The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Collection Tilde
THE PAPERS OF
CHA LES SUMNER, HAJMLIN
DIARIES
Series and/or Container
Shelf/Accession No.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
76
91
f
1-/ tio/4
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2IARIES.
VOL. 26.
January to October, 1935.
Ipdex - Digeat
Abrams, Mrs. 85, 86, 87, 104.
See - Carnegie Foundation
Administration
C.S.H. assistance to.
1.
Election of Doolin, Kansas City.
2.
Offering cnairmansnip of Federal Restrve Bank
San Francisco, to Comptroller.
3.
Three instances of open market clases.
4.
Extension of effective date of security regulations.
93.
Administration bill, Banking Act of 1935.
Gov. Eccles said Roosevelt would not make it an Administration bill,
altnough he had approved it and would very likely speak to the
H.11.. Committee in its favor; that Roosevelt felt this was the
best tretiment.
Feb. 4, 1935. 30.
Roosevelt sent the Eccles banking bill to the respective Committees
of Congress, accompanied by a letter, merely stating that the
bill was prepared by Crowley, O'Connor and Eccles, wno would
explain it.
Then Roosevelt dodges tne question.
The Administration bills is, after all, not an administration bill!
Feb. 5, 1935. 33.
Gov. Eccles told Board it was an administration bill, but that
Roosevelt thought it more politic not to send it in as such.
He said Roosevelt went over it carefully and approved it, but
reduced proposed salary of Board from $20,000 to $15,000 and
also struck out the branch bank provision.
Feb. 5, 1935. 34.
Administrative policy.
Wall Street JOUnla criticses C.S.H. because he did not follow the,
and vote in favor of 6% discount rate at New York in 1929.
1):.'5. 103.
June
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2
.
Affidavit.
Edward Hamlin signs affidavit as to payments by George and
nimself to Harriet tnd Jane Hamlin.
Sept. 8, 1935. 185.
Ages of U.S. Senators
Senators wno are now or will be during 1936 of age of 70 or over.
Sen. Johnson.
Sen. McAdoo
Sen. Pletcher.
Sen. Borah
Sen J. Ham Lewis
Sen. Capper
Sen. Coolidge (Mass)
Sen. Norris
Sen. Keyes
Sen. Metcalf
Sen. Glass
Born Sept. 28, 1863.
"
Oct. 1, 1863.
" Jan. 6, 1859
June 29, 1865.
"
Age not given
Born July 14, 1865
Born July 6, 1865
Born July 11, 1861
Born 1863
Born Nov. 16, 1860.
Born Jan. 4, 1858
58, 59.
Alibi Club
We attend tea at, in honor of Hoffman Philip, our Minister to
Norway.
Mar. 15, 1935. 53.
Amendments to Banking bill of 1935.
64, 65, 67, 68.
See - Bani,ing bill of 1935
Eccles, Gov.
American Bankers Association
Gov. Eccles said Mr. Hecnt of, had gone over nis proposed
banking bill changes.
Feb. 1, 1935. 23.
Amory, Copley, Mr. & Mrs.
We called on, to meet Mr. & Mrs. Russell ::odman of Boston.
Mar. 22, 1935. 57.
Anderson, B. M.
Attacks Currie's banking and economic views.
May 11, 1935. 88.
Anderson, Father. 77.
See - Hamlin, Anna.
Araki, Mr.
See - Bank of Japan
Archie Candler. 194.
See -Boreel, S.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
3.
Assistance of C.S.H. to administration. 93.
See supra - Administration
Atlantic Montnly. 191.
See - Leutrum, Countess
Attorney General
Glass tells C.S.H. that a Secretary of Treasury is not bound by
an opinion of.
Wyatt says tnat during tne war President Wilson issued an Order,
still in effect, that when a Department head asks,for an
opinion it is binding on nun.
June 3, 1935. 100.
Austin, Sen.
We had, and Mrs. Austin at dinner at Woman's National Democratic
Club.
June 13, 1935. 113.
Automobiles. 103.
See - Brandies, Justice
Await, Deputy Comptroller
Gov. Eccles said non-controversial features of the Banking Bill
were being worked out by Wyatt, Await, Oliphant and Wilcox.
Jan. 23, 1935. 19
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4
.
-B-
B.I.S.
Roosmelt and Morgentaau want Gov. Harrison to became a.
director of.
73ratt advised Board not to permit this, as the U.S. never became
a party to tne treaty creating the B.I.S.
Board voted to tell Secretary Morgentnau it had no objection to
Gov. Harrison going over unofficially as an observer,
to the meeting of directors, as ne did last year, but
that it was not prepared to agree to have nim become a
director.
The articles of incorporation of B.I.S. were so drawn tnat the
Board, if it permitted Gov. Harrison to become a director
would virtually admit that tne Federal Reserve Bank of
New York was the central bank, of the U.S.
These articles should nave mentioned the Federal Reserve Board, but
Gov. Harrison, some years ago, told ti Board tnat it
was on nis suggestion tnat the articles did notmention
the Federal Reserve Board.
Aug. 23, 1935. 180, 181.
See - Oliphant.
Bank of Am -rica. 4.
See - Giannini.
Bank of Japan.
Mr. Araki, now New York Agent of, called last week with a letter
from Gov. Fukai. We nad a pleasnt talk and C.S.H.
expressed regret ne nad not seen more of Saito, the
present Ambassador.
Sept. 23, 1935. 192.
Banking Bill of 1935.
See - Eccles, txov.
1
Berryman
Lectured at Woman's National Democratic Club.
Drew cartoon of
Mar. 22, 1935. 57.
Betnoa, Asst. Sec.
Morrill thanked C.S.H. for asking increase in salnry for.
April 12, 1935. 72.
See - Salaries
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
5.
Bells of St. Mary.
Sunp: tit Pittsburgh when C.S.H. spoke there.
June 19, 1935. 117.
Bi-P-Ttisan Board.
Senate bill nrescribed that not more tlarl 4 members of Board of
Governors should be of the same political nnrty.
This will turn our Board into a partisan body.
A President might wish to appoint ,
,,ome highl: efficient man, but
could not do so bec,mse of tne political complexion of the
Board at the time.
So also, it is clear that if e.g. a Republican president had to
appoint a Democrat he would choose someone who, 'Ilthough a
Democrat in name, really is in accord with nis political views,
and vica versa.
It would inevitably lower t_e standard of membership.
July 16, 1935.142, 143.
Daiger told C.S.H. the bi-p2rtisan clause would prebably be dropped.
Aug. 10, 1935. 166.
Clayton told C.S.H. that Jesse Jones favored tne bi-partisan clause,
saying it had worked well und-r the R.F.C., and tat the
Board m mbers, no matter what their -political beliefs, would
always cooperate with the Administration in every proper way.
Aug. 12, 1935. 168.
Thurston and Clayton both said it was rumored that the Conference
Committee would drop the bi-partisan clause.
Aug. 12, 1935. 168.
Schuyler Merritt told C.S.H. that the bi-partisan feature was bad
and should be dropned out.
Aug. 1, 1935. 172.
i,
The bi-partisan clause was favored largely by Republicans on the
theory that the whole Federal Reserve Board consisted of
Democrats.
This, I think they subsequently realized, was erroneous.
The only mevibPrs Clearly to be clas,
3ed PS Democrats are C. .H.,
Thomas anO Szymczak. Gov. Ecclea, as he himself told
C.S.:1. was a progressive Republican; Miller was appointed
as an Economist, and was classified as an independent".
James voted for President Harding, was a :.,olnted by Harding, and
reap-,ointed by Hoover.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6
.
Bi-partisan Board (Cont'd.)
The Board stands:
Progressive Republicn
Independent
Indecendent Democrat
Democrats
1.
1
1
3
No mane in the Board would have ..:Hen required, if tile Bi-partisan
clause haa remained in the bill.
The Conference
orrfaitee, how,
-ver, struck it out.
172, 173.
Big corporations .103.
See - Brandeis, Justice.
Biggs, Solicitor General
We met, at dinner with Mrs. Emily Newell Blair.
1, 1935. 47.
Birthday
C.S.H.'s 74t. Aug. 30, 1935.
Mrs. Gordon-Cum-dn6, and Mrs. Newlands sent 1-tters.
Aug. 30, 1935. 184, 186.
Black, Gov. 8, 9.
See - Fed-ral Resxve Bank, Atlanta.
Black, Mrs. Governor. 8
See - Federal Referve Bank, Atlanta.
Blair, Emily Newell
We dine with.
Feb. 28, 1935. 47.
Blair, Gist. Mr. & Mrs.
Dine with us to meet Sec. and Mrs. Morgenthau.
March 13, 1935. 53.
Bliss, Mr. and Mrs.
We dined with, to meet Mrs. Conant, Presidlat of Harvard University.
Aril 24, 1935. 76.
Te dined with.
Pr -sent: Sec. Hull, Under Sec. Coolidge and !.r. Smith
of State Department
July 5, 1935. 129.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
7
.
Blood pressure. 82.
See — Ruffin, Dr.
Board of Governors, Fed
,ral Recerve System.
101, 119, 175, 190.
See — Eccles, Gov.
Banking bill 01 1935.
Boardman, Miss
We lunched with.
Mar. 24, 1935. 58.
Bones, Helen
Dines witn C.S.H. at Cosmon Club.
Aug. a), 1935. 177.
Bonus bill
Roosevelt vetoes.
H.R. passes over veto.
322 to 98.
Votes to sustain veto.
Democrnts 60
Repubs.
38
Vote to override veto.
Dem.
248
Repubs.
64
May 22, 1935. 96.
Senate sustained veto.
Democrats 28
Renubl ,.
12
40
To pass over veto:
Dems. 41
Rep. 11
52
May 23, 1935. 97
Boreel, Sorhie
C.S.H. to S.B.
H.P.H. to S.B.
Jan. 3,1935. 2.
C.S.H. to S.B.
Jan. 10, 193s. 7, 8.
C.S.H. rceives letter from S.B.
Ja:.. 12, 195. 10.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
8.
Boreel, So-hie (Contld.)
S. B. w ites
Jan. 16, 1935. 14.
C.S.H. writes S.B. Jan. 17, 1935.
Receives S.B. letter dated Jan. 16.
Jan. 26, 1935. 21
J.S.H. to S.B.
Jan. 28, 1935. 21.
S.B. to C.S.H.
Feb. 26, 1935.
C. .H. to S.B.
Mar. 9, 1935. 51.
S.B. to C.S.H.
April 3, 1935. 73.
C.S.H. to S.B.
April 16, 1935. 73.
S.B. to C.S.H.
hay 1, 1935. 7.2, 90.
T. .H. to S.B.
May 21, 1935. 96.
S.B. to C.S.H.
June 24, 1935. 127, 129.
C.S.H. to S.B.
July 5, 1935. 129.
S.B. to C.S.H.
Aug. 13, 1935. 177.
C.S.H. to S.B.
Au. 2t., 1935. 132.
C.S.H. to S.B.
Sonas a book.
Sent. 14, 1935. 186.
S.B.to C.S.ri.
Sept. 2, 1935. 194.
C.S.H. to S.B.
Sends her Bertiels me,lo on Airlie Castle.
Sent. 27, 1935. 196, 197,
Boston. 124
- Hamlin, Edward
Bradley, Miss
See - Haralin, Anna.
Branch banks
Gov. Eccles said Roosevelt strack out of his and Treasury bill
.
tne provisions as 1 J.
Feb. 5, 1935. 34.
Jan. 4, 1975. 4.
Brandeis, Justice.
Miller said someone told nim tnat a Justice of tne Supreme Court
told tim tnat if tne Federal ResPrve BoLrd nad stood pat on
tne matter of seizure of their gold, tx,ey would have aome out
successfully. liller seemed to trunk it was Justice Brandeis wno said ti
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9
.
Brandeis, Jwtice (Contid.)
Justice McReynolds told us at, breald st that, was discovered
by At orney Gen. Gret
fory who got him to ,xamine into tne
New Haven R.11. situation.
He said Cardozo was even worse than Brandeis and no one could
understand his opinions.
Mar. 17, 19:'.5. 54.
Some days ago Joseolius Daniels called and said he had had a
talk with Justice Brandeis who said automobiles were a culse
to the country; that a confiscatory tax Should be levied on
large incomes; that tne big cor2or tions snould be taxed out
oI existence!
June 5, 193. 10.
Brekfasts
See - McReynolds, Ju-tice.
Breese, Mrs.
Calls on
UF
53, 73.
with Janet Fish.
July 7, 1935. 132.
Brewster, Cong. 110
See - Hamlin, hannibal
British Ambassador
We meet, at luncn with Mrs. Flint
April 7, 1935.69.
Broun, Aleck 125.
See - Hamlin, Geo.
Bruce, Ex-Senator and Mrs.
We meet, at lunch with Canon Stokes.
Jan. 7, 1935. 21.
We lunchi with, at Ruxton.
July 14, 1935. 139.
Britus. 1;8.
See - Glass, Sen.
Burgess
Said in a publicaddres:. tnat the Federal Reserve Bank of New York
bought in fall of 1928 100 million more aceptances tnan it
should have bought.
July 7, 1935. 134.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
10.
Burns,
Has had many conferem7es with C. .H. She repre, ents Sen. Nye
s
of Committee investiating exportation of munitions. Sen.
Nye wrote me a letter asking me to show 11.n• my nrivate
memoranda on subject of muition exports in 1914-17; Bank
of England,Agency, etc. etc.
0. .H. gave her extracts from his scrap books and diaries and
wrote Sen. Nye ae gave tnese to the Committee in confidence
and that if they wished to quote hii, he desired to be
Tammoned before the Committee and give his testimony to it.
(Many later confPrences with Miss Burns. She finally
appeared satisfied with it C.S.H. gave her.)
July 19, 1935. 149.
Busines, conditions. 192.
See - Federal Advisory Council.
Butler, Dr.
84, 86, 97, 160.
See - Carnegie Foundation
Byrnes, Sen. 109
See - Glass.
4
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
11.
-C-
Cardozo, Justice
Justice McRe;.nolds told .C.S.H. that, was worse ..han Brandeis;
that no one could really understand his o')inions.
He said Parker (rejected by Senat e) would hi,ve made a better judge
tnan Cardozo, and that if Parker had been on tie Bench, the
gold clause dec ision wou13 have been just the other way.
Mar. 17, 1935. 54, 55.
Carey, Mrs.
Calls on us.
Feb. 19, 1935. 41.
We called on.
May 26, 1935. 97
Carey, Sarah
Wrote C.S.H. last week.
C S.H. replied today.
June 10, 1935. 111.
Last week Senator Carey wrote Bertie that Sarah had broken her
engagament; tx.at he had inve7tigated the young man !lid found
he was no -:ood.
July 7, 1935. 133.
Writes C.S.H. that .he has broken her ennement.
C.S.H. writes her.
July 12, 1933. 138.
Writes C.S.H. ex-plaining her broken engagement.
Aug. 1, 1935. 161.
Carey, Senator and Mrs.
We dined with.
C.S.H. and he discussed the banking bill.
He seemed. very liberal but said nothing definite.
He seemed to favor the retirement -_3ension plan.
He was contemptuous as to Sec. Morgenthau.
Sarah was ill in bed.
.ay 17, 19‘,5. 94.
See infrr., - Carey, Sarah. 13.7.
Carnegie Ebdowment.
went with H.P.H. to New York to attend neeting of.
May 8, 1935. 8.
At meeting.
Dr. Lutl fa. asked. lie to come to meeting of Executive Committee
in p.m. to tell it about Mrs. Abrams.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
12.
Carnedow Endowment (Contld.)
attended Executive Committee meeting.
C.S.H. explained that the L. of N. association was not using
the grant from the Endowment of $2500 for the nurpose for
which granted, viz, to nay expenses of Washington office
including Mrs. Abram's salary.
C.S.H. said he heard that the Association had e-it Mr. Ickelberger
in charge of the Washington office, and that he was to do
lobbying W014 ( for the Association.
1
C.S.H. said Association should be asked to return the $2500, and
that no more money -Ariould be given it to do, directly or
indirectly any work in nature of lobbying.
Dr. Butler suggested taking over Mrs. Abrams and her staff,
either paying her expenses for a room at Brookings Institute
building, or assigning her quarters in Carnegie building in
Wasnington.
Finally tne Executive Committee voted to authorize Scott, Delano,
C.S.H. and Gov. Montague to decide the mAter, with authority
to allocate money for this purpose, and to do what they
believed to be for the best intere7ts of th- Foundation.
Shotwell praised Ickelberger and denied that he intended to lobby
for L. of N. or had loboied in the past.
C.S.H. s id the question was what he intende=d to do in the future.
Shotrell said Ickelberger was undoubtedly a raughnedk and could
not get along witn a refined southern lady like Mrs. Abrams.
C.S.H. said he feared lobbying was in contemplation.
he had talked witn Norman 7.)avis vino prised
Ickelberger, but said tnat any attem-pt to lobby for the L. of N.
wouLd be disastrous.
Dr. Butler said he would talk bhe matter over with Lamont and Fosdick.
Dr. Butler said the L. of N. assoeiation could lobby or do as it
pleased with its own meney, but not with tnat given by the
Foundation.
Dr. Butler said Mrs. Carnegie had invited us to hold our December
meeting at her house in the room where the Foundation was
organized 25 :lears ago.
May 9, 19:35. 8, 86, 87.
IT
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
13.
Cartoon of C.E.H.
By Berryman.
At dinner of Woman's National Democratic Club.
Mar. 27, 1935. 57.
Castle, Mrs.
Bertie meets, at lunch witn Bessie Lovett.
Feb. 5, 1935. 35.
Cause, Removal for
Sen...te bill gives Pr -sident pow-r to remove any member
of Board
for cause.
July 7, 1935. 132, 142.
(This clause is in the bill as enacted. It detArays tne
independence of the Board. This clause was in the origina
l
Federal Reserve Act and Wilson interpreted it as meaning
subject to the will and pleasure of the Presid nt. See
C.S.H. comment from Tilson which conteined sucn a clause.
Glass, in ban:- ing bill of 1933, struck out t-is clause in
order to make the Board more ind-pendent. Now it is restore
d
in banking bill of 19:15, leaving trie tenureof Board members
practically subject to the pleasure of the President. This
takes away tne last vestige of independence.)
The insertion of removal for cause was undoubtedly for
purpose of avoiding the decision of Suoreme Court in the
Humphrey Case.
The President could as-Agn almost any reason as "cause" and
the
Courts could not overthrow it.
Since the Banking Act of 1933 the Board mmber., have had an
assured status, as no power of removal was specifically granted
.
Now tnat is all changed.
July 25, 1935. 155.
See - Glass
Central bank amendment.
Proposed amendment to Banking Bill of 135, fvoril, a central
bank w s overwhelmingly defeated in the Senate. 59 to 10.
July 26, 1935. 157, 158.
Chairman, Board of Governors.
Roosevelt announced that he would aepoint Gov. Eccles as ti,e
Chairman of Board of Governors.
Sept. 18, 1935. 189.
See - Thurston.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14.
Chase, Howland
Wyatt recammended rIn increase in salary of (:500 for, and
then rent on and said his work in some repects had been
poor.
suspects he wants the Board to drop nim!
C.S.H. does not agree with niscriticism of Cnase.
Jan. 1, 1935. 2.
Salary Committee favored $250 increase for Chase end Dubois.
April 29, 1935. 78.
See - Salaries
Chase National Bank. 1
- See - Clayton Act.
Cicero.
158.
See - Brutus
Glass
Class C directors.
Bowd sent out circular that it would not reappoint, in
brancnes for more tnan total 6 yeer term.
The Board members seemed to doubt the wisdom of such a policy
being put out publicly but finally yielded to Gov. Ecclepersuasion.
C. .H. did not on ose the general principle but doubted tne
expediency of announcing it in advance, As originally
drawn it would have lieli_ted Lee term of a F.R. Agent to
6 years.
Today Owen D. Young wrote teudering nis resignation as Class
0 director and Deputy Federal Reserve Agent, saying that
altno nis term did not expire until next year, he was
unwilling to remain in office contra to tne expressed
Board. A nice mess!
policy of
Jai.. 11, 1935. 9, 10.
At tne meeting yesterday, Gov. Eccles became very ngry with
tne Board because it discussed again tne propriety of
limiting eilectors terms to 6 years.
He said he dispaired of ti.e Board's ever being able to
transact
The trouble was with Goy. Ecclee himself.
C.S.H. criticis-d the order with Morrill 1%ho had to take it
up with Gov. Eccles over tne telephone!
Jan. 19, 1935. 17.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
15.
Class C directors (Contld.)
The Board is opposed to a 6 year limit for Class C director
s.
Miller is opposed to such alimitation.
Feb. 4, 1935. 29.
Clayton, Mr.
19, 156, 168
See - Eccles, Gov.
Retirement provision
Jon,
-s, Jesse
Clayton Act
Board decide,: to grant temporary permits for one year, .pending
action by Congress, to all pending atO.ications.
Jan. 1, 1935. 1.
Gov. Eccles and C.S.H. favored a plan.
1.
To refuse where there is competition except in
extraordinary circumstares.
2.
To grant permits where there is common
3.
Not to accept relationships valick.ted by Board.
tock ownership.
Board would not accept this, but voted as above.
The vote would authorize permits to Chase National Bank directorz'
,
and City Farmers Loan & Trust Co.
Jan. 1, 1935. 1.
Miller, while Board was consid-ring Sec. 32 of Glass bill of 1933,
arguing that it snould be modified, - .3oved it to be thc _ense
of the Board that all interlocking directorships should be
abolished, without exception, Wyatt to prepare an amendment
accordingly.
C.S.H. agreed on principle if it were a new :natter, but said that
to pass this now would be looked on as more radical than
anything in tae proposed banking bill; that the surest way
to defeat the banking bill would be to -nact such an amendment.
C.'=.H. moved to lay it on table.
Carried:
Aye: Gov. Ec-l-s,
Thomas.
No:
.S.H., Szymczak
Miller, James.
Mau 1, 1935. 80, 81
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
16.
Codman, Mr. and Mrs. Ryssell
We took tea with 'opley Amory to meet.
March 21, 1935. 57
Cold, C.S.H. 67, 68.
See - halin, C.S.
Collins, Mr. 4.
See - Giannini
Colonial Dames. 73
See - Freeman, Bishop
Columbus, Onio. 37.
See - Banking Lill
Eccles, Gov.
Conference report.
See - Retirement provision
Com-otroller of Currency
Roosevelt sent Banking Bill of 1935 to respective
Cou.iittees
merely saying it wa- prepared by, Crowley an Gov. Ecrle
wno would explain it.
Feb.
1935. 33.
Luncnes with C.S.H.
He said McAdoo and Glass told him the other day they were
confident
they could defeat Gov. Eccles conlirmatLon.
He said the "Treasury boysn were very z:ngry with Gov
for agreeing to cnanges in the Banking bill.
Eccles
He said Under Secretary Coolidge was more responsible for te
bill than anyone else.
Mardi 27, 1935. 67.
C.S.H. was of gret.t help to Sec. Morgentnau in inducing
board
to offer to, the Chairmanship of Federal Reoerve Bank,
San FranciE.co. 93.
See - Federal Reserve Bank, San Francisco.
Refused to vote on C.S.H. motion to transfer Edmiston, Gov.
Eccles assistant, to Division of Statistics. After vote,
refused to make it unanimous.
June 12, 1935. 112.
Told Thomas that C.S.H. made an analysis of the very complicated
situation growing out of the ouest_on of a voting remit to
Transamerica Comoany, of wonderful clearne2 and ability; that
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
17.
CorarArcller of the Currency (Contid.)
he had rarely heard any case presented so ably and
yet
July 29, 1935. 159.
Comoromise
Gov. EccleE ztt.tes Roo:evelts s compromises as to Banking bill.
June 14, 1935. 1.13, 114.
See - Roozevelt
Conant, Dr. Presid,
-nt, Harvard
C. S.H. attends dinner of Harvard Club in honor of.
April 23, 1935. 76.
See - iit=..rva,rd Club.
We dined with
r. & Mrs. Bliss to meet.
April 24, 1935. 76.
See - Dinners.
Conf,:tence
At Treasury z:ttended by See. Morgenthau, Oliphant,
Gov. Eccles, et al, to consider amendment:, to banking law.
No other member of Board invited!
Gov. P-'ccles had no authority to speak for our Board.
extraordint.ryl 21, 22.
Jan. 29, 19.5.
This is
See also - Roo evelt. 113.
Confirmation by Senate
Miller was confirmed for a 12 year term on Board.
Jan. 23, 1935. 21.
Comptroller told C.S.H. that McAdoo and Glass told nim they
were confident they could defeat, of Gov. Eccles.
Mar. 27, 1935. 63.
Senate Sub-comi:iittee voted to report Gov. Ec3les name favorably.
A-oril 22, 1935. 75.
See - Eccles, Gov.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
18.
Connolly, Tile :Asses
Eleanor sent me a very sweet leter of sympatny for George's
deatn wnicn I answered today.
July 2 , 1935. 157.
Ane dies today at Blue Ridge Surnmit.
Sent. 10, 1935. 187.
C.S.n. writes Eleanor.
Seot. 11, 1935. 167
Conrad, Tne ".asses
We take, with Edith Helm to a tea at Asst. Sec. Moore's in
'irginia.
19, 1935. 96.
C.S.H. his, at luncneon at Ccsm)s Club.
Aug. 25, 1935. 181
C.S.H. luncnes with.
Set. 15, 1935. 187.
Controversy
Between Miller and Gov. Eccles over transfer of Edmiston.
:7arca 27, 195. 61.
Coolidge, Charles
Meigs:, our professional adviser, said taat tie plans of,
for tne F.R. building were among tie poorest submitted.
May 18, 1935. 95.
Coolidge, Under Sec. of Treasury.
Gov. Eccles said the Banking bill came from Sec. M., Olici,ant,
Viner, and.
Jan. 18, 1935. 16
Gov. Eccles Lid Roosevelt nad leferred tae draft of Banking _ill
to National Emergency Loan Comraittee, of wnicn Sec. M., Under
Sec. Coolidge, Oliphant and Gov. Eccles were membErs.
Feb. 4, 1935. 29.
Writes Met. Club favoring election of Sec. Morf;entnau.
Feb. 4, 1935. 30.
Reads to Banking and Currency CouLLitte of H.R. a short
statement on the banking
Mar. 21, 1935. 56.
The above statement was weak and sophillurical :.11(1 gave the
Com-Attee little iniormation.
He favored an open market committee of 5 members, the Governor
of Board, the Board members and two Governors of F.1. banks.
He did not mention tile
different plan.
act that Gov. Eccles had
Mar. 21, 1935. 57,
vorEd a
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Coolidge, Un„ r Secretary of Tre—uxy (Contld.)
Tne Comitroller t Ld 3.S.H. talt Coolidge was more
responsible
than anyone else for tn Treasury draft of the
Banking bill.
Marcn :.r/, 1935. 63.
Gov. Eccles g. ve Board the history of the Open
Market Co:. ittee.
He ,aid it was at first a Board of 2 Governors and
3 members of tne
Board, out witn absolute power in the whole Board
to settle
tne policy; that early Monday mornine Sec. Morge
ntnau insisted
on striKing out the power vested in the wuole Board
; that
later in tne uay Roosevelt , ent the bill to the respe
ctive Co. miie„ce
Gov' Eccle: said ne objected to striking out tne pcecer
vested in
tne fell Boord but was outvoted by Moreent-au, Olipn
ant,
and Undet Secretary Coolidge.
May 1, 1935. 80.
Gov. Ecclessaid Coolidge was tne one wno setled tue
first
draft of tne banking bill.
May 1, 19-5. 80.
Gov. Eccles said Coolidge was a nard boiled banker
wnose wisn
was to do wnat tne bankers wanted.
May 1, 1935. 80.
Gov. Eccles reported a conference held yesterday in
the Trewury
at wnich Sec. M., Coolidge, Tom Smith, Gov. Eccle
s, -tc.
were pree6nt.
He said that aiter a long discussion tney talke
d witn Roo—velt
wno stated hi e views on the banking bill.
June 14, 1935. 113.
See - Roosevelt
Papers :ay Coolidge is taking up tne banking bill
witn tne
Comi,iittecs, in behalf of the Treasury. This looks
like
a blow at Gov. Eccles.
Aug. 8, 1935. 164.
Gov. Harrison, in answer to a quetion from Szymczak,
sid ne would
prefer to nave Coolidge made Cnairman of tL.e
Board of Governors.
Sept. 20, 1935. 190
Coolidge, Sen.
Voted agcinst joining World Court.
Jan. 28,1935. 22.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
20.
Cooper, Dexter
We had, at dinner at Woman's National Democratic Club.
June 13, 1935. 113.
Coughlin, Father
Mrs. Rooevelt told Bertie that the defeat of the World Court
entry was due as much to Will Roger7 end Hearst as to
Father Coughlin.
Feb. 8, 1935.
Counsel, Honorary
See - Honorary Counsel
Covington, Judge and Y.rs.
We dined with.
Feb. 25, 1935. 45.
Dine with us to meet Sec. end hrs. Morgenthau.
Mnr. 13, 19.5. 53.
Cow nasture, Boston
George writes that a Federal inve;tigator for Sec. Ickes
hes been in Boston or several days, looking over the
land from tne point of view of national defense, and is
very enthusiastic about it.
He said the plan was in 1ix
done in Boston Harbor.
with what the Goveraaent wants
He said he had consulted the "Var, Navy and Airplane Departments
and they were very enthusiastic about it.
He said the Government would ,ake the land for develonment of
Pier I and do the whole work itself, paying for it in
its entirety, and arrange for operation of the Pier by
the Terminal Com-eany, with tie rignt to repurchne;e it in,
say, tnree years, on raying back to the Gov rnalent what
it cot bo build it.
He c:aid it would help materially in getting from ti
the approval of the rest of the project.
He said there would be no delay about Pier I, but he did not
know wnether the necessary naners would be ready before
Anril 1 or not.
Mar. 7, 1935. 49, 50.
Bertie wrote Sen. Walsh asking for an am, intment.
Sen. Walsh answered saying Ile would be glad to see her at any
ti:ae; teat lately he had been looking into the matter;
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
21.
Cow uature (Cont'd.)
tnat tnere were some requirements of tne R.F.C.
wnicn xiad not been met, as also the que t ion of
July 20, 1935. 150.
Later ti e a.m. a man representing Hodsdon - I tnink tie na,e
was Warne - called uu Bertie and aid ne had seen
Sen. Walsh and would send her a brief on Tuesday covering
the'hole matter.
He said it was most unadvisable for Georve Jr. to see Sen. Walsh.
July 20, 1935. 150.
Bertie wrote George Jr. and. Ned. Sne retained co ies.
July 20, 1935. 150.
Bertie received an extraordinary letter from Hodsdon, wnom she of
course had never met, bitterly attacking Roosevelt as a
politican, suggesting some political trade witn nim to secure
funds from R.F.1., and telling her she ou.gnt to talk to
Mrs. Roosevelt, on grounds of sympathy, etc. etc.
Sae never answered this nor diu sne acknowledge it.
July 24, 1935. 152.
Bertie wrote Sen. Walsh saying sne had been .sked to seek an
interview with Roosevelt, but tnat she was unw lling to do
this and would not; that sae could speak only from tne
vieweoint of self fltereet in sellinte tne land and not from
the point of view of public interest in buAding up Boston
docks and terminals.
July 4, 1935.15
C.S.H. sent Hodsdon's letter to Bertie to Edw. Hamlin.
copy of George Jr.'s letter.
Also sent
C.S.H. told Edw. Hamlin what Bertie was writing to Sen. Walsh.
July 2e, 1935. 152.
We prepared a proPosed draft of letter for Bertie to wend to
Sen. Walsh and sent it to I:ed for suggestIons.
Latex we called nim on tne telepixne and told nim.
would nave it back to us by Tueeday morning.
Aug. L.;, 19b. 161, 162.
He
. id nc
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
22.
Cow pasture, Boston (Con- 'd.)
Bertie called on Sen. Walsh at tae Carlton in tee lob,y by .
appointment.
Sne gave nim the draft of letter to send in eis name to
Sec. Ickes, and also a personal letter saying that she was
interested in the plan, as a public enterprise, to develop
Boston, elso as a stockholder of the N.E. Terminal Trust,
naving ap,reed to accept 1/2 of the purchase price in stock
of the American International Navigator Company.
Sen. Walsn read the draft of letter to Sec. Ickes and said ne
would be gl d to sign and send it at once.
he seemed ratner despondent about the cow pasture, saying tnat
Boston was declining and in tne u red."
Bertie said we could turn tee red into black if we had modern
terminals and cited tee Port of Albany waich is now doing
a very fair business, but st rting merely as a landing place
for the Albany night boat.
This seemed to impress nim.
He said pressure should be brougnt by Boston liariti.se interests.
He also said the entire Mass. delegation favored the plan and nad
left ,nematter in is Lands.
Bertie a -ked him if George Jr. saould Try to see AO0SeVlt and ne
said no reason wny ne snould not.
TLen Bertie left him ne seemed much more cheerful.
Aug. 6, 1935. 162, 163.
We both teougnt it unwise to nave George Jr. ask Roosevelt to ask
Ickes to give immediate consideration of the aLtter, as it
mignt offend Ickes.
Aug. 6, 1935. 163.
We called up Ned, but only could get George and told him of above.
Aug. 7, 1935. 164.
Bertie received nother Impudent letter from Hodedon, again
urging her to use ner friendsnip with Roos-velt and Mrs. Roo
to get money Ion nis company.
vit
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
23.
Cow pasture, Boston (Contld.)
He objected to any letter asking coneid.rztion
He said ne saould -out it tnrougn by political pre
the cicision on the merits.
tne merits.
ure, .natev.er
He also said he had a claim of $1,200,000 for engineering and
architectural fees, but diu not say against whom, whetner his
corporation or the N. Terminal Trust.
Aug. 9, 1935. 163.
C.S.h. sent this letter to Ned : aying tna Bertie would not even
:
,
acknowledge it and said thot Ned should make it clear to Hodsdon
that Nedis only relation to Hodsdon or his caaapy was that
of granting an option to nim to buy land from N.e. Terminal Truet.
Aug. 9, 1935. 165.
C.S.H. writes Ned suggesting that any future option to Hod_don should
be for full payment in cash ritain a reasonable time.
Aug. 11, 193:3. 166.
George Jr. called III: C.S.H. and
tonif7nt.
aidhe was going to Wasnlngton
C.3.H.said net to dome unles Hodsdon consented, as if anytning
went wrong he might bring suit against nim and Ned, as their
only interest was tnat they nad given Hodsdon an option.
He 4greed to postpone coming until tomorrow ni.gat.
He said he agreed to what C.S.H. 'aid and would see Ned at once.
Aug. 12, 1935. 16p, 169.
C.S.H. wired Ned to be sure and get Hodsdonls consent to George Jr.
going down, on the understanding that George will rarrely ask
a decision on the m- rits.
Aug. 12, 1935. 169.
Geor.fe Jr. suddenly anneared before C.S.H. was dressed, having sent
no previous notice.
With C.S.H.Is 'neln he wrote a letter to Roos-velt a&eing for an interview,
and if that was not possible, that he might be given information
as to the status of Hodsdon's netition. He gave as his reason
that he was considering, on behalf of his Father's estate, renewing
the option to Hodsdon.
He went to Whit House and sent in the leter to Miss LeHand, who
directed 1Cm to Mr. McIntyre, Secretary to RooevrIt.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
24.
Cow pasture (Contsd.)
He went to McIntyrels office
and sent in the letter. Aft
er mite
an interval, his letter was
returned to him together wit
h a
letter written by McIntyre to
Col. Haskell, of the P.W.A.
•
The letter asked Col. H. to
give George full informati
on as to the
status of Hodsdon'l applicati
on.
George tnen went to Col. Has
kell, who was out, but
George saw
Col. Copp.
George waited 3 4 of an hour
/
and finally Col. Copp tol
d him the
application had been reported
unfavorably by 3 departments,
Law, Finance, and Engineering.
He told George it was a dam
ned shame that a plan approv
ed by so many
public bodies had not been pro
perly carried out zald he
intimated
it should be presented by some
local oublic Body.
George thinks he may have mea
nt the State of Mass.
Aug. 14, 1935. 169, 170.
C.S.H. at once wrote Ned and Ber
tie and told her also over
the
telephone.
C.S.H. told Ned he believed tha
t Hodsdon had known all alo
ng that
his plan had been turned down
and had deliberately deceiv
ed Ned.
Aug. 14, 1935. 170.
George said Tappan believed sti
ll that there was a fair cha
nce of
working out tne plan through the
bank-rs.
Aug. 14, 1935. 170.
C.S.H. believes that tne P.W.A.
looked un Hodsdon's record and
found
it not good.
Tappan has always said he was
a crook.
George left on the Federal.
Aug. 14, 1935. 170.
C.S.H. wrote Ned to be sure to
get the contents of tne advers
e
reports, and added, tnat while
disappointed, he was not
discouraged.
Aug. 16, 1935. 173.
This A.M. Hodsdon called me on
telephone from some place in
Washington, at Ty office, and sai
d he wanted to see me.
I was perfectly courteous but dec
lined to meet him, saying
I had
nothing to do with his matter
s and must refer him to
Boston.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
25.
Cow pasture (Contld.)
He said he thought we should confer and C.S.H. agein declined.
He ken referring to me as "Charlie" although I hac never met him
or had any communication with him.
Aug. 17, 1935. 174.
Ned wrote that Sen. Walsh had asked Hodsdon to come to Washington
and that he could then settle the matter. This sounds strange.
Au. 17, 1935. 174.
m;.F.H. wrote Ned at once as to Hod don.
Aug. 17, 1935. 174.
During my 2 weeks vacatien .t YAattuoieett, I talked much with Ned
about the cow pasture.
He
aid he had told Hodsdon tept George Jr. would not consent to
any further ont ion.
He seid George tried to see Gov. Curley but could not.
He hopes to induce Gov. Curley to have the State seize tee cow
pasture.
Sept. 8, 1935. 165.
Ned said George contends that the joint notes given by George
and Ned to Harriet and Jane have been more than paid; teat
the "gifts" made to them by Ned and George were payments
on tee notes, and that in fact they have paid not only the
interest and principal, but in fact have made an"overpayment
of principal anounting to some $21,0001"
Yesterday Ned gave me a sworn stetement, verified before a Notary,
to effect that tee principal of the notes ha- never been
,
naid; teat tee sums mentioned by George were all gifts made
by them; that they regulprly deducted from teeir income tax
the interest raid on their notes.
Sept. 8, 19:35. 185.
Last week Nea said Hodsdon had told him t1Lat he had elected him
as a director of his cor--)or,Ition.
At C.S.H.Is advice, he at once wrote Hodsdon declining to serve.
Seat. it, 195. 187.
.
Lt. S H.
received a letter from Taopan, dated Sept. 17th, saying
that the notes in nuest ion were dated Larch 1, 1917; t—at
tee note to Harriet was for $23,161.98 and teat to Jane
was $24,4' 6.31. he said teece notes stated;
,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
‘`..";6.
Cow pasture (Cont'd.)
us.' cured by mortgage, Tenlan Street"; that the notes
have no indorement of payments of either principal or
interest; th;...t George's ledger has an account for the
notes Showing that from March 1917 to Dec. 1934, a total
of payments was made amounting to $89,768.79, that the
ledger does not dhow the ,
InA.ication of time oayments
as between principal and interest; that, , omouted on a
yearly basis, apolying balance over each interest payment
to reduction of the principal, would leave a net of
$21,961.27 which was an overpayment of principal to that
amount; that up to the early part of 1931 the payments
made paid off the principal and interest, wince which
date all payments - amoUnting to $21,144.78 - have been
overpayments of principal..
He also said his Counsel oassed -).pon the cruestions:
1.
Any nresent liability on time notes?
2.
Any lien on the Tenlan property? especially as no
mortgage was ever made or record d?
He sz,id Counsel had answered both in the negative.
He said Ned's
tatements were contradictory;
1.
He claims that liability on the notes stilL
exists.
2.
All 7,ayments over interest due were gifts.
3.
Yet he has claimed that proceeds from sale of
Tenean property can be used to Pay taxes
on the cow pasture.
He asked C.S.H. to write him what he knows about these
matters, so that he can present further fects to his Counsel.
Sent. 1, 1935. 188, 189.
Crisis of 1920.
Wall Street journal stated
at failure of Board to p-rmit
Federal Reserve Baxkof New York to increase discount
rates from 5 to 6.=; in 1929 di. not show independence.
.
If the Board had weakly succumbed to the wishes of Federal
Reserve Bank of New York and of Sec. of Treasury,
Gov,
:rnor and Den. Governor of Board, perhaps the Wall Street
J6urnal would have called the Board "independent".
June 5, 1935. 103.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
27.
Cr sis of 1929 (Centld.)
Miller has just made public a review of the crisis of 1929, - a
severe arraignment of Federal Reserve Bank, N. Y.
June 22, 1935. 120, 121.
Glass , in Senate, sided with Federal Reserve Bank of New York
in crisis of 1929.
Tnis is utterly inconsistent with his ear1i -7 approval of the
Board's nolicy.
June 24, 1935. 153.
C.S.H. pr-spares a memorandum showing how Glass indorsed the
Board nolicy in 1929. (See sera-) book).
5.
July 25, 19 , 153, 154, 156.
Crowley, Deposit Insurance Corp.
Roos.evelt, in sendine; the banking bill to Cong. Co=ittee said
it was in part prepared by.
Feb. 5, 1935. 33.
Curley, Gov. 185
See - Cow Pasture.
Currie, Laughlin
Miller said he thow;ht the Treasury boys had, picked out for the
Federal Reserve Board.
He 'lso said someone told him that Croy. Eccles lelt lhat the
Federal Re erve Board should consist of Eccles, Currie and
GoldenTeiser.
Mar. 26, 1935. 60.
B. M. Anderson nublishes a scathing attack on Currie's book.
May 11, 1935. 88.
Some time ago, Currie called on C.S.H. favoring an inve-tigation
of deposit iccounts of banks.
C.S.H. said he had no objection but that the banks should give
the information to the Board so as not to disclose names of
depositors, but riat nothiw could be done until the
Board aprroved it.
It seems some letter was sent to banks rising a hue and cry that
Board favored a 100% reserve, which, of course was absurd.
Aug. 27, 1935. 184.
(Later, the Board took this no. The Comptroller suggested
limiting the inquiry to closed banks and favored it
to this extent.
AO
Board aroved this and asked for an allotment from some
other department to carry it out.)
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
28.
Curtiss, Fedora1 Re:rve Agent.
125, 180.
See -Federal Re-orve Bank, Boston.
Cutting, Sen.
Votes to enter World Court.
Jan. 29, 1935. 22.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
29
-D-
Daiger
Told C.S.H. the H.R. Committee had adopted an amendment
permitting members to hold over until their succes:ors
are appointed, and also authorizing the President, in
spite of tne age limitation, to refixmoint members wno
were holding office on July 1, 1935.
April 16, 1935. 73.
Told C.S.H. tie bi-partisan clause would probably be dropped.
Aug. 10, 1935. 166.
Daniels, Josephus
103.
See - Brandeis, Justice.
Dtmish Minister.
We meet, at luncn with Mr. & Mrs. Flint.
April 7, 1:)3c). 69.
Davi
Mol en
Addresses Woraanl s National Dell. Club on Lerzue of Nations. It
was well done.
Jan. 9, 1935. 3.
DeLabaulaye, Madame
Called on us.
Madame deWitn and Miss de Pallandt almrwere there.
Jan. 17, 19:35. 14.
DeModist, Miss
Dines with us at Woman's National Dem. Club.
June 13, 1935. 113.
DePallandt, Miss
5, 14, 18, :T), 39, 74, 83.
See - Boreel, S.
DeWitn
Roosevelt, ':rs. James
DeWiti., Minister and Madame
Bertie received a letter from Miss Turnbull, Secretary of
Madame deWitn, as follows:
Netnerlands Leon
1470 Euolid Stri
Monda
My d ar Mrs. Hamlin:
Madame V. H deWith asks that I thank you or your
very kind note. Due to the great pressure of engagements
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
30.
DeWith, Minister and Madame (Cont'd.)
and to being ill, as -ell, Madame DeWith
is not receiving in the afternoon. How Ner
she hopes that you. received her card for
the reception on Wednesday afternoon the
9th and that she and the Minister will have
the pleasure of seeing you lad Mr. Hamlin
that afternoon.
Sincerely,
Marion Trumbull,
Secretary.
A rather belated reply to a note sent two weeks ago! Howevtz,
this seems to clear the air as to Mad Jme de With, but how
,
as to Miss de Pallandt?
Jan. 7, 1935. 5, 6.
Miss Patten called and was very curious to know Whether Bertie
was going to the DeWith's tea. We gave her no information
and did not even mention Miss Trumbull's letter.
Jan. 8, 1935. 6.
Bertie went to Madame DeWith's tea. It was early when she
went and very few were there.
Miss DePallandt was not in the receiving line. Bertie did not
even see her, and, naturally, did not try to find her.
Neither DeWith or Madame DeWith seemed to know her when she shock
hands with them.
Bertie left a card for Madame DeWith, but none for Miss de Pallandt.
Thus endeth the lesson!
Jan. 9, 1935. 7.
idith Helm said Mary Patten called and was very anxious to know
whether Bertie met Miss deallandt at Madam deWith's tea.
She told her she knew nothing about it.
Jan. 13, 1935.13, 14.
Madame deWith and Miss de Pallandt called on us. They met
Madame de Laboulaye, wife of French Ambassador who was also
calling on us, and they seemed very muCh impressed.
They were with us over half an hour and we had a very pleasant
chat. Nothing, of course, was said about their failure to
call before.
She said Harriet Rice had written inviting tLem to Albany and that
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
31.
DeWith4 Minister and Madame (Contld.)
she hoped to go there later.
C.S.H. wrote Sophie Boreel as to above.
Jan. 17, 1935. 14, 15.
Bertie receives an invitation to lunch from Madame deWith to
meet Mrs. Hull.
Jan. 19, 1935. 18.
Bertie sent an invitation to Madame deWith and Miss deallandt last
Saturday to dinner at Woman's National Dem. Club to meet
Sen. Gerry who was to speak on the Navy. No answer yet.
Jan. 22, 1935. 18.
Sophie Boreel, in a letter from Prague, dated Jan. 16th, writes
that it appears that Madame deWith is "very ill bred
and rude, but there may have been some misunderstanding
Jan. 26, 1935. 21.
Miss de Pallandt is still with Madame deWith, as the papers
Feb. 2 1935. 25.
announced this a.m.
Bertie attends lunch of Madame deWith, in honor of Mrs. Hull.
Madame Van Brengel was there and told Bertie that Miss
de Pallandt wanted a position in some Department or as a
colqoanion.
Madame deWith told Bertie she had a most interesting call on
us and sent her love to C.S.H.
Madame Van Breugel said she had been ill for 4 months, but
did not say for what cause.
Feb. 13, 1935. 39.
The papers announced that Madrane deWith would receive today Washington's birthday - aftr-r 4 p.m.
We called at 4:20 but were told she would not receive until
5 p.m.!
She certainly is a somewhat erratic person!
Feb. 22, 1935. 44, 45.
Last week C.S.H. sent Sophie Boreel a book by Pi-rson which
criticized DeWith severely.
Sept. 8, 1935. 186.
Deaths
See - Baker, Ray
Hamlin, Geo. P.
OlivPr, Geo
Robins, Warren.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
32.
Delano, Architect
Plans of, for Federal Reserve building, were anong the poorest
May 18, 1935. 95.
Delano, F.
We dined with, to meet Catharine Grant and 3 of her children.
Jan. 1, 1935.
Originally appointed on Federal Reserve Board by Wilson as a
Republican.
C.S.H. ranembers
appointment
Independent
Wilson said
that Delano told him he went to Wilson after his
and said that although he called himself an
Republican he had in fact voted for Wilson; that
it didn't matter.
July 16, 1935. 141.
See - Carnegie &idols:neut. 104.
Democrat, Independent
Miller said that though appointed on Federal Reserve Board as
an Economist, without regard to politics, he considered himself
an Independent Democrat.
C.S.H. has j.l.st found clipping from N. Y.World saying Miller was
appointed as an Economist. See scrv book.
July 16, 1935. 140.
Democratic defeat, R.I.
By election of Congressman Republicans won by 139,000 in a strong
Democratic district.
A severe blow to N.R.A.
Aug. 7, 1935. 164.
Denton, Martha Louise. 111
See - Hanlin, Hannibal
Denton, Mrs. 110
See - Hamlin, Hannibal
Deposit accounts.
Board authorized investigation of, of failed banks.
Broader authority asked for by Currie, but not granted.
Some papers made foolish claim that this meant 100% reserve!
Aug. 27, 1935. 183, 184.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
33.
Devaluation.
Miller said Roosevelt Showed strain; that he must put an end to
uncertainty; that if he wants further devaluation or an issue
cf greenbacks, he should bring it about at once, or he should
at once disapprove further inflation.
Mar. 7, 1935. 50.
Diaries of C.S.H. 100
See - Glass
Dinners. (See also, Breakfasts, luncheons, teas.)
With Delano to meet Catharine Grant and three of her children.
Jan. 1, 1935. 2.
We had Janet Fish at Dem. Club to hear Sen. Gerry.
Jan. 25, 1935. 21.
With Edith Helm.
Met Mrs. Herrick and Mr. Lombard, of French 1Wbassy.
evening.
Fel) 2, 1935. 27.
Delightful
With Mrs. Neff.
Ta meet Mrs. Hull.
Feb. 4, 1935. 30.
See - Hull, Mr.
With Rev. Barney Phillips to meet Sen. & Mrs. Robinson.
Feb. 16, 1935. 40.
With Judge and Mrs. Covington.
Mrs. Wilson and Justice McReynolds were there.
Feb. 25, 1935. 45.
At Woman's National Democratic Club.
Mrs. Meigs elected President.
C.S.H. sat beside Miss Perkins, Secretary of Labor.
Feb. 27, 1935. 46.
With Miss Meigs.
Mar. 12, 1935. 52.
With Miss Emily Newell Blair.
Met Judge and Mrs. Gronna, Sol. Gen. Biggs.
Feb. 28, 1935. 47.
We gave Dinner at Woman's National NUL Club.
Present:
Sec. & Mrs. Yorgenthau, Cong. and Mrs. Russell,
Mr. & Mrs. Corcoran Thom; Judge and Mrs. Covington;
Dr. & Mrs. Richmond; Mr. and Mrs. Gist Blair;
Mrs. Newlands, Mr. Recketson.
Mar. 13, 1935. 53.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
34.
Dinners (Contsci.)
At Woman's Natl. Dem. Club to the Carto -mist, Mir. Berryman.
Me made a cartoon of C.S.H. and gave it to H.P.H.
Mar. 27, 1935. 57.
With Mr. and Mrs. Charles Warren.
Mar. 25, 1935. 58.
With Sec. and Mrs. Morgenthau.
April 9, 1935. 69.
With Edith Helm.
April 27, 1935. 78.
With Judge and Mrs. Gronna.
Present:
Chief Justice and Mrs. Hughes
Judge Strong and Mrs. Strong;
Judge Parker (defeated for U.S. Sup. Court)
Mrs. Wilson et als.
May 11, 1935. 88.
With Sen. and Mrs. Carey.
May 17, 1935. 94.
Janet Fish dines with us.
May 19, 1935. 96
With Mr. and Mrs. Marlatt. June 4, 1935. 102.
We give dinner to Rollen Larabee and his fiancee, Miss Tully.
June 6, 1935. 104.
We give dinner at Woman's National Dem. Club
Present:
Sen. & Mrs. Austin; Janet Fish; Miss de Modint;
Comm. Kinkead; Dexter Cooper (Panama
Fred Kelly and his lady friend, Mary McLeod.
June 13, 1935. 113
With Mr. and Mrs. Bliss
Present:
Sec. & Mrs. Hull, Under Sec. Coolidge and Mrs. Smith
of State Dept.
July 5, 1935. 129.
We give dinner at Dem. Club to Mr. and Mrs Reagan Commercial
Attache at Paris of Dept. of Commerce.
Present:
Charles Eliot, Miss Patten, Miss Hornbeck
came in later.
July 17, 1935. 150.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35.
Dinners (Conti
We give dinner at Dem. Club to Mr. & Mrs. Keating.
July 23, 1935. 151.
With Charles Warren, at Washington Hotel.
July 29, 1935. 159.
C.S.H. with Schuyler Merritt.
Aug. 16, 1935. 173
Helen Bones with C.S.H. at Cosmos Club.
Aug. 20, 1935. 177.
Janet Fish with C.S.H.
Aug. 24, 1935.181.
Mr. & Mrs. Charles Glover, Jr. dine with us at Mattaooisett.
Sept. 8, 1935. 184.
Mrs. Girardeau and Janet dined with C.S.H. at Cosmos Club.
Sept. 11, 1935. 187.
Janet Fish with C.S.H.
Sept. 16, 1935. 187.
Janet Fish with C.S.H.
Sept. 23, 1935. 192.
Direct pressure.
Wall Street Journal criticises Board for refusing to permit
Federal Reserve Bank of New York to increase discount rates
to 6% in 1929, sad says such action Aid not Show independence
of Board. It seams to think that a really independent Board
would have meekly followed the Federal Resqrve Bank of New
York and Gov. Young and Dep. Gov. Platt!
June 5, 1935. 103.
Disraeli. 161.
See — Glass
Discount rates
Miller favors Open Market Committee of all of the Governors
with power to recommend Open Market policies subject to
approval of Board, with power in Board to initiate its
own policy by affirmative vote of not less than a majority
of Board.
This is practically the same as Board's present policy of fixing
discount rates.
June 21, 1935. 121.
District of Columbia tax return
C.S.H. files, for1936.
July 6, 1935. 129.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
36.
Domination, Treasury
Miller said proposed Open Market Board of 5 members would
give Treasury domination over Board.
Jan. 18, 1935. 16.
Board discussed Open !larket proposed body of 5 which Miller said
was an attempt to bring about domination of Board by Treasury
and Federal Reserve Bank of New York.
Jan. 23, 1935. 20.
Gov. Eccles laid before Board draft of proposed changes in Federal
Reserve Act, saying it was agreed upon by Roosevelt,
Morgenthau, Coolidge, Oliphant and other Treasury experts; said
he had also consulted Hecht of A.B.A. with permission of
Roosevelt. The Board was never consulted.
Feb. 1, 1935. 23.
Wyatt said Gov. Harrison went around with Glass when he received
his honorary degrees.
Gov. Harrison is a Prince of Lobbyists, and is evidently dominating
Glass.
July 30, 1935. 160.
See - Glass.
154.
Doolin, Kansas City
C.S.H. helped Administration by voting for, as Class C Director,
Federal Reserve Bank, Kansas City.
May 16, 1935. 93.
Double standard.
Sen. Thomas asked opinion of each member of Board as to silver
policy and double standard.
Sept. 13, 1935. 101.
See - James
Dunn, Dr. 82.
See - Ruffin, Dr.
Dubois, Mrs.
Told C.S.H. that her husband told her that testimony of
C.S.H. on Banking Bill was the most valuable of all testimony
given; that the newspaper correspondents all admired C.S.H.'s
courage in standing up against Glass.
June 6, 1935. 104.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
37.
Zcaes, Gov. (Also Banking Bill of 1935)
Gives a weekly press conference. C.S.H. fears he will be
criticised for this. Sen. McCall called Theodore Roosevelt
a Glutton of the LimelightJ
Jan. 1, 1935. 2.
His action in telling the press just what Changes he wants in
Federal Reserve Act may siliply concentrate criticism and
strengthen the opposition and perhaps defeat the admintration.
Jan. 1, 1935. 2.
Morrill said that Gov. Eccles, before accepting a position on the
Board, entered into an agreement with Roosevelt that the Federal
Reserve Act should be Changed so as to give the Board. power
to vpoint Governors of Federal reserve banks and greater power
over Open Market operations.
Jan. 2,1935. 3.
Thomas and Sgymczak are very indignant at Gov. Z. because he so
isolates himself from the Board and his failure to call meetings
more frequently.
Jan. 2, 1935. 3.
Szymcsik said one day he waited all day in vain to see Gov. E; that
finally Gov. Z. called him at his house; that S. told him
frankly the Board should be consUlted with more frequently;
that he did not want his place on the Board and was willing
to resign at any time if he was persona non grata to
Gov. Eccles.
Apparently a storm is brewing!
Jan. 2, 1935. 3.
Morrill said C.S.H. should not blame Wyatt for not having consulted
him as to increase of salary in the Law Division, as he felt it
was confidential between himself and Gov. Eccles and that it
would annoy the Governor.
Jan. 7, 1935. 5.
C.S.H. said while accepting the general principle that terms of
directors of Federal reserve banks should be limited to 6 years,
he felt it would not be good policy to announce it, as desired
by Gov. Z. to the public, but that it would be better to act
on it without previous annauncment of a policy, always remember*
that special circumstances may often call for longer terms by
way of reappointment.
Jan. 11, 1935. 10.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
38.
Eccles, Gov. (Also Banking Bill of 1935) (Contld.)
Gov. Z. gave Board a copy of the changes in Federal Reserve Act.
prepared by the Treasury Committee, including himself.
He said he put them in a list of other changes suggested by other
departments, and gave them to Roos-velt, but that they were
not considered at that meeting with Roosevelt, which was a
meeting of the Executive Com ittee in Legislative changes.
He said he was glad they were not taken up as he did not want to
discuss them with the Ra.C., Federal Dep. Insurance Corp. etc.
Jan. 18, 1935. 15.
As our Board had never previously seen these ciinuges, C.S.H. asked
if the Board was expected to go over them and study and report
on them.
Gov. E. said yes.
On Miller's questioning, however, Gov.Z. said Roosevelt had Rd
asked for any opinion from our Board.
Gov. Z. apparently wanted us to consider and vote on them so as to
advise him personally.
Miller said we ought not to consider them unless personally asked
so to do by Roosevelt.
There was some informal discussion an them by the Board.
Gov. Z. said that the draft came from Viner, Under Sec. Coolidge,
Oliphant and sec. Morgenthau; that the Legislative Committee
had drawn bills to put the changes into effect.
Board decided to consider the matter on Monday or Tuesday and decide
What to do.
Miller informally strongly apposed the Open Market provisions saying
that they would make the Treasury and the Federal Reserve Bank
of New York supreme.
Gov. Z. admitted this but said somebody must be supreme, and that he
felt himself almost forced to accept the "gonetary Authority plan"!
C.S.H. felt that, on the whole, the Olarges proposed in the draft were
mild and many inconsequential, except the provision that 2 members
of the Board should have experience as executive officers
under the F.R. System, which C.S.H. strongly opposes.
Jan. 18, 1935. 16.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
39.
Eccles, Gov. (Contld.)
At the meeting yesterday Gov. E. became very angry with the
Board because it again considered the propriety of limiting
terms of directors to 6 years.
He said he despaired of the Board's ability to transact sAir ausiness.
C.S.H. believes the trouble is with Gov. E. himself.
C.S.H. in considering the proposed letter had to be carried on
by telephone with Gov. E.
Goy. E. is becoming quite peevish. If he would pay more attention
to his work things would go along better.
Jan. 19, 1935. 17.
The N.Y. Journal of Commerce had an article this a.m. in which
Gov.E. criticised the banks for having such large excess
reserves, stating that it showed they were not doing their
duty in making loans.
ThP article also stated that the business directors of the Federal
reserve banks might all resign because of such attacks.
C.S.H. feels Roosevelt should pgt a stop to these weakly press
conferences.
Jan. 19, 1935. 171 18.
Clayton asks for copy of proposed changes given him by Gov. E., saying
he would return it later.
Thomas said Clayton got his copy also.
Jan. 22, 1935. 19.
C.S.H. hears that Gov. E. is with Roosevelt today.
C.S.H. assumes these copies are wanted for the "Treasury boys" in
conference with Roosevelt.
This seems extraordinary.
A conference between Gov. E., the Treasury boys and Roosevelt as to
changes in Federal Reserve Act without consultation with our
Board!
Jan. 22, 1935. 19.
Gov. E. returns to Board members their copy of Federal reserve Act
changes.
Jan. 22, 1935. 19
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
40.
Eccles, Gov. (Cont'd.)
Gov. S. said the controversial matters at the end of the
memorandum were being worked out by Wyatt, Await, Wilcox; that they
did not include the suggested changes in Federal Reserve Act
which Roosevelt had referred to the Loan Agency Committee;
that he was to present them to Roosevelt on Friday,
We asked if Roosevelt had asked our advice and he said No.
Jan. 23, 1935. 19, 20.
Board informally discussed the Open Market provisions which Miller
said were designed to enable the Treasury and the Federal
Reserve Bank of New York to agree and then dominate the Board.
Jan. 23, 1935. 20.
Gov. .11. said the provisions RS to the Open Market Committee was
a compromise; that Gov. Harrison wanted to have the
Governor an ex.afficio members of the Committee,
Evidently Gov. Harrison has been pressing this before the Trealry
Committee without the knowledge of the Board!
This provision called for a Board of 5 members of which 2 should
be Governor without any control on part of the full Board.
Miller sdd he would fight this to the bitter end.
Gov. 1. said he would prefer to have the power and responsibility
placed directly on the Board alone, but he could not get it.
Jan. 23, 1935. 20
A few days ago the N. Y. Times referred to a conference of the
Treasury officials, attended by Oliphant, Morgenthau, Gov.E.
and others to consider amendments to Federal Reserve Act.
No other members of our Board were present.
Gov. S. had no authority to speak for our Board.
This seems extraordinaryl
(See scrap bcok)
Jan. 29, 1935. 22.
A meeting was called for 10:30 a.m. to consider important questions
as to Open Market policy etc.
At 10:30 Gov. E. sent word that he was in a Treasury conference and
asked postponement to 11:30.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Zccles, Gov. (Conttd.)
At 11:30 he sent word that he was ill with laringitis.
Jan. 30, 1935. 22, 23.
Gov. Z. said the proposed bill had been changed to fix the same
salary as that paid to Associate Justices of Supreme Court, without
mentioning the anaunt of the salary.
Jan. 30, 1935. 24.
Gov. Z. said he preferred to have Governorsof rederal reserve
banks appointed by the Board but that the Treasury Committee was
unanimously opposed to this.
Jan. 30, 1935. 24.
Gov. Z. also discussed the Open Market Committee provisions to
which Miller had strenuously objected.
C.S.H. is inclined to accept the idea of a Joint Committee of 2
Governors and 3 members of the Board, as the Board is given power
of final approval or disapproval.
Jan. 30, 1935. 24.
Szymczak insisted that our Board be given power to appoint all
Governors, and not be limited to power to confirm these app,intments
Jan. 30, 1935. 24.
C.S.H. believes retirement clause is badly drawn, for retirement
means - before a term expires, and the subsequent clause that
refers to the expiration between the ages of 65 and 70 years
shall be considered retirement excludes by necessary implication
terms expiring after the age of 70.
Under its term C.S.H., aftrr 21 years of service, would get no
retiring allowance, while a member whose term expire between ages
of 63 and JO would receive an allowance even if he had served only
5 years.
Jan. 30, 1935. 24, 25.
Gov. Z. said Government bonds were rising rapidly and a slump might
follow which might injure Government credit, and that the
Executive Committee ehauld be given authority, between Open market
meetings, to buy or sell up to 250 millions.
Jan. 30, 1935. 25.
Miller asked Gov. Z. whether Morgenthau asked us to give this
authority.
Gov. Z. said No and added that the Treasury cauld accomplish the
same result through the R.F.C., Deposit Insurance Corp. etc.
Jan. 30. 1935. 25.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
42.
Eccles, Gov. (Cont'd.)
Gov. E. said it was the duty of the Board to stabilize
the bond market.
Jan. 30, 1935. 25.
C.S.H. said Miller apparently by his question, wanted to be
dominated by the Treasury.
"
On looking over the files Miller said it was evident that the
Treasury wanted this and he withdrew his objection.
Jan. 30, 1935. 25.
C.S.H. discovered a joker in Gov. Los draft of changes in
Federal Reserve Act; - the retiremenet provision is so
drawn that members whose terms expire after age of 70
can get no retirement allowances.
Jan. 30, 1935. 26.
Morrill admitted to C.S.H. that above was true, but said it
was not the intention of doing this in anyone's mind;
that the Act should provide that all whose term expires
after the age of 65 should be given the retirement allowance.
Morrill wrote Gov. E. as to this.
Jah. 30, 1935. 26.
Wyatt agreed with Morrill, altho Wyatt rather feebly claimed
that the right to retire at 70 gzve the right to the
retirement.
C.S.H. said a man could not "retire" from an office after
his term had expired.
Wyatt seemed to agree to this.
C.S.H. said if there is any doubt why not make it clear - to
which Wyatt agreed.
Feb. 2, 1935. 26, 27.
Assuming that Wyatt is correct in his statement that neither
Gov. E. nor any of his staff ever thought of barring
from retirement allowance members whose term expired after
reaching 70, his drafting of this provision as :,-.ost
negligent and stupid.
C..F.H. is beginhing to despair of the sloppy work of our legal
staff and fears that other jokers will be found in the bill.
Feb. 2, 1935. 27.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
43.
Eccles, Gov. (Cont'd.)
The first draft of Gov. E. contained a clause that the
prohibition of appointment of men over 70 should not
apply to present members of our Board.
The 2nd draft and the one given us yesterday omits this exception.
This would seem to be a decided slap at C.S.H., by Gov' E, and the
Treasury -oys.
Feb. 2, 1935. 28.
O.S.H. is mistaken as to above. The exception was in the clause
that 2 members having executive experience in F.R. banks should
be on the Board.
Feb. 2, 1935. 28.
Board met at 5 p.m.
Gov. E. said the new bill was sent to the appropriate
committee of the H.R. and Senate the same being Part II of the
whole bill.
Wyatt said he personally made the changes in retirement plan
suggested by C.S.H. and that they were in the bill as printed.
Feb. 4, 1935. 28.
Thomas was very indignant and said it was futile for us to express
an opinion of a bill in making of which we had had no part.
Feb. 3, 1935. 29.
Gov. E. said Roosevelt referred the bill to the Emergency Loan
Committee, of which Sec.Nbrgenthau was Chairman and Gov. E.
was a member, also Under Sec.Coolidge, Oliphant, et al.
Gov. E. said Roosevelt did not want the opinion of our Board; that
he relied entirely on Sec. Morgenthau and the Treasury
Committee.
Feb. 4, 1935. 29.
The Board informally discussed the Open
Gov. E. said that Sec. Morgenthau,
that the judgment of the Committee
without any right in full Board to
Market provisions and
early this a.m. insisted
of 5 should be final
approve or disapprove.
All of our Board opposed this.
;
Feb. 4 1935. 29.
Board criticized the term for directors which bill fixed at 6 years.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
44
Eccles, Gov. (Cont'd.)
Miller favored 3 years for Class A, 6 years for Class B
and no limit for Class C.
Feb. 4, 1935. 29.
Miller objected to making the Governor in effect a political
officer, losing his designation when President designated
some one else.
Gov. E. strongly favored this.
Feb. 4, 1935. 29, 30.
Thomas has discovered another joker:
If a man newly apoointed were designated Governor say a
week before the administration expired, and the incoming
President should designate another, the first one, according
to the terms of the bill, would be considered as having
served his full term for which he was originally appointed,
say 10 years, and after say only one week's service if of
65 years of age, on a retirement allowance for life!
Feb. 4, 1935. 30.
Gov. Eccles said Roosevelt was unwilling to make the bill an
administration bill, altho he had approved it and would
very likely speak to the Committees favoring it.
He said Roosevelt felt this was the best tactics.
Feb. 4, 1935. 30.
Roosevelt said banking bill to the Committees of the two Houses,
accompanied by a letter merely stating that it was prepared
by Crowley, the Comptroller and Gov. Eccles, Wbowould
explain it.
Thus R. evades all responsibility and does not make it an
Administration bill.
Feb. 5, 1935. 33
Gov.Z. told the Board it ital an Administration bill; that
R. thought it not politic to send it in as such.
Feb. 5, 1935. 34.
Gov. E. said Roosevelt went over it carefully and approved it,
with the exceptiamthat he cut down the Board's proposed
salary from $20,000 to $15,000, and he also struck out
the branch bank provision.
Feb. 5, 1935. 34.
Glass accuses Gov. All of breaking his word in not ghowing him
%
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
45.
Eccles, Gov. (Contd.)
a copy of the bill before it was sent to Congress.
Gov. E. answered Glass by saying that he did not know it would
be sent in so soon.
See - Scrap book.
Feb. 5, 1935. 34
The Senate Sub- Connittee has been enlarged by adding 3 Senators.
This is a blow at Glass.
The intim.-tion leaks out that the full Committee, and not the
Sub-committee, will consider the bill.
Feb. 5, 1935. 34.
C.S.H. has Armpathy for Gov. E. Has was given to understand that
his bill would be an Administration bill, and yet R. calmly
turns it over!
Feb. 5, 1935. 35.
Krock, in New York Times, brings out tne fact that R. in a talk
with news correspondents practically assumed responsibility
for the bill.
This will cheer Gov. E.
Feb. 5, 1935. 35, 36
Miller told C.S.H. that Mrs. Miller sat next to Roosevelt at
dinner one night and spoke of Gov. E. in a vim uncomplimentary
manner.
Miller would not say just what he said.
Feb. 12, 1935. 37.
Gov. E. spoke today at Columbus, Ohio.
C.S.H. didated an analysis from the advance colly.
Feb. 12, 1935. 37.
Platt criticises Gov. E's Columbus speech - N. Y. Times.
Feb. 12, 1935. 38.
Federal Advisory Council told Board it would not meet
with the Board today, as it was not prepared to
report on the Banking bill and might refer it to a
Sdb-committee.
Feb. 20, 1935. 41
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
46.
Eccles, Gov. (Cont'd.)
Thomas told C.S.H. this p.m. that Gov. E. addressed the Council
at the Mayflower on the banking Lill for over 2 hours.
C.S.H. feels this is the most extraordinary -ction in the
history
of our Board.
No other member was present or invited!..
C.S.H. believes Gov. K. did not want the Board member:to be
present for fear some opposition mignt be shown -gainst certain
parts of the bill.
Feb. 20, 1935. 41.
Thomas told C.S.H. he had a long talk with Gov. E. and told him
that the BaAkin bill as drawn would preclude C.S.H. from
reappointment; that at first Gov. K. denied this and seemed
amazed; that he finally said no such thought had ever entered
his mind.
Feb. 21, 1935. 43, 44.
Thomas told C.S.H. not to worry, that the bill would surely be
changed.
Feb. 21, 1935. 44.
Goy. E. reported that he had tqlked with the Federal Advisory
Council when they were here, and that while at first they
were evidently oprosed to the banking bill, that after he
had addressed than, he felt that they generally agreed to
the bill although many suggested changes in particular parts.
Feb. 23, 1935. 46.
Gov. Z. also said he had sent Roosevelt a copy of his Columbus
address; that McIntyre called him up and said Roosevelt told
him to call him up and say that he agreed with every word of
it!
Feb. 25, 1935. 46.
C.S.H. wonders if Roosevelt really read that part favoring a
better distribution of wealth and income by increased taxation!
Feb. 25, 1935. 46.
Morrill told C.S.H. he had reported to Gov. E. the request of
C.S.H. and James that the proposed increase in salaries of
messengers be taken up at once, apart from other salary questions,
because of their gross inadequacy; that Gov. E. would not agree
to this but said they must wait until all salaries were
readjusted; that he was too busy to take them up now.
This seems grossly unfair for Gov. E. increased tne salary of his
own messenger whom he brought over with him to $1800, the s-Ame
amount we are now paying to our Chief Messenger.
Mar. 1, 1935. 47.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
47.
Zecles, Gov. (Contl(I.)
Miller, Thomas and C.S.H. agreed that it was most unfortunate
for Gov. Z. to say anything about increased taxation as a
means of restoring prosperity.
Mar. 7, 1935. 50.
Gov. Z. at hearing before H.R. Committee this a.m. nrde an
awful break.
He was asked if there was not an Open Market Committee in
existence many years before, and relied Nol
Seeing the consternation in faces of the staff he said he was not
very familiar with the Federal Reserve System before he
joined our Board.
Mar. 11, 1935. 52.
Sec. Morgenthau, at our dinner, told Bertie he could not
follow Gov. Vs testimony before the H.R. Banking Committee;
$hat he had some one at work analyzing his testimony; th-,t he
contradicted himself almost every day.
Mar. 13, 1935. 53.
Miller told C.S.H. that he - Miller - would tell the Senate
Banking Committee that prices were stabilized at a high level
from 1922 to 1929, while production costs were greatly reduced,
thus creating inordinately high profits, thus inducing
corporations to put their money into speculative loans through
'Loans for others°.
Mar. 19, 1935. 56
Under Sec. Coolidgd read to H.R. Banking Committee a statement
on the Bankiligbill.
It was weak and sophomorieal and added little to the Committee's
knowledge.
He defended the Open Market Committee of 5 as fixed by the
Treasury boys, but abandoned by Gov. Eccles, but this latter
fact he did not mention.
Mar. 21, 1935. 56, 57.
Morrill said the rumor was that Sec. Morgenthau was very angry
with Gov. Z. for the cthanges from Treasury bill to which he
agreed.
Mar. 21, 1935. 57.
Goldenweiser testified before H.R. Banking Committee. In speaking
of stabilization of pric-s he quoted from C.S.H. testimony in
1928 before Senate Committee, when C.S.H. laid down a plan
for stabilization.
Mar. 21, 1935. 57.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
48.
Eccles, Gov. (Contld.)
Thomas said he had had a long talk with Gov. E. as to permitting
the apIdntment of a Board member over 70 years.
He said Gov. E. would not agree to such a change although he was
graciously willing to permit a member over 70 to finish out
his term!
C.S.H. looked over list of Senators and found the following over 70
or who would be 70 during 1936:
Senator Jonnson (Cal.)
Pletcher (Florida)
Borah
tIdaho)
(Ill.)
Lewis
(Kansas)
Capper
Coolidge (Mass.)
Norris
(Nebraska)
Keyes
(N. H.)
Metcalf (R.I.)
Glass
(Virginia)
Mar. 25, 1935.
58, 59.
If these Senators opposed appointment of a Board member over 70,
it would be tantamount to saying they should not be reelected!
Mar. 25, 1935. 58
Morrill said the Board's retirement plan would undoubtedly pass
Congress.
C.S.H. said Thomas was much interested in the proposed change,
so that he could be reappointedaMar. 26, 1935.
59
Miller said he had not realized that the bill would
effect. He told C.S.H. not to worry about it,
would gladly make him honorary Counsel, if not
or any other position
might desire.
Mar. 26, 1935.
hpve this
for the Board
reappointed,
59, 60.
C.S.H. said he should not raise a finger but that it would be a
great disappointment not to be reappointed.
Mar. 26, 1935. 60.
Miller said he believed that Gov. E. and the Treasury boys had some
one in mind whom they wished to be put on the Board and that
that was their way of doing it.
He said they couldn't do it to him and now had this plan in mind.
Mar.26, 1935. 60.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Eccles, Gov. (Contld.)
Miller said some one told him tnat Gov. E. felt that the
Board Should consist merely of Currie and Goldenweiser!
Mar. 26, 1935. 60.
Miller at Board meeting complained that an appointment had
been recommended by the Statistical Division and checked
by several Board members, but had never been referred to
him altho that Division had been assigned to him.
Gov. E. defended the action of the Division, saying that all
matters of personnel were under his jurisdiction.
Thomas said the staff was really running the Board, through
its action in initiating appointments, and that when they
reached the Board in the form of a letter, there was
nothing to do except sign it.
James and Szymczak cited other similar instances.
Gov. E. became very angry and said such matters were within his
jurisdiction and that while he was Governor they should
continue so!
At this, Miller stood up and, fairly shouted - Nol they will noel
I shall fight you on this to the bitter end!
At this Gov. E. backed down somewhat.
The Comptroller moved that the Governor be directed to prepare
and report a plan under which all personnel matters Should
first be taken up by the Division interested with the
member of the Board designated by the Governor before
being passed on by the Board.
Gov. E. put the motion which was carried unanimously.
Mar. 27, 1935. 62.
Miller, during the debate, spoke of the Law Division and said
no appointments Should be passed on by the Board prior
to a reuort by the lawers on the Board.
Gov. E. admitted that in the last appointment in the Law
Division, he had given his record to Wyatt and asked him
to do something for this man if he could. This was the
which Wyatt said he had not consulted
appointment of
C.S.H. about because, under the rules of the Board and the
orders of Gov. E. he could not consult with C.S.H. until
Gov' E. had massed upon it and approved the acipahtment!
Mar. 27, 1935. 62, 63.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
50.
Eccles, Gov. (Contld.)
The Board in the above has taken m:Aters into its own hands.
This will be a valuable exuerience for Gov. E. who, until
now, has acted as if he were supreme in thee matters.
Mar. 27, 1935. 63.
Comptroller lunched with C.S.H. He said McAdoo and Glass told
him they were confident they would defeat confirmation of
Gov. Eccles.
He also said the "Treasury boys" were very bitter at Gov. E. for
his change in the banking bill.
Be also said Under Sec.Coolidee was more responsible for the
bill than anyone else.
Mar. 27, 1935. 63.
C.S.H. meets Parker Gilbert coming out of Gov. B's office.
Mar. 28, 1935. 63.
Gov. E. gave Board a long list of proposed changes in the banking
bill
C.S.H. noted that he did not have time to examine
them critically, but from a superficial examination they
appeared to be an improvemeht.
One provision was that any membEr whose term expired should be
given the retirement allowance but if his term expired at
age of 65 or over and he declined reappointment he should have
no retirement allowance.
The other principal Changes were that 5 of the Governors were made
the Open Market Committee.
Full power was given to the Board to approve or disapprove, but the
Board must consider the determination of the B Governors
before initiating any charge in open market policy or in dicicount
rates.
Morrill said later that Gov. E. had sent this Change to H.R. Committee
without any consultation with the Board until now.
Mar. 29, 1935. 64.
C.S.H. asked Morrill and Wyatt to draw an amendment providing that
•
a member whose term expired would hold over until his
successor had been appointed and qualified.
Mar. 29, 1935. 65.
Wyatt gave C.S.H. a copy of 2 proposed amendments which Gov. E. had
asked him to prepare.
1.
Holding over until successor appointed and qualified.
2.
The 70-year limitation not to prevent reappointment
of any member of Board in office on July 1, 1935.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
51.
Eccles, Gov. (Cont'd.)
Wyatt said Gov. E. directed him to draw 2 above as he was much
disturbed because, without it, C.S.H. could not be reappointed.
Thomas, however, told him of this some time ago and then refused
to agree to it, saying that while C.S.H. was a good man, we must
take the broader view.
March 30, 1935. 65
Gov. E. checked letter of Board reversing its policy as to Mercantile
Trust Co.
March 31, 1935. 67.
Gov. E. talked with C.S.H. nearly for 1/2 hour over telephone aLout
the 2 amendments he had directed Wyatt to draw.
He said he did not realize that C.S.H. would be debarred from
reappointment, except for one of the amendments and he
hoped C.S.H. would realize there was nothing personal in it.
He said he had sent the amendments to Steagall in executive session
and if not put in the H.R. bill he would take it up and take
care of it in the Senate.
April 1, 1935. 67.
Gov. E. said that when Roosevelt offered him his appointment he
said there were many who bitterly opposed him, especially in
New York, but he added, "I don't follow them and don't give
a damn that they think!"
April 1, 1935. 67.
C.S.H. advised Thomas to talk with Russell, Cong. from Mass. about
the banking bill. He said he would.
April 1, 1935. 68.
Wyatt called up C.S.H. and said Gov. E. had approved the 2 amendments
above referred to, had sent them to Steagall and that he Wyatt - would go before the Committee when they were considered.
April 5, 1935. 68.
Fed. Advisory Council held a special meeting to consider its
report on the banking bill.
Gov. E. was with them 2 hours alone.
While it slightly changed its preliminary report, in the main
it stuck to it.
Gov. E. did not ask Board to sit in, but Miller and C.S.H. advised
him not to, as it would reveal radical differences among the
Board members, to the Council.
April 10, 1935. 69.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
52.
Eccles, Gov. (Con)d.)
Wyatt gave C.S.H. a copy of Gov. E's letter to Steagall answering
criticisms of Shafer charging slop y work.
This 1,tter was not a dignified one. It 3aid the words criticis-d
meant just what they said, but then went on to say that amendments
could be made, etc. etc. Then followed the correction of the
slo-ipy work.
In the 1 tter Gov. E. quoted what the critic said about C.S.H. bring
made ineligible and then suggested the amendments referred to
above.
On the whole these amendments took care of the situation very
satisfactorily, but C.S.H. feels Steagall won't pay very much
attention to the amendments.
April 12, 1935. 70.
Board took up salary question.
Gov. E., to C.S.H.Is surprise, favored all the increases and C.S.H.
concurred.
April 12, 1935. 72.
See - Salaries.
Gov. E. explained to Board that he came on to the Board not of his own
free will but at the urgent request of Roosevelt; that he was
prepared to put through the changes in Federal Reserve Act made
by the Banking bill etc. etc.
Gov. E. vvidently felt his first duty was to Roosevelt and Sec. Morgenthau.
April 12, 1935. 72.
Gov.E. finally agreed to any changes in the by-laws the Board wanted,
to keep all appointments under the direct supervision of the Board.
April 12, 1935. 72.
:
Gov. E. apparently is ber inring to realize that he is only one member
of the Board and he took it in good iy.rt.
April 12, 1935. 72. 73.
Daiger said the H.R. Committee had dropped our amendments mentioned above.
April 15, 1935. 73.
H.R. Committee reported out the Banking bill, and it contained above
amendments.
April 19. 1935. 74.
C.S.H. heard that Wyatt had advised Gov. E. that he had disposed of
his stocks as the Federal Reserve Act required.
April 19, 1935. 74.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
53.
Eccles, Gov- (Cont'd.)
.
Senate Sub-committee voted to report favorz- bly the confirmation
of Gov. Eccles.
April 22, 1935. 75.
Wyatt gave C.S.H. a copy of his o7:inion as to disposal of
Gov. Els bank stocks.
April 22, 1935. 75.
Senate confirms Governor E.
April 24, 1935. 76.
Gov. E. took oath of office at Board meeting this a.m.
April 27, 1935.
Gov. E. said Glass and the N. Y. bankers used every effort
to defeat him; that they even got Ex-Senator Smoot to oppose him.
He said Glass was adamant to the end but that Sen. McAdoo told
him that had he not been ill, he would have voted for him.
He said he called on Glass a few days ago and had a very pleasant
talk with him but nothing was said about his confirmation; that
Wyatt also went to Glass but could not budge him.
April 27, 1935. 77.
Gov. Eccles is very resentful towards Glass.
April 27, 1935. 78.
Gov. E. told Board that when Roosevelt offered him the Governorship
he gave Roosevelt a memorandum stating the changes he desired
in the Federal Re=erve Act; that Roosevelt read it and said
he agreed with them all!
May 1, 1935. 79.
Gov. E. gave C.S.H. the history of the Open Market clause.
He said it was at first drawn to provide for a Board consisting
of 3 Board members and 2 Governors with power in full Board
to approve or reject and finally settle the policy; that early
Monday a.m. SP:. Morgenthau insisted on striking out the
power of the Board over this Committee; that later that day
Roosevelt sent the bill to the Committees of H.R. and the
Senate; that he - Gov. Eccles - objected to stri:Ang out the
power in the full Board, but was outvoted by Sec. M., Under
Sec.Coolidge and Oliphant; that Sec. Morgenthau was very angry
when he suggested such a change before the H.P. and Senate
CoL-Ittees; that finally iL was agreed to leave it to
Roosevelt and Gov. E. prepared c draft of the 3 propositions and
gave it to Roosevelt in presence of the others; that this was
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
54.
Eccles, Gov. (Contid.)
on Monday of last week (or possibly this week); that
Roosevelt read this over and those the one he - Gov. Ectles had submitted to the H.R. Committee, which settled the uuestion.
May 1, 1935. 80
Gov. E. said Sec. M. was so devoted to Roosevelt that he would
unhesitatingly change any orinion to please him.
May 1, 1935. 80.
Gov. E. said Under Sec. Coolidge was the one vho settled the
final draft.
May 1, 1935. 80.
Gov. E. said Under Sec. Coolidge was a hard-boiled banker whose
only wish was to do wnat the bankers wanted.
May 1, 1935 80.
While Board was considering Sec. 32 of the new bill, tgreeing it
should be modified (Clayton Act) Miller moved a sense of
Board that all interlocking directorships be abolished and
that Wyatt be directed to prepare an amendment accordingly.
C.S.H. said ne wisned all such had been originally abolished
but that to insist on this now would be considered a most
radical step, more radical than mything in the oill, and
that such a sgestion would be the surest way to defeat
the bill as a whole.
C.S.H. moved to table.
Aye: C.S.H., Croy. E. Szymczak, Thomas
No: Miller, James.
May 1, 1935. 81.
Daiger said Prof. Sprague would testify tomorrow in f:vor of the
banking bill!
A week ago Prof. Sprague called on C.S.H. and said he was
not averse to the bill even to its real estate loan
provision, altho he thought amortized loans should not
exceed 10 years.
He also asked how the Board liked having 2 Governors added to it
on Open Market m-tters.
C.S.H. said he was absolutely ot,posed to this and ne believes the
same of every member of the Board.
C.S.H. believes Sprague will make the suggestion, and that he is
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
55.
Eccles, Gov. (Conttd.)
really working for the N.Y. bankers, camouflaging the
relation by agreeing to other features of the bill:
'
May 2, 1935. 81, 82.
The H.R. voted down by a very small majority t:he retirement
provision of the banking bill.
There was only one speech ap;ainst it end no one -ven replied
for the Committee which reported this.
The vote was 92 to 81.
C.S.H. feels Steagall mad- a sacrifice hit in letting this part
be voted down in order to help the rest of the bill.
A sop to Cerberus:
C.S.H. has a suspician, - Gov. E. is so cloe to Steagall, - that
this was arranged in advance and that Gov. E. has deserted
his astlociation.
May 9, 1935. 97, 88.
Gov. E. told C.S.H. that if the banking bill were -passed,
next year he Nould go much farther in banking legislation!
This sounds ominous.
May 11, 1935. 88.
Last week B. M. Anderson published a scathing criticism of
Currie's book on banking, bitterly attacking his economic
views.
May 18, 1935. 88.
Miller discussed with C.S.H. the provisions of the bill as to
the new qualifications for Board members.
C.S.H. said very few bankers could qualify under it unless
they had had financial experience in some N.Y. banking
house, or were a Professor of Political Economy. Mill-r
said he thought it was drawn to describe Currie as
C.S.H.'s successor:
May 11, 1935. 99.
Gov. E. today finished his testimony before the Senate SubCommittee.
May 13, 1935. 89.
Kemmerer testified that the Board should choose its own Governor.
May 13, 1935. 99.
Gov. E. told C.S.H. that Steagall's eplanation of the defeat
of the retirement clause was, - that he said that during the
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
56.
Eccles, Gov. (Contld.)
debate he had an irresistible desire for a cup of coffee,
that he left Goldsborough in charge repre3entl_ns the
Committee and to fight for the provision; that after a
.
motion was made to strike it out, Goldsborough rose to
speak in its favor but was not recognized by the chair.
A very "fishy" explanation!
May 13, 1935. 89, 90.
Gov. E. said Steagall told him he had asked Sen. Bulkeley of
the Senate Sub—Committee to see that it was in the Senate
bill and if this were done he would see that the H.R.
accepted it.
May 13, 1935. 90.
C.S.H. told Gov. E. of his revised plan for a retirement list, —
which seemed to please Gov.
, who said the plan was
absolutely necessary to securo real independence for the Board
May 13, 1935. 90.
Wyatt said Steagall gave him the same explanation he gave to Gov. E.
and added that the explanation was ridiculou:, that the
radicals and extreme conservatives both favored it, wnile the
on.,osition, largely Republicans, opposed it, largely for
political motives.
He said Steagall said that if GoldsborolIgh had supported it, it
would surely have passed.
May 13, 197,5. 90.
C.S.H. has transcribed for his diary the Board's debates on
the Open Market clause in passed years.
They show that in 1931 the Board wanted to put through a major
policy of bwing 300 millions of Govt. securities; that it
attempted to induce the Open Market Committee to initiate
this policy, but that by a vote of 11 to 1 the Committee
reduced this to 120 millions!
diaries also show that in 1932 he attended a me-ting of
the Executive Committee of the F.R. Bank of New York; that
Gov. Harrison said that Boston and Chicago had refused to
participate in Govt. purchases any longer, except in cases
of grave emergency.
Gov. HarriF,on said if his bank bought any more alone it would
reduce its reserve ratio to 47% while that of Boston and
Chicago would be about 70%!
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
57.
Eccles, Gov. (Contld.)
Gov. H. said it was the duty of the Board to force Boston and
Chicago into line.
C.S.H. agreed and said he would take it up -t once.
Finally, Boston 'nd Chicago both c.,me into line.
Gov. Harrison objectEd to givi4g our Board full authority in
Open Market matters, — what he begged them to do in 1932!
May 16, 1935. 91 — 92.
C.S.H. preparej a letter to Gov. Meyer Eetting out the 1931 eoisode,
hoping he would editorially su-ol)ort the Board's position.
Miller objected to C.S.H. sending it.
C.S.H. then showed the letter to Gov. E.
Gov. E. said the cases cited by C.S.H. were both of great
impedance and brought the letter over to Sec. Morgenthau houing
he might use it in his testimony.
Later, Gov. E. said Sec.M. thought it better for him not to go
into these specific details.
Gov. E. asked Why C.S.H. had not given him these details before.
'.S.H. said he hrtd just discovered them.
May 16, 1935. 93.
Morrill said he had advised Gov. E. not to menti )n open amTket matters
until he had coLsulted
C.S.H., but Gov. E. had evidently
forgotten the advice.
May 16, 1935. 93.
C.S.H. discussed the banking bill with Sen. Carey after we dined with him.
He seaned very liberal in his ideas, and was much intereted in the
retirement plan.
He spoke contemptuously of Sec. Morgenthau's te tiaiony on the bank;ng bill
May 17, 1935. 94.
C.S.H. told Gov. E. of his talk with Sen. Carey aid strongly advised
him to see Sen. Carey at once, as he believed he could break
away from the other Republicans on the Committee.
Gov. E. said he would do this and that he hoped that Thomas and Szymczak
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
58.
Eccles, Gov. (Contid.)
would speak to any Senators they knew.
He said he was doubtful about Miller as to tz,e banking bill, but
C.S.H. said he thought Miller, in general, would
ort it,
except as to stabilization of prices.
May 18, 1935. 95.
Gov. E. told the Board that Sec. Morgenthauls t. stimony before
the Banking Committee ft-Noring purchase by the Government of
the stock in Federal reserve banks, as alb() Roosev4t'5
cautious intimation to the press that this might solve many
difficulties, was all a political move to scare the ben'.
into accepting the banking bill from fear of something worse,
which might otherwise come!
May 18, 1935. 96.
Supreme Court holds that Roosevelt's removal of Hum-uhrey from
Trade Commission was illegal Pnd void.
This has an important beL..ring on the status of our Board, as no
specific power of removal of our Board members is given
to the President, Congress having, in the Banking Act of 1:.-33,
stricken out the power to remove "for cause".
May 27, 1925. 97.
C.S.H. testified before Sub-Committee of Senate Banking and
Currency Committee on tte proposed banking bill, and
generally apnroved the bill with some slight suggestions of
modification.
Glass was very caustic and kept up a run ing fire of questions.
Glass denied any power in Board to initiate discount rates, but
C.S.H. did not refer to his letter to Attorney General in
1919 claiming that the Board had such power.
C.S.H. did refer to initiation of a 6% rate at New York in 1920,
saying it was carried by vote of the Chairman of the
Board, the other votes making a tie.
Sen. B:,rnes asked if McAdoo was the Chairman and C.S.H.said No, it
was Glass.
See - Glass.
June 3, 1935. 99, 100.
Thomas , Szymczak and James also testified.
June 3, 1935. 99, 100
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
59.
Eccles, Gov. (Contid.)
All of the members approved the bill in general except
Miller who though nominally approving or accettingthe bill, sugested so many changes as practically to
amount to a rejectin of the bill, and James who said
there appeared no necessity for it.
Miller also objected to th Open market providons.
June 3, 1935. 99, 100.
C.S.H. received many congratulations on his testimony, esp-cially
from Gov. EcAes.
One correspondent of press s'id to C S.H., "By God! you showed
sand in opposing Glass!"
June 3, 1935. 101
James told C.S.H. the bill was a damned socialistic measure
which Gov. E. was trying to place upon the American people!
June 4, 1935. 101.
Glass, put questions showing he favored making the Board a
Board of Governors.
C.S,H. told Glass he favored this,adding that there was nothing
personal in this desire, as he was ready to nominate Gov*E.
as the first Governor elected by the Board.
Glas_ said nothing as to this statement but looked Ca6e:ers.
June 4, 1935. 101.
Miller tol.: Thomas that C.S.H.'s testimony wss technically right
but that Glass was substantially ricnt!
C.S.H. fears Miller is trying to play both sides!
June 4, 1935. 101.
As C.S.H.has often stated in these diaries, he considers Carter
Glass one of the great statesmen of this generation.
He now has a wondrful opportunity to make the Federal Reserve
Board independent in law as well as in fact, and to make
the Federal Reserve Act stronger by adding to the powers
of the Board the essential features of the proposed
amendsients to the Federal Reserve Act, in the proposed
banking bill, seeing to it that they are consistent with,
or are made consistent with the principles of the Act.
June 4, 1935. 102.
See — Glass.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
60.
Eccles, Gov. (Contld.)
C.S.H. wrote Sen. Townsend showing a snving of $470,000
by consolidation of offices of Governor and F.R. Agent.
June 5, 1955. 102.
Wall Street Journal criticised C.S.H. for refusing to permit
Federal Re.erve Bank of 1;ew York to increa,e discount rates
in 1929.
Denied that this action showed independence.
Evidntly it thinks a really "indenendent" Board would have meekly
followed 'lie Treasury and its Governor and Vice Govn-nor!
June 5, 1935. 103.
Gov. Eccles and Gov. NOrris spoke at Scranton Pa. on tne banking bill.
Gov. Norris made a bitter attack on the bill and charged Board
with being a political Board.
June E, 1935. 104.
Delano told C.S.H. that a friend told hi,a that C.S.H.Is testimony
before the Semte Subcommittee on the banking bill was the
most valuable testimony given before the ComAttee
June 6, 1935. 104.
Mi_ler told C.S.H. that Glass was very angry with C.S.H. because
of his testimony before the Senate ComL,ittee, especially
because of his statement that if Board were made independent
he would nominate Gov. E. as its first Governor.
June 6, 1935. 104.
!rs. DUBois, at dinner with us, said her husband told her
that C.S.H.'s testimony was most valuable and the best that
was given; that the press correspondents all said they admired
tne courage of C.S.H. in standing up ag.inst Glass.
June 6, 1935. 10/.
Thurston told C.S.H. that Miller's criticism of C.S.H.Is
testimony was si:.ply the fact that I told Glass that if Board
was made independent ne - C.S.H. - would nominate Eccles for
Governor.
June 7, 193, 104.
,
C.S.H. writes Glass a letter as to banking bill.
See - Glass.
June 7, 195. 105.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6L
Eccles, Gov. (Cont'd.)
Gov. E. came to C.S.H.'s office to tell him about his
Scranton address on the banking
He said Gov. Norris nad demonstrated, by his address,
his unfitness for Gov .rnor.
June 7, 1975. 106.
Gov. Eccle said he fully appreciated C.S.H.'s action in
telling Glass ne would nominate him for Governor.
C.S.H. told Gov. E that it was necessary to say this to
offset a rumor that Miller w:.nted an independent Board in
order to displhce Eccles as Governor.
Gov. E. said this was undoubtedly being rumore.
C.S.H. said that in fact Miller had no such purpose; that, on the
contrary he had told C.S.H. he would vote for Gov. Eccles if
C.S.H. nominated him.
June 7, 1935. 107.
.
.
C.S.H. said Congress would never 1 eate a Board absolutely
independ nt, like the Supreme Court without some connecting
link, with the financial side of the administration; that
he felt that this connecting link should be the Secretary of
the Treasury, and not the Governor.
June 7, 1935. 107.
Wingfield, of our Counsels, told me that everyone was saying how
admirably C.S.H. handled himself before the Committee.
June 7, 1935. 107.
C.S.H. did not intend to affront Glass by saying he wauld
nominate Gov. E. As a fact, he treated Glass laost
See - Glass.
June 7, 1935. 108.
Board took up question of transferring Edmiston from position
as Assistant to Gov. Eccles to a position umier Goldenwei-er,
at $4000 per year, a cut of $500 from his present salary.
Miller bitterly objected, not as to his fitness, of which he
said he knew nothinE, but because he, Irving in charge the
Statistical Division, had not been consulted.
It was a long bitter 3ontroversy.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
62.
Eccle7, Gov. (Contid.)
C..H. said Edmiston was at one time in the office of the
school of research and was most f.Norably r-commended
by Viner.
Miller finally admitted that h- was a well equipped man but
refused to vote for him.
The vote was:
Aye: Gov. Eccles, C.S.H.
No:
Miller
Not voting: Comptroller, Szymczak
Szymczak practically said he was committed to Mil.
June 12, 1935. 111, 112.
Gov. Eccles reported to Board that a conference was held
yesterday at the Treasury at which Sec. Morgenthau,
Tom Smith, Gov. Eccles, et al. were present.
He said that after long discussion they went to Roosevelt,
who staed:
1. He rould not consent to separating Title II from
the rest of the bill.
2.
He gr2atly favored Gov. Eccles open market
Committee plan - power in full Board with
Advisory recommendation of 3 Governors.
3.
That ne had an open mind but would probably apnrove:
1.
Board plan, with recommendation of 4
Governors, excluding ex-officio members.
2.
Board consisting of 8 members, with Advisory
Committee of 5 Governors, with an
Executive Committee of 3 Board members
and 2 Governors.
Miller attacked both of these as a surrender to the banks.
C.S.H. agreed in principle but admits it is a •Isa in the
right direction, bemuse definite power is fixed in some
body.
The Board was never consulted :,E; to a.,Jcve.
Rooevelt hL._s conceded that our Board is not fit to be entrus.ed
with final authority.
June 14, 1935. 113, 114.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
63.
Eccles,
G07. (COnt l d.)
Miller said the public distrusted he Board as open to political
influence, and added that therwas some trutn in this.
Roosevelt, however, accepts divided responsibThy which will never
be a sItisfactory eolution.
June 14, 1935. 113, 114.
Gov. Eccles asked C.S.H. as a personal favor to speak in his place
before the National Credit Men's Conventiaaat Pittsburgh, as
he could not go, because of an angagenent with the Conference
Com.:Aitee on the banking bill.
C.S.H. went and was met at station by Mr.
Pittsburgh branch.
reggs, Manager of the
Stopped et William Penn Hotel.
A Committee of National Credit Men waited on him and invited hjm
to breakfast and lunch tomorrow.
June 19, 1935.115.
C.S.H. visited Federal reserve branch in morning.
Attended lunch as guest of Clearing Hous Association et the
Duquire Club and made a short address.
Andrew Mellon came over to meet me but could not remain for lunch.
In afternoon, delivered address at Convention.
As C.S.H. entered tne hall they were all singing "The bells of
St. Mary"!
C.S.H. spoke for an hour and it was the best speech he ever made.
The audience was most enthusiastic.
C.S.H. was introduced by Mr. Rregoe, who had introduced 7.S.H.
over 20 years ago at a similar meeting in Boston.
After supper with the Cornittee, C.S.H. took 11:30 train for
WashinE
;ton.
Mr. Baldwin, Washington repreentative of the Credit Men
told C.S.H. that when Gov. Eccle:. told him he must give UD
,
going, he would have C.S.H. take his place, - a man who knew
more about the Federal Reerve System than any other person
and so brilliant he knew of no one who could exceed him!
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
64.
Eccles, Gov. (Cont'd.)
Gov. Eccles aaid afterwards he had received many letters sayin
it was the most successful convention -ver hald; that
C.S.H. had made a most brilliant speech, and thanking GOV..
for sending him.
June 00, 1935. 118.
Gov. Eccles told C.S.H. the Com, ittee would probably report on
Title II of the bill next Tuesday.
June 22, 1935. 118.
C.S.H. believes Miller is in closertauch with Glass than he
has ever admitted.
He said alass would insist on an independnt Board.
June 22, 1935. 118, 119.
Miller said Glass bitterly hated Gov. Eccles and was displea-ed
with C.S.H.ts statement that he would nominate him for Governor.
June 22, 1935. 119.
Miller was very bitter towards Gov. Eccles. He said Goy. E. had
fallen down and had lost control of the bill and of the Board;
that if he had called the Board together it might have agreed
upon a bill.
June 22, 1935. 119.
C.S.H. told Mill-r that Gov. Eceles many times had asked the Board
to take up the bill but the Board declined formally to consider
it unless Gov; E. could say that Roosevelt had .sked the Board
to do so, - which Gov. E. said was not the fact.
June 22, 1935. 119.
As a matter of fact, Miller was emphatic in saying that ,the Board
should not formally discuss the bill until RooFevelt so
requested.
June 22, 1935. 120.
The Board did discuss informally the open market clause and
persuaded Gov. E. that the clause was bad, and Gov. E. - to the
amazement of the Treasury boys, advocated a different clE'use
in his testimony, which was accepted by H.R. Committee and
passed by H.R.
June 22, 1935. 120.
C.S.H. told Miller why he told Glass he would nominate Gov. E. for
Governor.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
65.
iccles, Gov. (Contld.)
C.S.H. said the rumor was that Miller wanted indepen
dence
in order to oust Gov. Eccles from the Governorship;
that
he knew this was not true as Miller had agreed with
iS.H. that the board should and would elect Gov. E.
as
Governor; that C.S.H. consulted Miller and every other
member except James and all agreed they would vote
for
Gov. Eccles.
June 22, 1935. 120.
Miller has put out a long article to show necessity of giving
Board full power in Open market operations, and severely
criticising the Federal Reserve Bank of New York in the
discount rate controversy in 1929.
See — Miller
June 22, 1935. 120, 121.
The Senate Sub—Committee reported the Banking Bill to the full
Commit tee.
It changed Governor to President.
It retains Chairman and Federal Reserve Agent.
Changes name of Federal Reserve Board to Board of Governors.
Adds a new member.
Not more than 4 members shall be of same political party.
All terms of present members expire within 90 days.
President shall appoint a ner Board with staggered terms.
reappoint present Board.
Can
Terms fixed at 14 years with no reappointment.
Salaries increased to $15,000.
The retirement provision was not adopted.
If C.S.H. is not reappointed, in 90 days he will be out of
office after 21 years of service!
July 1, 1935. 12/, 128.
Wyatt says Gov. Eccles is fighting hard to induce Smite to pass
some form of retirement allovance.
July 1, 1935. 28.
Wyatt thinks Glass is responsible for requirement of new nominations
for our Board, as he thought Roos, velt would have to drop one
Democrat to keep the number of Democrats on the Board dawn to 4.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
66
Eccles, Gov. (Contld.)
Only 4 members of our Board were appointed as Democrats and
nrobably only 3.
Miller was appointed as an econcy..ist, and no one knew whit his
politics were.
In fact, Mrs. Miller signed an appeal for Hoover's nom.ination and
election before he was nominated.
James voted for President Harding and was appointed by him and
reappointed by Hoover.
Gov. Eccles told C.S.H. he was a progressive Republican.
This leaves only C.S.H., Thomas .ind Szymczak as really Democrats.
July 3 1935. 129, 129.
)
C.S.H. wrote Gov. Eccles begging him to do all he could Vp
prevent the proposed reorganization of the Board and especially
the bi—partisan clause, saying it would make political chaos.
C.S.H. also urged him to fight for a retirement clause.
July 6, 1935. 129, 130.
This a.m. Thurston came in and spent some time discussing the
situation.
He about satisfied me that Roosevelt wants to reorganize the Board.
He said he had a long talk with Gov. Eccles yesterday, who said
that at first the thought of reorganization worried him
because of its possible effect on C S.H., but that now he
could tell C.S.H. that he could dismiss the matter from his
mind, so far as any personal intere-t was concerned, as in the
event of a reorganizrtion, C.S.H. would
taken care of, that
is, would be a member of the reorganized Board, and that he
would be ver: much gratified when the ap-;intments were made.
/
July 5, 1935. 129, 136.
Thurston said there was much op-A)sition to James, and also that
Gov. Eccles could not get along with Miller.
July 5, 1935. 131.
Thurston said Gov. E. was working to get some form of retirement
plan by an amendment to be offered on the floor of the Senate
and he felt there was a fair chance of success.
July 5, 1935. 131.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
67.
Eccles, Gov. (Con.)
The above talk with Thursday removes, or ought to remove,
any
further doubt in C.S.H.Is r:Iind personally, but he still
feels
the reorganization of the Board would be a terrible
political
and, economic mistake.
July 5, 1935. 131.
Thurston did not say directly to C.S.H. that Gov. E. had
specific authority from Sec. Morgenthau and Roosevelt to
.
make this announcement to C.S.H., but he clearly gave C.S.H.
the i4ression that Gov. E. spoke with authority of Sec. M.
and Roosevelt.
C.S.H. feels that, as betweer gentlemen, the matter is settl-d.
July 5, 1935. 131.
C.S.H. is looking eagerly to hear what Glass says in the
Senate as to the banking bill.
As regards Board independence the Senate bill is a mockery.
Each member, subject only to reappointment, is removed at expiration
of 90 days; only 4 can belong to one political part:1; there can
be no reappointment;when a member has served a full term of
14 years the President is to apoint the Governor for a term
of 4 years, making him in effect a Cabinet offiser.
The Presideat may remove any member for "cause.
This was in original Federal Reerve Act and was interpreted by
Wilson to mean - at the will and pleasure of the President.
of C.S.H.Is com-issions contains this clause.
One
In the banking bill of 1933.Glass personally had "cause" eliminated
in order to make the Board independent.
In the Senate bill Glass reinserted the word "ceuse".
'Thus each member has a rope around his neck and the other end
is in the White House!
Furthermore, a man of say 35 desiring a career and R.ccw)ting an
appointment must realize that in 14 years when he reaches the
age of 49 years', in the prime of life, he must seek some other
means of livelihood!
Furthermore under the Thomas amendment the Treasury can utilize the
2 biLion dollar stabilization fund,to override any open market
oolicy of the Board!
The fact is - the bill creates practically the Treasury as the central
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
68.
Eccles, Gov. (Cont'd.)
bank of the U.S. and makes the Federal Reserve Board
practic-Illy a subordinate brunch of the Treasury through the
President's power of removal.
July 7, 1935. 132.
Thurston told C.S.H. tilat there was more than an even chance that
the Senate would permit Board members to get the benefit
of the existing Federal recerve pension plan.
July 13, 1935. 135.
Thurston told C.S.H. that Roosevelt positively insisted that the
Federal Reserve Board should have ultimate, absolute control
over open market operations and discount rates.
July 13, 193L,. 135.
C.S.H. told Thurston that since his talk with him the other day, he
had dropped from his mind any personal worry as to reorganization
of the Board.
Thurston said, "You need not give it Another thought - you will be
most gratified at the result!"
July 13, 1935. 135.
Thurston also said Roosevelt could take the position that there
were now only at most 4 members of the Board who were apL,einted
as Democrats, but he thought this might not be consistent with
the spirit of the proposed reorganization.
C.S.H. asked him if he had heard who the new 7th member was to be presumably .x Republican.
He said the only name he had heard was John Williams of the 1st di:trict,
a Professor at Harvard and conomist, - formerly Asst. F.R.
Agent at Federal Reserve Bank, N .Y.
C.S.H. said if Williams were appointed from the first district, he C.S.H. - could not stay on the Board.
He ouidkly replied that if Williams were appointed it would be as a
resident of the 2nd New York district.
C.S.H. accented this st.Ltement as a clear indication taat C.S.H.
is to be on the ne-: Board.
July 13, 19.5. 135, 136.
Thurston also spoke of the bitter feeling towards James and Miller.
He said the feeling was more intense against Miller than against
James, and he nither defended Mills%
July 13, 1935. 137.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
69.
Eccles, Gov. (Cont'd.)
Thurston, in leaving, again said to C.S.H. - "You will
be most
gratified at tne result, - you will be most pleased
!"
July 13, 1935. 137.
Two things are clear to C.S.H.:
1.
That Roost-I/Pit intends to reorganize the Board.
2.
That Thurston was duly authorized to say to C.S.H.
that he would be a member of the reorganized Board.
July 13, 1935. 137.
C.S.H. secures from Board a recognition of power of Comr)tro
ller
over affili.tes of national banks.
See - Voting permits.
July 12, 1935. 137, 138.
Szymczak was very excited over threatened reorganiz.tion of
Board
under the Senate Banking bill.
He a sked C.S.H. to let him know if he at any time daauld
hear
that he was not to be reappointed.
July 13, 1935. 139.
Miller came in and said he was going to try to see Sen. Glass
as to the banking bill.
See - Glass
Miller
July 16, 1935. 139.
Miller said that he was originally appointed on Board :cis an
economist,
but that he called himself an independent Democrat.
July 16, 1935. 140.
See - Miller.
The original Federal Reserve Board consisted of Miller, an economi
st,
Delano and Warburg, Rel)ublicans, and Harding and Hamlin,
Democrats.
Delano once said. to C.S.H. that after his appointment he told
Wilson
that if he had appointed him as a Republican, he ought
to tell
him that, although an Independet Republican, he had in fact
voted
for him - Wilson; that Wilson said that did not matter.
July 16, 1935. 141.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
70.
Eccle , Gov. (Cont'd.)
Glass has fallen from his high pedestal by re-)orting the
Senate bill calling for a reorganization of the Board.
By restoring the right of removal for "muse" he has made the Board
tenure depend u)on the will and pl-asure of the President.
The Board had a permanent status which has neiv been destroyed,
evidently because of the Supreme Court's decision in the
Humohrey case.
Glass is also responsible, C.S.H. feels, for the bi-partisan clause
which ultimately would make the Board a political body.
See - Glass.
July 16, 1935. 143.
C.S.H. hopes Roosevelt will have the courage to veto such a bill,
but Farley may dangle before his nose, 7 fat $15,000 jobs!
July 16, 1935. 114.
Thomas said that Kiplinger said last Monday aht Gov. Eccles, Miller
and Szymczak were likely to be reappointed on the new Board.
July 17, 1935. 146.
C.S.H. met Thurston in the corridor who said "evert_ing was going well".
July 17, 1935. 146.
The more C.S.H. thinks of it the more he feels that the explanation of
ThureAun's words "deeply gratified" must mean either that C.S.H.
is to be given a long term or perhaps is to be mad Vice Chairman,
,
certainly nothing less would "deeply gratify" him.
July 17, 1935. 147.
C.S.H. suggests to Gov. Eccles that a stenographer take down every
word that Glass utters in his radio address. Gov. Eccles approved
and asked C.S.H. to attend to it.
Thurston said later this address had been postponed to next week.
July 17, 19 45. 147.
Many papers are saying that the proposed reorganization of the Board
will make it independent of political influence.
This is nonsense.
The fact is the new Board will be politically controlled.
There will be no fear of the new Board showing the independence it did
in 1929 when it interfered with the big banks in tneir claim
that every speculator having good security was
entitled to borrow
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
71.
Eccles, Gov. (Contld.)
all he wanted if he would only pay a higher rate to
the
grs4tter profit of the banks.
July 17, 1935. 147.
.Miller called on Glass today and told Thomas ,hut
Glass seemed
open to conviction on the bi-partisan clause.
July 17, 1935. 148.
Miller called on Roosevelt and had a long talk with him, but
that
Roosevelt talked about ever:fthing 2?ccept the banking bill;
that he strongly criticised to Roosevelt the bi-part
isan clause
and thinks he made an impression on him.
July 18, 1935. 148.
Thsmas begged C.S.H. to call on Glass -aid discuss the banking
bill.
July 19, 1935.148.
C.S.H. asked Miller if he thought he - C.S.H. - should call
on Glass
and discuss the banking bill.
He said it was better not to call now; that Glass was overwhe
lmed with
work and looked sick and tired; that it might make him
suspicious.
C.S.H. asked Miller whether Glass was angry with him.
Miller said he would not put it as strongly as tnat,
but that Glass
was still "displea=ed" with C.S.H.
July 19, 1935. 149.
Miller admitted that he had asked for his interview both
with
Roosevelt and Glass.
On going out of the White House, Miller gave out an interview
opposing
the bi-partisan features of the bill.
(See scrap bsok, N. Y. Times)
July 19, 1935. 149.
Szymczak said he was to dine with Sen. Townsend tonight
and discuss
the banking bill with him.
July 22, 1935. 151.
Szymczak said Sen.
banking bill as
amendments with
and bi-partisan
on him.
Townsend seemed general y favorable to the
reported by Glass;that he discussed possible
the Senator and o-s,osed the reorganization
feature=; that he thought he had made an impre,sion
July 24, 1935. 153.
Glass begun his speech in Senate on the banking bill.
See - Glass.
July 24, and 25, 1935. 153, 154.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
72.
Eccles, Gov. (Contld.)
C.S.H. is reluctantly coming to the conclusion that Glass'
splendid record is reakening,%s shown by his support of the
Senate banking uill.
See - Glass.
July 25, 1935. 154
Glass, in nis address, ignored C.S.H.Is testimony that the
Open
Market Coanittee in 1931 refus, d to accept open market
policy
which Board favored.
July 25, 1935. 154.
See - Glass.
Glass also put in the bill the right of the President to remove
members for cause which ne struck from the Federal Re ,erve Act
in the Banking Bill of 1933.
July 25, 1935. 155.
This was done to get around the Supreme Court decision in the
Humphrey case.
Glass also defended the right of banks to underwrite, which was
forbidden by Banking Act of 1933,
He also favored making Board members ineligible for reappointment
after serving full term of 14 years.
July 25, 1935. 155.
This means that if a man were appointed at age of say 35 years, at
the age of 49 years, when in his prime, he would have to be47in
life all over again.
Under these circum,
tances tnere would be danger tnat he might curry
favor with the banks to secure a position when his term
expired.
The fnct is, the big banks do not want an independent Board. They
want it dependent ea the Treasury and tne President, feeling
sure they can do business with the latter.
July 25, 1935. 155, 1E6.
C.S.H. prepared a statemed in reply to ot er ste'ements of Glass.
July 23, 1935. 156.
See - Glass
Clayton said Gov. Eccles had been advised that 'the retirement
provision could be taken UD by the Conference Committee because
it was a salary auestiJn, aF the Senate increa sed
salaries
of the Board to t15,(Y)D.
July 25, 1935. 156, 157.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
73
Eccles, Gov. (Cont'd.)
".S.H. analyzes Glass's statements of yesterday.
July '5, 1935. 157.
The banking bill passed the Senate today at 3:30 p.m. in the
exact form reported by the Connittee, without a record vote,
except that an amendment calling for a central bank was
ovrwhelmingly dfeated, also an amenament relating to -tate
banks and one other.
See - scrap book.
July 26, 1935. 157.
The amendment for a central bank was defeated 59 to 10!
July 28, 1935. 158.
Goldsborough strongly attacks the bi-partisan clause and the
open market committee of 5, saying tne Senate Commitlee had
been dominated by the bankers.
July 30, 1935. 160.
Wyatt said today tht Gov. Harrison went around with Glass when
he received his honorary degrees.
Gov. Harrison is a Prince of Lobbyists!
Aug. 1, 1935. 160.
Gov. Eccles told C.S.H. he had acivised Goldsborough to apologize
for his attack on the Senrtte Com,
ittee.
Aug. 1, 1935. 160, 161.
Glass's action in denouncing Gov. Eccles's bill and later, with
Slight amendments, accepting it as a good bill reminds C.S.H.
of Disraeli's remark about Robert Peele:
He found the Whigs in bathing and walked away
with their clothes!"
Aug.
1935. 161.
The papers say Unde Sec. Coolidge is taxLing up the banking bill
representing the Treasury.
Thurston told Thomas this was so.
This looks like
P
blow at Gov. E.!
Aug. 8, 1935. 161.
Washington Post says Conference has agreed to drop Sec. of Treasury
and Comptrcller as ex-offik:io membyrs of Board and to add a
7th member.
Aug. 10, 1935. 166.
Daiger said confercncc would probacly drop the .,i-partisan clause.
Aug. 10, 1935. 166.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
74.
Ecclee, Gov. (Contid.)
The Board, with the sword of Damocles hanging over it, is
practically paralyzed!
Aug. 10, 1925. 166.
C.S.H. believes LIllier saw Gla-zs last Friday.
Thursday he was seeking an interview.
He told C.S.H. on
He was out of his office Friday P.m. and left for Boston in the
evening.
Aug. 11, 19:5. 166.
Wyatt said Miller saw Glass Friday and thac Maier sked him to
prepare a draft of an open market cl,ause for Clasp.
Aug. 16, 1935. 167
Thurston told '7.S.H. that maters, on the whole, were proceeding
satisfactorily.
He suggested that C.S.H. take a vacation.
He said, "Df course, you must be worrying, but I am absolutely
confident you will be reappointed and he intimated that a slate
had been made up which included C.S.H.
He said he had talked with many members of th Senate and
that
all agreed that C.S.H. and .aller should be reapp,inted; that
there was general dissatisfaction at Thomas and Szymczak, and
that they seemed to know little or nothing about James.
Aug. 12, 1935. 167.
He said that Talley, Williams of Cleveland and Jorm Williams, the
economist of Federal Re, erve Bank of New York, were being
considered as Republicans for the new 7th member.
He said he did not believe that Roosevelt would reappoint James.
He agdn reiterated his assurance that C.S.H. was all right.
Aug. 12, 1925. 167, 168.
Clayton told C.S.H. that Jesse Jones favored the bi-partisan clause,
saying it had worked Well in the R.F.C.; that every member of
R.F.C. regardless of their politics, always wished to cooper ,te
with the adm-inistration.
Aug. 12, 1935. 168.
Clayton and Thurston said it was rumored that the conference would
reject the bi-partisan cluse.
Evidently, up to date, all goes well!
Aug. 12, 1935. 168.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
75.
Eccles, Gov. (Contld.)
C.S.H. called by appointment on Sen. McAdoo.
cordial.
He was very
He spoke of the banking bill.
He said he was very sorry that reorganization of the Board was
required, and that new appointments had to be made.
C.S.H. asked if there was anything in the bill which would
prevent existing members from being reanpointed and he
replied, "Absolutely nothing."
He said he was opposed to the bi-partisan clause, but could nr
,t
say whether it would be stricken out in the conference or nat.
Heopressed deep regret that C.S.H. should be put to any annoyance
by the bill.
"Well, C.S.H. said jokingly "I hope you can conscientiously
recommend my reappointment".
He ouiCkly renlied - "You know how I feel towards you. When the
time comes get Walsh and Coolidge to ask for your reap- ointment
and I will back up their request and will do so with the
greatest pleasure.
Aug. 16, 1935. 171, 172.
C.S.H. asked Gov* E. what he could say to Schuyler Merrit, a le ding
Republican member of Congress with whom he was to dine tonight.
Gov. Eccles said he could well speak Lis opposition to the bipartisan clause.
Aug. 16, 1935. 172.
C.S.H. told Gov. E. that someone in Congress, he could not say
who (Sen. McAdoo) asked 7,.S.H.Is opinion as to Gov. Eccles
'abilities and that I gave him a high opinion.
Gov
E. seemed very much toubhed.
Aug. 16, 19C5. 172.
Gov. E. said he called himself a progressive Republican.
He said he did not think James ever claimed to be a Democrat and
that Miller even now did not know whether he was a Democrat
or Republican.
Aug. 16, 1935. 173.
Thurston told me that Roosevelt had gone to Hyde Park and, before
going, had instructed Ste gall, of the Conference Coenittee,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
76.
Eccles, Gov. (Cont'd.)
and Goldsborough, that if the issue becam et'e Senate bill
or no bill, to accept the Senate bill verbatim.
Aug. 16, 1935. 173
Thurston did not refer to C.S.H.'s chances in any %%ay but said
nothing to indicate any change in the situation as he had
heretofore statedit to C.S.H. He again urged C.S.H. to take a
vacation.
Aug. 16, 1935. 173.
The conferees agreed on the banking bill.
They struck out the bi—partisan clause.
They retained the open market clause passed by Senate.
They provided that all terms of present members should expire on
January 31, 1936.
They retained a general hold over clause, etc. etc.
Aug. 17, 1935. 174.
H.R. and Senatt adapted conference report without a record vote.
Aug. 19, 1935. 175
Wyatt says our salaries will be increased to $15,000 on passage of
the bill, and the Board at once becomes the "Board of Governors"
Aug. 19, 1935. 17b.
Under the bill any member may hold over after Feb. 1, 1936, until his
succeeeor is appointed and qualifies.
Aug. 19, 1935. 175.
C.S.H. telephoned congratulating Gov. E. saying the bill gave him
90% of -hat he asked.
He half agreed with C.S.H. but seemed rather depressed.
C.S.H. asked if he had better write Glass and he said he saw no
reason why he should not.
He thanked C.S.H. warmly for his loyal sufeeort.
Aug. '20, 1935. 176
Thureton expressed the hope to C.S.H. that Roosevelt would
reappoint the whole Board plus one Republican.
C..H. said Roosevelt could of course rearrange ;he terms if he saw fit.
Aug. 20, 1935. 176.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
77.
Eccles, Gov. (Cont'd.)
Thurston said Gov. E. wanted the 2 year term so that if he
wanted to, he could resign and resume his birnking business.
C.S.H. pointed out that to be Chairman he must have a 4 year term
at least.
Aug. 20, 1935. 176.
Thurston said Gov' E.stood too much in awe of Roosevelt.
Aug. 30, 19Z-5. 176
C.S.H. feels that Roos, velt may at any time throw over Gov. E.
Aug. 20, 1975. 176.
C.S.H., -fter careful deliberation, called up Glass in the evening
and asked how he felt after his prolonged struggle over the
banking bill and his work in connection l‘ith it.
At first he was very gruff and said he was not well; nor was nis wife.
C.S.H. asked if he could 0 down to say good-bye to him and he answered
very shortly and brusquely, - "Any time", and then C.S.H. thinks
he slammed up the telephone, or in any event we were suddenly
cut off.
Aug. 21, 1935. 177
C.S.H. called up Glass last night and he fixed 9:30 this a.m. for
an appointment.
C.S.H. called on him at the Raleigh Hotel.
He was fairly affable.
C.S.H. explained his testimony as to nominating Gov. E., and told him
that Miller and the other members (except James who C.S.H.
believes was away) had agreed to vote for Eccles as Govrnor.
Glass said that Miller must nave chlged his opinion of Gov. E. since
then.
eatners from that that Miller must have criticisPd Gov. E.
to Glass.
He seemed unequivocally to accept C.S.H.'s explanation.
C.S.H. said Gov. E. had grown steadily in office and that he spoke
in ni11 terms of Glass.
"That" sic Glass, "is because Gov. E. knows that you and I are old
friends."
He ras still bitter against Gov. E. and said all the banker: wPre
,
opposed to him.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
78.
Eccles, Gov. (Contld.)
C.S.H. asked why the Committee voted to have the Board
reorganized.
Glass said he did not know who first suggested it.
C.S.H. asked if, under it, Roosevelt could not rearrooint the
entire Board.
Glass said "Yes, of course" and the mrn:er of his reply indicated
to C.S.H. that he thought Roo,evelt would do this.
He added that he thought Gov. E. would not want any member
reapnointed who hd ever voted.against what Ile wanted.
He said he frvore a retirement sytem but that the administration
Senate Conferees opeoeed it and turned it down.
He said Gov. E. had not disposed of his holdings in his Holding
Company, as the law required and he spoke contemptuously of
Wyatt's oninion as to Gov. Eccles.
He said Wyatt came to him and begged him to consent to Gov. E.IE
confirmation, - a grossly improper thing to do.
He said Gov. E. had turned over his holdings in the same illegal
manner as did Ex-Secretary Mellon.
He said the clause forbidding Federal reserve banks to subscribe
directly to Government issues was not intended to prevent
short time special certificates for temporary Treasury overdrafts.
C.S.H. thinks good relations have been completely restored.
Aug. 23, 1935. 172, 179, 130.
Roosevelt signed the Banking bill today.
Aug. 23, 1935. 180.
Hollister, Re7ublican member of H.R. Conferene Committee gave in
the New York Times an abstract of the new banking bill and
said that Roos,velt clearly could reapi)oint all the present
members of the Board.
Aug. 25, 195. 181.
Curtiss said Gov. E. made a poor impression in Boston at the Beacon
society lunch; that he advoeated 100% reserves, and claimed that
deposit cr?dits are really mcney, etc. etc.
Aug. 27, 1935. 183.
Gov. Young :aid that, of course, New York would be represente
d -in
the New Nen :airket CanAittee
between New York and Boston,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Eccles, Gov. (Contld.)
as we'._
as New York.
Aug. 27, 1935. 183.
Roo evelt aanounce,„ that he will appoint Gov. E. as the first
Chairman of the Board of Governors of he Federal Reserve
System.
Sept. 18, 195. 189.
Thurston came in and said that Gov. E. flew to Hyde Park at request
of Roosevelt for an interview.
Thurston said he prepared a melliorandum for Roosevelt to ;11,re out;
that they had a most satisfactory meeting.
Sent. 20, 1975. 190.
Thurston said his guess was that Roosevelt would rea-o7:oint the
Whole Board.
SeTt. 20, 1925. 190.
Thurston said that altho Gov. E. did not want Miller reappointed, he
Thurston - felt it would be decidedly better to reapp int
every member.
Se-pt. 20, 1935. 190.
Thurston said Szymczak said that Gov. Harrison, tne other day, in
answer to his question whom he preferred
the new chairman,
after some hesitation, s.,id he preferred Under Sec. Coolidge.
O.S.H. believes Gov. Harrison is working nard to secure the place
for Coolidge, thus ousting C.S.H.
Roosevelt's announcement above, however, seems to settle this.
Sept. 20, 1935. 190.
Ec9nomi-t. 140.
See - Miller.
Edmiston. 112.
See - Eccles, Gov.
Election, R.I. 104
Eliot, Charles
Dines with us.
July 17, 1935. 150.
Emmett, Minister to Holland.
Mr. Houghton, at dinner, told H.P.H. that Mrs. Emmett had taken deep
interest in seeing that the Dutch Princess wore suitable clothes,
and, that ccomplished, was now deeply intereted in getting
a suitable husband for her; that the Queen was much incensed and
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Emmett, Yiinister to Holland (Contid.)
that he .--,xpected t any time they would pack their trunks
and leave Holland.
r1:1;:). 185, 186.
,
9
Ex-officio rm.-Taber:. 113.
See- Roosevelt
Executive CoLaraitte- , Federal Re=-Sept. 8,
3
erv eBan: New York
See - Federal Reserve Bank, New York
Expiration of ter. Holding over.
64. 65.
See - Eccles, Gov.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
81.
-F-
Feder!)1 Advisory Council
Did not meet with Board today.
Sent word that it would adjourn without meeting with Board
as it was not prepared to report on the banking bill and
might refer it to a Sub-committee.
Thomas said he was told that Gov. E. addressed them at the
Mayflower Hotel this morning for over 2 hours.
A most extraordinary proceeding.
No other member was present or invited.
Evidently Gov. El did not want us present lest our diversity
of views on the banking bill might be shown.
Feb. 20, 1935. 41.
Gov. E
told Board of his talk with tLe Council
He said that thJugh originally opposed to uhe bill, after he
had finished, all agreed generally to the bill, zatho many
suggested changes in particular parts.
Feb. 25, 1935. 45, 46.
The Council held a special meeting to consider its report on the
bankirg bill
Gov E.'as with them alone for 2 hours; while it slightly changed
its preliminary report, in the main they adhered to it.
Gov. E. did not a-k the Board to sit in, and 'liner ,trid C.S.H.
advised him not to do so, as it was really a personal matter
between him and the Counsel and if Board members were pressed,
it would reveal strong differences of o2inion in the Board.
April 10, 1935. 69.
The Council met with the Board.
They put a question in writinF to the Board as to future policy
as to preparing Government securities, pointing out the danger
of keeping nermanently in Federal reserve banks the present value.
Thomas, who presided, pointed out that no ouorum of the Board was
present, and that, therefore, the Board could not consider questions
of policy, in any formal manner.
Frost, of the Counsel, spoke at length, expressing merely his personal
opinions, and said that the Board should gradually sell or allow
to run off, Gover. Iment securities, to offset the
.
lar,;e gold iaports.
,
s
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
82.
Federal Advisory Council (Conttd.)
He adraitted, however, that such a polici might injure the banks
by depressing the price of Government bonds.
The Council was Dolled as to business conditions and was practically
unanimous in the cs- Anion that business conditions were rapidly
improving and ti.at a feeling of optimism was spreading.
Perkins, of N. Y., spoke of one business bui1ding being erected on
Broadway, N. Y. City, which had had every suite leased at fair
rentals before even it had been completed.
He also said residential property was being sold in suburban districts
around New York, before the residences had been completed.
C.S.H. was so pleased that at once wrote Roosevelt, and received a
most cordial reply from him.
See — Roosevelt.
Sept. 24, 19315. 193, 194.
Federal Reserve Act
See — Eccles, Gov. (Banking bill)
Hamlin, C.S.
Roosevelt
Federal Reserve Bank of Atlanta
Parker, Counsel, asked Board whether it would object to the bank
paying to the widow of Gov. Black the difference between what
he would have received had he remained Governor of the Bank and
what he actually received while Governor of the F.R. Board.
C.S.H. feels that the Federal Re erve Bank really loaned Gov. Black
to the Federal Reserve Boa.d at the urent request of Roo7evelt,
altho technically he resigled as Governor of the bank; that he
we.s on leave from his bank; that the directors in effect were not
increasing his salary by this payment, but were merely paying him
out of pocket expenditures while an leave at Washington. The
amount of the proposed payment was the sane as his out of pocket
expenditures.
Gov. Black left a_most no property and had forfeited a large amount
of insurance.
The Board finally voted to interpose no objection; each meMb ,r gave a
different reason for this.
C.S.H., as above, mit in on the ground that in essence the bank loaned
Gov. Black to the Federal Reserve Board, ad now pays him out of
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
83.
Federal Reserve Bank, Atlanta (Cont'd.)
pocket expenses incurred by his residence in Washington;
that is, although technically he resi,gned from his bank, he
really never left it.
Jan. 11, 1935. 8
Federal Re erve Bank of Boston
C.S.H. tried to have Osgood's salary increr.sed but Board felt
as he
was a new man we should wait awhile.
Jan. 23, 1935. 30.
Curtiss called up C.S.H. and said there were a number of imnorta
nt
banking questions which he wished to talk over with him.
C.S.H. said he would go on next weak to see him.
Aug. 23, 1935. 180.
Went to Federal Reserve Bank, Boston.
Long conference ‘Nith Curtiss and Gov. Young as to pending banking
matters.
Curtiss talked vaguely about resigning but the only reason he
could
give was that the Board turned him down on some minor
appointment.
He agreed with C.S.H. that the Board could go nothing is to
increasing
Osgood's salary now, but must await
tion by the future Board.
C.S.H. pointed out that Curtiss' term would expire on Decembe
r3lst
but that Board had not considered mater of his successor.
Curtiss said Gov. Eccles made a poor impression at the Beacon Club
lunch at Boston; that he advocated 100% reserves, defended deposit
credits as meney, etc.etc.
Gov' Young said undoubtedly as between New York and Boston, New York
would be on new Onen Market Committee, but that New York must
represent the views of Boston as well as New York.
Aug. 26, 1935. 182, 183.
Board requested C.S.H. to go to Bo -ton and t:tke up lira exchang
e
transacti ns of Industrial Trust Co. of Providence, R.I.
0.6.H. went to Boston and had a long discussion.
Gov. Young and Carrick.
Present, Curtiss
Gov. Young thought it vital not to forbid present Practice.
Sent. :39, 1925. 195, 196.
See - Industrial Trst Co.
See also: Open .'.arket Camaittee. 91, 92.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
84.
Federal Re,
iPrve Bank of Chicago
See - Open Market Committee. 91, 92.
Federal Re - erve Bank of New York
Miller or7)osed pronosed Open Market Committee of 5, in
Treasury
bill, as it would male Treasury and Fed-ral Res:rve Bank
of
New York dominan'.
June 1
.8, 1935. 16.
New York Journal of Commerce says the business directo
rs of the
Federal Reerve Bank of New York may resign banks because
of
attacks on the banks because of large excess re erves.
,
June 19, 1935 17, 18
Wall Street Journal criticised Board because in 1929
it would
permit Federal Reserve Bank of New York to increase discoun
t
rt es.
June 5, 1935. 103.
See - Federal Res,rve Board.
Miller vigorously attacked Federpl Reserve Bank of New York
for
insisting on increasing discount rtes in 1929 etc.
June 22, 1935. 120, 121, 133.
Glass attacked Board for not permitting Federal Reserve
Bank
of New York to increase discount rates in 1929 altho at the
time he praised the Board.
July 7, 1935. 132, 153.
See- Gla s
Miller sent Glass a copy of his criticism of Federal Reserve
Bank of New York, but Glass never adknowledged it.
July 16, 1935. 139.
The articles of B.I.S. make Federal Reserve Bank of New York
the central bank of U.S.
Harrison helped draw this.
Aug. 22, 1935. 181
See also:
Ooen Market Committee. 91, 92.
WMiams, JoHil H.
168
Federal Reserve Bank of Phil,delphia
Paul Cret, designer of, was aneointed architect of the new
Federal reserve building.
May 18, 1935. 94, 95.
See - Norrts Gov.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
85.
Federal Reserve Bank o. San Francisco
93
See - C.S.H.
Federal reserve bank stock, Purcna:e by Govt. 96
See - Morgenthau
Fedr-ral Re-erve Board
See - Class C directors
Deposit iccount
Eccles, Gov.
Eccles, Gov' (Banking bill)
Edmiston
Federal Advisory Council
Federal Reserve Bari:, Boston.
Federal Re=erv Bank, New York
Fed,
ral reserve notes
Federal reserve system
Glass
Hamlin, C.S.
James
Manhattan Co.
Mercantile Trust Co., St. Louis
Miller
Open !!arket Committee
Retirement system
Roo ,rw.lt
Salaries
Szymczak
Thom' s
Thurston
Votes
Wyatt
Federal Re_erve Branch, Pittsburgh 115.
See - C.S.H.
Federal reserve building
Glass wrote C.S.H. complaining because a Richmond firm of
construction engineers (not architects) had not been -out on
OUT list of 10 prominent arbhitects to compete for our buildIng.
C.S.H. answered him and Glas:, replied.
Feb. 12, 1935. 37, 33.
See - Glass
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
86.
Federal reserve building (Contld.)
The jury met to consider the plans submitted by the architect
for our new building.
Morrill came in and said th -re might be a dissenting. report.
Later that :fternoon, the juxy agreed upon a i.euorandum retort, in
favor of the plan numbered 7.
As James was away Board d cided not to open plan 7 until tomorrow
when James would have returned.
May 17, 1935. 94.
Board met - all present except Sec. Morgenthau - and voted to .iccept
plan 7, without knowing who the architect was
The envelopes containing the plan were then opened and then, for the
first time, the Bonru found that plan 7 was the plan offered by
Paul Cret, of Philadelphia.
He had designed the Pan knerican bu lding and also the •eddit'on to
the Federal Reserve Bank of Philadelphia.
May 18, 1935. 94, 95.
C.S.H. asked Meigs his advice as to the other plans. He said
one plan offered by a New York architect - Mr. Pone No. 3 - and
and Rogers No. 4 - was almost as good as that of Cret; the plans
of Delano and Coolidge were among the poorest of the lot.
May 18, 1935. 95, 96
C.S.H. is almost inclined to believe that Glass is vindictive because
his Construct Co. clients were not put down on our list of
aninent architects.
July 16, 1955. 144, 145, 146.
July 24, 1935. 154, 155.
See - Glass.
Federal reserve notes.
C.S.H. sent Sen. Townsend a mahoralndum showing Ynat the Federal
Reserve System would save about $470,000 annually by abolishing
office of Federal Reserve Agent and doing away with collateral
on Federal reserve notes.
June 5, 1935. 102.
Federal reserve system
While the banking act in its subst-ntial features was .e decided
improvement on the development of the System, the destruction of
the independence of the Federal Reserve Board is a terrible blow.
If C.S.H. were vindictive he would say - The Federfl Reserve Board,
created by Wilson with tie assistnmo- of Glass, but destroyed by
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
87
Federal Reserve Sy,iem (Contid.)
Glass with the assistance of Roosevelt!
July 16, 1935. 144.
FIEI, Janet
We took, one, Pierre du Forthamae of Belgium to dinner nt
Woman's National Democratic Club.
Jan. 25, 19:5. 21.
Calls on us.
Mar. E, 1935. 47.
Dine- with us.
May 19, 1935. 96.
Calls on us.
itlay 30, 1935. 99.
We drive Mis, O'Reil_y and Janet Fish to s e the pond lily farm.
7,
July 14, 1935. 139.
Dines with C.S.H.
Sept. 16, 195. 187.
Sept. 23, 19E5. 192.
Fitzhugh, Mr. & Mrs.
We lunch rith.
April 21, 193!). 74.
Flint, Mr. & Mrs.
We lunched rith.
Pres en t, ''ritish Ambassador, et al.
April 7, 195. 69.
"!or others"
See - Loans for others.
Forrester, iss. 74.
See - 1, ationa1 Theatre.
i
Forthanae, Pierre
We meet, of Belgium at lunch with Under Sec Phillips.
Jan. 20, 19:5.18.
We take, to dinner :it Woman's National Democratic Club.
Jan. Y.5, 1935. 21
Frtmce
See - DeLaboulaye
Frankfurter, Felix. 54
See - !!cReynolds, Justice
Fraser-Lemke mortgage till.
Supreine Court holds, unconstitutional.
May 27, 19E5. 97.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
88.
Freeman, BJshol,
Mrs. John Lawrence told H.P.H. that, did cettainly rap the
RooE.evelt admin1strati3n in his ,ermon thls p.m. Sunday
to the Colonial rames.
April 28, 1935. 78
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
89.
-G-
Garden party
We attend, at Asst. Sec. Moore's at Fairfax, Va.
May 19, 1935. 96.
Gerry, Sen. & Mrs.
We dine at Democratic Club to hear Sen.Gerry
Tvak on the Navy.
Jan. 25, 1935. 21.
Mrs. Hull told H.P.H. yesterday that Roosevelt
said to her once tIvit
he understood that Mrs. Gerry was to be elect
ed President of the
Woman's National Democratic Club; that she said
No it was Mrs. Meigs;
that Roosevelt said, "I don't think Mrs. Gerry
is much of a Democrat:"
Feb. 13, 1935. 39.
Giannini
Wrote C.S.H. asking for a stz.tement of criti
cisms of the Bank of
America in connection with aprlication of Trans
america Company
for a voting permit.
He asked for a hearing on January 16th.
This a.m. Collins, his attorney, called ;Aid C.S.H
. told nim he would
lay his request for a he•ring before the Board nt
the next meeting;
that of course he would be told Just -11.?t, condi
tions would be
put in tne voting permit but the Board had not
yet decided upon
them and might have to consult the Countrolle
r; that it would
hardly be possible to do this before Janua
ry 16; that C.S.H. would
be glad to see him informally at any time.
C.S.H. asked Morrill to see Gov. Eccles and
arrange for a Board
meeting on Monday to decide as to sending
Giannini a formal
notice to the effect that he would be give
n a hearing at some time,
as C.S.H. could not take the responsibility
of giving this
assurance.
Jan. 5, 1935. 4, 5.
(Later Board directed Morrill to inform Giann
ini that a hearing
would be accorded him, which Morrill did.)
Gilbert, Parker
C.S.H. saw, coming out of Gov Eccles room.
1L7trch 28, 1935.63.
Gir%rdeau, Janet
Dined with C.S.H.
Aug. 24, 1935. 181.
1.:rs.Girardeau and Janet dine with
C.S.H. at Cosmos Club.
Sept. 11 1935. 187
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
90.
Glass, Sen.
Miller saic. Glass told him the other day that if Roosevelt had
vetoed the Thomas amendi::ent, there would not have been 15
votes in the Senate case in favor of overriding the veto; th:It
he personally knew this; that Roosevelt made a fatal mistake
in yielding to the inflationists.
Jan. 4, 1935. 3, 4.
Glass is holding un Gov. Eccles' nomination in the Senate.
Jan. 23, 1935. 21.
Voted to enter the World Court.
Jan. 28, 1935. 22.
Glass accuses Gov. Eccles of bad faith in not showing him the
draft of the bill to change Federal Reserve Act before it was
sent to Congress.
Gov. Eccles explained th t he did not know it was so soon to be sent
to Congress.
(See scrap book, N. Y. Time: ).
,
Feb. 3, 1935.34.
The Senate Sub—Committee has been increased by 3 members.
This is a blow at Glass.
The intimation is thrown out that the full Committee and not the
Sub—coniittee will consider the bill.
Feb. 5, 1935. 34.
Sen. Owen says he and not Glass was the author of the Federal Reserve
Act; that Glass is trying to s:cure prestige to which ne is not
entitled.
C.S.H. think Glass wishes the intercel,ted cable to Musher
of Owen's secretary.
Feb. o. 1935. 34.
Glass attacks Sen. Owen and charges that he speculated in foreign
exchange with an ex-convict (Musher) while on the Banking and
Currency Committee.
Owen replied in a very equivocal manner.
Feb. 6, 1935. 36.
Glass wrote C.S.H. a few days ago complaining because his constituents,
a Richmond firm of construction engineers, had not been put on the
list of 10 eminent architects to compete for our new F.R. building.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
91.
Glass, Sen. (Cont'd.)
Glass said Miller and C.S.H. promised him that this would
be done.
„d.S.H. wrote in answer, for nller and himself:
1.
Have no recollection of any such promises.
2.
At tht time Board had not decided whether to
appoint the list of architects itself or to
get expert advice.
3.
Finally referred the cluestion to its expert
adviser Meigs and asked him to consult with
Moore, Chairman of Fine Arts Commission.
4.
Moore gave us a list of 10 from wnich we chose 9.
5.
The Richmond concern are construction engineers
and not architects.
6.
The construction firm wrote Board that if -out on the
list it would nave a skil_ed architect cooperc_te with
it.
Had the firm been out on our list of 10, there would
have been hundreds of concerns who would make the
same suggestion as to cooperating with a skilled
architect.
There actually were some others who made the same
snggestion but were turned uown by the Board.
See - Scrap book.
Feb. 12, 1935. 38.
(Glass replied that we did make the promise and that he at
once
so advised the Company.)
Cowptroller told C.S.H. that Glass and McAdoo both told him they
were confident they could defeat Gov. Eccl-s' confir
mation.
Mar. 27, 1935. 63.
Gov. Eccles told C.S.H. that Glass and the 1;. Y. bankers
used
every effort to defeat nis confirmation; th-t they even got
Ex-Senator Reed Smoot to oppose him.
He saia Glass was adamant against nim.
April 'a, 193b. 77.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
92.
GlaFs, Sen. (Cort l d.)
Gov. Eccles said ie called on Glass a few days ao .nd had a very
pleasant talk with him, but nothing was said Els to his
confirmation, that Wyatt also called on Glcs but could not budge him.
Gov. Eccles is resentful against Glass.
April 26, 1935. 77.
Glass kept ur.a runninr fire of questions to C.S.H. while he was
testifying before Senate Sub—committee.
He bitterly attacked the power of the Board to initiate di count
rates.
C.S.H. did not refer to his letter to Attorney General in 1919
when
he was Secretary o_ Treasury, in which he argued that it was
the
plain intent of Congress to give the Board that power.
Nor did C.S.H. use the Board records, which he had with him
to show
that Glass in 1920, cast the deciding vote to initiate a 6% rate
at Federal Reserve Bank of New York.
Sen. Byrnes, however, asked C.S.H._ vihether McAdoo was the Secretar
y
rid C.S.H. said it was Glass.
June 3, 1935. 99, 100
Glass asked C.S.H. when he was testifying before the Senate Sub—
comiittee whether his diary would not show that he doubted whether
the Board could legally initiate discount rates. C.S.H. said No.
Glass facetiously said he kept no diary as C.S.H. did.
Glass said the Secretary of the Treasury was not bound to follow an
oninion of the Attorney General asked for by him.
C.S.H. said he thought he would be bound, but he spoke mbject
to
correction.
Glass again made the assertion.
June 3, 1935. 100.
Wyatt said C.S.H. was right in saying to Glass that a secretary
is bound by the opinion of the Attorney General.
Wyatt said an order issued by Wilson during the war and still in
force prescribed this.
June 3, 1935. 100.
Glass was very rude and almost discourteous to C.S.H., who bore
himself ouietly, refusing from showing up Glass's inconsistencies
as he wanted to win over Glass to general supeort of the banking bill.
june 3, 1935. 100.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
93.
Glass, Sen. (ContId.)
C.S.H. received mnny congratulations, especially from Thurston
and Gov. Eccles.
One newspaper correspondent aid to C.S.H., "My God! you showed
sand in facing Glass!"
He referredparticularly to C.S.H.'s statement taat if Board was made
indepenient he would nominate Gov. E. as Governor.
June 3, 1975. 101.
Miller told Thurston that C.S.H. was technically right in his
testimony but that Glass was substantially right.
This is a bilateral statement.
June 4, 1935. 101.
As C.S.H. has often staled in his diaries, he considers Carter Glass
one of the great statesmen of this generation. He now has a
wonderful opportunity to make the Board independent in law as
it now is in fact and to make the Federal Reserve Act stronger
tor adding to powers of the Board the essential features of the
proposed amendments, seeing to it that they are consistent
with, or are made consistent with, the principles of the Federal
Reserve Act.
June 4, 1975. 102.
Miller intimated that Glass was very angry with C.S.H. because of
June 6, 1935. 104.
his testimony.
Mrs. DuBois, nt dinner with us, said her husband told her that
C.S.H.'s testimony was the most valuable given, and that .11
the newspaper correspondents admired the courage of C.S.H. in
standing up against Glass.
June 6, 1935. 104.
Thurston told C.S.H. that Miller's criticism of C.S.H.'s ;estimony
was simply his statenent to Glass that he would nominate Gov. E.
June 7, 1935. 103.
7.S.H. wrote Glass as follows:
June 7, 1935.
4
Dear Senator Glass:
I am very sorry we could not coale nearer together
on the subject of the proposed banking bill. You were kind
enough to speak of my diaries several times.
Were you to cross nuestion me today, however, I
should have to disclose to you the following entry which I
made on June 4, the .ay after I testified:
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
94.
Glass, Senator (Contld.)
"As I have often stated in these diaries, I consider
Carter Glass one of the great statesmen of this generatin.
He now has a w) nderfnl op-eortunity to make the Federal
Reserve Board independent in law, as it now is in fact,
and to make the Federal Reserve Act stronger by adding
to the power of the Board the essential features of tne
pre'..osed amendments, seeing to it tnat they tre consistent
or are made consistent with the principles of the Act.
The letter closed with regards to Mrs. Glass, who was ill.
June 7, 1935. 105.
(Sen. Glass never acknowledged the 9,6017(_: letter.)
Gov. Eccles told C.S.H. how fully he appreciated my telling
Glass I would nominate him for Governor.
C.S.H. told him he had to say this, because he feared the
Cea-dttee might think that the claim of the Board for
independence meant that it wished independence in order to
displace Gov. Eccles.
Gov. Ecdle -3 -aid the rumor was that Miller wanted independence in
order to displace him.
C.S.H. told Gov. Eccles, in jutice to Miller, that he had no such
purpose; that on the contrary, C.S.H. had asked him and the other
members (exce-pt James, who was not in office at the time)
and
and all agreed to vote for Gov. E. when end if
C.S.H. nominated him.
June 7, 1935. 106, 107.
O.S.H. did not intend to affront Glass, who hates Gov. E., by the
above statement.
He made it simnly to correct the false rumor stated above.
June 7, 1935. 107.
C.S.H., as a fact, was most considerae towards Glass in his
testimony. He felt tney were old friends and his effort was to
win Glass over to sunT:ort of the bill and not to alienate him.
For example:
1.
Glass had often said during tne h arings tnat when
he was Secret'try of the Treasury he dominated the
Board and looked on it as a mere Division of the
Treasury.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
95.
Glass, Sen . (C,ntld..)
C.S.H. had in his pock -t Glass's letter to Gov.
Harding dated Jan. 10, 1920, just 10 days before he
resigned as Secretary, absolutely denying any domination:
C.S.H. did not refer to this.
2.
Glass denied that he had ever favored initiation of ditount
rates or tilat he had ever so written to the Attorney General.
C.S.H. ir.,(1 with him Glass's letter to Attorney Gen.:ral, dated
Dec. 4, 1919, stating that Conc:ress clearly intended
to give and had clearly given tnis power to the Board.
C.S.H. did not refer to this.
C.S.H. also had the Board's records showing that in 1920
wnen the Board was tied, Glass cast the deciding vote
in favor of initating a 6% discount rate at the Federal
Reserve Bank of New York.
C.S.H. did not use this.
Glass's na:ne was droloPed into this by Sen. Byrnes who
asked who was secretary .t above time, nd C.S.H. had
to say Glass, but he did not prompt the nuestion in any way.
3. Later in the proceedings Glas said this was no evidence
that there had been any trouble in the Nen Market
Cou.ittee asto policy, utterly inoring C.S.H.'s testimony
that the Open Market Coa_ittee in 1931 voted 11 to 1
against the Board's policy of buying WO millions Govt.
securities.
4.
Glass later also attacked Board for refusing to permit the
Federal Reserve Bank of New York to increase discount
rates to 6%.
Yet, when that dispute was on Glass attacked the Federal Reserve
Bank of New York, - aying it had used every means, fair and
foul, to force the Board to take this action, thus
penolyzing agriculture and commrce.
Glass denied that an opinlon of Attorney General was
binding on the Cabinet.
0. .H. knew to contrary but said nothing.
For complete list of Glass' incousisten:ies see scra_,
The abo-ve should satisfy any reasonable man that C.S.H. went to
the
in protecting his friend Glass.
Jan. 7, 19:M. 107, 103, 109.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
96.
Glass, Sen. (Contld.)
Miller is evidently in close touch with G1a9r.
He said G1a
would insist on making our Board independent.
Re said Glass bitterly hated Gov. Eccles.
He said Glass was displeased et C.S.H. for saying he would
nominate Gov. Eccles for Governor.
June 22, 1935. 118, 119.
C.S.H. told Miller wily he made that statement to Glass.
spoke of rumor that Miller wanted independence of Board
in order to oust Gov. E.
C.S.H. said Miller agreed with him that the Board would reelect
Gov. Eccls and that he would so vote.
June 22, 1935. 120.
Everyone this Glass was resronsible for clause requiring new
nominations of th Board.
,
July 3, 193e. 128.
C.S.H. looks with inter.i,st to see what Gless will say on
reporting the banking bill to the Senate.
The so-called "Independent Board" is a mockery.
Each member is removed unless newly apinted.
Only 4 members can belong to one political narty.
The new term is 14 years but no reap-uointment is permdtted.
The President still appoints the Governor of the Board.
The President may remove "for cause".
It would be hard to imagine a less independent Board!
It is utterly bad.
There is an element of vindictiveness in this Provision!
July 7, 1935. 132.
Miller said he was going to try to see Gl-ss; that he had
sent him a co-py of his article critLcj.zing the Federal Reserve
Bank of 7;ew York but uhet Glass had never acknowledged it.
July 16, 1935. 139.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
97.
Glass, Sen. (Contld.)
C.S.H. feels Glass has fallen from his high pedestal in
favoring the Sen'te bill.
During the hearings he showed clearly he wanted a really
independent Board, yet now he favors destroyin,e that
independence.
The original Federal reserve Act allowed President to remove
for "cause"
Wilson construed this as meaning that the members held office
at the will and pleasure of the President.
In the Banking bill of 1933 the power to remov
stricken out.
for cause was
Wyatt paid Glass personally said this must go out in order to make
the Board more indepenaent.
Now, how-ver, Glass has restored the words "for cause" and has
thereby de-troyed the independence of the Board.
July 16, 1935. 141, 142.
C.S.H. feels it would alost be just to say:
The Federal Reserve Board created by Wilson, Glass
assisting, but destroyed by Glass, Roosevelt nasisting.
July 16, 1935. 144.
C.S.H. fears Glass is vindictive because C.S.H. and Miller did not
put the construction engineers, his conetituents, on the list
of 10 eminent architects to compete for building our new
Federal rserve building.
Of course we never promised cllass to do this, although he claims
we did.
We could not have made such a promise even if we had wanted to,
for we were only a Committee and the Board would have had to
decide this.
Furthermore at thht time we had not decided as to he form of
competition and whether or not we should have a cometitien.
C.S.H. wrote Glass that his constituents were not architects at all,
but merely construction enfcineerc, and that in their written
letter they said that if chosen they would associate with
themselves some skilled architect!
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
98.
Glass, Sen. (Cont'd.)
Glass replied that we did make this promise and that he at once
so ad-dsed his constituents.
C.S.H. fears Glass may be vindictive because of C.S.H.Is str:tement
that he would nominate Gov. Eccles.
It is difficult, however, to believe that a man of Glass's calibre
would descend to such petty malignity:
Perhaps we shall know better when he addresses the Senate.
July 16, 1935. 145, 146.
C.S.H. suggests that we have a stenographer take down Glass's
radio address.
July 17, 1935.147.
Miller went to see Glass today.
Later he told Thomas that Glass at first was rather cold but
finally warmed up considerably.
Hiller said he attacked the bipartisan clause and that Glass seemed
open to conviction.
July 17, 1935. 148.
Miller did not tell C.S.H. about his talk with Glass.
July 19, 1935. 148.
Thomas begged C.S.H. to call on Glass.
July 19, 1935. 148.
C.S.H. called up Miller f.t his home, just as he was leaving
for the White mountains and asked him if he - C.S.H. - should
call on Glass.
He said it was better not to call at the present time; that Glass
was overwhelmed with work and looked sick and tired out, and that
it might make him susicious.
C.S.H. asked if Glass was still angry with “im because of his stfAament
as to nominating Gov. Eccles.
Miller said he would not p_A, it as strongly as that, but he thought
Glass was displeased t C.S.H.
July 19, 1935. 149.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
99.
Glass, Sen. (Centtd.)
Miller 'emitted to C.S.H. that he had asked l'or his interview
both with Glass an Roosevelt.
July 19, 1935. 149.
Glass begins his stetement to the Senate in the bank
bill.
He criticised the Board for not aprrcving the 6% di:count rate
at New York in 1929, altho ne admi_ted it it would have been
purely psychological.
C.S.H. feels tnat it would have been more thaapsyciloloreical,
for ure l'armer and small business men, dependent for
their lives on short term credit, to have their discount
rates increased from 44, perhaps to 10%, in order to nroduce
a psychological eflect on Wall Street speculators!
July *24, 1935. 153.
C.S.H. prepared a memorandum in answer to Glass's statement that
the Board did nothing in 198.
July 25, 193s. 153.
In sneaking of Open market operations Giese said the whole Board
testified that there hd never teen an instance of disaFereement
between the Board and tne Open Uarket Coueittee.
In el.ying this Glass completely disregarded O.S.H.Is testiewny thet
New York, in the vote in 1932, were 11 to one against the
Board policy of buyine:300 millions of Government securities.
Glass also said that when he was Secret ,ry of the Tre sury he
leoked on the Board as, and treated it as, a division of the
Treasury:
This in f ,ce of his letter
o Gov. Harding- in 1920, alluded to abow.
July 25, 1935. 154.
3.S.H. is reluctantly coming to the conclusion that Glass is falling
off from his old splendid record.
His memory clearly is failin; and he seems to have a vindictive feeling
towards the members of the Board.
Has this grown out of our failure to put his constituent on the list
of 10 eminent architects?
Furthermore, inst =ad of making the Board really independet as he
said he wisned to do, he has stripped the Board of Pvery vestage
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
100.
Glass, Sen. (Contld.)
of indepenaence it ev2r had, by making the m-mb-rs ineligible
for reap7ointment after a 14 year ter.,, and by m:..king
them removable for "cause" by the President.
Glass evidently agreed to reinstat, the word "cause" which he struck out
,,
in the banking bill of 1.33, - in order to avoid tile Supreme
Court decision in the Humphrey Trade "omission case.
July ;?5, 1975. 154, 155.
Glass also !'evors giving back to the banks the right to underwrite,
taken away by the banking bill of 1933.
This means that they can place these undrwritings unon the public.
Furthermore, the bar on any reap?ointment means that a man say of
35 years 'ccepting an appointment knows that at 49 he will
Ivive to go back and earn his living.
Under such circumstances a weak man might curry favor with the
banks as his term approached an end, in order to secure some
position from tnem.
It is a sickening mess!
July 25, 1935. 156.
C.S.H. prepared a memorandum in reply to Glass's charge that Board
failed to increase rates in 1928 and 1929.
July 25, 1975. 156.
See - Scrap book.
C.S.H. analyzes Glass's statement of yesterday.
July 25, 1935. 157.
See - Scrap book.
Wyatt told C.S.H. tlaat Gov. Harrison travelled around with Glas-s
when he received his honorary degress from various colleges.
Query:
Did Gov. Harrison induce the colleges to grant
ti-eadegreel
Aug. 1, 1935. 160.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
101.
Glass, Sem- tor (Conted.)
Glass's action in acce-oting so many of Governor Eccles'
suggestions il the proposed bill, with very slight
amendments, reminds C.S.H. of Disraelils statement that
Sir Robert Pe, 1 found thf Whigs in bathing and walked off
,
witn their clothes!
Aug. 2, V2-35. 161.
C.S.H. tnin%s Miller saw Glass
to see him.
Friday.
he told me he wanted
Miller was out of his office Friday p.m. and left for Bo,ton in
the evening.
Aug. 11, 1935. 165.
Wyatt said Miller saw Glass Friday and directed him to prepare
a dr.ft covering open market operations for the new bill.
Aug. 12, 1935. 167.
Gov. Eccle=- told C.S.H. he saw no objection to hi-n - C.S.H.
calling on Glass.
Aug. 20, 1935. 176.
After much thought, C.S.H. called up Glass.
C.S.H. asked him how he felt after his strenuous work.
He replied very gruffly that he was not well, nor was his wife.
His manner was cold and gruff.
C.S.H. asked if he could not call and say good-bye to him and he
answered very shortly - "any time".
After that C.S.H. thinks he slammed up his teleohone - in any
event we wer3 cut off.
Aug. 21, 1935. 177.
C.F.H. called up Glass at 7:30 p.m. and he fixed 9:30 a.m. tomorrow
for an interview.
00
,,
Aug. ,, 1935. 178.
C.S.H. called up Glass at Hotel Raleigh and he seem d quite affable.
C.S.H. explained why he said he would nominate Ec?les and told him
that Mill ,r told me he would vote for him, if I nominated him
and tnat all the other members gave the name promise axceot
James who was not in the office when I sooke to the others.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Glass, Senator (Conticl.)
The seatement as to Miller evidently surprised Glass greetly
for he caid, - "Dr. Millr has evidently changed his oninion
of Gov. Eccles greatly since you seoke with him."
When C.S.H. finished Glass seemed to accept C.
unequivocally.
H's explanation
th— praised Gov. Eccles and spoke of his courage in
throwing over the Treasury open market plan, and added that
Governor Eccles always spoke of Glass with respect and
appreciation.
Glass -aid - "Thit is because he knows that you and I
friends!'
re old
Glass was still bitter towards Gov' Eccles and said all :he bankers
were opposed to him.
Aug. 23, 1935. 178.
C.S.H. asked Glass why the Committee insisted on reorganization
of the Board.
He said he did not remember who firt suggested this.
C.S.H. asked if under the clause Roosevelt could not reappoint
the whole Board.
Glass said "Yes of course!" and his whole manner indicated that
he expected RooscvElt to do this.
He ad'ed, how. ver, that he believed Gov. Eccles would want droned
from the Board every member who had ever voted against his views.
Aug. 23, 1935. 179.
Glass said he favored c retirement system but that the dministration
Senate conferees opposed it and turned it down.
Aug. 23, 1935. 179.
Glass said Gov. Eccles had not parted with his holding company end
banking interests in compliance with the Fed -ml Reserve Act,
and spoke contemptuously of Wyatt's opinion.
Aug. 2:3, 1935. 179.
Glass said Wyatt came to him and begced
to have Gov. Eccles
=firmed, - a grossly improper thing to do.
Aug. 23, 1935. 179.
Glass said the caluse of the bill preventing Federal reserve
banks from making direct purchases of Government pecurities from
the Governor was not intended to prevent Government overdrafts
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
103.
Glass, Seni,tor (Cont'd.)
for a few day periods at quarterly da;fs, siving special
certificates therefor.
Aug. 2:=, 193b. 179.
Glass said Gov. Eccles had no more disposed of his holdings
than did Mellon or C.E. Mitchell.
Aug. 23, 1935. 179.
C.S.H. believes his old relations with Glass have been restored.
Aug. 23, 1935. 180
Glover, Mr. & Mrs. Carroll
Dined with us.
Sept. 8, 1935. 184.
Gold
Miller said some one tol.d him that a Supreme Court Justice said
that if the Board had stood pat in this matter of seizure
of their gold by the Treasury, they could Irve won out.
Miller thougLt the Justice was Brandeis.
Jan. 4, 1975. 4.
Gold clause decision
:Liller said a justice of the Supreme Court sent for him and
talked with him z•Lcout the economic phases of the pending suit.
The Justice expressed no opinion, but did speak of the wealcness
of the Government attorneys.
Jan. 14, 1935. 14.
Mrs. Hart, wife of the Rector of St. John's, told C.S.H. nt
dinner it Mrs. Neffa, that recently she said to Justice Roterts
of the U.S. Supreme Court that same time she wished he would
explain the gold nuestion now before the court, to her; that
Justice Roberts said he could explain it easily to her in JO
minu- es; tt, it was very simple but if currency questions
,
were involved, it would be very intricate.
C.S.H. thinks this means that the Court looks tuson n bond contract
as a contract to asliver gold as s commodity.
If this is so the Court will probably ride that the corporations
and the Government have violated their contracts rind that
the bondholder is entitled to danages, if he can prove any.
He probably could not show damage if he were an American citizen
as the paper money he receives for his bond has a great purchasing
power new as gold had when he (theoretically) gave gold for
the bond.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
104
Gold clause decicion.(Contld.)
A foreigner could show &image as the paper ..nney ie rec,- ives
here would not buy as much abroad as would gold.
Feb. 4, 193. 30, 31, 32.
The U.S. Supreme Court decides gold clause case in favor of
the Government by vote of 5 to 4, as to privn.te corporation
gold bonds, holding that the Government hnd norer to
ir7air validity of private conracts.
The Court held that as to U.S. bondsthe refusal to
nay gold was wrong but no bondholders could show damage,
just Ls in the private corporation case.
Feb. 18, 1935. 40.
We drove Ju:-tice McReynolds home from dinrer
t Judge Covington's.
He spoke freely of the gold clause decision, saying it was a
ridiculous conclusion from false prenlises.
Sneaking of damages he said he was reminded of the story of the
man who sued another for assault, resulting in closing of
.stified he could not tell what his
both his eyes and who t,
because he could not see it with his own -yesl
damage was
Feb. 23, 1935. 45.
We breakfasted with Justice McReynolds.
He was very Litter over the gold clause decision and said the
people did not seem to comprehend what a shocking decision it
was, - that the Government could invalidate a private gold
contract and make a profit entered on its books from the
seizure and yet not be bound to pay damages for its
direct appropriation of private property:
He cnid there was nothing left of the Constitution.
lie said he .-.ad a little money to invest but did not know what to
do with it.
He was very bitter towards "the two Jews" on the bench.
He said Brandeis was discovered by Attorney General Gregory who got
him to look into the New Haven P.R. situation.
He said Cardozo was even worse than Brandeis and that no one could
really understand his otinicns.
He said Felix Frbmkfurter handled propaganda for Cardozo and
that Hoover finally fell for it.
He spoke conte:zptuously of Hoover.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
105,
Gold Clause decision (Contld.)
,
He sid Frankfurter was a cro k.
He said Parker would have made a much b tter Judge than
Cardozo, and that if P-Irker had been on the bench, the
gold clause decision \soul(' have been reversed!
He f:lt Roosevelt did. not comorehend that the country was headed
for irretrievable di;aster.
March 17, 1935. 53, 54, 55.
Goldenwei-,er
Testified before H.R. Coaiittee on banking bill and introduced
before the Commit, ep
stabilization clause put in by
in 1928.
March 27, 1935. 57.
See - Currie. 183.
Deposit liability.
Goldsborough, Con.
87, 89, 90, 160.
See - Eccles, Gov.
Retirement provisions.
Gordon-Curaning, Mrs.
Writes C.S.H. a birthday letter.
Aug. 30, 1935. 184.
Government securities. 25, 33.
See- Open market Comaittee
Governor
Gov. Eccles -aid he preft-rr d to have the Board appoint
each Governor but that the Treasury Committee was unanimously
opposed. to this.
Feb. 1, 1935. 24.
;
Miller objected to making the Governor a political office changing
when the administration changed.
Feb. 4, 1935. 29.
.
See - Eccles, Go- .
Oven mc..rket
Governors ConferencP.
May 27, 28, 1935.
98
See - Open Market Co=ittee.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
106.
Grant, Catherine
We dined with Fred Delano to mect, and 3 of h r children.
Jan. 1, 1935. 2.
We have, and 111- children at lunch at Democratic Club.
Jan. 4, 1935. 3.
Writes C.S.H.
Jan. 11, 1935. 9.
Calls on us with her si7ter, Ers. Hotallint;.
C.S.H. sent her flowers.
May 16, 1935. 93.
2.S.H. writes.
June 17, 1935. 115.
Writes C.S.H. a sweet note of sympathy at death of George.
July 12, 19,?5. 138.
C.S.H. writes.
July 15, 1935. 139.
Writes C.S.H.
Aug. 1, 1935. 160.
Grvyson, Admiral
Wrote Metropolit,qn Club that he knew Sec. Morgenthau and
fvored his election.
Feb. j0, 1933. 42.
Greenbacks
Miller said if the administration wants an issue of, it should
be done at once and end the uncertainty.
March 7, 193t:. 50.
See - T-omas amendment. 33
Gregory, Ex-Attorney General. 54.
See - McReynolds, Justice
Griffin, Katherine
H.P.H.
Oe.
Left Albany at 6:15 a.m. and arrived Washington ab ,Ait
5 p.m.
Bertie gave her a room at Woman's Democratic Club.
May 3, 1935. 82.
Writes -weet note of sympc.thy at Georffe's death.
July 11, 1935. 135.
Gronna, Judge and Mrs.
We meet, at dinner ttEmily Newell Blair.
Feb. 28, 1935. 47.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
107.
G-ror.na, Ju:ige and Mrs. (Cont' d.)
We dine with:
Present — Chief Justice Hughes,
Justice and Mrs. Stone
Judge Parker (rejected by Senate for Su:Dreme Court)
et. al.
May 11, 1935. 88.
Ground hog lay
Saw her shadow.
Feb. 2, 197,5. 25.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
108.
Hale, Rachel
Wrote C.S.H. thanking her for the articles fromthe Democr-ttic
digest on "His Lordship's Kindne:s" which he sent her.
April 7, 19: 5. 69.
;
C.S.H. answered letter of April 5 saying she had refused to
release her home to Asst. Sec. Woodring.
April 16, 1935. 73.
C.S.H. called on.
May 24, 1935. 97.
June 17, 1935. 115.
Writes C.S.H. a sweet letter as t George's death.
July 11, 1935. 135.
C.S.H. acknowledges it.
July 15, 1935. 135.
Hale, Sanator
Votes to join World Court.
Jan. 29, 1935. 22.
See - Hamlin, Hannibal. 111.
Hamlin, Anna
Received letter from Mrs. Bradley, not dated, giving message
from Anna, tne Sunday after Christmas:
"Anna.
Yes, Anna Hamlin. I feel so glad for you tnat your
worries are nearly over. Tne fignt has inter-ted us
mucn, for we know. We love to watcn a fignt for good
and a work of love. All is well. I know, my dear
Fatner and L1other are awaiting my message. On, now I
wish I could explain tne joy of tnis, our most happy and
beautiful life. The joy of a life without evil wnere
ugliness is not, wnere intense interest in your world
follows your patn, wnere certainty tnat all is well is
as man as tne life we are living is a true and good one.
Where hope of still hign-r and more beautiful tnings is
ours. Hope drowned in certainty. No name for that.
On! My Father ond Mother, most dear, if 1 could tell
you half of a hundredth part you would be so nap y that
nothing on eartn would or could matter, but goodness
and truth and joy would fill your mind and neart to
overflowing.
I watch tneir work and I see that if I could only
convince them of this, then life on eartn woad be
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
109.
Hamlin, Anna (Cont'd.)
perfect in joy and ,,00dness supreme. Their
work of good is marred by
sorrow and it
should not be so. Anna loves to see tnem work,
watch tneir plans and their goodness to others.
But, dear ones, joy in Anna's work too. Do, do.
My dearest love to ootn,
Anna.
We held a special service in memory of, at St. Af
7nes Church.
Father Anderson.
April 26, 1935. 77.
Bertie gave to Martha Louise Denton who unveiled the
statue of Hannibal Hamlin a beautiful tourmaline ring
wnich Dr. Augustus Hamlin once gave to Anna.
June 10, 1935. 111.
Bertie gave $1 to St. John's church for flowers in memory of
Anna.
This a.m. Mr. Madison, the AssisA.ant Rector, spoke of this
fact and gave a soeciel prayer for Anna. It brought
.
tears to C.S.H.'s eyes.
July 21, 1935. 151.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
110.
Hamlin, Augusta, Dr. 111
See -Hamlin, Anna
Hamlin, Hannibal
Hamlin, O.S.
Orposed bi-Tritisan clause in new btInking bill.
Jan. 18, 1935. 16.
On question of 6 yr terus for Class C directors C.S.H. could
communicate with Gov. E. only over telephone.
Jan. 19, 1935. 17.
C.S.H. is inclined to accent the Open !'Th.rket Cominittee sugg,ested
by the Treasury - 3 members of Board and 2 Gdvernors, as final
nower is given to full Board.
(On the morning the bill was sent to Congress, S-c. M. in-i-ted
on striking out this power to the full Board.)
Feb. 1, 1935. 24.
C.S.H. is dissatisfied with the retirement clause as it gives
retirement nay only to members whose terms expire between %ges
of 65 and 70, excluding by neces7ary implication those whose
terms expire after 70.
Feb. 1, 1935.24, 25.
C.S.H. said Miller apparently wanted to be dominited by the Treasury
when he asked whether it wanted authority given to Open Market
Committee to buy or sell 250 millions of Governments.
Feb. 1, 1935.25.
C.S.H. revealed a "joker" in proposed banking bill, which provided
that a member whose term expires after the age of 70 can get no
retirement allowance.
Feb. 2, 195. 26.
Wyatt promised C.S.H. to redraft this.
Feb. 2, 1935. 26, 27.
C.S.H. serves on panel in Town Meeting on L. of N.
Feb. 17, 1935. 40.
C.S.H., iller and Thurston thcmght it most unfortutr,te for
Gov. Eccles in his Ohio speech to speak of distributing
nroperty through increased taxation.
Mar. 7, 1935.50.
Golde-Aveiser ruoted C.S.H.'s draft of stnbilization given in his
testimony before H.R. Committee in 1929.
Anril 21, 1935. 57.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hamlin, C.S. (Cont'd.)
Gov. Eccles would not agre, with Thomas that a member over 70
should be eligible for reappointment, but was willing to
allow him to serve out his term.
Mar. 25, 1935. 58.
C.S.H. told Miller he would not life his finger for a reappointment,
but that if would be a grievous disappointmnt not to be
reappointed.
Mar 26, 193'5. 60.
.
C.S.H. voted in favor of motion that henceforth all personnel
matters shall be first passed on by members assigned to same.
Mar. 27, 1935. 62
C.S.H. s.,tid the further additions to the proposed bill seemed to
be an i.aprovement, altho he had not had time critically to
examine them.
Mar. 29, 1935. 64.
Thomas told C.S.H. that Gov* E. at first would not agree to an
amendment making present members eligiLle for rea:;rointment,
altho over 70.
Thomas said Gov. Eccles said "Hamlin is a good man but we must take
the broader view."
Mar. 30, 197. 65.
Gov. E. came in and explained to C.S.H. the 2 amendments he had
asked Wyatt to prepare.
He said he had not realized that the present draft would preclude
C.S.H.Is reappointment and hoped he would understand there
was nothing personal in it.
He said he had sent the amendments to Steagall, in Executive
Committee, 'aid that if not adopted by him, he would take
care of it in the Senate.
April 1, 1935. 67.
Anniversary of C.S.H.Is engagement in 1898.
April 16, 1935. 73.
Voted against Miller's motion to -3rohibit .111 interlocking directors.
May 1, 1935. 81.
C.S.H. told Sprague he was absolutely opposed to the Treasury
plan of an open market Committe,, of 3 Board members and 2
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
112.
Halalin, C. S. (C._ntld.)
Governors, this decision to be final.
May 2, 1935. 92.
Y.
C.S.H. suspects that Snrague is really working for the
bankers, and conceals it by apparent acquiescence in some
parts of the bill.
May
1935. 82
C.S.H. defends Roosevelt against criticism of Rorlrmd Eorric..
May 11, 1935. 91.
C.S.H. testified before Senate Sub-committee on banking bal.
June 3, 1935. 99.
See - Glass.
A newspaper correspondent said to C.S.H. - "My God! you certainly
have sand, to stand up before 'lass as you did!"
June 3, 1935. 101.
Delano told C.S.H. that a friend told him that C.S.H.'s testimony
was the best of any given.
June 6, 1935. 104.
(%S.H. writes Sen. Glass quoting from his diry.
June 7, 1935.105.
See - Glass.
Delivers address at unveiling of statue of Hannibal Hamlin.
June 10, 1935. 110.
See - Hamlin, Hannibal
Votes to trans'er Edmiston, Gov. Vs assistant, to staff of
Statistical Division.
June 12, 1935. 112.
Speaks on banking bill at Pittsburgh before NationU Credit Men's
Association.
June 20, 1935. 115.
C.S.H. regards Ooen Market Com ittee of 5 with final decision of
full Board at least a step in the rig-t direction.
June 2:!, 1936. 121.
C.S.H. writes Gov. E. beggiug him to do all he co,Ild to prevnt
reorganization of Board, etc.
July 5, 1935. 129, 130.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
113.
Hamlin, C.S. (Contld.)
Thurston calls on C.S.H. at request of Gov. Eccles and has
,
frank talk with aim, assuring him he will be re: ppointed.
6, 1915. 130, 131.
July
See - Thurston
EceleF, Gov.
.H. ha- . nother talk with Thur,=ton.
July 13, 1935. 135, 136, 137.
See - Thurston
Board voted unaJ,imausly to accept C.S.H.Is motion that a
condition should be inserted in voting permits to holdinc
company affiliates controlling national banks that the hJlding
company would obey th,- r, commen ations and suggest ins of the
Comptroller.
July 12, 1935. 137.
See- lccles; Banking bill
See also: Assistance to administration. 93.
Cow pasture. 165, 168, 169, 170.
Deposits. 184.
Eccles, Gov. 175
Federal Advisory Council. 193
,
Federal Res, erve Building
Glass. 31, 37, 99, 1CO, 177, 178.
Hay-Adans H0113. 101, 102.
Japan. 192.
Industrial Trust Co. ;95, 196.
McAdoo, Sen. 171, 172.
Mercantile Trust Co. 57.
Open Market Committee. 32, 92.
Robe-ts, Justice. 31
Roosevelt. 194.
Thurton. 167, 176.
Hagain, Edward
Telegraphs C.S.H. as to d ath of George.
June 24, 1935. 122.
See - Hamlin, George P.
Ta.7,)an writes C.S.H. that Ned and George grve Harriet & Jane two
notes, dated March 1, 1917, the one to Harriet being for
$23,166.98, and the -ne to Jane being $24,496.31; that both
notes read "Secured by mortgage ^n Tenean stre-t."
Sept. 18, 1S35. 188.
See - Hamlin, George P.
Tappan, ilobert
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
114.
Hamlin, Edward (C nt/d.)
Tap-)an said in the letter that NedIs _tatements were
contradictory:
1.
He claims notes are binding obligations.
2.
All payments in excess of interest on the notes
were gifts to H & J.
3.
Yet he says the proceeds from :ale of Tenean
property can be used to clear un mortgages on
the cow pasture.
Sept. 18, 1935. 189.
See - Hamlin, George P.
Hamlin, George P. Jr.
Tappan, Robert
Writes C.S.H. in reply to his letter that on Jan. 29, 1920, he
9nd George each gave C.S.H. a check f_r $5000 buying out
his interest in the Harrison Ave. and Tyler Street property.
He also said he loaned C.S.H. $1500 (George C.S.H. thinks did
the same) on Jai. 5, 1921.
(These notes wempaid with interest in 1928.)
Sept. 27, 1935. 196.
See also: Cow pasture. 165, 166,1 70, 173, 174, 185.
Hamlin, George P.
Writes C.S.H. as to cow na:Aure.
March 7, 1935. 49.
See - Cow pasture.
Bertie called for me at Cosmos Club where I was at lunch
and said Ned had wired her that George died this morning.
It
as a terrible shock.
We went home and telephoned George Jr. who told us that George
shot himself at his office.
Later we called up Ned who said that George had for years had
ulcers in his stoLlach; that they recurred from time to time;
that within a month he had had a terrible attack; that he
wrote Ned a letter saying ne had be n suffering terrible ;.cony;
that the night before he writhed in agony all night, couLhing
and spitting u7, blood; that there was nothing left except to
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
115.
Hamlin, George P. (Cont'd.)
go to the hospital to be operted on; that he knew
this would be ftlt(.1 and that h, th -meht the best way was
to end it all.
Some year: ago he was thoroughly examined, and the Doctor:, told
him it was an inoperable ccee.
C.S.H. firmly believes the Doctors at that time told him he had
cancer, eithough he never told us.
June 24, 1935. 122, 123.
We took the 11 a.m. train for Boston. Ned, George Jr. and
Katharine met us. We went to Copley Plaza hotel.
George Jr. told us his father was told years zego that his only hope
was an operation which, however, the Doctors all advised
against, saying he probably could not survive it.
George Jr. also said that the Doctors y.ar- ago thought the ulcerous
condition might have been started by the carbon monoxide
gas in the so—called "haunted house" which he lased, which
nearly blinded Bobby.
George wrote touching let er to Mary and Ned in the latter of which
he sent his love to us.
Ned discovered him when he :ent to his office, probably at least
a half hour after the tragedy for the pipe on his desk was
still slightly warm.
He found George slumped over his desk L.nd breathing heavily.
ed thought at first he was asleep and started to waken him, when
he discovered his condition.
He was taken to the Haymarket Relief station, a branch of the
City hospital.
Mary was notified and went first by mistake to the main city hospital,
and when she finally reached the Relief station, George had
died.
The police who soon came to the office were very kind and
courteous and very little publicity, comnaratively speaking,
was given to the tragedy in the papers.
June 24, 1935. 122, 123, 124.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
116.
Hamlin, George P. (Contld.)
We called on Mary early in the morning.
Harriet & Jane came u-e from Marion in Aleck Brown's car
,
which he had loaned them.
At noon Harriet and Jane drove to the Undertaker on Commonwe
alth
Avenue, very near our old house - 2 Raleigh Street - to
see George's body.
I did not feel up to this and Bertie stayed with me.
At 2:15 we drove out to the funeral chapel at Forest
Hills
cemetery where the services were held at 3 p.m.
Dr. Osgood, the Rector of Emanuel Church, of which George
was a
Vestryman, conducted the services.
The chapel was well filled and there was a mass of flowers,
altho
the papers requested that none be sent.
Chairman Curtiss and Gov. Young were present, e.nd sent flowers.
We then drove out to Robert Taor)an's.
The body was cremated. We then returned to the cemetery and at
6:4,', there was a short committal servic.- by Dr. Osgood.
Jesse Waid and Elinor came on; also Laddie Brewer and Helen.
George was a man of the finest character. He was always ready
to back up the family whom he loved. He was not willing
to permit his wife and children to stand by and see him die
in slow a:cc:MY, and many old friends have told C.S.H. that
his action showed the highest courage.
He went to the cross in order to help ti_ose nearest to him.
Dr. Osgood, during the service, said he died to save others.
June 261 1935. 125, 126, 127.
We took the noon urain for Washington arriving at 8:35 p.m.
We are both dazed and can not comprehend it all.
June 27, 195. 127.
C.S.H. told Janet Fish abeut George's death.
of it.
July 7, 19,75.1=
She had not n •rd
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
117.
Hamlin, George F. (Contd.)
Ers. Roosevelt sends a letter of s,ym.athy
to H.P.H.
July 10, 195. 134, 135.
See - Roo_-velt, Mrs.
Eleanor Connolly sent • very swe-t letter
of sympathy which
C.S.H. answered ;, t, once.
July
1935. 157.
Mary sends C.S.H. a recent photograph of
George.
Aug. 30, 19?5. 184.
IZ- bert Tappan writes C.S.H. that George :nd
Ned
rated Mex. 1, 1917, as follows;
To HG.H.
To Jane
ve. H. & J. notes
S',3,161.98;
24,496.31.
The notes said - "Secured by mortgage, Tenea
n Street".
He claimed that all the "gifts" of Ned
and George to H.&.J.
were really payments on the principal of
thee notes
and that there had been an over-payment of
principal
amnunting to $21,144.78.
Sept. 18, 195. 188.
See - Taman, RAD.,xt.
Hamlin, George P. Jr.
150, 163, 164, 168, 1C9, 170, 171, 185.
See - Cow pasture
Hamlin, George P.
Hamlin, Hannibal
Unveiling of statue of, pres-nted to Congres
by the state of
Maine, under resolution of Simeon Hamlin, membe
r of
Congress from Portland.
The following members of the family came
to Washington:
Mr. Denton, son and daughter Martha Louise
Denton;
Elinor Waid and her adopted 'aughter;
Louise Hamlin;
Vesta Moore of Calais, Mass. and
M-rgaret Taylor.
Hannibal Hamlin of Ellsworth. surviving son, could
not come on
as he was to receive an honorary degree from Bosto
n University,
but he paid all the exT)enseE. of Mrs. Denton and Vesta Moore.
June 3, 19T. 109, 110.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hamlin, Hannibal (Cont'd.)
Te gave the faml_y a supper :t the Woman's National Democratic
Club.
Simon Hamlin also was present.
,
j
Simon Hamlin said the statir was r- ven by Maine two years ago,
but the box had since laid unopened in the Capitol yard,
until he had the joint resolution passed.
June 9, 1935. 110.
We arose early to att-nd a breakfast given by C ung. Brewster.
H.P.H. insisted on our having breakfast before we started in spite
of C.S.H.Is oyoosition.
Going down
tairs we found a strike of all taxicab drivers.
We started to walk but final y got into an overcrowded electric car.
When
e arrived the breakfast was nearly over, and C.S.H. was thankful
he had eaten before starting out.
We then gathered at the front of the Capitolstairs where there was
a float picturing the state ofIlhine, containing a lake, a
mountain, a pine tree and a bear.
We were all photographed around the float.
One old lady fainted and fel., down the Capitol stfros but picked
herself up unconcernedly, the only injury being to the
Canitol steps!
We then marched um the Canitol steps headed bythe Shriners band and
walked to Statuary Hall, where a large crowd was assembled.
Simon Hamlin presided and made address delivering or presenting t.le
statue to Congress.
Sen. White of Maine accepted the statue in the name o. Congress.
Sen. Hale and Cong. Brewster also spoke, followed by an address
by C.S.H.
ThelMartha Louise Denton -.nd Helen Waid's &Old pulled up the
flag covering the statue while the band played America.
They could not, however, pull it up as it stuck over Hannibal Hamlin's
stomach and it took two men to Pull it un.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hamlin, Hannibal (Contld.)
While waiting to deliver our addresses, Bertie .are
up to the .
platform :aid said, "For heaven's ake, buck up.
It is 50-50
whether you or Sen. Hale looks .1-1ost bored!"
C.S.H. delivered the message to Sen.Hale, and each
put a
bautiful smile on our countenances.
June 1J, 19.5. 110, 111.
C.S.H. wrote Hannibal Hamlin at alsworth givng
a full acccrInt
of the proceedings and received a very cordial letter
from him.
June 10, 1975. 111.
I.S.H. also wrote Harriet Hamlin.
June 10, 1935. 111.
BE-xtie gave Martha Louie Denton a beautiful ring
given to
Anna by Dr. Augustus Hamlin.
Bertie also gave a beautiful onyx cross to Mrs. Simon
Hamlin in
memory of the event. This cross was given to Myra
Hamlin by
Mrs. Hannibal Hamlin and Myra gave it to Bertie.
June 10, 1935. 111, 112.
Hamlin, Mrs. Hannibal. 111, 112.
See supra.
Hamlin, Harriet & Jane
See - Cow pasture
Tappan, Robert
Huybertie Pruyn
Lunches with Bessie Lovett.
Present:
Mrs. Roo-.evelt, Mrs. Endicott Peabody,
Mrs. Castle, Mrs. Lane, widow of Sec. Lane and
ins. Horace Washington.
Feb. 8, 1935. 35.
Attends a lunch at the White House.
Feb. 30,1935. 43.
Gives former address as President of Woman's National
Dem. C)ub.
Feb. 27, 1935. 46.
Lunches with Mrs. Hughes to me t Mrs. Roosevelt.
Mar. 4, 1 935. 48.
A Mrs. Jones of Woman's National Democratic Club, told Bertie
that she was recently talking to a groun of women, and
that
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
120.
Hail in, Hubertie Pruyn
Cont d.
)
all agreed that Bertie was the Laost loved women in
Washington excenting only Mrs. Roosevelt.
March 11, 1935. 51.
Bertie lunch.2s at White House and hears Hansel and Gretel.
March 30, 1935. 65.
Anniversary of announcement of our engaement in 1898.
April 16, 1935. 73.
:rs. Roosevelt sends Bertie a letter of Sympr.thy at death of
George.
July 11, 1935.134.
Dr. Perry found Bertie's blood pressure normal - 128.
Aug. 3, 1935. 162
Dr. Perry said Bertie's anvenua had increaced from 82 to 89 which
was normal.
Aug. 7, 1935. 164.
Leaves Washington for Mattapoisett.
Aug. 8, 1935. 164.
See - Cow pasture. 150, 152, 162, 163, 1642 165
Helm, Edith. 13.
Breakfasts
Dinners
Lunches
Hamlin, Kate
Bertie sends check for $10.
Mar. 12, 1935. 52.
Hamlin, Myra
See - Hamlin, Hannibal
Hamlin, Simon
Hacalin, Simon
We call on.
Feb. 10, 1935. 36.
We give Mrs. a copy of Myra Hamlin's book on Eleazer Hamlin.
Feb. 11, 1935. 36.
See- Hamlin, Hannibal. 110, 112.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
121.
Hardin, Gov. 108, 141, 154.
See - Glass
Harriman, Mrs. 7T.
See - Roo, evelt,Mrs.
Hrtrris, Yr. and Mrs.
Spend nit with us.
Laura's wedding.
Sent. S, 1935. 186.
Harrison, Gov.
Wyatt said that, went around with Glas wen
he received honorary
degrees for Cooleges.
He is evidently n Prince of Loyybists!
Aug. 1, 1935. 100.
Gov. Eccles said that Roosevelt and Sec.
Morgenthau want, to become
a director of the B.I.S.
Wyatt said he could not as the Government had
never accented the
treaty creating the B.I.S.
Board said it had no objection to his goin
g over as an observer.
Board felt if he became a director the
Board would be put in
positioh of admitting that the Federal
Res.=:rve Bank of New 'fork
was in effect the central bank of the
United States.
C.S.H. remembers that Gov. Harrison once
told Board that when
the articles of B.I.S. were being prep
ared, he advised against
referred to Federal Recerve Board.
Aug. 23, 1935. 180, 131.
Told Szymczak tnat his choice for Chairman
of the new Board was
Under-Secretary Coolidge.
He is evidently hoping to crowd out C.S.H.
Sept. 20, 19Z5. 190.
See - Open Market Committee. 32, 91, 92.
Haskell, Col. 169.
See - Hamlin, G. P. Jr.
Hart, Rev. Dr. 44, 109.
See - S. John's
H-rt, Mrs. 30, 31.
See - Roberts, Justice
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
122.
Harvard Club
C.S.H. took Langdon narvin to lunch 'A, and gave a short
address on Charles Warren's birthday.
March 9 1935. 51.
C.S.H. attended dinner of, at Washington Hotel in honor of
Dr. Conant, the new President of Harvard.
There was a large attendance.
At he
table were Under Sec. Phillips, Chzies Moore, of Fine
Arts Commission, Fred Delano, and the Presidents of several
adjelnng Harvard Club.
C.S.H. believes he was the oldest graduaue there.
He was asked to sit at table on the floor at which several
statistical experts of various Departments.
C.S.H., James Brown Scott, 'Ind Robert Bliss were conspicuous
by not being seated at the head table, although there was
ample room.
April 2. 1935. 76
See - Bliss, Robert
Hay-Adams House
C.S.H. wrote Sinrod that he assumed that our rent would be
reduced from $200 to $100 per month, beginning June 1, as
last year.
Later he called up and areed on condition that he could reserve
right to restore it to $200, if the summer season was a crowded
one.
C.S.H. told him he could not agree to this as he would have to
give up his reserved room at Cosmos Club.
He said. he would make further inquiries and asked if I could cive
him until nonday.
C.S.H. said he had obtained a slight extension of his option
on the Cosmos Club room and woald agree to wait until !4oneay
for his answer.
May 29, 1935. 98
Sinron told C.S.H. he could have the apartment at $100 per month
from June to December, the same as last year, and C.S.H. said
he would give up his ootion on his Cosmos Club Room.
June 5, 1935. 102.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
12a
Hearst
Mrs. Roosevelt blamed defeat of World Court to Till Rog rs,
Father Coughlin and Hearst.
Feb. 8, 1935. 35.
Hecht
See - American Bankers Association.
Helm, Edith
Said Mrs. Roo - evelt invited Mrs. Wendell to lunch when told he was
a friend of H.P.H.
June 13, 1935. 13
We dined with, last evening, Feb. 2.
Most enjoyable.
Present: Mrs. Herrick, Mr. & Mrs. Lombard, etal.
Edith looked really handsome in a new blaCk dress with silver
trimmings.
Feb. 3, 1935. 27.
Tele3honed Bertie that Mrs. Roosevelt will accet position as
honorary President of Woman's National Democratic Club if
elected.
April 13, 1975. 73.
We dined with.
April 28, 1935. 78.
Bertie told Catherine Griffin was coming down and she arranged
a lunch at the White House for her for Saturday, May 4th.
May 3, 1935. 82, 83,
We drive, to a tea at Assistant Secretary Moore's at Fairfax.
May 19, 1935. 96.
Left Washim7ton for the suma-r.
May 26, 1975. 97.
Henry, Capt.
C.S... answers a birthday letter from.
Sept. 8, 1935. 186.
Hansel and Grete1.65
See - Hamlin, H. P.
Heiman,
. 118, 122.
See - C S.H.
National Credit Men
Herrick, Mrs.
We meet, at dinner with Edith Helm.
Feb. :3, 192u. 27, 23
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
124.
Hodsdon
152, 165, 169, 174, 185, 187.
See - Cow p
,sture
Holland, Queen of. 185, 186
See - Emmett
Houghton
Hollister, Cong.
Member of the H.R. Conference Committee on Banking bill.
Says President can reapooint every member of Board if he wishes.
Aug. 5, 1935. 181
Holmes, Justice Oliver Wendell
Death.
March 6, 1935. 48.
Honorary Counsel, Federal Reserve Board.
Miller says Board will gladly appoint C.S.H. as, L he is not
reappointed.
Mar. 26, 1935. 59.
Hoover, President
Mrs* Miller in 1928 signed a sta_ement published in paper
advocating nomination and election of.
July 3, 1935. 129.
See - McReynolds, Justice. 54.
Houghtaling, Mrs.
Calls on us with Catherine Grant.
M16, 1935.
Holding companies
157, 158.
See - Voting permits
Hornbeck, Mr.
Joins us after dinner :t Woman's National Democratic Club.
July 17, 1935. 150.
Houghton, Mr.
Calls on us.
Mar. 5, 1935. 48
Dined with us last Saturday to meet Mr. & Mrs. Rice.
Sept. 8 1935. 185
At luncheon at his house at which Bertie and Mr . Rice were
,
present, he told Harriet Rice that ne 1-1:4 heard that Emmett,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
125.
Houghton, Mr. (Contld.)
our Minister's wife, nau been very assiduous as
to
o_oper dresses for Juliana, and triat sne had
also taken'
deep inter-st in s curing a husband for er; that
,
the
Queen was much incensed and that he expected
that they
would soon be packin!: their trunks and leaving
Holland!
Sept. 8, 1935. 185, 186.
Lectures at Mattapoisett Improvement Associatio
n.
Sent. 8, 1935. 187
House of Representa,ives.
28, 87, 88, 96, 120, 127.
See - Banking bill
Eccles, Gov.
Hughes, Chief Ju:=.tice
We meet, at dinner with Judge & Mrs. Gronna.
May 11, 1935. 88.
Hughes, Mrs.
Bertie lunched with, to meet Mrs. Roosev-lt.
March 4, 1935. 48.
Humphrey, Trade Commission. 97.
See - U.S. SuDreme Court.
Hull, Mrs.
Berie attends lunch at Madame de With's to meet.
Feb. 13, 1935. 39.
We meet, at dinner with Robert Bliss.
July 3, 1935. 129
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
126.
Ickelheim-r. 85, 86, 87.
See - Carnegie Endowment.
Ickes, Sec.
162, 163
See - Cow pasture
Walsh, Sen.
Income tax
S e - D.C. tax
Mass. income tax
National income tax
Independence of Federal reserve banks.
153 156.
)
See - Eccles, Gov.
Independ nt Democrat.
See - Miller. 140.
Industrial Trust Co.
Board considered picture of, in acceptin
g lira as Agent of
his depositors and investing them, final
payment of the
account to be in lira exchange.
Our Counsel was of opinion that these 'Aere
deposits, n..cessitating
re erves and that interest could not be
paid.
C.S.H. and Thomas felt this was an agen
cy or trust relationship,
not calling for resen.es and in which inte
rest could be
paid.
The Board was divided and asked C.S.H.
to go to Federal Reserve
Bank of Boston Aid discuss matter with Curt
iss and Yonme.
Sept. 28, 1935. 195.
C.S.H. went to Federal Reerv.- Bank, Bost
,
on.
Both Curtiss and Gov. Young said it was
an agency account and
brought out that Deposit Insurance Corporat
ion said these
transactions were not deposits and could
not be insured.
Gov Young said it would cause great conf
usion to hold that
• thee were demand deposits.
Sept. 30, 1935. 197.
(Board later held they were agency accounts.
volume.)
See next
Inflation
Miller said if Roosevelt wanted, by issuing
greenbacks, he should
do it at once, or come out boldly againsttnf
l!ltion.
Mar. 7, 1935. 50.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
127.
Inflationists
Glass said Roosevelt made a .:atn1 mistake in yielding to the
inflationbts.
Glass said if Roosevelt had vetoed the Thomas amendment there would
not have been 15 votes in the Senate to override the veto.
Jan. 4, 1935. 3, 4.
Initiation of discount rates. 99, 100, 108.
See - Glass
Interlocking directors
See - Clayton Act.
International Labor Organization. 17
See - Rice, W. G. Jr.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
128.
—J
James, George R.
Joins with C.S.H. in request that proposed increaes
in salaries
of messen,€rs be taken up at once, because of gross
inadequacy and discriminatim.
Morrill reported that Gov. Eccles would not agreto this but
said they must await Board's action on all salaries;
that he
was too busy to attend to this now.
Mar. 1, 1935. 47.
See — Eccles, Gov.
Cites instances where appointments have been made
without prior
consultaton with members in charge.
Mar. 27, 1935. 61.
Objects to certain salary increases. Said we had told
New York
we did not favor increases and therefore should
make none for
our staff.
April 12, 1935. 71.
Complained that no one could ever get in to see
Gov. Eccles; that he
had tried many times and was always told by his
secretary that
he was busy but that she would call hill later,
but that the
call never came.
Said he opposed giving Bethea the same salary as
Noell.
April 12, 1935. 71, 72.
Salary Committee, including James, reports to
Board.
April 29, 1935. 78.
Voted against C.S.H.'s motion to lay on table
Miller's motion to
divorce all interlocking directors.
May 1, 1935. 87.
Told Board there was no necessity for new banking
bill.
June 3, 1935. 100.
Told C.S.H. the banking b ill was a socialistic means
which
Gov. Eccles was trying to fasten on the people
!
June
1935. 101.
Thurston told C.S.H. that a bitter feeling existed
towards James
but less intense ti.,.an against Miller.
July 13, l75. 136, 137.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
129.
James, George R. (Contd..)
Thurston said Con,ressmen seemed to know little or
nothing
about James.
Aug. 12, 1935. 167.
Thurston said he did not believe Roosevelt would reauoint James.
Aug. 12, 1935. 168.
Gov. Eccles told C.S.H. he did not think James ever claime
d to be
a Democrat.
Aug. 16, 1935. 173.
Read to C.S.H. his reply to Sen. Thomas as to the sillier
policy
of the administration. He wrote that he knew , no
rf
country where
a double standard had succeeded, that he opposed the
whole policy
of silver purchases and that be was unequivocally
for the restoration
of the gold standard in all countries.
James showed =rage of the nighest order in writin
g this.
Sept. 13, 1935. 191, 192.
Expressed opinion that the Industrial Trust
ComPanyts lira
transactiors constituted an agency or trust relati
on and were
not deposits.
Sept. 28, 19 ,5. 195, 196.
Japan
Mr. Alaki, Agency of tn. Bank of Japan at New
York called with a
letter from Fukai, Govemor of the Bank. 7.S.H.
had a pleasant
talk with him and expressed regret he had not seen
more of Saito
the Ambassador.
The Ambassador, shortly after, sent me a copy of
his collected
addresses on Japanese policy.
Sept. 13, 1935. 192.
Jews
See - McReynolds, Justice
Jokers in banking bill
Retirement clause was originally so drawn that a member
whose
term expired after 70 years of age could have no
retirement paY•
Feb. 1, 1935. 24, 25, 27.
If a new appointee is designated as Governor,
say one week before
an administration expires, and should the incani
ng administration
designate another, the former is declared to have served
out his
full tertp,say 10 years, for which originally appoin
ted, .nd would
be put on the retired list!
Feb. 4, 1935. 28.
The second draft cured this. Feb. 4, 1935. 28,
30.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
130.
Jones, Jesse
Favored the bi-partisan clause in banking oill, saying all
.Leinbers of whatsoever party, would cooperate with the
administration.
Aug. 12, 1935. 168.
Jones, Mr. 51.
See - H.P.H.
Joseph, Miss 66, 160.
See - Leutri.da, Countess
Jury
94.
See - Federal reserve building.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
131.
-K-
IU,ating, Mr. & Mrs.
We gave a dinner to.
July 2, 195. 151.
Kelly, Fred
He had, at dinner at Woman's
National Den. Club.
June 13, 1935. 113.
Kemmerer, Prof.
Tetifies before Senate commit
tee.
Recommends that Board should
be allowed to choose its own
Governor.
May 13, 1935. 89, 90.
Keyes, Senator
Is over 70 y.. _,ars old.
Jan. 29, 1935. 22.
Kincaid, Canon
Dines with us.
June 13, 1935. 113.
Kiplinger
Says Eccles, Miller and Szymcz
ak are likely to be on the
new Board.
July 17, 1935. 146.
Krock
Brings out fact that Roosevelt
, before the Press Men, in
effect
ticsumed responsibility for the
banking bill.
Sept. 5, 1935. 36.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
132.
-L-
Labor or.-anization, League of Nations. 40.
See Rice, W. G. Jr.
Lane, Franklin, Mrs.
Bertie mects, at lunch with Mrs. Lovett.
Mr. Roosevelt.
Feb. 8, 1935. 35.
She came with
Larrabee, Rolph
We give a dinner to, and his fiancee, Miss Tully.
June 6, 1935. 104.
Law division. 62, 63
See - Eccles, Gov.
League of Nations, International Labor Organization. 17, 40.
See - Rice ,W. G. Jr.
Town meeting.
Leagueof Nations Association. 85, 86, 87.
See - Carnegie Endowment.
Leffingyell, Mrs.
We called on,in New York.
May 7, 1935. 84.
Calls us on telephone and asked us to lunch.
May 8, 1935. 84.
Leutrum, Countess.
C.S.H. receives letter from.
Jan. 11, 1935. 9.
Writes C.S.H.
Dec. 17, 193i4. 12, 13.
Wrote C.S.H. a few days ago that she would write a sketch as to
her meeting Mark Twain, and would write a book of short sketches.
1.S.H. wrote Sedgwick of Atlantic Monthly asking if he taought
such a book would be accepted kr a publisher.
Feb. 9, 1935. 56.
Received another story from. C.S.H. writes her.
Mar. 3, 1935. 48.
C.S.H. receives letter from.
Mar. 18, 19.5. 55.
C.S.H. sent her sketch of Mark Twain to Miss Joseph of New York.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
133.
Leutrum, Countess (Conttd.)
She replied that it was in a delightful style but needed
elaboration; that she thinks a book by her ought to have a
chance of being published.
C.S.H. so writes her.
Mar. 31, 1935. 66
Writes C.S.H.
April 28, 1935. 78.
Sends C.S.H. an elaborated sketch of Mark Twain.
July 26, 1935. 157.
C.S.H. sent sketch to Miss Joseph wil9 replied it was chaming
but uncommercial and suggested that some newspaper might take it.
Aug. 1, 1935.160.
C.S.H. sends revised sketch to Atlantic nontlay (which had
already rejected the original sketch).
C.S.H. also sent a copy to Dr. Butler, in charge of the Mark Twain
delebvi.tion.
Aug. 1, 1935. 160.
Last week the Atlantic Monthly for a second time rejected the
Mark Twain sketch.
C.S.H. then sent it to Dr. Butler.
Sept. 22, 1935. 191.
Write
C.S.H.
Sept. 28, 1935. 197.
Loans "for others"
From 1922 - 1929 corporations made huge profits which they
invested in part in loans "for others".
Y.ar. 19, 1935. 56.
Lobbyist. 160.
See - Harrison, Gov.
Lombard, Mr. & Mrs.
We met, at dinner with Edith Helm.
Feb. 2, 1935. 27, 28.
Lovett, Bessie
Bertie lunches with.
Mrs. Roosevelt was there.
reb. 8, 1935. 35.
See - Hamlin, H. P.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
134.
Lowell, Mrs. John
Bertie met, at tea with IL s. Slocum, She said that Bishop Freeman
the Colonial Dames meeting "certainly did rap the
administration" in his sermon this SunrIqy p.m.
April 28, 1975. 78.
Lucas, Mr.
Se - St. Johns.
Lunches (See breakfasts, dinners, suppers)
We had Catherine Grant and her children at Democratic Club
Jan. 4, 1935. 3.
With Assistant Secretafy and Mrs. Phillips.
Jan. 20, 1935. 18.
With Canon and Mrs. Stokes.
Jan. 27, 1935. 21.
Bertie lunched with Bessie Lovett.
Mrs. Roosevelt was there.
Feb. 8, 1935. 35.
Bertie lunched with Madame de With.
Feb. 13, 1935. 39.
Bertie lunched at White House.
Feb. 20, 1935. 43.
With Mrs. Boardman.
Mar. 25, 1935. 58.
Comptroller with C.S.H.
Mar. 27, 1935. 63.
Bertie lunched at White House.
Mar. 30, 1935. 65.
With Mrs. Flint.
April 7, 1935. 69.
With Mr. & Mrs. Fitzhugh.
April 21, 1935. 71.
Mrs. Helm =trranges lunch with Catherine Griffin at White House.
May 2, 1935. 83.
C.S.H. with Pittsburgh Clearing house bankers.
June 20, 1935. 115.
With Ex-Senator and Mrs. Bruce at Ruxton, Md.
July 14, 1935. 139.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
135.
Lunches (Cont'd.)
The Misses Conrad with C.S.H.
Aug. 25, 193. 181.
Oliphant with C.S.H.
Aug. 26, 1935. 182.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
136.
Madison, Rev. Mr.
Called on 123.
Said the church music was absolutely under control of tie Rector,
according to the church canons.
July 22, 1935. 151.
See - St. John's.
Manhattan Company
The Board permitted the, to exchange dividend coupons in a
German bank for stock of the bank, as the coupons could not be
cashed and the proceeds exported from Germany. The Company
agreed to sell t_e stock at the earliest possible moment.
Thus are two decisions of the Board, one in favor and one against.
See- Windber Trust Co. (wrongly indexed as the Winsor Trust Co.)
In above case a member bank owning shares in another bank wanted
to take up its lease of newly issued stock. The Board held this
would be a purchase of stock forbidden by law.
On tne other hand, the Wheeling Bank L.nd Trust Co. of West Virginia
merged with tne Dollar Bank and Trust Co. a non-member bank.
Among the assets of the latter were over $600,000 of various
stocks.
The Board consented to tne first company taking over their
stocks on understanding that they should be sold as soon as
possible.
In the Windber case C.S.H. voted in favor but was outvoted.
June 9, 19:
75. 158, 159.
Mark Twain
See - Leutrum, Countess
Marlatt, Mr. & Mrs.
We dined with.
June 4, 1935. 102.
Marvin, Langdon
C.S.H. took, to lunch at Harvard Club.
Mar. 9, 1935. 51.
Massachusetts Income tax.
C.S.H. pays, for self and H.P.H.
Feb. 13, 1.935. 40.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
137.
Mattapoisett
H. P.H. leaves Washington for.
Aug. 8, 1935. 164.
Mattapoisett Improvement Association
Sept. 9, 1935. 187.
Mr. Houghton addresses.
McAdoo, W. G.
W as praised against joining World Court.
Jan. 29, 1935. 22.
Comntroller said that Glass and, were confident of defeating
Gov. Eccles' confirmation.
Max. 27, 1935. 63.
Gov. Eccles said, told him that if he had not been ill he would
have voted to confirm him.
April 27, 1935. 77.
Sen. Byrnes asked C.S.H. when he testified whether McAdoo was
Secretary of the Treasury at time of initiating a 6% discount
rate at New York.
C.S.H. said No, it was Sen. Glass.
June 3, 1935. 99.
We invited, to dinner but his secretary said he had another
engagement.
July 17, 1935. 147.
C.S.H. called, by appointment on, at his Senate office.
He was very cordial.
C.S.H. spoke of the extracts from his diary Whi6h the Senate Cammittee
had asked for.
He said he did not object to my quoting that Spring-Rice said
he was pro-Germany; that he had answered all that in his
reminiscences.
He then spoke of the banking bill nending in conference.
He said he was very sorry that there was to be a reorganization of
the Board.
C.S.H. asked if this would prevent the President from reap ointing
the whole Board. He said absolutely No.
He
he was oollosed to the bi-partisan clause but did not say
whether or not it would be dropped.
He expressed gr,at regret that C.S.H. should be put to any
embarrassment by this bill.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
138.
McAdoo, W. G. (Contid.)
C.S.H. said, jetingly, what at the proper time you can
say something in my favor.
He opaickly replied - "You know how I feel towards you.
When
the time comes have Senator Walsh and Coolidge write
Roo,evelt, and I will back up their recommendation
with
the greatest pleasure and with all my vigor.
He asked re to get for him statistics as to export of
munitions
between 1914 and 1917.
Aug. 16, 1935. 171, 172.
McLenahan, Dr.
Extracted one of C.S.H.Is teeth.
July 10, 1935. 133.
Pulled out another.
July 15, 1935.139.
McIntire, Asst. Sec. 169.
See -Hamlin, G. P. Jr.
McNary, Sen.
Votes to enter World Court.
Jan. 28, 1935. 22.
Dines with us.
Also Mrs. M.
Mar. 13, 1935. 53.
McReynolds, Justice
We meet, at dinner at Judge Covingtonsand drove him
home.
reb. 23, 1935. 45.
We took breakfast with.
He was very bitter over the gold clause decision and
said the
People did not seem to comprehend what a shocking decision
it was; that under it the Government could invalidate a
pri-ate gold contract, seize the gold, entering a
devaluation profit on its books, and yet not b bound to pay
damage for the direct ap7)ropriation of private property.
He said th re was nothing left of the Constitution.
He said he had a little money to invest but did not know
rhat to
do with it.
He was very bitter toward the Jews on the Court.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
139.
McReynolds, Justice (Cont'd.)
He said Brandeis was discovered by Attorney General Gregory
who got him to investigate the New Haven R.R.
He said Cardozo was worse even than Brandeis and that no one
could understand his opinions.
He said Frankfurter handled propaganda for Cardozo and that Hoover
finally fell for it.
He spoke contemptuously of Hoover.
He said Frankfurter was a crook.
He said Parker (defeated for confirmation) would have made a
much sounder judge than Cordozo, and that if he had been
confirmed the gold clause decision would have been reversed.
He said Roosevelt failed to r-alize the irreparable disaster
into which his policies were putting the country.
Mar. 17, 1935. 53, 54, 55.
We took breakfast with. April 28, 1935. 78.
Meigs, Mrs.
Elected President, Woman's National Democratic Club.
Feb. 27, 1935. 46.
're dined with.
Mar. 12, 1935. 52.
Mellon, Andrew, Ex-Secretary
Calls on C.S.H. at benkers lunch, Pittsburgh.
June 20, 1935. 116.
Meigs, Prof.
Board's adviser - Fed-ral Re:_erve building- told C.S.H. that
the plans of Delano and Coolidge were among the worst of
those submitted.
May 18, 1935. 95, 96.
Mercantile Trust Co., St. Louis
Board approved a letter to, settling the litigation in manner
originally favored by C.S.H.
The Trust Co., by a reorganization, took over shares in a
national bank. Board's original condition of admission
provided that no purchase of stock in other banks should
be made except with consent of our Board.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
140.
Mercantile Trust Co., St. Louis (Conttd.)
Our Counsel originally advised us that this was a purchase and
Board so voted.
C.S.H. contra.
The matter dragged on and finally the Trust Company brought
proceedings to enjoin our Board. We directed our Counsel
to defend Board but our Counsel turned tail and said it
was such a doubtful cruestion we ought to give in, - which
the Board did.
Mar. 22, 1935. 57.
Mar. 31, 1935. 66.
Merritt, Schuyler, Cong.
Gov. Eccles authorized C.S.H. to tell, he, C.S.H. was op,osed
to the bi-partisan clause of the Banking sill.
Aug. 16, 1935. 172.
C.S.H. dines with.
Aug. 16, 1935.173.
Messenger of Gov. Eccles. 47.
See - Eccles, Gov.
Metcalf, Sen.
Voted against joining World Court.
Jan. 29, 1935. 22
Metropolitan Club
See - Morgenthau
Meyer, Gov. 91, 92.
See - Eccles, Gov.
Miller, Dr.
Said Glabs told him that Roostvelt made a great mistake in
yielding to the inflationists as to the Thomas amendment;
that if Roosevelt had vetoed it there would not have been
15 votes in the Senate favoring its passage over the veto.
Jan. 4, 1935. 4.
Said that (or same as said) a Justice of U.S. Supreme Court
told him that if tLe Board had stood pat ulJon the matter
of seizure of its gold, it would have won out.
Miller th3ught it was Brandei.s Who said this.
Jan. 4, 19d5. 4.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
140.
Mercantile Trust Co., St. Louis (Contld.)
Our Counsel originally advised us that this was a purchase and
Board so voted.
C.S.H. contra.
The matter dragged on and finally the Trust Company brought
proceedings to enjoin our Boar. We directed our Counsel
to defend Board but our Counsel turned tail and said it
was such a doubtful question we ou4nt to give in, - whiCh
the Board did.
Mar. 22, 1935. 57.
Mar. 31, 1935. 66.
Merritt, Schuyler, Cong.
Gov. Eccles authorized C.S.H. to tell, he, C.S.H. was op_osed
to the bi-partisan clause of the Banking Bill.
Aug. 16, 1935. 172.
C.S.H. dines with.
Aug. 16, 1935.173.
Messenger of Gov. Eccles. 47.
See - Eccles, Gov.
Metcalf, Sen.
Voted against joining World Court.
Jan. 29, 193b. 22
Metropolitan Club
See - Morgenthau
Meyer, Gov. 91, 92.
See - Eccles, Gov.
MIller, Dr.
Said Glas told him that Roosevelt made a great mistake in
yielding to the inflationists as to the Thomas amendment;
that if Roosevelt had vetoed it there would not have been
15 votes in the Senate favoring its passage over the veto.
Jan. 4, 1935. 4.
Said that (or SEUMG as said) a Justice of U.S. Supreme Court
told him that if tile Board had stood pat 1L,on tlie matter
of seizure of its gold, it would have won out.
Miller thcught it was Brandeis Who said this.
Jan. 4, 195. 4.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
14L.
Miller, Dr. (Contld.)
Said that Justice Stone told him he knew Oliphant very well
and that his legal ability was very limited, that it was
ridiculous to have him as a Treasury legal adviser.
The Justice said he knew him when in law faculty of Columbia
University.
Jan. 4, l3u. 4.
Said he knew that Roosevelt had offered Owen D. You
position.
Jan. 13, 1925. 14.
a Cabinet
Said we ought not to constier Treasury draft of banking bill
unless specifically requested by Roosevelt.
Jan. 15, 1935. 16.
Miller said he would fight the Treasury draft of Open ILrket
Committee to the bitter end.
Jan. 23, 1935. 20.
Was confirmed by Senate today for new term on :oard.
Jan. 23, 1935.21.
Apparently wanted to be dominated by Treasury when he insisted
on putting responsibility on Treasury for recommendation
that Open Market Committee be authorized to buy or sell up
to 250 millions of Government securities.
Jan. 30, 1935. 25.
Favored 3 year term for Class A directors, 6 years for Class B
and no limit for Class C.
Feb. 4, 1935. 29.
Obj-cted to making Governor of Board a political officer losing
his position when the President designated another.
Feb. 4, 1935. 29.
SaidBoard could force Federal reserve bank to buy Government
securities.
Feb. 5, 1935. 32, 33.
Said that Mrs. Miller sat beside Roosevelt lately at dinner and
that he spoke to a very uncomplimentary way about Gov. Eccles.
Feb. 12, 1935. 37.
Tr.ought it most unfortunate for Gov Eccles to mention distribution
of property by taxation in his open speech.
Mar. 7, 1935. 50.
Controversy with Glass as to appointment of his constituent
company on list of architects for F.R. building.
Feb. 12, 1935. 37, 38.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
142.
Miller, Dr. (Contld.)
Said Roosevelt really feels the strain of existing worries; that
the peo,le are beginning to lose faith hin him because of
his vagueness and uncertainty; that the uncertainty must be
put an end to; that if he wants inflation through greenbacks
or further devaluation, he should do it at once; that if he
is against inflation he should say so at once; that it was a
vital error to issue bonds at such low rates.
March 7, 1935. 50.
Said things were very blue; that Roos,
velt was losing ground,
that People were saying he had not made good; that the
unemployed were still unemployed.
Mar. 11, 1935. 52.
Miller bitterly criticised the N.R.A. He said Roosevelt must at
once levve the middle of the road and turn to the right or
the left; that he thought he must go to the right or his
reelection would be impossible.
Mar. 11, 1935. 52.
He said Roosevelt knew nothing abDut economics.
Mar. 11, 1935. 52
Said he was very much worried about Roosevelt; that things
were going from bad to gorse; that Roosevelt could no longer
give nleasing radio talks as he had nothing to say; that
he might be reelected it might be very close.
Mar. 18, 1935. 55.
Miller sooke of a statement prepared by hill for Roo,evelt in
Oct. 1933, which Roosevelt thought too radical.
(See scrap book 1933)
Mar. 18, 1935. 55.
Miller was eaphatic against Roosevelt's policies and said that
if he had not left the gold standard conditions would probably
be much better today.
Mar. 18, 1935. 56.
Said that if called before Senate Sub-Committee he should say that
prices were stabilized from 1922 - 1929, while ,
lroduction
costs were greatly reduced; that inordinately huge profits
were thus earned; that many corporations out their earnings
into the stock market through "loans for others"
Mar. 19, 1935. 56.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
143.
Miller, Dr. (Contld.)
Said Board retirement plan would undoubtedly pass Congress.
Mar. 26, 1935. 59.
Told C.S.H. not to worry about present draft of retirement clause,
for if C.S.H. were not reau-)ointed the Board would gladly
make him honorary Counsel, or any other position he mignt
desire.
Mar. 26, 1935. 59, 60.
Said the Senate would never vote that a man over 70 would be
ineligible for reapoointment.
Mar. 26, 1935. 60.
He said he believed that the new qualifications for Board members
meant that the "Treasury boys" had some one in mind for C.S.H.Is
1)1 ace.
Mar. 26, 1935. 60.
He said some one said Gov. Eccles felt that the Federal Reserve
Board should consist solely of himself - Gov.Eccles - Currie
and Goldenweiser.
Mar. 26, 1935. 60.
"hen Gov. Eccles said that the iirlter of personnel was absolutely
under his jurisdiction and should continue so while he was
Governor, Miller stood up and fairly shouted out - "No, it will
not! I will fight this to the bitter end!"
Mar. 27, 1935. 61.
Votes that hereafter no appointments shall be recommended except
after approval of the Board members having the particular
division under his charge.
Mar. 27, 1935. 62.
Miller during the debate referred to a recent appointment under
law Division, aithout consultation with C.S.H.
Mar. 27, 1935. 62.
Approves many proposed increases in salaries.
April 12, 1935. 71.
Proposes abolition of all interlocking directors.
C.S.H. moved to lay on table.
Carried, Miller voting No.
May 1, 1935. 80, 81.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
143.
Millr, Dr. (Contid.)
Said Board retirement plan would undoubtedly pass Congress.
Mar. 26, 1976. 59.
Told C.S.H. not to worry about present draft of retirement clause,
for if C.S.H. vvire not reauroointed the Board would gladly
make him honorary Counsel, or any other position he mignt
desire.
Mar. 26, 1935. 59, 60.
Said the Senate would never vote that a man over 70 would be
ineligible for rean-)ointment.
Mar. 26, 193o. 60.
He said he believed that the new qualifications for Board members
meant that the "Treasury boys" had some one in mind for C.S.H.Is
p1 ace.
Mar. 26, 1935. 60.
He said some one said Gov. Eccles felt that the Federal Reserve
Board should consist solely of himself - Gov.Eccles - Currie
and Goldenweiser.
Mar. 26, 1935. 60.
'hen Gov. Eccles said that the m-iler of personnel was absolutely
under his jurisdiction and Should continue so while he was
Governor, Miller stood up and fairly shouted out - "No, it will
not! I will fight this to the bitter end!"
Mar. 27, 1935. 61.
Votes that hereafter no appointments shall be recommended except
after approval of the Board members having the particular
division under his charge.
Mar. 27, 1935. 62.
Miller during the debate referred to a recent appointment under
law Division, without consultation with C.S.H.
Mar. 27, 1935. 62.
Approves many proposed increases in salaries.
April 12, 1935. 71.
Proposes abolition of all interlocking directors.
C.S.H. moved to lay on table.
Carried, Miller voting No.
May 1, 1935. 80, 81.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
144.
Miller, Dr. (Contld.)
Discusses new qualificaton for members under Treasury bill.
Thougiit the new qualification could only be met by Currie!
May 1, 1935. 89.
Gov. Eccles was doubtful as to Miller's attitude toward the
banking bill, but C.S.H. said he t---)ught he would in general
sunport it.
May 18, 1935. 95.
Tectifies before Senate Committee.
May 24, 1935. 97.
Told Thomas that C.S.H. in his testimony was technically right,
while Glass was substantially right.
Jure 4, 1935. 101.
Miller
aid Glas was very angry with C.S.H. because of his testimony
before Senate Committee.
June 6, 1935.104.
Thurston told C.S.H. that Eiller criticized only C.S.H.Is statement
that he would nominate Gov. Eccles for Governor of the new
Board.
June 7, 1935. 105.
Bitterly objected to transfer of Edmiston from Gov. Eczleil office
to statistical division on ground that he had not been
consulted.
He voted against tne transfer.
C.S.H. begged him to make it unanimous, but he declined.
June 10, 1935. 111, 112.
Said there was some ground for the charge that the Board was
subject to political influence.
June 14, 1935. 114.
C.S.H. believes Miller is in Closer touch with Ras- than he is
willing to admit.
June 22, 1935.118, 119.
Said Glass 'ill insist on making our Board really indeoendent.
June 22, 195. 119.
Said Glass oitterly hated Gov. Eccles.
June 22, 1935. 119.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
145.
Miller, Dr. (Cont'd.)
Said Glass was not pleased with C.S.H.'s staLements as to
Governor Eccles.
June 22, 1935. 119.
Miller himself was bitter against Gov. Eccles, saying he had
fallen down and had lost vote of the Board and of the banking
bill; that if he had called the Board together we might have
agreed upon a bill.
C.S.H. told Miller that Gov. Eccles had many times asked the Board,
but that the Board followed Miller's advice and declined
formally to consider the bill unless Gov. Eccles could say the
President desired it, and Gov. Eccles said that Roosevelt
had not asked the Board to consid r the bill.
June 22, 1935. 119, 120.
C.S.H. told Miller that his reason for telling Glass he would
nominate Gov. Eccles for the first Chairman was that there was
a rumor that Miller wanted an independent Board in order to
plevent Gov. Eccles remaining as Governor; that C.S.H. knew
Miller had no such desire, as Miller and he had agreed with
one another to vote for Gov. Eccles as the first Chairman.
June 22, 1S35. 120.
Miller has just finished a review of the easy money policy in
1927 and severely criticises the Federal Reserve Bank of New York
for its course in 1929.
June 22, 1935. 120, 121.
Miller favored an open market Committee of all the Governors with
power to recommend to the Bo.Ird, subject to final action by
the Board, with th,. further right to initiate its own policy
by affirmative vote of not less than a majority of the Board.
June 22, 1935. 121.
Miller in 1920 when Hoover was working for the nomination came out
in a public appeal for his nomination and election.
July 3, 1935. 129.
Thurston said Gov Eccles could not get along with Miller.
.
July 5, 1935. 131.
Miller in his article reviewing the cheap money policy of 1927,
1929, showed that when discount rates were lowered in 1927,
tLere exis,ed business depression and falling off in production;
that the low Ted discount rates and purch,se of Government
securities cured all of this, and that the speculative movement
followed business recovery.
This directly antradicts his earlier statements that the easy money
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
146.
Miller, Dr. (Contld.)
policy was one of the greatest mistakes in the history.
of the system.
July 7, 1935. 133, 134.
Thurston said there was more opposition to Miller's rea000intment
than to James.
July 13, 1935. 137.
Said he was going to try to see Glass as to the banking bill.
July 15, 1935. 139.
Said Glass never acknowledged his article on the easy money
policy.
July 16, 1935. 139.
- .S.H. told Miller he was originally appointed as an econ)miet and
;
no one knew his politics.
He said this was true but he always considered himself as an
independent Democrat.
C.S.H. has a statement from New York World saying Miller was
appointed simply as an economist.
See - Scrap bock.
July 16, 1935. 140, 141.
Kiplinger says niller is likely to be on the new Board.
July 17, 1935. 146.
Called on Roosevelt and had a lonE talk. He told Thomas that
Roosevelt talked all the time and on everything except the
Federal Reserve System; that he - Miller- finally spoke
to him against the bi-partisan features and thinks he made
some impression.
July 17, 1935. 148.
Has never told C.S.H. as to his talks with Glass and Roosevelt.
July 19, 1935. 148.
C.S.H. called up Miller at his house and asked whether he - C.S.H. should not go to see Glass. He said No not now; that Glass
was very busy and sick, and that it might make him suspicious.
Miller said Glass was displeased at his
t,aement
out Gov. Eccles.
He admitted he had asked for his interviews with both Glass and
Roosevelt.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
147.
Miller, Dr. (Cont'd.)
On leaving the White House he gave an interview otposing the
bi-partisan features of the bill.
July 19, 1935. 149.
7.S.H. thinks Miller saw Glass last Friday. He told C.S.H. on
Thursday he was seeking an interview. He was out of his
office Friday p.m. and left for Boston in evening.
Aug. 11, 1935. 166.
Wyatt said Miller saw Glass last Friday and asked him to prepare
a draft covering open market operations for the banking bill.
Aug. 12, 1935. 167.
Gov' Eccles said Miller did not know whether he - Miller - was
a Democrat or Republican.
Aug. 16, 1935. 173.
C.S.H. told Glass that ?Viler agreed to vole for Governor Eccles
as Governor if the Board was made independent.
Aug. 23, 1935. 178.
Glass seemed greatly surprised at this and said, - "Miller has
greatly Chanced his views aS to Gov. Eccles since then!"
Aug. 23, 1935. 178.
Monetary authority.
Gov' Eccles said the long drawn out discussion in Board almost
forced him to the Monetary authority plan.
Jan. 18, 1935. 16.
Money
See - Deposit credits.
Morgan, Anne
C.S.H. called up J. P. Morgan & Co. to ge address of, for H.P.H.
.t
H.P.H. called her up and she invited her to lunch tomorrow at the
Women Workers Club.
May 9, 1935. 85.
Morgenthau, Sec.
Gov Eccles said. the proposed banking bill came from, et al.
Jan. 17, 1935. 16.
Conference nt Treasury over banking bill at which, et al were present,
a few days ago.
Jam. 29, 1935. 22.
Gov. Eccles gave Board a draft of banking bill saying it was
unanimously agre2d to by, Roosevelt, et al
Feb. 1, 1935. 23.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
148.
Morgenthau, Sec. (Contid.)
Miller would not vote to give Ex('cutive Committee of Open
Market Committee right to buy or sell 250 millions of Government
securities until satisfied that, wanted it done.
Miller evid-ntly wanted to bedominated by Sec. Morgenthau.
Feb. 1, 1935. 25.
Gov. Eccles said Roosev.at relied entirely on Sec. Morgenthau
and the Treasury as o the banking bill.
Gov. E. said Sec. Morgenthau insisted that the action of the
Open Market Committee of 5 should be final and not subject
to
approval of full Board.
Feb. 4, 1935. 29.
Under Secretary Coolidge has written Metropolitan Club indorsing
Sec. Morgenthau, proposed by C.S.H. and Van Ness Phillip.
Feb. 4, 1935. 30.
Van Ness Phillip called and said he had heard that several had
written to Metropolitan Club Governors opposing Sec. Morgenthau.
C.S.H.. said the clerk called him up and said he had to name on
his proposal two. Governors who knew Sec. Morgenthau.
C.S.H. at once got authority from Admiral Grayson, a Governor, to
put his name on the application and later got the same
authority from Asst. Sec. Roosevelt.
C.S.H. called up the clerk who said he would put their names (:),
C.S.H.Is proposal and also the name of Charles Warren.
The clerk said C.S.H. had done all that was necessary.
Phillip said he would make sure that Asst. Sec. Roosevelt .ttended
the meeting at 5 p.m. today.
Philip said Glass also said ne would ury to be Lhere.
.
Philip said he also called up Corcoran Thom, who through his
secretary, said he did not know Sec. Morgenthau.
C.S.H. thougnt the reply rather suspicious.
7;.S.H. called up the clerk at 6:25 p.m. who said the Board had
not yet finished its meeting but was about to adjourn; that he
would know who were elected in a few minutes.
At 7 p.m. C.S.H. called uo Charles Warren wr.o :aid Sec.Morgenthau
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
149.
Morgenthau, Sc. (Contld.)
was elected without any trouble although it had some
letters opeosing Sec. Morgenthau,
Fe,. 20, 1955. 41, 42, 43.
O.S.H. called up Sec. Morgenthau and told him of his election.
He asked if there had been any trouble.
C.S.H. said, quoting what Asst. Sec. Roosevelt had told him,
"None at all".
Sec. Morgentnau thanked C.S.H. most warmly and seemed very grateful.
Feb. 21, 1926. 43.
We gave dinner to Sec. and Mrs. Morgenthau at Democratic Club.
Present:
Sec. & Mrs. Morgenthau; Senator and Mrs. Mary; Cong. and
Mrs. Russell; Mr. & Mrs. Corcoran Thom; Judge and Mrs. Covington;
Dr. and Mrs. Richmend; Mr. & Mrs. Gist Blair; Mr. Ricketson;
Mrs. Newlands.
Mar. 13, 1935. 53.
Sec. Morgenthau told Bertie at the dinner that he could not follow
Gov. Eccles in his testimony before the H.R. Banking Committee;
that he hed some one at work analyzing it; that ne contradicted
himself almost every day.
Mar. 13, 192:. 53.
We dined eith Sec. and Mrs. Morgenthau.
Met there the Spanish Ambassador, Roumanian Minister, Mrs. Swanson,etal.
April 9, 1935. 69.
Gov. Eccles -aid the Open market provision in banking bill was
2 Govelnors and 3 Board members with authority tn full Board
to accept or reject; that on Monday a.m. Sec. Morgenthau insisted
on striking out the power in the full Board; that later on that
day, Roosevelt sent the bill tothe Congressional Committee.
Gov. Eccles said he objected to striking out the Board' s powers
but was outvoted be Sec. Morgenthau, Coolidge and Oliphant.
May 1, 1935. 79, 80.
Gov. Eccles said Sec. Morgenthau was very angry when ne suggested
his plan for an open market recommendation by 5 Governors
,
with power in .1-- oard to accept or reject.
May 1, 1935. 80.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
150.
1
Mergenthau, Stc. (Cont'd.)
agreed to leave it to Roosevelt
Gov. Eccles said they finally
the 3 different propositions,
and that he prepared a draft of
pre'ence of the others;
and gave it to Roosevelt in the
sevelt read them over and
that this was on Monday; that Roo
. Eccles had already submitted to
chose the draft which Gov
s settled the question.
the H.e. Comeittee and that thi
1, 1935. 80.
May
was so devoted to Roo,evelt
Gov. Eccles said Sec. Morgenthau
opinion he held to
that he would instantly cnange any
please him.
May 1, 1935. 80
u to use in nis testimony on
Gov. Eccles asked Sec. Morgentha
posed letter to Gov. Meyer,
bankinebill tomorrow C.S.H.'s pro
aittee voted down Board's
describing how Open Market Com
million Govermment securities
su6gestion, in 1932 - , tnat 300
be bought.
t for him not to go into these
Sec. Morgenthau thought it bes
details.
May 16, 1925. 92, 93.
ing
ony favored the Government's buy
Sec. Morgenthau in his testim
erve banks.
all stock of the Federal res
king
tious reference to this in tal
Gov. Eccles said Roosevelt's cau
might solve
t such course
with the press, and stating tha
e to
was all part of a political mov
many difficulties,
g bill for fear they
the bankin
scare the banks into accepting
worse if they defeated it.
might get something
May 18, 1935. 96.
eeury should remain on Board to
C.S.H. felt the Secretary o: Tre
h the administration.
serve as a connecting link wit
1935.107.
June 7,
and
Gov. Eccles, Sec. Morgentnau
Conference at Treasury in which
others were present.
June 14, 1935. 113.
See - Roosevelt.
. Eccles sent his message as to
Thurston did not say that Gov
ity of Sec. Morganthau and
rea-opoinument with the author
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
151.
Morgenthau, Sec. (Cont'd.)
Roos, velt, but he left nothing undane to repres
ent
by necessary implication, that Gov. Eccles had
that authority.
July 5, 1935. 131.
Gov. Eccles s.,id Roosevelt and Sec. Morgenthau want
;0v. Harrison
to be a director of Bank of International Settle
ments.
Aug. 23, 1935. 180.
See - Harrison, Gov.
Moore, Assistant SecrPtary of State.
We took Edith Helm and the Conrads to tea with, at
Fairfax.
May 19, 1935.96.
Moore, Vesta. 110
See - Hamlin, Hannibal
Morris, Rowland, 71r. & Mrs.
Called on 113.
He said "Off the record, aren't you hopelessly perple
xed at
existing conditions?"
C.S.H. said - "Everything is coming out all right, and
business
is aillost ready to start up in full swing again."
May 11, 1935. 91,
Morrill.
See - Eccles, Gov. 5.
Wyatt 93
Musher. 36.
See - Glass
Owen
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
152.
-N-
N.R.A.
Miller bitterly criticised the N.R.A.
March 11, 1935. 52.
The R.I. electioriwas a severe blow to N.E.A.
Aug. 7, 1935. 164.
National Association of Credit Men.
115, 116, 117, 118, 119, 122.
See - Eccles, Gov.
C.S.H. Pittsburgh speech
National City Bank, New York
See - Clayton Act
National Emergency Loan Committee. 29.
See - Eccles, Gov.
National income tax. 52,
See - Income tax
National Theatre
Last week, Mr. Settle, Secretary of the Planning Board and
Miss French called and asked Bertie to be one of the
incorporators of the proposed National Theatre, for which
they were asking a charter from Congress. The incorporators
were distributed among different cities. The Washington
incorporators were Mrs. Larz Anderson, Miss Boardman and H.P.H.
They were Esking for a national charter, and to receive authority
to receive endowments and elevate the drama by sending out
troups of first class actors over the country.
They told Bertie the fee for associate membership would be only
$1; that they wanted as a Washington incorporator some
women in very close touch with President Roosev-lt; and that
Mrs. Delano had suggested the name of R.P.H.
Their circular showed that the President was greatly interested
in the plan.
Bertie said she would consider it.
Miss French called again later and Bertie said she would accept
the position on condition that she should not be asked or
expected to subscribe to the endowment.
April 22, 1935. 74, 75.
H.P.H. spoke in favor before H.R. Judiciary Committ-e.
June 11, 1935. 112.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
153.
National Theatre (Contl d.)
the bill.
The H.R. Committee unanimously reported
. 122.
June 19, 1935
the h.R. Committee was
The Senate quickly passed the bill but
was neld at which Bertie et al spoke.
averse. Finally a hearing
was signed by Roosevelt.
Tne H.R. finally passed the bill and it
June 29, 1935. 127.
Neff, Mrs.
We dined with.
Feb. 4, 1933. 30.
N.E. Terminal Trust. 130, 152.
See - Cow pasture
New York bankers.
67, 77, 82.
See - Roosevelt
Glass
Sprague
New Weston Hotel
We stayed at.
May 8, 1935. 83.
New York Journal of Commerce.
17, 18.
See - Exfess reserves
New York Times.
35, 36, 83, 149.
See - Krock
Roosevelt, Mrs. James
Mil er
New York World. 140.
See - Miller
Newlands, Mrs.
Dines with us.
Mar. 13, 1935. 53.
Writes C.S.H. on fig birthday.
Aug. 30, 1935. 186
Norris, Gov.
.
Attacked bitterly the banking bill
d.
Board as a political Boar
June 6, 1935. 104.
Denounced the Federal Reserve
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
154.
Norris, Gov. (0ontld.)
ck nad demonstrated
Gov. Eccles said Gov. Norris by his atta
rve Bank of
his unfitness as Governor of the Federal Rese
Philadelphia.
June 7, 1935. 106.
Notes 188
See - Tappan
Hamlin, Edw.
Hamlin, Harriet & Jane
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
155.
O'Connor
See - Comptroller
Oliver, Gen.
Died Mar. 15, 1935.
Cremated today, Mar. 18, 1935.56.
Oliphant.
Miller said 'justice Stone told aim tnat he knew very
well that his legal abilities were very limited; tnat it
was ridiculous to have him as legal adviser of the
Treasury.
The Justice said he knew, when he was in the Columbia University
Law School.
Jan. 4, 1935. 4.
Gov. Eccles sled the Treasury draft of banking bill was proposed
by, Sec. M. Coolidge, et al.
Jan. 18, 1935.16.
Gov. Eccles said tne non-controversial features - Part III- of
banking bill, were prepared by, Await, Comptroller, etc.
Jan. 22, 1935. 11
Gov. lccles said the proposed draft of banking bill was
unanimously approved by, Sec. Morgentaaul Roosevelt, etc.
Feb. 1, 1935. 23.
Gov. Elcles said the proposed bill was referred to National
Emergency Loan Committee, of which Sec. Morgentnau was
=airman and, et al, members.
Feb. 4, 1935.29.
Gov. lecles wanted to keep in the clause in Open market draft
that Board should have power to overrule the lommittee of /iv,
but he was outvoted by Sec. Morgentnau, Olipnant, and
Coolidge.
May1 ,1935.80.
Lunched with C.S.H. at Cosmos Club.
Aug. 26, 1935. 182.
One nmelred per cent reserve. 183.
See - Currie
Open market
Gov. Eccles before accepting appointment on Fe1eral Re--rve
Board entered into an agreement ritn RoosTrelt that
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
156.
Open market (Contid.)
the Board should be given greater open market powers,.
and power to confirm Governors.
January 1, 1935. 3.
Miller opposed the open market provision of Treasury bill saying
it would make the Treasury and the Federal Reserve Bank
of New York supreme.
Gov. Eccles admitted this but said somebody must be supreme and
that ne felt almost forced to accept the National Monetary
autnority idea.
Jan. 15, 1935. 16.
Miller said the, clause meant domination of Board by Treasury
and Federal Reserve Bank of New York.
Jan. 23,1935. 20.
Gov. Eccles said he preferred that the Board should nave power and
responsibility over open market matters but he could not
get it.
Jan. 231 1935. 20.
Board meeting as to open market policy called for 10:30 a.m.
but was finally postponed as Governor Eccles had gone home
iii with laryngitis.
Jan. 30, 1935. 23.
Gov. Eccles discussed the open market clause to which Miller had
objected.
Jan. 30, 1935. 24.
C.S.H. is inclined to accept the idea of a joint committee of
taree Board members and 2 Governors, with final determination
by Board, as a step in tne right direction.
Jan. 30, 1935. 24.
Board discussed giving Executive Committee of Open Market Committee
power, betwe, sessions of the full Committee- to buy or sell
-n
Government securities witnin limit of 250 million.
Gov. Eccles said Government bonds had risen rapidly and that a
amp mignt follow which would injure the Government credit.
Miller asked if Morgenthau wished this.
Gov. Eccles said Sec. Morgentnau could accomplish the same result
tnraugn the R.F.C. etc. etc.
Gov. Eccles said it was the duty of tne Board to stabilize tne
Government bond market.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
157.
Open market (Cont d.)
C.S.H. said Miller apparently wants to be dominated by
the Treasury.
Miller finally reacned conclusion tnat Sec.Morgentnau wanted
tnis and withdrew his objection and Board voted to approve.
Feb. 1, 1935. 25.
Gov. Eccles said Morgentnau ComNittee agreed that tne Open markt
determination of tne Committee of 5 should be final and not
subject to approval of Board.
All of our Board apposed this.
Feb. 4, 1935. 29.
Board at meeting with Open Market Committee voted to give
authority to Executive Committee, until otherwise ordered,
power to buy or sell in open market up to 250 millions of
Government securities, in addit'on to the 250 millions alrtacly
autnorized two years ago.
Feb. 5, 1935. 32.
C.S.H. said he assumed the Committee would confer with the
Governor before taktigany action.
Gov. Harrison said tnis was cl9arly understood.
Our Board said it would be ready at snort notice to approve
any proposed action and communicate any change in its policy.
Gov. Harrison said the Board could not order the Federal reserve
banks to buy any stipulated amount; he said tnat under the present
law it was purely a matter of agreement.
Dr.Miller said tn- Board could issue such an order.
Miller cited the Thomas amendment under which the Secretary of the
Treasury could issue 3 billions of greenbacks should the Federal
reserve banks refuse to buy that amount on request of the
Treasury.
The Board members explained that the Board could not force the
Federal reserve banks to buy such bonds.
Feb. 5, 1935. 33.
Gov. Eccles was asked by the Baakinc Committee if there was not
an Open Market Comuittee in existence before the passage of
the bill and he answered No! An awful break!
Mar. 11, 1935. 51.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
158.
Open market (Contsd.)
Eccles said he was not familiar
On realizing nis mistake Gov.
before he joined the Board.
with the Federal Reserve System
Mar. 11, 1935. 52.
market
nded before the Committee the open
Under Secretary Coolidge defe
Treasury boys - 5 in Al.-- 3
provision agreed on by the
no appeal to the Federal Reserve
Governors and 2 bankers with
ever, that 401J. Eccles had
Board. He did not mention, how
thrown this over.
Mar. 21, 1935. 56, 57.
er
a daanged open market clause und
Gov. Eccles presented to Board
e, to
an Advisory Committe
which five Governors were to be
d which could accept or reject its
recomend policy to Boar
recommendations.
Owllb*
Board must get its advice before
It was furtner provided that the
market or discount policy.
initiating any chetke, in open
ady sent this to the Committee
Morrill said Gov. Eccles had alre
without asking Board's advice.
Mar. 19, 1935. 64.
tory of the open market clause.
Gov. Eccles gave Board the his
2
rd consisting of 3 Governors and
He said that firstit was a Boa
reject; that
rd to accept or
bankers, with power in - full Boa
king
etary Morgenthau insisted on stri
early Monday a.m. Secr
er that day Roosevelt
rd; that lat
out this power of the full Boa
to
Cong. Committee; that he objected
sent the bill to the
rd, but was outvoted
the Boa
striking out the power vested in
ers of the Committee consisting of Sec: 14
by the other memb
was very angry when ne
Coolidge, Oliphant, etc; that Sec. M.
to the Committee; that
- Gov. Eccles - gave a new draft
ous drafts mould be given
finally it was agreed that tne vari
t copies of the 3 drafts
to Roosevelt; that he gave Roosevel
s of the Committee; that
in presence of the other member
y chose the one submitted
Roosevelt read them all and finall
e (advisory committee of
by Gov. Eccles to the H.R. Committe
chose tnis latter draft,
5 bankers, etc.); that Roosevelt
which settled the euestion.
prepared the first draft;
Gov. Eccles said it was Coolidge wno
ers whose only wish was
that Coolidge was a hard boiled bank
to do wnat the bankers wanted.
May 1, 1935. 79, 80.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
159.
Open market (Conted.)
the Board, in
7,.S.H. on looking over his records found that
the deflation by buying 300 millions
1931, desired to meet
Cosrlittee
of securities; that it so advised tne Open Market
to initiate open market policies; that
wiiich had the power
Gov. Meyer pleaded with tne Comuittee for two hours.
millions.
The Committee, however, voted 11 to 1 for only 120
May 16, 1935. 91.
ttee of the
In 1932 C.S.H. attended a meeting of Executive Commi
n and Chicago
Federal Reserve Bank of New York. Bosto
except in
had refused to participate in furtner purchase
grave emergencies.
purchase it would
Gov. Harrison said if New York did the wnole
ng Boston and Chicago about
reduce its reserves to 471, leavi
701
to bring Boston
Gov. Harrison said it was the duty of the Board
and Chicago into line.
matter um witn tne
C.S.h. agreed and said ne would take tne
both came in.
Board. Finally they
May 16, 1935. 91, 92.
ng out above, honing
C.S.H. prepared a letter to Gov. Meyer setti
ted.
he would use it editorially, but Miller objec
wno said tne matter
C.S.h. gave proposed draft to Gov. Eccles,
to Sec.M. who is to
was of great importance and gave it
to go into such
testify tomorrow, but ne tnougnt it best not
details.
this material before and
Gov. Eccles asked 'thy C.S H. nad not used
across it.
C.S.H. said ne had just come
May 16, 1935. 93.
on open market
Morrill said ne warned Gov. Eccles not to menti
consulting C.S.H. but Gov. Eccles apparently
operations before
forgot tnis.
May 16, 1935. 93.
Committee voted to try
At Governors Conference the Open Market
holdings of
to have some of the Federal reserve banks
Feceral reserve
Government securities taken over by other
tne System policy
banks, but unanimously opposed reversing
and selling Government securities.
May 27, 1935. 98.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
160.
Open market (Contld.)
banking bill, suggested
Miller wane generally supporting the
oved Gov. Eccles'
mkny amendments and specifically only appr
open market provision.
June 3, 1935. 100.
greatly preferred
Roosevelt told Treasury conference ne
market, - an advisory Botrd of
Gov. Eccles' plan as to open
ove or reject.
5 bankers with power in Board to appr
1935. 113.
June 14,
in the rignt direction.
C.S.H. accepted above plan as a step
June 14, 1935. 114
market provisions and convinced
Board informally discounted the open
plan was bad, and
Gov. Eccles that the original Treasury
sury boys - draped
Gov. Eccles - to tne amazement of the Trea
the 7:ommittee and in this
this plan and suggested his own to
the H.R.
snape it passed tne H.R. Committee and
. 120.
June 22, 1936
open market is a step in
C.S.H. believes the Eccles plan Of
right direction.
June 22, 1935. 121.
a new open market provision.
Wyatt said niller had asked aim to draw
Aug. 12, 1935. 167.
ral Reserve Bank of New York would
Gov. Young said of course the Fede
Committee, but that
have a representative on Open Market
t the views of Boston as
such a representative must represen
well as New York.
Aug. 27, 1935. 183.
See - Banking bill
ctor of tne Mint.
O'Reilly, Miss Mary. Assistant Dire
ponds.
We drove, and Janet Fisn to see the lily
. 139.
July 14, 1935
mac River.
We took, to tne barge concert on Poto
1935. 162.
Aug. 4,
Osgood, Mr.
20, 125, 182.
See - Federal Reserve Bank, Boston.
Owen, Ex-Senator
Reserve Act and tnat Glass
Says he was the author of the Fed,ral
autnor, to vihicn ne is
is trying to secure prestige as tne
not entitled.
Feb. 5, 1935. 34.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
161.
Owen, Ex-Senator (Cont'd.)
publisn the intercepted cable
C.S.H. tninks Glass will now
Musher.
from the Secretary of Owen to
. 5, 1935. 34, 35.
Feb
s tnat he speculated ti foreign
Glass attacks Owen and cnarge
- Masher.
exchange with an ax-convict,
conclusive denial.
Owen comes out in a not very
Feb. 6, 1935. 36.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
162.
-p
Parker, Mr.
ant.
See - Fer'eral Reerve Bank, Atl
Parker, Judge
that, would nave made a much
Justice LicReynolds told C.S.H.
that if he had been
better judge than Cardozo, and
ision would nave been reversed.
confirmed the gold clause dec
March 17, 1935. 55.
We
Mrs. Gronna.
met, at dinner with Judge and
May 11, 1935. 88.
w
Patten, The Misses
evidently most curious to kno
Mary Patten called. She was
tea, but
ame DeWith's
whether Bertie would go to Mad
did we mention her letter.
we saia nbthing nor
Jan. 7, 1935. 6.
know
called and was very anxious to
Edith Helm said Mary Patten
dt at Madame Deritn's
Pallan
whetner Bertie met Madame de
ut it.
told her she knew nothing abo
tea. Edith
Jan. 13, 1935. 14.
us to meet Mr. and Mrs. Reagan
Josepnine Patten dined with
of Deoartment of Commerce.
Commercial AtLacne in Paris
July 17, 1935. 150.
e as
Peabody, Mrs. Endicott
Bessie Lovett. Mrs. P. cam
Bertie meets, at lunch with
also was present.
guest of Mrs. Roosevelt who
1935. 35.
Feb. 8,
Peel, Sir Robert. 161
See- Glass
atic
Perkins, Madame Sec. of Labor.
at Woman's National Democr
C.S.H. sat beside, at dinner
Club.
Feb. 27, 1935. 46.
Perry, Dr. 162, 164.
See - Hamlin, H. P.
Perry, Reginald
Larabee.
Was at our dinner to Rollin
June 6, 1935. 104.
.
Peter, Andrews, Mr. and Mrs
Pnillips.
luncn with Under Secretary
We meet, at
20, 1935. 18.
January
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
163.
Philip, Hoffman
b to meet.
We attend tea at Alibi Clu
Mar. 15, 1935. 53.
election of
Philip) Van Ness
s had been sent opposing
C.S.H. that some letter
Told
olitan Club.
Sec. Morgenthau for Metrop
Feb. ap, 1935. 42.
See - Morgenthau
Philip, Rev. Barney
We dined with.
Feb. 16, 1935. 40.
.
Phillips, Under Secretary
Andrew Peters.
h, to meet Mr. & Mrs.
We luncned wit
Jan. 30, 1935. 18.
Pittman, Sen.
rt.
Voted to join World Cou
Jan. 28, 1935. 22.
se bankers.
Pittsburgh Clearing hou
Gives C.S.H. a lunch.
June 20, 1935. 115.
.H.
Pittsburgh speech. C.S
Platt
)
June 20 1935. 115
Eccles address.
Severely criticises.Gov.
Feb. 13, 1935.38.
Political offices. 29.
See - Eccles, Gov.
almost
Pope, Mr.
l reserve building was
d plan of, for Federa
Daiger sai
.H.
as good as that of C.S
May 18, 1935. 96.
e Board. 33.
Power of Federal Reserv
See - Open market.
Press conferences. 18.
See - Eccles, Gov.
ed by him and
Price stabilization
tee a draft of, prepar
denweiser gives Commit
Gol
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
164.
Price stabilization (Contl d.)
C.S.H. some years ago.
Mar. 21, 1935. 57.
See - Miller.
95.
Prices
Miller said prices were stabilized at a high level from
1922 - 1929 wnile production costs were greatly reduced
and the resultatt nigh profits were poured into the
stock market in the shape of loans for others.
Mar. 19, 1935. 56.
Progressive Republican
Gov' Eccles told C.S.H. he is a, and never voted for a Democratt
President except for Roosevelt.
Aug. 16, 1935. 173.
Pruyn, Irving
We called on.
May 9, 1935. 84.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
165.
MOP
-RR.F.C.
Ickes investigator said if tne Government would take the co*
pasture, giving Hodsdon tne right to pay back to the
Government within 30 years wnat it paid for it, it would
help in getting funds from R.F.C.
March 7, 1935. 49.
See - Hamlin, George
Reagan, Mr. & Mrs. Commercial Attache, Paris.
Dine with us.
July 17, 1935. 150
Retirement clause. Banking Act of 1935.
Removal of Board members for cause.
132, 142, 143, 155.
See-. Eccles,Gov.
Republican, Progressive,
Gov. Eccles told C.S.H. he is a.
Aug. 16, 1935. 172, 173.
Reserve, One hundred per cent.
27, 183.
See - Currie
Deposits
Resignation
Szymczak told Gov. Eccles he was willing to resign if not
persona grata to him.
January 1, 1935. 3.
Owen D. Young wrote Board that as ne nad served as a director
oter 6 years, contrary to new policy of the Board, he was
willing to resign.
Jan. 11, 1935. 10.
Curtiss talks to C.S.H. vaguyly as to resigning.
Aug. 27, 1935. 182.
Retirement clause, Banking Act.
24, 25, 26 (joker) 28, 58, 60, 64, 65, 68, 73, 74, 87, 88, 89,
90, 94, 127, 128, 130, 131, 133, 156, 179.
See- Eccles, Gov.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
166.
Rice, Harriet
to come to
Madame de With said, had written nor inviting ner
hoped later to go.
Albany, and that sae and the Minister
Jan. 17, 1935. 14, 15.
Rice, W. G.
We called in Y. Y. on Mrs.James Roosevelt.
Sne spoke with deep regret of tne_22t1
offered, by President Roosevelt.
Bertie
her
and
for
years term in Holland
told
explained taLA tne offer was only for me year and
su-aport,
why, could not accept it, having two sisters to
position
could not afford to give up his Civil Service
one year only in Holland.
t.
Again and again she expressed ner deep regre
he believed a
C.S.H. said if they could have got together
been reached.
satisfactory conclusion would have
in the New York
Berti told ner of the premature announcement
caused; sne said she was sure
Times and the embarrassment it
ed up the matter.
that a personal talk would have Clear
1935. 83.
May 8,
Aug. 28, 1935.
The Rices came to visit us last Wednesday,
Aug. 30, 1935. 184.
They left on Tuesday, Sept. 3.
Sept. 8, 1935. 185.
Rice, W. G. Jr.
tion, at Geneva.
Appointed on International Laoor Organiza
. 17.
Jan. 19, 1935
Dined with us.
oner.
He said nis title was to be Labor Commissi
Department of Labor and
he is to be a liaison officer between
Geneva.
tne Labor Organization at
ins, but ne will
his comdssion will be signed by Miss Perk
be given diplomatic immunity.
reb. 13, 1935. 39, 40.
that she was near Geneva
Sophie Boreel writes, dated Aug. 13,
for a day.
and entertained T.G.R. Jr. and family
21, 1935. 177.
Aug.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
167.
Ricnmond arcnitect.
37, 38, 154, 155.
See - Glass
Ricnmond,Dr. & Mrs.
au.
Dines with us to meet Sec. and Mrs. Morgentn
. 53.
Mar. 13, 1935
Ricketson, Olive
enthau.
Dines with us to meet Sec. and Mrs. Morg
13, 1935.53.
Mar.
Roberts, Justice
Neffs that she
Mrs. Hart told C.S.H. at dinner at Mrs.
U.S. Supreme Court
recently said to Justice Roberts of tne
ed ne would explain
that there were some tnings sne wisn
re the Court; that he
to her as to tne gold question now befo
it to her easily in 20 minutes;
replied tnat ne could explain
tion of currency .ere
that it was very simple but tnat if ques
involved it would be very intricate.
t will construe tne bond
C.S.H. thinks this means that tne Cour
amount of gold.
contract as one to deliver a specific
On
the indorsers
this assumption the Court must rule tnat
broken their
corporation and the goverunent have each
entitled to damages
contract and that the bond holders are
if they can prove damages.
d not today snow any
The holder, if an American citizen, coul
the Government paper is
damages as the purchasing power of
at date of delivery of
today greater than was the gold dollar
the bond.
ges for the interest paid hin
A foreigner, however, could show dama
ign money than could a
in piper money could buy less of fore
gold dollar.
that the Government
(The Supreme Court actually decided
as to a private corporation,
had broken its contract, but
y, as deternined by
it rPally only contracted to pay mone
Congress, and not gold.
could damages be shown
The Court held that in neither case
the Government
because of the huge purchasing porier of
paper money.
uss the effect on a
The Court did not specifically disc
foreigner. The decision was 5 to 4.)
Elected on vestry of St. Jonnts Churcn.
April 23, 1935. 75.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
168.
Robbins, Warren D.
Death. April 7, 1935.
69.
Robinson, Sen.. & Mrs.
.
We dined with Rev. & Mrs. Barney Phillips to meet
Feb. 16, 1935. 40.
Rome, Asst. Sec. of Treasury. Miss.
Address, Woman's Natl Democratic Club.
Jan. 11, 1935. 10.
Rodgers, Col. & Mrs.
ge's death.
We called on, and C.S.H. told her about Geor
She had not heard of it.
July 7, 1935. 132.
Rogers, Architect.
reserve building
Meigs said the plans of, for tne Federal
were of the highest grade.
May 18, 1935. 96.
Rogers, Will
World Court was in
Mrs. Roosevelt said the failure of the
part due to.
Feb. 5, 1935. 35.
Roumanian Minister.
au.
We meet, at dinner with Sec. & Mrs. Morgenth
April 9, 1935. 69.
43.
Roosvelt, Assistant Secretary of Navy.
- Morgenthau.
See
Roosevelt, Franklin, President.
ago said that if
Miller told C.S.H. tnat Glass a few days
there would
Roosevelt had vetoed the Thomas amendment,
override tne veto;
not have been 15 votes in the Senate to
Roosevelt made
that he, Glass, positively knew this; that
inflationists.
a fatal mistake in yielding to the
Jan. 4, 1935. 3,4.
ed Owen D. Yolng
MiLler said he knew that Roosevelt had offer
a Cabinet position.
Jan. 13, 1935. 14.
Eccles weekly
C.S.H. feels tnat Roosevelt should stop Gov.
press conferences
Jan. 19, 1935. 18.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
169.
Roosevelt, President (Cont'd.)
Gov. !Eccles was .ith Roosevelt today. He is probably in
conference with Roosevelt and the Treasury boys.
Jan. 22, 1935. 19.
Gov. Eccli said the changes in Title II of the bill had been
referred by Roosevelt to the Emergency Loan Committee;
tnat ne was to present the draft to Rcosemelt on Friday.
We asked if Roosevelt nad asked our advice and ne said No.
Jan. 23, 1935. 19, 20.
Gov. Eccles told Board the draft of the banking bill was agreed
to by Roosevelt.
Feb. 1, 1935. 23.
Gov. Eccles said that by permission of Roosevelt he had consulted
Hecnt and the American Bankers Association as to the bill.
Feb. 1, 1935. 23.
Gov. Ecclas said Roosevelt objected to tLe proposed salary of
$20,000 for the Board members, but that Gov. Eccles told
him that to get $15,000 we must ask for $20,000.
Feb. 1, 1935. 23.
Gov. Eccles said Roosevelt referred Title II to the National
Emergency Loan Committee of which Sec. Morgentnam,
Gov. Eccles, Oliphant and Coolidge were members.
Feb. 4, 1935. 29.
Gov. Eccles aid Roosevelt did not want the o inion of our Board
on the banking bill; that Roosevelt relied on Sec.Morgenthau
and the Treasury.
Feb. 4, 1935. 29.
Gov. Eccles said Roosevelt would not make the BanfAng bill an
administration bill, altnaugh he approved it and very likely
would speak to the Committee in its favor; that Roosevelt
felt this was tne first tactics.
Feb. 4, 1935. 30.
Roosevelt sends the banking bill to the Congressional Committees
with a letter wnich merely said it was prepared by Crowley,
the Comptroller and "Eccles, who would explain it to the
Committee!
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
170.
Roosevelt, President (Cont'd.)
Roosevelt has thus dodged, and the so—called administration bill
is not an administration bill at all!
Fe't). 5, 1935. 33.
Gov. Eccles said the bill was an administration bill but tnat
Roosevelt toought it was better politics not to send it in as
such.
He said Roosevelt went over it carefully and approved it, with the
exception that he reduced the Board salaries from $20,000 to
$15,000 and struck out tne provision as to branch banks.
Feb. 5, 1935. 34.
Krock in ::ew York Times brings out fact that Roosevelt in talking
witn Press representatives, assumed responsibility for the
banking bill.
Feb. 8, 1935. 35, 36.
Miller said Mrs. Miller not long ago sat beside Roosevelt at dinner
and tnat Roosevelt spoke in very uncomplimentary terms about
Gov. Eccles.
Feb. 12, 1935. 37.
Mrs. Hull told Bertie that Roosevelt once said to her that as
understood tnat Mrs. Gerry was to be elected. President of the
Woman's National Democratic Club, and that she said it was
to be Mrs. Meigs; that he said he did not tnink Mrs Gerry
was much of a Democrat.
Feb. 13, 1935. 39.
Gov. Eccles said he nad sent Roosevelt a copy of his Ohio speech
and that McIntire called nim up and said Roosevelt agreed with
every word of it!
Tnis would seem to carry approval of Gov. Eccles wish to
distribute property tnrougn taxation!
Feb. 25, 1935. 46.
g
Miller said Roosevelt is beginning to snow the strain from existin
are beginning to lose faith in nim
worries, that people
because of nis vagueness and Uncertainty.
Miller said Roosevelt must put an end to this uncertainty; tnat
if ne still desires inflation by devaluation or issue of
of
greenbacks ne should do tnis at once; or if ne disao roves
inflation ne snould announce this at once.
March 7, 1935. 50.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
171.
,
Roosevelt, Pr. sident (Contld.)
Justice McReynolds told C.S.H. tnat Roosevelt did not seem to
camprenend that tne country was going into irretrievable.
disaster.
Mar. 17, 1935. 55.
Miller said he was very much concerned about Roosevelt;
were going from bad to worse; tnat tne country would
be satisfied with pleasing radio address s, as he no
anything to say; that while he might be reelected it
very close contest.
that Gnings
no longer
longer had
might be a
He spoke of a statement prepared for Roosevelt in Oct. 1933, which
Roosevelt thought too radical.
See scrap book, 1933.
Mar. 18, 1935. 55.
Miller spokc emphatically against Roosevelt's policies and said
that if Roosevelt had not left the gold standard, our conditions
would probably be far better today.
Mar. 18, 1935. 56.
Gov. Eccles said that when Roosevelt first told him he would appoint
him on the Board he - Roosevelt - told him tnere were many who
were bitterly opposing him, in New York especially, but that he
did not fol_ow their advice and didn't give a damn what they
thought.
April 1, 1935. 67.
Gov. Eccles said he did not go on the Board of his own request but
at the urgent desire of Roosevelt.
Gov. Eccles evidently feels that his full duty was not to the Board
but to Sec. Morgenthen and Roosevelt.
Gov. Eccles toliBoard that when Roosevelt told him he would apnoint
him, he gave Roosevelt a memorandum showing the changes he wanted
=velt read it and said ho
in the Federal Reserve Act; that Rols,
agreed with all!
May 1, 1935. 79.
Gov. Eccles said that on the day Roos-velt sent the bill to the
Congressional Committees, Sec. Morgenthau in the morning
insisted on striking frauthe open market provision, the power given
to Board to review the opinions of the Board of 5.
May 1, 1935. 79
Gov. Ecclec said he gave Roosevelt a draft of 3 open market clauses;
that Roosevelt chose the one favored by Gov. Eccles and submitted
by him to the H.R. Committee.
May 1, 1935. 80.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
172.
Roosevelt, Pres. (Cont'd.)
Mrs. James Roosevelt expressed deep regret that Roosevelt did
not appoint W. G. Rice to Holland. Also spoke of Roosev.elt
at some length.
May 8, 1935. 83, 84.
See - Roosevelt, Mrs. James.
Calling on Mrs. James Roosevelt she told US that when Roosevelt
went on his yachting trip sne asked him if he was ill and
he sid No, neither ill nor tired, but very cross and that he
felt like biting and scratching.
She also said Roosevelt would of course veto the bonus bill.
May 8, 1935. 83, 84
Gov. Eccles said that Roosevelt's cautious reference to Sec. M.'s
testimony favoring Government overship of Federal reserve bank
stock, - "that it m_ght solve many problems" was a political move
to make the banks feel tnat if they did not accept this bill,
they would get something worse.
May 18, 1935. 96
The Senate sustained the bonus veto of Roosevelt.
May 23, 1935. 97.
C.S.H. wrote Roosevelt congratulating him on the veto, as
follows:
Dear Mr. President:
Bertie and I know full well how busy you
are but I can not refrain from writing this
hurried note, in Which Bertie joins, to
congratulate you upon your bonus veto message.
In my opinion, and that of Bertie, as well, it will
stand forth as a Washington monument among the
great state papers of our Presidents.
We are looking forward to an opp-crtunity
of expressing in person What is so difficult
adequately to express in rritin-. We hear
thunders of applause from all parts of our
country.
Please do not answer this note.
With our best wishes,
Sincerely yours,
Josephus Daniels said Roosevelt seemed impressed with the taxing
idea but that he advised him to go very slowly along any
such lines.
June 5, 1935. 103.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
173.
Roosevelt, Pres. (Contld.)
Gov. Eccles and the Treasury Committee talked witn Roos-velt
who stated:
1.
He would not , gree to separating Title II from the bill.
2.
He greatly preferred Gov. Eccles' draft of Open Market
Committee.
3.
That he had an open mind and would consider:
(a) Power to form a Board with Governors on it,
excluding ex-officio members.
(b) Power to form a Board of 8 with 5 Governors, with
an Executive Committee of 3 Board members and
2 Governors.
Roosevelt accepts divided responsibility which C. S.H. fears will
never settle the question satisfactorily.
June 14, 1935. 114.
Gov. Eccles several times asked the Board to consider the banking
bill but the Board declined formally to consider it unless
Gov. Eccles could say that Roosvelt wished its opinion,
Which, Gov. Eccles said, was not the fact.
June 22, 1935. 119.
Miller was specially insistent on tnis.
June 20, 1935. 120.
Under tne bill as passed by Senate, C.S.H. unless reappointed
by Roosevelt within 90 days would end 21 years of faithful
service on the Board!
July 1, 1935. 129.
Thurston, for Gov. Eccles, told C.S.H. that he would be
reappointed by Roosevelt in any event, and not to think of
it again.
He seemed to think, however, that Roosevelt wants to reorganize
the Board, but he assured C.S.H. that he would be on it.
July 5, 1935. 130.
See - Thurston.
C.S.H. believes, even though he is on the reorganized Board,
would be a terrible mistake, even from a purely political
standpoint and would react heavily on Roosevelt.
July 5, 1935. 131.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
174.
Roos.s>velt, President (Conttd.)
Thurston did not say directly that Gov. Eccles was authorized
by Sec. M. aid Roosevelt to say this, but he gave C.S.H.
clearly and unequivocally to und:rstand that this was so.
C.S.H. feels sure that Gov. Eccles, a most cautious man, would
never have sent this message to him unless he had had direct
authority to say so from Sec. M. and Roosevelt.
July 5, 1935. 131.
C.S.H. feels that the power given to Roos-velt to remove
mamb.-rs "for cause", destroys the independence of the Board.
It makes the members little more than tenants at will of
Roosevelt. It is utterly wrong and will lead to the
undermining of the Federal Reserve System.
In the original Federal Reserve Act the power was given to remove
for cause and Wilson construed this so as to make the
members altho appointed for 10 years, hold office subject
to the will and pleasure of the President.
e.g. - one of C.S.H.ts commissions reads - "for a term of 10
years; subject to the will and pleasure of the President
of the U.S.", or words substantially to that effect.
Thus in the banking act of 1933 at the instance of Sen. Glass the
power to remove was stricken out in order, as Glass said, to
make the Board more independent.
As no specific power of removal was left in the Act, it would seem
that a member could be removed only by impeachment.
In restoring the power of removal in the Act of 1935, the intent,
in C.S.H.ts opinion, was to give the President power to
remove a member Whose politics mignt differ from those of the
President.
Roosevelt, e.g., removed Humphrey from tne Trade .'3ommission on tne
express ground that he did not carry out the policies favored
by the President, but the Supreme Court, overruling an earlier
decision, ruled that Roosevelt could not go beyond the express
words of tnat statute, w,aidh authorized removal only for
inefficiency, neglect of duty and malfeasance in office, and
Humphrey was held to have been illegally removed.
In restoring the word "cause" by the Act of 1935 the administration
evidently felt that these words would authorize removal because
of difference in policy, for the word "cause" is so broad tnat
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
175.
Roostvelt, President (Cont'd.)
no court could examine into the President's mind.
This is Wyatt's opinion.
Presumably Roosevelt will construe the word "cause" just as Wilson
did, thus making the members little more than tenants at will
of the President.
If the people understood tne meaning of this change a great political
issue would be raised wnich would seriausly injure Roosevelt.
July 7, 1935. 132, 141.
C.S.H. feels it most likely tnat Roosevelt wishes to reorganize
tne wnole Board.
His natural disposition is to tear down
just as a child tears down blocks.
It seems clear, however, from what Thurston said that C.S.H. will
be on the Board even if reorganized.
July 13, 1935. 117.
C.S.H. feels taat if Roosevelt has any courage he will veto the
bankipgbill if for no other reason such as removal for cause,
for the reason tnat a complete reorganization of the Board is
ordered in the bill as passed by Senate and finally made law.
C.S.H. fears, however, that he will yield to Farley wno will
dangle 7 new $15,000 jobs before his eyes!
July 16, 1935. 144.
If Roosevelt doeL tot reappoint C.S.H., the latter will be free
to publish his diary as to Roosevelt's administrtition.
July 16, 1935. 144.
C.S.H. mignt even publish an article entitled "The Federal Reserve
System enacted by WIlson, Glss assisting, and destroyed by
Glass, Roosevelt assisting.
July 16, 1935. 144.
Miller called on Roosevelt and had a long talk. He told Tnamas
and Morrill tnat Roosevelt did all of the taking and talked
about everything except the banking bill.
Miller said he finally spoke to Roosevelt in opposition to the bipartisan clause and thought he made some impression on him.
July 18, 1935. 148.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
176.
Roosevelt, President (Cont'd.)
Miller has said notning to C.S.H. as to his ,alk with Roosevelt.
July 18, 1935. 148.
Bertie wrote Sen.Walsh she could not ask a personal interview
with Roosevqt as to the cow pasture.
July 24, 1935. 152.
See - Cow pasture.
Hodsdon writes begging Bertie to get in touch with Roosevelt and
Mrs. Roosevelt. She never acknowledged the letter.
Aug. 9, 1935. 165.
See - Cow pasture.
Geo. P. Hamlin Jr. goes to Wasnington to see Roosevelt.
Aug. 14, 1935. 169.
See - Cow pasture.
Thurston said Roosevelt had gone to Hyde Park but had
instructed Steagall and Goldsborough that if the matter
settled down to the Senate bill or no bill, they should
accept the Senate bill verbatim, if necessary.
Aug. 16, 1935. 173.
Thurston said Gov. Eccles stood much in awe of Roosevelt.
Aug. 19, 1935. 176.
C.S.n. feels that Roosevelt at any time may throw over Gov. E.
Aug. 19, 1935. 176.
Roosevelt signed the banking bill today.
Aug. 23, 1935. 180
Represented to our Board that Roosevelt and Sec. M. want
Gov. Harrison to become a director of the B.I.S. Board
believes Roosevelt is not really interested.
Aug. 23, 1935. 180, 181.
See - B.I.S.
t Gov.E.
Roosevelt announced from Hyde Park that ne would appoin
Chairman of the new Board.
Sept. 18, 1935. 189.
him at Hyde Park.
Thurston said Roosevelt wired Gov. E. to come to
show to Roosevelt;
Thurston said he gave Gov. E. a memorandum to
sting meeting.
.y
that th, cad a most intere
Sept. JO, 1935. 190.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
177.
Roosevelt, President (Contld.).
Thurston said his guess was that Roosev it would reappoint
tne *hole Board.
Sept. 20, 1935. 190
C.S.H. wrote Roosevelt telling him of the encouraging news as to
recovery given by the Federal Advisory Council.
Roosevelt replied as follows:
White House,
Sept.26, 1935.
Dear Charlie:
I was delighted to have your encouraging note
of Sept. 24th with the announcement that conditions
seem to be definitely on the mend. I too am worried
about the relief situation.
Alwvs sincerely,
Franklin D.Roosovelt,
193, 194.
RoosPv-lt Mrs. Franklin.
Bertie lunched at Whit,D House and sat beside Madamn de Labouley.
Jan. 10, 1935. 7.
Mrs. Roosevelt writes Bertie:
The White House,
Wash. Jan. 8, 1935.
Dear Bertie:
Here I am once again writing you to do
your incomparable letters for the "News". I
know it is a lot to ask of you but it really is
tremendously popular and I shall be more than
erateful if you feel tLat you can do it Again
for us.
Affectionately yours,
Eleanor Rooselnit.
Bertie at once replied that she would continue nnr letters.
Jan. 8, 1935. 7.
Edith Helm said Mrs. RoosevAt invited Mrs. Barrett Wendell to
lunch when she told her she was a friend of Bertie's.
Jan. 13, 19Z5. 13.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
178.
Roos vAt,Mrs. Franklin (Contid.)
Bessie Lovett gave a lunch to Mrs. Roos(-velt at which Bertie was
present.
Feb. 8, 1935. 35.
Mrs. Roosevelt told Bertie that Roosevelt refused to accept a
World Court reservation that nothing should be submitted
except by a 2/3 vote of the Senate, as ne could now ubmit
any question to the World Court without joining it, while
the reservation would take away this right.
She said also that the defeat was due as much to Will Rogers radio
talks as to Fatner Coughlin and the Hearst papers.
Feb. 8, 1935. 35.
Bertie lunched at White House.
Feb. 33, 1935. 43.
Bertie lunches with Mrs. Hull to meet Mrs. Roosevelt.
Mar. 4, 1935. 48.
A Mrs. Jones of Woman's National Democretic Club said to Bertie
sne was talking with a group of women rho all agreed that,
next to Mrs. Roosevelt, Bertie was tne most loved woman in
Wasaington.
Mar. 11, 19.5. 51.
Zdith Helm telephoned that Mrs. Roosevelt will accept Honorary
President of the Democratic Club if elected.
April 12, 1935. 73.
C.S.H. wrote Mrs. Roosevelt telling her of the joy she gave to
secretaries in inviting then to tea on Saturday, May 19th.
May 26,1935. 97
May 26, 1935.
Dear Mrs. Roosevelt:
I am writing this note to tell you of the pleasure
you gave to my secretary, Mrs. Nagle, by inviting her
to the Garden Party a week ago yesterday. Sne was
almost in a state of ecstacy and at once went out to
buy an appropriate gown for the occasion. When I think
of the equal pleasure you also gave to hundreds of others,
I can only say that if I could once in my life have
given such nappiness to so many, I should feel it was a
life not spent in vain!
Witn our kindest regards to the President, believe me
Sincerely yours,
Bertie joins the in the above.
Please do not answer this.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
179.
Roosevelt, Mrs. Franklin (Contld.)
Bertie received
he following letter from Mrs. Roosevelt:
Dear Bertie:
I am so sorry to near about your brother-in-law.
What a tragedy and yet so understandable!
You were a dear to do the letters at this time
and I appreciate it. From our point of view the
longer you stay in Wasnington the better, but for
your sake I hope you will soon get away.
My sympathy and Franklin's to you both.
Affectionately,
Eleanor Roosevelt.
July 10, 1935. 134.
Roosevelt, Mrs. James
We called up, in New York and she said she would be delighted to
have us call.
We had a very interesting call.
She spoke of tae 1E2 year term for Holland which Roosevelt offered
W. G. Rice.
Bertie explained tnat the office was for only ake_ year, and tnat
W. G. Rice naving two sisters to gap ort could not accept
it, as he could not give un nis Civil Service position for
one year abroad.
She said again and again now sorry she was about the yeeole matter.
Bertie told her now enbarrassing tne premature annauncenent in the
New York Times was.
C.S.H. said tnat if tney could nave nad a personal talk together,
tne matter mignt have been adjusted and she said very
emphatically, I am sure it could.
Sne told us tnat a young Hollander was madly in love with Keetje
and nad ccme over to America in pursuit of her.
She had not heard of Ke-tje's present position.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
180.
Roosevelt, Mrs. James (Contld.)
Sne said tnat wnen Roosevelt rent off on Ms yacnting trip, she
asked nim if ne was ill, and ne said ne was neither tired
nor ill, but very cross, and ne felt like biting and scratching.
Sne said ne would of course veto the bonus bill.
She begged us to stay to dinner but she looked tired out.
declined.
May 8, 1935. 83, 84.
We
Roper, Sec.
C.S.H. attends watermelon party at name of.
Aug. 11, 1935. 166.
Row. James and Miller. 61, 62.
See - James
Miller
Russell, Cong. & Mrs.
Dine with us at Democratic Club.
Mar. 13, 1935.
53.
C.S.H. suggests to Tnomas to call on, and talk about banking bill.
Mar. 30, 1935. 68.
Ruffin,Dr. Sterling.
Dr. Dunn report.
Anemia. 75
Blood pressure 180.
Sugar 0.
Blood sugar 17.
He - aid tne blood pressure was ratner high, but nothing to
worry about.
May 3, 1935. 82.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
181.
-S-
Saito
See
- Japan.
Salaries.
Wyatt recommended for Howland Cnase but in nis meiorandum said
his work was poor but an increase in salary would encourage him!
C.S.h. fears Wyatt would like to nave Board drop Ciaase. C.S.H.
does not sympathize with Wyatt's feeling, as ne knows tie
pin-pricking propensity.
Jan. 1, 1935. 2.
C.S.H. told Morrill that Wyatt nad never consulted aim as to
changes in salary of nis staff.
Morrill said Wyatt felt to consult C.S.H. would be a breacn of
confidence towards Gov. Eccles wnicn would offend him!
JO'. 7, 1935. 5.
The Board fixed salaries for Federal reserve banks.
C.S.H. tried to nave Osgood's salary increased but Board felt that
so recently appointed he snouLd wait for tne present.
Jan. 23, 1935. 20.
Roosevelt told Gov. Eccles that Comress would never approve $20,000
as salary for Board members but Gov. Eccles sold him that to
get $15,000 we must ask for $20,000.
Jan. 29, 1935. 23, 34.
Morrill said he reported to Gov. Eccles, C.S.h. and James request
for immediate action on messenger sal 'ries, because of tneir
gross inadequacy, but tnat Gov. E. objected saying they must await
the settlement of all staff salaries; that ne was too busy to
take tnem up now.
Considering that ne, on coming to our Board, nad advanced his
messenger's salary to $1800, tne same as given to our chief
messenger, it seems most unfair.
Mar. 1, 1935. 47.
ion
In discussing appointments and salaries, Gov. Eccles said jurisdict
ted in aim, and snould so continue
in first instance was ve
wnile ne was Governor!
Miller snouted out - Not it will not!
the death
I shall fignt you on this to
Tne Goveror was tnen directed to prepare and report a plan under
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
182.
Salaries (Cont'd.)
wnicn all matters of personnel should first be considered
by tne member naving gen.-ral cnarge before being passed on
by the Board.
On vote, this was passed unanimously even Governor Eccles voting
for it.
Mar. 27, 1935. 61, 62
Board took up salary lists.
The conferences favored all the proposed increases in wnich
C.S.H. concurred.
Miller and James ob,*ted.
Board finally voted to agree to all proposed increases involving
salaries of not over $3000, and referred the others back to a
new Committee , - Tnomas, James, and Szymczak, the staff to
explain to it tne reason for asking tne increases.
James said tnat as we naa warned N. Y. against incre'ses,we should
not go above the $3000 limit, but Board would not accept this.
C.S.H. said the N. Y. salaries compared with ours as the Wasnington
monument witn a lamp post!
Gov. Eccles laugnted heartily at this.
C.S.H. fears Howlamd Chase will get no increase.
James complained that no one could get in to see Gov. Eccles on
this subject; that he nad tried many times but was always
told tnat the Governor was busy but would send word when free,
but that no word wver came.
Thomas said the same.
Gov. Eccles explained now busy ne had been.
Gov. Eccles finally agreed to accept any by-law tne Board snould
adopt as to direct supervision of all appointments by the
members having direct charge of sucn matters.
C.S.h. cited Betnea, Asst. Sec. as deserving of an increase.
James was moodily silent as he has been particularly opposed to giving
Bethea as high a salary as Noell, his particular pet.
April 12, 1935. 72.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
183.
Salaries (Contid.)
The Committee, Thomas, James and Szymczak, finally agreed and
reported on salaries.
They increased. Bethea from $7,100
for Carpenter.
to $7,500, and a smaller incre se
They gave Chase an increase of $250 and the same to DuBois.
Szymczak said the Committee agreed an above lines and if not
accepted the Committee would resign and in which case he believed
the Board would disapprove all increases.
C.S.H. and Thomas agreed that a compromise would be better than
complete failure.
April 29, 1935. 73, 79
C.S.H. fears Farley will have sometning to say as to apoointment
of members at $15,000 each.
July 16, 1936. 144.
Scott, James Brown. 104.
See - Carnegie Endowment.
Sedgwick, Ellery. 36.
See - Leutram, Countess
Serving over after expiration of term.
C.S.H. asked Morrill and Wyatt to draw an amendment providing
that Board members on expiration of their terms could hold over
until their successors are Lp:ointed and have qualified.
Mar. 29, 1935. 64.
Settle, Mr. 74.
See - National Theatre
Shotwell
85.
See -Carnegie Foundation
Shouse, Jouett
We dined witn Mrs. Gronna, first wife of.
Feb. 28, 1935. 47.
Silver
Sen. Thomas wrote each member of our Board asking our opinion
of U.S. silver policy.
Sept. 22, ;935. 191.
Sinrod, Mr.
See - Hay-Adams House.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
184.
Smith, Tom. 113.
See - Eccles, Gov.
Smoot, Ex-Sen. Reed. 77.
See - Eccles, Gov.
Securities bill. 101
See - Eccles, Gov.
Spring-Ruce. 171.
See - McAdoo
Sloppy legal work. 27.
See - lYatt
Spanish Ambassador
We meet, at dinner with Sec. Morgenthau.
Anril 9, 1935. 69.
Steagall, Con(. 70.
Sprague, Prof. 0.M. W.
Daiger said, would testify in favor of the bankine bill.
A week ago Sprague called and said he was not aver 5f to the
bill, even to its real estate loan provisions, except that
he thought that amortized loans snould not exceed 10 years.
He also asked as to Board's opinion on having an Open Market
Committee with 2 Governors on it as suggested by the Treasury.
C.S.H. said the Board was absolutely opposed to tnis.
C.S.H. suspects tnat Sprague is at heart working for the N.Y.
bankers, concealing this in an apparent acquiescence with much
of the bill.
May 2, 1935. 81, 82.
Spreckles, Miss. 73.
See - Boreel, S.
St. Agnes Church. 77
S - Hamlin, Anna.
.
St John's Church
Sends out questionnaire - whether women pew holders should be
given the right to vote at meetings and hold office, e.g.
as vestrymen.
Feb. 131 1935. 39.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
185.
St. John's Church (Contld.)
Attended me-ting of Men's Club at home of Mrs. Jennings.
Dr. Hart told C.S.H. that poll in question of women voting
showed a majority of 5 against
There was some complaint tf,at the right to vote and also
hold office w:re grouped together.
One voter said that although he voted No on the joint proposition,
yet ne would have voted Yes on the rignt of women to vote.
C.S.H. said he supposed the question was limited to the rignt to
vote.
Feb. 21, 1935. 44.
The vestry received the poll on right to vote and told office.
No. 18, Yes 11.
Three of the eleven qualified this vote by favoring right to
vote but against rignt to hold office.
There are 56 pew holders or holders of sittings and this.
not vote.
27 did
C.S.H. moved to send another card to those who did not vote. Passed.
March 3, 1935. 48.
The new poll showed:
Aye: 10
No.: 22
Aye, or voting
3.
This ends the matter.
April 3, 1935. 68.
Annual meeting.
Justice Roberts elected on ve-try.
C.S.H. and Admiral Grayson hold over, so no election necessary.
April 22, 1935. 75.
Dr. ilart said ne told Lucas if a new job were offered him he nad
better accept it as he was out of sympathy with nim.
Dr. Hart never consulted C.S.H..'
June 3, 1935. 109
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
186.
St. John's Church (Contld.)
Bertifi gave $1 for flowers for the church in memory of Anna.
The Assistant Rector this a.m. announced tnis and prayed for
Anna. It ,;rought tears to my eyes.
July 21, 1935. 151.
Stabilization
1
Miller in article said prices were stabilized from 1!122 °1929,
although inventions, etc. lowed costs; that gage profits
were made whicn went into loans "for otters".
Mar. 19, 1935. 56.
Goldenweiser quotes C.S.H. clause governing, of prices given to
H.R. Committee in 1928.
Mar. 21, 1935. 57.
Miller opposed the clause in the banking bill as to stabilization
of Prices.
May 18, 1935. 95.
Steagall, Cong.
68, 70, 87, 88, 89, 90.
See -Eccles, Gov.
Stock
See - Federal reserve bank Ftock.
Stock exchange regulations
C.S.H. helped secure a postponement of effective date of.
May 16, 1935. 93.
Stokes, Canon
We lunched with.
Jan. 27, 1935. 21.
Stone, Justice
Said tie knew Oliphant well; that ne had very limited legal
ability; tnat it was ridiculous to have him as Adviser thf
the Treasury.
Jan. 4, 1935. 4.
We meet, at dinner with Judge and Mrs. Gronna.
May 8, 1935. 88.
Stevens, Federal Reserve Agent. 186.
See - Harris.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
187.
Suppers
We nave a supper to representatives of the Hamlin family
who came down to the unveiling of the Hannibal Hamlin statue.
June 8, 1935. 110.
Szymczak
Very indignant at Gov. Eccles because of his isolation and
failure to hold :Lore frequent meetings.
Jan. 1, 1935. 3.
Said some days ago he wanted to see Gov. Eddies wno was busy;
that finally Gov. Eccles called nim up at nis nouse; that he to)i
Gov. Eccles frnnlpy that ne should consult the Board more
than ne did; that Le did not particularly care for nis place
on the Board and was willing to resign at any time if he
was non persona grata to Gov. Eccles.
C.S.H. tninks a storm may be brewing.
Jan. 1, 1935. 3.
Wanted Board to be given power to appoint all Governors and not
merely have power of confirmation.
Jan. 30, 1935. 24.
Cites instances of staff appointments without prior consideration
by members charged witn responsibility.
Mar. 29, 1935. 61.
As one of Board Comaittee, agrees on staff salaries and if
not accepted the Committee would ask to be discnarged and
Board would probably make no increases.
April 29, 1935. 78, 79.
Votes for C.S.H. motion to lay on table Miller's motion to ask
to abolisn all interlocking directorates.
May 1, 1935. 81.
Gov. Eccles said ne noped, would speak to any Senators he knew
in frvor of nis nomination.
May 18, 1935. 95.
Testifies before Sen. Committee in general approval of banking bill.
June 3, 1935. 100.
Refuses to vote on C.S.H. motion to approve transfer of Edmiston
from Gov. Eccles' office to that of Goldenweiser.
June 12, 1935. 112.
Kipliner says, is likely to be reappointed.
July 17, 1935. 146.
Said ne was to dine with Sen.Townsend tonignt.
July 22, 19Z5. 151.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
188.
Szymczak (Cont'd.)
Said Sen. Townsend seemed generally favorable to the Glass
report on banking bill; tat he discussed some moderate
amendments; that ne - Szywczak - made a strong argument
,
against ti- e bi-partisan clause, and thouent he made some
impression.
July 24, 1935. 152, 153.
le
Thurston said there was general dissatisfaction over possib
appointment of Thomas and Szymczak.
Aug. 1, 1935. 167.
Sec.
Said Gov. Harrison told him ne would prefer to nave Under
Coolidge mad•, Chairman.
Sept. 20, 1935. 190.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
189.
-T-
Talley
Thurston said the name of, had been mentioned for appointment
on the Board.
Aug. 12, 1935. 168..
Tappan, Robert. 127, 188.
See - Hamlin, G. P.
Taxation
103.
See - Brandeis
Taylor, Margaret 110
See - Hamlin, Hannibal
Teas
Term
At Alibi Club in honor of Hoffman Philip.
Mar. 15, 1935. 53.
Board members to serve over at expiration of.
64, 65.
See - Eccles, Gov.
Tenean beach. 188, 189.
See - Cow pasture
Thom, Corcoran
Dines with us to meet Sec. Morgenthau.
Mar. 13, 1935. 53.
See also - Morgenthau. 42.
Thomas, Federal Reserve Board
Eccles and
Much disturbed because of the isolation of Gov.
of tiv- Bonrd.
his failure to have more frequent meetings
Jan. 1, 1935. 3.
on on a
Said it was foolish for Board to express an opini
bill in which it had no part.
Feb. 4, 1935. 23
bill: - if a newly
Said he had discovered a joker in banking
nated as Govern -A., say a we6k
appointed member were desig
and the incoming
before an administration went out of office,
nor, the first
administration should designate another Gover
be considered to have served
Governor, under the bill snail
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
190.
q-al Reserve Board (Contld.)
Thomas, Fed,
out his full term of 10 years for which originally
appointed, and after e.g. only one week's s-,rvices,
if 65 years old) would have retirement pension of
$15,000 for lifei
Feb. 4, 1935. 30.
Told C.S.H. not to worry about the retirement clause shutting
him out; that it would be changed.
Feb. 21, 1935. 44.
Said he had a long talk with Gov. Eccles as to permitting the
appointment to a new terra of any present member over 70 years
of age; tart Gov. Eccles would not agree to this but was
graciously willing to permit present members over 70 to serve
out their terms.
Mar. 25, 1935. 58.
Thomas said Gov. Eccle told him tnat C.S.H. is a good man but we
must take the broader view.
Mar. 30, 1935. 65.
Defends with C.S.H. the move to auandon proceedings against
Mercantile Trust Co. of St. Louis.
Mar. 3), 1935. 66.
Complained he had great difficulty in seeing Governor Eccles.
April 12, 1935. 72.
Agrees, as a member of Board Connittee on a list of staff salaries.
April 29, 1935. 75.
On C.S.H.'s motion, votes to lay on table Miller's motion to
nave all interlocking directors abolished.
May 1, 1935. 81.
Gov. Eccles hopes Thomas will speak to any Senators ne knows
in favor of nis confirmation.
May 18, 1935. 95.
Testifies before Sen. Committee on banking bill.
June 3, 1935. 100.
nd
Votes, with C.S.H., in favor of allowing the Cleveland Bank
stocks owned by the
Trust Co. to retain some $&D,000 of
Dollar Saving.- Bank whose assets it took over.
Board voted IT?.
June 29, 1935. 159
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
191.
Thomas, Federal Reserve Board (C3nt'd.)
Thurston said there was general dissatisfaction with
a-nointment of Tnomas and Szymczak in Congresg.
Aug. 12,1935. 167
Said rumor was that the Conference Comrtittee would throw out
tne Bi-partisan clause.
Aug. 12, 1935. 168
Thoucnt the practice of Industrial Trust Co. in accenting lira
was not a deposit requiring reserves.
Sept. 29, 1935. 195.
Thomas amendment
Glass told Miller tne otner day that if Roosevelt nad vetoed
the, there would not have been 15 votes in Senate
favoring overriding of veto.
January 4, 1935. 3.
a question of
C.S.H. said purchases of Government securities were
agreement befween Federal reserve banks and Board.
compelled to
Gov. Harrison said Federal reserve banks could not be
buy Government securities.
ry to
Miller cited the Thomas amendment authorizing the Treasu
l reserve banks would
issue 3 billions of greenbacks if Federa
not consent to buy Government securities.
e banks
C.S.H. said the reference to consent of Federal reserv
could not be forced to buy.
showed tnat the banks
Few. 3, 1935. 33.
• Thomas, Senator
Was palred to enter World Court on vote.
Jan. 26, 1935. 22.
Asks each member of Board to write opinion as to policy
towards silver.
of our
re asked Wyatt whetLer this matter came within scope
duties.
James wrote absolutely opposing.
Sept. 22, 1935. 191.
Tnurston, Eliot
t-stimony before
Told C.S.H. that Miller criticised C.S.H.
because he told Glass
Senate Committee on bankin,r. bill,
ne would nominate
that if the Board were made independent
Governor.
Gov. Eccles as its first self-appointed
June 9, 1935. 105.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
192.
Thurl-ton, Eliot (Cont'd.)
Called on
From what ne said C.S.H. is satisfied that Roosevelt wants
to reorganize the Board.
He said tie nad a long talk with Gov. Eccles yesterday; that
Gov. Eccles said that at first lie worried about the thought
of reorganization, because of the possible effect on
C.S.e., but that now re could tell C.S.H. that tie could
absolutely dismiss the matter from his mind, so far as any
personal interest was concerned, as, in the event of a
reorganization, C.S.H. would be taken care of, and that he
would be a member of .he reorganized Board.
July 5, 1235. 130.
Tnurston said ther.3 was mucn opposition to James' reap-oointment
and that Gov. Eccles could not get along witn Miller!
July 5, 1935. 130.
Tnurston said Gov. Eccle:3 was trying to get tnryugh a retirement
system by an amendment to be offered on the floor of the
Senate and that De felt there was a fair chance of Success.
July 5, 1935. 131.
The above makes C.S.H. feel easier, but ne still feels that
reorganization of the Board would be a terrible mike which
would react neavily and injuriously upon Roosevelt!
July 5, 1935. 131.
Thurston, while not explicitly saying that Gov. Eccles had
autnority from Sec. Morgenthau and Roosevelt to say this,
yet clearly gave and intend -c1 to give C.S.H. that
intimation.
Tnis was an assurance clearly binding as between gentlemen!
July 5, 19T5. 131.
Told C.S.H. there was more than a good cnance that the Senate
will permit the Board to get the benefit of the existing
Federal re-erve retirement system; also that Roosevelt
positively insisted that the Federal Reserve Board should
hLve absolute sole ultimate control over open market purchases
and sales.
July 13, 1935. 155.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
193.
0
Thurston, Eliot (Con- d.)
C.S.H. said tnat since nis talk with Thurston the other day he
nas dron7)ed from nis mind all worry about the rumored
reorganization.
Thurston at once said, "You need not give it anotner thought,
you will be most gratified at the result!"
July 13, 1935. 135.
Thurston said Roosevelt could take the position that there were
only four present members appointed as Democratics, but
he thougnt that would be naxdly consistent with the spirit
of the clause requiring new ap-ointments.
July 13, 1935. 156.
C.S.H. asked if he had neard who tne 7th new member would be.
Thurston said ne nad heard tne name of John Williams of the 1st
district mentioned, a Professor at Harvard and Economist af
Federal Reserve Bank, New York.
C.S.H. said if Williams was appointed it would tnrow nim out.
Thurston quickly replied that if Williams were apoointed it muld be
from tne New York District.
This, to C.S.H. , is another indication that he - C.S.h. — is to
be rea-ipointed.
Thurston also spoke of bitter feeling towards Japes and Miller,
more bitter against Miller than against James.
Thurston defended Miller.
1
July 13, 1 95. 137.
Thurston s id, on leaving, - "You will be most gratified at the
,
resultIl
July 13, 195. 137.
C.S.h. believes it certain that Roosevelt intends to reorganize
the Board, but is equal'certain that Thurston was duly
authorized to say to C.S.H. that ne would be on the new Board.
July 13, 195. 137.
Tells C.S.H. tnat everything is going well.
July 17, 1935. 146.
C.S.H. feels that Thurston's remark "deeply gratified" means
sometning more tnan a mere reavnirtmant, either a long term
or possibly designation as Vice Cnairman,certainly nothing
less than this would "deeply gratify"
July 17, 19:5. 146.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
194.
Thurston, Eliot (Contd.)
We called on Mrs. Thurston but she nad left for the sumner.
July 30, 1935. 160.
Admits to Tnamas that Under-Secretary Coolidge is taking
,
bill with the Committer .
Aug. 8, 193E. 164.
UD
banking
Tells C.S.H. that matters are progressing, on the whole,
satisfactorily.
He suge,ested tfiat C.S.H. take his vacation, s-ying that naturally
C.S.H. must be worrying, but added that ne was absolutely
confident tnat C.S.H. would be reapJointed and ne intimated 'Ao.p.t
a slate nad been made up which included C.S.H.
Aug. 12, 1935. 167.
He told C.S.H. he nad talked with many members of H.t. and Senate;
that all agreed that C.S.H. and Wller should be reappointed;
that dissatisfaction, •nowever, was Quite general as to Thomas
and Szymczak; tnat they seemed to know little about James.
Aug. 12, 1935. 167.
Thurston told C.S.H. that Gov. Eccles nad gone to hyde Park from
Utan.
Aug. 16, 1935. 173.
Told C.S.H. that Roosevelt nad instructed Steagall and Goldsboroug42
that if the matter narrowed down to the Senate bill or no bill,
they should accept the Senate bill verbatim.
Aug. 16, 1935. 173.
He did not refer to C.S.H. in any way but said notning to indicate
to take
anY change in the situation, but again urged
a vacation.
Aug. 16, 1935. 173.
Said ne noped Roosevelt would rean7cint the wnole Board plus 1
Republican.
Aug. 20, 1935. 176.
C.S.H. said Roosevelt could readjust the terms as ne saw fit.
Aug. 20, 1925. 176
he said Gov. Eccles wanted tne 2 year term so tnat after 2 years
he could if ne wished, go back free from the 2 year limitation.
C.S.H. pointed out tnat fie must nave at least a 4 y-ar term to be
designated as Governor or Cnairman.
Aug. 20, 1935. 176.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
195.
Thurston, Eliot (Contld.)
He said Gov. Eccles stood too much in awe of Roosevelt.
Aug. 20, 19,5. 176.
m
Said Gov. Eccles went to Hyde Park in reponse to a telegra
that tie gave
from Roosevelt; that tie flew from Ogden;
Gov. Eccles a memorandum for Roosevelt to give out as to
apoointing nim Cnairman; tnat tney had a most narmonious
meeting.
Sept. 24, 1935.190.
Said he thought Gov. Eccles did not want nller reappointed,
,
but that he thought it better to reap- oint the whole Board.
Sept. 20, 1935. 190.
He said Szymczak told him that Gov. Harrison told him that he
preferred Under Sec Coolidge for Chairman of tne new Board.
Sept. 20, 1935. 190.
Town meeting.
C.S.H. serves on panel at, on debate on League of Nations.
Feb. 17, 1935. 40.
Townsend, Senator
C.S.H. sends, a table showing saving of $470,000 from
consolidation of Federal Reserve Agent and Governor.
June 5, 1935. 102.
See -Szymczak
150, 151.
Transamerica Holding Company
permits
Board voted unanimously to insert as a condition in voting
banks that
to all holding companies controlling national
they must agree to abide by all recommendations and
suggestions of the Comptroller, whose duty it is to examine
ing
them under Sec. 19, Banking bill of 1933, tne Board reserv
permit for refusal so
the right to revoke a general voting
to abide.
This does not prevent Board fram imposing any other conditions
in public interest.
Thus ends a long controversy.
could
The staff and counsel originally claimed that our Board
a national bank to make charge-offs, change
directly order
form of reoorts, etc. over the head of the Comptroller, which
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
196.
Transamerica Holding Company (Contld.)
would have resulted in civil war with the Conptroller
and would have placed on Board's shoulders full
resoonsibility for banking conditions in California.
July 12, 1935. 137, 138.
Treadwell, Cong.
C.S.H. meets, at dinnc-r with Schuyler Merritt.
Aug. 16, 1935. 173.
"Trea-ury boys"
23, 28, 29, 60, 63, 113.
See - Eccles, Gov.
Treasury domination. 154.
See - Glass.
Tregoe, Mr. 117.
See - National Association of Credit Men.
5
Trumbull, Mrs.
See - DeWith.
Tully, Miss
We gave a dinner to Rollins Larabee and, his fiancee.
June 6, 1935. 104.
OM
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
197.
-U-
United States Senate
List of Senators over 70 years of age: Borah, Coolidge,
Ca er, Fletcher, Glass, Jo_alson, Keyes, J. Ham. Lewis,
McAdoo, Metcalf, Norris.
58, 59.
See - Banking bill. 28, 127, 128, 157.
Bonus. 96, 97
Eccles, Gov. 73
Miller. 21
National Theatre. 75
World Court. 21, 22.
United States Supreme Court
See - Brandeis
Cardozo
Gold clause
holmes, Oliver Wendell
Hughes
Humphrey, Federal Trade ,:ommis,sion. 97
Mortgage bill. 97
Maeynolus
Miller. 24
Roberts
Stone
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
198.
-V-
Van Bleugel 39.
See - DeWith
Van Swinderen. 194.
See - Boreel, S.
Veto
See - Bonus. 96, 97.
Vindictiveness. 132.
See - Glass
Vines, Joseph. 16
See - Eccles, Gov.
Votes
See - Eccles, Gov. 66,67,68, 112.
Interlocking directors 81.
Miller. 81.
St. Joan's Church. 68.
Salaries. 68, 112.
Voting permits. 4.
Harrison, Gov. 180.
Carnegie Endowment. 85
Bonus. 96
Transamerica Corp. 137.
Voting permits
Board voted unanimously that all holding companies of national
banks must agree to abide by all recommendations and
suggestions of the Comptroller.
July 12, 1975. 137, 138.
See- Giannini.
Transamerica Corporation.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
199.
Waid, Elinor
See - hamlin, hanndbal. 110.
Walsh, Sen.
22, 152, 161, 162, 163, 164, 174
See,- Cow pasture.
Hamlin, H. P.
Warne, Mr. 150
See - hamlin, h. P.
Warren, Charles
We dined witn.
Mar.25, 1935. 58.
June 29, 1935. 159
Warren, Sen.
Wasnington,
H. P. H. leavPs, for Mattapoisett.
Aug. 8, 1935. 164.
Wasnington, 'Ars. Horace
Bertie meets, -t lunch with Bessie Lovett.
Feb. 8, 1935. 35.
Wendell, Mr. 13.
See - Roosevelt, Mrs.
White, Sen. 111
See - Hamlin, Hannibal
Watermelon party
At Sec. Roper's.
Aug. 11, 1935. 166.
Williams, John H. 136, 168.
See - Tnurston
Wilson, Mrs. Woodrow
We me -t, at lunch at Canon Stokez.
Jan. 27, 1935. 21.
We me - t, at dinner at Judge Covington's.
Feb. 25, 1935. 45.
We meet, at dinner witn Judge Gronna.
May 11, 1935 88.
Wilson, Woodrow. 141.
See - Delano
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
200.
Winsor Trust Co.
Board neld, could not subscribe to ai.itonal issue of stock
in a bank owned by it. C.S.;_. dissented.
June 29, 1935. 158, 159.
Wheeling Bank -nd Trust Co.
Took over a non-member bank and was allowed to ,ake over some
taousands in value of stocks owned by it.
Jan. 29, 1935. 107, 159.
Wnite House. 65, 83.
See - Hamlin, H.P•
Roosevelt,Mrs.
Women voters. 39, 48, 68
See - St. JonnIs.
Woman's National Democratic Club
Asst. Sec. Roche addresses.
Jan. 11, 1935. 10.
Bertie invites Madame de With to dinner at.
Jan. 22, 1935. 18.
Regretted.
Sen. Gerry speaks at.
Jan. 25, 1935. 21.
Roosevelt opposes Mrs. Gerry as President of.
Feb. 13, 1935. 39.
tnis to Bertie.
Mrs. Hull told
H.P.H. gives farewell speech nt dinner of, Mrs. Meiczs succeeding
her as President.
Feb. 27, 1935. 46.
We give dinner to Sec. an6 Mrs. Morgenthau at.
Mar. 13, 1935. 53.
Mrs. Roosevelt agreed to accept the honorary Presidency of.
April 15, 1935. 73.
We gave the Hamlins a supper at, statue of Hannibal Hamlin.
June 9, 1935. 110.
We gave a dinner at.
June 13, 1935. 113.
We gave dinner at, to Mr. and Mrs. Reagan, Commercial Attache
of Department of Comiyerce at Paris.
July 17, 1935. 150.
We gave a dinner at, to Mr. & Mrs. Keating.
July 23, 1935.
Women workers Club, N. Y.
H.P.H. goes over, with Anne Morgan.
May 9, 1935. 85
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
201.
World Court
Ertrance into, d-feated in Senate, not having received a 2/3 vote.
Jan. 28, 1935. 21, 22.
Sen. Walsh and Coolidge and Sen. Metcalf voted No.
Glass, Hall, Keyes, McNary and Pittman voted Aye.
Sen. Thomas tne radicalist, to wnun tne administration has
yielded so much, voted No.
Jan. 28, 1935. 29.
Mrs. Roosevelt told Bertie that Roosevelt refused to accept
reservation tnat noting should be done except with
approval of 2/3 vote of Senate, because he can now gabmit
questions to tne Court, of his own volition.
She also said its defeat was due to Will Rogers, Father Collehlin
and Hearst.
Feb. 28, 1935.35.
Wright, Gen.
't,at lunch with Mrs. Flint.
We me,
April 7, 1935. 69.
Wyatt
See - Salaries. 21 5, 62, 175.
Black Gov. 8, 9.
Retirement clause. 26, 27, 28, 64, 128.
Eccles, Gov. 26, 27, 28, 64, 67, 70, 75.
Holding over of members.
Mar. 30, 1935. 68, 70.
Sloppy legal work. 27.
Went to Glass to try to have him confirm Gov. Eccles but failed.
April 27, 1935. 77.
Glass -,aid it was not improper for Wyatt to do this.
Aug. 23, 195. 179.
See - Interlocking directors. 81.
Stegall. 90.
Attorney General's opinion. 100
Glass. 160, 167.
Roosevelt.175
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
202.
..y..
Yowne, Gov.
Attends funeral of George P. Hamlin and sends flowers.
June 26, 1935. 125.
See - Federal Reserve Bank, Boston. 153, 182.
Young, Owen D
or and
Writes Board tend:ring his resignation as Class C direct
uance in
Deputy Federal Reserve Agent, as he felt tnat contin
office would be inconsistent with the new policy of the Board
limiting future terms to 6 years.
Jan. 11, 19:5. 10.
he did.)
(The Board asked him to witndraw his resignation which
(The end.)
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Last itidex written
by M.?, N. Jan. 2?, 1936.
•
@FedFRASER