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Collection Thia
THE PAPERS OF
CHARLES SUMNER IH
DIA TES
Series and/or Container
Shelf/Accession No.
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Federal Reserve Bank of St. Louis
31ro)
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Federal Reserve Bank of St. Louis
/.7(
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Federal Reserve Bank of St. Louis
D c
Zulex- Digest.
Abbot, Atiel, Westford.
Henry Wright Faid bell tolled at funeral or, in Westford. Mrs.,
died latar. Jan..lary 6, 1932. 37.
Abbott, Gordon
Mr. and Mrs. called on us.
March 17, 1932. 94.
Bertto goes with Lars Anderson to a cocktail party at General Wright's
in honor of.
Abbott, John. Westford.
Henry Wright says, is living in his Tather's house.
January 6, 1932. 37.
Abbott, Luly
Henry Wright says that, who married John Cameron, is living in a house
on the Granteville Road.
January 6, 1932. 37
Abbott, Mrs. John
Henry Wright says, is still living in Boston — over 90 years old,
and that Kate Abbott is with her.
January 6, 1932. 38.
Abbott, Kate
See supra.Abbott, Mrs. John
Acceptances
C.S.E. believes that the 30 million of frozen German acceptances
held by Paul Warburg's bank are the real cause of his illness.
Dec. 17, 1931. 21.
Gov. Harrison writes Glass that all open market operations, including
the purchase of acceptances, were approved by Federal Reserve Board.
Gov. Harrison forgets that, under authority of the Board to buy
acceptancas in latter part of 1928 in order to provide seasonal
funds, the Federal Reserve Bank of New York bought 80 many that
the banks not cnly mat all seasonal reqatreaents, but were able
to take down 197 millions of discounts; that the Federal reserve
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Federal Reserve Bank of St. Louis
2.
Acceptances (Contld.)
bank actually held 2/3 of all acceptances outstanding and this
turned the firming policy of the Board into a:policy of ease;
that even customers rates declinei instead of the normal Fall
stiffening, and that speculation increased enormously; that Burgess
in a published address said the Federal Reserve Bank of New York
bought at least 100 millions more than was necessary; that Gov.
Harrison in testimony before Senate Committee admitted that an
excessive amount was bought.
April 8, 1932* 145
Lichtenstein, Secretary of Federal Advisory Council, told C.S.H. that
Prof. Bullock toll him in 1928 of this undue purchase of acceptances.
May 23, 1932. 171, 172.
Acceptances, Trade
New York District Committee is arranging for help to borrowers by
purchase by Federal Reserve Bank of.
May 26, 1932. 177.
Adams, C. 7. Secretary of Navy
C.S.H. called on, on New Year's Day.
Jan. 1, 1932. 35.
Josephus Daniels told H.P.H. that Rowland Morris, Counsel of Col. Smedley
Butler, forced Sec. Adams to agree that Morris ghoul& write his own
letter of apology to Sec. Adams, because of the attack on Mussolini,
and should also write Sec. Adams's letter of censure to Major Butler.
Morris said if this was not agreed to, he would prove that at the
Boxie uprising Hoover was found in a cellar disguised as a woman and
dragged out.
Sec. Daniels said that Rowland Morris told hial this.
Jan. 1, 1932. 35.
Advisory ()Anima
See — World Court
Affiliates, Security
See — Security affiliates
Agnew, Mr.
Indorses Howland Chase for position of Assistant Counsel, Pederal
Reserve Board.
April 14, 1932. 125.
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3.
Allied debts
C.S.H. fears the proposal of Gov. Meyer, Ogden Mills, etc. to
put an end to correspondent relation between Federal Reserve
Bank of New York and Bank of France grows out of Hoover's
hostility towards France because of her desire to cancel.
Jan. 19, 1932. 46.
Ambassador to Great Britain
Andrew Mellon takes oath of office as.
Feb. 12,1932. 66.
Amendment.. 194
See
Econamy Bill
Glass
American Acceptance Oekuncils 48
See - Mills, Ogden
American Bankers Association. 160
See - Glass
American Committee
See - Standstill agreement
Anderson, rather
We attend special service at St. Agnes church in memory of
Anna. Father Anderson officiated.
April 26, 1932. 143.
And.
Mr. and Mrs. Larz.
Mrs. Bayard said that Miss Anderson, a sister of Lars, told her that
Bishop Freeman had offered, the privilep,I, of burial in the
Cathedral; that they had given a chapel to the Cathedral.
Dec. 11, 1931. 9.
We meet, at lunch with Gertrude Myer.
Feb. 28, 1932. 84.
Gertrude Myer meets an accountant at dinner with, who wants to manage
her property.
April 21, 1932. 136.
We dine with.
We met British AMbassador there.
May 3, 1932. 151.
Anderson, Miss. 9
See supra - Anderson, Mr. & Mrs.Lars
Annual leave
See- Kconamy bill
Glass
Hamlin, C. S.
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Federal Reserve Bank of St. Louis
4.
Anglo-California Trust Co.
Board voted unanimously to approve a Federal Reserve Bank of
San Francisco discount under Sec. 10 B. Glass emergency bill.
The bank had exhausted its eligible paper.
.but no control - with the AngloThe bank was closely affiliated
London and Paris National Bank with a capital of over 5 million
and therefore ineligible under Sec. 10-B.
The Trust Company was in fairly good condition but e:Tected to be
called on to help the national bank. At first blush it lodked as
if the Trust Company, eligible under Sec. 10-B, was getting
assistance merely to help the National bank whose capital
precluded it fran any assistance except frau a group.
The Comptroler said there was a very critical anergency in California,
and on this C.S.H. justified his vote.
Miller thought the national bank dhould apply to the Reconstruction
Finance Corooration, but it was pointed out that if it did this
or formed a group, it would advertise its condition and that this
might imperil the Whole banking situation in California.
C.S.H. can see no reamn why a bank eligible under Sec. 10-B Should
not be permitted to borrow to meet an emergency even though
it may use some of the proceeds to help a 5 million dollar bank.
Miller said he spent 3 hours with Gov. Calkins yesterday; that the
matter was very urgent, and should be approved by Board.
C.S.H. suggested postponement until Monday in order more fully to
look into the facts, but Miller said No, it should be put through
today, and C.S.H. voted to approve.
The reason given by the Federal Reserve Bank of San Francisco was:
"To meet demands arising out of a situation confronting
a closely associated bank which has 19 affiliated banking
inStitutions.
"Further details relative to this application have been
presented to the Board previously by Gov. Calkins."
C.S.H. felt the 19 affiliated banks mde the situation clearly an
emergency one.
Gov. Meyer showed some temper in discussing the application.
5.
Ang104alifornia Trust Co. (Contl d.)
4
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Federal Reserve Bank of St. Louis
He said his judgment ap-?roved it, im)lying that this should
control the Board.
'iner later mentioned to C.S.H. Gov. Meyer's rouel-qmkmanner.
April 15, 1932. 129-130, 131, 132
Annual leave
See - C.S.R.
Antique furniture 29, 34.
See - Valentine & Co.
Appeal of the 31. Association of Nations.
Dr. Butler said President Harding deceived those who sirned.
Dec. 14, 1931.16.
Association of Nations
Dr. Butler said he wrote that part of President Hardingss Iowa
speech relating to; that he begged Harding not to reject
the League of Nations, or at least the Association of Nations;
that Harding told him that Sec. Huthes advised just the
op site.
Dec. 14,1931. 16.
Atlantic 1Tationa1 Bank, Boston
Chief Examiner Drinnen reported that the subsidiary of, was
hopelessly insolvent, that its capital, surplus, anduadivided
profits were wiped out.
C.S.H. agreed that Board could do nothing until the Comptroller
fini shed. his examination of the parent tank.
Dec. 10, 1931. 7.
Board took up question of charging, with expense of examining its
subsidiary
.$500.
C..H. had declined to check a letter ordering this.
C.S.H. said the only reason for examining the subsidiary was
to help the Comptroller to find out the condition of the
subsidiary; that it would be an abuse of Board's power of
examination; that, so far as the Board was concerned the
examination would not helpit, as the Board had already
ordered the parent bank to dispossess itself of the
subsidiary, and the only question open was Whether it had
in point of law done this; that the parent banks records
purported to show it had dispossessed itself, which, however,
the Board denied.
The Board, however, all voted, except C.S.H., to impose the Charge.
Feb. 15, 1932. 76.
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Federal Reserve Bank of St. Louis
6.
Austria. Hungary.
Dr. Butler and Mr. ShDtwell both J3.id, and Hungary were hopelessly
insolvent; that while the political boundaries under
the Versailles Treaty could not be changed for many years,
economic agreements could be entered into which might
satisfy both Austria and Hungary.
Dec. 14, 1931. 13, 14.
See — National Bank of Austria.
r,
Austro-German tariff agreement
Dr. Butler said that when the Austrian Finance Minister negotiated
the, with Dr. Curtius, of Germany, he stipulated that it
should not be made public until he could explain it to
France and Italy, but that Germany deliberately gave it
out prematurely and that this enraged France; that if it
had been explained to France, she would have accepted it.
Dec. 14, 1931. 14, 15.
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ihk
7.
Gov. Harrison said that Burgess in his address at B.I.S. dispelled
the fear of the American dollar engendered by Dr. Willis.
Dec. 2, 1931. 1 B.
Norman Davis said the Bank of Hungary carried on its books as
assets gold pledged with the B.I.S., which the M.S. should
not have taken.
Dec. 14, 1931. 13.
Baker, Newton D.
Rowland Morris toll C.S.H. that his choice for the Presidential
nomination was Baker, Ritchie and Roosevelt in above order.
Dec. 14, 1931. 16.
Gov. Harrison suggested retaining, to appear before the Senate
Committee with regard to the Glass banking bill in behalf of
the Federal Reserve System.
C.S.H. said he believed that Glass favored Baker's nominItion for
President, and that itwould infuriate Glass to have one of his
closest friends appear as a lobbyist against his bill; that
he believed Baker in any event would be inclined to seek
reasons for supporting rather than opposing the Glass bill.
Board took no action.
Miller said this shows that Gay. Harrison and Federal Reserve Bank
of New York are desperate with their backs to the wall.
Alex. 23, 1932. 104.
C.S.H. expressed regrets to Mrs. Wilson that, in his Wilson address
at the Cathedral failed to mention the L. Of N.
She thought he had.
June 2, 1932. 186
Ballanttne, A.A.
Appointed Under Secretary of Treasury.
Feb. 4, 1932. 54.
Recommended a Boston an as Assistant Counsel of Federal Reserve
Board.
April 14, 1932. 127.
Bank failures
Gov. Harrison said if railroad rate and wage question were not
speedily settled, the decline in value of bonds would continue
and many more banim would become insolvent; that December,
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8.
Bank failures (Contld.)
January and February were the months of greatest bank insolvencies;
that increase in failed banks might start up a renewal of
foreign demand for our gold and start up hoarding again at
Dec. 2, 1931. 1-A
home.
Bank of America
See.Transamerica Corporation
Bank of France
The Assistant of Gov. Moret told a member of our Bmbassy
as to an agreement between Federal Reserve Bank of New York and,
as to withdrawal of deposits.
Mark Sullivan claimed that Bank of France, as result of the HooverLaval Conference, agreed not to withdraw its deposits in Federal
resrve bank except upon definite notice.
Gov. Harrison told Board above was absolutely false; that he had told
the Bank of France it could withdraw its deposits at any time
and that in the future it could not increase its deposits
through the running off of acceptances, but mnat earmark or
export the proceeds.
Later Gov. Harrison locked at clipping.from Mark Sullivan's public
letter, and said he was absolutely in error and that he would
so tell him.
Sullivan's letter was to effect practically that Hoover-Laval
agreement had turned these deposits from demand to time deposits.
Dec. 2, 1901. lua, 2.
Gov. Meyer reads Board a long cablegram from Gov. Harrison to
Gov. Moret explaining the Systam's discount and open market
policy, and the Reconstruction Finance Act, pointing out that
it was not inflationary but merely an attempt to stop the
radical deflation and restore normal conditio%s.
Jan. 19, 1932. 43.
Gov. Meyer said he had been considering for a long time the
advisability of requesting the Bank of Prance to withdraw all
its deposits, and of notifyinf, it that its account with the
Federal Reserve Bank of Yew York was closed; that we could get
50 or more banks to agree to discount and fill up the gap
resulting from the gold exports; that he favored telling
France that as it would take a long time to ship to her all her
gold balances, the U.S. would expedite shipments by sending
part in vessels of the U.S.
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Federal Reserve Bank of St. Louis
9.
Bank of France (Contld.)
C.S.H. doubted our ability to do this unless the Federal Reserve
Act were amended to permit issue of Federal reserve notes
against Government bonds.
Gov. Meyer denied this, but said it would of course be better to
have the Act amended..
C.z).H. said he sympathized with the feeling that the Bank of France
had too much to do ':ith our money market through its
deposits and investments here, but that he felt we must
have some economic or banking reasons for taking such a
position, which might be construed as an attack on France
and the Bank of France.
Gov. Meyer said he did not wish to seek far any such reason; that
he wanted our action to be in fact an attack, open and
understood.
Gov. Meyer said Ogden Mills throughly approved such action.
C.S.H. believes, on reflection, that this would be an act of
stupid folly, which France would not accept lying down.
He does not believe the member banks would want to engage in such
a war; to send delil_erAely 600 millions of gold out of the
country, in such a critical time, would cause confusion to
the banks and business.
The private banks have some deposits in this country, and some
investments and if they and the Bank of France dumped their
holding of acceptances and Government securities, much
confusion would be certain.
In the long run this might cause an embargo on our trade.
C.S.H. believes this is purely a political move of the administratial,
through Ogden Mills and Gov. Meyer and. Harrison, to punish
France because of her attitude as to reparations, disarmament,
Allied debts and tariff.
The Federal Reserve System thould have nothing to do with such
political moves.
It is really an attempt to punish France for becomIng scared through
Dr. WillisIs false propaganda.
Jan. 19,1932. 43, 44, 45, 46.
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10.
Bank of Frame (Cont1 1.)
New York Times says Gov. Harrison is tryin,7 to secure a promise
from the Bank of France to make no further withdrawal of its
deposits here, so that the Tederal Reserve Bank of New York
can expand upon than.
The Wall Street Journal prints a cablegram to same effect.
(See scrap books)
May 7, 1932. 153.
Gov. Meyer said he knew this was not time.
May 9, 1932. 153
Gov. Meyer said Gov. Harrison had unier consideration a proposed
communication intimating that it would be agreeable to Federal
Reserve Bank of New York, if Bank of France would at once earmark
all its deposits - now less than 100 million - in P. Bank of
New York.
C.S.H. pointed out that the gold exports, especially those to France
were seriously interfering with our Open Market policy.; that from
April 6th to date out of 750 million purchases of Government
securities, about 504 went into gold exports, While discount and
acceptances were taken down only by 20$ and member bank res-rves
increased only 20%.
The Board all seemed to approve such a cable.
June 9, 1932.
196, 197, 199.
See - Moret, Gov.
Bannister, Mrs.
Is at lunch given by Polish Ambassador to Mrs. Wilson who was
there decorated.
C.S.H. and H.P.H. were not invited.
Dec. 15, 1931. 17.
BLruch, B.
C.S.H. meets, at Gov. Meyer's reception to Winston Churchill. He
said he thought Gov. Roosevelt attacked the League of Nations
in order to prevent his nomination for President.
Teb. 12, 1932. 71.
lip
Barrets of Wimpole Street
We dined with Mr. and Mrs. Magee and attended performance of.
March 9, 1932. 90.
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Federal Reserve Bank of St. Louis
11.
Bayard, Mrs.
Calls on us. Dec.11, 1932. 9
See - Anderson, Mr.and Mrs. Lars
Bells, Tolling of.
Henry Wright says Westford bells used to toll 4 times for a
male and 6 times for a female, after striking the bell to
Indicate age of deceased.
He later wrote to same effect and added that when Abiel Abbott
died,an old toll bell striker, formerly tolling in Westford
was brought from New Hampshire to toll the bells for Abiel.
Jan. 5, 1932. 37.
Bentwick, Count John
We gave a lunch at Woman's National Democratic Club to, and
Baroness De Heckeren of the Oxford group.
Present: C.S.H., H.P.H., Mr. & Mrs. Delano, Mrs. Newlands,
Mrs. Frazer, Gertrude Myer, and Miss Hegeman.
May 22, 1932. 167
Biddle, lordia
We had Christmas dinner at noon with.
Dec. 25, 1931. 32.
Death of.
Mar. 22, 1932. 106.
She was most kind to us and we had had Christmas dinner with
her for years.
Mar. 22, 1932;106.
Bigelow, Grace
H. P. H. dues with, in New York, and has a good talk with her over
Bryan Conradls marriage to her niece - Charlotte Harding.
Dec. 13, 1931. 13.
4
•
4
*
Birthday
Of H.P.H. - 59 years of age.
April 8, 1932. 119.
•
Black, Gov.
At Open Market conference, favored, conferences between
P.R. banks, member banks, and crlishinc industfialists.
Magee told C.S.H. he gave this idea to Gov. Black:.
May 17, 1932. 162.
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Federal Reserve Bank of St. Louis
12.
Blair, Emily Newall
Tells H.P.H. that when Reconstruction Finance Corporation rwmbers
were appointed, Gov. Meyer was very angry at Dawes being
appointed President and threatened to resign from the
corpo:.ation and from the P.R. Board.
March 1, 1932. 84.
Bliss, Mrs.
We attend reception at house of, after wedding of Lawrence Coolidge
and Miss Tytue.
January 16, 1932. 42.
Bond pool
Gov. Harrison said that When the Railroad wage question was settled,
the N.Y. banks were ready to organize a, of 500 millions,
which would turn the tide.
Dec. 2, 1931. 1.4
Gov. Harrison said the, had bought enough in January to keep prices
stable; that if proposed amendments were enacted into laas
the, would undoubtedly buy enough to put up prices — perhaps
even up to Par.
Jan. 11, 1932. 41 (1)
Bond secured member bank collateral notes.
Glass was very bitter over above suggestion, saying they would
eventually be same as greenback currency, and that if we
must have a bond secured currency it would be better to have
the national banks issue it.
Jan. 28, 1932. 49.
Boston & Maine R.R.
Henry Wright said the, had proposed the Stony Brook R.R. except
for freight.
Jan. 6, 1932. 37.
Bowditch, Edward
Bessie Stevens sends C.S.H. a sketch of, wYam C.S.H. is trying
to secure an appointnent for under Reconstruction Finzince
Corporation through Floyd Harrison.
March 7, 1932. 88.
Boxer uprising. 35.
See.Hoover
Daniels
Morris, Rowland
13.
Branch banks. Glass bill
Senate Committee reported in favor of, even in states not allowing
branches of state banks.
April 16, 1932. 132.
See - Glass
Wing°
Bristol, Admiral. 91
See - Graef, Olyve
British Ambassador, Sir Ronald Lindsay
We meet, at dinner at Larz Anderson's.
May 3, 1932. 151
British credits. 8
See - Dulles, John Foster
Brockelbank, Rev.
We attend wedding of daughter of Charles McLane to, at Baltimore.
March 29, 1932. 110.
Bullock, Prof.
Lichtenstein defended his stL:tement that Federal Reserve Board
did not reverse its easy money policy in 1928 because of
the Presidential election, by, among other facts, quoting
Prof. Bullock as to undue purchase of acceptances by Federal
Reserve Bank of New Yolic in Pall of 1928.
May 23, 1932. 171.
e
Burgess, W. R. Depy. Governor, Federal Reserve Bank, New York.
Gov. Meyer told Board in a very casual way that the Senate Glass
Sub.,gommittee had asked Goldenweiser and Burgess, to sit with
the Sub-Committee in connection with the Glass bill.
•
Gov. Meyer did not mention the conference at his house yesterday
at which Burgess, Goldenweiser and Wyatt wa.e present.
Wyatt told C.S.H. that while in Ogden Millis office he heard Mills
call up Gov. Harrison and direct him to send Burgess down to
Washington.
Feb. 1, 1932. 52.
Goldenweiser lends C.S.H. for overnight a colr of his and Burgess'
report on Glass bill.
It wiped out many of the contraction features of the Glass bill.
It advised striking out Secs. 3 and 9 as to power to control
.it
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14.
Burgess, W. R. (Coned.)
speculative loans and suspension of member banks for abuse
of Federal reserve facilities.
It favored Lodbard loans in times of emergency.
Feb. 8, 1932. 58.
C.S.H. met Buizess at lunch at Cosmos Club.
He said Glass went over their report in a ver7 reasonable frame of
mind, accepting some suggestions and reserving others for
consiaeration.
C.$.H. said there must be a recorded vote as to Sec. 3 - right to
penalize a member bank for abuse of Federal reserve facilities.
Burc;ess said it was possible that some such power might be agreed
upon.
Feb. 9, 1932. 58.
Glass tells Miller that he understood that Burgess and Goldenweiser
were authorized by the Federal Reserve Board to present its
views to the Sub Committee.
Feb. 10, 1932. 60.
C.S.H. writes Glass that Burgess and Goldenweiser had no authority
from the Board to express its viers on the Glass bill or any
other than their own personal view; that neither he nor, as
he believed, any other Member of the Board even knew what
B and GIs views were until their report was filed with the
Committee.
C.S.H. at first added a clause that while many of their views were
helpful, he was emphatically opposed to some of their views,
especially their recommendation to strike out Sec. 3.
C.S.H. called in Morrill who said that at the White House conference
an agreement 11d been reached as to an emergency bill and
that Sec. 3 had been put in the general bill for later
consideration.
C.S.H • then omitted this sentence and sent the letter to Glass.
Feb. 10, 1932. 61.
The N. Y. Times said that after the White House conferences there was
a conference at which Glass, Gov. Meyer, Morrill, Goldenweiser
and BurFess were present.
3.S.H. had never beta told of this.
Later Wyatt said it was held in Board room and that Sen. Wolcott
also Tets present.
Feb. 11, 1932. 65.
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Federal Reserve Bank of St. Louis
lb.
Burgess, W. R. (Contld.)
Glass tells C.S.H. that his Sub Committee never invited Burgess
and Goldenweiser to assist it; that, on the Contrary, Hoover
told them at the White House conference that they were appointed
to represent the Federal Reserve Board; that the administration
would stand behind and press for any Federal Reserve Act
amendments agreed upon by Glass, Democrat, Wolcott, Republican,
and Burgess and Goldenweiser representing the Federal Reserve
Board.
Feb. 13, 1932. 73.
Gov. Meyer said that excepting Rounds there was not a single officer
in Federal Reserve Bank of New York who was fairly efficient
and experienced tn banking.
He mentioned specifically Gov. Harrison, Federal Reserve Agent Case,
and Burgess.
Mar. 3, 1932. 85, 86.
Sen. Wolcott went over the draft, prepared by Willis, of agreement
between Glass and himself as to Glass bill with Burgess,
Goldenweiser and Wyatt.
They were satisfied that Willis's draft did not represent the draft
agreed upon.
Mar. 14, 1932. 92.
Glass spoke to C.S.H. as to Gov. Meyer's letter requesting hearings
on the Glass bill, and said he saw no necessity for this because
the Board had already made its views known to the Committee
through Burgess and Goldsnweiser.
O.S.H. said they did not represent the Board's views in any
capacity.
Glass replied that Hoover told him that B. and G. had been chosen
to represent the Treasury and the Federal Reserve Board before
the Sub Committee.
Mar. 21, 1902. 99 (2)
Gov. Meyer reads to Board a letter from Glass, dated Mar. 21, 1932,
stating that Burgess and Goldenweiser were not called into
consultation by the Sub Committee; that they wwe delegated by
Hoover to represent the Treasury and the Board; that the Sub..
Committee assumed they were authoritatively assigned by the
Treasury and Board; that during their work, B. & G. were in
consultation with Gov. Meyer, Ogden Mills, and Gov. Harrison;
that the Sub-Committee only learned then they filed their report
that they were assuming to speak only for themselves.
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Federal Reserve Bank of St. Louis
16.
I
Burgess, W. R. (Contld.)
Glass said that the written report of the Board will be received
by the SUb..Committee and that further public hearings would
be held.
Glass said he presonally telephoned Gov. Meyer and offered to give
the Board a public hearing, that he also notified Gov. Harrison
to same effect, but that both declined.
(See Sc. bks. Vol. 225)
Mar. 22, 1932. 100
Gov. Meyer said he told Glass the Board would express no opinion as to
public hearings generally, but would like to be heard on the bill
by the Sub-Cammittee; that he never saw the B. & Gereport until
after it was filed with the Sub4amuittee; that on Feb. 7 he
wrote Glass that Burgess and Goldenweiser, - as stated explicitly
in their report, - did not represent the Board.
Mar. 22, 1932. 101.
Ogden Mills said Sen. Wolcott desired expert help, and that he,
Mills, arranged to have Burgess come here from New York and to
have Goldenweiser help him.
Mills said the President could not have said that he had d signated
B & G to act for the Board.
Mar. 22, 1932. 101.
Evidently When Gov. Meyer told the Board an Feb. 1 that the SubCommittee had asked. B & G to sit with the Committee (See supra p.
52), it really was Sen. Wolcott Who made the request.
Mar. 22, 1932. 101.
Gov. Meyer read to Board a proposed answer to Glass letter of
March 21 (Supra p. 100) in which Glass stated that the services
of Burgess and Goldenweiser were not asked for by the Sub.
Comittee, but that they were designated by Hoover to represent
the Treasury and the Board.
In the proposed letter Gov. Meyer said that it was his understanciing
that Sen. Wolcott had said that he and Senator Glass desired
the assistance of Burgess and Goldenweiser.
C..H. asked Gov. Meyer on what his understanding was based.
Gov. Meyer said it was based on What Ogden Mills told the Board the
other day.
440
James said Ogden Mills told the Board that Sen.
Wolcott said he and
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Federal Reserve Bank of St. Louis
Burgess, W. R. (Contld.)
Sen. Glass wanted the assistance of Burgess and Goldenweiser.
(C.S.H. notes were to effect that Ogden Mills stated
that Sen. Wolcott wanted expert help, and Mills did
not mention Glass's name (See supra p. 101)
Mar. 25,1932. 106, 107.
C.S.H. asked Ogden Mills just What Sen. Wolcott said to him
about his need for expert advice.
Mills said Sen. Wolcott said it would be agreeable to himself
and Sen. Glass to have the assistance of Burgess and Goldenweiser.
Mar.26, 1932. 107
Burgess in an address in late fall of 1928 — December... said that
the Federal Reserve Bank of New York in fall of 1928 had
bought at least 100 millions of acceptances more than credit
conditions necessitated. 145
(See C.S.H. long article on direct pressure.)
Business depression
Gov. Harrison said that if the Railroad rate and wage question were
settled, the New York banks would form a bond pool to buy 500
millions and the tide of, would turn.
Dec. 2, 1931. 1.-A
Go
Meyer said that hoarding was gradually subsiding, that bank
failures had greatly diminished, and that he was satisfied
that the tide of depression had turned; that if the damned
hoarders will cease hoarding and the damned banks begin
loaning, all will be well.
Mar. 3, 1932. 85.
Gov. Meyer said he still thinks the tide has turned, but tqat
business would not iaorove before next fall.
Mar. 18, 1932. 95
Butler, Col. Smedley
See — Daniels, Josephus
Hoover
Morris, Rowland
Butler, Nicholas Murray
C.S.H. dines with, in New York.
Dec. 13, 1931. 13.
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Federal Reserve Bank of St. Louis
18e
r
Butler, Nicholas Murray (Contli.)
Dr. Butler said at Carnegie meeting that When the Austrian Finance
Minister arranged the Austroi•German tariff Ezreement with
Dr. Curtius, he stipulated Cht it should not be made public
until he could explain it to France and Italy, but that Genuany
deliberately gave it out prematurely; which enraged France; that
he was confident that if it had been explained to France, She
would have accepted it.
Dec. 14, 1931.14.
Dr. Butler said amen had came to him Who owned a tract of land in
Washington Which he wished to give to Columbia University and
to endow it as a perpetual memorial to Woodrow Wilson, at which
all his papers should be deposited.
Dr. Butler said he advised him to present it to the Wilson
Foundation, and that Norman Davis was trying to bring this about.
Dec. 14, 1931. 15.
Dr. Butler, Norman Davis, and Rowland Morris all said there was
quite a dispute or difference between Gov. Smith and Gov.
Roosevelt and that Gov. Smith preferred Baker or Ritchie to
be nominated, rather than Gov. Roosevelt.
Dec. 14, 1931. 15, 16.
Dr. Butler said he wrote that part of President Harding's first
speech on Foreign Affairs, delivered In Iowa, relating to
an Association of Nations, and that he begged him not to
reject the League of Nations, or at least to came out for an
Association of Nations; that Harding told him that Huzhes
had given him advice just to the contrary.
Dr. Butler sZ
.
Harding had deceived those who signed the "Appeal
Dec. 14, 1931. 16.
C.S.H. dines with in N. Y.
May 4, 1932. 151
See — Walter, John
lyrd, Mrs. (Bowlitdh)
We meet, at dinner at Dr. Richmond's.
Mar. 4, 1932. 87.
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Federal Reserve Bank of St. Louis
19.
Callcins, Gov. 131, 163
See — Anglo—.American Trust Co.
Transamerica Corporation
Committees, Pederal Reserve District
Cameron, Julian 37
See.Wright, Henry
li
Cameron, Senator
C.S.H. writes Rachel Hale that her Grandfather acted with the
Democrats after his election to U.S. Senatei in 1845.
Jan. 30, 1932. 31.
Carey, Sen. and Mrs. Sarah
We dine with.
Sarah and Sen. Wolcott were present.
Dec. 17, 1931. 23, 24
Sarah Carey 7-ives C.S.H. her photograph with inscriJtion, "To
Mr. Hamlin, lima his best girl, Sarah Darlington Carey"
Dec. 23, 1931. 31.
Sarah Carey told C.6.H. it was generally understood that if a
Danocratic President is elected, C.S.H. will be the next
Secretary of the Treasury.
Dec. 23, 1931. 31.
We dine alone with Sen. Carey. Miss Carey and Sarah weie ill.
After dinner we :;11 went into Mrs. Carey's bedroom and talked
with her.
We have Sen. and Mrs. Carey at dinner at Woman's National Dem. Club,
also Sen. Wolcott, Mrs. Cong. Kahn and Josephine Patten.
Jan. 22, 1932. 47.
Carnegie, AnLrew
Was a delegate to first Pan American Conference and worked for
resolution forbidding recognition of territory seized ly
force.
May 5, 1932. 152.
See — Castle, Under Secretary
Carne,
zie Endowment
C.S.H. at meeting of, New York.
Dec. 14, 1931. 13
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Federal Reserve Bank of St. Louis
20.
Carme:ie Emiowment (Contld.)
See — Davis, Norman
Butler, Dr.
Shotwell,
Houghton, A. B.
Morris, Rowland
C.S.H. at meeting In New York.
May 5, 1932. 152.
See — Castle
Carnegie, Andrew
Carroll, Judge James B.
Death of.
One of C.S.H.Is oldest friends.
Justice of Mass. Suprane Judicial Court.
Jan. 9, 1932. 40
Case, Federal Reserve Agent, P.R. Bank, N. Y.
Gov. Meyer said he had an understanding with Owen D. Young and
the son of, that he will resign on May 1, unless fully
restored to he.A.th.
Dec. 23, 1931. 30.
Gov. Meyer speaks of, as hawing 1i.tie experience in practical
banking.
Mar.3, 1932. 85.
Castle, Under Secretary of State
Proclaims a new "Hoover docttineN, — non,-recognition of
territory seized by force.
Ridiculed at Carnegie meeting.
First announced by Grover Cleveland in his Hawaiian message.
Scott pointed out that it was recognized at the first Pan American
Conference, later by Institute of International law, and
finally, in 1926, sent by Pan American Conference to all
members; that Andrew Carnegie was a delegate to first Pan
American Conference, and worked and voted for it.
The Trastees all felt that Castle was densely ignorant or
deliberately deceptive, in attributing this doctrine to
Hoover.
May 5, 1932. 152.
4
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Federal Reserve Bank of St. Louis
Caucus
Daic;er told C.S.H. that the H.R. and Senate Democrats had
voted in caucus to sunpor the Glass banking bill.
April 5, 1932. 114.
Central bank 19
See.Glass
McAdoo
Chase National Bank, New York
Gov. Meyer suggested postponing the examination of the Chase Bankin Paris, an Edge Corporation owned by, until the examiners
now examining the Eastern branches of the, got around to
Paris, as conditions in Paris were still somewhat
disturbed as regards the U.S., and an examination now might
start trouble.
All the Board agreed.
Dec. 10, 1931. 6.
Platt told C.S.H. that rumors were afloat as to the solvency of
the Chase National Bank.
Dec. 10, 1931. 6.
Chase, Howland. Mr. and Mrs. (Hale)
Mrs. Rodgers said Mary had gone to New York with her Mother for
Christmas.
Dec. 27, 1931.32.
Mary Chase is visiting her Mother. She told K.P.H. she would
remain as long ax Howland would let her.
Feb. 20, 1932. 78.
Gertrude Myer told H.P.H. that Howland Chase had gone to Italy
with Mrs. Rodgers, in connection with the elopement of
her sonls daughter,fornerly Miss Moyer.
April 6, 1932. 117.
Wyatt tells C.S.H. that Howland Chase had applied for a position
as Assistant Counsel of the P.R. Board, and showed C.S.H.
a strong letter of recommendation for Mr. Agnew of N. Y.
formerly Counsel of Federal Reserve Bank, San Francisco.
Wyatt said he had had a conference with Chase this morning and
had taken him in to Floyd Harrison; that Harrison thought
he rather lacked farce and directness; that he did not give
a very clear statement as to his legal work with the firm
in Ne7; York and Washington, of which Carl de Gersdorff
was a member, also Paul Cravath.
Wyatt said he would maim inquiries as to mhether his work with
the firm had been strictly legal or largely ministerial.
April 14,1932. 125, 126.
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Federal Reserve Bank of St. Louis
22.
Chase, Howland, Mr. and Mrs. (Contld.)
Wyatt asked C.S.H. if he knew Chase.
0.3.H. said he knew him very well and praised him highly.
C.S.H. said he knew Chase's father and Mother, and Chase himself
for many years; thtt he knew his wife and her Mother, Mrs. Hale,
intimately, but that neither they nor any one else had ever
spoken to him or mmmunicated with him, directly or indirectly
as to this matter; that Wyatt's statement was the first he had
heard of the matter.
C.S.H. said it showed the Character of Chase, in not asking his
assistance. Wyatt said he wOuld ask the representative of
his firm in Washington as toZhasels legal capacity and the
kind of work he had been doing for the firm.
April 14, 1932. 126.
C.S.H. told Wyatt that he must satisfy himself absolutely as to
Chase's fitness and le a1 capacity; that he would accept his
judgment in the matter even though it differed from his own;
that he had a high opinion of Chase's legal ability based on
many talks with him, but the responsibility for determination
rested absolutely with him, - Wyatt.
C.S.H. said, however, that if Wyatt finally decided to recommend
Chase it would please him very much.
C.S.H. told Wyatt he had heard that Chase had had a fine record in
the Harvard Law School, and Wyatt said he had heard this also.
April 14, 1932. 127.
Wyatt said Under Secretary of Treasury Ballantine had also
recommended a man for the place, - by the name of Montgomery,
C.S.H. thinks. There were also other applications.
April 14, 1932. 127.
C.S.H. tdld Wyatt that Mrs. Chase was the niece of Sen. Hale of
Maine.
April 14, 1932. 127.
Rachel Hale calls up C.S.H. at his office.
She spoke of Chase's application and seemed much interested.
'3.S.H: told her the chief criticism he had heard was that Chase
did not seem very forceful and perhaps was too diffident and
retiring
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Federal Reserve Bank of St. Louis
23.
Chase, Howland, Mr. and Mrs. (Contld.)
C.S.H. said he told Wyatt that if quietude and diffidence was to
be the test even Newton D. Baker - one af the leaders of
the American bar - could not qualify for this position&
C.6.H. said the matter was entirely in Wyatt's hands but that he had
told him that if he finally recommended Chase,it would
please him very much.
Rachel said Chase was still in the N.Y. office and that they had
told him that if he Obtained this positi2n and at any time
cared to came back, they would be very glad to have him.
C.S.H. said the matter would not be settled for several days but
that he would see her soon.
April 16, 1932. 128
Wyatt told C.S.H. he had had a talk with the Washington representative
of the firm who said Chase wag an A-1 man, in wham his firm
had confidence and in Wham they had imposed much responsibility.
Wyatt said the firm representative agreed that Chase was not very
assertive, but that he was sure Wyatt would be pleased with
him; that he had not left their office and that if at any
time he cared to return to it after accepting this position
they would be glad at any time to take him back.
April 16, 1932. 129.
C.S.H. feels that all depends on whether Wyatt can satisfy Gov. Meyer.
C.S•Ho believes Wyatt will recolimend Chase and it would be certainly
most extraordinary if Gov. Meyer wo-.11d not accept the judgment
of Wyatt and of C.S.H. of the Law Committee of the Board.
April 16, 1932. 129.
C.S.H. calls up Rachel Hale to stig he was sending her a copy of
questions and answers on Federal Reserve System, by P.R. Bank
of Richmond; that she might suggest to Chase to read it so as
to get a fair idea of the scope of the P.R. System.
Rachel was very grateful.
C.S.H. said there was nothing new and that the matter would not be
decided by Wyatt probably for sPveral days yet.
April 17, 1932. 132
.
0.3.H. writes Carl De Gersdorff asking his oninion of Chase'L ability.
April 18, 1932. 133.
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Federal Reserve Bank of St. Louis
24.
Chase, Mr. and Mrs. Howland (Contld.)
De Gersdorff wires C.S.H. giving a fine statement cf Chase's
April 19, 1932. 133.
ability.
De Gersdorff writes C.S.H. giving a strong recommen.Ation for Chase.
April 20, 1932, 133.
Justice Van Devanter writes Wyatt a very strong indorsement of Chase,
who was once his private secretary.
April 20, 1932. 133.
Wyatt tells C.S.H. he has decided to recommend Chase; that he
has talked over the matter with Floyd Harrison and Morrill and
that they both agreed.
Wyatt said he would out his recommenizion in writing and submit it to
C.S.H. and Miller as members of the Law Committee.
April 20, 1932. 134.
C.S.H. called up Rachel Hale and said there was nothing new but
that he was hopeful, but she would understand that nothing
wata. certain in this world, especially considering that there
were several men who, Wyatt said, were available.
Rachel said She understood perfectly.
C.S.H. did pat tell her that Wyatt had said he would recommend Chase.
April 20, 1932. 134.
C.S.H. tells Miller as to Chase spmicing of the very fine indorsements
of Justice Van Del,anter and others.
Miller said Justice Van Devanters indorsement meant a great deal to
him.
.
4.. ,
1- 't
Miller asked if the a2gnoint1ent was to fill a vacancy.
•
C.S.H. said No, that Wyatt needed another assitant, — that Gov. Meyer
Wyatt, Morrill, Floyd Harrison and C.S.H. agreed as to thls.
•
C.S.H. asked ialler if any one had spoken to him about Chase. He said
No.
0..H. said no one had spoken to him, that he first lparned it from
Wyatt; that it spoke well :or Chase's character to keep away from
us who kner his wife's family so well.
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Federal Reserve Bank of St. Louis
24
Chase, Howland, Mr. and Yrs. (Contld.)
oointment, and C.S.H.
Miller was perfectly agreeable to Chase's
hopes he will back it un at the Board meeting.
April 21, 1932. 134, 15.
Wyatt said Gov. Meyer had not yet seen Chase, although Harrison
and Morrill had; that before formally presenting his name he
would ask Gov. Meyer if he oared to see him.
Wyatt said Floyd Harrison tried to get Gov. Meyer in New York to get
his consent to Chase's appointment but he was at the Directors
meeting and could not be reached.
April 21, 1932. 135.
Wyatt told C.S.H. that he had seen Gov. Meyer who asked if all agreed
on Chase and that he said Yes; that Gov. Meyer said to go
ahead and appoint him but later said that Prof. Felix Frankfurter
of the Harvard Law Sdhool was to see him tomorrow, and he would
like to ask him as to Chasele record.
April 22, 1932. 140.
C.S.H. feels that if the Board had been as cautious in ascertaining
as to Floyd Harrison's fitness as Assistant to Gov. Meyer, as
Gov. Meyer is as to Chase, that Harrison would still be awaiting
his ap-Jointmentl
April 22, 1932. 140.
Wyatt told C.S.H. be had gone over the whole matter with Miller, who
said he approved but would look up his recommendation.
April 22, 1932. 140, 141.
Wyatt said Felix Frenkfurter had wired Gov. Meyor that while he did
not remebber Chase, he had looked up his record in the Harvard
Law School and that it was one of very ordinary medio crety.
Wyatt said, however, that he would stand by his recommendation in
view of the many fine indorsements of Chase, especially Justice
Van Devanter.
C.S.H. said he would back up Wyatt but that he feared that Felix
Frankfurter's telegram might unfavorably affect Gov. Meyer, and
that he should wire Dean Pound and ask his oipinion of Chase, which
C.S.H. did.
Dean Pound wired back that he remembered Chase, liked him, that his
rank was above the average, and he believed he would be a good
man forthe position.
(See scrap took)
akril 26, 1932. 142, 143.
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Federal Reserve Bank of St. Louis
26.
Chase, Howland, Mr. & Mrs. (Cont'd.)
Wyatt later told C.S.H. he had obtained the O.K. S every
member except Ogden Mills; that Floyd Harrison brought his
recommendation to Gov. Meyer who at once checked it.
April 26, 1932. 143.
•
Wyatt later told C.S.H. that Harrison had just told him not to
notify Chase until he had had a talk with him.
•
4
— .
•
Later Wyatt said he had talked with Harrison who said Felix
Frankfurter had telephoned him fram Cambridge that he had
gone over Chase's record and that he could not find a
single mark above mediocrity.
Wyatt said he then showed Harrison Dean Pound's telegram; that
Harrison took it in to Gov. Meyer, who finally said that
Chase could be notified.
April 26, 1932. 144.
We loth felt that in all probability Frankfurter had some one
in mind for the office.
Gov. Meyer also had intimated to Wyatt that he could find him a
good man.
April 6, 1932. 144
Wyatt called up Chase and told him. He was delighted. C.S.H. then
called WO Rachel Hale but she was in Virginia on a garden tour.
Mary came to telephone and was delighted at the new and most grateful
to C.S.H.
April 26, 1932. 144, 145.
At 4 p.m. Chase and Wyatt called on C.S.H. Chase said he had
wired Rachel of his appAntment.
April 26, 1932. 145.
C.S.H. receives a very grateful letter fram Rachel Hale dated
Friday, April 29.
April 29, 193.2. 151.
C.S.H. told Gertrude Myer who called and spoke of Chase's
appointment, that it was absolutely on its merits.
May 2, 1932. 151.
C.S.HI invited Chase to lunch but he had gone. Later in afternoon
he had a good talk with him.
May 6, 1932. 152.
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Federal Reserve Bank of St. Louis
27.
Chase, Howland, Mr. and Mrs. (ContId.)
C.B.H. called on Rachel Hale. Howland and Mary were there.
so C.S.H. had no chance to say much about the app(Antment.
May 7,c1932. 153.
Gertrude Myer said to us at dinner that Rachel Hale would
probably feel that Howland Chase's appointment was a favor to
the Board rather than one from the Board to him.
May 11, 1932. 159, 100.
We called on Rachel and C.S.H. told her in confidence the whole
story of Howland Chase's appointment.
She was very, very grateful tovC.S.H.
May 19,1932. 164.
H.P.H. called with Mary Chase on the wives of the Federal Reserve
Board members.
JUMB 1, 1932. 187.
Chicago District Ca=littee. 177
See — Committee, District
Chicago financial reporter. 171
See — Lichtenstein
Chief Federal reserve bank examiner
Gov. Meyer announced his selection of Leo H. Paulger as.
He said he had. made a great record on the War Finance Corporation.
Gov. Meyer had spoken before of a man he had in mind but never
mentioned his name to C.S.H.
Jan. 7, 193. 38.
•
Christening
We attemi,of Marjorie Wright'g dauchter at Gen. Wright's house
in Georgetown. H.P.H gave the babt one of Anna's
rattles and acted as Godmother.
March 19, 1932. 97.
Christmas dinner
We have noon, with Lydia Biddle, and in evening with Mr. & Mrs.
George McClellan.
Dec. 25, 1931. 32.
Chronology
See.Wilson Chronology
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Federal Reserve Bank of St. Louis
"Chubby
See — Hale, Rachel
Churchill, Winston
Gov. Meyer gives late eveninz reception to..C.S.H. attends.
Feb. 12, 1932. 70.
Clayton Anti—Trust Act
Wyatt agrees with C.S.H. that Sec. 8 of, recognizes security
affiliates as between banks and trust comanies.
May 11, 1932. 158.
Clephane
136, to 140, 141, 142, 150, 159
See-. Myer, Gertrude
Cleveland, Grover
First to announce doctrine of non—recognition of territory
acquired by force, in his Hawaiian
age.
May 5, 1932.
See — Castle
Hoover
Coker, Federal Reserve Bank, Richmond
The Governors were unanimous against reducing Federal reserve
salaries as advocated by, in a letter to Board and Governors.
Dec. 2, 1931. 3
Collateral
See — Federal reserve notes
Comercial paper
C.S.H. favors amendment allowing Federal reserve banks to buy,
from member banks without their indorsement in times of
amergency.
Governors Conference.
April 12, 1932. 123
See
Member bank collateral notes.
Committees, Federal reserve district
Miller,at Governors Conference, said purchase of Govt. securities
alone would not ease the situation.
He favored a conference at Washington between the Board and Federal
reserve banks and leading Industrialists at which a plan
for cooperation between banks and borrowers could be
prepared.
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Federal Reserve Bank of St. Louis
29
Committees, Federal reserve district (ContId.)
Gov. Black favored this, but Gov. Calkins said such a confe
rence
if held in his district would cause uneasiness.
Miller suggestion was a ccnference at Washington and
not in each
District, at least in the first instance.
C.S.H. favored Miller's suggestion and said that,
in addition
each Federal reserve bank should make a survey of
its
District; that he believed that there was much constructi
on
work which not only could be but ought to be done;
that while
this might not create eligible paper, the Federal resor
ve banks
could take care of it in an emergency under Sectton
10 B of
Glass-Ste all bill.
Gov. Meyer said in Westchester County there was a need
and demand
for $10,000 houses which could speedily be sold; that
In this
crisis we should not think only in terms of eligible
paper.
Magee congratulated C.S.H. on his suggestion.
Gov. Harrison said he had tried to bring about coope
ration
between banks and borrowers, but nothing could be accom
plished
because of unc'rtainty as to what Congress - still
in sessionwould do.
Miller said Congress acted as it did because it could
see no policy
being adopted by the Fit. Board.
The Board members intended to take up the question
of such a
conference at once.
May 17, 1932. Tuesday. .
162, 163, 164.
New York Times states that Gov. Harrison has appointed
a N.Y.
District Co ,littee, headed by Owen D. Young to make a surve
y
in the District and bring about cooperation between
banks
and borrowers.
At the Governors Conference last Tuesday Gov. Harri
son gave many
reasons wily Miller and O.S.H. plan could not be carri
ed out,
at least until Congress adjourned.
Yet yesterday, two days after the -onference, he appoi
nted the
Cam:aittee1
He was etidently spurred un to speedy actio
n&
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Federal Reserve Bank of St. Louis
30.
Committees, Federal reserve district (Contld.)
Gov. Meyer was in New York ye -terday at the directors meeting which
appointe, the Committee.
May 20, Itriday. 165.
The next day — Saturday — Hoover came out with a statement that
he
was pleased yt the formation of a N. Y. Committee, that the
Governors of the other Federal reserve banks will ut Ince
organize similar Committees, and that he will be glad
to
invite them to confer with htm inWashington.
The Associated Press despatch said. the idea calae from
Washington
and phrased it so the public would believe it originated
with Hoover'
May 21, Saturday. 166.
Hoov,n. thus brushes the Federal Reserve Board cside
and claims
credit for leadershipt
ks a fact, Miller and C.S.H. started this and it
was taken up by
the Governors or some of them at the Conference last Tuesd
ay,
but many of them did not seam very enthusiast
ic.
Miller mule the suggestion long before the Governors Confe
rence,
but Gov. Meyer has allays thrown cold water on the plan,
from
the very first.
Miller is entitled to all the credit for a Conference
at Washington
and C.S.H. for the survey in each District.
May 21, 1932. 166.
Gov. Meyer told the Board he attended a dinne
r in N.Y. last week
at which the N.Y. directors, Ogden Mills and other
s were
present. C.S.H. thinks it was on Thursday.
Gov. Mayer said Ogden Mills made a very fine
dress;that a
Committee was at once formed; that it apneared there
was much construction work Which oucht to be under
taken at
once.
C.S.H. asked Gov. Meyer as to7Gov. Harrison's sudde
n conversion to
the plan of appointing a Committee, saying it excee
ded in
speed that of St. Pauli
Gov. 7.krer somewhat brusquely said he paid littl
e attention to
what Gov. Harrison saillat the dinner.
Gov. Meyer said sverythin went drf splendidly
and that tomorrow
he was going to Chica7c, with Ogden :alas
on a similar errand.
May n3, 1932. 137, 158.
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Federal Reserve Bank of St. Louis
31.
Committees, Federal reserve district (Conttd.)
C.S.H. then introduced a resolution calling for a survey in
each district, and uring cooperation between banks and
bankers.
Gov. Meyer objected to word usurveyn.
Finally Board sent a telegram to each Federal reserve bank
to form a similar committee.
Miller stated that we should have a conference at Was:lington
between bankers and industrialists and prepare a program
to be worked out in each, Federal reserve district.
C.S.H. agreed with Miller.
Gov. Meyer objected, and said that each Federal reserve bank
should prepare its own program. No action was taken.
After the meeting, Miller told
that Hoover sent for him
just after breakfast a week ago last Saturday, May 14th,
and that he was with him nearly two hours; that he, Miller,
explaired the necessity for having district ccmmittees
appointed, preceded by a general meeting in Washington;
that he told President Hoover that this was a plan for
the Federal Reserve Board. to work out; that Hoover quickly
said he had. no confidence in the Board!
C.S.H. asked Miller if Hoover referred to Gov. Meyer — whom he
has always treated, as the Board, or to the other Board
members.
Miller said he could not tell which Hoover meant.
Miller said. the sudden action of Gov. Harrison in appointing the
N. I. Coranittee is most mysterious; that he is inclined to
think that Ogden Mills told Hoover of the plans discussed
at the Governors Conference, and that Hoover must have directed
Mills to go to N. Y. and put the Committee through at once.
C.S.H. feels this would. satisfactorily explain Gov. Harrison's
sudden conversion*
May 23, 1932. 169, 170.
Gov. Meyer told Board he and Ogden Mills had a very satisfactory
meeting at Chicago Which formed a District Committee.
May 26, 1932. 177.
Gov. Meyer leaves for N. Y. to be gone over Decoration Day.
May 26, 1932. Thtrsday. 179.
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Federal Reserve Bank of St. Louis
32.
Car....ittees, Federal reserve district (Contld.)
Gov. Meyer won't return until next FL day; he t oes to Cleveland,
and then to Phila.
May 31, Tue:Ilay. 183.
Miller tells C..H. that he was at Sec. Lamont's dinner to Hoover
last week; that Hoover told him he had kept in mind Miller's
suggestion of a conference between bankers and industrialists;
that he sent for Gov. Harrison anddirected him to form a
N. Y. Cauviittee.
MAler said that Gov. Harrison had received this direction just
before the Governors Conference of Tuesday, May 19, but he said
nothing about it at the meeting of the Governors, and even told
the Conference that nothing could be done in New York along
these lines, at least before Coivrresc:: adjournedi
Miller said he was satisfied that Hoover had instructed Ogden
Mills
to present his plan at the N.Y. dinner.
Miller said Gov.Meyer knew nothing about these instructions to
Gov. Harrison and Ogden
nor aboutthe appointment of
the Y. Y. ComvAttee until he heard Mills speak at the dinner;
that he thought. Hoover had been discourteous to Gov. Meyer in
concealing this from him; that he thow±ht Hoover ban probably
talked with Coy. Meyer about it after he - Miller - had.
mentioned the plan to Hoover, and that probably Gov. Meyer
threw cold water on it just as he did to Miller whenever he
broueit it up in Board meetin,7s.
May 31, 1932. 183, 184.
feels Gov. Meyer should have consulted him before 7oing to
New York, Cleveland, or Phila. as he is on these Board
Committees.
May 31, 1932. 184.
Millertold C.S.H. he thought Gov. Meyer appeared very mu.ch
embarrassed at the Board meeting vihan he explained about the
N. Y. dinner.
May 31, 1932. 184, 185.
To sum
up:
Hoover learned from Miller that Board had before it plans
for a 7, ashington Conference advocated by Miller.
Hoover, to get ahead of the Board, ordered Gov. Harrison
to call a conference in N.Y. and establish a ComAtt
ee.
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Federal Reserve Bank of St. Louis
33.
COmmitte, Federal reserve district (Contli.)
Hoover concealed them from Meyer and directed Ogden Mills to
put it through with Gov. Harrison '‘t New York dinner.
Gov. Harrison concealed his instructions from Governors Conference
and from the Board.
The morning's paper ten days after the appointment of the
New York Committee had a statement of Hoover's pleasure
at the appointment, of his desire that each F.R. bank
should appoint similar Committees, and of his offer to
invite the Governors to a conference at the White House.
June 1, 1932. 186.
Goy. nun: ranained in N. Y. until Tuesday, When he vent to
Federal Reserve Bank of Cleveland and from there to Federal
Reserve Bank of Philadelphia,
He told Board of the meetings and said they were most successful,
especially at Cleveland, where he was told there was loyach new
work which could be done, and that there were 175 an-olications
for new credit.
June 3, 1932. 169, 190.
C. .H. sugfested that an abstract of his New York and Cleveland
meeting be sent to each P.R. Bank Committee.
Gov. Meyer threw cold water on this.
June 3, 1932. 190
Gov.Meyer and Magee go to Richmond to meet Richmond Committee.
C.S.H. said would be j.ad to go if Gov. Meyer thouht he muld
be helpful, but he said he thought not.
June 7, 1932. 194.
Committees of Federal Reserve Board,1932.
Dec. 30, 1931. 34.
Commodity prices
Gov. Harrison on April 13, 1932, told the H.R. Committee —
Price stabilization bill — that in 1928 md 1929 commodity
prices were falling while security prices were rising; that if
the Price Stabilization law were in force, it would have been
his duty to buy Government securities and lower discount rates
to help business, altho such course would have encouraged the
rampant speculati2n.
Yet Gov. Harrison, in 1929, instead of arresting commodity
prices
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Federal Reserve Bank of St. Louis
34.
Commodity prices (Contld.)
by lower discount rates wanted radically to increase them,
thus accelerating their decline, in order to break the
increase in stock prices.
In other words, he was thinking in terms of security prices
rather than of comodity prices.
From October, 1928 to June, 1929, commodity prices were slowly
From Oct. 1 928 to February, 1928, stock prices increased enormo
usly.
From Feb. 1929 I; June, 1929,. stock prices fluctuated up and
down
(direct pressure lasted from Feb. 7th to about June 1st).
June 1, 1929, stock prices were lower than on Feb. 1 but
far
higher than in Oct. 1928.
May 10, 1932. 155, 156.
Ccumnity chest
Noell told C.S.H. that the quota fi::ed for the Federal Reserv
e
Board and employee for the Community Chest and unem-Aoymen
t
drive was $4070.40 which is 3 days salary of all in Washin
gton
connected with the Federal Reserve System; that he had
collected — not counting the Board members — $2530.57, lavin
g
a deficit of $1539. He then distributed subscription
blanks
among the Board members.
Dec. 11, 1931. 10.
0..H. gives Noell a pledge to pay $100 (3 days salary)
in monthly
installments.
Noell said the Executive Committee of the CrYalunity
Chest,
including Gen. Pershing and, C.S.H. thinks Delano, originated
this plan and submitted it to Hoover, Who apnroved it.
Noell said this quota called specifically for a three
days salary,
but that Sec. Morrill, in sending out the ledge, omitted
this reference, but all employees were clearly given
to
understand that a 3 days salary subscri2tion was requir
ed.
Noell said later that C.S.H., MaGee and Miller had each
pledged
$100; that James had given $300 because of his origin
al
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Federal Reserve Bank of St. Louis
35.
Oammunity ahest (Contid.)
suggestion to make un the deficit; that this made $600 and
that he had collected $253 more, leaving the deficit $786.
He said Miller had given direct to Newbold Noyes $5000 last year, and
would not credit any of it to the P.R. subscription by the
employees; that Gov. Meyer gave $10,000 without any similar credit.
He said he hoped Gov. Meyer would make up the $786 deficit.
Dec. 12, 1932. 10,11.
Comotroller of Currency
C.S.H. suggests name of James McConnellas Counsel for the Receiver
of the Federal National 3a7ik, Boston.
C.6.H. told McConnell the matter was absolutely under the jurisdiction
of the Comptroller and this was all he could do.
He wanted to came down to Wadhirgton but C.S.H. advised against it.
C..H. told CamDtroller he was a sound lawyer and in one case got a
judgment for $60,000 against this same bank.
The Comptroller said he would consider it.
C.S.H. wired McConnell that he had presented his name and asked if
he had talked with Senator Walsh who the Comptroller said was
to see him tomorrow about the same matter.
Dec. 16, 1932. 18, 19.
At least a year ago C.S.H. and Curtiss put the matter of the Federal
National Bank up to the Comptroller.
He should have promptly closed. it.
Dec. 17, 1932. 20.
Willis's draft of Glass bill following the report of Burgess and
Goldenweiser, retained the provision that the Comptroller
shall revalue real estate loans.
Mar. 14, 1932. 92.
Daiger said that the Comptroller alone had been given a copy of the
Glass bill by Willis; that the Comptroller and nills thought
that a liquidating corporation was vital and hat While the
Glass bill nrovided for this, it would be a long time before
it could become law; that therelron they lot Cong. Beedy to
introduce a separate bill for this purpose; that this bill
would call for only one or two days hearings and then could
be reported to the Senate and get preference over the Glass
bill; that Glass then rot he Sub-Camaittee to report his bill
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Federal Reserve Bank of St. Louis
36.
Comptroller of Currency (Contld.)
and tried to nut it through the full Conlittee; that
to do
this Glass d-layed hearings on the Beedy bill.
By reportin: the Glass bill, it got precedence on the Scnat
e calendar.
Daiger said Glass 2elt that Hoover, Mills, and the Corn
troller had
not played fair with him, and he finally forced the
administration to have the Beedy bill withdrawn.
Anril 5, 1902. 114, 11,, 116.
Conference, Paris peace
See — Houghton.
Conference, Governors.
See — Governors Conference.
Conferences.
Gov. Meyer, Morrill and Floyd Harrison went down to a
Comittee,
either of H.R. or Senate, to speak for Reconstruction
Finance
bill. Nothing said to Board.
Dec. 18, 1931. 24.
Gov. Meyer, Gov. Harrison, Burgess, Goldenweisr, and
Wyatt.
On Glass bill.
At house of Gov. Meyer.
Nothing said. to Board about it.
Jan. 31, 1932. Sunday. 52.
Between Gov. Roosevelt arid Hearst.
Feb. 9,1932. 57.
At White House, breakfast.
Glass was present.
As-reement as to emergency lejslation.
Feb. 11, 1932. 65, 66, 73, 91, 92.
Sen. Glass, Gov. Meyer, Sen. Wolcott, Morrill,
Burgess, Floyd
Harrison, after the White House Conference.
No mention to any Board member.
Pets 11, 1932. 63
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Federal Reserve Bank of St. Louis
37.
Conferences (Conti d.)
Mills, Gov. Meyer, and Goldenweicer
confer with H.R. ComrAttee to
have the 1 year limit of the Glass
anergency bill extendesl.
No mention of this to Board.
Feb. 12, 1932. 67.
Gov. Meyer, Gov. Harrison and Sen.
Glass at Treosury — Discussed
Glass bill.
Gov. Meyer referred to this the day aft
er.
web. 24, 1932. 80.
Gov. Meyer, Floyd Harrison, Morril
l, Golcienweiser, and Wyatt.
Agreed that Board': Can;:ittee shou
ld renort favorinz Sec. 3 of
Glass bill.
Mar. 23, 1932. 105.
See — Meyer, Goy.
Gov. Meyer, Ogden Mills ,atdinner
in N.Y. with Gov. Harrison,
et al.
N.Y. District Committee formed
.
Not mentioned to Board until lat
er.
May 23, 1932. 167, 188.
See — Hoover
Miller
At White House
Republican Senators, Ogden
ills, and Gov. Harrison present.
—ills later claimed Gov. Harrison
summoned by Hoover merely to
talk over business conditiohs.
May 30, 1932. 182, 183. 193.
ConfirmLition by Senate
Gov. Meyer and James were confirme
d today.
Dec. 18, 1931. 24.
Concressional reception — White
House
We were invited, but cards were
sent ts for the Zast door.
Presidents Harding and Coolidge
always sent us tickets to
the South — the diplomatic doo
r.
We did not attend.
June 21, 1932. 46.
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Federal Reserve Bank of St. Louis
38.
Construction work to aid denression
C.S.H. in open market conference first brourht -act that there
was much conttruction work which needed to be done. This
was the first suggection.
May 17, 1932. 163.
See
Governors Cnnference
Coolia,7e, Lawrence
C.s.R.
ttends wedding of Miss Tyler to. H.P.H. stayed it side
.but went itith C.S.H. to the reception ,,iven by Mr. & Mrs.
Robert Bliss.
Jan. 16, 1932. 42.
Coolidge, President. 46
See- Congressimal reception
Mrs. Samuel Eliot called and told us that her brother, Charles
Honkinson, was painting a portrait of Coolidge for the
White House; that Coolidge wrote him giving dates for
sittings and said he hoped he would not economize either
in -)aint or canvas as he want the pictur to last forever1
April 10, 1932. 121.
Coolidge, Sen. & Mrs.
We call on.
Dec. 27, 1931. 32.
See - Woman's :ati-inal Democratic Club
Cooperative marketing associations
Willis draft an agreement between Glass and Sen. Wolcott
retained the provisions lLiting loans on collateral
securities, thus strEkiqg a blow at.
Mar. 14
-, 1932. 92.
Copper Range Co.
H.P.H. sends to Old Colony Trust Co. certificates for 150
shares of St. Mary's Mineral Land Co. to be eYchan7e for
equal number of shares of.
Dec. 17, 1932. 23.
Cotton
Jules Foster Dulles told Board Eurone would not buy of us a
'pound of, beyond bsolute necessities even tho we freely
of:crel credits.
Dec. 11, 1931. 7, 8.
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Federal Reserve Bank of St. Louis
39.
Cotton (Conti d.
Gov. Meyer said he would be Flad to
7ive loi tire loans on,
at 74 ner nound but feared it woul
d seem too much like the
Federal Farm Board's nolicy.
He askod for sup:getions and C.S.H.
spoke of the 135 million
cotton loan of 1914.
Gov. Meyer sneered at this, and said
succeeded only because of
the war.
C.S.I. said the war caused cotton
to collapse, and the fear
of its bring made contraband made
the situation even worse,
and how could it be said that the
war caused both depression
and at same time made the cotton loan
succeed?
May 26, 1932. 177, 178.
Cotton Loan Fund, 1914.
See - Su;ora ,Cotton
Cosmos Club
C.S.H. awes to Hay-Adams House
from.
Dec. 1, 1931. 1.
C.S.H. told Page, Clerk of Cosmos
'hub, that he would take
Rnaa 38 bec;tnninc June 25 at regular
rates and would
take it from July 1 throujl Seotembe
r at summer rate $40 ner month, and after that at the
regular rate.
May 28, 1932. 181.
Crane, Federal Reserve Bank, New
York
Gov. Meyer said, had had little nrac
tical banking exnerience.
Mar. 3, 1932. 86.
Credit exoansion
Ocden Mills in address before Acce
ptance Council in New Yotk urged.
Feb. 26, 1932. 48.
Credits
See - British credits
Te_eral reserve credits
Political credits
Crissinger, Gov.
Obtained a cony of Sol. Gen. Lehmanis
opinion a-ainst the
validity of national bank affiliat
es and when he
resi:ned he gave it to Wyatt with
instructions to cive
it to the next Governor of the Boar
d.
May 11, 1932. 158.
Criticisms
See - Meyer, Goy.
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Federal Reserve Bank of St. Louis
40
Curtiss, Federal Reserve A7ent, Boston
With C.S.H., -out matter of Federal Nati
onal Bank squarely before
the Com-ntroller 2 years azo.
Dec. 17, 1931. 20.
Curtius, Germany. 14
See.Austro—Gcr. Tariff afree:dent
Butler, Dr.
'Customers notes
Glass told C.S.H. not lov.neyer was uri
ng him to agree to
have debentures of the Reconstructi
on Finance Corf,oration
made eligible for both member baxik coll
ateral notes and
customers notes, but that nreviously
Gov. neyer ha;3_ told
him he was absolutely op
:
osed to this.
Dec. 16, 1931.19.
Csechoslovaia. 7
See — Dulles, John Foster.
.=•••••••••
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Federal Reserve Bank of St. Louis
41
Daiger, Ur.
114, 115. Aril 5, 1932.
See - Glass bill.
Daniels, Jose'hus
Jan. 1, 1332. 35.
See- Butler, Col. Smedley
Hoover
Morris, Rowland
Davis, John W.
C.S.H. told, he tllouht the World Court advis
ory alinAn on
the Austro-Gernan tariff agreement, decided by a vote
of 8 to 7, was a political opinion.
Davis said No and asked. C.S.H. to read his artic
le in the cuing
Atlantic Monthly on the subject.
Dec. 14, 1931. 14, 15.
(Later C.S.H. read it and was convinced by it,
and so
wrote Davis. See scram bool:.)
Davis, Norman
Agrees with Shotwell that Austria and Hunerar7
are hopeloissly
bank:runt.
He said that Hungary in its report to Parliament
had concealed
its deficit; that the Bank of Hungary carried
as assets
gold pledged with the B.I.S., which the
Should not
have taken.
He and Shotwell b th said the political bound
aries could not
be Changed for a long time, if ever, but that
economic
agreements could be entered into which would proba
bly satisfy
Austria and Hungary; t;h:t Hungary did not want
to get back its
territory nrovidcd it could trade freely with
the Dart ta'L'..en
away.
Dec. 14, 1931. 13, 14.
Tells C.S.H. he believed the World Court judge
s decided on
nolitical grounds in the Austra-German tariff
arreement
decision, but as matter of law, he belie
ved the decision
hap.-)ened to be ridht.
Dec. 14, 1951. 15.
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Federal Reserve Bank of St. Louis
42.
Davis, Nom= (Contld.)
Said there was a dispute betwee
n Gov. Smith and Gov. Roosevelt
.
He thought Gov. Smith nreferred
Baker or Gov. Ritchie to 1-ov.
Roosevelt.
Dec. 14, 1931. 15, 16
Dawes, Charles G.
Mrs. Emily Newell Blair told
H.P.H. that when, was anointed
President
of Reconstruction Finance Cornor
ation, Gov. Meyer was very
anry and threatened to res
ign from the Cornoration and fro
m
the Federal Reserve Board.
Liar. 1, 1932. 84, 85.
Resigned as President of Rec
onstruction Finance Corporati
on.
Rumored that he had differenc
es with S07. Meyer.
June 7, 1932. 194.
Boston Transcrint speaks of
friction. Gov. Meyer more con
servative
than Dawes.
June 7, 1932. 196.
DeGernsdorff, Carl. 133
See-. Chase, Howland
Deaths
See
Biddle, Liia
Carroll, Judge James
Hill, David Jayne
McCaw, Mrs.
Perrin, John
Stratton, Charles
Tyler, C. 7.
Warburg, Paul
Debentures
See — Reconstruction Financ
e Cornoration
Delano, F. A.
We lunch with Mr.
Lnd.
2, ec. 6, 1931. 4.
We lunch v-ith Mrs.
Jan. 17, 19. 42.
We lunch -,ith Mr. & Mrs
.
May 15, 1932. 161.
Mr. & Mrs. Delano lunch wit
h us at Womanis National Dem
ocratic
Club to .-leet Count John Ben
tnick and Baroness Van Hedker
en.
May 22, 1932. 167.
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Federal Reserve Bank of St. Louis
43.
DeLong, Mrs.
H.P.H. wrote, that we are to shit down the farm and sell the
stock, she, how,ver, to continue as caretaker at $50 ner month
for the present at least.
She also would pay Chester $30 -ler month While he was tryino to
get other work and to recover from his illness, nrovidel he
made SOMB arrangement with Mrs. DeLong to do What he could
al,out the place until he could get other work. The above wa7
not intended as wages but merely z temporary help to Chester.
(See Vo. 220 scrap book)
Dec. 11, 1931. 9, 10.
C..z.H. sent Mrs. DeLong and Chester a check for December salaries
saying that from Jan. 1, 1932, hPeter would have $30 per month
until he could get a new job.
Jan. 26, 1932. 48.149
Departmental reorganization
Hoover asks authoritytt"om Congress to reorganize all Denartments,
and asks for 4 or 5 more Asst. se-retaries.
Under this plan the Federal Reserve Board could be consolidated,
e.g. with the Labor Bureau.
The Democrr,,ts will fit this.
Feb.22, 193. 79, 80.
De,?osts
2, 147.
See — Dank of France
Harrison, Gov.
Norman, Gov.
Dinners (See lun hes, supers)
With Mr. & Mrs. Dean Sage.
Dec. 14, 1931. 17
With Mr. & Mrs. %Tomes to meet Richard and Marion Sanger.
Dec. 13, 1931. 20.
With Sen. & Mrs. Carey.
Sarah Carey and Sen. Wolcott were nresent.
Dec. 17, 1931. 23, 24.
Christmas dinar:.
At noon with Lydia Biddle.
At night with Mr. & Mrs. Clzorge
Dec. 25, 1,31. 32.
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Federal Reserve Bank of St. Louis
44
Dinners (Contide)
With Sen. Carey.
Jan. 18, 1932. 43.
We give dinner at Woman's Iational Democratic Club
Present:
Sen. & Mrs. Carey, Sen. Wolcott, Mrs. Conj.. Kahn,
& Mrs. Josephine Patten.
Jan. 22, 1932. 47.
We have Cant. ani Mrs. McNamara at dinner
Democratic Club.
Feb.12, 1932. 69.
t Woman's National
With Mr. & Mrs. Geortfe
Feb. 14, 1932. 73.
Mrs. Bayard Van Rensselaer with Ruth Goodrich dine with us.
Feb.21, 1932. 79.
Harriet & Jane with us.
Feb. 28, 1932. 84.
Mr. & Mrs. Magee give us dinner at Cosmos Club.
Later,to theatre.
Mar. 9, 193. 89.
With Mrs. Newlands.
Mar. 13, 1932. 91.
We gave dinner at Woman's National Democratic Clu.
Present: Mrs. Cong. Rogers, Robert Lincoln,O'Brien,
Capt. & Mrs. McNamara.
Mar. 17, 1932. 97.
With Edith Helm.
knril 2, 1932. 113.
Gertrude Myer dines at White House.
Aoril 7, 1932. 117.
With Mr. & Mrs. Robert Lincoln O'Brien at New Willard.
April 7, 1932. 118.
With Gen. & Mrs. Treat to meet Godfrey Macdonald.
Anril 23,1932. 142.
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Federal Reserve Bank of St. Louis
45.
Dinners (CDntld.)
With Mr. & Mrs. Larz Anderson.
Met.British ambassad.or there.
May 3, 1932. 151.
CoDello dined with Dr. Butler, N. Y.
May 4, 1932. 151.
We dine with Gertrude Myer.
May 11, 1932. 159.
Edith Helm dines with us.
May 12, 1932. 160.
With Mr. & Mrs. Wyatt.
Junel , 19.,26 187.
Diret pressure
C.S.H. feels the unanimous action o the Board in acreeing an a
draft of Sec. 3 of Glass bill Which it sent to the Senate
Committee was a direct ialorsment of the fight for, in 1929,
and one of the most Lmnortant votes the Board has ever taken.
Mar. 30, 1932. 110.
Glass told Morrill the Board in its draft of Sc. 3 cave him more
even than he asked for.
Mar. 31, 1932. 111.
Disarmament
C..H. fears movement to nut an end to corresnond- nt relations betteen
Bank of France and F. Bank of New York, by Gov. Meyer and
Ogden Mills, is founded on Administration anger at France for
her attitude towards, etC.
Jan. 19, 1932. 46.
Discount policy
147, 148, 149
See — Harrison, Gov.
Noraan, Gov.
Discount rates
lane tells Board he hopes for a lower preferential rate on paper
scoured by Govt. somrities, statinc that the emergency was
as great as during the war, and that the Federra reserve should
oocype -ate.
Jan. 11, 1932. 41 (2)
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Federal Reserve Bank of St. Louis
46.
Discount rates (Contld.)
Ogdm Mills said he should ask the banks to buy the new Treasury
issues and hold them until the Government called for the m•pney,
and that then they could rediscount using the certificates
as sec. urity.
He said that was the original intent but that the banks had been
dm)ing on the market all they boucht, for profit, which was
had.
He said they could make a reasonable -profit by rediscountin at a
rate lower than the certificate rate; that the Treasury would
distribute the proceeds all over the country, which would help
all the banks.
Feb. 24, 1932. 82, 83.
Go'/. Harrison said he should ask his directors toLlorrow to lwier, by
1/2 of lro.
All seemed to feel that in this central time it '7ould be desirable
for the Federal Reserve Bank of New York at least to lover, and
help the Treasury.
Feb. 24, 1932. 83.
Glass asked C.S.H. if Federal reserve bank can fix rate on member
bank collateral notes without the final approval of the Board.
0..H. said No.
Mar. 21, 1932. 99.
Gov. Meyer told 3.S.H. over a year ago that the Board should have
anproved N. Y. anaication for a 6% rate in 1929; that this would
have met the situation.
Mar. 31, 1932. in.
Glass asks Gov. Meyer whether the Board's recommenCAations to Sub—
Com: ttee under Sec. 14 tool:
, away fram the Federal reserve bank
the right to initiate discount rotes, and asl:ed him to write
him as to :his.
Board sent letter to Glass that the amendment was not intenad to
nor did it in any way affect such. power.
Aril 6, 1932. 115, 117.
Gov. Harrison in a letter to Glass again says that only way to correct
sneculation is by onen market po7mr and by discount
April le, 1932. 143.
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Federal Reserve Bank of St. Louis
47.
Discount rates (Contid.)
Gov. Noman in cable to Gov. Harrison says
he will probably further
reduce the bank rate.
April 19, 19n. 146.
(ray. Harrison replies to Gov. Norman
that 1owerinc7 the bank rate may
imply sympathy with our -orogranme, and
says or discount rate is
ineffective and would le so even if
reduced to 21s or 2::4 tlit the
present r.te may be ofsame a :vantage
over lower rates by way of
encouraging banks to use the reerve
s we are flying then.
April 19, 1932. 147, 148.
C.S.H. feels above cable indiscreet
an showing our future discount
--)olicy without an Toval of Board.
April 19, 1932. 149.
0.3.H. predicts that Gov. Harrison befo
re long will ask for hih
discount rates to protect our gold ree
rve.
2ov. Meyer said present 37.; rate is
negligible.
1.S.H. said a 4;4.., rate would not burd
9a industry and might induce
banks to loan more fran the hiqler
profit.
No one agreed —ith rim.
April 19, 1932. 150.
Coy. Harrison in 1929 was willing
to injure business .by increasinr:.,
in order to 5: ash the stockmarket.
May 10, 1932. 155.
:iscounts, Refusal of.
See — Rediscounts
Refusal of rediscounts
Glass
District Colittees
See — Committees, District
21vorce of affiliates
See — Security affiliates
Dodge, Olrence
We lunch with Mr. & Mrs.
Feb. 14, 19324 73.
Ar,erican
Gov. Harrison said Willis was
res)onsible for the distrust of, abroad.
Dec. 2, 1761. IB
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Federal Reserve Bank of St. Louis
48.
Dollar, American (Conttd.)
Oitly danL.er is
from, by hoarding.
Goldenweiser. June 9, 1932. 19S.
Domination
Magee said Gov. Harrison was the dominating influence in the
System.
re). 12, 1932. 67.
Drinnen, Chief Examiner. 7
Se — Atlantic Natimal Bank, Boston.
Dulles, John Foster
Told Board about his trin abroad, the Board having asked him
before he sailed to inquire into condition and let Board
know.
He said conditions were very unfavorable abroad as to or
exports; that Germany, Czechoslovakia, Jugoslavia, and
Poland were using eve4yeffort to keep on the gold standTd
to avoid the inflation tlarough which they had passed and
from Which they had suffered so severely; that to this
end. they were cutting down im,)orts to absolute necessities.
He said they would not buy a pound of cotton beyond absolute needs
even if American credits were freely offered.
He said the American Committee was ba:_ly fooled in the "Stand Pat"
azreement, which provided that certain special British
credits, known as "Political" credits, were to have priority
and that 250 millions of these credits had been paid; that
the American bankers were outwitted by the British bankers
and were pursuaded to q,ree to something they r ally did not
understand, but which they should have understood.
C.S.H. rameMbers how the N. Y. Times eUlogized lov. Harrison for
his snlendid work in gettin,7 the New York banks to carry
out the standpat agreementl
Dec. 11, 1931. 7, B.
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Federal Reserve Bank of St. Louis
49.
2,-Inuarking
Gov. Harrison, in reply to Gov. Norman, says that, of gold seems •
logical if Norman is forced to increase her dollars; that he Gov. Harrison- has no objection, and will be glad to accommodate
him; that earmakinc may be misinterpreted in U.S. and should
be timed so as to have the lest possible reaction against our
programmo.
April 18, 1932. 146, 147.
Gov. Meyer says Gov. Harrison is considering asking Bank of France
to earmark at once all of its deoosits. All seemed to a0-2rove.
June 9, 1932. 196.
Zas;' money policy
See - Open market policy
Economic agreements. 14.
See - Davis, Norman.
Economy bill.
This bill as passed by H.R. cut down salaries of Federal Reserve
Bard from $12,000 to $10,000 7)ermanently, and. then cut down
the remainder by 136.
Glass scurelpassar:e of an amendment inSenate exemytin- ''ram 1170
cut salaries not paid by U.S. Govt. and assessed lapainst banks.
June 6, 1932. 194.
C.S.H. told. :aller of his letters to Glass and of above amendment.
He did not dissent.
June 7, 1932. 194.
. told James and Floyd Harrison who a.vraved.
O.S.H. read his letters to Glass to Floyd Harrison.
C..H.told also
C.S.H. did not speak to Goy. Meyer as he was away, and -2rompt
action had to be taken.
June 7, 1932. 195.
Senate passed economy bill with above amenlaent.
June 8,193. 197.
Magee told.
that Gov. Meyer talked vith him as to econor
bill on their way to Riehmond and ap-)roved all C.S.H. had done.
June 9, 1932. 198.
See - Salaries
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Federal Reserve Bank of St. Louis
501
Eli-ibility, Eligible paner
Hoover in message to :Congress favors broadening of elif;i1A1ity
in times of stress.
He said a majority of the Federal reserve bank Gov -rnors
fa
:vored this.
He did not mention the Federal Reserve Bovrd.
Dec. 8, 1931. 5.
The Board, except nossibly Miller, all favored Federal
Intermediate Credit bank debent_res as collateral for
P.R. notes.
Hoover evid, ntly played of
Gov. Meyer ap:ainst the Boardl
Dec. 8, 1931. 6.
The Governor, thre dissenting, favoring Lombard loans in t mes
of emergency.
Dec. 8, 1931. 6.
Glass said Gov. Meyer was urging him to agree to have debentures
of the nronosed Reconstruction Finance Corporation serve
as collateral for customers notes and member bank collateral
notes.
Glass
id Meyer not long aEo told him he was as much opposed to
this as was Glass.
Dec. 16, 1931. 19.
The Reconstruction Finance Act, — H.R. bill — gave both above
privileges.
Wyatt saw no rersalel)r objecting.
Dec. r, 133.. 21.
Glase said the above bill was now lefo;e .is Camuittee and he was
much diaturbed by it.
C.S.H. said, in view of nresent emergencies he was not inclined
to object to it.
C.S.H. said the Federal Advisory Council ana the Governors
favored broadening of
and that the spirit of their
recolendatiDn would include this 11.11.
Glass asl:ed for a co2y of these recomrienaations.
Dec. 17, 1931. 23.
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Federal Reserve Bank of St. Louis
51.
Eligible paper (Contil.)
Glass disapproved. the eligibility provisions of the Reconstruc
tion
Finance Act.
He said it looked as if everything the administration wante
d would
be put through regardless of the injury to the P.R.
System.
C.S.H. said that in present emergency it might be helpf
ul, but
did not want to see it nermanent.
Glass said it would dump 2 billions into the P.R.
System.
C.S.H. explained that discount of notes secured by such
debentures or member bank collateral notes secured by them
would carry a higher r-te and banks would prefer to
offer
paper taking a lower rate.
Dec. 16, 1931. 24, 25.
Gov. Harrison told C.S.E. that he had been before the Senat
e
Gass Committee and that Sen. Glass would fight the
eligibility provisions.
Gov. Harrison said he r.greed with Glass, and would prefe
r to have
power given totake these debentures only in emergencie
s.
Dec. 19, 1931. 25, 26.
Gov. Meyer asked. Board if it cared to take up the emerg
ency
eligibility amendments to P.R. Act.
C.b.H. asked if Board had been aslmd to report on it.
said No.
Gov. Uoyer
Miller objected..
raid Board ehould consider the provisions, reserving for
future determination Whether we should send our concl
usions
to the Committee.
All the members except 'diner agreed toC.S.H.
suegestion.
The Board, except Miller, was unanimous.
1. The one year limitation should be made extended
for
another year by unanimous vote of Board.
2. The 1inittion of relief to banks under
$500,000 capital
should be stricken out.
C.3.H. at first wanted the limitation to be
fixed at 1 million
dollars.
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Federal Reserve Bank of St. Louis
b2.
Eligibility, Eligible paper (Contl d.)
Gov. Hey -r said this would exclude the big banks which have to
take o: non-member banks.
C.S.H. acceptedthis reauxing.
Feb. 15, 193. 74.
Miller said Hoover sent for him and psi:ed him to try to 2ersuade
Glass to acce -A the amerency eligibility -Inenclznent.
Feb. 15, 1937. 75.
When the Board finished its discussion of the Glass eaer-ency
bill, it considered whetlier or not to send its conclusions
to the Sub-committee uninvited.
Aye: Gov. Meyer, Magee
No: C.S.H., Miller, JE4es
otion failed.
Feb. 15, 193n. 76.
Board. net to consider report of its oxnerts on Glass bill.
C.S.H. su,gested maturity of 90 days for member bank collateral
notes secured by eligible paper.
Accejted by Board.
C.S.H. suTzested higher rate on member batik co11atern1 notes
secured by Government bonds, said increase not to take
effect for 3 years.
Much fe-,;_ositiJn to this
ni C.S.H. withdrew it.
Mar 27. 1932. 18.
C.S.H. t 0,2en Market Conference favored loans for new c.rmstruction
altho they might not create elirible naner.
Mau 17,1332. 163.
See - Federal Advitlory Council
Glass bill
Governors Conference
Eliot, Hrs. Samuel. 121
See - Coolie, E::,-President.
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Federal Reserve Bank of St. Louis
53
Elliott, ,!.r.
TeLls Livincstone Wrijht he has no lace for him in Statistical
Division of Reconstruction Finance Coroortion.
Mar. 5, 1932. S.
Ely, Gov. Mass.
James McConnell said, was maing a Door Governor, - bad ap:-.)ointments, that he feared great scandals mictht arise.
Feb. 12, 1902. 71.
Ambarop on tr:,.de.
C.S.H. feels that to nut an end to all corresnondent relationshios
with the Bank of Prince, would mount to an.
Jan. 19, 1932. 45.
ergency
ee
Federal Advisory Council
Glass emervency bill
Governors Conference
lanergency bill
See - Glass emergency bill
2rnst, Helen
Write thankinc C.S.H. for a co-y of Dr. aitlerls .dres.
Jan. 28, 1932. 51.
"Esquire"
005.H. noticed that letters addressed to the Board were sent to
Zu,-2ene Meyer, Esulre, instead of HonTirable.
A letter from Ogden Mills to C. .1i. had same title, - "Esquire"
C.S.H. s)01:e to
and Mc:lelland about this.
McClelland said that under Morrillts direction, he called un the
Probocol division of the State De:?.t. and asd why "Esquir "
had been substitutei for "Honorable."
The clerk in the Division said that heads and vice heads of
Boards and Com:Assions were desimated as "Honorable" but other
members as "Esquire"; McClelland then nointed out that 7.-lov. Meyer
was being addressed as "Esquire", and the clerk said ths was
an error and would be remedied.
:.1c3le11and pointed out that the Governor's status was not superior
to that of the other members, but was, in f%sct, subject to
their sunsrvisition under th F.R. Act.
Fe7:,. 2, 1932. 53.
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Federal Reserve Bank of St. Louis
04.
"Eseuire" (Contld.)
Morrill tells C.S.H. that he took un the auestion of
"Esquire'
throueh McClelland with the Protocol Division and rene
ated •
what McClelland stated above.
This action makes Board members rank with Chie
fs of Divisionst
Feb. 11, 1932. 65, 66.
Ogden Mills acknowledges C.S.H. letter of congratu
lation by a
letter Maressed to C.S.H. "Esouirdl.
Feb. 17, 1932. 77.
Euro-oe 7, 38.
See — Tulles, John Foster
Exports
Meyer, Gov.
Examinution.6, 7.
See — Chase National Bank
Drinnen, Chief Examiner
Emminer, Federal reserve chief
Gov. Meyer presents nPme of Leo H. Paul
ger for, saying he made a
wonderful record under Wra Finance
Cornoration.
Gov. Meyer before this told Board he had
a man in mind for this place
but never mentioned Who he was until
now.
Jan. 7, 1932. 38.
lxnenses, Travelling
See — Econamy bill
balaries
Exoort trade
Dulles told Board that Euronean conditio
ns were unfavorable to our
export trade; that Europe would limi
ts its purchases to
absolute necessities; that it would
not buy a nound of cotton
beyond its absolute necessities even
though we freely
extended crelits for this purpose.
Dec. 11, 1931. 7, 8.
Gov. Meyer said we had better cease
worrying about Europe, and nay
attention to the domestic sitwtion
; that he was tired of
the constant talk about our export trad
e; that maintenance of ow
export trade was absolutely inconsis
tent with maintenance of
the American standard of living; that
exports were being
encouraged at the exnense of our home
trade; that we ondit now
to have an imnort balance.
This is pure isolation.
Jan. 7, 1932. 38, 39.
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Federal Reserve Bank of St. Louis
55.
2yec
be
— Joslin, Dr.
norrison, Dr.
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Federal Reserve Bank of St. Louis
56.
Failed bank
See - Pancher, Gov.
Ped-ral Reserve Bank, ClevPland
Standard Trust Co.
Fandher, Gov.
Gov. Meyer spoke contemptuously of, saying that vihen he called
him up Saturday about the Standard Trust Co. he kept saying
er - er - and he had been almost rude to hi.; tat we ought
to get another Governor next year.
Gov. Meyer aid. this habit meant mental slug!
:ishness, but Millpr who has the same fault - s:Ad it meant mental degeneration.
Deco 23, 1931. 30.
See - Pedcral Reserve Bank, Cleveland.
Federal Advisory Council
C.S.H 'told Glass that, favored broadening af eligibility and
he psked C.S.H. to send him a co-IT of its recommendation.
Dec. 17, 1931. 23.
Invites Gov. Meyer alone to lunch.
A discourtesy to the Board members.
Feb. 15, 1932. 75.
Board meets with.
Recanaended some changes in Glass emergency bill to about all of
which C.S.H. agreed to.
The Council at its own meeting yesterday voted to ask Board to
send Councills sugcestions to Sen. and H.R. Committee, vihiCh
Gov. Meyer told the Board he had ione.
Feb. 16, 1932. 77.
Board received notice of a s7/2cial meeting of the Council in
Washington on Monday, :hr. 28th.
Mar. 26, 1932. 107.
Board met with Cornell.
The Council severely condemned the original Glass banking
bill.
Many of its criticisms had been lready made by Board in its
report to Sub-Ommittee on Glass bill.
Mar. 29, 1932. 109.
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Federal Reserve Bank of St. Louis
57.
Federal Advisory Council (Contld.)
The Governors, sitting on Open Market CollAttee, wrote Gov.
Meyer
that they agreed with the criticism of the Glass bill :.14ie by
the Council.
This criticism was a criticism of the ori:inal 1'111.
Aril 13, 192
124.
C.S.H. writes an answer to Lichtenstein, secretary of the
Council,
criticising his st,,tement in an ad-ress before the Minneapolis
Chapter of the N.W. Ban:cers Ass)ciation, expre7sing the opin.o
n
that the Board neglected to reverse its policy of easy money
because of the impending Presidential election of 1928.
C.S.H. sent a -,:o2y to each member of the Council.
May 19, 19Z2. 164, 165.
See- Lichtenstein.
Board meets with Council.
Most of the discussion turned on Traylorls suggestion that more
long term bonds should be -3ou.J;ht, under the open market
purchases.
Gov. Ueyer and :iller o2nosed this as ground that it would tie
up the P.R. System, :,nd if they had to sell them it would
break the 1on term market.
Traylor said buying only short tern bonds injured the long
term bond market.
It was pointed out that short term bonds liquidate! themsel
-es.
Traylor skid he a-vised
v. McDougal to vote for the present
()en market policy, and s-Ad had no objection to trying it
out ,although he could not see that it had accanl)lished
much, if anything. He denied that it had sto- ned wit.idraifral
of deposits;at the beginning, many members seemed to
sympathize with Traylor, but when the discussion was finished,
most or all seemed to feel the Board's policy as to buying
short term bond- was correct.
May 24, 1932. 174, 175.
The Council said nothi
as to Lidhtensteinis attack but as
the Board was leaving, the presiding officer called the
Council together saying there was another matter to dic,:.ss.
felt sure this 11:-Id to do with Lichtenstein.
May 24, 1932.
See - Lichtenstein.
7=7r-,77-7-
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Federal Reserve Bank of St. Louis
5E1
Federal Advisory Council (Contld.)
C.S.H. has received replies from some of the Council as to
his
letter to Lichtenstein.
Most of tr,ean said they would read it.
Treman said vaEuely that it would be better if, in the future,
such criticisms should be avoided.
Pith, of St. Louis, the President of Council, frankly
condemned
the letter.
May 26, 1902. 181.
Federal Farm Board
Gov. Meyer said he would be crlad to loan on cotton except for the
unfortunate analoy of the.
May 26, 1932. 177.
Federal Farm Loan Board. 12, 24.
See— Harrison, Floyd
Morrill
Federal National Balk, Boston
C..H. and Curtiss put matter of closing up, to Comptroller
2
years ago, but nothine was done by him.
Dec. 17, 1931. 20.
See
McConnell, James E.
Feaeral Res.?rve Act
See — Eligibility
Slags energency bill
Glass bill
Federal Reoerve Bank, Boston
Gov. Young says reduction of salaries is inevitable.
May 17, 1932. 163.
2ed,ra1 Recc,rve Bank, Chicago
See — McDougal, Gov.
Fri ral Reserve Bank, Cleeland
Reportedthat the Standard Trust Co., a nom-member labor
bank, was
in trouble and that it had notified it that it would no
longer clear its checks as it had a clearing balance of
only
$16,000 instead of its required deposit of $500,0
00.
Miller teleehoned the White House and directed Gov.
Fandher to revdke
the refusal.
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Federal Reserve Bank of St. Louis
59c
Fed.E.ral Res rye Bank, Cleveland (Contid.)
The State Superintendent, however, closed the bank today.
Miller never mentioned this to C.S.H. who is a member of the
Cleveland Committee, although C.S.H. was there all Saturday
morning until the Department closed1
Dec. 19, 1931. 27, 28.
C.S.H. a2lointed on Cleveland Committee for 1932.
Dec. 30, 1931. 34.
See - Fandher, Gov.
Goo'. Meyer is to
to Cleveland next reek to form a District Comnittee.
May 31, 1932. 183.
Gov. Merr told Board of the Cleveland meeting - a great success;
that there were 175 applications for new credit.
June 3, 1932. 189, 190.
F,?deral Reerve Bank, New York (See also, Harrison, Gov.)
Gov. Norris told C.S.H. that the Governors Conference felt that the
N. Y. City banks should increase their rediscounts with, and
that the Conference wollld not help them to increase their
already great liquidity by the purchase of Govt. securities.
Dec. 2, 1931. 1.
Dispatch from State Dept. was real to effect that the Assistant to
Gov. Moret of Bank of Prance told a member of the EMbassy that
the Federal Reserve Bank of New York had asked Bank of France
not to withdraw its deposits without notice, and that Bank
of France had consented on condition that the F.?. Bank of
New York would not inflate.
C.S.H. also referred to letter of Mark Sullivan stating that the
Hoover-Iaval aereement provided that Bank of France would not
withdraw its deposits without specific notice.
Gov. Harrison said their renorts were absolutely false.
Dec. 2, 1931. 1-B, 1, 2.
See - Harrison, Gov.
Floyd Harrison said the State Dept. sends all dispatches affectin- the
P.R. Bank of N.Y. directly to it.
Dec. 7, 1931.
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Federal Reserve Bank of St. Louis
6(
Federal RePrve Bank, Nev' York (Contld.)
C.S.H. made Chairman of Committee for Federal Reserve Bank, N. Y.
Dec. 30, 1931. 34.
Glass told C.S.H. that the foreign loan polity of Federal Reserve
Bank of N. Y. had practically bankrupted it.
Jan. 28, 1932. 49.
See - Harrison, Gov.
Glass told C.S.H. that his banking bill was directed
domination of the F.R. Bank, N. Y.
Jan. 28, 1932. 51.
intt the
Board members feel it desirable for, to lower discount rates to help
recovery.
Feb. 24, 193. 83.
Gov. Meyer told Board that, excenting only Rounds Who was fairly
efficient and experienced in banking, there was not a pnctical
bank man in the F.R. Bank of Y. Y.
He specifically referred to Gov. Harrison, Case, Burgess, and Crane.
He snoke almost with contempt about Sailer.
Mar. 3, 1932. 85, 86.
C.6.H. tells Glass of attitude of P.R. Bank as to control of
speculation - only throuch the discount rate; that it even
disaEreed with the Board as to its public warning of Feb. 7, 1929.
Mar. 21, 1932. 99 (1)
C.S.H. told Glass he knew of no snecific instance in Which,
refused discounts.
Mar. 1, 1932. 99 (1) (2)
ctually
Gov. Meyer,told C.S.H. a year ago that Board Should have approved
the .6,7 rate asked for by, in 1929; that it would have met the
situation.
Mar. 31, 1932. 111.
0.6.H. refers to excessive -urchase ofaccentances by, in Fall of 1928.
April 32, 1932. 145.
Adjustment of salaries at, said by Gov. Harrison to be inevitable.
May 17, 1932. 133.
Gov. Meyer attended meetinc of directors of.
nay 19, 1932. 165.
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Federal Reserve Bank of St. Louis
61.
Federal Res
ve Bank of New York (Contid.)
Gov. Meyer attends dinner in New York with the Federal reswrve
bank directors, et al, at which the N. Y. District Committee
was deciI d ion.
May 19, 1932. 167.
Lichtenstein told C.S.H. that Prof. Bullock of Harvard told him of
the excessive -,?urchases of acceptances by, in Fall of 1928.
May 22, 1932. 171, 172.
See - Harrison, Gov.
Federal Reserve Bank, Philadeljda
C.S.H. aryoonted on Phila. ComAttee.
Dec. 30, 1931. 34.
Gov. Meyer ;roes to, ncxt week.
May 31, 193. 183.
Did not ask C.S.H. to go, although he is on Phila. Committee.
May 31,1932. 184.
Gov. Meyer tells Board of Phila. meeting.
189, 190.
Feleral Reserve Boni:, Richmond.
C.S.H. made Chairman of Richmond Caumittee.
Dec. 30, 1931. 34.
C.S.H. addresses :itockholders meetine of. ilagee went with him.
Aril 15, 1932. 127.
Federal Reserve Ban, St. Louis
op:Anted on Committee.
Dec. 30, 1931. 34.
Federal Reserve Bank, San Francisco
Reduction in salaries inevitable.
May 17, 1932. 163.
See - Agnew
Anglo-American Trust Co.
aaLkins, Gov.
Committees, District
Transamerica Corporation
Fedral reserve banks
Goverl.ors unanimously on)osed C.101:.er 1)1an for reduction of saleries.
Dec. 2, 1931. 3.
Gov. Harrison said two courses open to P.R. banks; - a bola course
by buying Govt. securities to prevent further withdrawals of
denosits, or, keepthemselves liquid to meet withdrawal of
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Federal Reserve Bank of St. Louis
62.
Federal reserve banks (Contid.)
deposits, now being withdrawn at rate of 255 per yr:ar.
He :Ldvised tinE the bold course.
Jan. 11, 1932. 41 (1)
See — °nen market rolicy.
C.S.H. said he favored ,sivine; power to buy commercial paper in the
open :market, not in competition with member banks, but to help
them in times of stress; that when confidence returned the
member banks would buy such paner back from F.?. banks; th•t
the first draft of P.R. Act empowered P.R. banks to buy even
from indiviauals but later this was olaitted.
Gov• Seay asked if he meant that P.P.• banks should. buy com:::ercial paper
from banks.
O.S.H. said he would certainly 47vor allowing Federal reserve banks
to buy commercial paper from member banks, in times of stress,
A.thout their indorsement; that the Board considered such a plan
durino the war.
Aril 22, 193?. 122, 123.
C.S.H. introduces a resolution c•tllin7 for a survey of conditions
by each Federal resrve bank.
Gov. Meyer objected to word "survey"
Finally a telegram was sent each Federal reserve bank toform a
District Comittee.
May 23, 1332. 168.
C.S.H. agreed with Miller th,A we should have a conference in
Washington to nrepare a program:ae for the District Ca..ittees.
Gov. Meyer objected and said each Federal reserve bank would prepare
its own prozraume.
May 23, 1932. 169.
Miller is working on a circular to each Federal reserve bank
forbidding payment out of gold exce-pt to foreign depositors.
June 4, 1932. 192.
See — Disco-Jilts, Refusal Of.
Glass bill
Federal Re.2erve Board.
A-flroved renewal of Austrian and Hun..-,arian credits.
Jan. E, 1932, 39.
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Federal Reserve Bank of St. Louis
63.
Fileral Re- rve Beard (Contld.)
Board voted to wire Gov. Cal.
.-ans to ask the parties in the
Transamerica Corporation controversy to aee to a
Comlittee of 3, the 3rd to be a-Typinted by the Reconstruction
Finance Corporation or the Federal Reserve Board, to iron
out the differences.
Feb. 1, 1932. 52.
Board voted not to send its comments on the 3.lass emergency '3111,
in absence of reouest from the Senate Sub—Co:-Littee.
Aye: Gov. Meyer, Magee
No: C).S.H., niller, James
Feb. 15, 1932. 76.
Board anroved Charge imnosed on Atlantic National Bankfbr
exercising its subsidiary.
voted No.
Feb. 15
• , 193° 76•
Con,_;* Howtri —ttacks Board at a dinner at Woman's rational Democratic
Club.
H.P.H. floored him afterwards.
Aril 11, 1932. 122.
See also:
Anglo—American Trust Co.
Burgess
Chase, Howland
Chase Nati Bank.
CanAttees, District
Committess,
Community Chest
Conferences
Dawes, Charles G.
Discomt rates
Domination
Economy bill
Eligibility
Federal Advisory Council
Federal Reserve Bank, N. Y.
Federal reserve banks
Federal reserve notes
Glass bill
GlaFs euergency bill
Goldenweiser
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Federal Reserve Bank of St. Louis
6.4.
Federal Reserve Board (Conti
d.)
See also:
Governors Conference
Hamlin, O. S.
Harrison, Floyd
Harrison, 1-ov.
Hoover
Lichtenstein
Member bank collateral not
es
Meyer, .lov.
Miller, Adol)h
Mills, Ogden
Morrill
Open market policy
Paulger
Reconstruction Finance Cor
noration
Secretary of Treaviry
Security affilietes
Smead
Title, Board member
Transamerica Corporation
Wyatt
Federal reserve credits
Board voted to renew Aus
trian and Hungarian creaits.
Jan. 8, 1932. 39.
Federal reserve Chief Exa
miner.
38, 197.
See — Paulger
Federal reserve notes
Gov. Harrison said he had
suu;ested to Glass an araenL
aent
providing that Federal re.
erve notes may be issued
against any collateral whi
dh FeAer.,1 reserve banks
are authorized to requir
e, — specifically, Govt.
securities.
He said the necessity
of Pledging ,
old in place of cmmaencia
l
paper was becoming a menace
to the System.
Ja-1. 11, 1932. 41.
0.-.H. said we ,ould not
ask Bank of France to withdr
aw her
deposits unless an ame
ndment were passed author
izing
pledge of Government bon
ds as collateral for.
Jan. 19, 1932. 44.
O.S.H. told Glass that if
any collateral were nec
essary for
Federal reserve notes,
he should prefer eliible
paper
to Govt. bonds, but tha
t this was hardly the tim
e to
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Federal Reserve Bank of St. Louis
65.
Fec4 tral reserve notes (Contld.)
eYeapt them from all collateral, aith
o ..S.H. believed
none was neces' ary as they are a fir
,t lien.
Jan. 28, 1932. 50.
At Gowrnors Conference some thought
the gold behind. F.R. notes
should be drawn down at once unde
r the Glass emergency
bill.
Gov. Meyer sugr7ested drawing down
gold enouLh to keep the free
r.,old at 500 million.
Others favored doing nothing unti
l an e2ergency should arise.
C.S.H. op)osed takin7 it down at
once.
Feb. 24, 1932. 81.
Willis draft for Gla?s Committee
ezterried domestic acceptan[-es as
V
collateral for P.R. notes.
Mar. 14, 1932. 92.
Federal Reserve System.
Gov. Harrison attacked Willis for
his untrue and unpatriotic
articles attaCkin.
Dec. 2,1931. 1—A.
Miller said that some years age Hoov
er asked him to go over
his annual message; that it cont
ained extravagant praise
for the P.R. System; that he, Mill
er, told hLra he was
ashamed of the P.R. Sys tea; that
by its open market operations
it ercourarred a secondary speculat
ive movement in 1931; that,
later, Hoover told him the F.R. Syst
em was a failure.
Feb. 9, 1932. 59.
0..H. criticises Gov. Harrison
's exchange of cables with Gov.
Norman for disclosing policies, pres
ent and future, of the
Federal Reserve System without
previoUr authority from the
Board.
April 19, 1932. 149.
C.S.H. fears that Gov. Harrison's
presence at White House at a
conference with Republican lead
ers, may be used as basis for
a charge of nolitical work on
Gov. Harrison's port.
June 5, 1932. 193.
Ficry, Mrs.
Bishop Lawrence, with his daughter
s, Mrs. Slattery and, called on us.
Mily 6,1932.
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Federal Reserve Bank of St. Louis
66.
Finley, David C.
Attends decoration of Mr. Wilson by Polish Ambas
sador and lunch.
Dec. 16, 191. 17.
retcher, John
Henry Wright said that, the old Postmaster at Wef'tf
ord died y ars a -0.
Jan. 3, 1932. 37.
Flijat from the dollar
Golenweiser sac's there is no danzer fram cold expor
ts;
danger is from, through hoarding.
June 9, 1932. 198.
:at the only
Foreign depositors
Miller is nrearing for considerati:m a drift direct
ing- F.R. banks
not to pay out gold excent to meet demands
of.
June 4, 1932. 192.
Foreign loan policy
Glass said C;ov. Harrison's, had practically bankr
upted the
P.R. Bank of N. Y.
Jan. 28, 1932. 49.
Fort Myer. 187
See -Myer, Gertrude
France
43, 44, 45, 46.
See - Bank of. France
Aastra-German tariff a7reement.
Frvnkfurter, Felix
140, 143, 144.
See - Chase, Hovland
Fraxer, Mrs.
We lunch with.
Jan. 10, 193. 40
Lund.
= with us to meet Count John Bentink and Baron
ess Van Heckeren.
May 22, 1932. 167.
Free •:old. 81
See - Federal res rve notes
Freeman, Bishop 9
See - Anderson, Lam
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Federal Reserve Bank of St. Louis
ut•
Friction
See - Dawes, harles G.
Meyer, Gov.
Frozen German acceTytances
C.S.H. feels that the 30 millions of, held
by Warburg's bank the International Acceptance Bank - is
the cause of Warburz's
illness.
Jec. 17, 1931. 21.
Furlou4, Economy bill
Senate passed economy bill Lst Satu
rday strikin. ot the H.R.
sal:Jry cut and substituting an enforced
30 day furlough.
June 9, 1932. 197.
Furniture, Antique
C.S.H. sent to H.C. Valentine & Co.,
RiChmond, a Tihotograph of
our side board in :attapoisett dining
room.
The firm replied, Dec. 21, 1931, that
:
"The nhotorra2h shows the nicture of
a very fine
Sheraton sideboard, and under normal cond
itions it is
quite exnensive, but as antiques are
worth now, the
price has greatly shrunk as you doub
tless know. If
the Board is ori7inal throuzhout and
is an antique,
the retail -rice -ould be about
$1500."
On Dec. 12th the finnlrote that the
nrice of their side board
of which C.S.H. had seen an advertis
ed htoFranh, was $2250
but they would sell it for $1100.
This latter :iece is exactly like
C.S.H. Swan Tavern, Yorktown
Sideboard.
Dec. 22, 1931. 29.
Last week C.:).H. wrote Valentin
e & Co. that Koopman once valued
his :,:attanoisett Sheraton sideboard
at $2500, but that he
might be willing to sell it for
$2000.
Dec. 29, 1931, Valentine relied
that no doubt the sideboard
was worth $2500 some years ago,
but under present conditions
it was almost im_?ossible to secure
a reasonable price, and he
did not believe it would bring
$2000 today.
Dec. 29, 1931. 34.
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Federal Reserve Bank of St. Louis
68.
Garner, Con.
Attacks Hoover and Re2ub1ica
ns for claiLlinc credit for
emergency
legislation which was entire
ly non-partisan.
reb. 21, 1932. 79.
Miller said that statement
of, that if Hoover would kee
p quite for
30 days, the situation wou
ld cicar up, while net in
good taste,
yet was in part justified
.
Lay 23, 1932. 170.
lennan acceptances 21.
See- Warburg, Paul.
Sennany
See - Curtius
Austro-German tariff agr
eement
Dulls
Silbert,
We meet, author of Inlirr
ors of Washington" at dinner
with Robert
Lincoln O'Brien.
April 7, 1932. 118.
Sifford, ConD,
Writes C.6.H. as to cranbe
rry loans. 78.
Gillett, Sen.
Thanks C.S.H. for humoro
us letter of Sen. Hoar to
C.S.H. as to
his lack of ap:)reciatio
n of music, in relation to
Prof.
Paine's opera of Amara.
Says he will use it in his
book..
Lay 31, 1932. 185.
(Pace 68-A follows)
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Federal Reserve Bank of St. Louis
SLABS.
GLASS BAITXING BILL. GLASS CURRITCY
BILL.
GLASS 2.,::111.117CY TILL.
buse of Federal reserve facilities
See — Federal reserve faciliti
es
Section 3
cce3tances
See — Danectic acce-)tances
uinistration, Hoover. 81
See — Azreaaent
Hoover
-,dvances 24
See — Lleraber banL: co11ter-1 note
s.
Agreement, Administration
Glass emergency bill. 47, 52, 57, 65,
81.
Amendments, War. 24.
Associated Press. 81.
Bond sc,cured notes. 20
Burgess. 26, 33, 34, 37, 36, 39,
43, 46, 53, 5
78, 67.
'Central bank. 4.
Col'ateral security, F.H. notes..
23, 78.
See — Federlrc,srve notes.
pa-)er. 20.
Cam)lication. 78.
Conferences. 7.6, 47, 51, 52, 53,
54, 55, 57, 65, 72, 7.
Confirmation, Sento. 10
Cooperative marketing associations
78
Crisis, Economic. 24.
Cuztamers notes. 2.
Debentures. 12, 13.
(Pace 6843 follows)
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Federal Reserve Bank of St. Louis
68-B.
Democrats. 71.
Discounts, Refusal of. 6, 64.
See - Sec. 3,
Diversion
See
Undue diversion
Domestic acceptances. 78.
Domination. 25, 51, 87.
Economic crisis. 24.
Eligibility. 9, 13.
Eligible paper. 12, 23, 73.
See paper
Emergencies. 13.
Maergency. 37
Emer:ency bill agreement
See - Agreement
Emergency power. 57.
Pederal Advisory Council. 9, 70.
Federal Reserve Act. 49.
Federal reserve bank. (See F.R. banks)
78, 89.
Pederal Reserve Bank, N. Y. 19, 25, 86.
Federal reserve bank officials. 74.
Pederal reserve banks. 19, 49, 73, 77, 80,
89.
Pederal Reserve Board.
6, 17, 19, 21, 26, 27, 30, 35, 36, 40, 43, 46, 49, 51,
53,
54, 55, 56, 57, 58, 60, 62, 65, 66, 67, 72, 74,
76, 77, 85, 86,
87, 89.
Pederal reserve credit. 50.
Pederal reserve facilities. 49, 68, 75.
See - Sec. 3.
(pare 68-0 fellows)
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
68-0.
Federal reE;erve notes. 14, 23, 73, 78.
Federal Bezerve System. 12, 16, 49,
78.
Five hundred thousand 1 2.ars. 67.
Foreign loan Dolicy. 19.
Free j
.:old. 73
Garner. 71.
Glass. 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15, 19, 20, 21,
22, 24, 25, 27, 28, 30, 35, 38, 40,
41, 42, 43, 44, 45, 46, 47, 48
59, 53, 54, 57, 62, 63, 64, 65, 68, 69,
72, 78, 79, 80, 82, 83,
85, 86, 87, 89.
3.1ass banking bill.
1, 5, 7, 15, 16, 17, 18, 19, 25, 26, 27,
28, 29, 30, 31,32, 33
34, 36, 37, 40, 41, 42, 44, 46, 47,
64, 75, 78, 81, 82, 83, 84, 85,
88.
Glass alergency bill.
9, 19, 47, 58, 59, 60, 31, 62, 66,
67, 69, 70, 71, 73, 74, 75,
76, 78, 85.
Gold exports. 73.
Gold, Free. 73
See - Federal res-rve notes
sGolden-.eiser
18, 26, 33, 34, 35, 37, 43, 46, 55, 58,
65, 78, 85.
Government securities
14, 23.
See - Federcl reserve notes.
Governors. 9, 73.
Greenbacks. 20.
Hamlin, C. S.
7, 9, 10, 11, 12, 16, 1?, 20, 21,
23, 24, 27, 29, 30, 31, 32, 33
37, 38, 40, 41, 42, 44, 46, 47,
48, 49, 50, 51, 56, 58, 59, 61,
62, 62, 64, 66, 67, 68, 70, 73,
74, 77, 76, 79, 85, 86, 87, 89.
Harrison, Floyd. 26, 55.
Harrison, Gov. F;IR. Bank, Y. Y.
1, 8, 11, 13, 14, 19, 20, 26, 40,
64, 72, 73, 77, 85.
(pace 68-D follows)
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Federal Reserve Bank of St. Louis
68-D
Hoover, President
3, 41, 45, 47, 51, 5?,, 53, 54,55, 57,
,35, 69, 71, 78, 81.
IN.11, Cordell. 29.
Janes. 10.
"Joker"
78
LombLad loans. 37
Luce, Con. 28.
LicOlelland. 15.
L:e..cee. 10, 59.
"Likm Sec. 16, P.R. Act. 89.
Licadoo, W. G. 4.
Member bank 15-clay notes.
2, 12, 20, 24, 63, 78.
Ileraber banks. 16.
1.Iemorandum, 0.6.H. 56, 64.
Liyer, Gov.
2, 19, 26, 35, 46, 53, 54, 58, 61,
66, 67, 70, 72, 73, 77,
85, 86, 87, 88.
Dr.
6, 21, 26, 41, 42, 43, 44, 45, 46,
49, 50, 60, 62, 63, 66, 67,
68, 69, 78, 79, 85, 86.
Ogden
26, 58, 61, 87.
Chester
46, 47, 48, 51, 53, 55, 75, 83.
National bank rotes. 20.
New York banks. 41.
(Pace 68-3 follows)
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Federal Reserve Bank of St. Louis
68-E
Now York Journal of Cormerce.
1, 15, 36, 52, 53, 83, 84.
Nom-elizible paper. 73.
Nom-member banks. 57.
Noyes, A. D. 4.
One year limitntion. 57, 58, 61, 67.
Penalizinc member banks.
See - Rediscounts, refusal
Section 3.
Percentage, Sleculative loans. 21.
Platt. 28.
Politics. 62, 78.
Power
P.R. banks. 89.
Federal Recorve Board. 40
Real estate loans. 78.
Reconstruction Finance Corporation
2, 11, 12, 13, 46.
Rediscounts, Refusal of.
6, 32, 34, 39, 40,41, 68, 75, 89.
Refusal of discounts
See supra: Rediscounts
Replations. 73, 77.
Reports
Burgess.Goldenweiser.
33, 35, 36, 37, 38, 43, 46.
Pederal Reserve Board. 85, 87.
Republican. 71.
Republican politics. 62.
(Par,.e 68-P follows)
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Federal Reserve Bank of St. Louis
68-P.
Reserve Camraittee renort. 1, 78.
Resignation. BO.
Revolving real eastate loans. 80.
Revolving real estate loans. 78.
Soc. 3, Glass banking bill.
16, 32,34, 37, 39, 40, 41, 42, 46, 48, 49, 50, 36,
63, 64, 68, 75, 78.
Soction 9, Glass banking bill. 37, 50.
section 10-A Glass emergency bill. 74.
Section 1043, Glass euergency bill. 74.
S-)eculation. 32.
Spnulative loans. 21, 49, 63, 78.
S.)eculative uses. 49.
Sur)lus. 73.
SUb-cammittee.
See - G1L..ss
Townsend, Sen. 84.
thdue use, P.R. facilities. 49.
United States Senate
See - Confirmation
James
Eagee
Use of Peaeral res:ne credit. 50.
Veracity, ISSIIB of.
84.
Walcott, Sen.
55, 56, 68, 78, 79, 80, 84, 85.
Wall Street banks. 64.
War araenduents. 24.
War measure. 24.
(pare 68-G follows)
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Federal Reserve Bank of St. Louis
Warehouse reeei-jt. 78.
Warninz. 78.
House.
See — Conferences
Hoov?r
Wil is, H. P.
1, 8, 22, 31, 78, 80.
Wyatt
26, 27,33, 55, 76, 80, 87.
(.2a,--e 68—H fo 'lows)
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Federal Reserve Bank of St. Louis
68—H
:71Llos, Glass bill, Glass alergenc:
1.
Gov. Harrison said the IT. Y. Journal a7 Comrce published
the Reserve Committee relort before it ':as released;
that he believed Willis L
,ot a cayy fran Glass and gave
it to r. Y. Journri o - Commerce in violation of Glass's
confidence.
Dec. 2,1931. 1-3.
2.
Glass called on C.S.H.
He :aid Gov. Meyer was urging him to agree to have debenturec
of the proDosed Reconstruction Finance Corporation made
eligible as collateral :or member balik: collateral notes
and for austo_ers notes; that Gov. Meyer only recently
told him he as absolutely an )osd to this.
Dec. 13, 1931. 19.
(page 69 follows)
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Federal Reserve Bank of St. Louis
69.
:lass, Glass bill etc. (Contld.)
3.
Glass said he had talked with Hoover sPveral times
durin
the last three weeks, the la t time only two days
ago;
that Hoover was densely i'norant, itifully
i - norant, on
bankin ouestions.
Dec. 16, 1931. 19.
4.
Glass said that the statement of ::cAdoo in his
book that he
really did not want the central bank he advocate
d to Glass,
and that when he told Glass he wanted it there
was a
"twinkle in his eye", - was a deliberate lie;
that he knew
that McAdoo pleaded for it with Noyes of the
N. Y. Times
and begged him to suDport it.
Dec. 16, 1931. 19, 20.
5.
Glass said the Sub-Committee would cooperate
with him in every
way and that they would be unanimous.
Dec. 16, 1931. 20.
6.
Glass said he had adopted :Oiler's draft :tyi
ng power to
Federal Reserve Board to refuse discount
s.
Dec. 16, 1931. 20.
7. Glass said he would like to 7o over the
whole pro-)osed bill
with 0.S.H. in conference.
Dec. 16, 1931. 20.
8.
Glass said Gov. Harrisonls charges vs. Willi
s were not true;
that he had carefully investigated the matt
er.
Dec. 16, 1931. 20.
9.
Glass called up C. .H. at 7:15 p.m. and said
the emergency
bill was before his Committee and he seem
ed much disturbed
about it.
C.6.H. said he was studying it and was inclined
to offer
no objection, in view of present critical
conditions.
C.t.H. told Glass the Federal Advisory Coun
cil and the Governors
favored broadening of eligibility and that
the sr)irit
of their recommendations would seem to incl
ude the changes in
eligib'lity covered by this emergency bill
.
Glass asked C.S.H. for a co.74T of these
r,-icomrAendations.
7)ec. 17, 1 931. 23, 24.
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Federal Reserve Bank of St. Louis
70.
Glass, Glass bill etc. (Contli.)
10.
Glass tele)lhonee C.S.H.
Jze-lee and :lace° had been
confirmed by the Senate.
Dec. 16, 1931. 4.
11. Glass expreseed to
deep disaneroval of the
Reconstruction Finance bill. He said it leoked as if
everythine the administration wanted would be -put thru
regardless of its ef-:'ect on the P.R. System.
said that in the present fearful emergency he felt
the bill mie;ht do eood, altho he agreed with Glass
that it should be temporary and not permanent.
12.
Gliss said it would dump two billions of d, bentures into
the P.R. System.
C.E.H. explained that advances aeainst member bank notes
collateralled by such debentures would carry a hi-her
rate and that, consequently, the membc.r banim would
offer other elieible paper before the debentures.
Dec. 13, 1951. 24, 25.
13. 0..H. met Gov. Harrison in the Treasury eorrid
or.
He said he had just been before the glass Sub—Co.e.ittee
on the Reconstruction Finance bill; that Glass would
fight the elieibility provisims; that he agreed with
Glass; that he would prefer to have the power to take
debentures lireited to emercencies.
Dec. 19, 1931. 5, 26.
14.
Gov. Harrison told 30ard. he had s-*.7-ested to Glass an
Amendment nermItting issue of F.R° notes against any
collateral which F.R. bann are now pereitted to
acquire,
meanine specifically, Goverment securities.
Jan. 11, 1932. 41.
15. N. Y. Journal o - Comtlerce e
- ubthhes contents of Glass
Sub—Cone,ittee retort.
McOlelland called un Glass's secretary who said no calies
would be ready until afternoon.
Jan. 22, 1932. 47.
16.
C.S.H. eot a copy at 4 n.m. very crudely drawn.
The rediscount clause would force every member bank
to
withdraw from the F.R. System. Jan. 22, 1932. 47.
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Federal Reserve Bank of St. Louis
71.
Glans, Glass bill etc. (Contld.)
17.
The vihole force of the Federol Recy.rve Board s2ent the aay
in going over the G2ass bill.
Jan. 24, 193. Sunaay. 48.
18.
The Glass bill is filled with contraction features.
See Goidenweiserls memorandum. Scran book.
Jan. 25, 1932,. 48.
19.
Glass calleO un
He was very bitter towards Gov. Hr.rrison ani the F.R. Bank
of :7.Y.
He said that Gov. Harrison, by his foreign loan policy, had
practically bankrupted the P.R. Bank of I.Y.
Jan. 28, 1932. 49.
Glas- told Gov. Meyer he would like Bordls camnent on
the Glass
Board sent circular to every F.R. bank receiving replies from
all except F.R. Bank of Y.Y. '
Did not send these to Glass, as his bill had been temnorarily
disnlaced for emergency bill.
Jan. 23, 1932. 49
See infra, SO.
20.
Glass was very bitter as to bond secured member bank
collateral notes, sayinj that they were 7reenbaCks to
all intent and nurpose; that if we are to have a bond
secured currency it would be better to let the national
banks issue it.
C.S.H.advised nostnoninr the r.uestion for the present.
Glass said he had agreed to give the banks two years to
nut ca,:lercial paner behind the member bank colLlterta
notes in lieu of Govt. bonds; that Governor Harrison
told him the banhn had plenty of cmaercial paner and
could make the exchange withh3 months.
Jan. 28, 193n. 49.
See — Meyer, Gov.
21.
C.S.H. told Glass he was opposed to having the Board fix a
Percentage for s-)eculative loans.
Glass replied that Miller .:rote this rovisi.Pal
Jan. 8, 193. 50.
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Federal Reserve Bank of St. Louis
72.
Glass, Glass bill etc. (Contld.)
22.
Glass defended Willis's draft sa7ing he had. mere
ly nut in
share what many banks had long ago mild
ly suzTested.
Jan. 28, 1932. 50.
?3.
C.H. said that if any collateral was need
ed by F.T. notes,
which he doubted, he preferred eligible
pager
thor
than ',-overnment bonds, but that this was
not the time
to make radical ch.m:es.
Jan. 28, 1932. 50.
24.
',Ilass said the power to ma.%e advances
on member bank collateral
notes .ms granted as a 1,1-.r ileasure unde
r an aP:reement to
reseal it when to war as ov-r:
C..H. said we are nor in an economic
war causing greater
su:fering than the world war.
Jan. 28, 1932. 50.
25.
Glass said his bankinp bill was aime
d at the domination of
the P.R. Bank of N.Y.
Jan. 78, 1932. 51.
26.
Gov. 1,:eye r told Board that the Glas
s Sub—Committee had. asked.
Golderreiser and Burgess to sit with thea
-,nd go over the
Glass bill.
He did not mention the r'onerence at
his house yesterdayat
which Gov. Harrison (or ymzibly Floy
d Harrison), Buress,
Goldenweiser and Wyatt were nresent.
Wyatt said that while in Ogden
Mills's office he heard him
call up Gov. Harrison and direct him
to send Burgess down.
Neither Miller nor any of the Boar
d knew of this.
Feb. 1, 1932. 52.
27.
wished to send Glass a coy. of Wyat
t's analysis of
the Glass bill, but as all of the
Board objoted
said he would abide by its decision
.
Feb. 2, 1932. 53.
2E.
Robert Luce told Platt that Glasr;
woA.d be 5-;iven a week to
straiten out his bill, and that
if not done by that time
the matter would be taken out of
his hands.
Feb. 3, 1932. 54.
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Federal Reserve Bank of St. Louis
73.
7-las -; bill (Contld.)
9.
v. .Ho goes over Glass bill briefly with Cordell Hull.
Feb. 5, 1932. 53.
30. 0..H. can not understand how Glass could have rc,orted his
ban7cing bill without first having consulted the P.R. Board.
Feb. 5, 1932. 55.
31,
C.S.H. believes Willis has "out it over" on the Glass Sub-Committee.
Feb. 5, 1932. 55.
32.
0.S.H. sent the aay in Dre7yaring a new drft of Sec. 3, Ctlass
bill,
as to control of sl)eculation and nenalizine of membcr banks
abusinr- F.R. facilities.
Feb. 8, 1932. 56.
33.
C.S.H. called un Goldenweiser and asked when his and Burgess'
renort to Glass Sub...committee would be ready. He said not
before tomorrow, S'Anday, night. C.S.H. said he wanted a
eaffy as soon as -oossible, and Goldenweiser said he would
give him one.
Feb. 6, 1932. 56.
34.
Wyatt told C. S.H. the other day that Goldenweiser Commit
tee hacl
decided to recommend strikinc. out of Glass bill everything
relating to the power to oenalize banks for abuse of F.?,
facilities.
Feb. 8, 1932. 56.
35.
C.S.H. calls Ir)
. Goldenweiser and asks if his renort on Glass bill
is ready. He said Yes, th -f., he had criven a ca2y to Glass
Sub-ccuittee and one to Gov. Ideyer.
C.S.H. ask:ed if the other Board members were not to have
conies.
He said. Yes, nroba-oly at this time - 4 o.m. tomorr
ow.
C.S.H. said he wanted very much to study it tonight and asked
him to send a coy to C.S.H. at Ha7-Adams House. He
said
he thouent he could do this.
His hesitant manner satisfied. C.6.H. that =ov. Meyer
rfust have
directed him not to show it to any member. This seens
extraordinary to C.S.H.
Feb. - 1932. 57.
36.
The N. Y. Journal of Commerce stated this morning that
the
recommendations of the F.R. Board 'Gould be in the hands
or
the Glass Com_ittee this morning; also that Glass “ould
hold up his bill until the administration officially
presented to him its objections to the bill.
P
1T7,7. 5A.
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Federal Reserve Bank of St. Louis
74.
Glass, Glass bill etc. (Contld.)
37.
Goldonweisr loans C.S.H. for over ni7ht a co-)y of his and
Burgess' report on Glass Sub—committee bill.
The reort advised droDoing many of the contraction provisions
of the bill.
It recanmended stri'<ing out Sections 3 and 9, giving pow3r to
s7.1')end offending banks from F.R. facilities.
It favored Lombard loans in tines of stress and amert:ency.
Feb. 8, 1932. 58.
38.
C.S.H. met Burgess at lunch at Cosmos Club. He said Glass
went over their report in very reasonable frame of mind,
accepting some sucgestions and considerin:7: others.
Feb. 9, 1932. 58.
39.
C.S.H. told Burgess there must be a vote in Conress on the
power to penalize offending banks.
Burgess said it was distinctly nossible that some such nower
might be agreed. upon.
Fel.. 2, 1932. 57,
40.
C.S.H. reread Gov. Harrison's testimony before the Sub—committe
e
ana found that he specifically presented to Glass and favore
d
a grant of power to penalize offending
banks; that he said
he had advised the Board when he was its counsel, that the
power existed nor; that the explicit grant
of such power
would strengthen the Board.
Feb. 9,1932. 59.
41.
Miller told C.S.H. that Hoover hated the N.Y. banks but also
feared them, but that no one could tell what his attitude
would be as to the pow(3r to penalize them under Sec. 3
of the
Glass bill.
Feb. 9, 1932. 59.
42. Miller said Glass asked him to opal last night, and
he spent
two hours 71th him, and went over the rre?osed Glass bill.
Miller did not say wh t he said to Glass.
Miller sid Glass asked as to C.S.H.'s views and nartic
ularly
as to Sec. 3.
Miller
ested to Glass to as::
QS.H.
for his views in general
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Federal Reserve Bank of St. Louis
75.
lass, /lass bill etc. (Contld.)
42. (Contsd.)
but that as to penalizinp. the banks, C.S.H. stood 7:ith
Glass, although he had. made a draft rewriting Sec.
3.
Feb. 10, 1932. 30.
43.
Glass told Miller that he understood that the P.R. Board
had authorized Burtfese and Goldenweiser to nresent,
by
their re-eort, the views of the F.7:. Board.
Feb. 10, 1932. 60.
/1.4„
Glass asked Miller to subrlit his views on the bill.
Miller said C.S.H. should send him his views.
said he would if /lass Lske_ for them.
Miller said
could consider, from 7ihat Glass said to
him, that he had asked for his views.
Feb. 10, 1932. 60, 61.
45.
Liller said later that Glass had tele_,honed that
he could
meet Miller this morning, as he had . :Teed to do,
as he
had to meet Hoover at the White House.
Feb. 10, 12,32. 61.
46. 0..H. then wrote Glass a letter stating that
Burgess and
Goldenweiser had no authority to express any views
except
their own in their report; that he did not know nor,
so
far as he knew, did any member know, '.hat the
report
contained "xfore it had been ,
:iven to the Glass Com:Iittee.
C.S.H. said at first in his letter that while
many of their
suestions v;ere helpful, he was unalterably orly:osed
to
their suggestion that Sec. 3 be stricken out.
Miller anproved this letter.
Gov. Meyer was over at the Reconstruction Finance
Coreoration
so C.S.H. could not show it to him.
C.S.H. then showed it to Morrill Who suifTe
stei that he omit
the reference to Sec. 3, for the followin,- reason and
C.S.E.
sent the letter with the part omitted.
Feb. 10, 1932. 61, 62, 63.
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Federal Reserve Bank of St. Louis
76.
Glass, Glass bill etc. (Conttd.)
47. Morrill told C.S.H. that at the Conference called by Hoover
at the White House, at which qlass was nresent, an
ap.reement was readhed to ivide the Glass bill into two
parts, — 1. emer7ency lej.slation; 2. the rest of the bill;
tilat it was agreed to nress 1 and to postpone 2 for the
nresent.
1V1-,. 10, 1932. 62.
48. C.S.H. struck out the part objected to by Morrill on the
7round that consideration of Sec. 3 had been postnoned,
and Morrill anoroved the letter.
C.S.H. said in the letter that if Glass wanted to confer with
him at any time he would be ready and glad.
Pet. 10, 1932. 62, 63.
49. Miler shows
a draft defining F.'. facilities.
C.S.H. said it would debar any bank carrying a single speculativloan from discountinE eligible naner.
Miller finaLy aEreed to insert that the nriniary purl)ose af the
act was to care for business, and also to insert the word
"un.:Luell, to which :Aller agreed.
It then read:
The 7)ritary nurDose of the P. . Act is defined to be
the accommodation of industry, trade, and
agriculture, the nrotectIon of denositors of
meMber banks and the maintenance of economic and
financial stability in the U.S.
The Federal Renerve Board and every F.R. bank shall
therefore exorcise care to protect the resources
of the P.. System from unaue diversion into
security financinc and speculative uses.
Feb. 10, 1932. 63, 64.
50. Miller later added another clause amnowering the Board to
frame regulations as to the use of P.R. credit.
Feb. 10, 1932. 64.
C.S.H. finally accented the —hole draft of
authorized him to say so to Glass.
and
C.S.H. said he res7rved the right to send lass his own
substitute for Secs. 3 and 9.
Fe). 10, 1932. 64.
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Federal Reserve Bank of St. Louis
77.
lass, Glass bill (Contld.)
51. How norrill knew of the above White House agreement
is
a mystery to q.S.H.
Evidently outside forces are at work dominating or setti
ng
aside the Board.
Feb. 10, 1932. 64.
52. N. Y. Times 7ives an account of the abov,
,, White House r.greement.
Feb. 11, 1932. 65.
53. N. Y. Times says that after the Hoover conference
, there was
a conference between Glass, Gov. neyer, iorri
ll, Burges.7,
et al. No member of the Board was informed of this%
Fbb. 11, 1932. 35.
54.
Gov.neyer tells Board about the Hoover breakfast
agreement as
to emer7ency legislation, at which Glass was
present.
Feb. 11, 1932. 65.
55.
Wyatt said that ,,fter the White House agreement
there was a
conference in the Board room at which Sen. Wolco
tt,
Floyd Harrison, norrill, Goldenweiser, :-md he were
present.
Where was the Federal Re:- erve Board?
Feb. 11, 1932. 65.
56.
C.S.H. sends to Glass a draft of revision of Sec.
3,
a
memorandum stating that it reprecented merely his
own
personal views and not those of the Board, no
member of
which had. seen it.
later gave a co zr to each member of the Board
.
Feb. 11, 1932. 66.
57. There is a disnute as to what was ae,ree
d 'ion at the Hoover
conferene.
Glass insists it war, agreed that the emer.3.ency
powers should be
limited to one yr.
The otherecontend that it was a7reee that the
Board should be
7iven power to e:Aend this time for cause
.
Feb. 12, 1932. 66.
58.
Goldenweiser told O.S.H. that Ogden nills,
Gov. Heyer ornd he
went before the H.R. Corrraittee to urge
extension of the
one year
Gov. neyer never told Board of tlisI
Feb. 12, 1932. 67.
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Federal Reserve Bank of St. Louis
78.
/lass, Glass bf_11 (Contld.)
59. Magee comnlained to C.S.H. that he 'mew not%line of
.ihat
was 7oing on as to the amer:ency b 11.
said he knew as much as he didl
Feb. 12, 193-* 67.
60. 1:iller said he ht not been consulted either;
that he really
preferred not to be consulted; that those resnons'fc
Le
must fear the responslbility.
The Board has practically ceased to existi
Feb. 12, 193. 67.
61.
While at 3.0v. Meyer's house at the receptio
n to Winston Churchill,
Gov. Meyer, before C.S.H., telerihoned 0L7den Mills
and
discussed ,-)lans for approadhing various members
of H.R.
and Senate to induce an extension of the
one year time limit
of the Glass emergency bill.
Feb. 12, 1932. 70.
62.
The Glass emergency bill is being -?ressed
as an imnistration
measure, without any consultation with the F.R.
Bord.
believes this is
Glass hesitates, - he looks on
the Whole emergency
as Reoublican politics, - vhich of
late it certainly has became.
C.S.H. believes that if he and Miller had
been pushed forward
and not ignored, the loath of the emergency
bill would have
been easier.
Peb. 12, 1932. 70.
63.
Glass called up C.S.H.
He said he hr.d recr,ived C.S.H.le draft
of Sec. 3; that Miller
was to 7o over his draft with him tomor
row afternoon.
He said 0.5.H.'s draft was weaker than
his, - especially the
word "primary".
O.S.H. said that Glass's draft literally const
rued, would shut
the discount window to anzr ban.: carrying
a sincle speculative
loan.
Glass denied this, saying that a bayjk could
discount even if 50;o
of its loans were sneculative, but that
it simply could not
increase said loans while it had out
its collateral member
bank .1Jvances nnenalty of losin tae
-rivile-e.
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Federal Reserve Bank of St. Louis
79.
Glass, Glass bill etc. (Contld.)
63. (Contld.)
C.S.H. said he was referring to discounts, and that Sec. 3
should be chan:ed.
L;.S.H. said the nowr to penalize offending banks was of vital
Importance, to which Glass agreed.
Feb. 13, 1932. 72.
64.
Glass said the Wall Street banks through Gov. Harrison were
fighting Sec. 3.
C.S.H. pointed out that his memorandum to Glass accorranying his
draft of Sec. 3, pointed out that Gov. Harrison In his
testimony before the Glass Committee favored the right to
Close the discount window to offending banks.
Glass said Yes, bat Wall Street has forced him now to object
to it.
Feb. 13, 1932. 72, 73.
65. Glass said the Sub—committee never invited Burgess and Goldenweiser
to assist it; that an the contrary, Hoover told him at the
White House Conference that they were appointed to
represent the F. R. Board, adding that the administration
would stand behind and press for any amendment agreed upon by
Sen. Walcott, Republican, Glass, Democrat, and Burgess and
Goldenweiser, representing the P.R. Board.
Feb. 13, 1932. 73.
66. Gov. Meyer asked Board if it would take up and consider the
Glass
emergency bill.
C.S.H. asked if the Committee had asked the Board to report on
it.
Gov. Meyer said No.
Miller objected to considering it at all.
C.S.H. said we should consider it and later decide as to sendin
g
its conclusions to the Committee.
C.S.H.Is view prevailed.
Feb. 15, 1932. 74.
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Federal Reserve Bank of St. Louis
80.
Glass, Glass bill (Coat'd.)
67.
All of the Board, excent )ossiIly i11er, agreed that the
one year limit should be made extendable for another
year 1q7 a unanimou vote of the Board; also that the
limitation ot' relief to ban a under $500,000 c7)ital,
should be stricken out.
C.S.H. at first favored extending the limit to 1 million
dollars but Gov. lileyr pointed out that any limitation
would exclude big banks which h-ve to help n n—member
banks, and C.S.H. accepted this and fr-Nored no ltlit'tion.
Feb. 15, 1932. 74.
68.
Miller said alass, came to his home ye7terday but was called
away by Sen. Wolcott; that Slass was in a fairly nuiet mood;
that he sid he would carefully -710 over Miller's : nd
S.H.'s drafts; that he feared they wore not strong
enough; that there was an overwhelmin sentiment in
Congress favoring the disciplining of member banks for
undue use of P.R. facilities.
Feb. 15, 1932. 75.
69.
Millor said Hoover sent for him yesterday afternoon and that
before 1e:,
.vin.L4 Hoover said he hoped Miller would use
his influence with Glass towards straijitenin out the
emergency bill; that he had no doubt but that Hoover was
asked by some one to ma':e this request.
Feb. 13, 1932. 75.
70. Fed,- ral Advisory Coancil makes a few suggestions as to Glass
maergency bill, C.S.H. agreed to about all of them.
The Council voted at its se:Aar, te meeting yesterday to ask
Board to send them to Senate and H.R. Ca!mittee.
Ileyer toid Board he had already done this.
Feb. 16, 1937. 77.
71.
The Democrats are very bitter against the Republicans for
claiming credit for the emergency '7,111 and similar
legislation.
Garner attacks Hoover bitterly.
Feb. 22, 1932. 79.
72. Governors Conference.
Governor Meyer referrea to a conference yesterday at the
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Federal Reserve Bank of St. Louis
81.
Glass, Glass bill (Oontld.)
72. (Oontsd.)
Treasury regarding the anergency bill at which he,
Gov. Harrison,and Glass were present. None of Board
knew of it.
Feb. 24, 1932. 80.
73. Governors considered subject of regulations under Glass
anergency bill.
Gov. Harrison said the regulations should be:
1. Federal reserve banks may issue amerc:ency lonns
up to say lO(Y4 of banks suxplus, or
2. Decide each case as it should arise.
He favored 1.
As to substitution of Government bonds for gold behind
Federal reserve notes, some thought it should all be
done at once.
Gov. Meyer favored increasing the free gold to say 500 million
and kee-ping it there.
Same favored doing nothing until the contin ency arose.
C.S.H. nointed out that the anerz!ency bill was primarily passed
to:
1. Provide against inve,Aments in non—eli.#tle -paper
2. Obtaining a huge fund for open marbat operations.
So far as gold exnorts mere concerned the banks can discount
and their discounts would produce eligible paper Which
could be pledged against P.R. notes and the gold
collateral coUE be taken down.
C.S.H. said that to take down all the 7old at once would
look as if we feared we might have to use it for non—eligible
paner.
Feb. 24, 1932. 80, 81.
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Federal Reserve Bank of St. Louis
82.
Glass, Glass bill, etc. (Contld.)
74. Board considered a draft of letter to all member banks as
to procedure under Glass emergency bill.
This draft had been prepared by. a Committee of Federal reserve
bank officials.
The Committee, in the draft, used langauge to indicate that
Sec. 10-A - Group relief- was the pri.liary method of
obtaining relief and that 10,a was to be used only When a
Group was not feasible.
C.S.H. objected to this saying that 10-4 -,nd 10-B were absolutely
distinct, and that recourse to 104. was not a condition
precedent to relief under 10-B.
Mar. 9, 1932. 88, 89.
75. Morrill tells C.S.H. he is convinced that specific authority
should be given both to the Federal Reserve Board and
Federal reserve banks, under Sec. 3 of Glass bill, to
refuse discounts and penalize banks abusing Federal reserve
facilities.
Mar. 9, 1932. 89.
76. Board took up again procedure under emergency bill and ratified
all done yesterday.
Mar. 10, 1932. 90
77. Gov. Meyer said Gov. Harrison felt it was not proper for the
Board to write to Federal reserve banks, asking them to
communicate contents of the letter to their member banks.
All the Board took a different view, - that the proposed letter
merely took the place of a regulation.
Gov. Meyer said he would call up Gov. Harrison and ask him to
state specifically his objections.
C.S.H. raised no objection to this course, although it seemed
as if Gov. Meyer was afraid of Gov. Harrison's displeasure.
Max. 10, 1932. 90.
78. At the Hoover Conference on the emergency bill, it was agreed
that if Glass would consent to the emergency bill, the
administration woulC support the rest of the Glass bill
in so far as Sen. Walcott and Glass could agree.
They reached an agreement and Willis was asked to draft it.
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Federal Reserve Bank of St. Louis
83.
Glass, Glass bill, etc. (Contli.)
78. (Contld.)
Walcott went over it with Burgess, Goldenweiser and Wyatt,
and finally became satisfied that Willis' draft did
not represent his agreement with Glass.
Willis's draft made a few changes suggested by Burgess
and Goldenweiser, but not many.
Willis' draft retained Sec. 3 as it originally was,
disregarding both Millersand C.S.R.Is suggestions.
It retained the Originnl 1Llitations on loans on collateral
security, thus striking a blow at cooperative marketing
associations, warehouse receipts, etc.
It retained the provision for revaluing real estate loans
by the Cor.ptroller.
It gave uo, howeve; the prohibition against domestic
acceptances as collateral for Federal reserve notes.
It modified the provision that member banks must pay off
their 15-day collateral notes on increasing their
speculative loans, by adding a provision, - "after
warning by a Pederal reserve baniel.
It, according to Wyatt, retained a "joker" in the reserve
section.
March 14, 1932. 91, 92, 93.
79.
C.S.H. and Miller fear a serious row between Glass and
Walcott, which may bring the Federal Reserve System
into politics.
Mar. 14, 1932. 93.
80,
Wyatt said that at first it was rumored that Glass sm.0
Walcott had agreed; later, that they could not agree;
that Willis some time ago resigned but that Glass
persuaded him to reaain, telling the Sub-committee he
would not continua without him.
Mar. 16, 1932. 93.
81.
Associated Press says an agreement has been reached and
that the bill will be reported to full Committee and
reported to Senate today, and that the aaministration
will support it.
Mar. 17, 1932. 93, 94.
82.
Glass yesterday introduced, a new bill as chang3d by SubCommittee.
Mar. 18, 1932. 94.
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Federal Reserve Bank of St. Louis
84.
Glass, Glass bill etc. (Contld.)
83. N. Y. Times has interview with Glass explaining some
of the changes.
Glass said the Sub.e0ommittee voted unaninously to report
the bill to the full Committee and to support it in full
Mar, 18, 1932. 94.
Cam:Attee.
84. N. Y. Times also prints an interview with Senator Walcott and
Townsend stating that there are features in the bill
they can not sup ort although they do support much of it.
An unfortunate issue of veracity has thus arisenl
Mar. 18, 1932. 94.
85.
Gov. Meyer reads letter from Glass stating that Sub-committee
will be glad to have the Board's comments on the bill
introduced by him today.
Goldenweiser said Sen. Walcott asked him to say to Board he
hoped it would ask for a hearing before the Sub-Committee.
Gov. Meyer read draft of a proposed reply, to effect that
Board would send him a statement on the bill.
Gov. Meyer favored asking for a hearing, to which all agreed
except Miller.
C.S.H. suggested adding a clause tliat the Board ask for an
opportunity to be heard after its report is submitted.
All finally agreed as to this.
Miller said ordinarily such a request would be made as a
matter of course, but now he hesitated, fearing Glass
might thidk we were trying to delay the passage of the
bill.
said the Board's report would place a heavy
responsibility upon it, and that members should be given
the privilege of explaining in person any reasons they
might have, e.g. for dissent to any part of the bill; that
if all members agreed as to its report,very likely no one
would care to wppear before the Sub-canmittee, tut it
should be made clear that each member should have the
right to appear.
Mar. 18, 1932. 95, 96.
86. McClelland tells C.S.H. that Glass asked Gov. Meyer, at a
personal conference, forthe views of the Board on
Jan. 26, and that the Board sent a circular to all the
Federal reserve ban:m, receiving replies from all except
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Federal Reserve Bank of St. Louis
Glass, Glass bill etc. (Oontid.)
the Federal reserve Bank, N. Y.; that the Board did
not send their replies to Glass, because at that time
the Glass bill had been temporarily set aside for
consideration of the energency bill.
Max. 18, 1932. 96, 97.
See supra
lai.
87. Wyatt said he would like one week to prepare repor
t on Glass
bill for Board to send Glass.
C.S.H. moved that Burgess and Wyatt, et al, drop all other
work and present report by Friday of this week, if
not
earlier.
C.S.H. accepted an aimendment - "at least a preliminar
y report".
Morrill said he felt sure Committee could do this.
Gov. Meyer said he declined to be dominated by the Senat
e and
that he should insist on all the time necessary.
C.S.H. said. his only wish was to get the report as
quickly as
possible, and he made his motion so record would show
an
effort to expedite the matter in face of ,2ossible futur
e
criticism.
Gov. Meyer did not put C.S.H.Is motion and Ogden
Mills
reminded him it was pending, and then he put it and
it was
passed unanimously.
Mar. 21, 1932. 97, 98.
88. O.S.H. feels, from Gov. Meyer's manner, that
he hopes the
Glass bill will fail.
Later Miler said his language clearly implied
this.
Mar. 21, 1932. 98.
89.
Glass called uo C.S.H.
He asked if there was any doubt as to the power
of the Federal
reserve bank to refuse discounts; that a prominent
banker
had told him that neither the Board nor the
Federal
reserve banks had any such power; that he
felt that the
word "may' in Sec. 16 clearly implied such
power.
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Federal Reserve Bank of St. Louis
86.
Glass, Glass bill etc. (Contld.)
89 (Contld.)
C.S.H. said 143.11er and he construed the word "may" as giving
discretionary. power, When Federal reserve facilities have
been abused; that while he remembered no formal ruling of
the Boari to this effect, the Board had been so advised by
Wyatt and Newton D. Baker.
C.S.H. said the power has been denied and Glass asked, by wham?
C.S.H. said UcGarrah of Federal Reserve Bank of New York by letter
of May 1, 1929, speaking for his difectors, denied any power
either in the Board or in the Federal reserve banks even to
examine into customers security loans, or to refuse discounts
because of undue increase of such loans, evan though the
bank, were a frequent or even oontinuous borrower.
Glass asked if any Federal reserve bank had actually refused aiscounts
for above reason.
C.S.H. said he thought the Federal Reserve Bank of N.Y. had
threatened some banks which were "out of line", - i.e.
borrowing more than the average banks of their size In the
coranunity, or if they were borrowing for profit; but that
in cases where all banks are expanding at the same time,
C.S.H. understands that the Federal Reserve Bank of NY.
will not try to stop such expansion except thru increase in
the discount rate; that Gov. Harrison even disagreed with
the Board as to its warning of Feb. 7, 1929, stating that
it was not the proper way to meet the situation; that it
should be met by increases in discount rate.
Mar. 21, 1932. 99.
90. Glass asked if P.R• banks can increase the rate on member bank
collateral notes without final approval of the F.R. Board.
C.S.H. said No.
Mar. 21, 1932. 99.
91.
C.S.H. ag-in told Glass of Sec. 3 of his bill, but suggested
that as drawn it meant absolute prohibition of discounts if
the bank had a single speculative loan and suggested. at
least the addition of a qualifying clause, "except as
provided in the amendatory act", - which ndght meet the
difficulty.
C.S.H. said he understood that the Committee bill intended to
permit a reasonable volume of speculative loans; that, in
fact, Sec. 8 of his bill imposed the duty on the Board
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Federal Reserve Bank of St. Louis
87.
Glass, Glass bill etc. (Contld.)
91 (Contld.)
of fixing the percentage of these loans; that he assumed
that the banks could discount eligible paper to maintain their
reserves against deposits arising out of speculative loans so
fixed.
Glass at first demurred to this, saying they must use their vault
cash; that these deposits would give them funds ample for
such purpose.
C.S.H. replied that when prices are stable, and there is no
hoarding nor gold exports, the actual cash received by banks
would about equal the cash paid out by them over the counter;
that the banks, therefore, would have to rely on discounts of
eligible paper to keep up their reserves against deposits
growing out of all their loans, speculative and commercial.
Mar. 21, 19.3'. 99 (1), 99 (2)
92. Glass spoke of Gov. Meyer's letter requesting hearings.
He said he saw no necessity for hearingp as the Board had already
expressed its views to the Sub-committee through Burgess and
Goldenwdser.
C.S.H. said they did not express views of the Board.
Glass replied that Hoover told him that they had been chosen to
represent the Treasury and the Board before the Committee.
Glass said he asked Governor Meyer some time ago Whether the Board
wanted a hearing and he said No.
C.S.H. said he desired to co over every clause in the Glass bill,
and he felt this was the desire of all the mmbers.
C.S.H. said the Board had asked its staff Committee to report
fully as to the bill, showing changes marle by the recent
revision by the Sub-canmittee, so that the Board could act upon
it quickly and intelligently; that the Board hoped to receive
the report by Friday of this week.
Mar. 21, 1932. 99 (2)
93.
Gov. Meyer read * letter from Glass dated yesterday, stating
that Burgess and Goldenweiser were not called into
consultation by the Sub-Committee; that they were delegated by
Hoover to represent the Treasury and the Federal Reserve Board;
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Federal Reserve Bank of St. Louis
88.
Glass, Glass bill etc. (Conttd.)
93. (Conttd.)
that the Sub-committee assumed they were authoritatively
assigned by the Treasury and by the Federal Reserve Board;
that while engaged on their report they were in consultation
with Gov. Meyer, Ogden Mills, and Gov. Harrison; that not
until the Sub-canmittee received their report did it know
they were speaking only for thenselves; Glass added that
the written report of the Board will be received by the
SUb-cammittee and further public hearings will be held.
Glass added that he personally some time ago telephoned Gov.
Meyer and offered to give the Board a public hearing, as also
to Oov. Harrison, but each declined.
See scrap books, Vol. 225.
Mar. 22, 1932. 100.
94.
Gov. Meyer said that What he said to Glass was that the Board
would express no opinion as to "public" hearings but would
like to be heard by the Sub-committee on this bill.
Gov. Meyer said he never saw Burgess and Goldenreiserts original
report until after it had been filed with the Sub-.committee.
Gov. Meyer added that on Feb. 7, 1932, he wrote Glass that
Burgess and Goldenweiser - as expressly stated in their
report - did not represent the Federal Reserve Board.
Mar. 22, 1932. 101.
95.
Ogden Mills said Sen. Walcott told him he desired expert help
and that he - Mills- arTanged to have Burgess came down and
help him, as also Goldenweiser; that Hoover could not have
said they represented the Board or that he had delegated
them to act for the Board.
Evidently when Gov. Meyer told the Board the Sub-committee had
called for the experts, it was Senator Walcott who made
the request.
Mar. 22, 1932. 101.
96. Mills scored the Glass bill saying there was not the
faintest
chance of its passage; that the Committee would never
report it; that it Should bepostponed for at least a year.
Gov. Meyer said he agreed with the statement.
James added - it should be postponed for five years.
He op::osed any legislation at this
time.
Mar. 22, 1932. 101, 102.
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Federal Reserve Bank of St. Louis
89.
Glass, Glass billetc. (Contid.)
97. Miller said Congress was determined to enact legislation to
prevent a repetition of the craze of 1929; that it was
the duty of the Board to consider this bill with this
end in vier, recommending as few dhaages as possible.
Mar. 22, 1932. 102.
98.
C.S.H. said the ends in view of this bill were good and met
his approval; that the plain duty of the Board was to make
suggestions in harmony with the end of the bill.
C.S.H. said he differed fram Ogden Mills and Gov. Meyer; that
he felt sure some bill would be passed; that we should
assist by making helpful suggestions.
Mar.22, 1932. 102.
99.
C.S.H. said if the Committee refused to report the bill, and
Glass should move to discharge the Committee and bring
the bill before the Senate he believed the Senate would
so order.
Mar. 22, 1932* 102, 103.
100. Hoover asked Miller to lunch today. He did not speak of the
Glass bill but Miller brought up the subject.
Miller said Hoover did not know of the latest draft of the
Glass bill and asked him to send him a copy with any
suggestions he cared to Make; that he agreed finally
with Miller that every effort should be made to secure
same bill which Glass would approve.
Mar. 22, 1932. 103.
101.
C:E.H. believes Hoover has turned the Whole matter over to
Gov. Meyer and Ogden Mills.
Mar. 22, 1932. 103.
102. Miller said Gov. Meyer and Mills want to have the Glass bill
rejected rather than amended.
C.S.H. agrees with this.
We both agreed it would be Almost political insanity for the
administration to defeat the bill; th t such action would
ra,q3,..e it a political issue;that Glass could fairly claim
it was an alliance btween Wall Street and the administration.
Mar. 22, 1932. 103.
103.
C.S.H. wrote Glass quoting a dictum in the Raidhle case in N.Y.
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Federal Reserve Bank of St. Louis
90.
Glass, Glass bill, etc. (Contld.)
103. (Contld.)
Circuit Court of Apr,)eals that a Federal resirve bc.nk.
could in its discretion decline to discount eligible
paper.
Mar. 22, 1932.104.
104. At the Board meeting, Gov. Meyer or Ogden ills
— C.S.H. thinks
the latter — said that Gov. Harrison h. suggested the
desirability of retaining Newton D. Baker to ap_;e1- r
before the Senate Committee in behalf of the Federal
Reserve System, an the Glass bill.
C.S.H. said he had heard that Glass favored the nomina
tion of
Baker for President and. that Glass would be justly
infuriated to see one of his close 2.olitical friends
appear as a practical lobbyist against his bill.
C.S.H. said he believed Baker would be strongly inclin
ed to
seek reasons for supporting the bill, rather than for
defeating it.
No action was taken.
Mar. 23, 1932. 104.
105. Miller feels that Gov. Harrisonls suggestion
as to Baker shows
that he is desperate with his back against the wall&
Mar. 23, 1932. 104, 105.
106. Wyatt told C.S.H. that the Staff Committee
sat up last night
until after midnight; that Gov. Meyer and Floyd
Harrison ana, Co S.H. thinks, Morrill, discussing the
proposed report on the Glass bill; that they finally
agreed to report a section permitting the refusal of
discounts with powers to suspend from Federal reserve
facilities banks abusing Federal reserve credit, —
substantially as C.S.H. desired; that Gov. Meyer final
ly
said he was inclined to think such a power shoul
d be
given to Federal reserve banks and to the Federal
Reserve Boardt
Gov. Meyer told C.S.H. long ago that the Board shoul
d have
approved the 6% rate asked for by P.R. Bank of N.Y. in
1929, and that increase in the discount rate was
the
only proper remedy and would have correcte,1 the
situation.
Gov. Meyer's change of heart followed directly what
C S.H.
and Miller said yesterday('
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Federal Reserve Bank of St. Louis
91.
Glass, Glass bill, etc. (Contld.)
106. (Contd.)
Had any other member of the Board sat secretly with this
Committee, how angry Gov. Meyer would have beenl
Gov. Meyer never told Board. of this meetingi
Mar. 23, 1932. 105.
107.
Gov. Meyer read a proposed answer to Glass letter stating that
Burgess and Goldenreiser were not invited by the
Sub—committee to assist them, but were designated by
Hoover to represent the Treasury and the Federal Reserve
Board. (See supra 94)
Gov. Meyer stated In the letter that it was his undrstanding
that Sen. Walcott had said that he and Glass desired the
help of Burgess and Goldenreiser.
C.S.H. asked on what his understanding was based.
Gov. Meyer replied— on *hat Ogden Mills told the Board the
other day.
James said Mills told the Board that Sen. Walcott said he
and Glass desired the help of Burgess and Goldenreiser.
Mar. 25, 1932. 106, 107.
108. Board received notice that Federal Advisory Council
had called
a special meeting in Washin_ton on Monday to consider
the Glass bill.
Mar. 26, 1932. 107.
109.
C.S.H. asked Ogden Mills just what Sen. Walcott said to him
as
to getting the servi:es of Burgess and Goldenveiser.
Mills said Walcott said it would be agreeable to him and to
Glass to have the services of Burgess and Goldenweiser.
Mar. 26, 1932. 107.
110. Board discussed provision of Glass bill removing Secreta
ry of
Treasury from the Federal Reserve Board.
Our Committee of experts made no recommendation as to
this.
Mills said that While hi did not care personally, he felt
the
Sec. of the Treasury dhould remain on the Board.
C.S.H. said he so testified at the stabilization hearings a year
ago, when Miller took the opposite view.
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Federal Reserve Bank of St. Louis
92.
Glass, Glass bill (Contld.)
Mills raised question of keeping the Secretary of Treasury on
Board but without the voting privilege. This seemed somewhat
to impress Miller.
Mar. 26, 1932. 107, 108.
111. The Board met at Treasury from 3 to 6:30 p.m. to discuss
the Glass bill and consider the report of its expert
Committee.
C.S.H. secured a change in report making member bank collateral
notes secured ir eligible paper, run for 90 days.
C.S.H. tried to secure a recomendation that member bank
collateral notes secured by Government bonds should take
a higher rate after expiration of 3 years.
This failed.
The expert Committee objected to divorce of affiliates after
3 years, as contained in Glass bill.
C.S.H. and Miller strongly favored absolute divorce.
Board finally voted to instruct expert Comittee to prepare
a draft providing for divorce of certain security affiliates.
The Expert Committee reported a draft providing for power to
refuse discounts and suspend offening banks from use of
Federal reserve facilitiE)E.
1114 27, 1932. Sunday. 108, 109.
112. Board met for further consideration of expert cammittee redort.
The meeting lasted from 8:15 p.m. lionday to 12:45 a.m. Tuesday.
Board aGreed on an open market clause along the lines sur 13?ted
by Miler.
Board agreed on a draft providing for divorce of security
affiliates after 3 years..
Board discussed at length whether the report as to undue use
of Federal reserve credit should be made to the Board
by the Fed- ral Reserve Agent, as laid down in Expert
Committee's report, or should be made by the Chairman of
the Board..
Miller insisted on the latter as phrased in the Glass bill.
C. .H. backed up :aller on ground that it would place direct
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Federal Reserve Bank of St. Louis
93.
Glass, Glass bill etc. (Cont'd.)
112. (Contld.)
responsibility on the Board of Directors.
27, 1932. 108, 109.
113. Board meets with Federal Advisory Council which condemned the
original Glass bill unreservedly.
Most of its suggestions had already been met by the Board.
Mar. 29, 1932. 109.
114.
Gov. Meyer at 2:30 p.m. presented Board's report on Glass bill
to the Senate Committee, stating that it represented the
unanimous conclusions of the Board, including the
Camntroller and theSecretary of the Treasury, Ogden Mills.
Mar. 29, 1932. 110.
115.
Wyatt later told C.S.H. that Ogden Mills said he had joined
in the report, although he could not quite understand the
language as to divorce of security affiliates; that he
concurred, on principle, however, that they or many of
them Should be divorced.
Mar. 29, 1932. 110.
116.
C.S.H. and Miller feel that the unanimous agreement of the
Board is a positive indorsement of the Board's warning of
Feb. 7, 1929 and the direct action taken under it.
The unanimous agreement is one of the most important actions
ever taken by the Board1
Mar. 30, 1932. 110.
117.
Miller said he talked with Glass at the hearing yesterday;
that Glass was much pleased and impressed at the
unanimous r Dort of the Board.
Glass said the Board's draft of Sec. 3 gives him even more
than he asked for.
Glass was also very much pleased at the draft for divorce
of security affiliates.
Mar. 31, 1932. 110.
118.
C.S.H. believes Glass should accept the Board's report and
dare the Republicans to defeat it.
r. 31, 1932. 111.
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Federal Reserve Bank of St. Louis
94.
Glass, Glass bill, etc. (Contld.)
119. Gov. Meyer to. C.S.H' over a year ago that he believed
the Board Should have approved the 6% rate asked for by
New York in 1929 and that this would have met the
situation.
Yet Gov. Meyer finally voted for Sec. 3 of the Glass bill as
reported by the Board, giving the Board power to •
penalize banks for undue use of Federal reserve cre it,
thus ratifying the Board's warning and direct pressurel
C.S.H. feels that Cirov.Meyer did not ap-)rove of Sec. 3 in any
form, but knew tht if he op)osedit he would have to face
C.S.H. and Miller before the Senate Canmittee, when strong
language would be used, and, further, that it would hurt
his prestige to have to go before the Comattee as the head
of a faction, pleading, in effect, in behalf of the Wall
Street barIrs.
C.S.H. believes he finally yielded flunabove considerations
and obtain the credit of having a united Board behind him.
It was a great triumph for Miller and C. .H.
We accepted Gov. Meyer's unconditional surrender, but, like
General Grant, we gave him back his sword, which he
buckled on and paraded down to the Comulittee, the proud
leader of a united Boardl
Mar. 31, 1932. 111.
120.
C.S.H. called on Glass.
He was in very good humor.
He said he thought he could accent most of the Board's
suggestions, — that they were really mostly changes in
classification.
He confessed his surprise at the Board action in recommending
divorce of security Affiliates but very gratified, that
he felt our draft on this subject was better than his.
April 1, 1932. 112.
121.
Miller said Sen. Walcott told him yesterday that Glass and
the Sub—committee unanimously agreed to report the
Board's draft, with slit exceptions, in lieu of the
Glass bill.
April 4, 1932. 114.
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Federal Reserve Bank of St. Louis
Vb
Glass, Glass bill, etc. (Contld..)
122.
The Board asked Wyatt and Morrill to prepare a draft of the
Senate Sub-camL4ittee report should it ask for our help.
April 4, 195. 114.
123. Morrill said Glass sent for him to help draw a modified bill
divorcing affiliates, exemnting holding camnanies,.and
confining the divorce to sister affiliates and
subsidiary affiliates.
April 5, 1932. 114.
124.
Glass told Morrill he would accept practically all of the
Board's recommendations.'
April 5, 1932. 114.
125. Daiger told C.S.H. that the Democrats in Senate and H.R. had
concurred and voted to support the Glass bill. This was
before the Board made its report.
April 5, 1932. 114.
126. Daiger said the reason Why the Sub-committee suddenly reported
to the full Committee the original Glass bill was to
get ahead of the Thomas-Beedy liquidating bond bill; that
the Comptroller alone had a copy of the original Glass
bill which providEd for a liquidating corporation; that he
and Ogden Mills felt that a liqudating corporation was vital
and that the Glass bill would be so opposed that it would
be a long time before it could become law; that, therefore,
they prepared the Thomas-Beedy bill and had it introduced;
that this bill could be more quickly reported and then
would obtain precedence over the Glass bill; that they
arranged to have only a day or two spent in hearings;
that Glass got the Sub-committee to report his bill at
once, and blocked hearings an the Thomas-Beedy bill.
Deicer said Glass and the Sub-committee felt that Hoover,
Ogden Mills and the Caraptroller had not played fair, and
forced the administration tO withdraw the Thomas-Beed,y bill.
April 5, 1932. 114, 115, 116.
127.
Glass asked Gov. Meyer at the hearing whether the Board's
draft of Sec. 14 took away from the Federal reserve banks
the right to initiate discount rates, and asked him to
prepare a memorandum as to this.
The Board considered this and wrote Glass that it as was not
intended to and did not affect in any way the power of
Federal resrrve banks to initiate rates.
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Federal Reserve Bank of St. Louis
96.
Glass, Glass bill etc. (Contld.)
127. (Contld.)
C.S.H. thinks Glass feared. that the clause "subject to
limitations and restrictions of the Board,"bad this result.
The Board believes it neither adds to nor detrLcts from
such power.
April 6, 1932. 116, 117.
128.
Glass told Morrill that Miller no longer acted as adviser of
the Sub-cammittee, and he addaithat Willis was a poor
draughtsman.
April 6, 1932. 117.
129.
Glass intimated, that he might strike out the Board's reserve
provisions, taken from the Reserve Committee report.
April 6, 1932. 117.
130.
Glass told Morrill he should accept many but not all of
Board's recommendations; just *hat he means by this none
of us know.
April 6, 1932. 117.
131.
C.S.H 'called an Glass who has been fl.]. for two days.
He said he had adopted most of Board's report; that a new
draft would be ready this p.m.; that some changes had
leaked out
.this in response to C.S.H. statement that
Platt had seen a confidential abstract of them - and that
one of the Comittee had been guilty of a breach of good
faith.
C.S.H. told this to Morrill who said he had had a copy for
some days, but he never told the Board of this.
April 7, 1932. 118.
132. Gov. Harrison sends Glass a memorandum criticising the
Glass
bill as favored by the Board. It was a typically Bourbonish
document.
C.S.H. borrowed a co2y from Gov. Meyer who had one.
Gov. Harrison approved 22 sections of the Board's draft but
said 13 of than were not necessary now and should be
postponed.
AL]ong these latter were the parts relating to security
affiliates, open market operz-tions, member bank collateral
notes secured by eligible paper, supervision of holding
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Federal Reserve Bank of St. Louis
v7.
Glass, Glass bill etc. (Cont,d.)
132. (Contldm)
canpanits, power of removal of officers and directors,
etc.
Gov. Harrison opposed:
Power to penalize banks
Reserve provisions
Separation of bank cad affiliate stock
Divorce of affiliates.
Gov. Harrison favored immediate action only as to branch
banks and Federaltquidating corporation.
In his letter transmitting the memorandum, Gov. Harrison
said:
"There do not appear to be any parts of the
bill for which there is imperative need for
immediate legislation".
The above quotation would seem to include even branch banks
and the Liquidating Corporation, which is memorandum
did favor.
Gov. Harrison said in his memorandum that the power to refuse
discounts and suspent member banks from Federal reserve
facilities would be ineffective and involved responsibility
for the managenent and operation of individual banks
which would be impossible for the Federal reserve bank or
the Federal Reserve Board to fulfill, and the assumtion
of which would be harmful to the Federal Reserve Systen
as a Whole and to the individual member banks.
Gov. Harrison, however, in his testimony before the Glass
Sub—cinmittee, said the Federal reserve banks ht.d the
power now, but that some had denied it, and he asked the
Sub—committee explicitly to give the Federal reserve bank
such power.
(See scrap books 226 or 227.)
April 8, 1932. 119, 120, 121.
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Federal Reserve Bank of St. Louis
98.
Glass, Glass bill etc. (Cont'd.)
133.
C.S.H. prepares a reply to Gov. Harrisonismelorandum
contained in above letter.
April 11, 1932. 121.
134.
The Governors met in open ratrket conference.
While discussing participation in open market purchased,
Gov. Harrison asked for a statement by the Board that
the Federal reserve banks could exchange the Government
bonds pledged for member bank collateral notes for gold
held, as collateral by the Federal Reserve Agent.
C.S.H., James, and Miller felt the best way would be a
pro rata participation by the Federal reserve banks which
are able to do so, the other Federal r -serve banks to
take same position, and later to ask the Board to apply
the emergency provision as to gold to individual
Federal reserve banks.
This view prevailed.
April 12,1932. 124.
135.
Gov. Meyer read a letter signed by the Governors in their
capacity of "open market Committee; stating that they
were unanimously oposed to the Glass bill even in the
form sent to the Sub—committee by the Federal Reserve
Board; that they agreed with the criticism of the Federal
Advisory Council (these criticisms, however, were to the
original bill).
They further asked that this letter be sent to the Senate
Committee.
All of the Board agreed that this letter should not be sent
to the Senate as the Governors went clearly beyond their
powers as members of the Open Market Conference, in sending
such a letter.
O.S.H. suggested sending such a reply and adding that if
they desired to be heard on the open market sections of
the bill, they should address the Senate Com..ittee
directly and request a hearing.
A reply is being prepared by the Board.
At the open market conference the Governors aever alludd to
their op2osition to the bill.
Their action in coin,1; away and. leaving this letter behind
them is almost ludicrcusl
April 13,197)2. 124, 125.
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Federal Reserve Bank of St. Louis
99.
Glass, Glass bill etc. (Contld.)
136.
The Glass Committ3e reported the Glass bill to the Senate.
One or two mambers reserved the right to try to make Sec. 3
the power to penalize member banks for abuse of federal
reserve facilities - more severe.
Some members reserved the right to object to the broad branch
bank provision.
These were the points on which dissent was expressed.
April 16, 1932. 132.
137.
Goldenweiser told C.S.H. that Glass said - I think to him that Willis had slipped intothe Glass bill a clause
repealing all of the present exceptions to U. .R.S. Se.
5200.
April 18, 1932. 133.
138.
Glass sends O.S.H. a coy of his reply to Gov. Harrison's
letter and memorandum. It was a terrific denunciations
See Vol.227. Scrap books.
April 18, 1932. 133.
139.
Gov. Harrison answers GlassI s letter.
He said that, among other things, that all open market
operations had been aproved frwa time to time by no
Board.
He forgets 1923, however, when under guise of permission from
the Board to furnish desired federal reserve credit to
help the fall stringency which was expected, it actually
bought so many that the banks not only met the fall need
for credit, but were able to take down some 190 millions
of discounts; that they finally held 2/3 of all the
acceptances outstanding; that the plethora of money
actually reduced ven custaners rates which normally stiffen
in the fall; that Burgess in a public address admitted they
had bow;ht 100 millions more than was necessary - that
they turnei the Board's firming policy into an easing
policy causing a great increase of speculative activity.
Gov. Harrison admitted the error of his testimony before the
Sub-crimnittee.
April 18, 1932. 14§, 146.
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Federal Reserve Bank of St. Louis
Glass, Glass bill etc. (Contld.)
140.
Gov. Harrison in above letter again insisted that the
only way to stop speculation was throuel discount
rates and open maeket operations. He seems to have
lost his headl
April 18, 1932. 146.
141.
Glass calls on C.S.H. and asks him 4,v; to the effect of the
increase in discount rates to 7% at Nev York in 1926,
on brokers loans and customers s curity loans.
C.S.H. later sent him figures prepared by Smead.
April 28, 1932. 149.
142.
Gov. Meyer last week told the Board he had sent Glass, at
Glass' request, a list of further chances in Glass bill,
telling the Board they were all suggestions already
suggested by the Board.
C.S.H. did not check this letter when it went over his
desk, as Miller wanted to see it as soon as possible so
C.S.H. sent it to him before he had fully read over it.
The principal part of the letter was to extrid
of security affiliates from 3 to 5 years.
he divorce
Gov. Meyer sent this to Zass without any authority from
or consultation with the Boardt
May 11, 1932. 156.
143.
Glass in his speech on his banking bill spoke of the
suppression by the Taft administration of the oninion
of Sol. Gen. Lehman to effect that security affiliates
of national barks were illegal.
found a reference in his diaty to the attempt of
John Skelton Williams to have this opinion formally
called for.
It was really only a memorandum of Lehman to Wickersham
never called for or sent to the Comptroller or the
Treasury.
Glass at first intimated that it had been suppressed by
Attorney General McReynolds and he relied on a statement
to him by present Attorney General Mitdhell to this
effect.
Later :atchell retracted this.
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Federal Reserve Bank of St. Louis
101.
Glass, Glass bill, etc. (Cont li.)
143. (Contld.)
Then Glass put the responsibility on Attorney General Palmer
who vigorously denied it.
C.S.H. diary Shows that Palmer told Houston he would send'
him the memorandum or give him an opinion if he desired it.
May 11, 1932. 157.
See — Lehman
Clayton Act
Wyatt
144.
C.S.H. telephoned Glass Who said that Cong. Wino received
$2000 from American Barkers Association in 1927 for
attending the Convention at Los Angeles and fighting the
branch bank extension; that $1000 was for expenses and
$1000 given as a fee; that this was a bribe; that Wingo
was on the Conference Committee having charge of the bill
as to branch bank*, etc.
See earlier diaries.
May 13, 1932. 160.
145. Morrill said all feel that the Glass bill is dead; that last
evening Gov. Meyer, Goldenweiser, and he went over the
bill with Sen. Metcalf Who is preparing amendments.
Nothing of this was said to the Boardl
1.iA7 14, 1932. 161.
146.
C.S.H. writes Glass as to reduction of Boards and employees
salary under economy bill as passed by H.R.., pointing
out that Board's salary was reduced from 12 to 10 thousand
a 10;01 cut.
permanently and further reduced
Later Glass's secretary telephoned that Glass had received
the letter and "would attend to the matter.
June 2, 1932. 187.
147. Glass secures passage of an amendment to economy bill exempting
from the salary cut all Whose salary is paid by assessments
on banks. This seems to exempt the Board and its staff,
but Wyatt says we are all probaLly subject to the limitation
of aanual leave to 15 days and the $5 limit for subsistence
when travelling.
June 2, 1932. 191.
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Federal Reserve Bank of St. Louis
•
Glass, /lass bill etc. (Oontid.)
148.
C.S.H. writes Glass enclosing an amenLient Ithich will
cover the above. C.S.H. said the letters of yesterday
and today represented his personal views merely, and not
necessarily those of the Board.
June 3, 1932. 191, 192, 194.
149.
C.S.H. told Miller abuut his letters to Glass, above.
Miller agreed; also Floyd Harrison and Morrill.
C.S.H. did not speak of this to Gov. Meyer who was out and
the letters had to be sent at once.
June 7, 1932. 194, 195.
150.
C.S.H. read letters above to gloyd Harrison and Morrill Who
approved; also to James Who approved.
June 7, 1932. 195.
151.
The Senate passed economy bill with above amendment.
June 8, 1932. 197.
152. Magee told C.S.H. that on his trip to Richmond Gov. Meyer
spoke of the effort to exempt Board and staff from
salary cut and fully approved.
June 9, 1932. 198.
See.Hoover
Open market policy
NO •••r•
Godmother
H. P. H. acts as, at christening of daughter of Marjorie Key
(Wright), daughter of Gen. Wright,giving her one of Anna's
rattles — the last one we have left.
Mar. 19, 1932. 97.
Gold
Gov. Harrison said further Increase of bank failures might start up
a withdrawal of Gold by foreign depositors.
Dec. 2,1931. 1-4.
Gov. Meyer said it would take some time for Prance to withdraw her
deposits and export the Gold, as the amount on any one ship
was limited as to insurance.
He favored telling Prance we would help by shipping ,
old in U.S.
vessels.
Jan. 199 1932. 44.
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Federal Reserve Bank of St. Louis
14)0e
Gold (Contid.)
C.S.H. felt that to invite the shilment of 6 or 700 laillions of
gold by Prance might be detrimental to banks and business.
Jan. 19, 1932. 45.
See.France
Substitution of bonds for gold as collateral for F.R. notes under
Glass emergency bill.
April 13, 1932. 81, 124.
See - Federal reserve notes.
Gov. Harrison cables Gov. Norman that he has no objection to
his earmarking and exporting gold.
April 19, 1932. 147.
See - Harrison, Gov.
Miller is preparing draft of circular to Federal reserve banks
directing them not to pay out gold except to foreign
depositors, - for use if an emergency should arise.
June 4, 1932. 192.
About 50% of our open market nurdhases of Government securities
has gone into gold exports.
June 9, 1932. 197.
Goldenweiser says there is no danger from sold exports; that the
only danger is from domestic hoarding.
June 9, 1932. 198.
Gold standard
Dulles says European nations are us ing every effort to keep on
the gold. standard to avoid inflation from which they have
Dec. 11, 1931. 7.
so suffered..
Gold suspension
Glass said Hoover wanted a reduction in required reserves.
Miller said this might start a run on our gold by foreign
depositors and force us off the gold standard by bringing
about a general moratorium.
Peb. 9, 1932. 63.
Goldenwt"is er
N. Y. Journal of Conzaerce publishes the Sub-committee report
on Glass bill.
Goldenweiser and Gov. Meyer said they Irod a copy but C.S.H.
only got one at 4 p.m.
Jan. 22, 1932. 47.
Golienweiser (Contld.)
1
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Federal Reserve Bank of St. Louis
Goldenweiser prepares a mamorandum showing defects in Glass bill.
Jan. 25, 1932. 48.
Says Sen. Walcott asked him to tell Board he hoped it would ask
fora hearing on Sub-committee report on Glass bill.
Mar. 18, 1932. 95.
Says Glass said that Willis had slipped into the Glambill a
clause repealing all of the exceptions in tr.o. Revised Statutes
Sec. 5200.
April 18, 1932. 133.
Says there is no danger from ,74010.. aKports, as we have plenty of
cold; Only danger is from domestic hoarding, - a flif-ht from
the dollar.
June 9, 193. 198.
See - Burgess
Glass bill
Goodrich, Ruth (PrIv71)
Dines with us, also Mrs. Van Rensceller of Albany.
Feb. 21, 1932. 79.
Gordon, George
We meet, Anna's old friend, at super at Mrs. Harriman's.
Feb. 7, 1932. 55.
Gordon-Cm.ling, Mrs.
We dine with.
Dec. 24, 1931. 31.
Government securities.
See - Governors conference
Governors
See - Governors Conference
Open market nolicy
Goernors of Federal reserve banks
Hoover says will be glad to call a conference of, to oush District
Committees,
May 21, 1932. 166.
Governors Conferencq Open market nolicy
Meeting with Board.
The Reserve Committee asked for further time to report.
Resolution nassed that while no action is necessary just at present,
the Executive Colamittee should be c-iven authority to buy
un to 200 millions of Goveruuent sworities, the same to be
sold after end of the y,-ar.
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Federal Reserve Bank of St. Louis
105.
Governors Conference, Open market nolicy (Contld.)
Gov. Norris later told C.S.H. he internreted this to men that
the conference felt that the Ner York banks should increase
their rediscounts, and that the conference dia', not want to
help them still further increase their great liquidity by
the nurChase of Govornment securities, and that their consent
to buying 200 millions was in order to meet sudden emerLencies.
Gov. Morris said only 8 of the Federal reserve banks could
participate, and that the views epressed above, certainly
reoresented the views of Philadelnhia and Chicago.
All L12.reed that there was, in effect, a credit anbargo, in effort
to maintain liquidity.
Dec. 2, 1931. 1, 1—A4
See.Harrison, Gov.
Pool
The Governors unanimously opposed suggestion of Mr. Coker of
Federal reserve bank, Richmond, for a uniform cut in Fedeml
reserve wages.
Dec. 2, 1931. 3.
Hoover, in message to Congress, said a majority of the Governors
favored broadening of eligibility In times of emergency.
Dec. 8, 1931. 5.
The Governors, three dissenting, favored Lombard loans in
emergencies.
Dec. 8, 1931. 6.
C. .H. tells Glass of above action of the Governors.
Dec. 17, 1931. 23.
Governors meet with Board..
Gov. Harrison s-.)oke of existing deflation and aavised a bold
course of purchasing Government s curities.
See — Harrison ,Gov.
Gov. McDougal strongly advocated the sale of all Government
securities bouOit in last two months; he said we had already
bought during last two years more than any one would have
dreamed of; that the Federal reserve banksshould keep liquid
to meet withdrawal of deposits from member banks.
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Federal Reserve Bank of St. Louis
Governors Conference, Open market policy
(Cont'd.)
Gov. Seay agreed with Gov. McDougal, assv
oinF the Federal Rescrve
Act to remain as it is.
Gov. Harrison said he favored large :Iur
.
chases only if necessary
following the correction of the railroad
situation as to
wages, and the passage of the amendmen
t as to substitution of
funds for gold behind Federal reserve
notes; that he was
iTh.arful an anergency milt arise within
two or three wees,
which would require such -mrchase
s.
The conference unanimously voted that the
assistance of the operating
facilities and services of the Federal
reserve banks should
be made available for the Reconstructi
on Finance Corporation,
the Cornoration to reimburse the banks for
such sirvices in
such marner as may be agreed upon.
Jan. 11, 1932. 41, 41 (2)
Voted that to relieve the present crit
ical situation the work of
the Reconstruction Finance Corporation
should be supplemeted by
the .pur
.
chase of Government securities, not ex-;
eeding 200 millions
to be made only after approval of Exec
utive Committee at a
meeting to be called n the necessity
thereof.
7o. Gov. Seay, McDougal and Dept. Gov.
Day (San. Fran.)
Gov. Young not present.
Ogden hills came before the conference
in the afternoon to e::plain
Treasury policy.
He said Hoover !lad told Congress that 2
billions of Government
securities may have to be issued to meet
the deficit for fiscal
year 1932; that after that no further
issues will be made but
deficits will be met by taxes.
C..D.H. asked if this statement was nece
ssary for his -clans and he
said Yes.
Miller asked Board. to establish a pref
erential rate on paper
secured by Government securities in orde
r to help -21ace them.
He said this was done during the war
and the emergency was now equally
great, and that the Board should coop
erate.
Board took no action.
Jan. 11, 1932. 41 (2).
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Federal Reserve Bank of St. Louis
107.
aovernors Conference, Open market "policy (Contid.)
C.S.H. pointed, out to Magee and. Miller that many of the Governors
were at heart opposed to Gov. Harrison's views as to open
market policy; that Gov' Harrison wanted to bvy 500 millions
of' Govt. securities but that the Governors cut this down to
200 millions.
3'eb. 12, 1932. 67, 68.
-.t with Board.
,
Governors me:
Considered, proposed regulations under Glass emergency bill.
Gov. Harrison said two courses were openS
1. To perait relief up to say 100% of Fed railreserve
banks surolus.
2.
To decitle each case as it arose.
He seemed to prefer 1.
As to deposit of funds and withdrawal of gold for Federal reserve
agent, some favored taking down all the gold at once.
Gov. Meyer suggested keeping the free gpld at say 500 millions.
Some favored. doing nothing until an emergency arose at each P.R. bank.
C.S.H. pointed. out that the Glass Emergency Act was nassed primarily:
1.
To nrovide for loss of gold from investing in non—eligible
paper.
2.
Getting a huge fund for open mriet oper tions.
...)orts were concerned, the banks must rediscount
So far as gold ex,
and. this would Ave the Federal reserve banks eligible paper
which could be exchanged for cold. held. by .,he Federal Reserve
A exit.
C.S.H. opjosed taking down the gold all at once as it would look
as if we feared we might have to pay it out for non—eligible
paper.
Gov• Harrison asked authority to buy 250 millions of Government
securities, say 25 millions per week. He said bank credit
in relation to prices 'as never as low as now; that prices
generally ran along with bank credit; that if bank credit
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Federal Reserve Bank of St. Louis
108.
lovornors Conference, Onen market nolicy (Contd.)
were not increased -crices ,vould droo even to 107.-r lev is.
James said many interior banks had no bonds to sell, and .ould
not be h led by further nurchases of Government s(,curities.
All agreed, however, that the interior banks would 3.et an indirect
benefit from such nurdhases.
Miller said he had always on ,osed the policy of blving Govt. securities
but that now he deened it wise and would even vote for 500 millions.
Mills said to buynow would relieve the N.Y. banks which had to
berr the burden of future heavy Treasury issues; that he would
ask them to buy the new issue and. hold thea until the Tresury
called for the money, and that then they could rediscount
sing 4-.(le certificates as collateral.
He s7-Ad this wa: the orizinal plan of the Treasury, but that the
banks had been dilm-ying all their nuxdhases in the market for
nroft, - which was bad.
He said they could make a reasonable profit by reuiscounting the issues
at a F.
rte lower than the r,t,, carried in the certificates;
that the Treasury would distribute the proceeds over the country,
which would help all of the banks.
Gov. Harrison said he would ask his directors to reduce discount rates
tomorrow by
af l.
All seemed to feel that in this critical time it was desirable for
the F.R. Bank of NY. to lower discount rates to heln bring
about recovery.
The Governors, at their separate conference, voted to aporove the
nurdhase of 250 millions of Government securities at the rate
of 25 millions ner week.
The Board then met and annroved this nurchase.
Pe. 24, 1932. 80, 81, 82, 83, 84.
Gov. Harrison, at the Conference, referred to the fact that he large
N. Y. banks were not rediscounting. Some one asked him if he
could not force them to rediscount.
He said Yes, but that if he did he would To abroad, not
for the nuxnose
of consultin- the central banks, but because he would be out
of
a jobl
Mar. 1, 193n. 85.
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Federal Reserve Bank of St. Louis
109.
,lovernors Conference, ()pen market poLicy (Contld.)
Ileetin- with 3o:s.rid.
Gov. neyer gave a good statement as to e:,,isting conditions, but
little was left of his former antimism.
He said there was an anbal%so on credit; that he wished the 3on;rd had
-lower to buy commercial raner in the o-- en market, not in order
to cannete with the member banks, but to assist them in
this crisis; that, with returning confidence tLe member banks
would buy this naper from the P.R. banks.
Gov. Seay c,sked if C.S.H. meant that the P.R. banks y.hould buy
such naner from the member banks.
C.S.H. said he believed the Federal reserve banks should '11,,ve power
to buy commercial _;.ner directly from individuals and coroor:tions;
that this power at first was in the draft of the Federal Reserve
Act but was later dro)oed out; that he would lso favor an
amendment nen:, ttin: Federal reserve banks to buy commercial
paper from member banks without their indorsement, in times of
stress; that this had been seriously considered during the war
but not acted unon.
C.S.H. said the objection raised would be that noor paper would
be
dumned unon the P.R. banks, but that he believed the directors
could be trusted.
lov. I:eyer and niller said boldnes was necessary, and f:vored the
a'zthority to nurdhase 500 millions in addition to the 100 millions
nreviously authorized but not yet ex-)endrd.
—ost of the Governors seemed to be willing, but Gov. nuns. ap
- ooed,
)
saying it would be resisted by the member banks.
The Governors voted an royal of p:bove, 11 to 1,
voting No.
Gov. Young alone
3ov. I:cDolk771 voted Aye.
0.6.H. believes Cr'ov. Yo-,1217 was instructeJ by his directors so to
vote.
aov. Harrison asked Board to issue a statement that Federal reserve
banks could take down their L-old by nuttin,
. uo bonds with the
Federal Resrve Agent to insure their pcxtici2ation n qirchas
es
of Government s2duritiec.
C.S.H., Miller and James thought the best way would be to have
all
banks narticinate Wnich were able to do so, the other banks
to
take all they could, and then later ask the Board to cive
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Federal Reserve Bank of St. Louis
110.
G.overnors Conference, 0)
- anmet policy (Contld.)
to individual banks to tvlce doni their cold under the
Glass euergency bill.
This latter view
.reviled•rii
12, 19. 122,123, 124.
Gov. ::eyer read to Board a letter si:ned by some of the Governors
as the "Onen Imret Committed' stating that they were unanimous
in on-)ositim to the Glass bill even as dhan:!..ed by the Federal
Reserve Board in its report; that they -±greed with the
criticis:.ls of the Federal Advisory Council (this was solely
to the oriinal Glass bill), and asking that their letter be
sent by the Board to the Senate Committee.
Ail of t:.e Board were o).:osed to this.
suc 'ested telling tham that their letter transcended the
functions of the 07en Larket Comlittee, in criticisne the
Board's r::./ort on the whole Glass bill; that if they had any
sw2;cestions as to the Onen .:arket clause of the bill they
could address the Senate Coramittee directly and
for a
h,_rinc.
Later a letter was sent along these lines.
The Governors never attended to this at the Conference and their
action
in goin,l. away and leaving their letter behind them is almost
ludicrous%
Aril 1:, 1932.
125.
Gov.
Harrison sends Gov. Meyer a co-oy of his cable to Gov. roman
sL.yinc, a2ong other things, that the System's enercetic 0-ian
market program will result in lower rates on Government
securities, etc. etc.
Aril 19, 1932. 147.
Miller tcld Boe.rd that the purchase of Government securities ,:!cAs
doing no
and that he dia not f'vor buying another 500
million of Government scurities.
Gov. ::eyer iid 0.6.H. took decided issue r.inst him•
May 12,19" 160•
Meettn
with Board.
After long discussion the :;overnors
voted 10 to 2 to
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Federal Reserve Bank of St. Louis
Governors Conference, Chen market policy (Contld.)
continue further )
. urchases of Government s-curities ur) to
a further amount of 500 millions, the e::tent Ltrid amount
to be determined by the Exocutive Committee.
Zirov. Young and. Gov. ::cDoucal voted. No.
L:any of the members seemed to doubt the success of the olicy, but
almost all seemed to feel th t once aMb:mrked. 1.1on, it s>ould
be carried throug4.
:liner said the 2urchase of Governments alone would not accom:aish
the result, but that coojeration was necessary and succested
a conference at Washinoton between the Federal reserve banks,
member banks, and 7.-dinL; industrialists, and that a general
-,progrE.mme be may)ed out, to be carried out in each district
by Canmittees formed for that pur-ose.
Gov. 31,s,ch and some others favored this.
Gov. Calkins said such a -21an would surely cause uneasiness in his
district.
Gov. 17Irrison said the ,
)olicy so far was working satisfactorily, that
it had. ap-oarently sto)jed deflation.
C.S.H. agreed with :aller as to calin,: a conference in Washington
and subsequent anvAntment of district Committees to work along
the -lens prepared at the Washington Conference; he said a
survey should be made in each Federal reserve district, es-2ecially
as to construction work, much of which he believed was immediately
needed; thE..t while such 7014k mi-ht not create elir-ible naper,
it would create pai)er which Fed ral r-serve banks could take
under the Glass emergency bill.
Gov.
sid there was a demand for construction of moderate
-)riced residences, say $10,000, in Westchester County, that
we Should cease to think solely in terms o' "digible paper".
Magee congratulated C.6.H. on his constructive suggestions.
The Con2erence decid-1 to break precedent and give out a statement
of its proceedinzs.
The Conferencc discussed the question of salary reuctions. Some
said the directors would make some move along this line.
All, howcver, seemed to agree that nothing should be done until
the end of the current year.
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Federal Reserve Bank of St. Louis
ovz'rnors Conference, 0-pen market nolicy (Contid.)
aov. Harrison
said he had. tried to s,-.- cure cooneration between
the banks and borrovers, but that it would not —ork because
of uncertainty as to what Coni:ress would do.
ller said Congress acted as it dil because it could see no well
defined oolicy either of the aciministration or of the F.R..System;
that he really had some symoathy with Con Tess.
lilay 17, 1932. 131, 162, 133, 14.
N. Y. Times announces that 'Joy. Harrison has a-o-_)ointed. a District
Cocmittee, h:aded. by Owen D. Younz, to make a survey of
conditions in the District and encourage cooner:-..tion between
banks and borrowers.
At th- 3-overnors Conference last Tim slay Gov. Harrison gave many
reasons why a conference at Wathington and fo:rs:tion of District
Committee could not be carried out, at least until after
adjournment of Cav,yessi
Some thing, evidently has speeded him u-oi
LSay 20, 1932, Friday. 165.
Hoover comes out with a statement that he is pleasedat the
appointment of the N. Y. District Committee; that the other
Governors will at once fona similar Com:.- 1ittees; that he will
call them in Conference at Washington.
The Associated. Press dispatch clearly intimated that the idea of
District Cowittees manated from Hoover.
Hoover has stolen the Board's thunder, and. ushed it aside, in an
effort to claim sole ..red.it for a nlan with I7hich he had nothing
to do, and. which was originated by L:iller and C. .H. at the
Governors Conference.
Liiller originally su,ssgested this 'plan some time ago, -.before the
Governors Conference, and C.S.H. sup orted it.
Gov. lleyer, from the first, threw cold. water on it.
Gov. L:eyer is so engrssed with the Reconstruction Finance Corporation
that he has had no time for such an important cluestion as this.
The Federal Reserve Board is without a rudder and is he1cssly
drifting.
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Federal Reserve Bank of St. Louis
Governors Conference, Onen mar::et nolicy (ContId.)
Hoover has not filled the vacancy and has not even a-nointed a
Vice Governor&
nay 20, 1932. 165, 163, 167, 168.
Gov. neyer told Board he was at a dinner in Y. Y. last Wednesday
or Thursday to meet the P.R. Bank of N. Y. directors, bankers,
business men; that Ogden ::ills alSO was there; that Mills rr,.de
a fine address as to the necessity for formin,2; a District
Committee; that a Cotmittee was
once formed; that it was
found that there was much aonstructive work which could and
should be started at once.
May 23, 1932. 167, 168.
C.S.H. asd. ov. ne:rer what brought about Gov. Harrison's sudden
conversion to the plan of annointing a District Committee.
Gov. neyer said he paid little attention to aov. Harrison at fir
dinner; that the plan went throucht with a rush; that 41turrow
he was going to Chicago with Miller to form a similar Committee.
nay 23, 1932. 168.
0...H. introduced a resolution caling on each Federal reserve bank
for a survey to bring about immediate cooperation ltetween
banks and borrowers.
Gay. neyer objected, especially to the word nsurvey41.
Finally Board sent a telegram to each F. R. bank to form a District
Committee.
niller again said we should have a conference at Washington to prepare
a nrogramme, and 0..H. backed him 1.1:1).
Gov. neyer objected, saying that each P.R. bank could and should prepare
its own nrogrLmel
No action was taken by the Board&
May 23, 1932. 168, 169.
Miller says he emplainea to Hoover a week ago as to the necessity of
a conference in Washington and the appointment of District
Committees; that he told Hoover there was a plan to be worked
out by the Board; that Hoover quickly said he had no confiaence
in the Board&
niller did not know whether Hoover referred to Gov. Meyer or to the
whole Board.
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Federal Reserve Bank of St. Louis
114.
aovernors Conference, 0-)en market --)olicy (Cont'd.)
Miller says there is a mystery about the formation of the 7,7.Y.
Committee; that he is inclined to believe th,7t Mille told
Hoover about the discussion in the 7rovernors Conference,
and th;:.t Hoover directed him to o to
Y. and have a
Com.d - tee ap2o'.:nte.2. at once.
7i7V• Meyer
C.S.H. feels above would explain the sudden shift of ,
and aov. Harrison.
May 23, 1932. 169,170.
Federal Advisory Council met with Board and considered nrincinally
Traylor's suection that the F.:1. System should buy more lonL;term aovernment bonds, -which Board could not rree to.
May 24, 1932. 172, 173.
See - Feder]. Advisory Council.
iller said that at dinner of Sec. Lamont to Hoover last week
suc-estion of
Hoover told him that he had kept in mind
District Committees, etc that he sent for Gov. Harrison and
directed him to appoint a N. Y. Catimittee.
Miller said aov. Harrison had been thus directed t the time of
the aovernoro Conference, altho he made no mention of thiw to
the Conference nor, Miller thinks, even to :'rov. Meyer.
Thus while aov. Harrison 'as explaining to the Conference why it
would not be )ossible to appoint a N. Y. Confernce at least
until lonress adjourned, he had inhis ,, )ocket or in his mind
HooveIls instructions to a7)oint such a Committee imediteLyl
Miller believes Hoover instructel Ogden il1s to
tote .inner
and Tut the Committee through, and that Gov. Meyer knew nothing
about it until he heard it at the dinner.
Miller felt Hoover had been very discourteous to Gov. Meyer in not
tolcing him into his confidence, but thinks he may have broadhed
the subject to aov. Meyer and found. him, as he L..ctually was to us,
unreoponsive.
May 31, 1972. 183, 184.
Miller said Gov. Meyer was nlainly ill
explaining the N.Y. dinner to the
make the Board believe he himself
May 31, 1932.
at ease and chagrined in
Board, -,ltho he tried to
had put it throu.,2h.
185.
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Federal Reserve Bank of St. Louis
115.
30vernors Conference, Open market policy (Contld•)
A summing up of events leading up to 11. Y. dinner.
June 1, 1932. 186.
C.S.H. suggested that an abstract of the Cleveland and N. Y. Comaittoe
proceedin:p be sent to each F.R. bank.
Gov. :leyer threw cold water on the suestion an d
June 3, 1932. 190.
nothing .as done.
C.S.H. had minutes of the Governors Conference corrected, through.
Bur!=:ess, to show that he first mAl.e the suggestion of new
construction work which could and ought to be undertaken.
June 6, 1932. 194;
C.Z.H. pointed out to Board that its crnen marlmt -)olicy -the
purchase of Goverment securities, was very much interfered with
by the Bank of France withdrawals; that, since A'L-)ril 6, 11,2,
about 750 millions of Government securitie:7 have been 7urdhased,
but that nearly 500 tdllions of this has been taken by Bank
of France withdrawals, only 2010 went totaking down of discounts
and the same per cent of increase of member bank excess reserves.
June 9, 1932. 196, 197
Grae, Olyve
See -Lloore, BalLird.
Grant, Cataerine
C.S.H. wl'ites, a Cliristmas letter.
Dec. 21, 1931. 27.
C.S.H. receives a very depressed letter from.
"I've wanted to ao all the Chris
sins I could
this year, for perhaps 'T. may never have
another real Christuas1 By :alother L-2ar we
may all be doing manua1. labor and real
frivolities be thins of the nastl So her,7 1 5
to the nresentt"
Dec. 28, 1931. 33.
Catherine sends C.S.H. a sweet letter of thanksfor the Christmas
-,resents to the dhildren.
Dec. 30, lrl. Y.
sen.is Catherine a ion: letter.
Feb. 26, 1932. 84.
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Federal Reserve Bank of St. Louis
.rnt, Cc.therine (CantId.)
Received, letter from. Said she had_ had. a slie-ht attack of
bronchial -memento fro.a -hich she Tr.d. entirely receoved.
11:1rch 3, 19. 2. 86.
H. P. H. roc-ives a ion:- letter fror., cted .:ay 13.
ay 16, 1932. 131.
Veynes
We :meet, at dinner at Gertrude 1.:yer's.
Feb. 28• 1932. 84.
Great Britain. 8
See — Dulles, John Foster
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Federal Reserve Bank of St. Louis
117.
Hale, nary
See - Chase, Howland
Hale, Rachel
Platt said his wife was at school with, in Y. Y.
Dec. 8, 1931. 5.
We called on.
Delihted to see us.
times. She
C.S.H. said he had been taaoted to call her up sevcral
seemed disan7)ointed and said, "Why didnit your
:nythinf,*
On leaving she said "remaaber to call me un and tell me
of interest".
C.:3.H. believes she really missed his calls.
Dec. 19,1931. 2.
with
Sends us a Christmas card with :)icture of "Chubby" her do:,
had
she
which
died,
had
Chubby
sayin7
back
a note on the
told us Saturdoy when re called.
Dec. 21, 1971. 27.
C.S.H. writes, thanking her for the ahrist..11s card.
Dec. 22, 1931. 29.
Gertrude :,yer said shelas to dine with, tomorrow.
Dec. 24, 1931. 31.
with
rs. Rodgers told us that, went to N. Y. to spend Christ.las
bed
nary; that after lunch she was ill and had to cp to
and could not come down to dinner; th,t the was worried about
Rachel; that the best ex:pert in Baltimore coald find nothing
wrong about hor, but ordered her to rest, rest, rest.
Dec. 27, 1931. 32.
O.H.S. calls on.
het Col. Rodgers, Ellen Leonard, and 7ancy Wa Ten there.
Kisco
Ro.chel .said some one had told her that the society peo.Dle of
who had ostracized Gov. and nrs .Mayer, had cheekily written
to ask her to Tom hor house at.Westchester for same social
entertainment; that :rs. neyer renlied regrettinc that under
the cird'Imstances, she could not darlply with their request.
All praised her for this.
Jan. 5, 1937. 36.
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Federal Reserve Bank of St. Louis
F-de, Rachel (Contld.)
Calls on H...H. -Tith Gertrude 1.;yer.
Jan. 22, 1932. 47.
0..H. calls o--1
4 ,
:011
her of Bessie Stevens nrojosed trip to Foxcroft and H.P.H.lp
efforts to get accom.alations for her.
She said at once she would ask Bessie and his daudater to stay with
her and asked 3.F.H. to Give her Bessie's Y. Y. address.
H.P.H. called up Rachel and Gave it.
Jan. 29, 1932. 51.
0..H. writes, sending a copy of, one of Dr. B, tier's addresses, and
telling 1Ler that her grandfather, Simon Cameron, acted with the
after his election tothe Senate in 1845. There
Democratic )arty
was then no Re ,ullican party.
Jan. 30, 1932. 51.
C.S.H. clled un Rachel's house.
The maid said she
as recciving.
C.S.H. called but was told she was out.
Later, C.S.H. called her u) and She said she was at Dr. Bur:zels, the
oculist.
The maid at the door had ased me if I
as 1..r. Wylie.
Rachel said this was a.ndre7: Wylie Who was calling to see Donald.
3.6.H. said there was much of interest to talk with her and she said
she hoped C.S.H. would soon try again, which 0.S.H. said he would
do next week.
She did not seem over—anxious to hear about current events, aitho
very )olite and courteous.
0..H. believes she is tired out, .na thinks he will jive her L. rest.
Feb. 12, 1932. 68, 69.
Bessie Stevens and ,-augther arrive at Rachel's. 71.P.H. talked with
her over the telenhone.
Feb. 19, 1932. 771 78.
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Federal Reserve Bank of St. Louis
Rachel (
H.P.J. .;oes to Rachel's to cc.11 on Bessie Stevens.
Bessie said. Rachel said, "Tv did. I not think to invite the
Haralins to rae -t out"
Rachel was dinin- out.
Feb. 20, 1932. 78.
Rachel was thoughtless in not asking us.
H.P.H. said :lary Chase and. her baby were with Rachel; that ::p..rz,r
their Mother as ion: as Howland.
said. they Quid stay
Feb. 0, 1932. 78.
would let them.
Ire meet, at lunch with CT'ertrude
Feb. 28, 1932. 84.
C.S.H. calls on.
, as ...ary
She said. she had decid.ea to sell "His Lord.shi-d 1 s Kindhe.s:.;"
sum
..er.
the
durin:
her
with
said she could not live there
▪ told her that he met a -rs. Hennin:, wife of the corres-2ondent
of the Chicago Tribune, at suer at ::rs. H.arrillanIs; that
she said she had a friend, who wanted to leo.se a house for
-_,ar "'His Lordshi -)1 s Kindness", and. that she
the sumer n ,
asked him if he :clew of -zty such place. C.S.H. said he would.
get in touch rith ::rs. Hen in if Rachel wished, and. she
asked him to do so.
:larch 4, 197,2. 86.
• called 11. i- La's. Hennin[..: who said. her friend. wished to lease
and not by, and she asked if Rachel would lease it.
C.L.H. said. he ail not kar; but asked. her to -rite or tele:hone
Rachel.
wrote Rachel about .!:; .1is tallr sendinf, it by s--)ecial
I.Lrch 4, 1932. 87.
thanking him for his letter and saying she
Raeh7.1 wrote
would. consider a lease if lirs.Henn.LIc followed the matter up.
Ilarch 7, 1932. 87, 88.
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Federal Reserve Bank of St. Louis
120
Hale, R;Achel (Contld.)
C.S.H. called un Rachel to see if she was at home. She said
Yes and would love to see him, but felt she oucht to say
that Gertrude had just tblelhoned she 77as camin7 to
C.j.H. said he would call later in the ':eek and added, jocosely,
that he was just a little jealous of Gertrude, which. pleased
Rachel immensely.
23, 1932. 106.
called u2 Rachel but found she had :one away.
:.ar.31, 1932. 112.
C.6.H. calls an, and has a _:ood talk with her.
Aril 7, 1932. 118.
C.E.H. told Wyatt that neither :.rs. Hale or :lary had evern szpoken
to him about it before Howland Chase a2lo1ied for a -oosition
under the Federal Reserve Board, 2..thoutsh he know them both
very well.
Ay)ril 14, 1932. 126.
Rachel called u2
at his office and said sh* was very much
interested in Howland Chase's a2j1icr:Aion.
3.J.H. told hr the only criticism he had heard was that he
seed very quiet and unassuming and did not seem very forceful.
She said the matter was absolutely in Wyatt's hands but that he had
tola him that if his choice fell on Ho—land he would be very
much -,-)lesed.
She said Howland was still with the Y. Y. firm which had told
_in that if he decided to leave there, they would be lad
any time to tIce him bad:.
t
C.S.H. said it would not be settled for some days, and. th:t he
would came around and se -, her soon.
AT)ril 15, 19Er. 128.
Called 1.1- Rachel to sEvy I was sendin: her a coy of the book on
Federal Reserve Act nuMishe:1 by P.R. Bank, Richmond, and
told her to asi: Howland to read it to got a good idea of
the Federal Reorve Act. ale w. s very gratefal.
said Wyatt would. -Drobably not decie.o the matter for several
days.
Anril 17, 193'. 132.
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Federal Reserve Bank of St. Louis
121.
HL:.le, Rachel (Contld.)
but that
C.S.H. called. up Rachel, saying there was nothing new
nothin
that
taald
unders
would
she
he was ho)eful, and that
tent
comDe
al
sever
were
there
Where
was certain in a case
.en available.
She s-id she understood this 'perfectly.
said nothin: about Iflyatt.
April 20, 19--. 1r4.
if any of Howland's relatives, - irs. Hale, whom
ached
said No,
he knew so well, had spoken to him about Howland. He
and C.S.H. said no one had spoken to him either.
April 21, 1932. 174, r5.
ntment.
C.S.H. called. u„? Rachel to tell hc:r of Howland's ap_oi
ns, but would
:lary said her :other was away visitin:7 Virginia (garde
return at the end of the week.
was deliThted and most grateful.
Later Hbwland came in and said he had wired Rachel.
April 26, 1932. 144, 145.
29, 1.112,
Rachel wrote 0.3.H. a very grateful letter, dated April
Chankin,:: him for his interest in Howland.
April 29, 1932. 151.
this and tomorrow
C.S.H. called 11.) Rachel who said she was to be out
p.m. but ,:'anted very =eh to see him.
from N. Y., the
C.S.H. said he would call her up when he returned
last of the week.
April 29, 1932. 151.
her about
Gertrude Llyer called and said Rachel had tele-;honed
..H.
Howland, and that she su:):)osed C.S.H. had arranged it..C
said he was apDointed strictly on his merits.
::.ay 2, 1932. 151.
friend
meets John Walter at dinner with Dr. Butler, an old
nay 4,1932. 154.
of K.P.H.
C.,.H. called on Rachel.
Had
.- cnt,
no chance to tell her Trrticulars about H3wlandiS a.:70C i.ntr.
, -ere there.
:
as Howland and
7, 192. 1L7).
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Federal Reserve Bank of St. Louis
122.
Hale, Rachel (Contld.)
Gertrude nyer got in a fling at Rachel, saying she would consiCl.er
Howland's aT)ointment a favor to the Federal Reserve Bottrd
rather than to Howland to have him 7:11in: to act as Assistrnt
Counsel, a rather queer statement to m,-.1:e of one of her closest
friends and an executor under her will
nay 11, 1937. 159, 130.
0.H. calls 11:7 Rachel and tag her the Lindberdi baby has been
May 12,1932. 160.
found murdered.
We called on Rachel :mci. C.S.H. told her the vihole story about
nay 19, 1932. 164.
Howland Chase.
nrs. Rodgers told H.P.H. that Rachel left yesterEay for His
May 26, 1932. 161.
Lordshits Kindness.
C.S.H. sends Constance Williams (Lode) two humorous letters
May 31, 1932. 165.
frau Sen. Locloe.
sends Sen. Gillette a humorous letter frau Sen. Hoar
as to his ladlc of musical sense.
May 31, 1932. 163.
We meet, at dedication of a monu_lent to Gen. Myer at Fort. Myer.
June 2, 1932.189.
Hamlin, Anna.
We meet 3eorce Gordon, Anna's old friend, at su2-)er at :rs. Harriman's.
Feb. 7, 1932.. 55.
H.P.H. as God-mother to Marjorie Wrightle (Key) dhild gives her the
last of Anna's rattles.
Mar. 19, 19321 97.
7e attlnd funeral services at St. Ar4nes Church - Father Anderson Anril 26, 1932. 143.
In memory of Anna.
Our wedding anniversary.
Such happiness and yet such suffering thinl:..ing of Anna's tragedy.
June 4, 1932. 192.
tv'
Hamlin, C.S. (ICA4bti
Sarah Carey said it was ,7enera ly believed that if a De-.1. President
were elected, 0.3.H. would be Sec. of the Treasury.
Dec. 23, 191. 31.
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Federal Reserve Bank of St. Louis
123
Emnlin, C. S. (Contld.)
Sara
. J.ves C.S.H. her photograph marked "Pram his best zirl."
;
Care
Dec. 23, 1931. 31
At Board meeting C.S.H. was only momber who was willin‘_; to :o to
Dec. 29, 1931. 33.
White House reception •
C.S.H. added a clause in letter to Gov. Calkins asking him to .
mediate in Transamerica Corporation dis-lute that the Board
took this action in theptlic interest without a request from
Jan. 8, 1932. 39.
any one.
/4‘,,,tfAdt
Lim. McClellan Axes precedence togaluiren, Chief of Division of
St4te Department over C.S.H.
Jan. 31, 1932. 52.
C.S.H. agrees to Miller's draft of Sec. 3 as revised, but reserves
richt to send Glass his own draft, - Feb. 10, 1932. 64
C.S.H. sends his draft of Sec. 3 to Glass.
Feb, 11, 1932. 66.
0.-6.H. votes not to send Board's reoort on Gkitss emergency bill
unles2 and until asked by Senate Caa.ittee.
Feb. 15, 1932. 76.
C.S.H. suggests Board rely to Glasp, that it will submit its report
on Glass bill, but asks for a he:-.rinr, after submission.
Agreed to.
Mar. 18, 1932. 95.
C.S.H. gets Board in its report to Glsss Cannittee to recommend member
bank collateral ndes secured by eligible paper be extended to
90 days maturity.
C.S.H. tried to get recommendation for higher rate on member bank
collateral notes secured by Government bonds but failed.
Mar. 27, 1932. 108.
C.S.H. and later Miller induced Board to change .enort of Golaenweiser
Committee to it and to recommend divorce of security affiliates
Mar. 27, 1932. 109.
within 3 years.
C.E. believes the unanimous agreement of Board in its report on
Glass banking bill is an unequivocal indorsement of its direct
pressure policy of 1909 and is one of the most important
actions ever taken by it. Mar. 30, 1932. 110.
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Federal Reserve Bank of St. Louis
124.
Ha:alin, C. S. (Cont'd.)
C.S.H. publish_s let or in 7. Y. Times on World Court.
April 2, 1932. 113.
nrepares memorandum criticism: Gov. Harrison's letter to
Glass objecting to Sec. 3 of Glass banking bill, showing
that Harrison in his testimony before, Senate Cortait ee
and also Owen 2. Thum: f7.vore:1 everything contained in
Sec. 3.
C.T.H. sends this to Glass and sives each memb r a coy.
Anril 8, 1932. 119, 120, 1-1.
C.S.H. Doints out to Governors Cnnference that t' ere is a
endbargo on credit in
1 932. 122.
A2ril
ctical
C.S.H. tells Governors he favored giving Federal re-erve banks
nower to buy commercial paper in anen market; that this power
was in an early draft of Federal Reserve Act but later
ower to
was dropped; that he wants to coz,2roluise by
Federal reserve banks to buy eligible naner in times of
stress from member banks without their indorsi-ment; that
this was formally considered durinz the war, but no ction
April 22, 1932. 122, 123.
taken.
0.6.H., James and L'Aller felt that all Federal reserve banks which
could should participate in onen market purchases, even
ly
if not u) to full pronortionate share and the latter to an'
to Board for relief under Glass emergency bill.
A:ipril 22, 1932. 124.
This view nrevailed.
wires Dean Pound, of Harvard Law School as to Howland
Chase, and sets a favorable reply.
A)ril 25, 1932. 143.
3.S.H. objects to Gov. Harrison's cable to Gov. Norman, encouraTins
ear mar'kinc of sold and disclosing discount -)olicy of
April 19, 1932. 146, 147, 146, 149, 150.
P.R. System.
Goed to N. Y. - Carne:ie meeting.
ilay 4, 1932. 151.
3.5.H. tells Governors there is much construction work which could
be and should be done, and that even if it aid not nroduce
eligtble paper the P.a. banks could take care of much of it
under Glass emergency bill.
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Federal Reserve Bank of St. Louis
125.
Hamlin, C. S. (Contl d.)
This
was the first constructive idea -placed before the Governors,
or any one else, and later was taken up by the P.R. District
Oomiaittees.
May 17, 1932. 162, 163.
C.S.H. sends a letter to Lichtenstein answering his intimation of
nolitical influence in Board and System in 1928.
Sends coy to each member of Federal Advisory Council and Board
and to Lichtenstein.
lay 19, 192. 164, 165.
C.3.H. introduces resolution for a survey of credit conditins in
each Federal Res rve District. Slightly changed this was
ado)ted.
May 23, 1932. 168.
C.S.H. brins un Lichtenstein dhErges before Board.
May 23, 1932. 170.
C.S.H. states Lichensteinis defense.
May 23, 1932. 171, 172.
See - Liche-nstein.
su ,
,
. estion of new construction work made before Governors
was omitted in Burgess report of the minutes.
C.S.H. had this corn-cted.
Nay 28, 1932. 180, 181.
C.S.H. sends amendment to Glass exam )ting Board. and staff from
salary cuts of Economy bill.
Glass later had this, or rather one covering this adopted by
Senate.
June 2, 1932. 187, 191.
See - Economy bill.
C.S.H. sends Glacs another amendment e:em)ting Board and staff
from lii.iitation of annual leave to 15 days, and limiting
travellinp7 expense to $5 per die..
June 3, 1937. 191, 192.
0..H. amazed at ov. Harrison for attending at White House a metin,-;
of Re)ullican Senators.
June 5, 193:. 1?,5.
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Federal Reserve Bank of St. Louis
126.
Ha-lin, 3.
S. (Contli.)
See also: Atlantic National Bank
Baker, Newton D.
Burzess
Carnegie Faundation
Carey, Sarah
Chase, Howland
Connor Club
DeLon-,
Discount rates
Ernst, Helen
Feleral Reserve Bank, Cleveland
Federal Reserve Bank, r. Y.
Federal reserve notes
Glass
Glass bill
Goldenweicer
Governors Conference
Grant, Catherine
Hale, Rachel
Hanley, Alice
Hardy, Cheoter
Harrison, Gov.
Hoar, Senator
Hoover
Jame_
Magee
Meyer, Gov.
Miller
Mills, Ogden
Llyer, Gertrude
Noell
01.)en mv.rIcet o)erations
2e .ninzton, ::rs. Louis
Reconstruction Finance Cor)oration
Valentine & Co.
White House
Williams (Lodge) Constance
Wilson, ::rs. Woodrow
Wino
World Court
etc. etc. etc.
Ha,.]lin, George Jr.
Droj?ed, down 5 years on Somerset Club waiting list.
Did same for Edwrd, Jr. sane ttne azo.
Liar. 28, 1932. 109.
Hamlin, Harriet
We taL:e supper with. Feb. 28, 1932. 84.
We lunch with.
Liar. 3, 1932. 87
27, 1932. 108
A)r. 17. 1932. 132.
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Federal Reserve Bank of St. Louis
1,*'7•
Hamlin, H. P.
Attends tea at Woman's National Democratic Club in h onor of
Dec. 4, 1931. 3.
::rs. Wilson.
Writes :Irs. DeLong we have decided to close the farm and sell the
stock; that we would continue her a- cz.:etaker at $50 per month;
that we would allow Chstor Hardy while recuperating from his
illness and pending his getting another job, $30 per.monthr
provid,ld he made a satisfactory arrangement with Liz's DeLong
to nay board out of this and so such light work as site
call on him for; this not to be wages but a ten:-)orary aid to
hi
le lodkin:: for new work.
See Vo. 220 Scrap book.
Dec. 11, 1_31. 9, 10.
H.P.H. sends siailar letter to Chester Hardy.
Dec. 11, 1931. 10, 17.
Dines with Grace Bigelow, IT. Y.
Dec. 13,1931. 13.
Goes to liorgan Library
ith Grace Bigelow.
Took tea with Bessie Stevens.
Dined with :Ir. :P2 :Irs. Dean Sage.
Dec. 14, 1931. 17.
Gertrude :Iyer calls and gives, a box containing needles and threads
for Christmas.
Dec. 24, 1931. 31.
H.P.H. calls on Gertrude :yer to thank her for Christmas )resent.
Jan. 2, 193-* 35.
:rs. ::cClellan at dinner gives precedence to Hornbeck, Chief of
Division of State Dept. aver C.S.H. and to
Orme Wilson
of Y.Y. over H.P.H.
Jan. 31, 1932. 52.
Acts as Godmother at christening of liarjo .ie Wright(Key)s daughter
and gives her the last of Anna's rattles.
Liar. 19, 1932. 97.
Birthday, 59 years old.
41:)ri1 8, 1932. 119.
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Federal Reserve Bank of St. Louis
124
Hamlin, H. P. (ContId.)
Replies to Cons:. Howards attack on Federal Reserve Board at
lunch of Woman's rational Dem. Club. Demands nroof and
Ho 17ard sits 1own in confusion.
:he Club i:ie.,-Ibers were all delighted.
April 11, 1932. 1;2.
Lrs• Emily Newa11 Blair tole_ H.P.H. that l•ov. Meyer threatened
to resigi when Dawes was appointed President of Reconstruction
Finance Cori:)on::.tion, as also from P.R. Board.
March 1, 1932. 84.
Replies to Con:. Howard's attack cn. Federal Reserve Board at lunch
of Woman's National Dem. Club. :ands proof and Howard
sits down in confusion.
Aril 11, 1932. 122.
andlaiies of
Lunches with List. Meyer to meet ::rs. Ogden
Federal Reserve Board and Reconstruction Finance Corporation.
April 18, 1932. 133.
Goes
to r.Y.
with C.S.H.
C:Irnegie meeting.
May 4, 1932. 151.
C.b.H. meets John Walter at dinner with Dr. Butler — an old English
May 4, 1932. 154.
friend of H.P.H.
and H.P.H. drive with Clertrukle Myer in her machine.
called her up cazrin: we would call, anJ. she suy ested a drive.
May 11, 193P. 159.
Calls on families of F.1 Board with L:ary Chase (Hale)
June 1, 1932. 187.
Our 34th wedding anniversary. June 4, 1932. 192.
See — Anderson, Larz
Bayard, ..rs.
Daniels, Jose )hus
Dinners
Hale, Rachel
Lunches
Rodgers, Mrs.
Su -y)ers
Teas
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Federal Reserve Bank of St. Louis
Hanley, Alice
r t $48, 1: ter changed
A.-;rees to work for us as coo:: for the sumue
to $50 a mo
June 3, 193:-. 192.
rding, President
h relating to an
Dr.Butler said. he wrote the part of, Iowa s-)eec
not to reject the
Association of Nations; tt he begged him
Assocttion of
League of Nations, or at least to favor an
ha.d advised just
Nations; that later Harding told him Huihes
ers of the ".t1,-)dea1
the o - osite; that Harding deceived the sic
of the 31."
Dec. 14, 1931.16.
. a ticket to
Presidents Harding and Coolidge always sent 3.S.H
Hoover sent a
diplomatic door at Whit e Hoix e rece2tions but
ticket to the East or 7-)ublic door.
Jan. 21, 1937. 46.
Hardy, Chester
9, 10, 17.
See - Hamlin, H. P.
letter stating that the
3.S.H. sends, a check for December bill and
on Jan. 1, 1932.
new arrangeuent - $30 -oer month - would begin
Jan. 26, 1932. 48, 49.
Harriman, L.:rs. Borden
Ile took supper with.
71e met there George Gordon, Annals old friend.
Gov. Ritchie was also there.
Feb. 7, 1932. 55.
See - Henen, .:rs. 86, 87.
Harrison, Floyd
relLting to
Says State Daot. sends ccrpies of all cables etc.
of F.R. Bai
son
Federal Reserve System direct to Gov. Harri
.
of N. Y. irr tead of throuch the P.R. Board
Dec. 7, 1901. 5.
year. Mere
Board decide.1 to grant no salary increases for next
woman, but
one
were several meritorious c .,..ses, es-oecially
Gov. 1.:eyer -)ositively objected.
son, who was then
Yet Gov. itleyer,when Board appointed Floyd Harri
on mang his
ted
getting $10,000 on Farm Loan Board, insis
50:2, and.
of
cora)en:.)., tion 4z,315,3 ')er, - an inc rease
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Federal Reserve Bank of St. Louis
130
112..rrison,Floyd (Cont' 3..)
insisted on riing Morrill as secretary $12,0:T0 in --lace
of $10,000 he was receiving as Counsel nd Secretary of
the Farm Loan Board, — an increase of 205%
:Toy. Meyer also had a stenographer a)oointed for orrill, increasing
her cmnens_tion from P0040, Which she was receiving from the
Farm Loan Board, to $2100.
Dec. 11, 1931. 12.
Goes
.ith Gov. Meyer and Morrill to a Congressional Committee to
urge passage of Reconstruction Finance till providing for
emergency legislation affecting Fit. Act.
None of Board were told of thisl
It seems almost grotesque to have 3 ex—members of Farm Loan Board
speaking for the interests of the Federal Res..orve Systea.
Dec. 18, 1931. 24.
Goes again to ConLTessinal Committee to sneak for Reconstruction
Finance Corporation, 7:ith Gov. Meyer and Morrill.
ro notice to Board.
Dec. 19, 1931. 25.
Wyatt says no reouests for legal.oninions came fram 3ov. Meyer;
that they all came from Morrill or from.
He said all letters and documents before going to Gov. Meyer had
to be checked by Morrill or Harrison.
Dec. 22, .,.931. 28.
Mo2ri1l and, prepared list of Board Can%ittees for 192.
Dec. 30, 1931. 34.
After White House Conference concerninc alass emergency bill there
was a conference at Treasury at whidh Glass, .3ov. Meyer,
also Sen. Walcott.
-Floyd Harrison, et al, were )resent,
None of Board were inviedl
Feb. 11, 193?. 65.
s-.2ealcs to, about a -)osition for Edward Bonditch under
Reconstruction Finance Cornoration.
88.
Mar. 7, 193
Wyatt said he introduced Howland Chase to Morrill and, they thought
he lacked force, and could not get a clear statement from him
as to the kind of legal work he had been doin7for his firm.
April 14, 1932. 126.
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Federal Reserve Bank of St. Louis
131.
H,Irrison, Floyd (Contld.)
Wyatt said Liorrill and, both a .reed to ay) ,Intment of Howland
Chase.
April 20, 193. 134.
C..H. told Miller that, and all a7reed thero must be created
a new -position in Counsel's office.
April 21, 1932. 135.
Harrison tried to get Gov. Meyer in N. Y. to authorize notifying
Chase of his appointment.
April 21, 1932. 135.
Gov. Meyer askr, that Chase's appointment be held up until he heard
from Felix Frankfutter.
:1,S.H. feels if Board had been as cautious about Harrison's
appointment, as about Chase, it would still be pending.
April 22, 1932. 140.
Wyatt said Harrison, Morrill, and every Board member had checked
Chase's a-)pointment.
Later Harrison said not to notify Chase until he had seen Wyatt.
April 26, 1932. 143.
Harrison told Wyatt that Frankfurter had telehoned him, - after
wirinc Gov. :eyer- that Chase had not received a single mark
in Harvard Law School, z , bove mediocrity.
A ril 26, 193. 14.
Wyatt gave Dean 'Polindlz telegram to Harrison who took it to
Gov. :.:eyer and the matter was settled.
katl 26, 1932. 144.
We call on Mr. & Mrs.
May 15, 1932. 161.
0.6.H. read to, his proposed amendment sent to Glass to examot
Federal Reserve System fram salary cuts and he fully a7)-proved it.
June 7, 1932. 195.
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Federal Reserve Bank of St. Louis
Harrison, Governor.
A nj cje
Abuse of P.R. facilities. 21, 24.
Acceptance policy. 16.
Acceptances. 39.
Affiliates, Security. 34.
See - Security affiliates.
Allied debts. 17.
Amendments.
See - T.R. Act.
Approval of F.R. Board.
See - P.R. Board.
-BB.I.S. 2.
Baker, Newton D. 33.
Bank credit. 27.
Bank of lngland.
See - Norman, Gov.
Bank of France
4, 5, 16, 17, 45, 62.
Bank pool. 1, 14.
Banks, Failed.
See.Failed banks.
Bond pool. 1, 14.
Bond prices. 1, 14.
Bonds. 13.
Borrowers and lenders, Cooperation. 51.
Bourbonish. 34.
Branch banks. 34.
Burgess. 2, 20, 32.
Business recession. 1, 12, 16, 57.
Olt c)...m.
Cable
See - Norman, Gov.
Central bark.. 42.
Coker, F.R. Bark, Richmond. 7.
Collateral, F.R. notes. 11, 19.
Commercial paper. 19.
Commodity prices. 48.
Compromise. 22.
Conference. 25.
Conference report, Glass emergency bill. 25
See - Governors Confernce
Democratic Conference
Republican Conference
(Page 132-k follows)
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Federal Reserve Bank of St. Louis
Confress. 51, 53.
Construction work. 52.
Conversion of Gov. Harrison. 54, 55, 59.
Cooperation, Borrower and levier. 51.
Credit e6bargo. 11.
Debentures. 10.
Deflation. 11, 16, 49.
Democratic Senators, White House. 58.
Deposit withdrawals. 13.
Deposits, Bank of France. 4, 5, 41, 45.
Depression
See — Business recession.
Direct action, P.R. Board. 48.
Directors, Removal of. 34.
Disarmament. 17.
Discount policy. 16, 42.
Discount rates. 28, 39, 40, 41, 44, 48.
Discounts, Paying off of. 39.
Discounts, Power to refuse. 21, 34.
See — Rediscounts.
Divorce of security affiliates. 34.
Dominating influence. 22.
Dulles, John Foster. 8.
Earmarking of gold. 40, 41, 62.
Easing policy. 40.
Eligibility. 10.
Eligible paper. 34.
Ikabargo, credit
See
Credit embargo
Emergencies. 10,15.
Excess resermas. 11.
—77acilities, P.R.
See — P.R.facilities.
Tailed banks. 1.
Federal Liquidating Corporation. 34
Federal Reserve Act. Amendments. 11, 15.
Federal Reserve Bank, New York.. 4, 5, 18, 30, 38, 39, 42, 62.
(Page 132—B follows)
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Federal Reserve Bank of St. Louis
132-1
Bank, Richmond. 7.
banks. 21.
Board. 25, 26, 31, 34, 39, 40, 42, 44, 60.
District Committee.
51, 52, 53, 54, 55, 59, 60.
Federal reserve facilities. 21, 34.
Federal reserve notes. 11, 12, 13, 15, 37.
Federal Reserve System. 22, 33, 34.
Firming policy. 39.
"For others" Loans
See - Loans "for others"
Foreign correspondents. 39.
Foreign loan policy. 18.
Free gold. 11
Federal
Federal
Federal
Federal
Reserve
reserve
Reserve
Reserve
.4-
$
Glass. 3, 9, 10, 11, 18, 19, 23, 24, 25, 32, 38, 39.
Glass banking bill. 20, 23,24, 25, 32, 34.
Glass emergency bill. 26, 31.
Glass SUbCommittee. 21, 33, 35, 39.
Gold.. 1, 11, 13, 37, 40, 41, 44, 62.
Goldenweiser. 20, 32.
Government securities. 11, 13, 15, 19, 22, 27, 37, 41, 48.
Governors Conferences. 11, 22, 27, 37, 49, 53, 55, 59, 80.
Grayson, Admiral. 57.
Hamlin, C.S. 4, 5, 6, 9, 10, 17, 21, 22, 24, 33, 34, 36, 39, 42, 44,
53, 54, 55, 57, 59, 61, 62.
Hearing, Public
See.Public hearing.
Hoarding. 1.
Holding companies. 34.
Hoover. 55, 57, 58, 59, 60, 61.
Hoover- Laval agreement. 4.
•
4
Inflation. 16.
Insolvent banks
See - Failed banks
Lamont, Bee. 59.
Liquidity. 13.
Loans "for others!'. 11.
(Page 132-0 follows)
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Federal Reserve Bank of St. Louis
Magee. 22.
Weber bank collateral notes. 19, 34.
Member banks. 31, 34, 39.
Member banks, Abuse of P.R. facilities. 21, 24.
Memorandum in reply to Gov* Harrison, C.S.H. 36.
Memorandum, Gov. Harrison. 34, 38.
Meyer, Gov. 16, 17, 25, 30, 31, 40, 43, 47, 53, 54, 60, 62.
Miller, Dr. 59.
Mills, Ogden. 17, 20, 32, 53, 55, 56, 57, 58.
Moret, Gov.
See - Bank of France
N. Y. Bankers. 8.
N. Y. banks. 29.
N. Y. Journal of Commerce. 3.
N. Y. Times. 8, 45, 52, 56, 58.
Norman, Gov. Bank of Zngland. 40 , 41, 42.
.110011
Officers, Removal of. 34.
Open market conference.
See - Governors Conference.
Open market operations. 34, 39, 41.
Open market policy. 22, 41, 42, 49, 62.
"Out of a job". 29.
Policy
Acceptance. 16.
Discount. 16, 42.
Firming. 39.
Foreign loan. 18.
Open market. 22, 42, 49.
Politics. 61.
Pool, Bank. Bonds. 1, 14.
Power, F.R. banks. Refusal to discount. 21, 34.
Practical banking officers. 30.
Prices. 11, 14, 27, 48.
Public hearing. 32.
(Page 102-D follows)
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Federal Reserve Bank of St. Louis
133.D
Railroad rate and wage question. 1, 15.
Reconstruction Finance Act. 10, 12.
Reconstruction Finance Corporation. 16.
Rediscounting. 2D.
Rediscounts, Refusal of. 21, 34.
Reduction of salaries. 50.
Refusal of discounts. 21, 34.
Regulations, Glass emergency bill. 26.
Reparations. 17.
Removal of officers and directors. 34.
Republican Conference, White House. 56, 61.
Reserve Committee report. 3, 34.
Reserves, Facess.
See.Zxcess reserves.
Rounds, INF.. Bank, New York. 30.
-5Salaries. 7.
Salary reduction. 50.
Section 3, Glass bill. 23, 24, 34.
Security affiliates, Divorce of. 34.
Security prices. 48.
Speculation. 39.
Stabilization hearings. 48.
Standstill agreement. 8.
State Department. 4, 5.
Stolk market. 48.
Sub-committee.
See - Glass Sub-committee
Sullivan, Mark. 4, 6.
Surplus. 26.
Tariff. 17.
Trading purposes.
22.
Wages,
See - Salaries
Wages, R.R. 1, 15.
Wall Street. 24.
Wall Street banks. 23.
Wall Street Journal. 3, 46, 47.
Washington Conference
See - P.R. District Committees.
Washington Post. 56.
Willis, H.P. 2, 3, 9.
Withdrawal of deposits. 13.
Lyatt. 20.
-YYoung, Owen D.
32.
(The aid)
3,
(Page 133 follows)
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Federal Reserve Bank of St. Louis
133.
Harrison, Gov. Federal Reserve
3an, . Y.
w .7e question is not sileedily
1. says that if railroad n-,tc.
settled, the decline in bond values will continua and
make -any more banks insolvent; that DeceMber, January,
and February rel.e the months of greatest bank insolvencies;
that an increase in bank failures mitt cause a renewal
of foreign damand for our cold and bring about an increcze
of hoarding at home; that, how?ver, if said Railroad problems
were settled the banlm were ready to or:anize a nool to
buy 500 millions, Which would turn the tide.
Dec. 2, 1931. 2.
2. He bitterly att_aled Dr. Willis, saying that he was bitterly
and unpatriotically att.cking the Federal Res:rve System in
the Paris pa)er which he represented; that he as largely
responsible for the decline in the American dollar in France;
that Bur:ess in addressing the B.I.S. dispelled this fear
but that Willis attacked him charging that his fir.'ures
were 10 days old, implying that present filures would
reveal a differmt )icture.
1931. 1-A, 1-B.
Dec.
3. He also charged that the U.Y. Journal of Commerce published the
Resrve Cammittee renort before any other paper and before
it had been released; that he believed that Willis obtained
a co )y from Glass and betrayed his confidence.
Gov. :leyer -pointed out, after joining in the criticism of
Willis, - that the Wall Street Journal correspondent told
him he had data in his nossession revealing the Reserve
Committee remrt, before, even, it had been printed.
Dec. 2, 1931. 1-B.
4.
The desoatch from the State Department stating that the assistant
of Gov. 1.1oreau of the Bank of France told a member of
our FAmbassy staff that the Federal Reserve Bank of New York
had asked the Bank of Prance not to withdraw its denosits
without notice, was then referred to by C.S.H.
C.S.H. also referred to an article by :lark Sullivan in Washington
Star of Oct. 27, 1931, stating that the Hoover-Laval
understanding contained an agreement that the Bank of France
Bank of N.Y.
would not withdraw its denosits from F.
turnin,2 demand
practically
thus
without de-finite notice,
deposits into time deposits.
Dec. 2, 1931. 1-B, 2.
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Federal Reserve Bank of St. Louis
134.
Harrison, Gov. P.R. Bank of New York (Conttd.)
5.
Gov. Harrison said there was absolutely no truth in these
statements; that, on the cantrar:-, he had told. the Ban::
of France that it could have its deposits back at any
time and that, in the future it could not increase
denosits in the P.R. bank through m4sturing bills, but
must either earmark or en--)ort such sroceeds.
Dec. 2, 1931. 2.
6. Later he same into 0.3.H.ts office and repeated the above,
adding that :lark Sullivan's statement was a very serious
misstatement which he would take up with
Dec. 2, 1931. 2.
7. He agreed with all the other Governors arainst a uniform
cut in wages as advocated by Coker of P.R. Bank of Richmond.
Dec. 2, 1931. 3.
S. N. Y. Times nraised, for his snlendid services in inLucing
the N. Y. banks to join the standstill agreement, - concerning
which John Foster Dulles told the Board they were foole1 by
the Britishl
Dec. 11, 1931. 8.
9. Glass told 0.3.H. that Gov. Harrison's charges against Willis
were not true; that he had carefully investigated them.
Dec. 16, 1931. 20.
10.
11.
met Gov. Harrison in the corriddr. He said he had just
been before the Glass Committee an.. that Glass would fight
as to Reconstructi)n Finance
the broadenin of
said he agreed with Glass
Harrison
debentures. Gov.
in emergencies only to take
-lower
giving
would
prefer
and
1931. 25, 26.
Dec.
19,
its debentures.
Governors Conference.
Gov. Harrison outlined theseriousness of the present situation.
He said that credit had been deflated 6 billions in two years;
in addition, a deflation of 5 billions in loans "for others";
that nrices were still falling; that bans feared to loan in
order to renain liquid.
He said he had tolL Glass he favored an amendment permitting
P.R. notes to be issued against any collateral F.7. banks
have flower to accuire, - specifically Govt. securities;
that the free ;sold was now down to 4 or 500 millions, altho
the excess reserves wire over a 'pillion; that the necessity
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Federal Reserve Bank of St. Louis
134
Harrison, Gov. P.R. Bank of rew York (Contd..)
of using these excess reserves in lieu of commercial paper
as collateral for P.R. notes was becor.ing a menace to the
Jan. 11, 1932. 40 (1)
System.
7inance
the Reconstruction'
12. He said that c,uick passage
Act and of the above amendment as to collateral for P.R.
notes would j_ve a fair chance of turning the tide of
Jan. 11, 1932. 40 (1)
depression.
13. He said it might be necessary to buy a further large amount
of Government scurities, not, how ver, just t the present
time, but possibly in the near future.
He said there
the alternative: —
1. A. bold course. Purchase of Govt. s-c-Irities to try
to prevent iel;osit withdrawals, together with
substitution of bonds for gold behind P.R. notes
if this su Tested. amendment be passed
Or,
2. Keep Federal reserve banks liquid at any cost to meet
withdrawals of deposits, assuminr that such
withdramls will go on as at nresent at the
rate of 25 per year.
Gov. Harrison said he preferred 1, — the bold coursc.
Jan. 11, 1932. 41 (1)
14. He spoke of the N.Y. bond pool which bous.ht enouch in January
to keep nrices -table.
He said if above provisions were enacted into law, the Pool
would undoubtedly buy enou,th bonds to nut un rices, —
perhans to par.
Jan. 11, 1932. 41 (1)
15.
lov. Harrison said he contemplated nurchasinG Govt. securities
in large amount only in case this should be necessary
followinc the correction of the R.R. wage siguation and
Dassace of P.R. note amendment; that he was fearful an
emergency might arise within 2 or 3 weeks, requiring such
Jan. ii, 1932. 41 (1, 2).
purchases.
16.
Gov. Lleyer read to Board co2y of a cable fr.= Governor Harrison to
Governor ::.oret of Bank of France explaining the ystem's
discount and acceptance nolicy and the Reconstruction Finance
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Federal Reserve Bank of St. Louis
136.
Harrison, Gov* F.. Bank of New York (Contld.)
Act, nointing out that it was not inflationary but merely an
attempt to check credit deflation and bring about a return of
normal conditions.
Jan. 19, 1932. 43.
17.
Gov. Ueyer said he had for a long time been considering
with Gov. Harrison the advisability of asking the Bank
of France to withdraw all its deposits, and that
Ogden Lulls thorouhly ap-)roved.
C.S.H. fears this is a nolitical move of the administration,
through Gov. neyer, nills and (ov. Harrison, to punish
France for her attitude as to renar-,tions, disarmament,
Allied debts and tariff.
Jan. 19, 1932. 4, 44, 45, 46.
18.
Sen. Glass called.
He was very bitter towards Gov. Harrison and F.R. Bank of
New York.
He said that lov. Harrison, by his foreicp loan )olicy, had
nearly bankrupted the F.R. Bank of N. Y.
Jan. 25, 1932. 49.
19.
Glass :11.id Gov. Harrison told him that the chance from
Government bonds to commercial parer as collateral for
member bank collateral notes could be made within three
supnly of commercial pa2er,
months, as there was an am:le
while Glass said his bill allowed 2 years within whidh
to make this exchange.
Jan.28, 1932. 49.
20.
Wyatt said Ogden Mills called up Gov. Harrison and asked
him to send down Burgess to act with Goldenweiser in
examinine: the Glass banking bill. 52.
Feb. 1, 1932.
21.
O.S.H. found thLA Gov. Harrison in his testimony before the
Glass Committee favored Tiving power to Federal
reserve banks to penalize member banks for abuse of
Feaeral reserve facilities; that he said the power to
refuse discounts existed now and that he had so advised
the Board wn he was its Counsel; that the specific
grant of such a nower would strengthen the Board.
Feb. 9, 1932. 58, 59.
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Federal Reserve Bank of St. Louis
137.
E:‘rrison, Gov. Fed ral Res,Jrve Bank, N. Y. (Oontld.)
Magee ::aid he believe that Gov. Harrison was the
daminating influence in the P.R. System.
C.S.H. said a majority of the Governors were at heart
opposed to Gov. Harrisonls 02en market policy and
were unwilling to give him the leeway he wanted, but
that they camnromised at the last mo..ent, generally.
said, e.g. Gov. Harrison might want to buy 500 millions
of Governments and the Governors, not wLntin to bu y any
more, compromised and a,zreedcn 200 millions.
Llagee s Ad Croy* Harrison -2robab1y asked for more than he
really wantet, for trading 2urposes.
Feb. 12, 1932. 37, 68.
23.
Glass told. O.E.H. that the Wall Street banks were fi-:hting
Sec. 3 of his banking bill, through Gov. Harrison.
Feb. 13, 1932. 72.
24.
0.6.H. told Glass that the meliorandum he sent hi:a showed that
Gov. Harrison favored in his testimony, about all covered
by Soc. 3.
Glass said Yes, but 70.11 Street has forced him now to object
Feb. 13,1932. 72, 73.
to Sec. 3.
25.
Gov. Meyer told. Board of a conference at Treasury to diocums
Glass emergency bill conference report, at vihich Glass,
Gov. Ileyer and Gov. Harrison were nresent.
The Board knew nothing of thisi
Feb. 24, 1932. 80.
26. Board discuosed regulations for Glass emergency bill.
Gov. Harrison said two courses wore onen: 1. Permit emergency loans u-) to s4- 100',; of P.R. banks
surplus
Or,
2. Pass on each particular case as it aros1.
He favored 1.
Feb. 24, 1932. 80, 81.
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Federal Reserve Bank of St. Louis
138.
Harrison, Gov. Federal RefIc'rve Bank, N. Y. (Contld.)
27.
Governors Conference.
authority to buy 250 millions of Govelliments,
Gov. Harrison as
say 25 per week.
He s,=.id bank credit in relatila to prices was never so low
as now; that prices gen?rally ran aloni. with bank
cre2it; that if bank credit were not increased, prices
would surely drop to lower levels.
Feb. 24, 1932. 82.
28. Says he will ask his directors to lower discount rates
tamorrow by I- of lro.
Feb. 24, 1932. 83.
29.
Gov. Harrison said the B. Y. ban]...s were not rediscounting.
Some asked him if he could not make thenrediscount.
He said Yes, but that if he did, he would Lc) abroad, and
not for purpose of consulting the central banks,
but because he would be out of a jobs
Feb. 24, 193. 85.
30.
Gov. Ileyer told Board that exceptin„; Rounds, the Federal
Reserve Bank of 'Jew York had not a sin:71e practical
officer experienced in bankin, and he specifically
included Gov. Harrison in this stateaent.
Liar. 3, 1932. 85.
31.
Gov. 1:.eyer told Board that Gov. Harrison thoutht it not
proper for the Board to send a letter to the P.R.
banks asking them to send it to member ban::x on
subject of G.lasc emergency bill.
Gov. :leyer said he would ask Gov. Harrison to write as to
his objections.
nar. 9, 1932. 90.
32.
Glass wrote Gov. ileyrr that 3urgesF and Goldenweiser in
preparinz their re-)ort on the Glass bill were in
consultation with Gov. Harrison, Lulls, and
Gov. 1:eyer; that his Committee, through himself,
offered to give the Board and Gov. Harrison a
public hearinc but that both declined.
Y.ar. 22, 1937. 100.
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Federal Reserve Bank of St. Louis
139.
Harrison, Gov. Federal Re7 - rve Bank,
r. Y. (Cont'.)
33. Sue ests desirability of retaining Newton D. Baker to
anpear before the Glass Sub-cammittee on behalf of the
Federal Reserve :,ystem.
C.S.H. feels this shows that Gov. Harrison is desperate
with his back to the . all.
Ilar. 23, 1932. 104, 105.
34.
C.S.H. got from Gov. I.:eyer a co7y of Gov. Harrison's letter
and memorandum to Glass Committee protesting against
Glass bill.
A most "Bourbonish" document
While it approved generally 22 sections of the bill, it said
13 of these were not necessary now and should be postoned.
Amnts these latter were the Board's suggestion of divorce
of security affiliates, open market operations, 90-,1ay
member bank collateral notes secured by eli7ible paper,
supervision of holding caa)anies, -pwer of ra:loval of
officers and directors of member banks.
It opposed:
1. Power to close discount window and nenalize member
banks for abuse of F.R. facilities.
2.
Yew reserve provisions of Reserve Committee.
3.
Separation of bank and security affiliates.
etc. etc.
It favored immediate action only, (a) Federal Liouif._atins Cornoration
(b) Branch bank
Gov. Harrison's letter said:
"There do not apnear to be any narts of the bill
for which there is imperative need for immediate
legislation." Yet the memoranduri did favor
Federal Liquidating Coroaration and branch banks.
On the subject of Sec. 3 Gov. Harrison's letter said:
"The power to refuse discounts in Sec. 3 and to
sus-2end 2.:. privileses would be ineffective
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Federal Reserve Bank of St. Louis
140.
H.:risen, Gov. Federal Reserve Bank,New York (Contld.)
and would involve responsibdities for the manazeillent
and operation of indivi,',unl banks which it would be
imoossible for the Federal reserve banks or the Federal
Ra.erva Board to fulfill, and. the assum)tien of hich would
be hall-Z./1 to the Reserve System as a whole, -na to the
individual member banks.
Aoril 8, 193 . 119, 120.
35. Yet he and Owen D. Young testified to just the opposite before
the 1ass Omamittee.
(See analysis of letter and memorandum in scrap book, Vol.
226 or 227)
A ril 8, 1932. 121.
36.
nrenares emorandum in reply to Gov. Harrison's letter
and ::emo. (6ee scran books)
April 11, 193. 121.
37. Yleetinj with Governors,
Gov. Harrison wanted Board to issue a statement that Federal
reserve banks could deposit their Governments and take
down the cold behind Federal reserve notes.
Aril 12, 1932. 124.
38.
a co -y of his rely to Gov. Harrison's letter
Glass sends
He said he should denounce the Fe::.eral re:-,rve
and
bank on the floor of the Senate. (See 227 scrap boo :s)
Aril 17, 1932. 133.
39.
Gov. Harrison answers Glass's letter.
He said, amonE other thins, that all open mr.rk-t operations
were approved by Federal Reserve Board. He forrfets,
how ver, the action of F.R. Bank of N. Y. in 1928 when
under authority from Board merely to meet fall _amands for
credit, it _ ,urchased so many acceptances that the member
banks not only met .he credit demand but were able to
take down 193 millions of discounts, the P.R. Bank of N.Y.
actually holdin: for itself and foreign corresnondents,
2/3 of all the accentances outstanding, thus turniaL; the
Board's firming nolicy into an easing policy which increased
the sloeculative fever.
(See C.S.H. article on direct nressure)
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Federal Reserve Bank of St. Louis
141.
Harrison, Gov. Tederal Reserve Bank, N. Y. (Oont'd.)
Gov. Harrison admitted that this was an error, in testifying
before the Sub-committee.
Gov. Harrison's letter to Glass repeated 4.ae old cry that the
only way to ston speculation was throucjh discount rate. and
Open market open market operations. This was very foolish
of him. He seems to hrve lost his headl
April 18, 1932. 145, 146.
40.
Gov. Meyer reads a co--)y of Gov. Norman's cable to Gov. Harrison
and reply of latter, dated atoril 14 and Aril 16, 1932
respectively.
Gov. Harrison in letter to Gov. Meyer said. he had already read
to Gov. Meyer his reply cable.
Gov. Meyer had never mentioned this to the Board.
Gov. Norman's cable sta ed:
1. The necessary for increasing holdins of funds
in N. Y.
2.
Suggests earmarking and asks Gov. Harrison's
o)in_on as to this, but assumes he will not
favor it.
3. He epxects to maintain an easy credit situation
and will probably further reduce the bank rate.
4. He is averse to any plan which might react
disadvantageously on "you!'.
5. Asks for.Gov. Harrison's frank comments on these
ideas. Says he has not yet spoken to any
one else. (See scrap book).
April 19, 1932. 146, 147.
41.
Gov. Harrison in his rely cable dated April 18, 1932, said:
1. Our energetic open market operations will rc2su1t
in loner rates on Governments, bills and
probably deposits.
2.
This will cause you great difficulty in em_)loying
your funds.
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Federal Reserve Bank of St. Louis
142.
Harrison, -ov. Federal Res rye Bank, N. Y. (Contld.)
41. (Oontld.)
3. Zarnarking of -old seams the locical course
for you if you are forced to increase your
holdins of dollars.
4.
We have no objection to earmarng your 7,o11
Lnd will cladly accommodate you.
5. Zannarking may be misinternreted in this country
and should be tined so as to have the least
nossible reaction against our nrogn...inme.
6. Lowering your rate may Lt.ffect the reaction and
may imply your symnathy with our nrogrruame.
42.
dhiT
7.
Asks Gov. Norman to define his olenmarket
8.
In view of our past and prosnective )urdhases of
Governments, our discount rate is ineffective
- or
and
be so even though reduced to 27;
even2,
9.
Of some advantage to 1Jave our discount rate Where
it is, as it may induce the member banks to use
the funds we are giving them.
April 19, 1932. 147, 148.
C.S.H. feels that Gov. Harrison's cable should have been submitted
to Board for approval as it is in effect an official
statement of our 7orospective discount rate and open Lr.rket
policy, which should have been approved by the Board.
The cablegrf.ms read as if they were interdhanged between two
sovereigns.
Gov. Harrison has prenared to taks upon himself the declaration
of future -Dolicies of the P.R. System, treating the F.R.
Bank of N. Y. as if it were the central Bank of the U.S.
417:ril 19, 1932. 148, 149.
43.
Gov. :4eyer, on ;3.nri1 22, 1932, acknowledged Gov. Harrison's
letter and codes of the cablegrams, and thanked
Harrison for his "courtnyu in sending the co - ies.
Ajril 22, 1932. 149.
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Federal Reserve Bank of St. Louis
143.
Harrison, lov. P.R. Bank of Nev York (Contld.)
44.
C.S.H. -oredicts t.h.L'A as the result of sold exports, Gov.
Harrison 7,i.11 ultimately s',1,7 est hier discount r:.tes
to cheek such exoorts.
None of the Board agreed with him.
April 29, 1932. 151.
-2ranise
is trying to scure
withdraw dnosits, so that our
them.
1932. 153.
45.
N. Y. Ti.des says aov. Harrison
from Bank of France not to
banks can safely expand on
gay 7,
46.
The Wall Street Journal prints a cable to same effect.
May 7, 1932. 153.
(See scran books)
47.
C.cc.H. brought up above at Board meeting.
Gov. Meyer said he knew it was not true.
May 9, 1932. 153.
48.
aov• Harrison, on A ,ril 13, 1912, told Senate Canmittee —
statilization hearings — that in 1928 and 1929,
- curity prices
can,dodity rices were falling whle s :
were rapidly rising; that under such circumstances, if he
followed the nrinciDles of the proLiosed stabiliztion
bill, he would 1I.ve had to buy 7:Tovernments and lower
discount mtes to keep the commodity orice level stable;
that this would hire fed the syculative fire.
Yet Gov. Harrison in 1929 when caamodity prices . ere
wanted rc).dically to increase discount rates in order to
break the stock market, regardless of the crushin,_ effect
of such a oolicy on busines: and agriculture&
He abandoned can::Lerce and agriculturel
(See testimony, D. 465)
Clearly the direct action policy of the 3ora to 7ive business
and agriculture the rates they deserved, and to check
sD?culation by cutting down speculative credit, — was
the correct 7)o1icy.
Gov. Harrison in 1929 had his e:e fixed on the stockret
and forLpt com_prce and industry.
May 10, 1932. 154, 155.
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Federal Reserve Bank of St. Louis
144.
Harrison, Gov.
na. Bank
of New York (Contld,)
49. Meeting with Governors.
Gov. Harrison said the open market nolicy was, on the
whole, working satisfactorily; that it had apparently
checked deflation.
May 17, 1932. 162.
50. Gov. Harrison said cutting of rages at F.R. Bank of N.Y.
May 17, 1932. 133.
was inevitable.
51.
Gov. Harrison said he had tried to bring:bout cooperation
between borrowers and lenders in 7.Y. but that he
could not succeed because of uncertainty as to what
Congress would do.
This was his principal excuse for not favoring formation of
a District Com:Attes.
May 17, 1932, Tue:day.
163, 164.
52. N. Y. Tines announces that Gov. Harrison has appointed a N. Y.
District Committee to cope with the credit situation, —
headed by Owen D. Youn:,-.
May 20, 1932. Friday. 165.
53. At the Olen Market Conference last Tuesday, May 17, 1932,
and Miller's plan
Gov. Harrison gave reasons Why
fora Washin -ton Conference of bankers and business men,
followed by formation of District Committees, was not
advsiable, at least until after Congress adjourned. Some
to actiont
one has evidently spurred
May 20, 1932. 165.
Gov. Meyer told Board of a dinner lext week, probably
Thursday, at which Ogden Mills, Gov. Harrison, the N. Y.
directors and he were present.
He said Ogden Mills made a very forceful address advocating
the formation of a District Comaittee; that a Committee
was at once formed; that all agreed there was mu&
construction work Which could and Should be done, thus
decreasing unemployment.
(O.S.H.,at open market conference on nay 17, first made
this su,:.:gestion, as to construction work. See supra p.163)
May 23, 1932. 167, 168.
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Federal Reserve Bank of St. Louis
145.
Harrison, Gov. P.R. sank of New York (Contld.)
54.
C.1.H. asked Gov. Meyer to explain Gov. Harrison's sudden
conversion to the District _Omittee id -a.
Gov. Meyer aid he paid little attention to -that Gov. Harrison
said at the dinnes
C.L'.H. said Gov. Harrison's conversion was as startling as that
of St. Pauli
May 3, 1932. 168.
55. Miller said there was a mystery about Gov. Harrison's conversion;
that he, Miller, over a week ago told Hoover of his plan
for a Washington Conference and District committees; that he
thinks Mills may have also told Hoover about the discussion
at the Governors Conference, and that Hoover may have
ordrred Mills to -o to Ne7 York and see that Gov. Harrison
at once ay?ointed a Com..ittee.
C.S.H. feels this may explain the sudden conversion of Gov. Harrison
and of Gov. Meyer as well.
May 23, 1932. 169, 170.
56. N. Y. Times speaks of a 7athering of Renublican Senators at
White House with Hoover, and that Ogden Mills was present.
The Washington Post says Gov. Harrison also was present.
May 30, 1932. 182.
57. Later Ogden Mills said that Hoover heard that Gov. Harrison
was snending the week-end with AdraLral Grayson and asked
Gov. Harrison to came over to White House to di2cuss
"business conditiondm.
feels Gov. Harrison visits Hoover altogether too much.
May 30, 1932. 182.
58. N. Y. Times says Hoover has a conference with Ogden Mills and
Democratic leaders, and that Gov. Harrison was there.
May 31, 1932. 182.
59. Miller told C.S.H. that he was at the Lamont dinner to Hoover
last week; that Hoover told him he had kept in mind his Miller's - suggestion of a Washington Conference followed
by a))ointmont of P.R. District Committees; that Hoover
said he sent for Gov. Harrison and directed him at once
to appoint a N. Y. Committee.
This explains Gov. Harrison's sudden canversieni
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Federal Reserve Bank of St. Louis
1.46.
Harrison, Gov. 1.3. Ban:: of New York (Contld.)
59. (ContId.)
S.H..believes that Gov. Harrison had this ord'r when he
was at the Governors Conference on hay 19, 1932. but he
said nothing about it and even deprecated the appointment
of a N. Y. Committee.
Lay a, 1932. 183.
60.
To sum unt
Hoover secretly sent for Gov. Harrison and ordcreillim
to formn a N. Y. District Comaittee. (Supra p. 183)
Gov. Harrison concealed these instructions from
the Board, and, presumably, from Gov. Meyer.
Gov. Harrison concealed them also from Board and Governors
J1212 1 1932. 186.
Conference.
61.
C.:3.H. fears that presence of Gov. Harrison at Hoover's
conference with Rel)ublican Senators (See suora p. 182)
may give ris, to political attacks against the P.R. System.
June 5, 1932. 193.
62. Gov. I:eyer said Gov. Harrison was contamolatinG intimating to
the Bank of France that it must eammar.c all its deposits
in 71.. bank - now less than 100 millions.
C.S.H. pointed out that the Bank of France withdrawals was
seriously hamnering our open mar12t policy.
June 9, 1932. 196, 197.
See - Bank of Prance.
Harvard Law School. 143, 144.
See - Chase
Prankfurter
Ha7-Adams House
C.S.H. moves from Cosmos Club to.
Dec. 2, 19,31. 1.
To close restaurant %fter Saturday of this week, except for
Lay 31, 193 • 182i
breakfasts.
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Federal Reserve Bank of St. Louis
147.
Hearst
Woolley said he knew that Gov. Roosevelt arranged to have,
call him on tele?hone; that he did so and that they conferred
la. 9. 1932. 57.
together.
See - Woolley
Heckersen, Baroness Van
Mr. Van Lennart and, of the Oxford Group, called on us. She and
her sister, formerly Lady in Waiting to the queen, and.Count
John Bentenek, whose father gave asylumto the Germn Emperor,
all travelling with the Oxford Group.
May 18, 1932. 164.
We had a lunch at Woman's Denocratic Club for Count John Bentenek
and Baroness Van Heckersen.
Present: Mr. & Mrs. Delano, Mrs. Newlands, Hrs. Frazer, Gertrude
Myer, and Miss Hegerman.
May 21, 1932. 167.
W.H. sends colly of Rector of Presbyterian Church to the Baroness.
may 23, 1932. 173.
Hagerman, Miss
We lunch with.
'Feb. 7, 1932. 53.
Apr. 24, 1932. 142.
May 22, 1932. 167.
We have, at lunch to meet Count John Bentenek and Baroness Van
May 21, 1932. 167.
Heckersen.
Helm, Edith
Calls on us.
Just returned from Europe.
lob. 4, 1932. 54.
We dined with.
April 2, 1932. 113.
Dines with us.
May 12, 1932. 160.
Henning, Mrs. 86, 87, 88.
See - Hale, Rachel
Houston, Ex-Secretary
Up-Attorney General Palmer told, he would send him a copy of
Ldhnan's opinion against validity of security affiliates,
if he wished for it.
C.S.H.Is diary.
May 11, 1932. 157.
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Federal Reserve Bank of St. Louis
148.
Hill, David Jayne
Mar. 2, 1932. 86.
Death.
Hires, Gen.
We meet, at dinner at Robert Lincoln O'Brien's.
April 7, 1932. 118.
His Lordship's Kindness
See - Hale, Rachel
Hoar, Sen.
C.S.H. sends Gillett a humorous letter from, years ago, telling
of his lack ofappreciation of music and saying the only
music he could ag2reciate was the music of a jury giving a
verdict for the Plaintiff When he was counsel for the Plaintiff.
May 31, 1932. 185.
See - Scrap books.
Hoarding
Gov. Meyer said, was gradually subsiding.
If hoarding ceases and banks resume loaning, all will be well.
Mar. 3, 1932. 85.
Goldenweiser says no danger from gold exports; only danger is
from domestic hoarding.
June 9, 1932. 198.
Holding canpanies
Morrill said Glass asked him to draw a modified affiliat divorce
bill excluding, and confining the divorce to sister and
subsidiary affiliate 3.
April 5, 1932. 114.
"Honorable
State Department no longer addresses Board members as.
See - Protocol
State Dept.
Title
Hoover, President
C.S.H. calls to Gov. Harrison's attention the article written by
Mark Sullivan in Washington Star of Oct. 27, 1931,
that the Hoover-Laval agreanent provided that Bank of Prance
should not withdraw its deposits in P.R. Bank of N.Y.
without definite notice.
Gov. Harrison absolutely denied this, and said it was a serious
Dec. 2, 1931. 2.
misstatement.
See - Harrison, Gov.
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Federal Reserve Bank of St. Louis
149.
Hoover, President (Contsd.)
Hoover in message to Congress favors broadening of eligibility
in times of stress. He said he had been informed that a
majority of the Governors of the Pederal reserve banks
favored such a broadening.
He did not mention the }Federal Reserve Board.
The Board had talked this over informally and all except Miller
favored intermediate credit debentures as collateral for
meMber bank collateral notes When the maturity did not exceed
six months.
This was the principal question in Hoover's mind at that time.
The Governas, three dissenting, had favored Lombard loans in
anergencies.
Hoover never asked opinion of Board, but preferred evidently to
ignore itl
Dec. 8, 1931. 5, 6.
Glass told C.S.H. he had talked with Hoover s2veral times within
the last 3 weeks; the last time being only two days ago; that
be was densely ignorant of all banking qlestions, - pitifully
ignorant.
Dec. 16, 1931. 19.
None of the Board except C.S.H. wished to attend Hoover's New
Year's reception.
Gov. Meyer treated the matter as a joke and asked C.S.H. to
represent the whole Board, which C.S.H. said he would do.
Dec. 29, 1931. 33.
Gov. Meyer interrupted Janes Who was talking of automobile
extravagance, and asked him what he thought of "two for each
person" evidently referring to one of Hoover's campaign
speeches in 1928.
C.S.H. feels that Gov. Meyer went out of his way to ridicule Hoover.
Dec. 29, 1931. 33, 34.
Josephus Daniels told H.P.H. that Rowland Morris acted as Counsel
for Col. Smedley Butler in the matter of his attack on
Mussolini which was being investigated; that he informed
Sec. Adams that If the matter was pressed, he should bring
out the fact that during the Boxer uprising Hoover was
found in a cellar disguised as a woman, and was dragged out
by Army officers; that this threat paralyzed Hoover; that he, Morris - wrote the letter of apology sent by Col. Butler
and also the reply of Sec. Adams.
Jan. 1, 1932. 35.
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Federal Reserve Bank of St. Louis
Hoover, President (Contid.)
Hoover invites us to Congressional reception but senls ticket
for East door - the one for the general public.
President Hardine;and Coolidge always sent us tickets to the South
(Diplomatic) door. We did not attend.
Jan. 21, 1932. 46.
C.S.H. feels Hoover alone will be hap y at Gov. Smith's announcement
of his candidacy and his statement that he is the leader of
the Democratic Party. Feb. 7, 1932. 55.
Miller says Hoover hates the N.Y. banks but fears them; that no one
could predict What his attitude would be as to giving Board
the power to penalize them for abusing P.R. facilities.
Feb. 9, 1932. 59.
Miller said that some years ago, when Hoover was drafting his
annual message, he asked him to read it; that it contains
extraordinary praise of the P.R. System; that he, - Miller told him he was ashamed of the P.R. System; that by its open
market operations it had encouraged a secondary speculative
movement in 1931.
He said later Hoover told him the P.R. System was a failure.
Feb. 9, 1932. 59.
Miller said Glass called him up and said that Holver waned. the
Federal Reserve Board to lower member bank required reserves.
C.S.H. told Miller such action, even if legal, would be a red
flag of danger at the present time and might bring about a
general moratorium and throw us off the gold standard.
Miller agreed with C.S.H.
Feb. 10, 1932. 63.
Morrill tells C.S.H. that Hoover, at a White House Conference
at White House had brought about an agreement to divide the
Glass banking bill into two parts:
1.
Mmergency classes
2. Other legislation.
Morrill said it was agreed to press 1 and postpone 2 for the present.
Feb. 10, 1932. 61, 62.
The Board had never heard of above agreement.
How did Morrill know of itt
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Federal Reserve Bank of St. Louis
151.
Hoover, President (Contod.)
It was arranged by Hoover behind the backs of the Board
mamberst
Feb. 10, 1932. 64.
The N. Y. Times announces the above agreement, stating that the
energenay provisions will be pushed by the Administration.
Feb. 11, 1932. 65.
N. Y. Times also speaks of another Conference following this
agreement at which Glass, Gov. Meyer, Morrill, Burgess, et al
were present.
No mambe*s of Board knew of this except Gov. Meyer!,
Hoover is evidently working on his own initiative, utterly
ignoring the Boarli
Feb. 11, 1932. 65.
The above explains Morrillss knowledge of the agreement.
Feb. 11, 1932. 65.
Gov. Meyer told Board of Hoover's breakfast conference and above
agreement at Ahidh Glass was present.
Feb. 11, 1932. 65.
Glass claims that the agreement above as to emergency powers was
limited to I year, while Hoover and the others think it was
agreed that the limit could be extended, for cause.
Feb. 12, 1932. 66, 67.
Glass said Hoover told him at the White House breakfast conference
that Burgess and Goldenweiser were mppointed to represent
the Federal Reserve Board; that he would stand behind any
plan for amendments of F.R. Act agreed upon by him, - Glass,
a Democrat, - and Sen. Walcott, Republican, and Burgess and
Goldenweiser, representing the Federal Reserve Board.
Feb. 12, 1932. 73.
Miller said Hoover sent for him late yesterday p.m.: that he went there
and met him and Mrs. Hoover; that before leaving, Hoover said
he hoped he.Miller- would use his influence with Glass to
straighten out the emergency legislation.
Miller said he had no doubt but that some had asked Hoover to say
this to him.
Feb. 15, 1932. 75.
Gong. Gifford succeeded n getting a ticket for H.P.H. to Congress
to hear Hoover's address at the opening of the Washington
Feb. 20, 1932. 78.
bi-centennial.
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Federal Reserve Bank of St. Louis
Hoover, President (Contld.)
Hoover has asked authority from Congress to reorganize
all Departments, and asking for 4 or 5 more assistant
secretaries.
Under this C.S.H. believes Hoover could transfer the F.R. Board
and put it under Sec. of Treasury or any other Cabinet officer.
The Democrats will opposed this and rightly.
Feb. 21, 1932. 79, 80.
Gov. Meyer
felt it
and the
Act was
told the Governors at the Governors Conference that he
his duty, as Governor of the F.R. Board, to tell Hoover
Congressional Comaittee that the Reconstruction Finance
wise and necessary.
Gov. Meyer never consulted the Board as to any amendments or
provisions in this Act, - especially the energenc7 provisions
as to debentures, but contented himself, as above, by merely
stating what he ka
....d done, without any authority from the Board.
Feb. 24, 1932. 80.
At the above Hoover breakfast conference it was agreed that if
Glass would consent to the anergency clauses of his banking bill
being pressed for immediate consideration, Hoover would support
later the rest of his banking bill, in so far as Sen. Walcott
and Glass could agree.
They did agree and Willis was directed to prepare a draft of the
agreement for the Sub.canmittee; that when drawn, Walcott went
over it with Burgess, Goldenweiser and Wyatt and were satisfied
that it did not represent the agreement between Glass and Walcott.
Mar. 14, 1932. 91, 92.
See - Glass bill
Willis
Gov. Meyer read to Board a letter from Glass stating that Burgess
and Goldenweiser were delegated by Hoover to represent the
Treasury and the Federal Reserve Board.
Mar.22, 1932. 100.
Ogden Hills said Homer could not have stated as above.
Mar. 22, 1932. 101.
Miller said Hoover had him at lunch today; that Hoover did not speak
of the Glass bill but that he, - Miller-brought up the subject;
that Hoover did not know of the latest draft and asked him to
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Federal Reserve Bank of St. Louis
153.
Hoover, President (Contld.)
send him a copy with any suzestions he cared to make;
that Hoover finally agreed with Miller that every effort
should be made to secure some bill which Glass would accept.
Mar. 22, 1932. 103.
C.S.H. believes Hoover has turned over the whole matter to Ogden
Mar. 22, 1932. 103.
Mills and Gov. Meyer.
O.S.H. and Miller feel that Mills and Gov. Meyer are more eager to
have the Glassbill rejected rather than amended, but we also
believe it would be suicidal for the Hoover administration to
reject the bill, as this would make it a political issue,
and Glass could fairly claim it was an alliance between Wall
Mar. 22, 1932. 103.
Street and Hoover.
Daiger told C.S.H. that Glass and the Sub-committee felt that
Hoover, Mills, and the Comptroller had not played fair in
having the Thompson-Beedy liquidating bill introduced, and
that they forced Hoover to have it withdrawn.
April 5, 1932. 115, 116.
Gertrude Myer tells H.P.H. she is to dine with President and Mrs.
Hoover tomorrow to meet Miss Sinms, - a friend of hers, who
April 6, 1932. 117.
is staying there.
Castle's new "Hoover doctrine of non-recognition of territory
seized by force was ridiculed at Carnegie meeting. It
originated in Cleveland's Harvarian message, and in the Pan
American conferences, beginning with the first, later in. the
Institute of Internationalism, and finally in the Pan American
Conference of 1926 which sent it to all South American
Bspullics.
Andrew Carnegie worked for it in first Pan American Conference.
The trustees felt Castle was either densely ignorant or deliberately
trying to put on Hooverls shoulders what did not belong there.
May 5, 1932. 152.
Hoover gives out a statement that he was pleased at formation of
P.R. District Committee in N.Y.; that the other P.R.
districts should follow suit; that he would be glad to invite
the Governors to confer with him in Washington.
The Associated Press worded the dispatch to read as if Hoover himself
had started the Committees.'
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Federal Reserve Bank of St. Louis
154.
Hoover, President (Contd..)
Hoover again robs the P.P. Board of all credit and takes the
leaderehipt
As a fact C.S.H. and Miller started these Committees.
Ma1,21, 1932. 166.
Hoover has not yet filled the vacancy in the Board nor even
appointed a Vice aovernori
May 21, 1932. 167.
Miller told C.S.H. that Hoover sent for him over a week ago, just
after breakfast, May 14, 1932; that he was with him an hour;
that he explained to him the necessity of appointing Pederal
reserve district Committees, preceded by a conference of bankers
and business men in Washington; that he told Hoover that was
a task for the P.R. Board; that Hoover quickly said he had no
confidence in the P.R. Boardi
C.S.H. asked Miller Whether he was referring to Gov. Meyer or to
the whole Board, but Miller said he did not know.
Miller is inclined. to think that Mills told Hoover about the
discussion in the Governors Conference as to P.R. District
Committees, and that Hoover ordered Mills to go to New York
and. put through the appointment of such a Committee.
May 23, 1932. 169.
Miller said Hoover trild to run everything from the White House, and
that while Speaker Garner was very undiplomatic in Berne
that if Hoover would only be quiet for 30 days, all our
troubles would be settled, he was, in part, at least, justified.
Miller said that Hoover, — as Sec. Lane said in 1921, was one of
the greatest advertisers this country had evern known.
May 23, 1932. 170.
Gov. Meyer asked the Board for suggestions as to present
difficulties, but in such a quick casual way, that C.S.H. felt
he did not want any suggestions but preferred to tell Hoover
the Board was all at sea.
May 26, 1932. 177.
N. Y. Times speaks of a conference of Republican Senators with Hoover
at the White House,at which Ogden Mills was present.
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Federal Reserve Bank of St. Louis
155.
Hoover, President (Contld.)
The Washington Post said that Gov. Harrison was also present.
Ogden Mills explained in the Washington Post that Hoover heard
that Gov. Harrison was spending the week-end with Admiral
Grqvson and asked him over to the White House to discuss
Na business conditionN.
May 30, 1932. 182,
C.S.H. feels Gov. Harrison sees altogether too much of looverl
May 30, 1932. 182.
Hoover has White House Conference with Democratic Senators and
Ogden Mills.
W. Y. Times said Gov. Harrison was present.
May 31, 1932. 182.
Miller told C.S.H. that he was at the dinner given by Sec. Lamont
to Hoover last week; that Hoover tolihim he had kept in mind
Miller's talk as to a Washington Conference and appointment of
3.11. District Canmittees; that he had sent for _Gov. Harrison
and directed him at once to appoint a N. Y. Committee; that
at the Open Market Conference on May 19 Gov. Harrison must
have had these instructions but never mentioned them to the
Board or Governors.
May 31, 1932. 183.
Miller said Hoover instructed Ogden Mills to attend the dinner in
N.Y. and put throughthe appointment of the CanAittee; that he
believed Gov. Meyer kmew nothing about this until he was at
the dinner; that Hoover had been very discourteous to Gav. Meyer
in not tdking him into his confidence.
Miller felt that probably Hoover must have previously talked it
over with Gov. Meyer after his
Miller's - talk with Hoover
and that probably Gov. Meyer threw cold water on it.
May 31, 1932. 183, 184.
Resvmes
1. Hoover learned from Miller that Board intended to appoint
P.R. District Committees and discussed It at Open Market
Conference.
2, Hoover secretly sent for Gov. Harrison and directed him
at once to appoint a N. Y. Cammittee.
3. Hoover concealed these instructions from Gov. Meyer.
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Federal Reserve Bank of St. Louis
156.
Hoover, President (Contld.)
4. Gov. Harrison concealed than from Governors Conference and from
Board.
5.
The morning of announcement of appointment of N. Y. Chmmittee,
Hoover gave out a statement of pleasure at its agpointment
and expressed a willingness to call the Governors in
Conference at Washington to help in formation of similar
Canmittees in the other P.R. districts.
6. Hoover deliberately snatched this plan from the Board and appropriated
it to himself.
7. Hoover is a glutton of the lime lights
June 1, 1932. 186,187.
Hoover addresses Senate denanding a manufacturers excise sales tax.
The Senate ignored Hoover and passed its own tax bill.
A decisive rebuff.
June 1, 1932. 187.
We meet French Strother at dinner with Mr. & Mrs. Wyatt
.the literary
secretary of Hoover.
June 1, 1932. 187.
C.S.H. fears that Gov. Harrison's presence at a Republican meeting
at the White House last Sunday (see supra, D. 182) may be the
base of political charges against the F.R. System.
June 5, 1932. 193.
Bishop Rhinelander told C.S.H. he was much disturbed at the veiled
intimations of impeniing trouble in Hoover's addres to Senate
favoring the sales tax.
June 9, 1932. 198.
Hopkinson, Charles
Mrs. Samuel Eliot told. us that her brother was painting a portrait
of Ex.President Coolidge for the White House; that Coolidge wrote
him giving dates for sittings and added in the letter that he
hoped he would not scrimp either in paint or canvas as he wished
the portrait to live foreverl
April 10, 1932. 121.
Hornbeck. U.
At dinner with Mr. & Mrs. George McClellan, Hornbeck, Chief of a
division in State Department, was given precedence over C.S.F.
Jan. 31, 1932. 52
Houghton, Amb.
Explains to Carnegie trustees the
breaking up of the Paris Peace
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Federal Reserve Bank of St. Louis
157.
HouE:hton, Ambassador (Conttd.)
Peace Conference Ahich he -tended.
Dec. 14, 1932. 15.
House of Repre-lentatives
La Guardilof N. Y. moved to strike out clause in Reconstruction Finance
Act making the Governor of Federal Reserve Board an Ex-officio
madber, accanganying them with a bitter attack on Gov. Meyer.
This failed by narrow margin. Vote was 131 to 123.
Jan. 15, 1932. 42.
The Democrats in H.R. and Senate, in caucus, voted to support the Glass
banking bill. This was before the Board reported on it.
April 5, 1932. 114.
Howard, Cong. 122
See - Hamlin, H. P.
Hwjhes, C.E.
President Harding told Dr. Butler that, advised him against
recognizing either the L. of N. or an Associodon of Nations in his
Iowa speech*
Dec. 14, 1932. 16.
C.S.H. calls on Chief Justice Hughes.
Jan. 1, 1932. 35.
Hull, Cordell
Calls on C.S.H. and goes over the Glass banking bill.
Feb.5, 1932. 55.
Hull, Mrs. Cordell
Attends lunch of Polish Ambassador to Mrs. Wilson.
Dec. 15, 1932. 17.
Hungary
Dr. Shotwell and Noman Davis tell Carnegie trustees that Austria
and, were practically bankrupt; that the Hungarian Ministry in
reporting to its Parliament had concealed its real deficit, and
that the Bank of Hungary carried as assets gold pledged with
the B.I.S. - which Davis said, the B.I.S. should not have taken.
Dec. 14, 1931. 13.
Shotwell and Davis said both Austria and Hungary had suffered great
injury from the war treaties, but that economic agreements could
be mule which would prdhab4 satisfy them; that Hungary did not
care much as to loss of territory if arrangements could be
made under which she could trade freely with the part taken away.
Dec. 14, 1931. 14.
See - National Bark of Hungary
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Federal Reserve Bank of St. Louis
1b8
Imports
John Dulles Poster toll Board the European nations were trying to
cut down, to absolute necessities; that even if American credits
were freely offered they would buy a pound of cotton beyond
absolute necessities.
Dec. 11, 1931. 7, 8;
Gov. Meyer said we ought to have now an import balance.
Jan. 7, 1932. 38.
Income tax, Mass.
C.S.H. mails return of income to State House.
Peb. 28, 1932. 84.
Ineligible paper
C.S.H. said one of the objects of Glass amendments as to exchanging
bonds for gold held as Collateral for P.R. notes was to assist
banks which had lost gold by investing in.
Pei). 24, 1932. 81.
Inflation
Dulles said European countries were trying to keep on the gold
standard to avoid, from which they had suffered so =Ch.
Dec. 11, 1931. 7.
Gov. Harrison cables Gov. Moret that Board's discount policy,
acceptance policy, and Reconstruction Finance Corporation Act
were not inflationary but merely an attempt to stop deflation.
Jan. 19, 1932. 43.
Insurance, Peale portrait
C.S.H. takes out insurance for $25,000 on our Rembrandt Peale
Washington, paid for by the Washington Memorial Association.
Policy covered period from taking down portrait from walls of
Hay.Adems House until delivery back after Thanksgiving.
Feb. 12, 1932. 69.
Initiation of discount rates
Glass asked Gov. Meyer whether Bcarits draft of Sec. 14 of his
banking bill took from P.R. banks their right to Initiate
discount rates, and asked for a memorandum as to this.
Glass feared that the words put into the Board draft, —"subject to
limitations and restrictions" might have this result.
The cBoard. wrote Glass that its draft did not intend to, nor did
affect this power of F.2.. banks in any ways
April 6, 1932. 116, 117.
Intermediate credit debentures
All of Board except Miller favored making, eliqible as collateral
for member bank collateral notes.
:Am, 8, 1931. 5, 6.
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Federal Reserve Bank of St. Louis
159.
International Acceptance Bank
C.S.H. believes the 30 million frozen acceptances held by, were
the cause of Wafturgis serious financial condition.
Dec. 17, 1931. 21.
Interstate Commerce Commission
Gov. Meyer told Board of the objection of, to a loan to Missouri
Pacific R.R. by the Reconstruction Finance Corporation. He
said that as Governor of the F.R. Board he had taken the
position that this loan was proper; that the Railroads hotes
,ivre held by banks as well as by bankers; that these notes
were much like business paper which must be paid at maturity,
rather than like capital loans which ordinarily could be
extended.
The Comptroller took the same view, saying that if a bank held such
extended notes he might have to mark than as slow or perhaps
as undesirable,.which would injure the holding bank.
April 2, 1932. 112, 113.
Italy
See — Austro—Gernan tariff agreement.
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Federal Reserve Bank of St. Louis
James
Gives $300 to Community Chest because of his original suggestion
that Board should make up any deficit for its staff.
Dec. 12, 1931. 11.
Noell said that James, since he has been on the Federal Reserve Board
has regularly received $20,000 per year as Chairman of the Board
of his business corporation, but that this had recently been
reduced to $10,000.
Dec. 12, 1931. 11.
We dine with Mr. & Mrs.James to meet Mr. & Mrs. Richard Sanger
(Marion Child).
Dec. 16, 1931. 20.
Confirmed by Senate for new term.
Dec. 18, 1931. 24.
Votes against sending Board's report on Glass banking bill to the
Senate Committee uninvited.
Feb. 15, 1932. 76.
James said many interior banks have no bonds to sell and would not be
helped by our open market purchases. All agreed, however, they
would get an indirect benefit.
Feb. 24, 1932. 82.
Sa;
,s the Glass banking bill ihould be postponed not for one year but
at least for 5 years; that he was opposed to any banking legislation
at this time.
Mar. 22, 1932. 102.
Says that Ogden lills told Board that Sen. Walcott said he and Glass
wanted the help of Burgess and Goldenweiser.
Mar. 25, 1932. 107.
Feels that all banks Which are able should participate in open market
purchases and the other banks 6hould take some part, and later
ask:Board to help them under Glass anergency bill.
This view prevailed.
April 22, 1932. 124.
Says Board should officially take up the charges of Lichtenstein
with the Federal Advisory Council.
June 3, 1932. 190.
Fully approved C.S.H. course in taking up with Mass the pro,)osed
salary cut.
June 7, 1932. 195.
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Federal Reserve Bank of St. Louis
ibl.
Jay, Pierre
A man approached Gertrude Myer to induce her to put her .property
in charge of his company - samethirg Pierre Jay's Trust Co.
April 21, 1932. 136.
"Jokers
Wyatt says there is a joker in Willis' draft of GlEvs banking
bill, in the reserve section.
Mar. 14, 1932. 93.
Joslin, Dr. Elliot P.
C.6.H. wrote, lact week asking his eye clinic if it felt that
his eyes had been injured by excessive smoking, - apart
from the slight thickening of the lens.
He replied they had not gone far enough in my exaraination to
determine this cause of this "sclamaturie (blurred vision)
but that my Doctor should make every effort to find the
cause.
C.S.H. sent this letter to Dr. Morrison.
Dec. 2, 1931. 3.
Kahn, Mrs. Congressman
We have, at dinner of Woman's Democratic Club.
Jan. 22, 1932. 47.
Key, Mrs. (Marjorie Wright)
Calls an us.
Mar. 9, 1932. 90.
H.P.H. acts of Godmother at Christening of young daughter of,
and gives baby one of Anna's rattles, - the last one.
Mar. 19, 1932. 97.
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Federal Reserve Bank of St. Louis
362.
-L-
Lane, Ex-Secretary
Said in 1921 that Hoover was one of the greatest aavertisers in
the country.
May 23, 1932. 170.
LansiJa, Robert, Mrs.
We lunch with.
Dec. 20, 1931. 26.
Laval-Hoover agreement
See.Hoover
Law Committee, Federal Reserve Board. 134.
See - Chase, Howland
Lawrence, Bishop
Calls on us with Mrs. Slattery and Mrs. Fiero.
Invites us to dinner but we had another engagement.
May 6, 1932. 153.
Le,gue of Nations
Dr. Butler said he wrote President HardinglE first speech on
Foreign Affairs delivered in Iowa; that he begged him not
to reject the League of Nations or at least to declare for
an Association of Nations; that Harding said Charles X. Hues
gave him just the opposite advice; that Harding deceived the
signers of the "Appeal of the 31u.
Dec. 14, 1932. 16.
The best opinion in Washirlgton is that Gov. Roosevelt has killed his
chances for nomination by coming out Against the League of
Nations.
Feb. 7, 1932. 55
C.S.H. asked Baruch why Gov. Roosevelt repudiated the League of Nations
and BaraCh said sarcastically, uin order to defeat himself for
nomination for President."
Feb. 12, 1932. 71.
C.S.H. expressed regret to Mrs. Wilson that Newton D. Baker did not
mention the League of Nations in his Washington Cathedral
address.
She said she thought he did.
C.S.H. told her there never was a time when it was more important
than now for us to be in the League of Nations, - to which she
agreed.
June 1, 1932. 188.
See.Association of Nations.
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Federal Reserve Bank of St. Louis
Lehman, Solicitor General
See — Glass
157
Leonard, linen (Warder)
C.S.H. meets, at Rachel Hale's.
June 5, 1932. 36.
We call on.
Out.
We meet, at Port Myer.
June 10, 1932. 40.
June 1, 1932.189.
Liberty Magazine. 189.
See — Wilson
Lichtenstein, Walter
Delivers address in Minneapolis in which he charges Federal Reserve
System with not reversing its easy money policy soon enouigh
because of the coming Presidential election of 1928.
C.S.H. finishes a letter in reply.
May 19 ,1932. 164, 165.
C.S.H. sends his rely to Lichtenstein, to each member of
Federal Advisory Council (of which Lichtenstein was
Secretary) and to each member of the Federal Reserve Board.
May 20, 1932. 165.
C.S.H. brings matters formally before the Federal Reserve Board.
Gov. Meyer said he had been sent a copy but had not had time to
read it.
C.S.H. explained it.
Gov. Meyer treated the matter jocosely, seeming not to attach
the slightest importance to it.
May 23, 1932. 170.
Later, in P.M., Lichtenstein called an C.S.H.
He said he had no intention of any imputation or attack upon the
Board.
C.S.H. said he
attacked, the Board and that certain members
resented it as absolutely false.
C.S.H. asked him just what his authority was for the statement that
possibly the Board had its eye on the Presidential election
of 1928.
Lichtenstein gave the following:
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Federal Reserve Bank of St. Louis
464.
Lichtenstein, Walter (Contld.)
1. A Chicago financial reporter told him that President Coolidge
in the summer of 1928 had nassed the word around that
money must be made easier in order to carry the election
of 1928.
2. Prof. Bullock, of Harvard University, told him that in 1928
the Federal Reserve Bank of New York bought a vast amount
of acceptances, prior to the election.
C.S.H. said he had never heard of this alleged sttement of President
Coolidge, nor had the purchase of acceptances by P.R. Bank
of N. Y. been associated in the mind of any member
of the Board with the Presidential election of 1928.
C.S.H. asked him what he now proposed to do in the matter.
He said he should do nothing more as, earlier today, he had gone
over the matter with Gov. Meyer at the Federal Advisory
Council lunch, and that Gov. Meyer told him it was nothing
and to'
,let it drops •
May 23, 1932. 170, 171, 172.
C.S.H. told this to Miller who said it was a very serious matter
and would undoubtedly serve as a basis for future
attacks on the Board. May 23, 1932. 172.
Later this P.M ° C.S.H. received a copy of a letter sent by
Lichtenstein to Gov. Meyer to the effect that he intended
no attack upon the Board; that he could not see why the
Board should zat be influenced by the fact that a Presidential
election was Impending; that it might well have felt that
it would be a poor time to tiEhten the money market just
before a Presidential election, etc. etc.
May 23, 1932. 174. (See scrap book)
The Federal Advisory Council at its meeting with the Board made no
mention of Lichtenstein's address, but Miller said that after
the Board had left the President called Council together
again on an "important matter" and Miller believes this
meant Lichtenstein.
May 24, 1932. 175, 176.
Lat in the afternoon a letter from Gov. Meyer to Lichtenstein in
reply to his letter to Gov. Meyer, was circulated.
Gov. Meyer in his letter acknowledged Lichtenstein's letter, which
he said he would take pleasure in showing to the Board, and
condluded, "Sincerely yours"
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Federal Reserve Bank of St. Louis
165.
Lichtenstein, Walter (Contld.)
Pram this reply one would draw the inference that Lichtenstein
had been Braising rather than attacking the Board.
May 24, 1932. 176.
C.S.H. yesterday sent Gov. YounF a copy of his letter to Lichtenstein,
as he was in 1928 the Governor of the Board.
May 28, 1932. 180.
C..H. has recciall minutes of May 23 corrected to show that he
called Board's attention to the letter he sent Lichtenstein.
May 28, 1932. 180.
C.S.H. has received answers from some of Federal Advisory Council
to his letter on Lichtenstein.
Most of than said they would read it.
Lichtenstein's remarks.
Tranan mildly deprecated
Smith, the President, condemned it.
May2S, 1932. 181.
Board accepted C.S.H.Is correction of minutes of meting of May 23
June 3, 1932. 193.
as to Lichtenstein.
Miller and James said the Board should take up the matter officially
with the Council.
After discussion it was agreed that Gov. Meyer Should ao this
and the matter went over temporarily.
C.S.H. told Board the authority Lichtenstein gave for his change.
(See supra)
Gov. Meyer said Coolidge never made such a statement.
James said the Board should refuse hereafter to receive Lichtenstein
at Council meetings.
Miller, apparently, agreed with James.
Gov. Meyer thought this too drastic and C.S.H. agreed with him.
The matter went over temporarily.
June 2, 1932. 190, 191.
Miller says Gov. Meyer is very much disturbed over the Lichtenstein
charge, fearing that it will be claimed that if the Board was
influenced by the ar.proaching Presidential election in 19228
it would be influenced in its open markt policy by the coming
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Federal Reserve Bank of St. Louis
166.
Lichtenstein, aalter (Contid.)
Presidential election of Nov. 1932.
C.S.H. is glad that Gov. Meyer is at last beginning to realize the
possible seriousness of Lichtenstein charge.
June 4, 1932. 193.
C.S.H. feels Board should have taken up the Lichtenstein and other
important matters at meeting today but nothin was done as
Gov. Meyer said he could stay only a few minutes ás he had an
engagement with some Chicago people, - presuMably a Reconstruction
Pinance Corporation matter.
June 9, 1932. 196.
Lindbergh
C.S.H. calls up Rachel Hale and tells her the Lindbergh baby has
been found murdered.
May 12,1932. 160.
See-. Rodgers, Mrs.
Lindsay, Sir Ronald. 151
See - British Ambassador
Liquidity
Gov. Harrison said P.R. System should boldly buy Government
securities to offset withdrawal of deposits or should maintain
liquidity.
He preferred the former.
Jan. 11, 1932. 41.
Lodge, Sen.
Mrs. Williams (Constance Lodge) writes thankin2. C.S.H. for two
letters from Sen. Lodge to him, one relating to the music
written by John Lodge for the Greek Play, which C.S.H. had
praised in a letter to Lodge, and Lodge replied that he was
glad that he and C.S.H. had found a platform on Tihich they could
stand, even if they had to go back 2500 years to the Greek
tragedies to find it.
In the other letter Lodge wrote that an admirer of C.S.H. called him
the Moses to lead the party out of the wilderness, but he
wished to remind C.S.H. that Moses in fact never reached the
promised landi
:Ay 31, 1932. 165.
See- Williams, Constance
Lombard.,loans
The Governors Conference, three dissenting, favored, in times of
stress.
Dec. 8, 1931. 6.
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Federal Reserve Bank of St. Louis
Lowering of reserve requirements
Gloss told Miller that Hoover wanted the Board to lower required
reserves of member banks.
Mills feared this would cause a withdrawal of foreign deposits.
C.S.H. felt it would be a red flag which might precipitate a
general moratorium and practical suspension of gold payments.
Feb. 9, 1932. 63.
Luce, Robert
Tells Platt that Glass would be given a week to straighten out
his banking bill,and if not done by then, it would be taken
Feb. 3, 1932. 54.
out of his hands.
Lunches (See dinners, supners, teas)
1931.
Dec. 6. With Mr. & Mrs. Delano. 4
Dec. 20. With Mrs. Lansing. 26.
Dec. 25. Christmas noon dinner with Lydia Biddle. 32.
1932.
Jan. 10.
With Mrs. Frazer. 40.
Jan. 17.
With Mrs. Delano. 42.
Jan. 24.
With Mr. & "rs. Charles
Jan. 31.
With Mr. & Mrs. Geo. B. McClellan. 52.
Feb. 7.
With Miss Hegennan. 55.
Feb. 14.
With Mr. & Mrs. Clarence Dodge. 73.
Mar. 6.
With Harriet Hamlin, 87.
Mar. 27.
With Harriet Hamlin. 108.
Apr. 17.
With Harri-t Hamlin. 132.
dLane. 48.
Apr. 18. H.P.H. lunhes with Mrs. Meyer to meet Mrs.Ogden
Mills and ladies of P.:.. Board. 133.
Apr. 24.
With Miss Hegerman. 142.
May 11.
C.S.H. has Howland Chase at Cosmos Club. 159.
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Federal Reserve Bank of St. Louis
168
Lunches (See dinners, suppers, teas)
May 15.
With Mr.& Mrs. Delano. 161.
May 21. We give lunch to Count John Bentenck and Baroness
Van Heckersen at Woman's National Democratic Club. 167.
May 22.
With Miss Hegerman. 167.
......
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Federal Reserve Bank of St. Louis
169.
Macdonald, Godfrey
We meet, at dinner with Gen. and Mrs. Treat.
April 23, 1932. 142.
MadVeagh, Sec.
When, heard of Solicitor General Lehman's opinion that National
security affiliates were illegal, he was much disturbed as
his bank in Chicago had a similar affiliate, and he objected
vigorously to Taft and it was never published.
May 11, 1932. 157, 158.
Magee, Wayland W.
Confirmed by Senate as a member of Federal Reserve Board.
Dec. 18, 1931. 24,
Told C.S.H. he IrrAW nothing of What was going on and C.S.H. said he
knew as little as Magee did.
Feb. 12, 1932. 67.
Says Gov. Harrison is the dominating influence in the F. System.
Says Gov. Harrison asks more than he really wants and compromises.
Feb. 12, 193. 67, 68.
Votes with Gov. Meyer to send Board's report on Glass banking bill
to Senate Committee although it had not asked for it.
C.S.H., Miller, James voted No.
Feb. 15,1902. 76.
We dine at COSMOS Club with Mr. & Mrs.Magee. Went to theatre to
see "The Barretts of Wimpole Street"
Mar. 9, 1932. 89, 90.
C.S.H. goes to stockholders meeting F.R. Bank of Richmond with
Magee.
April 14,1932. 127.
Congratulates C.S.H. on his suggestion at Governors Conference that
there is a demand for constructi-In work which could and should
be met. Told C.S.H. this was thefirst constructive suggestion
at the conference.
May 17, 1932. 163.
Burgess in wring minutes of above meeting made no mention of
C.S.H.'3 suggestion.
C.S.H. asked McClelland to send record back to Burgess for
correction, saying that Magee would bear him out.
C.S.H. had spoken to Magee who renembered perfectly that C.S.H.
made this suggestion.
May 28, 1932. 180.
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Federal Reserve Bank of St. Louis
170.
uagee, Wayland W. (3ontid.)
McClelland sends recoris back to Burgess for correction, which
Burgess finally made.
June 6, 1932. 194.
Told C.S.H. that he talked with Gov. Meyer while going with him to
Ridhmond and that he fully aporoved C.S.H.Is efforts to
prevent salary reduction in the economy bill.
June 9, 1932. 198.
Marshfield Hills. 37
See.Wright, Henry
Masque, Washington bi.centennial
We attend, at Constitution Hall.
Feb. 21, 1932. 79.
Mass, Income tax
C.S.H. sends statement to State House.
!Ob. 28, 1932. 84.
Mattapoisett.
9, 10, 48, 49.
See.DeLong
Hamlin, H. P.
Hardy
Mattapoisett mortgage
C.S.H. pays interest due.
June 3, 1932. 186
McAdoo, W. G.
Glass said the statement of, in his book that he did not reaily
believe in his central bank bill, and that when he spoke
to Glass favoring it, there was a "merry little twinkle
in his eye".was a deli rate lie; that he knew that
McAdoo pleaded with Noyes of the N. Y. Times to favor it.
Dec. 16, 1931. 19, 20.
McGagg, Mrs.
Died this morning.
Funeral.
Feb. 3, 1932. 54.
Peb. 4, 1932. 54.
McClellan, Mr. & Mrs, George B.
We have Christmas dinner with.
Dec. 25, 1931. 32.
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Federal Reserve Bank of St. Louis
171,
McClellan, Mr. & Mrs. George B. (Contii.)
We lundh with.
Jan. 31, 1932. 52.
We dine with.
Feb. 14, 1932. 73.
McConnell, James Z.
C.S.H. tries to help, secure position as Counsel of Receiver
of Federal National Bank, Boston.
Speaks to Comptroller. Dec. 16, 1931. 78.
Called on C.S.H. Said he knew Gov. Smith did not expect or want
to be nominated, but that he and Ratkob wanted to defeat
Gov. R.; that Gov. Smith hated the South because of its
religious bigotry and hated Gov. R. because he was currying
favor with the South. Feb. 13, 1932. 71.
He said there was no doubt that, Andrew Peters was gmilty of the
offences charged against him; that the Boston Post and Herald
both had the entire story set up, but did not print it because
of pressure brought to bear upon them. He said Gov. Ely was
making a poor Government and making bad appointments, and he
feared great scandal might result.
McDougal, Gov. P.H. Bank, Chicago.
Says we should sell all Government securities bought within the
last two months; that we have bought already more than anyone
dreamed of during last 2 years; that the P.R. banks should keep
themselves liquid to meet the steady withdrawals of deposits
from member banks. Jan. 11, 1932. 41 (2)
Approves policy of further purchase of Govt. securities. Feb. 24, 1B2.
McFadden bill.
Glass says Cong. Wingo received a fee of $1000 for speaking against
branch bank provisions of, at a time when he was in the Conference
Committee of Congress in relation to it. May 13, 1932. 160,161.
Molarrah, Gates
C.S.R. told Glass that, iihen Chairman of Board, P.R. Bank of N.Y.
denied the power of a F.R. bank even to examine into customers
loans of a member bank or to refuse discounts because of undue
increase of such loans. Mar. 21, 1932. 99.
McLane, Charles Z.
We lundh with, near Baltimore. Jan. 24, 1932. 48.
We attend marriage of his daughter to Rev. Mr. Bracklebamk.
Mar. 29, 1932. 110.
McNamara, Captain and Mrs.
Dec. 19, 1931. 26.
We call on.
We have, at dinner at Woman's Democratic Club. Feb. 12, 1932. 69
Mar. 18, 1932. 97.
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Federal Reserve Bank of St. Louis
172.
Meigs, Dr. & Mrs.
Attend lunch of Polish Minister to Mrs. Wilson.
Dec. 16, 1931. 17.
Mellon, Sec.
Resic;nation of, as Secretary of Treasury announced.
C.S.H. fears Ogden Mills has forced him out.
Feb. 4, 1932. 54.
Makes oath as Ambassador in his office.
Feb. 12, 1932. 66.
C.S.H. is sorry to lose.
He has made a fine record and one secret of his success lays in
his ability to choose able men to serve under him.
Feb. 12, 1932. 69.
Member bank 15-day collateral notes.
All of Board except Miller favored amendment permiting debentures
of Federal Intermediate credit banks to serve as collateral for.
Dec. 7, 1931. 5, 6.
Glass said Gov. Meyer was urging him to agree to have debentures
of proposed Reconstruction Finance Corooration made eligible
as collateral for; that Gov. Meyer once told him he was
absolutely opnosed to this.
Dec. 16, 1931. 19.
Glass said that bond secured, were essentially greenback and that
if we must have a bond secured currency, he would prefer to
have it issued by national banks.
Glass said his bill prohibiting bond secured, gave 2 years in which
to make the change, while Gov. Harrison said it could be
made by substitution of eligible paper, of which the P.R. System
had plenty,within 3 months.
C.S.H. told Gov. Meyer of this and he said Gov. Harrison was a damned
fool to make such a statement.
Jan. 28, 1932. 49.
Glass said power to make a vances on, was a war power given under
an agreement to repeal it wh9a the war was over.
C.S.H. said se are now In an economic war and the suffering, altho
of a different kind, was nevertheless acute.
Jan. 28, 1932. 50.
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Federal Reserve Bank of St. Louis
173•
Member bEnk 15.day collateral notes. (ContId.)
Glass said that under his bill banks could discount paper to
make good its reserves against speculative transactions,
but that if it increased such loans while its collateral
notes were outstanding it would lose the privilege of
obtaining advances on.
Feb. 13, 1932. 72.
.rning by the P.R.
Willis' draft inserted a provision for a w,
bank before the member bank lost pri%ilege lf obtaining
Mar. 14, 1932. 93.
advances on.
Glass asked C.S.R. if the P.R. bank had power to fix the rate
on, without approval of P.R. Board. C.S.H. said No.
Mar. 21, 1932. 99 (1)
C.S.H. got Board to recommend an amendment that, secured by eligible
paper could run for 90 Elys.
Mar. 27, 1932. 108.
C.S.H. failed in effort to secure approval of an amendment that,
secured by Government bonds should take a higher rate after
expiration of 3 years.
Mar. 27, 1932. 108.
Member bank reserves
.Reserves
See
Metcalf, Sen.
Goldenweiser says he and Gov. Meyer and others spend evening
with, who is preparing amendments to Glass bankine bill.
May 14, 1932. 161.
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Federal Reserve Bank of St. Louis
GOV.
Indx.
Absences from Washington. 106, 123,
Administration, The. 29, 42.
Agreement, W.:Iite House
Glass emergency bill. 58.
See - Hoover
Affiliates
See - Security affiliates.
Anglo-California Trust Co* 84.
Annlications for credit
Cleveland district. 131.
Attack on France. 29.
Attacks on Gov. Meyer. 26.
131.
-3Baker, Newton B• 67.
Bank failures. 52.
Bank of America, California. 25.
Bank of France. 25, 29, 100, 141.
Banking conditions. 52, 80, 120.
Blair, Emily Newell. 51.
Boston Transcript. 130,
Burgess. 33, 36, 53, 60.
Burgess and Goldenweiser reoort.
32, 34, 35, 60, 62, 63, 64, 68, 71, 72.
Business conditions. 52, 78, 80, 120.
Cable. 27
Calls on. 11.
Case, Chairman, F.:ft. Bank, N. Y. 15, 53.
Chagrin. 129.
Changes of o2in on.
68, 69, 74, 75, 76, 112.
Chase Bank, Paris. 2
Chase, Howland. 83, 86, 87, ,38, 89.90, 91, 92, 93, 94,
Chase National Bank, N. Y.
Churchill, Winston. 42.
Commercial paper. 31.
CouLittees of F.R. Board. 19.
Communit:r Chest. 3.
Com,)troller of Currency. 73.
Conference renort.
Glass energency bill. 49.
Conferences, Secret
36, 37, 38, 49, 68, 70, 104.
See - P.R. District Can Attees.
Construction work, New. 105.
(pa7,:e 174-A follows)
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Federal Reserve Bank of St. Louis
l'/4-.A
Coolidge, Ex.President. 133.
Cotton loan fund. 1914. 122.
Cotton loans. 120.
Credit applications
Cleveland district. 131.
Crittcism of.
5, 7, 9, 10, is, 19, 21, 23, 30, 31, 33, 34, 36, 36, 40, 41, 42,
49, 50, 53, 68, 69, 70, 77, 97, 98, 101, 102, 104, 108, 110, 11,,
114, 115, 113, 121, 122, 124, 126, 127, 128, 129, 130, 132, 140.
Criticism of F.R. Bank, N. Y. 53
-D"Damned!" bankers. 52.
"Damned" boarders. 52.
DCIF3S, Charles G. 137, 139.
Debentures. 5.
Defeat of Glass bill. 61, 66.
Deflation. 27.
Deposits of Bank of France. 29, 100, 141.
Dpression ended. 52.
Discount policy. 27.
Discount rates. 74, 99.
Discouris, Power to reuse. 68, 75, 76.
Discourteous. 18.
Discourtesies. 46.
Discourtesy to Gov. Meyer. 126.
Divorce of scurity affiliates. 101.
Domestic trade. 24.
Dominations. 56, 59, 84.
Easy money. 133.
Zconamic conditions. 52, 80, 120.
Econmy bill. 138, 142.
Lace corporption1.2.
Aligibility. 5, 7, 105.
Aalborg°. 29.
"Esquire 39.
Ex-officio member. 26.
.aamination. 2
Zxport trade. 24.
Failed banks. 52.
Poncho'', Gov. 16.
Federal Advisory Council. 46, 47.
Federal Farm Board. 120.
Federal Farm Loan Board. 4.
Federal Reserve Act. 7.
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Federal Reserve Bank of St. Louis
174-1$
Bank, Cleveland. 125 - 128, 131.
Bank, Kansas City. 132.
Bank, :Unneapolis. 132.
Bank, Nev r York. 53, 106, 128.
Bank, Philadel)hia. 125, 131.
Bank, Richmond. 136, 142.
Bank, San Francisco. 25.
banks. 55, 58, 132.
Board. 21, 30, 35, 39, Al, 51, 57, 58,68, 73, 62,
97, 102, 108, 111, 116, 124, 127.
See - Burgess and Goldenweiser
Federal Re:erve Board Committee.
See - Burgess and Goldenweiser.
Federal Reserve Board Committees, 1.932. 19.
Feaeral reserve chief examiner. 23.
Federal reserve district Committees. 109, 112, 119, 126, 129, 13, 136.
Washington Conference. 107, 110.
Federal reserve facilities. 75, 76.
See - Sec. 3.
Speculation.
Feleral reserve minutes, Correction. 125.
Federal reserve notes. 29
Five hundred million dollar lUitation. 45.
France. 29
See - Deposits, Bank of France.
Frankfurter, Felix. 90, 92, 95.
Federal Reserve
Federal Reserve
Federal eserve
Federal 'eserve
Federal Reserve
Federal Reserve
Federal Reserve
Federal reserve
Federal Reserve
Glass. 5, 37, 43, 49, 57, 58, 62, 63, 69, 71, 72, 79, 101, 138.
Glass banking bill. 30, 32, 57, 59, 61, 65, 66, 67, 73, 79, 62, 101, 104.
Glass emergency bill. 36, 37, 40, 42, 44, 45, 47, 54, 58, 84.
Glass Sub-committee. 32, 34.
Gold outflow. 29, 99.
Goldenweiser. 33, 34, 38, 40, 104.
See- Burgess and Goldenweiser.
Government securities.
29, 31, 81, 103, 117.
Government transportation, Use of. 48.
Governs. 82.
-H17, 25, 29, 34, 44, 45, 48, 54, 60, 65, 68, 71, 76, 79, 83,
93, 101, 113, 114, 122, 124, 127, 132, 133, 134, 138.
Harrison, Floyd. 4, 8, 10, 12, 13, 19, 36, 38, 49, 68, 86, 88, 91, 94, 95,
96.
Harrison, Gov. 27, 31, 53, 55, 56, 62, 67, 79, 97, 98, 99, 100, 109, 112,
126, 141.
Harvard Law School
See - Chase, Howland
Frankfurter
(Page 174-C follows)
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Federal Reserve Bank of St. Louis
174-0
Hearing. 57, 62, 63.
Hoarding. 52.
Hoover, PrPsidpnt. 18, 36, 37,50, 62, 65, 107, 111, 112, 121, 126.
See - Administration
Agreement
Ill temper. 84, 122.
Import balance. 24.
Inflation. 27, 28.
Initiative. 127.
Interstate Commerce Coulission. 7-.
Intiv.idution by Senate ComAittee. 59.
Isolationist.
-JJames. 18, 133.
-LLaGuardia, Cong. 26.
Lichtenstein. 113, 115, 116, 118, 133, 134.
Magee. 41, 136, 142.
Member bank 15-day collateral notes. 5, 31.
Memorandum. Gov. Harrison. 79.
Metcalf, Sen. 104.
Meyer, Mrs. Zucene. 22.
Miller, Adolph. 16, 41, 57, 61, 66, 68, 70, 85, 66, 103, 114, 126,
127, 133.
Mills, OD.den. 29, 40, 42, 49, 60, 62, 64, 65, 66, 67, 71, 72, 73, 109, 126.
Missouri Pacific R.R. 77.
Moret, Goy. 27.
See - Bank of France.
Morrill, Chester. 4, 7, 8, 9, 10, 12, 13, 19,36, 38,39, 86, 91, 104.
-NNew yearls reception. 17, 20.
New York Times. 36, 100.
Noell, Mr. 3.
Norman, Gov. 97.
(Pai::e 174-D follows)
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Federal Reserve Bank of St. Louis
One year limitation.
Glass anergency bill. 42, 45.
Open mart conference. 82.
Optimism and pessimism. 52, 78, 80, 120.
Paris press. 28.
See Paulger, Leo H. 23.
Penalization of member banks. 68.
See - Glass bill
Sec. 3.
Speculation.
Politics. 29, 42, 43, 116, 133, 134.
Pound, Dean. 93, 96.
Procedure, New. Fed, ral Reserve Board. 12.
Propaganda. 135.
quarrel, Gov. Meyer and Dawes. 137, 139.
Railroad relief. 77, 78.
Reconstruction Finance Act. 5, 7, 8, 9, 10, 14, 21, 22, 24, 25, 26,
28, 36, 50.
Reconstruction Finance Cornoration.
5, 35, 51, 77, 108, 114, 127, 137, 139, 140.
Rediscounts
See - Discounts.
Refusal of discounts. 68, 75, 76.
Regulations. 54.
Removal of Governor. 16.
Reserve Committee renort. 1.
Resillation. 15, 51, 139.
Resolution. 25.
Rough neck manner. 85.
Rounds. 53, 85.
Sailer. 53.
Salc.ries. 187, 191, 192, 194.
See - Economy bill
Glass
Hamlin, C.S.
Salary reduction. 138, 142.
(pare 174-E follows)
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Federal Reserve Bank of St. Louis
174-E.
Secret,ry of Treasury. 107, 108.
Secti xi 3, Glasc bill. 68, 75, 111.
Sections 1C-A and B. Glass amerEency bill. 54.
Section 10-B. Glass anergency bill. 84.
Section 14. 116.
Security affilites. 101, 114.
Speculation. 68, 75, 76.
Standard Trust Co. 16.
State Dept. 39.
,V.
Suer.
Survey. 108, 165, 166.
-TTitles of Board members. 39, 65, 66, 77.
Traitorous. Willis. 28.
Transamerica Corporation. 39, 52.
Traylor, M. 117.
-WWalcott, Sen.
See same; prin. headinc.
Wyatt
See same; principal heading.
(End of Index, Meyer)
(Pa{:e 175 follows)
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Federal Reserve Bank of St. Louis
A.
•
:Leyer, Gov.
1. Joins in criticism of Willis for publishim, the Reserve
Caa-ittee renort but points out that Wall St. Journal did
Dec. 2, 1931. 1—B.
the same.
2.
Suggests nostnoning of examination of Chase Bank in Paris, an
Bige Corporation owned by Chase National Bank, N.Y. until
our examiner now examinirethe Eastern branches of Chase Bank
get to Paris.
Reason r:iven was the acute banking conditions in Paris and fear
that examination now might cause trouble.
Dec. 10, 1931. 6.
3.
Noell said Goy. Meyer last year gave $10,000 to Community Chest
without crediting any of it to F.R. Board's quota.
He said he hoped Gov. Meyer would make good the deficit of $786
Dec. 12, 1931. 11.
for this year.
4. Board had before it two very meritorious case:- for sliht a_vances
in salpries, but Gov. Meyer objected.
Yet he insisted on givirgFloyd Harrison $15,000 per year, — an
increase of $5000 over salary he got from Federal Farm Loan
Board, and $12,000 to Morrill, — an increase of $2000 over
his salary as General Counsfl. and Secretary of Farm Loan Boardt
Dec. 11, 1931. 12.
5.
Glass said Gov. Meyer was urging him to agree that debentures
of the pronosed Reconstruction Finance Corporation be made
eligible as collateral for member bank collateral notes; that
he had previously told Glass he was absolutely op osed to this.
Dec. 16, 1931. 19.
6. Snoke most contemptuously of Pala. Warburg. He admitted. he had
good practical knowledge of banking, but said he was so
conceited and so nrojudiced by his own c.mceit, that his
judgment was sood for nothin?;.
Dec. 17, 1931. 21.
7.
Wyatt said Gov. Meyer directed Morrill to draw the Rec-instruction
Finance bill, under injunction of the strictest secrecy, and
he, Wyatt, — Who helped, was directed not even to let his
law cl3rks know as to its author; that he heard Gov. Meyer
refer to its authorship the other day so he assumed the ban
had been removed.
This secrecy is extraordinary considering that some of its
provisions modified the F.R. Actt
Dec. 17, 1131. 21;.
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Federal Reserve Bank of St. Louis
176.
meyer, Gov. (Contld.)
8. Watt said Gov. Meyer, Floyd Harrison, and Morrill a few days arlt,
spent an afternoon at the capitol, and he thinks it had to
do with the Reconstruction Finance bill.
Dec. 17, 1931. 23.
9. Gov. Meyer, Harrison, and Morrill go before a Congressional
Commitee as to Reconstruction Finance Corporation bill.
Gov. Meyer never told Board of this.
It seems grotesque that 2 ex—Inedbers of Federal Farm Board should
thus represent the P.R. Systeni
Dec. 1B, 1931. 24.
10.
Gov. Meyer, Harrison and Morrill went before Senate Committee —
on Reconstruction Finance Act.
He never mentioned this to Board.
This is grotesqusi
Dec. 19, 1931. 25.
Dee. 19, 1931. 26.
11.
We call on.
12.
Wyatt says Gov. Meyer has ordered a new procedure in Board.
Under it, he has been directed to go over practically all letter,
whtther or not involving legal questions, and checking
them, together with Harrison and Morrill, before they are
presented to Gov. Meyer for his suRgestions.
Dec. 22, 1931. 28.
13. Wyatt said Gov.Meyer never asked his opinion on legal milters;
the requests all came from Harrison or Morrill.
Dec. 22, 1931. 28.
14.
Wyatt said Gov. Meyer never asked him to go dowL with him to
Committee of H.R. or Senate with regard to Reconstruction
Dec. 22, 1931. 28.
Finance bill.
15. Says he has reached an understanding with Owen D. Young under
which the Board is to reappoint Case a* Ohairman, F.P.
Bank of N. Y. an that he Will resign on May 1, 1932, unless
fully restored to health.
Dec. 23, 1931. 30.
,
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Cont'd.)
16. Speaks contemptuously as to Gov. Fandher, saying, that when
he called hi:11 up Saturday about the Standard Trust Co.,
he kept saying, - erg er, so that he almost had to be
rude to him; that we must get another Governor in his
place next yr.
Gov. ileyer said this habit of saying
er, er - showed mental
sluggishness, but Miller - to our amusement, said it
showed mental degeneration.
Dec. 23, 1931. 30.
17. Asks Board hat members care to attend Kew Year's recention
at White House.
Only C.S.H. said he would go.
While Gov. Meyer did not specifically say he would not go, he
treated the matter with great levity and asked C.S.H.
if he would represent the whole Board.
C.S.H. said Yes.
Dec. 29, 1931. 33.
18. While
James was discouring about the motor craze, Gov. Meyer
said sarcastically, - "What do you think of two autos
for each person", - referring to one of Hoover's spe ches
in the campaign of 1928.
C.S.H. feels Gov. Meyer was very discourteous to Hoover in
saying this.
Dec. 29, 1931. 33, 34.
19. Announces Board Committee for 1932.
Prepared by Morrill and Harrison without consultation with Board.
Dec. 30, 1931. 34.
20.
Does not attend New Year's Reception.
J,n. 1, 1932. 35.
21. Gov. Meyer printed. testimony as to Reconstruction Finance Act
shows that he appeared. as Governor of the Fs. Board,
thus givinE the impression that he represented the views
of the Board.
As a fact he nevr consulted the Boardl
Jan. 4, 1932. 36.
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Federal Reserve Bank of St. Louis
178.
Meyer, Gov. (Contid.)
22. Rachel Hale said she heard that society peoi)le - '!() had never
called on Gov. or Mrs. Meyer, asked them to loan their house
for some entertainment, but that Mrs. Meyer renlied that,
under the circnmstances she could not do it.
Jan. 5, 1932. 36.
23.
Tells Board he has picked out Leo. H. Paulger as F.R. Chief
Examtner, saying he had made a wonderful record under War
Finance Corporation.
he had nreviously told Board he had a first class man in mind,
but never gave his name to C.S.H.
Jan. 7, 1932. 38.
24.
Told Board it should cease worrying about Europe and should
confine ourselves to home matters; that all the talk about
export trade tired him; that maintenance of export trade
was absolutely Inconsistent with the maintenance of ourhame
standard of living; that exports were being encouraged at expense
of our domestic trade; that we ought now to be having an
import balance.
Jan. 7, 1932. 38, 39.
25. Introduces resolution ceiling on P.R. Bank, San Francisco, to use
its best efforts to bring together the Gianini and Walker
group, in the fight for proxies at coming meeting of Pan-American
Corporation, which owns control of Bank of America, California.
He did not say Who had suggested this, and C.S.H. feared it might
be charged that the Board was Interfering in order to help the
Walker interests.
C.S.H. added a clause that this resolution was not initiated nor
suggested by either Party to the dispute, and the Board added
Jan. 8, 1932. 39.
this.
;
.-6.
While the H.R. was considoring the Reconstruction Finance Act,
La Guardia put in an amendment removing the Governor of the
P.R. Board as an exmofficio member, and bitterly attacked Gov.
Meyer personally.
The amendment was defeated but only by a vote of 131 to 1231
Jan. 15, 1932. 42.
27. Reads to Board copy of a cable from Gov. Harrison to Gov. Moret
exnlaining Reconstruction Finance Act and our discount policy,
aiming it was not inflation but merely an attempt to stop
deflation.
Jan. 19, 1932.
43.
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Federal Reserve Bank of St. Louis
179.
Meyer, Gov. (Contid.)
28.
Gov. Meyer read to Board an article by Willis in a Paris paper,
to effect that U.S. had entered upon a policy of deliberate
inflation.
Gov. Meyer said this was untrue and really traitorous.
Jan. 19, 1932. 43.
29.
Gov. Meyer told Board he had been considering for a long time
the advisability of requesting the Bank of France to
withdraw its deposits and to notify it that the Board had
closed its account with it.
Gov. Meyer said we could get 50 banks to agree to discount to
take care of the gold exports which would result.
He said he also favored telling the Bank of France that, as it
would take a long time to ship this gold, we would arrange
to ship part of it by vessels of U.S.
O.S.H. said we could not do this unless we secured an amendment
permitting issue of P.R. notes vs. Government bonds.
Gov. Meyer denied this but said he would favor such an amendment. )
O.S.H. said he had some sympathy with the idea that Prance had
too much to do with our money market, but he felt we would
have to give same economic or banking reason for such a
drastic move, which would almost certainly be construed as
a deliberate financial attack on Prance.
Gov. Meyer said he wanted our action to be so construed.
Gov. Meyer said he had consulted Ogden Mills who thoroughly
approved such action.
C.S.H. believes this would be an act of stupid folly and that
France would find same way of retaliation,which might
embarrass our bans; that deliberately to send 600 millions
of gold out of the country might, under present conditions,
injure our banks and bankers.
Supposing the French banks and people unloaded their investments
in this country, great trouble might arise.
This might enforce an embargo on our trade.
C.b.H. believes Gov.Meyer and the administration, throuit.
Ogden Mills, angry with x'rance because of her attitude
towards disarmament, reparations, Allied debts and tariffs,
are willing to take political revenge.
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Federal Reserve Bank of St. Louis
180.
Meyer, Gov. (Contld.)
C.S.H. believes the Federal Reserve Systan should not be embroiled
in such a political dispute.
Gov. Meyer and Ogden Mills in effect want to punish France because
it has been scared by Willis's muckraking propaganda.
Jan. 19,1932. 43, 44, 45, 46.
30. Gov. Meyer had a co)y of Glass Sub-committee report on Board
recommendations before the rest of the Board.
Jan. 22, 1932* 47.
31. Said that Gov. Harrison was a damned fool to tell Glassthat
commercial paper could be substituted for Government bonds
as collateral for manber bank 15.day notes within 3 months.
Jan. 28, 1932. 49.
32. Gov. Meyer told Board, in a very casual way, that the Glass
Sub-committee had asked Burgess and Goldenweiser to sit with
it and go over the Glass banking bill.
Yeb. 1, 1932. 52.
33. He did not speak about the conferences held at his house
yesterday at which Goldenweiser, Burgess, Wyatt and himself
were present.
Feb. 1, 1932. 53.
34. Goldenweiser told C.S.H. his and Burgess' report was ready and
that he had given one copy to the SUbcomittee and to
Gov. Meyer. He said he would send a copy to C.S.H. loomed
in the evening.
His hesitant manner convinced C.S.H. that Gov. Meyer had
directed him not to Show it to the Board members.
This, to C.S.H., is extraordinaryi
Feb. 6, 1932. 56, 57.
35.
C.S.H. writes Glass that Burgess and Goldenweiser did not
represent the Board.
He would have shown this to Gov. Meyer but he was at the
Reconstruction Finance Corporation.
Peb. 10, 1932. 61.
36. V. Y. Times says that after the White House agreement as to
the Glass anergency bill, there was a conference between
Glass, Gov. Meyer, Morrill, Burgess, etc.
No member was informed of this conference.
Feb. 11, 1932. 65.
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Federal Reserve Bank of St. Louis
181.
Meyer, Gov. (Contld.)
37. Gov. Meyer tells Board of the Hoover conference and agreement
as to Glass energency bill and said Glass was present.
Feb. 11, 1932. 65.
38.
Wyatt said that after said agreement there was a conference
at which Sen. Walcott, and, I think, Gov. Meyer were
present; also Goldenweiser, Harrison, ani Morrill.
Not a member knew of this1
Feb. 11, 1932. 65.
39.
The State Department addressed Gov. Meyer as "Uquire
in lieu of the practice of aallinghim "Honorable". Morrill
took it up through McClelland with the Protocol which said
that Heads and Deputy heads of Boards etc. are to be
addressed as Honorable and all others as "Esquire".
This reduced Board members to level of chiefs of Divisions.
Feb. 11, 1932. 65, 66.
40. Goldenweiser told C.S.H. that Ogden Mills, Gov. Meyer and he
went before the H.R. Committee to urge extension of the
one year limit of Glass emergency bill.
Governor Meyer never told Board of thist
Feb. 12, 1932. 67.
41. Magee told C.S.H. he knew nothing of What was being done by the
Board through Gov. Meyer.
C.S.H. said he knew even less.
Miller said Gov. Meyer had not consulted him about anything, but
he preferred not to be, as those responsible would have
to bear the responsibility.
Under Gov. Meyer the Board has practically ceased to exists
Feb. 12, 1932. 67.
42.
C.S.H. goes to supper at Gov. Meyer's house to meet Winston
Churchill.
C.S.H. was early and Gov. Meyer, in his presence, telephoned
Ogden Mills and discussed plans for having members of H.R.
and of Senate amend emergency bill by extending the one
year limitation.
This is being advocated by the administration without consultation
with P.R. Boardl
Feb. 12, 1932. 70.
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Federal Reserve Bank of St. Louis
1b2.
Meyer, Gov. (Contld.)
43.
on the
The above explains Glass's hesitation. He looks
whole matter - as it largely is, - as Republican nolitics.
Feb. 12, 1932 4, 70.
44.
Asks Board if it will take up the Senate bill - emergency
provisions.
C..S.H. asked if Comi.ttee had asked Board to report on it.
Gov. Meyer said No.
Decided to take it up and reserve for farther consideration
whether to send its conclusions to Senate Committee.
Feb. 15, 1932. 74.
45.
Gov. Meyer and all the Board except Miller finally agreed
that the 1 yoE4r limit in emergency bill should be extended
at least for another year; that the $500,000 limitation
should be stricken out.
C.S.H. at first favored making the limitation 1 million, but
Gov. Meyer said this would exclude large banks which have
to take care of non-member banks. C.S.H. accepted this.
Feb. 15, 1932. 74.
46.
Tells Board he has been invited to lunch by the Federal
Advisory Council.
No other Board member invited.
A rank discourtesy to the Boardl
Feb. 15, 1932. 75.
47. The Federal Advisory Coulon requested Gov. Meyer to send its
suczestions as to Glass emergency bill to Senate and H.i.
Committee, which Gov. Meyer reported he had done.
Feb. 16, 1932. 77.
48. C.S.H. approves voucher for Gov. Meyer for Gov. transportation
from Wash. to N. Y., on B. & O. R.R. Dec, 4, 1931.
Web. 19, 1932. 77.
49. Tells Board of a conference yesterday t Treasury at which
Ogden Mills, Gov. Meyer, Harrison and Glass were present.
Discussed conference report an Glass emergency bill.
No other member notified or presentt
Web. 24, 1932. 80.
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Federal Reserve Bank of St. Louis
183.
Meyer, Gov. (Contld.)
50.
Gov. Meyer toldthe Governors that he had felt it his duty
as Governor of the Federal Reserve Board to tell the
Congressional Committee and Hoover that the Reconstruction
Finance Act was wise and necessary.
He never consulted the Board, however, as to this nor in any
stage of the proceeding.
Feb. 24, 1932. 80.
51. Emily Newall Blair told Bertie that Gov. Meyer was very
indignant when Dawes was made Presid lit of Reconstruction
Finance Corporation and threatened to resign as also
from P.R. Board.
Mar. 1, 1932. 84.
52. Gov. Meyer told Board that hoarding was subsiding; that bank
failures has greatly diminished; that he was satisfied
the tied of depression had turned; that if the damned
hoarders would cease hoarding and the damned banks
begin loaning, all would be well.
Mar. 3,1932. 85.
53. Gov. Meyer told Board that, excepting Rolinds who was fairly
efficient, and experienced in banking, there was not
a practical bank officer in the P.R. Bea* of
specifically mentioning Gov. Harrison, Case, and. BurlDss.
He spoke of Sailer with contempt.
Mar. 3, 1932. 85, 86.
54. Gov. Meyer objected to C.S.H.Is statement that Sections 10.4
and 10-3 of Glass emergency law were absolutely distinct,
but Ogden Mills agreed with C.S.H.
Board struck out of proposed regulations the part requiring
a bank first to try to join a group under Sec. 10-4
before seeking relief under Sec. 10-B.
Mar. 9, 1932. 89.
55.
Gov. Meyer said Gov. Harrison objected to Board sending a
letter to all P.R. banks asking them to transmit it to
all memb r banks.
Board would not accept this view.
Mr. 9, 1932. 96
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contld.)
56.
Gov. Meyer suggested communicating above view of Board to
Gov. Harrison.
C.S.H. feels he was afraid to incur Gov. Harrison's displeasure.
Mar. 9, 1932. 90.
57.
Gov. Meyer reads letter from Glass that Sub-committee will be
glad to have Board's comment on banking bill as just
introduced by him, containing some of Board's suggestions.
Gov. Meyer read proposed draft of reply to Glass.
Gov. Meyer favored asking for a hearing to Which all agreed
except Miller.
Mar. 18, 1932. 95.
See - Glass bill.
58. McClelland says Glass asked Gov. Meyer at a personal conference
for the views of the Board, on Jan. 26, 1932. and that
the Board circularized all the P.R. banks and received replies
from all except P.R. Bank, NY.; that the Board did not send
than to Glass, because, at about this time the Glass banking
bill was temporarily laid aside following the agreement as to
the Glass emergency bill.
See supra, p. 48.
Mar. 18, 1932. 96, 97.
59.
Wyatt said it would take a week before the Board's Committee
could give to Board its report on Glass banking bill.
Gov. Meyer said he would not be dominated by Senate Committee
and that Board should take all the time it needed.
Mar. 21, 1932. 97, 98.
60.
C.S.H. accepted an amendment so that his resolution read that
the Board's Committee should report to Board at least a
preliminary report by Priday.
Gov. Meyer apparently did not want to have a vote on C.S.H.Is
motion, until Ogden Mills reminded him that it was pending,
and then put the motion which was nassed unanimously.
Mar. 21, 1932. 98.
CL.
C.S.H. believes Gov. Meyer hopes the Glass banking bill will
be defeated, and, later, Miller said his language clearly
implied that.
Mar. 21, 1932. 98.
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contld.)
604, Gov. Meyer reads a letter from Glass, dated Mar. 21, 1932,
denying that Burgess and Goldenweiser were called into
consultation by the Sub-committee; that they were delegated
by Hoover to represent the Tresury and P.R. Board; that
during their work they were in frequent consultation with
Ogden il1s, Gov. Mayer and Gov. Harrison.....; that he
personally telephoned Gov. Meyer and offered to give the
Board a public hearing, as Also to Gov. Harrison but that
both refused.
(See 225 scrap books)
See - Glass.
Mar. 22, 1932. 100.
63.
Gov. Meyer said he told Glass the Board would express no opinion
as to "public hearings" but would like to he heard by the
Sub-cammittee, on the bill; that he never saw the expert
Committee's report before it was filed with the Sub-committee;
that he wrote Glass on Feb. 7, 1932 that Burgess & Goldenweiser
as they specifically stated. in their report, did not represent
the Board.
Mar. 22, 1932. 100.
64.
When Gov. Meyer told the Board that the Sub-committee called for
the experts it really, as shown by Ogden Mills, was Sen.
Walcott who made the request.
Mar. 22, 1932. 101.
See - Mills, Ogden
Wolcott, Sen.
65.
C.S.H. believes Hoover has turned over the Glass bill to Gov. Meyer
and Ogden Mills.
Mar. 22, 1932. 103.
66. Miller said he believes that Gov. Meyer and Ogden Mills wanted
to have the Glass bill rejected rather than amended, and
C.S.H. feels the same.
Mar. 22, 1932. 103.
67.
Gov. Meyer or Ogden Mills suggested the advisability of approving
Gov. Harrison's suggestion that Newton D. Baker be retained
System, on the Glass banking bill.
on behalf of the F.
Not approved.
See - Baker
Glass.
Mar. 23, 1932. 104.
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Federal Reserve Bank of St. Louis
.Lb.
2eyer, Gov. (Contli.)
68.
Wyatt said Gov. Meyer and iloyd Harrison sat la:t nielt with
Boards Committee until after midnight; that Gov. Meyer
finally said he was inclined to believe that it would be
wise to grant the power to the Board and P.R. banks, to
refuse rediscounts and to suspent a member bank for
abuse of P.R. facilities for sneculative purposes; tAat the
Expert Committee so voted.
Mar.23, 1932. 105.
69.
Gov. Meyer, long ago, told C.S.H. that increasing the discount
rate was the only proper remedy for speculation.
1
This shows a great change in attitude of Gov. Meyer, following
the positive statement of opinion 1 C.S.H. and Miller.
Mar. 23, 1932. 105.
70. Had any other Membn. of Board been sitting secretly with the
Committee, Gtv. Meyer would have raged.
He never told Board of this secret conference.
Mar. 23, 1932. 105.
71.
Gov. Myer read proposed draft of answer to Glass, stating that it
was his understanding that Sen. Walcott said, that both he
and Glass wanted the services of B. & G.
C.S.H. asked on what this "understanding!' was based.
Gov. Meyer said it was on what Ogden Mills told the Board the other
day.
Mar. 25, 1932.106, 107.
See — Glass
Mills
Walcott
72.
Mills tells Board that Sen. Walcott said it would be agreeable to
him and to Glass to have the help of B. & G.
Mar. 26, 1932. 107.
73.
Gov. Meyer presented Board's draft of Glass bill to full Sub..
committee, stating that it represented the unanimous
approval of Board, including Comptroller and. Secretary of
Max. 29, 1932. 110.
Treasury.
74. Gov. Meyer told C.S.H. over a year ago that the Board should have
ap-)roved the 0 rate asked for by P.R. bank, N. Y. in
Peb. 1929; that such increase would have met the situation.
Gov. Meyer has evidently seen the lipjht, and has changed his views
accordingly.
Mar. 31, 1932. 111.
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Federal Reserve Bank of St. Louis
187.
Meyer, Gov. (Contid.)
75.
This conversion of Gov. Meyer will be appreciated when it is
remembered that in the above Board report he voted to give
drastic power to Board and F.R. banks to refuse rediscounts and.
suspend offending member banks from P.R. facilities.
Mar. 31, 1932. 111.
76. 0.6.H. feels that Gov. Meyer felt first that it would hurt his
prestige to present a divided Board report to the Senate
Comittee, and, second, he feared to cross swords with Miller
and C.S.H. before the Senate Com-Attee, and theiefore decided
to yield and thus get credit for Board unanimity.
Mar. 31, 1932. 111.
77. Gov. Meyer told Board of the opposition of Interstate Commerce
Commission to loan to Missouri Pacific Railroad by Reconstruction
Finance Corporation.
He said he had taken the position, as Governor of the F.R. Board,
that this and similar loans were proper and necessary; that
the overdue R.R. notes were held by banks as well as by bankers;
that they vdere more like business paper Which must be paid at
maturity, than like capital loans, Which ordinaril could be
April 2, 1932. 112, 113.
extended.
Gov. Meyer never consulted the Board on thisl
April 2, 1932. 112, 113.
7E. Gov. Meyer said loans of this kind would greatly helpthe railroads
get
on their feet; that considering lower wages and economics
they were nearly on their feet now. He was very optimistic.
April 2, 1932. 113.
79.
C.S.H. receives from Gov. Meyer a copy of Gov. Harrison's letter and
memorandum to Glass criticising the GL,ss banking bill.
April 7, 1932. 119.
O. Gives the Governors a clear statement of ecorymic and banking
conditions.
His former optimism has entirely gone.
April 12, 1932. 122.
81. Favors a bold policy, — continued buying of Govt.
April 12, 1932. 123.
securities.
E2. Reads to Board a letter signed by some of the Governors as "Open
Market Committee", protesting against Glass bill even with
suggested changes of Board.
April 13, 1932. 3:24.
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contsd.)
83.
C.S.H. feels appointment of Howland Chase denends on whether
Gov. Meyer is satisfied with hi:r1, but feels it would
extraordinary for 0,77. Meyer to object of C.S.H. and
Wyatt are satisfied.
April 16, 1932. 129.
84. Shows ill tamper at Board's delay in approving loan to
Anglo4alifornia Turst Co. of San Francisco, under
Sec. 10-.B of Glass Emergency Ast.
He said his judgment favored it, implying that this should
be sufficient for the Board.
April 16, 1932. 131, Lta
85. Miller speaks to C.S.H. of Gov. Meyer's rough neck manners.
April 16, 1932. 132.
86.
C..H. tells Miller that he, Gov. Meyer, Harrison and Morrill
all agree that another Assistant Counsel for Board is
absolutely noces:ary.
April 21, 1932. 135.
87.
Wyatt says Gov. Meyer has not yet met Howland Chase; that
he would ask Gov. Meyer if he wanted to see him, before
he finally presented his name to Board.
April 21, 1932. 135.
88. Yloyd Harrison tried unsuccessfully to reach Gov. Meyer
in N. Y. to ask authority to apptbint Howland Chase; he
was in Directors meeting.
April 21, 1932. 135.
89. Asks Wyatt if all are agreed on Howland Chase. Wyatt said
Yes. Gov. Meyer then said to !o Ahead with his appointApril 22, 1932. 140.
ment.
90. Later, Gov. Meyer said that Felix Prankfurter of Harvard
Law School, was to see him tomorrow, and he would like
to ask him as to Chase's record in Harvard Law School.
Aril 22, 1932. 140.
91.
feels if Board had been as cautious in loking up
Floyd Harrison's and Morrill's qualifications, as Gov.
Meyer has been as to Howland Chase, they would still
be waiting in the cold.
April 22, 1932. 140.
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contld.)
92.
93.
Wyatt says Prof. Frankfurter wired Gov. Meyer that Chases:
record in Harvard Law School was not above mediocrity.
April 25, 1932. 143.
wires Dean Pounu, of Harvard Law School, who answered
very favorably as to Chase.
April 26, 1932. 143.
94.
Wyatt says he has O.K. of every member of Board except Ogaen
Mills and that Floyd Harrison presented it to Gov. Meyer
who also checked it.
April 26, 1932. 143.
95.
Wyatt said later that Harrison asked that no notice be sent to
Chase until he saw him - Wyatt.
Harrison said Frankfurter had telephoned him that Chase had
not received a single mark in Harvard Law SchcOl above
April 26, 1932. 144.
mediocrity.
Wyatt gave Dean Pound's telegram to Harrison who showed it
to Gov. Meyer, and that Gov. Meyer said he could notify
April 26, 1932. 144.
Chase.
to Gov. Harrison
his reply,
Norman/and
from
Gov.
cable
a
of
co;ies
97. Reads Board
read it
already
had
he
Meyer
Gov.
to
letter
saying in
him.
to
telephone
over
96.
Gov. Meyer had never mentioned this to Board!
April 19, 1932. 146.
See - Harrison, Gov.
98. Gov. Meyer acknowledged Gov. Harrison's letter and thanke
him for his "courtesy" in sending codes of the cables.
April 19 , 1932. 149.
99.
C.S.H. predicted that before long Gov. Harrison would favor
higher discount rates to protect gold outflow.
Gov. Meyer said higher rates would accomplish nothing as a
rate would ne begligible.
April 29, 1932. 150.
100. Says he knows that N. Y. Times statement that Gov. Harrison
is trying to secure a promise from Bank of Prance not
to withdraw its deposits without notice, so that our
banks could expend on them, - is not true.
May 7, 1932. 153.
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Federal Reserve Bank of St. Louis
190.
Meyer, Gov' (Contid.)
101.
Told Board that last weer that, at request of Glass he had
sent a list of further amendments to Glass bill, adding
that they were only amendments already approved by Board.
Gov. Meyer never consulted Board as to this letterl
C.6.H. did not check up Whole letter but the principal
suggestion was extending the time for divorce of
affiliates from 3 to 5 years.
May 11, 1932. 156.
102.
C.S.H. feels some times that Gov. Meyer has forgotten that
there is a P.R. Board1
May 11, 1932. 1.56.
103.
Disagrees with Miller's statement that purchase of Govt.
securities has done no good.
May 12, 1932. 160.
104. Last night, Gov. Meyer, Morrill and Goldenweiser spent evening
with Sen. Metcalf who is preparing amendments to Glass
bill.
Gov. Meyer never told Board. of this.
May 14, 1932. 161.
105.
C.S.H. told GovernorE; Conference that there is much construction
work which could and should be done, and that, while
it might not create "eligible" paper we might take care
of it through emergency provisions of Glass bill.
Gov* Meyer said he knew there was a demand for $10,000
residences in. Westchester County.
Gov. Meyer said we should cease concentrating solely on
"Eligible" paper, in this crisis.
May 17, 1932. 163.
106.
Gov. Meyer went to N. Y. Wednesday and was at directors meetin of F.R. Ban:, N. Y. yesterday.
Will not return until Monday.
May 20, 1932. 165.
107.
Gov. Meyer has always thrown cold -later on Miller and 2.6.H.'s
suggestion of a conference at .7ashington with business men
and bankers, followed by appointment of F.R. District
Committees. Hoover adopts the latter part.
May 21, 1932. 166.
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Federal Reserve Bank of St. Louis
J. VI,
Meyer, Gov. (Contld.)
108.
Gov. Meyer's time is so taken up with Reconstruction Finance
Corporation that he has little or no time for pressing
F.R. problems.
The Board is drifting without a rudder'
May 21, 1932. 167.
109.
Gov. Meyer says he was at a dinner in N.Y. with Ogden Mills
on Thursday, at Which the directors of F.P. Bank of N.Y.
and bankers were present; that Ogden Mills wide a very
able address; that a District Committee was at once formed;
that it was agreed that there was much construction vork
which could and should be done.
C.S.H. asked as to Gov. Harrison's sudden conversion to plan
of appointing a Committee, to Which he had objected at
Governors Conference.
Gov. Meyer said he paid little attention to Gov. Harrison at
the meeting.
Gov. Meyer said that tomorrow he was going with Ogden Mills
to Chicago to have a similar Committee appointed.
May 23, 1932. 167, 168.
110. Miller again urged a conference in Waihington and later the
appointment of 7944R. District Committees with a programme
agreed upon by the Washington Conference.
C.S.H. favored it strongly.
Gov. Meyer objected, saying that each F.R. bank could prepare
its own programme.
Board took no action.
May 23, 1932. 168, 169.
111. Hoover tells Miller he has no confidence in P.R. Board.
Whether Hoover included Gov. Meyer, Miller did not now.
May 23, 1932. 169.
112.
Miller thinks the sudden shift of Gov. Meyer and Gov. Harrison
as to appointment of P.R. District Committees, was caused
by Hoover's direction to Gov. Harrison.
May 23, 1932. 169,170.
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Federal Reserve Bank of St. Louis
J.V64,
Meyer, Gov. (Contid.)
113.
C.6.H. told Board of his letter in reply to Lidhtensteinis
charges and previously had sent each Member of the Board
a copy,
Gov. Meyer said he had not had time to read it, and treated
the matter most jocosely, as if of no importance.
May 23, 1932. 170.
114.
Miller and C.S.H. feel that Gov. Meyer is so tied up with his
work on Reconstruction Finance Corporation and so likes its
work, that he has little time to give to P.R. problems
which are pressing.
May 23, 1932. 173.
115. Lichtenstein told C.S.H. he should do nothing more about
explaining his charges against P.R. Board, as he had
talked about it with Gov. Meyer earlier in the day at
the Federal Advisory Council meeting, Who said it was
nothing and to "let it pass."
May 23, 1962. 172.
116. Lichtenstein writes Gov. Meyer that he did not intend to
charge Board with politics, etc.
May 23, 1932. 174.
117.
Opposes Traylor claim that we should buy more long tenm bands
in open market.
May 24, 1932. 174.
118.
Gov. Meyer sends a letter to Lichtenstein, acknowledging his
letter and concluded it, "with kind regards, Sincerely yo re
One would suloDose that Lis letter was in praise of the Board,
rather than an attack'.
May 24, 1932. 176.
119. Reports as to Chicago meeting yesterday appointing a F.R.
District Committee.
May 24, 1932. 177.
120.
Gov. Meyer seaned all at sea as to economic conditions.
He said he would be glad to give long term loans on cotton
at 7 cents per lb. but felt it would look too much like
the Federal Farm Board poiicy.
May 26, 1932. 177.
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Federal Reserve Bank of St. Louis
193.
Meyer, Gov. (Contid.)
121.
Gov. Meyer then asked if any member had any suggestions to
make but he went around the tz,ble so quickly and casually
that C.S.H. felt he did not want any sue-tions but
preferred to tell Hoover the Board was all at sea.
May 26, 1932. 177.
122.
Gov. Meyer acted as if he had some plan up his sleeve which he
was unwilling to tell to the Board.
C.S.H. suggested a loan like the 135 million cotton loan of
1914, but Gov. Meyer fairly snarled out that this would
be of no use.
C.S.H. said it succeeded in 1914 When cotton was only 50 per
pound.
Gov. Meyer said it succeeded only because of the war.
C.S.H. replied that cotton collapsed because of the war, but
the fear of its being made contraband by Great Britain was
the real trouble, and asked Gov. Meyer how, if the war
caused the collanse, how could Gov. Meyer claim that the
war was the cause of the success of the loan; that the
cotton loan overcame the shock of the war.
aov. Meyer was so pranounced and bitter at C.S.H.'E suggestion
that C.S.H. feels he really has sane similar plan in his
mind, but hones to keep it from the Board in order to claim
the sole credit for it.
The Board should have spent the day discussing these pressing
economic problems, but, as usual, Gov. Meyer rushed off
to meet with the Reconstruction Finance Corporation vhere
his heart really is.
He is playing, as usual, a :one hand and wants no help from
the Board'
May 26, 1932. 178, 179.
123. Gov. Meyer goes to N. Y.
May 26, 1932. 179.
124.
The omission from Boards minutes of C.S.H.Is resolution May 23, 1932 - and his remarks about the Lichtenstein
letter, makes C.S.H. feel that the records are drawn to
feature everything Gov. Meyer says making everything else
subordinate.
See supra, p. 169.
May 28, 193'. 180.
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contld.)
125.
Gov. Meyer won't be back until next Friday.
He goes to
Cleveland and Phila. before his retu
rn.
May 31, 1932. 183,
126. Miller says Gov. Meyer knew nothing
about Hoover's direction
to Mills and Gov. Harrison to appoint a P.R.
District'
Conmittee at N.Y., until he reachei the dinn
er in N.Y.
Miller feels Hoover has been discourteous
to Gov. Meyer in
not telling him.
Miller thinks Hoover may have previously
discussed it with
Gov. Meyer and he had thrown cold water
on it as he
did at Board meetings.
Gov. Harrison concealed from Gov. Meyer
his instructions
from Hoover.
May 31, 1932. 183, 184, 186.
127.
Uiller and C.S.H. agree that Gov. Meyer
has little or no
initiative; that he loved mpney lending,
as done by
the Reconstruction Finance Corporation,
but had no time
and only a languid interest in P.R. Boar
d matters.
May 31, 1932. 184.
128.
C.S.H. feels it extraordinary that
Gov. Meyer should. have left
W-shington, without !,entioning to the Boar
d his visit to
1
N. Y., Phila. 84 Clevdiand,in all of which
P.R. Banks
C.S.H. is on the BommiOommittee.
May 31, 1932. 184.
1
129.
Gov. Meyer has a total incapacity to
work with any one else.
He really seems to believe that he
is the P.R. Board.
He plays a lone handl
SOMB day he will come a crop2erl
May 31, 1932. 185.
130. Miller said Gov. Meyer was plai
nly chagrined and edharrassed
when he told the Board about the N.Y.
dinner at which
the P.R. district ..:oramit-_ee was appo
inted.
He tried, however, to give the Boar
d the impression that he
himself did it.
May 31, 1932.185.
1
,
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Federal Reserve Bank of St. Louis
Meyer, Gov. (Contld.)
131.
Gov. Meyer stayed in N. Y. until Thursday evening, when
he went to P. Bank of Cleveland and then to P.R. Bank
of Philadelphia.
He explained these meetings to the Board and said they were
very profitable, that much new work had been discussed
which could be taken care of.
He said in Cleveland alone there were 175 applications for
credit.
June 2, 1932. 189, 190.
132.
C.S.H. suggested that an abstract of these meetings be sent
to each F.R. Bank, especially to Kansas City and Minneapolis
*here the P.R. District Committee had done almost nothin
g.
Gov. Meyer objected to this.
June 2, 1932. 190.
133. C.S.H. told Board that a financial report, so Lichtenstein
said, told him that President Coolidge in 1928 directed
that money be made easy in order to carry the election.
Gov. Meyer said Coolidge never made such a statement.
James and Miller wanted Board to refuse to receive Lichte
nstein
at future meetings of Federal Advisory Council.
Gov. Meyer and C.S.H. thought this too drastic.
June 3, 1932. 191.
134. Miller said Gov. Meyer is at last
the Lichtenstein matter, ad if
Presidential election in 1.28,
doing the same now through its
very muCh disturbed over
Board considered the
it may be claimed that it is
open market policy.
C.S.H. is glad Gov. Meyer at last sees the light.
June 4, 1932. 193.
135. A very eulogistic photograph of Gov. Meyer and his
family
appeared in a Sunday mornin,7 paper today.
June 5, 1932. 193.
136.
Magee goes with Gov. Meyer to F.R. Bank, Ric.mond, to meet
the P.R. District Committee.
June 7, 1932. 194.
137. There is a rumor that Dawes and Gov. Meyer had sharp
differences
in Reconstruction Finance Corporation.
June 7, 1932. 194.
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Federal Reserve Bank of St. Louis
.1.41.14
Meyer, Gcv• (Contld.)
138.
C.S.H. did not have a chance to tell Gov. Meyer of his
work with Glass to prevent a cutting down of P.R.
salaries in economy bill, as he was away, and quick
action had to be taken on June 2, 1932 and June 3, when
he sent his letters to Glass.
Alms 7, 1932. 195.
139. Boston Transcript says resignation of Dawes from Reconstruction
Finance Corporation grew out of difference's with Gov.
Meyer, who was more conservative than Dawes.
June 7, 1932. 196.
140. Board meeting called for 11 a.m.
Then postponed 1/2 hour to please Gov. Meyer.
Gov. Meyer said he could stay only a few minutes as he had
an engagement with some Chicago people, — presumably
Reconstruction Finance Corporation business.
Board should have taken up many important matters, e.g.
Lichtenstein, P.R. District Committee, Chief F.H. examiner,1
etc.
The above often happens under Gov. Meyer.
June 9, 1932. 196.
141.
Gov. Meyer says Gov. Harrison is contemplating asking the
Bank of Prance to earmark or export all its deposits,
now about 100 million.
mo
Gov. Meyer and the Board were inclined to approve this.
June 9, 1932. 197.
142.
Magee said Gov. Meyer while en route to P.R. Bank of Richmond
with htn discussed andapproved C.S.H. efforts to prevent
Board's salaries being cut under econcwv, bill.
June 9, 1932. 198.
Memo
Meyer, Mrs. Zugene.
We called on.
Dec. 19, 1931. 26.
Some society people of Westchester County,
wrote and asked her to loan her
entertainment, and she politely
praised for this.
Jan. 5,
Who had never called on,
house for some
refused. She is much
1932. 36.
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Federal Reserve Bank of St. Louis
Meyer, Mrs. Zugene (Contsd.)
H.P.H. lunches with, to meet Mrs. Ogden Mlle and ladies of
P.R. Board and Reconstruction Finance Corporation.
April 17, 1932. 133.
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Federal Reserve Bank of St. Louis
MILLER
Index.
Affiliates, Security
See - Security affiliEtes.
Anglo-California Trust Co. 38.
-BBaker, Newton D. 28.
Bold. policy, Govt. securities. 36.
Burgess. 10.
Burgess and Goldenweiser. 13.
-CCalkins, Gov. 38.
Chagrin. 62.
Chase, Howland. 40, 41, 42.
Collataral. 1.
Community Chest. 2.
Congress praised. 46.
Crisis of 1929. 4.
Debentures, Federal IntermecUate credit. 1.
Definition
See - F.R. facilities.
Depositors, Foreign. 65.
Deposits, Withdrawal of. 16.
Direct action. 31.
Discounts, Refusal of. 3, 11, 13, 17, 22.
Discourtesy of Hoover to Gov. Meyer. 59.
Divorce of affiliates. 32.
Dr&fts prepared by.
See - Open market powers. Sec. 3.
-eeconomy bill. 67.
Buropean banks. 16.
-FFailure of Glass bill predicted. 27.
Panther, Gov. 5, 6.
Federal Advisory Council. 55, 63, 64.
Federal Intermediate credit bank debentures. 1.
Federal Reserve Bank, Cleveland. 5.
See - Fancher, Gov.
(pace 198-A follows)
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Federal Reserve Bank of St. Louis
Federal ReFerve Bank, San Francisco. 7.
See - Calkins, Gov.
Federal Reserve banks. 37, 65.
Federal Reserve Board. 13, 18, 21, 26, 29, 31, 32, 34, 35, 48, 58, GO, 61,
62, 63, 66.
Federal reserve credit. 17.
Federal reserve facilities. 17.
Federal Reserve District Co=ittee, N.Y. 49, 57, 59.
See - Washinr,ton Conference.
Federal Reserve District Committees. 47, 48.
Federal reserve problems. 53.
Federal Reserve System. 12, 28, 46, 54.
ioreign denositors. 65.
Garner. 51.
Glass. 3, 8, 13, 14, 15, 16, 17, 20, 22, 23, 25, 26, 32, 33, 67.
Glass bill. 8, 9, 13, 25, 26, 27, 28, 29, 31.
Glass emergency bill. 18, 19, 21, 23, 37, 38.
Gold payments. 65.
Suspension of. 16.
Government secarities. 24, 36, 37, 43, 44, 45, 54.
lovernors Conferences. 49, 58, 60.
-HHamlin, C.S.
5,8, 13, 14, 17, 19, 20, 21, 22, 25, 27, 31, 33, 34, 37, 40, 41, 43,
45, 47, 53, 57, 58, 60, 61, 67.
Harrison, Floyd. 41.
Harrison, Gov. 10, 28, 45, 46, 57, 58.
Hearing. 26.
Hoover, President.
5, 11, 12, 15, 16, 23, 48, 49, 50, 51, 57, 59, 60.
-1Inflation. 12.
Initiative. 61.
James. 37, 64.
Lamont, Sec. 57.
Lane, Sec. 51.
(Pare 198-B fo.lows)
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Federal Reserve Bank of St. Louis
198-B
Law Committee. 40.
Lichtenstein. 52, 55, 63, 64, 66.
Long term bonds. 54.
Member bank 15-day collateral notes. 1.
Meyer, Gov. 19, 27, 34, 35, 39, 41, 43, 45, 48, 53,
58, 59, 60, 61,
62, 66.
Meyer, Mrs. Eugene. 56.
Mills, Ogden. 10, 29, 49, 59.
Moratorium. 16.
Morrill. 41.
N. Y. banks. 11.
See - Hoover
N. Y. dinner
See - Federal Reserve District Committee, N.
Y.
-0Open
Open
Open
Open
maltet
market
market
market
conference. 58.
operations. 12.
powers. 30.
provisions.9.
Percentage, Speculative loans. B.
Perrin, John. 7.
Politics. 46, 52, 66.
Prestige. 34.
"Primary" 17.
Railroad relief loans. 35.
Reconstruction Finance Corporation. 35, 38, 53,
61.
Rediscounts.
See.Discounts
Refusal Of discounts
See - Discounts
Regulation. 17.
Republicans. 33.
Required reserves. Reduction. 16.
Responsibility for Glass emergency bill. 18
Rough neck. 39.
..5
6alary reduction. Economy bill. 67.
Secondary inflation, 1931. 12.
secretary of Treasury. 29.
(page 198-C follows)
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Federal Reserve Bank of St. Louis
198—C
Section 3. 3, 13, 20, 22, 25,
32.
Sections 3 and 9. 17.
Section 10-1 Glass emergency bill
. 38.
Security affiliates. 32.
Speculative loans. 8, 17.
Standard Trust Co. 5.
Suspension of gold payments. 16.
-TTraylor, M. A. 54.
"Undue"
17.
-v-
Van Deventer, Justice. 41.
-WWalcott, Sen. 22, 25.
Warburg.
Jerry. 4.
Mrs. 56.
Paul. 4, 56.
Washington conference.
P.R. District Committees. 45,
47, 48, 57.
Willis, H. P. 25.
Wyatt. 10, 40, 41, 42.
me
••••••
(page 199 follows)
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Federal Reserve Bank of St. Louis
199.
Miller, Adolph
1* All of Board except Miller, after informal talks, favored
Federal Intermediate credit debentures as collateral for
member bank 15-day collateral notes.
Dec. 8, 1931. 5, 6.
2.
Gives Ca)to commimity chest.
Last year, L1 r gave $5000 to Newbold Noyes and would not
credtt any of it to F.H. quota.
Dec. 12, 1931. 11.
3. Glass says he had adopted Miller's draft of Sec. 3 - power
to
refuse rediscounts.
Dec. 16, 1931. 20.
4. Miller praised Jerry Warburg very highly - he said he predicted
the crash of 1929 to his father, Paul Warburg, Who said
he did not know What he was talking about.
Dec. 17, 1931. 21.
5. Orders Gov. rancher to revoke his refusal to discount further
for the Standard Trust Co., a labor bank, after consulting
with White House.
Did not consult C.S.X. who is on Cleveland Committee, and who
was at hand.
Dec. 21, 1931. 27, 28.
6. Says that Gov. Fancherls habit of saying
of mental degeneration.
er, er - is a sign
Miller himself is a conspicuous offend rl
Dec. 23, 1931. 30.
7. John Perrin, formerly Chairman of the P.R. Bank, San Francisco,
dined with Miller.Christmas dinner, on Dec. 25 and died
suddenly Dec. 27, 1931.
Dec. 25, 1931.32.
8.
C.S.E. objected to clause in Glass bill requiring P.R. Board to
fix percentage of speculative loans.
Glass triumphantly said that Miller wrote this provisioni
Miller had never told the Board of thist
Jan. 28, 1932. 50.
9. C.S.H. believes also that Miller wrote the open market provision.
Jan. 28, 1932. 50.
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Federal Reserve Bank of St. Louis
200.
Miller, Adolph (Contsd.)
10.
Miller said he ha4 never heard what Wyatt said - that Ogden
Mills bad directed Gov. Harrison to send Burgess down.
Feb. 1, 1932. 52.
U. Tells C.S.H. that Hoover hates the N.Y. banks but at the same
time fears them; that no one could tellas to his attitude
as to giving power to refuse discounting to member banks.
Feb. 9, 1932. 59.
12. Miller said that same years ago when Hoover was drafting his
annual message, he asked him to look it over; that it contained
extraordinary praise for the F.. System; that he - Miller told him he was ashamed of the F.-.. System, that by its
open market operations it encouraged a secondary inflation
in 1931.
Later, he said, Hoover said the P.:t. System was a failure.
C.S.H. feels Miller is not consistent.
Feb. 9, 1932. 59.
13. Miller said Glass askedhim to call on him last night and that
they talked for nearly two hours and went over Glass's bill.
Miller said Glass asked him as to C.S.H.Is views, especially
as to Sec. 3 - the penalizing clause.
Miller said he told Glass to ask C. H. for his views in general,
but that he could say that as to the pena1i2ing clause C.S.H.
was with Glass altho he had suggested same changes in the
Section.
Glass told Miller he understood that the P.R. Board had authorized
Burgess and Goldenweiser to present in their report to Glass
Committee the views of the Board.
Feb. 10, 1932. 60.
14. Miller said Glass had asked him to submit his views in the bill
and Miller said C.S.H. should do the same.
C.S.H. said he would if Glass asked for them.
Miller said C.S.H. could consider,from what Glass said, that he
had asked his views.
Feb. 10, 1932. 60, 61.
15. Miller said that Glass telephoned that he had to go to the White
House and could not meet him this mornin:: as he had agreed
to do.
Feb. 10, 1932. 61.
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Federal Reserve Bank of St. Louis
Miller, Adolph (Contld.)
16. Miller said Glass called him up and said Hoover wanted the
Board to reduce the required reserves for member banks; that
he told Glass this m ght cause a withdra,,a1 of deposits by
European banks.
Miller agreed with C.zi.H. that such a step should not be taken
now; that it might prove a red flag and lead to a gencral
moratorium, equivalent to a suspension of gold payments.
Web. 10, 1932. 63.
17. Miller gave C.6.H. a draft of lefinition of "Federal reserve
facilities" which he had drawn.
C.S.H. said it would bar any bank from discounting if it were
carryinz a single speculative loan.
Finally Miller agreed to put in the words "primary" and uundue"•
and C.S.H. said he would accept this.
As agreed on, it read: "The primary purpose of the P.R. Act is definted to
be the accommodation of industry, trade, and agriculture,
the protection of depositors of member banks and the
maintenance of economic and financial stability in the U.S.
The Federal Reserve Board and every P.R. bank shall
therefore exercise care to protect the resources of the
Federal Reserve System from undue diversion into security
financing and speculative uses."
Miller later added a clause =powering the Board to lay down
regulations as to the use of P.R. credit.
C.S.H. finally accepted the whole draft and authorized Miller
to so inform Glass, but reserving the right to send Glass
his own substitution from Sections 3 and 9.
Feb. 10, 1932. 64.
18.
Miller said he had not been consulted with relation to the Glass
emergency bill in any way, but he preferred not to be and to
let those responsible fear the responsibility.
The Federal Reserve Board has practically ceased to existl
Feb. 12, 1932. 67.
19. If Gov. Meyer had taken C.S.H. and Miller into his confidence,
the path of the Glass emergency bill would have been easier.
Feb. 12, 1932. 70.
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Federal Reserve Bank of St. Louis
4V4.:•
Miller, Adolph (Cont'dm)
20. Glass told C.S.H. that Miller's draft was to be gone over
tomorrow with Miller.
rob. 12, 1932. 72.
21. Miller objected to Board's considering the Senate emergency
bill, as Senate had not asked for Board's opinion but Board,
on C.S.H.'s sugestion, determinei to take it up and later
determine whether to send it to Senate Committee.
Feb. 15, 1932. 74.
.
22.
Miller said Glass cane to his house yesterday but was called
away by Sen. Walcott; that Glass was in a fairly quiet mood;
that he said he would go over C.S.H.'s and Miller's drafts of
Section 3, carefully; that he feared they were not strong
enough; that there was an overwhelming sentiment in Congress
for power to discipline member banks.
Feb. 15, 1932. 75.
23. Miller said Hoover sent for him late yesterday p.m.; that he
went there and found President and Mrs. Hoover; that Hoover
said he hoped Miller would. use his influence with Glass to
straighten out the emergency legislation; that he had no doubt
but that Hoover had been asked by some one to say this.
Feb. 15, 1932. 75.
24m
Miller said he had always opposed the policy of buying Government
securities but now he deemed it wise and would even vote
for purchase of 500 millions.
rob. 24, 1932. 82.
25.
Willis, in preparing a new draft of Glass bill, as agreed
on
by Glass and Sen. Walcott, struck out Miller's and C.S.H.Is
suggestions as to Sec. 3.
Mar, 14, 1932. 92.
26. Miller rather apposed suggestion of a hearing before Senate
Committee.
He said ordinarily he would agree as a matter of course, butte
feared Glass would think the Board was trying to delay action
on the bill.
Mar. 18, 1932. 95, 96.
27. Agrees with C.S.H. that Gov. Meyer, from his general attitude,
hopes the Glass banking bill will fail of passage.
Mar. 21, 1932. 98.
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Federal Reserve Bank of St. Louis
203.
Miller, Adolph (Contld.)
28. Said that Gov. Harrison's sug,cestion that Newton D. Baker be
retained to represent the 111.14 System as to the Glass
banking bill, shows that he is desperate with his back to
the wall.
Mar. 23, 1932. 104, 105.
29. Miller favored Glass bill's provision that Sec. of Treasury
be dropped from the P.R. Board, but finally said he was
impressed with the suggestion of having him remain an
ex-officio member without the right to vote, as suggested
by Ogden Mills.
Mar. 26, 1932. 108.
30. Board final.y agreed to recommend to Senate Committee a draft of
open market powers along lines suggested by Miller.
Mar. 28, 1932. 109.
31. Miller and C.S.H. feel that the unanimous vote of all members
of the Board favoring its draft of Glass bill is necessarily
an indorsement of Board's direct action policy of 1929,
and that it is one of the most important decisions ever
reached by the Board.
Mar. 30, 1932. 110.
32. Miller said he talked with Glass when Board went before the
Senate Committee yesterday; that Glass was pleased and
impressed with the unanimity of the Board; that Glass said
the Board's draft of Sec. 3 was better than his; that he
was also pleased with the section divorcing security
affiliates.
Mar. 31, 1932. 111.
33. Miller and C.S.H- feel that if Glass has any political sa::•acity
be will accept our bill and dare the Republicans to
defeat It.
Mar. 31, 1932. 111.
34.v Miller and C.S.H. feel that Gov. Meyer believed it would hurt
his prestige to go before the Committee with a divided
Board, and accordingly made up his mind to yield to Miller
and C.S.H., rather than to fight them before the Senate
Committee.
Mar, 31, 1932. 111, 112.
35. Rather objects to Board taking any position as to desirability
of Reconstruction Finance Corporation loans to R.R.s as
Board's opinion had not beenasktd.
This was in answer to Gov. Meyer's statement that he as Gov.
of P.R. Board had said he favored such loans.
April 2, 1932.113.
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Federal Reserve Bank of St. Louis
ZO4
Miller, Adolph (Contld.)
36. Favors a bald policy and favored buying 500 millions of
Government securities in addition to the 100 millions
already authorized.
April 12, 1932. 123.
37. Feels, with Janes and C.S.H., that all T. banks which can
should participate in purchase of Government securities;
that those which can not take full quota should take
what they can and should later apply for relief under
Glass emergency bill.
This view prevailed.
April 12, 1932. 124.
38.
Thought at first that the Anglo.California Trust Co., an
applicant for a loan under Sec. 1043 of Glass emergency
act Should apply to Reconstruction Finance Corporation,
but it was felt that if it did this it would advertise
its condition.
Miller said he spent 3 hours with Gov. Calkins yesterday, going
into the *hole matter and thathe felt the applicaton
should be approved.
April 16, 1932. 130, 131.
39• Miller refers to Gov. Meyer's rough* neck manners.
April 16, 1932. 132.
40.
Wyatt said he would refer matter of appointment of Howland Chase
to C.S.H. and Miller ax members of the Law Committee.
April 20, 1932. 1.34.
41. C.S.H. told Miller about Howland Chase, and of recommendation of
Judge Van Deventer.
Miller said the Judge's indorsement was of
reat value.
He asked if the appointment was to fill a vacancy and C.S.H.
explained that it was a new office, waiii Morrill, Harrison
C.S.H. and Governor geyer felt was absolutely necessary.
He told C.S.H. that no member of Chase's family nor any one
else had spoken to him about it,
C.S.H. told Miller he first heard of it only when Wyatt told him.
Miller favored the appointment.
April 21, 1932. 134, 135.
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Federal Reserve Bank of St. Louis
205
Miller, Adolph (ContId.)
42.
Miller told Wyatt he apnroved Chase's appointment and
would back up Wyatt's recommendation.
April 22, 1932. 140, 141.
43.
Tells Board the purchase of Government securities had done
no good and he should not favor buying another 100 million.
C.:J.H.and Gov. Meyer took issue with this.
May 12, 1932. 160.
44.
Decides to approve further purchases of 500 millions of
Govt. securities.
May 17, 1932. 162.
45.
Says this policy alone can not accomplish the desired. result;
that there must be cooperation with the member banks.
Suggests that Board arrange a conference at Washington between
the Federal Reserve Board, Federal reserve banks, and
leading industrialists and bankers to prepare a programa
to be carried out by the Federal reserve banks and
Committees appointed by them.
C.S.H. agrees with Miller as to necessity for this.
Neither Gov. Harrison nor Gov. Meyer favored this.
May 17, 1932. 162.
46.
Gov. Harrison deprecated Miller's suggestion because of
uncertainty and fear of Congress still in session.
Miller defended Congress saying it had done suprising well
under existing conditions; that the principal reason for
the many bills which we could not approve, was that
Congress could see no clearly defined policy in the
Federal Reserve System4
May 17, 1932. 163, 164, 165.
47. Miller again favors a conference at Washingto'l.
with him.
C.S.H. agreed
Gov. Meyer objected and said each P.R. bank could prepare
its own progmx.a of cooperation with mamber banks.
May 23, 1932. 168, 169.
48. Miller said Hoover sent for him a week ago, just after the
White House breakfast conference, Feb. 9, 1932, — ; that
he as with him 2 hours; that he explained to Hoover the
necessity for a Washington conference to prepare a
programme for F.R. banks to work out through P.R. District
Committees; that he told Hoover thic was a job for the
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Federal Reserve Bank of St. Louis
0•
Miller, Adolph (Conts d.)
48. (Contsd.)
Federal Reserve Board; that Hoover quickly said he had
no confidence in the Federal Reserve Board, but whether
Hoover meant Gov. Meyer or the Board in general Miller
could not say.
May 23, 1932. 169.
49.
Says there is something mysterious about the appointment of
the N. Y. District CommitA3e; that he thinks Ogden Mills
may have told Hoover about the discussion in the Governors
Conference, and that Hoover probably sent Mills to N.Y.
with instructions to have a Committee formed.
May 23, 1932. 169, 170.
50. Speaks of Hoover's dsire to run ev-rything from the White House.
May 23, 1932. 170.
51. Says that while Garner's attack on Hoover was undiplomatic, —
he said if Hoover would keep quiet 30 days all would be
well, — that Garner was in part, at least, justified;
that Hoover, as Sec. Lane said in 1925, was the greatest
advertiser this country had ever had.
May 23, 1932. 170.
52. Says the Lichtenstein charge against P.R. Board is very serious
and would undoubtedly serve as the basis of future charges
against Board of a political nature.
May 23, 1932. 172.
53. Agrees with C.S.H. that Gov. Meyer is so tied up with
Reconstruction Finance Corporation and likes such work so
much that he has little time left for no problems.
May 23, 1932. 173.
54.
Opposes Traylorss suggestion that F.R. Systecashould buy more
long term bonds.
May 24, 1932. 174.
55. Miller thinks the Federal Advisory Council considered the
Lichtenstein Charges after Board had left.
May 24, 1932. 175, 176.
56. Says Mrs,. Warburg told Mrs. Miller that Paul Warburg's estate
was in the °roe when he died; that she was trying to
sell their city house, but hoped to keep up the White
Plains house; that Mrs. Warburg could not keep up a a year
charity she had pledged, with Mrs. Miller, to supTiort.
May 25, 1932. 176.
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Federal Reserve Bank of St. Louis
207.
Miller, Adolph (Cont l d.)
57.
Told C.S.H. that he was at the dinner given by Sec. Lamont to
Hoover last week; that Hoover told him he had kept in
mind Milleris suggestion of a Washington Conference and
appointment of District Committee; that he sent for
Gov. Harrison and directed him to form a N. Y. Committee
at once.
May 31, 1932. 183.
58. Miller and C.S.H. believe thA Gov. Harrison had received these
instructions when he took part in the Open Market Conference,
but concealed them from Gov. Meyer, the Boar,L and the
Governors.
May 31, 1932. 183.
59. Miller said Hoover directed Ogden Mills to arrange for the
formation of the N. Y. District Committee at the dinner
in N. Y., which Gov. Meyer attended, but that Gov. :aver
knew nothing about it until he reached the dinner; that he
thought Hoover had been discourteous to Gov. Meyer for
not taking him into his confidence.
May 31, 1932. 183, 184.
60. MillPr said he thought Hoover may have mentioned this to
Gov. Meyer some time ago and that Gov. Meyer probably
threw cold water on it as he did then Miller and C.6.H.
advocated it in Governors conference and before the Board.
May 31, 193:-. 184.
61.
Miller said Gov. Meyer seemed to have little or no initiative;
that he loved money lending as done by Reconstruction
Finance Corporation,but took only a languid interest in
Federal Reserve Board problems. C.S.H. agreed to this.
May 31, 1932. 184.
62. Miller said Gov. Mez-r wa olainly chagrined when he told Board
of N. Y. dinner and a7pointment of N. Y. Federal Reserve
District Coragittee. He tried to have Board think he did it.
May 31, 1932. 185.
63. Says Board should officiallpktake un Lichtensteinls charges with
the Feueral Advisory abuncil.
June 3, 1932. 190, 191.
64. Miller seemed to agree Ath James that Board daould henceforth
refuse to receive Lichtenstein at Federal Advisory Council
meetings.
June 3, 1932. 191.
65. Miller said he was -orearing a airection to Federal reserve banks
not to pay out gold, except as to foreign depositors.
He did this in anticipation of emergencies.
June 4, 1932. 192.
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Federal Reserve Bank of St. Louis
208.
Adolph (Contsd.)
66.
Miller says Gov. Meyer has become very much disturbed over
Lichtenstein's charge, lest it be claimed that if
Board was influenced, by nolitics in 1928 it was again
playing nolitics in its nresent onen market policy.
June 4, 1932. 193.
67.
C.S.H. told Miller of his efforts with Glass to save Federal
Reserve System from cut in salaries under economy bill.
At first he was not interested but When C.S.H. told him of
the ltuitation of annual lea%e to 15 days he became very
much interested.
He said it would take 10 days to co to and come from California.
He anoroved C..11.'s efforts.
June 7, 1932. 194, 195.
Mills, Ogden, Secretary of the Treasury
1. Explains Treasury policy to Governors conference.
He said that Hoover has informed Congress that about 2 billions
of bonds or securities must be issued to meet the
deficit in fiscal y,Iar 1932; that after that time no further
issues will be made, and taxation must be employed
to balance the Budget.
C.S.H. asked if this statement as to future nolicy was
essential to the Treasury policy.
He said Yes.
He asked Board to establish a lover discount rate on paper secured
by Government securities, in order to help nlace tam,
stating that the emergency was as great as durirv7 the
war and that the F.R. System should cooperate.
Jan. 11, 1932. 41 (2)
2.
Gov. Meyer said, thoroughly ap -proved telling France to withdraw
her deposits.
Jan. 19, 1932. 45.
3.
C.S.H. believes this is a nure4 political move of, and the
administration because of anger at France for her attitudd
towards reparLtions, disarmament, allied debts,tariff, etc.
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Federal Reserve Bank of St. Louis
309.
Mills, OcrIen, Secretary of the Treasury (Contl
d.)
3. (Conted.)
They really rant to nunish France bea, use the has become
scared by Willis's false unpatriotic cables to French
newspapers.
Jan. 19, 1932. 46.
4e
Addreses American Acceptance Council, in N. Y., talking of
P.R. System and urging banks to expand credit.
One would think he was the Federal Reserve Boardt
Jan. 26, 1932. 48.
5.
Wyatt heard, call It) Gov. Harrison and direct him to send down
Burgess to work with Goldenmeiser on Glass bill.
Feb. 1, 1932. 52.
6. Papers announce appointment of, as Secretary of Treasu
ry.
C.S.H. feels, has pushed out Mellon and manoevered hiaself
into this position.
Feb. 4, 1932. 54.
7.
9.
Takes oath of office, 4:30 p.m.
Feb. 12, 1932. 66.
Goes before H.R. Committee with Gov. Mey-r and Goldenweiser
to urge extension of 1 year limit in Glass anergency
bill.
Feb. 12, 1932. 67.
Board was not consulted as to this.
Feb. 12, 1932. 67.
9.
at Gov. Meyer's home, heard him tele .ihoring to, and
discussing plans to induce members of H.R. and Senate
to extend above 1 y ,ar limitation.
Board never consulted.
Feb. 12, 1932. 70.
10.
Writes C.S.H. acknowledgin his letter of conoTatulations.
kddressed to C.E.H. esquire.
Feb. 17, 1932. 77.
11. Discusses conference re-)ort on Glass emergency bill
with
Gov. Meyer, Gov. Harrison and Glass.
Board not told of this conference..
Feb. 24, 1932. BD.
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Federal Reserve Bank of St. Louis
Mills, Ogden (Conttd.)
12. Strongly favors buying more Government securities to help
N. Y. banks which have to carry burden of future,
Treasury security issues.
He said he Should ask these banks to buy the new issues and hold
them until the Treasury called for the money; that they
could then rediscount using the securities as collateral.
He said this was the original intent, but that the banks had
been dumning than on the market for profit, - which was
bad.
He said they could make a reasonable profit by rediscounting
the issues at a rate lover than the rate borne by
the securities.
He said the Treasury would distribute the proceeds over the
country which would help all the banks.
Feb. 24, 1932. 82, 83.
13. Agrees with C.S.H. that Sections 10-A and 10-B of Glass
anergency bill are entirely distinct and that a
proposed regulation that ap,?licatns must try to join a
groun under 10..A before applying for relief under 10-B
should be stricken out.
Mar. 9, 1932. 89.
14.
Gov. Meyer would not nut C.S.H.ts motion for an immediate
preliminary report of Boardts Committee on Glass bill
until recommended by, that he had neglected to do so.
Mar. 21, 1932. 98.
15.
Glass says B & G were constantly in consultation with Gov.
Meyer, Gov. Harrison and.
Mar. 22, 1932. 100.
16.
Tells Board that Sen. Walcott said he desired expert help and
that he arranged to have Burgess come down and, with
Goldenweiser, help him; that Hoover could not have
said that he had designated B. & G. to act for the Board.
Mar. 22, 1932. 101.
17. leans scored the Glass banking bill and said that there was
not the faintest chance of its passage; that the
Committee would newer report it; that it should be
postponed for at least a year.
Gov. Meyer agreed.
Mar. 22, 1932. 101, 102.
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Federal Reserve Bank of St. Louis
Z11.
Mills, Ogden (Contld.)
18.
C.S.H. said he differed with Mills and Gov. Meyer; that he
believed some bills would surely pass; that the Board
should help by suggesting helpful anendments; that if
the Committee should refuse to report the bill, Glass
would move to discharge the Committee and bring the bill
before the Senate, and he beltvad the motion would prevail.
Mar. 22, 1932. 102 - 103.
19.
Miller said he believed Mills and Gov. Meer wanted more to
have the bill rejected than amended. C.S.H. agrees.
Mar. 22, 1932. 103.
20. Speaks favorably of Gov. Harrison's suggestion that Newton D.
Baker be retained to represent the Federal Reserve System
on Glass bill, before the Senate.
C.S.H. and Miller opposed.
Mar. 23, 1932. 104.
21. Gov. Meyer repeats what Mills said to Board the other day as
to employment of B. & G. to help Sub-committee - that
Sen. Walcott said he and Glass desired expert help.
James said he remembered this.
Mar. 25, 1932. 107.
22.
C.S.H. asksilills just what Sen. Walcott said.
Mills said Walcott said it would be agreeable to Glass and himself
to have the help of B. & G.
Mar. 26, 1932. 107.
23.
Tells Board he personally does not oare whether Secretary of
Treasury be dronped fram Board or not.
Said he would not object to keeping him as ex-officio, but
without a vote.
Mar. 26, 1952. 108.
24. Gov. Meyer presents Glass bill as changed by Board.
is unanimous, including Comptroller and Mills.
April 29, 1932. 110.
25.
Says Board
Wyatt heard Mi1.s say that he joined with the other members
although he could not quite understand the clause divorcing
affiliates, but that he concurred, on nrinciple, inthe
decision that affiliates should be divorced.
April 29, 19',.S2. 110.
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Federal Reserve Bank of St. Louis
Ogden (Cont'd.)
Liquidating
25. Dai3er said that Comntroller and, felt that a
the Glass
that
ry;
Corporation was absolutely necessa
not
could
on
provisi
bill, which contained such a
ller and
Comptro
that
me;
possibly be passed for a longti
felt
Glass
that
bill;
Mills arranged for Thomas—Beedy
them
forced
and
fair
administration and, had not played
to withdraw the Thomas.Zeedy bill.
April 5, 1932. 114, 115, 116.
26.
Wyatt obtained approval of all the Board'excent, to
appointment of Howland Chase.
April 25, 1932. 143.
?I?.
Gov. Meyer tells Board of dinner at N. Y. at which the
P.R. District Committee was appointed; at Which Mills made
a very able address.
May 23, 1932. 167, 168.
to a
28. Millerthinks Mills told Hoover of the discussion as
t Committees
Distric
of
ment
annoint
and
nce
Washington Confere
Mills to
d
directe
Hoover
that
nce,and
at Governors Confere
a
such
of
ment
appoint
secure
and
go to N. Y. at once
170.
169,
1932.
23,
May
Committee.
29. N. Y. Times tells of Republican Conferences at White House.
Republican Senators, Mills, Gov. Harrison, et al, were present.
May 30, 1932. 182.
30.
Mills later explained that Hoover heard that Gov. Harrison
was spending the weekend, with Admiral Grayson, Nnd asked
him to come to White House to discuss "business conditions"
May 30, 1932. 182.
31.
Miller said Hoover had told him at Lmaont dinner that he
directed Ogden Mills to go to N. Y. and arrange for
theappointrant of a P.R. District Comaittee for I:. Y.
May 31, 1932. 183.
Mills, Ogden, Mrs.
H.P.H. lunches with Mrs. Meyer to mePt.
April 17, 1932. 133.
Minutes of Governors Conference. 194.
See — Governors Conference.
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Federal Reserve Bank of St. Louis
213.
Mirrors of Washington
C.S.H. meets Mr. Gilbert, author of, at dinner with Robert
Lincoln O'Brien.
April 7, 1932. 118.
Missouri Pacific L. 112, 113.
See - Meyer, Gov.
Montgomery, Mr.
One of candidates for legal position finally given to Howland
April 14, 1932. 127.
Chase.
Moore, Mrs. Ballard (Olyve Graef)
Calls on us.
Mar. 9, 1932. 90.
Said she called recently an Admiral Mark Bristol; that he
hoped to be Ambassador to Turkey, but that a Senator who
had been pushing him told him he had no chance unless he
could pay over $250,000, T'lich he said Charles Sherrill
had or had agreed to pay as a gift to the National campaign.
Mar. 9, 1932. 91.
Moret, Gov .Bank of France. 43.
See - Bank of France
Harrison, Gov.
Morgan Library
H.P.H. goes over,
ith Its Bigelow and meets Miss Thurston there.
Dec. 14, 1932. 17.
Morrill, Chester, Secretary P.R. Board.
Although Got. Meyer objected to any increase in salaries for
deserving members of the staff, he insisted on giving, $12,000 an increase of $2000 over what he had been receiving as Secretary
and General Counsel of Federal Farm Loan Board.
Dec. 11, 1932. 12.
Wyatt said Morrill drew the Reconstruction Finance Corporation
bill under injunctions of strictest secrecy; that he, Wyatt
was not allowed to let his law clerks know of the authorship;
that he heard Gov. Meyer mention its authorship to some one
the other day so he assumed the ban of secrecy had been removed.
Dec. 17, 1931. 22.
Spends an afternoon at Capital before a Committee in behalf of above
bill, with Gov. Meyer and Floyd Harrison.
Dec. 17, 1931. 23.
Dec. 18, 1931. 24.
Dec. 19, 1931. 25.
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Federal Reserve Bank of St. Louis
214.
Morrill, Chester (Contid.)
Wyatt says all requests for legal opinions now come from Harrison
Ore
Dec. 22, 1901. 28.
Prepares, with Harrison, list of Board Comm ttees for 1932.
C.S.H. not consulted.
Dec. 30, 1931.34.
C.S.H. consults, before sending letter to Glass to effect that
B. & G. did not represent the Board.
In this letter he said he strongly objected to B. & G. recommendation
striking out Sec. 3.
Morrill ruggested striking out all except reference to B. & G. as
he said a White House agreement with Glass had been reached
under which all but the emergency clauses of Glass bill had
been temporarily set aside.
Feb. 10, 1932.61, 62.
How Morrill knew of above ar7reement is a mystery.
Some forces are evidnntly working behind the Board&
Feb. 10, 1932. 64.
N. Y. Times says that,after above agreement, there was a conference
between Glass, ?rov. Meyer, Yiorrill, B. & G.
This ac:ounts for Morrill's knowledge of the agreement.
Fe. 11, 1932. 65.
Wyatt speaks of above conference.
Feb. 11, 1932. 65.
Morrill takes up with the Protocol Dept. of State Denartment, through
McClelland, the reason for a letter dated Feb. 9 fram
State Dent, to Gov. Meyer in whidh Gov. Meyer was
addressed as "Esquire.
Morrill said ruling is that Heads and Denuty heads of Boards and
commissions are addressed as Honorable and other members
as Eseuire.
This nulls Board down to level of head:
, of Division but above letter
does not even follow above stated rule.
Feb. 11, 1932. 65, 66.
Tells C.S.H. he is satisfied that the P.R. Act should grant specific
power to close discount window to any bank abusing F.R.
facilities and that this power should be given both to Board
and to the F.R. banks.
Mar. 9, 1932. 89.
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Federal Reserve Bank of St. Louis
215*
Morrill, Chester (Contld.)
Says Glass sent for him to help him draw a modified draft as
to divorce of affiliates, exern)ting holding companies,
and confining the divorce to sin ter affiliates and subsidiary
affiliates.
April 5, 1932. 114.
4
.
Glass told worrill he would accept practically all of Board's
recommendations.
Aptil 5, 1932. 114, 117.
i'latt obtained a coy of Sub—committee change b in Glass till before
anyone else knew of them. C.S.H. told Glass and he said
some one on Committee had been guilty of a breach of confidence.
Morrill told C.S.H. he had had a coy for several clays.
He never told Board as to
this.
April 7, 1932. 118.
Agrees that Howland Chase should be agoointed.
April 20, 19328 1301.
Morrill and Harrison but not Gov. Meyer had seen Howland Chase.
Apri121, 1932. 135.
C.S.H. feels that if Boprd had been as careful in scrutinizing
Morrill's original appointment as Gov. Meyer has been about
Howland Chase, Morrill would still be waiting.
April 22, 1932. 140.
Tells C.S.H. that everyone considers t:.e Glass banking bill dead.
May 14, 1932• 161.
Tells C.S.H. that latA ev,minr: Gov. Meyer, Goldenweiser and he spent
evening with Sen. Metcalf who is preparing amendments to Glass
bill.
The Board was never notified of thisi
May 14, 1932. 161.
Receives C.S.H.letter as to the Board minutes for 'lay 17, 1932, with
C.S.H.'s corrections.
May 28, 1932. 179.
Thoroughly approves C.S.H. effort to keep F.R. System salaries
from being reduced by economy bill.
June 8, 1932. 195
Tells C.6.H. ouestion of bringing back Chief examiner Paulger from
Reconstruction Finance Corporation, was being considered.
June 9, 1932. 198.
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Federal Reserve Bank of St. Louis
orris , Rowland
Ttils C.S.H. there is a fift betw.en Gov. Roosevelt and Al Smith
and that Smith told a friend of his that Gov. R. had not
consulted him in a single important question; that Smith
also vas angry because of Gov. R.'s apparent desire to
placate Tammany.
Dec. 14, 1932. 15, lb.
Josephus Daniels tells C.S.H. that, acted as Counsel for Col. Smedley
Butler; that be notified Sec. Adams that he should bring out
the fact that, during the Boxer uprising, Hoover was found
in a cellar disguised as a woman and dragged up by army
officers; that this threat paralyzed Hoover; that he, Morris,
wrote the letter of Col. Smedley Butler to Sec. Adams, and
also the reply of Sec. Adams.
Jan. 1, 1932. 35.
Morrison, Dr.
C.S.H. sends Dr. Joslints letter as to his eye examination to.
Dec. 2, 1931. 3.
See - Joslin, Dr.
Mortgasre
See - Mattapoisett mortgage.
Mt. Kisco
36. See - Meyer, Mrs. Eucjene
Myer, Gertrude
H.P.H. meets, at tea to Mrs. Wilson at Woman's Natl. Dem. Club.
She was very pleasant and said she had not seen "Charlie" for a long
time and sent her kindest regards to him.
She brought H.P.H. back with her in her new auto and begged her
to call soon.
Bertie told her she had better came to see her.
Dec. 4, 1931. 3, 4.
Calls on H.P.H.
Gave H.P.H. for Christmas a box of thread and needles.
She also sent us a Christmas card addressed to both of us.
C.S.H. was civil to her but nothing more.
She seemed nervous.
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Federal Reserve Bank of St. Louis
4.1.1•
Myer, Gertrude (Contld.)
She said she was to take Christmas dinner with Rachel Hale
tomorrow.
Dec. 24, 1931. 31.
H.P.H. calls on.
Dec. 28 1931. 33
Jan. 2, 1932. 35
H.F.H. writes, thankiag her for her Christmas present.
Jan. 2, 1931. 35.
Calls on us vd.th Rachel Hale. Jan.2, 1932. 47.
We lunch with.
Present: Mr. & Mrs. Larz Anderson, Gen. Parker; Mrs. Grant;
the Peruvian Ambassador and Rachel Hale.
Feb. 28, 1932. 84.
We call on, but she was out.
Mar. 3, 1932. 86.
C.S.H. called up Rachel Hale who said she would be deliphted to
see him but felt she ought to say that Gertrude Myer had just
tele-phoned she was coming to call.
C.S.H. said he was jealous of Gertrude and would call some later day.
Mar. 23, 1932. 106.
Bertie ealled up Gertrude who said that Howland Chase had gone
abroad with Mrs. Rodgers as Counsel in connection with the
elopement in Italy of young Miss Rodgers.
April 6, 1932. 117.
Tells M.P.H. she is to dine with Hoover tomorrow to meet her friend
Who is visiting the Hoovers.
Miss
April 6, 1932. 117.
Calls un C.6.11
Says she has decided to move her securities from Riggs NL,tional
Bank to National Uetropolitan Bank; that Clephane was to
take than; that she wished to be present but that Clephane
objected, saying it would be undignified;that she wanted an
armed messenger to go with Clephane; that Clephane said
this was not necessary, that if there were e.g. a "hold up"
we would make good.
She said she did not know to whom Clephane referred as "We".
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Federal Reserve Bank of St. Louis
Myer, Gertrude (Contld.)
She asked C.S.H.Is advice and C.S.H. said he could not advise
her as she had her own Counsel.
She asked C.S.H. That he would do if it were his own property.
C.S.H. said in such case he would prefer to be present at the
transfer and have also an armed messen,7er.
C.S.H. said that if Clenhane represented not her but merely the
National Uetropolitan Bank, it might be all right t_ let
Clenhane manage it as he saw fit, provided he gave a receint to
Riggs Bank in name of and as Attorney for the National Metropolitan
Bank.
She said the National netropolitan Bark did not want the Riggs
Bank to know it was taking over her securities.
Finally, Gertrude said she would call up Clephane.
Later she called up again and said she had talked with Clephane,
Ilho, she said, seemed quite indignant at her desire to be present
and to have an armed messenger.
She asked C.S.H. if it would be all rit if Clephane gave a receipt
to Riggs Bank,as agent of the National Met. Bank.
said he could not a"vise her, but finaliy added that he,
personally, would be satisfied if Clephane really represented
the National Met. Bank in giving the receipt.
She said she would call up the National Met. Bank in the morning
and ask whether Clephane represented it, and that if it said Yes
she would ask it to write her to that effect, and she would send
over at once for the letter before the transfer was made.
C.°.H. did not advise her but/elieves above was her best course.
In reply to Gertrude, C..H. said if it were his property he would
have it insured during the trantit.
She said Clephane said this would take too long a time.
C.S.H. can not understand Clephanels attitude, and ft-ars he does
not know all the facts.
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Federal Reserve Bank of St. Louis
4.1.V•
Myer, Gertrude (Contld.)
It seams to C.S.H. almost ridiculous to carry over these
securities, many of them coupon bonds, along through the
streets without a guard and without insurance.
If, however, he represented the National Met. Bank, Gertrude
at least would not be responsible for any loss, but it
would fall on the latter bank.
C.6.H. feels the U.S. Treasury would never send bonds across the
street without an armed guard.
C.S.H. feels Gertrude has shown great shrewdness in the attitude
she took in this matter.
Gertrude said that when Charles Norton turned over her Buffalo
property, he insisted on her being present and also an armed
guard.
Co60-1. feels that the only way Clephane
to Gertrude would be the fact that
National Met. Bank, - otherwise he
client - Gertrude l s - interests.
Anril 21,
could justify his statemants
he was representing the
was not protectine his
1932. 136, 137, 138, 139, 140.
Gertrude called C.b.H. up at 1:30 in great distress.
She said she gave Clephane yesterday an order on the Riggs Bank to
deliver to him all her secutities; that she regretted this
as she feared something mijlt happen; that she had seen the
trust officer of National Met. Bank who caid Clephane
represented her and not the latter Bank.
She told C.S.H. she wanted to be present at the transfer and wanted
insurance; that Clephane said this would be too expensive,
but if taken it must be in same com7any in which he was
interested.
She said she seriously thought ofnotifying Clephane that she had
revoked his authority, would insist on being °resent and
having a representative of National Metropolitan Bank present,
and having the transfer insured.
said she clearly had a legal right to do this.
She asked C.:D.H. what he thought Charles Norton would have done
under the circumstances.
C.S.H. said he thought Norton would have done just what Gertrude did.
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Federal Reserve Bank of St. Louis
.GG(j.
Myer, Gertrude (Contld.)
Later she called up C.S.H. and said she had telephoned
Clenhane that she had revozzei his authority; that he was
furious and said he would mail her the order she had given
April 22, 1932. 140, 141, 142.
him.
Gertrud3 called up C.S.H. and said he was going to see the
Trust officer of National Metropolitan Bank, and insist on
his being present whea the securities were transferred.
Anril 25, 1932..142.
Called up C.6.H. and said the securities were transferred
just as she wish.cyi, — that She met Clenhane and a
representative of the National Metronolitan Bank, — together
with an armed messenger and the securities were duly turned
over to the National Metropolitan Bank.
April 27, 1332. 170.
Calls on us.
Snoke about the transfer of her securities.
She said Rachel Hale had told her of Howland Chase's
appointment.
She said she supposed. C.6.H. arranged this.
C.S.H. said he was anointed on his merits.
May 2, 1932. 151.
C.S.H. called up Gertrude to see if she could see him and H.P.H
She asked us to drive with her.
We drive to Mt. Vernon.
She said she was going to keep Clephane as her lawyer and would
ask him to get from the National Metropolitan Bank a
statement as to the condition of her investments and what
its judgment was as to changes.
C..H. felt this was right.
May 11, 1932. 159.
Gertrude got in a fling at Rachel Hale, saying she would feel
that Howland Chase's appointment was a favor to the
Federal Reserve Board rather than a favor from it, .nd an
honor to the Board that Howland was willing to act as its
Assistant Counsel.
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Federal Reserve Bank of St. Louis
4.06.J.•
Myer, Gertrude (Contli.)
An extraordinary statement to make as to one of her closest friends,
and a future coisexecutor under her will-1
May 11, 1932. 160.
Lunches with -Is to meet Count John Bentenck and Baroness Van Hedkersen.
May 21, 1932. 167.
On C.S.H. damDlaint that Chief Examiner Paulger s ould be brought
back to work of Pederal Reserve Board; Morrill said he was
considering it.
June 9, 1932. 198.
We attend unveiling of stone monument in memory of Gen. Myer, presented
to Fort Myer by Gertrude.
Later, Gertrude said she told the officer in charge not to invite
her nenhew; that he deaanded tickets altho the officer told
him he was not expectel; that he came but was given a back
seat.
C.S.H. and H.P.H. sat between Mrs. Woodrow Wilson and Mrs. Williams
(Constance Lodge).
June 2,1932. 187, 188.
See — Williams, Mrs.
Wilson, Mrs. Woodrow
110..
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Federal Reserve Bank of St. Louis
222.
National Bank of Austria
Board approves renewal of.
Jan. 8, 1932. 39.
See — Austria
National Bank of Hungary
Shotwell and Norman Davis told Carnegie trustees that, carried
as assets gold pledged with B.I.S. Which .the B.I.S. should
not have taken.
Dec. 14, 1931. 13.
Board approves extension of credit for.
Jan.8, 1932. 39.
See — Humf- ary
National City Bank, N. Y. 158.
See — Glass
Lehman, Solicitor General.
National Metropolitan Bank, Washington
137 to 142, 150, 159.
See — Myer, Gertrude
Nevins, Prof.
C.S.H. tells Mrs. Wilson that he gave, a coy of Henry White's
letter to C.S.H. praising Mrs. Wilson; that Nevins said
he was delighted as he wanted such an expression of ooinion
for his book; that he did not out it in his book;that he
would ask him to emolain.
June 2, 1932. 188.
(Later, Nevins wrote he had cut down his book and therefore
could not use it.)
New Bedford Institution for Savings
E.A. McGowan, Treasurer
186.
New procedure, Federal Res2rve Board.
Wyatt said Gov. Meyer has instituted a new proceLure; that all
requests for opinions now came from Floyd Harrison or
Morrill; that he now goes over all letters, whether or not
involving legal questions, and checks Cam, as also Harrison
and Morrill, before thqy co to Gov. Meyer.
Dec. 22, 1931. 28.
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Federal Reserve Bank of St. Louis
New Year's reception, White House 1932.
None of Board, except C.S.H. wantea to co.
C.S.H. went.
Jan. 1, 1932. 33, 35.
New York
We go to N.Y. to attend Carnegie meetin,,J.
May 4, 1932. 151.
New York District Connittee
See — District Committees
Federal Reserve District Con:iittees
New York Journal of lammerce
Gov. Harrisan mid the, published our Reserve Coralittee report
before any other papers; that he believed Willis got it
from Glass and betrayed his confidence.
Gov. Meyer said the Wall St. Journal did the same, and that
its correspondent told him he had in his possession data
concerning the report before it had been qut in rint.
Dec. 2, 1931. 1-.B.
Publishes in its first edition the contents of Glass Sub—
Committee report.
C.S.H. could not get a copy until late that afternoon.
Jan. 22, 1932. 47.
States that Federal Reserve Board renort on Mass bill will be
in hands of Sub—Canulttee this A.M.; that Glass will hold
up action on it until the administration official presents
its obitctions to the bill.
Feb. 8, 1932. 57.
New York Times
Eulogized Gov. Aarrison for splendid work in inducing N.Y.
bankers to accept the "stand still" agreement, as to
which Dulles said, they were fooled by the British.
Dec. 11, 1931. 8.
Glass says 1.1cAdoo pleaded with Noyes, financial editor of,
to favor his central bank bill.
Dec. 16, 1931. 20.
Gives account of White House agreement as to Glass emergency bill.
Feb. 11, 1932. 65.
Also states that after the White House conference there was one
in the Treasury between Glass, Burgess et al.
Not a member was invited..
Feb. 11, 1932. 65.
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Federal Reserve Bank of St. Louis
New York Times (Cont'd.)
Publishes letter of C.S.H. on World Court, anittinj certain
parts, but nothing very material.
April 2, 1932. 113.
Says Gov. Harrison is trying to secure a promise from Bank of
Prance to make no further withdrawal of its denosits so
that our banks can expand on -hem.
Wall St. Journal makes same statement.
Gov. Harrison absolutely denies.
May 7, 193'.
See - Gov. Harrison.
Says Gov. Harrison has formed a banking and industrial CommitteeFederal Reserve District Committee - under Owen D. Young.
May 20, 1932. 165.
See - Harrison, Gov.
Newlands, Mrs.
We dine with.
Mar. 13, 1932. 91.
Attends our lunch to Count John Bentinek and Baroness Van Hedkelen
May 21, 1932. 167.
Noell, Mr.
See - Can ,unity Chest.
Norman, Gov. Bank of England.
146,147, 150.
See - Harrison, Gov.
Norris, Gov. P.R. Bank, Phila.
Says only 5 of the P.R. banks can participate in open market
Dec. 2, 1931. 1.
nurchases.
Says vote of open market Committee means that the Governors
believe the Y. Y. banks should increase rediscounts and
that the Conference did not want to help them still further
increase their great liquidity by the -purchase of Governim
ment securities, and that their consent to buying 300 millions
was in order to meet sudden emergencies.
Gov. Norris said only 8 of the P.R. banks could participate, and
that the views expressed above, certainly represented the
views at Philadelhia and Ihicago.
Dec. 2, 1931. 1, 1-A.
•MI
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Federal Reserve Bank of St. Louis
C./C-4.1 •
O'Brien, Robert Lincoln
Dines with us at Woman's National Democratic Club.
M, r. 18, 1932. 97.
We dine with Mr. & Mrs.
April 7, 1962. 118.
Open market
See- Zarning policy
Governors Conference
()pen market policy
Open market clause
e in Glass Sub-counittee bill somewhat
Board agrees on chan,
along lines of Aillerls draft.
Mar. 27, 1932. 109
Open market Conference
See - Governors Lonference
Open market operations, Policy
67, 68, 124, 125, 145, 146, 147, 148, 149, 150, 161, 162, 174,
175, 193,196, 197.
Open market regulations
C.S.H. thinks Miller wrote draft of, for Glass bill.
Jan. 28, 1932. 50.
Oxford groiip
Baroness Van Hedkeren and Mr. Van Lennert of the Oxford Group
called.
In the evening we went out with Miss Hegerman to Shoreham Hotel to
attend a meeting of.
C.6.H. was impressed with the fervor and anparent sincerity of
May 18, 1932. 164.
the Grou:o.
We had at lunch Count Bentenck and Baroness Van Heckeren at
Waman's National Democratic Club.
Present: Count Bentendk, Baroness Van Hedkeren, Mr. & Mrs. Delano,
Mrs. Newlands, Mrs. Fraxer, Gertrude Myer and Miss Hegerman.
May 21, 1932. 178.
C.S.H. tells Mrs. Alexand r Rodgers the main thought of Oxford
Group was breaking down "barriers". a Democratic form of
religion which in the main appealed to him.
May 23, 1932. 173.
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Federal Reserve Bank of St. Louis
palmer, Attorney General
Glass said that, suppressed the memorandum of Solicitor General
Lehman holding that national bank security affiliates were
illegal.
C.S.H.'s diary, however, showed that Palmer told Houston he would
send him this memorandum or give him an ()Anion if he asked for it.
May 11, 1932. 157.
Pan American Conference
Under Secretary Castle's claim for a new Hoover doctrine - nonrecognition of territory seized by forcer, was ridiculed at
Carnegie meeting.
This doctrine was first enunciated by Cleveland in his Harvarian
message, and, later, by the first Pan American conference, at
least as to South America, the American Institute of International
Law. In 1926 at the Pan American meeting, at which Carnegie
was a delegate,this doctrine was sent out to all American
May 5, 1932. 152.
Republics.
Paris Peace Conference
See - Houghton
Paris nress
1-B, 43.
See - Willis, H. P.
Parker, Gen.
We meet, at luncheon with Gertrude Myer.
Feb. 28, 1932. 84.
Patten, Josenhine
Dines with us at Woman's National Democratic Club.
Jan. 22, 1932. 47.
Paulger, Leo H.
Gov. Heyer announces selection of,as Chief Examiner of Federal
Reserve Board.
He said he had a wondt'rful record in War Finance Corporation.
Gov. Meyer had told Board he was looking for a good man but
never mentioned his name to O.S.H. until now.
He did not ask:Board's consent; he merely announced his choice&
Jan. 7, 193 38.
paulger after appointment Pave all his time to Reconstruction
Finance Cor)oration. C.S.H. has been ?Teatly disturbed about this,
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Federal Reserve Bank of St. Louis
Paulger, Leo H. (COntld.)
Oily the other day the Board added to the Federal Reserve
examiners because of the heavy v,ork of the Examination
Division.
Some time ago Board gave Paulger a furlough to workfor
Reconstruction Finance Corporation.
C.S.H. noted on the letter that Paulger should be brought
back or should at least give 1/2 of his time to the Board.
Morrill said he h. d this under consideration.
June 9, 1932. 197, 198.
Peace Oonference, Paris
See - Houghton
Pennington, Mrs. Louis
Sends C.S.H. as Trsutee of Woman's National Democratic Club
a check for 190, being one-half of royalties on sale of
the Wilson Chronology for 1931.
C.S.H. indorsed it and sent it to the Treasurer,
Wheeler.
June 3• 1932. 192
rs. Burton
Perrin, John, Ex-Chairman P.R. Bank, San Francisco
Calls on us.
Dec. 24, 1931. 31.
Has ahristmas dinner with Miller.
Dec. 25, 1931. 32.
Dies suddenly at Hotel Washington.
Dec. 27, 1931. 32.
Peruvian Ambassador.
We meet, at luncheon :,ith Gertrude Myer.
Feb. 28, 1932. 84.
Peters, Andrew
Calls on C.S.H. at Treasury but C.S.H. was at meeting.
0.6.H. calls him and asks him to call at Hay-Adams tomorrow.
Dec. 5, 1931. 4.
Calls on us at Hay-Adams House.
C.S.H. expressed sympathy with him. He said there was nothing
in the scandalous statements about himself.
C.S.H. told him he would back him up as a friend.
He said he lunahed yesterday with the Delanos.
Dec. 6, 1931. 4.
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Federal Reserve Bank of St. Louis
404,C).
Peters, Andrew (Contld.)
doubt that, was
James E. McConnell told C.5.H. there was no
the Boston
guilty of many of the charges against him; that
were
but
Herald and Post had the entire story set un,
brought
,ure
nress
persuaded not to do this, because of great
71.
Feb. 13, 1932.
on them.
Platt, Zdmund
d Hale and said
Calls on C.SH. Spoke very pleasantly about Donal
l Hale.
Rache
that Mrs. Platt was once in school with
Mrs. Platt was Miss Innes of Poughkeensie, N.Y.
Dec. 8, 1931.5.
Bank, N. Y.
Speaks of rumor as to condition of Chase National
6.
Dec. 10, 1931.
be given a
Says Cong. Robert Luce told him that Glass would
if not done,
and
week to straighten out his banking bill,
.
the matter ould be taenout of his hands
Feb. 3, 1932. 54.
of new draff of
Tells C.S.H. he has seen a confidential abstract
e or any of the
nubil
the
e
Sub-comaittee banking bill, befor
118.
1932.
7,
April
Board has seen it.
Poland
dor was entirely
Shotwel.L said a comnramise as to the Polish corri
and Poland.
any
C+erm
both
possible - one satisfactory to
14.
1931.
14,
Dec.
See - Dulles, John Foster
Policy
See - 0.2en market policy, Operations
Policy, Treasury. 145.
See - Mills, Ogden
Polish Ambassador
Gives lunch to Mrs. Wilson
Decorates her.
See - Wilson, Mrs.
Polish corridor
See su;)rz-i - Poland
Dec. ic, 1931 17.
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Federal Reserve Bank of St. Louis
Political credits
ll
American banker in "Standsti
Dulles said British outwitted
al
son
sea
n
tai
ence for cer
Agreement" by getting a prefer
dits"
cre
l
ica
lit
credits, - called "po
rec. 11, 1931. 8.
Politics
to ask France
Gov. Meyer and Ogden Mills
C.S.H. believes the desire of
purely political move of the
to remove her deposits is a
of her
anger towards France because
Administration, engendered by
Allied debts, tariff, etc.
attitude towards reparations,
Jan. 19, 1932. 45, 46.
Glass
the t4ministration as to the
C.S.H. believes Glass distrusts
ieves it is playinp• Republican
emergency bill, because he bel
Pei 12, 1932. 70.
politics.
he
Ambassador to Turkey was told
Admiral Bristol who wanted to be
gn
ised. $250,000 to National Camnai
must oubid Sherrill 7:1ohad prom
Committee, to get this job.
Mar. 9, 1932. 91
authority for statement that
Lightenstein gave C.S.H. as his
1927
erse its easy money policy of
Federal Reserve Board did not rev
of
on
cti
mind the Presidential ele
early enough because it had in
1926:
cago told him that President
1. A financial re2orter in Chi
passed the word
Coolidge in the simmer of 1928
t be made easier in
along that credit and money mus
ction.
order to carry the Presidential ele
d him that the Federal
2. Prof. Bullock of Harvard, tol
eht an unreasonably
Reserve Bank of New York had bou
l of 1926, prior
large amount of acceptances in Fal
to the elections.
May 21, 1932. 171.
See - Lichtenstein
at White
ence of Republican Senators
Gov. Harrison attended a confer
May 30, 1932. 162.
House.
spending
heard that Gov. Harrison vas
Ogden Mills explains that Hoover
the
to
asked him tocame
weekend with Admiral Grayson, and
ditionet
con
ess
4hite House to discuss "busin
182.
2.
193
30,
May
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Federal Reserve Bank of St. Louis
Politics (Contld.)
Miller says Gov. Meyer is much disturbed over Lichtenstein's
charges of politics, as he fears similar charge will be brought
against Boai for its easy money open market policy.
June 4, 1932. 193.
C.S.H. believes that Gov. Meyer is playing nolitics to be made
Secretary of Treasury.
Apparently insnired articles are apparing in Press praising Gov.Meyer,
e.g. Sundt,y- pipers, I think Times.
June 4, 1932. 193.
C.b.H. believes Ogden Mills is working for nomination as Vice President.
June 4, 1932. 193.
Pomerene, Mrs. Atlee
We lunch with, at Hay—Adms House.
Feb. 21, 1932. 79.
Pool, Bond
See— Bond pool
Pound, Roscoe, Harvard Law School
Indorses Howland Chase's record in Harvard Law School.
April 26, 1932. 143.
Wires C.S.H.
Power to refuse rediscounts
See — Discounts, Refusal of
Glass
Glass banking bill
Refusal of rediscounts
Sec. 3, Glass bill.
Precedence
Mr. & Mrs. George B. McClellan ives precedence at dinner to
Hornbeck, Chief of Division in State Department, over C.S.H.
Jan. 31, 1962. 52.
Prediction of C.S.H.
That Gov. Harrison will ask for his-her discount rates to check outflow
of Fold.
Aril 29, 1932. 150.
Preferential discount rate.
Mills sucests, for paper secured by Goverment securities to help
banks absorb them.
Jan. 11, 1932. 41 (2)
Presidential election,1928. 171, 174, 193.
See — Lichtenstein
Politics
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Federal Reserve Bank of St. Louis
601.
Price stabilization
Gov. Harrison tells Coin .i.ttee that in 1926 and 1929 commodity
prices were falling and security prices surr,ing unward.; that
under the theory of the once stabiltation bill, had it been
in effect, it would have been his d'ity to make money easy
for business altho so doing woula pour fire on the speculative
security craze.
May 10, 1932. 154, 155.
Prices
Gov. Harrison points out that, generally run. along with bank credit;
that if latter not increased nrices would surely fall to locr
fr.
Feb. 24, 193
levels.
See supra — Price stabilization
Primary
Miller in draft accepts C.S.H. addition that the "primary" purpose
of Federal Reserve ct is to accommodate busineBs, etc.
Feb. 10, 1932. 63.
Procedure, New.
Under Gov. Meyer's, all letters, whether involving legal matters
or not, are checked by Wyatt.
Dec. 22, 1931. 26.
Protocol Division, State Dept.
Informs Morrill that Heads and Denuty Heads of Boards, commissions,
etc. are addressed as Honorable, all others as Esouire.
This degrades Board to level of a De:t. of Treasury.
Feb. 2, 1932. 53, 65, 66.
Letters addressed to Board members as Esquire by State and other
Feb. 17. To 0.5.H. 77.
Depts.
See also — isquire
TItle
Public hearings 95.
See — Glass bill.
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Federal Reserve Bank of St. Louis
imipoo.DIMPem140
-B,-
Raichle case - U.S. Circuit Court of Appeals
Dictum that Federal reserve ban.ks in their discretion may
refuse rediscounts.
Mir. 22, 1932. 104.
Railroad wages
Gov. Harrison says if rate and, question not speedily settled,
the decline in bonds will continue and many more banks will
Dec. 2, 1931. 1-A.
become insolvent.
Gov. Harrison favored further large nurchases of Govt. securities
only if necessary following the correction of the, situation.
Jan. 11, 1932. 41 (2).
Raskob
James McConnell says, wants defeat of Gov. Roosevelt.
Feb. 13, 1932. 71.
Real estate loans
Willis's dr,Aft of agreement between Glass and Walcott retained
the provision for revaluation by Comptroller of.
Mar. 14, 1932. 92.
Reception to Congress
Hoover invites us to, but sends tickets only to East door. Harding
and Coolidge always sent us tickets to diplomatic door.
We did not attend.
Jan. 21, 193
46.
Reconstruction Finance Act. Corporation.
Glass told C.S.H. that Gov. Meyer was urL:ing him to ,:gree that
debentures of his proposed Reconstruction Finance Corporation
should be eligible as collateral for member bank 15-day
collateral notes; t,aat Gov. Meyer same tine ago told him he
was absolutely on?osed to this.
Dec. 16, 1931. 19.
Wyatt gave C.S.H. a cony of H.R. 5060 cre,iting the Reconstruction
Finance Corporation.
This bill -provided that its debentures were eligible as collateral
for member bank collateral notes and customers notes.
Wyatt said it gave the same privilegesas were „riven to d-bentl.lres
under War Finance Corporation Act and even grqater power,-
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ReconstrutIon Finance Act.
Corooration (Contld.)
its debentures
the right of Federal Reserve banks to purchase
n.
which was not given to War Finance Cornoratio
Wyatt said he saw no reason for objecting to this.
Dec. 17, 1931. 21, 22.
of strictest secrecy. Dec. 17,1931.;
Irrew, for Gov. Meyer, under injunction
looked as if everything
Ilass exnressed deep disannroval of, saying it
h regardless of
throug
out
the administration wanted would be
m.
its effect on the FederA. Reserve Syste
a greater one
said the bill might do some good in this c.risisbly would do
proba
it
event
any
In
than the war crisis, and that
tt
see
to
want
not
did
he
no harm, although onprinciple
ep:es
nrivil
the
i.e.
m,
Syste
engrafted permanently on the F.R.
given to its debentures.
tures into the
Glass said it would inject a billion dollars of deben
P.R. System.
such debentures
C.S.H. explained that discounts of advanes against
no bank would use
fore,
there
that,
and
would carry a higher rate
paper at a lower
other
offer
could
it
as
their debentures as 1on6.
25.
24,
1931.
18,
Dec.
rate.
e Senate Committee
Gov. Meyer, Morrill, and Floyd Harrison went befor
on this Act.
Gov. Meyer never mentioned this to Board.
Dec. 19, 1931. 25.
testifying
C.S.H. met Gov. Harrison Who had, he said, just been
before the Senate Committee.
y clause as to
Gov. Harrison said Glass would fight the eligibilit
prefer merely
would
and
Glass
with
d
debentures, and that he agree
encies.
emerg
in
tures
deben
these
giving the power to purchase
This will stagger Gov. Meyer/
Dec. 19, 1931. 25, 26.
him before
Wyatt said Gov. Meyer had never asked him to go with
bill.
this
to
d
regar
with
either Committee of Congress
Dec. 22, 1931. 28.
this Act shows
Gov. Meyer's printed testimony before Committee on
, giving distinctly
Board
F.R.
the
of
nor
Gover
that he appraved it as
Board, which
the Impression that he was presenting the views of the
he had never even consulted),
Jan. 4, 1932. 36.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
234.
Recanstructim Finance Act.
Corporation (Contld)
Committ.e whether
Wyatt said Gov. Meyer was asked by some of the
of the Board,
views
the
d
sente
his su:Lpoort of the bill renre
Board, and
and that he replied that he was Governor of the
apneared in favor of the built
The Board has never passed ixoon itl
Jan. 9, 1932. 40.
this Act and an
Gov. Harrison told Governor's Conference that if
d F.H. not,143
amendment as to substituting bonds for gold behin
that the
were passed quickly there was a very fair chance
tide of industrial depression would be tamed.
Jan. 11, 1932. 41.
in order to
The Governors passed a resolution unRnimously that
ration, the
expedite the formation and operation of the Corpo
ces of the
assistance of the operating facilities and servi
understanding
F.L-L. banks should be given to the Cornoration on the
their
for
that the Corporation should reimburse the F.R. banks
services in such manner as may be agreed won.
Jan. 11, 1932. 41 (2)
, N.Y.
While the H.R. was considering the Act, LaGuardia, Republizan
P.R.
the
of
moved to strike out the clause making the Governor
nt
viole
a
Board an ex.officio member. This was accompanied by
to 13.A
131
of
attack on Gov. Meyer. It was defeated only by a vote
Jan. 15, 1932. 42.
, pointing
Gov. Meyer read a cable from Gov. Harrison to Gov. Moret
the
out that the Board's discount and acceptance policy and
y an
merel
Reconstruction Finance Act were not inflationary but
tions.
condi
attempt to ston radical deflation and restore normal
Jan. 19, 1932. 43.
it his duty
Gov. Meyer told the Governors Conference that he had felt
as Governor of the P.R. Board to tell President Hoover and
Finance Act
the Con,7ressional Committees that the Reconstruction
was wise and necessary.
Gov. Meyer never told the Board of this until long after it had
occurred.
Feb. 24, 1932. 80.
angry when
Emily Newell Blair told H.P.H. that Gov. Meyer was very
tened to
threa
Dawes was made Presidamt of the Comaration and
.
Board
resign both from the Corporation and from the F.R.
Mar. 1, 1932. 84.
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Federal Reserve Bank of St. Louis
Reconstruction Finance Act.
Cornoration (Contld.)
Camaerce
Gov. Meyer told Board of the onnosition of the Int.
Missouri
the
to
ation
Camaission to a loan by the corpor
112.
1932.
2,
April
Pacific R.R.
See — Meyer, Gov.
he can give little
Gov. Meyer is so preoccupied with affairs of, that
or no time to P.R. problems.
May 21, 1932. 167.
!
May 23, 1932. 173
Meyer rushed off
The Board had many problems to consider, but Gov.
his heart really
where
tion
Corpora
e
to the Reconstruction Financ
179.
1932.
May 26,
is.
the Corporation,
Miller said Gov. Meyer loved money lending as done by
matters.
F.R.
in
t
interes
d
langui
a
but had no time and only
184.
1932.
31,
May
e, rumor
Dawes has resigned as President of the Corporation, becaus
Meyer.
Gov.
with
says, of differences
June?, 1932. 194.
Rediscount, Refusal to
3, 11, 13, 17, 22, 56, 58, 59, 68, 72, 73. 75, 76, 89.
See — Discounts
Glass
Sec. 3.
Reduction of salaries. 163
See — Economy bill
Salaries
Regulations
ncy
Gov. Harrison favored a, that P.R. banks could qrant emerge
surplus
banks
F.H.
of
say
100%
tage,
nercen
n
loans up to a certai
Board did not favor this.
Feb. 24, 1932. 80.
banks
Board decided to send a letter to P.R. banks to be sent to member
ncy
loans.
emerge
to
as
tim
in lieu of a regula
Mar. 9, 1932. 90.
Reorganization of Departments.
Hoover has asked authority for, — his plan called for 4 or 5 more
assistant secretarie7, and under it, C.S.H. believes he could
transfer the P.R. Board functions to Sec. of Treasury.
The Democrats will fight this.
Feb. 22, 1932. 79, 80.
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Federal Reserve Bank of St. Louis
236.
Reparations
C.S.H. believes .ills an Meyer want to force France to
withdraw its deposits and put an end to its corresnondent
relations, because of anger groWingout of Trance's
Attitude towards reparations, etc.
Jan. 19, 1932. 45, 46.
ReoUblicans
If Glass has any political sagacity he will dare the, to defeat
his banking bill.
Mar. 31, 1932. 111.
See — Politics
Required reserves
Glass told Miller that Hoover wanted Board to
and Miller agree that this might cause a
de,
?ositors and might force suspension of
Feb. 10, 1932.
lower, C.S.H.
run by foreign
gold payments.
63.
Reserve Committee report.
The Reserve Committee asked from Governors Conference further
time for comneting its report.
Dec. 1, 1931. 1.
Gov. Harrison complained that N. Y. Jlurnal
Commerce published
the, before any other paper and. bore the report was released
by the Senate Committee; he said he believed Willis Fot it
from Glass and gave it out in violation of good. faith.
Gov. Meyer said the Wall St. Journal also published it, -..nd that
its correspondent told him he had in his possession data
revealing the contents of the report before even it had been
put into print.
Dec. 2, 1931. 1—B.
Board agreed that Riefler should continue to be naid $7000 salary
given him for work done for Reserve Committee.
Dec. 11, 1931. 12.
Glass intimated to Morrill that he should drop from his bill
the reserve provisions framed by Reserve Committee.
April 6, 1932. 117.
Reserve requirements, Lowering of. 63
See sunra — Required reserves.
Reserves
Wyatt says Willis' draft
1-1, contained a "jokers!
Mar. 14, 1932. 93.
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Federal Reserve Bank of St. Louis
Resignation
Papers announce, of Sec. Mellon.
Feb. 3, 1 932. 54.
Dawes resigns as President of Reconstruction Finance Cornoration.
June 7, 1932, 194
Boston Transcrint says, of Dawes came about by friction :ith
Gov. Meyer who was more conservative than Dawes wished to be.
June 7, 1932. 198.
Resolution
C.S.H. introduces a, oiling for a credit survey by NIch F.. bank.
Gov. Meyer objected to word 'survey'
Finally a comnramise was adopted asking each F.R. bank to form
a F.R. District Com,ittee.
May 23, 1932. 168.
Reynolds, James
Weme.t, at dlnner with Robert Lincoln O'Brien.
April 7, 1932. 118.
Rhinelander, Bishop
Told
he was much disturbed at the veiled references to
imnending disaster in Hoover's addres: to Senate EvIvocating
the sales tax.
June 9, 1932. 198.
Richmond, Dr. & Mrs. C. A.
We dined with, to meet Mrs.Byrd (4sie Bowditch) and daughter.
Mar. 5, 193:). 87.
Riefler. 12
See — Reserve Committee.
Riszs National Bank.
136, 138, 141, 142, 150.
See — Myer, Gertrude.
Ritchie, Gov.
Rowland Morris thinks Gov. Smith prefers, to Gov.Roosevelt.
Dec. 14, 1931. 16.
We meet, at sun:er at Mrs. Borden Harriman's.
Feb.7, 1932. 55.
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Federal Reserve Bank of St. Louis
238.
Rodgers, Col. Alexander
C.S.H. meets, while callinp. on Rachel Hale.
Jan. 5, 1932. 36.
Roigers, Mrs. Alexander
We call on.
She said Rachel Hale went to N. Y. to send. Christmas with
Mary, but she had at once to ‘7o to bed.
She said she was orried about Rachel; that the experts in Baltimore
could find nothing wrong about her but ordered her to bed for a
Dec. 29, 1932. 32.
rest.
Ge:truLe Myer told H.P.H. that Howland Chase had gone abroad with,
in connection with the elopement in Rome of her grand-daughter,
Miss Rodgers.
Anril 6, 1932. 117.
Calls on us.
We talk over the Oxford movement.
May 2, 1932. 173.
C.S.H. writes, as to the sermon preached by her rector an theIAndberji
baby murder, which, he said, H.P.H. had given to Baroness Van
Hedkeren, and tells her that the removal of "barriers" was the
main thought of tle Oxford group, and mks for more co-pies.
May 23, 1932. 173.
H.P.H. meets, and she says Rachel Hale moved yesterday to His Lordship's Kindness.
May 26, 1932. 181.
Rogers, Mrs. Congressman
Dines with us at Woman's National Dem. Club..
Mar. 18, 1932. 97.
Roosevelt, Gov.
Rowland Morris told C.S.H. that Gal. Smith told a friend of his
that, had not consulted him on a single important matter, andthat Gov. Smith, who had been betrayed by Tanmany, was very
angry with Gov. R. because of his ap.oarent desire to please
Tararriany.
Dec. 14, 1931. 1.
Morris said there was undoubtedly a split between Gov. Smith and;
that Gov.Smith preferred Baker or Ritchie to Gov. R.
Dec. 14, 1931. 16.
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Federal Reserve Bank of St. Louis
26%
Roos velt, Gov. (Contid.)
The best opinion is that Gov. B. killed his chances by coming out
against the League of Nations. C.S.H. is disgusted with him.
Feb. 7, 193:. 55.0
Bob Woolley called on C.S.H.
He said he knelt! that Gov. R. arranged to have Hearst call h1r. on
long distance teleohone and that they had a conference together,
and that out of this ?ame Gov. Ills repudiation of the L. of N.
Woolley aid he felt that Gov. R. had demonstrated that he was not
the man he thought he was.
Feb. 8, 1932. 57.
a terrific letter he haa sent Gov. R. on his
Woolley read to
attack on L. of N.
Feb. 8, 1932, 57.
James :4. McConnell said he knew Gov. Smith did not expect ot want
to be nominated, but that he and Raskob wanted to defeat
Gov. R.; that Gov. Smith hated the South because of its
religious bigotry and hated Gov' R. because he was currying
favor with the South.
Peb. 13, 1932. 71
Roosevelt, Mrs. Theodore
tea at the Roosevelt home in N.Y. -there she went
Bertie meets,
with Bessie Stevens.
Dec. 14, 1931. 17.
Rouncls, P.R. Bank, N. Y.
Gov. Meyer says, is only officer in F.R. Bank of N.Y. with any
practical ban'-:in7 experience.
Mar. 3, 1932. 85.
Royalties, Wilson Chronology
Mrs. Pennington sends C.S.H. a check for 18 cents, being 1/2 of
royalties received for sale o-P Wilson chronolo7 durin:7 1931.
0.6.H. indorsed it to :II's. Burton Wheeler, the Treasurer of the
Woman's National D. Club.
Jan. 3, 1932. 1.92.
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Federal Reserve Bank of St. Louis
Ruffin, Dr. Sterlinc
C.S.H. calls on, at
aarfield. hospital.
Mar. 12, 1932. 91.
1.0.••••••••••••••0
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Federal Reserve Bank of St. Louis
iCo‘t.1.•
..S..
Sae, Dean
We dine Tith Mr. & Mrs., in 7. Y.
Dec. 14, 1931. 17.
Sailer, Dept. Gov. F.R. Bank, N. Y.
Gov. Meyer s9eaks contemptuously of.
Mar. 3, 1932. 66.
Salary increa es.
Board decides to a-yorove no, in its staff for next year.
There were one or two very meritorious cases, but Gov. Meyer
objected, althou& he had insisted on higher salaries
for Floyd Harrison and Morrill.
Bo-rd agreed that Riefler should continue to receive extra
compensation for work an Reserve Canaittee.
Dec. 11, 1931. 1.").
See - Harrison, Floyd
Morrill
Meyer, Gov.
Sal:,ry reductions
The Governors unanimously ap -)osed surcestion of Mr. CoL:Thr, of
Federal Re:erve Bank of Richmond for.
Dec. 2, 1931. 3.
At Governors Cpnference a discussion was had as to, Boston, N.Y.
San Francisco said their directors would in all nrobability
reduce salaries.
All the Governors, however, felt that this should be nostnoned
until the end of the year.
May 17, 1932. 163.
C.S.H. writes Glass as to reduction of Board's salty in
economy bill, which, as nassed by H.R. reduce.i salaries
nermanently to $10,00 and then anAied v. cut of 8-1/3%.
Glass said he 77ould atten, to this.
June 2, 1932. 187.
Glass nuts in an amendment to economy bill relovinc fram
salary cuts, all officials and staff not •,,aid by Govenuaent.
June 3, 1932. 191.
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Federal Reserve Bank of St. Louis
%d 42.
1
Salary reductions (Contld.)
Above anendmant adootecl by Sem,.te.
June 4, 1932. 192.
Senate passes economy bill striking out all calary cuts and
substituting an enforoed furlough.
June 8, 193. 197.
Wyatt believe the Glass ameniment which remained in Senate bill
will release Bord and staff from salary cut.
June 9, 1932. 197.
Ma,eee
aid Gov. Meyer annroved of O.S.H.'s efrorts to prevrnt
June 9, 192. 198.
salary cuts.
See - Economy bill
Glass
Hamlin, C.S.
Sales tax.
Bishon Rhinelander was very much disturbed at Hoover's veiled
intimations of trouble in his address to Senate Jdvocating
June 9, 192. 198.
the.
Sanger, Mr. & Mrs. (Marion Child)
We dine with Mr. & Mrs. James to meet.
1 .
Dec. 16, 1931. .0
We have,as e:uests at dinner at Womanls Natl. Democrtic
Feb. 32, 193-. 69, 70.
Sandals. 91.
See - Bristol, Acil:Aral
Graef, Olyve
Moore, Mrs. Ballard
Sherrill, Charles
Seay, Gov. P.R. Bank, Richmond.
Agrees with Gov. McDougal that system should F7radum1ly dispose
Of Govt. securities bou,7ht under onen market policy.
Jan. 11, 1932. 41 (2)
Asks C..H. V his suggestion that F.R. banks should be riven
power to buy commercial paper in onen market only frar.
, ,enerally.
banks or from the nubile .
O.S.H. said the latter, which was originally in the F.. Act; that
he would also favor giving power to F.R. banks, in
emergencies, to buy taper from member banks witht their
Aril 12, 1932. 123.
indorsement.
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Federal Reserve Bank of St. Louis
Secrecy
bill in absolute.
Morrill drew Reconstruction Finance Coreoretion
Dec. 17, 1931. 22.
Secretary of Treasury
Democrats won
Sara Carey told C.S.H. she had heard that if the
Probably she
the larsidential election, C.S.H. rould be.
g.
got this from her father, - Sen. Carey of Wyomin
Dec. 23, 1931. 31.
Sec. Mellon resigns.
Peb. 4, 1932. 54.
the Treasury
Bcr,rd discussed question whether the Secretary of
banking bill.
should be draneed from the P.R. Board as ner Glass
he thought it
Ogden Mills said, personally he did not care, but
advisable to retain him on Board.
on stabilization
C.S.H. said he s o testified la_ fore H.R. Cannittee
l.
remova
so, while Miller favored his
bill two years
Board, but
Mills said he would not object to retaining him on
without a vote.
This seemed to irk)ress Miller.
Mar. 26, 1932. 107, 108.
See - Mills, Ogden.
66, 193, etc.
Section 3, Glass bill.
63, 75, 105, 111, 120, 121, 132.
See - Glass bill
Section 10-A and 10-B, Glass emergency lo'.11.
See - Glass emergency bill.
54, 84.
Section 14, P.R. Act.
P.R. Act, did
Board 7.Tites Glass that Board's draft of Se. 14,
discount
not interfere with power of F.R. banks to initiate
Aril 6, 1932. 116.
rates.
Security affiliates
bill
O.S.H. at Board meeting favored the nrovision of Glass
years.
3
providing for divorce of all affiliates within
The Boar-1 s Committee had opposed this.
Later Miller a7reed with C.S.H.
Finally, the Board instructed its Oon.ittee to nrepare a draft
.erovidin: for divorce of certain affiliates named.
Mar. 27, 1932. 109.
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Federal Reserve Bank of St. Louis
44•
Security affiliates (Contld.)
help him draw a draft of
Morrill said Glass sent for him to
g holding companies,
divorce of affiliates, but exemptin
and subsidiary affiliates.
and confining the divorce to sister
April 5, 1932. 114.
Security Storage Co., Washington.
the Museum, in connection with
Took portrait of Rembrandt Peale to
for $2,500.
the Washington bicentennial, insured
14b. 11, 1932. 69.
Senate, U.S. 114.
See.U.S. Senate.
Servants wages, Mattapoisett.
this summer at $48 per month.
Alice Hanley agreed to cook for vs
Last year we gave her $90.
June 3, 1932. 192.
Sheridan, Mrs.
We call on.
Dec. 27, 1931. 32.
Sherrill, Charles, Amb.
she recently called on
Mrs. Ballard Moore (Olive Graaf) said
the Admiral wanted to
the wife of Admiral Bristol who said
ady been Commissioner,
be Ambasspdor to Turkey, - he had alre
ing him finally said
but that a Senator Who had been push
higher than $250,000,
he had no chance unless he could go
Charles Sherrill to the
which, he said, was the sum paid by
national campaign.
was generally known and
Nancy Warren told Bertie above payment
on all winter to s cure
that Sherrill had been in Washingt
Mar. 9, 1932. 91.
the job.
Shotwe41,7 J. T. 13, 14.
'See - Carnegie Zndowment
Davig, Norman.
H. C.
Sideboard, Mattapoisett
alentine & Co. Richmond,and the
to/V
of,
ure
C.S.H. sent pict
firm replie:i:
of a very fine
"The photograjh shows the picture
conditions, it
al
norm
Sheraton side board, and, under
worth now, the
are
ques
is quite expensive, but, as anti
t know."
doub
no
price has greatly shrunk, - as you
Dec. 23, 1931. 29.
•
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Federal Reserve Bank of St. Louis
444.)•
ago
Sideboard, Mattapoisett (Contsd.)
that Koopman of Boston years
C.S.H. had told Valentine& Co.
be
ht
mig
he
but that
bad valued the sideboard at $2500,
00.
$20
willing to sell it for
. 29, 1931. replied that no
Valentine & Co. under date of Dec
ago, but, under present
doubt it was worth $2500 years
ossible to obtain a
conditions it would almost be imp
v ir probably would not
reasonable price, and that toda
Dec. 29, 1931. 34.
sell for $2000.
Slums, Miss
White House to meet.
Gertrude Myer dines tomorrow at
April 6, 1932. 117.
Slattery, Mrs.
h his daughter, Mrs. Slattery
Bishop Lawrence called on us wit
May 6, 1932. 153.
and Mrs. 7iero.
Smith, Gov. "Al"
land Morris all said that,
Dr. Butler, Norman Davis, and Row
Roosevelt for President.
preferred Baker or Ritchie to Gov.
Dec. 14, 1931. 16.
. Smith told a friend of his
Rowland Morris told C.S.H. that Gov
ted him on a single
that Gov' Roosevelt had not consul
th who felt he had been
Smi
important question, and that Gov.
ry with Gov. Roosevelt
betrayed by Tammany, was very ang
many.
for his apparent desire to placate Tam
1. 16.
193
Dec. 14,
ept the nomination but will
Announces that he is willing to acc
not work to secure delegates.
Yeb. 7, 1932. 55.
d C.S.H. that he knew that
jambs 3. McConnell told C.S.H. tol
t to be nominated, but
Gov. Smith did not expect nor wan
Gov. Roosevelt; that
that he and Raskdb wanted to defeat
its religious
of
e
Gov. Smith hated the South becaus
was currying favor
he
e
bigotry, and hated Gov. R. becaus
Feb. 13, 1932.71.
with the South.
Smoking
clinic had not gone far
Dr. Joslin told C.S.H. that his eye
ine whether his blurred
enough in its examination to determ
king, but that my ocaulist
vision was caused by excessive smo
the cause was.
should make every effort to find what
Morrison.
C.S.H. gave Dr. Joslin's letter to Dr.
1931. 3.
4,
Dec.
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Federal Reserve Bank of St. Louis
4.4110*
Somerset Club
C.S.H. some time ago wrote, asking that names of George and
Zdward Hamlin Jr. be dropped on list for 5 years.
Mar. 29, 1932. 109.
Speculation
In memorandum to Glass, Gov. Harrison again expresses opinion
that the only way to ease speculltion was through increase
of discount rates.
April 18, 1932. 146.
In 1929 Gov. Harrison wanted to stop speculation by drastic
increases in discount rates which would have dislocated
May 10, 1932. 154, 155.
business.
See also: 60, 68, 72, 75,76.
See also: Glass
Harrison, Gov.
St. Agnes Church, Washington
We attend services at, in memory of Anna. rather Anderson presided.
April 26, 1932. 143.
St. Maryis Mineral Land Co.
H.P.H. exchanges 150 shares of, for 150 shares of Copper Range
Dec. 17, 1931. 23.
Company.
"Standstill* agreement
John roster Dulles said our Anwrican bankers were badly fooled
by British bankers mho secured a provision for payment
of 250 millions so called political credits; that our
bankers were induced to sign something they did not
unlerstand, but which they should have understood.
Dec. 11, 1931. 8.
Standard of living.
Gov. Meyer said that maintenance of our export trade was absolutely
inconsistent with keeping up our standard of living; that
exports were being encouraged at expense of our domestic
trade.
Jana 5, 1932. 38.
Standard Trust Co., Cleveland
Cleveland reported on Saturday that the, a labor non-omember bank,
was in trouble.
The Federal Reserve Bank gave notice it would no longer clear
its checks as its clearing balance had sunk from the
required $500,000 to $16,000.
Miller telephoned White House and. directed Gov. rancher to
revoke his refusal.
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Federal Reserve Bank of St. Louis
••• •
Standard Trust Co., Cleveland (Contsd.)
The State Superintendent closed the bank today.
O.S.H. is on Cleveland Committee and was present Saturday but
Miller mver consulted his.
Dec. 22, 1931. 27, 28.
Gov. Meyer said that when he called, up Gov. rancher Saturday
about the, he was so hesitant that he almost had to be
Dec. 23, 1931. 30.
rude to him.
See
Pandher, Gov.
Stabilization of prices. 154, 155. May 10, 1932.
See - Harrison, Gov.
Prices.
State Department
Floyd Harrison said the, sends direct to P.R. Bank, N. Y.
dispatches and communications without reference to
Federal Reserve Board.
Dec. 7,1931. 5.
Protocol division has ruled that only heads of Boards and
Commissions shall be addressed as "Honorable"
Feb. 2, 1932. 53.
Above came fran inquiry by Morrill at C.S.H.ss request Who
noticed that letters kept coming from, to Gov. Meyer
addressed 'squire".
Feb. 2, 1932. 53.
By letter of Feb. 9, 193?, State Dept. wrote Gov. Meyer - addressed
as "Honorable
Feb. 11, 1932.65.
Morrill told C.S.H. he took it up with protocol division which
state d that all except heads and deputy heads of Boards,
Commissions, etc. must be addressed as HUI:pare"
Feb. 11, 1932. 65, 66.
Ogden Mills acknowledges O.S.H.ss letter of congratulation by
letter addressed to C.S.H. Isouire.
Feb. 17, 1932. 77.
See - Harrison, Gov. 1.a.
Stenographer. 12.
See- Meyer, Gov.
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Federal Reserve Bank of St. Louis
248.
Stevens, Bessie
Bertie goes to reception at Roosevelt House in N.Y. with.
Dec. 14, 1931. 17.
C.S.H. told Rachel Hale of the proposed visit to Washington of,
and she said the would invite her to stay with her with
her daueller.
Bailie gave Rachel N.Y.Eddress of.
Jan. 29, 1932. 51.
Arrives in Washington with her daughter, at Rachel Hales.
Bertie talked with her over telephone.
Yob. 19, 1932. 77, 78.
Bertie calls on, at Rachel Hale's.
Bertie said Rachel said the was so sorry she had not thou4ht of
inviting the Mullins to dinner.
She herself dined out.
reb. 20, 1932. 77, 78.
Sends C.8.H. a sketdh of leftward Bowditdh for Wham the is seeking
appointment on the Reconstruction Pinance Corporation.
C.S.H. wrote, that he had spoken to Ployd Harrison about it.
Mar. 7, 1932. 88.
Stock prices
Gov. Harrison told H.R. Committee that in 1928 to 1929, while,
were steadily increasing, commodity prices were slowly
falling.
Pram October, 1928, to June, 1929, commodity prices were falling.
Prom Oct. 1928 to Feb. 1929, stock prices rose enormously.
From Feb. 1929 to June 1929 stock prices fluctuated up and down,
but by June 1, 1929, they were lower than on Feb. 1, 1929.
(Direct pressure lasted from Feb. 7 to about June 1, 1929)
Stock prices, after June 1, 1929 (when direct pressure relaxed)
started up increasing again.
On June 1, 1929, stock prices were far below the level of Oct.
May 10, 1932. 155, 156.
1928.
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Federal Reserve Bank of St. Louis
f
4,,,Zef•
Stockholders meting
P.R. Bank, Richmond.
C.S.H. address.
April 15, 1932. 127.
Stony Brook R.R.
Petitions to discontinue R.R. service — except freight,
over the R.R. to Westford and other stations.
Jan. 6, 1932. 37.
Stratton, Charles E.
Death.
Jan. 13, 1932. 42.
Strother, French
y
We dined with Mr. &Jim. Wyatt to meet Mr. and Mrs., the literar
secretary of Hoover.
'Tune 1, 1932. 187.
Sullivan, Malt
Gov. Harrison said the article of, saying that the F.R. Bank of
New York was trying to secure a promise from Bank of Prance
not to withdraw its deposits without dc-finite notice was
absolutely erroneous and that he would take it up with.
Dec. 2, 1931. 2.
Suppers (See also Dinners, Lunches, Teas)
With Mr. & Mrs. Charles Warren
Jan. 17, 1932. 42.
With Mrs. Borden Harriman.
Feb. 7, 1932. 55.
With Gov. Meyer, to meet Winston Churchill.
Feb. 12, 1932. 70.
With Harriet Hamlin.
Feb. 28, 1932. 84.
With Mr. & Mrs. Charles Warren.
Mar. 27, 1932. 109
Survey
Governors Conference.
C.S.H. advised a survey of credit conditions in each P.R. District,
especially as to possibility of ccnstruction work.
Gov. Meyer said good demand for reasonably checp houses in
Westchester County.
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Federal Reserve Bank of St. Louis
Survey (Contld.)
C.S.H. said construction work might not creatt much e'.igible paper
but that it could be taken care of under Glass anergency bill.
Gov. Meyer said we should not limit ourselves to considering
creation of eligible paper.
May 17, 1932. 162, 163.
Gov. Harrison said nothing could be done until Congres. adjourned.
May 20, 1932. 165, 166.
C.S.H. puts tn resolution calling for a credit survey in each
P.R. district.
Gov. Meyer objected to word nsurvee.
Finally Board wired each bank to form a District Committee.
Miller and C.S.H. wanted first a conference at Washington between
industrialists and bankers.
Gov. Meyer objected saying each F.R. bank could prepare its own
May 23, 1932. 168.
pTOgramme.
See — Conference
Miller
Washington Conference
Suspension of gold payments
Miller and C.S.H. agreed that lowering required reserves as desired
by Hoover might cause trouble and tend to.
Feb. 10, 1932. 63.
See.Miller
Wyatt
Suspension from F.R. facilities
See — Glass bill, Sec. 3.
wilibmwm.0.1.1modwommool
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Federal Reserve Bank of St. Louis
251
Taft, President
Secretary of Treasury MacVaigh protested to, as to opinion of
Solicitor General Lehman that national bank affiliates
were illegal and induced him to suppress it.
May 11, 1932. 158.
Tammany
Rowland Morris said that Gov. Smith felt he had been betrayed by
Tmmmany and was angry with Gov. Roosevelt for trying,
seemingly, to placate Taumany.
Dec. 14, 1931. 16.
Tariff
C.S.H. believes wish of Gov. Meyer and Ogden Mills to pay off all
Trench deposits grows out of anger because of Frendh position
as to debts, reparations, tariff etc.
Jan. 19, 1932. 46.
Thomas-Beedy bill.
Daiger said that the Comptroller and Miller wanted a liquidating
corporation similar to that in Glass bill but felt the Glass
bill could not became law for a long time, if ever, and that
therefore they prepared the, and tried to get precedence over
Glass bill; that Glass delayed hearings on this bill and
finally got his Committee to report his banking bill much
sooner than originally intended in order to get it ahead of
the Thomas-Beedy bill; that Glass felt that Hoover, Mills, and
Comptroller had not played fair and finally forced the
administration to withdraw the Glass-Beedy bill.
April 5, 1932. 115.
Thurston, Miss
Bertie goes to Morgan litrary in N.Y. and meets.
Dec. 14, 1931. 17.
Title of lederal Reserve Board members, "squire"
See.State Department.
Tolling of Westford bells.
Henry Wright said that after 1 bell for each year of a person
deceased, the bells of the church tolled 4 times for a male
and 6 times for a female, but that this practice had long
since been given up.
Jan. 6, 1932. 37.
Townsend, Sen.
Voted to report Glass banking bill but says there are features in
it he can not support.
March 18, 1932. 94.
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Federal Reserve Bank of St. Louis
252.
Trade acceptances
N. Y. Times says P.R. District aammittee of N.Y. is trying
May 26, 1932. 177.
to develop.
Traitorous. 28
See — Willis, H. P.
Transamerica Corporation.
Gov. Meyer introduced a resolution calling on the P.R. Bank of
San Francisco to offer its services in brin-ing together
Gtanini and the Walker crowd who are fighting for proxy control
of, which owns the stock of the Bank of America, California.
Gov. Mayer said that Gov. Calkins favored such a resolution, but
he did not say who had originally suggested this.
Some doubt was expressed in Board as to advisability of interfering
in this fight as it would be construed as an effort to block
Glanini.
Gov. Meyer strongly favored the resolution, his general manner being
almost offensive in its implication that because he approved
it the Board should accept it without question.
C.S.H. could not resist the feeling that the Walker interests were
behind Gov. Meyer sltho he denied this.
C.S.H. moved to add a paragraph to effect that the Board took this
action solely in the public interest, and that neither of the
Parties to the controversy for control had initiated or
suggested it.
The Board accepted this although C.S.H. fancied that Gov. Meyer
did not like it.
C.S.H. believes that Gov. Meyer was acting in the interest of the
Walker group, but can not prove this.
In any event he believes his resolution will protect the Board.
Jan. 8, 1932. 39.
Board voted to telegraph Gov. Calkins to suggest that each side
appoint one person and the two a third, and if they can not agree,
that the P.R. Board or the Reconstruction Finance Corporation
appoint the third. Gov. Calkins suggested this.
Fe. 1, 1932. 52.
(This was refused by Gianini who was completely in the
contest for proxies)
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Federal Reserve Bank of St. Louis
Treat, Mrs.
We dine with Gen. and Mrs. Treat to meet Godfrey Macdonald.
April 23, 1932. 142.
Treaties
See — Versailles treaty
Treman, Federal Advisory Council
In answer to letter of C.S.H. sending Lichtenstein's letter,
replied it would be better if such criticism were
avoided in the future by any official.
May 28, 1932. 181.
Travel expense
See — lconav bill
Salaries
Traylor, M. A.
See-. Federal Advisory Council.
Tyler, Charles.
Death.
Dec. 6, 1931. 4.
Titus, Miss.
We attend wedding of, to Dr. Coolidge at Bethlehem Chapel.
Bertie remained outside of Church. Later we attended
reception given by Mr. & Mrs. Bliss at their house
in Georgetown.
Jan. 16, 1932. 42.
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Federal Reserve Bank of St. Louis
254.
-U-
Under Secretary of Treasury
Ballantine appointed.
lob. 4, 1932. 54.
United States Bonds
See - Govt. securities
Gevernors Conference
United States Revised Statutes, Sec. 5200.
Glass told Goldenweiser that Willis had slipped into the
Glass bill a clause repealing all of the exceptions in.
April 17, 1932. 133.
United States Senate
Gov. Meyer and JAMS confirmed by.
Dec. 18, 1931.
24.
The Democrats of, in caucus voted to sustain the Glass banking bill.
Apri15, 1932. 114.
Hoover addresses, in behalf of sales tax.
June 1, 1932. 187
See - Glass
Walcott
United States Treasury
Sarah Carey daughter of Sen. Carey of Wyaming, told C.S.H.
that it was generally understood that if a Democrat were
elected President, C.S.H. v.ould be Secretary of the Treasury.
Dec. 23, 1931. 31.
Sec. Mellon resigns as Secretary.
Feb. 4, 1932. 54.
Ogden Mills appointed as Secretary.
Teb.4, 1932. 54.
Ogden Mills would like preferential rates an paper secured by
Government securities to help, in this emergency.
Jan. 11, 1932. 41 (2)
Sec. Mellon and Ogden Mills take oaths of office.
Feb. 12, 1932. 66.
All of Board felt it might be dPsirable to lower discount rates
at New York to help.
Feb. 24, 1932. 83.
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Federal Reserve Bank of St. Louis
United States Treasury (Contid.)
C.S.H., seeing the various articles in the papers, believes
Gov' Meyer is trying to be nominated for Vice Presidrnt
or for Secretary of the Treasury.
June 4, 1932. 193.
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Federal Reserve Bank of St. Louis
40o.
.V-
Vacation leave
See - Economy bill
Salaries
Valentine & Co.
C.S.H. saw advertised by H.C. Valentine & Co., Richmond, a
picture of a sideboard exactly like C.S.H.Is old Swan Tavern
sideboard. He wrote for particulars and on Dec. 12, 1931,
the firm replied that the price was $2250; but in view of
the existing depression they woul, sell it for cash for
$1100.
C6S.H. then sent them a picture of the Mattapoisett sideboard
and on Dec, 21, 1931, the firm replied:
"The photograph shows the picture of a very
fine Sheraton sideboard, and under normal conditions,
it is quite expensive, but as antiques are worth now,
the price has greatly shrudk, as you no doubt know.
If this sideboard is original throughout and is
an antique, the retail price would be about $1500."
Dee. 23, 1931. 29.
C.S.H. wrote, that Koopman once valued it at $2500, and acided
he might be willing to sell it for $200, and put in its
place the Swan Tavern sideboard.
Valentine & Co. replied that
ago, but under present
impossible to secure a
believe it would bring
no doubt it was worth $2500 years
conditions it would b3a1most
reasonable price and they dii not
today $2000.
See - Letter.
Dec. 29, 1931. 34.
Van deVanter, Justice 133, 134.
See - Chase, Howland,
Van Lennert, Mr.
Calls with Baroness Van Hedkeren on us. Oxford group.
May 18, 1932. 164.
Van Hedkeren, Baroness
Calls on us. Oxford group.
May 18, 1932. 164.
Club.
Democratic
at
us
Woman's
Lunches with
May 21, 1932. 167.
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Federal Reserve Bank of St. Louis
eA)1.
Tan Rensselaer, Mrs. Bayard
Dines with us at Hay-,Adal.ns House.
Feb. 21, 1932. 79
Versailles Treaty. 13.
See - Carnegie Founiation
Davis, Norman
Shotwell, J. T.
Vice Governor, Federal Reserve Board.
C.S.H. criticises Hoover for not having appointed a.
May 21, 1932. 167.
Vice President.
C.S.H. believes Ogden Mills and Gov. Meyer are using
propaganda to secure their nomination as.
June 5, 1932. 193.
Virreck
Mrs. Wilson told C.S.H. she had worried about the article in
Liberty Magazine by, claiming that she was in fact
President during Wilson's illness.
She said she did not mind attacks on herself, but could not
endure those on Mr. Wilson.
June 2, 1932. 189.
Votes, Federal Reserve Board.
Miller objected to considerin,- Glass emergency bill until and
unless Senate Committee asked for our opinion.
All of Board except Miller voted to consider it without
deciding as to sending its conclusions to Senate SubCommittee.
Feb. 14, 1932. 74.
lxtension of one year limitation in Glass ametgency bill.
Favored on unanimous vote of Board.
Miller alone voted No.
Feb. 14, 1932. 74.
On motion to send opinion of Board on Glass emergency bill to
Sub-Committee, which had not asked for Board's criticism.
Aye:
Not
Gov. Meyer, Magee
C.S.H., Miller, James
Motion failed.
Feb. 15, 1932.76
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Federal Reserve Bank of St. Louis
GOO.
Votes, Federal Reserve Board (Contli.)
Unanimous vote to make member bank collateral 15-day notes run
for 90 days when secured by eligible paper.
Mar. 27, 1932. 108.
Board instructs its Committee to draw clause divorcing security
affiliates after 3 years.
Mar. 27, 193:2. 109.
Board unanimously agreed on draft divorcing security affiliates,
also upon an open waist clause similar to Miller's.
Mar. 27, 1932. 109.
Board by unanimous vote, - Mills not present, - aplzoved its
draft of Glass banking bill, including Sec. 3 - penalizing
of member banks for abuse of Fa' facilities.
Was 28, 1932. 109
Governors voted to approve further purchases of Government
securities, 11 to 1. Gov. Young alone voted No.
Board unanimously approved.
April 12, 1932. 123.
See - Governors Conference
Open market policy
Resolution, C.S.H.
Survey,
Washington Conference.
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Federal Reserve Bank of St. Louis
"GOV*
Wages, Mattapoisett
Alice Hanley agrees to cook for us for $48 per month. Last year
we paid $90 to her.
June 3, 1S32. 192.
Wages, R.R.
Gov. Harrison said that if the rate and wage question was not speedily
settled the decline in bonds would make many more banks
•
.
Dec. 2, 1931. 1.4.
insolvent.
Gov* Harrison said he favored imrdhase of Govt. securities in
large amounts only. if necessary following the correction
of the wage situation, etc.
Jan. 11, 1932. 41.(2)
See - R.R. wases
Standard of living.
Walcott, Senator
We meet, at dinner with Sen. and Mrs. Carey of Wyoming.
Dec. 17, 1931.
Dines with us at Woman's National Democratic Club.
Jan.22, 1932. 47.
Takes part in conference with Goldenweiser, 7loyd Harrison,
and Morrill, just after White House agreement as to
Glass emergency bill.
lob. 11, 1932. 65.
Glass said Hoover told him the administration would back up any
bill agreed upon by, himself, Burgess and Goldenweiser.
7eb. 13, 1932. 73.
Glass goes to Miller's house but is called away by.
lob. 15, 1932. 75.
At Hoover Conference (7eb. 1932) it was agreed that if Glass would
consent to emergency bill, the administration would support
the rest of the Glass banking bill in so far as Sen. Walcott
and Glass could agree.
Mar. 14, 1932. 91.
Glass and, reached an agreement and Willis was directed to draft it.
Willis drafted it.
Sen. Walcott went over the draft with Burgess, Goldenwdser
and Wyatt.
Sen. Waloott became satisfied the draft did not represent his
agreement with Glass.
Mar. 14, 19326 92.
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Federal Reserve Bank of St. Louis
40%Jo
Walcott, Senator (Contsd.)
Wyatt said the runor was that Glass and Sen. Walcott had agreed
on the Glass bill; that later, he heard they could not agree.
Mar. 16, 1932. 93.
.1
1
Although Sen. Walcott agreed to report the new form of bill
to the full Ommmittee, he said there were certain features in
it he could not support.
Glass said in interview the Sub-committee voted unanimously to
report the bill.
An unfortuaate issue of veracity between Glass and Walcott.
Mar. 17, 1932. 94.
Goldenweiser said Sen. Walcott asked him to say to Board that he
hoped the Board would ask for a hearing.
Mar. 18, 1932: 95.
Ogden Mills told Board that Sen. Walcott told him he wanted expert
help and that he, - Mills - arranged to have Burgess cane down and
Goldenweiser help him, and that the President could not have said
that he had designated B. & G. to act for the F.R. Board.
Mar. 22,1932. 101.
evidently when Gov. Meyer told the Board that the Sub-Committee
desired expert assistance, it was really Sen. Walcott who made
Mar. 22, 1932. 101.
the request.
•
James said Ogden Mille told Board that Walcott and Glass said
they wanted expert help.
Mar. 25, 1932. 107.
C.S.H. asked Mills just what Sen. Walcott said to him and Mills
said Walcott said it would be agreeable both to Glass and
himself to have the help of B. and G.
Mar. 26, 1932. 107
Miller said Sen. Walcott told him yesterday that the Sub-committee
unanimously agreed yesterday to report the P.R. Board bill,
with slight changes, in lieu of the Glass bill.
April 4, 1932. 114.
Walker.
See - Transamerica Corporation
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Federal Reserve Bank of St. Louis
<,tJJ.•
Wall Street
Glass said, - in response to C.S.H. statement that Gov. Harrison
before the Senate Sub-Oommittee and Owen D. Young favored,
the right and power being specifically granted to P.R. banks
to close the discount window to banks abusing P.R. facilities that Wall Street had force& them now to object to such a
specific grant of power.
Feb. 13, i932. 72, 73.
See
N. Y. Banks.
Wall Street Journal.
Gov. Meyer said the correspondent of, told him he had in his
possession data revealing the Reserve Committee report before
it had even been printed.
Dec. 2, 1931. 1-B
Prints a cable stating that the P.R. Bank of New York is trying to
secure a promise from Bank of Prance that it will make no
further withdrawal of deposits, so our banks can expand on them.
May 7, 1932. 153.
See - Harrison, Gov.
Walter, John
C.S.H. met, managing Editor of the London Times, at dinner at
Dr. Butler's. He remembered. H.P.H. perfectly and was delighted
to hear from her again.
May 4, 1932. 154.
War Finance Corporation
Gov. Meyer said Peulger Whom he wanted as Chief Examiner, made a
Jan. 7, 1932. 38.
fine record under.
Warburg, Jerry
Miller said, was very able; that he predicted the crash of 1929
to his Father, Paul Warburg, who told him he did not know
what he was talking aboutt
Dec. 17, 1931. 21.
Warburg, Paul
Told his son Jerry, Who predicted the crash of 1929 that he
did not know what he was talking about.
Dec. 17, 1931. 21.
Miller said, was ill at his house just out of New York, and could
see no one.
C.S.H. believes the large holding of German acceptances by Warburg's
bank, - the International Acceptance Company, - about
30 millions - may be the cause of his illness.
Dec. 17, 1931. 21.
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Federal Reserve Bank of St. Louis
262
Warburg, Paul (Contld.)
Gov' Meyer spoke contemptuously about Warburg. He admitted that
. be had. a good theoretical knowledge of banking, but said he
was so opinionated and conceited, and so prejudiced by his
own conceit, that his judgment was good for nothing.
Dec. 17, 1931. 21.
•
Chief Examiner Drinnen said, had had a slight stroke but was not
paralyzed.
Dec. 22, 1931. 28.
Death of Paul Warburg.
Jan. 24, 1932. 48.
Miller says Mrs. Warburg told Mrs. Miller that Paul Warburg's
estate was in the "red" when he died; that she was trying to
sell their city house, but hoped to be able to keep their White
Plains house; that Mrs.Warburg could not keep up a five year
charity pledge she had entered into with Mrs. Miller.
May 25, 1932. 176.
Warehouse receipts.
Willis' draft of Glass bill retained the original restrictions on
loans on collateral, thus hitting a blow against cooperative
marketing associations and warehouse receipts.
Mar. 14, 1932, 92.
41.
Warning by Federal Reserve Board..
Glass puts in his bill as to 15-day member bank collateral.
Notes the clause "after warning by Federal Reserve Board."
Mar. 14, 1932. 93,
Warren, Mr. & Mrs. Charles
Lunch with Polish Ambassador in honor of Mrs. Wilson.
Dec. 15, 1931 17.
C.S.H. meets Nancy Warren at Mrs. Chandler Halels.
Jan. 5, 1932. 36.
We took supper with.
Jan. 17, 1932. 42.
Nancy Warren said it was generally known that Charles Sherrill gave
a large contribution to Rep. National Committee to sP .ure
the Ambassadorship to Turkey.
Mar, 9, 1932. 91.
We took supper with.
Had sudden attack of nausea.
Mar.27, 1932. 109
We lunched with.
May 30, 1932. 182.
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Federal Reserve Bank of St. Louis
263.
Washington Bi-centennial.
We loaned Rembrandt Peale*. Washington to, insuring it for $2500.
Feb. 12, 1932. 69.
Congressman Gifford secures a seat for W.H. to hear Hoover's
address to Congress at opening of.
Feb. 22, 1932. 78.
We attend the Mosque at Constitution Hall.
Feb. 21, 1932. 79.
Washington Cathedral
See - Freeman, Bishop
Washington Conference
Business and Industrial P.R. District Coamittee
See - P.R. District Committees
Washington Conference. Next volume of diary.
Washington portrait - Rembrandt Peale. 69.
See - Washington Bi-centennial.
Washington Post.
Says Gov. Harrison was presentat concerence of Republican Senators
at White House.
Ogden Mills explains that Hoover heard that Gov. Harrison
was spending weWosend with Admiral Grayson and invited
Gov* Harrison to White House to discuss "business conditions"
May 30, 1932. 182.
Washington Star. 2
See - Sullivan, Mark.
Wedding
Miss Tytus to Lawrence Coolidge.
Jan. 16, 1932. 42.
Anniversary C.S.H.extd H.P.H.
June 4, 1932. 192.
Charles McLane's dauelter to Rev. Mr. Braiklebank, at Baltimore.
Mar. 29, 1932. 110.
Westford reniniscenses. 27.
See.Wright, Henry.
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Federal Reserve Bank of St. Louis
Zbie
Wheeler, Mrs. Burton. 192.
See - Penntngton, Mrs.
Wilson chronology'.
White, Henry. 188.
See - Wilson, Mrs.
White House
C.64X. attends New Year's reception at.
Jan. 1, 1932. 35.
See - Glass
Glass bill
Hoover
White, National Metropolitan Bank. 136, 137
See - Myer, Gertrude
Wile, Frederic
We meet, at dinner with Robert Lincoln O'Brien.
April 7, 1932. 118.
Williams, Mrs. Constance (Lodge)
Thanks C.6.H. for two letters of Sen. Lodge, - one praising
his son for the mimic of the Greek play and the other as
,The Moses to lead the Democratic Party
to C.S.H. being '
out of the Wilderness."
May 31, 1932. 185.
it the dedication of the monument at Fort Myer given by Gertrude
Myer in memory of her Father, C.S.H. was riven a seat
between Mrs. Wilson and Constance Williams, much to his
June 2, 1932. 188.
embarrassment.
Williams, John Skelton
Tried to induce Sec. Houston to ask Attorney General to send a
copy of Solicitor General Lehman's opinion that national bank
security affiliates were illegal, but Sec. Houston refused.
May 11, 1932. 157.
Willis, H.P.
Gov. Harrison bitterly attacked,for his false and unpatriotic
attacks on F.R. System in certain Paris papers Which he
represented.
He said he was largely responsible for the distrust of the America
dollar in Trance; that Burgess before the M.S. dispelled this
fear; but that Willis replied that his figures were ten days old,
implyiqgthat present figures would tell a different story,
Which was not true.
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Federal Reserve Bank of St. Louis
400•
Willis, H. P. (Cntld.)
Gov. Harrison also Charged that Willis gave X. Y. Journal of Commerce
a scoop on the Reserve Caumittee report and that he could
only have obtained this by violating confidence with Glass.
Dec. 2, 1931. 1-A, 1-B.
Glass said he had investigated the above charges and that they were
Dec. 16, 1931. 20.
not true.
Gov. Meyer reads to Board an article by, in a paris paper, stating
that the U.S. had entered upon a policy of unlimited inflation, which, Gov. Meyer said, was untrue and even traitorous.
Jan. 19, 1932. 43.
C.S.H. feels the desire of Gov. Meyer and Ogden Mills to force
Trance to remove its deposits, is form of hatred towards Trance
because scared by WillisIs propaganda.
Jan. 19, 1932. 46.
The reported bill by the Senate Sub-committee shows that Wills had
"put it over" the Committee.
Tab. 5, 1932. 55.
Glass and Sen. Walcott asked Willis to prepare a draft of their
agreement as to Glass banking bill.
Sen. Walcott studied it with Burgess, Goldenweiser and Wyatt, and
became satisfied it did not represent his agreement with
Mar. 14, 1932. 92.
Glass.
Willis's report made a few, but not many changes, recommended by
Burgess and Goldenweiser; it retained Sec. 3 exactly as in
the original bill, disregarding both C.S.H. and Miller's
suggestions; it retained the limitations on collateral loans
thus hitting a blow at cooperative marketing associations,
and warehouse receipts; it threw out domestic acceptances as
collateral for P.R. notes; it retained the provision as to
compulsory revaluation of real estate loans, etc.
It modified the provisions as to meMber bank 15-day collateral notes
by adding a provision for a warning by the P.R. bank, etc.
Wyatt said it contained a. "jokers in the reserve position.
Mar. 14, 1932. 92, 93.
Glass told Goldenweiser that Willis had slipped into the Glass
bill a clause repealing all of the exceptions in U.S.R.S. Sec. 5200.
April 18, 1932. 133.
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VW.
f
Wilson chronoloa.
Mrs. Pennington sencts C.S.H. a cheek for 180 - 1/2 of royalties
on sale of, during past year.
C.S.H. acknowledged, indorsed it, and sent it to Mrs. Buxton
Wheeler, Treasurer of Woman's National Democratic Club.
%rum 3, 1932. 192.
Wilson Foundation
Dr. Butler said a man who owned 'and in Washington had come to
him and wished to give the land to Columbia University
and on it to be erected a memorial auilding in memory
of Wilson, and as a storage place for ad his papers.
Dr. Butler said he advised him to give it to the Wilson
Foundation, and that Norman Davis is trying to bring
this about.
Dec. 14, 1931. 15.
Wilson, Mrs. Onne.
At dinner, Mr. & Mrs. George McClellan gave precedence to, over
H.P.H.
Jan. 31, 1932. 52.
Wilson, Mrs. Woodrow
H.P.H. attends tea at Woman's National Democratic Club in honor of.
Dec. 4, 1931. 3.
The Polish Ambassador decorates and gives a luncheon to, to
which we were not invited.
Dec. 15, 1931. 17.
At dedication of monument to Gen. Myer at Port Myer, C.S.H.
was given a seat between, and Constance Williams (Lodge)
much to his embarrassment&
C.S.H. told, how Prof. Nevins failed to print in his life of
Henry White a letter of his to C.S.H. praising Mrs. Wilson,
and that he intended to write and ask the reason.
She was very much interested and asked C.S.H. to let her know
Prof. Nevin's reason.
C.S.H. also discussed political matters.
She evidently favored Baker but did not say so dire-tly.
C.SH. expressed regret that Baker did not mention the League
of Nations in his address at the Washington Cathedral.
She said she thought he had.
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Federal Reserve Bank of St. Louis
267.
Wilson, Mrs
Woodrow (0o
d.)
C.S.H. said there never was a time when it was more necessary
for the U.S. to join the League of Nations, - to which
she unhesitatingly agreed.
She said she had had many worries lately, and mentioned
especially Vierick's articles in Liberty Magazine, claiming
that she was practically President while Wilson was ill.
she said she did not mind personal attacks but could not stand
attacks on her husband.
C.S.H. said his character stood out more conspicuously under attack.
One vould have thought fo m our earnest conversation that we
were most devoted friends&
Time 2, 1932. 188, 199.
Wilson, Woodrow
See - Wilson Jblintiation
Wilson, Mrs. Woodrow
Wimpolc Street, The Barrette of
We attend play entitled, as guests of Mr. & Mrs. Magee.
Mar. 9, 1932. 89, 90.
Wingo, Cong.
Glass said, received in 1927 from American Bankers Association,
$2000 including $1000 for expenses, for attendance at
Convention, as a fee for attacking the branch bank provisions
of the McFadden bill, although he was a member of the
Conference Committee Which had the bill in hand.
May 13,1932. 160.
(See earlier diaries for further particulars: Afol. 13, p.118
" 14, p.128,1294
Winslow, Sam
We meet, at supper with Charles Warren.
Jan. 17, 1932. 42.
We meet, at dinner with Robert Lincoln O'Brien.
April 7, 1932. 118.
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268e
Woman's National Democratic Club
M.P.H. attends tea at, in honor of Mrs. Wilson.
Dec. 4, 1931. 3.
We give dinner at.
Guests: Sen. Walcott, Sen. & Mrs. Carey,
Mrs. Oong. Kahn, Josephine Patten.
Jan. 22, 1932. 47.
We give a dinner at.
Guests:
Captain & Mrs. McNamara, Mr. &Mrs. Richard Sanger.
Feb. 12, 1932. 69, 70.
We give dinner at.
Guests:
Mrs. Conga Rogers, Robert Lincoln O'Brien,
Captain & Mrs. McNamara.
H.P.H. at lundh of, answered Cong. Howard's (Nebr.) Atacks on
Federal Reserve Board and completely floored him.
April 11, 1932. 121, 122.
C.S.H. sends Mrs. Burton Wheeler, Treasurer of, a check for 18/C
being one-.half of royalties on sale of Wilson chronology
for 1931. Received it from Mrs. Pennington.
June 3, 1932. 192.
Wodaey, Robert
Told C.S.H. he knew that Gov. Roosevelt arranged to have Hearst
call him on long distance telephone, and that they had
a conference together. This was before Gov. Roosevelt
came our against League of Nations.
Woolley said Gov. R. had demonstrated he was not the man he
thoucht he was.
Feb. 8, 1932. 57.
World Court
C.S.H. told John W. Davis he believed the World Court advisory
opinion on the Austro-Gemnan tariff agreement was a
political opinion, - 8 to 7.
Davis said he had written an article for coming Atlanta
Monthly to demonstrate the contrary.
C.S.H. later read this and wrote Davis his article had convinced him.
Dec. 14, 1931. 14, 15.
N. Y. Times publishes C.S.H. letter on the reservations of Senate
as to World Court, somewhat abbreviating it. See Vol. 226,
April 2, 1932. 113.
scrap books.
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GOV•
Wright, Henry M. Westford.
Calls on C.S.H. in Washington.
Spoke to C.S.H. at Cosmos Club.
He was a teacher in Boston Public Schools for years, and. has
now retired on a pension.
He has a gunner house at Marshfield Hills, but his pennanent
home is in Wewtford.
He said Westford had changed but little, but that Brookside,
Forge Village and Grantsville had greatly developed; that
the B. & M. Railroad had petitioned to discontinua passenger
servicr over the Stony Brook Railroad; that John Abbott was
living in the Abbott house; that Julian Cameron who married
Lucy Abbott was living on the Grantsville road; that Abul
and Mrs. Abbott were dead and their son had made over their
house; that John Fletcher, the former Democratic postmaster,
was dead.
C.S.H. asked him if the church bills still tolled when anyone
died. He said this had long ceased, but was revived when
Abiel Abbott died and the old bell toller was brought down
from New Hampshire for this occasion; that at the end the
bells tolled 4 times for a male and 6 times for a female.
He said his son Livingstone Wright was an engineer, temporarily
employed in the Dept. of Commerce and he was vis ting him.
He Baia that Mrs. John Abbott was still living, - over 90 years
of age, and that Kate Kebler took care of her.
Jan. 6, 1932. 37,38.
LivinEstone Wright, Henry Wright's son, wants a permanent
position in Warhington and C.S.H. gave him a letter to Mr.
Elliott, Chief Statistician of Reconstruction Finance
Corporation, Who said there was nothing there for hira, but
that something might turn up in future.
C.S.H. also spoke to Floyd Harrison in his behalf.
Mar. 5, 1932. 88.
See - Wright, Henry.
Wright, Marjorie
See - Key, Mrs.
Wyatt, Walter, General Counsel. (See also Chase, Howland)
Gives C.S.H. a copy of H.R. 5060 creating a Reconstruction Finance
Corporation.
Dec. 17, 1931. 21.
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Federal Reserve Bank of St. Louis
4(Uto
Wyatt, Walter (Contsd.)
C.S.H. asked Who drew this bill, and Wyatt said Morrill drew it
under injunction of absolute secrecy; that he, Wyatt, was
forbidden even to allow his own clerks to know as to its
authorship, but that later he heard Gov. Meyer speak of its
authorship and so he assumed the bank of secrecy had been
Dec. 17, 1931. 21, 22.
-removed.
Said that a few days ago, Gov. Meyer, Floyd Harrison and Morrill
spent a whole afternoon at the Capitol, presumably.in
connection with this bill.
Dec. 17, 1931. 23.
Says Gov. Meyer no longer asks him for legal opinions; that all
such requests cane from Floyd Harrison or Morrill.
Dec. 22, 1931. 28.
He said Gov. Meyer had put in force a new procedure under which he
went over all proposed letters whether or not involving legal
questions, and that they were chedked up by Morrill and Floyd
Harrison before being Shown to Gov. Meyer.
Dec. 22, 1931. 28.
t.Gov. Meyer never asked him to go with, him to any Committee
ed
He s.ai
of H.R. or Senate with relation to the Reconstruction Finance
Dec. 22, 1931. 28.
Act.
Said Gov. Meyer was asked by a Congressional Committee whether
his support of proposed Reconstruction Finance Act represented
the views of the Federal Reserve Board, and replied that he was
Governor of the Board and appeared in favor of the bill.
As a fact, the Board had never been consulted about iti
Jan. 9, 1932. 40.
Said that while in Ogden Mills office he heard Mills call up
Gov. Harrison and direct him to send Burgess down to help
Feb. 1, 1932. 53.
Sen. Walcott.
C.S.H. wanted to send Glass a copy of Wyattls criticism of the
Glass banking bill, but all members objected and C.S.H. did
Feb. 2, 1932.53.
not send it.
Told C.S.H. that Burgess and Golde.mweiser had stricken out, in
their report, Secs. 3 and 9, power to close discount window.
Feb. 8, 1932. 56.
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Federal Reserve Bank of St. Louis
,f £.
Wyatt, Walter (Contld.)
Says that after White House agreanent as to Glass emergency bill,
there was a conference :it which Sen. Walcott, Floyd Harrison,
Morrill, Goldenweiser and he were present.
Feb. 11, 1932. 65.
Says the reserve sectIon in Willies draft contains a "joker".
Mar. 14, 1932. 93.
Said he had heard a rumor that Glass and Sen. Walcott had, agreed
on Glass banking till, but that, later, he heard they could not
Mar. 16, 1932. 93.
agree.
Said he heard that Willis had resigned it that Glass persuaded him
to reconsider as he could not continue without him.
Mar. 16, 1932. 93.
Says the Board's committee on the Glass bill sat from 8 p.m. last
night until after midnight; that Gov. Meyer and Floyd Harrison
sat with theta; that they finally agreed to report a clause
as to closing the discount window.Sec. 3 — substantially
like Miller's and C.S.H.1 8; that Gov. Meyer finally said he
was inclined to think that this power should be given to the
F.R. banks and F. Board.
Mar. 23, 1932. 105.
Told C.S.H. that Ogden Mills said he would join in the Bo-Irdis
unanimous report on the Glass banking bill, tut that he could
not quite understand the clause divorcing security affiliates,
but that, on principle, he believed they, or many of them,
Mar, 29, 1932. 110.
should be disorced.
Said the rumor was that when Sec. MacVeagh learned of Solicitor
General Lehman's opinion that national bank affiliates were
illegal, knowing that it would affect the Continental of Chicago,
in which he was interested, he vigorously protested to Taft
Who suppressed it.
May 11, 1932. 157, 156.
•
Agrees with C.S.H. that Sec. 8 of Clayton Act exempting from its
provisions cases as between banks and trust companies Where
all of the stock of one is owned by stockholders of the other,
is an implied recognition that banks may have trust company
affiliates, or a distinct recognition and approval of the
fact that they often have them; that While security companies
are not necessarily trust companies, the principle remains
May 11, 1932. 158, 159.
the same.
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Federal Reserve Bank of St. Louis
272.
Wyatt, Walter (Contid.)
literary
We dine with Mr. & Mrs. Wyatt to mast ?tench Strother, the
secretary of Hoover.
June 1, 1932.187.
•
Tells C.S.H. that the provisions of the economy bill, cutting
down travel expense to $5 per diem and. limiting leave of
absence to 15 days, applies to Federal Reserve Board and staff.
June 3, 1932. 191.
•
S
will
Tells C.S.H. he thinks the Senate amendment to economy'bill
relieve the Board and stiff fram salary reduction.
June 9, 1932. 197.
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See. Chase, Howland.
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Federal Reserve Bank of St. Louis
273.
Young, Gov. Pederal Reserve Bank, Boston.
Opposes further buying of Government securities. Governors
Conference.
April 12, 1932. 123.
Cast the only negative vote on motion to approve purchases
of 500 millions.
April 12, 1932. 123, 124.
C.S.H. sends, a copy of his letter to Lichtenstein in reply
to his intimation of Board political activity in 1928.
May 27, 1932. 180.
Young, Owen D.
Promises Gov. Meyer that Chairman Case will resign on May 1 next
unless fully restored to health, if Board will reappoint
Dec. 23, 1931. 30.
him.
Told Senate Committee that P.R. banks and Board should. have power
to Close the discount window of offending banks, yet now
signs a memorandum to Glass bitterly objecting to
Sec. 3 of Glass bill, which gives this ymuer.
(See analysis of memorandum
Scrap boos, 226 or 227)
April 8, 1932. 121.
Gov. Harrison appoints a 7.R. District Committee headed by.
May 20, 1932. 165.
(She end.)
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