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Collection Tilde THE PAPERS OF CHARLES SUMNER MLIN DIARIES Series and/or Container Shelf/Accession No. 7 V -i5-C/f > / , //5 16 7/ /- c A 1/4/4 DIARIES. VOL. 27. October to July. 1956. Index - Digest A, B, C of Federal Reserve System Adams, Mr., American Bankers Association 50 See Federal Reserve Board Age limit -, See Federal Reserve Banks Philadelphia, Richmond, and San Francisco Federal Reserve Board 108 Roosevelt Albany, N.Y. H.P.H. arrives in Washington November 7, 1955 27 Alden, Mrs. Natalie We dine with - November 28, 1955 41 Amendments See Constitutional amendments American Bankers' Association Elected Adams of Salt Lake City 2nd Vice President, at meeting at New Orleans; Bennett, a friend of Governor Eccles, was reported by the committee for the position, but Adams was nominated from the floor and Bennett withdrew. Adams, in his address, advised bankers to refuse to take any more Government bonds. Doubtless the Convention was in sympathy with Adams' views. November 16, 1955 See Eccles, Governor - 55,56, 37 Anderson, Father See Hamlin, Anna 158 Andrews, Mrs. Lucy Was at lunch where Orcutt told story of American in Canada who refused to toast Roosevelt. November 9, 1936 52 Andrews, A. Piatt Death of - June 2, 1936 187 2. Appointment, C.S.H. See Special Counsel Approval See Federal Reserve Board Asser, General Sir John See Costin, Helen 134 90 Austin, Federal Reserve Agent Writes C.S.R. a charming letter on his retirement — Feb. 1, 1956 114 3 . -BBaker, Newton D. Called on C.S.H. Said he thought Ex-Senator Pepper's "prayer" when arguing in the Supreme Court against N.R.A. was not informal but affected him agreeably. He said he thought the Court would decide against the Government by a vote of 6 to 3. He said the Supreme Court had never rested the Protective tax on the General Welfare Clause. He asked about the new Board but C.S.H. could give him no information. C.S.H. spoke of Governor Eccles and said he had worked with him most satisfactorily; he (C.S.H.) said that while he had strong opinions, he seemed ready to change them if convinced that they were wrong and was always ready to discuss objections. Baker said nothing and C.S.H. is satisfied he is not friendly toward Governor Eccles. C.S.H. felt that Baker was impressed with the capitalistic view of public questions. He did not resemble the old time Baker, the former associate of Tom Johnson! November 17, 1935 50, 51 Wyatt said Logan, Counsel of the Federal Reserve Bank of New York, wanted to retain Baker in a suit for recovery of certain gold bullion. Wyatt told him to consult the Treasury; that this was important as the Federal Reserve Bank, if defeated, would have to ask the Treasury to indemnify it. Wyatt said Oliphant told Logan that if Baker was retained the Treasury would have no interest in the case, nor would it ask Congress to indemnify the Bank if defeated. Oliphant suggested retaining Leylin, once a Treasury expert, now in Covington firm of which Ackers was a member'. Logan asked authority of Board to retain Covington firm, which was granted. January 10, 1936 74,75 C.S.H. believes Roosevelt is angry with the Federal Reserve Board because it consulted Baker as to defending itself against Roosevelt's attempt to take its gold. January 16, 1935 81 4 . Baker (Contld) ?rites a very fine letter to C.S.H. as to his retirement from February 1, 1955 114, 116 Federal Reserve Board. Baker wrote in part: "I hope you turn it over (Federal Reserve Board) to other hands with all the feeling of pride and satisfaction that your friends feel about your splendid service." February 1, 1955 ' 117 Baker, Ray Stannard Called on C.S.H. with his assistant Mr. Nutter and had a long talk about the Federal Reserve Act. Baker said he was at work on Volume 6 of his Life of Wilson which had to do largely with the Federal Reserve Act. C.S.H. promised to send him the extracts from his diary sent to the Senate Committee inquiry as to munitions and other mimeographing. C.S.H. sends Baker above extract also other mimeographing,— the Review of Warburg's chapter in the Redistricting Digest in the Federal Reserve Board and other mimeographs. April 21, 1936 153, 154 C.S.H. wrote Governor Eccles asking if he saw any objection to C.S.H. helping Baker, of course, unofficially, with his work on the Federal Reserve Act, to be sure that he gave proper attention to Open Market powers. Governor Eccles replied that he strongly favored this. May 31, 1936 184 Bank of America See Voting permit 9, 18, 25 Bank of England See Senate Munitions Inquiry Banking Act of 1935 See Governor Eccles Bannister, Mrs. Told Mrs. Keating that Glass was much relieved at C.S.H.'s appointment by Federal Reserve Board. February 8, 1936 1 124 Beck, James M. Death April 12, 1936 150 5 . Berle Dr. Miller said Berle wrote Roosevelt's railroad speech. December 24, 1935 86 Biddle, Lilian (Lilian Lee) C.S.H. received a Christmas card from 'Ars. Biddle December 23, 1935 Blood Pressure See Ruffin, Dr. 55 181, 192 Bliss, Mrs. Gives lunch ta.H.P.H., Mrs. Dent and Helen Costin June 8, 1936 Blood sugar See Operation — Ruffin, Dr. 190 145, 146, 147 Board of Governors See Federal Reserve Board — Eccles Governor Boreel, Sophie S.B. to C.S.H. October 26, 1935 December 9, 1935 January 2, 1956 February22, 1936 March 20, 1936 March 29, 1936 April 20, 1936 8, 1936 June November22, 1936 December12, 1936 Dates of letters C.S.H. to S.B. October 8, November19, December16, February 8, March 9, April 2, May 25, June 26, Dec. 10, 1935 1935 1935 1936 1936 1936 1936 1936 1936 . 6 Boston See Mansfield Bowles, Mrs. Robert Death November 7, 1935 Boycott of Government See Eccles, Gov. 27 35, 36 Brandeis, Justice Asked C.S.H. to call at 5 P.M. C.S.H. called. He had not heard of C.S.H.'s operation. Talked Emphasized that bank reports much of evils of big business. should show real condition of the banks. Breakfast See McReynolds 194 Broderick Daiger said it was definitely understood that he would be appointed on the new Board. 57 December 24, 1935 Thurston said Gov. Harrison offered to bet $10 that, and the whole present Board would be appointed. 66 January 3, 1936 Roosevelt nominates new Board including Broderick 105 January 27, 1936 Szymczak said Broderick was to be made Vice Governor 110 January 30, 1936 C.S.H. feels that Glass is behind Broderick January 26, 1936 Calls 111 on C.S.H. at Hay-Adams for one-half hour. 121 February 3, 1936 Calls on CS.H. February 17, 1936 C.S.H. writes as to his operation March 5, 1936 Burling, Mrs. See Thurston 131 139 109 .1••••••• 0 •MIM,MIr/IMII 7. -CCalifornia Savings Banks Board rules that a savings department of a California State bank is not a savings bank under Banking Act of 1933. 47 March 12, 1936 Culkins, Governor New Board disapproves as Governor Federal Reserve Bank of San Francisco. See Federal Reserve Bank of San Francisco. February 26, 1936- 134, 135 Capsule, Needling of See Operation 148 Cardozo, Justice liller pointed out to Roosevelt that limiting term of Justices to 10 years would throw out Cardozo and Brandeis. 95 January 23, 1936 Carey, Sarah C.S.H. receives letter from and answers it January 1, 1936 64 Carnegie Endowment C.S.H. and H.P.H. went to New York to attend meeting. Meet at house of Mrs. Carnegie in honor of 100th birthday of Andrew Carnegie and of first meeting of the Endowment held 25 years ago in Carnegie library where we met. Sforza former Prime iiinister of Italy spoke as also a former Prime Minister of Hungary. Elihu Root also spoke. Mrs. Carnegie gave us a lunch after the meeting. Carnegie, Mrs. See Carnegie Endowment Cataract See Hamlin, C. S. Cataract operation Morrison, Dr. Operation Cathedral, See Wilmer, Dr. Class C Directors See Stern 45 . 8 Class C Directors (Cont'd) Board met to consider Class C directors whose terms expire December 31, 1935. C.S.H. moved to reappoint all present incumbents for three years but to designate them as Chairman and Federal Reserve Agent to hold at pleasure of Board. C.S.H. said this would be just and would not interfere with final determination of the new Board. C.S.H. added that as Board is considering a change in this law which might do away with the Chairman as a salaried officer, this would extend their salaries to March 1, 1936. Miller wanted us to let all terms expire on December 31, 1936, but to reappoint Peyton of Federal Reserve Bank of Minneapolis C.S.H. said this would be a reflection on the other Chairmen, especially on Curtiss. Miller attacked Curtiss and C.S.H. said that at the proper time he would reply to Miller's attack. C.S.H.'s motion was then put and C.S.H. thought it was carried. Miller denied this but finally said that if the extension was only until March 1, he would agree. C.S.H. by unanimous consent then changed the motion, and limited his redesignation to March 1, 1936. This was voted unanimously. No action was taken as to termination of 3 years term after designation as Chairman erased. James said they were all gentlemen and would resign as Class C directors. It was voted not to reelect Simpson of Chicago and Owen D. Young of New York as both had served over 6 years, and the Board's policy was then adhered to. The expiring Governors were also designated up to March 1st. All Class C directors who had not served 6 years were reappointed. Thus Curtiss, Case, Hoxton and Walsh were designated up to March 1, 1936. October 29, 1935 41, 42 9 . Clayton Thinks Coolidge will go back to 1st National Bank Boston January 17, 1936 82 Called up C.S.H. and said Gianini wanted to call on him April 30, 1936 161 Cleveland See Federal Reserve Board 59 Compliance See Voting permits 11, 14, 18, 23 Comptroller of Currency Lunches with C.S.H. Said Szymczak told friends of his in Chicago that it was settled that he would be reappointed in new Federal Reserve Board. October 18, 1935 4 Gave Board a fine repotton Bank of America. Said it was improving splendidly and expressed an opinion that a general voting permit should be given it on the sole condition that it should be revoked if the suggestions and recommendations were not carried out. The whole Board concurred. This is a great voctory for C.S.H. as the whole staff originally favored imposing conditions which would entirely exclude the jurisdiction of the Comptroller, and would have placed in Board responsibility for the whole banking situation in California, and would engender a civil war between the Comptroller and the Board. October 25, 1935 9, 10 Wrote C.S.H. as follows: Jan. 31, 1936 My dear Governor: Few men can look back upon a more glorious career of service to our country than you can. Few men have been given the opportunity to serve on any important Board in this country for a period as long as you have been a member of the Federal Reserve Board. In your two years as Governor of the Board and your twenty years as a member, you have influenced in no small measure the financial policies of a great nation. You have as nearly as any man I have ever known the perfect qualities of a judicial mind, always anxious to listen to the opposition, always firm in the determination to do justice. I am richer because of my acquaintance with you and I just want you to know that you will take with you into retirement my deepest affection. Sincerely yours, J. F. T. O'Connor Comptroller 10. Conditions subsequent See Voting Permits Conditions, See voting permits Connally, Eleanor C.S.R. lunches with October 28, 1955 17 Constitutional amendment Roosevelt told Miller and C.S.H. that he favored a, limiting the terms of Justices of the Supreme Court to ten years. 95 January 25, 1936 Cook, See Chairman Newton 92 Coolidge, Senator Thurston said, favored Foster for Federal Reserve Board January 27, 1936 108 Coolidge, Under Secretary Governor Harrison has close relations with the Treasurythru'his intimate relation with, 66 January 5, 1956 Resigned today -- January 17, 1956 82 Clayton thinks Coolidge will go back to 1st Nat. Bank Boston. Thurston could give no reason for Coolidge's resignation. He said jokingly,--perhaps it was thought better to have him resign before being appointed to your place on the Federal Reserve Board: January 17, 1956 82 Cooper, Lynn Dines with us at Democratic Club June 28, 1956 199 Coughlin, Father After an interview with Roosevelt, he said he should test the Constitutionality of the Federal Reserve Act. January 25, 1936 102 11. Cause, Removal for A dangerous change in Federal Reserve Act,--will make Board subservient to the President. 31, 60 See Eccles, Gov. Central Bank See Stern Thomas Amendment 6, 60 Chairman of Board C.S.H. feels it most inadvisable to do away with, as the President of the Federal Reserve Bank could not enforce credit restrictions against banks represented by his own directors. 5, 6 October 22, 1935 Chinese Embassy We dine at, to meet Mayor Mansfield of Boston 34 November 18, 1935 Cooperation See devaluation 6 Costin, Helen Comes to Washington. The niece of General Sir John Asser. with Anna at Bermuda when she died. Was Mrs. Bliss had Bertie, Mrs. Dent and, at lunch. 190 June 9, 1936 Counsel See Special Counsel Co' pasture Mayor Mansfield assures Edward Hamlin city will take no action as to Tenean property before September and will further extend the term if necessary. 169 May 16, 1936 TateroftheRilcalled on us and showed us an extraordinary letter from Smith, Attorney for Hodsden, to Postmaster General Farley asking him to push the matter on purely political grounds, saying that if Hodsden were given the money Massachusetts would surely go Democratic and adding that Roosevelt in writing had agreed to consider it in a friendly spirit because C.S.H. and H.P.H. were interested in it! Farley's office forwarded this to the R.F.C. Taber asked about Hodsden and C.S.H. referred him to Edward Hamlin. Taber said it was doubtful whether the R.F.C. could or would advance money direct to individuals for such a purpose, but if it decided it could, he would talk with me furtlier about it. 12. Cow Pasture (Contld) C.S.H. explained to Taber about H.P.H.'s letter to Rooseve lt-a personal letter which should not have been quoted. May 30, 1956 181, 182 C.S.H. wrote Edward Hamlin deploring the reference to Roosevelt's letter. May 30, 1936 183 • Curtiss, Frederic See Federal Reserve Bank of Boston 13. Daiger Calls on C.S.H. and gives him a bottle of Spanish port wine. He said it had been decided to appoint Broderick to new Board. Dec. 24, 1955 57 Deaths Andrew, A.Pratt Beck, James M. Bowler, Mrs. Robert Howe, Louis Hoxton, F. R. A. Richmond Palmer, Mitchell June 2, 1956 April 12, 1956 Nov. 7, 1955 April 18, 1956 Dec. 20, 1955 May 11, 1956 187 150 27 54 168 Debt See Hamlin, Geo. P. Tappan, Robert 22, 35 Delano, Frederic A. Dines with us Dec. 21, 1935 54 Spoke very highly of C.S.H. to Thurston at dinner at Mrs. Burlings, and also spoke approvingly of Gov. Eccles. Jan. 28, 1956 109 We dined with, to meet Catherine Grant May.11, 1956 166 Democratic National Convention See Hamlin, H. P. 199 Deputy Governor Board redesignates, to March 1, 1956 Nov. 29, 1955 45 Devaluation See Treasury devaluation Eccles, Gov. 4 50, 31, 60 14. Diaries of C.S.H. C.S.H. writes Herbert Putman of the Congressional Library whether he wished to take my scrap books and diaries to keep them in Library for me. Jan. 23, 1956 98 Putnam replied he would be most happy to store them in Library. Jan. 26, 1956 100 Dimock, Mrs. Two Ohio ladies called on Bertie to devise some plan for taking control of the proposed Memorial building from Mrs. Dimock. Bertie told them of her plan to induce Mrs. Dimock to give up her present site which her society controls and accept a new cite from Washington University. Bertie explained that the society had spent $400,000 for foundation and $175,000 for archi— tect fees--a total of about $600,000 and had left $200,000. Bertie suggested calling up Dr. Marvin of Washington University and he came right over. As a result we all agreed to favor turning over the funds to the University, the necessary legal steps to be taken. June 15, 1936 192 At the meeting Mrs. Dimock yielded and it was voted unanimously to take over all funds to Washington University and further that Mrs. Dimock plans to be used if within a year she could raise additional money needed. June 16, 1936 195 Dinners C.S.H. dines at Mayflower to meet Pan American Institute of Georgraphy and History. Oct. 18, 1935 4 Janet Girardeau with C.S.H. Oct. 24, 1955 C.S.H. at Democratic Club with Edith Helm. Oct. 25, 1935 9 10 C.S.H. with Eleanor Connally. Oct. 28, 1955 17 With Chinese Ambassador to meet Mayor Mansfield of Boston. Nov. 18, 1955 54 With Mr. and Mrs. Houghton Thanksgiving noon dinner. Nov. 28, 1935 41 15. Dinners (Contld) In evening with Mrs. Alden. Nov. 28, 1933 41 Delano dines with us. Dec. 21, 1935 54 Took Christmas dinner with Mr. and Mrs. George McClellhn. Dec. 25, 1935 57 Bertie dines with Edith Helm. Present: Mrs. Roosevelt, Mrs. Morgenthau, Mrs. William Phillips, Mrs. Schneider. January 26, 1936 69 Edith Helm dined with us. January 25, 1936 101 Governor Ransom of the new Board dines with C.S.H. Feb. 8, 1936 125 We dined with Senator and Mrs. McNary at Mayflower Hotel. Feb. 9, 1936 127 We dined at White House in honor of the Speaker of the House. Feb. 11, 1936 128 We dined with Mr. and Mrs. George McClellan. Feb. 15, 1936 130 Layden Marvin, Diana, and Janet Fish dined with us. Feb. 22, 1936 133 H.P.H. takes part in a dialogue at dinner of Women's Democratic Club. Feb. 29, 1936 136 Mr. and Mrs. Wyatt dined with us. March 1, 1936 137 We dined with Delano and Catherine Grant. May 11, 1936 166 We gave dinner to Dr. Rones at Democratic Club. Present: Lynn Cooper and Miss Borreel June 28, 1936 199 16. idssenting vote C.S.H. dissents on vote that California Savings departments are not savings banks under Act of 1955. C.S.H. agreed with opinion of Counsel of Federal Reserve Bank of San Franci sco. March 12, 1956 47 10/ Domination, Treasury See reserve requirements Donkey banks See Women's National Democratic Club Dunn, Dr. See Ruffin, Dr. 160 - 200 17. Eccles, Gov. (Also Banking Law of 1935) In discussing Open Market Operations, Governor Eccles pointed out that the Treasury through its stabilization fund has much more control than the Federal Reserve Board. He said we must always C.S.H. thinks he meant that the Federal Reserve Board must always follow Treasury policies Oct. 21, 1955 4, 5 Glass told C.S.H. that the appointment of Stern as Class C director of Federal Reserve Bank of Philadelphia was a politic al plot of Governor Eccles and asked if Governor Eccles had not suggested it. C.S.H. told Governor Eccles who suggested sending Glass a copy of Thurston's report on Stern. C.S.H. proposed draft of letter to Glass and showed it to Thursto n, who, C.S.H. thinks, consulted with Governor Eccles, and Thursto n said it was all right and C.S.H. sent it. Oct. 28, 1955 17 Clayton told C.S.H. that Governor Eccles was not satisfied with C.S.H.'s recommendation as to Transamerica voting permit submitt ed to the Federal Reserve Board; that Governor Eccles wanted firm suggestions from C.S.H., which the Board could accept or reject; that Governor Eccles objected to the suggestion as to accurat e reports , etc., to stockholders as this would place too heavy a burden on our Board and too great responsibility. Nov. 1, 1955 20 Clayton said Governor Eccles would object to requirement that copies of reports to stockholders be send to the Federal Reserve Agent. Nov. 1, 1955 22 Thurston said Governor Eccles feared a change in voting permit regulations as to publishing statements which seemed to him good. Nov. 7, 1935 27 Governor Eccles at first claimed the voting permit regulat ions went too far, especially as to charge offs. We had a long discussion, the Board adopted the Gianini letter with slight changes. Nov. 8, 1935 27 18. Eccles, Gov. (Also Banking Law of 1935 ) - (Contld) Governor Eccles said let us try them on the dog Nov. 8, 1935 28 Governor Eccles was delighted with C.S.H.'s reference to increase of reserve requirements -- a ship made full sail in a dead calm--a storm is brewing--shall we take in sails now or wait till hurricane strikes ust Nov. 9, 1935 29 Governor Eccles reports to Board that the Treasury, while agreeing on principle with proposed increase in reserve requirements, felt we should delay such action for two or three months because the Budget was not ready; that a delicate intimation was then out that by February 1 the Board would be reorganized: Nov. 9, 1955 30 C.S.H. talks with Governor Eccles. Governor Eccles did not seem to appreciate how bitterly the American Bankers' Association is towards Roosevelt. C.S.H. advised Governor Eccles to explain this at once to Roosevelt. Nov. 28, 1935 54 American Bankers' Association defeated Bennett of Salt Lake City, an associate of Governor Eccles, for 2nd Vice President. Nov. 18, 1935 34 C.S.H. feels Governor Eccles'; address to American Bankers' Association was justified in view of the attacks on Roosevelt's Administration. Miller said Governor Eccles should have given his address at the beginning and should then have at once withdrawn. C.S.H. said this was beyond Governor Eccles' control. Nov. 18, 1935 37 Glass told C.S.H. the rumor that he had written C.S.H. to protest reappointment of Governor Eccles Was not true; that he had reference only to the appointment of Stern; that he had been asked if he should affirm confirmation of Governor Eccles but that he declined to discuss the matter. (In this letter to C.S.H. Glass did attack Governor Eccles bitterly.) March 7 Dec. 7, 1935 45 C.S.H. told Glass Governor Eccles confirmation was not mentioned in the letter. C.S.H. told Newton Baker that the Board had worked satisfactorily with Governor Eccles; that while Governor Eccles had stray 19. Eccles, Gov. (Also Banking Law of 1935) - (Contld) opinions, he seemed ready to change them if convinced that they were wrong, and seemed always free to consider criticisms. Baker listened in silence and C.S.H. is convinced he is opposed to Governor Eccles. Dec. 17, 1935 51 C.S.H. congratulated Governor Eccles as result of Open Market Conference. Dec. 20, 1935 53 ' C.S.H. heard Governor Eccles tell Thurston he had an engagement with Postmaster General Farley this noon: Dec. 20, 1935 55 There was not any meeting today as Roosevelt sent for Governor Eccles. Dec. 23, 1935 55 Governor Norris invited Governor Eccles and C.S.H. to stockholders meeting to be held two weeks from date. Governor Eccles wrote he probably could not go and turned over Governor Norris' letter to C.S.H. without comment. C.S.H. wrote Governor Norris, he saw no reason for not accepting Jan. 8, 1936 71 Szymczak told C.S.H. that Governor Eccles told him that if C.S.H. were not reappointed he would be given a position as advisor of the Board. C.S.H. at once said this weld not be satisfactory to him; that if Roosevelt did not consider him fit for reappointment that would end the matter; that if he had to go on the dole, it would be for the people of Mattapoisett and not for the Federal Reserve Board: Jan. 8, 1936 72, 73 Governor Eccles told Thurston that Roosevelt had not consulted him as to the new Board appointments since his trip to Hyde Park last summer. Jan. 10, 1936 75 Thurston said even Governor Eccles did not know who would be appointed. January 11, 1936 76 Szymczak says Governor Eccles saw Roosevelt at 11 A. M. Jan. 16, 1936 81 20. Fccles, Gov. (Also Banking Law of 1935) - (Cont'd) The Washington Post statement that Foster is to be on new Board disturbs C.S.H. for, if true, it would appear that Governor Eccles has deceived C.S.H. in spite of what Thurston said. C.S.H. scarcely believes this possible, however. Jan. A, 1936 85 If true, C.S.H. feels he ought to apologize to Glass for having said he would nominate Governor Eccles for Governor if. the Board was made independent. Jan. 19, 1936 85 C.S.H. feels that Governor Eccles hates Miller and Roosevelt hates Thomas and that the so-called age limit is a mere subterf uge to get them off the Board. Jan. 23, 1936 95 Governor Eccles was nominated by Roosevelt for a four year term. Jan. 21, 1936 105 Governor Eccles called on C.S.H. and said he would advise the new Board to give me a retainer of $12,000 per year. He said something about $1,000 per month but finally put it at $12,000 per year. He said also C.S.H. would have a stenographer attached to C.S.H.'s office, who, when not used by C.S.H. would do other Board work. He said further that C.S.H. could take all the leave he wished, and that he should be called "Special Counsel", to be called on for all questions of general law or banking policy. C.S.H. said he would consider it. After a talk with Morrill, C.S.H. told Governor Eccles that if he accepted the offered appointment, he would move into the Shoreham building at once. Governor Eccles said C.S.H. could move at once without waiting for approval by new Board. January 27, 1936 105, 106, 107 Delano spoke approvingly of Governor Eccles to Thurston. Jan. 28, 1936 109 C.S.H. writes Governor Eccles: January 27, 1956 21. Eccles, Gov. (Also Banking Law of 1935) - (Cont'd) Dear Mr. Chairman: I have just heard that the names have been sent into the Senate and I want to be among the first to congratulate you. In my opinion, you hold the foremost financial position in the world and I know that you will fill that important position with dignity, with firmness and power. You may be sure that you can always command me for any help, for I shall be as devoted to the Board as if I were still on it. With again my most sincere congratulations, believe me, Sincerely yours, C.S.H. Governor Eccles replied to this: January 29, 1956 My dear Governor Hamlin: Permit me to thank you for your note of January 27th, with reference to my appointment to the Board of Governors of the Federal Reserve System. I appreciate very much your expressions of confidence in me and the assurance of your continued help and loyalty. It is encouraging to know that my efforts are appreciated and that some one feels that they will be of assistance to others. With kindest personal regards, Sincerely yours, M. S. ECCLES 111, 112, 113 C.S.H. believes the Banking bill of 1955 was drawn by the Treasury in the interest of Eccles as Governor. Feb,- 1, 1956 119 Goldenweiser said that Governor Eccles was very fond of C.S.H. and would have been glad to have him reappointed, but that he hated Miller and distrusted Thomas; that if two of old Board were to be reappointed, Governor Eccles would have chosen C.S.H. and James; that Governor Eccles respected James although they differed radically in policy. Feb. 17, 1936 131 22. Eccles, Gov. (Also Banking Law of 1935) - (Cont'd) C.S.H. writes Governor Eccles as to his operation. March 5, 1936 139 C.S.R. wrote Governor Eccles asking if there was any objection to his helping Ray Stannard Baker in giving history of Federal Reserve Act in Volume 6, Life of Wilson, to see that he gave proper stress to Open Market powers. May 31, 1936 184 . (Later Governor Eccles replied he strongly favored this.) Governor Eccles writes a very fine letter to C.S.H. strongly favoring C.S.H. going away for the summer. June 9, 1936 189 -0- 23. -FFall River Trust Company Board considered condition of admission imposed on,--that it should no longer permit another company doing only a mortgage business to have an office with the trust company. Governor Young thought above condition wrong as the Massachusetts Superintendent of banking had ruled that the other company was not a bank. Oct. 1, 1935 C.S.H. considers above at Federal Reserve Bank of Boston. Oct. 7, 1935 Farley, Postmaster General C.S.H. heard Governor Eccles say he had an appointment with. C.S.H. fears this means political interference with Federal Reserve appointments: Dec. 20, 1935 53, 54 Thomas said Farley told a friend of his that the whole Federal Reserve Board should be eliminated. Jan. 10, 1936 73, 74 Federal Advisory Council Strongly favored selling Government securities as a guard against inflation. Goldenweiser favored increasing reserve requirements. Council claimed it was dangerous for Federal Reserve System to hold 2i billion Government bonds. Goldenweiser said chief earning assets of Bank of England were Government bonds. Dec. 18, 1935 52 Federal Reserve Bank of Boston See Fall River Trust Company 1, 3 Federal Reserve Bank of Philadelphia See Norris, Gov. Stern Federal Reserve Bank of Richmond Board referred to approval Governor Seay as President of Feb. 26, 1936 134 Federal Reserve Bank of San Francisco Board refused to approve Calkins as President C.S.H. feels pressure of Gianini is responsible or this. Feb. 26, 1936 134, 135 24. Federal Reserve Board Nothing new as to new Board. The suspense is intolerable. C.S.H. believes cannot be possible that changes are to be made without prior notification to Board. Gentlemenly conduct would seem to require this. Jan. 2, 1936 64 New York Times publishes a rumored list of new members: Governor Eccles, Szymczak, Preston, Delano, Harr (State Supt. Phila.), Broderick, Talley, Oliphant. Frederic Well in Star says rumor is that C.S.H., Miller and Szymczak will be reappointed. Jan. 6, 1936 71 Miller said Roosevelt wants to reorganize the whole Board, but influential pressure is being brought against them. Jan. 8, 1936 71 Thurston said Roosevelt had not consulted him as to the Board appointments. C.S.H. felt Thurston might he hedging against his July talk with C.S.H. Jan. 9, 1956 72 Szymczak told C.S.H. that Governor Eccles told him that if C.S.H. were not reappointed he would be appointed an adviser to the new Board. C.S.H. said this would not be satisfactory, for if not fit for the new Board, he would not be fit to advise it. He added that if he had to go on the dole it would be for the people of Mattapoisett and not for the Federal Reserve Board: Jan. 9, 1936 73 Senator Norris told President that Thomas would resign at once if he was not to be reappointed, and Roosevelt said not to resign. See Thomas Jan. 10, 1956 75 Kepplinger says the only ones sure of reappointment are Governor Eccles and Szymczak, and that Roosevelt was evidently treating the appointments as purely political. Jan. 11, 1936 77 Thurston said he hoped Roosevelt would reappoint the whole Board, that this was the best course, practically and politically. Jan. 11, 1936 78 25. Federal Reserve Board (0onted) Thurston asked C.S.H. if he had seen Roosevelt and C.S.H. said No. C.S.H. thought Thurston seemed to think Roosevelt had summoned to tell him he would not reappoint him. Jan. 15, 1955 79, 80 Thurston said he still believed C.S.H. was all right, but he thought it better to put the worst side to C.S.H. so that the result would be all the pleasanter. Jan. 15, 1956 80 Thurston said Glass had seen Roosevelt this morning. Jan. 15, 1936 80 Thurston thinks the appointments will be made next week. Jan. 16, 1936 81 Thurston's manner makes C.S.H. believe he - C.S.H. - is slated for reappointment for if Thurston knew he was not to be appointed his manner would have been different. Jan. 16, 1936 81, 82 The Associated Press announces a tenative selection,--Eccles, Szymczak, Broderick, Ransom, McKee, William N. Foster and one more a dirt farmer--not announced. While the announcement was not official, Foster gave a long interview to show how fit he was for the job although he said he had not yet been informed officially. Jan. 19, 1936 85, 84 Thurston told C.S.H. that Roosevelt wanted to drop several members and that the only way he could do it would be to fix an age limit, say 65 years, which necessarily excluded C.S.H. See Thurston Jan. 21, 1936 85 Thurston said Foster was not on the slate and would not be appointed. Jan. 22, 1936 Roosevelt tells C.S.H. and Miller he cannot reappoint them. See Roosevelt Jan. 23, 1936 93 Roosevelt nominates new Board-Morrison, Texas 2 years It Eccles, Utah 4 It Ransom, Georgia 6 McKee, Pennsylvania 8 Szymczak, Illinois 12 Broderick, New York 14 Jan. 27, 1936 105 26. Federal Reserve Board (Contld) Senate Sub-Committee reports favorably. Jan. 27, 1936 106 Board opened bids for new building. Jan. 30, 1936 110 Terms of old Board expire. Jan. 31, 1956 113 Anson Phelps Stokes sends C.S.H. a delightful letter. Feb. 1, 1936 114 Comptroller O'Connor writes splendid letter to C.S.H. Jan. 31, 1936 114 See Comptroller See also Baker, Newton Owen, Ex. Sen. Hale, Rachel Peyton, F.R..A. Gillett, Mrs. Young, Gov. Rodgers, Mrs. New Board receives Commissions from Roosevelt Feb. 3, 1936 121 Board unanimously appoints C.S.H. as Special Counsel at 4112,000 per year; stipulated that C.S.H. was to be absolutely independent of the regular legal staff, and to report on all matters submitted to him by the Board through Morrill, Secretary. Feb. Z, 1956 122 Board announced that C.S.H. had consented to ac Counsel. Feb. 8, 1936 as Special 127 McKee told C.S.H. the entire new Board were to call on C.S.H. to pay their respects, but he was ill at home. Feb. 10, 1936 127, 128 See Eccles, Gov. Roosevelt Special Counsel Thurston Broderick Szymczak Ransom McKee Miller Thomas 27. Federal Reserve Building Roosevelt said he had advised Governor Eccles to have Miller appointed as agent to care for construction of. Jan. 23, 1936 94 Board opened the bids for, Jan. 28, 1936 109 Board awarded contract for the new building to the Fuller Company. The cost was about 3i millions. Jan. 30, 1936 110 Federal Reserve Bulletin Gives name of C.S.H. as Special Counsel just after Board names and ahead of all others on staff. April, 1936 157 Fifty— dollar dinner See Roosevelt Jan. 8, 1936 70 Fish, Janet Lunches with C.S.H. at Cosmos Club Oct. 13, 1935 Dines with C.S.H. Nov. 2, 1935 24 Dec. 29, 1935 60 Calls on us. fie drive to dinner with Mr. and Mrs. McClellan. Feb. 15, 1936 130 Dines with us and Langdon Marvin. Feb. 22, 1936 133 Lunches with us to meet Dr. Rones. April 26, 1936 156, 157 Calls on us. Much impressed with Dr. Rones who asked her to get a Nurse to act as office woman for him. May 3, 1936 162 Calls on us. May 18, 1936 170 Fletcher Republican National Committeeman H.P.H. Sends boy dressed up like a donkey to house of. Feb. 29, 1936 136 28. Foster, C. J. In interview modestly accepts rumor of his appointment on Federal Reserve Board, and at great length gives reasons why such appointment is well deserved. Jan. 19, 1936 83 Washington Post said Foster is "a Harvard Professor who likes a conservative label because it separates him from the Huey Long, Upton Sinclair and Dr. Townsend". Jan. 19, 1936 84 Thurston said Senator Walsh and Coolidge had endorsed Foster and that he had been seriously considered but that there was great opposition from North Carolina Senators and from Senators Shafford and Garry. Thurston also said he would not be appointed, that he found an article in Atlantic Monthly written by Catchings and Fostor attacking our Board for interfering in the stock gambles of 1929. Jan. 28, 1936 108, 109 Fuller, Miss. See Orcutt Roosevelt 32 29. -GGiannini See Transamerica Voting permits 27, 37, 38, 40, 62, 135, 161 Girardeau, Janet Dines with C.S.H. October 24, 1935 9 Mother of, writes C.S.H. thaziking him for putting her up at Cosmos Club. Nov. 2, 1935 26 Gillett, Mrs. Writes C.S.H. a charming letter on his retirement. Feb. 4, 1936 122 Glass, Senator Wall Street Journal quotes from Stern's testimony calling Senator Glass a tool of Wall Street. Oct. 22, 1935 6 C.S.H. fears Glass will be very angry but he, C.S.H, did not know that Stern had attacked Glass. Thurston's abstract did not mention this. Oct. 22, 1935 9 Called up C.S.H. and asked for an explanation of Stern's appointment as Class C director, Philadelphia, saying he was a scoundrel and a liar, and that his appointment was a disgrace to the Federal Reserve System. .C.SH. told him briefly. Glass said it was a political plot of Governor Eccles and asked if Governor Eccles had not suggested it. C.S.H. Said he would look over his records and explain the matter fully to Glass. C.S.H. said, however, his investigation had satisfied him that Stern was fit for the place, in spite of Glass' opposition to his extremely radical views. Oct. 28, 1935 17 C.S.H. spoke to Governor Eccles who suggested sending to Glass, Thurston's report on Stern. C.S.H. prepared a draft of a letter to Glass and showed it to Thurston, who, C.S.H. believes consulted with Governor Eccles, and later made some slight suggestions. 30. C.S.H. also showed it to Miller and Thomas who both approved it. Oct. 28, 1935 17 C.S.H. sends letter to Glass with a copy of Thurston's report on Stern. Oct. 30, 1935 19 Glass called up C.S.H. and said he had read in Washington Herald that C.S.H. told the correspondent that Glass had sent him a letter protesting against appointment of Governor Eccies. Glass said his letter was confined to Stern, and that the same correspondent asked him if he intended to fight Governor Eccles' confirmation, but he told him he declined to discuss the matter. C.S.H. told Glass that Governor Eccles' confirmation was not mentioned at the interview; that C.S.H. never even admitted that Glass had sent him a letter, but simply said that all correspondence regarding Board matters was filed and could be seen only on order of the Board. C.S.H. told Glass the reporter had evidently read Glass's letter and C.S.H.'s reply. Glass said the reporter claimed to have seen the letters in New York. C.S.H. said this was palpably false and intimated that someone in Glass' office. Glass denied this, but C.S.H. asked him to look into this. Glass' manner to C.S.H. was perfectly friendly, and he pressed C.S.R. to come up some night and have a good talk with him. C.S.H. believes Glass is worried about this letter, and that his opposition to Governor Eccles may be weakening. Dec. 7, 1935 46, 47 The morning papers said that Glass lunched with Roosevelt yesterday and came out in evident good humor. Perhaps he has agreed to drop his opposition to Governor Eccles: Jan. 1, 1936 62 Miller told Board he was to see Glass that afternoon. He later told C.S.H. he had made an appointment with Glass and C.S.H. asked him to call him up after the interview, if anything of interest transpired and he said he would. He did not call up C.S.H. Jan. 4, 1936 67 31. C.S.H. at 5 P.M. called up Glass and congratulated him on his birthday. He was pleasant and affable and seemed in fine spirits. He said nothing about Board matters. C.S.H. explained to him the maximum interest regulation, and said he agreed with Glass that the regulation did not carry out the intent of Congress, but that the Board was working to find what could be done to carry out that intent; that it seemed impossible to carry out that intent. C.S.H. explained to Glass that the interest votes were not a subject of primary jurisdiction given to the Board, and that Wyatt advised us that the proposed regulation was the only one which would satisfy the intent of Congress; that he, therefore, accepted this but later asked Wyatt for a written opinion, which Wyatt gave his; that he and Thomas studied it and prepared a memorandum in opposition; that this was before Glass sent his letter to Morrill opposing the regulation. Glass said members of the Board were giving out statements about them. C.S.H. said he could not believe this. Glass said Thurston might have given them out. C.S.H. said he was sure that Thurston had not done so. Glass said he would be glad to take this up later with C.S.H. at the proper time. C.S.H. also wrote Glass a note on his birthday, and H.P.H. put in atrick butterfly for his grandchildren. C.S.H. is glad that he and Glass have apparently made up all differences. At the interview Glass sent his love to C.S.H. believes from Glass' manner that Roosevelt did not tell Glass he intended to clean out the whole Board, he rather draws inference that Roosevelt will reappoint the whole Board. C.S.H. cannot help feeling that Glass will not press his oppo— sition to Governor Eccles. January 4, 1936 67,68,69 Thurston said Glass had seen Roosevlet this A.M. at 9:30. C.S.H. asked Thurston whether in case Glass and Roosevelt agreed, the appointments would not be made today. Thurston said, Not before next week. January 15, 1936 81 32. Thurston said Glass had made several suggestions to Roosevelt based upon an age limit of 65 years. This amazes C.S.H. for Glass is 78 years old and is seeking another term: Jan. 21, 1936 86 I I' .• • Thurston said Glass would fight Thomas to the death! Jan. 21, 1936 87 C.S.H. told Thurston that prior to any offer to him of position of Special Counsel, Glass should be consulted. Thurston said most certainly. Jan. 22, 1936 91 C.S.H. asked Thurston why Glass did not fight for Miller, and Thurston said that from what he heard he would fight for C.S.H. rather than for Miller. Jan. 22, 1936 91 Thurston said Governor Eccles was to see Glass and get his approval of appointment of C.S.H. as Special Counsel. Jan. 28, 1936 108 Szymczak said Roosevelt agreed that see Glass as to Vice Governor and Governor Eccles that Broderick be Jan. Governor Eccles should that Glass suggested to named. 28, 1936 110 Mrs. Keating told K.P.H. that Mrs. Bannister, sister of Glass, told her in confidence that Glass was much relieved at C.S.H.'s appointment as Special Counsel. Feb. 7, 1936 124 Glasses, Eye See Operation Gold C.S.H. believes Roosevelt is angry with Board because it resented his efforts to seize Federal Reserve gold after devaluation and retained Newton D. Baker to advise Board. Feb. 1, 1936 118 Gold tea set Bertie sold the gold tea set given her by her Father, to pyre and Taylor, 1207 Connecticut Ave., Washington, for 4800. The original cost was about $1,400. This firm said she could sell it to the mint at 10% Commission to them, or they would buy it for $800. Nov. 25, 1935 39 33. Goldenweiser, Dr. Spoke for 3/4 of a hour befor Open Market Committee. He preferred credit control through Reserves rather than by sale of Government securities. Dec. 17, 1935 Told Federal Advisory Counsel that the Federal Reserve System had over 7 billions of gold, equivalent to 100% in all Federal Reserve Notes and 60% against deposits, a highly liquid condition. He also pointed out that the earning assets of the Bank of England consisted largely of Government bonds: Dec. 18, 1936 52,53 Told C.S.H. that Governor Eccles was very fond of him and would have been glad to have had him reappointed, but that he hated Miller and distrusted Thomas; that of two of old Board were to be reappointed, Governor Eccles would have chosen C.S.H. and James; that respected James although radically opposed to his views. Feb. 20, 1936 131 Goldenweiser said he was sure that Roosevelt saw through Miller and was not eager to reappoint him. Feb. 20, 1936 131 Goldenweiser thought this new Board was a very fair one although Morrison was a Mud". Feb. 20, 1936 131 Gordon Cummings, Mrs. Writes H.PH. a very nice note on C.S.H.'s retirement from Board. Jan. 27, 1936 107 Goshorn, Miss Marion Paulger assigned, to act as Secretary and Stenographer to C.S.H. as Special Counsel with the understanding that she should devote her spare time, if any, to Paulger's Division. Feb. Sp 1936 121 Government boycott See American Bankers' Association Governors' Conference See Open Market Operations 55,56 4. Grant, Catherine Wrote H.P.H. that on November 4, she lunched with Mrs. William Danes Arcott, wife of a Boston literary man, and that at the lunch Mrs. Orcott spoke of a trip to Canada of some American golfers, including Mr. Orcott, and of a dinner given by the Canadians. Mrs. Orcott said that at this dinner the toast to the King was given, all standing; that then this presiding officer, a Canadian, gave a toast to the Presidency of the U.S. (not the President); that later the presiding officer explained that the American guests had told him they would not drink to the health of Rooseveltl She said that among those present at the lunch were: Mrs. Fuller, wife of Ex-Governor Fuller and Mrs. Larz Anderson. Nov. 9, 1935 31,32 Writes C.S.H.: "I shall never love Franklin in the same way again, if he does not reappoint you." Dec. 30, 1935 61,62 C.S.H. writes. Jan. 2, 1936 Dined with Fred Delano to meet. May 11, 1936 64 166 Ground hog Sees his shadow Feb. 2, 1936 120 Guffy, Senator Szymczak says, is trying to have the Penna. Superintendent of banking put on new Federal Reserve Board. Dec. 20, 1935 55 55. -HHale, Rachel Cameron Writes to C.S.H.: Jan. 31, 1956 Dear Charley: This is a letter of condolence really to the Federal Reserve Board, only I don't know them well enough to write to, so I have to address myself to you. How can they get along without you? One who has been with them through early days and must know the ropes so thoroughly. I would have gone to see you both, but have been housed for a week. I am With best wishes, whatever lies for your future, Yours always sincerely, RACHEL CAMERON HALE 116 H.P.H. lunches with. Feb. 11, 1936 128,130 Hamlin, Anna Birthday Oct. 26, 1955 10 Yesterday was the eleventh anniversary of Anna's death. We had a special service today at St. Agnes Church, Father Anderson. April 27, Monday, 1936 158 See Helen Costin Hamlin, C. S. 5, 29, 41, 42, 47, 58, 59, 65, 70, 71, 73, 101, 102, 104, 106, 109, 111, 112, 115, 117, 121, 122, 123, 124, 126, 127, 128, 130, 131, 134 Roosevelt's letter to C.S.H. See Roosevelt - 96, 97 C.S.H.'s reply to Roosevelt See Roosevelt 99 See also Baker, Newton B. Comptroller of the Currency Federal Reserve Bank of Boston Federal Reserve Board Glass 36. Hamlin, C. S. (Contld) Hale, Rachel Hamlin, Edward Hamlin, George Senate Munitions Inquiry Special Counsel Miller Szymczak Tappan, Robert Thomas Thurston Voting permits Cataract Operation The hard work done by the Federal Reserve Board in clearing up all records prior to the coming in of the new Board affected C.S.H.'s eyes most seriously. During the week ended February 15, C.S.H. went to Dr. Morrison who found that his eyes had greatly fallen off. For many months I had not been able to read either books or Board letters except with a magnifying glass, and I had not been able to read at all for over a year with my right eye. Dr. Morrison said the time had now come when I could have an operation. I asked him on which eye. He said it was about 50 - 50; that my right bye was still better than my left eye as to long distance and at first he was inclined to operate on my left eye, which, he said would help my right eye. I said my right eye I had always considered my worst eye, but apparently he did not agree with me. Finally he said the cataract was more pronounced in my right eye, but the sight in my left eye was more cloudy and obscure. He said also that there were scars on my cornea in my right eye, but he felt notwithstanding this an operation could be successfully be performed. He finally chose my right eye for an operation. I then asked him if he would ask Dr. Wilmer to examine my eyes and give an advisory opinion, which he agreed to do. Feb. 15, 1956 130 Calls up C.S.H. and asks him to call at 3 P.M. for a further check up before examination by Dr. Wilmer. Made another examination and said he saw absolutely no reason why an operation in my right eye should not be successful, - that there was no indication to the contr4ry, and that he would make an appointment with Dr. Wilmer at once. Feb. 21, 1936 132 37. Hamlin, C. S. (Contld) Cataract Operation - (Contld) Dr. Wilmer and Dr. Rones examined my eyes for nearly two hours. He finally said he saw no reason to doubt but that an operation on my right eye would be successful; that there were complications, such as scars on the corne a, but this did not disturb him as I could look over or under the scars after the operation. He said the cataract was worse in my right eye than in my left and that the haziness was worse in my left eye, but that the operation should be in my right eye and that the chances of success were 97 out of 100. March 3, 1956, Tuesday 137 C.S.H. asked Dr. Wilmer if he would not be willi ng to do the operation himself as C.S.H. was an old patient of 40 years' standing. Dr. Wilmer said he could not do this unless Dr. Morrison consented. C.S.H. asked if he would do it if Dr. Morrison consented. Dr. Wilmer said in such case he would be delighted to operate, not so much as a surge on but as a very old friend. C.S.H. expressed his gratitude and said he could not afford to pay him what his services were worth, as he considered him the foremost oculist in the world, and like most other people, his resources were greatly strai ned. Dr. Wilmer said,"Don't think of this, it will be a pleasure and honor to serve one who is not only a very valued friend, but who has rendered distinguished service to his country." March 1, 1956 138 Dr. Wilmer spoke at length about the marriage of his daughter to Russel Sard. March 1, 1936 138 C.S.H. then wrote a letter to Dr. Morrison as follows:March 4, 1936 114y dear Dr. Morrison: I was examined yesterday by Dr. Wilmer and his assistant, the examination lasting for over two hours. Dr. Wilmer said that he would at once report to you fully as to the result. I gather from what he said, or rather, as a layman, I thought I gathered, that there were some complications but that he felt reasonably confident that the operation would be completely successful. 38. Hamlin, C. S. (Cont'd) Cataract Operation (Contld) "And now I am going to ask a great favor of you. Would you be willing to invite Dr. Vvilmer to perform the operation in collaboration, of course, with you? I can scarcely tell you the confidence I have in your judgment and skill but I have perhaps told you I have known Dr. Wilmer intimately, both as a personal friend and professional advisor, for over forty years and I have a sentimental feeling that I should like to have this old friend, the most eminent surgeon in the world in diseases of the eye, take a prominent part in restoring me to health, which restoration is sadly needed. "I can never forget the fact that his marvelous skill restored my nephew, who was nearly blind from gas poisoning, to perfect health some years ago. Perhaps he may show you a scientific article he wrote on this case which excited great professional interest all over the world. In view of my devoted friendship with him, I feel certain you will be willing to grant my request and ask him to perform the operation in collaboration with you. "May I add that your compliance with this suggestion will simply confirm my high opinion of your profes sional skill and judgment. Believe me, Dr. Edward L. Morrison 1835 I Street, N.W. Washington, D. C. Sincerely yours, C.S. HAMLIN " To this letter, Dr. Morrison at once replie d that he would be glad to accede to C.S.H.'s request, and C.S.H. wrote Dr. Wilmer inclosing a copy of his letter to Dr. Morrison and his reply. Dr. Wilmer replied: March 5, 1936 "Dear Mr. Hamlin: Many thanks for your very kind letter and the perfect one you sent to Dr. Morrison. I do not see how it could be better expressed. With kindest regards, believe me, Very sincerely yours, W. H. WILMER" 39. Hamlin, C. S. (Cont'd) Cataract Operation (Cont'd) C.S.H. had a decided impression that Dr. Wilmer treated him as an old friend rather than as a patient, end that any question of remuneration for his services was unimportant and irrelevant. C.S.H. went over with Dr. Wilmer his financial affairs in a most complete manner and feels satisfied that Dr. Wilmer's charges will be mostreasonable. Dr. Wilmer suggested next Tuesday for the preliminary operati on. 138, 139 C.S.H. wrote to Governor Eccles, Szymczak, Ransom, Broderick, MCKee and Thurston about his operation. March 5, 1936 139 C.S.H. had a nice talk with Thurston over the telephone as to his operation. March 5, 1936 139 At 3 P.M. C.S.H. goes to Ere and Ear Hospital. He had dinner, then went to bed and his eyes were dressed, eyelashes cut, and all germs carefully washed out and eye banaged. March 9, 1936, Monday 140 March 10, Tuesday At 5 P.M. C.S.H. was wheeled down to operation room. Putting in drops, etc. took 20 minutes, and then Dr. Wilmer performed immediately the operation, taking only 20 seconds . No pain but merely a slight stinging sensation. Both eyes were banaged and a large mask put over my face. I was put on a stretcher and taken back to my room, after which Dr. Puffin called and gave me a pill. Towards evening I fell asleep but awoke about 10 P.M. with a fearful nightmare and could not remember where I was. Finally I recalled what had happened and where I was and rang for my night nurse, but she had gone down to her supper. After trying several times another nurse came in. My night nurse never should have left me alone. 1 In my nightmare, I thought I heard a voice saying--"Great God: You are blind:" To my mind, phen a patient has been operated on, and has a night nurse, the patient should never be left alone on the first night after the operation. This was what happened to me at Carry Hill hospital in 19201 40. Hamlin, C. S. (Contld) Cataract Operation (Contld) March 11, Wednesday Dr. Wilmer came in at 5 P.M. looked at my eye and said it was doing finely and that I had proved an ideal patient during the operation. I told him I could not stand having both eyes banaged and he finally bandaged my right eye, put the mask on it, and then bandaged my left eye separately, leaving it so I could lift up the bandage in an emergency to see where I was. This relieved me greatly and relieved the most disagreeable part of the convalesence. Dr. Wilmer, before leaving, placed his hand on my head and said--"Old man, you are all right!" Then in a subdued tone he said, "Good Night" and walked out of the room. March 12, Thursday Dr. Wilmer, while dressing, suddenly dropped dead'. The funeral was Saturday, March 14, but H.P.H. did not tell me of his death until Sunday after the funeral. It was a terrible shock. I feel I have lost a most valued friend. 142 March 18 Received letter from Bishop Lawrence in answer to one from C.S.H. discribing his operation. COPY Hay-Adams House Washington, D. C. March 17, 1936 "Dear Bishop Lawrence: My first letter in my convalescence was to my sister Harriet and this letter to you is the second. "I have gone through the preliminary operation for cataract, they say, with great success. In the first operatior they do something, I do not know what it is, to cut off all nutrition from the lens and then the lens begin to wither and become ripe, as they 41. Hamlin, C. S. (Cont/d) Cataract Operation (Contld) Bishop Lawrence letter continued say, so that it can be easily taken out. "There was really a tragedy connected with all this for Dr. Wilmer, a very old frien d of. forty years, was appealed to by me to do this opera tion, and he said he would be most happy to do it as he looked on me rather as an old friend than a patient. He was so kind and sympathetic durin g the operation, which, you will be surprised to know , took him just twenty seconds to do. Of course, the anesthetizing took a considerably longer period. hhen my operation was over, I said to him, "Dr. Wilme r, I feel very disappointed", and he said, "Why is this?" I answered, "I thought you were going to do somet hing to me and apparently you haven't touched me", and he laughed. This was on Tuesday. On Wednesday late in the afternoon, he came into the room again dressed in his white coat and dressed my wound and then he put his hand on my forehead, as if he were giving me a blessing, and said,'Old man, you are all right. Goodn ight", and then he left the room and early the next morni ng dropped dead. Bertie, however, did not tell me this until yesterday, Sunday, and on the whole, I am glad she did not. wondered why he did not drop in on me but I supposed that his assistant could do all that was neede d, so I was not suspicious at all. "Tomorrow all my bandages are to be removed and I shall have simply colored glasses. I expect to leave the hospital Wednesday and then must wait two or three weeks for the final operation. I have decided to have Dr. Wilmer's assistant, Dr. Rones, perform this. He was with Dr. Wilmer for eleven years and everybody speaks of him as one of the most brilliant operators in this part of the country, so I have perfe ct confidence that he will carry me through all right . "Bertie, with her usual sense of humor, has kept me feeling in fine shape. I have an appetite like an ox, which I suppose, is a good sign. If I am not allowed all the food I want, I bear it with ignom iny. Iliertie joins me in best love. Affectionately yours, The Right-Rev. Wm. Lawrence 122 Commonwealth Ave. Boston, Mass. C.S.H." 42. Hamlin, C. S. (Contld) Cataract Operation (Contld) Bishop Lawrence's reply 122 Commonwealth Ave. Boston COPY March 18, 1936 "My dear CharlesYour letter hit me at three points. It was such a surprise. That you should in such a crisis write me after you had written your sister touched me deeply; it was a token of warm friendship and I thank you. "Altho' I knew that your eyes were in poor condition I had no idea that you were so near an operation for the removal of cataract. Grateful am I that you have come through it so successfully. "What a man you are and how happy in your surgery. Don't you recall that in your prostate operation when it was almost over you asked the surgeon when he was going to begin? "What a wonderful change has come over the methods of the operation: "Only twenty seconds". "I hope and am confident that all will go well to the finish. Write me or ask Bertie to do so. "As to Dr. Wilmer: "A tragedy:" Yes, to those who are left and whome he would have helped. But what a life of beneficium was behind him: "There are skilled Surgeons and there are surgeons who are friends of everyone who has heard of them. Dr. Wilmer was such an one. I knew him only slightly and yet I thought of him as a friendly friend and thousands felt the same. The news of his death came to me with a vividness and regret that I would feel for the death of a relative whom I have seen everyday. "You are a fortunate man to have the memory that upon you he poured what was his best and last "I am going to pass your letter on to two of his patients to read. My Sister, Mrs. Heminway, and 43. Hamlin, C. S. (Cont'd) Cataract Operation (Cont/d) bishop Lawrence's reply (Contld) my son-in-law, Harold Peabody. My best love to Bertie. She must have had some anxious hours and some happy ones. "With wishes and prayers that you may have years of usefulness and of happy work. Yours affectionately, WILLIAM LAWRENCE" Letter to Bishop Lawrence - COPY Eye & Ear Hospital Washington, D. C. April 8, 1936 "My dear Bishop Lawrence: Mrs. Hemenway came to see me ten days ago just before my departure for the final operation. We had a delightful call of nearly an hour and the only criticism I could make was that she should have stayed at least two or three hours. She said that she wrote Dr. Wilmer for an appointment on the day of his death. I strongly urged her to go to Dr. Rones who worked with Dr. Wilmer in Baltimore for eleven years and has been associated with him in Washington for the last two or three years. I was strongly advised to have him continue the operation in Dr. Wilmer's place and friends of mine, unknown to me, made careful inquiries about him and the report was unanimous that he was a most brilliant operator and thoroughly cognizant with Dr. Wilmer's methods. I feel that Mrs. Hemenway could do no better than to go to him as I firmly believe that Dr. Wilmer's mantle has settled on his shoulders. "I remember writing you about my first operation. There was then an intermission of ten days and I was told to go back and do anything I pleased and enjoy myself for at least ten days more before the final operation. This interval, however, to me was very gloomy as I could not help thinking of what was coming. Well, to make a long story short, a week ago last Monday, I returned to the hospital and Monday evening they did various things to me, the most disagreeable of which was that they cut off my eyelashes. However, they assured me that they 44. Hamlin, C. S. (Contld) Cataract Operation (Cont'd) Letter to Bishop Lawrence - (Contld) would grow out again and that comforted me. The next day, Tuesday, I was operated on by Dr. Rones. The operation was somewhat longer than the first one but I think the actual operating time was not over five or six minutes and I suffered no pain. I had some trouble sleeping the first night but that soon passed away and now I am sleeping comfortably without any drugs and if all goes well, I expect to leave the hospital this week, Saturday. "I am really more or less of a coward as regards pain and even as a child I dreaded the doctors. When the time came, however, to go down to the operating room, I quietly repeated to myself the Twenty-Third Pflfsalm,-"Yea, though I go through the valley of death .. ." and the march to the operating room seemed more like a march of monks to a religious festival - all element of fear having vanished. “A humorous incident occurred just before they began to operate - my nose itched violently and I told them the operation could not go on unless I could scratch my nose, and they said it was absolutely forbidden, but two doctors rubbed my nose and finally satisfied me, whereupon the operation went on. Dr. Rones said I went through it splendidly without even a whimper. As a matter of fact, towards the end of the operation, I asked him how things were going along and he said, "The operation is complete", and surprised me greatly. He then said, "You have gone through this ordeal in a magnificient way, but I don't mind telling you now that I thought you were going to be a very poor patient because you have asked me from time to time so many questions about the whole matter." I said, "Doctor, when you know me better, you will realize that I have a very inquisitive mind." He then said, "Good Lordt do you think we have only now discovered thist1" Then all the doctors laughed and I joined them. It seems strange to be sitting here now talking the thing over as if we were in a club smoking after a dinner. After a couple of days, I was comfortably convalescent and each day felt stronger, and if everything goes well, I hope to leave Saturday of this week and spend a quiet Easter at our apartment house. "The operation was pronounced a complete success. Of course, I have not tried to use my eye up to the present time for it is filled with drops tending to dilate the pupil. I had a striking piece of evidence, however, as to the use of my eye. In the first operation an electric light was 45. Hamlin, C. S. (Cont'd) Cataract Operation (Cont'd) Letter to Bishop Lawrence - (Cont'd) held almost in my eye but I could not see it - I saw the glow, of course, but nothing more. In the second operation the same procedure was followed and I could see nothing but this glow. Suddenly, however, when the operation was nearly completed, it flashed over . me that I was seeing for I could see the electric light and the fingers of the man holding it before my eyes. This was a message for I understood at once - the cataract had been removed and the light of heaven was coming through on to my retina and optic nerve. When I realized this, I felt as did Xenophon and his ten thous and followers in their weary march toward the sea. When at last they caught sight of it they cried in exultation "Thalassal Thalassat The Seat The Seat" So I said to myself - "Thalassal Thalassal The Lightt The Light1" "Whenever I go back, however, I must have a dark lens on my eye for at least two weeks before they will attempt to adjust eye glasses to it for it is necessary to wait until it is absolutely solidly heale d. However, I can wait that time patiently. "Bertie's sense of humor has never, and I trust will never, leave her. I told her the other day that it was at least two years since I could see her face distinctly. She promptly told the doctor that she wished three days' notice before I was permitted to use my glasses for she wished to go to Emile, the hair dresser, and have her face lifte d, eyebrows plucked, hair dyed, and everything else done in a vain attempt to make herself look as she did two years ago. However, I told her this was not necessary as I was sure that she looks younger than ever. In fact, to me she is a kind of Peter Pan - she will never grow old. "I have dictated this letter hurriedly but will not be permitted to correct it, so you will understand its being marked "dictated, but not signed". Bertie joins in love to you. Affectionately, C. S. HAMLIN The Right -Reverend Bishop Lawrence 122 Commonwealth Avenue Boston, Mass. Dictated, but not signed." 46. Hamlin, C. S. (Canted) Cataract Operation (Canted) Bishop Lawrence's reply - Copy 122 COMMONWEALTH AVENUE BOSTON Easter Eve"My dear Charles Congratulation at and again Congratulation at and A Happy Easter to your ever young Bridet "How grateful you must be that what you have so long dreaded is now happily behind you. Somehow the removal of a cataract seems to me the great miracle of surgeryt And the methods of the last few years have transformed the process of it and 50 years ago when my father underwent the operation at the hands of Hasket Norby. "And what a condrous exponent of sumgery Dr. Wilmer was. His character as well as his hands seemed to have a healing power. "I have forwarded your letter to Mrs. Heminway who will be much interested. "Well, my dear Bertie, does it not seem good to have a husband who can now see your beauties as well as hear your voice? "It is lovely to think of you both in quiet happiness. "Best love and again a Happy Easter. Your affectionate friend WILLIAM LAWRENCE 47. Hamlin, C. S. (Contld) Cataract Operation (Contld) The essential dates of the operation are: March 9, Monday Went to hospital March 10, Tuesday - First operation by Dr. Wilmer March 12, Thursday - Dr. Wilmer died March 14, Saturday - Dr. Wilmer's funeral March 18, Wednesday- Left hospital March 30, Monday Went back to hospital March 31, Tuesday Second operation, Dr. Rones April 11, 001/. Left hospital May 4, Monday Entered hospital again May 5, Needled by Dr. Rones May 8, Left hospital March 21, Saturday C.S.H. called on Dr. Rones who agreed to perform the second operation. He said my eyes were in splendid condition and that if he had known this before the first operation, he could have done everything in one operation. 144 March 23 Went to Dr. Rones who said everything was fine. Fixed next Tuesday for final operation. He said he would bind up my two eyes separately after the operation. March 30, Monday Went to hospital. March 31, Tuesday Second ope -ation. , Had no pain but cutting the eye ball was somewhat irritating. Took only about five minutes. At end of operation while on operating table, C.S.H. asked many questions and fina1ly said--"You will think me of a 48. Hamlin, C. S. (Contld) Cataract Operation (Contid) very analytical nature when you know me better." Dr. Hones quickly replied, "My Gods Do you think I have just found that outt" Dr. Ruffin insisted on giving me Insulin before my second operation, as my blood pressure was over 200 and he feared the operation might increase my blood sugar. I did not want this done, as Dr. Joslin some days before in answer to my letter asking if my blood sugar should not be burned out by Insulin before the operation, had replied to go ahead without Insulin. My blood sugar before the operation was only a little over normal,— 15.5. So far as I could observe the Insulin had little effect as the blood sugar remained about 15.5. 146, 147 My second operation was March 51, Tuesday. Two days before this my blood sugar was 14.4, blood pressure 170, and blood count 75. 147 As to details of second operation, see my letter to Bishop Lawrence quoted on page 45. Many beautiful flowers were sent me, including flowers from President and Mrs. Roosevelt. April 11, Saturday C.S.H. left the hospital April 12 Dr. Rones called and said the capsule over my lens had not entirely absorbed, and if it did not finally absorb, it would be necessary to needle my eye. He said 60% of all successful operations require subsequent needling; that it was not serious, in fact hardly an operation at all; that only the right eye need be bandaged and that C.S.H. could leave the hospital in three or four days. 148, 149 April 15, Wednesday Dr. Hones tested C.S.H.Is eye. C.S.H. could barely see the large letter A and nothing beneath. C.S.H. felt Dr. Bones was disappointed at this result. Later C.S.H. got Bertie to call him up and put following questions: 49. Hamlin, C. S. (Cont'd) Cataract Operation (Contld) 1. Are you satisfied with what C.S.H. could see test? on the 2. Should not his vision been more distinct? Dr. Rones answered that the vision was better than he expected. In answer to a third question: "Do you still think his chances are good for restoration of normal sight?" Dr. Rones said that no Doctor can predict that recovery will be perfect, but that he had every reason to believe that everything was splendid and that he could not understand how C.S.H. got the idea that he was discouraged. C.S.H. later telephoned and Dr. Rones said he could now sleep on his right side. 151 April 18 Wrote Sophie Boreel enclosing a copy of my letter to Bishop Lawrence describing nor second operation. 152 My eyes were very sticky and Dr. Rones prescribed some fine drops. He said my eyes were in fine condition ;that much of the capsule had been absorbed, but there remained a minute thread which probably would not be absorbed. He asked me to come in on Wednesday. He said everything was fine and he had not the slightest possible doubt that I would recover normal sight. 152, 155 April 22 Dr. Bones examined my eye again and found I could now read three lines of the test table, --a great improvement over the last time when I could only read the letter A. He said, however, that needling was necessary. I certainly would have good sight. He said He said he could do the needling on Friday, but in his judgment, he ought to wait for at least a week longer as it would then be easier to operate and the delay would be to my advantage. 50. Ht:mlin, C. S. (Cont,/d) Cataract Operation (Cont/d) He seemed to have no doubt as to the result and said I would have very good sight. Fe said to cease putting in the drops he had given me after tonight but to keep up the hot compresses. He also said I could cease wearing the dark glass after Friday and that I could use the strong glass for my right eye as it was, of course, out of focus. 155 April 25 Mrs. Newlands loaned me her machine for a drive. Dr. Pones accepted my invilmtion to lunch Sunday to meet Janet Fish, saying he would put off another engagement. 156 April 26 Dr. Pones and Janet Fish lunched with us. C.S.H. told him of the celebration Mrs. Wooley and I had when she called with her new glasses and he Quickly replied,-"You will be having a celebration soon:" C.S.H. asked Dr. Pones why he could not have a new glass with limited power as to focussing so he could work with his eye, end he said this would be done after his needling. (Up until now C.S.H. had no glass for his right eye, but had to depend on his left eye.) April 29 Dr. Pones tested my eye again and I had the same difficulty in seeing all but the largest letter. He said the capsule was right in the line of my vision. He appointed next Wednesday for needling and asked me to tell Dr. Puffin to make the necessary blood tests. He said he was able to see behind the capsule and everything there seemed in good condition. 51. Hamlin, C. S. (Con-tie) Cataract Operation (Cont'd) C.S.H. however, has a feeling that Dr. Pones is not as confident Of success as he was the other day, but Bertie feels with him that there is no reason for discouragement. He again said he saw no reason why I shald not regain my sight. 159, 160 April 30 Dr. Dunn Sugar in urine Blood sugar Blood pressure Blood count 0 15.0 170 78 161 May 1 Gianini called We drove out in Mrs. Newland's auto. 161 May 5 Janet Fish called and said Dr. Pones asked her to get an office nurse for him. 162 May 4, Monday Went to hospital for Needling 162 May 5, Tuesday Dr. Pones needled my eye. It took about two minutes and there was no pain, but it was quite an operation. 162 May 8, Friday Left the hospital. After reaching home, I had to use the greatest care and could sleep only on my back and right side after the operation for several days. I was not allowed to sit up even to empty my bladder. 52. Hamlin, C. S. (Contla) Cataract Operation (Cont'd) When I entered the hospital for needling I weighed 161 lbs. 163 May 9 Weighed 159 lbs. Dr. Ruffin had ordered a diet of no sugar, little starch and said no blood test was necessary. At each meal I had a slice of toast softened with milk. Dr. hones said to keep the atropin until he saw me on Sunday, also to keep up the hot applications. 164 May 9. Weight 159 lbs. 165 .day 10 Weight 162 lbs. Dr. hones called and said he had no doubt tut that I should get back normal sight and fixed next Tuesday for first test of glasses. 165 May 11 Weight 162. May 12 Dr. hones tested my eye for nearly an hour. It showed marked improvement in sight over the last test. He said his problem now was to find whether I could read easier over or under the scars on the cornea. He said to stop taking atropin but continue hot bandages. He said he was absolutely confident I would have a good working sight both for reading and long distance. 166 - 167 May 11 Dr. hones said he would not prescribe glasses for the present, probably not for several weeks. He said, "All is going well; dodt think for a moment I am discouraged." C.S.R. is discouraged but hopes for the best. 53. Hamlin, C. S. (Contod) Cataract Operation (Con-Vd) Dr. Pones said he suspected that C.S.F. feared blindness; which feeling, he said, was absolutely absurd. He said he would call again on Thursday. 167 May 14 Dr. Rones called and said he would give me glasses on Monday. He seemed sanguine and certain. 169 May 16 Weight 161 May 17 71eight 160 May 19 Weight 160. C.S.H. called up Dr. hones who appointed for giving me glasses. 170 May 20 Dr. Rones after a long test, gave me a long distance glass. O.S.H. was bitterly disappointed as it did not give him as much sight as did his left eye without any glass. Dr. Pones, however, seemed satisfied. He said to wear it three or four times a day in order to get used to it. We paid t24 for a gold frame and t7 for the glass. C.S.H. found, however, he could see better with his left eye without any glass. 171 May 21 Called on Dr. Hones who said I could wear a green shade on my left eye when using the new glass on my right eye. The opticians, Franklin & Co., said that my eye would strengthen as to sight beyond any doubt, and I would have normal sight ultimately. Weight 159i. 172 54. Hamlin, C. S. (Contld) Cataract Operation (Cont'd) May 22 The new glass does not give me a3good sight as my left eye without a glass. 173 May 25 Dr. Rones called. C.S.H. asked when he could have a stronger glass. said, "In a month or two:" This was had all He depressed C.S.H. Dr. Hones said the present glass the strongest C.S.H.'s eye could stand. He said he not changed his opinion that C.S.H. would come through right, but that, of course, it would take time. He said to work the right eye all I could and to cover up the left eye as much as possible. C.S.H. feels he has had a nervous breakdown, but is now sleeping without drugs. 175 May 24 C.S.H. sees improvement in his right eye. better. Dr. Dunn called: Sugar in urine Blood sugar Blood Pressure Blood count He can see a little 0 13 172 80 This is the best showing for many, many years: Still sees a faint improvement in my eye. 176 May 25 C.S.H. called up and left a message for Dr. Hones saying he was so depressed at the last meeting, and would from now on brace up, that he was feeling much better and sleeping better. 176 May 25 Dr. Hones has not complied with my request for him to call me up. C.S.H. topes he is not annoyed at his recent nervousness. 55. Hamlin, C. S. (Contld) Cataract Operation (Contid) May 25 My right eye is certainly improving in sight, but very slowly. 1. The other evening I could read the electric light "Belasco" over the Belasco Theatre, which I could not read with my left eye. 2. Last evening could read a good part of a sign on an apothecary shop, which I could not read with my left eye. 3. Looking across our parlor, I can see with my right eye; I can see clearly the slate on the back of a chair, which I cannot see with my left eye. 177, 178 May 28 Made appointment with Dr. Rones to fit reading glasses tomorrow at 4 P.M. 178 May 29 Dr. Rones said he would change my distance glass and give me a reading glass next week. He tried on a glass for reading and I could almost read with it. He said it needed, however, careful adjustment. 179, 180 May 29 Dr. Rones said, "No matter what happens to your left eye, you will never be disappointed by your right eye. You will have vision for practical work both for distance and reading." 180 June 9 Governor Eccles writes C.S.H. a fine letter strongly advising his going away for the summer. 189 June 9 The reading glasses given me by Dr. Rones a few days ago are working very, very well although very weak. I can read some advertisements in the papers and can almost read magazine articles. 190 56. Hamlin, C. S. (Contld) Cataract Operation (Contid) June 10 Am able to pick up a good deal with my reading glass, although it is very weak. I never believed I could read with my right eye again: It seems almost a miracle! With a slightly stronger glass, I feel I could read anything. The scars on my cornea do not interfere at all. 191 June 12 Dr. Rones said my eye had improved wonderfully. I read cards to him and he said I was well within range of normal sight. 191 June 15 Dr. Ruffin called and gave me a tonic as I told him I was very nervous and did not sleep well. He agreed with Dr. Hones that the trouble I had with my retina was curable. He said my blood pressure was well below 200. He said ray arteries were soft and I had nothing to fear from high blood pressure. He said my heart was in fine condition and that I looked in fine shape. 192 June 18 Dr. Rones gave me a new distance glass. 194 June 19 Paid $5 for new glass. Can see distinctly better. Said he would not change reading glass for the present. 194 June 22 Miss Kerr, former nurse and secretary of Dr. Wilmer, called by appointment. She asked C.S.H. to see if he could get a place for her not connected with the eye,--a general position. C.S.H. said if he heard of anything he would let her know. She said Mrs. Wilmer advised her to see C.S.H. 57. Hamlin, C. S. (Contld) Cataract Operation (Cont'd) She praised Dr. Rones' skill. I gathered that she had now left Dr. Rones and was employed by Mrs. Wilmer. She said that at first Dr. Wilmer was greatly disturbed because Dr. Morrison had let my eye go on for such a long time without operation, and was somewhat worried as to the success of an operation now. Just after the preliminary operation, however, he told her everything was all right and that C.S.H. would go through it successfully to the end. She said Dr. Wilmer said the preliminary operation was the really critical one with C.S.H. 196 C.S.H. is grateful to Dr. Zynkin for his advice not to have Dr. Morrison perform the operation. Miss Kerr said Dr. Morrison had gone all to pieces after leaving Dr. Wilmer, and did very little operating. 197 June 25 Dr. Rones said my eye had greatly improved both as to long distance and reading; that I could soon read newspaper print. He examined my eyes for glaucoma, but said he found no evidence of it. He said there was a minute speck on my retina, which, however, had greatly improved, and he was certain would soon disappear; that the spot was in the line of my vision and somewhat impaired it; that if in any other part of the retina C.S.H. would never have noticed it. 197 June 25 Dr. Rones called. He said he first knew of the speck on my retina when he tested my eye just before needling; that I should have been able to see much better than I did, were it not for this speck. He expressed perfect confidence that the speck would soon disappear, and get good sight. He said he had written Dr. Gunderson fully. 198 58. Hamlin, C. S. (Contld) Cataract Operation (Contld) June 27 We gave dinner at Democratic Club to Dr. Hones, Lynn Cooper et al. 199 June 30 Dr. Dunn called-Sugar in urine Blood sugar pressure " count Weight 0 13.8 170 82 164i 200 (Ehd of Hamlin, C. S., Operation) —400 Special Counsel 157, 193 Hamlin, Edward, George, Harriet See Special Counsel C.S.H. receives letter from George P. Hamlin, Jr. cletiming that the notes of his father to Harriet and Jane Hamlin have been paid. C.S.H. at once answered this in the negative. October 4, 1935 1 George called C.S.H. on telephone and asked C.S.H. for an interview at Trust Co. office of Robert Tappan in Boston. C.S.H. said he was just leaving for Washington but would see him here in Mattapoisett when he returned. C.S.H. asked what he wanted to talk about, but he was very vague and mentioned only the cow pasture. Oct. 4, 1935 2 C.S.H. prepared form of letter for Harriet to write to George asking him to send her the two notes given by him to Harriet and Jane, the preferred stock in Metropolitan Coal Co., the fire insurance policy, a life insurance policy in which his Father made them beneficiaries, and other papers. Oct. 4, 1935 2 59. Hamlin, Edward, George, Harriet (Contld) Edward sends C.S.H. a mem. to effect that C.S.H. sold his interest in Harrison Ave. and Tyler Street, for $5,000 paid by Edward and $5,000 paid by George, in January 29, 1920. Oct. 4, 1935 2 Edward also in mem. said that he and George each loaned $1,500 to C.S.H..in January 5, 1921. He said C.S.H. paid above loans with interest in 1928. Oct. 4, 1935 2 George writes C.S.H. that it appears from his Father's accounts that C.S.H. and H.P.H. apparently owe his Father's estate $15,932.72. C.S.H. answered this in full, pointing out that all but about $5,000 of this represented gifts of Edward and his rather to Harriet and Jane, with which we had nothing to do. See letter on file. Oct. 28, 1935 22 Some time ago, George sent me what he called and "account" taken from his Father's books, purporting to show that we owed his estate over $15,000. C.S.H. at once wrote George stating as a fact he had not claimed that all items in this account, other than interest and taxes in Cow Pasture, were payments to Harriet and Jane in excess of principal and interest due them on the Notes of Edward and George Hamlin. See letter. Nov. 13, 1935 C.S.H. sent Edward and analysis of George's so-called "account". C.S.H. pointed out that about $10,000 of the total of over $15,000 represented gifts to Harriet and Jane with which We had nothing to do. Nov. 13, 1935 35 C.S.H. sends above analysis to George. Nov. 14, 1935 33 60. Hamlin, Edward, George, Harriet (Contld) In answer to C.S.H.'s request George sends C.S.H. an account covering 1917, but does not answer C.S.H.'s question whether he or Tappan did not claim that all gifts to Harriet and Jane were really over payments of principal on the notes for $21,000 each given to Harriet and Jane. Nov. 16, 1955 53 We dined with the Chinese Ambassador to meet Mayor Mansfield of Boston. H.P.H. talked with him about the Cow pasture and he was very sympathetic saying it was a shame that this land should be undeveloped. C.S.H. talked with him about the Tenean property. He did not seem to know much about it, and said he thought it had been cleared up. C.S.H. suggested that Ned call on him and explain it. He said he would be glad to see Ned at any time and called over his Secretary and said that whenever Ned asked for an interview, he should see to it that he be admitted at once. Nov. 18, 1935 34 H.P.H. takes Mrs. Mansfield for a long drive over Washington. Nov. 19, 1935 54 C.S.H. writes George as to a possible compromise of claim of Harriet and Jane on promissory notes of Edward and George. Ned approved this letter. Nov. 28, 1935 43 George sends C.S.H. a really impudent letter criticizing him for having refused to give him an interview for six months and stating that there were many business matters between his Father, Ned and C.S.H. in which he desired information. Nov. 27, 1935 43, 44 C.S.H. replied denying his statements in toto. Nov. 29, 1935 44 61. Hamlin, Edward, George, Harriet (Conttd) Ned advises C.S.H. to accept position as Special Counsel to Federal Reserve Board. C.S.H. Called him up in Boston. Jan. 21, 1936 87 Hamlin, Huybertie Pruyn Arrives in Washington from Albany. Nov. 7, 1935 27 Sold the gold tea set to Ayre and Taylor, Washington, for $800. It originally cost for gold, manufacture, etc., $1,400. The firm offered to sell it to Mint at 10% commission or to buy it outright for $800. Nov. 25, 1935 39 Lunches at White House to meet wives of Supreme Court Justices. Dec. 12, 1935 47 Goes to symphony concert with Mrs. Morgenthau. Dec. 12, 1935 47 Goes with C.S.H. to New York to Carnegie Endowment meeting. Grace King dined with us at the Biltmore. Dec. 13, 1933 48 Attended class in public speaking at Democratic Club. The woman in charge told the class she heard that Bertie was called unexpectedly to speak at the dinner and that her address excelled all the prepared addresses. She made Bertie repeat some of her stories to the class. Dec. 17, 1935 51, 52 President and Mrs. Roosevelt sent Bertie for Christmas a beautiful Poinsetta plant. Dec. 24, 1935 56 Senator Glass sends his love to H.P.H. Jan. 4, 1936 69 Dines with Edith Helm. Present: Mrs. Foosevelt Mrs. Morgenthau Mrs. Wm. Phillips Mrs. Scheider and 4.P.H. Jan. 4, 1936 69 62. Hamlin, Hybertie Pruyn (Contld) Bertie lunches with Mrs. Morgenthau to meet Mrs. Poosevelt. After lunch she talked with Mrs. Foosevelt for 20 minutes and, of course, never mentioned our trouble. Jan. 262 1956 101 Harrison Avenue Property C.S.H.'s share bought by his brothers for $10,000. Jan. 29, 1920 2 Harrison, Gov. Thurston said, offered to bet $5 that the whole Board and Broderick would be reappointed. Considering Governor Harrison's close relatiions in the treasury, C.S.H. thinks this is significant. Jan. 2, 1956 66 Hay-Adams House C.S.H. wrote Sinrod for a rate of $100 per month from June through November. May 240 1956 175 Calls on C.S.H. and agrees as above. June 1, 1936 185 Helm, Edith Leaves Mattapoisett Oct. 8, 1935 3 C.S.H. goes to, for cocktail and later to dinner at Democratic Club. Oct. 25, 1935 10 Bertie dines with-Present: Mrs. Roosevelt Mrs. Morgenthau Mrs. Wm. Philipps, Mrs. Schneider and H.P.H. Jan. 4, 1956 69 Dines with us. Jan. 25, 1936 101 63. Hemenway, Mrs. Writes us that 900 attended the Winsor School dinner. May 22, 1936 172 Hitchcock, Ex—Senator Roosevelt offer of place in Federal Reserve Board to aged and infirm, shows he does not understand much of • Federal Reserve System. Dec. 28, 1935 118, 58 Hodsden, Mr. See Cow Pasture -- Edward Hamlin Holding Companies There are 50 large, of banks in U.S. See Transamerica Voting Permit 25 Houghton, Alanson We took Thanksgiving dinner with. Nov. 28, 1935 41 Attended St. John's Men's Club at home of. Dec. 16, 1935 49 House, Col. See Munitions Committee Howe, Louis Mrs. Roosevelt told H.P.H. that Roosevelt's address to Congress was shown to, in the hospital; that he thought it not bold enough and made many suggestions, all of which Roosevelt accepted. Jan. 4, 1936 70 Death of April 18, 1936 153 Hoxton, Mr., Chairman, F. F. Bank of Richmond. Is illin hospital. C.S.H. wrote Mrs. Hoxton. Dec. 2, 1935 45 Death of Dec. 20, 1935 54 64. Income Tax, Mass. Paid tax. C.S.H. - 0; H.P.H. $21.11 Jan. 27, 1936 - 105 Income Tax, National 131, 135, 136 - See Reynolds Industrial Trust Co. See Fed. Reserve Bank of Boston 1 3 Interior Pepartment See Old Swan Tavern JJames, George R. Thomas said the Tenessee Senators went to James and said they would bombard Roosevelt to make him reappoint him, but James told them not to do it. Thomas said James did not care whether he was appoin ted or not. Dec. 25, 1935 55 • Jay, Pierre Writes C.S.F. a very nice note on his retirement from the Board. Jan. 27, 1937 107 Johnson, Senator Hiram Senator McNary told C.S.H. that he and, were very indignaht that he and Miller were dropped from the Board, but were relieved to know that C.S.H. was to continue as Special Counsel; that they felt that the experi ence which C.S.H. had had was the most vital asset of the Federal Reserve System. Feb. 10, 1936 127 Joslin, Dr. Writes C.S.H. that high blood sugar patients often have peculiarly brilliant qualities not shared by others . He said he remembered so well what I did for him with Sec. of State Kellogg as to Clemenceau. Feb. 29, 1936 136 See Hamlin, C. S., Operation--1450 146 65. Keating, Mrs. See Bannister Glass 124 King, Grace Dines with us in New York Dec. 17), 1935 48 66. -L Lane, Franklin, Secretary Miller said Lane visited Roosevelts at Hyde Park in 1916; that he, Miller, was also there; that Lane told him that Roosevelt said that if he could get 250 he could carry the county; that Lane asked him--Miller--to give this, and Miller said he gave it. Jan. 26, 1936 94 Lawrence, Bishop "Hay-Adams House Washington, D. C. March 17, 1936 "Dear Bishop Lawrence: "My first letter in my 2onvalescence was to my sister Harriet and this letter to you is the second. "I have gone through the preliminary operation for cataract, they say, with great success. In the first operation they do something, I do not know what it is, to cut off all nutrition from the lens and then the lens begin to wither and become ripe, as they say, so that it can be easily taken out. "There was really a tragedy connected with all this for Dr. Wilmer, a very old friend of forty years, was appealed to by me to do this operation, and he said he would be most happy to do it as he looked on me rather as an old friend than a patient. He was so kind and sympathetic during the operation, which, you will be surprised to know, took him just twenty seconds to do. Of course, the anesthetizing took a considerably longer period. When my operation was over, I said to him, "Dr. Wilmer, I feel very disappointed", wad he said, "Why is this?" I answered, "I thought you were going to do something to me and apparently you haven't touched me", and he laughed. This was on Tuesday. On Wednesday late in the afternoon, he came into the room again dressed in his white coat and dressed my wound and then he put his hand on my forehead, as if he were giving me a blessing, and said, "Old man, you are all right. Goodnight", and then he left the room and early the next morning dropped dead. Bertie, however, did not tell me this until yesterday, Sunday, and on the whole, I am glad she did not. I wondered why he did not drop in on me but I supposed that his assistant could do all that was needed, so I was not suspicious at all. C7. Lawrence, Bishop (Contld) "Tomorrow all my bandages are to be removed and I shall have simply colored glasses. I expect to leave the hospital Wednesday and then must wait two or three weeks for the final operation. I have decided to have Dr. Wilmer's assistant, Dr. Bones, perform this. He was with Dr. Wilmer for eleven years and everybody speaks of him as one of the most brilliant operators 4n this part of the country, so I have perfect confidence that he will carry me through all right. "Bertie, with her usual sense of humor, has kept me feeling in fine shape. I have an appetite like an ox, which I suppose, is a good sign. If I am not allowed all the food I want, I bear it with ignominy. "Bertie joins me in best love. Affectionately yours, C.S.H. The Riglt-Rev. Am. Lawrence 122 Commonsealth Avenue Boston, Mass." The reply-COPY 122 Commonwealth Ave. Boston March 18, 1936 My dear Charles— Your letter hit me at three points. It was such a surprise. That you should in such a crisis write me after you had written your sister touched me deeply; it was a t9ken of warm friendship and I thank you. Altho' I knew that your eyes were in poor condition I had no idea that you were so near an operation for the removal of cataract. Grateful am I that you have come through it so successfully. What a man you are and how happy in your surgery. Don't you recall that in your prostate operation when it was almost over you asked the surgeon when he was going to begin? What a wonderful change has come over the methods of the operation: ',only twenty seconds". 68. Lawrence, Bishop (Cont'd) I hope and am confident that all will go well to the finish. Write me or ask Bertie to do so. As to Dr. Wilmer: "A trage41" Yes, to those who are left and whom he would have helped. Rot what a life of beneficium was behinJ himt There are skilled Surgeons and there are surgeons who are friends of everyone who has heard of them. Dr. Wilmer was such an one. I knew him only slightly and yet I thought of him as a friendly friend and thousands felt the same. The news of his death came to me with a vividness and regret that I would feel for the death of a relative whom I have seen everyday. You are a fortunate man to have the memory that upon you he ?oured what was his best and last I am going to pass your letter on to two of his patients to read. My Sister, Mrs. Heminway, and my son-in-law, Harold feabody. My best love to Bertie. She must have had some anxious hours and some happy ones. With wishes and prayers that you may have years of usefulness and of happy work. Yours affectionately, WILLIAM LAWRENCE" Letter to Bishop Lawrence-COPY Eye & Ear Hospital Washington, D. C. April 8, .1936 My dear Bishop Lawrence: Mrs. hemenway came to see me ten days ago just before my departure for the final operation. We had a delightful call of nearly an hour and the only critic ism I could make was that she should have stayed at least two or three hours. She suid that she wrote Dr. Wilmer for an azpointment on the day of his death. I strongly urged her to go to Dr. Rones who worked with Dr. 'hilmer in Baltimore for eleven years and has been associated with him in Washington for the last two or three years. 69. Lawrence, Bishop (CoLtia) I was strongly advised to have him continue the operation in Dr. Wilmer's place and friends of mine, unknown to me, make careful inquiries about him and the report was unanimous that he was a most brilliant operator and thoroughly cogniz.tat with Dr. Wilmer's methods. I feel that Mrs. Hemenway could do no better than to go to him as i firnly believe that Dr. Wilmer's mantle has settled on his shoulders. I remember writing you about my first operation. There was then an intermission of ten days and I was gold to go back and do anything I pleased and enjoy myself for at least ten days more before the final operation. This interval, however, to me was very gloomy as I could not help thinking of what was coming. Tell, to make a long story short, a week ago last Monday, I returned to the hospital and wonday evening they did various things to me, the most disagreeable of which was that they cut off my eyelashes. However, they assured me that they would grow out again and that comforted me. The next day, Tuesday, I was operated on by Dr. Rones. The operation was somewhat longer than the first one but I think the acutel operating time was not over five or six minutes and I suffered no pain. I had some trouble sleeping the first night but that soon paseed away and now I am sleeping comfortably without any drugs and if all goes well, I expect to leave the hospital this week, Saturday. I am really more or less of a coward as regards pain and even as a child i dreaded the doctors. When the time came, however, to go down to the operating room, I quietly repeated to myself the Twenty-Third Psalm,-"Yea, though I go through the valley of death. . ." and the march to the operating room seemed more like a march of monks to a religious festival—all element of fear having vanished. A humourous incident occurred just before they began to operate--my nose itched violently and 1 told them the operation could not go on unless I could scratch my nose, and they said it was absolutely forbidden, but two doctors rubbed may nose and finally satisfied me, whereupon the operation went on. Dr. Roues said I went through it splendidly without even a whimper. As a matter of fact, towards the end of the operation, I asked him how things were going along and he said, "The operation is complete", and surprised me greatly. He then said, "You have gone 70. Lawrence, Bishop (Cont'd) through this ordeal in a magnificient way, but I don't mind telling you now that I thought you were going to be a very poor patient because you have asked me from time to time so many questions about the whole matter." I said, "Doctor, when you know me better, you will realize that I have a very inquisitive mind." He then said, "Good Lord: Do you think we have only now discovered this:I" Thep all the doctors laughted and I joined them. It seems strang e to be sitting here nowtalking the thing over as if we were in a club smoking after a dinner. After a couple of days, I was comfortably convalescent and each day felt stronger, and if everything goes well, I hope to leave Saturday of this week and spend a quiet Easter at our apartment house. The operation was pronounced a com)lete success. Of course, I have not tried to use my eye up to the presen t time for it is filled with drops tending to dilate the pupil. I had a striking piece of evidence, however, as to the use of my eye. In the first operation an electric light was held almost in my eye but could not see it--I saw the glow, of course, but nothing more. In the second operation the same procedure was followed and I could see nothing but ths glow. SuddenTy, however, when the operation was nearly completed, it flashed over me that I was seeing for I could see the electric light and the fingers of the man holding it before my eyes. This was a message for I understood at once— the cataract had been removed and the light of heaven was coming through on to my retina and optic nerve. When I realized this, I felt as did Xenophon and his ten thousand followers in their weary march toward the sea. When at last they caught sight of it they cried in exultation--"Thalassat Thalas sal The Seat The Seat" So I said to myself--"Thalassat Thalassal The Light!. The Light:" Whenever I go back, however, I must have a dark lens on my eye for at least two weeks before they will attempt to adjust eye glasses to it for it is necessary to wait until it is absolutely solidly healed. However, I can wait that time patiently. Bertie's sense of humor has never, and I trust will never, leave her. I told her the other day that it was at least two years since I could see her face distinctly. She promptly told the doctor that she wished three days' notice before I was permitted to use my glasses for she wished to go to Emile, the hair dresser, and have her face lifted, eyebrows plucked, hair dyed, and everything else done in a vain attempt to make herself look as she did two years ago. However, I told her this was not necessary as I was sure that she looks younger than ever. In fact, to me she is a kind of Peter Pun--she will nevec grow old. 71. 1,awrenc!e, Bishop (Cont' I have dictated this letter hurriedly but will not be permitted to correct it, so you will understand its being marked "dictated, but not signed". Bertie joins in love to you. Affectionately, C.S.H. The Rt.-Rev. Wm. Lawrence 122 Commonwealth Ave. Boston, Mass. Dictated, but not signed. Bishop Lawrence's reply-COPY 122 COAMONWEALTH AVENUE BOSTON Easter EveMy dear CharlesCongratulRtions: and again Congratulations: and A Happy Easter to your ever young Bride: How grateful you must be that what you heve so long dreaded is now happily behind you. Somehow the removal of a cataract seems to me the great miracle of surgery: And the methods of the last few years have transformed the process of it and 50 years ago when my father underwent the operation at the hands of Hasket Norby. And what a wondrous exponent of surgery Dr. Mmer was. His character as well as his hands seemed to have a healing power. I have forwarded your letter to Ars. Hemenway who will be much interested. Well, my dear Bertie, does it not seem good to have a husband who can now see your beauties as well as hear your voice? It is lovely tothink of you both in quiet happiness. Best love and again a Happy Easter. Your affectionate friend, WILLIAM LAWRENCE 72. "Leave" as Special Counsel Governor Eccles told C.S.H. he could take all the leave he desired. Jan. 27, 1936 106 Leutrum, Countess Arites C.S.H. Oct. 4, 1935 2 The Mark Twain letter of, was rejected by the Celeb ration and C.S.H. sent it Thuraton's suggestion to the Editor of the Washington Post. Oct. 28, 1955 18 Washington Post accepted her article but said they could not pay much for it. C.S.H. said he would leave this to them. Nov. 1, 1935 26 'tmshington Post sends check for $1.2 to C.S.H. for Countes Leutrum's article and C.S.H. wrote sending her his check. December 6, '35 45 She writes C.S.H. A very grateful letter for the check. Dec. 30, 1935 60 Liberty League See Smith, Al 102 Lira Exchange See F. R. Bank of Boston Industrial Trust Co. 1 Logan, Mr. See Wyatt Lodge, Constance See Williams, Mrs. Lunches Bertie lunched at White House to meet wives of Justices of Supreme Court. Dec. 12, 1935 47 73. Lunches (Contld) Bertie lunches with Mrs. Morgenthau 1,o meet airs. Roosevelt. Jan. 25, 1936 101 Bertie lunched with Rachel Hale Feb. 11, 1936 128, 130 C.S.H. lunches with Gov. Young Feb. 26, 1936 134 Ve lunched with Mr. & krs. Charles ivarren. March 29, 1936 147 41•••••••=1111 • ...1•••••••••• 74. Mansfield, Mayor We dined with Chinese Ambassador to meet. Nov. 18, 1935 34, 77 See Hamlin, Edward -- Cow Pasture Marine Midland Corporation See Voting permits 18, 63, 64 Marshall, Mr. Thomas de took breakfast with Justice McReynolds to meet, and grs. Dougherty. June 21, 1956 194 Marvin, Dr. See Dimock, Mrs. 132 Marvin, Langdon Called on us with his daugher. They had just been at the White House. He said he wrote Roosevelt asking if C.S.H. was not to be reappointed; that Roosevelt replied that he wanted to reappoint C.S.H. but did not feel that he could in view of the age limit he had fixed. He said Roosevelt spoke frequently of C.S.H. and expressed deepest regret that he could not reappoint him and added that he had been appointed adviser of the new Board, and that this was a higher and more dignified position than that of an active member. Feb. 21, 1936 133 lass. Income Tax Paid today. C.S.H. H.P.H. • 0 21.11 Jan. 21, 1956 alcADoo, Senator See Munitions Committee Morrison, Dr. See Hamlin, C. S. - Operation 105 75. McClellan, Mr. & Mrs. George We dined with Dec. 25, '35 57 Feb. 15, 36 130 McKee, Mr. Reported to be on slate for Federal Reserve Board appointment. Jan. 19, 1936 83 Appointed for 8 year term ' I an. 25, 1936 105 C.S.H. called up, and he was very kind and courteo us. He said the whole Board arranged to call on C.S.H. an pay their respects but he was ill at home. Feb. 10, 1936 127, 128 Sent C.S.H. flowers to hospital. See Hamlin, C. S., — Operation McNary, Senator and Mrs. We dined with, at Mayflower hotel. Sen. McNary told C.S.H. that he and Sen. Hiram Johnson were very in— dignant at the dropping of C.S.H. and Miller from the Federal Reserve Board, but that now they were much relieved to learn that C.S.H. was to act as Special Counsel. He said C.S.H.'s experience was a vital asset of the Federal Reserve System. 127 Feb. 8, 1936 McReynolds, Justice We took breakfast with, to meet Mrs. Thomas Marshall and Mrs. Dougherty. June 21, 1936 194 • Mercantile Bank and Trust Co. Heference to Ayatt's early opinion 16 Metropolitan Coal Co. See Hamlin, Harriet 2 76. Michelm, Charles Miller told C.S.H. that Roosevelt's radio address as to closing the banks, was written for him by, who read it to him before showing it to the President, who somewhat abbreviated it. Dec. 24, 1935 56 Miller, Adolph When C.S.H. reported Stern's name for Class C director, Philadelphia, he explained his whole record. Miller cut him off and said--"Do you still report him?" C.S.H. said yes and Miller called for a vote and the vote was unanimous. Oct. 22, 1935 8 Said Governor Eccles should have delivered his address before American Bankers' Association at the beginning and then should have quietly left. Nov. 18, 1935 Miller opposed C.S.H.'s motion to approve all Class C directors who were also Chairmen, whose terms expired in Dec. 31, 1936, for three years but to designate them as Chairmen only at the pleasure of the Board. Miller wanted us to let all the terms expire in Dec. 31, 1935 without any reappointments except Peyton of F. R. Bank of Minneapolis. Nov. 29, 1935 42 Miller attacked Chairman Curtiss of Boston. C.S.H. said that the the proper time he would reply to Miller's attack. Nov. 29, 1935 42 Miller fiercely said he would agree to C.S.H.'s motion if the new designation were made to expire in March 1. C.S.H. agreed. Carried unanimously. No*. 29, 1935 42 Told C.S.H. that at lunch the other day at the French Embassy, someone from New York said that Toosevelt intended to make a clean sweep of the entire Board: Dec. 24, 1935 56 77. Miller, Adolph (Contld) Told C.S.H. that Charles Michelin wrote Roosevelt's radio address as to closing the banks, that Michelm read it to him--Miller--before giving it to Roosevelt, that Roosevit abbreviated it considerably. Dec. 24, 1955 56 Said Berle wrote the Railroad speech Roosevelt gave. during the campaign of 1932. Dec. 24, 1935 56 Said Wm. Phillips told him that Roosevelt told him that from now on, every appointment must be made with a view to politics. Dec. 25, 1935 57 Miller told C.S.H. he would not be at all surprised should Roosevelt, with his love of politics, clean out the whole Board, but that he could not believe he would drop him or C.S.H. without first informing us of his intention. He also said his effects were ready to be packed at short notice: Jan. 3, 1936 66 Said in Board meeting he was to see Glass in afternoon. C.S.H. asked him to let him how if anything of importance transpired and he said he would but he did not call up C.S.H. Jan. 4, 1936 67 Said he was satisfied Roosevelt desired to clean out the whole Board, but that he was being advised by very influential persons not to do it. Jan. 4, 1936 71 Said he had talked with several Justices of the Supreme Court who expressed great fear lest Roosevelt should clean out the whole Board. Jan. 4, 1936 71, 72 Miller talked as if he had been tipped off by Roosevelt, but did not say so. Jan. 4, 1936 72 78. Miller, Adolph (Contld) Thurston told C.S.H. that the new age limit would apply to Miller, Thomas, James and C.S.H. Jan. 22, 1936 90 Roosevelt sends for C.S.H. and Miller and says he cannot reappoint them. Jan. 23, 1936 93 See Roosevelt Miller told Roosevelt that his view just expressed in favor of a 10 year term for Justices of the Supreme Court, would remove Cardozo, Stone and Brandeis: Jan. 23, 1936 95 Roosevelt told us he did not make up his mind to drop C.S.H. and Miller until about three weeks ago. Jan. H, 1956 101, 102 C.S.H. fears the age limit Was devised in order to get Thomas, protdge' of Arthur Mullen, off the Board and that C.S.H. and Miller have been sacrificed to this end. Jan. 25, 1936 104 New York Times of Yesterday prints a letter taken from Munitions testimony, from Ex—Secretary McAdoo to Wilson bitterly attacking Miller and Warburg as Pro Germans in 1915, and added that, if possible, Miller was a more bitter Pro German even than Warburg: Morrill said this letter was in the files given by the Treasury to the Senate Committee. Jan. 10, 1936 75 6enator McNary told C..S.H. that he and Sen. Hiram Johnson were very indignant at the dropping of Miller and C.S.H. from the new Board. Feb. 10, 1936 127 New York Times put tames of C.S.H. and Miller prominently forward as among the guests at the President's dinner. This was evidently arranged by the White House: Feb. 32, 1936 129 See Roosevelt 79. Miller, Mrs. Adolph Mrs. Miller, on March 25, 1928, came out in Washington Post as a signer of an appeal of women for the nomination and election of Hoover. 61, 123 See 178 Scrap Book - Page 92 Biraie West told Thurston at dinner with Mrs. Burling that Mrs. Miller said she would never speak to Roosevelt or Mrs. Roosevelt again, --she was so indignant because her husband was not reappointed. Jan. 28, 1936 109 Moore, Ass't Sec. of State Tells C.S.H. that the Senate Committee has sent C.S.H.'s extracts from his Diaries which he gave the 8enate Committee, to the State Department. He said he had looked over the extracts and found nothing objectionable in them. C.S.H. advised him to have one of his men go over them carefully and he said he would. Nov. 25, 1935 59 Morgen, J. P. See Shouse 21 Morgenthau, Secretary and Mrs. Vetoes desire of Board to increase reserve requirements Nov. 9, 1955 30 H.P.H. goes to symphony concert with. Dec. 12, 1935 47 Thurston said Sec. Morgenthau would not allow Olyphant to leave Treasury to go on Federal Reserve Board. Jan. 3, 1936 65 H.P.H. lunches with; tip meet Mrs. Roosevelt. Jan. 25, 1936 101 C.S.H. believes Sec. Morgenthau hated the Federal Reserve Board because it objected to paying over its gold to the Treasury and retained Newton D. Baker to advise it. Feb. 1, 1936 119 C.S.H. is greatly surprised that Aec. gorgenthau never wrote him as to his failure to be reappointed. 80. Morgenthau, Secretary and Mrs. (Con-0d) C.S.H. in many instances helped Secretary Morgenthau in Board matters, and our relations were very friendly e.g. C.S.H. proposed him for Metropolitan Club, and put by many things altho' there was some protest. Feb. 2, 1936 120, 121 Bertie saw and spoke to Secretary Morgenthau at Senator McNary's dinner, but he never referred to C.S.H.'s failure to be reappointedt Feb. 10, 1936 128 Morrill, Chester C.S.H. told, that if not reappointed he and H.P.H. would leave Washington at once and that under no circumstances would he accept any retainer as adviser, as Morrill suggested. Jan. 11, 1956 78 Morrison, Dr. 130, 131, 152, 158, 173, 192, 196, 198 See Hamlin, C. 5.—Operation Mullen, Arthur Roosevelt appointed Thomas on Board to please, who was Roosevelt's floor manager at the Convention. 58 C.S.H. begins to realize that he and Miller are dropped by an age limit really designed to hit Thomas, the protege' of. Jan. 25, 1956 104 Munitions Committee, Senate See Miller Moore, Assit Secretary • 75 39 81. -N National Income Tax See Income tax National Shawmut Bank of Boston See Special Counsel Voting permits 125 Needling See Hamlin, C.S. - Operation Ilk, 148 Newlands, Mrs. Sends her auto and gives C.S.H. a drive April 23, 1956 156 May 1 , 1936 161 Newton, Gov. Federal Reserve Bank of Atlanta Told C.S.H. Ransom was not definitely slated for the new Board; that a man named Cock was being vigorously pushed by both Georgia Senators, --a pure politician. January 22, 1956 92 New York Herald Tribune See Federal Reserve Bank of Philadelphia Stern 6 Norris, Gov. - Federal Reserve Bank of Philadelphia Speaking of Stern's appointment as Class C direc tor at Philadelphia, Governor Norris said his directors were all conservative old line Republicans and that, perhaps it was not a bad idea to put in some fresh blood representing divergent ideas into the Directorate. He said, however, it was ill timed in view of the Municipal election, and gtve the Republicans the chance to claim it was a purely political appointment engineered by Senator Ouffy and Governor Earle to influence the Municipal election. He said the Democratic Municipal ticket which Stern was supporting was a good one, and that the Republican candi date was a crook. C.S.H. said he knew nothing about Philadelphia polit ics and that neither directly or indirectly had polit ics entered into the matter; that he had looked into many 82. Norris, Gov. - Federal Reserve Bank of Phila. (Cont'd) names, most of which were not available or satisfactory; that Stern's name had been suggested and a thorough analysis of his record was given to C.S.H. and carefully studied by him, and approved by him. October 22, 1935 7, 8 See Glass See Stern 16 Invites C.S.H. and Eccles to speak at meeting of stockholders of Federal Reserve Bank of Philadelphia. Governor Eccles wrote regretting and turned letter over to C.S.H. without comment. C.S.H. wrote he saw no reason why he could not attend. He felt that if not reappointed he could then withdraw. Later, consulting with Governor Eccles, it was evident that he did not want him to go and he withdrew his acceptance because of a Board engagement. Jan. 8, 1936 70, 71 Governor Young told C.S.H. the new Board had refused to approve Governor Norris as President of Federal Reserve Bank. Feb. 26, 1936 134 C.S.H. believes Governor Eccles opposed approval of Governor Norris because of the attack he made upon the Board in criticising the Banking Act of 1935. His attack was certainly unfair and most injudicious. 135 • 83. 0-. Oath of Office C.S.H. took, as Special Counsel before Mr. Foulke. Feb. 1, 1956 122 O'Connor See Comptroller Old Swan Tavern The Interior Department last week formally accepted our gift of an old sideboard, once in the old Swan Tavern at Yorktown, bought by C.S.H. in Norfolk, Va. in 1890. Oct. 15, 1955 5 Oliphant, General Counsel, Treasury The name of, is slated for the new Federal Reser ve Board. Nov. 25, 1955 40 Jan. 3, 1956 65 Told Logan, Counsel of Federal Reserve Bank of New York that if he retained Newton D. Baker, the Treasury would have nothing to do with the ease involved, nor would it ask Congress to appropriate if judgment finally went against the Bank. Oliphant suggested that Logan retain Leylin, a forme r Treasury expert, who now is connected with Judge Covin gton's firm, of which Acheson is a partner. Logan followed this suggestion. Jan. 10, 1956 74, 75 Open Market Operations. Governor Eccles pointlp out that the Treasury throu gh the Stabilization Fund, had much more control over Open Market Operations than did the Federal Reserve Board . He said cooperation with the Treasury was absol utely necessary, and C.S.H. hopes this does not mean that our Board must always follow Treasury policies. Oct. 21, 1935 4, 5 84. Open Market Operations (Contld) At meeting of the Open Market Committee, Dr. Goldenweiser spoke for three-fourth of an hour. He preferred to control credit by increasing reserve requirements rather than by sale of Government securities. Willi ams, Economist of Federal Reserve Bank of New York, seemed to favor an immediate increase in reserve requiremen ts. The Board then left the room. Dec. 17, 1955 50 Board and Committee finally agreed in a joint state ment to effect that they were carefully watching the situa tion; that there was no reason at present time for increasing reserve requirements. See Scrap Book The joint statement took issue with the Feder al Advisory Council, which ldter body strongly advised selling Government securities, stating that it was very bad polic y for Federal Reserve Banks to own 2i billions of Gover nment securities. Goldenweiser said the Federal Reserve System had over 7 billions of gold, --equivalent to 100% on all outstanding Federal Reserve Notes, with 60% reserve against deposits. He also pOinted out that the earning assets of the Bank of England largely consisted of Government bonds t At the meeting, five of the twelve Governors favor ed sale of Government securities. At first the Committee voted d to 4 against sale of Government securities and in favor of increase in reser ve requirements at an early date. Finally the Board and Committee agreed in a joint statement to the Press as above. The Federal Advisory Counsel members clearly want the banks to buy Government Securities o from the Federal Reserve banks to increase their earni ng power. They seem to feel that for Federal Reserve banks to hold Government bonds was sin, but for Member banks it was righteousness,. Dec. 18, 1935 52, 53 85. Open Market Operations (Contid) C.S.H. congratulated Governor Eccles over the result of the Open Market meeting. Dec. 18, 1935 53 One old line conservative such as Broderic k could join with the five Governors on new Open Market Committee and stall the Board. Jan. 50, 1956 110, 111 C.S.H. gave opinion to Morrill as Special Counsel that Federal Reserve banks have no right to instruct their officers who are on the Open Market Comm ittee, as to how they should vote. Feb. 26, 1956 154 Operation See Hamlin, C. S., Operation Orcott, Mr. See Grant, Catharine Owen, Ex-Senator Calls on C.S.H. and warmly congratulate s him on his appointment as Special Counsel Feb. 9, 1936 126 11) • •••••••••••=a 86. Palmer, Mitchell Death of May 11, 1936 168 Pan American Institute Appointed by Carnegie Foundation as a delegate to convention of Pan American Instit ute of Georgraphy and History. Oct. 14, 1935 Pennsylvania State Banking Superi ntendent Harr See Gutty 55 Perry, Dr. Gave H.P.H. a thorough examinati on. Found her in very fine condition but a lit tle too stout. June 16, 1956 193 Peyton, Federal Reserve Agent Minneapolis Wrote C.S.H. a very appreciative letter on his retirement from Board. Feb. 9, 1936 126 Philadelphia Republicans elect a Mayor bov. 5, 1935 26 Phillips, William Told Miller that Roosevelt told him from now to make all appointments solely from political point of yield Dec. 27, 1935 57 Policy • See Wyatt 15 Politics C.S.H. hopes Roosevelt will be above politics in the new appointments; it might be dangerous if men like Frankfurter and extreme New Dea lers got on the Board. Dec. 20, 1935 54 The politicians are making a drive on Roosevelt for places on the Board. Dec. 20, 1935 55 87. Politics (Contld) Miller said Vim. Phillipps told him that Roose velt directed him from now on to make no appointments excep t for political reasons. Dec. 27, 1935 57 Roosevelt has been influenced by politics in Federal Reserve appointments, e.g. asking Board to appoint Justu s harder as Federal Reserve Agent at San Francisco; the offer to an old decrepit man, Ex. Senator Hitchcock, the appointment of Thomas to please the convention floor manag er, Arthur Mullen, etc. Dec. 28, 1935 58 Keplinger says Roosevelt will be guided solel y by politics in appointing the new Board. Jan. 11, 1956 77 Portland National Bank - Oregon Minority stockholders oppose granting of a voting permit to. Nov. 29, 1935 43 Putman, Herbert See Diaries -0-- • 98 88. Ransom, Mr. Mentioned for Board. Jan. 19, 1936 83 Nominated Jan. 26, 1936 105 Dines with C.S.H. Seems quite conservative Spoke with almost contempt of "100% Reserve" He married the daughter of Hope Smith, one of C.S.H.'s oldest friends. Feb. 8, 1936 125 C.S.H. writes, as to his operation. March 5, 1936 139 Reappointment See Eccles, Gov. Federal Reserve Board Hamlin, C. S. Thurston Roosevelt Miller R.F.C. See Stabilization Fund 30, 31 Removal for Cause See Cause 70 Reserve Requirements, Increase of Board considered this today at a long session. Governor Eccles and all of Board favored it. C.S.H. favored it saying it was like a ship in dead calm with all sails set and the passengers dancing on the deck. In the distance omnious clouds are seen indicating a hurricane. Shall we farasail now although with some inconvenience to the passenge rs, or shall we wait until the hurricane strikes us'. Governor Eccles seemed delighted with C.S. H.'s metaphor above. As Secretary Morgenthau was still a member of the Board, we all agreed we should consult him. 89. Reserve Requirements, Increase of (Contld) Governor Eccles reported next day that Secretary Morganthau and the Treasury, while agreeing in principle, thought we should postpone any action for two or three months, for the reason that the Budget was not yet ready. The further delicate reminder was also given that the Board would be, or might be reorganized on Feb. 11 Under the circumstances, the Board decided that it would be better to take no action now. The Treasury has become in effect the Central Bank of the U. S.t If Board were to increase reserve requirements against will of Treasury, the Treasury could offset the effect by selling Government bands. Nov. 9, 1935 30 See Open Market uperations Federal Advisory Council 52, 53 Reserves See Trust funds besginations Coolidge, Under Secty of Treasury Jan. 17, 1936 82 Roberts, Ass't Sec. of Treasury Jan. 17, 1936 - 82 Reynolds, Thomas H. Retained, as attorney to make out our Income Tax, as I could not use my eyes. The Nat. Met, bank gave us his name. He made and I filed return of tax, -4589.01 and I paid one-fourth duo March 15, $147.25. Reynold's address is 615 15th St., Telephone, Na. 1308 Feb. 20, 1936 132 Fletcher, tax examiner notified C.S.H. he would lke to examine my files in connection with his 1934 Income Tax. return. As I was just recovering from my cataract operat ion and could not use my eyes, I asked Reynolds to meet Fletcher at my office which he did today. They went 90. ?eynolds, Thomas H. (Conted) over my accounts as shown by H.P.H.'s led ger, as to sales of stock and prices. The only error found was too great a dedu ction for earned income. They both agreed the statemen ts of sale, pur— chases, etc. of Anaconda and Calumet and Heda were correct. The increased tax will be only abo ut $15. Reynolds said he thought I had paid too much in 1923, and that he might recover some of it, --possibly $75. C.S.H. said to go ahead. He looked over my returns for 195 2, 1935 and 1934. He also examined Bertie's ledger taki ng it with him, to be returned in a few days. June 2, 1956 185, 186 Fletcher wrote he would accept a sum--about $17, in full for excess income tax. Bertie and I signed a paper accepting this and sent it to Reyn olds to send to Fletcher. June 3, 1956 187 C.S.H. sent all his D.C. tax pape rs to Reynolds and asked him to prepare a return for 192 7, of which first half will be due in September of thi s year. June 5, 1956 188 Reynolds returned all of C.S.H.'s income tax papers and H.P.H.'s ledger. He will make a return for me for D.C. taxes. He said the said of the gold tea set for $800 need not be included. June 9, 1956 189 C.S.H. asked him what value shou ld be set down for the Rembrandt Peale picture of Wash ington, which was originally bought by H.P.H.'s Father for 000. He said it would be proper to put it down of value of 1100. June 9, 1936 189 Roberts, A. L. • Resigns as Asst. Secy. of Trea sury. Jan. 17, 1956 82 Rodgers, Mrs. Sends charming letter to C.S.H. on his retirement from Federal Reserve Board. Feb. 4, 1936 122 91. hones, Dr. Benjamin 92, 150, 159, 157, 182, 195, 198, 199 See Hamlin, C. S. -- Operation Roosevelt, Franklin D., President Thomas said Szymczak saw, before he went West, and he believes R. told him he would be reappointed and made Vice Chairman. Oct. 26, 1935 16 Certain Ameridan golfers at a dinner in to drink to health of R., but insisted being to the Presidency and not to the Nov. 9, 1935 31, Canada refused on the toast President. 32 See Grant, Catharine Orcutt, Mrs. C.S.H. advises Governor Eccles to explain to Roose velt the feeling of hatred shown by the bankers. Nov. 18, 1935 34 The slate of the American Bankers Assoc iation contains Geo. F. Szymczak, Oliphant et als and not C.S.H . C.S.H. feels this wont influence Roosevelt in view of the bitter opposition of this body to him. Nov. 22, 1935 40 C.S.H. fears that if R. yields to polit ics in the new Board appointments he will appoint New Dealers or Frankfurter Democrats. Dec. 20, 1935 54 No meeting today as R. sent for Gover nor Eccles. Dec. 21, 1935 55 The politicians, led by Senator Guffy, are making a drive against R. for the Board appoi ntments. Dec. 23, 1935 55 Said R. is going down hill and White House is Senate. Said would not bet $10 on R. Dec. 20, 1935 54 92. Roosevelt, Franklin D., President (Contla) Thomas said the Tennessee senators went to James and said they would bombard Roosevelt to have him reap point James, but that James said not to do it, as he did not care whether or not he is reappointed. Dec. 23, 1935 55 Sends H.P.H. Christmas flowers. Dec. 24, 1935 56 Miller said some one at lunch at French Embassy said the rumor in New York was that Roosevelt was to clean out the whole Boardl Dec. 22, 1935 56 Miller said Roosevelt's radio address as to clos ing the banks was written by Charles Michelm who read it to Miller before giving it to R.; that R. somewhat abbreviated it. Dec. 22, 1935 56 Miller said Berle wrote R.'s Railroad address delivered in the campaign of 1932. Dec. 22, 1935 56 Miller said Wm. Philipps told him that R. said to him from now on to appoint no one except for poli tical reasons. Dec. 27, 1935 57 No word from R. as to Board appointments. C.S.H. begins to feel that, in spite of Thurston's assu rance given last July, R. may after all not reappoint him. C.S.H. feels R. does not realize the importance of the Federal Reserve System. In fact he has treated appo intments as mere pawns in the political game. For exam ple,--his refusal to reappoint Magee, his request to Boar d to appoint Justus Wardell as Federal Reserve Agent, San Francisco, his offer of a Board position to aged and infirm ExSenator Hitchcock,.his appointment of Thom as, Chairman of Democratic State Committee of Nebraska , to please Arthur Mullen, the floor manager at the 1932 Convention; his appointment of Szymczak, to please the Poles. Owen D. Young advised him that even from the purely political point of view the whole Board should be reappointed, but C.S.H. fears Farley may persuade R. otherwise. 95. Roosevelt, Franklin D., President (Cont'd) C.S.H. fears the old friendship he has with R. would not have any weight against the recommendations of Sec. Morgenthau or Governor Eccles. C.S.H. fear s R. will look upon these new appointments as purely political. R. will consider, C.S.H. fears, which will be best politically,--to drop or reappoint C.S.H. C.S.H. believes if R. thinks it out he will realize that to drop C.S.R. would anger the old supporte rs of Cleveland and Wilson and might injure him--R.--serious ly, especially in the most unlikely event of C.S.H. taking the stump against R. showing that while condemning the prin ciple of a Central bank, yet by the Stabilization Fund under the Thomas aaendment, by stripping the Board of all independence by reviving this power, --stricken out in 1935 but revived in 1955, or removal for "cause" by the Presiden t, has made the Treasury the most powerful Central bank in the world. Dec. 28, 1955 59, 60 C.S.R. is inclined to feeling that he will be agreeably surprised if R. reappoints him. Dec. 28, 1935 60 C.S.H. feels that Governor Eccles must know what Roosevelt intends to do. Thurston came in but said nothing as to Roos evelt's intention. If he--Thurston--knows C.S.H. is not to be reappointed, after his statement to C.S.H. last July, he should tell C.S.H. so frankly or at least to qualify that statement, but he has bald nothing. Dec. Ms 1955 61 Catharine Grant writes C.S.H. that she will never again love-Fr/100in Roosevelt in the same way if he does not reappoint C.S.H. Dec. ;p, 1935 62 The papers said Glass lunched with Roosevel t yesterday and came away smiling and happy. Can he have agre ed to drop his opposition to Governor Eccles2 Jan. 1, 1956 62 Nothing from Roosevelt. Suspense is almost intolerable. C.S.F. does not believe 94. Roosevelt, Franklin D., President (Contld) that at this late day, R. will drop him, without having given him ample notice beforehand. No gentleman could do otherwise. Jan. 2, 1936 64 New York Times publishes an alleged list, --Governor Eccles, Szymczak, Preston, Delano, Harr, Oliphant; Broderick and Talley. Thurston told Thomas there was nothing to this. Thurston came into Szymczak's room when C.S.F. was there and said the same. Jan. 3, 1956 65 See Thurston Miller told C.S.H. he would not be entirely surprised if R. living politics as he did, might be persuaded to clean the whole Board out, but did not believe he would do this without telling us well ahead of his intention. The suspense is intolerable. Jan. 3, 1956 66 Mrs. Roosevelt told H.P.H. that R.'s address to Congress was shown to Louis Howe who made many suggestions all of which R. adopted. Jan. 4, 1936 70 Wile, in Washington Star, said the rumor was that R. would reappoint C.S.H., Miller, and Szymczak. Jan. 9, 1956 71 Miller said he was satisfied that R. wants to reorganize the whole.. Board, but that strong influences were urging him not to do it. Jan. 9, 1936 71 Miller said he had talked with several Judges of the Supreme Court who all exprilssed grave fear lest R. should clean out the whole Board. Miller talked as if he had been tipped off by R. but did not say so. Jan. 9, 1956 72 Thurston tells C.S.H. that R. has not yet committed himsel f as to the Board appointments. 95. Roosevelt, Franklin D., President (Cont,d) C.S.H. felt he might be hedging from his talk with C.S.H. of last July, but Thurston said nothing inconsistent with that talk. He said R. must determine whether or not to reappoint the whole Board, and, if not, what memb ers to drop. C.S.H. was much puzzled at this conversa tion. Jan. 6, 1956 72 Szymczak today told C.S.H. not to worry; that Governor Eccles had told him that if R. did not reappoint C.S.H., he—C.S.H.---- would be given some position such as Adviser to the Board. C.S.H. at once said this would not be satisfactory, that if R. felt he was not fit for reappoin tment, that will settle the question, --that if he had to go on the Dole it would be at the hands of the people of Mattapoisett and for the Federal Reserve Boardt Jan. 9, 1956 72, 75 Thomas told C.S.H. that one of his senators some time ago went to Roosevelt and said Thomas desired to know whether he was to be reappointed, for if not, he should resign at once; that R. said Thomas should not resign. Jan. 10, 1936 73 Thomas also talked to Governor 2 sccles who said R. bad not consulted him as to the Board sinc e his visit to Hyde Park last summer. Jam. 10, 1956 75 Thomas said Farley told a friend of his that Roosevelt should clean out the whole Board. Jan. 10, 1936 73 C.S.H. is told that Steagall wants to be appointed but cannot under the constitution--that as the composition of Board members was increased whil e he was a member of Congress. • C.S.H. feels, however, that Roosevel t could get around this by leaving one appointment vacant unti l Steagall's term expires on Dec.,31, 1936, and then filling the vacancy by appointing Steagall. Jan. 11, 1936 76, 77 Kepplinger says Roosevelt will surely reappoint Governor Eccles and Szymczak, and that Roosevel t will make the appointments purely on political grou nds. C.S.H. does not believe Roosevelt has fallen as low as that. Jan. 11, 1936 77 96. Foosevelt, Franklin J., Presictent (Con 0d) - C.S.H. feels Roosevelt must realize the danger to the Federal Reserve System from political appointments. Jan. 11, 1936 78 C.S.H. told Morrill that if Roosevelt did not reappoint him, he and Mrs. Hamlin would leave Wash ington at once; that he would not accept an advisory posi tion, even if offered, as Morrill though it would be. Jan. 11, 1936 78 C.S.H. said he would not accept a reta iner of Z100,000 from the new Board to be appointed by Roosevelt. Jan. 11, 1936 78 Thurston again told C.S.H. he hoped Roosevelt would re— appoint the whole Board; that this woul d be the best course even from tne point of viet of practical polLtics. Jan. 11, 1936 78 Miller said there was one person of very great influence with Roosevelt who advised him to clea n out the whole Board. He would not say who it was,--wh ether man or wofflan. If it is a man, C.S.H. thinks of Frankfur ter or Justice Brandeis. Miller said it was not Col. House. Jan. 15, 1936 79 Thurston asked C.S.H. if he had seen Roosevelt lately and C.S.H. said No. This made C.S.H. suspect that Thurston knew that Roosevelt was going to tell C.S.H. he could not reappoint him. Jan. 15, 1936 80 C.S.H. asked Thurston if he had know ledge of any Board members going to see Roosevelt. He said No, except at Thomas told him his Senator (Bur ke) had seen Roosevelt who was cold and irre sponsive and alluded to the question of age. C.S.H. suspects that Thurston knows that Roosevelt has this feeling. Thurston said age woul d not be deciAve but merely one element. Thurston said he thought C.S.H. was all right but thought it better to put before him the wors t possibility so that the ultimate result would be all the more agreeable. Jan. 15, 1936 80 97. doosevelt, Franklin D., President (Con tld) Thurston said Glass had seen Roosevel t that morning at 9:30. Jan.15, 1936 80 Szymczak told Roosevelt at When Thurston it will come C.S.H. that Governor Eccles had seen 11 A.M., but Thurston did not mention this. left he said again that he was conf ident out all right. Jan. 15, 1936 81 C.S.H. fears that Roosevelt will use the age limit to clean out the whole Board and Miller feels the same. Miller said it was unthinkable that Roosevelt would drop us without ample prior notice. Jan. 15, 1936 81 C.S.H. said to Thurston that if Glas s and Governor Eccles had both seen Roosevelt, would the appointments come out today and Thurston said not before next week. Jan. 15, 1936 81 Roosevelt leaves Washington for New York tonight to return Sunday. Jan. 16, 1936 81 The suspense is almost unbearable. C.S.H. fears that Roosevelt hates our Board because it retained Newton Baker to protect our rights when Roos evelt ordered us to turn over all of the Federal Rese rve Gold to the Treasury for devaluation. Should Roosevelt put in some hand picked pliable men it would amou nt to scandel. Jan. 16, 1936 82 Nothing new as to appointments. Thurston said he did not know why Under Secretary Coolidge resigned, but added humorously, "Per haps Roosevelt thought it better to have him resign before appointing him in your place:" Jag. 17, 1936 82 Thurston's humor makes C.S.H. think he may be slated for reappointment by Roosevelt. He cert ainly would not have talked this way had he known definite ly that C.S.H. Was not to be reappointed. Jan. 17, 1936 82 The Associated Press announced that from authoritative sources that Roosevelt nas made tent ative sel(:tion for 11 13 = 1 1Z d wrr erick, Ransom, Brod McKee, W.J. Fost er Jan. 19, 1936 83 98. Roosevelt, Franklin D., President (Contld) Foster gives out a long interview in the papers, stating he has not yet heard officially, but giving many reaso ns to show how fitting it is that Roosevelt should appoi nt him. Jan. 19, 1936 83, 84 See Foster Washington Post Miller said yesterday before knowing of above annou ncement that it was the most sordid experience he ever went through and C.S.H. agrees with him. Jan. 19, 1936 84 At first blush it woulu seem that Roosevelt is devoid of a sense of decency and of honorable conduct. That Roosevelt should thus drop two friends of a gener ation without a single word of explanation is unthi nkable: There must be some explanation, but what is it? C.S.H.considers Thurston's statement of last July equivalent among gentlemen to an official statement that he would be reappointed. To put an end to a service of 21 years, on only a few days notice is simply unbelievable and unbearable . Jan. 19, 1936 85 On the surface it would seem as if Gover nor Eccles has all along been deceiving C.S.H. and that C.S.H. should apologize to Glass for having said he would nominate Governor Eccles for Governor of an independen t Board: Jan. 19, 1936 85 The proposed Board, while generally good men, have eviaently been hand picked and Roosevelt will be able to put through any policy he desires as each member is removable for "cause". Jan. 19, 1936 85 Thurston came in at 4:30. He said he had a Oggestion to make. He said Roosevelt wanted to drop some membe rs of the present Board, and that his only course was to fix an age limit of say, 65 years; that this would necessarily exclude C.S.H. He intimated there was also other reasons which prompted Roosevelt, but that the age limit was the only practicable method of accomplishing what he wanted. Jan. 21, 1936 86 99. :loosevelt, Franklin D., President (Contld) Thurston said Glass had made several sugg estions to Roosevelt based on a 65 year limit: This p.maes C.S.H. for Glass is 73 and a candidate for reelection to the Senate. Jan. 21, 1936 86 Thurston said Roosevelt had the highest opinion of C.S.H. and said it had beeareported to him that C.S.H. was the ablest man on the Board and that it was absolutely essential that C.S.H. should rema in with the Boar d. He finally said the Board would be glad to make C.S.H. Special Counsel. Jan. 21, 1936 86 Thurston said Wyatt was able but very narr ow and that C.S.H.'s judgment as to legal and policy matters would be of inestimable value to the new Boar d. Then C.S.H. opened on him and said he had never gone through such circumlocution; that it fill ed him with anger; that, of course, Roosevelt had the right not to reappoint him, but that he would not take this lying down; that if not reappointed, he would be an absolutely free man; that he had just put the last entry in his Diary and was prepared to go at once! Jan.21, 1936 87 C.S.H. told Thurston that what stirred him up most of all was reading Foster's interview whil h showed that Roosevelt was considering him all the time when C.S.H. was led to believe all was well with him. Thurston finally told C.S.H. that Fost er was not to be appointed. (Much later, Thurston said the Article in Atlantic Monthly by Catchings and Foster, attackin g the Board for interfering Ixith the stock speculations in 1928 and 1929, settled Foster's fate.) Jan. 21, 1936 87 Thurston then begged C.S.H. to help Roosevel t who was in a hard position. He begged C.S.H. to think it over at nigh t and he finally said he would, of course, consider it but gave Thurston no encouragement. Jan 21, 1936 87 Roosevelt, Franklin D., President (Contld) C.S.H. called up Ned in Boston who advised him to accept if the salary was $15,000 and for a fixed term for at least one year. Bertie was also inclined to have C.S.H. accep t it. Jan. 21, 1936 88 Thurston came in. C.S.H. said he perhaps was too excited yesterday, but he is sure Thurston can understand how a man feels who has served satisfactorily for 21 years, who has several times been told his reapp ointment was assured, and who, accordingly, has made no plans for future work,--suddenly to note in the papers an interview accepting the office he had held for 21 years. Thurston said it would make any man with red blood cold. C.S.H. then asked him to state just what he had in mind when he spoke to him as to acting as Speci al Counsel. Tharston said his idea was that C.S.H. should have an annual retainer to act as Counsel and Advis or on matters of law and banking policy referred to him; that he would be independent of the legal staff, and need not even live in Washington but could live in Mattapoise tt if he pre— ferred; that this could easily be arranged. C.3.H. asked what retainer he had in mind and Thurston said $10,000 or $12,000. C.S.H. said he would not even consider such a suggestion. Thurston asked what sum C.S.H. would consi der . C.SH. said an offer of $20,000 would receive consi deration, but he would consider an offer of $15,000. Thurston said he feared a retainer over ten or twelve thousand dollars might subject the Board to criticism. C.S.H. asked Thurston to remember that he was not asking for any retainer at any salary, but in frank ness must say he could not aansider Thurston's suggestion . Thurston said he would think the matter over and come back soon. :.S.H. asked if Roosevelt would assign the age limit as the sole cause for failure to reappoint him. Thurston said "Yes, absolutely." :Tan. 1936 89, 90 101. Roosevelt, Franklin D., President (Contld) Thrust= said that Roosevelt was not speciall y interested in Miller, altho' Mrs. Roosevelt was in Mrs. Miller,— which surprised C.S.H. very much. Jan. 22, 1936 90 Thurston said Governor Eccles had told Roos evelt what splendid service C.S.H. had rendered and how fin41y he had backed him--Governor Eccles--up, and that it was vital for him to remain connected with the Boar d. Thurston said Roosevelt spoke of his affe ction for C.S.H. and how deeply he regretted the thought of droppine: him. Thurston said Roosevelt would write C.S.H. and beg him to remain with the Board as Special Coun sel. O.S.H. asked if he were to consider this , Thurston woul consult Glass, and Thurston said he cert ainly would. Thurston said he would see C.S.H. again tomorrow. C.S.H. asked why Glass did not fight for Miller and Thur ton , said that"from what I know, Glass would rath er fight for you than for Miller." C.SH. said he ought to seem Thomas and Miller as to this offer. mhurston said to say nothing for 24 hours to Which C.S.H. agreed. Jan. ?2, 1936 92 Thurston told C.S.H. that Foster was off the slat, --that he would not be appointed. Jan. 22, 1936 92 C.SH said he hoped nothing would be done until after the Liberty League meeting on Saturday. Jan. 22, 1936 92 At about 3 P.M. the White House called me up and said Roosevelt wishedeto see Miller and C.S.H. at his office at 5:05 P.M. today. We were there at the appointed time. Roosevelt said he felt terribly at having to send for us-among his oldest friends—and tell us that he cannot re— appoint us on the new Federal Reserve Boar d; that we had both done fine work, but that the Banking Bill of 1935 required him to ap9oint a new Board; that many Senators had so told him that he should appoint a Board of young men, preferably under 60 years. Miller said he had wanted an independent Board, and Roosevelt smiltngl y said, "Well you regulated yourself out of office:" Roos evelt then said he could not drop James and Thomas because of age and then 132. Roosevelt, Franklin E. (Contld) reappoint C.S.H. and Miller. Roosevelt said James was a good man but that Thomas was wholly unfi t, --that he never should have been appointed original ly,--that he paid little attention to his duties, etc. He then said he believed it to be absolutely imperhti ve that C.S.H. should remain with the Board as an expe rt advisor and that he had so told Governor Eccles and he hoped Q.S.H. would consent to accept such a position . C.S.H. said he would consider any suggestion Roosevel t or the Board might make to him. Roosevelt said he had advised novernor Eccles to appoint Miller as Agent of the Board to manage the construction of the new Board builling . C.-.H. asked if the new appointments would soon be made and he said they would before many days, that he was looking for a middle west dirt farmer. Miller told him frankly there would be bitter opposition to some of his appointees,— referring presumably to Governor Eccl es. C.S.H. told Roosevelt frankly that it had been his prayer for years that he might die a member of the Boar d, and that his decision was a bitter disappointme nt . We did not stay long. simply shook hands with Roosevelt and bade him Goodbye. Jan. '23, 1936 93, 94 Miller and C.S.H. both feel that "Age" was a pure subter— fuge. C.S.H. feels that Governor Eccles hates Miller and Roosevelt hates Thomas, the prot ege of Arthur Mullen, and that Roosevelt in order to hhve a plausible reason for removing them both, has been pers uaued to sacrifice two of his oldest friends. Thus endeth the lesson: Jan. 23, 1936 95 During the interview Roosevelt spoke of the Supreme Court and to C.S.H.'s amazement, said that he believed there should be a constitutional amen dment limiting their terms of Justices of the Supreme Court to ten years: Miller said this wiuld shut out Justices Stone, Cardo:, and Brandeis--the most liberal Judges on the Bench. Roosevelt did not reply to this . Jan. 23, 1936 95 Roosevelt sends C.S.H. a letter dated Jan./ 22, but not received until the evening of Jan. 23, after our inter— view. loosevelt, Franklin D. (Contld) THE WHITv HOUSE WASHINGTON January 22, 1956 Dear Charlie:I have been much torn over the problem of the new Federal Reserve Board, especially becituse you and Bertie and the Mill ers are such very, very old and personal friends of ours. I have wanted to reappoint you but I must frankly follow the general rule which appl ies to Commissions and especially to quasi-ju dicial bodies and, therefore, I have with much regr et come to the conclusion that in appointing the new Board I cannot put anybody on over sixty years old. This is especially hard for me bec, luse of our old friendship and also beca use of the splendid service that you have give n these many years. I hope much that you will be able to remain in an advisory capacity to the new Board, and also that you and Pertie will come to see us some day very soon. I feel sure that you will understand my problem and my wish that my decision could have been otherwise. As ever yours, FRANKLIN D. ROOSEVELT Honor%ble Charles S. Hamlin, The Hay-Adams House, Washington, D. C. Thurston came in. • C.S.H. said he was gathering up his papers prior to leaving the Board. He said--"Stop all this:" C.S.H. showed him Roosevelt's letter and he said he was absolutely confident the 'natter will be settled,-perhaps within 24 hours,--to your perf ect satisfaction. C.S.H. explained to him why he had fixe d if1.5,000 as the limit of compensation in case he shou ld accept Roosevelt's suggestion as to Special Counsel. Thurston said he had no doubt it could be arranged. Jan. 24, 1336 97 104. "oosevelt, Franklin D. (Contld) Should Roosevelt appoint the Boar d as rumored, Szymczak, with only two years experience, will be the oldest member of the Board: Jan. 24, 1956 98 Miller said we both conducted our selves admirably at our interview with Roosevelt; that we quietly accepted the verdict, but made it plain to him how bitterly we felt about it. Jan. 24, 1936 98 C.S.H. wrote Roosevelt in reply to his letter of January 22, as follows:-January 24, 1956 Dear Mr. President: I beg to acknowledge your kind let ter sent me after our interview on January 22nd. I can only say that I shall be the last person to expect or ask that your concep tion of public duty should be moulded in any way by our old—time frinndship. As to your expressed hope tha t I may remain in an advisory capacity on the new Board, I can say that I shall give most carefu l consideration to any suggestion you may make along these lines. Believe me, Very sincerely yours, C.S. HA/LIN The President, The White House. o Miller said yestAday that in 1916 he visited Roosevelt in Hyde Park; that Secretaly Lan e was also there; that Lane told him--Miller--that Roo sevelt said that if he could raise$150 he could carry the county; that Lane asked him to give this amount to Roosevelt,--which Miller did: Jan. 26, 1936 100 105. Roosevelt, Franklin E. (Cont'd) Szymc2ak told C.S.H. that it was abso lutely settled that he--C.S.H.--was to keep his present room and secretary; that he could have any titl e he might choose, and that he would be asked to attend all meetings of the new Board. He said noth ing as to salary. January 26, 1956 100 At the interview with Roosevelt he said he mrde up his mind to drop C.S.H. and Miller about three weeks ago. Jan. 26, 136 101, 102 This coincides as to time of Father Coughlin's interview with Roosevelt, when Father Coug hlin said he should raise the question of the cons titutionality of the Federal Reserve Act: C.S.H. believes Roosevelt was infl uenced by Father Coughlin to remove the whole Board, but, of course, cannot prove this. Jan. 26, 1936 102 Governor Al Smith attacks Roosevel t's poli-ies at the Liberty League dinner in Washinwt on. Jan. 24, 1936 10f: C.S.H. is carefully considering as to whether he should comply with Roosevelt's request and remain as Special Counsel and advisor of the new Board. His first im— pulse was to refuse even to consider the suggestion, on the ground that if too old to rema in on the Board, his advice to it as counsel would be of little value. On the other hand, Roosevelt has made it so clear that he wants C.S.H.'s service and that this age limit was purely a device to put off Miller, Thomas, and perhaps James, and C.S.H. feels that it may be his duty to remain and render all help he can. Another frankly selfish element also exists:--if C.S.H. had known last 'Illy that he was not to be reappointed, he could doubtless have made arrangem ents for resuming law practice in Boston. He was told then by Thurston that it was settled he was to be reappoin ted and ac— cordingly made no new arrangements . As a result, the sudden drooping from the Board in a few days' notice would have seriously injured him from a pecuniary point of view. 106. Roosevelt, Franklin D. (Contld) C.S.H., therefore, gave careful cons ideration to the suggestion of Roosevelt. Jan. 4, 1936 103,104 C.S.H. is satisfied that Roosevelt wanted to drop Thomas because of his feeling towa rds Arthur Mullen, and that Governor Eccles wants Miller dropped and that both wanted C.S.H. retained but because of the age limit excuse, had to drop him also. Jan. 24, 19Z6 104 C.S.H. feels Roosevelt was in erro r when he said Thomas was unfit to remain. The original appointment was unfit but C.S.H. bE21ieves Thomas had made good. Jan. 24, 1936 104 C.S.H. feels that the New Deal as applied to the Federal Reserve System means—Experience over thrown, and Experiment crowned in its place: Jan. A, 1936 104 C.S.H. is slowly coming to the conc lusion that it may be his duty, wholly apart from his pecuniary consideration, to remain and render that assi stance he can. He feels certain that Roosevelt has destroyed the Board by being given the power to remove its members "for cause". Jan. A, 1936 104 Roosevelt's statement in his letter to C.S.H. that in limiting appointments to 60 year s of age, he was following a general rule applicable to comm issions and ejlesijudicial bodies. If there were any such rule, and C.S. H. believes there is none, Roosevelt certainly did not follow it when he appointed Thomas at 65 to a 10 year term, Miller at 69 to a 12 year term, and offered a 12 year term to Ex-Senator Hitchtock, nearly 80 year s of ages Jan. 24, 1936 105 Roosevelt appoints nev. Board-Morrison Eccles Ransom Mc Kee Szymczak Broderick _ _ _ Two years Four years Six years Eight years Twelve years Fourteen years Jan. ;6, 19Z6 105 107. Roosevelt, Franklin E. (Cont'd) Thurston told C.S.H. he was absolutely sure his matter would be settled satisfactorily to him. Jan. d, 1936 105, 106 Governor Eccles came in in P.M. and said he would advise the new Board to appoint C.S.H. Special Couns el and advisor at a6000 per year. he said also that .C.S.H. coulu have a stenographer assigned to his office, vho, vhen not used by C.SH. could do other work in the examination division. He also saiu the requirements as to leave toulo not be applicable to C.S.H.; that he could take all the leave he wished at any time. He suggested the title, Special Counsel, and said my duties would be to advise the Board uhen called upon, on questions of law and matters of banking policy. He said I should be absolutely independent of the legal staff; that my relation would be wholly with the Board through Morri ll, its Secretary. C.c..H. said he would consider this offer. Jan. 26, 19:6 106 C.S.H. talc :;iorrill that if he accepted this offer he would be willing to move to the Shoreham Build ing. C.S.H. also said this to Governor Eccles. Jan. 26, 1936 107 C.S.H. made appointment with Charles warre n to ask his advice as to accepting the offer. Voarren came over at night and strongly advised C.S.H. to accept. Jan. 27, 1936 108 Thurston came in. C.S.H. said he had carefully gone over the matter and did not see how he could take ",t12,000, but ould accept it if it, was made ;',15,000. Thurston said heythought this could be arran ged. He said Governor Eccles was to see Glass and get his approval of the appointment. C.S.H. finally said he would agree to accep t either d,000 or 0.5,000 as agreed upon by Governor Eccle s and Glass. Jan. 8, 1936 108 Thurston said that Roosevelt haci seriously consi dered Foster; that Senator Walsh and Senator Coolidge had indorsed Foster, but that there was much opposition from N. C. Senators and from others, including Sen. Carry. Jan. :28, 1936 108 108. Loosevelt, Franklin D. (Conted) Birney est told Thurston that at a dinner at Mrs. Burlings, Mrs. Miller said she would never again speak to Roosevelt or to Mrs. Roosevelt: Jan. '13, 19: 6 2 . 109 Thurston said C.S.H.Is appointment would be made on Monday by acclamation. Jan. a, 1936 115 C.S.H. at midnight ceased to be a member of the Board of Governors. He holds over, however, until his successor ,ualifies. Jan. 51, 1956 113 Looking back over the last seven months, C.S.H. feels that the treatment by Roosevelt of the Board, Miller and C.S.H. is the most disgusting episode in his life. To be told in July he was to be reappointed, and then told he was not to be reappointed, only a few days prior to the announcement would seem to justify bitterness toward Roosevelt. Feb. 1, 1936 117, 118 C.S.H. feels Roosevelt will be charged with treating the Federal Reserve System as a happy hunting ground for spoilsmen. His refusal to reappoint Magee, his tender to Ex—Senator Hitchcock, his appointment of Thomas, Chair— man of the Democratic State Committee of Nebraska, his direction to the Board to appoint Justus Uardell as Chairman at ban Francisco, and other cases till all be brought against him. C.S.H. also feels that Roosevelt dislikes the Board because it refused to turn over the Fe6eral Reserve gold after devaluation, and resented the matter being settled by Cpngress , retaining Newton Baker s Advisor,--to which Roosevelt finally yielded. Feb. 1, 1956 118, 119 The Act of 1935 gpving Roosevelt the right to remove for "cause" will make the new Board absolutely pliant uw.er pain of dismissal. Feb 1, 1936 119 The age requirement laid down by Roosevelt v1as merely a pretext to enable Roosevelt to get rid of Thomas and Governor Eccles to get rid of Miller. To carry out the pretext, C.S.H. had to be dropped. Feb. 1, 1936 119 109. 1-0osevelt, Franklin P. (Cont'a) C.S.H. is puzzled at the declaration of Thurston and Roosevelt that it was vital for C.I.H. to remain with the board in some capacity. C.S.H. is inclined to believe that they meant this, although a critic might say it was for the purpose of prevent C..11. from at— tacking the Administration, by e.g. publishing his Diary! February 1, 1936 120 . Thurston said the Board, at its first :ceting tomorrow will surely follow the suggestion of oosevelt and Governor Eccles and appoint C.S.H. a Special Counsel. Feb. 1, 1936 120 Board followeu Roosevelt's suggestion and unanimously appointed C..;.H. Special Counsel at $12,000 per year. itiorrill told this to C.S.H. and said C.S.H. was to be absolutely independentce the legal staff, anu was to consider are matters referred by the Board through Morrill, its Secretary. Morrill SEJIG the whole Board .:,as delighted to make this appointment. Feb. 4, 1936 122 At 12:25 Mr. FouIkeaeministered the oath of office to C.S.H. Feb. 5, 1936 123 The Board officially announced th;,t C.S.H. had consented to act as special counsel and that the Federal Reserve System would. have the benefit of his experience as Governor and a lember for 22 years. See Scrap Book Eeb. 9, 1936 127 _e dined at Mite House--a State dinner to Speaker of the House of Representatives. Feb. 11, 1936 18 Langdon Marvin and daughter called. Said he had just left Roosevelt at the V.hite House. He said he wrote Roosevelt some days ago and asked if C.S.H. was not l be reappointed; that Roosevelt wrote ip him that he wanted to reappoint C.S.H. but did not see how he could in view of the age limit he had fixed. Marvin said that Roosevelt spoke of C.S.H. frequently and expressed the deepest regret that he could not reappoint him, but addeo that he had beaaappointed Advisor of the Board, which office was higher and more dignified than active membership. Feb. :?1, 1936 1"-'3 110. T.dosevelt, Franklin D. (Cont'd) C.S.H. feared the Philadelphia Board of Directors would all resign when the Board refused to pprove Governor Norris as the First—President of the Federal Reserve Bank of Philadelphin, v.hich might seriously embarrass Roosevelt, but this did not happen. February 26, 1956 154-135 During my illness, President and Mrs. Roosevelt sent beautiful flowers twice. See Hamlin, C. Lc — Operation (End of Roosevelt) ----0 ---F-,00sevelt, Mrs. Franklin D. Bertie lunches with, to meet Justices of Supreme Court wives. Dec. 1%, 1935 47 Bertie dines with Edith Helm to meet. Jan. 4, 1936 69 Told Bertie that Ropsevelt showed his address to Congress to Loui: Howe in the hospital who suggested many changes which Roosevelt adopted. Jan. 4, 11 96 70 Bertie lunches with i1rs. Morgenthau to meet. Jan. 5, 1956 101 We dine with Presiaent and Mrs. Roosevelt. to Speaker of House of Repre6entatives. Dinner Feb. 10, 1956 Sent C.S.H. flowers to hospital Mar. 51, 19'66 • 148 hoot, Elihu Attends Carnegie Endowment meeting at the home of Mrs. Carnegie in honor of 100th Anniversary of the birthday of Andrew Carnegie. Dec. 14, 19?,5 48 Tuffin, Dr. Sterling Sugar Blood Blood Blood in urine sugar pressure count 0 18 190 73 Feb. 9, 1936 126 as Ruffin, Dr. Lter1ini 6 (Contld) Said C.S.H. was in splendid condition. Hear t in specially fine condition. Blood count 78 - Normal Blood pressure 180 iaid my blood pressure was not bad; that in 109 it was 2.20 Blood sugar high--18--but saio Dr. Joslin did not worry when it was 25. Favorec reducing my v.eight to 160 lbs. stripped. Feb. 11, 196 1119 Considered giving C.S.H. insulin befo re his 2nd operation as he feared the operation migh undu ly increase the blood sugar. C.S.H. did not like it as Dr. Josl in had written him to pay no attention to th(J blood suga r before operation. iJar. 23, 19F)6 145 - 146 Before this operation the blood suga r was 13.5 --practically normal. Insulin was given ever yday for a week and the blood sugar remained constant at about 13. Dr. Ruffin said my blood pressure was all right--well below 190. Mar. 28, 1936 sugar Blood Blood Blood in urine sugar pressure count 0 14-4 170 75 Mar. 29, 196 Sugar Blood Blood Blood in urine sugar pressure count 147 147 0 13.8 170 78 Apr. 301 1936 161 Instructed the haospitai to give me no sugar and only a moderate amount of starch. acid that no blood test was necessary. They gave C.S.H. at each meal a Aloe of toast softened with milk. :day 9, 193C 164 112. Ruffin, Cr. Sterling (Contld) May 1C, 1936 " 17, " " 19, Sugar Blood Blood Flood in urine sugar pressure count 161 lbs 160 lbs P. 169 160 lbs P. 170 ”159k " P. 172 0 13 172 80 ay :=.4, 1966 176 Called at C.S.H.'s request. Gave me a tonic for nervousness. Said my arteries were soft and pliable and that I had nothing to fear from blood pressure. Said my heart WES in fine condi— tion. June 15, 1936 192 Sugar Blood Blood Blood in urine 0 sugar 13.8 pressure 170 count 82 1641. stripped June 10, 1936 • 200 113. — — Saint Agnes Church See Anna Hamlin 158 Saint John's Church Attended Men's Club meeting at home of Mr. Houghton. Dec. 16, 1935 49 Attended vestry meeting. Ir. Finley walked home with me. Apr. 4, 1936 •vings Banks, California See Californi Savings Banks 156 47 Scandel The rumor is that Morrison got hiu appointment not only because of the demand of Vice President Gamer but also because he gave 50,000 to the remocratic National Committee. ,lay, 18, 1936 173, 174 5erly, Governor Richard :rites fine letter to C.S.H. on his retirement. Feb. 1, 1936 114 Board refused to approve, as President, Federal Reserve Bank of Richmond. Feb. 26, 1936 134 Section 16, Federal Reserve Act See Special Counsel 99 Senate Munitions Inquiry C.S.H. gave Sproul of Federal Reserve Bank of New York a copy of memoranda sent by him to Senate Munitions Committee in re2ponse to request af the Committee. He said the ban t made a condition in turning over letters, etc. to senate CommItte that they should be used only if State lepartment said it was not against the Public interest. He said the Federal Reserve Bank had turned all letters, records, etc. to State Department which could decide whether or not to give them to the Senate Committee. He said his Bank apolthgized to the Bank of algland Senate 'unitions Inquiry (Contld) because our Board announced the approval of the agency. He said that among the papers turned over as a copy of a cable to J. P. :.lorgan asking him to apologize to Bank of England for this Federal Reserve System. See Asst. Secretary Moore Nov. 1, 1935 21 Swan Tavern, Old See Old Swan Tavern Simpson, lirector — Federal Reserve Bank of Chicago Board voted not to reelect. Nov. 28, 1935 43 Simpson, Sr. C. Augustus Gave C.S.R. X—ray treatment for rash on body. June 1E, 1936 June 17, 1956 103 104 Gave C.3.R. X—rays and cut out a cyst from his back June a, 1936 195 Gave X—rays June 25, 1956 June 29, 1936 198 129 Sinrod, See Hay—Adams House Smith, Governor Al Bitterly attacked Roosevelt at Liberty League dinne r, Washington. Jan. 24, 1936 102 . mith, 4r. ) See Cow Pasture Special Counsel, C.S.R. • Board unanimously appointed O.S.H. as its speci al counsel, at a.2.,000 per year. Morrill said C.S.H. was to be absolutely independen t of Legal Staff and , has to report directly to Board on all matters of law axis policy referred to him throug h lorril as oecretary. He said it was understood that I could take all the leave I wished, at any time. 115. opecial Counsel, C.S.H. (Cont'd) He saia the Board members were delighted Co make this appointment. Feb. 4, 1936 Mrs. Keating told Bertie that Mrs. Bannister told hnr that Glass was greatly relieved to hear of C.S.H.'s appointment. Feb. 7, 1936 14 C.S.H. gave opinion to Board that the National Shawmut bank and Shawmut Association were in fart engaged in the business of controlling and managing five small banks and, therefore, were not entitled to have the benefit of the exception in the Banking Act of 1935 and their petition for exemption should be denied. Feb. 8, 1936 124 (Made Counsel write opinion along lines of C.C.H.) C.S.H. gave opinion to Morrill concurring in opinion of our Legal Staff, that Federal Reserve banks which happen to have representatives in Open Market Committee cannot lawfully intruct their members hot to vote as members of said Committee. Feb. 26, 1936 134 Gave opinion that hereafter, letters as to Gold Settle ment fund could be signed by the Chief of the Operating Division as one of the "Other Officers" referred to in Section 16 of F.R. Act. One of the legal staff saie "No" in an opinion while Vest said "Yes". Mar. 5, 1936 169 The Board in the April Bulletin puts down C.S.H.'s name as Special Counsel ahead of and apart from the legal staff. Apr. k4, 19a; 157 Sproul, Ir. - Federal Reserp lank of New York See Senate Munitions Inquiry Stabilization Fund Governor Eccles pointed out that the Treasury by using this, could exercise more control over credit than could the Federal Reserve Board, and that the Board must cooperate with the Treasury. C.S.H. feels that the Thomas amendment giving right to devalue, issue greenbacks, and the stabilization fund has made the 116. Stabilization Fund (Contla) Treasury the Central bank of the U.S. , and by the right of removal for "Cause" given to the President by the Banking Act of 1955, the Fede ral Reserve Board has become merely an adjunct, and not a very impor— tant adjunct of the Treasury: Oct. 21, 195 4 .3tandard Conditions See Voting permits 6tern, G. The appointment of Stern as Class C director of Federal Reserve Bank of Philadelphia was severely criticised by 'oall Street Journal and New York HeralG Tribune. They quoted Stern as favoring a cent ral bank; they also quoted a bitter attack on Sena tor Glass as being a representative of Va1l Street. See Glass Norris, Coy. Oct. 1955 4 Stokes, Anson Phelps, Rev. Vrote C.S.H. a fine letter on his retirement from Federal Reserve Board. Feb. 1, 1936 114 Stone, Justice Then hoosevelt said he favored redu cing the terms of Justices of the Supreme Court, Mill er pointed out that such a law would throw out Just ices Stone, Brandeis and CLrdo2,o. Jtin.3, 196 95 Suppers ( See Dinners, Lunches, Brea kfasts) C.S.H. at Men 1 4,C1ub, St. John's Chur ch Dec. 13, 1935 49 Szymczak, — Federal Reserve Boar d. Told a friend of the Comptroller that it was settled that he was to be reappointed. Oct. 18, 1935 4 Thomas said he knew Szymczak had seen Roosevelt before he went West, and he believes Roosevel t told him he would be reappointed and woul d make him Vice Chairman . Oct. 26, 1935 16 117. Szymczak, — Federal Reserve Board. Is on slate of U. S. Chamber of Commerce. Nov. 25, 1935 40 Said Senator Guffy is pushing Harr, State Superintendent of Banking of Pennsylvania, for a place on the Federal Reserve Board. Dec. 23, 1955 55 Chicago Poles used their political influence for. Dec. 27, 1935 58 New York Journal of Commerce has, on its slate. Jan. 3, 1936 65 All predicts appoint of. Jan. 1936 71 Tells C.S.H. not to worry; that Governor Eccles told him that if not reappointed woulo be given a place Ls advisor to tho Board. C.S.H. saio this would not be satisfactory; that if not fit to be on the Board, he would not be fit to act as an advisor; that if he had to go on the Dole, it would be in Mattapoisett and not for the Federal Reserve Board. Jan. 9, 1936 72, 73 Kepplinger says, will surely be reappointed. Jan. 11, 1936 77 Expressed his deep regret at C.S.H.Is failure to be reappointed. He said it frightened him to realize that if reappointed, he would be the oldest man on the Board from point of service. Jan. 25, 1936 98 Told C.S.H. it was absolutely settled that C.S.H. was to keep his room and his secretary, and that he could choose any title he wished and that he would be expected to attend all meetings of the new Board. Jan. 26, 1936 100 Roosevelt reappoints, for twelve—year term. Jan. 26, 1956 105 Told C.S.H. that Broderick was to be made Vice Chairman. He said Roosevelt said he did not care who was to be made Vice Chairman; that Governor Eccles suggested to Loosevelt that he consult Glass, to which Roosevelt agreed; that Glass said Broderick should be made Vice Chairman. Jan. 30, 1936 110 118. Szymczak, — Federal Reserve Board (Contld) C.S.H. wrote, as to his operation. March 5, 1936 0 a, 139 119. Taber, F. Last night Taber called and showed C.S.H. two lette rs received by the R.F.C., one from Hodsden and one from his attorney, Smith. Hodsden's letter was to Merriam of the h.F.C. and Smith's letter was to Farle y and forwarded by him to the R.F.C. Both lette rs pleaded for a loan to Hodsden's corporation. Hodsden's letter was purely statistical and in proper form. Smith's letter was a purely polit ical appeal to Farley, saying that if that loan was granted, Roosevelt would surely carry Massachusetts. He said that Roosevelt in writing had said he would consider the matter in a friendly spirit for the reason that C.S.H. and H.P.H. were interested in it: C.S.H. expressed his indig nation that Roosevelt's letter to Bertie should have been referred to. Tabcr asked about the cow pasture and C.S.H. gave a full explanation. He asked about Hodsden and C.S.H. said he would have Edward Hlim3in to write him fully . He said not to do this until he found out whether the R.F.C . could or woulo make such a loan. May 9, 1936 181, 18:)_ See Cow Pasture Tallry, Mr. Mentioned for Federal Reserve Board. Jan. 3., 1936 65 Tappan, Robert See Hamlin, G. P. Teas (See Dinners, Lunches, Breakfasts and Suppe rs) Vie had egg nog with 14r. Ulson of State Dept. at his home in Georgetown. Dec. ;.!8, 1935 57 Thomas, Federal Reserve Board Thurston said Glass will fight Thomas to the death. Jan. 19, 1936 87 Says he believes Roosevelt will reappoint Szymc zak and make him vice chairman. Oct. '‘A), 1935 Left toaay for Nebraska. 16 C.S.H. suspects he is going 120. Thomas, Federal Reserve Board (Conttd) to Democratic State Convention next week. Nov. 1, 1935 20 Said that Senator Burke went to Roosevelt some time ago and said that Thomas wished to know whether or not he is to be reappointed, for, if not, he will resign at once; that Roosevelt saiu not to resign. Jan. 10, 1936 73 Said that Mrs. Thomas' heart collapse Was caused by Aorry over Thomas. Jan. 26, 1966 100 Roosevelt said Thomas' appointment was a bad one and should never have been made, that he neglected his work, etc. Jan. :23, 1936 See Roosevelt Roosevelt devised the age limit to get rid of Thomas. Jan. 25, 1936 103, 119 Governor Eccles distrusted Thomas. Feb. 20, 1936 1. :a Thomas, Mrs. See, Thomas, Mr. Thurston, Elliott (See also Roosevelt) Told C.S.H. that Roosevelt was going down the hill rapidly and that the Vthite House was badly scared . He said if he were a betting man, he would not risk 0.0 on Roosevelt. Dec. W, 1935 54 Listened sympathetically when C.S.h. said that if not reappointed, he should leave Washington at once. C.S.H. wondert whether he knows anything or not. Jan. 11, 1936 76 Said he dined at airs. Burlings last night; that Delano was there and spoke very highly ofC.S.H., and even approvingly of Governor Eccles; that Birnie ;vest, who was there, said Mrs. IAller tolc, ner she would never speak to President or :Ars. Foosevelt again. Jan. _£3, 1936 108, 109 Thurton, Elliott (See Also Roosevelt) (Contld) Tole Mrs. Harriman that the whole Boar d and staff loved C.S.H. and were much pleased at his appo intment, but that they all aetested keb. 7, 13Z6 1;_4 Trausamerica Corporation See Voting permit Treasury devaluation 60, a, 60 See Central bank Trust fund 114 See Reserves -U Uninvested Trust funds See Eeserves 114 U. S. Chamber of Commerce See Governor F,ccles 40 U. S. Supreme Court Declares A.A.A. and processing tax unconstitlit ional by a vote of 6 to 3. Jun. 6, 1933 70 Certain Justices expressed grave fears to ailler that Roosevelt clean out the whole Federal Reserv e Board. Jan. 9, 1936 72 Roosevelt favors limiting terms to 10 years. Jan. 'a, 1936 95 U. S. Treasury See Central bank Reserve requirements ---_- 0 ----- a . V Votes A savings bank department of a California bank is not a savings bank under Banking Act of 1935. C.S.H. dissented. 1935 47 Open Market Committee voted against increasing reser ve requirements. Dec. 18, 1935 5:„; See reserve recuirements. Uninvested Trust funds not depobited in commercial siae of bank need carry no reserves. VyuLt contra. Board accepted C.S.H.'s views. Feb. 1, 1976 114 See Voting permits opecial Counsel Voting Permits Board took up u letter to Comptroller on Trans america voting permit. The Comptroller claimed Board had already voted on this. C.S.H. denied this. lent over. Oct. 18, 1935 4 Comptroller gave complete account of Bank of America, showing that it had improved wonderfully and expressed opinion that a general voting permit shoula be given to it, on the condition that it would be revok ed if the suggestions and recommendations of the Comptroller were at any time not compliea with. The whole Board approved and it was so voted . A great victory for C.S.H! The staff originally recommended conditions which would have taken frnm the Comptroller all his power and given the Board eNclusive jurisuiction. This would have put upon the Board's shoulders the whole banking situa tion in Californi'a aria woulo have brought about civil war between the Board and the Comptroller. Oct. ;?5, 1935 9, 10 C.S.H. conferred with yatt and Paulger. Decided to prepare voting permit for Transameri ca Company. In addition to conditions as to the National bunk, we agreed to add a condition that the Holding company must 124. Voting Permits keep its subordinates in good financial condition Laid maintain a reasonable quota of capltal to deposi ts. C.S.H. believes the Comptroller should enforce the National bank conditions. vVe agreed to segreg ate all other petitions covering National banks and approv e them on condition of their obeying the sugges tions and the recommendations of the Comptroller, and if any trouble arose, we should ask the comptr oller to take jurisidction as in the Transamerica petiti on. As to the holding companies of State banks, we agreed that we need not get a formal expression of opinion from the State authorities, but to leave it to the Federal Reserve Agent, whose duty it is to know whethe r the member banks are disregarding the State Superintende nt's orders and whether they have any objection to the granting of the permit. he found that there was a State nonmember bank, called Bank of America, held by Transamerica Company. Paulger had said only National banks were involved. Ve felt, however, that the condition as to keeping all subor— dinate banks in sound condition would cover this case. We also agreed to put in a condition that holcin g companies should agree to keep a reasonable ratio of capital to surplus. lidhether this applies to all banks, we felt that as to National banks, we would merely give to the Comptroller power which he does not now have, to force a National bank to increase its capital. C.S.H. was asked to show this condition to the Comptr oller and get his consent, if possible. C.S.H. agreed to take up the Marine Midland bank, involv ing State banks on Tuesday. C.S.H. pressed the necessity for speedy action and laid down December 1 as the final date for Comptroller. They doubted whether they could do this but C.S.H. said it must be done. 4 Morrill said it was absolutely necessary for the banks to have our decision well before January next, the date of election of directors. Wyatt said he wished it understood that he was not in accord with this policy of the Board. C.S.H. asked him scuarely what he thought the policy should be. Voting Permits Wyatt saia he thought the Board should impos e every condition it desired notwithstanding the judgm ent of the Comptroller. Wyatt said he was not wholl y satisfied with the Comptroller's report to the Board in answer to the Board's letter. C.S.H. feels hyatt is hypercritical and that if the Board should follow his advice, it Aoule hive to take over the direction and management of every National bank controlled by a holding compa ny. That would place upon the Board complete responsiblity for the whole California banking situation and lead to civil war with the Comptroller. C.S.H. believes that every condition impos ed by our Board on a National bank must be enforced by the Comptroller. The Board can grant or refuse a voting permi t and can decide as to the present condition of a membe r bank, and it can refuse a permit, but in practice should ask the opinion of the Comptroller as a stron g kind of evidence. Wyatt said the Board would be delegating its power to the Comptroller which would be dereliction of our duty. C.S.H. pointed out that Congress has given exclusive jurisdiction to the Comptroller over Natio nal banks, and ifI Raithful to this trust, he can be removed by the President or by Congress. C.S.H. said we have delegated nothing to the Compt roller as to the original question of granting or refus ing a permit. We have simply taken evidence and decid ed the original question,--shall or shall not a permit be granted? The Board cannot enforce future conditions except when the Comptroller applies to us. ikdien the Board grants a permit it can enforce condi tions allquent only through the Comptroller. It was certa inly not the intention of Congress to deprive the Comptrolle r of his exclusive jurisdiction over National banks. 126. Voting Permits The Board can refuse a permit of its own volition, but when it has granted a permit, conditions subsequent must be enforced by the Comptroller. However, the Board at the reluest of Comptroller can revoke a permit granted on conditions subsequent. If the Board had followed this policy favored by Viyatt of going ahead without regard to the jurisdiction of the Comptroller, and had the Board undertaken to act in spite of the Comptroller, S.H. believes it would have had to back down, as it did in the case of Mercantile Trust Company of St. Louis, after at first following Wyatt's opinion. October 3, 1935 9, 10, 11, 12, 17), 14, 15, 16 Conference over Transamerica Voting permit. Present: Morrill, Wyatt, Clayton, Paulger, Cagle and C.S.H. finally agreed on a form to be submitted to the 7boaro and to show it to Giannini at a subsequent hearing. The only new matter was a clause providing that all dividends for the Bank of America in excess of 6% should be npplied to taking down the 32 million note. C.S.H. was asked to show this to the Comptroller . In the afternoon representatives from the Marine Midland appeared. After long discussion, we agreed to issue a voting permit under the general standard conditions, and it was agreed that as to National banks involved, we would put in the general condition as to carrying out the recommendations and suggestions of the Comptroller. We did not think it necessary to get a special report from the Comptroller. Wyatt sent C.S.H. a memorandum to effect that there were still 5 or 6 general questions of policy remaining to be settled. Vie agreed to settle them tomorrow. yatt,in his memorandum, said his staff would not initial the letter to Transamerica Corporation, as they did not agree with this policy and said he wanted to prepare :1 memorandum giving his views as to pt,licy, which memorandum would necessarily be very long. October 26, 1935 18, 19 Board took up Regulation P,--Holuing Companies. C.S.H. made several suggestions which were accepted. Clayton told C.S.H. ',hat Governor Eccles was not satisfied with the recoamendations as to Transamerica voting permit; that he v.anted a firm recommendation to be sub- 127. Voting Permits (Contld) mitted by C.S.H. which the Board could accept or reject; that Governor Eccles objected to the condiLion requiring accurate reports to stockholders , as it would place too heavy a burden on our Board and too great responsibility. C.o.H. called another meeting for tomorrow at 10 A.M. Nov. 1, 1935 20 C.S.H. met with Wyatt, Clayton, Cagle, Paul ger, ;oingfield and the Comptroller. We finally reached a unanimous agreement on Transamerica conditions. V.e advanced to to years the time in which to charge off depr eciation, etc. The real discussion was over the question as to making accurate statements to stockholders in othe r than official reports, or statements to the public, two copies of which were to be forwarded to the Federal Rese rve Agent. Clayton said Governor Eccles would obje ct to this. C.S.H. said he felt this particular form placed responsibility on the Board to O.K. all stat ements and in the future we might be criticized for not having originally objected to them. S.H. believes Congress never intended to give us or put upon us such poy,er,--really poli ce powers. All agreed that, however, desirable, the question was not vital. C.S.H. decided to rel)ort this sepa rately to the Board, omitting it from the main report. The Comptroller agreed to the conditio n 0% of Bank of America dividends. as to excess over oome objection was at first made to givi ng two years in which to charge off depreciation, on the ground that in the Old Colony Trust Co. this was made a condition precedent.* Morrill said that changing . the condition to one subsequent rather than an preceden t, violated no principle. C.S.H. feels we can take care of tne false report amendment by putting into the cond ition against changing the scope of the business, a furt her statement,— "and shall maintain the character of its management." 128. Voting Permits (Contld) This would give the Board the rig ht to threaten to revoke the permit for any false or intentionally misleading statement. Nov. 1, 1935 :<.2, Conference over Transamerica permit: Present: Wyatt, Paulger, Cagle, Morrill 23, 24 and Baumann. We all agreed that sound policy demanded a prohibition against false statements. Wya tt changed his mind and said he feared it might cau se litigation. Wyatt sent J.S.H. a memorandu m suggesting various ways of meeting the situation wit hout committing the Board to a policy which must apply to all the 50 holding companies. C.S.H. thought one of his suggestions could be used if revised to read: "That the management of the corporation and its subsidiaries shall be conduc ted under sound policies governing their financial and other operations, including public statements relating thereto." Nov. 2, 1935 24, 25 The conference accepted the abo ve except that "public" was stricken out and changed to "statements issued". All voted for this altho' Cla yton did so reluctantly. The condition as to 6% divioends of Bank of America was dropped out as Clayton pos itively declined to accept it. Finally we substitut ed a clause that the Transamerica Co. could not inc rease its present dividend rate until the note in question had been paid to Bank of America. All finall y agreed to this. Nov. 5, 1935 26 C.S.H. signed a formal recommend ation to the Board as to Transamerica permit. Nov. 7, 1935 27 Thruston told C.S.H. that Govern or Eccles favored a change in he condition as to proh ibitinL; false statements, which he thought very good. C.S.H. feels that his statement was clear and explicit, and hopes Governor Eccles will not try to emasculate it. Nov. 7, 1935 27 129. Voting Permits (Contld) C.S.H. explains his recommendation as to Transamerica voting permit. At first, Governor Eccles said we were going too far and were giving Boar d too great authority as to charge offs. After long dis— cussions the Board approved the prop osed letter to Giannini, with slight immaterial changes. There was much discussion as to the clause relating to false statements. C.S.H. said by false statements was intended a deliberately false stat ement which deceived the public and gave rise to a dema nd on us to revoke the voting permit. C.S.H. asked if we would like to be compelled to say we cannot now revoke it, as we did not originally reserve the right? Governor Eccl es then said, "Let us try it on the dog", and it was approved. Board agreed to send the standard cond itions to all holding companies to which a hearing will be given at same time when Giannini is heard on his special conditions. C.S.H. said he would probably fini sh all applications by December 1, which was the last day on which the Board had said it would issue temporary permits. The Board sat until 7:45 P.M. Nov. 7, 1935 28 Wyatt congratulated C.S.H. on the manner in which he con— ducted the above hearing before the Board. He said it was the clearest, ablest presenta tion he had ever heard. Nov. 9, 1935 29 Hearing before Committee on peti tion of Transamerica Corporation for voting permit. Giannini appeared with his Coun sel, Collins. Giannini objected to the condition that he could not increase his Transamerica dividends until he had paid off the 22 million dollar obligation held by Bank of America. He finally sdkd he would agree to pay it off within five years, one—fifth every year and said that if the Board insisted he would do it within thre e years. The latter offer seemed about righ t to C.6.H., but he simply said he would report it to the full Board. Later the Board met and voted to make it three years. 130. Voting Permits (Conted) Later, the Board met and voted to make it three years. Giannini also asked the right to appeal from decisions of the leederal Feserve Agent as to charge offs, etc.-which the Board thought reasonable. C.S.H. is most pleased at the results of over a year's study. 38 Nov. 22, 1935 Paulger told C.S.H. the capital of the Transamerica was not impaired nor was that of the Bank of America. 39, 40 1935 Nov. Giannini wired C.S.H. complaining that the New York papers said his petition had been pending for over a year and saiu Morrill, Governor Meyer's friend, was responsible for it. C.S.H. in his letter praised Aorrillts loyalty and ability. 40 Nov. 25, 1935 See Scrap Book Minority interests in Portland National Bank ask hearing to protest against permit to Transamerica Company. 43 Nov. 28, 1935 Spent whole day vdth staff discussing standard conditions in voting permits. 44 Dec. 2, 1935 Conferred with staff two hours. Finally agreed on standard conditions, form of agreement, instructions to Feaeral Reserve agents, etc. C.S.H. sent letter to Board approving this. By 4 P.M. all members had OIK.Id this letter, including Governor E2cles and it will probably be adopted without a formal meeting of the Board. 44 Dec. 3, 1935 Giannini wiered C.S.H. on Tuesday, Dec. 31, 1935, that he would pay off 5 millions of the 22 millions of the note this week and would not reduce his collateral. A great victory for our Board! 62 Jan. 1, 1936 Last aionday the iaarine Midland wrote asking for a temporary voting permit, as they were unwilling to abide by the standard conaitions. They said their counsel was working on a draft of conditions they would be willing to agree on. Every point raised by them has been raised 131. Voting Permits (Contic) before, and they have had since November 9th to 3tudy these conditions. They question the legality of pr actically all of our conditions, and they pointed out that if they signed they would be liable to pay $350,000 in taxes on ground that they were doing business in New York. This was no new point, and if allowed, our Board could never get an agreement to do anything in the State of incorporation,--in this case, Delaware. C.S.H. wired refusal which every member checked. C.S.H. today brought it before Board meeting which unanimously a,Troved it. C.S.H. believes the Marine Midland is trying to stall matters in the belief that the new Board will be more amenable to pressure. 63, 64 Jan. 2, 1936 C.6.H. at office for the first time. Studies petition of National Shawmut Bank. See Special CounsJ1 123, 124 Feb. 6, 1936 0 •02t ball Street Journal See Federal Reserve Bank of Philadelphia 6 nalsh, Senator Indorsed Foster for Board. Jan. 28, 1936 l:arburg, Paul See Allis, H.P. 106 180 arren, Charles C.S.H. asked advice of, as to accepting position of Special Counsel. He strongly advised me to accept it. Jan. 27, 1936 107 V,e lunched with. March 29, 1936 147 See dinners Washington portrait, Rembrandt Peale Reynolds advised C.S.H. that if Mr. Pruyn originally paid $400 for it, he could return its value to the D. C. Tax assessors as $100. June 9, 1936 189 Washington Post See Leutrum, Countess 12, 260 45 weight See Hamlin, C. S.: Operation 161, 165, 169 Vest, Birnie See Miller, Mrs. Thurston 109 "hite House See Hamlin H.P. Dinners zi7, 49 Will, Frederic Says rumor is that C.S.H., Miller and Szymczak will be reappointed. Jan. 9, 1936 71 133. Williams, Constance (Lodge) Sends some beautiful flowers to us, at first I thought they were sent to me in my illness and I wrote and found she did not know of it. She replieu in a very sweet letter. April 11, 1936 148 'Allis, H. P. C.S.H. met, at Hay—Adams House. He called later and asked C.S.H. to give him a copy of his review of that part of li,arburg's book relating to the attempt to cut down the Federal Reserve banks. C.S.H. told him that the article in question was in the Board's files and that he could not give him a copy without consent of the Board. C.S.H., however, is now inclined to feel that it would not be improper to give a copy to Villis, as this article was checked up by Willis when it was written, and during the period of this controversy, voillis was secretary of the Board. Willis said C.S.H. originally gave him a copy which he has mislaid. He also told C.S.H. that the New York Herald Tribune had recently severely criticised the Board and that Leffingwell had written the editor to effect that it was the best Board since the System was founded. May 30, 1936 180, 181 Almer, Dr. See Hamlin, C. S.: Operation ilson,Dur. Ye took egg nog at house of, of State Department, in Georgetown. Dec. 8, 1935 57 .00drow Bertie lays a wreath on tomb of, and delivers a charming address. Feb. '46, 1936 135 Women's National Democratic Club H.P.H. takes part in a dialogue at dinner of. Feb. 9, 19F6 136 See Dinners. 134. Vgatt, Valter Told C.S.H. that Logan, Counsel of Federal Reserve Bank of New York, askeu him about retaining Newton D. Baker in a suit versus the Board involving the legality of its turning over to the Treasury certain gold bullion; that he told Logan to consult the Treasury—as in case of a decision against the Bank, the Treasury would have to ask Congress for an appropriation to.indemnify the Bank; that Logan consulted Olyphant, General Counsel of t'le Treasury, who said that if Baker were retained, the Treasury would take no interest in the litigation nor would it ask Congress for an indemnity, if the decision was against the Bank. He said Olyphant suggested retaining Leylin, a former Treasury expert, now in the firm of Covington and Atcheson. Logan accordingly retained Leylin and board approved. Jan. 10, 1936 73, 74 Advises Board it should take control over all National banks controlled by holding companies, in spite of the jurisdiction over National banks given to the Comptroller by statute. C.S.H. believes that if Board had followed such advice and have tried to enforce it, Wyatt would have backed down as he did in the Liercantile Trust Co. of St. Louis. Oct. *,,6, 1935 9 to 16 Congratulates C.S.H. on the wonderful manner in which he handled the voting permits, saying the staff were unanimous the Transamerica case could not be worked out unanimously, but that C.S.H. succeeded in getting an unanimous agreement. Oct. 6, 1935 9 to 16 Writes a memorandum protesting against the Board's policy in giving voting permits and saying neither he nor his staff would check letters carrying out such policy. %rites him a very kind letter to effect that the check of the staff had nothing to do with policy; that it merely certifieTto the correctness in form of the policy fixed by the Board. Oct. G, 1335 9 to 13 135. Wyatt, Walter (Contld) Mr. and Mrs. Wyatt lunched with us. He said he directed one of the assistant counsel to rewrite his opinion in the National Shawmut Bank petition, so as to incorporate certain points made by C.S.H. in his opinion as Special Counsel. Mar. 14 1936 137 See Voting permits Thurston said Wyatt was able but not very broad and that the Board needed C.S.H. as special advisor in law and policy matters. See Special Counsel Thurston 136. Young, Governor See Federal Reserve 126, 134 ank, Boston Young, Owen D. Thurston asked if, would not make a good chairman for Federal Reserve Bank of New York. C.S.H. said "Yes", an ideal man, but he feared he would not accept it, even if Case were out of it. Oct. 22, 1935 5, 6 Board voted not to reappoint, as Class C director, he having served over six years. Nov. 28, 1935 45 Advised Roosevelt to retain the present Board both from consideration of good of System and even from view of good politics. Dec. 28, 1935 59 (End of Volume)
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