Jan a bark could make, whether commercial or speculative; that the "milks had to keep up these reslrves or be subject to a penalty; that we should carefully examine into our Power to control abuse of Federal Reserve credit through direct pressure, without resting to the drastic procedure of refusing rediscounts; that if it leaked cut that the Board contemplated. destroying the call loan market it would cause great damage. moved to strike out sevlral paragraphs. Miller moved to approve the liter as originally drafted although he did not object to having it wended. C.S.H. moved to lay it on thi table, to be taken up later after the recharter question was settled. All voted Aye except Cunningham, who voted No, and Miller, who did. not vote. The Comptroller of Currency was present and voted Aye. (see Vol. 156 scrap book for copy of letter.) Mar. 11, 1926. 119, 120 to 123 See - Mallon Open market Discussion of recommendation of Open Market Committee that system account of Govt. securities ma,v be increased up to April 15 to 300 million dollars. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ?a. Fed'iral Reserve Bank, New York (Ccntod.) C.S.H. said he believed the Federal Reserve Bank of New York or any Federal Reseme bank could purchase Govt. securities in open market as a matter of right, subject only to regulations of the Federal Reserve Board; that the Board has only published general regulations but no regulations specifically limiting amounts Which may be purchased. Mar. 25, 1926. 131 Discussion of xtion of Federal Reserve Bank of New York in offering Warren of our Research Division a salary of *6000 in the Foreign Department. Finally approved. Aye - Gov. C. , Platt, C.S.H. No Mill3r, James April 20, 1926. 163, 164, 165, 166 Board approved reduction of discount rates of Federal Reserve Bank, New York, from 4 to 316. April 22, 1926. 166 Jame urges discontinuing Boston and Atlanta in Cuba and substituting Federal Reserve Bank, N. Y. April 30, 1926. 176 See - Discount rates Open market Strong, Gov. Federal Reserve Bank, Phila. Philadelphia increased discount rates from 3i to 4% with prior approval of Federal Reserve Board, Nov. 20, 1926. 41 C.S.H. and Cunningham go to Philadelphia to attend conference group meeting. Dec. 7, 1925. 58 S30 Discount rates Federal Reserve Bank, Richmcrd Board gives Iriaring on proposed Federal Reserve branch in Southwest part of district. Jan. 15, 1926. 86 See - Branch banks http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Reserve Bank, St. Louis ation of attorneys for On application of,Board rules that compens Board for approval, to d reporte collecting claims must be e Court of U.F. had Suprem the altho Wyatt informed us that es or orficers, employe not were decided that such attorneys need not be them paid sation and gave opinion that compen 4, Federal Reserve Sec. under Board e reported to Federal Reserv Act. ry. Board final'y fixed a limit undr which no report necessa 106 105, 1926. Feb. 9, Federal Reserve Bank, San Francicco of Federal Sproule, a director, gppears before Board arguing status r. Reserve Agent and Govenao Nov. 19, 1925. 41 See - Perrin Sproule 8.44d Federal Reserve Board 444,4440* , aasaa‘*444 See - Branch banks LAA Brokers loans etarias 40‘44•4 4 e4A444#104 Cuban Agency c444. Toto eA•4A, Discount rates 44.4&24.44 Fedara Reserve Bank of Atlanta TI TI -Croim44 Boston II TI Chicago Cleveland It It New York 40A04 II II Philadelphia Gt 4 1Z.. II II San Francisco Hamlin, C. S. Jay, Pierre McFadden bill Member banks collateral notes. Stock exchange loans Vanierlip Vogel Federal Reserve notes King resolution as to. May 5, 1926. 177 See - Cuban Agency Wyatt Federal Reserve rediscounts See - Steak exchange Speculative loans Federal Advisory Council Miller Mllcti http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Federal Trust Co., Boston Ntaloney, President, speaks to Gov. C, about C.S.H. reappointment. May 12, 1926. 187 See - Maloney C.S.H. Reappointment Fernald, Sen. Hichborn says, is friendly to C.S.H. s reappointment. May 19, 1926. 192 First National Bank, Boston See - Cox Cuban Agency Wing First National Bank, Canton, Pa. See - McFadden First National Bark, New York Charles Norton, Secretary of President Taft, Cong. Andre said, w at one time engaged in negotiating a loan for Govt. of 100 millions from. Oct. 2, 1925. 16 Cong. Andrew sags Norton fixed matters so as to get a position under. Oct. 2, 1925. 18 Gov. C. says, borroArei 115 millions from Federal Reserv,_. Bank, New York, to loan on stock exchange at from 6 to 7%. Jan. 8, 1926. 78 Fitzgerald, John F. Tells Gov. Harding that Walsh wants C. S. H. to run for Governor. Jan. 6, 1926. 74 Tells Gov. H. he has just had an hour's t,alk with sen. Butler; that Butler asked him whom the Mass. Democrats would n cminato for Governor; that he told him C.S.H. wculd be if not reappointed on Federal Reserve Botird; that Butler did. not seem to like the idea and said C.S.H. had made an Ixcell ent mgriber and that he strongly favored his reappointm ent. Jan. 6, 1926. 74, 75 Gov. H. tells natt what Fitzgerald said. Feb. 15, 1926. 106 Florida banks 189, 190 See - Newton, Federal Reserve Agent http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ?G. Fosdick, Rev. Harry in Geneva. We hear idress of, at the Cathedral Sept. 13, 1925.3 Foster, John W. ing's hostility towards C.S.H. tells Ishii that he believes Lans father in law, Gan. Foster. his Japan came from the influence of 1925. 2, 3 12, Sept. for an audience with the C.S.H. tells Ishii of Foster's aamand ers of his Party, Emperor for himself, wifi, and °till!' memb 3 925. Sept. 12,1 which was refused. Fox, Austen G. the L. of N., but that he Dr. Shotwell tells C.S.H. that, favored as rather a joke. looked, an the Carnegie Deace Foundation . 8 1925 Sept. 17, France n pact may soon be agreed. Dr. Shotwell says the English4lrench-Germa . 8 1925 17, Sept. upon. the administration because of Cong. Andrew is varybitter agairst with the debt. its treatment of France, in connection 19 . 1925 2, Oct. on reached an agreement Richard Olney tells C.S.H. that Sic. Mell the Republicans on the that with Cailloux as to the debt but debt Commission would not agree. Nov. 7, 1925. 34 of the ultimatum said to have San. Owen calls on C.S.H. and speaks an and Gov. Strong, as a Norm been given to France by Gov. ce. condition of pecuniary assistan May 18, 1926. 191 See - Owen Frothingham, Louis teeship of Carnegie endowment. C.S.H. tlla, holt he propoaed him for trus April 18, 1926. 163 Frothingham, Rev. Paul Revere wnent. C.S.H. nominated,for trustee of Carnegie Endo . 163 1926 18, l Apri http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -G- Garfield Hospital for a gall bladder test. Dr. Ruffin makes appointmAnt at, Dec. 4, 1925. 56, 57 tt at. Had gall bladder tested by Dr. Merri Dec. 9, 1925. 62 Gavit, John Palmer Geneva. Mr. and. Mrs. Gavit dine with us in touch with Anna, and she After dinner she said she would gat in ge, not howlver, went into a half trance and gave us a mes3a hook test which very satisfactory. She also gave la a did not work out. (See copy). Sept. 13, 1925. 4 not to return rAtil The Gavits leave tomorrow for Cherbourg, Sept. 13, 1925. 5 Sunday. automatic writing. C.S.H. tells Mrs. Wilson of Mrs. Gavit's Sept. 17, 1925. 9 Scicily. Received letter from Mr. Gavit, from Taormiria, ws: folio there was a communication from Anna, as In it Gavit) L.L.G. Anna is here, that she is sitting near me. that feel I am very mare she is here and wishes to speak. I Anna (Invisible) Ask my Father Of course I wish to speak. This is Anna. ! speak and Mother if I ever loot an opportunity to Mrs. Gavit. She is smiling. Now I can se) her. Anna: I wanted This is a rare chance. I have waited a long time. it get n't to send them a Tharksgiving message, but I could sent you gh; through. But I did gat a Christmas message throu Gavit Mr. ng it by cable to Father and Mother. I kept telli How much I and Ars. Gavit, tADo, that I must send you word. Oh Father, you. to be you. You will never know how near I that you dear, how much there is for which I thank you. Much here. over gave me while on earth I have carried with me Mrs. Gavit. She is smiling again at something. There seems to be some stand what joke betwean herself ana her father; I don't under it is. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 78. Gavi t, John Palmer (Cont ) Anna: And I want to thank you for what you have done since I came over. You have done just right about everything, everything. Only don't forget about the Light. No cne in the whole world has such a Mother as I had, - no, have, Mother, have. I still have you, more than I ever hai you on earth. Talk to met just the same. You can help me more than ever. Your love and thoughts are like b3a,utiful clouds about rue. Dear ma, that scunds as if I were ALn angel. I t mean it that way. I have substance. Your thought has substance that touches me. And I want to tall you both, even if I do not get messages to you often in words, - that I am with you and taring to you. If you will listen quietly you ill know that I am speaAng to you. My love to you this New Yearmay it bring you gladness through the knowledge that we are still living together, and always. This is your devoted Anna, speaking to you. Mrs. Gavit. Wait, they want to Elva me a bock test for Mr. Haralin. don't geOrit I Anna: Father, take this:In the Library of the Washington hotz e - the roan with the most book shelves in it. There is a book shelf or shelves of books on the left hand side of the fire place. Counting the shelves from the bottan up, - one, two, three. I guess its three, it seems to be the third shelf from the bottom. Counting the b ocks in, fran the side of the fireplace, in. Mrs. Gavit: Anna :lays it is a tall took, it is the first tall book, not the first book but the first tall bock. Anna: Take it out, Father. Open it at random and you will know why I asked you to do it. Your eye will light upon my massage to you. Mrs. Gavit: I want to get this rigit Sanebody does say a tall bock. I cant get that out of my mind. Something there that is suggestive of Anna. Sane word or phrase or something. That's all for the Hamlins, Anna says, thank you very much. If it should be right, we will try agiin. It is very difficult not to be discouraged if it isn't right. Anna says that on the center table is a book lying - a book that mother and I used to read tog-ether, - that I an very fond of. Jan. 17, 1926. 99 to 103 (We could not verify this test as we no longer live in FarraElit Square and all of our books are storeci and we moved to the http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Gavit, John Palmer (Contid.) Lee House, where we all were living when Anna left for Bernuia. Nor was there any fire place in the Fanegut Square huuse in the foam where we kept most of our books.) Bartle received a letter from Mrs. Gavit date d January 20, Taormiria, Scicily. Among other things she said: "During Thanksgiving week, / felt repeated ly that Joe and Anna were trying to gat a message to you. I felt it, but could not git it down on paper, altho I am wire Anna was near me sever& times trying to send you sanathing doaat Thanksgiving. I was too auch occupied to get it..... Often when I was gaiet I got a message in my mina from Anna, "Send love to my parents," - repeatedly, and Jack rot the same, so I sent my cable. Then one eight when Jack and I were all alone, I laid dawn quietly and saw Anna ewe into the roam and sit down by me, immediately giving me the mesage we sent you. She want s to give you a book test, so w3 will try till we get one thro ugh right to you... I know Anna came that night." Jan. 20, 1926. 103, 104 Geneva We leave Geneva about 11 a.m., reac hing Berne at 3 p.m. Sept. 18, 1925. 9 Germany Dr. Shotwell that the English-French German pact maybe soon agreed upon; tat Germany will enter the L. of N. but not until the Assembly adjourned. Sept. 17, 1925. 7, 8. Gtbaon, Hugh We call an the American Minister, Mr. Gibson, in Berne, but he was away. Sept. 18, 1925. 10 Gillett, Sen. Cong. Andrew says, will never be Able to cast an independent vote in the Senate as he was there solely as the choice of Sen. Butler ani Stearns. Oct. 2, 1925. 18 C.S.H. tens Glass that the Wilson democrats disliked Walsh and voted for and elected Gillett. April 3, 1926. 141 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SO. Gillett, Sen. (Contld.) Platt says he *Oka to Sen. Gillett yesterday and that he strongly for C.S.H.'s reappointment. April 20, 1926. 166 Was C.S.H. writes Gov. Harding telling hiL. what Sen. Gillett said. April 25, 1926. 171 Glass, Sen. Offers no objection to amendment approved by Feder. Resorve Board authorizing member bank collateral notes secured by eligible paper (but not by Govt. securities) up to 90 days. Jan. 6, 1926. 75, 77 Mr. Whalley, Ex-Congressman, at lunch at Mrs. Coglin's, tells C.S.H. that Glass and Cong. Byrnes lunched with ran. Pershing at Chaumont at the time when the armistice was tint being discussed.; that Gen. Pershing was vehemently in favor of taking sedan and marching to Berlin; that Pershing admitted that it would mean the death of at least 250,000 American soldiers; that nevertheless he wanted to do this in order, as he emphasieed,to turn the American soldiers loose on the women of Germany and give them a taste of what the Germany army had done to the women of Belgium and France. Whalley said Glass had written down in his diary ovary word Pershing said, and Cong. Byrnes confirmed it. Jan. 10, 1926. 79, 80 Mrs. Wilson objected to employment of the Secretary of son. Glass to write a chronological table of events in President Wilson's life as he had once prepared a sketch of Mr. Wilson which she found full of errors and asked him not to publish it, when ha did notwithstanding. Jan. 25, 1926. 95 Mr. Wile tells C.S.H. that he has sent Glass's editorial on Bishop Lawrence's eulogy of Lodge (written by C.S.H.), to the Pulitzer prize jury, - that he thought it was one of the most brilliant pieces of editorial writing he hal aver seen and that it would be a formidable competitor for the $1000 prize. Feb. 4, 1926. 97 Glass tells Sec. Mellon that he and sen.Pepper would try to incorporate a provision in the McFadcen bill extending perpetually the charters of the Federal Reserve banks. Mar. 11, 1926. 119, 120. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis $1. Glass, Sen. (Contld.) Glass tells Gov. Harding not to mention C.S.H.'s reappointment until after the Penna. primaries; that Mellon was fighting for Pper; that Sen. Reed (Pa.) had some time ago ccmplained that Pa. was not represented on the Federal Reserve Board or other CanLissions; that there lae danger that Mellon might make some pro:lase as to C.S.H.'s place to help Pepper. Mar. 21, 1926. 126 Glass told Gov. H. that Pepper was very Shifty, - like a flea; that Edge agreed to fight with him on the McFadden bill, but that Pepper was very evasive. Mar. 21, 1926. 126 Glass told C.S.H. that he had read on p. 166 of Col. House's memoirs that David Lawrence asked House to let him tell the public &out his activities in "making the bill," but that "the colonel was obdurate in his insistence upon alien e;" that he had just written Lawrence asking him to be good enough to tell him just what Col. House had done in "making the bill." April 3, 1926. 140, 141. C.S.H. tells Glass about Mr. Bowman's call on him and he was pleased.. He said he wanted to have a frank talk with Sen. Butler it did not want to do it without C.S.H.'s consent. C.S.H. thoroughly approved and suggested also that Glass see Sen. Metcalf.of R.I. Glass said he would see both on Monday. April 3, 1926. 141 Glass said he was fearful that Sen. Butler might want to have sane Reyullican politician appointed. C.S.H. explained to Glass the political situation in Mass. saying that Walsh was opposed by the Wilson Democrats, otherwise he would have beaten Gillett; that Butler's only hope of election next fall rests on these Wilson 0Democrats; that if C.S.H. were to take part in the campaign, he probably could induce these Wilson Democrats to support Walsh which would gravely imperil Butler; that Butler must realize this and C..H. believes would prefer to have C.S.H. remain quietly in Washington. April 3, 1926. 141, 142. Glass said he did not see how he could vote for Walsh if he lived in Massachusetts, but he thou4it Butler would certainly want C.S.H. kept in Washington out of the campaig0. He said he should tell Butler that my name should be sent in at once so it could be confirmed before Congres3 adjourned. April 3, 1926. 142 Sen. and Mrs. Glass (yAlled Glaos said he lculd sea Butler tomorrow and would also see Sec. Mellon and urra C.S.H. immediate appointment. April 4, 1926. 148 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis U. Glass, Sen. (ContId.) Glass was very bitter about Col. House's book. C.S.H. told him of the foot note cn page 50 stating that Wilson ultimately accepted House's arguments for centralized. control of banking which materialized in the Federia Reserve Board. Glass said the fir at draft of the Federal Reserve Act contained no provision for a Federal. Reserve Board; that he visited Wilson at Princeton on Dec. 26, 1912, the day after Christmas, and that they then agreed to have a Federal Ressrve Board; that at this time House did not know Wilson intimately and could not have made such a suggebtion to him up to that time. House's first entry in as book referring to any talk with Wilson about the Federal Reserve Act was on Jan. 8, 1913, at which time he said Wilson agrred to put him in touch wi'.21 Glass, Chairman of the Banking and Currency Cannittee, and he said, "I Eel to work out a measure which is to be submitted to them. ft At this aate Wilson had accepted the tentative draft brought him 'by Glass on Dec. 26, 1912, and a Fedlral Reserve Board. had ben arranged for. The draft in final form was approved. by Wilson in Feb. 1913, at Princeton. (See Willis's book.) House records', page 161, that he talked with Glass on Mar. 24, 1913, after the inauguration and said, "I urged him not to allow the Senate Committee to change what we had agreed upon in any of its essential features.“ House mut.It have been referring to the second draft which Willis says Alas approved about Jan. 15, 1913, made as, the result of has.rings before Glass' Cczamittee, or to the third draft prepared between March and dlay, 1913, on McAdoo's suvestions which were all abandoned, or to a fourth draft made to adopt Bryan's suggestions. (Willis, page 148) In all of these drafts a Federal Reserve Board was provided. for. If HC11.36 really persua led Wilson to have a centralized Federal Reserve Board, it must have been prior to Dec. 26, 1912, and there is no entry in his book as early as this. Glass said House later was given an abstract of the Act which he talked over with New York bankers 3nd later a copy of the ccopleted draft inich he took abroad with him andshowed to Warburg who criticised it frcta Switzerland. April 4, 1 926. 148, 149, 150. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Glass, Sen. (Contld.) C.S.H. sends Glass a copy of Mr. Bomaan's letter of April 5, 1926, telling of his talk with Attorney General Sargent. April 7, 1926. 151 Sen. Glass writes C.S.H.: U. S. Senate April 8, 1926. "Acknowledging yours of April 7, / am gratified to know that Attorney Gennral Sargent will soon take up your matter at the White House. "I have talked with both Senators Butler and Metcalf. The former stated that he had heard that theta have been some discussions at the White House of the appointment and had also heard that you would, ani again that you would not be selected. He added, "No importance should be attached to the lAtter raport." He did not explicitly state his oln position, but invited my opinion of your qualifications and usefulness, which I gave unmistakably. "San. Metcalf, an the other hand, was unqualified in his advocacy of you and said he very earnestly hoped you would be reappointed. If you still think it advisable, L will seen an opportunity to talk with Mr. Mellon as soon as he returns to Washington?" April 8, 1926. 155 C.S.H. euggestx to Sen. Bruce that he talk with Sen. Glass. April 10, 1926. 156 C.S.H. writes Glass that he has seen Sen. Bruce and miggented to him to see Mellon and the President, but C.S.H. saya he leaves the whole matter with Glass. April 11, 1926. 157 Glass writes C.S.H. that Sen. Bruce has conferred with him and they have arranged each separately to call on the Prasidnt and urge C.&.H.Is reappointment. April 13, 1926. 157 Sen. Bruce writes C.S.H. that he has seen the President and that when told that Glass was very desirous that C.S.H. be reappointed, he pricked up his ears and said, "Is Carter Glass for him?" exhibiting a decided qiickened interest; that he told him Glass certainly was strongly interested and that he had talked with him about the matter only a few days ago. Sen. Bruce added that he had suggested to Glass to see the President as soon as possible and he said he would. April 16, 1926. 160, 161. See - Bruce. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Glass Sen. (Contld.) C.S.H. calls up Glass, Who said he had talked with Bruce and he would call on the Presi it today or early next Neek. C.S.H. told Glass about the President's inquiry as to his health and explainea about his neuritis& and having his teeth extract that he was thoroughly examined in Boston; that every organ in his *body was X-rayed; that thS report was that everything was normal except that the X-rays showed two ulcerated teeth which were extracted, ana since than the neurities has disappeared. Glass said he would explain all this to Coolidge aria that I ihould not worrj, - that he would take care of the matter. April 17, 1926. 161, 162 C.S.H. writes Glass that the Board will undoubtedly 4pprove the Senate compromise on the McFadden bill, as C.F.H. understood Glass wanted us to do, and sent him a copy of a memorandum prepared by him showing just what the compromise was. April 23, 1926. 170 Mrs. Wilson asks C.S.H. if she can speak to Sen. Glass and tell him how deeply she is interested in C.S.H.'s reappLintment. C.F.H. begged her to do it. April 26, 1926. 172 C.S.H. receives a letter fram Glass dated April 27th: "Before going to Virginia I called on the President in your behalf and may say that his attitude seemed very encouraging, although he dia not outright commit himself. He asmed me, as he tid Sen. Bruce, about your health, and I an sure I satisfied him completely on that score. Moreover, I tried to impress him with the desirability of early action in the matter. As soon as I conveniently can do so, I will see Mr. Mellcn." April 28, 1926. 173 Goebel, P. W. Tells C.S.H. evegrbody likes Gov. C. but they do not consider him up to the standard of the Federal Resrve Board; tat the Board pays too much attention to non-essentials. May 20, 1926. 201 Gold exchange standard Gov. Norman tola lae Board he did not favor a controlled gold stanaard; that it was good only for poor countries, and that he hoped Austria and Hungary would soon adopt a real gold standard. Dec. 31, 1926. 72 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 85. Goldanwaiser ewed Tells C.S.H. that Gov. C. did not realize he was being intervi ion. depress .vhen he zna.d.e the statement about business April 1, 1926. 139 Government securities Board Wyatt tells C.S.H. that regulaticns of the Federal Reserve right the to nt precede uncter Section 14, are not a corrliticn Open the in ies securit of a Federal Reserve bank tr. buy Govt. cally specifi ions regulat market; that the Board had made no buy limiting the rimount and. that therefore they had a right to 68 Dec. 22, 1925. than. Federal Reberve Bank Gov. C. told the Board that the directors of the Gov. Strong to direct to of New York had unanimously voted in the open market. ies buy from 15 to 18 millions of Govt. securit 68 Dec. 22, 1925. See - Open market Governor and Chairman, Federal Reserve banks Francisco Mr. Sproule, Class C Director of Federal Reserve Bank of San widresses Board cn relative statute of. Nov. 19, 1925. 41 Governors c cnf Grano e. Mar. 22, 1926. 127 Gov. Harding tells C.S.H. that the members of, were unanimously in reappointment. favor of C.S.H. April 1, 1926. 140 Grand Hotel, Metz We stay at. Had A good roan ana bath for 60 French francs - $3 per day. Sept. 19, 1926. 10 Grange, Natl. .H. gives lunch to Louis J. Taber, of Columbus, Ohio, Master of Present: Sec. Jardine, Carl Vrccrian, Platt ani Cunningham. C.9 told theri of the 86 lb. Hubbard squash he raised last flamer. Jan. 23, 1926. 94 C.S.H. suggests to Sen. Bruce to tall the President he is an active April 13, 1926. 157 member of the Grange. Grattan, !tn. C.S.H. givaa Mrs. Wilson an article in NAN Bedford Mercury by Mr. Grattan attacking the Walter Hines Page myth, vvi-J.ich Sept. 12, 1925. 1 Hirriet Hardin sent us. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 86. Griat Britain C.S.H. feels Gov. Strong is as much impressed with the effect of indreased discount rates on, as upon U.S. Oct. 13, 1925. 23 See - Norman, Gov. Greco-Bulgarian dispute Briand says the Council of the L. of N. dedicates the happy ending of the, to the memory of WocdrowWilson who conceived and Nov. 26, 1925. 46 realized the L. of N. 95 Graley, Gen'i'al See - Tucker, H. St. George Gray, Lord Mrs. Wilson tells C.S.H. that Mr. Wilson did not want to meat, when he cane to U.S. an his last visit; that she belie-as but does not know that he was angry with Lord Grey bec_stse of the manner in which hi treated the peace proposal of 1916. Nov.29, 1925. 47 C.S.H. sends Mrs. Wilson volume 2 of Lord Grey's book. Mar. 1, 1926. 106 Grosvenor, Gilbert. We meet Mr. and Mrs., at dinner at Mrs. Bogg's in Gen3va. Sept. 16, 1925. 6 Gulick, Dr. We meet, at dinner with Viscount Ishii in Geneva. Sept. 12, 1925. -H- Hackney, Walter 153 See - Credit Bureau Hale, Mrs. Chandler C.S.H. calls on. Nov. 7, 1925. 34 Telephones to C.S.E. to cane in sod have tea, which he dirt. Nov. 25, 1925. 46 Hale, Sen. Hichborn tells C.S.H. that, is friendly to his reappointment. May 19, 1926. 192 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hamlin, Anna We explain to Mrs. Wilson about Hendrick Pruyn and his letter to Sept. 17, 1925. 9 her about Anna. William Rice said he had recently met Gov. Norman of the Ball* of Longland, in Albany, at Mr. and Mrs. Wadsworth's; that he spoke much of Anna and his acquaintance with her in Br Harbor. out Gov. Norman's 1ack of courtesy to her Bertie told William Rice and to Anna when they were in Lando* in 1923; that they called up Gov. Norman at the Bank and Nazi', given his Secreta:y; that they said they would like to be shown over the Bank of England and left their address with the Secretary, .ho promised to communicate with then after mentioning their request to Gov. Norman; that they hlard nothing more fron him until 10 days later when a card of Gov. Norman was left at tl-.4ir apartment, that this endei the matter. 'Then Anna was ill in Bar Harbor, Gov. Norman saw her almost every day and was very fond of her and She of him. When Gov. Norman was last in Wallington we gave him and Stanley Baldwin a large official dinner and ha also took family dinner with us on several occasiona. C.S.H. remembers telling him how Anna wanted to see the Bank of 1.13ngland when next she was in London, and he replied to be sure and let him know when they came, and hi ./ould be only too happy to show them over the Bank. His lack of caxrtasy was in marked contrast to that of Mr. and Mrs. Baldwin who showed them marked courtesy an-I attention, inviting them to their house, or at least Anna, to lunch, invited them to Downing Street to see the parade an the King's birthday,and talked with them arid sat with them in the Throne room while thy were waiting to be presented. Anna was terribly disappointed as she had loored WI Gov. Norman as a good friend. When Gov. Norman was in Washington in December, 1925, C.S.H. was perfectly courteous to him, but gave him no chance to talk with him, and wham the conference was over, C.S.H. at once bade him good-bye, in a scmewht formal manner. He acted as if he wanted to sky something about Bertie am l Anna but C.S.H. gave him no opportunity. Jun. 15, 1926. 86, 67, 86. Anna left 1111 one year ago today for Bermuda, - Thursday, Feb. 19, 1925, - the last time we saw her alive. Thursday, Feb. 18, 1926. 107 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 88. Hamlin, Anna (Cont'd.) We rpent the day, Sunday, quietly together, thinking of Anna. Sunday, April 25, 1926. 171 This is the anniversary of Annals death. April 26, 1925. She died Sunday, In the morning at 9:30 we drove to St. Agnes Church, Washington. Marion Oliver had arrangei with her clergyman, Father Anderson, to have a special service of prayer in memory of Anna. Marion, Bertie and C.S.E. alone were present. We received a large number of telegrams, letters, and. flowers. In the afternoon,Mrs. Wilson called for us and tool us to a, long drive in the country. She also asked us yesterday to dine alone with her tonight, but we did not feel up to it. Monday, April 26, 1926. 171 4 Sec. Mellon tells the Comptroller of the Currency that Anna was one of his daughter Ails& s dearest friends; that he saw much of her and admired and loved her, and that, if there were no other reason, his affection for Anna would make it impossi 31e for him to recommend any al3 31sa than C.S.H. for appointment to the Federal Reserve Board. May 11, 1926. 185, 186 Sea also - Arnold. Gavit Lodyard Hamlin, C. S. Delivers adciress t Congregational Church, Mattapoisett, on trip to Europe and L. of N. with lantern slides. Oct. 22, 1925. 29 Dines and plays pool with Mrs. Wilson. Nov. 15, 1925. 35 Sends flowers to Mrs. Wilson on death of her mother, Mrs. Bolling. Nov. 21, 1925. 42 Writes President Coolidge as to Austen Chamberlain's address on World Court. Nov. 25, 1925. 43 G098 to Phila. with Cunningham to attend conference group meeting. Federal Reserve bank. Dec. 7, 1925. 58 ' )/1.434/-e444/ 1.44 412.4.4„)-1•44.4.-.. 44.44-411 tio4•44-104.10( CAA0444.44+44 , 1444-444.4, 1)24.40 " 1 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 89. Hamlin, I S. (Contid.) Mrs. Wilson takes us to drive and later to tea. Dec. 13, 1925. 62 Moves to dissolve open market canlittee of Federal Reserve Board ani to °mistier all such questions in Committee of Whole. Passed. Jan. 5, 1926. 74 We dine with Hrs. Wilson and Bertie reads “Pa, Ma, and Mae." Jan. 13, 1926. 82 Gives lunch at Cosmos Club to Louis J. Taber, of Columbus, Ohio, Master of the Nati crial Grange. Jan. 23, 1926. 94 See - Grange Mrs. Wilson takes us on long drive. April 3, 1926. 140 C.S.H. explains his interview of effect of Federal Reser ve Act cm call loan market, at a sapper given by Dr. Miller to Federil Advisory Council. May 20, 1926. 20() See - Federal S3.visory Council Reappointment See also: Annual report Hoover, Sec. Arnold, Mrs. House, Col. Branch banks Ishii, Viscount Brvc e, Sen. Ledyard, Mrs. Oxrnegie Board Long, Br eckinridge Credit Bureau Mellon, Sac. Crissinger, Gov. Miller Cuban Agercy Newton, F.R.A. Curtiss, Federal Reserve Agent Olsen Discount rates Open market Federal Advisory Council Perrin, F.R.A. Gavit, John Palmer Votes Glass, Sen. X-ray Tramlin, Anna Wilson Harding, Gov. Ham1in, Edward Appears before Army Engineer Board in Washington aEk lug for a survey of Dorchester Bay. Dec. 22, 1925. 69 The Board of Engineers reports to Chief engineer that Dorchester Bay channel should at onee be surveyed with a view to deepening the channel to 30 feet for. future development of commerc e (See scrap book) Dec. 24, 1925. 73 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis &rain, Harriet Writes uL that she is to be operated on for stone in gall bladder Nov. 23, 1925. 43 on Saturday. Goes tLrough operation most successfully. Nov. 28, 1925. 47 Visits LW in Washington. Feb. 20, 1926. 107 We call on Mrs. Wilacn but sha is out. Feb. 20, 1926. 107 Mrs. Wilson takes us to drive. Harriet goes to Baltimore to visit Miss Bright. Feb. 22, 1926. 107 Hamlin, H. P. Reads Pa, Ma ani :4ae to Mrs. Wilson. Jan. 13, 1926. 82 Goes to Aattapoisett to attend funeral of Mr. DeLong. Feb. 19, 1926. 107 Sea - Harriman, Mrs. Borden Pennington, Mrs. Wilson Harding, Gov. ' C.S.H. confers with, as to proposed increase in discourt rates at Boston. Oct. 12, 1925. 22 Oct. 19, 1925. 27 C.f7.H. asks Gov. C. to talk with, as to discount rates. Oct. 19, 1925. 27 C.S.H. attends Boston directors meeting and stockholders meeting. Oct. 21, 1925. 28 Explains Boston rate situation to Federal Reerve Board and Open Market Committee. Oct. 27, 192 5. 29 Gov. H. out of town when Federal Reserve Board approves increase in Boston diecount rates. Nov. 6, 1925. 33 Tells C.S.H. he has spoken to Gov. Strong who strangly favors C.S.H.'s reappointment. Dec. 4, 1925. 54 Writes C.S.H. that the Bo4ton Herald of Jan. 4, 1926 mentions the possibility of C.S.H. running for Governor if not reappointed. Jan. 6, 1926. 74' http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 91. Earding, Gov. (Cont Id.) Writes C.S.H. as to John F. Fitsgerald.'s talk with Sen. Butler as to C. S.H. LI reappointment. Jan. 6, 1926. 74 See - Fitzgerald, John F. C.S.H. suggests to Gov. H. that his directors take up th3 ratter Jan. 6, 1926. 75 with Sen. Butler. Gov. H.'s share in the effort to cut down the Fedea 1 Reserve Banks Jan. 17, 1926. 89 in 1915. GoTr. H. tells Platt he is satisfied that C.S.H. will be reappointed and tells him about Sen. Butler's talk with Fitzgerald and speaks of action by sane of the Directors. he thinks Feb. 15, 1926. 106 Hollis. Attends at meeting of Open Market Comv.ittes. Mar. 20, 1926. 124 Calls on C.S.H. Says Glass says not to mention reappointaent until after Penna. primaries; that !Iellon was fighting for Pepper; that, Sen. Reed (Penna.) had claimed because not represented. on commissions, including th Fedes.1 ReE,erve Board; that there 'las danger that Mellon might trade off the position to help Pepper. He said Glass., said. that Pepper was as shifty as a flea; that while Edge agreed to stand with Glass on the McFadden') ill, Pepper Mar. 21, 1926. 126 vas very evasive. Gov. Harding and the directors of the Federal Reserve Bank of Boston unanimmsly send Mr. Bowman a Class B director and a great friend of Attorney General Sargent to ask the Attorney General to ask Coolidge to reappoint C.S.H. April 1, 1926. 139, 140 Gov. H. tells Bowman to tell Sargent that the Governors at their recent conference were unanimously in favor of April 1, 1926. 140 C.S.H. writes Gov. Harding telling him of Sen. Glass and Sen. Bruc3 ana what Sen.McLlan and Seri. Gillett told. Platt. April 25, 1926. 171 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Harding, Governor (Cont id.) he was at a dinner in Boston a few days Gov. Harding tells ago and my reappcintment was being discussed; that Mr. Ratchesky said, "Don't pay any attention to the Boston Herald article, Hamlin will surely be reappointed; good care will be taken to keep him out of the campaign next ?all." April 29, 1926. 173 Gov. Harding appears before Board and tells it of his employee at the Cuban Agency of Havana, Chase, and the allergies of intoxication against Dep. Gov. Campbell of the Agency of the Atlanta Bank. April 30, 1926. 175 Ja..es said. he wanted to abolish both agencies ana substitute the Feaaral Resnsve Bank of New York, but Gov. Harding said Miller woula never consent to giving New York any :Lore power. April 30, 1926. 175 Gov. Harding said he was ready to go farther with his Agency and put out Federa3. Reserve notes, but he left it to the Board. to settle the question of discontinuing Boston; that when he first dale tc Boston he had great pride in having the Agency win ae against Atlanta, but now he was settled therm and. would accept the decision of the Board. April 50,1926. 176 Tells C.S.H. that as soon as he returns he will ask Wing to wire Sen. Butler that it Vlb.s imperative that O. .H. be reappointed at once. April 30, 1926. 176 Tells C.F.H. that Charles Wash"otirn told, him that he had. written Coolidge strongly urging 1.S.H. is reap:ointment. April 30, 1926. 176 Gov. H. comes to Lee House to tea. April 30, 1926. 176Gov. H. told. Board that Gen. Crowder, our Ambassador to Cuba, got "full" every aay at 4 p. in. and could a,tfend to no mere April 30, 1926. 177 business. Gov. H. writes C.F;.9. that Curtiss had seen Ting ..A.to said it would be useless to wire Butler, as Butler had told. him that Mellon would control the appointment aruthat he hal in nand sane m4ai fran Penns.; that Wing thought it was Gov. Norris, but Gov. H. said he could not believe Norris wanted it or would take i t. May 7, 1926. 179 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Harding, Governer (Ccntld.) Gov. H. tells C..H. to have Bruce see Mellon at once or after the Penna. primary; says that Bruce hae supported manyof Coolidge's policies. May 7, 1926. 179 Says Mr. Bowman is here today aid will write Attorney General Sargent asking him to 1336 Sac. ',Tenon at any time you may think advisable. Let ma know if you wish the letter written ritht away or not until the 18th. May 7, 1926. 161 C.s.H. orites Gov. H. a confidential letter saying that Glass and Bruce have each seen Mellon :Ind Coolidge and seam very hopeful. Let everything rest until you hear from me again. Copy of letter. May 7, 1926. 181 Tells C.S.H. that Sen. Butler told Wing that the matter cf C.S.H.'s reappointment had been taken out of his hands and left with Mellon and the Preeident, - to his great relief, as he dia nct want to disappoint Mass. Repub. politicians ncr to alienate the many supporters of C.S.H. in Mass. May 17, 1926. 190 Tells C.S.H. that the mention of Gov. Norris' name cane frau Gov. Strong. May 17, 1926. 191 Sea- Discount rates Judson Mrs. Burleson tells H.P.H. that Mr. Roper reminded her that Col. Hausa at one time had been an ardent sup.,-orter of Judge Harmon for Preeident in 1912; that she now remembered perfectly hlaring her Pat:aer, Col. Huse, and a Mr. Ksnnison, a neighbor, talking on her Father's piazza; that her Father favored Wilson, while the two others favored Harmon. Feb. 8, 1926. 104 Harriman, Mrs. Borden Walks back with LIB from the International Club, Geneva, and stayed with us two hours. Told, us hlr daughter was getting a divorce from Mr. Russell. Sept. 15, 1925. 5 Mrs. Harriman app ,ared at the first Wednesday luncheon of the Woman's Dsuocratic Cluh fresh from ri3urope. After lunch she http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Harriman, Mrs. Borden (Contid.) had a conference LA. th Mrs. Snell. H.P.H., members of the Elections CaarAttee, and with the whole He Ccx..a.ittee. Speaking or the coming electicn of officers, she said the Club should choose some outstanding woman for President, other than herself. When told of the action of the norainating comnittee in nominating Tots. Andreas Jones for President, she suddenly flew into a violent rage, an:i. aaid that, now that the Club was prosperin ,- , it had. turned around. and had "railroaded" her out of the Presidency. Mrs.Blair explained to her that the by-laws prohibited a President from being elected for more than 2 terms, but all to no avail for she replied that she had never heard of each a by-lav!! It ,vas then read. to her but she continued in her rage. she then claimed that the nominations had not been posted. according to the by-laws, but she was assured that they had been and were at. that moment on the Bulletin Board.. She said tnat, considering all she had dxne for the Club, - loaning it $2000, - it was most extraordinary that she should have been treated so. She was assured that the Club would pay tin* all interest due and for the future. She claimed. the Dem. Natl. Comittee had guaranteed this amount, but they told her it as not so. She said that ilre.Jones as President would 33 ridiculous, that she could not speak or preside %yell. She asked who were nominated for Vice Preaidents az d. when told, they were Ars. Helm and Mrs. Hubbard, she said, "!ily God: what a elate!" She said she should have been consulted by cable. They said they had tried to get in touch with her, that no one, - not even the maid in her house, - knew when she would return, and that the expense of cabling made it impossible. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis OIL Harriman, Mrs. Borden (C ont id.) She said. that rs. Houston Thanpson or H.P.H. cud. h_ve been fit for President, but they explained that they could not serve because of 1-,he o:icial position of their hus'oan. She made a ludicr clue exhtbit ton of herself. Jun. 13, 1926. 62, 83, 64 Harrison, George Canes b4forn Mani with Gov. Strong to ask authority to buy 5 millions of bill = from #dhe Bank of Belgium. Nov. 25, 1925. 44 Board approves increase in salary cf, to $30,CY-)0. Dec. 15, .1925. 63 Tells Gov. C. that the Open Markty; Committee contests, he power of the Board. to forbid open market operations,and that if in any specific case, the Board. refused to grant it, the Federal Reuirve Bank of Ye': York •Nould go ahead in spite of the Board. Mar. 29, 1926. 136 Asks Gov. C . if he can approach .1r. Warren of our Research division and offer him a salary of t6000 to go to the foreig;n division of the Fedri1 Reserve Bank of New York; said. Dr. Stewart would give him e.;8000. Gov. C. sail hi might speak to Warren. April 19, 1926. 163 Comas to C.S.H. at Les House and •explains the situation. April 19, 1926. 164 Draws up a formal application for authority to eruploy Warren. April 20, 1926. 164 Tells Warren will go to Dr. Stewart if not to Federal Reserve Bank of New York at $8000. April 2 , 1926. 164 Bo Axed approves appli: ati on. Vote: Aye - Gov. C., Platt, C. H. No - Miller, James April 21, 1926. 165 Havana see - Cuban Agency http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heath, Federal Reserve Agent. 147 See - Federal Reserve Bank, Chta. ro Olsen Helm, Adm. We dine Ni th tamiral and Mrs. Helm. Present: Mrs. Wilson, Mr. Bolling, and Judge Moore, a Virginia Congressman. Jan. 5, 1q26. 75 Her son Leaves fcr Havana. with James and. Wyat t. May 2, 1926. 177 Hich-oorn, Mr. Mr. Hichborn, a bank President fro% Augusta, Ilsine, (2115d and. said he had been asked if he would like to be appointed, to my position; that he replied that he regarded the ..,dosi ti on as one of the highest in the ccuntry but that no power on earth could induce him to stand in my way and that I surely ought to be reappointed, and. that he .vculci ao all in his power to help Me. I asked him if the Maine Senators werr$ friendly and he said, "I have reason to believe they are," meaning, I think that he had made thalt, so. Max 19, 1926. 192 Hill, David Jayne C.S.H. lunches with, anci prepares list of candidates for trustees of the Carnes-5.e Foundation, Feb. 15, 1926. 106 Hollis, Mr. A. Platt says Harding says that, is interested in my reappointment. Feb. 15, 1926. 106 Honorary legress, Wilson Mrs. Wilson said Oxford offered Wilson an honcrary degree while he was in Paris; that Mr. Wilson always said he would appreciate a degree from Oxford more than from any other University, but that the Oxford rule was that the recipient must be present in person, and that ac he could not then leave Paris, he could not acapt it. Feb. 25, 1926. 106 Hoover, Sac. Gov. C. says Miller is acting stth Hoover in trying to embarrass the Board; that sec. Mellon also felt this and was very indignant at Hoover who had criticised the Board to tau as to open market policy. C.S.H. believes Miller is intriguing with Hoover. (See Vol. X, p.66) . Dec. 22, 1925. 69 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Hoover, Sec. (Ccnt'd.) Miller offends Gcv. Norman by his talk Watch he evidently got from Hoover. out rubber export ciuties Jan. 4, 1926. 73 Gov. C. says Sen.Lenroot has sent hire a second letter on Federal Res 3r ve aid. to speculation which states almost exactly the discussion of tee Board over his first 1 ,tter; the.t it is evident to hire that some one in the Board had supplied the informat on to Lenroot and he believes Miller "leaked" to Hoover who prompted. this letter. Jan. 4, 1926. 74 Winston tells C..11. he is satisfied that !:11erand. Hoover were working together and. had egged on Sen.Lenroot to '.rite the two letters to the Boa:-d as they contained agreements h3 could not Jan. 9, 1926. 79 have used without help. C.;1.H. tells Sec. Mellon he fears there is a pips line runr ing from ow% Board and he said. grimly, "I kncw it and. feel sure we have the same persons in mind at each end cf the line," meaning Mar. 11, 1926. 122, 123 Miller aid. Hoover. Miller saici he had informtion that the whole trouble in New York arc se from the fact that certain banks vv re load.ro up with new issues of securities which they could not place. Gov. C. asked ',Tiller W110 his informant was (m3aning Hoover), but he declined to reveal the source. Gov. C. said he should ple.ce no importance on information the source of •Ailich Miller riedlined to reveal. Mar. 25, 1926. 133 Winston tells Gov. C. that he knew perfectly that Hoover was rid that he had proved. that Hoover :-ot cicminating information fraD 111.113r as to Board acticn, tl.at See. Mellon was much disturbed as to this. Mar. 26, 1926. 134 Houghton, gab. Sir Maurice Low t3118 us that the State Dept. notified some 40 newspaper correspondents that there would. be an iliportant conference at the Dept. that afternoon at 4 p.m.; that they met Hcrueiton there who told them he had some remarks to make but that he must not be 4.1.oted in the first pert:on; that ei.terwards he would be glad to answer qiieetions, - on the sane understanding. Mar. 29, 1926. 137 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis House, Col. (Contld.) Mrs. Burleston tells H.P.H. that Mr. Baker reminded her that Co. 9 ouse at one tire was an ardent supporter of Gov. Harmon for President Ln 1912. She said she now remembered pert ntly hearing her Father, Mr. Kenison, a neighbor, 4nd Col. House one day talking on her Father's piazza; that his Father was urging Wilson as the logical candidate while House and Keniscn backed Gov. Harmon. She also said that Bryan's friendship for Col. House arose through Col. House' u cousins, the Moody' s, who were great friends of Feb. 8, 1926. 104 Bryan. Col. House in this morning's Washington Post Baia McAdoo wanted C.S.H. for the Federal Reserve Board but that Wilson sal..1, "I prefer Olney and it happens that I am President"; that later, on Olney's refusal, C.'3.H. was appointed in aceordance with McAdoo's wishae. The truth is that Olney urged Wilson, through TiOUS4, and I think also by le;ter, to appoint C.'). H. ana House strongly recommended him to Wilson. Feb. 9, 1926. 105 c.s.n. calling up Mrs. Wilson, incidentally spoke of the House 1cok, and Mrs. Wilson said Col. House was apparently an ass. Feb. 19, 1926. 107 Charles Warren tells C.f-% H. that Mrs. Wilson had greOsly injured Mr. Wilson by refusing permissicn to Col. House to publish Wilson's letters. C.S.H. vigorously disagreed. Mar. 4, 1926. 110 Newton Baker tolls C.S.H. he is shocked at House's bock. Mar. 7, 1926. 111 Sen. Glase tolls C.2.H. he hae been reading House's hook and had noticed, on page 166, that David Lawrence 4ae.ed House to let him tel.) the public a-)aut his activities in "making the bill" (Federal Reserve Act), but that "Col. House was obdurate in his insistence on silence"; that he had just written Lawrence asking him to be good enough to let him (Glass) know just hat Col. House had ions in "making the bill," April 3, 1926. 141 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 99. House, Col. (Cont Id.) Sen. Elril Mrs. Glass called. He was very bitter abrut House's book. C.S.H. tells him of the foot note on page 50 sta,ting that Wilson ultimately accepted. House's arguraents for centralized control of banking which materialized in the Federal Reserve Boa,rd. Glass said the 3a,rliest draft of the Federal Reserve Act contained no provision f cr a Federal Reserve Board; that he visited Wilson at Princeton on Dec. 26, 192, the day after Christmas, and that they then agreed to create a Federal Reserve Board; that at that time House did. not know Wilson at all intimately grid could not have suggested to him the creation of a Federal Reserve Board at that time. April 4, 1926. 14E, 149 The first entry in House's book showing my talk •r:ith Wilson on the Federal Re'ierve Act was on Jan. 8, 1913, t4t which, House says, Wilson agreed to put him in touch with Glass, Chairman of the Banking and Currency Can itee, and. "I art to work out a measure which is to be submitted to them." At this date, Jan. 8, 1913, :"Ir. Wilson had already approved the draft and its provision for a Federal Reserve Board. (Dec. 26, 1912.) House records, - page 161 - that he talked with Glass cn Mar. 24, 1913, and, "I urged him not to allow the Senate Committee to change what we bari aiTeed upcn in any of its essential feature:)." House must have hai in mind the sezond draft, which Willis was ccmpleting about Jan. 15, 1923, after hearings before Glass's caumittee, or a thin:1 draft prepared during March, kril snd. May, 1913, on sug-,eaticns of :.loAdoo, which were finally rejected, a fourth draft was also made to carry out Bryan's suggastions. In all of these drafts, a Federal Reserve Board was proviisi for. If House persuaded Wilson to a:!cept a centralized Fed.eral Reserve Board, it must have been before December 26, 1913 and there is no entry in the book as early as this. April 4, 1926. 149, 150 Glass said House later was E:iven an abstract of the proposed Federal Rese-ve Act an still later a copy of the revised draft the day before he sailed for Europe; that he showed this draft to Warburg o wrote from Switzerland. attacking it. April 4, 1926. 150 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 100 Huse, Col. (Contid.) C.S.H. writes Glass quoting from p. 171 of House's book to the effect that the original Federal Reserve Board. ‘rgist appointed without regard to politics, nt that it consisted of 2 Democrats, 2 Republicans, and one Independent. April 13, 1926. 158 Houston, F. L. Mrs. Wilson tells C.S.H. •hat when in New York on Dec. 2E, 1925, she met Houston at the Norman Davis' s; that she told him she had heard that he was about to publish Bock of P.sminiscences; that she had wade up her mind. also to tell him th;-.:.t she was not yvilling to have :dr. Wilson' 3 private correspondence published; that he said that although he hw. written a book, he had no present intention of publishing it; that that \v.:a a question not co be decided in the near future. She s aid he was so eraphatic about it that she said nothing ,abcut Mr. Wilson's letters. She said th'it when she returned to Washington she was show Doubleday Paoe 8.: Co's official announcement of publication of the book, dated Dec. 15, 1925; that she then ,vrote Houston that his unetraivocal rtenial to her of any purpose of publishing the brc.t.k in the near future made it seem to her unnecessary to her to speak to hilia r.t the tirie of her wish as to Mr. Wilson's corresdenne; that the an:- ouncement of Doubleday,Page & Co. of the ira-,Aciiate publication of the book made it necessary for her to let him know her views, - which she proceeded to do. She told C.S.H. she showed showed signs of anger it 'valid thus be Liore advice and. revised it this letter to Judge Covington wl.o said it and advised her to soften it somewhat as forcible; that she thereupon took his and sent it. Jan. 13, 1926. 84, 65 Mrs. Wilson than showed C.1.H. Houston's reply, - a typewritten letter, very evasive and nit candid. He ztated that the only private letter from Mr. Wilson published in his brook was Mr. Wilson's reply to his letter written just before the expiration of hi,.3 term of office, - evidently printed for purposes of self glorification. Mrs. Wilson foals that Houston deliberately e4tterrpted to deceive her as to when his book was to be published, and C.S.H. feels he did. this so that she would not forbid the use of Mr. Wilson's letters. Jfrta. 13, l26. 85 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Ilouston, F. D. (Contici.) Mrs. Wilson also said. that Houston would not ccme to the dinner of Dec. 28, 1925, pleading another eriga.gement. It seetis he had accepted a private dinner to Paderawski for that ev -ining; that Paderewski in fAct came also to the Wilson dinner; that Norman Davis begged him to come, saying he owed all he had in the world to Wilson, but that he coul4 not mcve Jan. 13, 1926. 85, 86. World's Work contains first installment of Houston's Jan. 22, 1926. 94 Hudson, Manley saz,t3 cuk. accd-bye to. Geneva. Sept. 17, 1925. 7 Hungary Gov. Norman hopes Hungary 1%111 soon Five up a centro lled, gold. standard. and adopt a real gold. stand arct. Dac.31, 1925. 72 Hurley Richard Olney tells C.S.H. that, favors very liberal s.!_ebt settlements. Nov. 7, 1925. 34 Hurst, Sir Cecil We meat, an Lady Hurst at dinner with Sir Herbe rt and. Lady Ames at Geneva. Sept. 15, 1925. 6 Dr. Shotwell a very bitter towards Sir Cecil Hurst because of his opposition to present zonsideration of disarl aac.ent plans. Sept. 17, 125. 8 Insolvency See - McFadden International Club, Geneva Dr. Ruffin lurnhes ilith Mrs. Wilson at. Sept. 12, 1945. 1 Attend lunch at, to /liar a representative of Irish Free State speak. Sept. 14, 1925. 5 Attend. lunch at, to IT! .3r Mr. Chu speak. Sept. 15, 1925. 5 Attend lunch at, to }liar an Italian Senat or speak. Sept. 16, 1925. 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 102. International Club, Geneva (Cont Sent ) Mr. Rhoades a check for $25.00 as contribution to expense of the lunches at. Sept. 17, 1925. 7 C.S.H. sends Presiient Coolid.ce an alIstract of remarls of Lord Cecil and Austin Chamberlain bn the World. Court, on Sept. 7, 1925, at the Club. Nov. 25, 1925. 43 International Commerce Comission Gov. Harding testifies before. Intarnationa law, Codification of. See - Carnegie Board May 18, 1926. 191 159 Irish Free State Attend lunch at Internaticnal Club to hear a representative of. sept. 14, 19a;. 5 Ishii, Viscount Gives a quiet dinner to us at the Hotel Metropole, the guests being the members of his commission, Dr. Gulick, a Missicnary, and Miss Scidmore. Viscountess Ishii came in iron. the country to the dinnex. Sept. 12, 1925. 1 Tells He that when he came to the U.S. on the Japanese Cor.r.issi on in 1917, he told Lansing ,i)out the secret Shantung treaty between Japan, Great Britain at ale; that he believed. Lansing never told. President Wilson. Sept. 22, 1925. 1, 2. also ..aid that when he came to the U.S. as Am'oassador, in 1918, he had. a talk with Lansing s to send Ina a Japanese financial adviser to China; that Lansing fully e.pprove this; that after he had been ,v2pointed, Lansing objected. by cfiblty fror. Paris, insisting on the appointment of an kiarimn; that he went to Frank. Polk and thawed. Um his notes of his talk with Lansing; that Lansing denied any recollection of any such conversal. on; that he then asked to be relieved as Ambassador, as he felt he never again could have any intercours•e with Lansing; that later, hit friend Dr. Tensler, a cousin of :ire. Wilson, wrote Mrs. Wilson fully about the matter, nnd that she told it to President Wilson. Sept. 12, 3925. 1, 2. We both told. Ishii that Lansing, at that time was severely ill with diabetes, and we believe it had affected his mind., - as'vas shown by his book which conclusively F.roved his disloya lty to Wilson. Sept. 12, 1925. 2 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 103. Ishii, Viscount (Contid.) told Ishii he thought Lansing's evident hatred of Jaran carze through his father-in-law, Gan. Foster. ed. vvith the C.S.H. told Ishii hop: Denison, an American connect Foster had. Gen. that told. Japanese Foreign Office, for Japan, in ,ten , Thoeror asked an auaience with the very -/as and party, whole himself,rs. Foster, and his d indignant when told th3.t his request could not be complie with. C.S.H. reminds Ishii that Foster hz-td acted as Counsel for the Sept. 12, 1925. 2, 3 Chinese Governraent. and he We told Ishii .se -L shed to sea the L. of N. Treaty '.;cok us. to it said Dr. Nit obe would show Sept. 12; 1925. 3 We cull on Viscountese Ishii. Sept. 16, 1925. 6 While lunching with Brackenridge Long at the :letropolitan Club, C.S.H. referred casually to Ishii and Long balci he feared Ishii did not like him. He then explained abou.t o'43cting to the ar7ointment of a Jar:Anese firancial agent in China in 1919. He sail th.t *Japan had loaned large sums to China and that the - oranissicner ought State Department felt that a JapaneLe : called to express Ishii later that not to be sent to China; lly t(ld him origina Lansing as protest the ci9ep regret at the attention milled then he that on; that he had no objecti shcwing to ago, year a subject this on of Ishii to a talk e Japanes a d to objecte he that Ishii his notes showing red this remembe he said Ishii financial adviser; that perfectly but that, a week later, he tailed. with Lansing who agreed. to the appointment; that later Ishii showed him his despatches to his Govt., lased cn his talk with Long, which, Long said, correctly reproduced their talk; that Ishii then showed him ant read him his despatch to his Govt., him, with relation to his talk following his talk with Lansing, stating that Lansing had agreed to the appointment; that Lansing ',Nail then in Paris (1919); that he looked up Lansing's diary of acpointreents for that period but found no entry on the slate at which Ishii said he had the talk with Lansing; that he cabled Lansing vtio re-lied that he had. no recollection of Lily such talk, but that1 in any lv.tnt, conditions had now radical ly chamed. Long said this latter statement troubled him and C.3.H. believes Long feels that Lansing must have said. vnat Ishii alleged. Nov. 18, 1925. 38, 39. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 104. Ishii, Viscount (Contid.) C.C.H. writes Ishii deploring the f,ct that the L. of N. hg-s cut awn its Library buo.get bC that Ass Wilson hue ha1 to discharge owl of her best employees. April 16, 126. 160 See - Carnegie Board. Italy 34 See - Olney, Richard -J- Jame, George R. Says that if Roston increases its disccunt rate, Atlanta also would -4,..ent to inareaari - that Wellborn had alriady suggested an increaae, - and. the movement might spread o'er the whole country, thus depressing the price of cotton, wheat, and other etaples; that these staples were too high and must soon break, but if such a break were to follow a rate increase, it ,vculd be claimed that the Federal Reserve banks hart deflated the farmers .ag-iin as in 1920. Oct. 16, 1925. 25 C.S.H. tells Gov. Harding of James statement. Gov. H. said. Atlanta lould. be foolish for it might injure the movement and price of cotton. Oct. 19, 1925. 27 James agrees to plan of rate increases at Boston, Phila. ani Cleviland before any incre'Ase at N. Y. Oct. 27,1923. 30 Gov. Strong tells Platt and C.S.H. that he felt keenly tr...? Ltck of courtesy ana attacks of certain zatbers of the Board (meaning Jaraes Lima Miller). Oct. 28, 1925. 30 See - Miller Strong James moves to taLe frrIm the of discount rates. table the Boston petit Jai for irc rease Nov. 6, 1925. 31 Votes against Cunningham mction to put in a 4 Eats at N. Y. Nov. 6, 1925. 32 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105. James, George R. (Cont Movs to tal:e off the table and approve the Bostcn ttprlirsaticn to increase from 31 to 45. Passed, Cunningham alone votirc No. Nov. 6, 1925. 32 Agrees with CJ .II. that the rate should be made effective at close of business today. Nov. 6, 1925. 33 39F1 Discount rates Votes against Miller motion that 50 millions of Govt. securities should be sold at once by the Open Market Committal), said sun to include the 39 millions matnring Dec. 15. Lost by tie vote. Nov. 23, 1925. 42 Insists on hLving record of last meeting read vtich showed that Miller claimed that 100 nillicns of Govt. securities clould ba B old but confined his motion to 50. Dec. 1, 1925. 4E, Votes to prove 01-,en Market Comtlittes plan to replace the 38 millions of Govt. securities vi.ich mature Dec. 15. Dec. 3, 1925. 50 Tells Fed3ra.1 Reserve Agent Perrin that tt...,1 feeling in the Board is so strong against him that he cu ht to resign. amid that he spoke persvnally and note for the Board. Dec. 3, 1925. 51, 52 feels Jar.' and :filler Is action was effect calling for Perr in s resignation the Board and will put a protest in the time. Dec. 3, 1925. extretorciinary, in vithout uthcrity frcm record at the proper 52 and Plat t, - Committee on examinatims, suggest that Board. direct Coui.d.t tee to consider extending the area of contiguous territory to take in Burlingame grid Palo Alto. Dec. 8, 92b. 59 Jame '3 Votes against permitting Mercantile Trust Co. of San Francisco to operate banks its subsidiary hey_ purchased in Burlinceme and Palo Alto. Dee. 6, 1925. 62 Did not vote on ractim, Iv reduce sugg , teci salary of Manager of Buffalo branch to $15,000. Dec, 15, 1925. 63 18,C00 for http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 105. James, George R. (Cont 'd.) Moves to tal:e off the table and approve the Bostcn aprlinaticri to increase from 3i to 4%. Passed, Cunningham alone votine No. Nov. 6, 1925. 32 Agrees with c,J .II. that the rate should be made effective at close of business today. Nov. 6, 1925. 33 9R - Discount rates Votes against !tiller motion that 50 millicns of Govt. securities shoula be sold at once by the Open Market Connittep, said min to include the 39 millions maturing Dec. 15. Lost by tie vote. Nov. 23, 1925. 42 Insists on having record. of last meeting read vtich showed that Miller claimed. that 100 millicns of Govt. securities shou.ld F)3 sold but confined his motion to 50. Dec. 1, 1925. 4E Votes to approve Open :,larket Comuittes plan to replace the 38 millions of Govt. securities elti.ich mature Dec. 15, Dec. 3, 1925. 50 Tells Federal Reserve Agent Perrin that ti-.1 feeling in the Board is so strong against him that he ouL ht to resign. ;13,id that he spoke persynally acad note for the Board. Dec. 3, 1925. 51, 52 feels Jame., , and. Miller's action was extraordinary, in effect calling for Parr in s resignation hout :,,uthcrity from the Board ana will put a protest in the record at the proper time. Dec. 3, 1925. 52 Jame 9 and Plat t, - Caumittee on examina ti cn s, sugE Et that Board direct Cot; Lit tee to ccnaider extending the area of contigu ous territory to take in Burlingame and Palo Alto. Tile. 8, 2925. 59 Votes against permitting Mercantile Trust Co. of San Francisco to operate banks its subsidiary -purchased in Burlingame and Palo Alto. Den. 6, 1925. 62 Did not vote on Notion t reduce sugg,ti-ted salary of t16,C00 for Manager of Buffalo branch to $15,000. Dec, 15, 1925. 63 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 106. James, George R. (CentId.) Vcted to permit Open Market Canc.littee to 'buy 15 or 20 millions of (;ovt. 3curttis. Dec. 22, 1925. 68 Thinks Miller is not loyal to Board.. Dec. 22, 1925. 69 Votes against Miller .,otion to favor an amend.::lent sbb Federal Reservo Act abolishing member banks 15-day collateral notes. Jan. 6, 1926. 78 Jan.13, 1926. 80 Votes in favor of aniencling Fecilral Reserve Act to perr.it mmber banks collateral notes secured by eligible paper (bit not by Govt. s,curities) up to 90 days. Jan. 13, 1q26. 81 Voted ai- ainst permitting Fedem.1 Reserve Agen'. Jay to give out hi a fi gure s of et ock .33tchange 1 oans a t orr e. Fe). 6, 1926. 99 Votes in favor of requiring Federal Reserve banks to rerort for aprroval by Boart all sins paid to ccunsel for collecting Feb. 9, 1926. 106 claims,'.3tc. • Votes a,ainst condition moved. by C-.S.H. to motion to allow Open Market ComrAttee to increase the Syst purchases of Govt. securities up to CO3 millions, prior to April 15, 1926. C.`,.}1."..1 condition was that Board might revoke its consent at any time. Mar. 24, lci26. 12s! Movee, to approve such purchase, without C. H. s cond.iti cn. Mar. 24, 1926. 129 'Aar. 25, 1926. 133 Says if Boarci has not pow3r to forbid Open Market purcha cos We should go to Congress which would vickly eivs it to us. Mar. 29, 1926. 135, 136 Voted against allowing Valley Bank of Fresno to take over and. operate Lt3 a branch a bank in Prescott, Calif., 50 miles away, altho Board oridnally imposod no condition on Valley Bank not to establish brancher without its consent, all aareed no injury 1,as caused bythis change in assets of th3 Valley Bank. April 6, 1926. 146 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 10'1. Jamee, C-eorbe h. (Contid..) Voted against approving apr( intment of Secretary of Federal Resent-, Bank ha admitted that our Board 'Acts in approved this a par a.o. April 6, Olsen as Assistant of . Chicago, .:though a hole frcui having 1926. 147 Voteci to inform Fed. x.a.1 Reserve Bank of ChidaEo that to take a s-"cretary cr Assistant Secretary from the operating, ail of the bank was against the established policy of the Board., rd that the appointicont was s•uspended, althol]gh 6 out of the 12 7eclora1 Re3erve Banks ha'i Secretaries taken from the oper,-,ting April 6; 1926. 148 Voted to strike out the susper.ston clause of above 1*:ving in merely tha declaraticn of the ioa.rd.. April 8, 1926. 152 Says he will vote azainst ,-zny sal Ary fixed by Fed.ers1 Re , - erv3 Bank of /19w York for Warren, formerly of our Research Bureau, over the $4,000 he got fro a us. April 19, 1926. 164 Votes _Igainst approving gale.ry of $6000 for Warren, submitted by Fectlral Reserve Bank of New York. April 21, 1926. 165 Boara decides to send JLACM13, to Havana to investiate chz.irCeS of thtohicat ion tigz-Lin et Deputy Gov e rnc r Campbell, etc. April 50, 1926. 175 Says both 3 - ostcn and Atlanta should be dizcontiniied anci that the Cuban Agency should. be given to Feder. Re:-,ervH Bank of New York. April 30, 1926. 176 Starts for Havana, with Herscn hrid Wyatt. May 2, 1 926. 177 C.S.H. tells Comptroller of Janes plan to ciifcontinue th, . Cuban Agency 0 . Fecie -al Re .irve Bank of Bostcn. May 17, 1926. 189 Board meets to consider 0-atlas's report Crl Cuban AEency scandal. Mr 20, 1926. 193 •Tainst mctien te temporartly table the fir et part of re-,ort, - that -Deputy Governor Campbell be eliminated from Fed 3ral R99 =TIM S.7st ern. !lay 20, 1926. 193 jarrigi:; VO t1:3 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 108. James, George R. (Cont'd..) Votes in favor of C omptroller a motion that Caupb ell oh ould ce eliminated froul the Federal Reserve Syztem. May2O, 1926. 193 Votes for investigation of conduct of McCrary, a director of the loederal Reserve Bunk of Atlanta, ., vhc went on the trip to Havana. My 20, 1926. 193 Voted. in favor of C.S.H. motion that ZA, report be Callad for fro:.. the Federal Rezve Bunk of Atlanta in comection with thmc veui ant of lurrency tc the Tluvana Agency on April 10, 1926, incluting all instructions L4.vren to the party which uccompanial the currency Ehi:Lients and including theccndUct . of the members of the party. May 20, 192o. 193, 194 Moved and passed unanimously that Ir. Jones' ociarmnicate the foregoing :.ction of the Board to. the Atlanta :lank and to th= inciividual s concerned. • May 2C, 1926. 194 Bitterly disagrees with C.S.H.'s sttaMent that it wculd not be proper to .reove an officIr wit cut first Eiving to the Federal Re3erve bank the op, orturaty to investigate and ;port proper attion, Axil then, if the Atlanta Board gave an uneatisfactory report, the Federal Reserve Board coul& take such action as the facts warranted. May 2C, 1926. 194 said. Cunpbell was an inefficient man, anyway, knowledge of barLing. Jarlf3B nd had little C.S.H. said that even if thts were so, he ',us entitled to a hearing on this specific charge. May 20, 1926. 194 The Board voted. the above resolutions in order that James could. quie tly say to Campbell, that if he wished heartng 1.3 could have one by the Atlanta bank, and.,later,by the Boara. Most of the Board believed he would quietly resign to avoid public scandal. May 20, 1926. 194, 195 James alao wanted. the Board .3.t once to rerhove director McCrary. C..6.H. pointed out that the only evidence in James's report las that McCrary •,..,as one cf the party v±ich ,ient to 'Havana, And that that hardly offered 1.1 greund for r oval. A marjorityl and. probably all of the Board except James, agreed. with C. S. H. J6C191.1 claimea that the ca•-.1re fact of his going on the party justified. his removal. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 109. James, George R. (Conted.) C.S.H. p - ointed out that he may have been directed to go' -)y the Federal Reservn and that we should take evidence before acting. May 20, 1926. 19) J also insisted that the Board should r.tifUOVI Gov. We ?born on the ground of &roes intoxicatim recently h:t a rublicainner in the Atlanta District, und later in a private house. The Board J11 felt this was a matter which should. 'le cont,id-rect entirely apart from this particular investi,:ation. 1d JarAs said. Gov. Wellborn, anyv ay, was grossly izacot petent. 31 :1.3, 20, 1926. 195 Cunningham asked Jar.les why, if Gov. Wellborn was grossly incompetent, did the Board increase his salary to $25,0007 Jarnes aid. this was kiiv3n to the office, -and not to the man. Cunningham sail that, apart from evidence as to intoxication which might -)e offered, he should vote to retain Gov. Wellborn, as he considered him as casp)tent as the average Governor. May 20, 1926. 195, 196 The Boarci then consiier.31 the second proposition in James' report, to abolish the Cuban Ii.:7ency of Bo:itcn. C.S.H. said he would like tire tc study this, that he believed Boston should keep its present status so:riewhat enlarged, Lio that it could prt out a -;ertain prori- orticn of its own notes. May ".:0, 1926: 197 See - Cuban A, ency ‘:.S.H. told J-thes there las no special urgency. Jaz-hies saia there vs urgency tis ther, ct rumor in Cuba that the 3oara 1%tis going to , &bolish both agencies and. pull out of Havana, wLch 6,a• eatly worried. car banks in Cuba. C.S.H. told James woula glaaly vote tc send a lettex at once to these banks that the Board ha.). nev r even considered. pulling ovt of Havana but had under consideration plans for ti,e agencies (lore efficient. Jay 20, 1926. 196 Jarhes insisted that we should first tentatively ?.prrov3 his plan of abolishing Boston ...nd of perfectinr Atlanta and. h..e. a haring 4*, which the officers of the National Citr Bank' a branch in Cuba should he asl- eci to express their views. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis no. James, George R. (Cont'd.) In reply to a question frora th3 Contro1ler, James fina- ly Admitted that all the batiks, includinE, th3 Fed3ral Re3rve said Bank af Boston, were entitled to a the plan, Jam -al approving that lefore even tentatively Secretary of the Treazury should b 3 given 4.,n opi- or tunity to study it. d uaid i the Board. did not now Jt1M-315 then got very Made tantativai.y approve his plan, he was through and would not even go to Atlanta (n the matter of the Campbell charges. He acted like a spoiled chili. He did agree, finally, that nti tied to study the plan befor3 e.cting on it. Sic. Mell on wa The Board th3n adjourned until .4f t ernoon. Canninghera said he would. quiet James, ,,nd the Comptroller said. kne,v the whole situation and would also Sec. May 20, 1926. 197 h3 had reason to believe that the In the afternoon, Gov. C. its views and. did not now favor had changed Depart:aent 3tate in Cuba. continuing our Miller :loved. that the Baird write the State Dept. for its ,rilwa. C.S.H. objected to going over the head of Sec. :lel] cn. '2.1ellon arid C.i.1.1. moved tbat Gov. C., Jr.cia, and. !Iiller eme This was views. s Department' State the ascertain to ask him -1° lc 1926. 20, . May unanimously carried C. insisted that th3 Board fir.t cprove a litter to Sec. Mellon :,.tnd the Cari ttee was directed to r -port a letter to May 2(`, 1926. 19cthe Board. G07. Jarooes, Cunl-ingham moved that the Atlanta Co mitt."objected.. C.2.}I. matter. Campbell th go to Atlanta on May 20, 1926. 199 See - Cuban Agerny aeyeed that C.S.11.ts reasons for not going to Atlarta were !lay 0, 1926. 199 sound. James bitterly attacked Director McCrary. He said that SQ1.1 years ago h3 used his position as a Federal Reserve lank Dir actor request to coerce member banks into buyin6 bonds from ILL., 1 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis James, George R. (Cent la.) which the banks dia net dare to refuse; that the matter PAas referred to the Attorney General's office and investieated by an Assistant who reported that after careful investigaticn, altho satisfied the charge was true, he could not find sufficient evidence to convict him. May 20, 1926. 199 Japan See Ishii Japanese Csa.J411.1;uion - Ishii Japanese Financial Adviser See - Ishii 38 Japanese ?oraign Office See - IdKU Jr1ine, Sec. of Agriculture Att Inds lunch given by C.S.H., at CosLcs Club, to Louis J. Taber, Master of the National Grange. Jan. 23, 1926. 94 Jay, Pierre, Feasral Reserve Ai:ant, N. Y. Board approves increase of salary to .1;30,000. Dec. 15, 1925. 63 Bc.ard refuses to permit, to give out at once in Nev vork 1-4 .is fi gur ts on stock ixchange 1 oans, but decid that 1. t must be given out by the Boz-...rci later, - when it Naild ie a week old.. The stock exchanc3 is to hive out its figures tcxaorrcw ani the Feleral Reserve Bank of New York had anncu.nced, through ecale misuncte-rstanding of the Board' a atti 421d , that it wo-ild lo the same. , anci Platt believed and voted that we should not hold back this information. Feb. 6, 1926. 98, 99 Gov. C. has Boum letter to Ja,y reaa to effect that ti prop-r way to "ring up a matter "oef ore the Federal Reser, e Board is to Iddress the Governor. APril 20, 1926. 165 Johnecn, Evangeline Mrs. Wilson invites us to ainner and says :ass Jchnson d. Miss Baruch are to rive a dinner t t1-. International Club to the Americans worl:ine in the L. of N. Sept. 16, 1925. 6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 112. Johnson, Evangeline Omit Id.) We dine with Mrs. Wiles, Miss Johnson and Miss Baruch not being present. Sept. 17, 1925. 9 Mrs. Wilma,' tells us the statement in the papers that Miss Johnson Is to marry Leopold Stokowski, leader of the Phila. Orchestra is true; that Miss Johnson wants her to come to the wedding, but she felt it might make her too conspicuous, although a supposedly quiet wedding, end decided not to attend. We felt she did not approve the-marriage although she did. not say Jan. 10, 1926. 80 so in so many words. Johnson, Robert Underwood. Present at • seance in New York at which Annals name was mentioned. Dec. 5, 1925. 55, 56 See - Arnold, We. Jones, Dr. Dan 21 See - Joslin, Dr. Jones, Jessie C.S.H., in a committee with David Jayne Hill, reports the name of, for a vacancy in the Carnegie Board. Feb. 15, 1926. 106 Jones was not elected. April 16, 1926. 159 Jones, Sen. Andreas We take supper with. He said. Sen. Butler entered the Senate thinking he was the leader by virtue of his position as Chairman of the Rep. National Camnittee; that he calmly picked ant Sen. Smoot's seat for his own, but that he soon learned his place. Dec. 20, 1925. 64 He said. Sen. Pepper had already lost all the reputation he had. What Dec. 20, 1925. 64 he entered the Senate. He said that when Dr. Miller was nctminated by Wilson for the Federal Reserve Board, he asked Sec. Lane as to Miller's politics, who replied that he was an independent, not even intimating that he was a Democrat, which son. Jones believes he most decidedly Dec. 20, 1925. 70 was pol. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 113. • Joslin, Dr. Elliot P. C.S.H., suffering fran neuritis and sane indigestion, called up Dr. Joann frau liattapoisett ard Dr. J. asked him to come up tanorrow to the Deacness Hospital, Longwood, prepared to stay for a thorough examination. Oct. 4, 194. 19 C.S.H. meets Dr. Joann at Deaconess Hospital, at 10 a.m.,went at once to bed and was thoroughly examined, blood tests, urine analysis, heart, etc. etc. Later C.S.H. went dove to the X-ray rocas and Dr. Morrison gave him an enema of Barium and then took X-ray pictures, to be developed later. Had considerable idestinal pain during the rest of the day. Oct. 5, 1925. 19 Dr. Joslin reported that the pictures shamed nothing abnormal; that there was a very slight it2.11ness in the intestines where C.S.H. felt the pain, but that it was inconsequential. That night C.S.H. had severe neuritic pains and could not sleep. Oct. 6, 1925. 20 Dr. Joslin said he intended to send C.S.H. back today, but decided to keep him in order to X-ray his stcmach, although he said he was satisfied there was nothing the matter with him, exceit possibly sane defective teeth. C.S.H.Is pain continued during the night making it very difficult to sleep. Oct. 7, 1925. 20 Dr. Joslin again gess C.S.H. a thorough examinaticn but found everything normal. He said be had not taken an X-ray of C.S.H.'s stomach as he did not consider it necessary, but that as his pain continued he thought as a matter of precaution he would do this. C.S.H. then went down again to the X-ray roan and Dr. Morrison made him drink a huge tumbler of malted milk and Barium, and too X-rays showing the process of digestion, for scout 20 minutes. C.S.H. then went iv to his roan and came down again at 1:30 and had further X-rays taken. Dr. Morrison said to return again tanorrow morning at 7:30. Oct. 8, 1925. 20, 21. At 7 a.m. C.S.H. tock another injection of Barium and more X-rays were taken. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 114. Joslin, Dr. Elliot P. (Contod.) Dr. Morrison repcsted that he found nothing in the slightest degree abnormal or even suspicions; that the stcmach was in perfect condition; that the bowel movement was rather spasmodic; that the fecal matter f/Atherecl on my right side and did not disperse as quickly as it &mild, causing some irritation on the left side; that there was absolutely nothing there which should not yield to mild cathartic treatment; that he considered C.S.H. in fine condition, - a first class insurance risk. C.S.H. told him the latter was language which he could understand. Later Dr. Joslin said the same. He said if he had found the slightest suspicious condition he would have asked Dr. Dan Jones to go over me with him, but there was absolutely nothing to call for this; that a month of plain foal would make all right; that his only suspicacn was that my teeth, or scms of them, might be ulcerated. C.S.H. told him he had his teeth X-rayed before going abroad and the result was negative. Dr. Joslin advised him to have mother X-ray at once as a second test might reveal trouble, which he apparently strongly suspected. He told C.S.H. that his former trouble was not a severe, not even a moderate trouble, - only the slightest, - and that there was not the slightest occasion for worry, but to forget it. C.S.H. left for Mat tapoisett at noon. Oat. 9, 1925. 21, 22 See - Ruffin, Dr. C.S.H. writes Dr. Joslin as to Dr. Christie's test mhich was substantially the same as Dr. Joann's. Dec. 4, 1925. 56, 57 -XKahn, Ws. Congressman Dines with us. May 6, 1926. 179 Tells us about Dr. Miller es ancestry and his break into Washington society. May 6, 1926. 178 See - Miller http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 115. Ka), Mrs. Congressman (Canted.) She said that One day during the Harding kiminis tration she met Dr. Mille' in the street and said, - "How is my Democratic friend?' He replied, 'Why do you call me a Democrat? I am a Republican!" May 6, 1926. 178 She said Miller was very poor when in the University of California, that she was his classmate, end that the Harvard Club of San Francisco raised a scholarship fund to send him to Harvard. May 6, 1926. 178 She writes C.S.H. frcm Cleveland enclosing an editorial frau the Cleveland Plain Dealer strongly urging C.S.H. for reappointment, and added - "Those are my sentiments." May 13, 1926. 187 Kane, Deputy Cauptrollei of Currency Mr. Kane, in his book "The Romance and Tragedy of Banking" in a chapter sets forth the frequent violations of the National Bank Lot by McFadden, Chairman of H.R. Banking and Currency Committee and President of the First National Bank of Canton, Pa. 182, 183, 184 Bee - McFadden Koppel, Mr. Dr. Shotwell says that, one of the Executive Committee of the Carnegie Board, favors the L. of N. Sept. 17, 1925. 8 Key West See - Cuban Agency King, Sen. Gives Glass draft of resolutien as to Federal Reserve note issu.es. May 5, 1926. 177 4,. Lane, Nancy Mrs. Wilson said, had. come to New York and. had. asked Mr. Baruch to help her obtain a movie engagement; that she had a bad case of goitre. Nov. 15, 1925. 37 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 116. Lane, Sec.. Sen. Andreas Jones tells C.S.H. he asked Lane as to Dr. Wile's politics when be was first nominated for the Federal Reserve Board, and that Lane said he was an Independent in politics. Dec. 20, 1925. 70 Dr. Miller tells Charles Warren that Sec. Lane, during the dispute in the Board over cutting down the number of Federal Reserve banks, and mu president Wilson was sorry he favored cutting down th9 number of Federal Reserve banks, and that he told Lane he was mistaken, that he was an the President's side in the dispute. Jan. 17, 1926.88 See - Miller Lansing, Sec. Ishii tells K.P.H. that when he came to the U.S. with the Japanese Commissicn in 1917, he told Lansing about the secret agreement with Great Britain ami the others powers as to Shantung, although be believes Lansing never told Wilson. Sept. 12, 1925. 1, 2. He also said that after be came to the U.S. as Ambassador In 1916, he had a talk with Lansing as to sending a very prasinent Japanese to China as financial adviser; that Lansing fully Approved this at the time, but etas* the appointment Lansing, then in Paris, cabled a protest and insisted on the appointment of an American; that he went to Frank Polk and showed his notes as to his talk with Lansing; that Lansing denied any recollection of any such conversation; that he thereupon asked his Govt. to relieve him of his post, as he felt he never again could have any intercourse with Lansing; that later, his friend Dr. Teusler, a cousin of Mrs. Wilson, wrote Mrs. Wilson fully about the matter and that she told the President. Sept. 12, 1925. 1, 2. We told. Ishii that Lansing at that time was vary ill with diabetes and that we thought it had partially effected. his mind, as was shown by his book in Which he almost in so many words proclaimed his disloyalty to Wilson. Sept. 12, 1925. 2 C.S.H., in speaking of Lansing's hatred of Japan, told Ishii he thought it came from Gen. Foster who had been counsel for China. sept. 12, 1925. 2 C.S.H. told him a story Dennison, of the Japanese Foreign Office, told him of Laasingls Father-insaaw demanding an audience with the Japanese Imperor and Nmpress, for himself, Mrs. Foster and all their party, and how indignant Gen. Foster was when it was declined. Sept. 12, 1925. 2, 3. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lansing, Sec. (Ccatid.) Breckinridge Long lunched with C.S.H. at the Metropolitan Club and said he had just explainad to Lansing that he cculd not find time to write his life, as he had been requested to do. He said there had been many matters in the State Department on which he could not agree with Lensing. Nov. 18, 1925. 33 Long explains the refusal to wee to the appointment of a Japanese financial adviser to China. C.S.H. believes Long feels that Lansing did agree just as Ishii said. Nov. 18, 1925. 38, 39 See - Ishii Long said Wilson was in error in stating that he first heard of the secret treaties in Paris in 1919; that he knew that Balfour told Wilson about them in May, 1917, at a secret conference in the White House; that he did not know whether Balfour told Lansing about them or not. Nov. 18, 1925. 3) C.S.H. told Long that Lansing MO4 told him he did know of these secret treaties and had so recorded it in his diary, but that shortly afterwards he told the Senate Committee he did not know of them. Nov. 18, 1925. 39, 40. Breckenridge Lau; tells C.S.H. that from 1919 to 1921, Wilson never cannunicated with Lansing; that he, Long, really managed the State Department during that period; that at one time the questicn arose whether we should withdraw our trocps from Russia to avoid an open *inflict with the Bolsheviks; that Lansing could not help him; that finally he write Tumulty to get Wilson to advise him what to do ana that, shortly after cable cams from Wilson ordering the witlxtrawal. Nov. 18, 1925. 40 Mrs. Wilson tells us that Mrs. Lansing had acme up and spoken to her the other day at the Woman's Democratic Club. April 3, 1926. 140 Lantern slides We bought 50 slides of the L. of N. at the Secretariat and had than sent in care of Mr. Mitchell, Manager of the Red Star Line at Antwerp. Sept. 17, 1925. 7 Lawrence, Bishop Mr. Wile tells C.S.H._ he has sent Carter Glass's editorial on Bishop Lawrence's eulogy on Lodge (written by C.S.H.) to the Pulitser judges and believed it wcald win the $1000 prise. Feb. 4, 1926. 97 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 118. Lawrence, Bishop (Cont0d.) Wile also wrote Sin. Glass Who replied that Bishop Lawrence evidently did not attach mucktimportance to the editorial as he had never answered the indictment. Feb. 4, 1926. 98 Lawrence, David States in Washington Star of Jan. 18, 1926, that Coolidge had redesignated Marvin as Chairman of the Tariff Commission to please Sen. Butler and help him in his senatorial campa ign, although he wanted to designate Dennis, a, Democrat, and a personal friend. Jan. 20, 1926. 92 Sen. Glass said that he had come across Lawre nce's statement in House's book, p. 166, that he (Lawrence) asked House to let him tell the people about his activities in "making the till" (the Federal Reserve Act), bat that "Col. House was obdur ate in his insistence on silence." Glass said he had just written Lawrence asking him to be good enough to tell him just what Col. House had done in "making the bill." April 3, 1926. 141 League of Nations We tell Ishii we want to see the Treaty Book in the Secretariat and he said he would ask Dr. Nitdbe to show it to us. Sept. 13, 1925. 3 Dr. Zimmern intimates that Chamberlain at heart would like to shelve the L. of N. as did the other guests at Mr. Sweetser's lunch. Sept. 12, 1925. 4 Dr. Zimmern said the L. of N. was fighting for its life over the proposed Protocol; that the Assembly would never conse nt to the Protocol being shelved. All agreed that if Lord Cecil had been Minister of Foreign Affairs the Proto col, in principle at least, wolld have been accepted, perhaps with some modification, such as the right to suggest reser vations, etc. Sept. 12, 1925. 4 .We buy 50 lantern slides of L. of N. Sept. 17, 1925. 7 Dr. Shotwell said he believed that the prese nt British delegation, excepting only Lord Cecil, bad little sympathy for the L. of N., exampt in so far as they could dominate it; that they were http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 119. League of Nations (Cant Id.) to any present consideraticn of disarmament, although the other Nations favored inmediat• consideation; that very likely they might have to yield in part, but from no desire on their part; that there was & possibility that the BritishFrench-German agreement might soon be reached; that Germany would enter the L. of N. but not mitil after the Assembly had Sept. 17, 1925. 7, 8 adjourned. opposed Dr. Shotwell also said that Lord Cecil had no influence in his delegation, although he was the titular head in Chamberlain's absence. He was very bitter against Sir Cecil Hurst for his opposition to present consideration of Disarmament plans. Sept. 17, 1925. 8 Dr. Shotwell said that both Root and Scott vr..nted the appropriation the Carnegie Boani made for the International Ccranittee reconsidered but finally gave up the attempt. Sept. 17, 1925. 8 Dr. Shotwell also said that Butler, now President of the Carnegie Foundat ion might press the L. at N.; that Butler and Pritchett very nearly dominat ed the Executive Committee; that Pritchett was a Democrat and, although very quiet, favored the L. of N.; that Koppel, of the Executive Colunittee, also favored it as did Austen Fox, although the latter looked on the Carnegie Foundation as rather a joke. Sept. 17, 1925. 8 Mrs. Andrew Carnegie told C.S.H. that the L. of N. had wonderfully impressed her; that she wished her husband vas alive as he would have been full of enthusiasm for the L. of N. and would have pushed it with an his energy. Sept. 17, 1925. 8 Ccng. A. Piatt Andrew spoke very sympathetically about the L. of N. and C.S.H. believes that ultimately he will cone out for it. Oct. 2, 1925. 18 Mr. Wile tells Lawrence Evans that he believes Coolidge is getting ready to accept the L. of N.; that he (Coolidge) saw evidences of a wave of favoring public opinion for it; tat he vm.s about satisfied that in opposint it in the past, he had put his money Jan. 1, 1926. 72, 73 on the wrong horse. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 120. League of Nations (Cont'd.) James Brown Scott tells Carnegie Board that the groat Powers in the L. of N. did not want a codification of International Law, as they did not want to be bcund by law, but by themselves. April 16, 1926. 160 Butler tells Carnegie Board that the L. at N. had cut down its Library Budget, necessitating the dismissal of several of its best employees. He told C.S.H. there would be no objection to his writing Viscount Ishii telling him how deeply the Carnegie Board regretted this. April 16, 1926. 160 Leaks in Federal Reserve Board. Miller intimstes some one in Board might leak if the nes discount rate at Boston is held up too long. Nov. 6, 1925. 33 Gov. C. believes that Miller leaked to Hoover who helped Sen. Lenroot write his two letters to the Board on Federal Reserve funds in call loan narket. Jan. 4, 1926. 74 C.S.H. tells Sec. Mellon that he believes but can not prove that there is a pipe line from the Board gazxi. he said grimly, "I know it also mid 'feel sure we have the same person in mini at each end," - meaning Miller and Hoover. Mar. 11, 1926. 122, 123 Winston tells Gov. C. that he and sec. Mellon believe that Hoover is dominating Miller; that he bad proved that Hoover had gotton Board information from Miller; that So:. Mellon was much disturbed over it. Mar. 26, 1926. 134 Ledyard, Mrs. Cm invitation of Mrs. Ledyard we went up to her roan and attended a seance by Valiantinc. There were present C.S.H., H.P.H., Mrs. Ledyard, Mr. Remy and Dr.Morse. Valiantine we found to be a modest appearing, pleasant man, rather uneducated man, showing not the slightest external evidence of having psychical power. The roan was absolutely darkened and. we sat around in a half circle, about 10 feet or more in diameter. Valiantine sat by the window next to an electric lamp covered with a shade, and absolutely under his control. Next to him was a graphaphone. In the center were two long trumpets, one belonging to Valiantine and the other http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 121. Ledyard, Mrs. (Contid.) to Mrs. Ledyard, with a faint spot of aluminum, so that it was faintly visible. The latter was collapsible and Taliantine took it away with him. When every light was extinguished Valiantine started. the graphophane which played, very low, a selection from Mascogni. We then all recited the Lord's Prayer. After a short interval the trumpet with the aluminum spot could be seen moving slowly around the circle and later up into the air. Soon after this a voice spoke through the trumpet in grits a loud voice, saying - "Good evening, souls!" We were told, this was the voice of a Dr. Barnet, a Scotchman, who died in the '60's. He spoke for some time vita interestingly but give out nothing of special importance. Then a voice, said to be that of Dr. Morwe's father, dead. for some years, spoke in a low voice and Dr. Morse talked with him. He asked Dr. Morse, pmong other things, what the instrument was which he was carrying in his pocket Laxl he replied - a thermometer and & stethoscope. Then *named some more desultory conversation Which we could not hear. Then another voice, said to be that of Blackfoot, an Indian, spoke in quite a loud voice. Mrs. Ledyard asked him to help find Anna for us and he said he would. Presently he said Anna was there and wanted to talk with us. The trumpet then moved over very near us, and a very thin, faint voice, not recognisable as that of Anna, spoke through the trumpet, saying, "This is Anna!" Then .followed some words frau her but so faint we could not hear them with any distinctness. We told her how we loved her and. how happy we were to hear her. Anna said she was so glad, too, as she had often tried to get in touch with us. C.S.H. told, her he always felt she was near us and with us and that that feeling kept him up. Anna said. she knew C.S.H. felt so. K.P.H. asked her if any one had "gone over" from Mattapoisett recently? Anna said. "he is here arid I see him often." H.P.H. said. - "Don't you remember he taught you to drive the pair of horses, to elaich Anrsi Said Yes. James Rafter was in H.P.H.'s mind but his name was not .specifically mentioned. Anna then said she was tired and must rest. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 122. Lsayarci, mrs. (Cont Id.) The se one - I think Dr. Barnett- said James is here and wishes to spsak. Then Janes began to speak in a very low voice. H.P.R. thought she could recognise the voice, but I could not. James asked H.P.H. to send his love to his wife and to tell hv he still lived end was well. H.P.H. asked him if any one iron Me.ttapoisett had gone over recently and he said, "Farmer" (ramming DeLong) (C.S.H. thinks it 112r0,1able that H.P.H. had mentioned DeLong and Rafter's name ircidentally during the above conversation.) Then Dr. Morse said., - wHow do you do, James. Do you know me?" James said, "You are Dr. Morse." (Dr. Morse's name had been mentioned during the evening so this is not as surprising as it might otherwise seem.) Then a young girl called "Haney", colored, spoke for a minute or two. Then an Indiana, NICokxun" spoke in almost a loud shout; they asked him to sing, as he often did, but he would not. Then Dr. Barnett spoke again saying that Anna was here again. Anna then began to speak through the trumpet in a slightly stronger voice, but still very ask. Anna said she was so glad to get in touch with us again. H.P.H. asked her if she remembered her reading to her every night at 6 p.m., and she did, and that she was nag with her Mother every night at 6 p.m. H.P.H. asked Anna if she did not inspire and help her to write "Pa, Ma, and *saw. She said she did and had. tried to impress her. Anna then said to Mrs. Ledyard, "Fatherisn't talking to me at all! C.S.H. explained to her that he had great difficulty in hearing her and asked if she had any request to make or us vohich she wished us to carry out. Anna made a short reply but we could. not distinguish a word she said. MI asked Anna if she would help her write again,and Anna said Basething with the word "impress" in it. Anna then said she was tired and bade us good night. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 123. Ledyard, Mrs. (Contod..) Each time after stopping Anna gave a kiss to her Mother through the trumpet and H.P.H. said it was absolutely characteristic of her. H.P.H. said the few wads she could. hear were in a voice like Annals. C.S.H. is not prepared to affirm or deny that it was Annals voice, it was so thin and feeble; her pronunciation of "Father" did seem to him characteristic. There followed a convereation between Mr. Reny and a Persian voice, said. to be Abdul Bahia, carried on in Persian, Mr. Remy being able to speak in that language. Dr. Barnett then spots again for some 15 minutes, often very humorously, discussing, among other things, Homeopathy vd th H.P.H. Dr. Barnett predicted. another world war in 1927 brought by Germany, Russia, and Japan against Great Britain azi the U.S., unless the Powers prevented it, as they could. He said the L. of N. would not last, that President Wilson was a good man; that the spirits of sane of the martyred Presidmtv were trying to impress upon President Coolidge that he must take part in the effort to keep peace; that ther were four spiritual leaders, now living, vtto could lead the People, - two abroad and two in the U.S. but he would not name them. K.P.H. asked if any of them were women, and. he laughed sarcastically and said No, that she was evidently strong for the women. He said Great Britain, Italy and the U.S. were honestly striving to avert war. He then bade us good-night and the seance closed. During the evening H.P.H. believed. that she saw the trumpet going around on the ceiling and blue lights around Dr. Morse. C.S.H. did not observe this. Several times those present were touched lightly and C.S.H. felt this once. Several of those present at times felt very cold draughts but C.S.H. did not. To sum up: C.S.H. went to the seance with a mind absolutely open, in fact he wanted, to believe; what impressed him was that he saw nothing tat could not easily he been prcduced by a magician in a normal manner. With all lights out it would have been easy for any one to http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 124. Ledyard, Mrs.(Cont'd.) lean over, take the trumpet ad speak through it. There never was a mment Ahan Valiantine was speaking while the voices also were speaking. The timbre of Valiantine's voice, to C.S.H., was very much like that of the voices who spoke clearly; the other voices were merely almost unintelligible whispers. Mar. 10, 1926. 112 to 118. We attend another seance with Valiantine in Mrs. Ledyard's roans. Present: Mrs. Ledyard, Dr. Morse, Mrs. Smoot and her son Mr. McNeil, (friends of Dr. Morse) H.P.H. and C.S.H. It lasted from 8 to 10:30 p.m. Just before it began, Mrs. Ledyard suggested to Valiantine that if he felt too warm, he had better remove his cost, which he proceeded to do although the roam VAS gol warm. Dr. Barnett spoke first and predicted a world war as in the former seance. Dr. Morsels Father then spoke and incidentally told Dr. Morse of the death of an old friend, giving her name, &cm he had not iteari of for many years. Anna then spoke in a thin, feeble voice but stronger than at the first seance. asked hr to describe just what the paper was in our house at Mattapoisett to Ahich shA had referred in Geneva, but the response was not satisfactory nor intelligible. H.P.H. asked Anna if she had yet met some one who had just"gone over" from Albany, N. Y.(referring to Mrs. Pelts) aid Anna said No but I will look her up, and H.P.H.said, "Anna, that scunds so like you!" H.P.H. asked Anna "hat she was doing over there. Anna replied, "I am teaching, teaching children to progress. so happy and am so glad you know I am happy.' C.S.H. asked if there was anything she wanted she said No. UA I am to do for her, but H.P.H. asked if she had any messages for her friends, but she replied, "No, they %mid not understand." Ws. Smoot's dead son then began to speak of his brother, Mr. McNeil. Mr. McNeil, to test him, spoke of a memorandum sicned by himself, his dead brother and one other perscn, also dead, and asked him where it was hidden. Ni. *brother" began http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 135. Ledyard, Mrs. (Contide) to fence, saying "You know where it is hidden," but finally said. it vias hidden in the wall of the house. C.S.H. was sure from Mr. McNeill, manner that the answer was not correct and later, Dr. Morse confirmed C.S.H.' suspicion. Finally "Dr. Barnett" bade us all good-night and the seance vas apparently over. Suddenly Dr. Morse said. he saw light around H.P.H. and same vague form surrounding her. C.S.H. saw nothing. H.P.H. said she vas feeling a cold draught of air. Then Annals voice was heard, saying "Mother, Mother." Valiantine said his controls had left him and that the voice must have been produced through Dr. Morsels psychic power. Nothtng further developed.. Previously, Dr. Barnett had told Dr. Morse he should sit alone for and hour every day and that he would soon beable to converse with spirits, - which DrAdorse said he would do. Dr. Barnett also advised ell of us to begin by sitting around a table and waiting for knocks which AOUld surely come. C.S.H. forgot to aid that H.P.H. asked Anna if she saw anything of Margaret (Harding) and she said "Ms, all the time" (This was in direct contradiction to what she said in Geneva.) There were also other phenomena, - the trumpet moved about the floor which C.S.H. saw, - and. H.P.H. said. it also moved. around the ceiling, - viaich C.S.H. did. not see. H.P.H. feels she really got in touch with Anna. C.S.H. still has an open mind, and. feels nothing was done which a magician of ordinary skill could not have done, except the announcement of the death of Dr. Morsels friend, which remains to be verified. At the close, Mr. McNeil pointed, out that the mouth of the trumpet was wet and that water had collected on the floor under it, as if a human voice had been using it. April 3, 1926. 142 to 145 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 126. Leffingwell, Russell Miller says, invented the term "Dirsct pressure" Oct. 27, 1925. 30 Lenroot, Sen. Some days ago, Sen. Learoot wrote the Board asking for data as to the use of Federal Reserve money in stock speculation to which the Board replied. Gov. C. told C.S.H. that he had written another letter on the sane subject, stating almost exactly the language the Board used when it considered the reply to Lenrootis first letter. Gov. C. said it was evident that some member had 'leaked" and he believes Miller talked with Hoover iho gave Lenroot the data Which he used. Jan. 4, 1926. 74 Winston tells C.S.H. that he is satisfied that M411,26 and Hoover are working together and had egged an Lenroot to write him two letters, as they contained arguments and statments he could not have made without inside help. Jan. 9, 1926. 79 A, draft of reply to Sen. Lenroot's second letter was read at the meeting and it was voted to send it. All voted Aye except Miller who asked to be recorded as not voting. Jan. 13, 1926. 81 Lilac sprig See - Wilson Lodge, Constance Cong. Andrew said the opposition of, in his campaign helped him. Oct. 2, 1925. 18 Lodge, Sen. Mrs. Wilson said she bought a copy of Lodge's bock -"The Senate and the League of Nations," - on the train; that Henry White was on the train and was furious at Lodge's attack on him and that he had always supposed Root and Lodge were his friends. (See scrap book) Nov. 15, 1925. See - Lawrence, Bishop 36, 37 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Lam, Breokinridge C.S.H. lunched at Metropolitan Club sitting next to a table at which were Sec. Lansing and Long. After Lansing left, Long came over and sat with me. He said he had just explained to Lansing that he could not find time to write his life. He said frankly there were many questions on which he had not agreed with Lansing while in the State Department. I cautiously mentioned having met Viscount Ishii in Geneva, and Long said he feared Ishii did not like him. He then explained how he objected to the appointment by Japan of a Japanese financial adviser for China in 1919. He said Japan had loaned large sums fo China an that the State Department was decidedly averse to having a Japanese financial adviser in China and that he cabled our Ambassador in China to protest. He said that shortly et ter Ishii called aril expressed deep regret at this protest, adding that Lansing We, told him he had no objection. Long said he then reminded Ishii of a talk he had with him on this subject a year go, and showed Ishii his notes taken at the time, showing that lr objected. He said that Iiit remembered this perfectly, but said that, a Week later, he had talked with Lansing who then weed to the appointment; that later Ishii @hosed him his dispatch to the Japanege Foreign Office based on Lcnges talk with him, which correctly stated their conversation; that Ishii then shorted him and, read him hie dispatch to his Government follow trig his talk with Lensing, in %.iiich it was stated that Lansing had agreed to the appointment. Long said that Lansing was then in Paris (1919); that he looked up Lansing's diary of appointments but it contained no reference to a talk with Ishii at that time; that he then cabled Lansing Who replied that he had. no recollection of any such conversation with Ishii, but that MUMS" conditions how he radically. changed. Long said this latter statement as to changed conditions troubled him and C.S.H. believes Long thinks Lansing did. agree with Ishii. Nov. 18, 1925. 38, 39. Long said Wilson was in error in stating that he first heard of the secret treaties abroad in 1919; that he knew that Balfour told Wilson of them in May 1917 at a secret conference at the White House; that he did not know whether Balfour told Lansing or not. • (The Shantung secret treaty Wigs dated Jan. 21, 1917) Nov. 18, 1925. 39 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 128. Long, Breckinridge (CentId..) C.S.H. told Lang that Lansing once told him he did know of these secret treaties and that he haci put this down in his Diary, but that, shortly after, Lansing told te Banat• Ccoraittee he did. not know or them. Nov. 18, 1925. 40 Long said that frau 1919 to 1921 Wilson never commie ated with Lansing in any way; that he, Long, practically managed the State Department during this period.; that at one time the question arose whether we should withdraw our troops from Russia to avoid open conflict with the Bolsheviks; that Lansing could not help him; that finally he got Ttmulty to cable Wilson just what to do and that shortly after a cable came from Wilson Nov. 18, 1925. 40 ordering the withdrawal. Long said Ray Stannard Baker was to have visited him at Nantucket this last summer, but had to go West; that he was glad to talk with him but would write nothing; that his Diary showed the correctness of that he had to say. C.S.H. asked Long if he would object to his writing Baker urging the importance of a speedy talk with him, and he said he had Nov. 18, 1925. 40 no •objectton. Louden, Mr. We meet, Dutch Minister to Paris, at dimer with Sir Herbert and Lady Ames at Geneva. In 1919 he was Minister to U.S. and spoke in Albany. He was to have stayed with Mrs. Pruyn but because of her death he stayed with Robert Pruyn. SePt .15, 1925. 6 Low, Sir Maurice Told C.S.H. that the State Department notified 40 American newspaper corresporf3.ents that there would be an important conference at the State Department at 4 p.m.; that hub. Houghton was there and told them he had some remarks to make but that he should not be quoted personally; that later he would be glad to answer questions, on the same urderstanding. This shwa that Houghton's attack on the L. of N. and the great Powers was premeditated propaganda on the part of the State Mar. 29, 1926. 137 Department. Luxemburg Had passport visaed by the Consul of the Grand Duchy of. Sept. 17, 1925. 7 was 5 francs. We arrive at Luxemburg at 6:30 p.m. Hotel Brasseus. Sept. 20, 1925. 10 Comfortable. The charge Very http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 129. Luxemburg (Cont'd.) We left Luxemburg for Brussels at 10 a.m. Sept. 21, 1925. 10 -MMacDonald, Ramsey Criticises work of Carnegie Board, saying it had spent $750,000 for no practical purpose. Delano agreed with him. Dec. 5, 1925. 57 MacVeagh, Sec. 15, 16, 17 See - Andrew, Cong. Malignes Riding from Brussels to Antwerp we stopped en route at Ma,lignes. Visited the Cathedral. The carillons were not playing as they were being repaired. Called on Cardinal Mercier; he was at a ccnference but his Secretary showed us over the Palace, showing Us the Chapel and pictures. Sept. 23, 1925. 12 Maloney, Mr. President of Federal Trust Co. tells Gov. C. that there is sone feeling in Boston that the Senatorial fight in Mass. may injure C.S.H. chance for reappointment, intimating that Butler might insist on putting some Republican politician in my place. May 12, 1926. 187 Martin, Dr. T. C. C.S.H. is examined by. Everything normal. Feb. 2, 1 926. 96 Martin, Edward S. See -; Arnold, Mrs. Marvin, T. David Lawrence says Coolidge has redesignated Marvin as Chairman of the Tariff Cond.ssi on; that he wanted to designate Dennis, a Democrat, and a personal friend of his, but that he yielded to Butler's wishes to help him in his Senatorial campaign. Jan. 20, 1926. 92 Mattapoisett We reach Mattapoisett Sat. evening, Oct. 3, frcm abroad. Oct. 3, 1925. 15 C.S.H. delivers address on L. of N. at the Congregational Church. Oct. .22, 1925. 29 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1z. McAdoo, Sec. Willis says in his b ook that the suggest ions of, for revising the preliminary draft of the Federal Reserve Act, were abandoned. April 4, 1926. 150 McCoy, Chief Justice Tells C.S.H. Judge Covington is a first class lawyer. Nov. 16, 1925. 37 See - Wilson McCrary, Mr. Corgptroller of Currency moved that the Special Cormittee investigate the conduct of Director McCrary in connection with the shipment of Federal Reserve notes to Havana and to report whether he should be eliminated from the Federal Reserve System. Passed unanimously. May 20, 1926. 193 James wanted the Board, at once to remove McCrary and said, he me ready to move to that effect. C.SdH. pointed. out that there was absolutely no evidence in James's report justifying such ec ti on, and most of the Board agreed with C.S.H. James insisted that the bare fact of his going with the Party justified his removal. C.S.H. replied that, conceivably, he might have been directed to go by the Atlanta Board, end that we should take evidence May 20, 1926. 195 before acting. • James bitterly attacked loCrary saying that in 1924 he used his position as a Director of the Atlanta Bank to coerce member banks into buying bonds from him and that they did not dare to refuse last he might cut down their rediscounts; that a representative of the Attorney General's office made an ,bile he had investigation for the Board and reported that ' not find were he true, could strong suspicicts the charges evidence enough to convict him. C.S.H. remembers this. May 20, 1926. 199 McDonald, J. G. Invites C.S.H. to a dinner to be given by the Cansittee on International relations to Lord Cecil who vs to address them and answer cuesti ons. C.S.H. regretted, - another engagement. Sept. 15, 1925. 5 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 131. Macugal, Gov. 124, 147 See - Federal Reserve Bank, Chicago Olsen McFadden, McFadden bill Board sends a letter suggesting certain changes in McFadden bill, especially that part relating to Sec. 5200, U.S.R.S., Made no mention of the Branch bank features. Unanimous Prof. Sprague was present and Board's letter was based on his report. Jan. 7, 1926. 76 Glass says Edge agreed to fight with him to a finish to back up the Senate Committee report cn the McFadden bill but that Pepper was evasive. Mar. 21, 1926. 126 McFadden quotes Gov. Cos interview as to lusiness r ecession. April 1, 1926. 139 See - Crissinger, Gov. Sen. McLean asks Board to express its opinion on the McFadden bill as reported by the Senate Cmmittee. Platt said he had talked with McLean and Glass and that they both hoped the Board would, express a favorable opinion as in that event the Senate would quickly pass it. The Board met at 3 p.m. Present: Sec. Mellon, Gov. C., Platt, James ani C.S.H. C.S.H. said, viewed as a compromise, it vas a fair compromise and read an indorsement of the bill prepared by him and O.K.'d by Wyatt. Mr. Collins, representing the Comptroller of the Currency, at a meeting with the Board in the morning expressed his and the Comptroller's approval. Miller and Cunningham were away. The Board voted unanimously to advise Sen. McLean of its approval of the bill as reported by the Senate Cmmittee. (See scrap book) April 23, 1926. 169, 170 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis McFadden bill (Ccated.) C.S.H. called up Glass to see if he approved, before the meeting, but Glass yips in Richmond. C.S.H. then wrote him that the Board would undoubtedly approve the bill in the afternoon and sent him a copy of his memorandum ccmparing the House and Sen. Cam ittee April 23, 1926. 170 Milton Elliott tells C.S.H. that at one time•Ccmptroller Williams seriously thought of bringing McFadden before the and jury for his violations of the National Bark Act as President of the First National Bank of Canton, Pa., and for certain omissions in his bank's accounts; that he made many bad loans as President, on his own indorsersent to certain concerns in which he was interested; that he violated the 10% limit. He also spoke of McFadden's suit vs. Conptroller Willians alleging a conspiracy to wreck his bank and said. the state judge, controlled by Penrose, held up hks decision for over a year. He said that recently the canton bank had forced McFadden to resign as President and had. bretight suit against him for over $50,000 as bad paper indorsed by him; that the Bank had petitioned him into bankruptcy; that his debts were $250,000 and his ssets not over $50,000. April 29, 1926. 174 Deputy Comptroller Kane, in his book "The Romance and Tragedy of Banking" devotes a chapter to McFadden sad his suit against John Skelton Williams. He gives a copy of his sworn affidavit filed in the suit of *Fadden vs. Williams. He stated in the affidavit that long before Williams took office the First Nationg Bank of Canton, Pa. had bean repeatedly criticised, based on the r sports of four different examiners; that these criticisms covered excessive loans, unlawful holdings of real estate, imprcper cash items, defective bookkeeping methods, unlawful investments in and purchase of stock, statutory bad. debts, concentration of loans to interests in which McFadden was interested., ant excessive liabilities of directors and other interests. Kane also stated. that the bank had been subject to criticism for a number of years and had. been placed on the "Special List* because of its generally unsatisfactory condition due to excessive loans, reserve deficiencies, unlawful real estate holdings, slow and unsatisfactory loans, irregular cash items, unsatisfactory methods of reconciling bank balances, and persistent disregard of the National Bank Act and the admonitions of the Comptroller's office. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis IN, McFadden bill (Contsd.) Kane also said that on May 24, 1918, the Conptrollaris office sent a letter to the Board or Directors to the effect that if President McFadden is not inclined to observe the instructions of this office, he should be required to resign....; that he wrote this letter and Williams did not know of it before it went out. Earle further added that the frequent reports and special examinaticns were not made frail any ill will of Williams, but because of the continued unsatisfactory condition of the bank, and the attitude of the daninantmanagemsnt, mho, because of the fact that he was a member of Congress, seemed to be under the impression that he was su.perior to law and. the regulaticns of the Conptroller of the Currency. (See pages 481 to 483 of Kane's book.) May 8, 1926. 182, 183, 184 Gov. C. says McFadden's appointment to the Federal Reserve Board would be so purely political that he could not believe it would be made. May 12, 1926. 187 McIntosh , See - Conptroller of Currency McLean, Sen. Platt tells C.S.H. that he talked with, a few days ago and that he strongly favored C.S.H.Is reappointraent. April 20, 1926. 166 Asks the Board to express its opinion on the McFadden bill as reported by the Senate Conmittee. Platt said he saw *Lean and that he hopes that the Board will give a favorable expression and. if given, he said the Senate would. vickly pass the bill. April 23, 1926. 169 The Board unanimously voted to advise Sen. McLean that it approval the bill as a step in the right direction. April 23, 1926. 170 Medium See - Arnold, Mrs. Ledyard, Mrs. Gavit, J. P. Mellon, Ailsa Mrs. Bruce acknowledges H.P.H.Is letter congratulating her on the engagement of her son to Allis Mellon. May 7, 1926. 180 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis la' Sec. Is opposed to any present increase in discount rates at Boston. Oct. 19, 1925. 28 Directors of Federal Reserve Bank of Boston still favor higher rates but all not inclined to press the matter in view of the attitude of the Board and of Sec. Mellon. Oct. 21, 1925 28 It was voted, at a discussion before the Board and the Open Market Committee, that Gov. C. and Gov. Strong inform Sec. Mellon of the agreement to increase rates at Boston, Phila. and Cleveland before any increase at New York. Oct. 27, 1925. ao On the approval of the Boston rate, Gov. C. did not mention the opinion of Sec. Mellon, but C.S.H. assumed it was favorable and that Gov. C. had consulted him as voted above. Nov. 6, 1925. 33 Gov. Strong tells C.S.H. that he had gone over the matter of the Boston increase with Sec. Mellon, who approved it. Nov. 7, 1925. 33 Richard Olney tells C.S.H. that Sec. Mellon is very liberal as to debt settlements; that Sec. M. made an agreement with Caillous as to the French debt, but that the Republicans on the Commission would not stand for it; that Sec. M. received more help from the Democrats on the Commission than from the Republicans. Nov. 7, 1925. 34 Sec. Mellon sits with Board to hear Gov. Strong on proposed purchase of bills from tha Bait of Belgium. Nov. 25, 1925. 44 Sec. Mellon pointed out that Gov. Strong would secure a proper guaranty for payment. Nov. 25, 1925. 45, 46 Gov. Strong points out that the Board had allowed a month to elapse before acting on the recommendation of the Open Market Committee, and that meantime Sec. Mellon had completed his financing plans on the feeling that the 38 milltons of Govt. securities would be replaced. Dec. 1, 1925. 50 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mellon, Sec. (Contld.) Gov. Strong says Miller is trying to put the Board and the Open Market Committee in a false position and that he will take up the matter with Sec. Mellon and the President. Dec. 22, 1925. 66, 67 Gov. C. says that Sea. Mellon believes that Miller is acting with Hoover and trying to embarrass the Board; that Sec. Mellon was very iniignant at Hoover, vb o, be said bad criticised the Open Market policy of the Board; that Sec. Mellon was very indignant at Miller and asked him when Miller's term expired; that Gov. C. told him it had. only just begun. Dec. 22, 1925. 69 The Board, agreed to reconsider the tie vote on abolishing 15-day collateral notes and to take it up ag[iin when sec. IV allot) could be present. Miller moved the vote. Jan. 8, 1926. 78 Winston tells C.S.H. that Sec. Mellon is very much disturbed at Miller's motion, as it would seriously interfere with.Treasury operations; that Sec. Mellon was very angry with Miller; that they believed that Miller and. Hoover were working together and had egged on Sen. Lenroot to write his two letters, as they contained statements and. agreements Lenroot could not have written without help arti knowledge of what had passed in the Board. Jan. 9, 1926. 78, 79 Sec. Mellon semis word to Board that he is absolutely opposed to Miller's motion to abolish 15-day collateral notes. Jan. 13, 1926. 81 Sec. Mellon presided at the meeting of the Board to consider the draft of Miller's letter to the Federal Advisory Council asking for its advice and assistance in helping the Board, to curb or eliminate the use of Federal Reserve money in stock transactions. Sec. Mellon criticised the action of the Boar4 taken a week ago, in directing Federal Reserve Agents to send to the Board regularly & report of all member bank borrowings from the Federal Reserre Bank of New York exceeding 2 millions. It was pointed out to Sec. Mellon, howeter, that this called for no report tram member banks, - that it merely directed the Federal Reserve Agent to segregate the gross figures regularly sent to the Board, that it was merely for the information of the Board, and the member banks would, not necessarily oven know of this order. Mar. 11, 1926. 119 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 136. Mellon, Sea. (Contld.) Sec. Melon said that Sen. Glass had just told him that be and Sen. Pepper were to try to secure an addition to the McFadden bill, extending indefinitely the ?edema Reserve bank charters and he feared this would be imperilled if the proposed letter of Miller should leak it or it should be made known that the Board was contemplating radical contra over stock exchange transactions. On C.S.H.'s motion it was finally tabled. Mar. 11, 1926. 119 - 122 C.S.H. later explained to Sac. Mallon, in his office, the danger from having such& letter became known, and further pointed out that Miller, in his Boston speech, todk the position that Federal Reserve banks should refuse discounts to member banks Which had made speculative loans. C.S.H. said the letter Was sure to leak and added that for a long time he bad believed, but could not prove, that there was a pipe line running tram our Board. Sec. Mellon grimly replied • "I know this and feel sure we have the same persons in mind at each end of the line," referring to Miller and Hoover. Mar. 11, 1926. 122, 123 Gov. Harding tells C.s.H. not to have his reappointment mentioned to Sec. Mellon until after the Pennsylvania primaries, as sec. Mellon is fighting for Pepper and might be induced to trade off C.S.H.'s position to help Pepper. Mar. 21, 1926. 126 Gov. C. went to ask Sec. Mellon to came into the meeting, but he was in Philadelphia. Mar. 24, 1926. 130 Sec. Mellon presides at meeting of Boerd to act on recommendation of Open Market Committee to increase the System's holdings of Government securities to 300 millions up to April 15. ‘' • Sec. Mellon said there was undoubtedly same recession in business and that no one could say it might not suddenly increase; that &policy of liberality locking towards more credit and easy money conditions would be of great advantage at the present time. sec. Mellon voted to give the requested authority. Aye: Sec. M., Gov. C., James, C.S.H. Passed. No.: Platt, Ailler, Cunningham Mar. 25, 1926. 131 to 133 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mellon, Sec.(Cont id.) C.S.H. suggests to Mr. Boman that the Attorney General speak to Soc. Mellon before he speaks with Coolidge as to C.S.B.,s April 1, 1926. 140 reappointment. Sen. Glass says he will confer with Sec. Mellon as to C.S.H.'s reappointment and urge him to have it made at coca. April 4, 1926. 148 Sen. Glass says he will see Soc. Mellon as soon ske he returns to Wallington. April 8, 1926. 155 C.S.H. suggests to Glass that it might be well for sen. Bruce to see Sec. Mellon and the President. April 11, 1926. 157 Winston tells Platt he will tell Sec. Mellon that C.S.H. should be April 12, 1926. 157 reappointed. Gov. Strong tells C.S.R. that Sec. Mellon told him that Miller said. he (Governor Straw) was influenced by the needs of the stock market in his open market operations. April 13, 1926. 158 Sea. Mellon presides and votes to write Sen. McLean approving the McFadden bill as reported by .the Sense Committee. April 23, 1926. 169 Sen. Glass goes into Sec. Mellonis office and returns saying, in confidence, that sec. Mellon said C.S.H. deserved reappointment and that he would strongly urge it On Coolidge. May 5, 1986. 177 Curtiss says Sen. Butler told Wing that Sec. Mellon would control in the matter of C.S.H.'s reappointment sad that he thought he had some Pennsylvania man in mind; that Wing thought it might be Gov. Norris. May 7, 1926. 179 Gar. Harding says Sen. Bruce should see sec. Mellon at once; that Bruce had supported his policies. May 7, 1926. 179 C.S.H.is only fear is that sec. Mellon may find it hard to resist Sen. Bead (Pa.) May?, 1926. 179 Gov. Harding writes that Mr. Bosman will write the Attorney General to see sec. Mellon at any time.C.S.B. deems it advisable. . May?, 1926. 180 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 138. Mellon, S.C. (Cont'd.) C.S.H. mites Gov. Harding that sen. Bruce and Sen. Glass have each seen Sec. Mellon. May 6, 1926. 1 81. C.S.H. is inclined to think that Sec. Me11cn may have told Glass in confidence that the matter was settled in favor of C.S.H. May 8, 1926. 182 Ccaptroller of Currency tells C.S.H. that sec. Mellon is much disturbed about conditions in the Board. May 11, 1926. 185 Comptroller says Sec. Mellon spoke very appreciatively or C.S.H. anti said he had always found him cooperative and helpful; he said Sec. M. asked him if he did not believe C.S.H. should be reappointed and that he told. him he certainly should be. He told Sec. Mellon that C.S.H. was very independent in voting but always helpful and courteous; that he believe" every member would be please" to have him ritappointed. He said. that sec. Mellon said he considered C.S.H. as a close friend. He said Sea. Mellon said he bad seen much of Anna at his home; that she was one of Atlas's dearest friends; that if there were no other reason, his close friendship with C.S.H. and his aff3ctinn for Anna would make it impossible for him to recommend any one else fir appointment. May 11, 1926. 185, 186 C.S.H. tells Gov. C. that he felt confident see. Mellon would have the decision in the matter of reappointment. May 12, 1926. 18? The Comptroller told C.S.H. that Sec. Mellon was much disturbed as to the suggesticn of Miller that Federal Reserve banks should be forbidden to discount for banks making speculative loans; that Sec. M. said he had made a 'Feat mistake in recommending Miller for reappointment two pars ago. May 14, 1926. 188 Sec. Mellon has no use for Platt, the Comptroller said. May 14, 1926. 188 Gov. Harding tells C.3.H. that Butler told. Wing thatthe matter of reappointment of C.S.H. had been taken out of his hands sald left with Soo. Mellon end the President. May 17, 1926. 190 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mellon, Sec. (Ccatid.) C.S.H. insists that Sec. Mellon be consulted before action on James' report that the Cuban Agency of Boston be discontinued. May 20, 1926. 197 The Comptrbller tells C.S.H. that Sea. Mellon knows the whole situation as to the Boston Cuban Agency and. will quiet James. May 20, 1926. 197 Miller moves to aã the State Department its opinion as to any Cuban Agency in Havana. C.S.H. objects to going over the head of Sec. Mellon. C.S.H. moves that sec. Mellon be asked to ascertain the opinion of the State Department. Passed unanimously. May 20, 1926. 198 Member bank collateral notes. Sen. Glass tells C.S.H. he has no objection to the proposei &sentiment to the Federal Reserve Act as to member banks collateral notes. Jan . 6, 1926. 75 C.3.H. and Platt report favorably on amendment to Federal Reserve Act permitting Member bank collateral notes secured by eligible paper (but not by Govt. securities), up to 90 days. The amendment had been suggested. by McFadden, approved by the Federal Reserve Agents and Governors, and also by Mr. Waiturg with slight modifications, and. also by sen.Glass. The Of:mittse made the authority contingent upon conditions, restrictions and limitations to be imposed by the Federal Reserve Board. The Cm:mittens pointed out that this privilege was not needed? by the large banks, but would induce the owl 1 banks, vtho were now borrowirg frail their correspondents, to rediscount with the Federal Reserve banks; that these banks now can rediscount only the paper they offer, and if any technical defect is found in a piece of paper, it takes time to correct it and the banks have to wait for their rediscounts. The Ccmmittee felt that if the banks could give a direct note secured by the pledge of eligible paper of say, 120%, of the face of the note, the defect of any one piece of paper could be eased without delaying the rediscount. Dr. Miller moved to amend the Federal Reserve Act so as to abolish 15-day collateral notes. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 140. Sember bank collateral notes (Contod.) Failed by a tie vote: Aye: - Gov. C., Miller, Cunningham No: C.S.H., Platt & James It was agreed to take this up again when Sec. Mellon could be present. Jan. 8, 1926. 76, 77, 78. Miller's motion to abolish 15-day collateral notes, defeated. Ale:- Miller, Cunningham NO; Gov. C., C.S.H., Platt, James, Cogptroller of the Currency. Jan. 13, 1926. 80 Gov. C. changed his arigirml vote although he said he did not believe in these notes. Miller tried to persuade him how illogical he was. Sec. Mellon sent in wcrd that he was absolutely opposed to Miller's motion The report of C.S.H. and Platt was tam adopted by the Board. Aye: - Gov. C., Platt, C.s.H., Cunningham, Jams. Ccmptrollsr of Currency. Jan. 13, 1926. 81 Mercantile Trust Co.,Sam Francisco. 89, 60 see - Branch bank. Mercier, Cardinal We call on, in Maligns., but be was engaged in a conference. secretary showed us over his Palace. Sept. 23, 1926. 12 His Merritt, Dr. Dr. Ruffin makes an appointment with, to examine C.S.H.'s gallbladder at the Garfield Hospital. Dec. 4, 1925. 56, 57 C.S.H. has gall bladder tested at Garfield Hospital. night there. Dec. 9, 1925. 62 Spent 4. day and Metcalf, sen. C.S.H. suggests to Glass to speak to, about his reappointment. April 3, 1926. 141 Glass writes that, was unqualified in his advocacy of C.S.H. and earne.tly hoped he would be reappointed. April 8, 1926. 155 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 141. Mots Arrived at Grand Hotel where we had a very good. rocm and bath for 60 French francs ($3.00) per day. Sept. 19, 1925. 10 Drove from Meta to Verdun and return. Left for Luxemburg at Sept. 20, 1925. 10 4:30 p.m. Miller, Dr. Adolph Believes discount rates at New York should be increased. Oct. 12, 1925. 23 Says term wdirect pressure" was invented by Leffingwell. Oct. 27, 1925. 30 Gov. Strong told Platt ani C.s.H. that he felt keenly the lack Miller of coartesy and attacks of certaL n Board member s, and James, especially - and that some months ago he got Gov. Crissinger to ask Miller to cane into his room and that he then and three told Miller and Gov. Crissinger that henceforth his relations with the Board: would be purely official. He added that he had received invitations from Miller to lunches and dinners but that frail now on he should decline Oct. 28, 1925. 30, 31 them. Miller• says that as between rate increases proposed for Boston, Philadelphia and Cleveland as opposed to New York remaining where it is he decidedly favored an immediate increase at New York and should vote for Cunningham's motion to put in at mice a 41$ rate at New York in spite of the New York directors Nov. 6, 1925. 31 apposition. Miller said there was too much credit in the country and that New York should be forced to increase its di count rates. Nov. 6, 1925. 32 Miller said such increase would not put up custcmers rates. He admitted that customers rates in New York were now high enough. Nov. 6, 1925. 32 James reminded Miller that the whole Board voted for the agreement with the Open Market Cannittee, - an Oct. 27, - that rates should first be increased at Boston, Philadelphia, and Cleveland. Miller denied this and said he had never agreed to this, but as being cp.estioned admitted he had never said a word at the meeting of Oct. 27th to indicate any disapproval of the unierstanding reached. As a fact, at the close of the http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 142. Miller, Dr. Adolph (Cont'd.) conference it was voted that Gov. C. and Gov. Strong should inform Sec. Mellon of the agreement and Miller certainly did not vote against it or indicate any disapproval. Nov. 6, 1925. 32 Miller said that if Cunningham's motion were voted down he woald then vote for the increases at Boston, Philadelphia, and Cleveland. Miller evidently believes Cunningham's motion will be defeated and that he Can safely vote for it as a "gesture." Nov. 6, 1925. 32 On vote, Cunningham's motion was defeated. Aye: Miller, Cunningham No: Gov. C., James, C.S.H. Nov. 6, 1925. Miller voted for the Bo 32 on increase. Nov. 6, 1925. 32 Miller dbjectei to having the new rate take effect only at close of business on Monday instead of today, - Friday,- and intimated that if held up so long some ofthe Board might Nov. 6, 1925. 33 "leak." Milleriotes to approve increase In Cleveland rate, but voted with C.S.H. against postponement of effective date fmom today, Wednesday, tntil next Monday. Nov. 11, 1925. 35 Miller, while Board was considering a report of Open Market Committee said that 100 millions of Government securities should be sold at once, but =mid that 50 million be sold, including the 38 millions maturing Dec. 15th, Lost. Miller voted Aye, as also Platt and Cunningham Nov. 23, 19256 42 Votes in favor of C.S.H. motion that Board approves in genral the report of Nov. 2, but colleen immediate meeting of the Open Maeket Conmittee to consider Whether changed conditions do not no* call for a change in Open Market policies. Nov. 23, 1925. 43 Voted for Platt's motion that the giestion of replacing the 38 'millions maturing on Dec. 15th be considered at the meeting. Nov. 23, 1925. 43 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 143. Miller, Dr. Adolph (Ccutici.) the Bank of Belgium of Insists that the form of guaranty by Bank, New York, be bills bought by Federal Reserve submitted to Board for approval. Nov. 25, 1925. 45 voted for approval of the Finally withdrew his objection and purchase from the Bank of Belgium. Nov. 25, 1925. 46 e C.S.H. explained that At the meeting of Open Market Connitte a conpromi is between his roe olu.ticn calling the meeting was H. said Miller said at Miller's and Platt's views. C.S. Govt. securities the Board meeting that 100 millions of t and he feared an should be sold as credit was most redundan d that the 38 millions era of inflation, while Platt had move maturing Dec. 15th be not renewed. Nov. 25, 1925. 48 millions and said his Miller denied C.S.H.'s statement as to 100 ions. motion called 6nly for the sale of 50 mill which shared Miller's James insisted cn having the minutes read on as to 50 millions statement as to 100 millions and his mcti Dec. 1, 1925. 48 desired was deflation, Gov. Strong said that what Miller really accomplish this pure and simple, and that the only way to which would bring deflatianons to increase discount rates, about firthor importation of gold. Dec. 1, 1925. 49 ng's plan to replace Miller votes against approval of Gov. Stro the 38 millions of Govt. securities. Aye: No: Gar. C., C.S.H., James Miller, Platt. Dec. 3, 1925. 50 Reserve Agent Perrin that Miller tells Board he hai told Federal so great that he the opposition in the Board to him was . 51 1925 Ded. 3, ought to resign. in in behalf of the C.S.H. asked Miller if he said this to Perr Board and he said he said it only personally. Dec. 3, 1925. 52 gnation; that he Miller evressed deep regret at Perlin's resi in the Federal considered him one of the ablest chairman Calkins had Reserve System; that his conflict with Gov. Dec. 3, 1925. 52 practically ceased. " http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 144. Miller, Vr.. Adolph (Conted.) C.B.H. feels Miller's statement to Perrin is extraordinary and that he will place his protest on the record. Dec. a, 1925. 52 Miller opposes settling the application of Mercantil Trust Company far branches at Burlingame and Palo Alto by extending the boundary of "adjacent territory." Dec. 8 1925. 61 Miller moves that the Board grant the application as Drum had substantially complied with the Board's regulations. Passed: Ago: Gov. C., Miller, Platt, C.S. H. No: Ccavtroller, Cuningham, James Dec. 8, 1925. 62 Miller votes for motion that examination Cazrnittee consider aid report on adtrisability of extending definition of *contiguous territcry" to Burlingame End Palo Alto. Dec. 8, 1925. 62 Miller votes against many increases of salaries recconended by Dec. 15, 1925. 63 FSxaminati cn Cariitte. Miller opposes Gov. Strongis rawest that Open Market Committee 'buy from 15 to 20 millions of Govt. securities, saying it would directly be feeding the stock market. Dec. 21, 1925. 65 C.S.H. asks Miller if he objected to the banks rediscounting to aid the money market and he said No. Dec. 21, 1925. 65, 66 Gov. Strong tolls C.B.H. that he is very indignant with Miller; that Miller was trying to put the Board and the Open Market Committee in a fallse position and that he should take up the matter with Sec. Mellon and the President. Dec. 22, ;925. 66, 6? The Board took up the question whether the %mon Market Canuittee should be authorised, to buy 15 cr 20 millions of Government securities. Miller stated, in reply to Governor Crissinger that he had no motion to make but would merely vote against approval. C.S.H. moved approval, saying that Miller hat said too much as to the stock market. Passed: All voted fa. it except Miller and Cunningham. Dec. 22, 1925. 6?, 68 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 145. Miller, Dr. Adolph (Contod..) Miller med.e no comment on Gov. Crissingeris stet ement that the New York directors voted. unanimously to buy from 15 to 18 millions of Govt. securities. Dec. 22, 1925. 68 Gov. C. says Miller is acting with Hoover and is trying to embarrass the Board; that sec. Mellon said the same and was very indignant at Miller and 'asked. Gov. C. vilhen his term expired, but Gov. C. said it had but just begun. Dec. 22, 1925. MI &MC; thinks Miller is not loyal to the Board. C.S.H. believes Miller is intriguing with Hoover. Dec. 22, 1925. 69 Miller attends the Wilson ciinrar at the Mayflower, presided over by Delano. Dec. 20, 1925. 70 Gov. C. says that on the morning a Dec. 31st Miller eme into his roan Erni found Gov. Norman, of the Bank a Ragland there; .that Miller very severely critidised the rubber ezport duties of Great Britain; that Gov. Norman told Gov. C. he MS mach disturbed and anased at what Miller said. Miller presumably was quoting Hoover. Jan. 4, 1926. 73 Miller moves to recommend an amendment to Federal Reserve Act abolishing the 15-day member bank collateral note. Failed by a tie vote: Aye: Gov. C., Miller, Cunningham No: C.S.H., Platt, James Agreed to take this up later when Sec. Mellon was present. Jan. 8, 1926. 78 Winston tells C.S.H. that he mid Sec. Mellon are very mach disturbed at Miller's motion; that if enacted it would seriaisly interfere with Treasury operations; that Sec. Mellon wils very angry with Miller; that they were satisfied that Miller and Hoover were working together and had. egged on Sen. Lenroot to write his two letters, as they contained statements and apieements vdaich he could not have made without help. Jan. 9, 1926. 78, 79. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 146. Miller, Dr. Adolph (Cont Id.) Miller's motion to abolish 15-day collateral notes taken up and defeated. Aye: Miller, Cunningham No: Gov. C., C.S.H., Platt, James, Corcstroller PAL 13, 1926. 81 Gov. C. changed his vote to No. Miller tried to persuade him how illogical he was. Jan. 13, 1926. 81 Sec. Mellon sent in wad that he was absolutely opposed to Miller's motion. Jan. 13, 1926. 81 Miller votes against proposed. amendment permitting member bank collateral notes secured by eligible paper (but not by Govt. securities) up to 90 days. Jan. 13, 1926. 81 The Board agreed on a reply to sin. Lenroot's seconi letter. All voted for it except Miller who asked. to be recorded as not voting. Jan. 13, 1926. 81 Miller told the Board that Gov. Norman, ' ,then here, told him that the New York call loan high rates made the diaccunt rate negligible and that he could not understand why the New York disc cunt rats had not long ago been increased. Jan. 13, 1 926. 81, 82 Charles Warren tells C. S. H. that he met Miller at dinner a few days ago; that he was so loquacious that he thought' he must have taken an extra cocktail; that Miller began to talk of the fight in the Board in 1915 over the proposed. reduction in number of the Federal Reserve banks; that he said. he nes the saviour of the situ.sticn; that he defeated. the attempt by his vote; that Sec. Lane told him that President Wilson was very sorry that he favored reducing the number; that he told. Lane he was very much mistaken, as he was on the President's side in the dispute, and alwais,hed been; that after the atterapt had been killed by his vote, the President sent him a most grateful letter. This is the most extraordinary statement C.S.H. has ever heard. As VoL. 3 of C.S.H.'s diaries will show, the committee which favored reduction consisted of Warburg, Delano and. Harding. The Ccramittoo secretly got Miller to sit with them, thus constituting a majority of the Board. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 147. Miller, Dr. Adolph (Cont d. In the bitter discussion of the report favoring cutting down, Miller sided unequivocally with the Committee and even voted against C.S.H.'s motion that the Committee report the evidence on which their repart was based. Miller at first denied that he had been sitting with the Comaittee, but finally, in answer to questions from Williams and C.S.H. admitted that he had sat with the Committee and that he had even written the report! Delano several times during the debate stated that the Cammittee report was favored by a majority of the full Board, which could only mean that Miller had promised the Committee his vote, and at no time did Miller deny the accuracy of Delano's statement, although later he claimed that he had an open mind throughout. The matter was not settled by Miller's vote for no vote was taken on the merits, as during the debate, an opinion was sent to the Board from the Attorney General, - asked for by C.S.H. at the suggestion of McAdoo and President Wilson, - that the Board could not legally cut down the number, and this ended the matter. Delano ftally moved, after the opinion was received, to table the *Ale matter, and very likely Miller may have voted for this. At this very meeting Miller bitterly criticised Wilson for his executive interference! Very likely Lane did speak to Miller, for it was apparent that Miller was weakening during the debate, and we thought he might finally "welch" an the Committee and desert then, but the occasion did not arise, for the reasons above stated. Lane may have reported. to Wilson that Miller 11011 ready to "welch" and Wilson may have written Miller thanking him, but I do not see how he could, as only shortly after this McAdoo told C.S.H. that Wilson was seriously considering salting Miller to resign, and it was only C.S.H.'s protest that saved him. Glass understamds all the above and told MA a few days ago that Wilson had asked him to take Miller's place. (See vol. 3, diaries, p. 60, 63, 66, 157.) 88, 89, 90. Miller votes to refuse permission to Federal Reserve Agent Jay to publish at once his figures as to stock exchange loans. Feb.6, 1926. 98, 99 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 148. Miller, Dr. Adolph (Canted.) Miller moves that for Approval collections, decided that "Employee." all Federal Reserve banks be reqpired to report, of Board, all sums paid counsel for claims, etc. although the Supreme Court of U.S. had an Attorney was neither an "officer" or Passed: Aye: Miller, James, Cunningham No: Platt, C.S.H. Feb. 9, 1926. 106 Miller later moved that a min be fixed under which no report need be made. Passed. Feb. 9, 1926. 106 Miller bitterly attacked the draft of Annual Report prepared by Dr. Stewart, especially the reasons given for not approving an increase in discount =Ass at New York and said he might file a minority report. Believing that the New York rates should have been increased long before they were he naturally did not like the reasons Fiven by the Board for not increasing them. He particularly objected to the statenent that hig4er rates might have brought about further imports of gold, evidently not wanting such a good reason to appear in the report. C.S.H. reminded Miller of Gov. Norman's statement that the high New York call loan rates threatened his gold. Dr. Stewart told Miller that increasing to 4% would put a higher base under the call loan rate and tend to keep it up, and would tend to increase customers rates, at a time of crop moving. Miller said higher discount rates would reduce call loans and that the credit thus released would lower customers rates. Dr. Stewart and the Board disagreed with Miller. Miller kept saying, - "if you will only change this and that it will enable you to 'get bye as if the Board was trying to bolster up a clearly indefensible case. Miller also said that Dr. Stewart was taking a particular date so that his reasoning would tally with the figures. Dr. Stewart was very indignant at this and replied that he to* figures of the date under discuss!. on by the Board. C.S.H. believes Miller will not dare to file am inority report. Mar. 2, 1926. los, 109, 110 Miller, Dr. Adolph (Contld.) The Board considers the draft of a letter, prepared by Miller, to the Federal Advisory Council asking for advice and assistance in controlling or eliminating security loans an call. t http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • ••••• Sec. Mellon thought that the chance of extending the Federal Reserve bank charters would be imperilled if it should leak out that the Board was contemplating radical control over stock exchange operations. C.S.H. said he had no objection to a letter to the council for advice as to What control the Board legally could exercise in respect to excessive use of Federal Reserve funds in the call loan market, but that Miller's letter stated that the Board is trying to develop a procedure which will check or altogether eliminate bhe misuse of Federal Reserve Credit facilities; that this seemed to imply that the Board had already decided that it had the power to refuse discounts to a bank having any speculative loans, either in the call loan market ar an real estate. C.S.H. said this was a very doubtful *esti= of law; that in amber banks were not sel.ely,qomnir,cial banks, as Miller's letter seemed to imply; that they could lawfully make security loans as well as agricultural or commercial loans; that they are bound to carry a reserve with the Federal Reserve bark against every lawful loan resulting in a deposit liability; that if their reserves became deficient they had to pay a penalty; that when a bank bcrrowed from the Federal Reserve bank to make good its reserves and prevent a deficiency, it made good its nit reserves and not the reserve against any specific loan, whether commercial, agricultural, or on securities. C.S.H. said thl Board Should carefully consider hcer far any undue diversion of credits into speculative channels could be corrected by direct pressure an the officers of the bank before resorting to the drastic expediency, even if legal, of refusing discounts altogether. C.S.H. feared that Miller's letter would be construed as a determination by the Board, in advance of the Council's advice and assistance, to destroy the call loan market, C.S.H. and Cunningham suggested many changes in the letter. C.a.& said he had no Objection to a properly drawn letter, but that he deplored this letter. Miller then moved to approve the letter as originally drafted, altho he said he would entertain certain amendments. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 180. Miller, Dr. Adolph(Cont id.) C.S.H. moved to table the letter, at least for the present until the recharter matter aas settled. Passed: All voted. Aye except Cunningham who voted No, and Miller, who would not vote. The Comtroller was present and voted Aye. Mar. 11, 1926. 119, 120, 121, 122 (See VoL.156, Scrip bock, for a copy of this letter.) C.S.H. after the meeting, went into Sec. Mellon's office and explained further as to the danger of sending the above letter, and called to his attention Miller's Boston speech, delivered Nov. 27, 1925. C.S.H. said the letter would surely leak out if sent, mid. added, "For a long time I have believed, but can not prove, that there is a pipe line running from our Board." Sec. Mellon grimly said., "I know it also, and feel sure we have the siane prams in mind at each end of the pipe line," meaning Miller and Hoover. Mar. 11, 1926. 122, 123 The following is a quotation frau Miller's Boston address delivered before the Caumercial Club on Nov. 17, 1925: "The use of Federal Reserve credit for speculative or investment purposes is precluded by specific provisions of the Federal Reserve Act. It is clear, therefore, that no bank has a proper status as an applicant for reserve bank aacamlodation which is supplying credit for speculative uses. It is the duty of the Federal Reserve banks to hold true to the course plotted for them in the fundamental provisions of the Federal Reserve Act." Mar. 11, 1926. 123 C.S.H. feels it seems logically to follow from the above, that, as every bank in the U.S. is supplying more or less credit for speculative uses, - no bank has a prcrper status as an applicant for reserve bank accommolaticnt Mar. 11, 1926. 123 Miller objects to Gov. Strong's statement that the Board and Open Market Committee should be ready to buy more Govt. securities, if the business recession should suddenly ircrease. - Mar. 20, 1926. 125, 126 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 151. Miller, Dr. Adolph C.(Contici.) Miller votes against C.S.H.Is motion to authorise the Open Market Camnittee to enlarge the System holdings to 300 millions up to April 15, should an emergency arise, provided that the Board rseetved the right to put an end to such purchases at any time Mar. 20,1926. 129 Miller votes against Janes motion, the same as C.S.H.'s without the proviso. Lost on tie vote. Aye: Gov. C., C.S.H., and James No: Platt, Miller, Cunningham Miller said that if the Board passel this vote (before the vote was taken) we would within a week be hauled before a Congressional Cammittie and sev.vely catedhised! C.S.H. thinks Miller must have known of the hearings before the Banking and Currency Committee Which were held a little later and which degenerated into a catechising of the Board. Miller aid Gov. Strongls talk about business depression was all rot and not borne out by the figures. Miller said the real motive (undoubtedly referring to Gov. Strong) 'was to help the stook market. Mar. 24, 1926. 129 Sec. Mellon presides at Board meeting to consider the vote lost by a tie yesterday. C.S.H. stated Gov. Strong's position. C.S.H. stated that one member (meaning Miller) had stated that he never would consent to delegating authority to the Open Market Committee to either increase or decrease the anount of money in the market. Mills' made no response. Miller said he entirely disagreed with Gov. Strong and the Committee and believed no emergency existed or would exist. Miller did not anmxtr C.S.H.fs statement as to delegating authority as he knew C.S.H. could show he had done so many times, especially two months ago. Mar. 25, 1926. 131, 132 Miller said he knew from a reliable source that the whole trouble in New York arose from the fact that certain banks were loaded • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 152. Miller, Dr. Adolph (Contid.) up with new issues of securities atich they could not place. Hoover, but Gov. C. asked Miller who his informant was, - ;leaning Miller declined to reveal the source. ation from Gov. C. told Miller he would pay no attention to inform a source Miller would not reveal. Mar. 25, 1926. 133 , Miller James then renewed his motion of approval which was passed voting No. Aye: Sec. Mellon, Gov. C., James, C.S.H. No: Miller, Platt, Cunningham. Mar. 25, 1926. 133 understand Winston tells Gov. C. that he ard Sec. Mellon perfectly well that nravecI bad they that that Hoover was dominating Miller; Hoover got information from Miller as to Board action; that Sec. Mellon was much disturbed as to this. Mar. 26, 1926. 134 Miller objected to C.S.H.is proposed redraft of the order of the Board that hereafter meetings of the Open Market Committee shall be held in Washington. Miller add if offered as the triginal order he would have accepted it, but he would not vote for it as a means of placating Mar. 29, 1926. 134 the conmittes. Board discussed its power to regulate Open Market purchases. Miller claimed that the resolution of April 7, 1923, which he read, did regulate such purchases. C.S.H. feels that it did purnayt to regulate such purchases ars/ that he was in error bthen he said (su.pra p. 131) that the Board had never passed a regulation on Open Market purchases. Miller and James said W there was any doubt as to the Board's power, we should go to Congress which would quickly give it to us. Miller said he would welcome this issue and would say so to the Banking and currency Coonnittee when he testified on the stabilisation bill. Miller finally eu.ggested sane changes in C.S.H.is resolution which C.S.H. accepted as the best he could get. Mar. 29, 1926. 134, 135, 136 See - Open maiket http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis US. Miller, Dr. Adolph (Cont id.) at Gov. Strong Miller said .that if he had read a sport stating have voted probably wo44 he n recessio hadsaid as to businsss on had discussi the that but to give the authority he asked, prauction that wrong; ly absolute was developed that Gov. Strorg peak. its at was tion distribu was not receding; that carload to as y s testimon Strong' Gov. to He did not refer, however, sales. falling off in retail Mar. 29, 1926. 137 Miller also said that one member of the Open Market Ccamittee toVi him that he did not agree with Gov. Strong. Miller said Gov. strong had a way of suppressing dissent within the Mar. 29, 1926. 137 Ccmmittee. Votes against approving the appointment of Olsen as Assistant Secretary ct' the Federd Reserve Bank of Chicago. He seemed shocked at having a Secretary or Assistant Secretary take fraa the operative side ct the bank. April 6, 1926. 147 Miller moved that appointment of an Assistant Secretary, %to as also confidential secretary of Gov. McDougal, was against the 'Board's policy and that it should be suspended pending final action of the Board. Passed: Aye: James, Miller, Gov. C. No: Platt, C.S.H. An extraordinary vote as 6 a the Federal Reserve banks not have Secretaries of the Board of Directors taken fran the operative side of the banks. April 6, 1926. 148 Board votes to reconsider and strike out all frcm above vote except that the appointment is against the policy of the Board. Miller and C.S.H. voted No, - Miller because he wanted the appointment disapproved, and C.S.H. bemuse he felt the Board had a right to appoint any one it wished. April 8, 1926. 152 Miller moves a resolution that the Federal Reserve Board shall establish a credit Bureau and directing acme a our statistical and Research Division la report as to its scope and expense. C.S.H. asked Miller if he wished to create an independent system CC credit files at Washington such as the Board contemplated in http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Miller, Dr. Adolph (Contid.) 1915, through Assistant Federal Reserve Agent Hackney, but abandoned as impracticable. Miller said he intended only that copies of the exieting credit files of the Federal Reserve banks be sent to Washington. Miller said his resolution was confined to the treatment of long continued borrowers frau Federal Reserve banks, cr banks in an extended condition. C.S.H. Asked Miller to limit his resolution to such conditions, but he said it was n3cessary to have data as to all barks to know which were extended or continuous borrowers. Miller said Prof. Sprague favored such a Bureau, and. C.S.H. suggested that the Board ask Sprague,s views but Miller would not consent to this. C.S.H. asked Miller if he desired to have credit files of every bcrrower frcm a member bank in the proposed Bureau, but he gave an evasive answer. Miller finally split his resolution into 2 parts: 1. That a Bureau be established. 2. Report as to scope and expense. Firslly Miller agreed that 1. should lay on table panting a report, -2. C.S.H. does not really know what Millerhas in mind, but suspects he wants a kind of centralized force to examine into all loans of member banks, and adznonish them, etc. April 8, 1926. 152, 153, 154 C.S.H. writes son. Brine as to the political affiliations of the present Fedaral Reserve Board, pointing out that Miller was appointed as an sconce:Its t and an independent, as stated by Col. House in his book, p. 171. April 13, 1926. 158 Gov. Strong is very intlignant with Miller because of his alleged statements in Board meetings that Gov. Strong was influenced by the needs of the stock market in determining Open Mazket policies. He said SC. Mellon and others hat told him this. C.S.H. has heard Miller say this also. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Miller, Dr. Adolph (Contid.) Gov. Strong said he intended to refer to this in his testimony before the Banking and CurrencyCommittee on the stabilization bill, and•that there would be an explosion. C.S.H. begged Gov. S. not to do this as it would shay up divisions in the Board which would injure the Federal Reserve System. C.S.H. told Gov. S. that Miller, perhaps unconsciously, was a rabid deflati cnist. Gov. §trong said that Miller, Dr. Welles, and the New York Ccazaercial and Financial Chronicle were all leagued together in the cause of radical deflation, and that he should certainly answer the Commerical and Financial Chronicle in his testimony. April 13, 1926. 158, 159 Miller is very indignant because Harrison has offered Mr. Warren, of our Research Division, $6000 per year to leave the Federal Reser,e Board and accept a pattion in the Foreign Division of the Federal Reserve Bank of New York. Miller. seemed to think Warren was to join the Research Division of the Federal Reserve Bank of Neri York, as he said our Board could do much better research work than the Federal Reserve Bank of New York, which hal practically absorbed our work; that we might ai well let it do all our research work. Miller also said this had been done behind his back as Chairman of the Research Division and declared that he now resigned frau that Committee. Gov. C. explained that Harrison had asked. permission. to speak with Warren and he had granted it; that Harrison octiplied with the Board's regulation in speaking to him, which regulation he read. Miller sat d he should file a copy of Harrison's letter with the Banking and Currency Committee. It was explained to Miller that Warren was to be in the Foreign Division of the Federal Reserve Bank of New York and that he would go to Dr. Stewart at $8000 per year if he was not allowed to accept the $6000 offer of the Federal Reserve Bank of New York. The Board voted to grant him permission. Ape: Gov. C., Platt, C.S.H. Miller, James No: April 20, 1926. 163, 164, led 1 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Miner, Dr. Adolph (Contid.) ttee on Research Miller then again resigled from the Coraui Gov. C.got very angry and said to Miller: jealous; you "The trouble with you is you are too damned al Reserve Feder the of nor act as if you were the Gover Governor!" the am I that tarxl. Board; ; want you to unders Millar made no reply. April 20, 1926. 165, 166 of New York rate Miller was absent when Board approved reduction he would have nt prese if that frail 4 to 31% it said later voted against it as is 'mature. April 22, 1926. 166 ving the Miller was away when tile Board wrote Sen. McLean appro ttee. Ccmmi e Senat the McFadden bill as reported by April 23, 1926. 169 ncy Ccurnittee Miller has been testifying before the Banking and Curre al Reserve Feder the to ment on the Strong stabilization ameni Ccumittee the told he 21st . Act (strong of Kansas). On April ngham were Cunni and deed.) (now that the dirt farmers, Campbell . Board ve Reser the ablest member s of the Federal April 29, 1926. 174, 175 ve Board Miller told. Gov. Harding that even if the Federal Reser n and Atlanta, Bosto both of ies should discontinue the Cuban Agenc ve Bank Reser al Feder the g he would not consent to designatin already. ess busin gn forei h of New York, as that bank had enoug 176 1926. 30, April Miller's Mrs. Julius Kahn dines with us at the Lee House. She said isco; Franc an in grocer l retai father was a very respectable lf himse eta. eries deliv made end that he waited on customers, in his wagon. Federal She said. she believed that Miller got his appointment on the to lf Berke in house his d Reserve Board because Miller loane n; Wilso Mrs. first the of r Edward Elliott who married a siste artl h, healt his for that Elliott yeas ordered to California Miller,before leaving for the East, fourd a place for Elliott in the University of California. She said that sec. and Mrs. Lane gave a series of elaborate, expensive ditaners in order to introduce the Millers into Washington society, all of which she believed the Millers paid for,as the Lanes could not possibly have afforded to pay for them. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 157. Miller, Dr. Adolph (Contsd.) She said that one day, during the Harding Administration, she met Miller in the street ant said to him, *How is my Democratic friend?" - to which Miller replied, "Why do you call me & Democrat? I am a Republic aril" She said Miller vm.s very ppor when in the University of California, that she was his classmate, - and that the Harvard Club of San Francisco raised a scholarship fund to send Miller to Harvard. May 6,1926. 175 The Comptroller told C.S.H. that sea. Hence is much disturbed Of er conditions in the Federal Reserve Boerd, - referring to Miller. May 11, 1926. 185 The Comptroller tells C.S.H. that Sec. Mellon is very much disturbed as to the suggesticn made by Miller to the Banking and Currency Committee tilt the Law shoulcdi be amended so as to prohibit Federal Reserve banks from discounting for banks carrying speculative loans; that he said he made a great mistake in reccmmending Miller for reappointment two years ago. May 14, 1926. 188 Miller speaks of the report in the nwspapers that Gov. Strong and Gov. Norman had given an ultimatum to France as a conditicn of receiving pecuniary help from Great Britain and U.S., iquaring of the Budget, the resignation of the Governor of the Bank of France, etc. C.S.H. had. not heard of this before. May 18, 1926. 191 Miller mores that the Board write the secretary of State asking the present opinion of the President and Cabinet as to continuing a Federal Reserve Agency in Cuba: C.s.H. objected to going over the head of Sec. Mellon. C.S.H. finally moved that Gov. C., Miller, and James see Sec. Mellon and ask him to ascertain as to above. Passed. May 20,.1926. 197, 198 Miller entertains the Federal Advisory Council at supper at his house. May 20, 1926. 200 See - Alexander Federal Advisory Council Open market Mitchell, Red Star Line We call on, at Antwerp. He changed our rooms on the Pittsburg from C24 to 349, - a largo comfortable room but -without a bath. Sept. 23, 1925. 12 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 158. Moore, Cong. We meet, at dirmer with Admiral and Mrs. Helm. Jan. 5, 1926. 75 present. Mrs. Wilson also Moore, Mr. We ask Mr. Moore and Mr. Sproule to lock Er ound and give us the name of a good man for Chairman of Federal Reserve Bank of San Francisco. Nov. 19, 1925. 41 Moore, Mr. and. Mrs. John Call on us at Ckmeva. mt. 14, 1925. 5 Morgan interests. 16 see - Andrew, Ccng. Morris, Rowland We meet Mr. arn Mrs. ,at dinner with Miss Squire. Feb. 1, 1926. 96 Morrison, Pr. 19, 20, 21, 53 See - Joslin, Dr. X-ray Molnar, Mr. We meet, ccrrespandent of Chicago News at dinner with Mrs. Bagg Sept. 16, 1925. 6 at Geneva. Myer, Canon and Miss C.S.H. dines with, at Mayflower Hotel. Nov. 7, 1925. 34 Deolined invitation to lunch with, because of previous engagement. Dec. 25, 1925. 70 -N- Nansen Dr. Ruffin lunches at International Club to hear Nansen speak. 1 sept. 12, 1925. National Bank of Belgium C.S.H. leaves card. on Governor of. Phillips said. he would be glad to arrange an official interview, ISat C.S.H. preferred to call informally. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 159. Natianal Bark of Belgium (Contid.) The Secretary said the Governor was just leaving to attend an official meeting, but would be very glad to see me at any time tomorrow. The Secretary said he had been in Washingtcn with the Belgian Debt Cormnission. Sept. 22, 1925. 11 National City Bank, New York Junes wanted a hearing as to the Cuban Agency at which the Cuban branch officers of the, vould be present. May 20, 1926. 197 See - Cuban Agency National Grange C.S.R. gives lunch at Cosmos Club to Louis J. Taber, Master of Present: Sec. Jardine, Earl Vrocman, Platt, Cunningham. Jan. 23, 1926. 94 New Bedford Mercury Publishes article by Gratham attacking thm Walter Hines Page *myth" Sept.la, 1925. 1 New York We reach quarantine at 6:30 a.m. Oct. 3, 1925. 15 see - Discount rttes Peden' Reserve Bank of New York New York Stock Exchange Strong, Gov. New York Stock Exchange Gov. C. says the Directors of Federal Reserve Bank of New York have brought direct pressure to bear on the N. Y. banks to reduce loans on, and have been successful; that the greater part of the funds used on, came frcrn interior banks. Oct. 16, 1925. 24 Dr. Stewart says direct pressure, as in New York, will cure the speculative situation Oct. 16, 1925. 25 C.s.H. believes commercial paper rediscounts are to some extent feeding the, but believes direct pressure should be use to prevent this. C.S.H. does not like to penalise agriculture and commerce by increasing rates solely fu the purpose ce checking speculation on the. Oct. 16, 1925. 26 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 160. New York Stock Exchange (Canted.) C.S.H. tells Gov. Harding the Federal Reserve Bank of New York holds the situation well in harri as to New York banks, by Oct. 19, 1925. 27 direct pressure. Gov. Harding says large sums are being loaned by Boston banks on call on the. Oct. 27, 1925. 23 Gov. Strong suggests preliminary ircreases at Boston, Philadelphia and Cleveland as a means of sobering down the speculation on Oct. 27, 1925. 29, 30 the. Gov. Strong said that to refuse discounts to Any bank having call loans on the, would be tantamount to a rationing at credit, which would be disastrous. Oct. 27, 1925. 30 Gov. Strong says that speculation on the, is nos under control; that prices of stocks, allowing for the 50% increase in general prices, are not much aboe the 1913 pre-war level. Dec. 1, 1925. 49 Mr. Wetmore told the Federal gvisory Council that speculation cm the, had increased austcmArs rates by 1%. Gov. Strong said this iss nonsense. Dec. 3, 1925. 51 Gov. Strong says that the interior banks, loaning money on call in the, were wi thdrawing large sums and that as a result call loan rates had risen to 6%; that the New York banks had to meet the situation but did not want to rediscount further because of the Canptrolleres caning call. He therefore advised buying 15 cr 20 millions of Govt. savirities. Miller was very ugly and said this would be directly feeding the stock market, and that we should refuse. Dec. 21, 1925. 65 Miller later said he did not object to the banks reitcounting for this purpose. Dec. 21, 1925. 65, 66 Sen. Lenroot writes two letters to the Board as to feeding speculation on the, by use of Federal Reserve funds. Jan. 4, 1926. 74 Gov. C. said thi First National Bank, New York, had bcrrowed 115 millions frcm the Federal Reserve Balk of New York, on its direct note and was loaning it at frau 6 to 7% on the. Jan. 8, 1926. 78 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 161. New York Stock Exchange (Contid.) Board refu.ses permission to Federal Reserve Agent Jay to publish at once his figures on member bank loans on. Feb. 4, 1926. 98, 99 The New York Stock exchange gives out its figures tomorrow. Feb. 4, 1926. 99 Miller presents draft of letter to Federal Advisory Council asking its advice and assistance in checking or altogether eliminating the use of Federal Reserve fun/s on call loan market of. Mar. 11, 1926. 119 See - Miller Newton, Federal Reserve Agent Tells Board. that the collapse of the Florida real estate boom will probably involve 50 Florida banks in insolvency; that Gov. Wellborn and others of the 8/rectors favored a policy of assisting these banks to the, limit without too careful scrutiny of the paper offered for redi count; that he ani some of the dir actors opposed this policy; that these banks were in an insolvent condition; that any flirther rediscounts would be used by then to meet the withdrawal of public deposits (county road bonds, etc.) at the expense of their general depositors; that these public deposits were guaranteed by surety cosi:gni is, which, however, could release themselves on 30 days notice; that if these banks should close nlow the surety companies would. have to pay up, to the benefit of the general depositors; that if insolvent, they should close now; that, in his opinion, if the Federal Reserve Bank took the course favored by Gov. Wellborn, it might conceivably have its capital and surplus wiped out. In response to a question from C.S.H. he said it was perfectly conceivable that the issue might be,- the insolvency of the 50 banks cr of the Federal Reserve bank. The Board were all impressed with his view of the situation. He asked the Board if it would authorise him to say that it instructed him to tell his directors the Board concurred in his views. C.S.H. pointed out that this was a confidential talk with him as our representative; that it was one thing to viva him an opinion, but jui entirely different thing to inatruct the directors; that whatever our power might be it should not be exercised prior to a full discussion with the directors who had the responsibility for action, and who had not asked our advice. The Board all agreed to this. April 21, 1926. 167, 168 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 162. Newton, Federal Reserve Agent (Cont'd.) C.S.H. tells Comptroller about Newton's talk with the Board.. He said he would like to have a list of these banks and would ask Newton to send him one. Mow 17, 1926. 189 Nitobe, Dr. Ishii will ask, to show us the Treaty book of the League of Nations in which the agreement to return Shantung to China, made in Washington is recorded. Sept. 12, 1925. 3 Non-Partisan League Mrs. Wilson is to send "Pa, Ma and Mae" to miss Baruch in the hope that she can induce the Non-partisan League to publish it. Jan. 13, 1926. 82 Miss Baruch tells Mrs. Wilson that the reader of the, like "Pa, Ma and Mae" very much but feared it was too partisan for the League to publish, but would report definitely later. Jan. 23, 1926. 94, 95 Norman, Gov. Meets the Board, with Gov. Strong and talked for over an hour, answering all questions. He said unesoloyment Ass still bad in England, although a little improved.; that there were 1,200,000 men out of work; that emigration seemed the only hope; that most at' those out of work were not fit to emigrate; that it would cost about $1200 per man to send than out of the country. He said there were faint signs of industrial revival: 1. The successful maintenance of the gold staistard, at discount rates not over 5%, altho everyone predicted 7 or 8%. 2. The Locarno treaty. 3.. The settlement of the Irish bourciary line, North and South. He said, on the other hand, that the coal situation vats bad. Gov. Norman said prices had fallen but slightly since the adoption of the Gold standard but that, sooner or later, they must fall. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 163. Norman, Gov. (Cont Id.) He said. that the high New York call loan rates seriously affected Great Britain's gold holdings as they made the di mount rate negligible. He explained the Belgian situation which he said, was caused by Belgium taking over the francs issued by Germany during the occupation. He said he did not favor a controlled gold standard, that it Austria Was good only for poor countries, and that he hoped standard. gold real a adapt soon would Hungary and Dec. 31, 1925. 71, 72 Gov. C. tells C.S.H. that Gov. Norman told him he was very much disturbed and semoyed at *A Miller said in criticism of the Jan. 4, 1926. 73 rubber export tax. Miller said Gov. Norman told him when here that the high call loan rates ?Tads the New York discount rate negligible aid that he cculd not understand why the Nev.! York discount rate had not long ago been increased. Jan. 13, 1926. 81, 82 Col.. Rice tells C.S.H. that he met Gov. Norman recently in Albany, N. T. at Mr. Wadsworth's house; that Gov. Norman spoke =eh about Anna and his acquaintance with her at Bar Harbor in 1921; that he said he had met C.S.H., bit not H.P.H. in Jan. 15, 1926. 86 Washim ton. H.P.H. tells Col. Rica about her Lcrgicn experience with Gov. Norman. She said that Gov. Norman called on Anna almost every day at the Bar Harbor Hospital and they became very close friends; that he Was frequently at our house in Washington for family dinners; that when he came to Washington with Stanley Baldwin, the then Chancellor of the Exchequer, we gave them both a large official dinner; that one night when he was taking family dinner with us, C.S.H. told him Anna was very anxious to go over the Bank of England when next in London; that he said to surely let him know when there and he muld be only too delighted to show Anna over tl.e Bank; that when H.P.H. and Anna were in London, she telephoned Gov. Norman at the Bank but could only get his Secretary; that she told the Secretary to tell the Governor that Anna wanted to go over the Bank, and he said he would tell the Governor and would make an appointment and let her know at once, H.P.H. giving him her address in London; that she heard nothing more for about tan days when be sent his card to H.P.H. is apartment, but did. not call, - and this ended the matter. Anna was terribly disappointed. Ii http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 164. Norman, Gov. (Cantld.) Gov. Norman's scant courtesy is in marked contrast to that of Mr. and Mrs. Baldwin v4ho fairly outdid themselves in entertaining H.P.H. and Anna, having Anna at lynch and inviting H.P.H. and Anna to attend an official parade at their Downing Street residence, etc. etc. When H.P.H. and. Anna ware presented at Court and. were waiting in the throne room, Mr. Baldwin, in full uniform, went over and talked with them for nearly 20 minutes. Jan. 15,1926. 86, 87 When Gov. Norman was in Washington on Dec. 31, 1925, e.S.H. was perfectly courteous to him, When the conference was over C.S.H. shook hands with him. He acted. as if he wanted. to say something about Anna but C.S.H. gave him no opnortunity. Jan. 15, 1926. 88 C.S.H. reminds Miller that Gov. Norman said the high New York call loan rates threatened, his gold in London. Mar. 2, 1926. 109 Sen. Owen tells C.S.H. he is much interested, in the report in the papers that Gov. Norman and Gov. Strong had. given an ultimatum to France, as a condition of receiving financial assistance, - balancing the budget, requiring the Governor of the Bank of France to resign, etc. etc. C.S.H. had not seen this but Miller said he had. May 18, 1926. 191 Norris, G. Attends meettng of Open Market Committee. May 2D, 1926. 124 Wing thinks Sec. Mellon has Gov. Norris in mind for the Federal Reserve Board in C.S.H.'s place. May?, 1926. 179 Gov. Harding thinks the suggastion of Gov. Norris for the Federal Reaerve Board cane from Gov. Strong. May 17, 1926. 190, 191 Norton, Charles 16, le See - Andrews, Cong. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 165. Oliver, Mari on Arranges a service in menory of Anna at St. Anges Church, Washington. April 26, 1926. 171 See- Hamlin, Anna Olney, Richard C.S.H. meets, at dinner at Mayflower Hotel with Canon and Miss Myer. Olney said Sec. Mellon was very liberal as to the Allied debt settlements; that Mellon made an aweement with Wilma but the Republicans on the Debt Carraission muld not accept it; that the Democratic members helped Mellon more than the Republican members; that the Italian agreement was hanging fire; that Mellon, Hurley, Crisp and he favored liberal settlements but that the Republicans, for purely political reasons, held back. Nov. 7, 1925. 34 Calls on C.S.H. Said he had no doubt but that C.S.H. would be April 23, 1926. 170 reappointed. Olney, sec. House in his book said McAdoo wanted C.S.H. for Federal Reserve Board, but that Wilson said, "I prefer Olney and it happens that lam President," that later, on Olney's refusal C.S.H. was appointed irk accordance with MoAdools wishes. This is a half truth. McAdoo undoubtedly wanted C.S.H., but Olney strongly urged Wilson to appoint him. (See earlier diaries) Feb. 9, 1926. 105 Olsen, Mr. 146 to 148, 152 See - Federal Reserve Bark, Chicago Open market Connate* Open market operations Board meets with Open Market Investment Canmittee. Discusses discount rates and direct pressure. Oct. 27, 1925. 29, 30, 32 See - Discount rates Strong, Gov. Board considers report of Open Market Committee. The report said that camlitians pointed to an increase of discount rates rather than a sale of Govt. securities. Miller said 100 millions of Govt. securities should be sold. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 186. Open Market Canmt tee (Cont ed.) Miller moves that 50 minims be sold at once, to include the 38 millions maturing Dec. 15, 1925. Lost by tie vote: Aye: Miller, Platt, Cunningham No: Gov. C., Janes, C.S.H. Nov. 23, 1925 42 Platt moved that the 38 millions maturing December 15th be allayed to run off. C.S.H. finally moved as a substitute that the Board approves in general the Open Market Cconittee report of Nov. 2, but that a meeting of the Canmittee be called immediately to consider whether changed conditions do not now cal for a change in open market policies. Passed. Platt only voted No. Platt moved that the question of allowing the 38 millions to run off on Dec. 15th be considered at the Open Market Ccmmittee raeeting Passed unanimously. Nov. 23, 1925. 42,43 Board meets with Open Market Ccmalittee. The record of the Board calling the meeting was reed. Miller said C.S.H. introduced the rew lution calling for the meeting and Gov. C. asked C.S.H. to explain it. C.S.H. said he introduced it as a canpromise between Miller's views and Platt's; that Miller said. at the meeting that 100 millions of Govt. securities should be sold at owe, as credit was redundant and he feared an era of inflation; that Platt wanted the 38 millions maturing Dec. 15 to be allowed to run off; that the Open Market Committee report Ass against any sales; that he felt it advisable to call a meeting to decide what was the best course, aid whether changed conditions d3manded any change in open market policies; that the Board should take the evidence before acting. Miller denied C.S.H. statement as to 100 millions of Govt. securities and said his motion called only for 50 millicns. James demanded readirwof the record which showed that Miller stated that 100 millions should be sold, but in his motion limited it to 50 millions. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open Market Ca:mitts. (Cceit id.) Gov. Strong said it would be wiser to hold the 38 millions and replace them; that the sale of 50 millions would have little effect now, but if sold after the first of the year, ithen the expected liquidation has set in, it might have great effect. Gov. Strong said. we must face the fact squarely, - that Miller's desire is deflation, pure and. simple. He then gave a picture of conditions: - stock speculation is under control; the prices of stooks, allowing for the general increase in all prices of 50%, are not far from the 1913 pre-war level; that production is increasing and prices are fairly stabilised. He pointed out that custueers rates are not low, but are really high. He said that the deflation Miller desired could be brought about only by increasing discount rates; that this might cause a resumption of gold imports, and would also result in an increase of custcmers rates; that resumption of gold imports would tend to defeat Great Britain's resumption of gold payments, and uncertainty in domestic business. He said his directors were a unit in opposing higher discount rates at the present time, although some time they must be increased; that the Bank of England must soon increase to 5%, but that our rates and our open market policy should. not be changed at the present time, and that the. Open Market Committee all agreed with him. He also pointed out that the Board had allowed a month before taking up the Cczaaittee report of Nov. meantime, the Treasury had perfected its financial the theory that the 38 millions would be replaced. Dec. 1, 1925. 47, 48, 49, to elapse and. that, plans on 50 Gov. Strong stated that Belgium would probably issue her 100 millions within a month as her budget difficulties were being cleer ed up. The Board voted to approve the plan of replacing the 38 millions maturing Dec. 15, 1925. Aye; Gov. C., C.S.H., James No: Miller, Platt. Dec. 3, 1926. 50 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 168 Open Market Commi ttee (Cont id.) Mr. Wetmore said. the stock exchange speculation had lifted up customers rates 1%. Gov. Strong said this was nonsense. Dec. 3, 1925. 51 Gov. C. calls special meeting of Board. Gov. Strong had called him up to say that the interior barks were witixtrawing large amounts of money loaned on call; that call loan rates had gone up to 6%; that the New 'fork banks had to meet the situation; that the New York banks had. rediscounted heavily /already and did not wish to increase these redi'counts in view of the expected Comptroller's call, Feld in view of the inevitable liquidation after the first of the year. Gov. Strong said the Open Market Committee had voted unanimou.sly to buy 15 or 20 millions of Govt. semari ties to tide over the matter; that he asked the approval of the Board of such purchase. Miller Wall very ugly and °aid this Aculd be directly feeding the stbck market and should be refused. C.S.H. suggested it made no difference whether the needed credit was.procured ty rediscounts or by open market transactions, so far as the stock market ma concerned, which in any event would be indirectly benefitted. C.S.H. asked Dr. Miller if, objecting to open market purchases, he woad also object to rediscounts for the same purpose, and. he said he would not object. C.S.H. said he talked with Gov. Strong over the telephone before this meeting; that Gov. Strong said his request was made and based on existing business and, industrial conditions; that high, bulging call loin rates were very bad for business anti ultimately would lift up elastomers rates. C.S.H. reminded the Board of Mr. Wetmore's opinion that the high call loon rates had lifted up customers rates 1%. Board finally adjourned until tomorrow. Dec. 21, 1925. 65, 66 C S.H. again talks with Gov. Strong over the telephone. Heagain said that his recp.est vests based primarily upon business rather than st ock market condi ti one. He was very indignant with Miller, who, he said,was trying to put the Board in a false position, as also the Committee; that he intended to take this tip with Sec. Mellon and with the President. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 169. • Open market Commit tee (Cant Id.) Gov. C. told the Board again the attitude of Gov. Strong and of the Committee and spiked the pleaeare of the Board; at first there was no response. Finally, Gov. C. said to Miller, "Have you any motion to make?" Millnr said No; that he felt erre the Board would vote approval and he would merely vote in the negative. There was some further discussion in which Miller todk no part. C.S.H. then moved qpproval. He said Miller bad said too much about the stock market; that this was a condition, not a theory; that large sums were being drawn from the market by interior banks, talus increasing the call loan rates to 6%; that this condition was certain to cause customers rates to be advanced and a liquidation of loans; that to save this situation, further credits must be provided for, either by rediscounts or by open market purchases; that all agreed as to this, even Miller; that thl banks did not want to rediscount further until after the Comptroller's call; that Gar. Strong said that bulging interest rates would react on business and commercial interests; that the Open Market Committee was unanimous, and that he moved approval am a means of conserving business and commercial interests. The Board voted approval. Aye: Gov. C., C.S.H., James, Comptroller No: Miller, Cunningham Dec. 22, 1925. 66, 67, 68 Before the above rate, Gov. C. stated that the directors of the Federal Reserve Bank of New York had voted unanimously directing the purchase of from 15 to 18 millions of Govt. securities. Miller made no comment on this. Dec. 22, 1925. 68 The Board voted to dissolve the Board's Open Market Committee and to consider open market questions in Committee of the Whole Board. This had in fact been done since Feb. 5, 1925, although not formally voted until now. (See Diaries, Vol. 14 p. 77) Feb. 5, 1926. 74 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 170. Open Market Commit tee (Contid.) Board holds meeting with Open Market Committee. Gov. Strong protested against a recent order of the Board designating lesshington as the place of meetings cf the Ccomittee in future, unless otherwise ordered. Gov. S. said. the Committee was a voluntary one and that the Board had no authority bo issue such an order, couched in peremptory terms. C.S.H. explained that the former Comnittee of the Board, - Miller and Cunningham - had been abolished and that the Board henceforth was to consider all open market matters in Committee of the Whole; that the Board felt it would be easier for the voluntary Open Market Committee to cana to Washington than for our whole Board to Ep to New York; that there was no intention to issue an arbitrary order. A long discussion follosed. C.S.H. finally said he would. offer at the next meeting of the Board the following substitute: "Meetings of the Open Market Investment Committee shall be arraixed by the Governor and the Chairman cf the Committee at such times and. at such places as may be necessitated by the business involved and as may suit the convenience of the Board and. of the Coxamittee." The members of tha Committee all said that this would be sati sfactory. Mar. 20, 1926. 124, 125 Gov. Strong then read the Committee report which asked for no immediate changes in investments. Gov. S. said a business recession had set in all over the ccuntry; that no on. could tell $shether it will continue; that one large company in New York placed. orders based on an estimate d increase of 20% in retd. 1 sales; that be actual increas e was only 3%. Gov. S. said. we must be prepared to cope with this recessio n if it continued.; that we ought to be ready to make further purchases of Govt.securiti es to ease aiy si tuat ion which might arise. Miller dissented frau this vivo. Mar. 20, 1926. 125, 126 At the Governor's conference, Gov. Strong spoke of ccnditions in • New York. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 171. Market C unit tee (Cont 1.) He said the member banks were borrowing heavily, - 142 millions fro= the Federal Reserve bank; that a recession of business had set in all over tbsccuntry; that the heavy rediscounts brought about a tendency to force liquidation of customers loans; that conditions in Europe looked bat; that he feared a sudden increase in business depression. He further said we ought to begin to buy Government securities to ease the money market; that the money so paid out would come back, as the banks woad use it to pay off their relisoounts, and thus give larger opporturdty for enlarging credits to customers; that reducing discount rates would merely help member banks carry their loans at the Federal Reservs bank and would not be an inducement to make them pay them off. He said it was the unanimous ;pintas of his Counittee that power should be given it, in PASO of emergency, to buy, between now and April 15, not to exceed 90 millions of Govt. securities, in addition to replacing the March 15 securities, all but 15 millions of which had already been replaced. Gov. S. said the Board at its last meeting had merely authorised this replacement of the Mar. 15 maturities, but had not acted on the above recocmiencittion which, at least in general terms, vas contained in their report. The matter VAs discussed at length. Miller vigorously objected. The Ccramittee finally put the question in concrete form: "If develoxents in the money market indicate any need for doing so, the amount of securities in the System may be increased to 300 millions, but no purchases shall be made after April 15th Idthout further consideration. The Board then utthdrew into Platt's roan to consider this. C.S.H. moved approval but with the addition, "on the express understanding that the Board, at any time, may terminate the authority to flake such purchases." James said this implied that without this reservation the Board could not revoke its consent, Ahich James said it clearly could do at any time. James begged C.S.H. to give up this condition, but C.S.H. said if not so expressed the question of moral ccmmitment might arise in the future. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis In. °Pen Market Committee (Ccnt id.) On vote, C.S.H. s aLotion was defeated. Aye: C.S.H. No: Gov. C., Platt, Miller, James, Cunningham James then moved approval without C.S.H. s condition. Lost by a tie vote. Aye: Gov. C., Janes, C.S.H. No: Platt, Miller, Cun lingham Before the vote vats taken, Miller said that if we passed it we would be hauled before a Congressional Canmittee and severely criticised. Miller must have referred to the hearings before the Banking and Cuirency Ccaraittee, of which the Board knew nothing at the time, but of which Miller must have known. Platt said he did not believe there was any necessity for further purchases. Miller 'said the talk of business recession vas all rot, and that the real motive was to help the stock market. C.S.H. said he feared a sudden increase In business recession; that Miropean conditions might cause an acute collapse in U.S.; that the Open Market Cannittee were our Generals in the field and that if we could not give than discretion to meet an emergency for 3 months, we should disband them. C.S.H. pointed ait that if a sudden emergency should arise, instant action might be necessary and that tha Board, as often bad happened, might not have a quorum. C.S.H. also reminded Miller that he had voted to give the Connittee authority to replace the 60 millions of Mar. 15 maturities. C.S.H. asked to be recorded that he voted for this genwal aprroval only after his mioti on he been defeated. C.S.H. then went to Sec. Mellon to have him cane in. Miller refused to stay for this and left the meeting. Sec. Mellon ass in Philadelphia and the meeting adjourned. Mar. 24, 1926. 127, 128, 129, 130 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open Market Committee (Conted.) Sec. Millon presided at Board meeting. The minutes of the last meeting were read. Sec. Mellon asked some one to explain the status of the matter. C.S.H. explained what Gov. Strong and the other members of the Open Market Committee desired. C.S.H. incidentally referred to the fact that a yesterday's meeting one member (meaning Miller) stated that he never would consent to delegating authority to the Committee to increase or decrease the amount of money in the market. Miller made no reply to this. C.S.H. pointed out that the Board is asked to give discretion to the Committee for only about 3 weeks; that the Board could not properly insist that it must decide every emergency for itself, as it Wight not have a quorum; that we should give some discretionary potter to the Committee, - cur Generals in the field. C.S.H. said hifelt that a Federal Reserve bank has the right to buy or sell in the open market subject only to regulations of the Board; that the Board had only published, in 1923, - general regulations as to the manner. of operating but not as to the . amount, C.S.H. also pointed out that the Board had frequently, in the past, given discretionary power to the Committee, e.g., only 2 months ago it gave it discretion to roplao e the Mar. le maturities, about 6? millions; that every member acquiesoed in this, that to insist on passing on every emergency would in which it effect turn the Board into an operative Board, clearly was not intended to be. Cunningham said he did not object to delegating authority to the Committee on principle, but he believed no present emergency warranted it. Platt expressed the same views. Miller said he entirely disagreed with Governor Strong and the Committee and believed no present emergency existed or was threatened. He said nothing as to the views he expressed yesterday as being opposed to delegating any discretion to the Committee, because, C.S.H. thinks, he knew that he had often voted for such delegations. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open Market Caanittee (Canted.) Miller said he had information that the 'hole trouble in New York arose frcm the fact that certain banks were loaded up with securities *Lich could not be placed. Gov. C.asked Miller who his informant was but Miller refused to state. Gov. C. said he should, pay no attention to information frcm a source which Miller would not reveal. sec. Mellon said there no one could sew that a policy of conditions would was undoubtedly a recession in business and it might not suddenly increase; that he felt liberality looking towards easy credit be of great advantage at the present time. James then renewed his motion of approval which was passed. Aye: Sec. Mellon, Gov. C., James, and C.S.H. No: Miller, Platt, Cunningham Mar. 25, 1926. 131, 132, 133 At the Board meeting, C.S.H. Taught up his proposed new resolution as to future meetings of the Open Market Cana ttee. Cunningham, before this, had told C.S.H. that while the first resolution of March 9 should not be repealed at the demand of the Open Market Comnittee, he would not cbject to having it somewhat amplified. C.S.H. read his resolution. Miller said if originally offered in this form he would not have objected to it, tut he declined to vote for it as a means of placating the Open Market Ccmtnittee. James also opposed it. A long discussion followed, as to the per of the Board to control Open Market purchases. Miller had read the resolution of April 7, 1923, which, how.er, placed no limit upon the mount but merely upon the manner of such purchases. Miller and James said if there was any doubt as to the Board's power, we shouli go to Congress whichwould cp.ickly oive it to us. Miller said he would welcome this issue and would say so to the Banking and Currency Connittes. • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Open Market Committee (Contld.) It seems that Governor Crissinger said Harrison said the Federal Reserve Bab* of New York denied our power and Gov. C. said he bad no doubt that if any specific case should arise, the Federal Reserve Bank af New Tort would go ahead in spite of us. Miller finally suggested some changes in C.s.H.Is resolution which he accepted as the best he could obtain and it was unanimously passed, as follows: "Whereas etc. (same pr eamble) Now therefore, the Governor is directed to advise, from time to time, after consultation with the Chairman of said Committee, When in his opinion it is desirable from the nature of the business to be transacted that meetings of the Committee be held at other places than Washington." Miller, speaking of the Open Market Committee report, said that if he had merely read a report containing what Gov. Strong had said at our meeting, he would probably have voted offhand to grant the authority; but that the discussicn developed that Gov. Strong was absolutely wrong; that production was not receding; that car load distribution was at its peak. He said nothing of retail purchases which all of the Governors on the Open Market Committee said were falling off. Miller also said that one member of the Open Market Cammittee told him that he did not agree with Gov. Strtng, although he had voted with him. Miller said Gov. Strong had a way of suppressing dissent within the Committee. Mex. 29,1925. 134, 135, 136, 137 C.S.H. goes over the Open Market resolution of April 7, 1923. The resolution laid down three principles: 1. Primary regard to the accommodation of cc:amerce and business and to the effect an the general credit situation. 2. Careful regard as to the bearing upon the market for such securities. 3. Open market purchases to be primarily commercial investments, except that Treasury certificates maybe dealt in, as at present, under so-called repurchase agreements. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 176. Open Market Conmittee (Contid.) The Board under this resolution pmt an end to the old Committee at Governs and created a new Ccumittee, - the Open Market Investment Committee, consisting of the same members, "To be under the general supervision of thtA Federal Reserve Rawl --- the duty of this Committee o devise and recommend plans for the purchase, sale, and distribution of the Open Market purchases of the Federal Reserve banks, in accordance with the above principles and such regulation, ?kiwi,' from time to time be laid down by the Federal Reserve EINek. This resolution simply lays down certainprinciDles and is a proper, lawful regulation. It also refers to future regulations but none such have yet been promulgated by the Federal Reserve Board. The Federal Reserve banks, therefore, if they certified that the purchases were in accordance with the above principles, could at any time buy or sell Govt. securities in the open market, until, at least, some future regulations to the contrary have been promulgated by the Board. Mar. 30, 1926. 138, 139 Open Market rates Dr. Stewart says that N. Y. Federal Reserve rates are 1% below the canmercial open market rates. Oct. 16, 1925. 25 GOV. Harding tells C.S.H. that their bill purchasing rates were higher than their discount rate. Oct.19, 1925. 27 Gov. Strong says that an increase in discount rates wculd be followed by an increase in the open market rates for customers paper. Dec. 1, 1925. 49 Owen, Sen. Sen. and Mrs. Owen arrive at Genera. Sept. 13, 1925. 5 They take tea with 1146 Sept. 14, 1925. 5 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Omen, Sen. (Contld.) Sen. Owen calls an C.S.H. at Lee Hausa. He raid he was much interested in the items is the papers as to the conference of Gov. Strong and Gov. Norman and their ultimatum to the French Government, as to levying equal taxation, etc. He said he fully approved it and would like to get into the negotiation. C.S.H. mid it had not been discussed by the Board, but if it should be &aid he Should ask to be heard, he thought the Board would be glad to hear him. May 18, 1926. 191 Oxford University Mrs. Wilson said that, offered Mr. Wilson an honorary degree but that he could not leave Paris to receive it, ami as the University never gave degrees unless the recipient was present, he hat to forego the honor; that be bad always said he should appreciate a degree from Oxford more than from any other University. Feb. 25, 1926. 108 Pa, Ma and Mae K.P.H. reads, to Mrs. Wilson, who said she would send it to Miss Baruch for publication by the Non-Partisan League. Jan. 13, 1926. 82 Mrs. Wilson tells H.P.H. that the reader of the Non Partisan League enjoyed her sketch very much but fears it is too partisan for publication by the Non Partisan League, but will report officially later. Jan. 23, 1926. 94, 95 See - Pennington, Mrs. Louis Paderewski Attends private dinner in his honor,also the Wilson dinner, N. Y. Jan. 13, 1926. 85, 86 Pare, Walter Hines Mr. Gratham attacks the Page "myth" in the New Bedford Mercury. Sept. 12, 1925. 1 Palace Hotel; Brussels We arrive 5:30 p.m. We paid 120 francs ($4.50) for aro= and bath. Sept. 21, 1925. 10, 11 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Vs. Palo Alto, California. 59, 60, 61 See - Branch banks Pan American codification of International Law. 159 ,160 See - Carnegie Foundation Patten, Miss Gertrude Myer_ says the Pattens say that Mrs. Wilson was engaged to Dr. Ruffin when she first met President Wilson and that when she became engaged to the latter she merely wrote Dr. Ruffin to that effect. Nov. 7, 1925. 34 Peace proposal of 1916. Mrs. Wilson said Mt. Wilson did not want to meet Lord Grey when last he came to the U.S.; that she firmly believes, but does not knos, that he was angry with Lord Grey because of the manner in which he treated the Peace Proposal of 1916. Nov. 29, 1925. 47 Peck, Mrs. Mrs. Cleveland (Preston) told Harry Tucker there was absolutely nothing in the Peck letters discreditable to Mr. Wilson; that he was always interested in bright women. Jan. 24, 1926. 95, 96 Penning ton, Mrs. Lcuis Calls on C.s.H. and H.P.H. Says she wants a short statement of what Mr. Wilson hal_ done prepared and that she would publish it. She had spolcen of this before to H.P.H. saying that Mrs. Bannister had suggested the Secretary of Sen. Glass as a good person to prepare it, but that Mrs. Wilson did not want him, as he once had shown her a proposed sketch of Mr. Wilson which she founi Axil of errors and advised him not to publish it, which he did notwithstanding. Mrs. Wilson confirmed this to C.S.H. Mrs. Pennington and Mrs. Wilson bagged C.S.H. to prepare such a sketch and he finally agreed. Jan. 23, 1926. 95 Mrs. Pennington tells C.S.H. she will gladly give $150 tcwaris the expense of printing "F's6, Ma and Mae" in the Bulletin publishe d by the Wansn's Democratic Club, to be inserted as a suppleme nt, and also for printiq 1000 copies in pamphlet form, to be sold for the benefit of the Wanan's National Democratic Club. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pennington, Mrs. Louis (Contid.) Mrs. Cunningham, representing the National Canuittee told H.P.H. that althought she said it would cost $350 she had arranged to print it on the faith of the above sabscription and $25 we said we would give, at; she had soma money in raeerve held for an earlier number of the Bulletin vthich, in fact, had not been printed. Feb. 4, 1926. 97, 98 We dine with Mrs. Pennington. C.S.H. explains as above as to printing "Pa, Ma and M40." She aid she would give H.P.H. a *pick for $150. Feb. 5, 1926. 98 We dine with Mrs. Pennington. Mrs. Wilson and Mr. Bolling were also there and we discussed the chronological table of Mt. Wilson, which C.S.H. was preparing. Feb. 25, 1926. 108 Mrs. Pennington Mad Mrs. Wilson call on us at the Lee House to discuss the chronological table of Mk. Wilson. Mar. 13, 1926. 124 We dine with Mrs. PenAngton. Mrs. Wilson and Mt. Bolling were also there. We discussed the chronological table. April 0, 1926. 146 Mrs. Pennington called onus at the Lee House. She said Mr. Bolling, the other day, asked her if she was going to give all the royalties on the chronological table of Wilson to the Wanants Democratic Club; that she thought he had it in his mind the/ Mrs.Wilson should have a part of the royalties. Mrs. Pennington asked us if we would object to her giving Mrs. Wilson one if and the other half to the Woman's Democratic club. We both said of course we did not object. Mrs. P. originally told Mrs. Wilson, Mt. Bolling and ourselve s that she was to give all the profits to the Club. May 11, 1926. 186 Penrose, gen. Elliott tells C.S.H. that a decisio4 on the suit of McFadden vs. Ccuptroller Williams Was held up over a year by a State judge who was controlled by Sen. Penrose. April 29, 1926. 174 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 180. Pepper, Sen. Sen. Bruce tells C.S.H. that Pepper is a very agreeable man, but had no convictions; that he was shifty, evasive, and intellectually not honest. Dec. 17, 1925. 64 Sen. Andreas Jonas says Pepper ham already lost all reputati on he had Allen he entered the Senate. Dec. 20, 1925. 64 Sen. Peppecand Sen. Glass are to try to have the Fede ral Reserve bank charters extended. by an amendment to the McFadden bill. Mar. 11, 1926. 120 Glass tells GOV. Harding that Sec. Mallon is fighting for Pepper's renomination; that he feared Sec. Mellon migh t be induced to trade off C.S.H.'s office in order to help Pepper. Mar. 21, 1926. 126 Glass aaid Pepper was shifty, - like a flea; that son. Edge agreed to fight with Glass to a finish for the Sena te amendments to the McFadden bill, but that Pepper was evas ive. Mar. 21, 1926. 126 Sen. Bruce says Pepper is evasive, shifty, and intellectually dishonest; that he had made a complete fail ure in the Senate. April 10, 1926. 156 Mrs. Bruce said Pepper recently told her he was not a prohibitionist, smi did not believe in prohibition, but that it was gooi politics for him to be "dry" in Washingt on. April 10, 1926. 156 Sen. Bruce mays Pepper can not be renominated.. April 10, 1926. 156 Sen. Pepper beaten in the primary contest by about 85,000. May 19, 1926. 192 Perrin, John, Federal Reserve Agent Mr. Sproule, Class C Director of Federal Reserve Bamk of San Francisco said the real reason for Perrin's resignat ion (to take effect Mar. 1, 1926 )was the issue between hims elf and Calkins, the Governor; that the directors consi dered Perrtn's job limited to presiding at directors meetinga, and that the chairmanship meant nothing more ...; that his resignation raised the issue squarely and that the Board must settle it before it appoints his successor. Nov. 19,1925. 41 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Perrin, Federal Reserve Agent (Contld.) At the Board meeting a motion was made to accept Perrints resignation. C.S.H. moved to postpone until he received a reply to his letter asking if his resignation was final. Miller said he had told Perrin that the opposition to him in the Federal Reserve Board was so great that he ought to resign. Janes said he had taken Perrin to lunch and expressed the same views. C.S.H. said this was the first he had heard of this and asked if Miller and James spoke for the Board. They both said they spoke only personally. Gov. C. said Comptroller McIntosh was bitterly opposed to Perrin. C.S.H. said we should have to give the new appointee instructions which woula sustain Perrtn's position. Miller said he deeply regretted Perrin's resignation; that he considered hith one of the ablest chairmen in the Federal Reserve System; that his controversy 4ith Calkins had practically ceased. C.S.H. feels that Miller's and James' acticn in practically forcing Perrin's resignation is most extraordinary, and he All have his protest recorded. The reason for the Comptroller's opposition grows out of the many unfavorable reports Perrin had made on the formation of new national banks. Perrinis successor, Mr. Newton, when here 2 weeks ago, said that within a certain period there had been 33 applications for national bank charters, of which the Federal Reserve bank approve d 10 and disapproved 23; that most of these 23 had been rejecte d for state charters by the state superthtendent; that, neverthbless, the Comptroller had granted charters it the greater part of the 23 rejected by the Federal Reserve bank. Dec. 3, 1925. 51, 52 Perrin gave an adverse opinion on the application of the Mercantile Trust Company for branches at Burlingame and Palo Alto, solely on the ground that they were beyond the area of contiguous territory. Dec. 8, 1925. 59 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 182. Pershing, Gen. !-Congressman Dick Whalley tells C.S.H., at luncheon at Mrs. Cowdin's, that he went abroad with Sen. Glass as one of the Congressional Committee of investigation. He said that Glass, Cong. Byrnes and he lunched with Gen. Pershing at Chaumont, at the time an armistici was first being talked of; that Pershing was vehemently in favor of taking SIdan and of going into Berlin; that he said this would mean the death of at lea-.t 250,000 American soldier, but that he wanted to do it, especially, he said to turn the American soldiers loose upon the women of Germany and give them a taste of ,vhat the German army hat done to the women of Belgium ana France. Whalley said Glass wrote down in his diary, after, after going over it with Byrnes, every word Pershing said. Jan. 10,1926. 79, 80 Phillips, William Made an appointment with, at the Embassy at Brussels. He sent me in his auto to leave a card an the Governor of the Bank of Belgium. He said he would be glad to arrange a personal interview if C.S.H. desired it. He said the Governor could not speak English and C.S.H. said he would merely leave a card out of conrtesy. At 5 p.m. we both took tea at the Embassy. Sept. 21, 1925. 11, 12. Pittsburg, S. S. We embarked aa the S. S. Pittsburg at Antwerp. Mr. Mitchell the Manager of the Red Star Line showed us every courtesy and had our room changed fran C24 to B 49, a large comfortable roan but without bath. Sept. 23, 1925. 12 Platt, Edmund Platt and Miller believe the Board should approve Boston's application to in:rease discount rates from 3i to 0. Oct. 13, 1925. 23 Says 1h) Board will be attacked for keeping a 30 rate at New York for the benefit of speculatbrs while farm paper throughout the country earned 4% at Federal Reserve banks. Oct. 16, 1925. 25 C.S.H. tells Gov. Harding that most of the Board, except Platt, thought the Boston increase should be deferred for the present. Oct. 19, 1925.27 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Platt, Bimund (Canted.) Gov. Strong tells Platt and C.S.H. that he felt keenly tile lack of courtesy and attacks of certan members of the Board. Oct. 2E, 1925. 30 Sae — Strong, Gov. Votes in favor of Miller's tion that 50 millions of Govt. securities be sold at once. Lost by a tie vote. AYe: No: Platt, Miller, Cunningliazn Gov. C., H., James Nov. 23, 1925. 42 Moves that the 38 millions of Govt. securities maturing Dec. 15 be allowed to run off. Votes against C.S.H. substitute motion calling for a meeting of the Open Market Committee to consider the ?hole question. Nov. 23, 1925. 43 At meeting of 'Board with the Open Market Committee .C.S.H. explained that his resolution •Pas because of the diff erent views of Miller anci Platt. Dec. 1, 1925. 98 Votes against granting reciaest of Open Market Committee to replace tile 38 millions of Govt. securities maturing Dec. 15. Aye: No: Gov. C., C.S.H., James Platt, Miller Dec. 3, 1925. 50 Joins with James in suggesting that the Comm ittee on Examinations consider and report on advisability of micterding the contiguous territory about San Francisco to include •Burlingame and Palo Alto. Dec. 8, 1925. 59 Votes in favor of Miller's motion to gran t 1..) plice.ticn of Mercantile Trust Company to take over banks in Burl ingame and Palo Alto as branches. Aye: Gov. C., Miller, Platt, C.S.H. No: McIntosh, James, Cunningham Dec. 8, 1925. 62 Votes in favor or examination committee reporting on expediency of extending area of contiguous territory around San Francisco so that other banks may have sane privileges as Mercantile Trust Co. Cunninghaza alone voted • No. Dec. 8, 1925. 62 I0 Platt, Bimini (Ccnt Id.) Reports, with C.S.H., a proposed amendment to Federal Reserve Act permitting member bank collateral notes up to 90 days secured by eligible paper, not including Govt. securities. Jan. 8, 1926. 76, 77 Votes against Miller's motion favoring abolishing of 15-1ay member bank collateral notes. Aye: Gov. C., Miller, Cunningham No: C.S.H., Platt, James Lost by a tie vote. Jan. 8, 1926. 78 Votes again against Miller's motion. Defeated. Aye: Miller, Cunningham No: Gov. C., Platt, James, Coaptroller Jan. 13, 1926. 80 Votes for member bank collators/ notes up to 90 daya when secured by eligible paper, but not by Govt. securities. Aye: Gov. C., Platt, C.S.H., Cunningham, James No: Miller Jan. 13, 1928. 81 Votes in favor of proposed answer to Sen. Lenroot's second letter to Board. Jan. 13, 1926. 81 Nies *um igot.trOtc Al7 fl sr!" Poi' http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis fr- SI 10 '110: ' 111- PO Attends lunch at Cosmos Club given by C.S.H. to Louis J. Tabor, Master of National Grange. Jan. 23, 1926. 94 Votes, with C.S.H., to permit Federal Reserve Agent Jay to give out at once his figures as to brokers loans by New York banks. Defeat ed. Aye: Platt, C. S.H. No: Miller, Jame s, Cunningham, Comptroller Feb. 6, 1926. 99 Votes, with C.S.H. against requiring Federal Reserve bails to report for approval all sums paid. Counsel for claims, etc. Aye: Miller, James, Cunningham No: Platt, C.S.H. Feb. 9, 1926. 106 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Platt, Edmund (Contld.) Votes against C.S.H. motion of approval of extending system purchases of Govt. securities, up to April 15, provided the Board reser ves right to forbid. further purchases at any time. C.S.H. alone voted Aye. Mar. 24, 1926, 129 Votes against James motion of approval without C.S.H .,s condition. Lost by tie vote. Ay*: Gov. C., C.S.H., James No: Platt, Miller, Cunningham Mar. 24, 1926. 129 Says he does not believe any further purchases are nvessary. Mar. 24, 1926. 129 Says no present emergency nor danger of Airther emerg ency would. justify giving to open market committee the above power . Mar. 25, 1926. 132 Votss against Janes motion of approval. Aye: Sec. Mellon, Gov. C., James, C.S.H. No: Platt, Miller, Cunningham Mar. 25, 1q26. 133 states that a Federal Reserve bank has a right to appoint as Secretary of the Board, of Directors anyone it sees fit wheth er frcm the operating side or the Federal Reserve Agents side. In re Olsen, Pectoral Reserve Bark, Chicago. April 6, 1926. 147 Votes, with C.S.H., against disapproving the appointment of Olsen. Aye: Janes, Miller, Gov. C. No: Platt, C.S.H. April 6, 1926. 148 Moves to strike out all of the Olsen resol ution except the statement that it is inconsistent with the policy of the Board.. Passed. April 8, 1926. 152 Tells C.b.H. he bad a talk with Under Secretary Winston lest week, vho said that while ordinarily he would like to see a Republican in C.S.H.Is place, yet in this case he believed C.S.H. deserved reappointment and he would. say so to Sec. Mellon. April 12, 1926. 157 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis l's. platt, Edmund (Contld.) Tells C.S.H. that he spdke to Sen. McLean about my reappointment and that he acreed with him it should be made. April 20, 1926. 166 Tells C.S.H. he told Sen. Gillett that, as a life-long Republican, he believed C.S.H. should be reappointed, that it wouli be a terrible mistake not to reappoint him and that Sen. Gillett agreed with him unequivocally. April 20, 1926. 166 Favors the MoFadden bill as reported by the Senate as a fair compromise. April 23, 1926. 169 Votes in favor of so advising Sen. McLean. April 23, 1926. 170 The Comptroller tells C.S.H. that Sec. Mellon has no use for Platt. May 14, 1926. 188 Tells C.S.H. that Gov. Harding told him in Botton that Gov. C.'s designation as Governor expired in April and that he was now merely holding over as Governor. May 18, 1926. 191 Platt amendment, Cuba. 198 See - Cuban Agency Politics C.S.H. tells Comptroller that even if the Board wanted the Cuban Agency of the Federal Reserve Bank of so now would be to plunge the whole matter into controversy, and that it might conceivably even defeat of Sen. Butler. May 17, 1926. 190 to discontinue Boston, to do a political cause the Polk, Prank. 2 See - Ishii Prices Gov. Norman said prices had fallen only a little since the resumption of the gold standard in Great Britain but that a further fall was inevitable. Dec. 31, 1925. 71 Pritchett, Dr. Dr. Shotwell says Butler and, dominate the Executive Committee of the Carnegie Foundation; that Pritchett was a Democrat and, though very quiet about it, favored the League of Nations. Sept. 17, 1925. 8 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1$t production Dr. Stewart gays production is increasing with prices pract ically stationary. Oct. 16,1925. 25 Protocol, Leagua of Nations. 4 See - League of Nations Pruyn, Hendrick We told Mrs. Wilson about the letters to her fram, as to Anna, did not seam at all disturbed about them. Sept. 17, 1925. 9 Pruyn, Mrs. J. V. L. We meet at dinner at Lady Ames's in Geneva, Dutch Minister to Paris. ehe Mr. and Mrs. Louden, In 1909 when Minister to the U.S. he was to speak in Albany, N.Y. and was to have stayed with Mrs. Pruyn, but because of her death, he stayed with Robert Pruyn. Sept. 15, 1925. 6 Pruyn, Robert. 6 See supra - Pruyn, Mrs. J. V. L. Pruyn tomb; Antwerp We :visit the Proenen tomb in the Cathedral at Antwerp. Sept. 23, 1925. 12 Pulitzer award Mr. Wile tells C.S.H. he has sent Glass's edito rial on the Lawrence eulogy of Lodge (written by C.S.H.) to New York entering it for the Pulitzer prise. Feb. 4, 1926. 97 -RRatcheiky, Mr. Gov. Harding mid that at a dinner in Bosto n a few days ago, the statement in the Boston Herald that Republicans wanted C.S.H.'s 410) Aug discussed and Mr. Ralcheiky said, "Don't pay any attentk)n to that. Hagain will surely be reapp ointed; good care will be taken to keep him out of the Mass. campaign next fall." April 29, 1926. 173, 174. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Reappointment of C.S.H. See - Baker, Newton. 187 Boman, 139, 140, 141, 180 Bruce, 156, 157, 180, 181 Butler. 74, 75, 106, 141, 142, 148, 176 Ccaptroller of Currency. 185, 186 Crisstnger, Gov. 182, 187 Curtiss, Federal Reserve Agent. 23 Evans, Lawrence. 189 Fitzgerald. 74, 75, 106 Gillett. 166 Glass. 141, 148, 155, 157, 173, 177, 180, 181. Hamlin, C. S. Harding, Gov. 54, 74, 140, 179, 180, 181. Hichborn. 192 Hollis. 106 Kahn, Mrs. 187 Luce. 189 Maloney. 187 McFadden. 182 McLean, Sen. 166 Mellon, sec. 177, 185, 186 Metcalf, son. 141, 155 Miller. 158 Olney, Richard. 170 Platt. 106, 157, 166 Ratcheiky. 173 Sunders. 166 Sargent, Attorney General. 139, 140, 141, 155, 180 Strong, Gov. 54 Washburn,Charles. 176 Wilson, mrs. 172 Wing. 176 Winston. 157 Red Star Line We sail on the Pittsburg, Red Star Line. 12 Reed, Sen. (Pa.) Glass tells Gov. Harding that C.S.H.'s name should not be pushed until after the Pennsylvania primaries; that Sen. Reed had complained because Pennsylvania was not represented on the Federal Reserve Board and her commissions; that he feared Mellon might trade off C.S.H.Is place to help Pepper. Mar. 21, 1926. 126 Sen. Bruce says Sen. Reed is a good lawyer, but somewhat evasive politically. He implied that Penna. politics was making its mark upon him and not to his advantage. April 10, 1926. 156 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Reed, Sen. (Ccntid.) Gov. Harding fears Sen. Reed may demand his place on the Federal Reserve Boarct for some one in his state, and. that Mellon may find it hard to resist him. Sen. Reed's particular complaint was connected with the Interstate Conmeroe Counission art. the Federal Trade Cacraissicn, but shortly before the confirmation of Woodlook for the Interstate Commerce Commission, Coolidge made a general announcement that in making further appointments he would recognise Penna. May 7, 1926. 179, 180 Regulations of Board. Open Market see - Open market 68 Republicans Sweltser tells C.S.H. that the Federal Council of Churches is merely an adjunct to the Rep. machine. sept. 13, 1926. 4 Richard Olney says the Republicans on the Debt Carmission refused to agree to Mel1ono s agreement with Caill oux, and that the Democrats on th3 Commission have helped Mellon more than the Nov. 7, 1925. 34 Republicans. Miller tells Mrs. Eahn, during the Harding acbinistrati cn, that he is .a Republican and nct a Democrat. May 6, 1926. 178 Resolution, April 7, 1923. see - Open marlost 135, 138, 139 Reynolds, Geo. M. 17, 18 See - Andrew, Cong. Rhcadls, Ex-Gov. C.S.H. contributes $2.5 to, towards evenses of Intern. Club, Geneva. Sept. 17, 1925. 7 Rice, W. G. Visits Washington. Jan. 14, 1926. Tells about meeting Gov. Norman of Bank of Sngland in Washington. Jan. 15, 1926. 86, 87 See - Norman, Gov. Visits Washington with :Ira. Rice. May 6, 1926. 178 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 190. Rogers, Col. and Mrs. We take Christmas dinner with. Dec. 25, 1925. 70 Root, Elihu Dr. Shotwell said Root and Scott wanted the Executive Committee of the Carnegie Foundation to reconsider the gppropriation for the Geneva Comittse, but finally gave up the attempt. Sept. 17, 1925. 8 Harry White is very angry at the reftn-nce2 to his cable by Root and Lodge in Lodge's book. Nov. 15, 1925. 37 Speaks at Carnegie Board meeting. April 16, 1926. 159, 160 see - Carnegie Board Roper, Mr. 104 See - Burleson, Mrs. Rubber Miller offends Gov. Norman by his critticimn of th tax on rubber. Jan. 4, 1926. 73 British export Ruffin, Dr. Sterling Arrives at Geneva with Mr. Esterline, last evening, but laves for Paris this afternoon via Lausanne. He drove with !vs. Wilson and lunched at the International Club to 11.?ar Nansen speak. He gave C.S.H. a prescription. Sept. 12, 1925. 1 The Doctor on the Pittsburg agreed with Dr. Ruffin that my only trouble was intestinal indigestion. Sept. 23, 1923. 12, 13 Gertrude Myer tells C.S.H. she Imen that Mrs. Wilson is engaged to Dr. Ruffin; that it was scandalous for Dr. Ruffin to go abroad to see her at Geneva and visit her in Paris. C.S.R. told her he was in Geneva only one day and did not visit Mrs. Wilson in Paris, but went to Cherbourg to sail for home. She said. the Pattens said she was engaged to Dr. Ruffin when she first met President Wilson, and when she became engaged to him she merely -rrote Dr. Ruffin a casual letter to that effect. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 191. Ruffin, Dr. Sterling (Cont.Id.) She further said it was scandalous for her to have Dr. Ruffin as her physician. She also *.id. she anct Rev. Anson Phelps Stokes were joking as to whether the marriage would be at Bethlehem Chapel, and that the Rev. Stokes said he could almost heir Mr. Wilson protesting like Ban(paol s ghost. C.S.H. told her there was not a word of truth in this silly rumor, but she insisted she knew it was true. C.S.H. said he was satisfied that she must be in love with Dr. Ruffin herself and was wildly jealous! She is certainly a malingering gossip. Nov. 7, 1.925. 34, 35 Makes appointment for C.S.H. to be X-rayed so as to check up Dr. Morrison's examination in Boston. Dec. 3, 1925. 53 Goes over Dr. Christie's report with C.S.H. Report was very much like that of Dr. Morrison. Gall bladder also negative. Makes appointment with C.S.H. and Dr. Merritt. Dec. 4, 1925. 56 Makes appointment for C.S.H. with Dr. T. C. Martin. Feb. 2, 1926. 96 Russia 40 See - LOng, Breckinridge -SSalaries Committee Board takes up salaries and, among others, approved increase of Pectoral Reserve Agent Jay fran $40,000 to $40,000; Harrison from $25,000 to $30,000, eta. etc. The Federal Reserve Bark of New York has effected a peat decrease in expenses. It costa now, under the new building, less than last year under the old buildings, whereas we expected a great increase. Miller and Cunningham voted No oal many increases. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 192. Salaries Committge (Contid.) The Board rejected the proposed salary of $18,000 for the Manager of the Banal° branch ani substituted $15,000. C.S.H. alone voted against this and James did not vote. C.S.H. said $18,000 seemed too high but we ought to take evidence of the Directors of th- Federal Reserve Bank before voting. Dec. 15, 1925. 63 Saunders, Mr. Platt met, Secretary to the President, who expressed the hope that C.S.H. would be reappointed. April 22, 1926. 166 Sargent, Attorney General Mr. A. C. Borman, Class B Director of the Federal Reserve Bank of Boston, alled on C.S.H. He said he came dom to see Attorney General Sargent, an old friend of his, at the unanimous request of Gov. Harding and. the directors to request the Attorney General to ask President Coolidge to reappoint C.S.H.; that Gov. Harding asked him to Bev also to the Attorney General that the Governors, at the csnference in Washington last week, were unanimcus in the wish that C.S.H. be reappointed. C.S.H. asked him to tell the Attorney General that he and H.P.H. had been active membrrs of the Grange for 30 years; that C.S.H. owned a farm and had devoted himself to the interests of agriculture large becaning a menberti the Federal Reserve Beard. C.S.H. also suggested that Sargent speak to sec. Msllmi before he spoke to the President. April 1, 1926. 139, 140 Mr. Bowman writes C.S.H.: Springfield, Vt. April 5, 1926. "Just a line to let you know that I had a most friendly talk with Mr. Sargent along the lines we had talked when I called on ycu at youn office on Thursday. I am sure the matter will have his attention within a reasonable time...." C.S.H. sent Glass a copy. April 7, 1926. 151 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 193. Sargent, Attorney General (Cont'd.) l Sargent will soon Glass replies that he is glad Attorney Genera House. White the at matter take up the April 8, 1926. 155 and will write Gov. Harding writes that Mr. Bomman is in Boston today Attorney General Sargent to see Sec. Mellon at any time C.S.H. now or thinks advisable, and to let him know whether to write after the 18th (th,1 Penna. primaries). May 7, 1926. 180 hing rest C.S.H. replies that everything loks well and to let Ariryt until he hears from C.S.H. again. May 7, 1926. 181 Scidmore, Miss We meet Miss Scidmore at dinner with Viscount Ishii. Sept. 12, 1925. 1 Scott, Jamey Brown ive Dr. Shotwell says Root and Scott tried to induce the Execut the $4000 Canmittee of the Carnegie Foundation to reconsider appropriation to the Geneva Committee made by the Voumation, but finally abandoned the attempt. Sept. 17, 1926. 8 the Geneva Delano says the Carnegie Foundation appropriated $7,500 for Committee this year. H.P.H. asked Delano if Scott did not object. He replied, "No, He knows his new Master's voice!" Dec. 5, 1925. 58 ing Mrs. Wilson tells C.S.H. that Scott ham just written her irclos tion a copy of the Wilson resolution of the Carnegie Founda C.S.H. same days before which was voted in April 16, 1925. had told Scott it had never been sent. Mrs. Wilson read to C.S.H. her proposed reply. , It seems extraordinary that Scott, in spite of his dislike of Wilson could not have sent this before. If C.S.H. had not called him up he proba-lly never would have sent it. Jan. 20, 1926. 91, 92, 93, 94 Scott addresses the Carnegie Board on the aabject of codification of International Law. He said the great Powers in the League of Nations did not want to http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 194. Scott, James Brown (Cont'd.) be governed by law but by men, - by themselves. April 16, 1926. 159,160 See - Carnegie Board Seances See - Arnold, Mrs. Gavit, John Palmer Ledyard, Mrs. Secret Treaties of Ishii says he he came that he Allies tad. Lansing about the Shantung secret agreement when to Washington in 1917 on the Japanese Commission, but believes Lensing never told President Wilson. Sept. 12, 1925. 1, 2. Long tells C.S.H. that Wilson was in error when he said he first heard of the Allied secrlt treaties when in Paris in 1919; that he, (Long) knows that Balfour told Wilson in May, 1919, at a secret conference in the White House, but that he did not know whether Balfour told Lansing. Nov. 18, 1925. 39 Shantung See supra - Secret treaties Scheider, Mr. C.S.H. calla on, Vice President of the Swiss Natl. Bank, in Berne. Sept. 18, 1925. 9, 10 Shotwell, Dr. Tells C.S.H. that the British delegation of the League of Nations, in their hearts, excepting only Lori Cecil, he little sympathy for the League of Nations; except in so far as they can dominate it; that they were opposed to any present consideration of disarmament plans, although the other nations wanted immediate consideration; that very likely they might have t o yield in part, but it would be from no desire of their own; that there sae a possibility that the peat between Great Britain, France, arxt Gerraany might be agreed upon; that Germany would enter the L. of N. but not until after the Assembly bad adjourned; that Lord Cecil had no influence in his delegation, bath° when Chamberlain was absent he was the titular head. Dr. Shotwell was very bitter about Sir Cecil Hurst for opposing present consideration of disarmament plans. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 195. Shotwell, Dr. (Conted.) He said that both Root and Scott tried to induce tLe Executive Comrdittee of the Carnegie Foundation not to Live the Geneva Opurlittee the $4000 appropriated by thi Carnegie Fcuniation, but finally gave wo the attempt. He felt that Butler might now push the L. of N.; he said that Butler and Pritchett very nearly dominated the Executive Committee of the Carnegie Foundation; that Pritchett was a Democrat, and, although very 4aiet, favored the L. of N.; that Koppel, of the Rxecutive Committee also favored it as did Austen Fox, although the latter looked on the Foundaticn as somewhat of a joke. Sept. 17, 1925. 7, 8 Smoot, Sen. 64 See - Butler, Sen. southampton We arrive at, at 1:30 p.m.but did not Aock; we left at 2:30. Sept. 24, 1925. 13 Speculation, Speculative loans Gov. C. says the Federal Reserve Bank of New York by direct pressure had reduced, so far as the New York banks were concerned, but that the greater part of the Ain't) came from interior banks which lodned on call either directly or through their corresOct. 16, 1925. 24 pondent banks. Gov. Strong said direct pressure could not succeed unless the Federal Reserve bank refused discounts to any bank loaning on Wall Street or making my speculative loans, even on real estate; that such a course meant rationing of credit which Oct. 27, 1925. 30 would be disastrous. Gov. Strong said some action must be taken as speculation in conmoditke las beginning to wanifest itself. Oct. 27, 1925. 30 Board tables a proposed draft of letter prepared by Miller to Federal Advisory Council aWrtng its aavice and assistance in curbing or altogether eliminating speculative loans through use of Federal Reserve credit. Mar. 11, 1926. 119 to 123 Alexander defends the call loan market as a legitimate secondary reserve for banks. May 20, 1926. 200 See - Alexander http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 196. Sprague, 0. M. W. Makes suggestions at meeting of Open Market Committee on subject of treatment of avar-extended banks. Mar. 20, 1926. 126 See - MdFaddtan bill Miller objects to Board consulting Sprague al to proposed Federal • Reserve credit bureau. April 8, 1926. 153 Sproule, Mr. At the Board meeting, Mr. Sproule, Class C Director of the lodes]. Reserve Bank of San Francisco appeared. He spoke of Perrin's resignation, - take effect Mr. 1, 1926 and said the real explanation was the contrcversy as to the relative power of Chairman and Governor; that the directors considered Perrin's power limited to pTeaiding at meetings of the Board of Directors. Mr. Sproule believe the Chairman should be the preponderant influence in the bank ard should be consulted an all questions of policy; that Perrin's resignation raised the issue squarely mad that the Board must decide it when it appointed his successor. asked him to prepare a memorandum as to his views which he agreed to do. The Board asked him and Mr. Moore to look ?,Lround and suggest names for the new Chairman and. Federal Reserve Agent. Nov. 19, 1925. 41 Squire, Miss We dine with, and meet Mr. and Mrs. Roland Morris, of Phila. Feb. 1, 1926. 96 St. Agnes Church, Washington, D. C. Marion Oliver arranges with her Rector, Father Anderson, of St. Agnes Church, Washington, for a short memorial service in memory of Anna. April 26, 1926. 171 2t. Nicholas Eve. 172 See- Wilson, Mrs. St. Peters Cathedral, Geneva See - Cathedral Stabilisation of prices See - Banking and Currency Comnittee Miller http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis State Department Notifies 40 newspaper men that there will be an important conference at the State Department at 4 p.m. Houghton was there and gave his statement. Mar. 29, 1926. 137 Stearns, Frank W. Cong. Andrew says Steirns told a friend of his that he have moved his bed in the White House into President Coolidge's bedroom, as Coolidge liked to talk with him early in the morning before arising. Oct. 3, 1925. 18 Stewsrt, Dr. Told Board that production was increasing while prices were practically stationary; that he saw evidence that stock speculation Ass being fed by Fedenil Reserve rediscounts; that there was absolutely no reason for increasing discount rates from any industrial or commercial point of view, although the Federal Reserve rate at New York was 1% below the commercial open market rate; that direct pressure would meet the situation if it could be applied; that he was inclined to favor an increase at New York of 1/2 of 1% and he thought this would probably not result in higher open Oct. 16, 1925. 25, 26 mseket rates. Comes down from nil/ York to discuss with Board draft of its anmaal report which he has just finished. Miller bitterly objected to reasons put in the r apart by Dr. Stewart for not having sooner favored an increase in the discount rate of Federal Reserve Bank of New York, especially the statement that higher rates might induce farther gold imports. Dr. Stewart said that an increase to 4% would put a higher base under the call loan rate and tend to keep it up and might increase dusts:mars rates. Miller practically accused Dr. Stewart of taking a particular date so that his conclusions would tally with the figures, - which the dates made Dr. Stewart very indignant. He aaid he to Which were under discussion by the Board. Mar. 2, 1926. 108, 109, 110. Harrison tells the Board that Dr. Stewart will take Warren at $8000 per year if the Board. will not allow the Federal Reserve Bank of Few York to take him for its foreign ellivision at $60= April 19, 1926. 163, 164, 165 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 198. Stckes, Rev. Anson Phelps the future Gertrude Myer said. she and, were joking about Stokes marriage of Mrs. Wilscaa and Dr. Ruffin and that l and Chape wondered whether it would. be held at Bethlehem like , said he could almost hear Mr. Wilson protesting Banquois ghost! Nov. 7, 1925. 35 Stokowski,L. is to marry Mr. Stokowski, Mrs. Wilson tells C.S.H. that Miss Johnsen Miss Johnson leacter of the Phila. symphony Orchestera; that although a quiet wanted her to come on for the wedding, but, s ad she wedding, she felt it might be socalwhat conspicuou decided not to go. Jan. 10, 1926. 80 Strong, Gov. with Gov. Strong in Gov. C. tells Board. he is to have a conference t. New York tomorrow, vvhich fact should be kept quie 23 Oct. 13, 1925. C. C.S.H. feels that Gov. Strozg dominates Gov. 23 Oct. 13, 1925. of the effect of a C.S.H. believes Gov. Strong is thinking more of New York on Bank ' rate increase at the Federal Reserve Great Britain than on the domestic (Situation. Oct. 13, 1925. 23 Harding over the Gov. C. tells C. S.H. that he will talk wi th Gov. he has talked as soon as telephone as to the rate situation, 28 Oct. 19, 1925. with Gov. Strong. ase its rate Gov. Strong said it mi_ght be wise for Boston to incre to be tors, direc York just before some meeting of the New that land; Cleve end . followed in successive weeks by Phila what to as e minds lativ this. would throw doubt on the specu t. effec ing sober New York was going to do, EaIct. have a Oct. 27, 1925. 29 not succeed Gov. Strong told the Board that direct pressure could unts to disco e refus d unless the Federal Reserve banks shoul speculative ing carry or any bank having money invested on call, ratiening the mean loans, even on real estate; that this would of credit, which would be disastrous. Oct. 27, 1925. 30 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 199. Is Strong, Governor (Contid.) speculation in Gov. Strong said some action murt be taken, as ing. caaruolities was beginn Oct. 27, 1925. 30 Sec. The meetir.g voted that Gov. C. and. Gov. Strong should inform Phila. , Boston at rtes se increa to ent a.greem Mellon bts to the and Cleveland, before any action as to New York. Oct. 27, 1925. 30 lack of Gov. Strong tells Platt and. C.S.H. that he felt keenly the ng courtesy and the attacks of certain merabers of the Board (meani C. Miller and James) upon him; that sume months wyo he got Gov. to auk Miller to cane into his office and that he then told Gov. G. and. Miller, that, henceforth, his relations with the Board would be purely official. and dinners He added that he had received many invitati one to lunches (meaning Miller) but that henceforth he would decline them. Oct. 26, 1925. 30, 31. the Gov. Strong tells C.S.H. that he had gone over the matter of increase in discount rater, at Boston etc. with sec. Mellon who Nov. 7, 1925. 33 fully approved. of the Gov. Strong tells the Board of financial matters in Belgium and relati on of the Government to the Belgian Nation& Bark. se He said there was grave danger that the Belgian franc would collap lated out of sympathy with th3 French franc; that Belgium contemp an issue of 100 millions in bonds, but the bankers would not put it theough until the budget vas balanced. He said the Bank of Belgium needed about 150 millions and that the banks of England, Switzerland and Hollani had. agreed to buy trade bills and bankers acceptances, guaranteed for payment in the currencies of the loaning bank, 'by the National Bank of Belgium; that bankr s in the U.S. were expected. to buy 100 millions to be guaranteed payable in dollars; that the Belgian Finance Minister would write a letter that Belgium -Nould not prevent the exportation of gold to make payments, if necessary; that renevtuls would be permitted but the whole transaction would be closed. within ens year. Gov. Strong asked authority, in behalf of the to buy 5 millions of these bills, with the to be made public, to buy S millions more, maximum; he said his directors unanimously Federal Reserve System further authority, net if necessary, as a favored this; http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis strong, Governor (Cont ad.) C.S.H. moved that the Board will interpose no objection. Cunningham bagged to put the matter over until the next meeting, although he said he saw no objection to it. Gov. Strong said quick action vas necessary, as he might have to take action Friday morning. Cunningham then reluctantly withdrew his request for delay. The vote in favor was unanimous except that Miller said. the form of guaranty must be submitted to the Board. for approve.l. Sec. Mellon pointed cut that this would be a hegative vote and, that Gov. Strong coi)ld be trusted to secure a proper guaranty. Miller finally withdrew his objection and on C.S.H.,s motion, seconded by the Comptroller, the vote Ass unanimous. Winston, who vote present, said that if the present Ministry were overthrown, the Belgian debt agreement would, fall with it. Gov. Strong said he thought the present Ministry would remain in povpr for a long time. • Nov. 25, 1925. 44, 45, 46 At a meeting with the Open Market Committee, Gov. Strong said it would be wiser to replace the 38 millions of Govt. securities maturing Dec. ;5; that the sale of 50 millions, as advocated by Miller, would have little effect now, but might have great effect if soli after the first of the year, ',then normally there will be a considerable liquidation. Dec. 1, 1925. 48, 49 Gov. Strong said we must face the isme squarely, - that Miller deitires deflation pre and. simple. Dec. 1, 1925. 49 Gov. Strong went over the domestic situation; he showed. that stock speculation vvas under control; that stock prices were not far out of line with the 1 913 pre-war level t ter allowing for the 50% increase In general prices; that production was increasing; that prices were fairly stabilized. He pointed out that qustomers rates were not low, but fairly high. Gov. Strong said that what Miller wanted, i.e. deflation, could be brought about only by an increase in discount rates, which would put up custoners rates; that it might also result in • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Strong, Gov. (Cont'd.) further importation of gold, thus injuring stabilisation in Great Britain; that it would also cause uncertainty in business. Gov. Strong said his directors were a unit arainst any present increase in discount rates, altho they all felt that in courbe of time they might have to increase. Gov. Strong said. tho Bank of England must soon increase to 5%, but that our rates and open market policy should not now be changed. The other members of the Open Market Committee all agreed with Gov. Strong. Dec. 1, 1925. 47, 48, 49, 50 Gov. Strong tells the Board that Belgium will probably be able to issue the 100 millions within a month, as the budget difficulties were being cleared up. Dec. 1, 1925. 50, The Board voted to approve Gov. Strong'$ request to replace the 38 millions of Govt. securities maturing Dec. 15. Aye: Gov. C., C. S.H., No: Miller, Platt Dec. 3, 1925. 50 Gov. Strong says that Wetmore's statement that the stock speculation had. increased customers rates by 1% is all nonsense. Dec. 3, 1925. 51 Gov. Harding says he talked with Gov. Strong and he was warmly in favor of S H. s reappointment. Dec. 4, 1925. 54 C.S.H. begged the Board to ask Gov. Strong to explain as to the proposed $18,000 salary for the manager of the Buffalo Branch but the Board. would not adopt the aiggeation. Dec. 15, 1925. 63 Gov. C. reports to a special meeting of the Board. that Gov. Strong had called him up; that he said that large anoints were being withdrawn from New York by interior banks, much of which had. been loaned on call; that call loan rates had risen to 6%; that the New York banks had to meet the situation; that they had redisccunted heavily and. did. not want to irmIrease their rediscounts because of the impending Comptroller's call; that they did not want to appear as such heavy borrowers, especially in view of the liquidation which • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis as. Strong, G. (GOnt i d.) would normally cane within 10 days or so; that Gov. Strong and the Open Market Caccai t tee had voted unanimously to buy 15 ot 20 millions of Govt. securities to tide the matter over; that Gov. Strong asked for the Board's approval. Miller as very ugly and said this would be directly feeding the stock market aid that we should disapnrove. C.S.H. said he had talked with Gov. Strong over the telephone before the meeting; that Gov. Strang based his request an business and industrial conditions which lould be injured by these high call loan ra:as and that these bulging call loan rates would react on (lustomars rates. The meeting finally adjourned until tomorrow and Gov. C. was instructed to talk with Gov. Strong again. Dec. 21, 1925. 65, 66 C.S.H. talks again with Gov. Strong-who again said their request was based en the possible injury to business conditions from these bulging, high call loan rates, and not from any desire to help the call loan market. Dec. 22, 1925. 66 Gov. Strong ASS very indignant with Miller and said he Nas trying to put the Comnittee and the Board in a false position; that he intended to take up the matter with Sec. Mellen and with the Dec. 22, 1925. 66, 37. President. At the meeting Gov. C. stated Gov. Strorg Is position again. Dec. 22, 1925. 67 C.S.H. restates Gov. Strong's position that bulging call loan rates are a menace to business. Dec. 22, 1925. 68 Gov. C. told. the Board that the directors of the Federal Reserve Bank of New York had. unanimously voted to direct Gov. Strong to purchase for their bank from 15 to 18 minims of Govt. securitbs. Dec. 22, 1925. ee On vote, Gov. Strong's request was approved. Aye: Gov. C., Janes, C.S.H., Comptroller No: Miller, Cunningham. Dec. 22, 1925. 68 Gov. Strong appears before the Board with G. Norman. Dec. 31, 1925. 71 , 72 See - Norman, Gov. • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 203. tvg46 Gov. (Contld.) 115 millions from the C.S.H. points out that the borrowing of First National Bank, the of York Federal Reserve Bank of New case, by Gov. Strong future any to as N. Y., could be corrected, bank collateral member on rate special a by direct pressure or by 78 1926. 8, Jan. notes. ty to agree Gov. Strong came before the Board and we gave him authori , of Belgium Bank l Nationa the from bills to buy 15 millions of ed, explain he which nt agreeme credit amended along the lines of an -reply, his of ma Norman Gov. from filing a cqly of a cable the final details to be sabject to approval of the Board. Mar. 8, 1926. 111 Strong protested At a meeting with the Open Market Committee, Gov. s Shall be meeting future that Board the from against a notice held in Washington unless otherwise ordered. one, and that Gov. Strong said. the Committee was a purely voluntary in the Board had no authority to issue such an order couched e. languag such peremptory which Gov. C.S.H. explained its history and suggested a new draft be would said ee Committ the of members Strong and the other 124 1926. 20, Mar. perfectly satisfactory. See — Open Market Gov. Strong than read the rsport of the Committee. ; Gov. Strong said a business recession had set in all over the country that it was impossible to tell now whether it would continue; that he knew of one large concern which haa placed orders based on an estimate of 20% increase in sales, only to find that the actual increase ,..as only 3%; that we must be prepared to cope with this recession if it Should continue. Gov. Strong said the Committee should be given authority to make further inv,3stments if any emergency should arise. Miller objected. Mar. 20, 1926. 125, 126 Gov. Strong speaks to Board as to conditions in raw York. Fe said the member banks were borrowing heavily from the Federal Reserve banks, - 142 millions; that there was a recession of business aver the country; that the increased rediscounts tendel to create a pressure for liqpi&tion of customers loan; that conditions in Europe lodked bad; that there was danger of a sudden increase of business recession; that we our,ht to begin to buy securities to ease the money market; that the member banks would use this money for reduction of their rediscounts, thus giving increased http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 204. Strong, Gov. (Cont'd.) power of enlarging credit to oustonkArs; that reducticn of discount rates would not result in nmhe banks reducing their rediscounts but would make it easier for thau to carry the rediasaants. Gov. Strong said the Committee were unanimous in -taking authority, in case of emergency, to ease the market by purchasing, between now and April 15, mt to exceed 90 millions of Govt. securities in addition to replacing the 60 millions maturing on March 151 all but 15 millions of which had already been replaced. Gov. Strong said that the above recommendation vas in the report read at the last meeting, but that the Board had then merely authorized the replacement of the March 15 maturities but had not acted on the above recanmenaation which, in general terms, was embodied in their report. Miller strongly objected. The Committee finally put their recommendation in concrete form:"If ctevelopments in the money market indicate any need f or doing so, the sta aunt of securities in the :;ystern's account may be increased to 300 millions, but no purchases shall be made after April 15, without further consideration." Lost by a tie vote. Aye: No: Gov. C. C.S. H., Jarnea Platt, Miller, Cunningham. Mar. 24, 1926. 128, 129 Board takes 131) the matter again, Sec. Mellon being present. C.S.H. stated Gov. Sting's position. Muir entirely disagreed with Gov. Strong. On James's motion authority as above vas voted. Aye: No: Sec. Mellon, Gov. C., Janes, C.S.H. Platt, Miller, Cunningham Mar. 25,1926. See - Open market 131, 132, 133 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 305. Strong, Governcr (Contld.) Miller said. if what Gov. Strong had said. had been in a report without any discussion, he probably would have voted to give the ithority but that the discussion brought out that Gov. Strong was absolutely wrong. Itiler also said. that one member of the Open Market Coranittee told. him 3f terwards he did. not agree with Gov. Strong althougn he voted with him. Mar. 29, 1926. 137 Miller said that Gov. Strong had a way of suppressing dissent ii.thin the Couraittee. Mar. 29, 1926. 137 Gov. Strong called Ap C.S.H. at the Lee House and. asks him to stop in at H Street on his way to the Board.. C.S.H. found Gov. Strong very much incensed as to alleged statements of Miller at varicus times before the Board as to his (Gov,.) being influencect by the needs of the s tock market in determining purchases and sales of Government securities. G. Strong told, C.S.H. that he intendeci to speak of these charges in his testimony before the Banking End Currency Corauittee that mornirg. He said. Sec. Mellon had told him he had heard. Miller make such statements before the Board and. that he (Sec. M.) was very indignant because of them. C.S.H. has heard Miller several times make such statements. Gov. Strong said he would bring Miller out into the open and. that there would be a sensation before the Committee cn Banking and Currency. C.S.H. begged Gov. Strong not to do this as it would show up divisions in the Board which would seriously injure the Federal Reserve System. C.S.H. said to Gov. Strong that Miller, perhapeunconsciously, is a rabid deflationist. Gov. Strong maid that Miller, Dr. Willis, and the editor of the Caunercial and Financial Chronicle, were all leagued together in the interest of radical deflation, and that he certainly would have something to say about the Commercial ald Financial Chronicle, before he finished his testimony. April 13, 1926. 156, 159 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 206. Strong, Governor (Cont'd.) (The following statements have been maie by Miller as to the above: On Dec. 21, 1925, Miller opposed Gov. Strang's request for Open Market Committee to buy 15 ot 20 millions of Gov. securities, saying, in a very ugly manner, that this would be directly feeding 65 the stock market. On March 24, 1926, the Board withdrew into Platt's roam to vote alGovernor strong's request that the Open Market Comittme be authorized to buy between now and April 15th not to exceed 90 millions of Government securities. Gov. Strong had. spoken of the business recession and of the necessity of being prepared to ease the situation if it should increase. Miller said to the Board that Gov. Strorg's talk about business recession was all rot and that the real motive was to help 129 the stock market. Another attack was made by Miller upon Gov. Strong on Mar. 29, 1926, When Miller said that Gov. Strong had away of suppressing dissent within his Committee.) 137 Gov. Harding tells C.S.H. that he understands that the mention of Gov. Norris's name for C. S.H.'s position came from Gov. Strong. May 17, 1926. 191 Sen. Omen is pleased at the newspapers report that Gov. Norman and Gov. Strong have delivered an ultimatum to the Bank of France. May 18,1926. 191 Gov. Strong has never told the Board that his going Abroad was to take up possible relief for the Bank of France. May 18, 1926. 191, 192 Sweetser, Arthur We lunch with Mr. and Mrs. Sweatier. Several League of nations delegates were there, also Dr. Zimmern. Mr. Sweetser said the Federal Council of Churches was merely an adjunct Sept. 13, 1925. 3, 4. of the Republican machine. Swiss National Bank C.S.H. calla on Mr. Scheider, the Vice President, at Berne. 9, 10. Sept..18, 1925. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 207. Taber, Louis J. C.S.H. gives a lunch at the Cosmos Club to, Master of the Natimal Grange. Present: Sec. Jardire, Platt, Cunningham and Carl Vrooman. Jan. 23, 1926. 94 Taft, Ex-President. 16, 17 See - Andrew, Cong. Tariff Ca:IA.88ton. 92 See - Butler Coolidge Dennis Marvin Tariff Commission David Lawrecne states that PreBident Coolidge had just redesignated Marvin as Chairman of the Tariff Commission; that he wished to designate his friend Dennis, a De010C rat, but that the Mass. Republican said it was absolutely necessary to redesignate Marvin, but that to please Butler ath help him in his . campaign, he had designated Marvin. Jan. 20, 1926. 92 Tausler, Dr. that, sent to his cousin, Mrs. Wilaon, a cosplete Ishii tells account of Ishiila dispute lith Lansing as to sending a Japanese financial aftviser to China, and that Mrs. Wilson showed it to President Wilson. Sept. 12, 1925. 2 Ticknor, John W. 55, 56 See - Arnold, Mrs. B. W. Treaties See - Secret treatiea Treaty book, L. of N. Ishii tells C.S.H. Dr. Nitdbe will show us the, which contains the Shantung agreement. Sept. 12, 1925. 3 OP Trots Rots Hotel, Basle We arrive at 730 p.m. Very good tom overlooking the Rhine for $6 per day, with bath. Sept. 18, 1925. 10 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 208. Tacker, Harry St. George Mr. Tucker calls on us at Lee House. He said that aame 18 months before Wilson was first nominated for President he was visiting Gen. Greely in New Fanpshlre and that Mrs. Preston (Cleveland) came over to lunch; that he praised Mr. Wilson very highly; that Mrs. Preston said he could not vote for "that mani" as her husband, Ex-President Cleveland, had said he was intellectually dishonest. Mt. Tucker also said he met Mrs. Preston again in California, in 1919, and that she told him there was absolutely nothing in the Peck letters discreditable to Mr. Wilson; that he was always tntere3ted in bright women. Jan. 24, 1926. 95, 96 Tumulty, Joseph. 40 S58 Long, Breckinridge -UV- Valiantie Sae - Ledyard, Mrs. Valley Bark of Fresno See - Branch banks Vanderlip, Frank Tells Andrew of proposed loan being negotiated by Charlea Norton, Secretary of President Taft. 16 See - Andr3w, Cong Article in Bankers Magazine praising this Federal Reserve Act and favoring the extension of Federal Reserve bank charters. Says the Federal Reserve Act has proved 95% good. He also says the personnel of the Board has deteriorated noticeably; that the members paid more attention tc, expenses and mtnor administrative matters, than to the major problans they were appointed to consider, and that, if some grecAt crisis should arise their ability to cop l with it was held in grave doubt. May 14, 1926. 188 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 209. Verdun We drove from Metz to Verdun, - about 40 miles, returning to Metz the same day. We visited Fort Vaux and saw the bayonet trench. Sept. 20, 1925. 1 0 Votes, Federal Reserve Board Motion of Cumingham to put in a rate of heads of the directors. Aye: No: at New York over the Curmingham, Miller Gov. C., JarrAs, Nov. 6, 1925. 32 Motion of James to Lp prove Boston increase from 31, to 410. Aye: Gov. C., James, C.S.H. ,Miller No: Cunningham Nov. 6, 1925. 32 To approve Cleveland increase from al to 4. Unanimou.s C.S.H. and Miller voted against its being held up until Monday. Nov. 11, 1925. 35 Motion of Miller that 50 millions of Govt. securities, including the Milliona zuaturing Dec. 15, be sold at once. Lost by tie vote. Aye: Miller, Platt, Cunningham No: Gov. C., C.S.H. , Jam's Nov. 23, 1925. 42 Motion of Platt that the 38 millions be allowed to run off. Substitute moticn of C.S.H. to approve generally the report of the Open Market Comittee, but to call another meeting to determine thiether changed conditions demand a change in open market policy. Passed. Platt alone voted No. Nov. 23, 1925. 43 Motion of Platt that the question of allowing the 38 millions to run off be taken up at the raeeting with the Committee. Passed unanimoualy. Nov. 23, 1925.43 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 210. Votes, Feaeral Reserve Board (Cont'd.) Motion of C. S.H. that Board will not object to parchabe of 5 millions of bills, with b millions aiditional, fr(er. the Naticnal Bank of Belgium. Passed uncs-,imously. Nov. 25, 1925. 46 Motion of C.S.H. to %prove allowing the 38 millions of Govt. securities maturing Dec. 15th to be replaced. Aye: Gov. C., C.S.H., James No: Millar, Platt. Dec. 3, 1925. 50 Motion of Miller to permit Mercantile Trust Co. to take over as branches banks in Burlingame and Palo Alto. Aye: Gov. C., Miller, Platt, C.S.H. No: Ccmptroller, James, Cunningham Dec. 8, 1925. 62 Motion that Examination Ccalmittee report on advsiability of extending the area of contiguous territory to embrace Burlingame and Palo Alto so that other banks be given privileges similar to those given to the Mercantile Trust Co. Passel. Cunningham, No. Dec. 8, 1925. 62 Motion to reject proposed salary of $18,000 for Manager of Buffalo Branch and substi -ute $15,000. Passed.. C S.H. No. Dec. 15, 1925. 63 Motion of C. S.H. that Open Market Committee be authorised to purchase from 15 to 20 millions of Government alcurities. Passed. Aye: Gov. C., C.S. H., James, C cmptroller No: Miller, Cunnineham Dec. 22, 1925. 68 Board approves increase of Federal Reserve Bank, New York, frail. 3 4%, effective Jan. a. Unanimous. Jan. 7, 1926. 76 to 211. Votes, Federal Res-rve Board. (Cceatid.) • http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Moticn of Miller favoring amendment of Federal Reserve Act to abolish 15 day collateral notes. Lost by tie vote. Aye: Gov. C , Millar, Cunningham No: C.F.H., Platt, Jars Jan. 8, 1926. 78 Above motion of Miller again voted on. Lost Aye: Miller, Cuminghan 1o: Gov. C., C.S. H., Platt, James, C cruptr oiler Jan. 13, 1926. 80 Motion of C.8. H. reco-enending amencun•int of Federal Reserve Act to perrx,it member bark collateral notes up to 90 days, secured by eligible paper (but not by Govt. securities) passed.. Aye: Gov. C., C.S.H., Platt, Cunningham, James No: Miller Jan. 13, 1926. 81 The Board voted to approve a proposed reply to Sen. Lonrootis second letter to the Board on Federal Reserve aid to . a took speculation. All voted Aye, except 1il1er, who asked to be recorded as not voting. Jan. 13, 1926. 81 Board voted to refuse permission to Federal Reserve AEent Jay to publish at owe in New York hisfigures on brokers loans. C.S.ri. and James voted in f.wor of granting permission. Feb. 6, 1926. 99 Board voted that Federal Reserve banks must report for approval of Board all RUMS paid to Counsel for collecting claims, etc. altho Wyatt advised us that the U.S. SupretLe Court had ruled that Attorneys are not "officers or employees." Aye: Millar, James, Cunningham No.: C. %II., Platt. Feb. 9, 1926. 106 Motion of Miller that a slam be fixed within which the Federal Reserve banks need not report. Passed unanimously. Feb. 9, 1926. 106 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 212. Votes, Federal Renerve Board. (Contid.) Motion of C.:).H. to table draft of letter, presented. by Miller, to Federal Advisory Council, asking its advice and assistance in checking or altogether eliminating the use of Federal Reserve credit in and of speculative loans. Passed. AU except Cunninghat voted Aye. Cunningham vote No. Mar. 11, 1926. 122 Motion of C.S.H. to permit Open Market Committee to increase System holdings of Govt. securities, prior to April 15th, up to 300 millions, nrovlded that the Board reserves right to prohibit further purchases at any time. Lost. Aye: C.S.H. No: Miller, James, Platt, Gov. C., Cunningham Max'. 24, 1926. 129 Motion of James, same as above but 'without the proviso. Lost by tie vote. Aye: Gov. C., C.S.H., Janes Nc: Platt, Miller, Cunninehan Mar. 24, 1926. 129 James renews above motion. Passed. Aye: Sec. Mellon, Gov. C., James, C.S.H. No: Biller, Platt, Cunningham Mar. 25, 1926. 133 Motion to permit Valley Bank of Fresno to take over and operate as a branch a bank in Prescott, 60 miles away. No branch bank conctit ion was imposed on entry of Valley Back. agreed no injurims change in assets. All Passed. Aye: Gov. C., Platt, Miller, C.S.H. No: Jame s April 6, 1926. 146 Motion of Miller to disapprove and suspeid the appointment of Olsen as Assistant Secretary of Federal Reserve Bank of Chic because not on Federal Reser-:e Agents department of the Bank. Passed. Aye: Gov. C., Miller, James No: Platt, C.S H. April 6, 1926. 148 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 213. Votes, Federal Reserve Board (Cont'd.) Motion Of Platt to strike out all of above relating to disapproval and suspension, and leave in merely a declaration that the Board adheres to its policy that the Secretary and Assistant Secretary should be taken from the Federal Reserve Agents side of the Bark. Passed. Miller and C.S.H. voted No, Miller because he wanted the appointment disapproved 'And C.S.H. because he believed the directors had a right to qppoint anyone whom they chose. April 8, 1926. 152 On motion Board approved absorption by Federal Reserve Banks of 1/3 of expense of cafeterias. Miller alone voted No. April 6, 1926. 154 Board voted to permitliederal Reserve Bank, New York, to employ Warren, of our Research Division, for its foreign division at $6000 per year.Aye: Gov. C., Platt, C.S.H. No: Miller, James Apri120, 1926. 166 Board approves lowering of Federal Reserve Bank, N.Y. discount rate from 4 to 30 Platt said it was premature but would not vote against it. Miller was absent but later said it was premature and intimated he would have voted Against it. April 22, 1926. 166 Board votes unanimously to inform San. McLean that it approves the McFadden bill as reported by the Senate Committee as a step in the right direction. April 23, 1926. 170 C.S.H. movls to lay on the table, temporarily, pending another motion he will offer, the first recommenlation of James on the Cuban Agency: - that it is the sense of the Board that Deputy Governor Caupbell should be eliminated from the Feder. Reserve System. Defeated. Aye: C.S.H., Platt No: Gov. C., Miller, James, Cunningham May 20, 1926. 193 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sm. Votes, Federal Reserve Board (Cont id. Motion of Ccmptroller that tlimpbell be eliminated frau Federal Rsaerve SYEIt OM. Passed. • Aye: Gov. C. , Miller, Jams, Cunninghan, Platt No. C.S.H. Mar 20, 1926. 193 Motion of C.S.H. that a complete report be called fa. from the Fedlral Reserve Bank of Atlanta covering the whole transaction of that Bank in connection with the mcv it of currency to its Havana Agency on April 10, 1926, including all instructions given to the party which accompanied the currency shipment, ircluding the personal conduct of the membIrs of the Party. Passed unanimously. May 20, 1926. 193, 194 Motion of C.S.H. that JEC1413 personally comunicate the foregoing action of the Board to the Bank and the individuals cone arned. Passed unanimously. May 20, 1926. 194 Motion of C.S.H. that Gov. C., Miller, ani Jaeues sse Sec. Mellon and ask him as to the present atti title of the Administration Le to keeping a Cuban Agency in Havana. Passed unanimously. May 20, 1926. 198 Voyage on Pittsburg We sailed from Antwerp Wednesday, Sept. 23; reached Halifax, Nova Scotia on Thursday, 02t. 1st; landed at New York on Saturday, Cot. 3rd, at 10 a.m. 13, 14, 15. Vrooman, Carl At lunch gin by C.S.H. to Louis J. Taber, Master of National Granve, at Cosmos Club. Jan. 23, 1926. 94 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 215. Walsh, David I. John F. Fitsgerald told Gov. Harding that Walsh wants C.S.H. to run for Governor. Jan. 6, 1926. 74 Fitzgerald told Sen. Butler that C.S.H. would be nomina ted for Governor if not reappointed, and Walsh for Senato r. Jan. 5, 1926. 74 C.S.H. explains to Sen. Glass that the Wilson Democrats in Mass. are opposed to Walsh boom is he brake a pledge to sur,port Wilson on the L. of N.; that they voted for Gillett; that C.S.H. if not reappointed, if he so desired, could proba bly iniuce these Deruocrats to vote for Walsh, thus iruperilling Butler's chances. April 3, 1926. 141, 142 Warburg, Paul Favors, vrith soca qualifications, member bank coll?teral notes up to 90 days, secured by eligible paper but not by Government securities. Jan. 8, 1926. 77. C.S.H. writes resume as to part played by Miller and Warburg, in trying to cut down the number of Federal Reserve banks in 1915. Jan. 17, 1926. 89 Col. House showed his abstract of the proposed Federal Ret-;erve Act to Warburg who severely criticised, it in a letter writte n from Switserlauld, in 1913. April 4, 1926. 150 Warren, Charles C.S.H. tells Mrs. Wilson that, would be a good man to act as her Counsel although Judge Covington also was good. Mrs. Wilson asked 0.S.H. which he would choose for himsel f and C.S.H. 33id he would choose Warren. Mrs. Wilson said she had confidence in Warren, but though t it perhaps might be better to have an Attorney who could personally try cases, if necessary, and. who had. an office farce large enough to handle any small reattlrs, e.g. auto suits, etc; that she feared Warren would not want this kind of small business. Nov. 15, 1925. 34 See - Covington http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Warren, Charles (Cont'd.) Mr. and Hrs. Warren invite us to Christmas dinner, but we were engaged to dine with Col. and Mrs. Roge :- s. Dec. 25, 1925. 70 Warren said he met Miller at dinner a few daye ago; that he was so loquacious he thought he must have taken an extra cocktail; that he began to talk about the fight in the Board in 1915 to cut down the number of Federal Rerve banks; that he slid he was the savior of the situation, as he defat. ed the attempt by his vote; that Sec. Lane came to him and said President Wilson was very sorry he favored cutting down the Federal Reserve banks; that he told Lane the President was vagj much mistaken as he was on the President's side in the dispute and had always been so; that after the attempt had been killed by him, the President sent him a most grateful letter. Jan. 17, 1926. 88, 69. See Warren said he had often heard the Millers abuse Mr. Wilson. Jan. 17, 1926. 91. Warren toile C.S.H. that Mrs. Wilson had injured Mr. Wilson by refusing to allow/ Col. House to publish his letters, - to which C.S.H. vigorously disagreed. Mar. 4, 1926. 110 Warren, Federal Reserve Board Sane of Board. were very indignant because Harrison of Federal Reserve Bank of New York offered Warren of our Research Division $6000 per year to go into the Foreign Division of Federal Reserve Bank, N. Y. It appeared, however, that Warren would po to Dr. Stewart at $8000 if he did not go to New York, and Board finally a ppr oved. April 19, 1926. 163, 164, 165 Washburn, Charles Gov. Harding said that Charles Washburn, a director if Fed5ra,1 ResAN e Bank of Boston, said he had written to Coolidge strongly urging C.S.H.'s reappointment. April 30, 1926. 176 Weeks, John Curtiss tells C.S.H. the only fear of C.S.H.'s friends is that sec. Weeks may want his place. Oct. 13, 1925. 23 C.S.H. calls on Sec. Weeks, by appointment, at Wardman Park Hotel. He looked well but had recently had a had attack of angina pectoris, and he had a sliaht stroke about 3 weeks ago. May 7, 1926. 181 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wellborn, Gov. Federal Reserve Agent NeNton tells Board that Gov. Wellborn and some of the directors favor a policy of assisting same 50 Florida banks, which are practicAly insolverit,to the limit without too critical scrutiny of the paper they wouldoffer for rediscount. April 21, 1926. 167 Newton said the Federal Reserve Bank of Atlanta might conceivably lose its capital and surplus if it followed the policy favored by Gov. Wellborn. April 21, 1926. 168 See - Newton James wanted the Board at once to remove Gov. Wellborn, for the reason that, recently, he was grossly intoxicated at a public dinner of Federal Reserve officers and bankers, and, later, at a private house. He said Wellborn was utterly incompetent. Cunningham asked, why, then, did the Board last January, increase his sal,Ary to $25,000? James said this was given to the office and not to the man. Cunningham said that, apart from the charge of intoxication, he should vote to retain Wellborn, as being as competent as the average Gaverrrr of a Federal Reserve Bank. The Board all felt this was a separate Is sue not to be taken up in connection with the Campbell investigation. May 20, 1926. 195, 196 See - Cuban Agency Wetmore, Mr. F. 0. States at meeting of Federal Advisory Council that the New York Stock Exchange speculation has increased customer's rates 2$. Gov. Strang said this was nonsense. Dec. 1, 1925. 51 Whalley, Ex-Cong. Tells C.S.H. at lunch with Mrs. Cowdin that he went abroad as one of thl Congressional Canmittee during the war, with Carter Glass and others; that Glass, Byrnes, and he lunched with Gen. Pershing at Chaumont, at the titre the Armistice was first being talked of; that General Pershing vehemently favored taking Sedan and going on to Berlin; that he (General P.) said it would mean the death http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 218. Whalley, Ex-Cong. (C out Id.) of 250,000 American boys, but that he desired to do it, he said, in order to turn the American soldiers loose on the women of Germany arid give then a taste of what the German Army had done to the women of Belgium and France; that Glass wrote down every word in his diary and that Cong. Byrnes chAcked it up. Jan. 10, 1926. 79, 80 White, Henry Met Irs. Wilson on train; Was furious at Lodge's reference to the cable he sent him from Paris adking what reservations to League of Nations he would eccept. Lodge said Wilson must have asked him to do this, which White denied. White said he had supposed Root and Lodge were his friends. Nov. 15, 1925. 36, 37 Wile, Mr. Lawrence Ivans says Wile told him that President Coolidge knows more of What the people are thinking than any other Presid.ert ; that his only policy was to hold his ear to the ground, find oat 'kat the people want, ano. then proceed to do it; that her believed Coolidge was getting ready to accept the L. of Isi.; that Coolidge'sa,u evidence of a wave of p-ublic opinion for it; Chat he was about satisfied that, in opposing the L. of N. he had put his money on the wrong horse. Jan. 1, 1926. 72, 73 C.S.H. lunches with Mr. Wile. He said H.P.H. had read him at the Woman's Democratic Club Carter Glass's sditorial an the Lawrence Eulogy of Lodge (written by C.S.H.) and that he had sent it to the Pulitzer award jury, and had received word that it was in time; that he thought it one of the most brilliant pieces of editorial writing he had ever seen and felt it would prove a formidable competitor for the $1000 prise. Feb. 4, 1926. 97 Sen. Glass wrote thanking Wile for his letter and added that Bishop Lawrence could not have attached much importance to the editorial as ha had never answered the indictment. Feb. 4, 1926. 98 lilliams, John Skelton 3111ott says that, wanted to bring McFadden before a grand jury; that there were reason s for doing this, but that he advised against it,as it might be claimed. that it was persecution. April 29, 1926. 174 See - McFadden http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 219. Williams, John Skelton (Ccntid.) Deputy Comptroller Kane signs an affidavit giving a history of the McFadden matter and showing that the Coaptroller's office had the same trouble with McFadden and his bank long before Willialas took office. May 8, 1926. 182, 183, 184 Willis, Dr. Gov. Strong says that Miller, Willis, and the Commercial and Financial Chronicle, were leagued together in the interest of radical deflation. April 13, 1926. 159 liaison, Margaret Mrs. Wilson says that Margaret Wilson has been a week in Washington lObbying for the Maternity bill, and that she .i.as sorry to have a daughter of President Wilson doing this. Mar. 6, 1926. 110 Wilson, Miss Dr. Butler says the L. of N. has cut down its budget and that Mtn Wilson, the Librarian, has had to cut down hell staff and may herself reaign. April 16, 1926. 160 . See - Carnegie Board. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 220. WOC1DROW AND MPS. WILSON INDEX References aro to NUmbers Following. Alderman, Dr. 6 Baker, Newton D. 33 Baker, Ray Stannard. 36 Balfour 22 Baruch, Miss. 5, 39, 49, 54 Baruch, Mr. R. N. 16, 19 Bethlehem Cht,Tel. 13 Bolling, Bertha. 65, 68 Bolling, Mrs. 24, 25 Bolling, Randolph 8, 24, 25, 59, 70, 79 Bolsheviks. Briand. 26 Calls on 1116 23 57, Carnegie Board. 63 21,44, 45, 46, 47 Cathedral, Geneva. 4 Chronological table, Wilson. 50, 51, 59, 63, 66, 67, 70, 79. Cleveland, Ex.President. 52 Cleveland, Mrs. 52, 53 Covington, Judge. 16, 20, 35, 36 Davis, Norman. 40 Delano. 29, 33 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 221. Dinner, Wilson btrthday. Dinners. 29, 33, 41, 43, 48 6, 15, 27, 32 (regretted) 34 (Adm. Helm) 39, 59 (Mrs. Pennington) 68, 72 (regretted) See - Teas Doubleday, Page & Co. 40 Drives with. 30, 34, 58, 65, 73, 76, 78 Eliot, Rev. Samuel 33, 43, 48 Elliott, Edward. 77 Esterline. 1 Eustis, Mro. William. 17, 31 Federal Reserve banks. 42 Federal Reserve Board. 71 Gavit, John Palmer. 7 Glass, 'Sen. 50, 71, 75 Greco-Bulgarian dispute. 26 Greely, Gen. 52 Grey, Lord. 28, 61 Hamlin, Anna. 72, 74 Hamlin, Harriet. 58 Hamlin, H.P. 11, 31, 38 See- Pa, Ma and Mae Harriwan, Mrs. Borden.. 6 Honorary degree, Oxford. 60 House, Col. 54 56, 62, 71 Household troubles, Geneva. 9 Houston, Sec. 40, 41 Internatiaial Club. 1, 5,-6 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 222. Ishii, Viscount. 2, 3, 22, 23 See - Long Johnson, Miss. 5, 37 Jones, Jessie. 21 Kahn, Mrs. Julius. Lane, Nancy. 77 19 Lansing, Mrs. 69 Lansing, Sec. 2, 3, 22, 23 Leesburg, Va. 31 Letters from Mra. W. 12, 20, 43 Letters to Mrs. W. 25, 26 Lodge. 18 Long, Breckinridge. 22, 23 McAdoo, W. G. 55 McCoy, Judge. 20 Miller, Adolph. 42, 77 Moore, Cong. 34 Myer, Gertrudo. 13 Non-partisan League. 59, 49 Olney, Sec. 55 Oxford University. 60 Pa, Ma and Mae. 36, 39, 49 Paderewski. 41 Paris. 10, 13 Patten, The Misses. 13 Peace proposal. Wilson'. 28 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 223. Peck letters. 53 Pennington, Mrs. 51, 59, 66, 70, 79 Pool. 15 Preston, Mrs. (Cleveland) 52, 53 Pruyn, Hendrick. 8 Reappointment. C.S.H. 75 Rogers, Col. ec .Mrs. 32 Root, Elihu. 18 Royalties, Chrondlogical table. 79 Ruffin, Dr. 1, 13 Russia. 23 Scott, James Brown. 44, 46, 46, 47 Secret allied treaties. 2, 22 Shantung agreement. 2 Stdkes, Rev. Anson Phelps. 13 Stokowsky, L. 37 Teas with Mrs. W. 30, 65 Teusler, Dr. 3 Treaties See - Secret allied treaties Tucker, Harry St. George. 52, b3 Tumulty. 23 Warren, Charles. 16, 42, 62, 67 White, Henry. 18 White lilac sprig. Wilson, Margaret. 74 64 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 224, Wilson, Woodrow. 2, 22, 23, 26, 28, 29, 33, 40, 42, 44, 46, 47, 52, 53, 55, 60, 62, 64, 71, 77. 3, )(3 - Chronological table. Wamans Democratic Club. Wytheville, Va. 24, 25 79 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 225. Wilson, Woodrow and Mrs. 1. Mrs. Wilson takes Dr. Ruffin and Mr. Esterline to drive and to lunch at the International Club. Sept. 12, 1925. 1 2. Ishii says he told Lansinc in 1917 of the secret Shantung treaty but believes that Lansing did not tell Wilson. Sopt.12, 1925. 2 3. Ishii says Dr. Teusler wrote his cousin Mr.. Wilson about the dispute between Lansing and himaif as to sending a Japane se financial adviser to China. Sept. 12, 1925. 2 4. Mrs. Wilson off,irs us tickets to the Cathedral cermnonies but we already haJ Sept. 13, 1925. 3 5. Mrs. Wilson says Miss Baruch and Miss Janson are to give a dinner at the International Club tomorrow; that she could not go but wants us to dine with her. Sept. 16, 1925. 6 6. We dine with Mrs. Wilson. Dr. and Mrs. Alderman and Mrs. Harriman ' were there. Miss Johnscn and Mils Baruch were giving anothe r dinner at the International Club. Sept. 17, 1925. 9 7. C.S.H. goes over Mrs. Gavitia writings with Mrs. Wilson and she really semmed impressed. Sept. 17, 1925. 9 8. Wa told Mrs. Wilson about Hendrick Pruynis letter s to her Which Mr. Bolling had not forwardea; she was not at all disturbed About them. Sept. 17, 1925. 9 9. Mrs. Wilson tells us amusing storiec about their household troubles with servants in Geneva. Sept. 17, 1925. 9 10. Mrs Wilson said they would leave next lunday for Paris, as their lease in Geneva was only for one month; that she would probably be back in Washington by ths nIci of October. Sept. 17, 1925. 9 11. Mrs. Wilson ./iLid we must stay with hr in Washington until we fixed our winter plans. Sept. 17, 1925. 9 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 226. Wilson, Woodrow ord Mrs. (Co:It'd.) 12. Mr. Mitchell, of the Red Star Line, gave us a delightful letter from Mrs. Wilson forwarded in his care. Sept. 23, 1925. 12 13. Gertrude Myer tells C.S.H. she &nail° that Mrs. Wilson is engaged. to Dr. Ruffin; that it was scandalous for Dr. Ruffin to go abroad to see her and to visit her in 1Nris. C.S.H. told her Dr. Ruffin was in Geneva only one day, and saw very little of Mrs. Wilson, and that he did not visit her in Paris. She said the Pattens told her that Mrs. Wilson was engaged to Dr. Ruffin 'en he first mat President Wilson, and that when she becaram engaged to Mr. Wilson she wrote Dr. Ruffin a most casual letter to that effect. She said it was scandalous for Mrs. "Tilson to keep Dr. Ruffin as her physician. She also said she and Rev. Anson Phelps Stokes were joking, the other day, as to whether the warriage would be held at • Bethlehem Chapel and that the Rev. Stokes said he could almost hear Mr. Wilson protesting, like Banquo's ghost. C.S.H. very sternly told her there was not a, word of truth in this rumor, that it was silly gossip, and that he believed she herself was in love with Dr. Ruffin, and mad with jealousy. She still insisted she knew the rumor was true. 5he is a malevolent gossip! Nov. 7, 1925. 34, 35 14. Its. Wilson stairs us to dinner for Saturday. Nov. 12, 1925. 35 15. We dine with Mrs. Wilson, and C.S.H. later plays pool with her. Nov. 15, 1925. 35 16. Mrs. Wilson tells C.S.H. she wishes to retain a lawyer to look after her affairs, ond to advise her, from tim, to tiwe. She said Mr.. Baruch had suggested Judge Covington, Who had acted for him. 3aid Covington was a first-class man but that he would maLe some quiet inquiries about him, and 13t her know. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 227. Wilson, Woodrow and Mrs. (Contid.) Mrs. Wilson then asked about Charles Warren, and C.:..H. said. she could not get a better man. She then asked C.S.H. he would choose if it were his aAn matter. C.S.H. said he personally would choose Warren, ant added that if questions of copyright, contracts, etc. should ever arise , Warren would be an invaluable man. Mrs. Wilson said she had confidence in Warren, but was incli ned to think that it might be better to have come lawyer who had an office force large "In oue.% to handle amall matters and who would try cases personally -then advisable. She feared. Warre n ruight not want to handle mall matters such as might come up. She said she would not make up her mind until C.S.H. reported on Covington. Nov. 15, 1925. 35, 36 17. Mrs. Wilson said. Mrs. Eustis had, been in Johns Hopkins Hospital since she returned frrn Europe. Nov. 15, 1925. 36 18. Mrs. Wilson said that when in New York she bcugh t a copy of Lodge's book on the Senate and. the League of Nations to read en the train; that while reading it Henry White suddenly carae up and, spoke to her; that he was fnricus at Lodge's reference to the cable he had sent him from Paris, and said he had alww's supposed that Root and Lodge were his friend.s. (See scrap bock as to White's published letter.) Nov. 15, 1925. 36, 37 19. Mrs. wilson said that Nancy Lane had coma to New York End had asked Mr. Baruch to help her obtain a movie engagement; that she had a bad. case of goiter. Nov. 15, 1925. 37 20. C.S.H. calls up Chief Justice McCoy and asks about Judge Covington without mentioning Mrs. Wilso n's name. Judge McCoy praised him in the highest manner and C.S.H. wrote Mrs. Wilson receiving a most grate ful letter in reply. Nov. 16, 1925. 37 21. Mrs. Wilson in response to a request from suggests names, azsong others, that of Jesus Jones, as Food men for trustee of Carnegie Sniammeht. Nov. 16, 1925. 37 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Wilson, Woodrow and Mrs. (Conted.) 22. Breckinridge Long tells C.S.H. that Mr. Wilscn was in error when he said. he first learned of the secret Allied treaties when a rote., in 1919; that he knew that Balfour told. Wilson of them at a secret conference in the Whit e House in that he did. not know whether Balfour told, Lansing or not. Nov. 18, 1925. 39 23. Long said that after 1919, ninon never corizzmicated with Lansing in any way; that he practically managed the State Department *Um Wilson was in Paris; that once the question came up whether we should ..Prith,draw cur troops frau Russia to avoid open conflict with the Bolsheviks; that he finally got Turzalty to get Mr. Wilson to advise him what to do, and that sho*tly afterwards, a cable came from Mr. Wilson directing the withdrawal. Nov. 18, 1925. 40 24. Mr. Bolling calla up C.S.H. to say that his Kother had died early in the morning; that Mrs. w.and he were going to Wytheville, Va. tomorrow; that the funeral would be on Monriay. Nev. 21, 1925. 42 25. C.S.H. wrote Mrs. Wilson a letter of sympathy sending flowers . Nov. 21, 1925. 42 26. C.S.H. writes Mrs. Wilson quoting Briand's statement that the Council of the League of Nations dedicated the happy ending of the Greco-Bulgarian disp.ute to the memory of Woodrow Wilson, who conceived and brought to realization the L. of N. Nov. 26, 1925, 46, 47 27. Mrs. Wilson calls C. 3.H. up and asks him to come up to dinner. Nov. 29, 1925. 47 28. Mrs. W. tells C.S.H. that President Wilson did not want to meet Lord Grey "then he cone here the last time. She also said, she believes, but dens not know that he ow angry with Lord. Grey because of the manner in which he treated. his 1916 peace proposal. Nov. 29, 1925, 47 29. C.S.H. accepts Delano's invitation to serve on a Corgrittee to arrange a dinner in Washington cn Wilson's Mr tir...4 a,y, Dec. 28th. Dec. 5, 1925. 57 30. Mrs. Wilson semis her auto to take us tc drive. Afterwards we stopped at her house and she drove hone with us. Dec. 13, 1925. 62 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 229. Wilson, Woodrow and Mrs. (Cont'd.) 31. Mrs. Wilson takes H.P.H. to Leesburg, Va. to lunch with Mrs. Eustis. Dec. 22, 1925. 69 32. Mrs. Wilson invites us to Christuas dinner but we had already accepted the invitation of Col. and Mrs. Rogs rs. Dec. 25, 1925. 70 33. C.S.H. attends lilson manorial dinner at the Mayflower Hotel. Delano presided and male a good address. Rev. Samuel Eliot and Newton Baker also delivered fine addresses. Dec. 28, 1925. 70 34. Mrs. Wilson and Mr. Bolling, C.S.H. and M.P.H. dine with Adndral and Mrs. Helm. Admiral Helm ASS ill and Judge Moore, a Virginia ConFreasman, took his place. Mrs. W. called for us at the Lee House and took us to and from the dinner. Jan. 5, 1926. 75 35. Mrs. Wilson tells C.S.H. she has taken Judge Covin gton as her Counsel and haa 11,-et an interview with him today. Jan. 5, 1926. 75, 76 36. C.S.U. advises Mrs. W. surely to go over with Judge Covington any papers she may have signed with rega rd to Ray Stannard Baker and the biography; that this was of the utmost importance. Jan. 5, 1926. 75, 76 37. C.S.H. calls up Mrs.Wilson and, incidentally , speaks of the newspaper rumor that Miss Johnson is to marr y Leopoldt Stdkowski, leader of the Phila. orche stra. She says it is true; that they wanted her to go on for the wedding, but that she felt it would be rathe r conspicuous and decided she could not gc. C.S.H. had a feeling that she did not favor the marriage, although she did not say so. Jan. 10, 1926. 80 38. Mrs. Wilson asks us to dinner tomorrow and says she wants H.P.H. to read to her "Pa, Ma, ad Mae." Jan. 12, 1926. 80 39. We dine with Mrs. Wilson and H.P.H. read to hlr "Pa, Ma and Mae." http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 230. Wilson, Woairow and Mrs. (Cont'd.) 39. (Cant'd.) She said it was wcnderAilly well done and that She would send it to Miss Baruch aml felt ehe could arranpe to have the Non-partisan league publish it. Jan. 13, 1926. 82 40. Mrs. Wilson tells C. Ii. that when in New York in December she mat Sec. Houston at Norman Davies house; that she said to him she had heard he was about to publish his reminiscences; that he replied that he had written them but had no present intention of publishing them, that that was a question to be decided in the not near future. She said she had intended to tall him she was unwilling to have Mr. Wilson's private correspondence printed in the book, but that he was so positive in his assertion that he had no present intention of publiihing the book that she mite no mention of it. She said that, however, when she returned to Washington she was shown Doubleday, Page & Co.la official nnnouncement of the pULlication, dated Dec. 18th - before her visit to New York and that she at once drafted a letter to him stating that his unequivocal denial to her of any present intention of publiihing the book in the near future made it seam unneceLsary to her to • tell him of her wish not to have Mr. Wilson's letters published in the book; that the official announcement of Doubleday, Page & Co. of immedite publication made it necessary for her to tell him her lishes in the matter, - which she proceeded to do. She said that she showed this draft to Judge Covington who said it showed evidences of anger, and thought it would be more forcible if emewhat softened; that thereupon she did somewhat soften it and mailed it. She read to C. .H. the typewritten reply of Houston, -a very evasive and not candid letter. Houston said the only private letter of Ur. Wilson referred to in his bock was one sent in reply to his letter -vritten just before his term expired, - evidently a letter he wished to publish for purposes of self-glorification. Mrs. Wilson felt that Houston deliberately tried to deceive her and she was very much stirred and indignant, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 230. Wilson, Woairow and Mrs. (Cont'd.) 39. (Cont'd.) She said it was wonderftlly well done and that she would send it to Miss Baruch end felt she could arrange to hove the Non-partisan league publish it. Jun. 13, 1926. 82 40. Mrs. Wilson tells CJ•.H. that When in New York in December she met Sec. Houston at Norman Davis's house; that she said to him she had heard he was about to publish his reminiscences; that he replied that he had written them but had no present intention of publishing them, that that was a question to be decided in the not near future. She said she had intended to tall him she was unwilling to have Mr. Wilson's private correspondence printed in the book, but that he was so positive in his assertion that he had no present intention of publiehing the boat that she MAie no mention of it. She said that, however, when she returned to Washington she was shown Doubleday, Page & Co.la official mnouncement of the publication, dated Dec. 18th - before her visit to New York and that she at once drafted a letter to him stating that his unequivocal denial to her at' any present intention of publiihing the book in tbe near future made it seem unneceLsary to her to • tell him of her wish not to have Mr. Wilson's letters published in the book; that the official announcement of Doubleday, Page & Co. of immedigte publication made it necessary for her to tell him her ALshes in the matter, - which she proceeded to do. She said that she showed this draft to Judge Covingt on who said it showed evidences of anger, and thought it would be more forcible if somewhat, softened; that thereupon she did somewhat soften it and mailed it. She read to C.S.H. the typewritten reply of Houston, -a very evasive and not candid letter. Houston Stairl the only private letter of Ur. Wilson referre d to In his bock WKS one sent imre:r13c.to his letter -ritten juet before his term expired, - evidently a letter he wished tc publish for purposes of self-glorification. Mrs. Wilson felt that Houston deliberately tried to deceive her and she was vary much stirred and indignant, http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 231. Wilson, Woodrow and Mrs. (Cont'd.) C.S.H. agrees with Mrs. Wilson entirely and believes Houston feared she was gotng to forbid the publication of Mr. Wilson's letters when he saw her, and tried to avoid this by making her think he had no pre3ent intention of publishing the book, - a deliberate falsehood. Jan. 13, 1926. 84, 85 41. Mrs. Wilsen said Houston did not come to the Wilson dinner in New York pleading as nn excuse a prior engsgement for a dinner in honor of Paderewski; that Norman Davis begged him to came, s:--ying that he owed all he had in the world to Wilson, but he would not; that Paderewski came late to the Wilson dinner. Jan. 13, 1926. 85, 86 42. Miller tells Charles Warren that he was an Wilson's side in the dispute over cutting down the number of Federal Reserve banks, in 1915, that his vote saved the situation, and that Wilson Irote him a grateful letter of thanks. Jan. 17, 1926. 88, 89, 90 See - Miller 43. Mrs. 44. Mrs. Wilson nails up C.S.H. at the Treasury to say that James Brown Scott has just written her enclosing the Wilson resolution of the Carnegie Board, which was voted on April 16, 1925. Wilson calls up C.S.H. and thanks him for sending Red. Samuel Eliot's address at the Wilson dinner. Jan. 19, 1926. 91 Same days ago C.S.H. telephoned Scott's office that Mrs. Wilson had never received the resolution, and this evideltl y is the response. Mts. Wilson read C.S.H. her proposed reply. It is extraordinary that Scott, in spite of his dislike for Wilson, should have delayed sending this from April 16, 1925, to January 20, 19261 Jan. 20, 1926. 91, 92 45. Copy of Scott's letter to Mrs. Wilson. 91, 92 46. Scott writes C.S.H.: "You will be glad to know we have just received the enclosed reply from Mrs. Wilson in regard to http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 232. Wilson, Woodrow and Mrs. (Cont,d.) 46. (Contii.) the resolution of the Board of Trustees which I had the pleasure of sending her in behalf of the Carnegie Mndowment." That Scott should have delayed sending this from April 16, 1925 to January 20, 1926, Blume clearly his animus towards Mr. Wilson. Jan, 21, 1926. 93 47. C.S.H. calls up Mrs. W. and told hilr of the above. Jan. 21, 1926. 94 48. Mrs. W. asks us to come up and we do so; C.S.H. reads to her Ray. Samuel Sliotis address at the Wilson dinner of Dec. 28, 1925. Jan. 23, 1926. 94 49. Mrs. Wilson tells H.P.H. that Miss Baruch said that the reader of the Non-Partisan League said she enjoyed "Pa, Ma, m1,12434" very much but feared it was too partisan for the League to publish; that she would ropert on it Officially later. Jan. 23, 1926. 94, 95 50. Mrs. Wilson objects to having Sen. Glass's secretary prepare the chronological sketch of Mr. Wilson which Mrs. Pennington is to have printed, because he once sent her a sketch of Mr. Wilson, full of errors, Which he asked htm not to publish, but which he did nevertheless. Jan. 23, 1926. 95 51. Mrs. Wilson and Mrs. Pennington beg C.S.H. to prepare the chronological eketch of Mr. Wilson and ho agreed to do it. Jan. 23, 1926. 95 52. Harry Tucker tells C.S.H. that he visited Gen. Greely in New Haupshire about 18 months before Wilson was nominated far President and that Mrs. Preston (Clevelamd) CaDVII ovar to lunch; Chat in reponse to his praise of Wilson, Mrs. Preston said the could not vote for that man as her husband, Ex-Presid:Int Cleveland, had said he was intellectually dishonest. Jan. 24, 1 926. 95, 96 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 233. Wilson, Wooirow and Mrs. (Cont 'd.. ) 53. Harry Tucker also said he met Mre. Pres ton (Cleveland) again in California in 1919 and that she toll him there was absolutely nothing in any way disc reditable to Mr. Wilson in the Peck letters; that Mr. Wilson as always interested in bright wome n. Jan. 24, 1926. 95, 96 54. Mrs. Wilson calls up to say she is going south tomorrow night for two weeks. She is to visit Miss Baruch. Jan. 26, 1926. 96 55. The Washington Post publishes rar t of Col. House's book. It states that McAdoo wanted C.S.H. for thl Federal Reserve Board but that Wilson said that he preferred Olney and that he happened to be Presidwit; that later C.F.H. was appointed in accordance wit h McAdoo's wishes. The fact is true that McAdoo want ed C.S.H. but it is also true that Olney strongly urged Wils on to appoint C.S.H. Feb. 9, 1926. 105 56. C.S.H. called up Mrs. Wilson. Inci dentally, in speaking of the Colonel Hausa book, she said Col . House was avarently an ass! Feb. 19, 1926. 107 57. We call on Mrs. Wilson but she had gone out. Feb. 21, 1926. 107 58. Mrs. Wilson takes C.S.H. and Harr iet Hamlin on a long auto driv e, leaving Harriet at the Railroad station. Feb. 22, 1926. 107 59. We dine with Mrs. Pannineton; Mrs. Wilson, and dY. Bolling were also there. We talked over the Wilson chro nology. Feb. 25, 1926. 108 Mrs. Wilson said Oxford offe red Mr. Wilson an honorary degr ee while he was In Paris, but that he could not go to Oxford to receive it, and the Oxford rule requires the recipient to be present. 60. She said Mr. Wilson often had said that he should appreciate an honorary degree from Oxford mor e than from any other University. Feb. 25, 1926. 108 61. C.S.H.sands Mrs. Wilson Vol. 2 of Lord Grey's book. Mar. 1, 1926.108 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2 34. Wilson, Woodrow and Mrs. (Cont'd.) 62. Charles Warren tells C.O.H. that Mrs. Wilson had. greatly injured Mr. Wilson by refusing to permit Col. House to p ublish his letters in his book. Mar. 4, 1926. 110 63. Mrs. Wilson calls and spends an hour with us at the Lee Haase. C.S.H. gave her a nem ciraft of the chronological table of Wilson. Mar. 6, 1926. 110 64. Mrs. Wilson says Margaret Wilson has been .A,ith her for a weel; that she was "lobbying“ for the maternity bill;that she was very sorry that a danghter of Mr. Wilson would, thus use her influence. Mar. 6, 1926. 1.10 65. Mrs. Wilson takes us, with her sister, Bertha, for a lonc drive, stopping for tea at a tea house on the Alexandria rale. Mar. 8, 1926. 111 66. Mrs. Wilson and Mrs. Pennington call to talk over the Wilson chronological table. Mar. 13, 1926.124 67. C.S.H. asks Charles Warren to go over the Wilson chrenological table, and he made many valuable ;suggestions. Mar. 14, 1926. 124 68. Mra. Wilson takes us and her sister Bertha on a long drive. April 3, 1926. 140 69. Mrs. Wilson tells us that the other day, at the Wonans Demolratic Club, :4rs. Lansing came up and 'baked with her. April 3, 1926. 140 70. We dine with Mrs. Pennington. also there. Mrs.Wilson and Mr. Bolling were We talked over the Wilson chronological table. April 5, 1926. 146 71. Sen.. Glass tells C .S. H. ham the Federal Reserve Board name to be agreed upon by Mr. Wilson and himself and criticisms Col. House, April 4, 1926. 148, 149, 150. Se - Class, Sen. 72. Mrs. Wilson arks Vs to dinner for Mcnday,April 26th, - the anniversary of Anna's death, but H.P.H. toll her she did not feel up to it. Mrs. Wilson said she asked. us thinking it might help Us, and that she understood perfectly our April 24, 1926. 171 feelings. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 2315. Wilson, Woodrow and. Mrs. (Contid.) 73. Mrs. Wilson takes us on a long drive. April 26, 1926. 171 74. Mrs. Wilson reminds us of our gathering a sprig cf on St. Nichola2. eve, when H.P.H. and Anna were and putting it in a warm place in the Kitchen, saying it would bloom on Christmas Day, but it white lilacs visiting her, H.P.H. did not. Mrs. W:lson said she had just discovered that the sprig 'vas not taken frau a lilac bush at all: April 26, 1926. 171, 172 75. Mrs. Wilson asks C.:).H. as to hie reappcintment arxiC.S.H. told her all out it. She asked if she might speak to Sen. Glass about it, and C.S.H. said he hoped she •vould. She said all, : ,vould tell him hcm deeply she 'vas interested in it. She said she would do all in her power to help. April 26, 1926. 172 76. Mrs. Wilson takes us on a long drive. Ma,y 5, 1926.177 77. Mrs. Julius Kan says she believes that one reason for Miller's appointment on the Federal Reserve Board -as because he had lganed his house in Berkeley to Edward Elliott who married the first Mrs. Wilson's sister, and helped pet him a position in the University of California. y6, 1926. 178 78. Mra.Wilson take Uk3 on a lone drive. May 9, 1926. 79. 185 Mrs. Pennington tells C.S.H. that Mr. Bolling asked her if she wits going to give all the royalties on the chronol(gical table of Mr. Wilson, to the Woman's Democratic Club; that she thought he had in mind that some part should be given to Mrs. Wilson, Mrs. Pennington asked us if we would. object to her writing Mrs. W lam that she would give one-hAbf to her and. onehalf to the Club. We both said we -mulct be most pleased to have her do this. Mrs. Pennington's original intorition was to give all the royalties to the Club. May 11, 1926. 186 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 236. Wing, Daniel Curtiss said that Ex-Gov. C OZ raa receivirg a salary of $25,000 per year as Vice President of Wines bank. Oct. 13, 1925. 23, 24 Gov. Harding tal s C. .11. that when he returns to Boston he vill ask Wing to wire Sen. Butler that it is ir,perative that C.S.H. be reappointed at once. April 30, 1926. 176 Gov. Harding sa:re Sen. Butler told Wing that the matter of C.S.H.'s reappointment ha:1 been taken out of his harris and left 'Ala. Searetary Mellon and President Coolidge, -t his great relit, as he did not want to disappoint the Republican politicians nor to alienate C.S.H. Is many supporters in Mass. May 17, 1926. 19r% Winston, Under Secretary of Treasury Says that if the present Belgian Ministry is overthrown, the Belgian debt agreement would tall with it. Nov. 25, 1925. 46 Tells C.S.H. that Sec. Mellon ar.d lie are much ciisturbed at Miller' motion to abolish 15-day collateral notes, as it would seriously interfere with Trea:•ury operations. He said Sec. ael1on Was very angry with Miller; that Sec. Mellon was satisfied that Miller and Hoover were wozking together and had egged on Sen. Lwroot to -rite his two letters to the Board as to the use of Federal Reserve funds for sreculative loans; that these letters contained statements raid agreements Sen. Lenroot could not have made nithout inside s.ssi stance. Jan. 9, 1926. 78 Gov. C. says Winston told him it nos perfectly well understood. that Hoover was domirating Miller and that he had Droved that Hoover got inside inform3tion from Miller; that Sec. Mellon was very mach /is turb el r:bout it. Mar. 26, 1926. 134 Winston tells Platt that while ordinarily he would prefer to have a Rerrublican appointed, yet in this case he felt that C.S.H. should surely be reappointed and that he Ivould say so to Secretary Mellon. April 12, 1926. 157 Wanana National Democratic Club. 82, 97, 98. See - Harriman, Mrs. Penrington,Mrs. Wile, Hr. http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 237. World Court Lawrence Evans told. C.S.H. that Hr. Call, a newspaper nublisher, told him that Sen. Borah told him (Call) that Prebident Coolidge told. him (Borah) that he felt the U.S. phould steer clear of the World Court, but that the pressure on him was so strong he could not resist itl Oct. 13, 1925. 23 Mrs. Bruce takes H.P.H. to the opening of the World Court debate in the Senate. Dec. 18, 1925. 64 writes President Coolidge t lling him of the c.diress before the International Club of Austen Chamberlain and Lord. Cecil, on thi World Court, on Sept. 7, 1925. Nov. 25, 1925. 43 (See scrap book for copy of letter.) Wyatt, Gen. Counsel Tells C.S.H. that the regulation§ of the Board provided for in Section 14 of the Federal Reserve Act are not a condition precedent to the right of a Federal Reserve bark to buy or sell Covernment securities in the open market; that the Board had made only general regulations not specifically limiting such purchases and. that, therefore, the Federal Reserve banks had a right to buy or sell them. Dec. 22, 1925. 68 Advises Board that Federal Reserve banks are not bound. to report for approval amounts paid counsel for collecting claims, etc. as the U.S. Supreme Court had decided that attorneys were not "officers" or "employees." Feb. 9, 1926. 105, 106 Board aalt.a Wyatt to prepare a plan for having one of the Boston freployees of the Cuban Agency designated to act as Assistant Federal Reserve Agent of the Atlanta Bank ant to hold unissued Federal Reserve notes, to be issued only in emergencies, to sane other Boston officer, designated to receive the note:3 in behalf of the k;lantl Bank.. This on the assumption that the Havana Agency Ass to be discontinued. April 30, 1926. 175, 176 Wyatt leaves for Havana with Jamet3 and Herson. May 2, 1926. 177 http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 238. -X- X-rays 19, 20, 21, 53, 54, 62 See - Joslin Morni son Christie Merritt -YZZimmern, Dr. We maet Dr. Zimraern at lunch at Mr. Sweetser°s. every morning cn the League of Nations. He lectures vos hitter against Austen Charaberlain, saying be rtshed to shelve the League of Nation. He said the League of Nations was fighting for its life aver the proposed •Protocol, and that tha Assembly would nevir cars ent to shelving it. He said. 1;ha; if Lord Cecil had been Minis ter of Foreign AVairs, the Protocol would have been accepted, at least on principle, but the right to file reservaticns might have been reserved. Sept. 13, 1925. 3, 4. (13:nd of Volume XI).