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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
JIM!
,VOLISOC
1915 (Jan. 17) - 191
6 (Aug.30)
INDEX DIGEST
Adceptance credits
1. Brain Brothers.
Plan. 24, 25,
2. Federal Reserve
Board and Comptroller agr
ee that a national
bank can give a lin
e of, provided each draft
complies
with Federal Reserve
Act. 25
3e C.S.H. writes Gov
. Strong as above. 25
4. Elliott says Federa
l Reserve can't interfere
with discretion
of Federal Reserve
banks in discounting accept
5. Elliott says Board
ances. 26
might limit amount to be
invested in
import and export acc
eptances, but that power end
s there.
6. Gov. Strong asks
Board to strike,26
as :
Me litter of policy,
reference in letter to
rediscounts with Federal Res
banks. 25
erve
7, At Warturg's req
uest; this reference str
icken out.
8. Gov. Strong says has
not told bankers such accept
ances
could be rediscounted
with Federal Reserve banks.
9. C.S.R., assuming leg
26
ality, thinks Federal Res
erve banks should
be cautious as to inv
esting Federal Reserve fun
ds in
munitions paper. 26
10. C.S.R. sends letter
to Gov. Strong supplementar
y to letter
of July 15. 27
11. C.S.R. sends anothe
r letter to Gov. Strong
dated July 28th
forbidding renewals of dra
fts
und
er
let
ters of credit. 28
12. Warburg writes frau
New 'fork that such renewals
are valid
and that letter of Jul
y 28th is erroneous. 28
13. Gov. Strong says let
ter of July 28th pretests
any agreements.28
14. Gov. Strong gives mem
orandum showing necessity for
such
agreements. 28
15. Memorandums sets out
that renewals as between dra
wer and
draw's are not illegal,
provided a new bill is giv
en and
old bill paid at maturi
ty. 28
16. Miller objects to mem
ber banks giving, or Federa
l Reserve
banks discounting accept
ances based on sale of
17. Miller claims Federa
munitions.a.
l Reserle banks can not dis
cou
nt
paper
where goods are to be use
d by a foreign Governmen
t.
Cites case of Russian Amb
assador. 29
18. C.S.E. points out rea
son Board refused to permit
discount
by Federal Reserve banks,
in case of Russian
Ambassador, was bec:Ause
he todk credits and could
use proceeds for any purpos
e. 29
40111WINWIEWIMP
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Federal Reserve Bank of St. Louis
a.
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Acceptance credits (Cont.)
19.C.S.H. says foreign Governments can buy goods from
American manufacturers. 29
20. '(il1.4 claims Brown Brothers acceptances are not
liquid.
P inted out that they are to be drawn by French
banks, secured by Treasury notes, and that
French Government agreed not to prevent exportation
of gold to pay than. Most liquid. 29, 30.
21. Miller says they are, in effect, loans to French Government which might repudiate then and that renewal
agreement made them long term loans. 30
22. Replied that discretion of directors of Federal Reserve
Banks and member banks would care for this. 30
23. MillI says all munition exports should be paid for in
sh. 30
24.
Replied that our manufacturers will get cash from
Brown Brothers.
His suggestion would embargo exports. 31
25. =Lott says Board letter of July 28 not warranted by
his opinion of July 9; Olathe merely meant that the
holder could not be 1,22HO to renew; that if holder
is paid at maturity a new acceptance could be given. 31
26. C.S.R. prepares new letter to Gov. Strong.
Miller opposes it. 30, 31
C.S.R. sends tentative draft to Gov. Strong. 32
27. McAdoo writes C.S.H. approvi7 letter to Gov. Strong. 33
(
,28. McAdoo angry with Miller. 33
29. C.S.R. telephones fram Mattapoisett - after talking with
McAdoo in New York - to Willis to call meeting of
Board in N. T. to settle Brown Brothers agreement. 34
30. Allen wires C.S.H. meeting to be at Sub treasury, N.Y. 34
31. C.S.H. calls on Gov. Strong in N.T.
HO says agreement must be settled today. 34
32. C.S.R. goes to Subtreasury
Williams is there bat Warburg, Miller, and Harding
refuse to attend, claiming meeting should be at
Federal Reserve bank. 38
(
ail.
Williams, in name of McAdoo, changed place of meeting.15
34. Finally all assembled at Federal Reserve Bank. 35
35. Minority furious because meeting called at Subtreasury. 35
36. Harding presented new draft of letter to Gov. Strong
to which all, including Gov. Strong, agreed. 35
37. C.S.H. points out does not specifically authorise
renewals. 35
..-----'
38.
g says necessarily implies this. 35
39. NT. suggests clause that it is a modification of letter
of July 28, to which all agree. 35
40. Warburg tried to have whole letter of July 28 repealed,.
especially part stating that discount of such
acceptances was primarily for Federal Reserve Banks
to determine. Defeated. 36
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Federal Reserve Bank of St. Louis
N
3.
Acceptance credit
Cont.)
,41. W&rbuYg insists McAdoo should define policy of
administration as to discount of war munitions paper.36
42. McAdoo said no necessity for this as Elliott advised
Board could not legally forbid such discounts. 36
43. War burg admits Federal Reserve banks are not Government
banks but says so nearly so that we should caution
Federal Reserve banks as to discounting acceptances
based on war munitions. 37
44. Miller reads memorandum protesting against discount of
war munition acceptances, but admitted Board could
not interfere with member banks giving such acceptances.
37
Miller and Warburg both finally voted for letter to
Gov: Strong. 37
46. Gov. Strong explains about payment by foreigners for
purchases made in U.S. 37
Gov. Strong defends Brown Brothers agreement. 38
48. Warburg claims banks agreed not to finance munition
exports; Gov. Strong denies this. 38
49. Gov. Strong explains connection cf French Government
with the agreement. 39
750. Miller claims these acceptances are not liquid
. 39
Warburg admits they are liquid. 39
Gov. Strong points out that the contracts are no' made
with the French Government but with the individuals
who have bought our goods. 39
53. Warburg finally admits they are not a loan to French
Government and are legal if based on exports. 39
54. Warburg claims that national banks cannot legally renew
or substitute a new acceptance after the goods
have been delivered. 40
55. C.S.R. points out this is settled by Board's letter to
Governor Strong of this morning. 40
Warburg says Comptroller never intended to make such a
ruling. 40
j56.
57. Miller and Willis said such intent sae clear and
understood by 411. 40
58. Warburg, by ceaseless talking, holds up meeting knowing
that C.S.H. mast leave at 5:p.m. 40, 41.
/59. Warburg claims no renewal or substitution legal after
delivery to purchaser, under terms of Regulation J 40
60. Gov. Strong points out that Regulation J has to do only
with Federal Reserve bank discounts; has nothing
to do with the power of member banks to accept, which is the only question now before Board. 40
Gov. Strong Balm that under Warburg's interpretation
at Regulation J, there could be no renewals even
though collateral be taken. 41
C.S.R. gives up trip home as Warburg is so intent an
dragging out meeting. 41
63. C.S.H. says will call meeting in Washington tamorraw
morning if matter not settled today. 42
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Federal Reserve Bank of St. Louis
4.
Acceptance credits (Cont.)
64. Gov. Strang says Warburg interpretation of Regulation J
absurd; would:permit only documentary drafts. 41
,
/65.
Warburg
denies this. 41
// ,/
66. Regulation J adopted while C.S.H. in west. 41
67. Williams, sent for by C.S.H., returns and says he did
intend to allow renewals after goods delivered. 42
",
I
68. Warburg finally admitted renewals were legal and
withdrew his objections. 42
.
Warburg
then claimed Federal Reserve Banks could not,.
-) 69.
,
mmier Regulation J, discount acceptances after
7
delivery of goods. 42, 43.
70. Gov. Strong said he had read Board's letter to Brown
Brothers who were satisfied with it. 43
71. Gov. Strong tO.14 Brown Brothers he could give no assurance
as to discounts by Federal Reserve banks. 43
,Z. Warturg said Secretary Bryan disapproved French loan
in an interview, August 15, 1914, as violating
spirit of neutrality 44 (See scrap boOk 91 - 21)
73. McAdoo prepares letter to minority calling them to
mocunt for refusing to meet in Sub treasury. 45
\,...14
.1. McAdoo sends letter with changes suggested by C.S.H.
,
45,48.
75, C.S.H. discusses Regulation J with Gov.Strong. 45
76. Willis did not go to Subtreasury but stayed at
Federal Reserve Bank with the others. 46
( 77. C.S.E., Williams, and Miller file memoranda as to the
Subtreasury meeting. 46
78. Miller says no discourtesy intended to McAdoo; if MAW)
,..--...
had been present, he would have attended, 47
79. C.S.E. writes McAdoo statingposition of Warburg et ale
as to right of Secretary of Treasury to change call
for meeting. 51
8 , Harding says McAdoo had no right to change call but he
would have gone to Subtreasury had he not deemed
it wise to keep in with Warburg and Miller to head
E
tr
off any pro-Grasan agreement they might make with
one another. 51
Harding says Miller has radically changed his view' aa
to discount of acceptances. 51
82. Miller says no doubt of propriety of egportirg munitions
or af right' of Federal Reser• Banks to discount
(,.
1
acceptances based on them . 52
83. McAdoo accepts statements of Warburg, Miller and Harding
as to New York meeting. 58
84. Gov. Strong urges broadening of Regulation Jo 59
85. Miller said be originally drew Regulation J. 59
86. Miller said he had reached end of his usefulness. 59
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Accpptance credits (Cont.)
,87. Miller says Board has surrende
red to Wall Street. 69
N
(88. Miller and Warburg object to change in
Regulation J. 59 .)
89. Warburg says no objection to a banker draw
ing for a foalign
Government. 59
90. Board votes to amend Regulation J so that
either the
seller or the purchaser can draw - even a fore
ign Govt. 59
Warburg says Brain Brothers agreement sas guar
anteed
by French Government; that FrenhGovernment
did
not merely agree not to obstruct exportation
of gold. Gov. Strong denies this. 298
See - Federal Reserve Board.
Acceptance regulations
Miller says Warburg has written a lett
er on, severely
criticizing C.S.R. 69
Warburg gives C.S.H. a copy of this lett
er. 79
(For C.S.R. reply, see scrap bodk94 - 175)
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Federal Reserve Bank of St. Louis
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Acceptances
C.S.R. claims disocunt of acceptances based
on movement
between two foreign countries not permissible.
7
Warburg very bitter
Vote:
C.S.B., Miller & Williams
No
Warburg and Delano
Tee
7
Warburg files protest. 8
(Counsel later ruled such acceptances could
be discounted)
Open market purchases
See - Bank of England, Foreign Agent
Bills of exchange
Addresses, C.S.H.
Bankers Club, Cleveland. 229
Federal Reserve Bank, Atlanta. 229
Georgia Bankers Association. 229
Japanese Ambassador's dinner. 155
Indiana State Bankers Association. 74
Manassas Industrial School. 229
Philadelphia Chatber of Commerce. 114
Republican Club of N. T. 134
San Francisco trip. 8
South Carolina bankers Associati on. 236
Union Trust Company, Springfield. 194
Western Economic Society, Chicago. 129
r • ;":1
Agricultural staples
See - Open market powers
6.
Aiken, Gov.
Says McAdoo is right in objecting to an organisation of
Governors and to the protest of Governors against
pressure from Board as to discount rates. 173
Ailes, M.
Declined to work with New York bankers in securing removal of
Glass from Banking and Currency Committee. 133
See - McAdoo
Albert, Dr.
Talks with, Warburg.152
Aldao, Dr.
See - Pan American Financial Conference
Aldrich, BOMA
Disliked Warburg - said he did little or nothing in preparing
National Reserve Association bill. 130
,.
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11440°41 Ct.
Aldrich-Vreeland notes.
C.S.N. tells Williams he will fail as to penalty imposed
an Riggs bamk for failure to file list of securities
available for. 16
See - McAdoo
ftlAi .U04
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Federal Reserve Bank of St. Louis
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Allen, S.
Sent telegram authorising increase of rates
Federal Reserve
Be* of Manses City, an Delano's order without Board
knowing it. 215
Tells C.S.N. that printed form for circulating letter no
.
longer bad his (C.S.R.) name an it. 217
See - Riggs bank
Amendments to Federal Reserve Act
See - Clearing system
Federal Reserve notes
Open market powers
Williams
Anderson, Judge
198
See - Brandeis
Annual report
See - Government deposits
Williams
tar evisor-t ma"
4oloof
Ardrey
Bee - Federal Reserve Banks
Associate Members, Federal Reserve System. 192
See - Savings banks
State banks
Warburg
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Federal Reserve Bank of St. Louis
7.
Attorney General of U.S.
Federal Reservn BAInks
Not Government banks. 23
Officers of, not officers of U.S. 23
May discount any acceptances which member banks may
lawfully give. 24
Federal Reserve Board,.
Moneys of, are public moneys and must be accounted for to
Auditor of State Department. 2
Can not ask opinion from. 23
Status of. Independent body. 23
One sentence cut out on insistence of McAdoo,
over protest of Assistant Attorney Gezeral
Warren, 22
Oan not cut down number of Federal Reserve Districts. 118
Asks, not to publish above decision for present. 121, 122.
Asks President to ask opinion of, on mandatory powers clearing system. 156
Secretary of Treasury
Can ask opinion of, as Chairman of Federal Reserve Bd.. 23
Warburg complains bsoause Board will not ask opinion of,
an neutrality etc. 126
Warburg says opinion of, as to cutting dcwn districts would
have been different had he
an a branch would have
been established in every district abolished. 164
See - Federal Reserve Board
Riggs Bank
At par, Section 16. 262
See - Harding.
Baltimore Trust Company
Harding agreed to take Presidency of. 184
Proposed merger fell through. Z84
Bank credits
See- Great Britain
Bank of ftgland, - agreement - Foreign agent
(See also, Governor Strong)
Governor Strong explains. 221
Buying bills drawn against exports. 221
Depositing bills with, whth will earmark gold received
in
payment. 221
Agreement strictly limited to bills. 222
Does not apply to investments. 222
Mutual guaranty of bills bought.
225
Will stabilise exchange. 225
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Federal Reserve Bank of St. Louis
8.
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Bank of England (Cont.)
Governor Strong says directors of, consider Federal Reserve
Act a, marvellous piece of legislation. 223
Makes possible cooperation between, and, U.S. to stabilise
exchange. 223
Bank of England has long wanted to make some such arrangement
but could not discriminate by choosing any one bank
in U.S. 226, 227.
Gov. Strong says Federal Reserve banks can not lose as
agresmsnt provides no obstruction to shipping gold at
ay time. 22?
Gov. Strong says Federal Reserve barks should agree with one
another to share burdens as well as benefits of agreement. 227
McAdoo replies to Warburg that no question of neutrality is
involved as Federal Reserve banks are private beats. 227
McAdoo favors principle of proposed agreement and asks
Gov. Strong to prepare a formal agreement for approval of
Board. 227
Agreei that this discussion is purely informal. 228
Rates ol bills purchased are to be fixed by agreement. 228
Warburg insists that State Department be asked as to
neutrality of proposed agreement. 294
Says will vote for it if State Department says not inconsistent
with neutrality.
294
Says, however, Bank of ngland is not proper agency. 294
C.S.E. points out neutrality not involved as agreement not
to take efffectuntil Atka war, unless put into
effect by Federal Reserve Bank of N. Y. 294
C.S.H. agrees Board must approve before agreement put into
effect uisigi war. 294
Most at members feel now is time to buy foreign bills and
build up foreign balance with, against which exchange
can be sold if tide tarns against U.S. 294
C.S.R. points out that in former discussion Governor Strong
said purpose was to buy domestic bills drawn against
our exports to stabilise exchange, while present
memorandum of agreement is against buying such bills
because of risk involved, and that only foreign bills
should be purchased. 295
Warburg replies that individual banks would buy long bills
and Federal Reserve Bank could bay checks and cable
drafts from them based on these long bills and thus
create balances abroad. 295
Warburg says Bank of England could invest these balances in
British bills *Moll would accomplish same result as if
the Federal Reserve banks had in first instance bought
domestic) bills drawn against cotton, grain, et.. 295
Warburg says Federal Reerve bank can lawfully guarantee bills
bought for Da* of England, as it could indorse such
bills on sale. 296
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Federal Reserve Bank of St. Louis
9.
Bank of England (Coats)
Warburg says Elliott has ruled informally that gold
earmarked with, could not stand as reserves for Federal
Reserve banks. 295
Delano agrees with this. 296
Warburg says would be folly to tie up reserves of Federal
Reserve banks in investments which can not ccunt as
reserves. 296
Warburg says the small amount we could spare for such purpose,
say 25 millions, - could not stabilise exchange. 296
Warburg is evidently bitterly opposed to agreement and is
using neutrality simply as a blind. 296
C.S.H. says felt originally that Federal Reserve banks were
Government banks, bat accepts opinion of Elliott that they
are not. 296
C.S.H. says we have agreed to Brown Brothers credit, and the
gold deposits made by Bank of Netherlands, and sees no
legal obstacle to approving this agreement. 296
C.S.H. says has no objection to asking State Department as to
neutrality. 296
C.S.H. says, however, that if we do, we should not vote on the
agreement until we obtain decision from State Department. 297
Williams and Delano insist on voting first and then asking
opinion from Mite Department. 297, 298.
Williams moves to postpone whole matter. 297
Motion lost, only Williams and Miller voting aye. 297
Finally ananimoasly voted to approve agreement on principle,
reserving right to determine whether it shall go into
effect during wer and subject to opinion of State Department,
as to neutrality.
297
Board appoints Secretary McAdoo, C.S.H. and Hardt rg a
committee to consult State Department. 297
McAdoo wants to see copy of Board resolution before Committee
interviews State Department. 297
Williams tells C.S.H. agreement will politically injure
administration. 298
C.S.H. says great weight must be given to recommendation of
Committee of Governors and to judgment of directors of
Federal Reserve Bank of New 'fork, as to necessity for
immediate action. 298
Warburg agrees that if entered into at all better to do it
nom as may not be able to get such a favorable agreement
later. 298
Harding Mks C.S.H. to consult with Secretary Lansing before
formal interview with Committee. 299
Harding says to tell Lansing to consult with Cabinet before
final answer. 299
C.S.H. tells Williams who does not favor this. 299
McAdoo at first we. opposed to interview with State Dept. 299
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Federal Reserve Bank of St. Louis
10.
Bank of England (Cont.)
McAdoo says statement of Curtis, - Counsel of Federal
Reserve Bank of New York - that he favored the agreenent
is not true. 299
Says does not know enough about the agreement to favor it. 299
Thinks at any rate it should not be approved now. 299
Copy of Board resoition. 299, 300.
Resolution introduced by Warburg. 299, 300.
Bills of exchange
See
Strong, Gov.
Bank of France
Gov. Strong discusses agreement with, similar to that with
Bank of England. 223
Bank of Netherlands
Said to be issuing notes, based on earmarked gold in Federal
Reserve Bank of New York. 222
Can buy German securities in this way without regard
interference by Great Britain. 222
C.S.H. favors Bank of England agreement on analogy of,
.
earmarked gold. 296
Bankers acceptances
Jay submits change in Regulation R so that bankers statements
shall be made only to the Governor and Federal Reserve
Agent and not to be shown to directors. 96
C.S.H., Williams, and Miller objected. 96
Warburg and Delano favored. 96
Bankers Club, Cleveland
C.S.H. speech. 229
Bernsdorff
See - Lansing
Bills of exchange, Open market Powers, Regulations.
Warburg opposes issuing any regulations, especially on
domestic acceptances. 61
C.S.H., Harding, and Warburg appointed committee to prepare
draft of. 62
C.S.H. prepares a draft. 62
Warburg and Harding oppose, and present report against
any
open market powers. 62
Shy domestic and foreign acceptances should be split Alp
C.S.H. prepares another draft and presents dissenting report. 62
Warburg says he will openly fight against any powers for
domestic acceptances. ledaral Reserve banks should
not be allowed to compete with member banks. 62
Warburg prepares draft covering trade acceptances but says
he will vote against it. 62
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Federal Reserve Bank of St. Louis
11.
Bills of exchange (Cont.)
Gov. leacher favors regulations including domestic acceptances,
to help Federal Reserve banks earn expenses. 65
Gov. MtDougal objects, especially as to domestic acceptances,
as the competition would antagonise member banks. 65
Gov. Blancher and Gov. McDougal finally agreed that the power
to buy domestic bills should be given by regulation. 65
Warburg very angry; said we would soon hear from the banks. 65
Warburg and Harding file insulting report against C.S.H.
draft for purchase of domestic bills. Says C.S.H. thinks
more of earnings than of safety of Federal Reserve system. 67
Purchase in open market will give Federal Reserve banks right
to deal directly with individuals as do European
central banks. 68
Warburg writes to Federal Reserve Agent Curtis at Boston as to
purchase of domestic bills but does not tell Board of
this.
68
Glass tells Warburg if Board does not frame open market
regulations cowering purchase of bills, he will attack
it in Congress. 70
Warburg and Harding file a report whieh the majority favored;
it consisted of a letter to Federal Reserve Agents as
to open market purchases, in lieu of a regulation. 70, 71.
They gave C.S.H. no notice of any meeting at Which this
report was agreed to. 70, 71.
C.S.H. objects to not being notified. 71
They reply no official meetings or reports. 71
C.S.H. opposes letter, but admits it does give some open market
powers. 71
C.S.R. then files minority report. 71
Board refers matter back to committee. 71
C.S.H. says Glass said a letter in lieu of regulations would
not be satisfactory. 71
Delano said Glass told him it would be satisfactory, as he
recognised the danger of a regulation at present time.71
Commit)ee votes (C.S.H. contra) to report in favorof the
Letter in lieu of regulations. 72
In Board C.S.H. mowed to substitute minority report
C.S.H. and Williams aye
Delano, Warburg and Harding - no.
72
On final vote, C.S.H. voted aye as it was all he could get. 72
Warburg claimed Federal' Reserve banks did not want power to
purchase domestic bills but Atlanta has asked approval
of a rate, and Philadelphia and Cleveland also favor it. 78
Gov. Strong favored it but said it should have been in shape
of a regulation and not a mare letter. 78
New Orleans Branch bank alike authority to purchase state bank
acceptances in open market. 78
Harding tells C.S.H. may be possible to amend regulations to
allow this, exactly reversing position taken in
majority report. 78
C.S.H. favors such an amendment. 78
u.
Bills of exchange (Cent.)
Warburg bitterly mike haw C.S.H. could favor it, exciting,
as it would, division among-member banks. 78
C.S.H. explains his views to Warburg. 83
Board voted to permit New Orleans branch to purchase state
bank acceptances in open market. 90
Warburg alone voted against it. 90
Question of a general regulation postponed for present. 90
Harding double crossed Warburg. 90, 91.
Board votes unanimously to issue regulation covering open
market purchases of state bank acceptances secured by
carmodities. 91
?organ says open market powers will annoy and irritate meMber
banks because of competition. 110
C.S.H. points out certain obscurities in the open market
regulations. 127
Warburg very ugly. 127
Miller moves appointment of committee to prepare complete
draft of regulations covering all open market powers. 128
Miller and Harding appointed. 128
Warburg bitterly opposes regulations regarding foreign bills;
said members knew nothing about it. 128
See - Bank of England, Foreign Agent
Open market powers
. . .
Bolling
see - Federal Reserve Bank, Richmond
Bosworth, Federal Reserve Agent
See - Federal Reserve Bank, Chicago
. . .
c:4
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Federal Reserve Bank of St. Louis
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Brandeis, L.
Anderson asks C.S.H. to testify before Senate Ccmmittee in
favor of confirmation of, as Associate Justice of
U.S. Supreme Court. 198
C.S.H. is willing but thinks it foolish out of five witnesses
to take three frcm administration. 198
Anderson fully agrees. 198
C.S.H. will ask R. M. Morse to testify. 199
C.S.H. suggests Winslow warren. 199
Burleso0 says Lodge says will vote for. 199
Lodge fears Jewish vote. 199
Anderson finds difficulty in getting witnesses. 200
C.S.H. says will testify. 200
Anderson thinks it better not to call an administration man. 20Q
C.S.H. says he and H.P.H. are working for. 200, 201.
Anderson very gratified to C.S.H. 201
C.S.H. controversy with Austen Fox over, at dinner at
Senator Weeks. 201
Fox said Samuel Warren was in doubt as to his position as to
his brother but, wrote him long letter to reassure him. am.
C.S.H. talk with Fox. 202
I
13.
Brandeis, L. (Cont.)
C.S.H. says has had experien
ce with judicial fairness of
(Riggs case) 202
See - Riggs bank
•
Broderick
Report of, on Federal Riser is
Bank, Atlanta
C.S.H. elks Miller what, cont
ains on which he bases
opinion that Federal Reserve Ban
k of Minn. should
be discontinued. 88
Board writes stiff letter to
Federal Reserve Bank of
Atlanta, based on. 92
Report on Federal Reserve Ban
k of Boston
C.S.H. negatives Warburg's clai
m that, shows necessity
for paying back capital. 193
Explains reason for making Fed
eral Trust Company of Boston
mark down its assets. 219
;plains New York law as to same
. 219
Criticises Thorndiks, Bank Supe
rintendent of Mass. 219
See - Federal Reserve Board; cutt
ing down.
Bryan, Secretary
See - Acceptance Credits.
Burke, U. S. Treasurer
Board replies to attack of, an
Federal Reserle Bank of
Minn. by announcing that transfer
to Chicago is not
under consideration. 89
C.S.H.-says if Board abolishes Fede
ral Reserve Bank of
Minn. will help, in his race for sena
te. 94
Miller says McAdoo inspired Gov
. Burkels attack. 106
Delano says be knows this is true
and McAdoo won't deny it.106
McAdoo writes Delano and Miller
an what authority they said
this. 109
•
See - McAdoo
Delano says talk with Jaffray abo
ut abolishing Federal
Reserve Bank of Minn. was confined
to Burke's suggestion. 10
see - Federal Reserve Board; cutt
ing down.
McAdoo
Burton, Senator
Speaks at Chicago with C.S.H.
129
Bush, Irving
Was one of New York leaders in reserve
bank bill. 129
Tells Laughlin New 'fork bankers are
raising a slush fund. 130
Laughlin says Chicago bankers were
more bigoted than
Tanderlip and. 134
•
...
44
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Federal Reserve Bank of St. Louis
_.-
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Capital. Return of paid in.
See - Federal Reserve banks
Carver, Eugene
See - C.S.H.
Catholics
Lansing says real reason for opposition of, to Wilson is secret
agreement of Germany to give Pope of Rome temporal power
if Germany wins war. 176
Central bank
Delano and Miller say Federal Reserve system depends on
New York and Federal Reserve Bank of New York is
practically a central bank. 184
Harding says Federal Reserve Bank of New York ought to be
the central bank cf U.S. 184
Chairman of Federal Reserve Board
See - Acceptarce credits
Federal Reserve Board; Governor
McAdoo
Class C Directors
In future, National bank examiners not to be eligible
for Class C Directors or•Deputy Federal Reserve
Agents. 164
Clearing system
Committee of Board thinks voluntary system will work
satisfactorily. 64
Cotton, J. P. advises that Federal Reserve Banks can
receive checks cn state banks only for collection. 64
Cotton advises that Federal Reserve banks can not pay
from reserve deposits checks on member banks or
make them keep balarces for this purpose. 64
Warburg favors optional plan. 127
Warburg says city should, be made a reserve city where
banks refuse to join. 127
Committee of Federal Reserve Agents and Governors favor
mandatory system. 127
Elliot and Cottoradvise that Board has no power to put in
a mandatory system. 127
C.S.H. thinks Elliott and Cotton wrong. 127
ilrefttri very bitter at C.S.H. 127
Comaittee of Federal Reserve Agents and Governors demand
a square ruling on mandatory system. 128
C.S.H. wants opinion of Attorney General but Delano oppimes
128
C.S.R. admits Board has progressed as rapidly as possible. 127
0
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Federal Reserve Bank of St. Louis
Clearing system (Cont.)
Willis criticizes Elliott's draft of letter to
Attorney General on mandatory powers. 156
Elliott in draft asked Attorney General if Federal
Reserle Board could force banks to deposit all
items in Federal Redsrve banks. 156
Willis sail latter queiitionrot necessary; only que3tion
is: - can Board canpel Drawee barks to clear. 156
Board changed letter accordingly and sends it back to
committee. 156 '
C.S.H. revises letter with egproval of Glass and Willis
and sends it to President. 157
C.S.H. tells Glass if favorable ruling given, Board will
go ahead. 159
Glass says cleaing system should have been put in long ago.
159
C.S.H. says opinion of Cotton and Elliott is responsible
for the delay. 159
Glass says intent of Congress was to give mandatory
power. 159
Glass says if Attorney General says no mandatory power we
must go to Congress. 159
C.S.H. thinks Willis is responsible for Glass's worries. 110
C.S.H. amendment. Stamp tax on checks in Intesstate
Commerce of banks not joining clearing system. 179
Millor moves to postpone Connecticut redistricting case
until clearing system established. 194
Conference as to collecting checks through Postmaster. 260
See - McAdoo, C.S.H., Herding and Burleson present. 260
C.S.H. suggests opinion from Attorney General Agreed.260
Burleson refuses as is sure he has the power. 260
Burleson says Harding told Eitchin he did not
approve of Burleson ardor. 260
Harding denies this. 260
Board directs C.S.H. to telephone Sen. Simonds and
Iitahin: 1. Board has asked Burleson to suspend
order for present. 2e1
2. Board meantime will make arrangements for
bonding of Postmaster, insurance, etc. 261
3. Board will give hearing to Simons and Kitchin
261
Harding admits telling Eitchin that he can ovals
Bute son order by making checks payable in
N. T. exchange. 261
Kitchin agrees to put objections in writing, the
Board meantime to complete arrangements for
bonding and insurance. 262.
Eitchin given bearing.
Says 6000 state banks will close if order
enforced. 262
Says "Patrons" Sec. 16 refers only to member banks
263
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Federal Reserve Bank of St. Louis
16.
Clearing system (Cont.)
Conference as to collecting checks through Postmaster (Cont)
Kitchin given hearing (Cont.)
Present interpretation of Board will make North
Carolina Republican. 263
Harding says Board could suspend collection of such state
bank checks without injury to. 261
Harding suggests clearing members who may deduct reasonalle
exchange charges. 261
Agreed to consult Glass. 261
Glass agrees to clearing members; is very bitter against
Kitchin. 262
Harding favors striking out "at par" in Section 16 if right
to collect through Postmasters is enforced. 262
Harding draws amendment as above. 264
Harding says Glass seems to favor his amendment. 266
C.S.H. will oppose it. 266
Harding prepares new amendment providing for clearing members
not striking out words "at par"
267
Commercial paper
Miller says paper of ultimate consumer is not eligible for
rediscount. 29
See - Open market purchases.
Committee of Federal Reserms Board
Executive committee prepares list. 97
No changes. 97
Warburg (not on committee) plus two of committee make new
draft. 97
C.S.R. dropped from Boston committee. 97
Williams says C.S.H. has quietly "slipped off" from Boston
committee. 97
C.S.H. writes Willis he will remain on Boston committee. 97
In new plan, Warburg and Delano take Ritmo New York,
Philadelphia, Cleveland, Chicago and Minneapolis. 97
Harding and Miller take other. 6 97
Warburg never consults C.S.R. about Boston committee. 97
Competition with member banks
See - Bills of exchange
Federal Reserms barks; dividends
Commodity paper
McAdoo to make Government deposits in Federal Reserve Bank*
to discount cotton paper at low rate. 54
Wants loans conditioned on specified low rates to customsrs.
Warburg protests. 54
C.S.R. feels such conditional rates should be adopted only
in cases of emergency Which does not now exist,
as member barks have plenty of money. 54
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Federal Reserve Bank of St. Louis
17.
Cosnodity paper (Cont.
)
Warburg suggests con
pramise - issue of appropriate reg
ulations
to insure customers
getting benefit of the lam
rediscount rates. 54
McAdoo agrees. 54
Harding says does not
believe in, but unwilling to be
held
up as a Judas by Sou
th. 55
C.S.H. thinks pure pol
itics on McAdoo's part. 55
C.S.H. agreed with War
burg better to let Federal Reserve
banks fix maximum rates
banks can charge customers. 58
In view of the exigency
Board. voted itself to fix the
rates, provided austan
er not charged over 6%. 58
Warbu.rg and Miller voted
No. 58
Miller writes Harding
approving deposits in Federal Res
erve
Barks for commodity rat
es. 60
McAdoo wants to foraed
rederal Reserve banks to put in
commodity rates. 61
Warburg objects. 61
Bound to call on Federal
Reserve Balks of Boston, Minnea
polis
and Kansas City for rea
sons for refusal to put
in coainodity rides. 61
Gov. rancher and McDougal
oppose comodity rates. 64, 65
Federal Reserve Bank of Bos
tonputs in a 30 rate. 65
Board votes, on C.8.31, mot
ion, to hold up approval until
Board hears from San Franci
sco. 65
Harding said we had fixed
$% rate for south and should now
drop matter. 65
Harding says McAdoo is playing pol
itics. 67
Delano prepares report condem
ning Governmert deposits as
a purely political move.
69
McAdoo said to have approved
use of Government deposits in
Atlanta for purchase of warran
ts. 84
Comptroller of Currency
C.S.H. believes should be put
directly under Fedensl
Reserve Board. Sept. 1, 191
5.
58
Would never have been pit on
Board but for friendship of
McAdoo. 58
See - Federal Reserve Board
Williams
...
Comttoller of Treasury
Rules Williams entitled to sal
ary claim. 170
Dispute in Board as to C.S.H.
asking ruling fro
m. 171, 172
Confidential statements
See - Bankers acceptances
•
•
I
Congress
C.S.H. favors amendment providing
for direct appropriations
try Congress for Federal Reserve Boa
rd expense. 179
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Federal Reserve Bank of St. Louis
IS.
Connecticut banks. 194
See - Redistricting
Contraband
Be. - Cotton
Great Britain
Harding
Cotton
Harding tells Board Of conferences with
sir Richard Crawford
on the subject of cotton being made contraba
nd by
Great Britain, Tuesday, August 10, 1915
at New York
meeting. 43
Said from talks with Sir Richard he had
no dcubt Great Britain
would declare it contraband.. 43
Said he told Sir Richard that if it must
be done, should be
done before crop begins to move. 43
Same allusion to fact )hat Harding held these conferen
ces as
a member of Cotton Committee of Board. 43
No such authority ever given to cotton Comm
ittee. 44
Matter never acted upon by Board, official
ly or unofficially 44
Harding asked, purely as an individual.
44
C.S.H. ally knowledge of matter cams from Will
iams a month
before. 44
Williams said some one, I think Mr. Price,
was taking matter
up with British ftbassy. 44
Williams asked C.S.H. to lunch with Hard
ing and Sir Richard,
but C.S.H. declined saying this matter was pure
ly
personal with Harding and not in any way offi
cial. 44
Harding said State Department asked him to take
up the
matter oinafficially with Sir Richard. 44
Harding gave the impression that some agreemen
t might be
entered into with Great Britain as to cotton "latc
h
Germany would regard as a direct breach of neut
rality. 45
Harding confers with President Wilson as to
his cotton
conferences with Sir Richard. President Wilson full
y
approved them. 51
British Ambassador tells C.S.H. that his represen
tative is
still here, in case of any further break in cott
on;
speaks of splendid work of Harding. 153
Harding says he himself wrote the proclamation
of Great Britain
making cotton contraband. 213
See - McAdoo
Cotton, J. P., Special Counsel.
Advises redis‘ricting Committee that Board has powe
r to
abolish Federal Reserve districts. 92
Discusses redistricting plan with Miller. 115
laliott said to have changed opinion and to now agre
e with
. Cotton. 123
Advises Board can not put in a mandatory system of
clearings
127 159
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Federal Reserve Bank of St. Louis
19.
Cotton, J. P. (Cont.)
Advises Board that Williams is entitled to payment of his
claim for salary. 170
See - Clearing system
Treasury domination
Williams
Cotton paper
See - Cammodity paper
Government deposits
Coughlin, Dr.
Lawler of Greenfield tells, a friend said J. H. O'Neil
tall him coantry would never be prosperous until
Wilson administration swept oat of power. 218
Counsel of Federal Reserve Board
See - Acceptance credits
Cotton, J. P.
Elliott
Federal Reserve Board; cutting down
Crane, Charles R.
C.S.H. dines with, and Col. House at Woods Hole. 53
Crawford, se. Richard
see - Cotton
Credit statements
See - Bankers acceptances
Credits
See - Great Britain
Crops, Moving of
gee - Commodity paper
Government deposits
McAdoo
Curtis, J. F.
McAdoo says statement of, that he approved the agreement
with Bank of England is not true. 299
-DDay, Mr. Justice
Justice McReynolds says wants war because of Lusitania. 12
Decker
Willis says redistricting Committee consultdd, about
abolishing Minn. bank. 85
Miller says, trying to scare Board as to Wisconsin banks
petition. 292
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Federal Reserve Bank of St. Louis
SO.
Delano* F. A.
Thinks Sec. 13 includes discount of acceptances based on
goods from one foreign country to another. 7
Goes to N. T. and Marblehead to see Morgan. Evolves
a plan as to foreign credits. 27
Did not consult C.S.H. and had no authority from Board. 27
Warburg bitterly objects to this secret conference. 36
C.S.H. tells McAdoo that Delano works hard, is absolutely
honest, and takes a radical ground as to clearings
and acceptances. 63
Prepares report condemning AcAdoo for deposits in Federal
Reserve banks, - a purely political move. 69
Thinks my drop matter. 69
Loaves for Chicago. 86
C.S.H. thinks goes to consult with Federal Reserve Bank of
Chicago as to abolishing Minn. Reserve Bank. 86
Hopes administration will not try to make political capital
out of Federal Reserve system, as woull make
Republicans denounce the Federal Reserve Act. 88
Says Miller was a fool to blurt out about possibility of
abolishing Federal Reserve Bar* of Atlanta. 88
Harding says will drop matter of cutting down Federal
Reserve Banks, provided President Wilson sends for
Delano and asks him not to press it. 95
C.S.H. goes to Annapolis with Mr. and Mrs. Delano* but
Delano avoids speaking of plan of cutting down number
of Federal Reserve Banks. 99
Delano files report of Committee, Monday, Nov. 15, 1915. 100
Very ugly because Sec. McAdoo* C.S.H. and Williams ask
reasonable time to consider Committee report on
cutting down gederal Reserve Banks. 100
Says McAdoo has had plenty of time in which to consider it
and has talked it over with others. 100
C.S.H. says first had copy of report last Saturday. 100
Says C.S.H. etc. endeavoring to delay matters. 101
Moves for meeting tomorrow, Tuesday, to take up report
and vote on it. 100
Says unqualifiedly ccmmittee had not agreed 'on any specific
plan for cutting down Federal Reserve banks. 101, 102, 120
C.s.H. asks if Oomm441 had not prepared a map showing
reduction of districts and Delano after some hesitation
said there had been 8 or 9 drafts of report and 8 or 9
maps prepared. 102
C.S.H. says of doubtful propriety for a Committee to bring in
other members to obtain majOrity agreement before
reporting to Boarl, and Del4no turned an him as if
intending violence and damanlal what D.S.H. meant. 102
C.S.H. started to repeat statement when he yelled out
102
"I heard it9
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Federal Reserve Bank of St. Louis
al.
Delano, F. A. (Cont.)
Than said in most threatening manner, "What do you mean
by itl" 102
C.S.H. repeated statement. 102
Delano says Cissmittee has been treated in most shameful
manner. 102
Says - "You do not want to discuss this question honestly1" 102
C.S.H. asked if Members of Board not on Committee had not
been consulted as to any specific plan of redistricting
and he yelled "NW
102
Later Delano said he knew Committee had a majority of Board
in favor of instructions to report a plan. 103
Finally agreed to ask McAdoo when he could attend a meeting. 103
Says has not Wiwd with any outside person or banker as to plan
104
Says McAdoo told same one that one Federal Reserve Bank would
be abolished, and that he won't deny it. 104
Votes against C.S.H. resolution calling for the evidence an
which report of Committee is based. 104
Says will give all details at meeting Monday but refuses to
give them now. 104
Violently app.'s.. Williams motion to have stenographer
take down minutes of Monday meeting. 105
Unless Noazd will vote that in future all meetings shall be
reported stenographically. 105
Voted to .table Williams motion. 105
Says again will give all evidence at Monday meeting but
declines to give it now *to be shot at." 105
Says we are not acting in good faith, are not honest,
pettifogging, playing for delay, etc. 105
C.S.H. says asks only one week to study evidence which Committee
promises to reveal an Monday. 106
Says he knows McAdoo inspired attack of Gov. Burke on
Federal Reserve Bank of Min .
- 106
Says copy of report should be sent to Houston. 107
C.S.H. says the statement in the report cf want ox confidence
in Federal Reserve System might disturb country and
perhaps cause financial trouble. 107
Will burst of hilarity frau Milano it ale as to this statement.
107
Attacks Williams, saying of course he would mover admit any
errors in decision of reserve bank organisation
committee. 10/
Says he never would admit he was in error as to anything. 107
Says again we had treated committee in scandalous manner
and were trying to prevent honest discussion. 108
Says Board could have discussed matter:
1. Legality. 2. Expediency
3. By pettifogging methods which W3 were
following unworthy of gentlemen and of Board. 108
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Federal Reserve Bank of St. Louis
Delano, F. A. (Cont.)
Said Elliott had changed views as to 1 and now agreed
with Cotton. 108
Said C.S.H. had said no lawyer of repute could have rendered.
such an opinion. 108
(See my letter to Delano correcting him and stating
just what I said.)
Said Senator Owen at Oklahana hearing said Board had this
power. 108
Said that if Board so instructed, the Counittee could report
a plan in 2 or 3 days. 108
Willis says statement of Delano that Committee had not
agreed
on any specific plan mz have been technically correct
at that mount, but that at one time Committee
agreed and had prepared a map accordingly, but that he
had. pointed out so maw objections the Coarnittee had.
become divided. 109
McAdoo demands of Delano his authority for statement that
he had. incited Burke to attack Minn. bank. 109
C.S.H. dictates letter for Williams to send Delano asking
that map referred to by Harding be produced at next
meeting. 109
Delano asks Federal Advisory Council if it has any other
suggestions to make, hoping evidently that they would
suggest cutting down of districts, but no such
suggestion las made by Council. 110
Doubts advisability of cutting down capital of 'Federal
Reserve banks as recomended by Federal Advisory Council,
but felt there were strong arguments for it. 110
Delano tells McAdoo C.S.H. did not quota him quits
accurately as to his charge that McAdoo incited Burks. 111
C.S.H. explains to Delano why he had felt it his duty to
report his remarks to McAdoo. 111
Miller said it was Delano and not he who made the charge
. 111
Delano said he was the guilty person and he knewhe was
correct on faith of statement to him of two peraons. 111
McAdoo calls Delano to account by letter. 111
Record of last meeting read, and Delano insists on having
in
record his remarks as to 3 possible courses, etc. 111
Especially referrsd to pettifogging. 111, 112.
Admits he lost his timer and said much he ought not to have
said. 112
Said imputation that Committee was trying to steam roller
the matter maim him very angry. 112
Admits that he said the Committee had 4 votes for its report
but said Miller had not directly given any promise 114
to his vote. 112
Says Committee will make another report striking out certain
statements in original report and would ask to have it
substituted for first report. 112
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Federal Reserve Bank of St. Louis
Delano, F. A. (Cont.)
Says he will write Glass to send back copy of first report
Ccmmittee will substitute another for it. 113
Delano said Committee had, no tntention to crowd debate. 122
C.S.H. reminded Delano that what he called unreasonable
delay was request of C.S.H. and Williams for 1 week to
study report before voting. 122
Reminds Delanothat he said if not decided by Monday, Harding
would be away. 133
Delano says Beard has given consent to substitute the 2nd
for the first report. 123
C.S.H. says Board voted merely to receive the 2nd report. 123
Delano sayd Committee would not have asked any action except
by unanimous vote. (absurd). 124
Delano says Warturg will remonstrate against C.S.H. letter
to President. 124
C.S.H. says in that event he will write President fully. 134
Delano wants action on 5 pending petitions for redistricting. 125
C.S.H. opposes. 135
Delano moves that whole matter of abolish/ rg Federal Reserve
banks be tabled. Voted unanimously. 126
Opposes C.S.H. motion to obtain opinion from Attorney General
as to mandatory power under clearing system. 138
Delano reads Board a memorandum on necessity for harmony.
Admits he has done things he ought not to have done. 131
Board took up minutes of meeting on Committee report favoring
cutting dawn of Federal Reserve banks. 135
Delano favored a very short account. 135
C.S.H. says his action in asking President to ask opinion
of Attorney General was based on existing emergency,
just as Delano said hisumisit to Morgan was. 135
Delano said he did this only as an individual and C.S.R.
replied he wrote to President as an individual as well as
Governor. 135, 136.
Delano at first objected to C.S.H. request to have produced
last plan of Committee for cutting damn Federal Reserve
banks and for map. 136
Asked - "For what ulterior purpose do you want it?"
136
Delano finally produced 3 different plans and maps. 137
Willis said Delano enjoined secrecy on him when he
originally showed him a plan and map. 137
Delano goes into C.S.H. office and has a talk with C.S.R.
about question of abolishrsert of Federal Reserve banks. 138
Denies he tried to avoid C.S.H. on Annapolis trip. 138
At first took view that Hardingis ultimation to President
was purely personal but C.S.H. pointed out that Harding
said he had reported his talk with Williams in which he
gave the ultimatum to the Committee. 138
Warburg opposed Delanots wish for a short report of minutes
of Board; says Delano must not *forge the records." 138
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Federal Reserve Bank of St. Louis
34.
Delano, F. A. (Cont.)
McAdoo says President will shortly send for C.S.H.
and Delano
separately to talk over Board matters. 144
C.S.H. writes Delano if report contains any criticism of
him he should file complete answer.
145
Delano thinks Committee should look over report and perhaps
revise it. 145
Delano admits he talked with Jaffrey in Minn. an abolishing
Minn. bank but said it was with reference to Burks attack
.
147
Says if Sec. McAdoo had been present at meetin
g of Nov. 15,
there would have been no rog or misunderstanding! 147
Delano tells Willis that Warburg said that any one
opposing
cutting down districts to 8 was an enemy of Federal
'
Reserve system. 148
Delano sends C.S.H. new draft of 3rd report. 148
Williams moves Committee file all data on which conclu
sions
of original report were based. 148
Delano said Committee would be willing to prepare this.
148
Williams points out that Committee in its original report
said it had already had this data on hand. 148
Delano moved 3rd report should be considered filed subjec
t
to future changes Committee might make. Harding alone
voted No. 149
Presents report against national bank examiners serving as
Deputy Federal Reserve agents. 155
Said this means removal of Star& in New York. 155
Delano says Board need not remove Starik, it can cut down his
salary as examiner. 156, 157.
Delano agrees to C.S.H. letter to President as to clearing
system. 157
Glass 'lays thinks Delano honest but his surroundings have
been
such that he failed to grasp interests of the people
against the banks. 159
Delano dislikes C.S.H. because he can't control him, but
thinks he ,:an ttontrol Sec. McAdoo. 160
Delano reports in favor of Fleming as Deputy Federal Reserve
Agent, Kansas City. 170
Delano objects to Wtlliams salary claim. 171
Delano reads confidential letter to Sec. McAdoo opposing
Williams salary claim. 172
Miller moves amendment authorisirg Federal Reserve barks to
purchase notes secured by warehouse receipts covering
agricultural staples. 175
C.S.H. moves to amend by permitting purchase of notes bearin
g
signature of two or more responsible persons. 175
Firally tabled, but Delano says if he had to vote an main
proposition he would favor C.S.H. motion but thought it
should be postponed. 175
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Federal Reserve Bank of St. Louis
25.
Delano, F. A. (Cont.)
Delano says same rule should apply to Government deposits
in Federal Reserve banks as to deposits in national
banks, - equitabb dividion among the states. 181
Delano says whole Federal Reserve system depends on
Federal Reserve bank of New York, which is, practically
a central bank. 184
Delano reports against Williams salary claim. Criticises
C.S.H. for asking opinion of Canptroller of Treasury. 185
Williams indignant at Delanols report. 187
Said it contained false statem3nts and %as an attack on
his honor. 187
Williams said. would ask Delano at he meant and if no
satisfactory reply, would then and there thrask him
soundly. 187
C.S.H. writes Delano pointing out that Willis says Williams
did not object to having matter docketed. 188
C.S.H. explains matter fully to Delano. 188
Delano agreed matter should not be docketed before ruling
by Comptroller of Treasury. 189
Delano says will recast chronological table attached to
his report. 190
Says would advise Williams, if he were his own brother, not
to press this claim. 190
Says Glass is mach disturbed. as to matter. 190
Says originally opposed to Conn. bank petition, but that
banks had convinced him. 194
C.S.H. dines with Delano. 199
Delano at first opposes pottponement of Conn. banks petition
199
Says it will give C.g.H. an inducement to black clearing plan.
199.
Board voted to allow Williams salary claim. 202, 203
Delano said C.S.H. memorandum stated case fairly and was very
convincing but he had "got in so deep" he felt he must
vote against it
203
Selves to increase Elliott's salary. 203
Delano seconds Harding's motion to elect Hardy, Federal
Reserve Agent, Richmond. 206
Votes against Smith bill permitting purchase of commercial
notes in open market. 208
Finally offers no objection to C.S.H. signing vouchers for
Williams salary claim. 213.
Orders Allan to telegraph Federal Reserve Bank of Kansas City
authorising increase in discount rates without knowledge
or authority of Board. 215
Deliberately concealed this from C.S.H. 217
Very mad with Miller forhis opposition to cooperation between
Federal Reserve banks. 230
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Federal Reserve Bank of St. Louis
26.
Delano, F. A. (Cont.)
Says, referring to Miller, any man with brains could see
difference between things that are different. 230
McAdoo says Delano will never be designated again as Vice
Governor. 231
Delano and Harding tell C.S.H. of their interview with President
as to rotation of Gov. June 19, 1916. 233
Says nothing personal in it. 233
Gives C.S.H. copy of his letter to President asking interview
233
C.S.H. comments on letter. 233
Very egotistical and bumptious. 234
Said rotation must cow. 234
Think he said he was a candidate for Gov. 234
McAdoo says will never stand for Delano for Gov. 235
C.S.H. thinks it better to designate Delano as Gov. as otherwise
might resign. 235
McAdoo says he wished he would resign. 235
Delano so pleasant that I suspect McAdoo has yielded an rotation
238
C.S.H. tells McAdoo thinks Delano will resign if Harding
and Warburg are designated. 240
McAdoo says Delano can not be designated as Gov. 240
Says Delano is a narrcw, peevish man, and wishes he would
resign. 240
C.S.H. tells McAdoo full design of Delano et ale. 241
Delano puts circulating tag an the Federal Re3erve Bank of
Boston report from which C.S.H. name ADA dropped. 242
Allen advises C.S.H. not to notice this until after my
reagpotntment and caeirmation. 242
Delano favors amendment providing that small national banks may
withdraw frau Federal Reserve system. 245
C.S.H. tells Delano that Marsh, Treasurer of National Democratic
Canmittee has a candidate for Class C Directors Chicago,
now held by Meredith. 245
Says question of political contributions by members of Board
must be considered individually. 246
Said he had written Sen. Kenyon as to Marsh's candidate for
Class CDirector. 246
Said McAdoo had not talked of rotation of Gov. with him. 246
Pleased when C S.H. said he was a disinterested spectator and
would loyally accept the decision of President. 246
Said he felt sure I would take this position. 246
C.S.H. told Delano he had asked McAdoo not to discuss it
with him further, as whatever was done wo'ld satisfy him.
246
Delano objects to granting Wisconsin petition. 249
Says first favored it bit practical difficulties in way. 249
Says that one of Cannittee of Wisconsin bankers represented
bank not a member of system. 249
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Federal Reserve Bank of St. Louis
Delano, F. A.. (Cont.)
That present Committee did not appear at original hearing. 249
That Sen. Rusted had never called upon him. 249
That he and his committee would have been glad to settle
question by transferring Minn. to Chicago, but
that that gum had been rpikedi
249
That granting petition would anger Sen. Townsend of Mich. and
Sen. Nelson of Minn. 249
Raised technical point that Board had discussed petition
without prejudica. 249, 250.
No petition, therefore, upon Which to act. 250
Would stultify Board to reopen ease. 250
Said out of question to transfer Milwaukee banks to Minn.
251
Votes against C.S.H. motion to reopen petition and grant it.
252
C.S.R. says Harding told him Delano favored granting petitio
n. 262
Delano consents to Harding explaining situation to Sen. Mnsted
253
Delano failed to appear at talk between Harding and Sen. Misted
although be *greed to. 253
Sec. Mr. sends for Delano who comes in. 253
McAdoo said Harding told him Delano et als would agree to
grant petition. 283
Delano finally moved to reopen petition and grant new hearing.
So voted unanimously. 254
Delano complains to C.S.H. very undignified to have meeting
while Sen. Husted present. 254
C.S.H. says Delano himself made the motion. 254
Delano says does not want record to show affirmatively he
made this motion. 254
Harding says Delano much disturbed as to date fixed, August S. 255
C.S.H. thinks Delano suspicious of politics when he found
Sec. Made° and C.S.H. favored granting petition,
especially as Sen. Husted was interested to it. 255
Delano has not acted in good faith. 255
McAdoo very mad at Delano for his conduct. 256
McAdoo says Delano et els are threatening dire things if
Gov. does not rotate. 256
Williams says Delano expressed surprise and displeasure at
Metropolitan Club when told of C.S.H. reappointment. 257
Delano never congratulated C.S.H. 257
Ividently mad at being defeated on cutting down of Federal
Reserve banks and thisam he can injure the administration
by fighting Wisconsin petition. 257
Delano in C.S.H. office and at Board meeting but did not
congratulate C.S.H 260
Never told Board he wired'Miller for opinion on Smith bill
authorising cutting down of districts. 269
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Federal Reserve Bank of St. Louis
28.
Delano, F. A. (Cont.)
President says Delano's letter to him was a polite species of
blackmail. At any other time would have no difficulty
in treating it as it deserved. 269
McAdoo says if Delano et als should resign before electic*i
might injure administration. 269
That this was clearly their intent. 269
To make Delano Gov. woad be to emphasise passing over of
Warburg. 269, 270.
Delano absolutely unfitted for Gov. 270
Narrow, bigoted and a reactionary. 270
Supposed he was honest, but thick and stupid. 270
Given him every opportunity to be cordial and. friendly but
he had been cold and aloof. 270
More of an undeveloped boy than a man. 270
C.S.H. said for reasons of harmony Delano should be made Gov. 270
C.S.H. says sure Delano will resign if not made Gov. and
dropped frcm Vice Gov. 270
McAdoo said did not care. Delano had forced issue and President
had. yielded, and if he resigns now he would be
redioulous. 270
C.S.H. pities Delano. 273
Bumptious, vain, jealous. 273
Has forced the issue and has only succeeded in losing
Vice Gov. 273
Hoist by his own petard. 273
Vice President Marshall speaks at Delano and McClellan of
Federal Reserve Bank of Chicago. 273
Said Delano so piqued at not being consulted that he forbad
whole plan. 274
C.S.H. says Delano never told Board about this. 274
Marshall says Delano a very narrow man, easily piqued and
allowing personal pique to govern his official z.c tion. 275
Harding says Delano takes his loss of Dep. Gov. very quietly
although bitterly disappointed. 280
Delano persuades Warburg not to send President a letter he
had prepared lecturing President for not making him
Gov. 280
Delano, Wednesday, August 15, came in and explained why he had
not congratulated C.S.H. on reappointment. 281
5oAA
1,,Soit it would be hypocritical as he had been fighting me on
Governorship. 281
Was glad I was appointed. 281
His opposition had not been personal. 281
Very subdued and almost dased. 281
Seemed to sant to have C.S.H. explain whole matter but C.S.H.
would not. 281
Delano goes to station to see Warburg off, telling Harding
he wanted to get him out of town. 283
Harding said Delano had. been working on plan similar to C.S.H.
giving title of Gov. to all members. 283
WO
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Federal Reserve Bank of St. Louis
29.
Delano, F. A. (Cont.)
C. S. H. said if Delano had come to him he vould have
favored it and thought could have secured it. 283
Delano agrees that gold earmarked in Bank of England can
not count as reserve. 295
Insists on Board voting on agreement with Bank of England
before asking opinion of State Department on
neutrality. 298
Delano appointed in McAdoo's plaee to consult State Dept.
as to neutrality of Bark of England agreement. 299
See also - Federal Reserve Agent, Deputy
Federal Reserve Banks; capital
Federal Reserve Board; status
Democratic National Committee
National Democratic Committee
See
Deposits to move crops
see - Comraodity paper
Government deposits
Depreciation charges. 219
see - O'Neil, J. H.
Deputy Federal Reserve Agent
See - Federal Reserve Agent, Deputy
Dinners
British Blibassy. 150, 153
Japanese Embassy. Speech C.S.H. 155, 214
White House, Cabinet dinner. 16?
McAdoo to Federal Reserve Board. 168
With Delano. 199
General Scott - to meet President Wilson. 216
With Sec. McAdoo. 243
With Admiral. Grayson. 266
Forbes. 284
Lunch with Mrs. Male
Directors
See - Federal Advisory Council
Discount rates
McAdoo wants to force Richmond to lower. 1
Governors claim Board has no power to fix, of own vaition. 1
Warburg and whole Board believes ,W,s, the power. 1, 2.
Rediscounts bertween Federal Reserve banks.
Warburg and Harding feel rates should be itt below rates
of bank for when rediscounts are made. 2
McAdoo feels rats should. be same as acceptance rate. 2
Harding says should be N.Y. rate or a fraction below. 4
Federal Reserve Act originally provided that compulsory
rediscounts should have rate of from 1 to 3%
above highest rate of banks concerned. 4
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Federal Reserve Bank of St. Louis
30.
Discount rates (Cont.)
Rediscounts between Federal Reserve Banks (Cont.)
Harding says will encourage speculation if below 4% 4
New York agreed with Atlanta on a 20 rate. 4
Done to demonstrate harm it would do to south. 4
Warburg says New York did this in order to embarass
McAdoo. 6
C.S.H. says if true would vote to remove New York
directors. 6
Warburg says Jay wrote to Atlanta would rediscount
at 2e. 6
Gov. Strong said - I will give them a low rate to
break their necksi 6
Bitter fight in Board 6
Governors recommend 4%
5
McAdoo very angry. 5
President Wilson says Governors are arrogating
functions of a central bank. 5
Willis favors 2 - 4%
5
Says if 4% New York could then put up its rates to
southern banks. 5
Delano and Warburg write Federal Advisory Council to
advise as to raising rates to stop speculation.
Jan. 6,1916. 167
C.S.H. objects as no speculation in commodities and
Board has no jurisdiction over investment
securities. 147
C.S.H. objects to raising commercial rates to stop
stock market speculati n. 167
Governors conference at Minn. protests against
Board pressure as to. 173
C.S.H. wants annual report to shag what Board has dome
towards lower. 174
Warburg, Miller and Harding object. 174
C.S.H. withdraws motion at MoAdools request. 174
Warburg proposes amendment preventing Government
deposits without consent of Board. 177
C.S.H. favors amendment authorising Federal Reserve
banks to fix maxim= rates member banks may
charge customers. 179
Warburg says deposit of 15 milliors in Federal Reserve
banks has interfered with policy of Board as to. 180
Federal Reserve Bank of Kansas City asks to increase
certain rates from 4 to 40. 214
Delano and Warburg favor. 214
C.S.H., Williams, and Miller oppose. 214
Harding says rates are out of line and should be raised
214
Miller at meeting of Executive Committee says the
rates should be increased but not for reasons
given by Kansas City. 215
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Federal Reserve Bank of St. Louis
31.
Discount rates (Cont.)
Rediscounts between Federal Reserve Banks (Cont.)
Harding says will denounce Miller for prejudice against
bunks. 215
Miller finally agrees to approve. 215
Delano suggests telegram tentatively approving. 215
Williams objects. 215
Delano says Executive Committee must decide tomorrow. 215
Delano orders Allen to send the telegram without approval
of Executive Committee or Board. 215
When C.S.H. told Board telegram already sent Delano
gave very equivocal reply. 217
Delano deliberately deceived C.S.H. 217
Dividends, Federal Reserve Banks
gee - Federal Reserve banks; dividends
Donnstic bills
See - Dills of exchange
Domination, Treasury
See - Treasury domination
Due regard
Meaning of.
194
Eagle, Cong.
Praises C.S.H. as Governor
Attacks Warburg. 272
Earmarked gold
See - Bank of Lrgland
Bank of Netherlands
Eliott, Milton W.
Board can not reduce number of Federal Reserve banks. 65, 69. "
Delano says Ebliott has changed opinion and agrees with
Cotton. 106, 123
Board can not put in a mandatory system of clearings. 127, 159
Willis criticizes Elliott's draft of letter to President on
mandatory clearing system. 156
Gives opinion Williams entitled to salary claim. 170
Elliott says no reason for docketing Williams claim as it is
kurely question for Comptroller of Treasury. 171
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Federal Reserve Bank of St. Louis
32.
Elliott, Milton C. (Cont.)
Delano moves to increase salary of, 'Ossed on satisfactory
arrangent as to E.
Also advising Comptroller. 203
Miller says it is a bargain and intimates a corrupt bargain.
Says will file a memorandum showing up Whole matter. 203
Says it is a "fudge" 203
Harding denounces Miller 'el° firUy apologizes. 203
C.`1.H. asks Elliott to define "fudge". 203
All voted aye exc3Dt Miler who voted no. 204
Elliott doe 3 nct favor
sugge-tion tnat Wisconsin
banks send items or cash to Chicago to credit of
Minn. bank. 259
says gold earmarked in 9ark of England can not count
re.;erve. 295
Se-a also -Federal Resn.ve Board; cutting down
Embargo
See - Cotton
Great Britain
Harding
Examiners reports. 162
See - Williams
Excnange charges
F.ee - Clearing syster..
Expenses
See - Federal Reserve banks; dividends
-F-
Fairfield county
See - Redistricting
Fancher, Gov.
See - Bills of exchange
Federal Rese'vs banks; divtdent;
Farm Loan Committee
McAdoo tries to induce Williams to take office of. 282
Federal Reserve Act
Directors of Bank of En6land consider, to be a marvelloui
Piece of legislation. 223
See - Root
Strong, GM
Federal Reserve Agents
nee - ,„
tdLearing system
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Federal Reserve Bank of St. Louis
33.
Federal Reserve Agents, Deputy
Delano submits rel-)ort. National Bank examiners not to
serve as. 142
C.S.H. favors. 142
William asks or delay. 142
Postponed. 148
Harding Aye Williams is misrepresentinp McAdoo. 142, 143.
Delano says proposed draft will require removal of Starek
at N.Y. 143
C.S.H. favors allowing Starek et als to -:;erve out present
terms as Govt. directors. 143
Harding says McAdoo says matter will be settled satisfactorily 147
McAdoo denies Harding's statement; says Starek should serve
out term as Govt. director. 149
Postponed. 149
Delano presents report. 155
C.S.H. claims Starek should serve out term as Govt. directcr
but favors renort otherwise. 155
Delano violently disagrees. 156
Willis says Board can not re;:.ow3 Starek if he refuses to resign;
would not ,oe "cause" under Federal Reserve Act. 156
Delano says can cut doNn his salary as examiner.
Willia:ns tells McAdoo he can adjust matter if he wants to. 157
C.S.H. tells McAdoo, Starek sould be allowed to serve out team. la
C.S.H. raises no objection if Starek and Gatch voluntarily
resign. 161
Harding resclution:
1. Examiners reports
2. Examiners serving as Class C Directors
3. Whether Governors should serve as Class C Directors. 162
C.S.U. =vas to split up 2:
(a) Service as Dep. Federal Reserve Agents
(b) Service as Class C Directors. 162
Carried over Szrdingis protest.
Miller votes aye. 162
Willis claims 41cAdoo resolution broad enough to include Starek 163
C.S.H. clikims prospective merely. 163
McAdoo Agrees with C.S.H. 163, 164
Warburg claims sol prospective. 164
C.S.H. says if true, Gov. Wills and Gov. Hannah must resign 164
Board resolution:
In future, examiners not eligible as Dept. Federal Reserve
Agents or Class C Directors. 264
Peabody elected as Deputy Federal Reserve Agent, N. Y. 165
Starek designation rsvoked. 165
C.S.H. directed to notify Starek, Gatch, and Kurst of Board
re.olution. 166
Agreed that they may serve out present terms as Class C Directors
166
Feleral Resvve Bak; Kansas City.
See
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Federal Reserve Bank of St. Louis
34,
Federal Adiisory Council
Forgan says, came from N. Y. to Washincton on private
car furnished by Baltimore and Ohio Railroad at
Morgan's request. 66
Voted to consult, as to confidential statement of condition
of Bankers giving acceptances. 96
Favor abolishing Comptrcller. 109
Votes, 6 to 3, to reduce capital stock of Federal Reserve banks 110
Wing, Seay, and Ardrey vote no. 110
Vote unanimously against cutting down Federal Reserve districts
at this time. 114
Warburg tells Gov. Strong to postpone next meeting of, until
annual re2ort of Board published, as suggOstion made to
publish in report cost of meetings of. 144
Board resolution!
Directors and officers of Falaral Reserve banks, after
Jan. 1, 1917, should not be elected to. 164
Forgan says that although he favors returning part of capital,
it is absolutely necessary for Federal Reserve banks to
earn dividends. 186
All agree, that if capital pail back, maMber banks today could
not earn dividends on it. 186
Wing says Boston can never earn dividend except In a cannercial
crisis and that Boston's future lies in development of
acceptance business. 186
Reverses itself and votes 7 to 3 against reduction of capital. 186
Federal Reserve Bank of Atlanta
Col. Brown tells McAdoo, had forced banks to rediscount even
when they did not want to. 3
wants a rate of 20 3
Atlanta can use all money New York has. 3
Harding fears Atlanta banks are over extending under 4% rate. 3
Says 21% rata would be a pure gift to member banks if they
did not give loNer rates to customers. 3, 4.
Says 0 rate has not resulted in lower rates to customers. 4
Says southern banks pay frola to 8% on deposits. 4
See - Discount rates
Board sends stiff letter to, based an Broderick report. 92
Committee of Board favor consolidating Atlanta and Richmond
154 A
sce - Federal Reserve Board; cutting down
Board transfers part of Louisiana to Atlanta. 194
see - Redistricting
C.S.H. speech. 229
See - Nev Orleans branch
Warrants
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Federal Reserve Bank of St. Louis
35.
Federal ReAerve Bank, Boston.
Miller objects to consolidating Boston with N. T. 109
See Federal Ileserve Board; cutting down
Committea favors consolidation of Bcs ton and N.Y.
137, 139, 154 A.
Committee says consolidation of Boston with N.Y. advisable
but will.not so report because of sentiment of
country hoping Boston may prove ability to act as
independent and salf-suorting center. 154 A.
Wing says, ,can not earn dividends except in a corinercia.1
crisis, and that acceptance marklt iG Boston's future.186
C.S.H. says IRroderick report no ground for reducing capital of
193 •
Connecticut banks petition. 196
See - Redistricting
Harding thiiks future of, lies in icceptance business. 259
5ei - Federal Re;arve Board; cutting down
.
. Warrants
Federal Reserve Bank, Chicago
Committe3 of Board favors comondation of Minn. and. 154 A.
Marshall, Vice President, tells C.S.H. Bosworth to rezign
and directors want to elect McLallan; that Delano was
not consulted and said could not be done. 274
Marshall fears Delano will remove McLallan. 274
C.S.H. says Delano never reported this to Board. 274
C.S.H. no reovals except after hearing. 274
Gov. Wold defends, in refusal to par Milwaukee checks,
although banks willing to keep excess reserves for
this purpose. 276
Federal Reerve Bank, Dallas
Warburg says Committee has decided to abolish, and
substitute New Orleans. 95
Committee favors consoliiating, with Kansas City. 154 A
Villard charges that Judge Ramsey was forced to admit
perjury by Texas legislature. 167
Does no su,;tain chlrges. 167
Houston Gavs Ramsey is of highest character - no truth in
charge. 167
C.S.H. and Miller permit Ramsey to qualify as Federal Reserve
Agent. 167
Transfer of part of Louisiana from, to Atlanta. 194
see - Redistricting
Directors pass resolution congratulating C.S.u. on
reapppintment. 277
Federal Re5erve Bank, Kansas City
Consolidation of Dallas and. 154 A.
Krauthoff objects to designation of Flemingas Dept. Federal
Reserve Agent. 169
Scandalous record. 169
Mixed up with R98i as '4ayor. 169
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Federal Reserve Bank of St. Louis
36.
Federal Ret%erve Bank, Kansas City (Cont.)
C.S.U. aiks for investigation. 169
Board thought it not necessary in view of his banking
indorsements. 169
C.S.H. doubts his banking experience. 169
Warburg says as much experience as Malone, and will vote
for him. 169
Board voted, an report of Delano, to designate Fleming as
Deputy Federal Reserve Agent. 169, 170.
C.S.H. and Ailler voted No. 169, 170.
Thralls charges against Gov. Miller:
Puts incompetent men in bank. 238
Appoints Catholics when possible. 236
Dominates bank. 236
Goebel would have accepted Governor bat Miller said
salary would not exceed $7,500. 237
Miller told dir3ctors that tr they reappointed Thralls
the FedeiAal Reserve Board would disapprove. 237
Sawyer, Federal Reserve Agent, told Thralls directors
would reelect him only if he agreed to resign at
once. 237
Thralls refused and left bank. 237
Miller told directors that if they lid not elect him
Governor the Bank would be abolished. 237
Miller took Federal Reserve Agent thinking it was highest
position. 237
When he found it was not, he wanted to be Governor. 237
Bankers have no confidence in Miller. 238
Miller started opposition to Fleming for political reasons
238
Thralls opposes investing reserves GO largely in Govt.
bonds. 238
Suggests capital be reduced but left as a apecial deposit
to serve as guaranty of deposits fund. 238
C.S.H. favorably Lapressed with Thralls. 238
see - Discount rates
Federal Reserve lank, Minneapolis
Miller Intimates may be consolirtated with Chicago. 89
Delano .dmits talking to Jaffray as to abolishment of. 147
Cauilittee want to abolish. 154 A
See Federal Reserve Board, cutting down
Wisconsin banks petitim
Miller and Warburg think we ought to grant it because
banks want it. 126
Delano agre3s but said to grant it will weaken. 126
C.S.H. says status created by reaerve bank organisation
committee and burden of proof an petitioner. 127
Little injury can be shown by petitioner. 127
Postponed. 127
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Federal Reserve Bank of St. Louis
37.
Federal Reserve Bank, Minneapolis (Cont.)
Wisconsin banks petition (Cont.)
Senatur }tasted calls on C.S.H. 243
Says Board members told hi:u whole matter up to C.S.H.
and intimates C.S.H. responsible for holding
it up. 243
C.S.H. says false and explains situaticn
Says opinion in Board divided. 244
C.S.H. suggestat letting Wisconsin banks in
question remit clearing items to Chicago
to credit of Minn. bank. 244
C.S.H.admits difficulties of Wisconsin banks. 244
Asks Husted to inquire of banks whether above clearing
proposition will meet their difficulties. 244
n.244
If net, C.S.H. will vote for at least part of petitio
245
letter.
C.S.H. gives lusted above suggestion by
Sends !larding a irenaorandurs on same. 245
Harding says will not meet the difficulties. 245
C.S.H. suggests Conn. banks as analogy. 245
Harding. shows not analogous. 245
n
C.S.H. tells Board McAdoo will vote for amended petitio
ee
Milwauk
as shown on map given to Harding by
bankers, if that is judgment of Board. 247, 248.
McAdoo says Harding told him this was judgment of Board
248
ee
1ilwauk
se
otherwi
as
n
petitio
amended
favors
C.g.H.
banks under clearing system will lose reserve
accounts to Minn. 247
Harding will consult with McAdoo. 247
McAdoo urges Williams to vote for amended petition. 249
Williams will not, vote for it tut leave rocra when vote
taken. 249
Delano and Warbirg object to granting petition. 249
Delano's objections:
1. One of bankers caranittee is in bank not
a member of F.R. system. 249
2. Bankers ccaraittee did not appear at original
hearing. 249
3. Sen. Husted never called on him. 249
4. Walld have been glad to solve problem by
transferring, to Chicago but "that gun had
been spiked." 249
5. To grant petition would anger Senators Townsend
and Nelson. 249
6. 011 petition dismissed and new petition,
therefore, must be filer'. 250
Warburg says new petition must be filed with briefs.
Agreement not earlier than Sept. 1. 250
Harding says delay will injure totilwaukee banks. Petitkaa
should b 3 granted. 250
C.S.H. says originally certain members favored petiticn
becaqse banks wants. it. 250
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Federal Reserve Bank of St. Louis
38.
Federal Rel;erve Bank, Minneapolis (Cont.)
Wisconsin banks petition (Cont.)
C.F.H. says only question is whether, can afford to lose
these banks. 250
All agreed that no new petition necessary as Board could
redistrict on own initiative. 250
Warburg and Delano said to grant petition would stultify
Board. 250
C.S.H. says at first thought clearing syste:4 would solve
difficulties. 251
Whole 13oard thought time should be given to test this
251
Favored allowing Wisconsin banks to pay checks to
Chicago to credit of Minn. bank. 2di
Accepts Harding's judgment that thia would not
solve the difficulties. 251
Only 2 remedies:
1. Transfer Milwaukee back to Minn.
2. Grant this petition. 251
All said 1 la out of question. 251
C.S.H. says contest lies between:(a) Milwaukee banks
(b) Twin City banks. 251
C.S.H. says (a) have 19 millions of deposits
(b) have 70 millions of deposlt3
251
C.S.H. said origiral decision of reserve bank organization
committee transferring Milwaukee to Chic go now
demands transfer of Milwaukee territory to Chicago 251
C,S.H. says Minn. bank can stand this. 251
C.3.H. says:
Minn. bank a wh3at district. 251
Cash and credit demands concentrated into 3 months
in fall. 252
Minn. declined crop moving deposits in 1913,19141
or 1915. 252
St. Foul banks had only one crop moving deposit
in 1913. 252
Minn. bank made only a limited use of commodity rate
252
Minn. bank, last fall, refused Govt. deposits. 252
=Ives to reopen and grant petition
C.R.H. and "'larding. Aye
Warburg anl Delano. No. 252
lotion lost. 252
C.S.H. sae will not record 4cAdools vote in view of
qvcsition. 252
Williams not present. 252
Adjourned. C.S.H. to consult 14cAdoo. 252
Warburg ays would Tote for neN hearing on Aug. 15, no
further briefs to be required and Micnigan to
be allowed to interven. 253
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Federal Reserve Bank of St. Louis
39.
Federal Reserve Bank, Minneapolis (Cont.)
Wisconsin banks petition (Cont.)
Senator 'Rioted calls. 3 p.m. 253
Harding explains situation to him with consent of Board. 253
Harding sugEe,,ts he see McAdoo. 253
C.S.H. goes to McAdoo; find Harding and Sen. Rusted
with him. 253
They send for Delano who comes in. 253
McAdoo says agreed to vote for netition on Harding's
assurance tnat all wanted it. 253
McAdoo says no objection to a further hearing. Aiks
•
Delano for his opinion. 254
Delano states case and finally suggel;ts a meeting then
and there to reopen petition and grant now
hearing. 254
Delano :acved as above.
All voted for it, Harding, Delano, McAdoo ;-1,n4 C.S.4.
being present. 251
Adjourned. 254
Delano tells
undignified to hold %meting
in presence of Sen. Rusted. 254
C.S.H. points out Delano himself male motion. 254
Delano says doss not want record to state he :Lade the
lotion. 254,255
Delano iisturbel at late fixed - AuE. 8.
2:i5
T1.:bbur7 evidently think politics to this. 255
Have not acted in good faith. 255
No politics in matter:
1. Milwaukee ComAttel first want to Delano and
Harding. 255
2. Conuittee talked with
only later. 255
3. This was long before Sen. Husted became
interested. 255
4. Cong. Safford, a Republican, first spoke to
C.S.H. about it. 255
C.S.H. voted purely on record. 255
C.S.H. sends telegrams as to new hearing. 255
McAdoo very angry at Warbur.gani Delano. 256
Sen. Husted once, in C.S.H. presence, - told Harding of
political effect of an adverse decision. 258
C.S.H. at once said should not consider political effect.258
Harding laughed - sail politics did not scare him. 258
Harding says 4inn. is a wheat producing district and
can stand transfer. 259
Elliott opposes C.S.H. suggestion that Wisconsin banks
may send cash to Chicago to credit of Ainn. bank.
Would create exchange and interfere with clearing
system. 259
Gov. Wold defended Federal Re31rve Bank of Chicago In
refusal to par Milwaukee checks even though beaks
kept excas.i reserve for this purpose. Said thdre
banks had reserve agents in Chicago and should
settle by check subject to tiara allowance. 276
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Federal Reserve Bank of St. Louis
40.
Federal Reserve Bank, Minneapolis (Cont.'
Wisconsin bank petition (Coats)
Gov. Wold angry because Board allowed Sen. LaFollette
and Rusted to be heard at hearing. 275
Intimated he would charge political influence in his
brief. 275
C.S.H. saii no politics in matter. 275
Question ia solely trend of busines, whether
north or south. 275
Says Board might conAder adding other territory
to Minn. if Wold asked it. 275
Gov. %Vold issued circular dated July 26th offering
to tax Milwaukee ch-!Cks at par with immediate
credit. 276
Admitted never sent copy to Board. 276
Gov. Woldis circular evidently sent cut to head off
petition. 276
Dated July 26th it Harding and C.S.H. believe issued
a lay or two later. 276
Telegram asto new hearing sent out July 26. 276
Board should investigate this. 276
Gov. Wold almost impudent. 277
Wold admits to Harding circular of July 26 anti dated. 279
Wold deliberately deceived C.3.. 279
Federal Reserve Agent Rich writes protesting against
granting petition. 284
Says bankers told him that Senators and Congressmen
of Wisconsin threatened Federal Reserve
Board and held confirmation of C.S.H. over
their heals as a club to force reopening of
petition. 284
Says date of confirmation of C.S.H. lends color
to this. 284
Harding says Rich sent copy to him and he wrote back, absolutely false. 284
C.(i.H. believes Rich letter is polite form of blackmail
to force Board. 284
C.S.E. prepares a letter to Rich while in Mattapoisett284
Potnto out Board voted to reopen petition Wed.
July 26 at 3:30 p.m. while C.s.H. name not
sent to Senate until 5:30 same day. 284
C.S.H. demands investigation by Board. 285
C.S.H. writes Harding no Congressman nor Senator ever
discussed confirmation with him. 284, 285,
Reminds Harding that Gov. Wad tried to induce
Minnesota Senator to protest at hearing
but he woad not. 285
C.S.H. has lost confidence in both Rich and Woll. 285
Wold should be removed for anti dating circular. 285
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Federal Reserve Bank of St. Louis
41.
Federal Reserve Bankddinneapolis (Cent.)
Wisconsin bank petition !Cont.)
Board only knew of circular at hlaring Aug. 8. 285
C.S.H. sends draft of Rich letter to Harding. 287
Tells Harding to mail it unless he wants to hold it
for Board meeting. 287
Harding strongly advises not to send it. 291
Says conrilted with Board and all so advise. 291
Says Miller, just returned from Mirn. - says Rich will
ask to withdraw letter. 291
C.S.H. tells Harding that Rich letter is attack upon
whole Board as well as an C.S.H., but if Board
wishes to let Rich withdraw it, he will not object 291
Miller said Rich had written him but did not mention name
of C.S.H. ; merely colaplained of Congreslimen. 291
Miller says:
Rich said implication drawn by Miller from letter
was utterly foreign to his intentions. 291
Told Rich letter deserved and would receive severe
rebuke from Board. 291
Rich thought his letter to Miller was same as letter to
C.S.H. 291
Miller said not the same. 291
Rich calls in iloahor who admits letter not the same. 292
Rich acts as if he hal never before seen his letter
to C.S.H. 292
Miller believes Mosher wrote both letters. 292
Rich said he merely wanted to tell Board of gossip and
=ors which he, personally, did not believe in. 292
Miller std, if so, ha method of expression was very
faalty. 292
Rich said Mosher had suppressed newspaper articles. 292
Miller said Minn. bank and Decker trying to scare Board. 292
C.S.H. said if letter not withdrawn he should send copy
to the Wisconsin Congressmen and Senators and leave
them to settle with Rich. 293
Miller begs C.S.H. not to as it would lead to resignation
or removal of Rich and injure Federal Reserve system. 293
C.S.H. finally agrees to Miller writing Rich to allow
letter to be withdrawn. 292, 293.
C.S.H. says if Rich hal intimated that his vote was
influenced he should have demanded a senatorial
investigation. 293
Miller says he is disgusted with Rich. 293
Miller says he will vote against the petition as it will
cripple the Minn. bank. 293
Gov. Vold told Delano Rich should not have written the
letter but that he was obsessed over the matter. 294
Rich writes C.S.H. that his letter was not intended as a
reflection upon the Board or C.S.H. 300
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Federal Reserve Bank of St. Louis
42.
Federal Rellerve Bank, Minneapolis (Cont.)
Wisconsin bank petition (Cont.)
Miller said he would write Rich that he could withdraw
the 1Stter. 300
Miller aaid unless Rich withdraws letter the Board would
have to censure him. 300
Federal Reserve Bark, New York.
Offers 2% rediscount rate to Atlanta. 4
To demonstrate harm it would do. 4
Gov. Strong says will give them this low rate to break their
necks. 6
Warburg says done to embarrass :IcAdoo. 6
Palmer and Starek complain of Gov. Strong for not appointing
a cashier aa authorized by Board of Directors. 22
Gov. Strong says Starek advised the man to hold out for
$12,000 aalary. 22
Fowler petition. 4unitions. see same
McAdoo objects to bank throwing up its lease which it
took from his friend Pliny Fisk. 91
Delano and Miller aay Whole system depends on, which is,
therefore, practically a central bank of U.fl. 184
Harding says, aught to be the central bank of U.S. 184
Fairfield County, Conn. transferred to. 196, 197
See - Redistricting.
Federal Reserve Darik, Richmond.
Atlanta to be consolidated with. 154 A
Ingle says Gov. Seay utterly ignores him. 158
President Wilson wants his brother-in-law Bolling appointed
Federal Reserve Agent. 195
Elliott preparing opinion whether Bolling has been for 2 years
a resident of the district. 195
Warburg, Delano and Aller say they will vote against him. 195
Harding says this will make a tie and will leave decision to
him, and he does not want to be put in that position. 195
Harding says if proper salary voted for Gov. Seay he might
look differently upon the proper type of person for
200
Federal Reserve &gent (neanLng '3o1' trig)
Board votes to increase Gov. Seay's salary to $12,000. 200
Williams opposes. 200
Harding very angry. 200
McAdoo and all finally vote aye. 200
Discussion of appotntment, Federal Reserve Agent.
Harding said he had talked with Hardy together with
and he felt :omitted to him. 205
Said he tried to induce Hardy to withdraw, in View of
influential oivosition to hit, but he declined. 205
Williams said he toll Hardy the Committee had no authority
to offer place to him. am
Admits, however, that Hardy had right to assume Committee
would recommend him to '3oard. 206
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Federal Reserve Bank of St. Louis
43.
Federal Reserve Bank, Richmond (Cont.)
Discussion of Appointment, Federal Re!!er,ye Agent. (Cont.)
Harding moves appointment of Hardy and Delano
seconds. 205, 206
Miller says will vote for Hardy. 206
McAdoo 6ays wishes to be recorded against Hardy but
finally waived this and said let majority Io as they
pleased. 207
C.F.H. says:
Wilcox of Baltimore, a very prominent Republican,
first present 3olling's na!-us. 207
Also indorsed by Baltimore Clearing house Association,
and by many banks and bankers in Maryland,
Virginia, and West Vir=zinia. 207
Thinks Bolling the best man. 207
Has had. good experience in managing branch of
Comm. National Bank at Panama. 207
Not influenced by fact that he is brother-in-law
of ?resident Wilson. 207
C.S.H. believes '!ardinls "commitment" merely a device
to avoid voting for Bolling. 207
McAdoo angry; refers to "certain events in future"
meaning removal of certain Board members. 207
McAdoo says action of Board an affront On 'President
which will nOtbe forgotten. 208
Miller =Veit to table matter until Delano and Hardins
return from west. 209, 210
says not satisfied Hardy is best man. 209, 210.
Vote resulted in a tie. Lost. 210
O.S.H. voted to postpone as he knew so little about
Hardy, especially in view of his refusal to
withdraw on Harding's request. 210
Wanted time to lock into matter. 210
Harding, Warburg and Delano very mad. 210
Motion made to elect Hardy. 210
Delano, Harding and Warburg - aye
Not voting, - Miler and C.S.H. 210
C.S.H. says in doubt whether this vote elects Tardy. 211
Miller then changed vote and Hardy declared elected,
C.S.H. and Williams not voting. 211
Miller insincere. 211
Device of Miller at als to defeat Bolling. 212
Williarus moved to table until McAdoo came. 212
C.S.H. said McAdoo said for Boatd to vote without him. 212
McAdoo later said C.S.H. lid right. 213
Hoard approves minutes of meeting. 213
Short statadent added, - C.S.H. and Williams not
prepared to vote either way. 213
See - McAdoo
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Federal Reserve Bank of St. Louis
44.
Federal Reaerve 3a4k, Philadelhia.
Warburg quotes from memorandum showing how much, must invest
to earn dividenda, claiming it justified cutting down
its capital. 184
. ..
Federal Reserve Banks
Attorney General
Says, may discount any acceptances member banks may
lawfully make. 24
Bank of England
Gov. Strong thinks, can macaw, gold on deposit
from Bark of England anA can earmark it. 222
Bifl of exchange
Gov. Fancher falors open market powers as to, so Federal
Reserve banks can earn dividends. 65
Capital, Reduction of
Federal Reaerva Agents divided on que,itior. 89
Warburg favors. 89, 90.
Miller oopoaes. 90
Delano doubts advisability of, but aimits strong arguments
for it. 110
Warburg in speech at Minneapolis strongly favors. 110
Warburg claims examination of Federal Reserve Bank of
Philadelphia shows need of. 184
Federal Advisory Council on
See same
Warburg clatma report of Federal Reserve 'Bank of Bostcn
shows need of. 193
C.S.H. dents. 193
Thralls favors, amount to be held as special deposit for
guaranty of teposits plan. 238
Cooperation
Miller opposes, between Federal Reserve banks. 230
Delano savagely assaults Miller. 230
Deposits in Federal Reserve banks, Govt.
sea - Commodity paper
Govt. deposits
Dividends and expenses
warburg indifferent as earning of. 61
McAdoo says member banks are not rediscoanting in order to
prevent Federal Reserve banks from making. 61
C.S.H. says 121„; observed same tendency. 61
Gov. Fancher opnoses possible assessment on member banks
to meet 14ficits of Federal Reserve banks. 65
McAdoo says failure of Federal Reserve Bank of Cleveland
to make, shows there is no neceesity for a Federal
Reserve bank there. 65
Gov. McDougal says th4 la. ge member banks -light not object
65
Glas3 says Federal Reserve banks have right to go into
open market to earn. 70
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Federal Reserve Bank of St. Louis
46.
Federal Reserve Banks (Cont.)
Dividends and expenses (Cont.)
Board votes to call on all Federal ReE:arve banks not
making, for report whether any necessity for a
Federal Reserve bank. 113
Passed because sous of Board felt that soma member
banks refrained from rediscounting to make Federal
ReE.erve banks
pear weak. 113
later
rev9rsev; vote as C.S.H. fears it might
Board
disturb business intere:As. 113
C.S.H. objects, - Jan. 13, 1916, - to clause in
annual report apparently justifying failure of
Federal Re.trve banks to make. 168
C.S.H. especially objects to clause th,,t Federal Reserve
banks must invest 250 millions at 2% tn order to alak5. 168
C.S.H. gives notice will me a resolution that Federal
Reserve banks are xpected to make, and that the amo.Int
needed, - only 5 millions gross - can be earned with
merely negligible competition with the national banks
which earned 527 millions last year. 168
0.S.U. wants annual report to show that Federal Re.,erve
banks are not purely emergency banks and can make,
without any serioui competition with member banks. 174
Referred to Miller who is drafting the report. 174
Forgan says absolutely neces.ary for Federal Reserve banks
to make, and that the resulting competition with
me:ther banks would be negligible. 186
Forgan says absolutely necessary to earn. Competition
almost negligible. 186
Foreign Agencies in South America
Board members very angry because McAdoo publishes President's
letter favoring. 73
Referred to Committee. 73
Com:Littes files very discourteous report ag:iinst. 75
McAdoo wants Committee to report favoring an watniment
permitting naticnal bank2 to buy stock in foreie,n
banking corpor3tions. 75
Miller Objects. 75
Board issues atltement ag:Ainst, whore national banks nave
have branches. 75
McAdoo opposed but finally yielded. 75
A direct blom at President and McAdoo and papers so
construed it. 75
Willis tells C.S.H. of meeting between Cotton, Warburg,
Harding and Miller. 77
Warburg reads bitter attack on McAdoo. 77
Willis does not agree with it. 77
McAdoo told Willie greatly depressed. 77
Willis advised him to compromise. 77
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Federal Reserve Bank of St. Louis
46.
•
•
•
•
•
•
Federal Reserve banIcz (Cont.)
Foreign Agencies in South America (Cont.)
McAdoo -Anted postponement, by reference to a
comLittee, until he returned from Indianapolis. 77
McAdoo proposed amendment allowing national banks to
form corporations in foreign countries. 78
McAdoo reluctantly agreed to Board's statement. 78
Willis thought !IcAdoo condeded too much in agreeing
that no, should be established in countries where
naticnal banks are established. 78
A fital mistake. 78
Government banks
Federal Re.erve banks are not. 23
Government bonds
Williams says, should not coribine to depresF price of,
when they buy and increase it when they sell. 231
Warburg liffers. Roy. 231
Hamlin, C.
Amendment permitting direct deposits in, by individuals. 178
United States
Offices of, are not officers of United States 23
See - Discount rates
Federal Reserve Board; cutting down
Government deposits
Federal Reserve Board
Amendments to Federal Reserve Act
May sugge:-;t to Congress, AcAdoo Purim'. 67
Attorney General
Can not ask opinion from
The Secretary of Treasury as Chairman of Federal
Reserve Board, can. 23
bank of England, Foreign Agent
Board resaution. 299, 300
See - Bank of England, Foreign Agent
Capital
Associate membership of state banks favored by Warburg
and 'larding without any deposit with Federal
Reserve banks based on 192
Reduction of
See - Federal Reserve banks; capital
Chairman of Federal Re3arlm Board
Counsel doubts power to call a meeting of board. 47
affirms it. 47
Miller and Harding say must be settled and suggest
a by-law. 48
C.S.H. says McAdoo had a right to change place of
meeting bat the Board could adjourn to any
other place. 49
Discuss draft of by-laws. 50
• at
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Federal Reserve Bank of St. Louis
47.
Federal Reserve Board (Cont.)
Chairman of Federal Reserve Board (Cont.)
Contention of Harding and Miller that Chairman can
not call a meeting maim ridiculous
Plivt that
yesterday they themselves dalled a meeting for
today. 51
H. inclined to believe Sec. of Trea.lury should
C.
not have been male Chairman of Board. 57
McAdoo accepts statem,mts of members as to N.Y. meeting. 58
Comptroller of Currency
C.S.H. believes, should not have been put on 'Board. 57
Would not have been but for personal friendship of
McAdoo. 58
Should now be placed under control of lowed. Sept. 1, 1915 63
Cutting down Federal eserve banks and districts
X.S.H. fears membrs contemplate radical cutting down. 82
a4A 2. ti '
24'
4. 47
,Committee appointed to consider amendments to Federal
Reserve Act. 82
Board willing to put C.F;.H.on it. 82
C.3.ff. declined as he suspected sawlittet would try to
cut down existing banks and districts, and he wished
to put entire responsibility on them. 82
12.44 u.S-e44 Willis .a.ys that on Saturday, Oct. 30, th comAttee
called him in and laid before him plans of redistricting
as follows:1. Atlanta merged in Richmond
2. St. Louis :Ald Kansas City merged
3. Minneapolis and Chicago merged. 85
'aid Warburg wantel to merge Boston with N.Y. but ,11.11er
objected. 85
Willis furious. Said Reserve Bark Organtzation plan was
faulty but proposed plan worse. 85 L:42.4.4
. 3.004,
1. Consolidated 2 paying banks, Atlanta and Richmond
2. Consolidated 2 weak banks, - St. Louis and
Kansas City. 92
Coallittee sail reason was (1) to make clearing sytem
more effective. 85
Answer: - we have never established a clearing system. 85
(2) Claimed saving in expense.
Answer: - Would iestrcy F. R. notes, - a much greater
loss than any aaving of exrense. 85
specially as committee provided for
branches in all districts con,Clidated. 85
Willis intimated committee hal consulted Chicago and
Minneapolis banks, e.g. Decker in Minn. 85
Delano leaves for Chicago. C.3.1. thinks he goes to
consult bankers. 86
Willie thinks only reason of comtittem is to show Board
is independent of Treasury. 86
Board already has voted - ro more redistricting unless
experience demonstrates neceasity. 86
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Federal Reserve Bank of St. Louis
41.
•
•
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•
• •
Federal Reserve Board (Cont.)
Gutting down Federal Re_erve Banks and districts (Cont.)
No experience has been hid warranting 5uch a cutting
down. 86
c4,44
No one has asked for such a change. 86
No bank has even applied for a rediscount. 86
Willis say:3 system has worked perfectly. 86
Merging linn. bank will be a vindication of Rurkels
attack on it. 86
Elliott has advised that Board can not reduce number
of Federal Reserve banks. 86
Mil'er said Broderick report on Atlanta showed irregularities
Justifying abolishing the bank. 87
1.0.4./Vvv.
C.S.H. real Broderick rtport.
Shamed some irregularities
Nothing to warrant abolishment. 88 t)(4
'
1 4'1440-4-44.41
C.S.H. writes Miller to tell him what it was in Broderick
report which malt him feel Atlanta should be
abolished. 88
A/4.44.A Delano says committee on redistricting not yet ready to
report. 88
Harding says C.S.H. "Stumped" Mili.er by his letter as to
Brodtrick report. 88
Delano said, - the fool to blurt this alit while still
pending on the cannittee. 88
C.S.H. writes Miller asking what facts there were in
controversy between Minn. bank and Rich to warrant
his statsment yesterlay to zsoard that the issue
might warrant abolishment of Minn. bank. 88, 89.
Board issued publi: statemlnt while C.S.H. was in
Indianapolis that transfer of Minn. bank ti?.6.511;ago
was not under consideraticn. 89
A./L4-1- .
"
1,
While this statemtnt was naminally a reply to Burke attack,
subsequent events showed it was not true. 89
Willis tells Warburg that C.S.H. had dbtlined fron
31liott his opinion given in Jarnary last that Board
had no poser to cut down the Feltral Reserve banks. 89
"
4-14,0-.44.41,Warburg et als summoned Elliott before them. 89
Nlliott sail mort convinced than ever he was right,
especially in view of fact that the banks were
chartered for 20 years. 89
Committse has determined to ask opinion of Cotton. 89
Harding tells Williams that comuittat on redistricting
A/.1,s. S4oe
can not agree. 91
Sail Warburg Aanted to transfer northern Alabama to
Cleveland and Harding agpcsel this. 91 ktowAr%
Redistricting conmittet commits with Cotton md liller. 92 I
ki%)- /o.14401 /Cotton says Board can (rat damn 92 A/040/0, 1...A.A.
Cotton said argument as to 20 year charter was a pin prick
argument. 92
Said courts, however, could he appealed to and Aould take
3 years to itlide. 92 A/Apihkouwww460
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Federal Reserve Bank of St. Louis
s.dor
edi
'
Federal Reerve -Board (Cont.)
Cutting down Federal Reserve banks ani districts (Cont.
)
said grounds advanced by corz.A. tte for chano were weak 1
and inconclu:ztve. 92
Said folly to atemnt ch.inze unle ,s Roz.-xd practically
unanimous. 92
Committee, by calling in Miller, haP, ccmurred without
knowledge of other members. 92
Broderick says nothing in his report on Atlanta indicat
ed
• any very s eri ous condition. 92
Coramittee says will report on Monday Nov. 15, 1915. 93
Minnec.polis paper wired asking if any truth in rumor
that dlinn. bank 'vas to be abolished. 93
Board voted to give out statement that all redistricting
mat'Ars were in hands of oan.Attee which had not
yet reported. 93
Matter of abolishing Minn. bank disc-lased in Board
vaguely. CaniAttee does not say what it will
report. 94 •
C.S.H. says abolishment will be a vindication of Burke
in his race for Senate. 94
Harding vary ugly; said there will be other recam.oindations,
meaning that banks in demo-mtic sections also would
be abolished. 94
Glass tells C.S.H. Board has no pr to abolish banks
and Congress will resent it. 94
Glass very bitter against Warburg.
94
Willis says WarIzarg et als feel that McAdoo won't lard, to
fight them! on cutting davn; that he backed down on
Foreign Aoracies and will on this, fearing that
division in Board will injure administration and
deprive it of its Vest asset, the Federal Reserve sys-em.95
Harding talks with Williams and Williams puts it in
.vriting, the memorandum beirv-; read and approved
by "gar ling 95
This memorandum stated: Majority determined to cut down.
Will re.port accordingly.
Desire report to be submitted to ?resident Wilson
Will vote to put it through unles., Tilson
communicates with Delano ant ass him not
to do It.
In that event, will table it for present. 95
(In other •words,unless ?resident begs for mercy
they will lo their best to destroy Federal
Reserve sys temi)
Warburg says canalittes will abolish Dallas and substitute
NVV Orleans. 95
Gla33 says hao real in p•ipers th.4 sone members favored
cutting dawn, - would be absolutely illegal and
he would give it an interview this afternoon
that such icticn .sould be an affront to
Congress. 97, 98.
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Federal Reserve Bank of St. Louis
1
50.
•
1
Federal Re:;erve Board (Cont.)
Cutting down Federal Reserve banks nd districts (Cont.)
c.s.n. persuades him not to i., ublish it until he .ALW
Mn aaain. 98
GOss over sihola matter with Glass. 98
Glass says has seen McAdoo and he will not publish
interview before seeing me tut will write Delano
at once. 98
Agrees that if cou-Attem sees President they will say
they 111 not cnt down Isecanal the President's
solicitation. 98
Says President should not interfere and I3oard must
fight it out in the 73oard. 98
Says members feel licAdoo exercised an undue influence
over President and would not report the facts to
him fairly. 98
McAdoo indignant at Harding's suggestion; asks u.S.H
to get it in writing. 98
Sali if put in writine sosething might ha'-en at White
House!
98
C.S.i. says proper status for Board even now will
restore good feeling. 99
C.S.H. says Board has grievance as to stAtus, - can not
even Ask opinion of Attorney General etc. 99
says La!ibers have right to ask imrsellate
decision df status. 99
C.S.H. goes to Annapolis with Delano and family - tries
A/pv.14,
to talk about cutting down but Delano arranged to
go in machine with Mrs. Delano, to avoid, C.S.H.
thinks, talking with C..H.
99 14.4....447, bisoi*
Board meets Monday, Nov. 15.
100
Delano files report of caunittem. 100
Reconmends cutting down to 8 or 9 districts and asks
instructions of Board as to preparing a
concrete plan. 121
Report gives alleged reasons for cutting down
districts and asks for instructions to prapart
concrete plan. 100
G.B.H. says ;4cAdoo asks postponement because of le-,th
of his son-in-law, and because of necessity of
completing his annual -port. 100
Delano very ugly; says McAdoo was in town, knew all
about the general question, has hal time to talk
it overwith others not on Board. 100
Warburg says 2 or 3 days is ale fnr consideration.
Matter must be decided at once. Moves meeting
tomorrow to ,decide question. 103
Delano moves special meeting for tomorrow, - Tuesday
Nov. 15, - to take up matter and vote upon it. 100
c.s.n. and Williams said had only rectivei col-)y of
report on Saturday evenirg, Nov. 13, and we should
be allcwed some tills to study it. 100
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Federal Reserve Bank of St. Louis
/.44044
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Fedsral Reserve Board (Cont.)
Cutting down Federal Reserve banks and
districts (Cont.)
Delano asks how much time we wunt. 100
C.S.H. says would like one week. 100
c.f,.H. says in praparing resolution
, not yet realy,
asking coarAttem to state facts on which its
conclusions were based, what figures it had
as
to saving in expenses by cutting down; also
asking whether comuittee had consilerari
opinion that Board could not cut down, and wheth
er
carraittea has secured any oth.ar opinion (mean
ing
from Cotton).
100, 101.
C.S.H. says if Board votes for this resolution
there
can, of course, be no meting toOorrow, or until
the information is sul?plied. 101
Miller blurts oat - some mmmbers evidently wish
to
delay matters, to obstru,
:t it at every stage. 101
Says it makes him inclined to vote for eport wheth
er
he agrees with every detail or not. 101
Delano said he suspected we were trying to ialay
matters and. were not desirous of an honest discu
ssion.
101
C.S.H. asks jiiller if he i3 not entitled to as much
time to consider thi3 vital question as had
alrealy
been given by th committee to other members not
members of the lomtittee (meaning Miller). 101
Miller tail ye. 101
C.S.H. asks giller if he had not attanlei meetings of
the conAttes. 101
Miller denied this indignantly. 101
On further que3tioning, Miller admitted he had. frequently
discussed the matter with the caavaittet. 101
Also aimitted he had. helped committee in framing their
report. 101
Also almitfed he hal 'mitten a material part of the
report. 101
C.S.H. asks Delano if cc:a-Atte, hat not alr,aly prepared
ani agreed upon some specific plan for cutting dim
certain Feleral Reserve banks. 101, 102.
Delano sail absolutely no. 102
asks Delano if coin:Little had not male a map
showing cutting down of certain districts, which map
had been given to Willis. 102
Delano hesitated, And finally said there have been 8 or
9 maps prepared as well as 8 or 9 drafts of the
report filed this a.m. 102
C.S.H
. reads his resolution, just sent in hy Foulk. 102
/ 41",t‘v,
-0,147
Terrific row, charges as to delay repeated, etc. 102
Board votes to table resolution. 4 to 2.
104
11
52.
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Federal Reserve Bank of St. Louis
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Fed3ral Reserva Board (Cont.)
Cutting doom Federal Re,.•erve banks nt iist..icts (Cont.)
C.S.II.. tells Delano that it was of doubtful i)ropriety
for com ittee to consult, ‘Tith some member
to exclusion of others on such a vitally important
matter as this. 102
Delano turned savagely to C.S.1. as if intending to
assault him and. said threateningly .vhat C.S.H. meant.
102
(1.S.H. starts to repeat stitte..ient then Delano yelled
out "I heard it, what do you mean by itl
102
C.S.H. repeats ,itatement. 102
Delano said the committee has been treated shamefully you dc riot want to discuss it honestly. 102
C.S.H. asks Delano if rae...bers of Board not members of
cots..ittee hal not been consulted on any specific
plan of cutting down. 102
Delano yelled out "Neverl"
102
....Omits he had discussed with committee specific
plans and had op-_-)osed several suggestions. 102, 103
Says that while he had. discussed matter with committee
and had helped write their report, it was always
with an "open mind.** 103
Said he was absolutely free to vote in any way upon
request of consuittee for instructions or upon any
specific plan presented. 103
Delano later said. he knew connittet hai a majority of •
Board in favor of instructions to report a planl 103
was final
asked to see McAdoo ani report on
earliest late he could attend. 103
Warburg said. question was simple, - whether or not Board
would instruct coraA t ,
- es to prepare a definite plan.
103
Warburg sail report merely asked instrustions as to this.103
C.S.H. points out that report contains conclusions
setting the whole matter and even stated. that the
Federal Reserve system, as at present constituted,
was a failure. 103
C.S.H. says Board could not instruct committee without
accepting the conclusions in the re-part, and this
would prevent our discussing the statement that
the Fe13ra1 Reserve: system was a failure, - which
C.S.H. vigoro-isly denied. 103
says the conclusions in report as to saving of
expenses of cost of Federal Reserve hates, contained
no fscts to support it. 103, 104.
says before voting Board should know all facts
and figures upon which its conclusions Tilrl based..
104.
C.S.H. asks if com..,ttee had. .alked with any outside
person or banker. 104
All, including Delano, said No. 104
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Federal Reserve Bank of St. Louis
53.
Federal Re.erve Board (Cont.)
ClAting down Federal Reserve Bank o and dist
ricts (Cont.)
Harding then said he had tA.ked with one
of his
Senators Ls to political effect of cutt
ing
down. 104
0.S.H cr Williams asks if any memb
er bad talked
with sec. Houstcn. 104
All said No except Miller who rema
ined silent. 104
Williams said., am I right in understa
nding tht no
member ha,; talked. with Houston? 104
Miller made no reply. 104
Delano said IcAdoo told some
one that one bank would
be abolished and he won't deny
this. 104
C.S.H. and Willtama go to McAd
oo's house. 104
McAdoo writes letter appointi
ng net Monday for
m3Aing and says hopes C..H.
resolution will be
i
approved by Board.. 104
/ s.,A4 4y Delano says committee
at Fleeting on ?Ilonday will give
all details asked for in C.C.
H. resolution. 104
willias move for stenographer
at future meetings
in this report. 104, 105.
Delano violently opposes unless
Board will ”ote that
in future all me,:tings of every natu
re shall be
taxen down by atenodrapher. 105
Delano asks Williams why he made
this motion. 105
Williams says Congress may call for
a report and it
'Nag desirable to have it accurate
.105
Warburg says Board would refuse
to give report to
Congres_:. 105
C.S.H. asks him to repeat, and Warb
urg said it would
be a bad precedent to give such i.nf
ormation to
Condress. 106
Hardin moves to table Wi11ia13 otic
n. 105
ir
Voted to table, - 4 to 2. 105
Willisms moves Board reconsider its
tabling of
C.S.TI. resolution. 105
rules Williams can not so move, as he
voted
against tabling. 105
Miller finally =gel to reconsider
in order to give
UA a copy of attorney's q2in
ion. (Prr:bably Cotton)105
130Ari votes to reconsid
er. 105
Another d?neral row. 105
Al#4,
Voted, Igain, to table C.S.H. resolution,
4 to 2. 105
Delano says committee will give all
information asked.
for, at meeting Monday, but declines to
give
advance information "to be shot at".
105
Delano said!
Had treated corzAttee shamefully
Not acting in good faith
Were not honest
Playing for delay
vat tib Qzging. 105
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Federal Reserve Bank of St. Louis
54.
.. .
4),-.1„;
Federal Reserve Board, (Cont.)
Cutting down Federal Re6erve banke, and cl.illtriots (Cont.)
ratainds Delano that in that morning
444.'4
he said that ,after obtaintng the information
he aaked for by hi ra .;oluticn, he should ask
for only one wk to study it, and then mould
be willing to vote. 106
C.S.H. says if not noN giv -in the infonuaticn or
before nect meeting he should then '_131'. for one
Neek to study it. 106
C.S.H. said if you consider this playing for Aalay
or p?ttis;ogging he shall nevertheless insist on
it. 106
745.11er says
attitude ;. uakes him want to vote
"the whole hog" and that "da:uned auickl"
106
Miller ,:a3T3 a 13oard member inspired the attack of
3urk a on 14inn. bank. 106
asks hi:n to name the member and he said - S.
McAdoo. 106
Delano said he kneN this ma; true, Ind that McAdoo
would not deny it. 106
williams then sail - "I understand no member directly
or indirectly has consulted with Se:. Houstcn?" 106
All denied except 4i11er -,ho remained silent. ;06
Harding repeated that he hai consulted with one Of
his Senators as to political effect of cutting
down iistricts. 106
larding raised question whethet C.S.H. hai right to
record McAdoo in favor of C.S.H. resolution. 107
C.S.H. said No except by unanimous consent; that
Board hitherto hal always granted .2.ch consent. 107
Harding did not pres . the cint. 107
Delano said copy of report should be sent to Houston. 107
Williams said that, as coanit tee had sent coy to
Glass, one should be sent to Sen. Owen. 107
C..H. agrees. Hitter debate and no action. 107
Miller s-;dienly sail he was about ready to move that
whole report be made public. 107
wqr,14,•444? C.S.H. said would not object were it not for statement L.
of want of confidence in Federal 1).1 .. ,erve system,
1
which would disturb the country and might cause
financial trouble. 107
Wild burst of hilarity from Delano, Harding,
and Warburg. 107
Warburg, a few minuteq later, aid he would lik- t(d
read the report again, tha- he had not _yet read
it caul-0.31;4z, as he only received it Sunday
afternoon, or this =riling on his return from
107
Said he would . like to r,trike out anything which right
disturb the public:
107
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Federal Reserve Bank of St. Louis
-vv-vgwormrvvr,
55.
Federal Reeerve Board (Cont.)
Cutting down Federal Reserve bank
s and districts (Cont.)
Delano attacks Williams; says he
will never admit
any error in Reeerve 13ank Organiza
tion Cora:4 ttee;
would raver admit he 'was in erro
r in anything. 107
Harding said atenographer :it Rich
mond hearing before
Re:erve lank Organization Caw-Atte
gave a falae
re)ort of vhat actually occurred
. 107
Delano again said:
Ccnildttee treated shamefully. 108
Tryi
ng to prevent honest discussion.
fry- I r 1
0400,41
Sail matter could have been disc
ussed. in 3 ways:
1. Legality
2. Expediency
3. By pettifogging methods which Ne
were
follo-ving, unworthy of gentlemen
end of Board. 108
Said Elliott had changed o)inton and
now agreed
with Cotton that Board 'could cut
down. 108
C.S.H. said no lawyer of repute would
give
such an opinion. 108
(see C.S.H. letter to Delano, date
d 7ov. 16.
"glowing reply of C.S.H.)
Said Sen. Owen, at Oklahcraa hearing,
said Board
would cut down. 108
Delano's reference to expediency
evidently refers to
'!arling ultimatum to 'orestient
Tilson. 108
One of can.Attee said, if instruct
ed to report, could
report in 2 ur 3 days. 108
Williams says Harding ezarained and
approved. Williams
printed statement as to ultimatum
to President Wilson 108
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, IL-trding said he h.hri reported
this talk with williams,
s evidenced by the memorandum
to his colleagues. 108
Willis said Delano's at itement
that committee had not
agreed on ,'Arly epecific 1:3.en or map
may have been
technica.13,y true at that =cent, but
that at one
time the ecirraittee had egreed and
hal prepared a map
accordingly (evii ntly the one Hard
ing chewed. to
Will ians) 109
Said he pointed out so many objectio
n:3 to the plan that
the ecca,.ittee becaws divided as to
certain phases of
IS. (e. g. Iiiller objected. to abol
ishing Boston) 109
I4cAdoo by letters to Delano and iall
er saye C.S.H. told
him of their cturee that he inci
ted Burke to attack
14inn. bank and demeriled their auth
ority. 109
C.S.H. felt it his duty to tell 4cAd
oo as it vvas a
deliberate charge made in meeting
of Board. 109
'rites Delano asking that map ref rred
to by
Harding in his talk with him (on ulti
matum) be
nroducei at next meeting, also that
the opinions of
ani Cotton be produced.. 109
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Federal Reserve Bank of St. Louis
56.
Federal Reserve Board (Cont.)
Cutting down Federal Reserve banks and distr
icts (Cont.)
Delay) asks Federal Advisory Council at
their meeting
for opinion as to anything which could be
lone
to strengthen the Federal Reserve srte,r, evidently hoping so:e one would suggest cutti
ng
down of districts, - but no one reP:ponded.
110
kw/740444,
McAdoo tells C.S.H. that Delano said C.S.H
. did not
quote him quite correctly arvi that Mille
r said
same and hat C.S.H. shculd be more careful.
111
C.S.H. explains to Board why he told McAdoo
of charges
of Miller and Delano. 111
Nearly broke his heart to do it. 111
Made at negular meeting of Board.111
Felt it his duty to McAdoo. 111
Delano says loe not renamber saying that McAdo
o told
someone that
bank would be abolished. 111
Miller said did not narae dicAdoo but said
he urderstood
that a a4ealber of Board had ins:Arad Burkels attac
k
an Minn. bank, and that Delano said it
was
sec. McAdoo. 111
Miller added that if C.S.H.ts memory was a3
faulty on
all matters as on this, it was not much
good. 111
C.S.H. said he made a written memorandum of what
they
said in that day, 'rat would gladly accept their
statement that he had not quoted them corre
ctly. 111
(Is positive, hovevar, he quoted them correctly)
Delano said he was the guilty parson anl knew
he was
correct on the authority of two people. 111
Board reads record. 111
Delano insists on keeping in wIlt he 3aid about
the 3
possible courses and pettifogging. 1P, 112.
Delano later said he had lost his temper Aonda
r and
doUbtl'ess had said much which he ought not to
have
said. 112
Rail beca,:se angry at imputation that comli
ttee was trying
to "steam roller" the matter through. 112
Admitted that he said committee had 4 votes in firor
of
the report but that Mier had not directly made any
promise as to this vote. 112
C.S.H. said he intended to make a complete reply
to every
attack an him, but should wait a while that
his
words should be measured. 112
Williatils moves to send coy of report to --loasto
n. 112
Miller moved to ref - r to committee. 112
oi
latrO,C
04.4
Delano said coaLittee is to make A.nother repor
t, striking
oat certin statements in present report, and will
ask to substitute it for original report, and that,
therefore, tiler? was no occasion for sending col)iss
now of original report to 7aAtoil or Owen. 112
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Federal Reserve Bank of St. Louis
kt,
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17. 6.
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Federal Reserve Board (Cont.)
Cuttin6 down Federal Reserve bunki; and districts (Cont.)
Miller said he was satisfied, on reacting report
that there were statements in it which might
give a false t oreslon, and thAt, to a certain
extent, C..H. was justified in hi? criticisms
of it. 112
C..H. asks Mier if he does not nom agree with position
then taken by C.S.H. that Board could not vote it
for the report with
ratifying its dWigtAtt'
and conclusions based on ,7acts and experiences
not reported in detail. 112
Miller '.;aid yes, 112
C.S.H. ruled that as oomittea had not been discharged
it could make another report if it desired and
Board could then decide, when offered, what action
to take on it. 112, 113.
Finally agreed matter of sending copy tc Houston and Owen
should be left tc ccm:Ittee. 113
Delano said would write Glass to return original report
as camittee may put in another. 113
P
Lyerly says Federal Advisory Connctl coniidered cutting
down of districts and while m.trly believed it could
wisely be done, ill agreed that such action should
not be considerell at present time. 114 .
Delano ghes C.S.H. new draft of re2ort wLich co.:Atte°
will ask to he substiuted at meeting on Monday. 114
In this draft, committee mIrely strikes out 5 or 6 pages
in which they save reasons for cutting down. 114
Done evilently to avoid having to give facts and figures
on Which original report based. 114
C.S.H. believes Delano will non decline to give data
asked for in C.S.H. resolution. 114, 115.
Willis says 3ammittee gave him proposed plan and map
and aatd it was tentatively agreed upon, but that
they had taken them back and now had them in their
possassicn. 115
Said also Cottcn t*Etri discussed matter with Miller in
detail. 115
iat'I:1.11er was weakAning. 115
Sen. Owen talks with C.S.H. 115
Said c Cy of re2ort had been given him. 115
Furious. Said Congress would intervene. 115
Charga'z will be brought against calAttee. 115
Sail satisfied loard hal no ouch power and if he
said it had poitlr at aclahoma hearing, as C.S.H.
1-:.ointed out, he was broad enough to change his
opinion After study of question. 115
kLt, a•S44. senator Sinth (aka) talks with C.S.H. 115
Terribly stirred up. 115
Has just talked with Harding. 115
I.
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Federal Reserve Bank of St. Louis
58.
Fedral Reserve Board (Cont.)
Cutting down Federal Reserve banks and districts (Cont.)
Senator Smith (Hoke) tall-s with C.S.H. (Cont.)
AtiV11.(44
Harding is weakening. 115
Told Harding each bank abolished would institute
court proceedings. 115
Harding finally said would not vote for any measure
sure to result in law suit.115
Trard.ng asks Willis to act az intermediary between
comittee and McAdoo. 116
Asks millis to tell McAdoo, at his house, tnat liarding
would like to talk with him in Willis's presence. 116
Tolls Willis ha, and C..H., thinks he adi.1 also, the
:oittel would be willing to postporn cutting
down if McAdoo would yield on certain other
differences, e.g. open ruarket posers and clearings. 116
(Probably Harding referred to his own views on
clearings, and to Walturgla views on open market
powers. Delano wants clearing systam put
through but is wobbly on open market powers). 116
Aluv-t. 0,44,4 Told Willis later committee would compromise if McAdoo
would agree to remove Starek at N.Y. and force
Comptroller to give all examiners ,
.eports to
Federal Reerve Agents. 116
McAdoo told Willis would see Harding tomorrow, ',Ilinday,
Nov. 21, but preferred that Willis be not present. 116
C.S.H. and McAdoo agree they will never compromise by
changing vote on any other matter. 116
C.S.H. returning from dinner. Nov. 20, 1915, at 10:30
P.4. found message from McAdoo to call hi u up. 116
Ai.4%0444
&Ado° asks C.S.H. to Nrite President Wilson, as
Governor of tne Board, and request him to obtain from
Attorney General an opinion as to power of Board to
cut down districts and aboliah banks. 116
C.S.H. prepares letter to send to President in morning. 116
McAdoo said he mould do it, had he not been a member of
reserve bank organization committee. 116, 117.
C.S.H. received Cotton's opinion that Board hai this
power only late this (itturday p.m. - too lats to
call meeting of 3oard. 117
C.S.H. feels any citizen at any time can iddress
President on any subject. 117
C.S.H. felt, in view of conflicting opinions of laliott
and Cotton, it was of vital importance to have
opinion of Attorney General to lay before Board on
Monday. 117
0. t
McAdoo calla C.S.H. up Sunday. 117
:aid he got C.S.H, letter and it was being attended to.117
C.S.H. says he has prepared a merf.orantam with some new
Ad 1 I 44%47
ideas in the matter and McAdoo askei him to send
it to Attorney General. 117
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Federal Reserve Bank of St. Louis
59.
Federal Rec.;erve Board (Cont.)
Cutting down Federal Reslrve banks anl. ditrictri (Cont.)
McAdoo - aid he had talked with Harding who said he woUld
4)4,0 1.1,
not 'rote to precipitate a law wait and, therefore,
wibuld vote to lism;.ss the whole mater. 117
4c
McAdoo 'Aaid he male no promise to Haring, nor did
Harding ask for any. 117
Id 0)2.1. 44-•447 President Wilson sends C.S.H. a note, Monlay morning,
November 22. 118
Said he would ask ocinion from Attorney General with
pliasure. 118
Attorney General aenis pinion to
saying Thr)ard h:s
no such power. 118
if 12, et4.4••441 Board meeting 11 a.m. MonJay Nov. 22, 1915.
McAdoo tells ncard has fcr some time wanted
Attorney General to Five him an of'Acial
o2inion to enable him to vote on matter as
Chairman of '9,oard. 118
McAdoo said he had gent Attorney GenerAl all material
locuments, data, etc. i0T.3 lays Ai:o. 118
Said Attorney Genaral had. been looking into matter. 118
Said he (idcAdoo) had. received Cotton's o7inion on
Saturday, and felt Attorney General's opinton
should be isked. 118
it was embarrassing for hi.:11 to ask his o9inion, as
he was a former member of Reserve Bank r:rgantzation
I
Ca ittee. 118
aid no time to spare as he assumed matter must be voted
on by Board todv. 118
Said he tneret'ore asked C.S.H. to write to President and
ask him to obtain ooinion from Attorney General
Urld. that the a-Anir.11 0.9 here. 118
C.S.H. reads his letter to ?resident and his reply. 118
C.S.H. lays a?inten of Attorney Gen3ral before Board. 118
C.S.H. tells Board if there had. been any aleting he
would have told lizard what he intended to do. 118
4f.
C.S.H. said he hal every reason to believe matter would
be continuously debated beginnin:L that lay, and
that in view of conflicting o:DiniLns of our
counsel, it was most important tc have before the
loard the oinion of the Attorney General. 118, 119.
That the Attorney General had been working On it
for 30111 days in accordance with ,IcAdoots
informal request. 119
C.S.H. added that in his letter to Preild ent he made the
request al a mamber of the Board as well as Governor: 119 I
That any member had the right to see or write the
Preliident uprn any matter. 119
That he had signed the letter as Governor because
that was his official title. 119
Rioting almost followed. 119
MillerT
s
clu;y;:ou took orders from the Secretary of the
119
60.
Federal Reserve Board (Cont.)
Cutting down Federal Reserve banks ant distriotii (Cont.)
C.S.Ti. :laid he rioted on own volition awl. as:Aline (1.
Ai
entire ,-ecpcnsibility for action. 119
warburg, Delano and Harlin.: very ugly. 119
Said Governor is eerv,..-Int of 13oard. 119
No right to addreis Dresident withollt vote of Board. 119 (
C .S.H. ;aid. impossi )1e to call a m?.--!ting, the natter was
an e:-:lergency and he hi to act at.; he dee:aed best. 119 )
:died h- ?1,3Ver supposed. any member would object
to an opinion from the Attorney General, especially
in view of the conflicting o:An'..cnb of Board,*
counsel. 119
All sstii they we -8 deli,
hted to have the °Anion but
shocked at C.F.H. writii oresidsnt without vote
of -Board. 120
McAdoo said to :4il1er that the proceedings ,vrere subject
to rules of parliamentary law, ant that he would
permit no naT-Lber to insult or impute irrropar
.notives to :Another. 120
This scluelchadi'liller. 120
C.3.H, could have but did not remind Delano that he and
Gov. Strong conferrel with ,iorgan
'7°1.
wi.thcui k.ww13133 or authority of Board. 120.
All said watter ccrold not rest there and. that
Governor's powers must be defined. 120
k kiv • 440.441 '2.S.H. reads
letter from Senator He Smith protecting
against cutting down. 120
reads letter from Senator Owen, protesting
against a plan which he said abolished 71cton.
Cleveland, Minneapolis, Dallas and Atlanta,
consolii?..ted. St. Louis :And Kansas City. 120
3.3.H. reminds Board that McAdoo h1. told. Board he had
sent Sen. Owen a copy of the report. 120
saye San. Owen asked him directly what districts
ccrtittea wished to abolish. 120
C.S.H. says he told Owen that Delano aaid cornittee
had not
rssi on any specific plan but that
'Xillia.as said tlarling had. offered him a map and
that, while he had. not examined it, Urdinj.hal
told hirii that it abolished Boston,
Cl rreland
(substituting Cinz i nnati) that it consolidated
Kansas City with St. LOU/3 Atlanta with Ricon4
rude New Orleans a Federal Ileivirve Bank and
Baltimore to PhiL;kdelphia. 121
C.S.H. sail this explained Sen. Oven's reflrenc - to
it specific plan. 121
Warburg very bitter. Says this letter must be answerid .121.
AIN 7 2
Warburg says he never advocated transferring Boston
tO N. Y. 121
Thie statement is in direct contradiction to Willis
who aaid Miller hal objected to Warburg pl.gi of •
consolidating Boston •Arith '1.Y. 121
0.44.46461
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#41.44.4447
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Federal Reserve Bank of St. Louis
)rn
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
od 14.
4448.4G4•7
...
•
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Federal Reserve Board (Cont.)
Cutting down Federal Raki 3rve banks arel districts (Cont.)
1,110116ns moves for stenographer. 121
All L;airi delighted if Inade a universal rule for all
future meetings; other\vise would oppose it. 121
Harding moved that any two members could demand a
stenographer. 121
williams moved for stenographer for this meeting and
that later any 2 members ecru) d &rani a
stenographer. 121
witMraws motion on McAdoo's request. 121
reveited by Board to ask Attorney General not
to publish his opinion for the pretient, to which
all agreed. 121
Attorney General ilgreed to this. 122
C.S.H. writes PreAdent to isALle eff3ct. 122
Discussion resimied. 3 p.m.
Warburg 6.aid?
Comaittee put in false positton. 122
Speed at which o-.1.nion was raciived ehows
ore trying to prevent r3oard action. 122
C.s;.H. asks if he raferI to 'resident. 122.
Warburg says, somewhat .hashed, No. 122
-narburg later sail:
Board put in position detriaientz--1 to its
usefulness and dignity. 122
ctraordinary for Governor to write President. 122
Governor is zi.-3rvant, of 30txtri. 122
Would gladly have postponed debate in order to
obtain
of \ttorney General 122
Had no intention of forcing a vote on Monday. 122
Glad to iis1U3S salter in Ivery rtspect. 122
introduced a resolution in order to delay
matters. 122
Delano sail cors-littee hai no intention to crowd debate 122
U.S.H. reminds Warburg and Delano that
at they call
w
unreasonable delay •vas werely a request for one
veekts time to e (amine facts on which committee
based its eorclusicns, which facts it did not
report. 122
That Delano moved to take up matter the next, lay
in s-pite of request of McAdoo for a reasonable
aljoarrrtent until he could be present. 122
Tat ;41i11er sail there was no need of any debate;
that we knew all about it nos. 122
That Warburg said matter must be elect ded at once
and that at the outside, two days would he
amis. 122, 123. .
WilliaLns reminded Delano that he ciaid that if not
41 S4 I
decided before 1ondn.y, Harding would be away. 120
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Federal Reserve Bank of St. Louis
62.
$4# zi. 14.4.44144
•
Federal Reserve Board (Cont.)
Cutting damn Federal Reserve banks and dirtricts (Cont.)
Also reminded Delano that he said that other members
were going away and that it would "ce December 6
be % 444`441
before we coal- d come together again, which wunld
ba odt of the queeti on. 123
None of them denied this. 123
C.S.H. reminded them that Delano had twice said he had
4 votes in favor of cutting down districts and
Federal Reserve banks. 123
3ays this is true, but denies that he had pledged ij
his vote. 123
C.S.U.
in 3ays he 4Ii every reason to believe the
matter would be kept in debate, beginning '
,Imlay.,
until settled. • 123
That while coumittee now-said they would be glad
)
- C4
to discuss the law, in their originell rort
they said they hi considered the law and that
Elliott had changed his opinion and agreed with Cotton
that Board could lawfully cut down. 123
Delano denied this with sor:.1 2valifications. 123
C
told Elliott '!onday evening 7ov. 15, what Delano
had said, in Willias pre-yence, and Elliott said
it Was not tree. 123
Av6sitvALA1 C.S.H. also pointed out that the 2nd report omitted this
*I*
staAment that com.ittee ha i lonsidered the legal
aspects. 123
).1.4k1.4 Delano then said Board had. consented to have let report lee'
withdrawn and 2nd report lubstitated. 123
C.S.H. denied tnie and laid Board hal merely consented
to receive the 2nd report and that he hat rulel that,
the comaitte- not having been discharged, it co'31d
wake a 2nd report and the Board would then decide
what to lo with it; that the Board had simply voted
to receive it.
124
Willis said this was true. 124
Warburg and Delsno then aid committee would have asked
for no action except by uananimous vote of Board, - f
a statevaent so palpably untrue that it made C.5.11.
fairly guehl
124
Harding said committee had, been put in false light with
the ?resident who bail been led to believe that they
intended "snae" action. 124
AcAloo said attvons can write to President. 124
Delano tells C.S.H. that Warburg will make remonstrance
as to
letter to ?resident. 124
C.9.H. says he can do this and, in such case, C.S.H.
will write Preeident giving hi-, his written au:10cant
of everything which had transpired. 124
C..R. says his written asecunt contairs strong
expreasiona of o,cinion and strong comments and will
show clezly C.S.H. reasons for belief that the
car.vAttee and Miller intended to jam through
redistricting plan. 124
63.
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Federal Reserve Bank of St. Louis
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Federal Re-iorv Board (Cont.)
Cutting down Federed Reserve banks and districts (Cont.)
said it would give him pleasure tc have
Warburg remonstrate. 124
Warburg reminds C.S.H. that at meeting of NOv. 15 he
said he would cancel his sonthern angagem.ent. 124
,$),..o Warburg later 6aid., however, that the pressure was so
great he would probably have to go. 125
Iks
This 3tatement does not change C.S.H. belief t-fiat he
N"'
intended to force a vote on Monday, - he was not to
go away until Monday evening. 125
Delano finally:uoved that vhole matter be tabled indefinitely
and it was carried umtnimcusly. 126
C.S.H. believes :tiller must have told •coanittee h3 should
vote against cutting down And that this wad. the
reason
for Delano's mott:n. 126
AnNo
then Nithilrew his motion on his resoluticn, the
whole mater having been tabled. 126
Warburg said he wished. to go on record that his firms
unchangeable belief was that the Federal Re!Lerve
system could not spicceed with 12 banks and. should
be cut down to 8 or 9.
12.6
Delano reads long memorandum to -loard deprecating person 1
disputes and urginc: harmony. 131
Talked cl3 .
4 f he was the only harmonious person on
the Board. 131
4****47
Ha admitted, however, that with others he had, lone
things he ought not to have done. 131
McAdoo calla on ea.lh member and we all agree that 11
differences 3hould be -united. 131
Willis talks with
Delano Asked him one day whether Warburg had shown
him anything. 131
vfillis said yes - a type.yritten re-,-,ort and map,
Tatting down liltric,•ts and abolishing 4 banks. 131
Delano said he would have spoken to him of it before,
but he feared Warburg might not like it. 131
Delano said it was innortant to keep it secret. 131
Willis said cf coirse he would not give it out. 131
Delano said, *I mean, secret from other memb,rb of
the Tioardl" 131
atd Warburg called him into his office to road a
typevritten coy or the report, - the one
offered to Williams by Harding. 131
Warburg would not let it go out of his office. 131
Committee undecided whether or not to insert a
definite plan of cutting down in let report. 132
Miller had, talked with him as to advisability of
this, spending .At one ttaa over an hour
Arguing in favor of a general plan for c-ltIng
down. 132
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Federal Reserve Bank of St. Louis
64.
. ..
Re-erve Board (Cod.)
Cutting dawn Federal Reerve bankr, and Aistricts (Cont.)
Willis s-id!
Willis absolutely dil:agreed with Miller. 132
Warburg says wouli have been glad to postpcne
.4tter:, to awalt opini.(21 fro,n Attorney
General, as would not care to lo anythinr:
which would remit in legal 'proceedings. 132
Willis sii Warburg said, previous to row at
first ;tasting, that he II I not care if legal
proceedings did result .xith trouble for a
weeks. 132
satisfied,
- a deliberate conspiracy to
,„•4•47
tv1
.1,
44,,,
4
4
k
jam thro-:gh reli:stricting befor?. Conire2:s
could meet. 132
'1•404
•441 Tloard meeting, Dec. 1, 1915.
Discussing of minute s of meeting of '',7ov. 22. 135
one
Wtl1i reads two statements, one long
abbreviated. 135
Pleased no one. 135
Delano and Miller fi-ored a short report, ,vntle
warburs and (larding flvored a complete one. 135
Haritn7 said he bad drawn a report as to C.S.H •
letter to ?resident, but that it had not ')een
1-.)assed
.
on by cawaittee. 135
ci tl.E. :said 31.11 to ha7,71 committee take any action
it pleased, but that if the Isere critici zed
he shoild file a complete s tat anent jutifyinz,
his action by the emergency which existed.. 135
Miller comolained of ex3cutive interferinc.?,
ri1ent by name. 135
referring to th
said emergency exitel just as when Dllano
visited Morgan and Col. House. 135
allano said he did this as an individual. 135
he wrote 73re:silent as an individual as
well as Governor. 135, 136.
.1 1111er reads a long it=itement. 136
AtIllts he wrote whole report of morzaittee. 136
Admits he hal. consulted with com!nittee as to
specific plans. 136
Tnis is absol'itely inconsistent \vith his
statement of Nov. 15. 136
vorl: of Organization Com-Attee badly done. 136
Said AcA.dco very foo1i,41 nct to cooperate now
ttnd correct errors frolii within, which
would otherwise surely be corre •ted fro
without, and that this might men a
reduction to 3 or 4 districts. 136
T.S7.1q. suggeited it might mean, wIthout
upre in Lny °Anton, an increase to
15 or 20 districts. 136
44
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http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
55.
4
(04.04.4
•
Federal Reserve Board (Cbnt.)
districts (Cont.)
Cutting down Fedlral Reasrve banks
^;.F1,H. calls for last plan of co/is:Att.-le and
1 • '114e.'
report on which it was based. 136
Delano Ays, - for what ulterior Imrpoae do you
vilt it? 136
Warburg says raight agree to C.S.H. seeing it if he
wi.L. agree never fo spfeilk of it or 3h0w it to
• anyone. 136
C.S.H. s.-iys ha has no."ulterior purpose" nor hal he,
up to thi:, time, any thought of showing it to
anyone, but that he would make no agreement.as to t
condition of seang what was tha property of the
Board, 136, 137.
Delano final'y sant uo ani brcraght down
1fr
41
follows:
1. Aarkad as Sarlingls plan
" Delano
3.
" Willis criticism of camiittae
?lan. (Se3) 137
Warburh mutters acciething about alternative plans. 137
Willis very angry at reference to his is;t2 And asks
5 minutes to explain. 137
Said he was appointed secretary of Coumittee but
had not been „Isked to attend a single ,:aeting.137
Said Warbur brought him a draft of report and asked
him to delimit the districts. 137
That this report abolished 4 banks. 137
That Warburg and Delano enjoined secrecy. 137
Delano said he was glad Willis had not mentioned it to
anyone as it would have "queered" htm with
Warburg. 137
Willis explained, that he had talked with C.S.H. after
Harding's talk with Williams, - (ultimatum) 137
Willis later told C.S.H. that the plan abolished Boston, E
ranneapolis, etc. 137
Warburg came in
While Willis was talkirg vith
and gave C.S.H. 2 plane, neither of which
abolished Boston. 137
Warburg said at morning session ITarding alone favored
abolishing Bolton bacausa Atlanta and Dallas
137
were to be 4bo1i,hel.
This is in direct conflict with what Willis sali. 137
Delano comes into 0.3.11. office and has talk. 136
C.S.F. said he thcuRht Delano lid not want to talk
on Annapolis tri. 138
Delano sail no true, that his wife askel hi* to ride
with laer. 136
,i4ys a frank talk might have avoided much troUbls.136
out E4.rdinz1 s ultimatam
0.S.7. s.peaks to Delano
to ?raiiient. 138
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Federal Reserve Bank of St. Louis
66.
Federal T3eLerve 7loard (Cont.)
Cutting down Federal Redervs banks and districtsCCont.)
Triew that Harding
Delano at first seerAld to
spoke only for himself. 138
(7.%Ij. reminded hi.a that 7ardinz said on Nov. 15
1
that he had reported ht::: tAlk Nith Williams
to his colleagues. 138
6,t4IklA*4L7
Delano remained silent. 138
Williams said it mas atatel at one of the roofings
that the loymittee asked Tiarling to sae Williams. 136 i
Warburg, in discussing the minutes, kept saying "Are
138
must not forge the records."
do not want
Miller
Delano
and
that
C.S.H. explains
to record the
simply
but
recordsw
the
to "forge
resolutions, votes, reports, etc. without
attem-pting to state in full the d4hates, bitter
remarks, etc. 138
warburE atmits that debates need not be .i'corded. 138
444, .144#0441 CI,5•11, finds in his pAperc a copy of letter fram
Williams to McAdoo. 139z
This letter v.tys:
I enclose memorandum of an intervieN with Harding.139
Harding has eeen and confirmed this mamorandua. 139
'Haritng asl%i lee to say to you that then cUled
on you 2 or 3 eveninga ai7o, he carried
with him a cov of the committee's report,
posed redistricting
with a mai:. showing the pro,
to leave
caunittee
the
from
with -permission
139
your
infonzaticn.
it with you for
Hardinr: s.iya he nom has it on his desk and mill
send it to you, should you care to '333 it,
before it is submitted to the '301rd next meek.139
Williams adds: Personally, t have not seen the report or the
T.13 meracrantm referred to states in detail the
(ultiml.t.mm) talk of Hardin,z with Williams 139
In it Ra - ding -states hid prol:psitian is between
man and man. 139
Harding, in e ting of Board on 40v. 15 said he
)C
reported this converiatir_n to his
colleagues and none Lf them questioned or
denied his e:athority. 139
This map, he told Williams, abolished -loston. 139
he.
)'‘
F
Meeting, Friday, Dec. 3, 1 915
Delano presenta a 3d dr..,ft of recrt of
cam ittee. 142
An attempt to justify ca-saittee. 142
Contained many errors of fact. 142
SpealLs of dilatory mathods. 143
Says casmittere will not now criticize C.S.H.
for vriting to President. 143
C.S.q. says to Cbjection to report being
recAved providel certain errors
of fact were stricken out, also
the reflren!o to letter of C.S.H.
to Prelident. 142
67.
Federal Reserve Board (Cont.)
Cutting down Federal Reserve banka and districts (Cont.)
Delano and Hardlnc said they would look into this. 142
tk.A& 3A.4.44
,
agrres, if facts corrected, report could be
filed as of today, but said if propriety of his
writing to l'resident was referred to, he should
file A report justifying hisacticn. 142
Long wranale aa to minutes of meetings of Nov. 15, 22,
and 29. 142
C.3.H. suggests certain J.J.ditions. 142
44441-AmAi
Aseting, sat. De:. i, 1915. 145
C.S.H. says certain statements in 3rd draft of
re7)ort make it necessary for ixira to place
.on record is full reason for writing to
the President. 145
C.S.i. had already vritten Delano to same effct,
fully conceding the right of committee to file
any report it wished, until discharged, and
right of Board to make any disposition of it
it should see fit. 145
C.S.H. says willing to leave matter as it now
.stool on the record, but if committee wishes
to put into the report which it seemed to C.S.H
should '13 answered it was for the to determine 145
Williams said. he should file an elsver. 145
Committee aik C.S.H. to point out his criticisms
141,
C.S.H. points olt certain clear errors of
atate:Lent, also references to dilatory tactics,
letter to the ?resident, et-. 145
(ese C.:.H. letter to Delano)
Delano iaye cora ittae aaght to look renort over
and perha9s revise it. 145
Harding said these :caters should be kept in and
could .then 4new4r them in any lay
ha ehose. 145
Warburg leaned to Delano's view "milt insited on
keeping in the reference to C.S.g. writing
to the President. 14b, 146
Agreed finally committee could consider .aatter
and file report Later in any farm it vishel.
146
All of them insisted on keepng in the report
the st,tement that if the Attorney Gereral
hal known that branches were to be established
in every district abolished, he would not
have used such language as to the banks
"rooting in the ±round" etc. 116
C.S.H. potnta c- t that branches were not referred
to in either of the drafts of the corigAttee
)C
report or in Cotton's opinion, - which Ass
sent to the Attorney General. 146
V.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
101
'Soh
•
„ ,...imemormumminsisi
. miemiwommomit
Federal Reserve Board (Cont.)
Cutting down Fedral Re..3rve banks ,,nd districts
(Cont.)
They replied that if Board had discuBsed the r:4att
er
on the merits, this would have appeared. 116
c.s.H. points out th-t bran would be a diffirent
corporation frc the abolished Fed:-ral Reserve
bank, both ‘..0 to capi - 1 and perpaps as to
territory; that 4 out of 7 directors of a branc
h
are appointed by the director:: of the Federal
Revervis bank and their tenure would be at
pleasure of the Federal Re,yerve bank directors.
146
Warburg said all of the director of the aboli
shed
bank would be at once appoInted iirector3 of
the
branch bank. 146
Williaa:s asks Warburg's authority for statement
as to
what the directors of the parent bank would
do.146
Branch banks ire created, not by the Feiral
Re:-3erve
3oard baby the Federal Relerve bank. 116, 147.
Delano said that while in tnn. he hd discu
zsed this
very matter with Jaffry wno .aid it would
be
better for the Ainn. district if it were
abolished provided A brarch of the Chicazo bank
vere put in j3 place. 147
Delano quickly added thlt all ha tilussed
Arith Jaffray
vas the consral 1:.atter of abolishing the bl,rik
tel by '3urke. 147
(Delano he
zontralicted hUself for ha Jail on
Nov. 15, in rt7,1y to a specIfic questicn frau C.S.H
that no member of he c:mmittee hal talked with
any outside person or banker reTarlirp the ratte
r
of abolishing banks. See -page 104)
Delano -aid that if :ilcAico had been present
0(44
1.611
at meeting
of Nov. 15, there ‘,7ou1d have been no row cr
misutleratanding. 147
Warburg said. C.S.7. snl
3hould ..i:ologize to
the committee for their ccnducti
147
Williaa.s replied he had been daily expec
ting an
apology from the comittee. 147
Willis tells C.S.H. that the statement in
the minutes
of the meAing of Nov. 22 or Nov. 29 - that
wsrburg said that anyone whc would not agree that
the distrilts and banks should -on cut down to
8
vas an enemy of the Federal Re:i3rve ay:Aar:,
- vas
absolutely correct. 148
Willis says Delano admitted that Warburg said
this but
said that Warburg had lost his teml;er an that the
words should not be recorded. 149
Delano lends C.S.F. a new draft of the 3rd report.
148
It adopted most of C..7.'s TaAgetions. 148
Retained, hosever, statement as to C.S.H. letter
to ?reiiient, and also a refrenle to the
Attorney rleneral and branches. 148
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Federal Reserve Bank of St. Louis
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69.
Federal Reserve Board (Cont.)
Cutting down Federal Hessr,re banks and districtb (Cont.
)
C.S.H.11 prepares answer to send Delano. 148
considere preparing a statauent shewing all the
fssts which justified his letter to the President. 148
Williams =vas that ccss- Attee at once file with Board
1.sos.q..14471
all data et. shish they had said were in
their possession wnen they filei the first
dr.-ft of reort. 148
Delano said corssittge would be villing to prepare these.
146
Williame points out that in the original lrAft of
report the so:ssittee stated it already hal thia
date.. 148, 149.
williagm said this :otion nsed not be acted on today
but could stand with liberty tc bring it up at
any future meeting, and this was agreed to. 149
Delano
WW3s that 3r1 draft shall be sonsilerld
'
filld
eubjelt to wish chengss ae co,Attee may decide
to slake, ani that further discussion be postponed
until Tiardingis rsturn from Atlanta. 149
All voted aye except 'Iarding who asked to be record
ed
against it. 149
4.40.
6~4,1 Meetin7,Des. 6, 1915.
Tarburg asks C.S.. ho..' he felt about 3rd draft
of
raport which, he said., had been somewhat cnanged
in accordance with C.S.H.Is suggestions. 154
CH aaid hal not read it carefully 'ant would do so.
154
Warburg said if Williams should rely tc
the comslittee
would change it and Ipt in some "nasty things" 154
5ai1 th.st calssittel hai shown clersrly they were
right in all they lit, 154
Said committee felt obliged to keen in re-sort
the reference to the Attorney General and to
branches. 154
C..H. points out that their -snort sail nothing about
branches jult
he stated supra on page. 146
Warturg says if Issrent tunk refused to establish the
abolished bank as a branch, the Federal Reserve
Board wcrild reestablish the Federal Reserve bank. 154
444-10 1041
The comsittee on Dec. totU1915, filed with the
Board at it request a memoranIum on redistrictin.
154 A (local sheet)
Aemorandurs egins with 2 plans! 1. In which Boston is kept distinct
2. In shish Boston is merged in N.Y. 154 A
Memorandum Aays tit' t fro's pont of view ,of
securing the -Lost econasic usl efective
operation, there can hot be any Icsibt that
plan 2 stould be the slors s'!grisabla ono.
Beirg mindful, howsver, of what laLght ,:anerally
be considered as the sentiment of the
country, the committee does not contemplate
uniting distrists 1 sand 2, hoping that iistrist (
No. 1 may succeed in proving its ability to
act as an independent and self-s
upporting center.
154 A
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
70.
AA
Federal P,‘3:-;,rve Board (Cont.)
Cutting riown Fedugal Reberve banks and
districts (Cont.)
There are ,Ittached to the memorandum
4 difr3nt
4%447
proposal plans of redistricting, 11S foil
oNs:
Plan I. B banks
Boston lonsoli dated ,vith N. Y.
Atlanta,
Richmond
Minn.
Chicago
Dallas
If
Kansas City
154 A
Plan II. 9 banks
13oL,ton not clianged
Atlanti con,Clilateci with Richocni
Minn.
" Chicago
Kari,az City "
" St. Louis
Dallas
" ',Taw Orleans. 1:54 A
I
P14n III. 9 banks
:c.3 ton not changed
Atlanta consolilateith Richrn,
..nd
" Chicago
Dallas
" K,-%nsas Ci•y
154 A
Plan IV 9 btrits
Boston not changed
AtLinta cona oh i dated ..vith Richmond
?I
Minn.
"
Chicago
Kansas City"
" Dallas
154 A
Meeting Friday, D3C. 10
Board approvsd minutes of .1.3stinzs of
Nov. 15 and.
Nov. 22, accepting th3 suggestions of
C.S.H.
as to adding sabe items. 155
Williams and lcAdco reserve right to file
a further
stitenent .155
C.S.H. files a raau r•an
3.'3 to the 3rd dr—ft of
report of cau.,ittee filed D. 4. 155
.1A44(47 Harding s1gg33ts a. tezt case by consoliis.ting 2 district
s
in spite of of.inion of Attorney G3n ,r4,1,
leaving it
to courts to intle tie mattsr. 155
Warburg said this ought to be ic.)ne. 155
Dslano .ald nothing. 155
c.
introduc3d in Senate by ,S?natcr SIC-th cf
thorizIng Fe.ira.l Re.ierve 3oard to lensolid
ate
14**444
,
districts. 247
;4cAloo sAys viii ,i3opardiza cal our othe
r ar.lentilenti and
should. ;o over, tvithout expressing any opin
_on on
merits. 247
H•irding a.grees to this.
Meeting of Igednladay, Tuly 26, 1916. 248
4Bill
1
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
71.
Federal Reserve Board (Cont.)
Cutt in lawn Federal Reserve banks und districts (Cont.)
Board unanimously :Lgrees to inform senate that,
without expressinE any opinion on ri4erits, the
Board feels the present is not an pFort-me
time for enacting this legislation. 246
Delano tells Williame he has wired Miller for
expressim of opinion on Smith bill vid 7,howed
him a telegram fro7a Miller that he absdlutely
vcred the bill. 269
Delan:, never before had spoken to 114 of this telegram. 269
eme 4sc - AcAdoo
(7nd of Fellral Reserve loarl, clttin 11-1 . tc)
DiF,ccant rate,.
The Governors at conference in February, 1915, protest
against Axing of rates by Federal Reserve Board of
own volition. 1
They claim that the Federal Re erve hank his sole right
to iniUate rtes, and that Board has power merely
to approve or disaperove the initiated rate. 1
The Bovrd states it clearly has power to fix rtes
on its own volition. 1, 2.
Warburg tells GcVernors Boarl clllrly has thi3 right,
although it may nevr have to exercise it. 1, 2.
Dividends and expenses
See - Federal Reserve banks; same
PQreign Agenc_es of Federal Ra,erve banks
See - Federal Reserve banks; foreign agencies
Fowler petition
Attacks Federal Reserve baiks ani Board for dissountn
munition acceptances and for iesuinr Federal
Reserve notes against them. Cherges Directors
of Federal Reaerve Bank of leNT York with fraud. 23
Conference of 0.9.H. with Attorney General. 23
Attorne:f General alvises against any 4ction on. 23
Fowler .haa intervieei vith C. .H, 34
C.S.F. insilts charges aist be :ut In writing. 24
Board dismisses petition. 28
Governor
Harlinz: says if Richard Olney had been Governor the
row over AaAdools chance in th3 call of N.Y.
meeting would not have ecl,
.3rrel. 48, 49.
Hardin .say C.S.. and MCAdoo are .30 intimate that
McAdooai
fls to keeo in mind the iistinction
"eatween Chairman anl Governor. 19
Rotation in affi:a of Gcve!.nor
Siilaidoo, Te G.
MaAloo, "7. a.
Harding objets to members rising when, enters room. 52
Make Botri pay for a tea it gave "cin .6.;7.erican vinancial
Con ras .
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Federal Reserve Bank of St. Louis
72.
Federal Rerve Board (Cont.)
Miller, A. C.
says by-laws are necessary as members have no trast
or confidence in one Another. 50
Board has surrendered to Wall Street. 59
Says AcAdoo inspired attack of Trettsurer Burke
against Forieral Reserve Bank of '.inn. 106
See - Federal Reserve Bank of
Pan Anerican Firuncial Concrass
10 supra- McAdoo
Public =nays
Board apprints coralittee to obtain frog.: Attorney
General a reconsideration of oi)inon that
monies received by Federal Reserve Board are
public moneys to be accounted for to Auditor of
State Dept. 2
0.3.7.oppoes this. 2
Rede:.ignation of Federal Reserve citie
Board agrees to ask olAnicn of Attorney General. 126
Redistricting
C..H. =vas that all petitions for, "oe studied from
light of experience. 125
Withdraws :scti n shen Delano moves that all petitions
be tabled. 126
Wisconsin banks petition
See- Federal Resrve 3ank of Ainn.
C.S.H. says bkirie-1 of i.roof is on banks seeking to
overthrow decision cf Re..-ierve lark Organization
CumLittee. 126, 3:37.
See - Federal R363r49 Board; cutting down.
Redistricting.
Row over Brown Brothers acceptance credit.
S39
Acce?tance credits
Row overgeeting called at U.S. Subtreasury, N. Y.
See - Acceptance credit..
Ackdoo
Starak
Board appoints co—ittee to consider charges of,
against Gov. Strong. 22
Sea Status of Federal Re$3rV3 Board
CcS.H. fears tralble from McAdoo. 21
AcAdoo frees Attorney General to strike out OM
sentence fram opinion as to independent status
of Federal Re3erv3 Board, ag.xinst protest of
Assistant Attorney General Warren. 22
Attorney General ruleri that FederAl Reserve banks
are not Gcvrnment bankc and that their officers
are not officers of U.S. 23
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Federal Reserve Bank of St. Louis
73.
Federal Re6erve Board (Cont.)
Status of Fedlral Reasrva Board (Cont.)
Harding intinates scms members may resign if
authority of Board not fixed. 49
Harding hints that Co4cressi,nal iiction may be called
for. 49
Harding says Board is alemocratic Board and that +such
mambsr has rt.,, much po-ir as does McAdoo. 50
C..H. talks with Col. Haase ..4s to. 53
C.S.H. tails McAdoo that quarrels in Board all
hinge on status controve,..sy. 55
McAdoo says whole trouble 1ie2 with President 7ilson
who is againat putting Federal Reserve members
ahead of Interstate Commerce Cou'Assion and
Civil Service Commission. 55
C.S.H. tells McAdoo, ved3ral Relerve Board should rank
Just bslov members of Congrsss ani above the
Solicitor Gen.3ra1, C'mnsellor of State De?t.
ardAssistant Secrstaries. 56
McAdoosaid this would swell their heads!
56
C.7.H. tells McAdoo of threatened resignations. 56
McAdoo expresses hope that th3y may resign. 57
McAtoo 2ays if Prs.,iient radJ3 the correspondence he
':ay take them by the scrough of the neck. 57
Ic.Adoo says President is willing to put Beard on a
parity with Assistant Secr2taries. 56
McAdoo never before toll this to C".S.IT. 56
C."'.71. says Board woad not be satisfied with this. 56
McAdoo utterly 'unable
comprehend the Board's side. 57
tslla ilcAdoothe dispute as to cutting down of
districts really hinges on status dispute. 99
C.s.H. says it is really an anti admintstrition attack 99
AcAloo tells Delano he Nill socn take u-.1-) status matter
and hopes he can please Board. 99
Wands Board from ilcAdoola attacks. 99
Assistant Secretary Phillips tells British Ambassador
that Federal Rem,' Board outranks Assistant
Sscretaries. 153
McAdoo, at his dinner to Board, tells C.n.H. to
follow Cabinet - putting him ahsAd of Assistant
Secretaries snd Con.'.. Glass. 168
Harding tells :4cAdoo that Board is indtgnant at their
status. 178
McAdoo says presence of a Cabinet mlmber on Board
aids to its dignity. 178
Mckdoo says 3oard wants Sec. of Treasury ant Comptroller
of Currency taken fro-a Bor. 178
McAdoo says Board wants irors paver than any ai-Linitritian
will ever alve it. 178
McAdoo says he toll Preilent he Nould not object to
a status ahead of Assistant 8scret%riss. 178
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Federal Reserve Bank of St. Louis
74.
(5
Fediral Reserve Board (Cont.)
Status ((ont.)
ncAdoo ays Pre3Ident 1.1, very much embarras.ed as
Ai.ant Secretarisq have had their st.,t,,s
century. 178
Sea - tIcAdoo
Status
Treasury
Harding s ay:; Board is looked upon
merely an
nct
of, J.nd tnat it viii 131ve Treasury buildin7)
. 178
Sea also - Ace-tance crelits
Clearing
ComLodity paper
Discount rates
Government depO.iitti
Laughlin
McAdoo
Redistricting
Rich
Status
Treasury lamination
Feder -t1 Re:
,erve cities
McAdoo notifies Board that he will remove all Go,depoJits froru national banks in, and will
put them in Federal Re.er-e banks. 128
See - Federal Re3rve Board; redesignation
Federal Reserve districts
See - Federal Reserve Board; cutting down
ReditAricting
Feder:41 Reserve notes
Conference with Attorney ryeneral as to issue of,
against munition acceptances. 23
Attorney General _vs noard can not consider use
Made of, after ir..3'11. 23
Willis says c-itttnc; down of dietricts will destroy
Fel3ral Re.:erve note, and net save expene. 85
Miller favors issue of, 94ainst gold or against
part gold Ind part pape-; feels the present
indirect -.1thod of "reversing the pumo" sho-,1d
V. validated. 229
Miler objects to :old with the Federal Reberve Agent
counting aa rer.erve. 229
Warburg asks ir Miller would not favor the issue of,
directly against gold, - as provided in proposed
amentnent, - as an emergency proposition
requiring 5 afrirmative votes. 230
Miller says 'lc, as he has no confidence in t
Feeler=t1
Reserve Board as &t present constituted! 230
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Federal Reserve Bank of St. Louis
_
.1,-•••••••••.-
Federal Reserve notes (Cont.)
Class op7oses making, lawful Loney. 263
Gltsr. alloses mtiktne gold held by 1Ped)ral 72eserve Agents
count as reserve. 63•
Board's augge ,ted 4maniNent that Federal Reserve notes
should be lawful LiLney
tob5 etc. not altsi on
by senate 264
Glass pleased at failure. 264
Warburg says Harrison is only man who knows anything about
tha ?- roleosei amendcont3 as to. 264
rburg says it is wise to druip the aLendment as to, as
lawful money. 265
Says he never expected it to beco::ie la-v. 265
Yet he told t113 Board it was vital. 265
Warburg says C.S.H. :'esponaible r or f4 lure of a.7.ent..ent. 265
C.S.H. points out that Warburt; orderld Barrison back from
his vacati,m especially to liatch this ar.:.intlant. 265
Warburg says he ordered Harrison bak :aerlly to prepare
dr:Aft of ne-y regulations. False. 265
Conference caxaittee rejects 3oard al)e.niment providing for
issue of, against gold. 287
AcAloc sail only he and President doul have induced Glass
to acceit it and thy were not clear encugh as to its
merits to try. 287
(.S.H. feels j1cAdoo and President :iade a aret mistike in
not trying to perauale Glass. 287
Federal Retierve system
McAdoo' o ar4argest1on of is:iuina. further Aldrich - Vreeland
notes is a direct blow att
1
Rumored that 25 of most )owerful naticnal banks contemAate
withirawin,
'from. 114
Gov. Strong says Directcre of Bank of Eneland consider
Federal Res,erve Act a wr,nderful piece of legislation 223
See - Federal Reslrve 73oard, cuttin3 down
Harding
Warburg
Federal Trust Caupany 218
see - O'Neil, J. i.
Fish, Pliny
- iicAdoo
Fl easing
See - Fe(teral Reserve Bunk, Kansas City
Forbes, Mrs. 'ialcolm
lunchei, with. A-,
Foreign credits
see - Acceptance credits
Great Britain
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Federal Reserve Bank of St. Louis
76.
Foreign Governments
See - Ac•,Ttance credits
Forz,Tan
Dr. Laughlin a..i;dis Furgun is more narrow than Vhnlerli?
Buah. 134
skrs ha -*avors cuttinz down capital but that is absol
uely
nIce:...s;irr for Felaral Reserve banks to earn
expenses anl livtdend3. 186
S'S
Bills of exchange
Fedaral Ra,erve banks, capit,,1
Fowler petition, Aunitiona
see - Federal T333r”3 'ioard; sane
Fox, Auatin 201
q30 - Brandeis
Gar!'ison, Secretary
Tarburg expresses symvathy with, in his rosienit ion. 185
writes Pre.ident Wilson imioraing his t3tanl cn. 165
McAdoo aays, is a reactionary. 185
Gatch
See - Fedral
er,m Agent, Deputr
Georgia narkers Association
Speech. C..q. 229.
Gernany
Lansing ahys ho believes Germany entered into a fiecrat
agreement to give the l'ope of Rona temporal power
if she won the war. 176
Netherlanis by isfsuIng notes against gold marrJarked in
U.S. can buy aicuritiea from, free from interfarence
by Great Britain. 222
See - Cotton
Glass, Carter
Had intarvio4 with Warburg at hia rlove ,t at Ma house. 69
Said that from what Warturc told him there was evidently
a serious division in Federal Reserve Board. 70
'Yarned W.i.r;nrg that if Bortrd rill not publish open f-Larket
reguls.tions he would attalk it. 70
Said he fAilel to convince Warburg. 70
•
I
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Federal Reserve Bank of St. Louis
Glass, Carter (Cont.)
Says there will be a stronc .aovenent in Congrest, to
displace Itlliams as a member of Federal Reserve Boar1.70
Says he believes the office should ba repre6ented on the
Board, but that the trouble arose from the personality
op Williams. 70
Says it as clearly the intent of Congress that the velderal
Re;erve banks should have cooies of all the
examiners rei?orts. 70
Says there is no possible doubt of the right of Federal Re.ierve
banks to go into the open market to secure revenae for
expenses and dividends. 70
C.S.H. tells Board that Glass says a letter on open market
purchases wild not be satisf ctcry. 71
Delano says Glass told him it -mull be sati3f,'tory. 71
Warburg said Glass toll him he recognised the danger of a
regulation at this time and approved a letter. 71
Will appos effort to cut down districts. 94
Bitter towards Warbura. 94
Will issue public etitement that cutting down districts
would be an affront to Congress. 97, 98.
Says has tUked with McAdoo and vanit issue statement until
he $035 C.S.H. 98
Says will at once vrits Delano on the matter. 98
At first saw no objeltion to conAttes swim,
: President as to
cutting down of districts. 98
Finally agreed with C.S.H. that it ,vould merely give the
cOlonAttl., the opportunity to say it gave 1:40 the plan
because the ?resident hal interfered. 98
Says the cOmmittle feel that McAdoo exercises an undue
influence over the President and that hevcoild not
be trusted to state the fcte correctly to him. 98
Willis ways Dr. Laughlin made many suggestions as to
drafttng the *Federal Reserve Act to GlAisand himself. 132
Willis says.Dr. Laughlin had unwittingly led bankers to believe
that he could dominate his views. 132
Willis says he prepared draft of Federal Re,erve Act for
Glass. 133
Willis says:
Dr. Laughlin got Gla- to tell him the general plan
of draft. 133
Dr. Laughlin asked Glass if he could prepare a. bill
billowing his views and that Glass said yea. 133
That the Glass bill was not founded on the bill which
Dr. Laughlin then prepared, of which bill, Willis
has a co:y. 133
That Dr. Laughlin asked him to give him a copy of
the Glass bill, which he declined to do. 133
That certain New York bankere tried to secure
removal of Glass from the 13ank1.ng and Currency
Con.ittee. 133
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Federal Reserve Bank of St. Louis
78.
Class, Carter (Cont.)
Willia (Cont.)
That thl rational City nark workel on
Ailes to securi
this but he ,iclined. 133
That Dr. Aillersecured
coy shich listurbed Glass vlry
much. 140
,icAdoo a-24sge!,ts appointine Gla,s to Fedsral Rese
rve
Board in place of 11111er. 141
C.S.H. says, ;-Llthough he alrnires Glass, this woll
i start
a pol.itical fight ani inure the aiminist
ratinn. 141
Glass much wcrriad about till divisions
in Feilral
118131‘,1 Board. VA
Says bank,3rs .ur.3 lauehing at us. 159
Says claring wystem should have been put
in 1on6
159
Says qlliott and Cotton ar3 no lawyers.
159
saye Ifirtrarg will hold In back even if Atto
rney
General says we have mandatory povq..a
log
Says he thinks Delano honest but that his
surroundings had been such that he failed to
grasp the ;_nterlats of the people acainst
the
banks. 159
Says the intent of Congrdas 'Nes to give
us
mandatory power. 159
Says will have to go to Conzress if Attorney
General
ienime this pover. 159
C.S.H. feels Willis is responsible for Glass's
worries. 160
!cAdooi at dinner to Federal Re.31r1re -Q
card puts
C.S.H. ahead of
168
Glass sends to the 3card t. Si:Ath bill
lvin power
to '3oard tc c.ut down iistricts, etc. 208
Harding to lonflr with Glass as to clearing
meMber0.261
Glass bitter against Kitchin. 262
Glass will ,A.gree to clearing members. 262
Irrevocably qposed to ritking Federal Leserve
notes
ra.;3rve mney. 263
Opposed to ha7ing gold with Federal 7,m.;-rve
Agent count
as reserve. 263
Will consider matter, as to counting gold sith
Federal Reslrve Agent as reserves. 263
Glasa tells C.S.H. the Senate Col.lAttee on Bank
ing
and currency had been pollei and was unanimou
sly
in favor of confirmation of C.S.H. 263
AcAdoo says only the President and he could have
1;ersna1ed Glass to Aerem to issuing Federal
Reserve notes against gold and that they were
not clear enough as to its merits to try. 287
See - Bills of exchange
Federal R33-n1V3 bcal43; iivilends
Williams
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Federal Reserve Bank of St. Louis
79.
Goebel
See - Federal Reserve Bank; Xe.nsus City
Government banks
Federal 'ic9er,re bank' are not. 23
Government deposits
McAdoo tells Board he qill withdraw all deposi
ts frau
niAtional banks in Federal Reserve Cities and
will deposit the t'undi in Feral Re;.,rve banks. 12R
Warburg 7reparel arlentLant providing that
Sec. of Treasury
can not deposit public funds in Federal Reerve
bunk.: without consent of Federal Reserve Boa
-1,
such depoeits interfere Adth discount policy of
Board. 177
Warburg eays the 15 millicra of deposits by
McAdoo in
Federal 713S1f373 banks for crop movin7; has interf
ered
with dillcunt policy of Board. 180
Mckdoo explains that originally hA announced .vhile
in
Aaine that he would make the deposits only if
necessary; that he would have consulted Nith Board
had he been in Washington. 180
sid h3 con,:ultei Rcard before the deposits 1P31
actually made. 180
McAdoo sail a grave emergency existed because of threat
ened
action of Great Britain to arike cotton contraband. 1130
McAdoo said these deposits were availed of but lttl.
180
7lariing sail, - merely psychologiaal effect. 180
Tiarling says not for him to attack IcAdoo for helpin
g south. 180
Tiariing admits he wrote McAdoo that no deposit:; were nects,
lary.181
Warburg says his plan is for an 3;72endJent to prevent Sec.
of
Treasury frci depositing in nitional banks without
consent of Federal Reerve loarl. 181
McAdoo aays Board could overco'se any action of Treasury by
radii:aunts or by raisins disecunt rates. 181
McAdoo says Warburg 1 3 rrenmnent NVIli injure ç.rstige of
Board
as it could not possitly be enacted. 181
C.9.H. says Warburg plan mould perpetuate Subtreasurie,i
forever.181
Delabo said. lposits in Federal Reserve banks should be
equitably apportioned among the states, just a.a law
revires deposit'l in national banks. 181
McAdoo said if .sny Pature Secretary should make le:posits
in
Federal 119437"17, banks to injure the Federal Reserve
systsm, thd ?resident would remove him. 182
McAdoo said as much danger of :federal Reserve loArl acting
wrongfully as Sac. of Treasury. 182
C.S.H. Alkyl; if bill introduced would reveal differences in
Board. 182
Warburg sais bill wql be introduced anyway. 182
says if bill introduced outside of Board, the Roar'',
if wmea_onsi, vould expres its views with a minimum
of injury. 182
80,
Government deposits (Cont.)
Harding says he will vote avinst Warburg's plan but
reserves right to bring up matter later and if
his
colleagues insist an a minority report, he 7ill
signify hie ooncurrence as to part which he vprovea.18
2
Finally agreed
could put in annual report a atatement
that no recormerzations are raarte as to certain
matters j'cause Board had difference of opinion. 182
Finally agreed annual report should go in without
Warburg
and Delano plan aa to Government deposits. 183
Agreed, however, that, prior to June 30, 1916, loard
wouli send to Congress any exmeniments any 2 wember
s
wished sent, the others to have ri, ht to send a
majority or minority re-port. 183
Harding introduce: pro.posed letter to Atlanta requiring
100%
reserve against. 185
McAdoo says it is a "damned fool" letter and will insist
an
a record vote. 185
Postponed. 185
Again dUscussed. Shown that Federal Reserve banks w-re
not
using the:.e depoaits and were thus, in effect, keepi
ng
a 100% reserve. 193
C.S.H. suggests writing et letter approving course of
Nederal Reserve banks in conserving funds which Treasury
at any ti!..le ight renicva, and Harding agreed to
redraft his litter along these lines. 193
See - Commodity paper
0
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Federal Reserve Bank of St. Louis
Government ubscription to Federal Re;erve bank -;tock.
179
See - Hamlin, C.S.
Governor of Federal Reserve Board
See - Federal P,eserve Board; Governor
Hamlin, C.S.; Governor
McAdoo
•
•
•
Governonof Federal Remerve banks
Advise a 4% redicourrt rate between Federal Reerve banks.
5
See - Discount rates
Claim t,17.4 Roard has no right to fix discount r,:ttes on its
own volition.
see - Discount rates
McAdoo :.ngry with Governors. 137
7ay4 must be curbed. 157
Says naia should be changed to President. 157
C.S.H. points out he originally voted agaimt title of
Govrnor. 157
McAdoo reads mimorandum telling Governors they sin Lt
maintain a regular organizatIon, although no objectir;r1
to infor-oal conference3. 173
That while 3oard is always glad to take 14 any question
vith an indiividnal bank, the conference, in
protecting against prew=ure by -3oard as to
lialcrunt rate3 -vent beyond its legal powers. 173
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Federal Reserve Bank of St. Louis
Governors of Federa.1 Res )rve banks (Cent.)
Board. agnces with the mer.orandum. 173
'Gov. Strong adii,its truth of "
173
Gov. Strong says Governors can and.till acccramociate
titer.selves to the snirit of the 1,,emorandum. 173
Gov. Wold said Jorry Board had mieund.erstoci purpose of
th,c Governors lcriferences. 173
Mcildoc handled sit-lation airnira'Ay. 173
Gov. Aiken tells 0.S.T1., AcAloo was right. 173
See Gra;rsen, Admirtt1
(Unit! with. 266
Gre. t Britain
Dine with Ambassador to mcet Sir Paul Tlarvey. 150 .44.4.‘p4.,1y141"
Sir Paul repre3ent4 '2"1tish Government in negotiations
as to obtaining bank credits and in staying in N.Y.15C
Sir ipan.1 asIts
many q
, ue:.tions as to irederz3.1 'Reserve
Act. 150
C..'1., in le.tving), tolls Amba.ssador he was sorry not to
have had. a longer tall with Sir Paul. 150
Ambassador silggebted Sir l'a-ra 6hcu1f-1 call cn
tomorrow and. C.iH. agrees. 150
Next morninj
: .q1nbasey telerphones sugge3tin7, 10 a.m. for talk 151
C.S.A. agrees. 151
C.S.W. later fee1.. not alvisable, as if ::,atter should ever
cotae kr, whether our Govarnmlnt had officially had
anything to do with matter of British bank ere-lit.,
such an interview night cause comment. 151
C.S.H. tells Mabasuy postrunine, interview blcause of
ono -gement with Sec. of Traasury. 151
feel 3hould have no interview ,..ithout Secre.
,aryls
consent, especially .iince we all criticized 111.-trburE
for his talks with Dr. Albert. 152
feels his colloaves might think it unwise. 152
Federal "rto Jerre '3oard ha:, taken no pArt in my matters
relating to foreignc reiits. 152
C.3.14. calls up AcAdoc. 152
McAdoo at first saw no objection bnt finally ..-1,7111 better
not to have interview ,..ts if broughL cut in :.ore future
Icngressional incriiry
nece .sitae xplanation.
152
McAdoo s,ls,aits
ce.11 .ind tell Ambassador such an
interview might later embarrass him. 153
Ambassador at dinner told C.H. that is repre:ent-Itive
,vas still h3r if ny fairthcr brook occurrod in cot tona 153
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Federal Reserve Bank of St. Louis
82.
Grat Brita3.n (Cont.)
Ambassaflor spoke of Hardin
p 1 6 splemdid wcrk at, to cot
ton.153
.said had called up Assist
ant Secretary Philipps who
.
,a
id
olitraned ?eters, As:astant
SecretLtry. 15::
Harding 'aid that he (Hardi
ng) wrote British proclamat
ion
makin,- cotton contraband.2
13
gives dinner to British Amb
assador. 229
See also cf ?nclan!
Cotton
Guaranty of bunk deposits
Thralls h‘a.s plan for. 238
-HHamlin, C.F.
Acceptance credits
See same
Acceptance credit; Rokt over
T.Y. meeting
333 - ACC:Iptiirlea credit
s
Acceptance redulaticna
Reply to Warburg's •Ittack
an 1.S.H. and Willi
- Scran bodk
A..---71,)tances
Claims Section 13 foe:; not aut
horize discount of
acceptances based on mov%Ient
from one
foreign country to another unl
ess American
•:.arnreacturers are intereste
Let
d.
ter. 7
Addresses
Bankers Club, Cleveland. 229
Fed'-al Reserve Bank, Atlanta.
229
Georita Bankers Aiiociation.
229
Japanese tdeassador's tinner.
135
Manas4aa Industrial Gahodl.
229
Nicaraguan lunch. 19
?an American Financial Confer
ence. 19
PhilIdelphia' ChaMber of Commer
ce. 114
Republican Club of N.Y. 134
San Franclaco trip. 8
South Carolina Bankers Associ
ation. 236
Union Trait
F,1:ringftelA. 194
Uruguayan EUnch.19
Western Mcanwil Association,
Chicago. 129
Airiendr:ients to Federal Rel;erve Act
Congress
To appropriate direct2y for all exre
nse.- of
Federal Reserve Board. 179
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Federal Reserve Bank of St. Louis
83.
Hamlin, C.. (Cont.)
ALlenchents to Federta Ret,rvd. Act (Con
t.)
Diacoant rAtas
Federal Re:;ervo banks to fix maxiur.1, for
:amber bunks. 179
Federal Re3erve b:AnLa
Govt. subscription to v.tock in, in nase cf
withdrawal of riember bank6. 179
Right to be giv‘m to individuiLlb to
den os it in. 179
stara::, tax
To be 1.-iposeci on allchecks in int,erstat
e
drawn an nonnl ring '),..tnks. 179
Usury
eipproval of Cciptrollert.,.; efforts to
Du,
: an end to
179
Attorney General
Oppoals aiking for reconaideration cf
opinion that
Fe,leral Revirve Board funds are public moni
es. 2
Writea President Wilson asking him to
obtain Opinion
frau, aa to right of Board to cut down
districts
down16, 117.
See - Federal Reserve Board.; slitting
nal* of En,71.-in1., 7oreign Agent
Apipointed on
'
.do consult Sate Department
to nentrality of ,:,greement .vtth. 297
Se3 - Bank of En31an1, Foreign Agent
73111s of EAchrmge
R3g11ation3 as to orpin market
Sae -11114 of exchange
open ::- .arket purchases
3-Fei5ral Re erve 53.n2F, RicIrcrzvi
Brlzrisia,
Sie - 9ran1sia
Riggs bank
C,trvar, Tugene
Aeks C.S.11. to aclept Ohairrnansqlp of Saip
ping Board.
4ays To. 246
C131rinz ayitem
See Stir29
Carcaolity paper.
4
COMptrollir of Carr3ncy
Ad-rises Federal 'Reserve Agent Bosworth
not to favor
zlboliahing, in si;eech. 76
Gives o)int'n th-it Cora-)troller is under Board. aa
to
9:carainarn rei)orts and Federal Rezerve note
. 80
921tott ignoret; thts opinion. 80
ays no nace33ity :
4 or :putting, ,mier -3oard in3teal of
unier Sac. of Treasury.
coops:63ton will
work harmcny. 183
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Federal Reserve Bank of St. Louis
84.
HamEin, C.S. (Cont.)
Delano
Insults C.S.H. Cutting down dispute. 199
Analyses character of. 63
Dislikes C.S.H. because be can't control him. 160
Conduct as to MaLallan makes C.S.H. doubt his sanity 274
Dinners
C.S.H. and H.P.R. dine at Cabinet dinner, White euse 167
See - Dinners
Disocunt rats. 167, 174
See same
Dividends and expenses
See - Federal Reserve banks; same
Elliott
See IMMO
Federal Reserve Board
Appointment of C.S.H.
Papers say, to be reappointed. 243
President sends name to Senate for 10 rug: term
July 26, 1916. 256
Delano never congratulated C.S.H. 257
Harding cordially congratulated C.S.H. 257
Dined near Delano at Club, but be does not
congratulate C.S.H. 258
Delano never alluded to appointment of 260
Warburg does not congratulate C.S.H. 265
McAdoo asks C.S.H. to tell Assistant Secretary
Philipps to have nomination made out. 268
Cong. Eagle praises C.S.H. and congratulates him 272
Federal Reserve Bank of Dallas pass resolution
congratulating C.S.H,R77
McAdoo writes letter corgrablating C.S.H. on
reappointment and on sneers as Governor 278
Delano explains why he has not congratulated C.S.H. 281
Says glad C.S.H. appointed. 281
Chronological list of dates as to reappointment
and confirmation. 289
President Wilson writes C.S.H.
290
See tnfra
Confirmation
Boston
Draft of committee drops C.S.R. fran 97
Warburg says C.S.H. quietly 5sltpped off* 97
C631.R. writes Willis he will stay on. 97
Warburg asks Allen to send Boston reports to
Delano during his absence. 242
Delano puts circulating tag on Boston reports
not bearing name at C.S.R. 242
Circe.%la tins form
Draft of, Sor circulating letters does not contain
names of McAdoo, C.S.H. nor Williams. 217
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
95.
Hamlin, C. S. (Cont.)
Federal Reserve Board (Cont.)
Confirmation by Senate
Glass says committee hde been polled
and is unanimous
for C.S.R.
263
Nomination reported favorably on Augu
st 1, 1916. 264
Sen. Hollis says C.S.H. received unan
imous report
of committee and that all praised him.
267
Nomination laid before Senate but Sena
te tock up
Farm Loan Board and did not reach C.S.
H. 266
McAdoo says will push confirmation
. 266
McAdoo tells Sen. Pomerene to hasten conf
irmation.267
Confirmed by Senate. Aug. 3, 1 916.
268
Rich says iCongressmen threatened Boar
d as to confirmation
of C.S.H. if Wisconsin petition not gran
ted.
284, 285
See - Federal Reserve Bank, Minneapolis
Cutting down of Federal Reserve district
s
See - Federal Reserve Board; cutting down
Forbes, Mrs. Malaga
C.S.H. lunches with. 284
Government deposits in Federal Reserve
banks
C.S.H. thinks McAdoo made deposits pure
ly forp olitical
effect. 55
See - Commodity paper
Government deposits
Governor of Federal Reserve Board
McAdoo suggests hollim out rotation to
please minority 161
C.S.H. says - not until his term expires.
161
McAdoo says!
Great Goi1
I hope you will understand that while
I ami hare you will be at my right hand.
I should
never even consider such a change. 161, 162
0.S.Ef, believes McAdoo put this out as
a "feeler“. Is
amazed at such a suggestion. 162
Delano tells C.S.R. of interview of hims
elf, Harding, and
Warburg with Presidant on rotation
of Governor. 233
Says nothing personal. 233
Told President hoped C.S.H. would
be reappointed. 233
Said President listened to them but
said nothing. 233
Delano sends C.S.H. a copy of his lett
er to President. 233
Letter said: Rotation of Governor one of most impo
rtant matters
which 4 members wished to ask amendmen
t of
Congress. 233
Owing to coming election they hal sent
no amendments
except those vitally necessary for admi
nistration
of Federal Reserve system, etc. etc.
233
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Federal Reserve Board (Cont.)
Governor of Federal Reserve Board (Cont.)
C.S.H. comment is that letter did not say that
there was nothing personal to C.S.H. intended,
and that a fair inference would be that
it was prompted by reasons growing out of
administration of the office by C.S.H. 233, 234.
Delano said he explained to President that the
Ex-officio members could not attend more than
1/3 of the meetings. 234
Delano seemed very bumptious and egotistical and
acted as if whole matter was settled. 234
Maar° said totation must come!
234
C.S.H. thinks he also said, - I am a candidate. 234
C.S.H. told them he had no objection and woad
loyally accept President's decision. 234, 235
C.S.H. shows McAdoo the copy of letter. 235
McAdoo said he knew nothing of it. 235
Said they talked with him last week as to rotation
and complained at not having had opportunity
to talk with President, and he said why don't you. 235
McAdoo indignant. 235
Adverse to considering anyone of Chem for Governor. 235
Said would never stand for Delano as Governor. 235
,/- C.S.H. tells him not to think of him but to do what
was best for system. 235
// C.S.H. advises designation of Delano. 235
C.S.H. fears Delano will resign if not designated. 235
McAdoo says he wishes he would. 235
C.S.H. suggests that McAdoo does not speak to him
again, that he and C.S.H. had been good friends,
and C.S.H. would loyally accept the decision.
235, 236, 237
Williams says it would be preposterous to' designate
any ot:;er than C.S.H. and he will tell this to
McAdoo. 236
All were so pleasant at meeting that C.S.J. suspeets
McAdoo must have yielded on rotation of. 238
McAdoo asked C.S.H. if meeting was peaceful and
this confirmei C.S.H. suspicions. 238
.
McAdoo says mtndrot yet made was to Governor. 239
If any change male Harding would be designated as
Governor and probably Warburg as Vice Governor 239
Asked C.S.H. how they would feel at such
designations. 239
C.S.H. says they would all be mad except Harding. 239
That Warburg expects to be Governor. 239
That Jacob Schiff hadcome out for Wilson, in opinion
of C.S.H., to secure designation of Warburg. 239
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Federal Reserve Bank of St. Louis
87.
Hamain, C. S. (Cont.)
Governor of Federal Reserve Board (Cont.)
McAdoo said Schiff acted purely from public spiriti 239
C.S.H. said he thought Delano also wanted it and felt
Warburg crilld not Ot it. 239
McAdoo said, No they all asked to have it go to the short
term. 239
C.S.H. is sure Delano thinks by fighting he can get it 240
C.S.H. says if Laarding were designated, Warburg would
be furious. 240
C.S.H. says Delano would resign, and that both would sa
Harding had doable crossed them. 240
McAdoo says Delano under no circumstances could have it. 240
Delano a narrow, peevish man, and he wishes he would
resign. 240
Said wculd injure administration to designate Warburg 240
Said all were unworthy of it. 240
C.S.E. says not to consider himself at all. 240
C.S.H. says better to designate Delano and avoid
disruption in Board prior to election. 240
C.S.H. says minority have "struck" and can injure
administration if it does not yield. 240
C.S.H. tells McAdoo the plans of the minority if they
get the Governorship. 241
McAdoo says very much embarrassed as to what to do. 241
r McAdoo says he and President believe C.S.H. retention
as Governor is for good of F.R. System. 241
C.S.E. suggests amending Act and providing for a Board
of Governors, bat McAdoo said Congress would
mot consent. 241
C.S.H. asks Delano if McAdoo has spoken to him about
rotation. 246
Delano said No, but that Harding had had talks with
him. 246
/C.S.H. said he was a disinterested spectator. 246
That he had told McAdoo he would loyally support
whatever the President decided to do. 246
Delano was much pleased and said he knew C.S.E. would
take this position. 246
C.S.H. added that he had told McAdoo not even to discuss
it with him. 246
/McAdoo tells C.S.H. that President has reluctantly
decided to have Governor rotate each year. 369
That Delano and Warburg had told friends of the
administration that they should resign if
this were not done. 269
That the President felt that Delamoss letter to
him was a polite species of blackmail. 269
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Federal Reserve Bank of St. Louis
88.
Hamlin, C. S. (Cont.)
Governor of Federal Reserve Board
(Cont.)
McAdoo also said:
That President, at any other time, woul
d have had
no difficulty in treating it as it warr
anted 269
That if they should resign before elec
tion it
would injure the administration. 269
That this was clearly their intent. 269
That he hal carefully considered What
the rotation
should be. 269
That it would be impossible to designat
e Warburg 269
That to designate Delano would emphasis
e the
passing over of Warburg. 269, 270.
McAdoo said Delano absolutely unfitted
for Governor. 270
That he was narrow, bigoted, and reac
tionary 270
Thick and stupid. 270
Had given him every opportunity to
be friendly but
that he had been cold and aloof. 270
More of an undeveloped boy than a man.
270
That Harding was better fitted than
the others,
although he recognised his ltmitati
ons.270
McAdoo said that Miller was absolute
ly out of the question
for the position 270
McAdoo asks C.S.H. opinion. 270
e. C.S.H. says: Locking to harmony Delano should be
designated 270
Admits this would emphasise passing
over of Warburg 270
Certain Delano will resign if not desi
gnated. 270
Certainly would if also dropped from
position of
Tice Governor. 270
McAdoo said did not care a strum
if he did. 270
That Delano bad forced issue and Pres
ident had
yielded. 270
If he should resign because not designat
ed as Governer
he would be ridiculous. 270
C.S.H. feared his resignation woul
d be more injurious
than that of Warburg 270
McAdoo said Warburg's resignation
would hurt US with the
bankers at this time. 270
McAdoo said Warburg without doubt
would accept Tide Governor 271
C.S.H. said if Harding and Warburg were
designated, Delano
and Warbirg would feel that Harding
had double
crossed them and would break up any
future
combinaticn between them. 271
McAdoo said had grams doubts of Hard
ing's loyalty to system
and asked if C.S.H. thought he woul
d be loyal. 271
C.S.H. believes he will be, as he woul
d consider himself
an important factor in Board and
this would make him
work for harmony. 271
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Federal Reserve Bank of St. Louis
so.
Hamlin, C. S. (Cont.)
Governor of Federal Reserve Board (Coat.)
McAdoo says will talk with Harding and say President
relies upon his loyalty to Federal Reserve system 271
Will tell him that President will designate him
because of his fine work on clearings. 271
That designation will be for one year only which
will give President a hold on him. 271
MaAdoo said:
Fully Ippreciated the insincerity of the minority and
their reactionary feelings. 271
That they had "struck" at a critical time. 271
That very regretfully President and he felt it
expedient to yield, but to yield as little
////
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as possible. 272 •
C.S.H. says he appreciates the situation and would
probably do the same under like conditions. 272
That he ASS only too glad to render a service r,o
President by eliminating himself. 272
McAdoo expressed deep gratitude of President and himself
for broad way C.S.H. looked upon the situation. 272
Said he and President both wished to designate C.S.H.
but that it seemed better to yield. 272
C.S.H. congratulated by Corg. Eagle aa redesignation
///
as Governor. 272
McAdoo sheepishly corrects him. 272
Eagle says C.S.H. is of good N.E. stock and country has
confidence in hid. 272
/ C.S.H., on whole, does not blame President and very liksly
would have done the same for sake of expediency. 273
/
Yet the fact remains that the reactionaries have dared the
President and he has yielded. 273
Only hope is that Harding will abandon his freely expressed
reactionary views. 273
Delano is to be pitied. 273
Vain, bumptious, conceited. 273
Has forced the issue and has lost both Governor and
Deputy Governor. 273
Hoist by his own Petard and it serves him right. 273
McAdoo sends C.S.H. a letter enclosing designations of
Harding and Warburg asking C .S.H. to deliver them 277
McAdoo writes C.S.H. ccngratulating him upon success
as Governor. 278
G S.H. asks Harding to moms into his roan at once. 279
Harding asks C.S.H. to take his New England pictures
with him. 279
Harding fears trouble over his designation. 279
Says has wired Warburg for a conference. 279
Says will work for harmony. 279
Felt it his duty to accept. 279
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Federal Reserve Bank of St. Louis
90.
Hamlin, C. S. (Cont.)
Federal Reserve Board (Cont.)
Governor of Federal Reserve Board (Cont.)
C.S.H. believes Harding had made same agreement which
minority will accuse him of breaking. 279, 280
C.S.H. wires McAdoo from New York to stiffen up
Harding who seems to be weakening. 280
Harding says:
Warburg is furious. 280
Delano quiet but bitterly disappointed. 280
Warburg prepared letter to President accepting
his designation as Vice Governor, bat
lecturing President for not making him
Governor. 280
Delano and hi with great difficulty persuaded
him not to send it but merely to accept
designation as Vice Governor. 280
Told Warburg President would resent it and take
drastic action. 280
Warburg made all sorts of wild suggestions and
threats. 280
Warburg wants to insist on Presidlit designating
him as Governor and Delano as Vice Governor 280
Delano would not agree. 280
Has told Warburg if harmony is not restored he
would write President and ask him to
designate some one else. 280, 281
Says impossible for President to designate Warburg,
a German only recently naturalised, having a
brother on Emperor's Council in Germany 281
Delano calls and evidently hopes C.S.H. will tell
him about his failure to be designated but
C.S.H. lid not allude to it. 281
Delano seemed domed and to appreciate he had used
a boomerang. 281
C.S.H. tells Harding of his proposition to McAdoo
to make a Board of Governors. 283
Harding sa$01 all would have accepted it and Delano
had been preparing such an amendiont. 283
C.S.H. said if Delano had frankly cane to him matter
cculd have been worked out. 283
Harding thinks Warburg is out of his head. 283
McAdoo says
President ready for Warburg 283
Determined to rule or ruin 283
If he resigns he will be riiiculous. 283
Copy of MeAdools letter congratulating C.S.H. on work
as Govenaor etc. 289
/// ?resident Wilson writes thanking C.S.H. for his
generous conduct as to the Governorship 290
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Federal Reserve Bank of St. Louis
91.
Hamlin, C. S. (Cont.)
Federal Reserve Board(Cont.)
Grayson, Admiral
C.S.H. dines with 266
Harding
Very discourteous to C.S.H. at hearing
of
Conn. tanks. 190, 191
Houston, Sec.
Mrs. Lane tells H.P.H. that, is trying
to get
C.S.H. place on F.R. Board. 289
Mexico
C.S.H. talk with Wilson as to 216
Miller
C.S.H. opposes call for resignation of
60,63
Analyses character of. 63
Illness of C.S.H. Grippe 7
McAdoo
Gives each delegate to Pan American Conf
erence a copy
of Index-Digest ot C.S.H. 19
Should not be Chairman, or perhaps, on Boar
d at all. 57
C.S.H. tells, plans of minority
1. To get Governorship
2. To move out of Tteasury building
3. To fight administration
4. To abolish Comptroller
5. To establish a central bank
241
Killer, Dr.
See same
Morgan, J. P.
C.S.H. reminds Delano of his visit to, with
out authority
or knowledge of Board. 120
C.S.H. goes over New York Yacht Club at Matt
apoisett with 268
O'Neil, J. H.
See same
Open raakket purchases
C.S.H. moves amendment to Sec. 14 to perm
it Federal
Reserve banks to purchase in open market note
s
bearing indorsement of 2 or more responsi
ble
indorsers. Tabled. Jan. 28, 1916. 175
Favors Smith bill permitting purchase in
open market of
notes. Sent to Law Counittee. March 6, 1916
. 208
Political contributions
Delano tells C.S.H. each member must decide for
himself. 246
Rediscounts
C.S.H. observes a tendency, e.g. in Minn.
and San Francisco
for member banks to refrain from, to prevent
Federal Reserve banks :naking dividends. 61
Redistricting
See same
Riggs bank
See same
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Federal Reserve Bank of St. Louis
92.
Hartainee. S. (Cont.)
Rural credits Committee
C.S.H. goes before. 157
Thralls, Jerome
Kansas
C.S.H. talks with, as Vo Federal Reserve Bark of
City, etc. 238
Votes
Federal
C.S.H. votes against designating Fleming as Deputy
Reserve Agent at Kansas City. 169, 170
Atlanta 194
.
C.S.H votes against transfer of Louisiana banks to
but
banks
C.S.H. votes to postpone petition of Conn.
finally agrees as to Fairfield County. 196
gee - Votes
Williams, J. S.
C.S.H. visits, at Blue Ridge. 261
Wilson
son 185
C.S.H. writes, indorsing his stand as to Sec. Garri
Wisconsin balks petition
apolis
See - Federal Reserve Bank, Minne
Hanna, Gov. 164
4-rsj
/
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Hanna, Hugh
napolis in
Tells C.S.H. the Gold Democratic Convention at India
1896 first started the country on a sound financial
basis. 74
, more than
C.S.H. tells the Indianapolis bankers that Hugh Hanna
cial
any other man, is entitled to the credit for the Finan
Act of 1900. 74
Harding, Gov.
Index. Refers to numbers on left side:
23, 24, 25,
Acceptance credits. 9, 10, 11, 12, 20, 21, 22,
35
3,
32,3
31,
30,
26, 27, 28, 29,
Acceptance regulations. Article by Warburg 70, 71
Administrative members. 166, 167
Amendments. 154, 155, 166, 167
Anmual report. 144
Associate members. 169
At par. Section 16. 234, 237
107, 138
Attorney General
Baltimore. 106
Iliattmore Trust Company 157
Bank of England agreement. 287
Bolling. 173, 180, 189
British Cotton contraband proclamation. 195
Brown Brothers acceptance credit
See - Acceptance credits
Burleson. Postmaster General 229,230, 231
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Federal Reserve Bank of St. Louis
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Harding, Gov. (Cont.)
By laws. 28
Chairman of Board. 24, 32
108
Cincinnati
232, 233, 237
ing
ear
members.
Cl
99, 229, 230, 231, 232, 233, 2348 235, 236,
Clearing system
237, 242
See - Exchange charg4s
Committee assignments 86
Commodity paper 41, 42, 49, 50, 51,52, 58
Compromise of cutting down of districts 99, 100, 102
- Ultimatum
Congress 154, 155, 273
Congressional investigaAon 27
161, 172, 1748 175, 1768 177,
Connecticut banks petition
185
178, 184,
Contraband. Cotton 195
Cotton Great Britain 13, 14, 15, 16, 17, 19, 34, 137, 195
13, 14, 17
Crawford. Sir Rthard.
Delano
85, 109, 1138 114, 1168 172, 173, 224, 252, 260, 263
265, 266
Deposits
See - Interest
140
Dtrectors
Discount rates. 1, 2, 3, 4, 5, 6, 7, 8, 144, 196, 197, 198
Elliott, H. W. 181
232, 235
Exchange charges.
See - Clearing system
Federal Reserve Bank, Atlanta. 698 73, 1151 158, 159, 160, 171
Federal Reserve Bank, Boston 1088 115, 128
Federal Reserve Bank, Cleveland 691 81, 108
Federal Reserve Banks Dallas 115
Federal Reserve Bank, Kansas City 108, 196, 197, 198
Federal Reserve Bank, Minneapolis. 2271 228
See - Wisconsin banks
Federal Reserve Bank, Philadelphia 69, 108
Federal Reserve Bank, Richmond 164
See - Boiling
Hardy
Seay, Gov
Federal Reserve Bank, St. Louis 108
Federal Reserve barks 41
Federal Reserve Board 15, 16, 22, 23, 248 29, 41, 60, 139, 140
144, 156, 165
Federal Reserve Board ; cutting down of districts
65, 74, 75, 768 80, 81, 838 841 85, 87, 888 89, 91, 921
93, 95, 96, 97, 98, 99, 100, 112, 113, 115, 1168 117,
118, 119, 1208 121, 122, 123, 124, 125, 1268 1271 128,
129, 132, 134, 138, 212, 214
Federal Reserve system
94, 163, 170, 240, 241, 242
94.
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Harding, Gov. (Cont,)
Index (Cont.)
Galt brother note. 164
German 268* 269
Germany 18, 19
Glass, Sec. 236, 237
Governmert deposits
38, 39) 44, 45, 59* 73)146, 147, 149, 150, 151, 152
153, 158, 159, 160, 171
Government directors 106
Governor, Rotation of
24, 25, 140, 199, 200, 201, 203, 204, 205) 206, 207
208, 238) 239, 247, 248, 250, 251, 252, 256, 257,
258* 259, 260, 261, 262, 263, 264,265, 266, 287,
268, 270, 271, 272, 273, 374, 275, 276, 277, 278,
2791 281, 282
Great Britain
See - Cotton
Hamlin, C.S.
11, 24, 33, 34, 55, 56, 57, 62, 64, 66, 68, 76, 83,
86, 102* 107, 114, 125, 129, 154, 155, 161, 152,
163, 168, 169* 189, 194, 199,2CO, 203, 203*, 207,
209, 210, 213, 217, 225, 239, 240, 244, 247, 254,
255, 259, 284, 285, 286, 287
Hardy) pedsral Reserve Agent, Richmond
186, 187, 188, 189, 191, 192, 193
House, Co]., 277
Husted, Senator 220, 221, 226
See - Wisconsin banks
Inflation 144
Interest on deposits. 6
Lansing, Sec. 287
Loyalty to Federal Ressrve system
Sae - Federal Re,erve system
Map Cutting down districts. 93, 120
Massachusetts. 185
McAdoo, Sec.
10, 18,2U, 24, 29, 30, 33, 35, 37, 40, 44, 48, 54,
59)73* 89, 97* 98) 99, 101, 102, 103, 104, 105, 106,
118, 119, 120, 121, 122, 123, 131, 135, 136, 141, 151
152, 167, 199, 200, 204, 205, 211, 213, 215, 221, 222,
2381 239, 240, 242, 243, 244, 247
Miller, A. C.
10, 31, 35/ 36, 431 441 451 531 761 111 1 173, 1811
1821 183, 191, 193, 198
Munitions acceptances
See - Acceptance credits
National bank examiners reports
see National bank withdrawals 94
Neutrality 287
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Index (Cont.)
New Orleans. loe
New Orleans Branch bank 66, 67, 77, 79, 81
Notes. Purchase in open market. 190
Olrey, Richard. 25
Open market purchases and regulations
46, 47, 55, 56, 57, 58, 61, 62, 63, 64, 66, 67,
68, 69, 771 791 99, 1111 190
People, Interests of the. 60
Politics 59, 83, 166, 167, 168, 226, 229, 230, 231
Previous question 143
Pro-German 35
Purchase of notes in open market 190
Reactionary 163, 245
Reserve bank organisation committee. 90
Reserves. 158, 159, 160, 171
Resignation
26, 401 531 54, 157, 277, 278
Resolutions
139, 140, 141, 142, 143
Rich, Federal Reserve Agent. 82, 284, 286
Rotation
See - Governor
Row, New 'fork meeting
See - Acceptance credits
Seay, Gov. 179, 180
Section 16, Federal Reserve Act. 234
Smith Bill. Cutting down of districts. 212, 214
Smith bill. Purchase of notes. 190
Smith, Hoke. 95
Stardk 1001 133, 135, 136
State banks, acceptances
See - Open market purchases
State banks, Associate members 169
State aspartment. 17, 34
Status, Federal Reserve Board 145
Stenographer. 88
Strike of members, Fedest Reserve Board 244
Sub treasury meeting
See - Acceptarce credits
Test case. Cutting down of districts. 138
Treasury domination. 145
Treasury. Moving out of. 145
Ultimatum Cutting down of districts
84, 851 92, 108, 114, 116, 117, 1181 119, 120, 121
122, 123, 124, 125, 126, 127, 128, 129
Tice Governor 199, 202
Totes
631 64, 77, 82, 134, 1471 175, 176, 178, 192, 193,
219, 223
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Federal Reserve Bank of St. Louis
96.
Warding, Gov. (Cont.)
Index (Cont.)
Warburg, P. M.
31, 35, 55, 70, 71, 78, 115 1 149, 153, 173,
206, 207, 206, 252, 253, 260, 251, 262, 263,
264, 265, 267, 268, 269, 270, 271, 272, 273,
274, 275, 276, 277, 278, 279, 280, 283
Warrants
73
Williams, Comptroller
72, 75, 80, 84, 92, 93, 100,106, 117, 118, 119
120, 122, 123, 130, 131, 140, 148, 156, 179,
180, 194
Willis, H. P. 21, 65, 97, 98, 101, 114
Wilson, Mrs. Woodrow 164
Wilson, President 34, 85, 107, 110, 203, 261, 262, 263
2651 268, 273, 274, 279
Wisconsin banks petition 209, 210, 211, 213, 215, 216, .
217, 218, 219, 220, 221, 222, 223, 224, 227, 228
246, 249, 284, 285, 286
Woad, Gov. 246, 249, 285
Yearly designation 243
(End of index)
•
Harding, Gov. Headings
1. Rediscount rates between Federal Reserve banks should
be 1/2% below rate of rediscounting bank. 2
2. Brown, of Federal Reserve Bank of Atlanta take like
a wild man, - wants a rate of 2*% for
rediscounts with other Federal Reserve banks. 3
3. Fears Atlanta banks are over extending under 4%
Federal Reserve bank rate. 3
44 A, 20 rediscount rate would be a pure gratuity to
member banks unless it is shared with customers
3, 4.
5. The 4% Federal Reserve bank rate has not benefitted
customers. 4
6. The southern banks pay from3% to 0% on deposits. 4
7. Rediscounts between Federal Reserve banks should
take the Ilex 'fork rate or a fraction below. 4
8. Any rate below 4% will encourage 'peculation. 4
9. Advises calling meeting in Nev York on Brown Brothers
acceptance credit. 33
10. Says McAdoo told him he wished Miller would try to
break a quorum tly staying away from meeting. 33
11. C.S.H. wires Harding in New York about meeting. 34
12. Harding would me3t at Subtreasury. 34
13. Speaks of interviews with Sir Richard Crawford as to cotton 43
14. Told Sir Richard,if cotton is to be made contraband
it should be done before crop begins to move. 43
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Federal Reserve Bank of St. Louis
97.
(
Harding, Gov. (Cant.)
15. Harding does not represent the cotton committee
of Board. 43
16. Matter never considered by Board. 44
17. Says State Department asked him to confer unofficiaZly
vith Sir Richard. 44
18. Says McAdoo said U.S. in danger of immediate rupture
with Germany. 44, 45
19. Harding gives impression that some agreemert as to
cotton might be male with Great Britain which
German,'d would regard as a direct breach of
neutrality. 45
20. McAdoo calls Harding to account for refusal to attend
meeting at Subtreasury, N. Y. 45
21. Harding says Willis was opposed to meettng in Subtreasury
46
22. Harding says power of Board must be definitely settled 48
23. Suggests preparation of by-laws. 48
24. Says McAdoo is so friendly with C.S.H. that he does not
bear in mind the powers of Chairman and Governor
48, 49
25. Says if Olnly had been Governor the row would not
have accrued. 49
26. Intimate possible resignation; from Board. 49
27. Also of Congressional investigation. 50
28. Agrees to suggested by-laws that 2 or 3 members may
call a special meeting. 50
29. Says Board is a democratic Board and each member has
as much power as Secretary of the Treasury. 50
30. Writes Secretary he will discuss his action as to
Subtreasury meeting only in a full Board meeting 50
31. To meet Warburg and Miller in coderence. 51
32. Harding's claim that the Chairman can not call a meeting
made ridiculous by fact that he himself called
meeting for this morning. 51
33. C.S.H. writes McAdoo stating position of Harding et als
as to New 'fork meeting. 51
34. Harding tells C.S.H. he has just had conference with
President Wilson as to his conferences over cotton
with State Department and Sir Richard and that
President fully approved. 51
35. Says McAdoo had no right to issue call for, or fix place
of meting, but he did not are personally, but
felt it wise to keep with Warburg and Miller to
head off any pro-German agreement they might make
together. 51
36. Says Miller has changed his views on discount of
munition acceptances by Federal Reserve banks. 51
37. Very decidedly objects to members rising when McAdoo
enters Board roam. 52
38. Says no need of Government deposits in Federal Reserve
banks, but rle did not intend by Objecting to be
gold up as a Judas by the south. 55
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98.
Harding, Gov. (Cont.)
39. Agrees Wurburg's plan is best way to put it through. 55
40. McAdoo says does not care if Harding should reign. 56
41. Harding urges Board to fix conditions as to comaodity
rates rather than to have Federal Reserve banks
do it. 58
42. Says it is a matter of exigency. 58
43. Says Miller offended because Board slightly changed a
press interview prepared by him. 59
44. Says McAdoo suggested the changes and they were good ones'
60
45. Says Miller wrote him a letter protesting against Govt.
deposits; in doubt whether he should open it but
would consult Warburg. 60
46. Reports against open market powers for purchase of bills.
62
47. Says, however, he is open to conviction. 62
48. McAdoo says Harding wants to ran with the hares and
courtie with the hounds. 63
49. Harding says Board has fixed a 3% commodity rate for the
south and ehould now drop the matter. 65
50. Said Board's course coald not be defended. 65
51. Tantamount to saying he had deceived Board. 66
52. Evidently does not want to interfere with member bank
rates except to pl-ase his constituents. 66
53
. 0.'.H. thinks HArding will resign if Miller is dropped
from Board. 66
54. McAdoo says he does not care. 66
55. Harding gives C.S.H. copy of report of Warburg and himsel
f
against C.S.H. report favoring open market powers 67
56. Most insulting to C.O.H. 67
57. Said earnings more important to C.S.H. than safety of
Federal Reserve system. 67
Spoke of danger of low rates. 67
58 Harding did not See this danger when he pleaded for
a 3% commodity rate for south. 67
59. Says MoAdools deposits in Federal Reserve banks
was pure politics to carry favor with south. 67,68
60. Thinks Federal Reserve Board represents banks more than
the people. 68
61. Reports in favor of a letter to Federal Reserve Agents
cte to open market operations, instead of regulations.
70
62. C.S.H. gives copy of his minority report to Harding. 71
63. Committee meets and Harding votes in favor of sending letter
72
64. On C.S.H. motion to substitute his minority report in
Board meeting, Harding votes No. 72
65. Willis goes to meeting with Harding, et als, to consider
cutting down of districts. 77
66. C.S.H. sends Harding a letter from New Orleans branch bank
asking authority to purchase state bank acceptances. 78
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99.
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Harding, Gov. (Cont.)
67. Harding reverses his position and intimates it may
be possible to amend acceptance regulations
and grant this. 78
68. C.S.H. sends amendment to Harding who replies
equivocably. 78
69. Harding in original report says Federal Reserve banks
do not want power to buy domestic bills yet
Atlanta asks to have a rate fixed and Cleveland
and Phila. favor iti
78
70. Warburg in memoranda on acceptance regulations
strenuously avoided criticiiirg Harding although
Harding has changed his mind constantly. 79
71. Warburg says in effact in memorandum that Harding
knew little or nothing about acceptances but
was willing to abide by his judgment. 79
72. Harding says if Williats keeps his letters on the files
protesting against being dropped from committees,
he sill file a mealorandum. 83
73. Harding reads newspaper clipping saying McAdoo approve
d
of Federal Res3rve Bank of Atlanta investing
its funds, includim Government deposits, in
warrants. 84
Me Willis says Harding et ale called him in and showed
him their plan of cutting down. 85
75. Harding writes Williams that he will oppose puttirg
him under Federal Reserve Board. 88
76. Harding says to C.S.H.
- you have "stumped" Miller
by your questions as to cutting down. 88
77. Harding votes to permit New Orleans branch to purchase
state bank acceptances. 90
78. Warburg furious against Harding. 90
79. Every word Harding said was contra to his report. 91
80. Tells Williams the committee on cutting down can
not agree. 91
81. Harding opposes putting northern Alabama in Cleveland
district. 91
82. Harding votes against power granted to Federal Reserve
Agent Rich as to publicity. 94
83. Harding tells C.S.H. that comLittee will report in favor
of cutting down in lemocratic as well as in
republican districts. 94
84. Harding presents to Williams to give to McAdoo, an
ultimatum on cutting down. 95
85. Says coamittes will cut down unless President sends for
Delano and asks him not to. 95
86. Harding, in new committee assignment takes 6 districts
and C.S.H. is not given any. 97
87. Harding admits he had talked with one of his Senators
as to political effect of cutting down. 104, 105,106,107
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Harding, Gov. (Cent.)
88. Harding moves to table resolution for a stenographer
at cutting down meeting. 106
89. Questions right to have McAdoo's vote recorded. 107
90. says stenographic report of reserve bank organisation
ccumittee gave a false report of Richmond meeting 10/
91. Says committe,, if instructed, can report a plan Of
cutting down within 2 or 3 days. 108
92. Harding said he reported to his colleagues his talk
with Williams giving an ultimatum as to cutting down
of 1Xstricts. 108
93. Williams asks that map referred to by Harding in his
ultimatum talk be produced. 109
94. Says recently learned on authority, when in Chicago, that
25 of most powerful national banks in the country
were planning to vithiraw from Federal Reserve system 114
95. Senator smith says, is weakening an cutting down question 115
96. Harding said he would not vote for any measure which would
surely result in a law suit. 115
97. Asks Willis to act as intermediary in tint, between
McAdoo and himself as to cutting down. 116
98. Asks Willis to make appointment with McAdoo. 116
99. said would be willing to abandon cutting down if
McAdoo would yield on open market powers, clearings,
etc. 116
100. Said that committee would compromise if McAdoo would agree
to fire out Starek in New York and require Williams
to give 9x5miners reports to Federal Reserve Agents. 116
101. McAdoo agrees to meet Harding but without Willis. 116
102. McAdoo tells C.S.H. he will never compromise with Harding 116
103. McAdoo said!
Had. talk with Harding. 117
104. Said he would never vote to precipitate a law suit. 117
105. Harding neither asked nor received any promise. 117
106. Harding agrees with McAdoo that Board should appoint
6 out of the9 directors. 117
107. Very ugly because of C.S.H. letter to President as to
opinion from Attorney General as to power to cut down 119
108. Harding showed Williams, during the ultimatum talk, a
map and plan and told him it abolished Boston,
Cleveland (substituting Circinnatti), consolidated
Kansas City with St. Louis, consolidated Atlanta
with Richmond, male New Orleans a Federal Reserve
Bark and added Baltimore to Philadelphia. 120, 121.
109. C.S.H. reminded Delano that he said that if cutting down
matter not settled before Friday, Harding would be away 123
110. Harding said the committee had been put in a false
light be 'ore the 'president who had blen made to
believe such action was intended. 124
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Federal Reserve Bank of St. Louis
Harding, Gov. (Cont.)
111. Says sarcastically committee will be able to report
of Miller's motion for a complete draft of
open market regulations, shortly. 128
112. Wants a coNislate report on minutes of Board as to
cutting down controversy. 135
113. Delano presents plans of cutting down, among them
ona marked "Harding."
137
114. Willis tells Delano he talked with C.S.H. after Harding':
ultimatum talk with Williams. 137
115. Warburg said Harding was only one Who favored abolishing
Boston and this was because Atlanta and Dallas
were abolished. 137
116. Delano at first claimed that Harding's ultimatum was
personal but C.S.H. pointed out that Harding said he
had reported it to the cam ittee, and he said
nothing. 138
117. W111iams says it was .tated at one meeting that the
dormlittes hal asked Harding to see him about the
ultimatum on cutting down of districts. 138
118. Williams writes AcAdoo:
i,rclose memorandum of talk with Harding. 139
119. Harding has seen and confirms it. 139
120. Asks ma to tell you that when he called on you 2 or 3
evenings ago he carried with him a copy of
canaittee report and a map. 139
Said
the com ittee gave him permission to leave it
121.
with you for your information. 139
122. Says he now has it an his desk and will send it to you
if you care to see it, before it is submitted to
Board next week. 139
123. Personally I have not read the report or map. 139
124. The above memorandum gives their talk in detail. 139
125. C.S.H. has copy of memorandum and of letter. 139
126. Harding in talk made his proposition as from man to man 139
127. ,Itated, however, in meeting of Nov. 15 that he reported
the *hole talk to the comAttee. 139
128. Thus the can_ittee authorized Harding to present report
and map to McAdoo and Harding told Willia.as it
abolished Boston. 139
129. Says he will consider changes suggested by C.S.H. in 3rd
draft of cutting down report. 142
130. Attitude as to national bank examiners serving as Deraty
Federal Isservz Ajents. 143
131. Says Williams is misrepresenting McAdoo's attitude as to
same. 142
132. Wants criticisms of C.S.H. in 3rd draft of cutting
report kept in. 145
133. Says no difficulty in settling Starek matter satisfactorily.147
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Federal Reserve Bank of St. Louis
102.
Hardirg, Gov. (Cont.)
134. Voted against filing 3rd report subject to changes to
be made by comittee, and postponing further
discussion until his return from Atlanta. 149
135. McAdoo denies Earling's statement that he had agreed
to settle Starek matter satisfactorily. 149
136. Said he merely said he would look into Harding's
suggestion that Starek should be dropped as a
Government director. 149
137. British Ambassador refers to splendid work Harding has
dons an cotton.
153
138. Suggests cutting down, in spite of opinion of Attorney
General, in order to maks a test case. 155
139. Introduces resolution setting forth important matters
which should be settled by Board. 162
140. These were:1. Examiner: reports.
2. Examiners as Class C Directors
3. Governors as directors
162
141. Vigorously opposv.s McAdoo's suggestion for postponement. 162
142. Finally consents to split up 2 into two parts:(a) Service as Depaty_Federal Reserve Agents
(b) service as Class C Directors.
162
143. Moves previous que.tion on resolution, - the first time
this motion made in 'Board. 163
144. Objects to including in annual report a statement of what
Board had done to make lower rates, as in future
Board might not want to take this responsibility,
in case over-expansion should result. 174
145. Says members are indignant at their status and intended
ultinately to move out of Treasury building as
they were looked on as merely a Treasury Department
under control of Secretary of Treasury. 178
146. Says he personally feels that amendment restraining the
Secretary of Treasury as to Government deposits
Should be dropped. 178
147. Said, however, if insisted on, he must vote at le,,Lst
for part of it. 178
148. Complains bitterly of Williams rulings and lack of tact. 179
149. Harding says he merely relrafte1 Warburg's memorandum as to
Government deposits. 180
150. Says 15 million Government deposits could only effect the
800 million cotton crop pyschologically. 180
151. says not for him to attack McAdoo for helping south. 181
152. Admits he wrote McAdoo, - no need for Government deposits.181
153. Says he will vote against Warburg's plan as to Government
deposits, but reserved right: 1. To bring matter up later.
2. If minority report insisted upon to concur in
part which he approved. 182
154. Bitterly objects to C.S.H. amendment for direct sippropriations
by Congress. 183
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Federal Reserve Bank of St. Louis
103.
Harding, Gov. (Cont.)
155. This evidently moved him to change his mind as to
Warburg amendments. 183
156. Appointed by Board to cooperate with Comptroller on
all matters. 184
157. Agrees to accept Presidency of Baltimore Trust Co.
but plan finally falls through. 1E4
158. Introduces proposed letter to Atlanta requiring 100%
reserve on Government deposits. 185
159. McAdoo calls it a "damned fool" letter. 185
160. Postponed. Harding very ugly. 185
161. Objects to que3tions put by C.S.H. at Conn. Ipanks
petition - very discourteous and insulting. 190,191.
162. C.S.H. feels, not a gentleman. 191
163. C.S.H. feels, not in sympathy with Federal Reserve
system and is a reactionary. 191
164. Tells Board has seen in papers that
Washington ban:
had discounted a note with Federal Reserve Bank
of Richmond signed by Galt Brothers and indorsed
by Mrs. Woodrow Wilson. 192
165. Says he was a chump ever to have gone on Federal Reserve
Board. 192
Says also: 166. Administration members won' allow any.amendments for
fear of giving the Re9ublicans political capita1.192
167. Said McAdoo told him this. 192
168. Said C.S.E. was afraid of political opposition. 192
189. C.S.E. says amendment under discussion, State banks as
associate members, - would be taken by bankers as
an admission that the Federal Reserve system was
a failure. 192, 193.
170. Harding at once said the Federal Reserve sysstam was a
failure unless radically amendi,ent and within 5 years
this would generally be Admitted!
193
171. Agrees to modify letter to Atlanta as to 100% reserve
an Government deposits, so as merely to approve
course of bank Which bad used letter, thus, in
effect, keeping a 100% reserve. 193
172. Doves to second Delanols motion to grant Whole of Conn.
banks petition. 194
173. Harding says if Warburg, Miller and Delano vote against
Bolling for Federal Reserve Agent, Richmond, this
would leave decision with him and h did not
want to be put in this position. 195
174. Favors granting entire petition of Conn. banks. 196
175. Votes against postponement to await result of clearing
system. 196
176. Votes against motion to transfer Fairfield County and
postpone the rest.197
177. Threatens to make public his report on Conn. banks petition
197
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Federal Reserve Bank of St. Louis
104.
Harding, Gov. (nt.)
178. Finally votes against transferring Fairfield County. 197
179. Very angry at Williams opposition to increase in Gov.
Seay's salary. 200
180. Says if proper salary given, would look somewhat
differently upon kind of man needed for Federal
Reserve Agent (meaning Bolling)
200
k81, Very indignant at Miller for objeting to increase in
Alliott's salary. 203
182. Said not first time Miller had imputed bad faith to
members. 203
183. Said wouli not rest silent under such intimation. 203
184. Moves postponement of Conn. banks petition until July 15
204
185. Agrees that he never will vote to transfer eastern Conn.
to Nev York or any part of Mass. 205
186. Says committed to Hardy for Federal Reserve Agent at
Richmond. 205
187. Tells Hardy will report his name but suggested his
withdrawal which Hardy declined. 205
188. Noyes election of Hardy. 206
189. C.S.H. satisfied Harding used Hardy as a device to get
rid of Bolling. 2071 212.
190. Bitterly attacks Smith bill to allow Federal Reserve banks
to buy notes in open market. 208
191. Very indignant at Miller for moving to postpone election
of Federal Reserve Agent, Richmond. 210
192. Voted against postponement. 210
193. Votes for Hardy's election and carried because Miller
changed vote to Aye. 210, 211
194. Consents to C.S.H. signing voucher for Williams salary
claim. 213
195. Says he wrote British proclamation making cotton contraband
213
196. Favors permitting Kansas City to increase rates. 214
197. Says Kansas City rates are out of line and should be
increased. 214
198. Attacks Milb r for his prejudice against banks and says
he will publicly denounce him. 215
199. McAdoo says may recommend to President to designate
C.S.H. for Governor and Harding as Vice Governor
231, 232.
200. C.S.H. agrees with McAdoo that if he is not designated,
Harding might be bast man for Governor. 231
201. C.S.H. said if Harding is Mad3 Gorernor, and Delano
dropped as Vice Go,,ernor, Warburg should be male
Vice Governor. 231, 232.
202. McAdoo thinks Harding would be pleased to be Vice Governor
232
203. Harding et ale tell C.S.H. of interview with President
as to rot ition of Governor. 233
Said nothing personal to C.S.H. 233
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105.
Harding, Gov. (Cont.)
203i Told President C.S.H. should be reappointed, 233
204. McAdoo says if any change made it will be Harding and
Warburg. 239
205. C.S.H. said other members - except Harding, - would be
mad. 239
206. McAdoo says Harding et als asked that Governorship be
given to man having the short term, - i.e. Warburg
239
207. C.S.H. says Warburg will be furious if Harding is
designated. 240
206. C.S.H. says all will say that Harding has double-crossed
them. 240
209. C.S.H. gives Harding a memorandum as to Wisconsin banks
petition. 245
210. Harding says q.s.H. solution will not solve problem. 245
211. Harding asked by Board to consult McAdoo as to Wisconsin
banks petition. 247
212. Agrees that Smith bill, authoriling Boa
to out down
districts, should be postponed. 247
213. McAdoo says will vote for Wisconsin petition if Harding
and
agree an it. 247
214.
draft of letter, with changes by Harding, as
to Smith bill, agreed to. 248
215. McAdoo favors Wisconsin amerried petition as per map
given to Harding by baldkees.248
216. Harding says Milwaukee banks will lose all their
reserve accounts to Minneapolis banks if petition
not granted, and delay would work irreparable
injury. 250
217. C.S.H. says will accept Harding's judgment that his
solution was not practicable. 251
218. Harding said out of question to transfer Milwaukee to
Federal Reserve lank of Minn. 251
219. Votes to reopen Wisconsin banks petition. Lost. 252
220. Harding explains situation, with consent of Board,
to Senator Husted. 253
221. Harding suggests that Sen. Husted see McAdoo. 253
222. McAdoo says agreed to vote for petition on
Hardingls statement that all were for it. 253
223. Votes to reopen petition. 254
224. Milwaukee Colmittea first visited Harding and Delano.
255
225. Harding congratulates C.S.H. on his reap ointment. 257
226. Harding tells Sen. /lusted he is not afraid of poktical
effect of reopening Wisconsin petition. 258
227. Harding tells C.S.H. transfer of Wisconsin banks
will mot injure Federal Reserve Bank of Minn. 259
228. Said Minn. was a wheat district. 259
229. Confers with Burleson over collecting checks through
the Post Offices. 260
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Harding, Gov. (Cont.)
230. Harding at first feels that if state bank checks are
not collected, at least 500 national banks would
be driven out of the Federal Reserve system by
the competition. 261
231. Later said we could =spend collection without injuring
Federal Reserve system. 261
232. Harding suggests clearing members with right to deduct
reasonable exchange charges. 261
233. Conference with Glass as to clearings. 262
234. Prepares draft of ameniment striking oat "at par“ in
Section 16. 264
235. C.S.H. feels Harding is weakening and never at heart
wanted to abolish exchange charges. 264
236. Harding gives his draft of amendment to Glass, who, be
said, seemed to favor it. 266
237. Harding makes new draft of amendment not striking out
Nat par", but providing for cleating members.
Said he sent it to Glass. 267
238. McAdoo says President has decided to rotate Governorship
and asks C.S.H. qpinion4 270
239. C.S.H. says if Harding wade Governor, the others would
think Harding had loutle crossed them. 271
240. McAdoo doubts Harding's loyalty to Federal Reserve system
and asks C.S.H. if he thinks he would be loyal. 271
241. C.S.H. says Harding would be loyal as he would consider
himself an important factor in Board, which wald
make him work for harmony. 271
242. 4cAdoo says will tell him President relies upon his
loyalty and has determined to designate him because
of his fine work on clearings. 271
243. Said President would designate him for 1 year only
which would give hia a hold on the situation. 271
244. Says minority "struck" at a critical time and President
felt it was better to yield. 271, 272
245. C.S.H. hopes Harding will abandon his reactionary
views. 273
246. Harding believes Gov. Wold anti-dated his circular
as to passing Milwaukee checks. 276
247. McAdoo sends C.S.H. the designation of Harding as
Governor and asks him to deliver it. 277
248. Copy of designation. 278
249. Harding says Gov. 'gold admitted to him that his
circular had been anti-dated by him. 279
250. Harding says he fears trouble over his designation
as Governor. 279
251. Says his associates wanted Rotation but got more of
it than they expected or wanted. 279
262. Said he had wirei Warburg and Delano for a conference
in N. T. 279
253. Says Warburg is so vitriolic he fears trouble. 279
C.S.H. tells Harding to move into his room immediately 279
Harding begs C.S.H. to tike his N.E. pictures with him 279
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Federal Reserve Bank of St. Louis
107.
Harding, Gov. (Cont.)
256 Says he will work for harmony. 279
257 Says felt it his duty to accept Governorship out of
loyalty to President, whatever his associates
might feel. 279
258 Seemed, however, vary much disturbed. 279
259 C.S.H. believes he had entered into some agreement with
his associates which they will accuse him of
breaking. 279, 280.
260 Tells C.S.H. Warburg is furious but Delano takes it more
quietly although bitterly disappointed. 280
261 Says Warburg prepared a letter to President accepting
designation but lecturing the President for not
:liaking him Governor. 280
262 Says Delano and he, with great difficulty prevented
him from sending it. 280
263 Said he told. Warburg the Presidet would justly resent
' such a letter and would take drastic action. 280
264 Said Warburg made all sorts of wild threats. 280
265 Said Warburg wanted to insist that President designate
him as Governor and Delam as Vice Governor. 280
266 Said Delano would not agree to this. 280
267 Said he told Warburg, if harmony not restored Al should
refuse to accept his designation. 280
268 Hardine, said i3possible for President to designate
warburg, - a German only recently naturalized. 281
269 Spoke also of Warburg having a brother on Council of
German Emperor. 281
Harding said:270 Warburg allLost will. 282
271 Had drawn statement. 282
272 Insisted on its being printed in Bulletin. 282
273 Statement said that majority of Board favored designation
of the 2 year member and were opposed to President
making designation; that Board wculd soon bring matter
to attention of Congress. 282
274 Harding told Warbarg no such statement could be published 282
275 Said Warburg said he would publish it himself. 282
276 Said he told Warburg it would only make him ridiculous. 282
277 Harding said Warburg wrote Col. House that if rotation
were not adopted by President, he and 3 other
members would resign. 282
278 Harding said he had told Warburg long ago that he world
abide by decision of President and that Warburg hid
no right to quote him as intending to resign. 28.
279 Told Warburg if he published such an interview it would
only give comfort to enemies of the Federal Reserve
system and would deprive administration of its
deserved credit for Federal Reerve Act. 283
280 Said Warburg, - "That is just that I want!"
283
11
01
ii
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Federal Reserve Bank of St. Louis
,
108.
Harding, Gov. (Cont.)
281. C.S.H. tells Harding of his earlier plan to
provide
for a Board of Governors. 283
282. Harding said he,and he believed the others
, would have
gladly accepted this. 283
283. Harding thinks Warburg is out of his head. 283
284. Harding talks with C.S.H. as to Rich letter about
Wisconsin banks petition. 284
285. Harding told C.S.H. that Gov. %Told triad to induce
one
of Minn. senators to protest but he would not
do so. 285
286. Warburg strongly urges C.S.H. not to send his propos
ed
letter to Rich. 291
287. Harding advises C.S.H. to see Lansing efore meetin
g
with Committee as to neutrality of Bank of
England agreement. 299
See also - Cotton
Federal Reserve Board
Votes
Hardy
See - Federal Reserve Batik, Richmond
Harrison, Put
Protests against check collection through Postmasters. 262
Harvey, Sir Paul
See - Great Britain
Hill, Congressman
198
See - Redistricting
Hollis, Senator
267
See - Hamlin, C.S.
Appointment
House, Col.
C.S.H. lunches with, at Manchester. 31
C.S.H. take over friction in Board with. 53
Warburg' objects to the conference with Col. House and Delano
36
Tells, whole trouble lies with Status dispute. 53
House advised McAdoo to consider the row over the New York
meeting
as a trivial incident. 53
Willis says, Obtained a copy of Glass draft of Federal Re6erve
Act and gave one to Wartarg. 140
Warburg wrote, that if rotation of Governor is not ado)ted,
he and 3 other members will resign. 282
See also - Delano
Houston, Sec.
C.S.H. lunches with, at Lock Tavern Club 12
Dispute as to whether any member has spdken to, about cutting
down plan. 104
"rfl
109.
Houston, Fed. (Cont.)
Question as to sendirw copy of Committee repor
t an cutting
down, to. 106
Says nothing in charges against Judge Ramsey. 167
Mrs. Lane says, is trying his best to get C.S.H.Is place
on
Federal Reserve Board. 289
Rant, Guillard
See - Prince, Dr
Morton
Misted, Senator
See - Federal Reserve Bank, Minmiapolis
Index digest
Sec. McAdoo gives each delegate to Pan American Financial
Corferende a copy cf Index Digest of the
Federal Reerve Act, by C.S.H.
19
Indiana State Bankers Association
C.S.H. and McAdoo addresses. 74
Inflation under Federal Reserve system
rlee - Root
Strom, Governor
Ingle, Federal Reserve Agent, Richmond
Trouble between, and Gov. Seay. 158
Elected to Baltimore Trust Campany, after Harding withd
rew 184
International High Commission
McAdoo mays Warburg is to be
ppointed on.
144
Jaffray
Tells Delano batter for Federal Reserve Bank of Minn. to
be transferred to Chicago if a branch were created
in its place. 14?
Japanese Ambassador
C.S.H. speaks at dinner of. 155
C.S.H. dines with. 214
ilL
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Federal Reserve Bank of St. Louis
••••••66.....•••••••
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Federal Reserve Bank of St. Louis
110.
Jay, Federal Reserve Agent
Asks amendment of Regulation R as to confidential statem
ents
of accepting bankers. 95
-KKitchen, Congressman
Protests against check collections through postmasters.
261, 262
Krauthoff, T. A.
See - Federal Reserve Bank, Kansas City
-LLaFtalette, senator
see - Federal Reserve Bank, Minn.
Lane, Mrs. Franklin
Says Houstin is trying to get C.S.H.ts place on Federal
Reserve Board. 289
.
Lansing, Sec.
Carranza can be forced to give proper treatment to Catholics
but we should wait until nearer the election. 176
Wished to postpone recognition of, but it es:m.1d not be lone.
176
Says Catholics explain hostility to Wilson as opposition
to his Mexican policy. 1 76
Says real reascn is a secret agreement with Germany that
Pope will be given temporal power if Germany wins war.
176
Says, on March 25,1916, that we are very near a break with
Germany: that it is only a quetion of time before
Bernsdorff is dismissed, that we .flust first g-t the
facts as to the torpedoing of the "Englishman" and
"Sussex". 214
Harding asks Cb.H. to see, before his interview with a
Canmittee of Board to ask as o neutrality of
Bank of England agreement. 299
Laughlin, Dr. J. L.
Explains his connection with National Reserve Association
and Federal Reserve Act. 129
Originally hat car of President. 129
Later, add not even see him. 129
Willis did not treat him fairly. 129
Willis and he drafted bIll for rederal Reserve Act. 129
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Federal Reserve Bank of St. Louis
Laughlin, Dr. J. L. (Cont.)
Glass gradually induced his camElittee and Presid
ent to
accept it. 129
Said when bill was before Senate, Dr. Mtller had & copy.
129
Miller conferred with New York bankers to emascu
late it. 129
Originally employed to give 'hole time to National Reserv
e
Association. 129
New York bankers knew their names wculd kill it and
irduced
Chicago to undertake it. 129
New York subscribed liberally to expenses which were all
legitimate while he was in charge. 129
Much work done in west and south. 129
243 direct attempt to influence Congress. 129
Even Sen. Vordaman accepted their bill. 129
Vanderlip, Warburg, and Irving Bush were among the New York
laders. 129
New York fcund Chicago acting in good faith for interest
of
the people. 129
New York lid not like this, - wanted to pull the string
s. 130
New York, as chief contributor, wanted to dictate the bil1.1
30
New York finally refused to give any more money as it would
not caminate. 130
Chicago had to raise funds to put the matter through. 130
Laughlin, in disgust at New York, finally gave the matter up.
130
Bush sail New York was raising a "slush" fund. 130
Laughlin says Warburg is absolutely unprincipled, - would do
any kind of dirty, underhanded work. 130
Fiaid Aldrich disliked Warburg and said he had done little
or
nothing to help. 130
Becaae convirced Aldrich plan must be thrown over asthe people
would not stand for it. 130
Said Warburg was crazy to get an Federal Reserve Board and
all his talk of sacrifice was pure hypocrisy. 130
Said he believed Warburg secured his confirmation by use
of money. 130
That New York hired lobbyists and even put spies in his
office. 130
Warburg absolutely unfit for Federal Reserie Board; merely
an
irvestment fund and stock broker who knew nothing
of coann4rcia1 credits. 130
C.S.H. said he had suggested Laughlin's name to McAdoo for
Federal Reserve BOArd. 130
L. said he knew warburg had and would fight him. 130
Willis tells C.S.H. of his troubles with Dr. Laughlin. 132
Willis said:Laughlin was retained. by Bankers Association in
New York and Chicago. 132
He, Willis, was retained to write book about bahkkg 132
That he wrote 7$% of it and Laughlin inserted pages
about National Reserve Association. 132
Laughlin male many suggestions to Glass and himself.
132
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Federal Reserve Bank of St. Louis
-V
Laughlin (Cont.)
Willis (Cont.)
Laughlin, unwittingly, gave bankers
to underctand that
as an old teacher of Willis, he coul
d dominate
his views. 132, 133.
Willis prepared draft of Federal Rer,e
rve Act for Glass. 133
Laughlin induced Glass to tell him its
general principles, consolidated reserves etc. 133
L. asked Glass if he could draw a bill ?subm
itting his
views and Glass said yes. 133
L. then drafted a bill, of which Wi11i
has a copy. 133
The Glass bill "Vas not based on Laughlin
's bill. 133
They were careful not to base Federal
Re3erve Act an any
bill presented by spacial banking interest
s. 133
L. asked Willis for a co9y of Glass bill but
Willis said
he could not give it to him. 133
L. was very angry. 133
Later a Chicago banker said Federal Rese
rve Act was based
on Laughlin's bill and Willis at once wrot
e denying
this. 133
N. Y. tried to have Glass removed from
the Congressional
committee. 133
N. Y. tried to have Willis removed as
an expert of the
committee. 133
The National City Bank worked on Ailed
in Washington to do
this but he declined. 133
N.Y. induced a Congressinnal Committee
to summon Willis. 133
Willis appeared and proved by document
s that the Federal
Reserve Act drift was not based on Laughlin
's or
any other banker's bill. 133
N.Y., especially Warburg, brought every pres
sure to bear aa
him to control the bill. 133, 134
Gov. Strong once came very near offering
him a bribe. 134
Says Laughlin is honest. 134
Wrote Laughlin once as to authorship of Fede
ral Reserve Act
but he refused to discuss matters. 134
Says Laughlin beca:lie convinced the binkers
were working
for their own rather than for the peoples'
interest. 134
Laughlin found that Forgan and Reynolds were
more narrow
and bigoted than Bush and Vanderlip,
and finally
gave up in disgust. 134
See also - Willis
•
,4 4
Lawler.
218
See- Coughlin, Dr.
Letters of Credit
See - Acceptance credits
Louisiana banks, 194
See - Hamlin, C. S.
Redistricting.
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Federal Reserve Bank of St. Louis
Lusitania, Sinking of
See - McReynolds
Lyerly, Federal Advisory Council
CTposed to abolishing Comptroller. 114
Opposed to cutting down districts. 114
See - Federal Reserve Board; cutting down
Williams
-M-
Malone
See - Federal Re'qerve Bank, Kansas City
Manassas Industrial School
Address, C.S.H. 229
Marsh, Treasurer of National Democratic Committee.
See - Politics
•
Marshall,. Vice President
Talks with C.S.H. as to Delano and McClallan
See - Federal Reservo Bank of Chicago
Massachusetts Bank Canmissioner
Broderick and Federal Reserve Agent Curtiss severely criticize
Thorndike. 219
•
McAdoo, W. G.
Index to headings (refers to numbers)
Accentance regulations. 210
Aiken, Gov. 242
Aldrich - Vreeland notes. 1
Ameniments. 120, 121, 125, 2471 2491 257, 258, 2.59,
261, 262, 268, 269, 271, 337, 338
Attorney General. 188, 191
See - Warren
Bank of England agreement. 409
Bolling. 2731 274, 2751 2771 278, 279, 280
Brandeis. 11, 12, 16, 17, 181 191 31
British Oriers in Council 61
Brown Brothers acceptance credit. 51, 52, 53, 55, 551
58, 59, 60, 63, 64, 65, 66, 67, 68, 69, 70, 71,
72, 731 74, 77, 88, 100
Burke, U.S. Treasurer
179, 180, 181, 182
Central bank. 343
Chairman of Board. 2, 98, 99.
I
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Federal Reserve Bank of St. Louis
•
•
•
•
•
•1
•
McAdoo, W. G. (Cont.)
Index (Cont.)
Clearing system. 46, 358, 359
Commercial paper. Purchase in op in marke
t. 244, 245
Conzaodity paper. 84, 85, 86, 87
See - Govt. depouits
Compromise. Cutting down. 185, 193
See - Ultimatum
Cotton 62
Cotton, J. P. 151
Delano
106, 124, 125, 126, 167, 174, 176, 179, 180, 181,
211, 214, 249, 250, 291, 295, 296, 300, 305, 307,
310, 311, 312, 325, 327, 328, 330, 331, 332,
335,
338, 339, 342, 345, 353, 354, 355, 360,
368, 369,
370, 371, 373, 374, 375, 376, 377, 380, 381, 382,
383, 384, 385, 386, 3871 390, 394, 395, 404,
410.
Garrison, Sec. 271
Germany
61, 62
Glass 154, 156, 208, 359, 406, 407
Glass Act 140
Government deposits in FsdarAl Reserve banks
84, 86, 87, 123, 124, 125, 197, 246, 263, 2651, 265,
286, 267.
Government directors. 194
Governor, Powera of 2
Governor, Rotation of 229, 230, 231, 232, 233, 234,
285, 286,
288, 289, 290, 291, 292, 293, 294, 295, 296, 297,
299, 300, 301, 302, 304, 305, 306, 307, 308, 309,
313, 314, 315, 319, 320, 321, 322, 323, 326, 336,
337, 338, 339, 340, 341, 345, 3491, 354, 355, 356,
357, 360, 365, 367, 380, 393, 394, 395, 396, 398,4
00
Governors. 221, 240, 241, 242
Great Britain. 61, 62
Hamlin, C. S. 9, 10, 14, 16, 17, 18, 19, 20, 21, 23, 24,
25,
26, 27, 28, 29, 30, 31, 37, 38, 44, 45, 46,
65, 66, 67, 68, 69, 76, 77, 79, 81, 88, 90,
93, 96, 97, 98, 102, 105, 1081 109, 114, 121,
122, 157, 158, 159, 160, 161, 162, 163, 164,
168, 172, 178, 182, 188, 198, 200, 204, 210,
211, 218, 225, 226, 227, 228, 231, 233, 2341
243, 257, 258, 259, 260, 261, 262, 275, 283,
284, 287, 309, 313, 314, 315, 316, 317, 318,
336, 337, 338, 339, 343, 344, 3471 348, 349,
356, 361, 362, 363, 364, 366, 367, 380, 390,
396, 397, 398, 399, 400, 401, 402, 408
Harding, Gov.
49, 61, 75, 76, 78, 80, 107, 115, 123, 157, 182,
184, 185, 193, 194, 196, 201, 215, 269, 277, 278,
279, 280, 281, 291, 294, 296, 303, 304, 305, 307,
320, 322, 329, 345, 346, 352, 378, 390, 391, 392,
402.
Harvey, Sir Paul 218
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Federal Reserve Bank of St. Louis
McAdoo, W. G. (Cont.)
Index (Cont.)
limes, Col. 81, 82, 83
Index Digest, C.S.H. 37
Indiana State Barkers Association. 128
Ingle, Federal Reserve Agent. 222
International High Conilission. 212
Laughlin, J. L. 198
Marriage. 336
McCoy, Judge. 36
Millibar banks. 103, 200
Miller, A. C. 50, 56, 57, 70, 71, 72, 73, 74, 101, 100,
104, 112, 113, 114, 115, 116, 117, 118, 140, 179,
180, 203, 204, 206, 207, 208, 379.
Neutrality. 62, 408
Ogilvie. 47, 48
Olney, R. 75
Open market purchases of notes. 244, 245
Pan American Conference. 37, 38, 39, 40, 41, 42
Ph/111pps, Assistant secretary. 365
Political circular, Federal Reserve banks. 236, 237
Politics. 87, 123, 272, 351
Purchase of notes in open market. 244, 245
Rediacounting. 103
Rediscounts
See - Discourts
Resignations from Federal Reserve Board
95, 96, 102, 104, 105, 112, 113, 115, 116, 118,
203, 205, 292, 293, 312, 328, 332, 3681 371, 383,
384, 385, 386, 387, 388, 405.
Riggs Bank
7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 191 20,
21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 331
34, 35, 36.
Schiff, Jacob 323, 324
Sway, Gov. 222, 276
South America. 282
Starek, Deputy Federal Reserve Agent
185, 213, 215,216, 217, 220, 224, 225, 226, 237,
Starus, Federal Reserve Board
821 88, 91, 92, 93, 94, 95, 96, 97, 158, 1601 163,
165, 166, 167, 168, 169, 170, 171, 238, 250, 2522
253, 2541 255.
Strong, Gov. 51, 54
Treasury, Moving out of. 251, 341
Ultimatum, Cutting lawn. 157, 201
Votes. 2441 276, 277
Warburg 138, 153, 163, 210, 212, 229, 246, 2481 286, 2961
297, 298, 320, 323, 325, 326, 328, 333, 334, 335,
340, 342, 343, 353, 354, 355, 368, 371, 3721
388, 389, 390, 394, 395, 403, 404.
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Federal Reserve Bank of St. Louis
116
McAdoo, W. Gs (Cont.)
Index (Cont.)
Warren, Charles
33, 34, 35, 44
Williams, Comptroller
19, 27, 33, 52, 108, 109, 110, 185, 201, 203,
235, 239, 270, 343
Willis, H. P.
139, 141, 142, 145, 149, 150, 151, 153, 183, 186, 223
Wilson, President
13, 14, 47, 91, 92, 96, 112, 135, 155, 156, 188,
190, 195, 211, 256, 273, 280, 304, 305, 306, 369,270,
371, 406, 407
Wisconsin banks petition 347, 350, 352, 353, 354
(-1:n1 of Index)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Headings.
Contemplates issuing more Aldrich - Vreeland notes.
A blow at Federal Reserve srltem. 1
Wants to force Richmond to lower its di'scount rates. 1
Claims that rediscount rates between Federal Reserve banks
should be same as acceptance rates. 2
Insists that he, and not C.S.H. as Governor, should sign
letter to President approving bills passed to amend
Federal Reserve Act.
2
Angry lt Governors for recanuending a 4% rate for rediscounts
between Federal Reserve banks. 5
Federal Reserve Baik of New York offers a 2% rediscount
rate to Atlanta in order to embarrass McAdoo. 6
McAdoo still ill and very much worried about Riggs Bank
suit. 9
C.S.H. advises him not to have a trial of Riggs Bank case, but
to secure a compromise. 9
C.S.H. advises him to think of himself and to drop Williacus
from consideration. 9
C.S.H. thinks he would like to to this but loyalty to
Williaas prevents. 9
Brandeis says penalties should ')e waived and that this course
will save McAdoo's reputation. 10
This course would leave allegations of bill Jaet by McAdoots
answer, and would end the matter. 10
See
Brandeis
President Wilson thinks McAdoo's evidence as to Nlis,t Ain's
said would tarn the tide against the Rigg's bank. 11
C.S.H. did not tell IcAdco of his talk with the President,
as felt that McAdoo would not consent to waiving
the penalties purely from loyalty to Williams. 12
McAdoo feels, C.S.H. thinks, that he has ancouraged Williams
and is therefore responsible for his queer actions. 12
McAdoo tang C.S.H. heis sorry that he (C.S.H.) talked so
frankly with Brandeis, who had told him all about it. 13
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Federal Reserve Bank of St. Louis
McAdoo (Cont.)
17. Especially disturbed at C.S.H. statement that he might
have to testify against Williams in the Riggs' Bank
tax loan deposits. 13
18. C.S.H. said it was his duty to tell Brandeis all he
knew, that he did not want to testify, but
if summoned should tell all the facts although
it mould be like tearing out his tongue to have
to testify. 13
19. C.S.H. told McAdoo Brandeis said Williams conduct not
justified in morals or equity. 13
20. Strorgly urged McAdoo to accept an honorable settlement. 13
21. Said that a trial, however it might turn out technically,
would drag in the President and injure the
administration. 13
22. McAdoo says will not object to a fair settlement. 13
23. C.S.H. tells McAdoo, Riggs Bank would surely be willing
to settle, as many of Williams allegations, even
though not relevant to the bill, would greatly
injure the bank. 13
24. McAdoo asks C.S.H. to read his affidavit. 14
25. C.S.H. tells him it is very strougand if settlement made
will leave him in a strong pusition. 14
26. C.S.H. points out tit sane reasons given in the tax
deposit matter, in the affidavit, McAdoo could not
have known until later. 14
27. McAdoo said Williams had verbally told him of these iatters
before May 6. 14
28. The record, howiv3r, shows that the examiners discovered
them only on May 18 and reported UTNU officially
on May 26. 14
29. McAdoo said his decision as to tax deposits, of May 6,
was only tentative and finally determined only in
his letter to Glover of June 9 or 11.
14, 15.
30. McAdoo said nothing of this to C.S.H. when he directed
him to tell Flather the deposits would not be
made in Riggs Bank. 15
31. C.S.H. surprised that Brandeis t4d Mckdoo what 0.5.11.
said as it was said in absolute confidence. 16
32. McAdoo tells C.S.H. all talk of compromise is nonsense. 17
33. Warren tells C.S.H. that McAdoo ard 4illiams prevented
a compromise by insisting on filing their affidavits.17
34. Warren said McAdoo made a great mistake in putting into
the affidavit his letter to Attorney General in
which he asked that lounsel be assigned to Williams
and said he did not wish to do injustice to
Riggs Bank. 17, 18.
35. Said this letter would probably make relevant the advise
given to Williams by Brandeis et ale, - which
Williams disregarded. 18
36. Judge McCoy finds that AmAdoo engaged in no conspiracy,
that he was justified in what he did and could not
have ions otherwise. 18
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Federal Reserve Bank of St. Louis
118.
•
•
•
McAdoo, W. G. (Cont.)
37. McAdoo gives copy of C.S.H. Index Digest of Federal
Reserve Act to each lelagate at Pan American
Firancial Conference referring to C.S.H. wonderful
address. 19
38. Alas C.S.H. to serve on a secret cannlittee to revise repotts
Of committeesat Pan Laerican Conference. 19, 20.
39. McAdoo declines to receive outside subscriptions for a
permanent Secretary of Pan American Conference. 20
40. Makes Federal Reserve Board pay for a tea given to
Pan American Conference, although it was given at
request of committee and Assistant Secretary Peters
said it would be paid for out of the appropriationl 21
41. Tells C.S.H. if Board does not pay it, it might be subject
to some political attack. 21
42. Quaere, - did the Secretary pay himself for the dinner
he gave to delegates in his own name? 21
43. C.S.H. feels McAdoo does not regard Federal Reserve Board
as part of the administration an fears future
trouble as to status. 21
44. Warren tells C.S.H. that McAdoo objected so vigorously to
one sentence in Attorney General's ouinton as to
the independent status of Federal Reserve Board, that
the Attorney General struck it out, - over Warren's
protest. 22
45.
Xxtraordinary that this opinion should have been shown
to McAdoo before publishing it, unknown to Board. 22
46. C.S. 7, has conference with, et als as to collecting checks
through Postmasters . 23
47, President Wilson tells McAdoo he hopes Board will make a
special effort to give Ogilvey, a Princeton man, an
hypointment. 28 ,
48. Board tells McAdoo it will not waive age limit for Ogilvie. 28
49. Hardirg meets Mcdoo in New 'fork. 33
50. McAdoo very angry at Miller. 33
51. McAdoo approves proposed letter to Gov. Strong. 33
52. Says, if necessary, will advise Comptroller to sign and
. send it. 33
53. McAdoo telephones C.S.H. favoring ileeting in New York
tomorrow. 33
54. FUlly approves proposed letter to Gov. strong. 33
55. Says can not be at New York meeting. 33
56. Said he knew what 'was behind Miller's attitude. (Pro German)
33
57. Sail he would know what to do if Miller broke a quorum
by absenting himself from meetings. 33
58. Minority says AcAdoo had no right to change call for
meeting by substituting the NAN York Subtreasury. 35
59. McAdoo telephones from North Haven, Maine. 36
60. Says no need to as. as to policy of administration as
to discount by Federal Reserve banks of munition
ac-..eptancez as Mliott has aivised 'Board it can not
prevent Federal Reserve banks from discounting
such acceptances. 36
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Federal Reserve Bank of St. Louis
119.
McAdoo, W. G. (Cont.)
61 McAdoo tells Harding U.S. is in danger of immediate rupture
with Germany over British Orders in Council. 44, 45
62 Gives inpression that U.S. wil' make agreement with
Great Britain over cotton which Germany will regard
as a direct breach of neutrality. 45
63 C.S.H. sends McAdoo a full aecount of Nev York dleeting as
to Brown Brothers acceptance credit. 45
64 McAdoo sends C.S.H. draft of letter calling minority to account
for refusing to meet at 9ubTreasury 45
65 Says he called meeting there after consulting with C.S.H. 45
66 C.S.H. corrects McAdoo; says did not consult with him;
if he had, C.S.H. would have called for meeting at
Subtreasury. 45
67 McAdoo wires that he has cut out the reference to C.S.H. 45
68 Advises C.S.H. to file protest in records.45
69 Minority 111 not question legality of call at the meeting. 47
70 Miller files statement:
71
No discourtesy to McAdoo intended. 47
72
Had McAdoo been at meeting he would have attended. 47
73
In absence of McAdoo felt
menibers could consult own
convenience. 47
74 Miller did not claim Secnetary's action in changing call
was illegal. 47
75 Harding says if Richard Olney had been Governor, McAdoo
would not have changed the call. 48
76 Harding says that McAdoo and C.S.H. are so intimate that
McAdoo does not sufficiently bear in mind the power
of Governor. 48, 49.
77 C.S.H. says:
McAdoo dii. not overtale him in ...,anging call. 49
Chairman has that right. 49
79 Harding says Board is a Democratic Board and each member
has as much power as McAdoo. 50
79 C.S.H. writes McAdoo stating position of minority. 51
80 Harding decidedly Objects to members rising when McAdoo
enters Board roam. 52
81 C.S.H. tells Col. House that Board feels that McAdoo
officially looks down on members. 53
82 C.S.H. tell, House whole trouble arises from failure of
McAdoo to settle stutus question. 53
83 McAdooconsulted House about New York meeting row and Col.
House advised, him to consider it as a trivial
incident. 53
84 Board much disturbed over McAdoo's public statement that he
shodUmake deposits in Fedenal Reserve banks, without
interest, for rediscount of cotton paper. 54
85 McAdoo wants Board to arrange for commodity paper at
specially low rAte of interest. 54
86. Accepts warbarg's suggestion that Federal Re!ierve banks
arrange this. 54
87. C.S.H. believes thia a purely political move of McAdoo. 55
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Federal Reserve Bank of St. Louis
McAdoo, W. G. (Cont.)
88. C.S.H. advises McAdoo to treat Y. Y. row lightly. 55
89. McAdoo wants a fight. 55
90. C.S.H. says status matter is at bottom. 55
91. McAdoo says whole trouble is with the President, who
does not want to put Board above the Interstate
Commerce Commission and Civil Service Commission 55
92. Says President willing to put Board on a rarity with
Assistant Secretaries, but never before told this
to C.S.H. 56
93. C.S.H. tells McAdoo, Board should rank just below Congpeus
and ahead of Counsellor of State Departi_ent, and
Solicitor General. 56
94. McAdoo said this would swell their heads and make them
more obstructive than ever. 56
95. says would welcome resignations from Board. 56
96. Said. if President could see the correspondence (N.Y.
meeting) he might take some of them by the Borough
of the neck. 56, 57,
97. C.S.H. feels McAdoo can not see the other side of the
question. 57
98. C.S.H. feels McAdoo should not have been put on 3oard
as Chairman. 57
99. C.S.H. feels, should merely have a seat an 3oard, or
perhaps, should not be on Board at all. His
presence means jealousy and friction. 57
100. McAdoo accepts sta;aments of minority as to N.Y.row.
58
101. McAdoo replies to liller's statement that Board has
surrendered to Wall Street, by asking him if he
means to impute misconduct to any member, and Miller
says No. 59
102. McAdoo asks C.S.H. how members would feel tf Miller's
resignation were called for. C.S.H. objects.
Sept. 7, 1915. 60
103. McAdoo says many prominent people have told him member
banks are refraining from rediscounting to weaken
Federal Reserve banks and prevent them from making
expenses and dividends. 61
104. McAdoo again, Sept. 15, 1915, brings up question of Miller
's
resignation.
Says:
Has lost all confidence in him. 63
An ultra conservative sympathy only for the banks
None for their customers.
106. C.S.H. again Objected. 63
106. Thinks Delano honest but obstinate and ultra conservative. 63
107. Says Harding wants to run with the hares and course with
the hounds. 63
says Board absolutely right as to Williams and
examiners reports. 63
Ice. C.S.H.
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Federal Reserve Bank of St. Louis
121
McAdoo, Ylr. G. (Cont.)
109. Asks C.S.H. for his memoranda as to Williams and
examiners reports.
63
110. McAdoo thinks Federal Re3erve barks should have copies
of 411 examiners reports. 63, 64.
111. McAdoo suggests to Governor Fancher that failure to
earn expenses and dividends shows that Cleveland
does not need a Federal Reserve Bank. 65
112. McAdoo says President is much disturbed over Miller„
feels that he adds nothing to the Board and
was considering calling for his resignation.
Sept. 22, 1916. 66
113. McAdoo said he was tempted to ask him to do this. 66
114. C.S.H. objects. 66
115. AcAloo says Allier has written a nasty letter to Harding 66
116. C.S.H. objects to calling for Miller's resignation and
says the other members would line up with him. 66
117. McAdoo replied, - "But Miller would be out of the Board." 66
118. C.S.H. said other members might resign and McAdoo said
66
"Let them resign, I don't care."
for only
his
head
out
of
McAdoo
almost
C.S.H.
thinks
119.
Thursday he said it would be very bad, politically,
to have any split in Board. 66, 67.
120. Infuriated when C.S.H. said Board would send amentaents
to Congress; said President would maks short work
of any amendments he did not fasor. 67
121. C.S.H. says Board has right to this -Sy a majority report
and the others coils file a minority report. 67
122. McAdoo feels Board is subordinate to administration as
represented by himself. His attitude will lead
to trouble in future. 67
123. Harding says McAdoo's deposits in Federal Reserve banks
was a shrewd political move to carry favor with
the south. 671 68.
124. Delano prepares draft of report signed by him severely
condemning McAdoo for the Govt. deposits, - said
it was a purely political move. 68
125. Delano says deposits were made without consultation with
the Board and the Board not responsible for
them, and suggests an amendment changing the law,
as it enabled McAdoo to frustrate all plans of
the Board. 69
126. McAdoo furious with Delano. 69
127. Board very angry because McAdoo published letter of
President favoring branches or agencies of Federal
Reserve banks in South America. 73
128. MoAdoo speaks at Indiana State Bankers Association,
Indianapolis. 74
129. McAlco tells C.S.H. of Board meeting on Federal Reserve
bank agencies in South America. 75
130. Committee reported adversely. 75
.131. Report very discourteous. 75
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Federal Reserve Bank of St. Louis
122.
McAdoo, W. G. (Cont.)
132. McAdoo suggests recommittal for amendment allowing
national banks to invest in stock in foreign
banking corporations. 75
133. Miller Objects to recommittal. 75
134. McAdoo finally agreed to a press statement against the
plan. 75
135. This statement was, - and was construed by the press as, a direct blow at McAdoo and President. 75
136. Said he published the President's letter favoring
foreign agenctes, wrely to plea3e South American
delegates, and that Cooksey published it without
his knowledge; that he never even thought of
antagonisirg the Board. 75
137. Another imitance of lack of tact on McAdoo's part. The
Board, howevlr, an its part, should not have
published its adverse report. 75
138. Warburg prepares titter attack an McAdoo in connection
with joint agencies of Federal Reserve banks in
South America. 77
139. Willis ap.)oses it. 77
140. Warburg prepares series of resolutions attacking McAdoo 77
141 McAdoo calls Willis to his house. 77
McAdoo greatly disturbed. 77
142. Willis advises concessions to bring about harmony. 77
143. McAdoo said he tried to have matter postponed until
his return from Indianapolis by r3ference to a
committee. 77
144. McAdoo said committal could. mak) a unanimous report to
which he would. agree. 77
145. McAdoo told Willis his amendment would permit member
bank' to unite in forming corporations in foreign
countries. 78
146. McAdoo said Board insisted, as a condition of doing this,
that an immeli'ate st.itement be given to the public 78
147. That a committee Wik3 appointed to prepare a tatment. 78
148. McAdoo said, after some minor changes, he reluctantly agreed
to it. 78
149. Willis sail McAdoo conceded too much in agreeing that
Federal Re3erve banks could not establish agencies
in countries where national banks had branches. 78
150. Willis said ..1.1Acioo male a fatal mistake. 78
151. Willis said Cotton told loard it was clo dominated by
McAdoo that tell country was laughim: at it. 78
152. McAdoo objects to Federal Re -ierve Bank of New York
giving u9 its present building leased from his
friend,Pliny Fisk. 91
k53. Willis says Warburg et als feel that McAdoo won't dare to
fight them aver cutting down of districts, as
he had backed down on Federal Reserve bank agencies
95
40
123.
•
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Federal Reserve Bank of St. Louis
McAdoo, W. G. (Cont.)
154 Glass confers with McAdoo about cutting down of districts
98
155 Board members feel McAdoo Ixercises undue influence over
President. 98
156 Glass says Board feels that McAdoo unable to report facts
correctly to President. 98
157 McAdoo asks C.S.H. to get Harding to put his cutting down
ultimatum in writing, and that, if he dtd, something
might happen at the White House. 98
158
tells IcAdoo that whole trouble would subside if
President will give Board, a status just below
Congressman lnd above Counsellor of State Dept.,
Solicitor Genral, and A3sistant secretaries. 98, 99.
159. C.S.H. said. to McAdoo:160. Status of Board is the real trouble. 99
161.
Feel they are not part of administration. 99
162.
Will, therefore, establish one of their own. 99
163.
Warburg trying to injure the administration for
Pro Gernan purposes. 99
164.
Board angry at being slighted. 99
165. McAdoo won't agree that status of Board ie the real
trouble. 99
166. Feels tileir attitude is simply anti-administration 99
167. Says hao. told Delaro hl would soon take up status matter
and hoped he could p1e:2se the Board. 99
168. C.S.H. begs McAdoo to do this at once. 99
169. C.S.H. said to McAdoo:
Board can show it is out in the cold. 99
170.
Can not even address the Attorney General. 99
171.
Has Tight to have status settled. 99
172. C.S.R. made little impression on McAdoo, - he is strangely
blind. 99
173. McAdoo asks postponement of cutting dawn of districts
until he can be present. 100
174. Delano very ugly - says McAdoo is in town, knows all
about the matter, has found time to talk it over
with others not mashers of Board. 100
175. C.S.H. instructed to find from McAdoo eaeliest date he
could attend. 103
176. Delano said McAdoo had told some one that Federal Re.:erve
Banks of Minn. would be abolished. 104
177. McAdoo appoints next Monday for a meeting. 104
178. McAdoo writes Board he hopes resolution of 0.7.H.
will be Apted. 104
179. Miller and Delano Accuse McAdoo of inciting Burke to
attack Federal Reserve Bank of Minneapolis. 106
180. McAdoo writes Delano and Miller asking their authority
for statement about Burke. 109, 111.
181. McAdoo says Delano clai:Ls that C.S.H. did not quote
him quite correctly about Burke. 111
r
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Federal Reserve Bank of St. Louis
124.
McAdoo, W. G. (Cont.)
182. C.S.H. tells Board wily he felt it his duty
to
tell McAdoo about Burke. 111
183. Harding asks Willis to serve aa an intermedia
ry
between him and McAdoo at an interview. 116
184. He.aiding says comaittee will yield on cutti
ng
iown if McAdoo will yield on open market
powers, clearindt, etc. 116
185. Harding says comiAttee will compromise if Mcedo
o
will agree to fire out Starek, and to
require Williaas to give examiners reports
to Federal Reserve Agents. 116
186. McAdoo agrees to meet Harding, but not with
Willis 116
187. says he will never caqpromise. 116
188. McAdoo asks C.S.H. to write President askin
g him to
obtain opinion from Attorney General as to
power of Board to cut down districts, etc. 116
189. McAdoo says would do it himself, were he not a
member of reserve nark Organization Committee.
116, 117
190. McAdoo tells C.S.H. he has received his letter to
President and it was being attended to. 117
191. 4cAloo asks C.S.H. to send to Attorney General
his
(C.S.H.) mamorandum on the matter. 117
192. McAdoo said he had a talk with Harding who said
he
would not vote to precipitate a law Emit and
would vote to dismiss whole matter. 117
193. McAdoo eaid Harding neither asked nor received any
promise in return. 117
194. McAdoo agrees with Harding that Board should appoint
6 out of the 9 directors. 117
195. McAdoo explains to Board why he aslc!d C.S.H. to
write to President. 118
196. Tells Harding any member aii,n write President. 124
197. McAdoo tells Board he will remove all Govt. deposits
in banks in Federal Reierve cities and put
them in Federal Reserve banks. 128
198. C.S.H. tells Laughlin he had recoc:Lended him to
McAdoo for place ibln Board. 130
199. McAdoo calls on minority and agrees that all
differences 3hould be eliminated. 131
200. C.S.H. tells McAdoo that we should acr.r,bat feeling
that Federal Reserve systei depends on good
will and suffrance of member banks. 131
201. Col-4 of letter from Harding to Williams giving
ultimatum to McAdoo on cutting down of iistricts 139
202. McAdoo aimits he gave co:4 of original Glass Act to
Miller for suggestions but they were of no
value. 140
203. C.S.H. opposes to McAdoo suggestion made by Williams
that Miller's resignation be called for. Des. 2,
1915.
141
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Federal Reserve Bank of St. Louis
125.
McAdoo, W. G. (Cont.)
204. C.S.H. tells McAdoo others will resign if Miller
called on to resign. 141
205. McAdoo says he does not care; that country will
recognize that the administration will protect the
Board and conserve for the people the prosperity
caused by Federal Reserve Act. 141
206. McAdoo augosts calling for Miller's resignation and
putting Glass in his place. Dec. 2, 1915. 141
207. McAdoo says stole country woad rejoice. 141
208. C.S.H. tells McAdoo it would raise a political issue
which would disturb the country and injure the
administration. 141
209. McAdoo fAvors ,Dolicy of not having national bank
examiners as Deputy Federal Ressrve Agents. 142
210. McAdoo advises C.S.H. to send to Warburg reply to his
attacks in article on acceptance regulations.
142, 143.
211. McAdoo says President will shortly send for C.S.H.
and Delaro .aparately to discuss divisions in
Board. 143
212. McAdoo tells C.S.H. he is to ask Warburg to go on
International High Ccrandssion. 144
213. McAdoo tells Harding will satisfactorily settle Starek
matter. 147
214. Delano says if McAdoo had been at fleeting of Nov. 15,
there would have been no row over cutting down of
districts. 147
215. McAdoo denies that he toll. Harding Starek matter Nould
be satisfactorily settled. 149
216. Thinks Starek should serve out term as Government
director, but should be relieved as Deputy
Federal Reserve Agent. 149
217. That he wrely told Harding he would consider his
suggestion that Starek be dropped as Govt.
director. 149
218. McAdoo agrees with Q.S.H. as to inadvisability of having
an interview with Sir Paul Harvey. 152, 153.
219. MaAdoo reserves right to file a statement as to cutting
down dispute. 155
220. McAdoo inclined to yield on Stanek matter. 157
221. Very angry at Governors; they must be curbed; their title
should be changed to ?resident. 157
222. Talks about row between Gov. Seay and Ingle.
Opposes Gov. Seay's reelection. 158
223. Willis says McAdoo should attend more Board meetings. 160
224. McAdon inclined to yield on Starek. 161
O.S.H. tells McAdoo:
•225.
Purpose is to displace Starek to please N.Y. directors
161
226.
Should prsfer not to make him resign as tAass C
director. 161
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Federal Reserve Bank of St. Louis
3,311.
McAdoo, W. G. (Cont.)
227. C.S.H. tells McAdoo (Cont):
Shall vote, as matter of policy, that examiners
should not be De-,uty Federal Reserve Agents. 161
228.
Starek should serve out his 1 yar term. 161
l!cAdoo
229.
Warburg crazy to be Governor. 161
230.
If we hold rotation out ati a bait, it might satisfy
him. 161
C.S.H. says: 231.
After what has taken. place better to Ifait till
C.S.H. term expires. 161
McAdoo said: 232.
Good Godi as long a, I am here you will 15e at my
right hand. Should never even consider such a
change!
161
233. C.S.H. believes McAdoo out this out as a "feele
r" and is
very indignant. 162
234. McAdoo willing to turn over the citadel to the ansmyi
182
235. McAdoo objects to present consideration of Hardin
g's
resolution as to examiners reports etc. 162
236. McAdoo introducee resolution against directors or
officers
serving in politieal positions or an public officers
of U.S. 163
237. Says not intended to mpply to national bank examiners
(Starek) nor to directors now in office. 163, 164, 165
238. Iricitioo gives dinner to Federal Reserve Board and
guts C.S.H.
ahead of Glass and Assi5tant Secretary Roosevelt. 168
239. McAdoo indignant at Williams for bringing up his salary
claim at this time; asks that it be held up for
present. 172, 173
240. McAdoo reads memorandum against organization of GoverncrE.
173
241. Says Governors went beyond legal powero to protecting agains
t
pressure by Board as to discount rates. 173
242. Governor Aiken says 4c4doo was right. 173, 174.
243. McAdoo against C.S.H. suggestion that annual report should
show work of Board in reducing dis:ount rates. 174
244. McAdoo voted to table C.S.H. resolution authorizing purchase
of notes in open market, with 2 or more responsible'
indorsers. 175
245. sail he favored it but it should not be passed at present
time. 175
246. Warburg proposes addition to annual report limiting power
of McAdoo as to Govt. deposits , etc. 177
247. McAdoo asks C.S.H. to prepare draft of other mmendments.
177
248. Agrees that this is a iirect attack on himself. 177
249. Delano says will file minority report, if necessary. 178
250. Says members indignant at their status. 178
251. Members will ultimately move out of Treas'Iry 178
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Federal Reserve Bank of St. Louis
McAdoo, W. G. (Cont.)
McAdoo said: 252. Cabinet members on Boa,rd adds to its dignity. 178
253. Board wants, at leat some memberb, Wants
Sec. of Treasury and Coaptroller put off Board. 178
254. Want uore power than any aiministration would ever
gile them. 178
255. Had told Preaidlat he would not obj,ct to status
4bove Assistant secretaries. 178
256. That President was embarrassed because Assistant
Secretaries had had a status for a century which
it was very difficult to overthrow. 178
C.S.H. gives McAdoo a draft of proposed amendments:257.
1. Direct appropriations by Corgress. 179
2. Aoproval of Comptroller's efforts to stop
258 .
usury. 179
3. Federal Reserve Board to be given power to
- 259.
fix maximum ratee for member banks. 179
4. Stamp tax on checks in Interstate Comlerce
260.
drawn on banks not in clearing :Iirstem. 179
5. Govt. to subscribe to stock in Federal Reserve
261.
banks in case of withdrawals by member
banks. 179
6. Right to individuals to deposit in Federal
262.
Reserve banks. 179
•
263.
McAdoo explains reasons for deposits in Federal
Reserve banks; emergency: merely said in Maine
would deposit if necessary; before depositing
consulted Federal Reerve Board; would have
consulted Board before Maine statement had he
been in Washington. 180
263i. Said deposits had been little availed of. 180
264.
Harding admits writing to McAdoo that no deposits
necessary. 181
265.
McAdoo said:
Board would offset his action by rediscounting
between banks or by increasing discount
rates. 181
266. McAdoo said no legislation limiting his power could
be enacted; that any Secretary abusing this
power would be realoved. 181, 182.
267. Said as much danger that Board would abuse its
power. 182
268. Agrees to etatament in annual re-mrt that Board
forbear to suggest certain amendments because
of difference of opinion. 182
269. Harding bitterly objects to McAdoo a:aendments
(drawn by C.S.H.) especially as to direct
appropriations by Corgress. 183
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Federal Reserve Bank of St. Louis
McAdoo, W. G. (Cont.)
270. McAdoo directs Williana to carlt Board on ,111
important proposed action snch as new
statements in condition reports, etc. 184
271. McAdoo says Garrison as a rectionary with no
sympathy for Wilson's policies and is .:16.1
he has resigned. 185
272. ilcAdoo tells Harding lministration members will
oppose all amendments flaring to give
Republicans politilal ctAvantage. 192
273. McAdoo says President Nould be pleased if Board will
appoint Bolling, his brother-in-law, Federal
Reserve Agent at Ri3hmond; that if fit for
the position his relationship should not count
against hlm. 195
274. McAdoo says has asked laliott for opinion shether
Bolling was a 2 years resident. 195
275. C.S.H. tells McAdoo 1111 con,ider matt?r purely
fran point of fittness. 195
276. Votes to intlrease Gov. Seay's salary to $12,000. 200
277. McAdoo asks C.S.H. to record hiz vote gAinst Hardy
for Federal Reserve Agent, Richmond. 207
278. Finally says realizes H-rly Nill be elected and says
he All not attend meeting and that majority
may vote as they please. 207
279.
bought it better not to protest as he wanted nothing
on the record to embarrass him in .P)ture when
"certain events" may take place. 3)8
280. Said it was a deliberate affront to PreAdent which
will not be forgotten. 208
281. McAdoo says C.S.H. right in not holding up weeting
to enable him to vote on Hardy. 213
282. Leaves for South America. Mar. 7, 1916. 213
283. McAdoo asks C.S.H. ,
4hen his term expires. 224
Wishes C.S.H. reavointed. 224
Certain it will be :-J.11 right. 224
284. iliss heard of no candidate for C.S.H.Is place 224
285. !tithes ?resident to redesignate C.S.H. as Governor. 224
286. Sail this would break Warburg's heart. 224
287. C.S.H. tells McAdoo would be glad to be reappointed. 224
288. C.S.H. says as to Governorship, his oily merit is
that he is probably the most even tempered of
the appotntive members. 224
289. McAdoo said C.S.H. the best fitted man, in all respects,
for the position; that he was judicially fair,
ard had tact and ability in handling disputed
questions. 224
MaAdoo tells C.S.H.:
290.
Devil of a eommotion over rotation of Governor. 231
291.
Will ask President to designate C.S.H. for
Governor and Harding for Vice Governor. 231
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Federal Reserve Bank of St. Louis
129
McAdoo, W. G. (Cont.)
292. McAdoo tells C.S.H.: (Cont.)
C.S.H. says Delano would resign. 231
293.
McAdoo thinks not. 231
294.
C.S.H. says will accept loyally decision of
President. 231
294i.
C.S.H. thinks Harding the best man if rotation
adopted. 231
295.
Determined to oust Delano from Vice Governorship 231
296.
C.S.H. says If Harding is mail Governor and Delano
dropped as Vice Governor, Warburg should be
made Vice Governor, 232
297. C.S.H. says Warburg will be bitterly diaagpointed if
not made Governor. 232
298. McAdoo says Warburg could not be designated, if for no
other reason, because of his German affiliations. 232
.299. Favors C.S.H. and Harding. 232
300. C.S.E. says might cause trouble to pass over Delano
before the elect4n. 232
301. C.S.H. iaya willing to lesignatetemporarily if it will
help President to tide matters over the election.
232
302. Firm for C.S.H. as Governor, only a tried and true should
be Governor. 232
303. Thinks Harding would be pleased at Vice Governorship. 232
304. C.S.H. tells McAdoo of interview of Delano, and
Harding with President, and shows him a copy of
.Delanots letter to President. 235
306. McAdoo said had not seen letter nor did he know
of their interview. 235
306. Said they had discussed rotation with him last week and
complainted at having had no opportunity to
discuss matter with the Ptesident, and he said
to them, - "Why don't you see him.*
235
30/. Indignanat at tone of letter. 235
308. Adverse to considering designation of any one of them 235
309. C.S.H. tells McAdoo to think only of good of system. 235
310. Says will never stand for Delano as Governor. 235
311. C.S.E. suggests better to designate Delano, if any
change made, as he might resign if not designated
and also dropped from Vice Gove-norship. 235
312. Said he wished Delano wonli resign and others also. 235
313. C.S.H. tells McAdoo not to talk with him again, that he will loyally acce:;t any decision. 235, 236.
314. McAdoo asks '.S .H. if members were not very pleasant
at meeting this morning. 238
315. C.S.H. noticed this and fears McAdoo has surrendered on .
rotation. 238
316. C.S.H. lunches with McAdoo. 239
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Federal Reserve Bank of St. Louis
130.
M4A000, W. G. (Cont.)
317. McAdoo says:President will send in C.s.H. nominatien within
a few days. 239
318. Will be speedily confirmed. 239
319. Uncertain as to rotation. 239
320. If any change, it will be Harding and Warburg. 239
321. Asked. how Board would feel. 239
322. C.S.H. aaid, very mad, except Harding. 239
323. C.S.H. says Warburg expects it and Schiff has
come out for Harding for this purpose. 239
324. McAdoo said Schiff guided only by public spirit!
239
325)( C.S.H. says Delano expects it as he thinks Warburg
can't get it. 239
326. McAdoo said, - "No, they all asked that Governorship
be given to member having the short term.
(Warburg)' 239
327. C.S.H. says he is certain, from Delano's manner, he
expects it. 239, 240.
328. C.S.H. says if Harding is designated, Warburg will be
furious and Delano will probably resign. 240
329. C.S.H. says both will believe Harding has double
crossed them. 240
McAdoo says:Delano can't have it. 240
331.
Narrow and peevish. 240
332.
Wished he would. resign. 240
Warbur# can not be Governor. 240
334:
Would injure administration to put a German
at head of our banking system. 240
335.
Both of them narrow :ind not 4orthy of Governorship
240
336.
Says, were it not for his marriage, the
composition of the Board would be
different. 240
337.
C.S.H. says not to consider him at all. 240
338. C.S.H. says better to designate Delano to avoid
disruption of Board prior to election. 240
339. C.S.H. says the members have "struck" and can injure
administration if it does not yild.
e
240
C.S.H. tells :4cAdoo the plans of the recalcitrants:
340.
1. To win the Governorship. 241
3341.
2. To move out of Treasury building. 241
42.
3. To fight the administration and any future
administration. 241
343.
4. To abolish the Comptrcaler. 241
5. To bring: about a central bank. 241
344.
345. McAdoo says he knows this and is much embarrassed as
to what to do. 241
346. Says President and he want to keep C.S.H. as Governor. 241
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Federal Reserve Bank of St. Louis
131.
McAdoo, W. G. (Cont.)
347. C..H. advises AcAdoo to aLlend Act and provide for a
Board of Governors, Who could choose their
active executive officer. 241
348. McAdoo says Congress would not agree to this. 241
349. McAdoo tells Williams:
President said today, - July 12, 1916, - he will
reappoint C.S.H. 243
Warburg crazy to be Governor. 243
350.
President will make no decision as to rotation
351.
for the present. 243
352,
Warburg will be designated only over McAdoo's
protest. 243
353. 'Tvening Star says AcAdoo is not tc take C.S.H. place as
Governor. 243
354. McAdoo and C.S.H. line together and McAdoo says C.O.H.
nomination will go in quickly, July 18, 1916. 243
355. Delano tells C.S.H., McAdoo has talked with Harding as
to rotation. 246
356. AcAdoo feels and Harding agrees that the Smith bill
authorizing cfftting down of districts should not
be reported an by Board at present time. 247
357. Will vote for Wisconsin banks petition if C.S.H. and
Harding favor it. 247
358. says pressure of business has prevented President
from sending C.S.H. name to senate, July 251 1916 248
359. Will speak to President about it. 248
3591. President has about made up his mind to maks no change in
designation of Governor, At any rate for the
present. 248
360. Meeting of Board in office of McAdoo; vote to reopen
Wisconsin petition. 253
361. 4cAdoo says question must be decided on rketits, - even a
suspicion of politics would cause a reaction in
his mind. 253
362. Had agreed to vote for petition an Tlardir.-Is that all
felt petition should be granted. 253.
363. McAdoo angry At Delano and Warburg for their action on
Wisconsin banks petition. 256
364. Says Delano and Warburg are aaying and threatening dire
and awful things unless rotation is settled on. 256
365. McAdoo says, however, they have male no threats to him,that he will not be bulldozed. Realizes, however,
that at this time they can do auch to injure
Federal Reserve aystem. 256
366. C..H. suggests that he would be willing, if President
wished., to be decimated only until Jan. 1, 1917.
256
367. McAdoo favored this. 256
368. McAdoo has conference with Burleson as to check collections
through postmasters. 260
369. Conference with Glass et als aato same. 262
370. McAdoo obtained from C.S.H. a copy of Delano's letter to
President as to rotation. 264
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McAdoo, W. G. (Cont.)
371. McAdoo says will push C.S.H. confirmatirm. 266
372. Senator Pomerene tells McAdoo C.f:%H. will surely be
confirmed as noon as an executive session was
held. 267
373. McAdoo telephones C.S.H., - 7 p.m. Aug. 3,1916, that
Senate had just confirmed him. 268
374. Asks C.S.H. to give him copy of his old designation
as Governor. 268
375. says rotation not yet settled. 268
376. Asks C.S.H. to tell Assistant secretary Philipps to have
comliasion male out. 268
377. Tells C.S.H. President has reluctantly decided to have
yearly rotation in office of Governor. 269
378.
That Delancrand Warburg had told friends of
administration they should resign if this
not done. 269
379.
President appreciates that Delano's letter was a
polite species of blackmail. 269
380.
At any other time, President would have no
difficulty in treating it as it warranted. 269
381.
If they should resign before election it might
embarrass the aiministration, - which
vas clearly their inent. 269
382.
Impossible to designate Warburg. 269
383.
To make Delano Covernor would emphasize the
passing over of Warburg. 269
MeAdoo said:384.
Delano absolutely unfitted. 270
Narrow, bigoted and a reactionary. 270
385.
Supposed he was honest, but is thick and stupid. 270
386.
Had given htm every opportunity to be cordial
but he had been cold and aloof. 270
387.
An undeveloped boy, rather than a man. 270
388.
Harding better fitted than the others, but
he recognizes his limitations. 270
389.
Allier absolutely out of the que,
7.tion for any
position. 270
390.
Asks C.S.F. for hta oninion. 270
C.S.H. says..
391.
Delano should be designated looking solely to
hammy. 270
392.
Admits this would emphasize 2as,ing.over of
Warburg. 270
393.
Thinks Delano will resign if not made Governor
and drop-pad from Vice Governor. 270
394. McAdoo says:Does not OATS whether Delano resigns. 270
395. He has forced the issue and the President has yieldel 270
396.
Would be ridiculous if he resigned bacaute not
made Governor. 270
397. C.S.H. fears Delano's resignation will be of more
injury than Warburg's. 270
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Federal Reserve Bank of St. Louis
133.
McAdoo, W. G. (Cont.)
398. McAdoo says No, - Warburg's resignation w11 hurt us
with the bankers. 270
399.
Says is sure Warburg will accept position of
Vice Governor. 271
400. C.S.H. says if H-rding and Warburg were designated they
would all feel that Harding had double crossed them
and this would break up future combinations between
them. 271
401. McAdoo says has grave doubts au to Surdingss loyalty
to Federal Reserve system. 271
402. Says he will tell Harding that President relies on his
loyalty and has designated him because cf his fine
work on clearings. 271
403. Says designation will be for one year only, And this
will °sive President a hold on the situation. 271
404. Says he fully appreciates how insincere these members
and their reactionary feelings. 271
405. Said they had "struck" at a critical time, and President
and he regretfully believed it expedient to yield,
but to yield as little as possible. 271, 272.
406. C.S.H. tells AcAdoo, it is advisable to yield; that if
Pre ident, he would. probably yield; that he was
only too glad to render a service to Prezident and
Federal Reerve system by eliminating himself. '372
407. McAdoo expresses deep gratitude of President and himself
to C.S.H. for broad way in which he looked on the
situation. 272
408. sail, over and over, both wished to designate C.S.H.
but that it seemed better to yield. 272
409. Explains sheepishly to Congressman 1agle that C.S.H.
has been reappointed but not redesignated as Governor
272, 273.
410. McAdoo sends C.S.H. the designations for Governor and
Vice Governor and asks hi a to deliver them. 277, 278
411. McAdoo writes C.S.H. congratulatory line on his
successful work as Governor and upon his reappointment
278, 289.
412. C.S.H. wires ilcAdoo fro:a N. Y. telling him to stiffen
Harding as he seems weak and worried. 280
413. MIAdoo says President and he are ready for Warburg,
Whatever he may do. 283
414. Says both satisfied Delano et als were determined to
rule or ruin. 283
415. Their resignations how would make them ridiculous. 283
416. Tells C.S.H. that only he and the President could
induce Glass to favor issue of Federal Reserve notes
against gold, but that they were not sure enough
of merit of proposition to try. 287
417. C.S.H. tells McAdoo, President and he made a great mistake
in not trying to persuade Glass. 287
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134.
McAdoo, W. G. (Cott.)
418. McAdoo,C..H. and Harding appointed a cart.ittee to
consult State Department as to neutrality of
Bank of England agreement. 297
419. AcAdoo asks for copy of vote of Board on Bank of 7na1and
agreement. 297
420. Delano ap?rinted an coittee in place of McAdoo. 299
Sea - Coallodity paper
Discount rates
Federal Reserve banks; foreign branches
Federal Reserve Board; cutting down
Hamlin, C. S.
Riggs Baik
McAdoo, Mrs. William G.
Tells C.S.H. her father was influenced by political
considerations in coming out for woman olaffre,ge;
that she. had often in the past heard him argue
against it. Jan. 13, 1916. 168
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McCoy, Judge
See - Riggs Bank
McDougal, Governer
See - Bills of exchange
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McClallan
See - Federal Re Imre Bank, Chicago
McReynolds, Justice
Says he and Judge Day want U.S. to go to war with Germany
because of sinking of Lusitania. May 9, 191:3. 12
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Meredith.
Marsh, Treasurer of N. Dem. Conmittee has a candidate for
Class C Director, Federal Reserve Bark of ChicAgo in
place of. 245
Mexico
Lansing wanted recognition of Carranza deferred but it could
not be done. 176
Wilson talks with C.S.H. as to situati:n in. 216
qee - Wilson
Miller, Dr. A. C.
Index to headings.
(Refers to number.)
Aceept,Ince regulations. 84
Aeceptances. 1, 3, 4, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 20,
22, 23, 24, 25, 33, 38, 41, 42, 43, 44, 48, 49
Amendments. 169
Lanai report. 164, 165, 169
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Federal Reserve Bank of St. Louis
135.
Miller, Dr. A. C. (Colt.)
Bank of Trigland agreement. 240
Bankers statemont,;. 98
Bolling. 171i
See - Hardy
Broderick report. 89, 90, 91
Brown Brothers acceptarce credit
See - Acceptances
Burke, U.
Treavurer. 118, 123, 1231-1, 124, 125
Capital, Reduction of
94
Central Bank. 170
Centralization of credit. 174
Change of view;. 38, 41 1 42, 43, 44, 45, 46
Clearirg system. 134, 171, 172$ 173
Committees of Board. 100
Commodity paper. 47
Congressional investigation. 35
Connecticut banks petition. 171, 172, 173, 174
Conspir_lcy. 139
Consumers notes.
1igibtiity. 5
Cooperation between Federal Rezerve banks. 217
Cotton, J. P. 83, 175
Credit centralization. 174
Decker 231
Delano 83, 92, 111, 132, 218
Discount 5
Discount rates. 164, 202, 203, 204
Eligibility for redUcount 5, 7
See - Acceptance
Elliott, H. W. 175, 176, 177, 178, 179, 180, 181,
182, 183, 184, 185, 186
Mmergency banks. 95, 165
Executive interference. 141
Fairfield county
See - Conn. banks
Federal Re4erva Bank, Atlanta
89
Federal Res3rve Bank, Bo.;ton. 85, 122
Federal Reserve Bark, Kansas City. 202, 203, 204, 205, 206,207
Federal Reserve Bank, Ainneapoliz 86, 88, 93, 118, 231
See - Rich
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Wisconsin petition
Federal Re.erve -Bank, Nev York 170, 174
Federal Reserve banks. 94, 95, 165, 217
Federal Re_erve banks. Foreign agencies 83
Federal Reserve Board 34$ 36, 51, 82, 215, 216, 224
Federal Reierve Board, cutting down of districts
85, 86, 88, 89, 91, 92, 93, 96, 97, 99, 101, 102,
103, 104, 105, 106, 107, 106, 109, 110, 113, 114,
115, 116, 117, 118, 1201 121, 126A, 127, 128, 129,
130, 131, 132, 133, 137, 139, 140, 1421 143, 144,
1451 146, 147, 219.
Federal Re.ierve system 170, 234
Federal Re,erve notes. 211, 212, 213.
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Miller, Dr: A. C. (Cont.)
Index (Cont.)
Fleming. 163
Foreign Govnrnments. 6, 9$ 10.
France. 46
Germany. 45
Glass, Congressman. 148, 149, 157
Glass-Owen Act. 138, 148, 149, 150
Government deposits in Federal Reserve banks
53, 54, 55
Governor. 220, 221
Hamlin, C. S.
37, 56, 57, 58, 59, 60, 67, 68, 69, 70, 71,
72, 73, 74, 75, 761 78, 79, 80, 81, 84, 88,
90, 93, 125, 126i, 127, 129, 131, 133, 137,
151, 152, 153, 154, 155, 156, 157, 158, 159,
160, 161, 162, 163, 168, 185, 225, 227, 232,
233, 234, 238, 241, 300.
Harding, Gov.
12, 39, 55, 91, 180, 181, 182,1q, 204, 205, 206
Hardy, Federal Reserve Agent
187, 188, 1891 190, 191, 192, 193, 194, 195, 16,
197, 198, 199, 200, 201
Houston, sec. 112, 126
Laughlin, J. L. 138
Liquidity. 8, 84, 25
McAdoo, W. G. 18, 19, 21, 22, 23, 26, 28, 29, 30, 31,
32, 34, 52, 53, 118, 123, 123i, 124, 125,
130, 146, 147k 149, 161, 201, 220, 221
See - Resignation; McAdoo
Mosher 226, 228, 236
Munition acceptances. 11, 38, 41, 42, 43, 44
sae - 4cleptancss
Nelson, Senator. 238
New York bankers. 138
New York meeting. Ram
See - Ac-Antances
Row, NAN York meeting
Notes, Consumers. 5
Notes, Purchase in open market. 166, 167, 168
Open market purchasers, Notes 166, 167, 168
Open market regulations. 135, 136, 137
Omen, 3anator. 126
Panic. 12
Politics. 158, 159
Pro Greman. 19, 39
Purchase of notes in open market. 166, 167, 168
Quorum, Breaking of. 17, 18
Ramsey, Federal Reserve Agent, Dallas. 162
Regulation J. 48, 49.
Regulation R. 28
Reserve Bank Organization Comnittel. 146
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Miller, Dr. A. O. (Cont.)
Index (Cont.)
Resignaticn. 35, 50, 611 62, 151, 152, 153
Resignation; sugtfested by McAdoo
56, 57, 58, 59, 60, 63, 64, 65, 66, 67, 68, 69,
70, 71, 72, 73, 74, 75, 761 78, 79, 80, 81, 134,
155, 156, 157, 158, 159, 160
Rich, Federal Reserve Agent, Minneapolis
86, 87, 88, 93, 222, 223, 224, 225, 226, 227, 228,
229, 230, 232, 234, 235, 236, 241, 300.
Riggs Bank. 2
Rcw, Nay York meeting.
20, 26, 27, .28, 29, 30, 31, 32, 33, 34, 35, 38
Russian Ambassador drafts. 7
Section 13, Federal Reaurva Act
See - Open market purchases
Section 16, Federal Re3rve Act
See - Federal Reserve notes
Status of Board. 36
Strong, Gov. 13, 14, 15, 16, 23.
Subtreasury meeting.
533 - Row, New York meeting.
Surrender to Wall Street. 51
Vacation. Three months. 208, 209.
Votes.
47, 48, 113, 114, 115, 168, 172, 173, 186,
207, 237, 240
Wall Street, Surrender to. 51
Warburg
83, 84, 214
Williams, Conctroller 175, 240
Willis, H. P. 27, 83, 150
Wilson, President
75, 82, 141
Wisconsin barks petition. 222, 237, 238
See - Rich
Wold, Gov. 238, 239
See - Federal Re3erve Bank, Minneapolis
1. Votes with C.'.H. that Federal Reserve banks
can not discount acleptances, under Section 13,
based an movement of goods between two foreign
countries. 7
2. Was present when C.S.H. told Williams he had gretl
y
strengthened his case against Riggs Bank by
waiving certain penalties. 15
3. Objects to discount of munition acceptances eithe
r
by Federal Reserve banks or by member banks. 28
4. Sail above not permissible under existing
regulations. 29
5. Takes ground that the ultimate consumer's note
is
not eligible for rediso.mnt. 29
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Miller, Dr. A. C. (Cont.)
6. National banks can not accept drafts where the Eooth
are ultimately to be consumed by a foreign nation. 29
7. C.7).H. distinguishes caul of trafts by Russian
Ambassador which loard held could not be discounted
by Federal Reserve bari&s, as he vas to be given a
!redit the proceeds of which could be used for
any purpose. 29
8. Clatals Brown Brothero acceptances are not livid, but
it was pointed out that they werl all drawn by French
banks and were absolutely liquid. 29
9. Claims that they are really loanu to a foreign Government,
and that the agreement for renewal turned them into
long term paper. 30
10. Claims that they might be repudiated. 30
11. Says that all munition exports should be paid for in cash. 30
12. Ha!-ding says if Miller's Vi3A% were male public a financial
panic might follow. 30
13. Vehemently fights proposed letter to Gov. Strong. 31, 32.
14. (3ays McAdoo aril Warburg should be called back to sonaider it
32
15. Objects to sending tentative draft to Gov. Strong. 32
16. Agrees to letter to Gov. Strong stating the exact legal
que:Aions. 32
17. Intimates to Harding he viii break a vormn by st4ing away
from meetings. 32
181 !JcAdoo angry with Miller. Says he wishes he would try to
break a vorum by 2taying away frac meetings, implying he knew just what to do in such dontingency. 32
19. McAdoo says he knows just what is behind Miller's
attitude. (meaning pro German). 33
20. Refuses to attend meeting as Subtreasury, m. T. 34
21. Reads memoranimuSFederal Re',erve banks should not discount munition
acceptances. 37
22.
Admitted we can not interfere with member banks. 37
23.
Finally votes for letter to Gov. Strong. 37
24. Claims that Brown Brothers acceptance are, not liquid.39
25. Warburg and all the others say they are liquid. 39
26. McAdoo call; Miller to account for refusing to attend at
ubtreawury meetinj. 45
27. Miller says tvillis was oposed to meeting at Subtrlasury.46
28. Claims McAdoo had no right to chinge cll for meeting. 47
29. Reads memorandum: No discourtesy to McAdoo intended. 47
30.
Hal McAdoo been at meeting, all would have attended. 47
31.
In absence of Mr. McAdoo, members had. right to
suit their own convenience. 47
32.
Did not claim McAdoo had nc right to change case. 47
33. Finally withdraws memorandum. 47
34. says authority of "Board must be defined n view of Mccloo
letter calling them to account. 48
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Federal Reserve Bank of St. Louis
139.
Miller, Dr. A. O. (ont.)
35. Harding intimates he, Miller and Warturg may reeign, 4,nd
possibly ask Congressional action as to statue. 49
36. Says members not giving one another mutlos4.1 trust and
confidence, and rules must be adopted defining power
and authority of Board. 50
C.S.H.
37.
writes McAdoo stating views of Miller et als. 51
38. Harding says Miller has chanced his views as to discount
of munition acceptances. hl
39. Harding says he thinks it wise to keep in with Miller
and Warburg to head off any pro German agreement
they might make together. 51
40. Miller has sudden transforrlaticn. 52
41. Miller tells C.S.H. - Aug. 25, 1915.
Has no doubt and never has doubted propriety of
our sending abroad war munitions. 52
42.
Has nolo-:bt but that war munition acceptances
are eligible for discount by Federal Reserve
banks. 52
43. Miller's position absolutely contra to his -J.ttitiode at
New York meeting. 52
44. Absolutely contrary to his position as shown in C.F.H.
telegram to Delano vlich was shown to and approved
by f.iller before sending. 52
45. Miller attacks militaristic clan in Germany; relates
experiences of discourtesy from Germany officers;
attacks the Junkers; said that the industrial
pl-t3nates and militaristic Ilan hat joined hands. 52
46. says his sympathieh are more with France than with Germany
52
47. Votes against fizirg of commodity rata condition by
Board instead of by Federal Reverve banks. 58
48. Voted ag-linst amenling Regulation J to permit seller or
purchaser to draw. 59
49. Miller says he originally drew Regulttion J. 59
50. Says he has about reNched end of his usefullness on
3oard. 59
51. says Federal Reserve Board has surrendered to Wall Street 59
52. McAdoo as2cs Ailler if he wishes to impute any misconduct
to any of his associates and he somewhat grudgingly
answered No. 59
53. Angry because fIcAdoo and. Harding slightly ahanged a press
statasent prepared by him as to Government deposits
in Federal Reerve banks. 59
54. Threatens to give out a public statement disapproving
Government deposits. 60
55. In lieu thereof, he .vrites ia-iing a letter. 60
56. McAdoo asks
how Board would feel if "president
called for 'Mier's rezignation, for the best interests
of the country. Sept. 7, 1915. 63
57. 0..U. objects. 60
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Federal Reserve Bank of St. Louis
140.
Miller, Dr. A. C. (Cont.)
C. S. H. Says: 58. Miller has no pradstical sense. 60
Has no practical experierce. 60
59. Fairly good theoretical knowlediLe of politicid cony. 60
60. Expedient to have one such man on loard. 60
61. 0.(.H. thinks Miller is getting ready to resign: - his
wife is ill, and liller hates Washington in cunner 60
62. C.S.H. thinks 'Tiller will try to go out in a blaze of
glory and is sattin: the scenery. 60
63. McAdooagain, - Sept. 15, 1915, asks C.S.H. what he would
think of President callinc for
resignation 63
64. McAdoo 3ays: Has lost all confidence in hill. 63
65.
An ultra conservative. 63
66.
Has sympathy only for banks, - none for the people 63
67. C.S.H. objects. 63
C.S.H. says:
68.
'Tiller has no practical knowledge of affairs. 63
69.
Distrusts his own o)inions. 63
70.
Inclined to accept opinions of bankers. 63
71.
Does less work than any other member. 63
72.
Much of his apllarent Obstinacy due to lack of
careful study. 63
73.
Does not deny hia vanity and conceit. 63
74.
Wise to have awtheorist on Board. 63
75.
McAdoo says President very much distarbed over Ansi.,
felt that he added nothing to the loard and that ha
Was considering calling for his resignation.
Sept. 22, 1915. 66
76. C.S.H. objects; says it will be said ths was done to
control Board. 66
77. ;6:Ado° says :4111er tas sent a nasty letter to Harding. 66
78. C.S.H. says most unwise to crill for Aill'irts resignation;
the other members would line up with him. 66
79, laAdoo said, - :liner would be out of the Board. 66
80. 0. .H, fears other members would resign. 66
81. !IcAloc said, - "Let them resign1"
66
82. Miller says lountry is stirred up at attempt to influence
the Board, - referring to ?resident's letter on
Fsieral Reserve bank agencies in South America. 75
83. Miller present at a conference ')etween Warburg, Delano,
Harding and J. D. Cotton at which Warburg read a
bitter attack on AdAdoo with relation to Federal
Reserve bank agencies in South America. Willis
was present and objected. 77
84. Warburg lets Millar off very lightly in his article on
acceptance regulaticrs, in which he attcks C.S.H.
and Williams,athough Miller has been like a weather
vane in the matter. 79
85. Miller otje7ts to transfer of Federal Reserve Bark of Boston
to Federal Reserve Bank of New York. 85
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Federal Reserve Bank of St. Louis
141.
Miller, Dr. A. C. (Cont.)
86. Miller says mutter of Rich's power for publicity in
Minn. district may involve abolishing inn. Ban... 87
87. Agrees Rioh should have a hearing before full Board. 87
88.
thinks Miller will use the Rich controversy as a
pretext to abolish Federal Reserve Bank of Ainn. 87
89. Miller says Broderick' report on Atlanta Bark shows
irregularities warranting abolishing of Atlanta Bank 87
90. C.S.H. writes Miller asking what he relied on in
Broderick' report to warrant above conclusion. 88
91. 'larding, at meeting, passed C.S.H. a paper saying, "You
have stumped Miller by your letter." 88
92. Delano %aid of Ailler, - "The fool to blurt this out
while it was still pending in our caznitteet" 68
93. C.S.H. writes Miller another latter asking what grounds
he had for saying that the Rich issue inight involve
abolishing the Minn. bank. 89
94. Op3oses paying back capital of Federal Reserve banks. 90
95. says Federal Re-serve banks are purely emergency banks. 90
96. Miller (7ot in coittee) has conference with Redistricting
Committee on cuttindown. 92
97. C.S.H. thinks it extraordinary for counitt3) to consult
Miller, - thus scurIng a majority of Board. 92
98. Objects to ainending Regulation R so that private bankers
can report their condition to Federal Reserve Ant
and Governor, the report nct to be shown to directors. 96
99. Meets as one of executive committee with C.S.H. and
Delano tc ar:ange lonlittees on operation of Federal
Reserve banks; no action taken as to chaw.ing
Subcommittees. 97
100. Williams gives C.S.H. a draft of new Subcommittees. C.S.H.
dropped from Boston While liller with Harding take
6 banks. 97
101. Miller says certain members are trying to delay consideration
of cutting down of districts by obstructing it at
every stage. 1101
102. Said, it made him inclined to vote for committee report
whether he agreed with t in every detail or not. 101
103. Admits C.S.H. and Williams entitled to as much tics for
considering it as has -Dean afforded him by committee. 101
104. Denies that he has attended any :uaetings of the collaittee. 101
106. Finally Admits he had discussed the matter with the
cocAttee frequently. 101
106. Admits he has helped cornittee materially in framing its
report. 101
107. Admits he wrote a material part of report. 101
108. Miller admits he has discussed specific plans with the
comattee and hal opposed ;;Ivers1 slicgeEtions. 102, 103
109. Says that while he hal discussed matter with the
camittea and hal helped write their report, it was
always with an "open mind". 103
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Federal Reserve Bank of St. Louis
143.
Miller, Dr. A. C. (Cont.)
110. Said he was absolutely free to vote as he
pleased upon the request of the committee '
'or
instructions or upcn any specific plan later
presented. 103
111. Delano told Board he kailw he had a majority of Board
in favor of instructions to report a specific plan
of cutting down. (meaning Millar) 103
112. Miller makes no reply when Williams asks if any member
has talked with Sec. Houston. 104, 106.
113. Votes to lay C.S.H. resolution on table. 104
114. Moved to reconsider in order that co-l'itee might
give Cotton's opinion to C.S.H. 105
115. Again votes to tAble C..H. resolution. 105
116. Says attitude of 0..H. and Williams makes hiL want
to vote the "whole hog" i.e. for all the
committee. -iranted, whether he pn.sonally agrees
with it or not. 106
117. Says he wants to do this lamed quick! 106
118. Miller says IcAdoc inspired nurkels attack on F.R.
Bank of Minn. 106
119. Says about ready to move that whole report be given
to the public. 107
120.
points out that sta:ement of iinruittee of
want of confidence in, Federal Reserve system
waald disturb the country and p3rhaps cause a
financial panic. 107
121. Hilarious laughter from Miller et als. 107
122. Willis says Miller objected to abolishing the
Federal Reserve Bank of Boston. 109
123. McAdoo asks Miller's authority for his 2tatement
about Burke. 109
laai Miller tells IcAdoo,
not quote him quite
correctly about Burke and that he should have
been more careful. 111
124. Miller said he did not name McAdoo but merely said
asamber of Board inspired Burke and that it was
Delano who nAtel McAdoo. 111
125. Says if C.S.H. memory is as faulty on other matters
as on this, it was not much good. 111
126. Miller moves to refer to comthttee the matter of
sending co2ies of the report to sec. Houston
and Senator Owen. 112
126i. Says he is satisfied, on reading the re7ort, that it
conned statements which might :Ave a false
ipreston, and that C.S.H. was justified, to a
certain extent in his criticfsms. 112
127. Says he agrees with position taken by C..H. at
meeting that it Ass not possible to vote for the
committee re2ort without ratifying its argments
:and conclusiLna based on ficts and experiences
not reported in detail. 112
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Federal Reserve Bank of St. Louis
143.
Miller, Dr. A. C. (Cont.)
128. Willis and Elliott sLy that killer has conaulted
with Cotton and he i8 weakening. 115
129. 11.11er charges C.F.H. with taking orders from
McAdoo, in writing to President for opiniun of
Attorney General. 119
130. McAdoo informs Miller that the Boari proceedings are
subject to general rules of p.Irliamentary law
and that no mealbera could insult or impute
improper motive:: to another. 120
131. C..H. remind
her that at the meeting of Nov.15
he said there las no need of any debate, that we
knew all about it now. 122
132. Miller admits Delano tiaid he had four votes but
denies that he hal pledge! his vote. 123
133. u.S.H. is satisfied that Miller has told comnittee
he should not vote with them. 126
134. Miller says Federal Reaarve agents insist on a clear
ruling as to mardatory powers of Board in
clearings. 128
135. Mo7ei .Appointment of ccmmittee to report a complete
draft of open market regulations. 128
136. Miller and Harding 4pointed. 128
137. C.5.H. thinks Millar is scared over his action as to
cutting lain anl nom wants to put on record some
radical leanings. 128
138. Laughlin says Millsr had a co-4 of the Federl
Reserve Act draft *hen it was Wore the senate,
ani was conferring with New York bankers to
emasculate it. 129
139. C.S.-i. believe
illar at ala were in a conapir cy to
ja,71 through cutting down of iiatricta. 132
140. Favors a short report of minutes in regard to
cutting damn. 135
141. Miller complains of executive interference, - referring,
as ha ex1)res7;1y stated, to PreAdent Wilson. 135
142. Millar makes a long statement to Board: Admits he wrote the Whole reT)ort of the eommittee.136
143. Hitii consultel with comlittee as to wcelific 1)1ana. 136
144. Abaolutely inconsistent with his statements t meeting
of Nov. 15. 136
145. Tork of Organization Committee done badly. 136
146. Secretary McAdoo very foolish not to cooperate, and
correct its errors from within. 136
147. Otherwise these errors would surely be corrected from
without, and this might 41.1an 3 reduction to 3 or 4
districts. 136
148. Glass much disturbed at learning that Miller had a
copy of draft of Federal Reserve Act. 140
149. AcAloo tells Glass he gave a colpy to Miler for
suggestions but that they were of no value. 140
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Federal Reserve Bank of St. Louis
144. •
Miller, Dr. A. C. (Cont.).
150. Willis says he hlard from other sources that Millar
was bitterly op oiled to Federal Reserve Act
draft. 140
151. Williams, Dec. 2, 1915, says Millar should be aeked
to resign. 141
152. Sail Millar was building a house and that this mil's
the time to act. 141
153. C.S.H. objsIts. 141
154. C.S.H. telle AcAdcc, Miller's resignation should. not
be called for. 141
155. Said Delano might resign if 'Allerle resignation
asked for. 141
156. McAdoo util he did not care; that the country would
recognise that adminietration will protect the
Federal Re:3rve Act and conserve to the people
its benefite. 141
157. 4aAloo, Dec. 2, 1915, suggests that Glass be appointed
in Miller's place, and eays whole country would
applaud. 141
158. C.3.H. eays he admires Glass but such action would
be political aulcide and would project a
political fight which would disturb the country
and rob administration of much of the credit
for the Federal Re7;erve Act, - now conceded
even by Republicans. 141
159. C.S.H. says would -03 playing into the hands of the
Republican party. 141
160. McAdoo said would think this over but C..H. feels
he made little ivpression an 'nim. 141
161. C.S.I. believes Miller et ale dislike him becauss
they can not control him, and tney think they
can control McAdoo. 150
162. Miller and. C.111. holdup Federal Re:;erve Agent Ramsey
of Dallas because of charges of Oswald Villard. 167
163. Miller and C.G.H. vote against designation of Fleming
as Deputy Federal Reserve Agent at Kansas City
170
164. Miller objects to stating in annual report what Board
has dors to reduce discount rates. 174
165. C.S.H. clatia report should deny that Federal Reerve
banks are purely emergency bans. Referred to
Miller Mho was drafting the report. 174
166. Miller favors an amenluent to Section 13 giving to
Fediral Reserve banke right to purchase in ven
market notes secured by warehouse receipts
covering agricultural staples. 175
167. All. agreed Aillerts. amendment was too narrow, and
if passed at all, should be broadened. 175
168. 11.113r votes against laying C.S.H. emfeniment, - notes
with 2 indorsements, - on table. 175
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Federal Reserve Bank of St. Louis
145.
Miller, Dr. A. C. (Cont.)
169. Miller suggests statement in annual report that Board
makes no reccraseniation as to certain other
amendments as it an not agree. 182
170. Miller says whole Fed-9ra1 Reserve system depends on
N. Y. which was practically a central bank. 184
171. Miller moves to postpone onn. banks petition until
clearing system is in operation. 194, 196.
171i. Says will vote against Bolling for Federal Ressrve Agent,
Richmond. 195
172. Votes to postpone as above. 196
173. Votes to transfer Fairfield County and to postpone rest
until cle.iring system established. 197
174. Says if Harding _Jives his report on Conn. banks petition
to the press, he will say that centralization of
credit should not be carried further by increasing
the power of N.Y. except on cleLtrest proof of its
absolute necessity. 197
175. Moves resoluticn that Board will pay Williams' salary
claim because advised by Elliott and Cotton that it
was a valid legal claim. 202
176. Miller indignant at motion to increase Elliott's
salary, for actiw for Board and for CoeptrolLer. 203
171. Miller says it is a bargain and intimates it is a
corrupt bargain. 203
will file a memorandum showing 12::? the Whole matter. 203
'Says
178.
203
was a "fudge".
it
Says
179.
203
Miller.
at
indignant
Harding
180.
Ailler has imputed bad
ti-ce
the
first
not
this
Says
181.
faith to his assosiates. 203
That ha shculd not rest silent under such an
182.
203
intimation.
Miller then in effect apologizect. 203
183.
184. Williams asks Miller .sevit he meant by "Fudge". 203
185. C.S.H. says Counsel should be asked to define it. 203
186. Miller votes against increasing Elliott's -ia1ary. 204
187. Says he shall vote for Hardy ae Fedeahl Reserve Agent
at Richmond. 206
188. Acmes to table Hardy appointment until Delano and Harding
return from west. 209
189. Says is not satisfied that Hardy is the best man. 209
190. Especially in view of his refusal to withdraN. 209
191. Says he wants move time to look into his qualifications 210
192. Votes to table. 210
193. .1iller reiterates above views. 21C
194. Miller refuees to vote when C.S.H. puts main question.210
195. C.c.;.H. says as 3 did not vote he is in doubt as to
whether Hardy was elected. 210
196. Miller then voted Aye and C.S.H. declared Hardy elected. 211
197. Miller's sudden flopping over shows his insincerity. 211
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Federal Reserve Bank of St. Louis
146.
Miller, Dr. A. C. (Cont.)
198. Whole matter a device of :15.11er et als. to avoid
voting on Bolling. 212
199. Miller triad to be sunning but was forced to show
his hand. 212
200. C.S.H. disgusted at Miller's duplicity. 212
201. McAdoo very indignant at Miller et als. Felt that
sharp practides hal been resorted to. 213
202. Miller aposes petition of Federal Re..-;iervs Sank of
Kansas City to in: rease discount rates. 214
203. Sail he believed all rates should be increased at
all Federal Reserve banks but did not like the
reasons given by Kansas City. 215
204. Harding attacks Miller. 213
205. Has noted his suspicion and prejudice ags.inst banks. 215
206. Harding says if Miller believed rates shculd be
advanced, he should so vote whether not he
apsroved of reasons given. 215
207. Miller finally agreed to vote fsvorably. 215
208. Miller announces that he is to leave on a 3 slonths
vacation. lay 31, 2916.
229
209. Never asked consent of Board. 239
210. liller agposes amendments to sac. 15. 229
Miller says:
211.
Favors issue of notes against gold or against
part gold and part paper'. 229
212.
Thinks present indirect method should be
validated. 229
213.
Objects to making gold with the Feleral Reserve Agent
count as reserve. 222
214. Warburg asks if Miller will not agree to this as an
emergency proposition, requiring 5 votes. 230
215. Miller says No; that he has no confidence in Federal
Reli3r%8 Board as st present constitusedl 230
216. sail unwise to give Board such powIr. 230
217. Allier apposes cooperation between Federal Reserve banks 230
218. Delano attacks Millar; says any man with brains can see
the difference between things which are different,
etc. 230
219. Miller wires Delano ha is absolutely in favor of Smith
till authorizing Board to cut down Federal Reserve
districts. 269
220. AaAloo says Miller is absolutely out of the 1ue tion for
Governor or any position. 270
221. McAdoo says Miller et als are insincere and reactionaries;
that they had "struck" t a critical time; that
vary regretfully he and President thought it
expedient to yield but a3 little as possible.
271, 272.
222. filer says Rich wrote hiis complaining of interference
of Wisconsin Congressmen in Wiscorsin bank petition
but lid not mention C.S.H. 291
223. Iiller toll Rich in Minn: Letter deserves and will do-lbtless receive
censure of Board. 291
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Federal Reserve Bank of St. Louis
147.
Miller, Dr. A. C. (Cont.)
Miller told Rich in Minn. (Cont.)
224.
A charge that Board is influenced by political
considerations. 291
225. Rich tells Allier his letter o ;liner is sar.le as that
to C.S.H. 291
226. nller said it was different and Mol'her confirmed this.
291, 292.
227. Miller says Rich acted as if he had never seen the
292
letter to
228. Ailler says he believes Mosher wrote both letters. 292
229. Rich told Miller he merely wanted to inform loard of
gossip and ramors which he did not believe in. 292
230. Allier says if true his method of exprezsion was vary
faulty. 292
231. Millar says evidently Decker and the Min. bank were
trying to scare the Board. 292
232. Miller tells Rich - on his reque_t for permission to
rithdraw letter, - that he vill agree if C.S.H.
will. 292
233. C.S.H. says if not withdrawn he will sand a copy to
Wisconsin Congressmen and Senators and let them
settle with Rich. 292, 293.
234. Miller bags C.S.H. not to do this as it would result in
Rich's resignation or rIcoval and -vs:J.71d injur
the Federal Reserve sy7,t3m. 293
235. Miller says he is disgusted with Rich. 293
236. Says Rich depends on Mosher even to do his thinking for
him. 293
237. Millar says he will vote against Wisconsin petition as
transfer would injure Miry:. 293
238. C.S.H. explains to Miller that Gov. Wtld tried to
influence Sen. Nelson to protest but that he
declined. 203
239. Miller said Told would say he did this to counteract work
done by Wisconsin delegation. 293
240. Votes with Williams in favor of postponing Bank of
ngland agrecnent. 297
241. Rich writes apologetic letter to C.S.H.and Miller said
would write Rich he :cull withdra his letter. 300
242. Jailer strongly urges C.S.H. to aGres to this and he
finally consented. 300
243. Miller says unless Rich withdraws his letter the Board
would feel obliged to censure ht:.. 300
credits
AzIeptance
S)3
Federal Reserve Board; cutting down
statis
Votes
Miller, Gov.
See - Federal Reserve,Bank, Kansa., City
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
148.
111.1-aukee banks
Bee - Federal Ref-,ervti Bank, :inn.
Moore, John Bassett
See - an Lr.13rican vinancial Conference
3.
Morgan, J.'
Furnishes a private car for Fed3ral Advisory f7ancil to rjo
from Nev York to Washington. 66
Calla on C.2.H. at Mattapoisatt. 268
Takes C.S.H. and H.7.1-1. on launch among yachts. 268
331 - Delano
Morse, R. M. 198
See - Brandeis
!!otilier. 291, 292.
See - Federal Rewerve lank, Minn.
Rich, Federal Rleerve Agent
Munitions
F2ee - Acceptance cr3lit.,
Mutual _avings banks
See - Savings banks
-N-
National Bank examiners
see - Federal Reserve Agent; Daputy
Btarek
National Bank Examiners reportli. 162
See - Willias
National banks
Twenty-five of :ost powerful, in country are planning to
withdraw from Federal Reserve syziter.:. 114
deposita
Government
Sea McAdoo
National DeL.ocraptic Con ittee
Gov. Wells directed to resign from.
See National Re:;erve Associ-Ltion bill. 162
See - Laughlin
Willis
165
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Federal Reserve Bank of St. Louis
149.
Neutrality. 294
1,ee - Accept n ces
Bank of -England, Foreign 'Agent
Warburg
New Orleans Branch bank
- Bills of exchange
New York law
Pepreciation of investments. 220
Sae - O'Neil, J. H.
New York Yacht Club
At Aattapoisett, Auz. 5, 1916.
268
Newton, Assistant Secretary
S30Ris Bank
Notes
- Open market purchases.
-0O'Brien, Gen.
See - Pun American Financial Conference
Officers of
see - Attorney General
Federal Re,3orve banks
Ogilvie
See - ncAdoo
Wilson
O'Neil, Joseph H.
Says country wont prosper until Wilson Administration is
swept out. 218
Opposed C.S.H. for Assistant Secretary. 218
C.S.H. feels, will oppose his appointment to Federal Reserve
Board. 218
Angry because his bank, - the Federal Tru::.t Coapany, - has
not been atmitted to Federal Reserve system. 218
Federal Reserve bark won't admit Federal Truet Company unless
book value of certain invetments materially reduced. 218
Curtiss reports capital almost iA)aired by bad loans and
shrinkage in investments. 219
Federal Re-:erve bank viii require certain % of earnings to be
allocated.to bring up general condition of assets. 219
O'Neil apparenjy willirg to do What Federal Reserve IL,arik requires
but Directors eiridently 'rie not. 219
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Federal Reserve Bank of St. Louis
150.
O'Neil, Joseph H. (Cont.)
O'Neil amazed at condition pointed out by Federal Ressrve bank;
he thought his bunk mas in first class condition. 219
Broderick says ruling that Inds value must be reduced by 50%
of shrinkage, is a reasonable requirement. 219
says only a litqe more, if any, than Comptroller would
require from a natisnal bank already incorporated. 219
Broderickand Federal Reserve Agent Curtiss severely criticize
Thorndike, the slass. Bank Commissioner. 219
Say he never interferesunless a bank is insolvent. 220
Say that Thorridike knam that savings and other banks had large
stock investments and that marking them down would
result disastrously. 220
Say that N.Y. law requires marking down to within 3
,1c of market
value, and that we hal not gone nearly so far as that. 220
Open msrket powers
Miller favors amendment to Secti n 14, permitting Federal
Reserve banks to purchase in open market ndes secured by
warehouse receipts covering agricultural stsples.
174, 175.
All agreed this is too narrow, assuming any change necessary
174, 175.
C.S.H. =vas amendment permitting purchase of notes with
2 or more responsible indorsers. Jan. 28, 1916. 175
Warburg objects. 175
Moved to table C.S.H. motion lost by a tie vote. 175
McAdoo votes for tabling. 175.
McAdoo says he favors C.6.H. amendment but not at this time. 175
Delano said if forced to vote on merits would favor it
but thought it ihould be postponed. 175
Glass writes sending Smith bill permitting lourchase of
commercial paper in open market. 208
C.S.H. favors. 208
Warburg, Harding and Delano ovose. 208
Referred to Law ComAttee. 208
See - Bank of 71ng1and, Foreign Agent
Bills of esdhange
Owen, Senator
says Federal Reserve Board has power to cut down districts. 108 .
Asks C.S.H. about cutting down. 115
Furious. 115
says Congress will interfere. 1/5
Says satisfied Board has no power to cut down and is broad
enough to change any contrary opinion. 115
Protests against right of Board to cut down. 120
McAdoo sent him a copy of committee report. 120
C.S.H. tells him of general facts. 120
Warburg very bitter. Says letter must be answered. 120
Warburg denies ever favoring the abolishment of Boston. 120
virburg mad at Owen's letter's reference to clesringi. 127
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Federal Reserve Bank of St. Louis
.6.6••••••••••••
151.
-Pry
•
6
•
Pan American Financial Conference.
Lunch of C.r,.H. to Aldao. 18
Dinner of C.!1.H. to certain ielegates. 18
H.7'.H. Lunch to certain wives of delegates. 19
Addras of C.S.H. 19
C.S.H. attends dinner to Uruguay delegation by Gen. O'Brien 19
0..13. attends lunch of Niearagua delegation. 19
McAdoo givei dinner. 19
McAdoo gives each delegate a col*, of C.S.H.'s inde digest
of Federal Re.;erve Act. 19
Vanderlip offers to give $10,000 for a permanent secretary 20
Vanderlip offers to pay all eTenses for senling U.S.
delegates to South America 20
U.S. Chamber of Commerce offers to
expanse of a permanent
secretary. 20
McAdoo declines to receive any subscriptiom. 20
Peters gives breakfast to delaga:es. 20
Villa Noeva dines with C.S.H. 20
C.S.H. appointed on secret camnittee to examine all
octs.ittee reports, vith Vanderlip, Fahey, an-1 John
Bassett More. 20
McAdoo insists that Fei3ral Re3erve Board must pay for a tea
given at reTest of committee, although Assistant
Secretary Peters said it would be paid out of the
Congressional appropriation. 20
Par, Section 16.
Harding favors strikims out words "At par" in section 16,
if Board oontitues to collect checks through
Postmasters. 262
prepares draft for this purpose. 265
Prepares ne-v draft retaining words "At par" and providing
for clearing members. 267
Patrons, Section 16.
Kitchin says word refers only to member banks, and not to
depositors in banks, for banks hive never ieducted
exchange charges from their depo%itors. 263
Peabody, G. F.
Elected Deputy Federal Reserve Agent, N. Y. Dec. 28, 1915. 165
Philadelphia ehaaer of Commerce
Address, C.F.H. 114
Philippines
See - Willis
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Political offices.
McAdoo moves resolution preventing directors etc. fran
henceforth holding, passed. 163, 164.
Willis says broad enough to include Starak. 163
C.s.H. says prospective merely. 163
McAdoo agrees with C.S.H. 163, 164
Board modifies resolution so that lirectors already elected
need not resign. 164
. . .
•
•
11
Politics.
Warburg charges, in Wolfe aplotntment. 6, 7.
Federal Reserve Bank of New York played, in offering Atlanta
a 20 rediscouzt rate. 6, 7.
President Wilson asks Board to sis:oint OlGilver, - a
Princeton man. Board declines to waive age limit. 28
McAdoo played, in dasosits in Federal Reserve banks. 69
Williams objects to appointment of Judge Good rich as
Federal Reserve Agent at Kansas City because he is a
Republican. 165
Williams says Board is prescribing Democrats. 165
Delano s-sys 2 out of the 3 Government directors at Feder&
Reserve Bank, Chicago, are Democrats. 165
,
s4,
4ss
Mit. Wilson tells C.S.H. that Presicisnt Wilson came out
for woman suffrage purely for politics; that she had
often heard him argue against it. 168
Warburg, by his amendment an to Government deposits, is
trying to make political cspital for the Republicans. 179
McAdoo says Warburg amendment is a political sttack against
him and Willis. 181
Hasding svs McAdoo said he 'vas agpcsed to proposed amendments
as they siould give politisal ces?ital to the Republicans
193
Wilson suggests appointment Of his brother-in-law Bolling
for Fadesal Reserve Agent, Richmond. 195
Marsh, Treasurer of Democratic National Coardttope, has a
candidate for Government director at Chicago, in
Meredith's place. 245
says no, in Wisconsin banks petition.
Says first sug23sted by Congressman Shafford, a
Republican. 255
Kitchin says check collections through Postmasters will make
North Carolina Republican. 263
Taggart, senator, says s,ollecti n of Ihesks through 'ostmastere
will ruin Democratic party. 263
Gov. Told charge, in Wisconsin bank petitisn. 275
Rich's charge of, in wisconain bank petition is absurd. 284
Williams says Bank of TErgland agreement will injure the
administration. 298
Panerene, senator
McAdoo asks, to push confirmation of C.S.H.
267
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Federal Reserve Bank of St. Louis
153.
Pope of Rome
Lansing says Geruany has 'ado a secret agreement to give,
temporal power in Case Gerlany 'dna war. 176
Postma.ters
See - Clearing 3y2tem
Previ cue question
Harding
for fir.t time in history of Board. 163
grime, Dr. Morton
Attacks Wilson's fcreign policy and C.F;.H. procures
article in reply by Guillard Hunt which Springfield
Republican print.. 176
Pro-Ger ian
See - Iiller
Warburg
Purchase of note in open raarket
See - Open L.,Arket purchases
-Q,-
-R-
Ramsey, Federal Res,erve Agent, Dallas
See - Federal Reserve Bank, Dallas
Miller
RedesignAtion of Federal Re3rve cities
See - Federal Reserve Board; reLle,;ignation
Rediscounts between Federal P,e.;erve baits
See - Discount rates
Redistricting
Connect lent banks
Com.ittee to report although no hearings held 94
Hearing on -petittcn. 190, 191
Warburg and Delano favor granting whole patition.194
"Due regard" 11156E8 present businpsa an absurdity. 194
Miller Moves to rostpcna until clearing ystem
established. 194
Harding favor. 196
opposee. 196
Congressman Hill says 'Eastern b _nks will also petition
196
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Federal Reserve Bank of St. Louis
154.
Redistricting (Cont.)
Conrocticut banks (Cont.)
C.S.H. says will not appose tramfor of Fairfield County 196
C..H. votes for Miller motion to postpone. lost. 196
Voted to grant petition as to Fairfield County and to
postpone the rest. 197
Harding and Warcurg votal no.
Harding threatens to putlish his rAnority report. 197
Miller says, if he does, he will state that centrali3ation
of credit by further increasing the pawn. of
Federal Reserve Bank of New York Fihould stop, tnd
that nothing but the clearest evidence wo-_111
warrant further increase. 197
C.S.H. says he will make a statement which may result in
a feeling that certain members .irs reactionaries. 197
Congressman Sill sa:rs decision as to Fairfield County will
injure him, and aska C.S.H. to write to Ar. Whipple
at New iavan that he dit nct suggest it. 198
C.S.H. advises him not to ask this and he aqrees. 198
Delano says postponmzent to await results of clearin3
system would induce C.F'.H• to try to block clearing
eyst&a. 199
Board agrees to postpone balance of Conn. petition until
204
June 15.
6.7,.H. says Board should study evidence before Reeerve
Bank Organization Committee. 204
Hardt- 3 assures 0.9.H. he will never vote to assign
laztern Con. or any part of Mass. (e.g. SI:xingfield)
to Nec York. 205
larburg gives sae assurance. 205
Discussion af
Com.Littaa appointed to consider all pending petitions. 82
C.S.H. points out that Board has already announced that
no more changes woill be male eave on workings of
experience. Miller and all agreed that this was
correct. 82
Louisiana 'was
Transferred from Dallas to Atlanta. 194
0.T-3.H. and Williaus voted Nc. 194
Wisconsin banks
See — Federal Reserve Bank of Ainn.
Rich
F:te - Federal Reserve IF3oard; cutting damn
; redistricting.
"
Reed, Senator
See - Federal Reserve Bank, Kansas City
0
Regulat ion J.
See - Accept-ince credits
!3trorg, Gov.
Regulation R
See - Miller
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
lbli.
Renewals
see - Acceptance credit
Reports, Exaniner.;
See - Williunis
Republican
warturg says he is a. 134
Told Senate Co nittee on confirmation he had no politics
but would have voted for Wilson, had he at that
time a vote. 134
When attacked last year in the Senate, he wrote Senator
Weeks saying he was a, and conlainei against
Republican attacks. 134
Thinks it better not to speak at dinnlr of Nev York Republican
Club as he is a. Re,lublican. 134
Republican Club of N. Y.
Address of C.S.H. before.
see supra - Republican
134
Reserve Agents
Se3 - Fadn-al Rei3lrve Bank, Minneapolis
Reserve Bank Organization C0112_,ittel
Harding says, gave cut a false rel)ort of meeting at Richmond
107
Miller saya work of, badly done. 145
Reynolds, G.
Laughlin says, more bigoted than Bush and Vanderlip. 134
Rich, Federal Reserve Agent, Minneapolis
Hearing as to ,,ppointment of Mosher. 87
Warburg objects to hearing. 87
Board writes, as to publicity plans. 93
see also - Federal Res-aive Bank, Minneapolis
Miller
Wisconsin petitior,
Bank
Ri,,cs
McAdoo ill and wuch worried over. 9
C.S.H. strongly advises compromise. 9
C.S.H. advises dropping Williams and looking out for himself 9
McAdoo, C.S.H. thinks, would like to do this but loyalty to
Williams prevantEi. 9
Brandeis asks C.S.H. to call on him at Hotel Goricn. 9
Brandeis says:Williacs bolsolutely wrong. 9
President shculd Jugge3t to Government counsel
to advise Williams to remit all penalties. 0
This would take away all equities of the"All, and .o
away with nlcessity for a trial. 9
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Federal Reserve Bank of St. Louis
Riggs Bank (Cont.)
Brandeis says (Cont.)
This would save McAdoo's reputation which would be
seriously injured by a trial. 10
Has so advised lIcAdool v4ho seamed pleased with the idea,
but had done nothing. 10
loull leave allegations of bill Lilt by McAdoo's answer
and would end the mtter. 10
That if a trial were hell, the Bollinger case would be mild
by comparison. 10
Aiked C.S.H. what connection he Ivai had with the slitter. 10
C.S.H. said he had not approved the tax deposit discrimination
against the Riggs Bank. 10
Brandeis said: C.S.H. shaald instantly see Wilson and. tell him all he knew 10
Should advise Wilson to follow Brandeis's advice. 10
Attorney General advised Mai to ccnsult with C.S.H., and.
advise him to see Wilson. 10
Attorney Genlral said. 3/11 the lawyers agreed that the case
was an ugly on' and should not be triad, as Williams,
in all probability, would be beaten. 10
C..H. haa a half hour's talk with ?resident Wilson. 10
Wilson said:A local fight between Williams and the Riggs Bank. 10
$hould go to a finish. 10
No possibility of its involving the aiministraticn. 10
If Williams is beaten, he ahould not hesitate to take
proper acticn. 10
C.S.H. said tc Wilson: Certain that aisinistration will be involved and injured. 11
Asked President to consider the chance of its being ?roved
that the withdrawal of the 2 millions of deposits
fraa the Riggs Bank was ccnsiderd and approved by the
Cabinet and. by himeelf. 11
President Wilson quickly replied it had not been. 11
Wilson s,il:Can not turn down Williams 'without a hearing. 11
Williams' letters were clearly improper. 11
Agrees with C.S.H. that on this matter Williams is not
of sound mind. 11
Wilson said McAdoo's evidence as to 4hat Atlas said would
tarn the tide against the Bank. 11
Wilson seemed absolutely confident and serene. 11
C.S.H. tells Brandeis Wilson does not unlerstand tne cads. 11
Brandeis said the Attorney Gensral, in his presence, told
Wilson that he agreel with Brandeis's opinion. 11
Sherman Allen told me Glover Ca d. he had been "carzying" one
of the Cabine since beginning of the administration. 12
12
C..H. tells this to Brandeis in confidence.
C.S.H. did not tell AcAloo of his talk with Wilson because he
felt %IcAloo, cat of loyalty to Williams, would not consent
to Tutting in his own defense, wholly apart from Williass 12
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Federal Reserve Bank of St. Louis
157.
Riggs Bank (Cont.)
C.S.H. feels McAdoo realizes he has encouraged Williwss and
is really responsible for his queer actions. 12
McAdoo tells C..H. he is sorry he talked so freely to
Brandeis who has told sirs of the interview. 12
McAdoo very displeased. 12
Fat/ he wanted C.S.H. to read his afqiavit. 12
Said he vas especially displeased at C..1 . statement to
Brandeis that he might have to testify against Williams
as to the tax deposit discrimination. 13
C.S.H. tells !4cAdoo it was his tsty to tell Brandies all he
knew about the matter. 13
C.S.H. says hardly necessary to say ha had, no desire to
testify, but that, if summoned, he should testify to
the actual f.icts, but it would be like tearing out
his tongue to have to say anythine. 13
C.S.H. says Brandeis told him that Williams' conduct was
not justified in equity or morals. 13
0..H. strongly advises laAloo to compronise matter honorably.13
C.S.H. says it will inevitably, whatever the final decision,
drag in and injure the Presid!nt, the administration,
and McAdoo himself. 13
McAdoo says he will not object to a full settlement. 13
C.3.H. says Riggs Bank will be glad to settle as many of his
and Williams' allegations, even if not rilevant to the
bill, will clearly injure it greatly. 13
McAdoo asks C.fl.H. to 7,ake his affidavit, read it, n1 let his)
know by 9:30 how it struck him. 14
Brandeis dines with C.s.H. aryl acssin says a trial, whatever the
decision, will ruin McAdoo and Williams and irretrievably
injure Wilson and the administration. 14
C.S.H. calls un McAdoo at 9:30 and says the affidavit puts his
case in the strongest possible manner, and if filsd,
and a sattlemant male, soull sut hiss in a strong
position. 14
C.S.H. points out that sass reasons stated in affidavit as to
the tax le:posits could not, it will be claisel, havs
been known by 4sAloo until later. 14
McAdoo says Williams ,verbally. toll his, these reasons before
May 6, the late of his decision. 14
On the record., however, it appears that the examiners only
discovered these &Illegal facts on May 18 when they
reported these facts cr7ficially only on lay 28. 14
McAdoo sail his decision of May 6, ssas only tentative, subject
to consideration, and was finally determined upon
only in his letter to Glover, Itted JIMA 9 or 11.
14, 15.
McAdoo said he did not tell
of this when he Arested
him to tell 'lather that no tax deposits 'scald
be made in the Rigs lank! 15
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Federal Reserve Bank of St. Louis
158.
...
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. . .
. . .
Riggs Rank (Cont.)
warren tells C.S.H. that wuggestions of settleolent
were
made at hearing yesterday and case was postponed to
work them out. 15
Williams asks C.S.I. squarely if he does not think
his
affidavit was a colaplete answer to the bill. 15
willias had previously sent it in to C.S.N. who had read
it. 15
C.`1.H. told Williams he had. grmtly strengthened his
case
by specifically waivins all penalties except one for
$5000 for ref-Isal to give a list of all loans back to
1896. 15
C..H. aid, in Aller's presence, that he felt sure Villius
would have lost on auestion of these penalties. 15
C.3.H. says the $5000 penalty involves a question of law, on
which much could be said on either side, and that there was
at least a fighting chance that the Government might
lose.
15
(The court later granted an injunction agtinat enforcing
this penalty.)
tells Williams that if the other side •,iggests a
settlement he ought to try in very way to reach an
honorable cna, as a trial would injure the alminbtration,
and McAdoo seriously, even though the case olght be
won tn legal points. 15, 15.
Williwas disagreed and even fonTliat the sugge:Ai,:n of waivIn
g
the penalty imposed for failure to give a list of securities
available as collateral for Aldrich-Vreeland notes, which
0.3.H. had. told him could not be lawfully imposed or
collected. 16
Williams, as a 13-.tter of fast hAl alrealy waived this penalty, as his affidavit expressly stated, - but he c ould not see
the propriety of it. 16
Williams is absolutely blind and can not see how any of his
acts chn 'be criticized. 16
Williams was very bitter against brandeis. 16
C..H. told Williams Brandeis' judgment was good and that he
did not fear to take risks. 16
Assistant secretary Newton tells C.S.H. of a rumor that 3randeis
was trying to "queer" Williams in order to rehabilitate
himself with the financial interests. 16
C.S.H. feels Brandeis should not have told AcAloc the details
of the conference between him and C.S.H. as it as in
absolute confidence. 16
McAdoo called on C.S.H.
Seemed to be in good spirits over the
case which 16 to be argued tomorrow. 17
C.S.H. asked him if newspaper report of a comprcuial was true,
but Ackdoo said all such talk as nonsense. 17
Warren tells C.S.H. there had been efforts on both sides for
a comproraise. 17
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Federal Reserve Bank of St. Louis
159.
•
•
•
•
•
•
•
.
•
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Riggs Bank (Cont.)
said the Rig6s was perfectly -111ing and offered:
To comply aa to all information demanded And for
.
1-3
the $5000 fine 'vas lia)oned if Williams wi
will
this fine. 17
To dismiss their bill against McAdoo and williaius. 17
Only condition -as that no affidavits be filed as there
would be nothing left to Answer z1:3 dialAssal of the
bill. 17
Warren l'aid ke thought this a wise settlement but AcAdoo
and Williams insisted that their affidavits be filed
and therefore the Case must go on. 17
Warren said 4cAdoo male a great :Asake in puttirg Into his
affidavit his letter to the Attorney General asking
for Counsel for Williams, in shich he said he Iti not
Nish to do any injustice to the Rig7s Bank, as it would
probably ILe relevant the advice his layer gave lain
and which he disregarded.18
Brandeis e.ivisel Willis that the charter of the bank coala
not be forfeited for its alleged offenses for these
had all be discontinued. 18
On trial of motion to dismiss and for a permanent inunction,
Judge Mmiloy declined to give any injunction except as
to tkie $5000 fins, which, he :11.31 was purely a questirn
of law. 18
Judge IcCoy folimd that there ,vas no alice in Williams and no
conspiracy on part of fle.:Ad.00. 16
Judge McCoy found that McAdoo and Williame vere justified in
what they lid and Icial not have done otherwise. 18
Judge 4cCoy said to C.S.H., Jan* 19, 1916:el.:Azad that people to not or generally appreciate
the great ad,rantages of the Federal Reserve
Act.
170
f;atinfied it sas largely tie to WilliaT.s. 170
Told this from all over the country. 170
Will aay to C.J. in strict confidence that, - nc
matter hoN I may finally decide the Riggs
Bank case,- he believes Williaahs letters are
a good illustraticn of hoc not to do a thin.170
al.71 his letters were intemperate And =judicial. 170
That he was fearf-illy injuring the administration. 170
Admits he is honest and very likely able. 170
Sail sauething should be dons to prevent his utterly
..vrecking the at.inistration. 170
Jladge McCoy issues a permanent injunction against McAdoo and
WilliaLns as to the $5000 penalty. lay 31, 1916. 230
•
Roosevelt, Assistant Secretary
C.S.H. goes to Newport, R. I. with. 73
Nakes an inzpection tour without
Leaves C.S.H. on sip
inviting nim. 74
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Federal Reserve Bank of St. Louis
160,
Root, Elihu
Goy. V,trong tells C.S.H. he furnished the ..terial for speech
of, as to the inflaticn possibilities of the Federal
Reserve Act, 3
Row over subtreasury neeting of Federal Reserv Board.
See - Acceptance credits
Harding
McAdoo
Miller
Rural credits 001.4.ittee
C.S.H. eoas before. 167
-S-
Safford, Congresarsan
First bpoke of Wisconsin bAnlis petition to C.S.H.
Republican. 255
Is a
Favings banks
Warburels amend:oent providing for s,vings banks a, aEsociate
7
-embers fxrcred by C..7. 1 2
Famyer,
Reserve Agent
See - Federal Resarve Bark, Kansas City.
Schiff, Jacob
Calms out for Wilson
269
C.F.H. thInka 4.era1y to help Warburg secure Governorshili but
McAdoo says urely Incause of public spirit. 239
cott, Gen.
C.S.E. dines with,
O :seat the Prebiient. 216
'eay, Gov.
Controversy with Ingle. 158
McAdoo and Williaus opposed to reelection of. 158
Keeping money with reserve accents ties up 80C millions. 277
See - Feltral Reserve Bark, Richmond
Federal Reserve banks
MoAloo
;ecretary of Treasury
See - Federal Re.;erve Board
McAdoo
Section 13, Federal Reserve Act
cee - Acceptance credits
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Federal Reserve Bank of St. Louis
161.
(ection 14, Federal Rrve Act
See - Accertance credits
nunk of Englund; Foreign Agent
Bills of oxhange
nrown Brothers acceptance ,-redits
qpen luarket rnrchasee
Section 16
See - Cleurance system
Federal Resrve notes
Shibusuwa, Baron
C.S.H. dines with Japanese AvibassaAor to
Addres of C..H. at dinner. 155
Sim:Ions, senator. 261
See - 01uring system
Smith, senator Hoke
'ays Harding is weakening on cqtting down o: Fe -ieral ReL,erve
districts. 115
Protests against c-Itting down. 120
Bill to perrat Federal Reserve banks to purchase notes in open
market. 208
C.S.H. favors it.20 8
Warburd, Delano, and Harding opoose. 20e
eferred to Law Cau.ittee. 208
F:cuth Carolina Bankers Association
Addfess of C.S.H. 236
bring-Rice, Sir Cecil
See - Great Britain
Harvey, r.ir ?aul
Tringfiald Republican
Prints article .Drepared b: Guillard Hunt defending ihilson from
attack of Dr. Morton Prince. 176
Stamp tax on checks
C.S.H. wiggets amendment I.:rovitinc for u, in interstute
coerce where the bank on which drawn is not a member
or a cle-ring memberof Federal Reserve sytecl. 179
Starek
See - Federal Re.ierve Agent, Deputy
McAdoo
'trong, Gov.
State bank checks
se - Clearing system
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Federal Reserve Bank of St. Louis
State banks
warburg amerainent permitting, to bencn:e associate members,
paying no capital and with power to rediscount
through member banks. 192
opj)oses. 192
Harding ma i. 192
C. .H. says would be a confession of failure of Federal
Reserve system. 192) 193.
Rejected. 193
State Department
See - Bank of England; Foreign Agent
Cotton
Status of Federal Reerve Bard
See - Federal Re.serve Board; status
'
-,
4 :rong, Gov.
Tells C.S.H. he furnished Faillu Root ,,vith data for his.
speech in 7enate attacking the inflationary
possibilities of the Federal Reserve Act. 3
Tells C.
he
the Federal Res,_erve Bank of Atlanta
a very low
re discount rate to de:aons trite t!-,fe
ham it will do to southembank!:. 4
Delano said Gov. Strong said - "They want a low rate,
I willgive it to then to break their necks!" 6
Palmer, irector of Federal Reserve Bank or TTew York
and Starek complain of Gov. Strong for not
appoir ting a cashier b authorized by Directors. 22
Gov. Strong :,
,ays Starek vent to Sailer, the propoeed
Cashier, and advised him to hold out for f'12,000
salary. 22
HiArdinE: and Delano &Cr 7cinted a cm ittee to lock ine-o
matter and -..t--)ort. 22
Gov. Strong exploits proposed :Brown Brothers acceptance
credits. 24, 25
Gov. Strong says he has ;old New York bankers of opininn
cf Board that national banks could not contract
for renewal _icceptances nor give a new accept:tnal
if it brought the limit beyond 6 months. 25
Asks Board to omit from letter the statement that while such
acceptances could as a matter of law, be rediscounted,
a clue:Ition of policy Ass involved. 25, 26.
Gov. Strong said this was an open Tie tion to be decided
when it arose. 26
Sail he hat not told the bank; that their ac7eptances yere
eligible for rediscount. 26
Board sends Gov. Strong on July 28 a letter supolementary to
that of July 15. 26
Delano tells C.S.H. that yesterday, July 27, 1915, he went
vith Gov. Strong to 'Iarblehead to c:nsult J.P.Morgan,
who ,.ivas on his yacht. 27
(2e)
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Federal Reserve Bank of St. Louis
163.
•
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Strong, Gov. (C(mt.)
Gov. Strong suggested to Morgan a plan by which exporters
of cotton could draw on American banks unier an
arrangeent under which foreign banks would indorse
them* 27
Morgan told Gov. Strong to co ahead and that hhe woul,i be
responsile for from 25 to 50 millions. 27
Neither Delano nor Gov. strong had any authority from Board
nor had ever mentioned te matter to the Board. 27
Tells Board its lefter of July 28 foridding renewals of
drafts under revolving credits killed the whole matter.28
Reads memorandum an necessity of .king credit arrangements to
cars for our exports. 28
Reads legal mcvaorandum to effect that renewals, or rather,
new drafts, as between drawer and drawee were not
prohibited provided the acceptor paid the draft to
the drawer on Ji.curity. 28
C.S.H. received letter from Warburg that Board's letter to
G. Strong of July 28 was in error in refusing to
permit such renewals; that they were merely cash
advances as between drawer and acceptor, and If within
6 months limit, were plrfectly good. 28
Harrison advises Board that letter to Gov. Strong of July
28 was not warranted by 7.11iotti3 opinicn of July 9 31
C..H. prepares new drift of letter to Gov. 5trong. 31
Debate over sending !bove letter to Gov. Strong. 32
Finally agreed C.S.H. c write Gov. 7trong as to exact ldgal
question involved in connection with /1,Arrison1 s opinion 32
Ackrioo approves of proposal letter to Gov. Stron .33
Gov. Strong says matter can not wait even until Aonday. 33
Discus,don in N. Y. meeting as to letter to Gov. Strong. 35
Miller and Warburg finally 7ote for letter to Gov. Strong. 37
ecport credits, the 73rown
Gov. Stron,'1. talks to Board
Brothers agreement, etc. 37
Gives full pi.rticulars as to Brown Brothers Agreement. 38, 39.
Denies Waeb. irgis :;tatement that banks agreed that no war
manitiona should be financed under the agreement. 38
Says Bank of France has agreed to export of gold, if
necessary, to pay the drafts. 39
contrattt
not ma's with French Government as a purchaser
Says
but with the individual; who had bought American goods. 39
Warburg claims no accepting bark could, under Regulation J,
renew or give a new acceptance After delivery of goods
to a purchaser. 39
Gov. Strong points out that Regulation J merely relates to
eligibility for rediscount with Federal Reserve banks and
had nothing to do with the question before the Board, - the
power of member banks to accept. 40
Gov. Strong says, however, that Regulation J 44 defined by
warburg was ats,71.ra and sImuld. be revOke4 ad it seined
to imply that bankscoull only draw documentary drafts,
which WA:burg strentiou$ly denied.. 40
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Federal Reserve Bank of St. Louis
164.
Strerg, Gov. (Cont.)
Gov. trcng said that under warburg's interpretation of
Regulation J, no draft could aver be renewed for
in most c;wes the documents are stripped from bill
by acceptor, who gi,re,; therLi to the purchaser, for a
trust receipt or other collateral or scLiettnes without
fr'.)
any collateral. 41
Says that on Warburg's interpretation a bill could nct be
renewed even if the acceDtor took collateral. 41
C.S.H. says Gov. Strong must give answer to Brown. Brothers
at once and if Board could nct settle it today he
would call a special meeting in Washineton for
tomorrow. 41, 42.
Gov. Stronz t311•6 13oard he has read Boat's letter to him
and that 3rown Brothers are satisfied. 43
Says hi told them could give no alsurame as to whither the
drafts would be eligible for rediscount at Federal
Reserve banks. 43
C.S).H. dines with Gov. Strong at Metropolitan Club, N. Y. 43
Gov. Strong proposes modification of RegulaticnJ to
remove any doubt that renewals under revolving
letters of credit, as between drawer and acceptor
are .permissible ind eligible for rediscount. 4§, 46.
tells Gov. Strong to submit a me..lorantivm in writing
L9 to above. 46
Favors letter to Federal ReGirV9 agents on opin market
purchases but says it should have been issued as a
regulation. 78
Willis says that during pendency cf Glass Act, Strong came
very near offering him a bribe. 134
Gov. trong says Governor.; will live up to the spirit of
McAdoo's statement forbidding an crgani2ation of the
Gov rnc rs. 173
Gov. :tro rg presents to Board a prelindnary mimorandnin as to
an agreement Arith Bank of ;
. - igland as foreign agent. 221
Memorandum:Bank of 3ngland to purchase foreign bills for
Federal Reser,re 3ank of N/ York. 221
If a joint stock bank acted as our agent, there
•vould be no assurance that 33/113 to credit of
Federal Reserve bank woad be payable in gold. 221
This would require a guaranty from Bank of 7,n31a.nd
which, toy, absolutely controls gold sup:.
- 1y of
Gre it Britain. 221
Wiser, therefore, to appoint Bank of' 3n,-21and directly 221
In a11 there
be enormous exports of cottcn,
oats, and wheat. 221
Thrcwinq these bine on market ..villiepress 'exchange to
injury of our exporteri. 221
Feleral Reserve bank even by buyiniy. a li:uited amount
of these bills, n•-tn stabilize exchange. 221
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Federal Reserve Bank of St. Louis
165.
F.trong, Gov. (Crint.)
i!emorandum (Cont.)
The bills, when brught, can be sent to Bank
of England,
and, as well, to any other European central
bank, to remain there, When paid, to credit of
Federal Reserve bank. 221
Bank of IlIngland Nill allow interest a lit:13 below
the
ordinary bank rate. 221
Will also earmark the gold agreeing to hold it as
property of Feleral Reserve bank. 221
On other hand, Federal Reerve bank can not technically
receive deposits from a foreign bank. 221
We could, however, take gold from Bank of England
as
eanraal aold just as Net did frail Bank of
Netherlande. 222
section 14, Tithorizing Federal Reserve banks to deal
in
gold coin and bullion at hcrle or abroa.ii clearly
authorizes Federal Re,Aerve banks to receive gold
leposit..i repayable in sold., siiailar to the power
of the gold national banks in the civil war. 222
Thiiks it wise, hovever, to have the law amended, although
July national banks mLght ap:ose. 222
5peculators in exchange Naald not object to this
it
would be for their benefit. 222
Says this 4dreement is strictly limited to bills of •
exchange and would not authorize, e.g. - the
floating of a British loan in U.S.,payment to be
male to Federal Reserve banks. 222
Says the Netherlands earmarked sold may enure to
advantage of Germany as it was reported that the
Netherlands Toernr-l-lt would or perhaps had
obtainsd legislative authority to issue notes
r.,gainst these deposits of sannarked gold in
Feder4 Reserve banks, and that that) the
Netherlanda ccall buy Garman securities and pay
for them free from any ponsible interference fro_
Great Britain. 222
Gov. 6trong leaves no 2o5, of memorandum -gith the 3oard,
as he 'lashes to la.y it first before his directors
:grid d.11 send a ecy when they have ;:onslierad it.
222, 223.
Gov. Strang tells Delano and C.S.H. %it lunch:Officers of Bank cf England comiler Federal
Reserve X.dt as a monumental, marvellous piece
of legislation. 223
Makes possible, for first tt2e, cooperation between
England and U.S. 223
This gill tend to stabilize eAchange. 223
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Federal Reserve Bank of St. Louis
166.
(
Strong, Gov. (Cont.)
Says also: Bank of England offi,
_•,ers think it most import.nt
to ocure a Gimilar agreement with Rani. of
France,
though the Bank of Ene,land c c-t:1 ci
not be a party to it. 223
Gov. Strong says h has also talked with officers
of Bank
of France and that they would be glad to enter
into a similt.tr agreement and that they kvould be
willing to accent Federal Reserve bLnks a depoe
itors
in the Bank of France. 223
Gov. Strong tells Board he had reached an infor
nal under,Itanding,
while abroal, Aiith the Bark of Tr, *Iland which
bound
rgither party. 225
That lark or' .P;rigland will alt as A :ent, if
desired,
and .viii open an account with the Federal
Reserve Bank of'
,TJw York for tteelf and for
such other Federal Re .erve banks as cared to
join
225
The Bank of Etvland .viii riaranty the payment
of all
foreign b1113 bought for Federal RA sff rVt3 Bank
of New York. 225
Will earmark the gold and wil agree to ship gold
on balances,
even thoue,t a moratorium be in force. 225
The Federal Reserve bank will guaranty bills bough
t for :Bank of
Engla.nd And .viii earmark the gold as a speci
al deposit,
as it can not open an :Account at hor.le,
under Federal
Reserve Act, although tt can ,broal. 225
When cotton and wheat begins to move there viii
be a flood of
'illset:doh will depress exchange. 225
Federal Reserve banks, by buying thee bills will
stabilize
exc....hangi to great benefit of exporters. 225
The bine, when bought, can be sent to 3a.rk of vaegla
nd and
proceeds placed to our credit. 225
Thia will offset future clail:s on our gold. 225
7- -igland can pay for our munition exports only in 4
ways:1. 3y ship ,ing ,r,cods. 226
2. By shipir us our securities. 226
3. By using credit here now nearly e -thausted. 226
4. By shipping old. 226
The Bark of Iinglani will agree in advance as to the price
to
be charged for gold shi.--;ped, so the Federal Reserve
bank will be fully protected. 226
Gov. Strong eati the Federal Res3rve Board, under the
Federal
Reserve Act, must approtre this agreement and the
apl)ointment as Foreign Asent, and that, therlfore, we
had a 1rent responsibility. 226
Gov. strong said the question of neutrality might be rtsa1
in via,/ of the position of the Bank of dgland and
the relation of th -73 le ral Reerve hanke to cur
Goverment. 226
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Federal Reserve Bank of St. Louis
167.
strong, Gov. (Cont.)
Said. Federal Reserve Bank of New York.. ..vc.ald like to u14.8
this arrangement for iteelf, if other Fe teral ReFerve
bunko did not care to join. 226
Lord Cunliffe told Gov. Strong that Bank of England had long
..vanted to make soe such arranc.ement but could not
discriminate a'nong individual balks. 226
Gov. Strorg said if we had had such an a.rrangtement 1n1914,
he would. have gone to the limit in s 11 trig bills to
pull down 1)Cchange ratee and said. this . .vac also erarburgse
opinion. 226
Gov. Strong :Aid if exchange in the fall should drop, e.g. to
425, the .,?,.ircha:11 even of 40 or 50 millions would. have a
great stabilizing effect. 227
Warburg tells Gov. Strong such aJount woull have little effect
in timea of great stringency. 227
Gov. Strong i,ys we could not lose as no matter how high
9.4chaxv;a wight go abroai, or how low here, we could always
bring gold from :Sank of .Tne,land at prices fixed in
'3.1vance ni unc_tangeable. 227
Grov e Strong says the other Federal Reserve banks ehould maks
contract with th :Federal Reserve banks to share burdens aa
well as benefits. 227
If there werce no contract and exchantes should rise, the
other Federal Res)rve banks nli.icht say they h.-1.1. use for
their gold. and might force Federal Reserve Bark of
New York to give up its gold for a port. This would
not be equitable. 227
Gov. strong .3i.k.ys Federal Re -;Ir.17,-3 Board could ap_nrove such a
contract and could enforce it. 227
If it could not enforce it and gold had to be sent abroad the
other Federal Rearve banks :aight demand tha New Ycrk to
get gold from them would have to rediscount with them, which would be plainly =Oust. 227
McAdoo ;ays whole proposition seewed wise to him .ancl. suggeets
,.hat Gov. Strong prepare • ccntrat between the Federal
Reserve banks for the ap7;roval of the :loan'. 227, 228.
Gov. Strong said the rates on bills offered us by Sank of
Tngland not bound to take any bills (excerpt at rites Agreed
upon at the ti.. 228
kgreei that this telk with Gov. Strung mas purely inforlaal l
and not to bind any member. 228
poLnts out that Gem/. Strong, In his earlier talk on
agreement, sail that its purpose was to enable the Federal
Reserve banks to buy doestic bills inawn against exports
in order to stabilize exchanL;e, but that hie present
mee.orandum said this should mt
. be -c-ne as it involved
too much risk, but that the bills to be bought sh,elld
be foreign bill's. 295
Warburg .;aid the individual bank- would buy long bills ;aid
Federal Reserve bank could buy .1h3cks and cable "rafts
from them to create foreign be.lane
Bart: of Tngland. 295
571e - Acceptance credits
Bank of Tnglarrl, PoreIgh Agent
Bank of Francs
Bills of exehange
Federal Re verve banke
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
168.
-T-
Taggart, nenator
Says collection of checks threugh Postmaters
will ruin Democratic
party. 263
Thorndike, A. Mass, Bank Cammissicner
Broderick and Feieral Re,Irve Agent Curtisb
severely criticize 219
Thralls, Jerome
ee - Federal Reserve Bank, Kansas City
Toto
C..U.'s dog, Tote, lost at Annapolis. 99
Town topics
C..H. =tins lown a ir. Brooks who urges C.
to borne book in interest of. 79
••
•
o sub sc. ribe
Treasury lotAnation
Bolling
'resitiont Twilson and McAdoo urge Board to api)oint
Bolling,
brother-in-law of Tilson, Federal Res)rve kgent at
Richmond. 195, 207
- Federal Reserve 'lank, Richmoni
Hardy
McAdoo
Federal R333rV3 banks
Foreign 3,gancies in S.auth Amerio,i
Board declines to approve Pre tdent's letter. 75
:40Aloo denies trying to coerce Board. 75
Fei3ral 11333rIn Board
See same; cutting down
Farling
Referring to debate on open market regulations, Harding
said he was tired of voting tc please this man
or that an ani served notice that henceforth
he shcald vote as his oath of office dictated. 71,72
McAdoo
Board feels that 11cAd o considbrs it subordinate to
alministrition. 67
Cotton tells Co:,..ittee of Board that the whole country is
laughing ,At its domination by IcAdoo. 78
Ogilvie
McAdoo tells Board President Wilson want Board to ri-Te
some appuintment to a :1 r. Ogilvie, a Princeton
man. The Bturd declines to waive the age ltait.28
Wolfe
Some members feel that appointment of Wolfe as Govt.
director of Federal le.ierve Bank
Cleviland was
brought a'xylit by. 6, 7
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
169.
-U-
Union Trust Company, Spriql:ield
C.S.H. speaks at dinner of. 194
United States Treasury
See - Govt. deposit.4
Usury
See -Williaca
-V-
Vanderlip
On, of leaders in ilovoment for National Res-n.
ve Associa4don 129
Fcrgan and Reynolds more bigoted and narrow
than Vanderlip 134
See - Pan American Financial Conference
Vordaman, senator
see - Lal,ghlin, J. L.
Villard, Oswald
See -Federal Reserve lank, Dallas
Votes
Acceptances
On question whether, section 13 applied to, in
trade
between foreign nations, Hariing, Warburg and
Delano voted yis and
Williams,and
Aillar No. 7
Bank of England agreement, oreign Agent
Unantmcus votA. Aug. 29, 1916
297
C(1,21olity parer
C.°.H. votes against per:Litting Feleral Re 2-47e
banks
to fix maxim= rate to be chargei by mber
b32143 in ord er to get benefit of the low
con.odity rate. Sept. 2, 1915. 58
C..H. votes for 65 to be fixel by the Board. sept.
2, 1915 58
Cotton
Board never voted on or comidered me.tter of gardirgis
conferences with British Go rnment ab to
buyin6. 44
31liott
Increase in salary to $9000.
All '70t3i aye except Airier, whc voted No. March ;, 1916 204
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Federal Reserve Bank of St. Louis
170.
•
•
•
Votes (Cont.)
FecOral Advisory Council
Votes 6 to 3 favoring redncticn of capital of Fedlral
Reerve banks, Nov. 16, 1915. 110
Recafiqend abolifihing CorTtr.-111r. Nov. 19, 191 -. 114
Unanimously ugairrit cntting down of FlAnral Rcr,irve
districts at pre3ent time. Nov. 19, 1915. 114
vote3 6 to 3 azainzt reductial. Feb. 15, 191L3. 186
Fed!ral Re re Bark of Dallas
votes for resolution congratulating C.r).R. on his
reapcointent. Aug. 10, 1916. 277
Felral Re,erve bank.,
noari VOC,3% to call on, not makirg expense and
dividends to report whether there ie any need for
a Federal Reserve bark there. Nov. 17, 1915. 113
Later voted town. 113
Federl Reserve Board; cutting down of districts
Board votes to lay on table C.S.H. resolution asking
committee for full particu1ar3.
C.3.1. n1 Williams voted No.
Harding, Warburg, Delano and VAiller voted Ay.
Nov. 15, 191. 104
Board votes to tabll Williaas a.otin for a stenogralAier
Sams vote. Nov. 15, 1915. 105
Board votes to table indefinitely matter of cutting
down districts;unanimcas. Nov. 22, 1915. 126
Fleming
Board votes to lesigiate, as repqty Federal Reserve
Agent, Kansas City
C.S.H. tnt :liner vote No. Jan. 17, 1916. 170
Governors
Boardunwnimous in voting for -11AAcol:, sta2ement to,
that they cm r.f.,t form an org.tniz,ttion.
173
Jan. 20, 1916.
'larding
-tuan diatrIlts a will
Says he will not vote to
preci2it3.te a 18.4 wait. liGv. 11, 1915. 115
Hardy, Federal eserve Agent, Richmond
Millar ovea to postpcne vote on.
Aye. Miler, C..T11. and Williams
Delano, Warburg and Earling
No.
210
ar. 7, 1916.
• Lost.
Vote on main que,ition in favor of elacticn
Aye. D3lano0arb1rg and. Hardin
C.S.F. Ani Williams 210
Not vltins: icuts the election.
iellares Tardy 1 ,cted
vote and C
:hanzsa
Miller
210, 211
Miller, [1ov.
Told iirector3 of Felerel Reelrve lark, Zansae City,
that if they Ill not elct him Govermr, the
Board Nculd abolish, the bank. Thralls ells
June 21, 1916. 237
this to
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Federal Reserve Bank of St. Louis
171.
Vote
(Cont.)
Openm&eket purchL,aes
C.S.H. moves amendmint to J.11erits motion allowinE
banks to purchase notes solured by wa-ehouse
rnts covering agricultural staples: that Federal Reserve banks be allowed by amending
the law tcpermit Federal aes3rve banks to
purchaae notes having 2 or more responsible
indorsers.
Vote was a tie:'eS.H., A/111r and William voted against
layinz on table
Delano, Wtrbirg anl Harding voted Aye
Mcildoo vot3d Aye and it was laid on table
Jan. 28 1 1916. 175
ions
uarkot
reculat
Open
Comadttea ”oten to send 1-1tter to Fe43ral Re give
agents instead of reuulations.
72
C.S.H. voted no. Oct. 8, 1915.
1-1.inority report.
te
aubstitu
to
not
Board voted
'70
Har1i
and
Warburg
Delano,
Aye
C.S.H. and Xilliams
Oct. 8, 191:3. 72
Ralietricting
Connecticut barks petition
'Ioticn to postpone pending d3ve1opaent of clearing system
Aye - ^.S.H., 'Mini, Williams
No. - Delano, Harding, Warburg
196
Lost. 4ar. 29, 1916.
postpone the
and.
County
ld
Aotion to transfer Fairfie
rest of the petition.
Aye - C.S.H., 1i11.r, Delano, williams
-NarburT, Harding.
Mar, 49, 1916. 195, 197.
Louisiana banks
Ind williazas vote against transf3r of, from
Dallal to Atlanta. Feb. 25, 1916. 194
..say, Gov.
Board votes to increase salary of, from t10,000 to $12,000
op2osed it but finally vote was unanimous.
200
Aarch 2, 1916.
Williaas, John Skelton
Act
Board voted to pay, con-peraatioil under Federal Reserve
from
Board
Rer;erve
for service on Fal3ral
establishment o" Act down to the first meting of
'Board. All voted for it, on advice of counsel,
202
exce:pt Delano who voted against it. Mar-in 6, 1916.
Wieconain banks petition
banks
C.S.H. says if his suggestion, - that WisIonsin
to
Chicago
of
Dank
113111"73
may remit to Fed3ral
olis
Minneap
of
Bank
ilradit of Federal Reserve
for
vote
Nill
he
,
does not solve the Tuestion
the petition. ,Paly 19, 1916. 244
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Federal Reserve Bank of St. Louis
173,
Votes (Cont.)
Wisconsin banks petition (Cont
.)
C.!*- .T.H. ;doves to reopen petition
.-trid to grant it as per ma-p
filed by lillva-lken titnkarb
Aye. O.S.I. and Tiaritni:
..
No.
Delano anl Warburg
Lost
July 26, 1916. 252
Delano moves to reop3n petition and to
g-ant a ne‘v he;_iring
July 26, 7916. 254
Warburg, P.
Index to citations
Acceptance relations 97, 98, 99, 133 to 137, 140,
141, 271
Acce-2,tances. 7, 9, 74
see - Brown Brothers agreement
Itcount. Calls C.F..H. to
147
Account, Called to, by ,,laAdoo. 147
Ala-ha:11a, Northern. 169
Albart, Dr.
58, 280
Aldrich, Senator 240
Sher .- .,an. 364, 376
Auent:Ient.i, Proposed.
308, .509, 310, 321 to 325
303, 305, 306, 307
Purchase of notes in open market
297 to 299, 338 to 341
Annual 1-3-pert. 296, 300
133 - Amendments
Associate members 321, 322, 362, 363
.Attorn3y General 208, 209, 213, 223, 282 - so 285, 288
Bank of England elgre:Lent, Foreign Agent
415, 416, 417, 1,22, 423, 425
Bark of Franc -3. 28
Bankers .:tIte-ients of condition 182 to 186
Bills of exchange. 347, .1.48, 117, 420
Bolling 332
Branch banks 275, 282 to 285
Broderick 328
Brown Brother3 agrement 10 to 57 424
3rya.n, w, J. 56
By-law 60
Capittl, li.3
%t;trntoof29
to 159, 161i, 168, 204, 311 to 315
Central "Diropean banks. 177
Circulating tag. 364
for u,alary. Willia:ue 345
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Federal Reserve Bank of St. Louis
173,
Warburg, P. M. (Cont.)
Clearing system. 82, 83, 84, 225 to 231, 234, 288, 333'
Ca,nercial banks. 173
ColLittee assignments. 149, 187 to 190
Caumodity rates. 63, 65, 66, 68
Competition
Fal-tral Reserve banks vith aamber banks.
70, 81, 160, 151, 161, 619
Confirmation by Senate. 2
;cngress. 199, 318, 404
Connecticut banks Detition. 330 to 337
Conspirtcy tgairst Federal Reserv3
261
831 84, 125, 129, 130, 142,145, 170, 225
Cotton, J. Pe
,Curtiss, Federal Res-r”e Agent. 96
17,utting iusn of Federal Ile erve banks and tistricts.
150 to 153, 1551, 169 to 171, 180, 14 to 218
219 to 222. 247 to 231. 257 to 261, 262, 283, 274
276, 277, 278, 279, 281, 285, 286, 287, 289, 360
Dificits. 157
See - Dividends
7xpanses
Delano, F. A. 8, 18, 58, 59, 116, 188, 219, 247, 248, 279,
294, 364, 385, 386, 393, 401, •al
Delay 43, 47
Deputy Federal Reserve kgent
Flamin. 295
Directors. insDection of bankers •tatements. 182 to 186
Discount rates. 1, 2, 6, 94, 296
Vece.Lsity of earning.
Dividends
71, 176, 296, 311 to 315, 319
Documentary drafts. 35, 36
Domestic acceptance,.
See - Open market purchases
Domination by Treasury 130
The regard. 331
Tarnarked gold. 418
711iott. 141, 1551, 225, 418
7:vintners reports. 142, 143, 144, 300, 3C0., 302, .105, 306
7Arenses and dividends. Federal Reierve banks
71, 93, 175, 176, 311 to 315, 319
False ,:t4tementi. 191, 218
Fancher, Gov. 87
Federal Advisory Council. 186, 273, 294, 619
Feiiral Ras3rve Act. 181
Federal 1141,:r 1,0 Agent, Deputy. F1emin6,.. 295
Federal Ra3ir,3 Bank of Atlanta. 3, 4, 5, 6,
Federal Reserve 'la& of 3oston. 120, 121, 132, 188, 190, 191i207,
261, 262, 328, 329, 337$ 364
viinn!.4pclis
Rer;?xvire
lank
of
F3dera1
See - Wisconsin banks
Bank of NeN York
Reserve
Feleral
6•
Rediscrunt.3 for Atlant, P,ates 3, 4,
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
174.
Warburg,?. M. (Cont.)
Index (Corti)
Federal Reserve Rank of Phila-lelphia 311, 312, 313
Felter4 Reerle Rahk of t. Louis 314
Feiral. Reserve banks. 20, 31, 71, 93, 95, 119, 122, 123,
126, 128, 172, 173, 174, 175, 176, 311 tc 313, 319
Pedral Ice.ilrve banks. Pedicounts between. Pates 2,6
Fte - Cutting down, etc.
Feleral Tle.lerv Board. 101, 142, 164, 241 to 245, 617, 404
Feleral Pe.verve hots-, 350, 375, 379, 383
Federal Re.:evre syl;t1.
A failure. 222,278, 279, 326
Fleming, Depnty, Federal 7J-4,1rve
ent. 295
Foreign Azencies, 7e1era1 Rese-ve bank-.
119, 122, 123, 126, 128
Foreign bills. 235
Foreign ccr1ntris3
Acle:tances between. 7, 8, 9, 74
Foreisn rrovernment. 66, 67
Forsan, J. B. 319
French Goverment. 27, :2c,, 29, 30, 424
French loan in U.S. 56
Garrison, Secretary. 316, 317
German. 4-)3
Garman -Iffiliatiom. 353
German asent.i. 58
German Allbaador. 58
23
Germany
?ro Gen-cein
5ee
Glass, Carter 100, 101 to 104, 113, 179, 258
Glass,-Owen bill 252, 264, 269, 270
Go1d. 28, 159, 349, 350, 418, 424
Good fi-tith. 3, 4, 5, 6,
Gov,?rnment banks. 20, 21
Government leposits. klendmant ?over of Secretary
300, 307, 309
Governor
118, 205, 29C, 291, 346, 352 to 358, 374, 385,
386, 389, 396, to 398, 397 to 402, 404, 407
Governcr3 112, 86
Hamlin, C. S. 5, 14, 44, 47 to 51, 58, 60, 61, 75, 76,
85, 89, 91, 92, 93, 97 to 99, 107, 109 to 111, 115,
117, 131, 132, 133, 140, 175, 176, 181,187 to 190,
205, 210, 212, 216, 217, 219, 258, 259, 271, 274,
276, 289, 297 to 299, 303, 304, 320, 323, 324, 325,
329, 339, 341, 343 to 346, 354, 356, 357, 361,
363, 364, 372, 373, 377, 380, 382, 389, 391, 392,
395, 419, 422.
Harding, Gov. 8, 51, 59, 60, 62, 66, 75, 77, 91, 100,
111, 114, 116, 125, 131, 135, 136, 165, 156, 185,
303, 262, 287, 335, 352, 35:5, 358, 365, 371, 389,
391 to 395, 399, 402 to 407, .t08, to 412.
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Federal Reserve Bank of St. Louis
175.
:
I
t
i
t
t
t
t
t
Tarburg, P. . (Cont.)
Xndex (Cont.)
Hardy, Fedferal Res-Irve !vont. 342 to 345
Harrison, 1 e 375, 376, 380, 381
hill, Con. 362
House, Col. 58, 268, 407
Huated, Senator, 373
Hypocricy. 242
Inconaistancies. 167, 168
Federal Reserve Agent. 161i
Inspection by directors
Bankers statements. 182 to 186
Insulting ranarks. 93, 94, 132, 134, 363
International Gold Fund. 34P
Intlrnational Hi?h Covnission, 272
Co. 267
Kuhn, Loeb
La.aghlin, Dr. J. L.
237 to 246
Le3a1 :proceldins. 250
LivAlity. 31
Lunch 22
Aap of ralistrictin. 249, 258, 260, 261
McAdoo, "7. G. 57, 61, 89, 122, 123, 126, 127, 13C,
146, 193, 267, 271, 272, 289 to 292, 303,
307 to 309, 347, 332 to 354, 359, 361, 371,
373, 374. 385 to 388, 390, 391, 413, 414.
Miler banks
'taa - 0opp3tition
Miller. 8, 59, 62, 125, 137, 189, 342, 350
linnaai)olis speech
Return of vital. 204
AielLents 681, 384
Use of 243
Morn, J. P. 18, 58
Aunt t ons acce;tancas
Sae - 73rown Brothers .agreament
Munition 3V-;orts. 181
Mutual ia7ings banks. 321, 362, 363
National banks. 309
National Resn.IPI issocLttion. 237
Neutrality. 19, 56, 223, 413, 416, 422
New Orleans branch bank 131, 147, 148, 16.3, 163,
164, 166, 137, 168
169
Ilorthorn Alabaxa
Notes
Purchase in open market. 297 to 299. 338 to 341
pden market purchases
Notes. 297 to 299. 338 to 341
Regulations authorizing
69, 70, 72 to 75, 76 to 81, 85 to 88,
91, 96, 102 to 115, 131, 132, 147, 1481
161i, 162 to 164, 166, 157, 232, 235
!mptarces. 298, 340, 341
Trate .(.!,
Owen, 3enator. 206, 227, 228
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Federal Reserve Bank of St. Louis
176.
wilrburg, P. M. (Cont.)
Index (Cont.)
Pawn brakering istablishients.
Central banks a° Rurope. 176, 177
7o1itica1 offices, Holding of. 292, 293
volitic:I. 6) 304, 324, 373
Protest, 9
Pro Garman 61, 192, 359
Soo - aormany
?urchass of notas in on mArket. 297 to 299. 338 to 341
Ra4ctionary. 320, 390
Regulation J. 32 to 38, 45, 53, 54, 66
RaguLation R. 65, 182
Renawal acceTptancss. 10, 11, 13, 32, 39, 40 to 42, 45,46
S31
Brown Brothers agreement
Republin 253 to 256
all* 253
Regublin '-):Arty. 304
Required rossrvas. 230
Ra33rve cities. 230
Reisrves. 269
Resiznatic:n. 59, 89, 176, 385, 387, 107, 408, 414
Rich, Fodsral Reservo Agant
Publicity plan. 154, 155, 178, 179
Salary clalam of
345
Savings banks. 362, 363
Schi:C, Jacob 357
Oacratary of tha Treas-lry
See - Government depoAts
Smith, Sonator
Bill for 2urchas3 of notes in open market 338
South America
See - Foreign Agenlies
Southern trip 233
Stabilization of exchango. 347, 421
Starek. National Bank 7Ticamtner. 293
State banks. 223, 322, 327
Stats Depart.liont. 415, 416, 422
Statamant of condition
Private bankers. 182
Striko of member. 360, 390
Stron, G07. 25, 26, 29, 33, 34, 35, 40,42, 45, 46,
17, 48, 40, SO, 55, 2731 3471 348, 419
adbatitution o. cc,32tances
32, 39, 40, 41, 42
Sas - Brown Brothers agreement
Nev York 12, 57, 61, 62, 146
Subtroasury we
Test case. Cutting down. 287
Throats. 400
Trade aceptances. 78, 91, 498
Troachory. 95, 145, 181, 189, 192, 409, 10
Treawury lamination. 130
sso - Domination
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Federal Reserve Bank of St. Louis
177.
,4
warbure, P.
(Cont.)
Index (Cont.)
Ultimatum. Cutting down. 203
United States bonds. 351
Unprincipled, 238, 239
Vice Governor, 388, 398, 401
Votes. 8, 114, 116, 162, 179, 197, 198, 333, 334,
344, 345, 369
Warrants. 120, 121
Weak banks 172
weeks, Seraftcr. 256
Comr.troller. 8, 41, 47, 51, 58, 841 97, 133,
140, 1421 1441 149, 155, 1901 276, 2/7, 281,
345, 351
Willis, H. P. 121, 126, 1271 128, 129, 150, 153, 174,
2351 247, 249, 250, 252, 260, 254, 265, 266,
2671 268, 273, 302, 615, 332
Wilson, Preailent.
390, 3971 399, 4021 404, 408, 413, 414
Wisconsin banks 221, 365 to 36 1 370 to 373
1. Tells Governors that Board has right to fix discount
rates of ite own volition, but July never
have to use it. 1
2. Reli.;count rate between Federal Re3erve banks should
be lel below rate of bank for which tne
reiticount is made. 2
3. Rediscount rats of 21Y4 offered by N. Y. to Atlanta
not .wale in zocl faith. 6
4. Says Federal Reserve 'Bank of New York felt AcAloo
was ao insiztent on low rates that they would
make one and Int it up to him. "They ought not
to have done that." 6
5. C.S.H. tells Warburg t?1,1 if this is true, n3 would
cheerfully vote to rerlove :wary officer
participating in the schema. 6
6. Warburg has frequently ctvlrged "po1itic6", e.g. Wolfe
Appointment, lower rates for Atlanta and
Richmond, etc. yet here we aea his own pat bank
playing politic'. 7
7. Claims Federal Resirve banks c,An libcount acceptances
under Section 13 based on traffic between foreign
countries. 7
8. l'arburg, Harding and Delano aaid yes; C. .H., Williams
and 14111ar said no. 7
9. Warburg said wished to have his protest reccrded against
refusal to grant Federal iessrve bank,
'rights
given ulder Federal Reserve Act. 8
10. says Boardle letter to Gov. strong of July 28, 1915,
refusing to permit renewals of drafts under
Drown lrothera acTotance credit, as erroneous;
'oetween
that they were merlly cash advances
acceptor,
drawer
the
and were valid if
and
within 6 months limitation. 28
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Federal Reserve Bank of St. Louis
178.
WItrburg, P. ii. (Cont.)
11. :1iller demandi.; that Warburg be called bach to consi -1er
new latter to Gov. 6trong. 32
12. Refusas to attend Lseeting at Subtreaxury, N3w York. 64
13. Says new letter to Gov. Str,na necessarily implies that
new acceptances may be gi-ren in substitution for old.
14. Agrees to C.S.H. molification, — that new lettar to
Gov. Strong to be considerad as a modification of
letter of July 26. 35
15. Tries to repeal whole ltter of July 28 but failed. 35
16. 3spec1a11y objected to our statement that question of
rediscount of such ac(:ei)tances by Faieral Reserve
banks was primarily for determination by the
Feleral Reserve banks. 36
17. Finally Warburg and all voted to send the letter with
0.3.1.1 s rtodification. 36
18. Warburg objects to the conferance held by Delano with
J. F. Aorgan and Col • HCIU53. 36
19. Raises question of neutrality. 36
20. Admits Feleral Reserve banks a_.e not Govrnment banks. 36
21. Says they are ao nearly Governmebt banks that we ought
to intimate to them that they shoull not discount
vaunition: ac:eptances. 37
22. Members lunch with l'arburg at Midday Club. 37
23. (Warburg liscussel the war and expressed delp sympathy
with Germany. Almost violent)
24. Warburg claims banks agree' that no munition acceptances
were to be financed. under Brown Brothers tgreement. 38
25. Gov. Strong denies this. 38
26. Gov. Strong tells Warburg the agreemInt was not male
specifically to finance war materials, but general
exports from U.S., but that inciientally war
munitions also r,ight be financed.. 38
27. Warturg claims these acceptances are really 10ans to
French Gbvernment. 38
29. Gov. Strong lenies this ani says that if Bank of France
lrew checks it would not be as a purchasa, but
merely to control the situation, as it hell the guaranty
of the French Government that no moratorium would
be applied, and. that the existing prohibition against
export of gold wouli not be applicable, and, in
addition, the Bank of France had agreed to ship gold,
if necessary, to pay the acceptances. 39
29, Gov. Stron3 ;aid the contract was made not for the French
Goverment as a purchaser but for the individuals
whc 'oought the American grols. 39
30. Warburg finally agreed that it vas not a loan to French
Government and that the acceptances were valid if
based cn exportations. 39
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Federal Reserve Bank of St. Louis
179.
(Cont.)
marborg, P.
31. Warburz *opposes
claira that these acceptinces
would net be liquid; said a draft drawn by a
French bank waa a fir.;t class livid draft. 39
32. Warburg claiv,s no renewals or subatitution of other
acceptances could be ma74e under Regulation
after delivery to the purchaser. 39
33. Gov. Strong points out that Reculatien J haa to do
only with discounts of ac,leptances by Federal REverve
banks and that oriy quef,tion before Board was as
to the power of member banks. 40
34. Gov. Strong said, however, that Regulation J was absurd
and should be revd'e.11. 40
35. Gov. Stroni said Regulation J seemed to imply that only
documentar:, irafts could be renewed. 40
36. warburg strenuously denied this. 40
id RevIlation J plainly rq•erred to drafts
37. C..H.
Aratin by banks in U.F. 40
38. Warburg denied this. 10
39. Warburg claims that no national bank could renew or
substitute a new acceptance after the goods have
been delivered to the 7orlhaser. 10
40. '111 Agreed that Board's letter of this mrning to Gov.
Strong settled this que-tien. 40
41. "-arburg sail Com,-,troller Wi11tas never inteniel to maka
any such rulinz. 40
42. All ,aid our letter to Gov. Strcng cle-trly covered this 40
43. Warburg, by inces,ant talking, i cl.rly trying to
hold w; any -.ction on Rrown Brothers agreement. 41
44. Warburg knew C.i.H. had to catch his boat for New
Belford at 5 p.m. 41
45. Gov. Strcng sail that under Wsrburg's interpretaticn of
Regal.,tion J, no draft could ever be renewed, for in
=at cases the acceptor stri-)s the documents
from the bill and give them o the purchaser, taking
badk a trust receipt ur othsr collateral, or often
!vaiving both. 41
46. Gov. Strong says that on Warburg' theory the bill could
not be renesed even if acceptor took collateral. 41
47. C.1. givds up his boat as he is satisfied that Warburg,
relying an absence of Williams and on fact that
C.S.H. mast leave at 5 p.m., is determined to hold
up action, although he knew Gov. Strrng must give
Brown 3rothers a finll decision today. 41
46. C.S.H. says interpretation of letter to Gov. Stron; is
a vital gaeation to be settled before final ansNer
to Brown lrothers; that if se could not now agree
in Washington for
.
he should call a special .neeting
tomorrow. 411 42.
threat; C.S.H.
49. Warburg flared op and said this was a
42
fact.
said No, - only a st?.tement of
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Federal Reserve Bank of St. Louis
180.
'arbur6, P. -1. (Cont.)
id he would not yield hie opinion but would
7 rur
50.
have no objection to the ..jority fixing the
interpretation to be put on the Strcne letter
by vote. 42
51. C.E.so.ys no, as no majority is i.;reeent, Harding
anti Villiaus not being there at the tirue. 42
b2e l',Yarburg than said he thought the inerpretation put
upon the iltter was a 2ossible one, and 1.1.ter he
said he wt.bs satisfiad that substituticns Nare
legal and withdrew
his objecticm. 42
dcied, how -ver, that such acceptances cou.lei
53. Warbur
not be rediscounted under Reglation J, after
delivery of the zood.,; to the purchaser. 42, 43
54. Added that if such accelatances wera offered for rediscoant
they raust 'oe refused, at lea3t, until Regulation J
was aLiended, and he intLs.tted the intention of
opposing any such
enent. 43
permission,
55, Gov. Stronze told. Warburg he hal, under .oardis
read the Board's letter to him to 7.3romn Brothers
who 'vere otisf Is I vi th it, and that ha had.
specifically lad them that he could sive no
as:.•,urance al to whether they wculd be held. eligible
for rediszcrint, or whether, in fl.ct, they vould
be rediscounted; that that que->tion ccult not b3
settled. until rais31.
56. Warburg also clainlel that this credit agreemant violated
the principles of neutrality and cited. sec. Bryan's
intervie-v of August lb, 1914, in which he
iisaGprovel the proposed French loan by American
bankers. 44
57. McAdoo calls Warburg at als to -tcncant or r3f-asinz to
attend the Sub ~,rea.sury role t inP. 45
'writes Warbu.rq, - anropos of his criticism of
Williams
58.
Delano for consulting J. P. organ, - and of his
criticism of C.F.;.H. for talking with Col. House,asking whether he had talked with the German
kr:bass:slur or with any German agents as to the
r 3inen t. 46
neutrality of this credit
.4111er and he may
Delano,
Warburg,
that
hints
59. Harding
resign if authority and status of Board. is not
O.
61.
62.
63.
fixed. 49
sug,ests proposed by-laws as to calls for aiesting
to which Harding says he and 'Yarburg will agree. 50
C. T.H. writes IcAdoc stating the pol,ition of Warburg
et als a to N. Y. meeting. 51
Harding sail he would have a-Aenderi Subtreasury me3t1.ng
but felt it was expedient to keep in 'N ith Warburg
pro German
-.:ossible
to heal off any 1
51
together.
agreement they might make
Board shall
not
ani
Suggezts that Federal 7e.33rv3 banks
for
•.-ates,
impose the (:ondition, as to custcmers
obtaining the co:an.clity rate. 548 58
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Federal Reserve Bank of St. Louis
102..
warburg, P. M. (Cont.)
64. C.S.H. prepared draft of vote along lines suggested by
Warburg but voted a.gtint it on Hardir.t:Is statement
that an emergency existed which •would not brook
delay. 58
- itself; Warburg •tnd
65. Baird voted to fi.x the condition, Miller voted !‘Tf.,. 58
66. Board voted to amend Nagula.tion J so .h:t either the seller
or the purc?iasfer right dr:Aw the oill, i.e. even
foreign Goverment. 59
67. Warburg objected vigorously but agreed that a banker 3ould
draw even for a foreign Goverment. 59
vizorously objects to motion that Federal Reserve
Warburg
68.
banks which II-we not -rut in a co..,.odity rate should
be forced to do so, but finally agreed that such
upon for their reasons. 61
banks snould b3
,ulati(2ne for
-Board issuing ree•to
objects
Warburg
vigorously
69.
61
open market yanthases of
70. Says our re:: )rve money -ihculd nct be used in comr.;etition
with member banks. 61
11as tnterial vhet'Aer or not the Federal Rrve
it
71. Said
.04.-inks mats their ecioenses or dividends. 63.
72. Warburg sail the Feleril Rerve banks have not asked
for this power. 61
73. Scoffs at C.S.H. :tatement that it is duty of Board to grant
this poser. 61
74. 'Varbur,; took just the o2-)osite position ,shep he urged that
the ac7,ept•ince regulations should authorize Federal
Reserve banks to discount accentances based on tra'fic
(See also pg 8)
between foreign countries. 62
a
caz.Lttee to draft
apponted
warburg
and
Harding
75. C.3.H.,
open market regula.tinns, including domestic bills 62
76. C.S.H. drafts regulations and gives Warburg and tiarding a
77.
78.
79.
80.
81.
82.
83.
00.9Y• 62
Warburg and Hardi_ng give C.S.H. a draft of report against
any open market powers, even for rio estic bills 62
, prepared a draft permitting the purchase
Warburg, howrrer,
of trade acceptances, but aid he should vote
against it. 62
'varb•urcz objects to having domestic bills put in same draft
with other 1)1115. 62
Warburg says he 111 openly 0?pose any open market !lowers
aa to domestic bills. 62
says Federal Reserve barks are not regular banks •tnd
should not be yerrnitted to use reserve money, pail
in by mernber bank., to compete with -hem. 62
The Governors insist on a 1.andatory sy,tern of cle:A.ringLI
Wartir,F, says the voluntary plan Nill .vork
satief,ctorily. 62
he has an opinion from r.4-ctton
'varburg does not tell
Igainst the LvAniatory system of clearings. 64
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Federal Reserve Bank of St. Louis
182.
Warburg, P. M. (Cont.)
84. WI.Maras asked if any member haxi a copy and Warburg
did not respond. 64
85.
pre'3ents lraft Qf minority report on open :ni.trket
rowers. 64
86. Warburg insists that Governors be present iLt discussion
of open marhet powers. 64
87. Warburg much distressed at the stateLoent cf Governor
Puncher that he fa-Torei open market powers for
icrnestic bills. 65
88. Tells C.S.H. .ve will shortly har from the banks. 65
89.
Y.H. tells !dcfitdoo that Warburg 3t als .4111 probably
resign if Miller's resign'tion is called for. 66
90. 'IcAloo says he doea not care. 66
91. 9ardint,
C.S.H. a, cooy of his aril Warburg's reply
to his minority r3port on open market regulations,
favoring trade acceptances and domestic banker3
bills. 67
92. :lost insult'-na, to C.S.H. 67
93. Sail that earnin
or tportant to C.S.H. than welfare
of Felertl Reserve system. 67
94. Vary sarcastic as to
pressed -leire to keep
Federal Res z.-Ye banks from lanc-oishing. 67
94-A. 8-ooke of lanqer of low rates. 67
95. Warburg evidently reels that Federal Reserve banks are
sipply representatives of the me uber banka, and
that the public have no interest in them. 68
96. Tarbur,: has vritten
Reserve A_3nt Curtiss at
13o-..tcn oosing open market r,LlllatiCns.
e haver
told Board of this. A treitcherous acticn, as
matter is Aii.1 in hand; of c.ittee. 68
97. W-irburg shows Willis a letter on acce-3tance regul iticns
sev3rely attacking
and
98. C.S.H. writes Warburg for a copy. 69
99. Thela.rk tells
he vas rhosn
co)y by Warburg. 69
l'O. Cyla3‘i. says had interview with Warburg at hi.s house. 69,70.
101. Glass says evidently a "3 n't01173 division in 3oztri. 70
102. Glass warned Warburg th.A if Boar4 dil nct publish open
market reTilation.s, he 'could attick it in Cons .0,38 70
Glass
103.
says he could nc t convinc. cirburg. 70
104. Glass says no possible doubt of 7,owir or Federal Re.lerve
banks as to open market regulations. 70
rling pre:ientz re)ort of l'raft,urg and himself ravoring
105.
a letter to Federal Reserve agents on open lairket
pavers in plale of a regulA,:ion. 70
calls up 7.ritter. 71
Warbur
106.
eroresse
-, dissatisfiction with com-Attee's iltion 71
107. C.8.7.
3orinitt,e
}lad Lids no reports, -bad
say
Warburg
i
108.
_Lierely interchanged views. 71
0.S.H. denies this. 71
0: 0
10
19
..H. tells W-Arburg that •rhill the proposed letter
gives certain open market :)orers, it ..vas really a
a letter aryl that he should
reg-llation disgaised
vote again.,t it.
n
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Federal Reserve Bank of St. Louis
183.
WeLrburg, P. M. (Cont.)
C.S.H. gives copies of his minority report on open
market pow3rs to waiburg and Harding. 71
112. Referred back to committee for flirthAr report. 71
113. warburg said Glass told hi.. he recognized the danger
of a regulation at the preent tiia, and a.,:rov3d
a letter irbteal. 71
114. ComAttea votes to approve a letter instead of a
regulation, Warburg and Harding votin,-, Aye and
C..T. No
72
115. At Board meeting C.S.H. mcv33 to st bstitute his
minority report. 72
116. Delano, Warburg and Harling voted No; C.3.H. and Williams
voted Aye. 72
117. On main queitic n C..H. voted Aye as this Whil all he
could get. 72
118. Warburg mant5 rcf:Aation in Go,rernor, and to be Governor
himaelf. 72
119. Warburg prepiAres a report against foreign agencies cf
YeAeral Re=erve banks. 73
120. Warburg's comAttse reported in favor of waiving the
warrant regulations to p riit Federal Re3erve
rrants although the
3arik of 3oston to buy
pap-illation might blunder 10,000. 73
121. Voted to grint this where the varrants were registered
under lass. law. 73
122. Maio() tells C. .H. of report of Warburg dcraAttee
against foreign agencies of 71lera1 ResAerve banks
in South Ameria. 75
123. Said report Wall very -ti .- :ourtecri.s. 75
124. Willis sail:Warburg'e hous3. 77
Invited to ccrfirence
were present. 77
Cotton
and
Harding
1254 Warburg,
126. willis said: Warbura had report bitterly attacking lcadoo
as to Federal Reserve bank agencies. 77
127. Mite 0,00931 it and said, if anythtng ';ere needed,
resolutton bitterly
Warburg should put in
77
attacking
. 128. Warburg iraw 4 series of reg.alations whizh Willis opoosed
altheuzh he said they were better than the
original report, which made Warburg vit., angry. 77
77
129. Cotton rather sided with Willis
130. Cotton told warbur7 that the whole country waa laughing
at Board for its lattnation by :40Adoo. 78
131. C.S.H. sends clarling. a letter as to petiticnof New
Orleana 3ranch bank for authcrity fx buy in open
marIcst state bank ac:e)tances and. 6ives Warbarg
a coy. 78
132. Warburg writes a rather offensi-re ltter a,king how
could favor the p,tition. 78
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Federal Reserve Bank of St. Louis
1b4.
•
•
•
•
Tarburg, P.
(Cont.)
133. WL,rburg calves C.S.H. a co.T of his letter on acceptance
reculhtions inv,11.01 he attackr,
, Williams and C.S.H.
for constant change of views. 79
134. jj, is studirualy insultin. 79
135. It refrains friar, attacking Harding, although he has
constantly changed his views. 79
136. Says, in effect, that Harding loneN
kneA 12tt1e
nothing at out the acceptance question and Nas
willind to abide by his, Warburg', judpaent. 79
137) H3 lets AUler off very lightly, although na has
138)
chanced his views like a weather vane.
139)
7W
14C . Very male vith
Williams and faintly implies
they are influenced by some ifLproper :otivs. 79
141. Utterly ignores the opinions of our counsel. 79
((:'-‘le scrap book for re-7].y of C..H.)
142. 'Y.Irburg tells C.S.H. he has in Cotton a copy of
C.S.H. article on power of Feieral Reserve Board
over Willia;cs as to
aminers rel-crts, who k-11,1
he hi not ,, one over it carefully butat first
blush vas inclined not to agree vith it. 80
143. larburz claims that entire reports, including tl-le
yellow sheet, of naticnal bank examiners should
be given to Federal Reserve Agents. 81
144. warburg seemed ilea-anointed that William was willing
to concede anythimg and is evidently spoiling for
a fight.
81
145. Warburg concealed from Beari fact that he already hal
consulted Cotton as to examiners reports. 62
146. Very inlignant at being cAled to account by d'haltioo
as to New York meeting. 83
ill nct hesitate to :all C.O.H. to account
rburg
147. '",
as to acceptance regulations, and New Orleans
'Branch bank petiticn. 83
'.S.H.
replies to W1rj' letteras o petition of .
148.
Nev Orleans Branch 3ank. 83
149. Williams writes 9oard as to being dro7ped 'rau
cannlittses and Warburg said he voull, if retained
on the files, fill a me cranium of his own. 83
150. Warburg and cau_ittel show Willis a plan for cutting
igvn districts. 85
151. Details of plan. 65
152. Willis says rarburg wished to transfer Boston to N.Y. 85
153. Willis points out to Warburg at als the faults of the
plan. 85
154. Bitterly ogposes a Board hearine, to Teleral Re.:;srve
kgent Rich on his publicity plan. 87
arir. 87
155. Very ugly at Williams ruction to grant a
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Federal Reserve Bank of St. Louis
ZOO.
Warbarg, P.
(Cont.)
15bd. Trie to persuade Elliott to change his or,inion as
to cutting down of districts. 89.
Favors return of capital of Federal Reserve banks. 89
156.
157. USSEI fict of deficits as an imperative arg,Iment in
favor of paying back the capital. 99
158. His argument implied that Federal Reserve system
deDendel an good will of the member banks. 90
5aid if they were irritated they would make no voluntary
deposits of goli, which would leave Feder-t1 Reserve
banks helpless when sold 13 demandei for evport. 90
He evidently wants to clip the wings of the Federal
Reserve banks and prevent any competition with
member bilnks. 90
Evidently willing to cri2:71, whole Federal Reserve system
to please Iteldber banks. 90
Ingle says 1:arlyurg ok:csed open !arliset purcha3e9 for
fear of offending member barks and now wants to pay
back capital for same ream. SO
162. 'Totes against patiticn or New Orleans 3ranch 13ank to buy
state bank acceptances in open maket. 90
Says if clone, should be dons under a general reralation. 90
164. Board votes to grant it. 90
165. Warburg furious with 1i:ariin:1 for voting for it. 90
166. Warbur3 is justified for every word in report of Harding
and Warburs was inconsistent with this vote. 91
167. Warburg votes for regulation lovering open market purchases
of state bank Icleptances secured by commodities.
In ibaolute disregard of his previous views. 91
168. C.S.H. thinks Warburg is :,cared because of stenogrisphic
r9.00rt of his attitude as to payinF balk capital,
and good will of member banks. 91
169. Wants to annex northern Alabama to Cleveland and Harding
objects. 91
170. Cotton says reasons aJvanced by Warburg at als for cutting
down vere weak and inconclusive. 92
171. C.S.H. feels ii;?roper for Warburg at ads to consult other
Board members, .ind not all, to secure majorIty for
cutting down. 9;
Warburg
does not agree with statement of Willis tha.
172.
Federal Reserve banks should help 1 weak bank proviled
it has good paper. 9
173. Warburg.denies that Federal ieserve banks are co:Dmercial
banks. 93
ar Federal Reserve banks for, if
174. Willis asks NAr-curg
help
weak
having good paper. 93
banks
not to
175. C.S.H. tells Warburg that if the member banks op2.0ited the
competition involved in earning of expenses and
dividends, an Aiaeniment might be introduced to
pert Fediral Reserve banks to receive deposits
from and teal directly with individuals. 93
.. .
t•Peraenimet00,--="1—
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Federal Reserve Bank of St. Louis
186.
Warburg, P. , . (Cont.)
176, Warburg saiA when any such pawn brdking byF,tem was
established he wou]d not be on ',ha Board. 93
177. Ha evidently seec:a to think that the great mentral
banksof Groat Britain, Germany, L.nd France oxr!
9own brokinc etAablishmenta. 93
aign
178. Warbura opposes Federal Recerve Adent Rich
for publicity. 93
179. Vote, .AGainit Riot', plan. 93, 94.
160. Glass very bitter against Wr,.rburg for cutting down plan 94
181. C.S.H. is satisfied IVarburg is bitter Against the
atainistration because of war munitions aKports
and is trfing to deztroy prestige of administration
for ;assage of ?edema Reserve Act by bringing
about changes implielly atnitting its fAilure. 94
182. c;trongly fivors amemtaent to 'Reirilation R so that
Accsrting bankers cln 41V3 statement of culdition
to Federil Reserve Agent And Governor to remain on
their -Arsonal files and not subjlct to inspection
Toy directors. 96
183. Says no b,lnker would like to have a director like Palmer
poring over his statement. 96
184. Opposes C.S.H. su,ggeGtion that this rule be ap_plied
all acceptors in fir 3t instance, the directors to
have riaht to 33.3 the rsoorts whenevr deemed
necessary. 96
185. Says any director, of course, could vote to decline
to diacount ae,cs?tances if he were not permitted
to eve the statements. 96
196. Very ugly because Board voted to consult Federal
Advisory Council on this wit ter. 96
, of coalUt el on i'doard'1, c omAttsos
187. :LS.H. attends -4eltinc
No change. 97
later drogpsi frcal Boston Co—ittee while Warbur
,.H.
0.
188.
and Delano took the 0hairman;hip of 6 banks and
EF.riing and Miller the other 6. 97
who as not on the cmilittee, consulted the
Warburg,
189.
somaittet after its meeting, at which no charv,sa
Auer, midi, ant tozether they re-ported above
:hang's. 97
said C.S.H. kaj uietly "slipped, off" the D,oston
"farburg
190.
Cowalittee and that it '9ae determined to drop
0.5.7. and Williaa.a. 97
stiteaent is fals%; aa a fizt, however, he
Warburg's
191.
bas been arrogating 3oston .attars to himself,
ignoring 0.3.H. 97
the
192. C.S.H. believes Warburg is trying to embarrass
99
administration for pc-German pur,9oiss.
McAdoo ascribe, ,ant uctive t.) other members. 99
193.
question; ;hat
194. Says 3 or 4 3,3:ys au;le for cutting down
matter mnst be decided at once and will 'crook
no delay. 103
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Federal Reserve Bank of St. Louis
187.
P. I. (Cont.)
195. Favors cal1in6 a rile,-ting tomorrow to settle the quef,tion. 103
196. says co...i.littee report merely asks Board if it wishes a
definIte plan prepared. 103
197. Votes to lay on table C.Y.H. resolution. 104
198. Votes to table Willitmus motion for a stenographer. 105
199. sa.:,s if Congress asks noard for report on cute.;ini3 down
the 7.0-tri should lecline to 71.7a it, that it
would 13tab1ish a bat precedent. 105
20':. Says he should like to real the cora-little report again,
that he hl not yet read it canrletely as he
only received it Sunday p.c. or thit ;ricrning. 1C7
201. Said, he would like to strike (rat .inyth .4 ng vb:Lch might
disturb the public. 107
202. Sail. comAttee, if sc instinctel, could report a plan
for cutt ing dosn in 2 or 3 days. 108
said he hi re- orted to Warburj et als his
Thrding
203.
fof
talk giving an ulti-natiza to
108,109
204. 'valtrirg speaks at MI -Ineapcli, -trongly Pavoring paying
back of capital of Federal '2,,erve banks. 110
205. Ifarburg -.ys Governor is a ..ervInt of Ped!ral Reserve
Board and ghoul 1. not htV5 trritten Pre,ident
without :Board's lonslnt. 119
206. Very bitter at letter frr7r. Senator Owen prote;ting
against cuttinz :own; says it must be amwered. 121
207. Denies he ever alvocatel transt5rring Boston to New york 121
ittee p-it in fe.lse position by the oT,;- in'.on of
2C8. 5ay3
Attorney en re.1. 122
209. Said. the speed with Arhish It •Aras obt:iined shows that
"sone one" was trying to ive irnpres .icn that the
Board was contem)lating i,uch .-Ictirn. 122
tr
as1.-ts if Warburg is referring to PreF.ident Wilson
•
•
•
210.
ewhat abashed, he said.No. 122
and,
said:Tarburg
211.
Board placed in a position detrimental to its
tsefulness and dignity. 122
Dr,:ittent. 122
for Cm E.H. to write to the'
a.r;?
!Ixtraordin
.
212. 1
to
action
postpr.ne
to
iagreel
have
Would
zladly
213.
obtain oi)in; on of Attorney Genlral.
214. Had. no intention of facing a ,rote r-4,t londay meeting. 122
215. Glad to discuss questim in every 3.epect. 122
216. C.S.H. introduced resolution for delay. 122
217. C.S.H. reminds "larburg that he said at outside 2 days
ample for discussi:n, nd. that matter must be
decided ..s.t once. 123
3AVe by
218. Says com:ittee Noull nct have asked. any action
untrue. 124
ly
grotesque
Board.,
unanimous consent c.f
nce
remonstra
a
'like
will
219. Delano e11s C.S.H. that Wartarg
124
.
as to C.2.H. letter to ?resident
rburd reminded 0_ • _'3• H• that at zaeetins of Nov. 15
220.
he said he would cancel h13 southern trip, this
shonvics he did. rot ,ecolct a vote on that d.v. 125
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Federal Reserve Bank of St. Louis
Warburg, P. M. (Cont.)
221. Later, however, he said the pressure was so great he
Should have to go. 125
222. 6ays ha wishea to Jo on rscord with firn, unchangeable
belief, that the Peteral Reserve system could
not succeed with 12 banks, ant that they should be
cut town to 8 or 9. 126
223. Complainal bitterly "ipcause 'Board hal not consulted
Attorney General as to state banks and an
neutrality. 126 .
224. Thinks Board should grant the Wisconsin banks petition
beause the banks vanted it. 126
225. Very mad *hen C.3.R. said 0)inion of Tlliott ant cotton
against the mandatory -olan of clearn,-Is was wrong.
127
127
now.
it
226. 3.111 if any one bad a plan to present
227. Very mai at remarks of Senator Owen in his letter,
on clearings; seemed to think it was aimed at
him, and that C.F:.H. had inspired it. 127
en hz..s never mentioned
228. C.S.H. tells Warburg that
Clearings to him, sad this seemd to mollify him. 127
229. Warburg favors a letter strongly alvocating the
pr000sd clearing plan. 127
230. Said he would favor waking any city containing banks
des3ining to enter the 11-tr1.rg system a reserve
city, thus increasing its required reserves. 127
231. Also st.id he would favor putting -tny banks declining tc
enter, on a black list. 127
when he .p ointel o.ttsome obscurities
232. Very luoly at
in regulatIon covering purchase of state bank
acceptances. 127
233. Goes south to apeak. 127
234. Itarburg sends 3oard A letter covering clearing system
but asitttng reference to a black lit. 127
235. Very ugly as to any regulation remitting purchase of
foreign bills; said the mebers knew nothing
about it. 12
236. Intimates to Willis that he knew nothtne about it. 128
237. Langhlin says:Warburg was one of leaders of National Reserve
!,ssOziaticn. 129
warbur ti; la absolutely um rincipled. 130
238.
Varburg would to aqt kind of dirty work. 130
239.
Aldrich disliked his., and said he had dons little
1190:
or nothing to help. 130
Warburg was crazy to get on Feitral Reserve 7cari.130
241.
ffis ts.Ik of sacrifice was huisiug and hypocricy. 130
242.
Believed Warburg secured his confirmation by use
243.
of money. 130
unfit for Federal Re,erve Board. 130
Absolutely
244.
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Federal Reserve Bank of St. Louis
189.
Warburg, P. M. (Cont.)
245. Slupl:r an inveztment boni e.nd stock broker, and knew
nothing cf coru..orcial credit. 130
246. Tarburg flugtt Laughlin to prevent his appointment to
Federal Reserve Board. 13n
247. Delano asks Willis if Warburg had shown hin anything and
Wil!is said yls, a report and map on cutting down
districts. 131
248. Delano .id would have spdken before of this but he felt
TarburE might not like it. 131
249. War,narg showed "Wats a report n1. map on cltAn./ down
but would not let it 3o out of his office. 131
250. 17arbur3 toll Willis he did not cAre if legal procaelinss
resulted frail 3utt'ng down, which Nould result in
trcuble for a fe-v Neek3. 132
251• C.S.H. satisfied Tahrurg et als Nere in 1 ieliberate
coniipiracy to jar through cutting town of iistrilts. 132
252. IlarburT exerted every pressure on Willis to control
Glass-Owen bill. 133
253. Warburg said hai better not speak 'yefore RepublicAn Club
ublin. 134
cf 7. Y. ,.%4a he was a
254. This is the 2nd announcamant of this fact. 134
255. C.'77.H. thinks he toll Senate Ca4,ittee at it. hearing
on confinaation that he hal no politics but would
have voted for Wilson hfl he had a vote. 134
256. Also last year, when attacIced in Senate, he Nrots
Senator weeks he las a Republican. 135
257. Insists on a camclate report in 3oard minute as to
4uarrel over cutting lovn. 135
258. Objects to 3iving C.S.H. the report of 10.11 ittee on
jutting do,un and the mwc accompanying it. 136
promised never to speak
259. Said he Elight 13ree f
of it or shoN it to any one. 136
280. Willis said. Warburg gave hi: a plan of cuttin3 down and
it on a map; that this plan
asked hi L to
abolished 3ostcn, among other changes. 137
261. Narburg gives C.S.. 2 plank neither of Nhich abolished
Boston. 137
262. Warburg said Harding alone wanted to abolish 9o3ton,
because Atlanta and DiAlla were to be con.:015.13.tei.
137
in
stAtemlnt
263. Ilarburg, in insliting on a lanplIte
minutes AS to cutting down dispute, klilt
Did not insist,
N9 must not forge the records.
however, upon having anything except leport,
resolutions, votes, etc. inserted. 138
264. Willis says
an called t his office and askel fc- 4 co.v of
Glass Act for Tarbirg. 140
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Federal Reserve Bank of St. Louis
190.
. .
Warbur6, P. 1. 'Cont.)
Willis says (Cont.)
265. Wou11 not give his nan-Le. 140
266. Willis 2.3(11ined. and man said!Warburg ilas a long aleraory for his frien1.0 and his
nemie.3. 140
267.
Secretary ficAdoo is under he ,..7y obligatic,ns to Kuhn,
Loeb 8.- o., nt he will certainly ei
-- ,re Warbur
a co...4 as soon as ha gets one. 1.10
268. Willis also iJaid.:
(301. tiouse :
- ot a co..
- y and gave it to Warburg. 140
Warburg wrote a latt.er froir4 Switzerland attkng
269.
the bill, especially the consoli -tation of
reserves. 140
270.
?;.iaid :Lis would draw ;Lcney from the stock exchang•
and. that lisfavored any Juch intereerence
-sith the stock e)cchange. 140
271.
LAG too says he has read
reply to WLirburg'
article on -vzceptance regulaticms and 31'71334
C.3.9. to send it to Warburg. 144
272.
idcAloo says will
k Warimre to go on International izh
loukaission. 114
273.
?fir is says he hes.rd TVarb-1.rg telephone to Gov. Strong
to postpone next M33tIng of Federal Advisory Co-uncil
until .s.fter Board publithed its annual report, aa
it was 3ugge-.;tad that a 3 tatei3nt of Council's
expenses
insertsi in it. 144
274. Warburg insists on keeping in the r..ef rence to C
writing the President as to cut -,ing (loan, in final
draft of conk ittee repert. 145, 146.
275. Discussion :II) out ccuraittees intent o (stabliah a branch
bank at every -place cut down. 146
276. Cays C.S.I. and Williae.is should. apologize to co.'icittes. 147
il1tz.assaid he had been e.c.t-decttn.• an apolcv fro::.
?-77.
Warburg et Ala. 147
iii anyone not agreeing to cut down to 8 districts
278. Warbur
vasai anew of the Federal Reserve syste:n. 148
279. Delano confir-Lel this but said. Warburg had lost his
te:uper and tbat nis sorls should not be recorlii. 146
280. *Parburg 3 talks 'Nith Dr. Albert. 152
o the final draft of
281. Warburg says if Vtillia-uo
p1i
lcm.ittee report on c-ittinz down, the colir.ittee
will change it and. put in. sc;-:le "rasty" things. 154
282. Warburg says:
Cow., ittee has sho,..rn it --vs,s right in all it di i.
Felt obliged to kee-,.a in re?ort fact that Attorney
General vas not 11ViS31 that -iranche'. would.
be established in districts cut down. 151
283. C.S.H. points out that the ,connittel report lid nct
nticn branches. 154
284. Further discussion between C.S.E. and 77arburg on .thiz point 154
285. Warburg ,,aid 1! Federal 31..i1/.17.3 bank refusal to e..-.tablish
zilch bran".ha:2, the .3oard..vcsold again create a
Federal Rasrve bs.nk. there. 154
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Federal Reserve Bank of St. Louis
191.
warburg, P. i. (Cont.)
286. Different Cut ting clown plane of warburg at als.ih
different plans. 154 A.
text case, two
287. Favors Tiardingis wuz3estion that as
districts be consolilated in spite of ()Tinton
of Attorney Generca. 155
Wtrbur would home thwarted the clearing
288. Gl3
systtlm even if Attorney Gener0.1 held vve had
maniatory povers. 1b9
269.
thinks Warbu.rg dislikes Aim because he can not
control hi., and thinks he can control McAdoo 160
290. 4cAioo 3ay s Warburg is crazy to be Governor. 161
291. McAdoo suggests holding out to Warburg this as a bait. 151
292. Warbur, 3ugge3ts slignt n.olification of .4cAdools
resolution as to holding.political offices. 16.5
-,erely
293. I.Vaelurg denies that above resoluticn is -.,
prospective and says Secretary introduced it as an
easy say of getting rid of Starek. 164
294. Sends, sith Delano, latter to Federal Advisory
Council askine; recommend3.tion as to raising
discount rites to p-event 132eculati on by member
banks, etc. 167
295. Votes in favor of deci6nating Fleminc as Deputy
Federal Reserve Agent, Kansas Cit:r; ,_Lays Le haa
ha.1 more banking experience th•en Ialona. 169,170.
296. Objects to statement in annual report pillow ng what
Board has -lone by 'Ara:, of lowertng discount
rates; said in future noardlnight not •'rant to
taxa this responstbility if expansion should
result. 174
297. 6trongly objects to C.S.H. prol:osei atiendment to
.erve Act permitting Federal Reserve
Federal Re.,
banks to buy in open market noLas bearing names
of t•vo or more responsible indorsers. 175
298. Said that purchase of trade accer)tinces would griAtly
enlarge tn3 scope of the open market posers
and that notes )hould not be added. 175
motion on table. 175
299. Votes to lay
addition to annual report by -"ay
an
300. 7id.rburg prepares
an amendment to Federal Re,:erve
of
of sugges Lion
of secretary of Treasury to
power
Act limiting
in Federal lie3erv3
funds
d.epo3it Governmant•
Federal Reserve 3oard,
of
consent
banks, vithout
reports,
examiners
also as to loxptrollarts
3oard.,
lieserve
Federal
to
relation of Comptroller
eta. 177
301. The amenciinent stIted that there ./vaa•no present trouble
with Coull;troller but trouble might arise in
f tur3. 177
302. Warburg tells Willis he nas got the votes and shall
- rday. 177
insist on put-Aing this thrcragh on ..1,;
himself
for
303. (1.5.H. prepares list of a-rieniments
.f.cAdoo. 179
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Federal Reserve Bank of St. Louis
192.
1
• •
. • .
• • •
Warburg, P. A. (Cont.)
304. C.S.H. satisfied Warburg's intent is cfurnish
political amunition for ReLublican Party and
that the others, prerhaps unconaciausly, ire
lending ther.:selves to this rLoveraent. 179
305. Discussion of
rburg's amendr(ent. 180
306. Waeourg says Harding redrafted his amendment. 180
307. Warburg claimed that the 15 million deposits of
McAdoo in Federal Ret:erve banls hal injured the
Federal Reserve sytem, and had interfered with
the market fcr rediscounte .itch was necessary
for other Federal Resent,: banks. Gave fignres
to magpart this. 180
308. C.3.11. as Warburg ai,lenlment should atats specifically, what is really meant, - a direct attack on :dcAdoo
because of Government dsposits. 181
309. C.S.H. forces Warburg to admit that his plin would
necessitate legielation prevenUng AcAdoo from
making Government dApositii even in national banks,
without consent of Federal Rerva Board. 181
310. Agreed to
it Warburg's amendments from annual report,
Nith right tc any 2 members to send proosed
amendments to Congress on or befor June 30, 1916.
183
Joulmination of Federal
311. Warburg reads msaorandum oa
Reserve 9ank cf Philadeljthia as to amount necessary
to /).3 invested to earn expenses and dividends. 184
312. Quays its capital is too large and should be paid back 184
313. Says it shows concl,isively there Should not be over
six Federal Res3rve banks, .;.ni that capital .11cu1d
be reduced. 184
314. ClatAl that all investments mean dpletion of gold
and that the gold rea3r7re of St. Lcuia bank was
only 30% and even then it was not earning ita
expenses. 3.4
315. Willis says Warburg's argument is a gross fallacy. 185
316. Says See. Garrison could have done nothing else than
resign. 185
317. Federal Reserve "Boari ha i precisely the same relation
to Congress -la lid Garrison. 185
318. Said Congress Vas a mass of ignorant wen, interfering
Nith matters of which they knew bothirk, - that
such a conlitIon magi intolerable. 185
319. Vary sore at Forgan's statement in Federal Advisory
Council that it was absolutely necessary for
Federal Reserve banks to 'earn expen3e and dividends
and that the competition with member banks would
be negligible. 186
believes 'Ta-bur?.. o be 4 reactinary to the
320.
last degree. 191
321. Consideration of Warbur31 3 amentuent for admission of
mutual 3avtngs b[.4nks to Federal Reserve system as
associate a:embers without payment of capital. 192
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Federal Reserve Bank of St. Louis
Warbur, P. ;. (Clcnt.)
322. Warburg proposes ar;lendment permitting state harks
and trust coupanies to join Fedlral Re6erve
syste, without payment of. capitza, as
meitsbers, but with right to rediscount only
throngh member 'hanks. 192
323. C.S.H. op:oses the state bank ameniment in wri'.:ten
mernorantizr.. 192
324. Bitter debate. Warburg 5ciya (1.'=;.11. is :afraid of
political opposition. 192
325. 0.5.14. tills Warburg such an ,ii;.inimtnt ..cculd be taken
by bankars ail an airatasionth.it the Federal Reserve
system was a failure. 193
326. Warburg said Federal Rei3rV1 ay.;tern was a failure,
unless radically amended, and in 5 years this
'moral.' be ger-orally
193
327, Warburg evilently wants to o ...way with capit%1 payments
by state banks in order later to sec,are pa.ymant
back of cApital to national bart:s. 193
328. Warburg claims that 3roderick report on oton bank
shows nece..isity for pl.ying back part of its
capital. 193
329.
.
f 11 3.o ma Lo ranti
tspu ins this. 193
petiticn of Conn. bLi.nks 194
330. warburg wants to arInt
means :donF, lines Of
"due
1..egard"
331. Claims that words
194
absurdity.
present, bustle -13. An
195
agAinst
cUtn.
332. Tells Willis he will vote
...learingt
until
'petition
333. Votes against postponing Conn.
ayteestablit.thel. 196
334. Votes against transferring "?airfiel CTinty and
po6t.poning rest of petition. 197
335. Taemr3: whispars scaething to Hardi_ng which leads him
to dro,,.; his threat to ub1ish his report on
Conn. -)..inks etitiLr. 197
336. warbar g says he viii never vote to ..ransfer any piirt
of eastern Conn. or iiass, to Pi. Y. 3Cti
337. Said he ould river Vote to put the 7.Y. line farther
east thAn r.!onn. River. 205
lith bid siving paver to
338. Warburg bitterly attacks
Falaral Res aryl barks to buy coariercial paper in
open .a,a.rk et. 208
339. C.,9.11. tells ITsarturg he favors it and viii vote for it. 208
Referred to law ccirmittae. 2CS
341. 3.3.H. tells 'Varburg ha shall press for a speedy ei crt.
208
iaore Ursa
asked
for
he
because
i11er
indignant
with
Very
342.
to conslier F.arly aointr.ent. 210
343. VOt3.i again:3 postponemert. Z10
344. Votes for 7i:ix -V. 210, 211.
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Federal Reserve Bank of St. Louis
1%.
Tarburg, P. A. (Cont.)
345. Votes for 1.:- aymenf'. of Williams salary claim. 213
?resident to redesi6nate C.3.11.
346. 1ZcAdco says ..,111
as Governor, but it will break Warburg's heart. 224
agrejed with hirl that if
347. Gov. Strong
}^.zere -:cru.qht bills in
Fed.eral Res3r,re bani.s
191-4 it woull have stabilised exchange. 226
- rburg how the rate ..vou1d. be
348. Gov. Strorr explains to ',41 i
fixed on .)1113 tak3n from lank of Fnglard. 228
349.
rburg refers to plan for an internitional E old nini. 228
350. Aller tell:A War'..)urg he -rill not agree to ar..anitant for
issue of Fer1 Re4erve note3 against gold, even
as an 3Liargincy proDoiiti ,n.
230
351. Warburg controverts Willians statement that Feciral
lieservrt barks should not caribine to depress orice
of Goverment bonds when they were buying them and
to increaai price 'vh.en they were selling them.
230, 231
ys if :larding is made Governoz, warburg should
c10
352.
-ae Vice Governor. 232
J. .c:tcloo 3.4s Warbur7 3;'21 not be Governor, if fcr no other
reason, because of nis Gerraars affiliations. 232
34. l'arburz 'vas c ple:isant it meeting that C.3..thinks
Adoo rxt have •)ro:itsed rotation of Governcrs. 38
.355. _IcAcioc says if Any chan71 in qovernor, it will be
Harding and War-ourg. 239
rburg 3xpacts to be Governor. 239
356. C.7.H. tells Meaco,
'out for Wilson merlly to help
c1.13
Schiff
thinks
357. C.S.H.
7arburg get the Governorship. 239
says' Warburg viii be furious if Hrng is made
358.
Governor ani rtll feel that Harding has iouble
cross 3d him. 240
.559. .4cAdoo a•all Wilson wo-all be injured if tie put Warburg, a
pro Cerma.n, at head of Fediral eserve systiva. 2.40
3ay3 warburg et als hive "struck" and not to
350.
yield will injure the aftAnistration. 240
C.S.H.
t311 McAdoo plans of Warburg 3t als. 241
361.
362. Taeburg f113s mex.orandum in reply to that ot: C.7.H. on
Congress:Lan Hillis bill for savirza banks as
memb3rs of Fe iera1 R3rVe sys teL. 242
363. 5tate3 in memorandum that he is aware h haa used sole
expressions loosely and does not wish the memor-indum
to b3 used as basis of a 20 page raj'..inder by
22
364. vio,rburg tells Allen to 33r11, taring his absenc
re;?orts on Boston -lank. to Delzino, ..Ind Allen says
Delano gut a circulating tag on one report
which Iii not include 0.S.H.'s name. 24:
365. Warburg objects to zranting Wisconsin 4vnks petition
.ilthough Harding has repeatedly told rt33 that he
-vanted it grintei. 249
reopening Wisconsin banks petition; says it
366. Objects
would be undignified ind would stultify board. 250
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Federal Reserve Bank of St. Louis
19
Warburf„ P. A. (Cont.)
.;67. f!,Ex:vs new petition And new briefs ghould be filed and
argument not earlier than Setember 1. 250
368. Said it was olt of quo';ticin to 4 ran.)fer
bAnks bacik to :4inneal.c1is. 251
369. Votes againat reolienng of petiticn o' Wisconsin banks. 252
370. Says he may be recorded in favor of a hertring on
wiscon.in banks on A-igust 15, no further briefs to
be filed ani Alchigan banks to '31 allowed to
intervene. 263
371. Mc'doo iald he *greed to vote for the petition on Harding's
statscient that Warburg et als frvored it. 253
C.S.H. wsasel it "larlmrg mho saii only yeJterdv It the
rultinz that he was prepared to vote for the
Wliconsin petition. 255
373. C.S.H. thinXa -ar-mrs thought there ,uicht be politics
in it froao ft that Senator lusted wanted it and
loAdoo and C.S. :. were willing to vote for it. 255
374. AcAdoo szvs warburg et als are th-iatening dire Irld
awful thin:, if Gov)rncrship does not rotate. 256
375. nrings Harrison back from hie vacation Nhilo he oes
away on hi;. 264
376. Tells Allen Harrison is only man 'ho knows anything
the Board amendment,. 264
toes not congratulate C.S.H. on his reapointment 265
Warburg
677.
37P. Says 'latter to irop a.Lentsent ang 'ed.ral lo,erve note
laNful re:)rve: that he never expected it -rould pass
Anyway. :65
379. Si9Mei perf:.:tly cheerful about it although he tell 3oard
when it votd for it, it vas vital. 265
remtnt htc tt ie male "arrison laue back from
C.S.H.
380.
how Harrison Ca:W3 to overlcox
his vacation Ind as
it. 265
rpose o dra4in
;male aarrison C:C.L4 bank for
381. raid
rezulations - a deliberute misst:Atenient. 265
392. said 1..H. was responsible for its nct belnq reported! 265
383. Says no one could have known of it until it ap2lared in
th3 CongresAmN1 Record on Tuesday. 265
384. 7.9.H. viii never trust his ,tatapents, as to vitality
of Any matter, again. 265
the
385. McAioo says Narburg ani Delano had written friends of
administration they should resign if ?Tovernor not
rotated. 259
385. AcAdoo sAys President said it war; Jr:possible to ,cla.4a
Tar'nurg Governor, T11 tbAt to ra.:ki Delino Governor
mo-14 aar)hasize the passing over of '7Arburg.
587. :cAiccd said Nar'7urg's resigm.tion wculd be of more iraury
than that of Delano, for it wculi injure the
administration with the b=inkers.
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Federal Reserve Bank of St. Louis
Warburg, P. '1. (Cont.)
388. acAdoo sElid he ntLd nc doubt 7'arburg \Jould aa.'ept
Vice (lovernor. 271
389. C.3.H. •_:,ays if larding is made Governor Narbur 3t als
will feel tlIF‘t Harding has double crossed them,
and that this will prevent any future cambintions. 271
390. 71cAdco says he fully ap-)reciates the reactionary feelings
of Warburg et als; that they "struck" at a critical
and that the President and A, ,rery regretfully
felt it was exneliant to yield, but as little
as _possible. 271, 272.
391.
sends C.S.H. the designations of Hardin3 and
Warburg and asks hi.a to deliver them. 277
392. C.S.7 writes a letter to each, anclesing th3 designations
cind congratfulating each. 278
393. Harding fears trouble froia Warburg anl Delano over his
dasi7nat1on. 279
394. Tiarding wires warlurg for a conference in Na' York 279
395. (;.S.H,
frovi his manner, that
rding entered
intc .30IM3 Aeraement vith Warburg etals which they
will lhir,ze hia; with violating. 279, 280.
396. Warb,Ir7 f-arious at not being designated i.s overnor. 280
397. Warburg -2reared a letter to the President acce2ting
his J.161.nation as Vie Governor but reaiing the
?re-silent A lecture for not designating him a.:
Governer. 280
698. Nith great difficulty he vas :persuaded not to 31n1 it
but to send a simnle acrleptance as Vice Governcr.280
399. Harding tells Warburg the nre.A.dent would justly resent
such a letter ml would take drastic acticn. 20
400. -arbur7 male all sort of wild luggel:tions and threats. 280
401. Wanted to insist on his "tric, deeie:nated for Governor
3:nd Delano for Vice Governer, bu.' Delano would
nrt agree to this. 280
402. Harding tells Warburg that if har_cny i not restored he
will write President that he acc:aDted in hope of
harmorw, but as he could not su:ceed, he wruld ask
l'reiident to desiznate another. 2801 281.
403. Harding says it vas plainly impo-sible for the President
to lesielnate WArburg, a Ger7aan, crly recent'y
naturalized, anl having a brother holing a high
pwiticn in the German %peror's crnncil. 281
404. :Larding sys:
warb.;rg almost vild. 282
Has dracn A Temorantlm Nhih he ints mn6t be
printed in nixt Bulletin. 282
Memeranium recites fact of the designattoni and
states that at 'malt a m4crity of the 3oard
faverel rotation
lug the short term
mamber "%sterner. 292
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Federal Reserve Bank of St. Louis
197:
Whrburg, P.
(Cont.
!larding :-.ays (Cont.)
That they were oprosed to exercise of any choice by the
Pre.aident. 282
That the 7oar1 would shortly -;ring the matter to the
attentitn of Congress. 282
405. Mtrding told Warburg no such st!ttement should be made. 282
406. warburg said he would publish it himself hit Harding told
him it would make him ridiculous. 282
407. Harding sA.d Warburg had written Col. House that if the
Governor lid net rotate he .-ari 3 other members
would raign anl cone out in a public statement. 282
408. Tlaring, said he told Warburg that he had said long ago
he would abide by decision of - resident, Ind that
he hal no .Authority to vote him as intnding to
rosign. 282
409. Harding told Warburg that if he did such A thing it ouli
msrely ziv3 coafcrt to the enemies of the atriinistraticn
and deprive it of its deserved credit for the
)assaF;(9 of the Federal Reerva Act. 282, 283
410. warburg sail, - that is just .'hat I want! 283
411. Delano woes to train with marburg and told Harding he
wanted to get htm out of town. 283
412. Ha.ding thinks Warburg is really out of his head. 283
413. McAdoo says the P'reident is ready for Warburg whatever
he ilay io. 283
414. ,:akleo days he -aid °resident are sati;fied that warburg
at als were determined to cale or rain; that
Warburg c:oild resin i he ,vished and if he
did they could make hi, rilic-ilous. 283
415. Warburg insists loard should ask State Department
whether the Bank o
ngland agreement mas consistent
with neutrality. 294.
416. raid if 'tate Department s.tid ye.: he -ro-Ild vote for th
agreement, althcugh in many ways, he did not
believe :lank of England was the proper agency. 294
417. Warburg says Federal Re-;lrve bank c,tn
guarantee f,ayment of bill sent to it by Bark of
England or 1)ought by it for the lark of England
as, under the Federal Reserve Acts it could
•
indore the,e ',Ills. 295
118. Warburg skis noardis counsel has informally ruled
that earmarked ;old in 13ank of England could nct
be counted 3,6 re rye by Eeleral 'Re,rve bark.. 295
419. (1.S.7. iays Gov. Strong originally favored buying only
domestic bills against ex?orts, but in new
me-7xrandlm take position that 'hat Ahr.uld not
be lone as involving too much risk and
only
foreian bills should be bought. 295
198.
Warburg, P. M. (( ort.)
420. Warburg uy the individual bualkir, could buy long
domestic b111.3 obtaining credits on other ,,ida
and the Federal Reslrve banks could buy from them
checks and cable drafts and thus create balance
brood in Bank of Ent;land vihich A!ould accomplish
same purpose as if thl Federal Realrva banks had
bought e.g. cotton or grain bills iirectly. 295
421. Waxbura iay a th3
amount Federal
Reserve banks could inve3t in this way, - say
25 AliMons, - Nould not stabilize exchange, and that
it would be folly to tie up our referve.; in
foreign inve:,tment3 Afhich Nould not count c4a re4arvas
296
422. C.S.H. 1.1414 no d.a.bt bitt tt Warburs is bitterly
qvposed to Bank of Tingland agreement ani said he
.vould vote for it if State Depart4:ant s.lid it did
not violate neutrality, in hope that the State
Da:Jartent Nould turn it down. 296
42. Talt-urs a3re3d. that, if t-113 agreeT,ent cerl nc t entarel
into no,, .V3 might not b :,•:11 to get
f Avorable
terTs in the future. 298
424. 4'ar",urd iaya the rown 3rothera agreement .1:4+4 (rrir3nt
'by the French Government,. although Board 414s told
,tt the ti 3 that the French Goverment _erely .greed
that :
loll could be exported if niece sar:7; he said
this latter statvilent was not trae. 298
425.
itract from resolution of Board a),)
- roving the Bank
cf7ngland azreement vhich "vas introtIced by
Warbur3. 399
Si
also - kcce')tance credits
Bills of exchan73
Votes
1
•
•
Warrants.
Bo'-rd waived romulations as to size of citie:1 at reilue;.t of
Federal Re.ieryte Bark o= BoF ton. 73
Boarl refused to pe
t Atlanta to buy ;:eorgia warr t
- nts in
41=383 of 3Monnts allowed by regulations. 84
Papers 6,ty icAdoo apprcvel such an inve,,
- tmint of thtr
funsti rec 3i714 fro Government de:osits.
- 84
warren, Charles
- Brandeis
Ric7a :lank
Warren,
201
Sae - Brandeis
T:Irren, Winslow 198
see - Branilis
•
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Federal Reserve Bank of St. Louis
•
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
199.
7eeks, Senator
warburg writes, tnat he iu a Republican.
134
Tells, GOV, F.ollo
All igrel thxl, if political cirnular is of iiite
applicability it will bl rice1s4ry for, to rein
as Triasurer
Democratic ni,tional Comwittaa. 164, 165
White Haue
Sea - Dinn3rE
Wilson
nlcox 207
See - Federal
ii,131rV3
Bank, Richmond
Williaas, John Facelton
I
Abolishment of office. 41, 42, 46, 47, 62, 53 to .17, 99$
100, 176 to 179
Acceptanc.
66
Adminiutr-tion. Wrecking thl. 149 to
Afftdvt.TtLgLyi 3ank ce. 15 to 18, 26, "26
Albert, Dr. 39
41drich-Vreal4n1 nctas 1, 22
Amendments. 22, 171, 175 o 177
Annual rflort. 168, 169, 175
Attendance of meatings. 79, 83
Baltimore. 101
Bark of 1.i3ng13nd agraament. 258, 259, 260
731in1. •ind haalstroql. 24
3111e Ridge. C.S.H. A.sits, at. 253
3o1ling 219, 220
Bosworth, Felaral Res3rv3 Agent. 52, 53
Brandais, L. D. 4, 56, 13, 25, 26, 29
lrown Brother-, Acca2tanc3 Agraemen. 34, 69
Ch:trtar, Forf3tur3 of. 29
Cincinn-Lti. 101
Circultting tag. 242, 246
Claim of all.Ary as as-officio m3aaber.
147, 152 to 163, 166, 182 to 216, 224, 226,
226, 227, 232 to 235, 239, 240
Class C Diractors. 127 to 130
CO.,AtA3 assignments. -9 tc 86, 92
GoiAptroller of Currinly
see ir
Aboli s
- hmant
Covtroller of Traasury 161, 195, 207, 209, 227
Conditicn. Aambar banks. 61
Congress. 55
Connecticut bin. 221, 222
Conspiracy 31
Contraband. 44
See - Cotton
Cotton
;riat 3ritlin. 'AIrchas,?.s to stabilise price
36, 37, 38
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Federal Reserve Bank of St. Louis
200.
Jol-.n Skelton (Cont.)
Index
Cotton (Cont.)
Williaa
Talk lyith C.S.7. au to speculating in.
44, 45
Cottcn, J. P.
65, 75, 226
Counsel. 19
Crawford, Sir Richard. 37
(--Ae - Cot47on
Cutting down of Federal Re.11,ve district
u
88,90, 92 A, 92 '1, 93, 97, 98, 99, 101,
102, 103,
110 to116.
7
.. A. 63, 66, 71, 96, 106, 113, 117, 119,
141, 163,
164, 163, 171, 173, 176, 190, 191 (wil
l thrauh)
192 to 200, 208 to 216, 217, 225, 227, 251,
252
Democrats, 138, 141, 142
Deputy Federal 71e3erve Ant. Serving
as Clas C Directorl
106, 117 to 120, 123, 127 to 130, 135, 143,
144
Discamt rate, '241, 241i
Miott, H. W. 59 to 62, 621, 63, 64, 146,
156, 158, 1611
195, 201, 203, 206, 210, 227, 229
7xaminers
As Deputy Federal Reerve Agenta
See wkpra - De-mty Federal ReIrve Agent
Examiners leporta
Right of Federal Re.3erv, kzentu tc r
42, 43, 18, 56 to 62, 66 to 71, 76, 89, 127,
136, 168, 169, 170, 176
Dcaminars
1arie. 60, 145, 146
Farm Luiin "l'amd.ssicrier. 256, 257
Federal Advisory Council. 100
Federal Reserve Act. 62, 148
Federal Resrve Ant. 681. 59, 70, 69
Federal ReLirv,e Agent, Deputy
.3ee - Deputy Federal Reserve &gent
Federal Reser,re A„;ent
Sea - 101.1
tar dy
7e1eral 'Reserve 3Ank, ettlanta. 101
•
It
Boi.ton
101
Cleveland 101
Kan.;au City 101
Minneal)ollA 101
•
flIt
'T. Y. 91, 123
lladel.:hi:a 101
•
Rich-noni
101
c'..9.1 also - lolling
Rardy
•
Resirve lank
c't. Luiu
101
Federal Reserve Board. 41, 42, 46, 52, 53, 55, 571
59, 60, 821
83, 145, 146, 169, 178, 179, 180
Federal Reserve note. 41, 59
Fine 27
Fines. 19, 20, 22
Fisk, .ainy
91
For
ccantria, aelseptance- 1)etleren 2
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Federal Reserve Bank of St. Louis
201.
J(Ln ;')1:11ton (Cont.)
Index (uont.)
Forfeitur3 of tharter. Riggs hank. 29
Gatch. Iattcnal lank 177xam1ner. 126, 143
German Ambassador. 39
Glasss, Carter. 46, 47, 48
Govrnor of 3113r_il 1,iserv
oard. 51, 245, 250
Gov -?.rnor3 of Faiaral Reservs banks. 89, 127, 128, 12'-',130
Gov?.rim43nt 1e-2osit,;. 168, 170
T1dJU1tn, C.S.
3, 7 to 14,25, 36 (cotton) 37 (ac .dtcn) 41 , 50,
52 to 54, 64, 65, 73, 75, 78, 80, 85, 36, 94, 101,
105, 107, 117, 120, 123, 126, 143, 144,165, 167,
175, 177, 192 to 200, 211 to 216, 217, 224, 227,
232, 234, 238 to 211, 241,
246 tc 251,
254, 255, 261.
qarding, Gov. 34, 37, 85, 88, 90, 92 A, 92 3, 97, 98,
101 to 104, 107, 109, 127, 130, 171, 172, 174,
180, 181, 220, 230, 24E, 261
Fedral Re:lry: Az3nt 34, 230, 231, 236, 238
7custon, D. F. 93
In-ittenttcn to ',work. 79
Ing13, Fale:al Reserve Ant 12),, 122
Injurinz aiministrat ion. 148, to 151
Lansing, Sel. 4.61
Lettar,, trnropir, tg
11, 151
31a - Riggs 7ank
Louiziana banks. 218
Oct ton 371 38
Lyerly, Cal?tain. 100
Malice. 31
•
101, 103, 104,
Maps. Cuttin losn of 11.stri7
McAloc, Ir.0. 1, 3, 13 to 17, 281 31, 42, 43, 91,
10? to 109, 120 to 123, 125, 130 to 133, 140,
163, 165, 170, 171, 1-'9, 216, 238, 242, 247 to
250, 256, 257
Mecy, J-A,L3 Ir. t. 30, 31, 148, 243
Meloblr b-tnks. Conlition. 61
Millr, Dr.A. 0. 75, 81, 105, 130, 220, 228
Morality of contact. 7iggs lank. 14
"ilorgan, J. P. 100
Nritrality. 39, 259
Nev Orlems Branch 3ank. 101
NeNton, Assistant Secretary. 26
NIN Yor itrectors.
ra-v York
Sae - 711ara1 Relrvl
Note
l'urchas3 Lfl anen .market.
49, 50, 167
Notice of melting,. 40
Penaltie.i. 5, 19, 20, 23
Personality of. 47
Political offIces. 131 to 135
Politic,. 138, 139, 110, 260
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Federal Reserve Bank of St. Louis
202.
WilliaNs, John 1,ke1ton (Cont.) Index
Prce, M. 36
Purchase of note:: in open market. 49, 50, 167
Ren3wa1s. $5
Reimblican. 138
Resignation froL, cargAittees. 83
Rich, F9dera1 Reservl Aont, 87
Riggs Bank
3, 4, 3, 6, 15, 27, 30, 31, 151,.243
Salaries
see - Slay, Governor
Salari,
. of 1..owliner3. 50, 145, 145
lary claim as eh-offilic rember
147, 152 to 166, 182 to 215, 2:',2 to 240,
224 to 227
Seay, Gov. 121, 122, 223
Secretary of Treasury. 41
Settle:rient. Riggs Bank case 21, 22, 29
3tarek. National Bank IC:car:Liner. 117, 118, 120, 123 to 125
131 to 133, 137, 143
State Departvient. 259
Stenographer. 95
Substitn.tion of .tcle-.2tances. 65
Sul:treasury iLleting. 32, 33
Swanson, Senator. 254
Tax discrtlination. Ri:s Bank. 6, 13
Ultiniatra. Cutting icrrn of listrilts.
92 A, 92 B, 97, 98, 99 to 103, 104
U. 5. Bondte. 244
o•
VisitVot .,% .,T164,52 671 218, 221, 222, 26, 237, 241, 258
Taiver of p3na1ties. 19, 20
Warburg, ?aul. 51, 72, 74, 77, 85, 90, 111, 115, 168,
170, 171, 174, 220
Tarren, Zharles. 27, 28, 29
Ars. J. S. 45 (Cotton)
willia, H. 9. 131, 194, 201, 204
Wilson, ?resi-lent. 7, S, 9, 10, 11, 12, 21:;
7is3onsin banks. 2r8
Yello sAelt, 69
- Exaininr; reports
1. 5ays :4cAloc has 11Cli3l to issue nel: Aldrich-VrallamA
notes to a Taxas
7hinks It a ,ir3at _Ist.Ae! 1
2. Votes
discolInt of acleptances based on
traffic between foreign launtrie. 7
3. C.:.7. thinics '7cAloo Nould like tc
away fraz
Williams in Rtrz5 7ank contrcveray but
to Willie-la .2revent3. 9
4. 3ran1eis iays WilliaL.a is absolutely in the xrong in
Riggs :Sank :Ilse. 9
5. Brandeis believes that Wilson should suggest that
%vernulent co-ansel
triat he should
remit 41 penalties in Tligzi Bank
9
1
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Federal Reserve Bank of St. Louis
203.
Wiilievia, John 6ke1ton (Cont.) Indax
6. C.S.F. tell Brandeis he ogpuced the tax discrimination
again-t Riggs Dade, 10
Riggs Dank.
L:30
7. c.s.n. interview with rilson as to Ricr-s Bunk. 10
8. Wilacn thinks it a local fight between Tilliwas and Riggs
Bank rihich should go to a finish. 10
9. wilson says if WilliaL:.a ia beaten he sh(-111d not hasitate
to take proper action. 10
ava he can not turn Willias aown without a hlaring. 11
Wilson
10.
letters Were clearly improper. 11
Williams'
11. says
that on this subject Williams was not
C.S.H.
with
Agrees
12.
11
mind.
his
right
in
C.S.H. told 73randis that if
because
ilsialasad
13. .!1Alco
to testify againat
have
'Nonall
he
mod
WT'L
13.
12,
hsatter.
leposit
in tax
sail Williams contIct
Brandeis
that
14. 0.5.H. tells McAdoo
or equity. 13
lorals
in
not justifieA either
and
bay, Riggs
caupraLise
15. C.S.H. iviaes cAdoo to
of
allegations
of
view
in
bank would ba willing
•
13
,ffilavit.
McAdoo awl Williams in
16. McAdoo's affidavit gave certain reasons whieh lIcAdoo and .
Willia..s lid not know until later. 11
17. McAlc;o says Williams told hia. these before av 6. Record
stiows examinara discovered them only on May 18
14
and officially reortei then lay 28.
18. Williama could not have known these facts on Aay 6. 14
tell Williams it vas wise for counsel to Naive
19.
all 17,ena1ties atce)t that for $5000 for refusing
to Eiva list of all loans back to 1896, ani that this
vas purely a question of law. 15
latter ..)enalty
20. C.S.H. tells Allliams he is ware he would have, lost on the
other )analties. 15
21. C.3.H. urges Williams to settle the case. 15
22. Williams would not are. Ts2scia1ly goosed C.'- .H.
suggstion tat -nscculd not lawfully impose a fins
for failure to produce list of securities available
for A1lri:h-Vr3e1Ind notes. 16
23. willia:La, In affidavit, had watved this later penalty,
but he ill not selln to know it and bitterly qpp sed
it. 16
i.03.Z31 absL.lutely blind and thought rune of big
24.
acts could be criticizal. 16
25. Very bitter against Brandeis, but C.S.I. Aays 'Brandeis'
ill not fear to take
;ood and
judz.lent was ,
riaki. 16
26. Assistant 3ecretary Newton sets of a rumor that "3randeis
was trying to Tager Willia:As to rehabilitate
biuself lith the finan2la1 interest4 16
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Federal Reserve Bank of St. Louis
Williams, John Skelton (Cont.) Index
27. Warren says Riggs Bank will cive all the informc,tion for
which the $5000 fine us iilosed if Williams
viii watve the fine, and'viii tismiss the bill
an condition that neither IcAdoo ncir flllis
should file their affilavits. 16
28. Warren aaid this las a good settlement but that neither
McAdoo ncr WIlliaria could agree, and insisted on
filing their affidavits and that, therefore,
the case must ao cn. 17
29. Warren said Brandeis aivised Williaw that he could not
forfeit the charter as the thin:
23 complained of
hal all been discontinued. 18
30. At trial of motion for injunction and of petition to
julaa Icecy ji.va an injunction agaim,t
the $5000 fine but said it was purely a 4u.evtion
of law. 18
31. The judge. found that Williama had not acted in 1..a1ice,
and had not conspired Nith IcAdoo; that they Nara
Justin:I in what they lid and could nct have done
otherwise. 18
32. Willixas present at Subtreasury for kleeting, New York. 34
33. Tillia
ani C.9.H. go to Federal Rezerva bank to the
meeting. 35
See tance cralits
34. Hardinz and Williams hat left meting lthen liarburg made
his fight against Brcvn lrottera crelit in the
iftarnoon. 40
35. C.S.H. calls Williaua back to westing and Willis says
he clearly intended to rule that new acceptances
could 133 substitled .fter ialivery of the 600d6
to the purcha.,,er. 42
36. IIMaris tells C.S.H. that 3C.143 Cne, C.S.H. thinks he
said 1,11. Price, was taking np vith 3ritish
'qlmbassy the matter of buying cotton to maintain
its 2.rice -Ifter eMbrgo. T';Is Alas scmetilie in
July, 1915. 44
37. Willialis Invite3 C. .H. tc lunch with Sir Richard
Crawford and Harding to talk over the cotton -olan. 44
38. C.S.H. declined saying these conferences as to cotton
were purely .personal and nct 1.fficial. 44
39. 311 liams write. Warburg asking if he ha; not talked vith
the Gericom Ambassador and German agents as to
neutrality of the 'Brown -'rother. acceptAnce - crslita
46
40. Objects to iuch shcrt =tide for meetinps. 18
41. C.S.H. believes Comptroller of Currency shculd not have been
made a mealber of Board; merely a bureau chiat'
under Board as to Federal Rssarva ncte and
under Secretary or Traaslry otherwise. 57
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Federal Reserve Bank of St. Louis
205.
••
•
Williams, John Skelton (Cont.)
42. C..H. believes Comptroller should h4 put direct].'
under Federal Re.:"erva Board, ceasing to be a
member of the Board. Would never have been
put on Board but for his friendship with McAdoo. 58
H.Avises AcAdoo to overrule Williams ao to
43.
exAninern report:, 63
44. Williams aaks C.F.H. And TTarlIns if they saw any
impropriety in his buying ii0M8c ottcn. -Both
sail yes, itwoild not be prccer as Williams had
ttrn of the British
ori n as to the
Government, which the public a..1.'i not have.
Sept. 24, 1916. (Tillabargo proelamation Aug. 23, 1915)
45. Tillias then asked if it 'vculd not be all right
7 to buy sane cotton. C..H. and
for Mr. Willia-3,
Harding gave the 51.xme Answer. 68
there will be a :Arong movement
46. Glass tells
in Congress to rer%ov Williams as a matzber of
the Federal Reserve Board, 70
47. Glaas feels the office ahculd be on Board, but that the
trouble was Jith the personality of Williams. 70
48. Glasa ears it 'vas intent of Congress that Williar!Ls
should give to Federal Reserve banks co-Ates of
all of his examiners reports. 7C
49. 111.111,evAs moticn,mattlr of open raarket poweri, r
t
71
back to cu
minority report on open
substitute
to
Votes
50.
72
market powers for majority report.
;,Goirernorshi:
in
wants
ro•ation
Warburg
says
51. Williams
and wants to be Governor himself. 72
52. C.11. tells Williams that Feler3.1 R1S3r7.3 ALent -Bosworth,
in Kasech At Indianapolis, strongly atrol :tat
abolishing the Co.72trollar and zivtng hia
func-,Ion, to the Federal leservF3 Board. 76
: Williams of Bosworth spee.ch. 76
53. C.S.H. tell,
54. C.S.H. _tells Williams:Strong movement viii arise in Congre .s to
remove him from Federal Re6 lrv3 Board. 76
Advises him to -aeet the attack by showing that
55.
under existini law h3 was larrier general
control of 'Board. 76
Begs him to yield on matter of examiners reports. 76
56.
Advises hi.T. to aay th,.at if Federal '.eserve Board
57.
will :pass a resolution that Felerel Reserve
banks shall report to 7Board on condition of
hL to
their meitera banks and should a
to
re,2orta
give CO -435 of all examiners
do
waill
Federal Reserve Agent;, - that he
so, 1eav1n3 to the Federal Re Irv, Board the
respcnsi':ility as to the use of the report's. 77
think this over. 77
willi'ams s(11-1
58.
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Federal Reserve Bank of St. Louis
208.
Jchnskelton (Ccrt.)
!,713.iott F7ives opinion:Board haa no juriudicticn over Co..iptreller except
as to Federal Reserve not. SO
ComptrolTer, however, iv, bmnd to furnish to
60.
73oard the examiners reports to aid it in fixing
salarie: of exaritners. BO
legally, give co.pie.: of e•tarriiner:',
Coalptroller
61.
reports to TNecieral 'Reserve Board to alisist it
in deterruining the condition of member banks. 80
That the Fed)ral Reserve Act contemplated such
62.
action but did 3necifil.:t112r recriire it. BO
at o-)ini..-n of Tolliott. 80
angry
!leathers
62L
.“.;11iott to gi7re this crpini.on, as
asked
williadas
63.
Chairman of the Cormaittee;. Delano eat:. 'should htve
ben ai-,3n to the cors.lit:ee. 80
said he.,,did not read C.r.H. o - ini, n a. he di I
64.
tout into po.;:iticn of overruling it. 80
not
first blush he di': not Agree 671.th
t
said
rtetton
65.
oi-,inion. 80
Delano ref orteci that cornnittee tat ruade no p: ogress
66.
a3 to exP...vlineri_. report,. 80
with
23., 1915, Liaid th,t, in ....cccrd..nce
on
Oct.
Williams,
67.
with a sngge.ition of the loard, :Lade long since,
he had iilidei that examln!rs reports Asiould
hereafter "be shown to the banks exained. 8C, 81.
he should divide the reports into 2 parts:- .
Thlt
SP.
1. To be given to the bans exarAned and to the
Federal Pe. er-re .tgent. 81
sheet:
Yellow
69.
To be shown Federal Peserv-1 agents only
upon revest of Federal Rel.;nrwe Agent
or Goverryr in casol wher -; the bank
in que:tion had redi,nounted with the
Federal Reserve bank p or where for
any other reason, E,,lch informAtion
were desired.. 81
70. Cam-Attee voted to ask. Federal Reserve Agents what
Part I should contain. 81
71. C.S.H. thinks this indicates 4 Nillingnesa on part of
OV 3r to pcsitionof -9oard; it all
Williams to
rt I ...as to contain. 81
depended ho-;?ver, on %that
72. warburu inststed that tile entire report ahuuld -le given
to Federal Res - ry3 Agents. 81
luickva whl, ?art I
73. C.S.H. suggested waltin6 c‘ntil
Is to conts.in. 83.
secured to annoy 1.0ia..7bura.md
74.
Delano. 81
v as that Cotton be asked for an opinion. 81
7.5.
co7umittee bast already power to as:r. for
says
76. 0.6.1-1.
59.
this. 82
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Federal Reserve Bank of St. Louis
•
Williams, John :)kelton (cont.)
77. Warburg conclalad fact that he barsa1:7 had conbulted
c(4ttori. 82
78. C..14. tells W111ia.i of thia. 62
79. Board vote a to drop Williams fro., Chairalamhif, of
car.u,ittee on ground that he novar called msetinza
and did not attend tO his work. 63
before
.b.H. ivises Board to coniult .vith
80.
voting, Yit Board would not lo this. 83
81. -illiams enters meeting and Ailler tells nim nothing
hal been done not on docket. A miat3ke but not
intentional. 83
82. Williams write; 2 hot letters to BoIrd on ..Coove. 83
83. At next meeLing 3o4rd votei to irop .111 refermnce to
Williams' rgmoval as he lad vritten reining
from the Chairmanit). 83
64. WilliaLs also wrote resigning froi tvo ;G .:Attlee; s.id
nothing a-cout state bank callAttee of shich ha
to still A member. 83
85. 'arburg -ni Rardtng sAid if Williams insiited on keeping
these letters on the files, they should file
mel,orAnia of their own. 83
ci the file;; later
96. Villia s insisted on retiintng
arOte C.S.H. an equivocal latter and C.t'.H. wrote
asking just %hat his wishes wire. 64
87. Williams wove for hearing for Federal nesevre Agent Rich
as to .)-ublicity ca,ap.lign. 87
86. Williaiss reads to C..U. -.J. letter from Harding stIting
that he wculd oose puttirg Comptroller under
re -Oral Reserve Board, alio inti,Latne that committee
88
-,
,;o4tvona
cutting delta diitricts for a
Vt
of
.%.11
that
89. Federal Rarve itents vote un.l.r11,nodsly
examiner:. re20rt3 ..ho-ald be given to Federal Be rye
Agents ,Ind Governors. 59
90. girding tella Williams cc .ittee :an not :.gres an
cutting lam of itstricti; that WrIrcurg wanted to
tramfer northern Alaba:as. to Cleveland, which lae
(Harding) opposed. 91
91. Willia.as, - after agreeing -vith Board as to advis-lbility
of Inansing the illarters of Federll Re.,ervi -5ank of
N. Y., - tells 0..q. laat 1mAdoo, other things
'eeing equal, hopes no 2h3nge cLil be male, bec4usfq
of his cordial relaticns with Pliny Fish. 91
92. Williams drcp:ped fru. AtlInta Counittee.
92 A:rillia;cis, on Lov. 12, 1915, slava tiarding presented to
him verbally an ultimatum on cuttLng lawn of
districts which Williams reduced to writini and
.1rcvld it. 95, 107
showed to Harlin, who a-7
95
ultimatum.
512 B. Contents of
93. 'r1.1 tiams as:Ks if any me-4ber hal *,alkel of c-Itting down
of districts -vith Secretary 7ouston, but no one
rel.)lied. 101, 1';(3.
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Federal Reserve Bank of St. Louis
208.
Williams,
94.
95.
96.
97.
98.
99.
100,
101.
102.
103.
104.
105,
106.
107.
108.
109.
110.
111.
112.
113,
114.
John Skelton (Cont.)
Votes against laying C.S.I. resolution on table. 104, 105
Williams moves for a stenographer. 105
Delano attacks Williams saying 113 would never admit any
errors in Reserve Bank Organization Conrittee nor
in anything. 107
Williams tells again of Harding's ultimatum on cutting
/IAA/IAA
down. 108
Harding said. he reported this to the committee and/re
of them dissented to this statement. 108
Federal Advisory Council unanimously recommends abolishing
office of Comptroller. Nov. 16, 1915. 109, 110
Captain Lyerly said Federal Advisory Council were ';,rong
in above recommendation and he had so written
J. P. Morgan who was not at meeting. 114
Williams told C.S.H., larding at his ultimatum talk had
sholn him a map stating that it abolished Roston.
Minneapolis, Cleveland (substituting Cincinnati),
consolidated Xansas City with gt. Louis, Atlanta
and Richmond, and made New Orleans a Federal Reserve
Sank, and added Baltimore to Philai lphia. 120, 121
Williams says Harding said. at one meeting that the
committee asked him to spealc to himas to the
ultimatum. 138
Copy of Williams letter to McAdoo as to Harding's ultimatum
talk. Refers to report and map. Nov. 12, 1915. 139
Letter says Harding said the committee had given him
permission to leave the report and map with him. 139
Says Miller's resignation should be called for.
C.S.7. objects. 141
Willianm asks that the Delano report, - against examiners
serving as Deputy Federal Reserve Agents, - go over
for a week. 142
Harding said matter had been referred to McAdoo and
hinmelf and that they agreed on the general policy.
C.S.H. also favored this, but thought Board should
have time for discussion. 142
Williams said McAdoo shouli have an opportunity to
consider it. 143
Harding said Williams was misrepresenting McAdoo who
favored this policy. 143
Williams says will file answer to 3rd draft of committee
report on cutting down. 145
Warburg says Williams and C.S.H. should apologize to
committee; Williams said he had been daily expecting
an apology from the cemmittee. 147
Moves that committee file all Aata, maps, etc. with
regard to cutting down of districts. 148
DelarD Said committee will prepare these but Williams
poirted out that the comm4 ttee in its report stated
it had already had all this data, etc. 148
Williams agreed to leave motion pending. 149
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Federal Reserve Bank of St. Louis
209.
Williams, John Skelton (Cont.)
115. Warbwg says if Williams replies to the 3rd draft of
committee report as to cutting down districts,
the committee will change its report and put in
some nasty things. 154
116. Williams, on approval of minutes of meetings of Nov.
15
and 22, 1915, reserves right to file a further
statement. 155
117. Delano presents report against examiners as Deputy
Federal Reserve agents. He said this meant the
removal of Starek. C •S•H• said he agreed with the
policy of the report but believed it merely called
for his discontinuance as Deputy Federal Reserve
Agent, leaving him as Government director. Delano
opposed this. 155, 156
118. Willis said Starek could not be removed as Government
Director, as there was no "cause" under the Act,
and Williams moved that Elliott define the word
"cause."
156.
119. Delano objected, - said we shall not remove him,
we
shall do it in another way, we have to approve his
salary as examiner!
156, 157
120. Interview between C.S.H., Williams, and
McAdoo.
McAdoo disposed to yield on Starek. 157
121. Williams says he fears Ingle will resign, if Seay
is
elected Governor; that he has nut yet moved his
family to Richmond. 158
122. Williams save McAdoo hi talked with other membe
rs of
Board about Seay and Ingle with no very satisfacto
ry
results. 158
123. McAdoo disposed to yield on Starek. C.s.R, says
purpose of members is to displace Starek to please
New York directors; that he preferred to vote again
st
asking him to resign; that he will vote, as a matte
r
of policy, that examtners should not be Deputy
Federal Reserve Agents. 161
124. C.S.H. says sees no reaSon why Starek should not
serve
out his term as Government director. 161
125. McAdoo says this would not make the other membe
rs more
reasonable and C.S.H. agrees to this. 161
126.
says he agrees to the policy and if Gatch
(.So.)
and Starek should voluntarily resign, he would
make no objection. 161
127. Harding offers resolution:
1. Examiners reports
2. Examiners as Class C Dtectors
3. Governors as Class C Directors
162
128. C.S.H. moves that 2 be split up: (0 Service as Deputy Federal Reserve Agents
" Class C Directors, 162
129. Agreed that passage of resolution should not
co=it
any member on merits but that questions should be
taken up aril settled in that order. 162
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Federal Reserve Bank of St. Louis
210.
•
•
•
•
Williams, John Skelton (Cont.)
130. McAdoo wanted postponement; Harding objected; Miller
voted aye and it was passed. 162
131. Willis points out that McAdools resolution ls to holding
political offices was broad enough to include
Starekm as he might be considered an officer of
U. S. 163
132. C.S.H. said McAdoo did not intend this to apply to any
director now In office, but that when Starek's
term Pxpired he could not be reelected. 163
133. McAdoo says did not intend that resolution should apply
to examiners at all, nor to directors now tn
office; admits it might apply to Starek when his
term expired. Said it was prospective only. 163, 164
134. Warburg said itawlied now. 164
135. Board passed resolution that future policy is that
examiners should not he eligible for Deputy Federal
Reserve Agent or Government Directors. 164
136. Williams agrees, Dec. 27, 1915, to give examiners reports
to Federal Reserve Agents. Letter, 164
137. Board revoked starek's designation as Deputy rederal
fteserve Agent at New York, and elected George
Peabody. Dec. 28, 1915. 165
138. Williams, Dec. 28, 1915, pposed appol.ntment of Judge
Goodrich, recammendd by Milian. of Kansas City for
Govt. Dirctor, =the ground that he was a
Republican; said Board was proscribing Democrats. 165
139. First time politics injected into Board meeting. 165
140. McAdoo said we ought to have a rlasonable number of men
of all political faiths represented. 165
141. Delano said that two out of the three Govt. directors
at Chicago were democrats, 165
142. C.s.H., at proper time, will make his position clear that
politics shall not enter into the Board's
deliberations. 165
143. Agreed that C.S.H. shall notify Gatch and Starek that,
henceforth, examiners are not to serve as Deputy
Federal Reserve Agents nor, as a rule for the future,
as Govt. directors. 166
144. Agreed that C.S.H. should say that this decision should
not affect their standing as Govt. directors for
the balance of their terms, - Gatch, I year, and
Starek, 2 years. 166
145. Committee prIsents resolution that Comptroller shall
annually present for approval of Board a list of
his examiners with their salaries. 166
146. William asked for opin'on of 71liott and it was so voted. 166
147. Williams, Jan. 18, 1916, brings up his clai-n for 57000
compensation as ex-officio member of the 'Board
from the date of his qualifaction as Comptroller
to August 10, when Board oraanized. 170
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Federal Reserve Bank of St. Louis
211.
•
I •
•
•
•
Williams, John Skelton (Cont.)
148. Judge McCoy tells C.S.H., on Jan. 19, 1916:"Amazed people did not more generally see
adgantages of Federal Res-rve Act." r0
Satisfied it was largely due to Williams. 170
149.
This had come to him from all over the country. 170
150.
Said to C.S.H., in strict confidence, that - no
151.
matter how he might decide the Riggs Bank
case,- Williams letters were Rmod
illustration of how not to do a thing; they
were most intemperate and =judicial; that
Williams has injured and is fearfully injuring
the administration; admits he is honest and
very likely able; something should be done
to prevent his utterly wref:king the
administration. 170
152. Williams, Jan. 18, 1916, brings before Board his laim
for $7000 annual extra salary for service as
Ex-officio meMber of Board from the date of his
confirmation as Comptroller to Aug. 10, 1914. 170
153. Elliott and Cotton had ruled this was a valid claim
and the Comptroller of Treasury ruled the same
and that it was charvable to the Federal Reserve
Boa-1 assessments. 170, 171.
154. Delano asked for more time; Williams objected., and
Delano said if Williams insisted he could make a
verbal, preliminary report. 171
155. Williams insisted and Delano said he could not find
how the matter came to be referred to the
Comptroller of the Treasury, but finAlly had
found it was on a letter proposed by Elliott
and sent by C.s.H. 171
156. The matter was docketed when Elliott's opinion was
rendered and the opinion was called for
171
officially by the Board.
to its
objected
Comptroller
the
C.s.H.
told
157. Willis
being docketed as it was a claim which required
no action by the Board, the question being a
purely legal one. 171
158. That same morning Elliott came to C.S.H. with the
opinion and said. there was no reason for docketing
it was it was purely a question for the Comptroller
of Treasury. 171
159. Williams, that day, renewed his objection and the Board
struck it from the docket. 171
160. %S.H. tells Board, that While his recollection 'vas
not very fresh, be was confident he never had
referred anY question to the Comptroller of the
Treasury without informing the Board. 172
161. C.S.H. remeMbers distinctly What Elliott said as
above, and is quite sure he stated this to the
Board and that the Board understood the question
was to go to Comptroller of the Treasury. 172
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Federal Reserve Bank of St. Louis
212.
Williams, John Skelton (Cont.)
162. This is the only possible explanation of action of
Board in striking it from the docket, for not a
word was said against the clatt at that time, in
an, way. 172
163. Delano reads a confidential letter he sent to McAdoo,
saying in the letter that he did not deny the
legality of the claim, but should vote against it,
especially in view of the vote of the Board that
it would assume all expenses after August 10, 172
164. Delano asks for more time and no objection was male. 172
165. C.S.H. tells McAdoo of Williams' action and he was
very indignant with Williams for bringing it up
at this tills, and in the afternoon meeting said he
wanted the matter held up until he could look into
it, and Williams raised no objection to this. 172, 173
166. Williams, on Jan. 19, 1916, again brings up his salary
claim at the Board meeting and criticized parts of
Delanots letter to McAdoo. 173
167. Votes, with C.S.H., not to lay on table the matter of
purchase of notes in open market. 175
168. Warburg introduces amendments to annual report as to
Government deposits, Comptroller, etc. 177
169. Warburg says Board has no control over Comptroller's
rulings, over the appointment of examiners, of
reports of condition, nor over examiners reports.
Mildly stated no present trouble with Comptroller
as he was practically cooperating with the Board
but trouble may arise in future. 177
170. McAdoo says proposed amendments of Warburg as to
Government deposits, Comptroller, etc., is a
direct attack on Williams and himself. 177
171. Harding tells McAdoo that Delano will vote for Warburg's
amendments even if every other member votes
178
against tl-em.
y at Comptroller's rulings
bitterl
ns
complai
Harding
172.
and lack of tact. 178, 179.
173. Delano says same in Board meeting. 180
rburg's amendments
174. Harding says will vote against
reserving right to bring them up later. 181
175. C.S.H. and Williams agree to a statement in annual
report that Board would make no recommendations as
to certain amendments because of difference of
opinion and necessity for more tilts for consideration. 182
176. Board takes up Delano amendment as to Comptroller. 183
177. C.S.H. says that substituting the Board for the
Secretary of Treasury would not help but would
cause more trouble. 183
178. C.S.H. thinks no change necessary, as cooperation will
bring harmony, but if any change is made the whole
functions of the Comptroller must be changed and he
should be made a subordinate of the Federal Reserve
Board, subject to its appointment and removal, and his
right to report to Congress should be taken away. 183
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Federal Reserve Bank of St. Louis
213.
•
Williams, John Skelton (Cont.)
179. McAdoo, Teb. 5, 1916, said he knew that cooperation would
produce the desired result and he directed Williams
to consult the Board on all important proposed
action, - such as new statements in condition reports,
etc. 183, 184.
180. The Board appointed Harding,. to deal with Williams on all
of these matters. 184
181. Williams tell C.S.H. he has 11.2ard that Harding agreed to
accept Pr-sidency of the Baltimore Trust CoLipany which
was to be merged in a large natioral bank, but that the
merger hal fallen through anl Ingle was finally elected
President. 184
182. Delano reports on Williams salary claim. 185
183.
Showed evidence of bitter feeling. 185
184.
Clearly implied that C.s.H. had asked opinion from
vlliott without authority of Board. 185
185.
7vidently laying ground for future attack on
Williams on this matter. 185
186. Williams said to CJs.H., Teb. 16, 1916:Very indignant at Delanols report. 187
187.
Criticizes Delanols chronological statement, and
facts contained therein as to his salary claim. 187
188,
Said Delanols statement that he hal objected strenuously
to docketing Elliott's opinion for Board meeting
of (*Jct. 15, 1915, was false and an attack on his
honor. 187
189.
Said that tomorrow, at Board meeting, he should ask
Delano what he meant by this reference. 187
190.
said that if he did not explain satisfactorily, he
should then and there thrask him soundly. 187
191.
Said that if Delano told hit to put his own interpretation
on it, he should also thrash him. 187
192. C.S.H. tells Williams that Delano had reflected on him,
- more than on Williams, from his statements:
1. That he had never seen Flliottls opinion
until /3 months after it was rendered. ,187
2. That C.s 4H. had sent a letter to the
Comptroller of the Tresfury on Oct. 12,
1915, asking for an official ruling, 3 lays before the matter was docketed.187
3. That he implied that
had acted without
authority from the Board. 187
193. C.S.H. makes Williams promise to do nothing until he, '7•'•13. - could look into the whole matter. 187
194. Willis tells C •S•H• that Williams Aid not object to
docketing his salary claim but, on the contrary,
said -that if 7oard lished to docket it he had no
objection. 188
195. f'.9.H. writes Delano:vlliott, in letter to C.S.H. dated Oct. 8, 1915, said.
Board must obtain an official ruling from
Comptroller of Treasury before it could pass
on the matter. 188
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Federal Reserve Bank of St. Louis
214.
Williams, John Skelton (Cont.)
1966 C.S.H. also said in letter to Delano:
Willie docketed the matter because C.S.H. sent
him Elliott's opinion of Oct. 8, 1915. 188
That although docketed on Oct. 12, 1915, the
197.
letter to Comptroller of the Treasury was not
sent until after the Board meeting of
Oct. 15, 191'5. 188
best recollection is that he received
C.S.H.
198.
Elliott's opinion on the lay it was dated, —
Oct. 8, 1915; that he probably (reoollection
not very distinct) asked Elliott to draft a
letter to the Couptroller of the Treasury, in
accordance with his (Taliottts) own suggestion
as contained in his letter. 188
199. C.S.H. qays he went to Mattapoisett on afternoon of
Friday, Ootober 8, 1915; that on Monday he was
at Newport, R.I. with AssistAnt Secretary
Roosevelt, and from there went to Indianapolis,
not returning to Washington until Thursday, Oct. 14
188
him the
told
200. C.s.H, said that on Friday Oct. 15, Willis
for
docket
the
matter had been stricken from
the day. 188
201. C.S.H. said.:
Later in morning Elliott came in and. said the
matter should not be docketed until the
Comptroller's ruling .vas obtained. 189
189
202. Willis said he told this to Delano who fully agre3d.
ago
lays
203. Elliott toll C.S.H. in a letter written a few
that C.s.H. said he would explain this to the
Tioard, and that C..H. went down to the Board
meeting with Elliott's opinion of Oct. 8, 1915, in
his hand (this latter statement made to ('.".7.
orally by Elliott a day or two ago) 189
204. C.S.H. recollection:..
Willie explained why the matter was stricken from
the docket. 189
Board's records show Willis explained thts. 189
205.
%P.R. told Board of Elliott's opinion and Cotton's
206.
approval of the earlier draft of Elliott's
opinion dated Dec. 9, 1914. 189
toll Board Comptroller of Treasury should be
207.
asked for an official rulina and that he would
send the letter asking for it, to which there
was no objection. 189
en
had
208, r'.s.H. says no formal vote taken as the matter
were
nts
stateme
his
stricken from the docket and
merely informal. 199
showed
209. The notation made by the Couptroller of Treasury
,1915. 189
Oct.22
until
he did not receive r.S.H. letter
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Federal Reserve Bank of St. Louis
215.
Williams, John Skelton (Cont.)
210. Elliott explairm this by saying that the Comptroller of
Treasury was out of town and he lid not, therefore,
deliver it until his return. 189, 190.
211. C.S.H. writes Delano. 190
212. Delano tells C
Will recast chronological statement to conform with
the facts. 190
Williams will be bitterly attacked if he taes this
213.
money. 190
were his own brother, he would beg 1-im not to
he
If
214.
take it. 190
Said
Glass
had. heard of this, not through him, - and
215.
was much disturbed over it. 190
216,
C.S. H. sees McAdoo and Williams and said Delano would
strike out the mistaken reference to him and. begged
him to pay no more attention to the matter. 190
217, r7.s.H. tells Delano of above talk with Williams. 190
218. Williams and C.q.H. vote against transfer of Louisiana
banks. 194
219. Williams tell C..H. that President Wilson wants his
brother-in-law, Rolling, appoi-ted Fedsral Reserve
Agent at Richmond. 195
220. Williams tells C.s.H. that Miller, Warburg and Harding
said they would vote against Bolling. 195
221. Votes with (7.s.H. to postpone Oann, banks petition until
clearing system established. 196
222. Votes to transfer Fairfield County and postpone rest of
petition. 197
223. Opposes increase of Gov. Seay's salary from tl°,000 to
t12,000; directors recommended t15,000. 200
224. C.s.l, preparec a statement as to Williams salary Claim
and advised Board to psy it. Mar. 6, NIS. 202
225. All agreed it les a vqlid legal claim, except Delano,
who thought it was a legal sophistry. 202
226. Miller moves a resolution stating that Board would vote
to pay it because Elliott, Cotton, and
Comptroller of Treaeury said it was a legal claim
which Should bepaid. 202
227. All voted for this except Delano Who voted against it;
he said. memorandum of (7.1.H. stated the case fairly
and was very convincing but that he had "got in so
deep" he felt he must vote against it. 203
228. Williams asks Miller what he meant by referrirg to the
proposed increase of Elliott's salary as wPadge" 203
ElliottIP
salary increased to t10,000 without specific
229.
mention of his work for the Comptroller. 204
230. Harding tells of talk he and Williams had with Havay
as to Federal Reserve Agent, Richmond. Willia,Ls s3id
it was clearly explained to Hardy that cmnittee had
no authority to offer him the place but later he
admitted Hardy had the right to assume the committee
would report his name favorably to Board. 206
•
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11
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Federal Reserve Bank of St. Louis
316.
Williams, John Skelton Cont,)
231. Williams admitted that Hardy was a proper man for the place. 206
232. Board approved. minutes as to vote to pay Williams salary
claim. As originally drawn by Willis the draft
spoke of fact that Williams had put in a claim for
salary. C.s.H. said vote should read, - whereas the
Comptroller has raised the question of the effective
date of his salary, etc. Willis corrected this and
'.14• explained the correction to the Boarri. 209
•c
233, Later Willis came in with another draft restoring the statement
as to the claim of the Comptroller. 209
234. (7.9.H. told Willis this reference was not in the vote as
209
passed.
235. Willis said Delano said the vote must have thir in before
payment could be made and that he would bring it
before Board at next meeting. Z09
236. Votes to postpone Hardy appointment. 210
4.P .11. and Miller in not voting on main question as to
.
237. Joins (
Hardy. 210, 211
238. Williams asked postponement until McAdoo could vote, but
said McAdoo wanted Board to proceed. 212
239. ".S.H. brings before Board resolution as to payment of
Willigne salary claim, which had been put into a new
shape following exact language of the vote. 213
says no further action required and that he should
240. C
sign the voucher if no objection offered. None was
offered and C•S •H_ • then signed the voucher and. gave
Delano, Harding, Miller, C.S.H. and
it to Willis.
Williams were present. 213
241. Opposes petition of Kansas City to increase liscount rates,
as also does C.'.H. April 4, 1916. 214
241i. C.s.H. says will not oppose a tentative increase for 2 or 3
weeks test if Williams will agree but Williams
declined. 215
242. Allen shows C..11. a draft for new form for circulating
reports omitting the names of McAdoo, Williams, arri
C.s.H. 217
243. Judge McCoy issues permanent injunction in favor of
Piggs Bank. May 31, 1916. 230
244. Says Fecinmal Reserve banks sbould not combine tdO
price of U.S. Government 2% bonds when they wished to
buy them, and to increas the price of the converted
34 1s when they wished to sell them. Warburg disagreed. 231
245. Williams says it would be prepov tarot". to desig,nate any one
except C. .H. for Go vermr. 236
not to press the matter of dropping
246. Williams advises (1
his, - C•s•H•t s - name from the r.irculattng tag for
bank reports for the present. 212
247. Williams tells C.S.H„ cAd.00 .3,ys the 13resid•nt will
reappoint him. 243
approve of Wisconsin banks
248. McAdoo says V /larding and,
will speak to Wi11iF3ins
and
it
petition he will favor
about it. 247
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Federal Reserve Bank of St. Louis
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Williams, John Skelton (Cont.)
249. Says McAdoo told him the reason why '7.s.H. name not
sent to Senate was that President was very busy
and forgot all about it; that ifnomination hal been
made out by Treasury he would have sent it to
President long ago. 248
250. Williams suggests to McAdoo, that if President does not
want to settle rotation of Gov,-nor now, he might
designate (7.s.7. until Jan. 1, 1917, McAdoo
favored this. 256
251. Williams said at linner last lvening with several men,
Delano joined them, that he, Williams, spoke of
(1.S.H. appointment and fill .vere mulh pleased,
but that Delano lifted his eyebrows with a sort
of half grunt, a mixture of surprise and displeasure
257
so
Pias
,
Delano
that
shing
252. Williams said it was astoni
2.57
anure.
lisple
his
l
concea
not
boyish that he could
6
29,191
July
t.
Summi
Ridge
253. C.S.H. visits /Miami at Blue
21, 262
254. says he has seen Senator Swanson who will press
confirmation of C.s.I. 266
valm Loan
255. Says later on executive s,?ssion was held but
ned 'before
adjour
senate
Board. was taken WO first and
r,
ho'cve
name,
.
1.S.7
Said
r'..(7 .7. name reached.
2603
e.
Senat
had been formally laid before
Ation of
256. says McAdoo tried to get him to accept posIrarm Loan (7ammittee. 281, 282.
e press
he appreciated the honor but that the hostil
Said
257.
the
by
down
would say he had. been turned
Alministration ind that he had le,Ilined. 282
d agreement
258. Moves postponement of matter of Bank of %glan
ms and
Willia
lown,
as to Foreign Agency. Voted
Miller alone voting aye. 297
of 'oiard before
259, Williams says McAdoo wants a coy of vote
ment
the Board Committee consults the state Depart
297
ent.
agreem
d
as to neutrality of Bank of %glan
great
of
260, Says Bank of Thgland agreement would be
political injury to the alministration, if it
became known during the campaign. 298
g on the
261. Says C.S.H. should not see Secretary Lansin
te•
comgdt
the
before
ent
Bank of Fhgland agreem
299
g.
Hardin
by
ted
saw him as sugges
Williams, J. S„ Mrs.
4.5 (Cotton).
Willis, H P. Index
Acceptance regulations. Warturg. 1
Ailes, Milton, 36
Annual report. 68
Barkers. 6
Banking and Currency Corr ittee. 34, 35.
http://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
218.
Willis, H. P. (Cont.) Index
Branch Agencies. south Amerisa. 66
Branches, Federal Reserve banks. rutting down. 5
Bribe. 39
Bush, Irving. 43
Chicago, 6
Clearing system. 5$ 64
Comuittee, Redistricting
see - Cutting down.
Congressional sommittee. 37
Cutting down Federal Reserve districts.
2,1,',5,6,8,9,15,16,44,46,47,48 to 52, 53154
Decker. 6
Delamo. 8, 12, 13, 14, 50, 63
Expense, auttirg down. 5
Farwell, 32
Federal Advisory Council. 61
Federal Reserve Act 32
Feieral Reserve Bank, Atlanta. 21 54
Boston, 2, 9, 10, 52, 53, 54
Chicago. 2
Dallas, 54
Kansas City, 2
Minnlapolis. 2$ 52
New York. 21 91 10.
Richmond. 2
st. Louis. 2
rederal Yeserve notes. 5
rederal xeserve systam. 7, 62
roreign bills. 11
Fbrgan. 43
Glass, Darter. 22 to 36, 37, 54 to 59, 64
Glass-Owen Act 20 to 33, 37, 38, 39, 54 to 60
Government deposits. 68
Hmmlin, C.s. 511 52, 53, 641 65
Harding, Gov. 8$ 15, 51
House, Cpl. 58
Hurlbert. a2
Kuhn Loeb & Co. 57
Laughlin, Dr. J. L. 18 to 33, 37 to 43
Legal proceedings. 17
Map, cutting down. 8, 12, 451 52
McAdoo, W. G. 54, 57, 59, 65, 66, 67
Miller, Dr. A. C. 9, 16$ 59, 60
Minneapolis, 6
See - Fe3eral Reserve Bank of Minneapolis
National City Bank. 36
National Reserve Association, 21
Philippine National Bank. 69
Reserve Bank Organisation Opmmittee. 4
Reserves, 58
Reynolds. 43
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Federal Reserve Bank of St. Louis
219.
Willis, H. P. (Cont.) Index
Secrecy. 14
Stock exchan.7e. 58
Strong, lo'r. 39, 61
Vanderlip, F. 43
Warburg, Paul 2, 10 to 17, 38, 44 to -7•0, 53 to 58, 61, 62
63, 68.
Williams, John Skelton 8, 15, 51, 67
1. Warburg has shown him a draft on acceptan.le regulations,
bitterly attacking Wi1liams and C.S.H. '69
2. Committee on Redistricting showed him a plan:Atlanta merged in 'Richmond
Kansas City " " st. Louis
Minneapolis " " Chicago. 85
3. Warburg wants to trarsfer Boston to New Yorlr, but Miller
objects. 85
4. Willis furious about this plan; says Reserve Bank
Organization Committee plan was faulty but that this
plan was worse. 85
5. Willis said:
Committee said reason was:1. IL= clearance system,
e
I
•
.
•
•
1
6.
1
7.
8.
e
e
e
•
9.
1
10.
11.
12.
13.
We have not established a clearing system 85
2, giving of expense.
Answer:
Destruction of Federal Reserve notes will
cause a much greater expense, as .
coavittee vould retain branchms wherever
a Fedral 'Reserve bank vas discontinued. 85
Intimated that comiAttee had consulted with bankrs
in Chicago and Minneapolis, e.g. Delker. 85
'Federal Reserve system has worked perfectly. 86
Delanols statement that committea has not agrred on any
specific plan may have been technically correct at
the moment; at one time, how-ver, the camrittee bag
agreed and had prepared a map (evidently the ore
Harding showed to Williams). 109
Willis pointed out so many objections that committee ha1
become divided, e.g. Miller objected to transferring
Boston to New York. 109
Warburg said he never favored transferring Boston to N. Y.
thus contradicting Willis's statement. 121
out
Warburg intimates to Willis that he knows nothing
purchase of foriign bids and Willis feels insulted.129
Delano asks Willis if Iarburg has shown him anything.
Willis said yes, a report and map, abolishing 4
banks. 131
Delano said he would have spoken of it before but feared
Warburg might not like it; that it was important
that this be kept secret. 131
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Federal Reserve Bank of St. Louis
220.
Willis, R. P. (Cont.)
14. Willis said of course he would not give it out and
Delano said, II/ mean, secret fran other Board
members.' 131
15. Warburg silks Willis to read a typewritten copy of the
committee report, - the one showed by Harding to
Williams, - but he would not let it go out of
his office. 131
18. Said committee was undecided as to submitting a definite
plan in first report; Miller had talked trith him as
to advisability of this, spending at one time MACS
than an hour with him, arguing in favor of the general
plan for cutting down districts; that he, Willis,
absolutely disagreed. 131, 132.
17. Warburg said, previous to meeting of Nov. 15, 1915, that he
did not care if legal proceedings should result,
with trouble for a few weeks. 132
18. Willis tells C.S.A. of his trouble with Dr. Laughlin. 132
19. Willis said:Laughlin was retained by bankers associations in
Chicago and New York. 132
20.
Willis was retained to write a bock on banking and
did write 7$% of it. 132
21.
Dr. Laughlin inserted pages on the National Reserve
Association. 132
22. Laughlin made many suggestions as to draft of an act to
Glass and himself. 132
23. Laughlin, he thought unwittingly, had given the bankers to
believe that, as an all teacher of Willis, he could
daainate his views. 133, 1311.
231. Willis prepared a bill for the Glass committee. 133
24. Laughlin got Glass to tell him the general theory, - of
consolidated reserves. 133
25. Glass °oriented to Laughlin drawing a bill to show his
views. 133
26. Laughlin drew a bill, of which Willis has a copy. 133
27. The Glass Act vas hat founded on Laughlin's bill. 133
28. Glass was careful not to base the administration bill an
any bill presented by special banking interests. 133
29. Laughlin asked Willis for copy of Glass bill. 133
30. Willis refused saying he had been forbidden to disclose
it to anyone. 133
31. Laughlin very angry at this. 133
32. A Chicago banker, either Farwell or Ralburt, stated publicZy
that the Federal Reserve Act was based an Laughlin's
bill. 133
33. Willis at once wrote denying this. 133
34. New Yoekeravd tried to have Glass removed from Banking
and Currency Committee. 133
35. Also tried to have Willis removed as expert adviser. 133
1
0'
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Federal Reserve Bank of St. Louis
221.
Willis, N. P. (Cont.)
36. The National City Bank of New York worked on Ailes
in washington, but he declined to have anything
to do with it. 133
37. The New York crowd induced a Congressional Committee
to summon Willis and he went before the committee
and proved by documents that the Glass Bill was
rot founded an Laughlin's bill or on any other
banker's bill. 133
38. The New York crowd, especially Warburg, brought every
on him to control the bill.
pressure to bear
133, 135.
39. Benjamin Strong (later Governor) at one time came very
near offering him a bribe. 134
40. Laughlin is honest. 134
41. Willis wrote Laughlin as to authorship of Glass Act,
but Laughlin refused to discuss the matter. 134
42. Laughlin became convinced that the bankers were
working ar their own selfish interest. 134 '
43. Forgan and Reynolds were more narrow and bigoted than
Tanderlip and Bush and Laughlin finally gave up
in disgust. 134
44. Warburg produces several plans, one marked "Willis's
criticism of the committee plan." 137
45. Willis very angry at reference to the map Warburg asked
him to prepare and asks Board to give him five
minutes to explain. 137
46. Willis said'..
Appointed Secretary of redistricting committee, but
had not been asked to attend a single meeting.
137
47.
Warburg brought him a draft of report and asked
him to delimit the districts on a map. 137
This plan abolished 4 banks. 137
46.
Secrecy was enjoined on him by Warburg. 137
49.
50. Delano also enjoined secrecy and said ho was glad
Willis had not mentioned it to any one as it would
have "queered" him (Delano) with Warburg. 137
51. Willis explained that he had talked with Mal, after
Narding's talk with Williams. 137
52. Said later, in C.S.R. office, that he had delimited the
distticts an a map, and that the plan abolished
Boston, Minneapolis, etc. 137
53. Warburg, while Willis wee speaking to C.S.H., came in
&W. gave C.S.H. 2 plans, neither of Which abolished
Boston. 137
session, Warburg had said Harding only favored
At
morning
54.
abolishing of Boston, and that because Atlanta
and Dallas were to be abolished. This is in direct
conflict with Willis's statement. 137
11
01
41
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Federal Reserve Bank of St. Louis
221,
Willis, ife Pe (Cant.)
1541. Willis early:While acting as expert for Glass, - just after
McAdoo took office, - and before he had met
him, a man, whose name he would not give,
called on him in New York. 140
The man asked for a copy of Glass Act for Warburg. 140
55.
56. Willis declined and the man said Warburg has a long
memory both for his friends and enemies. 140
also said that McAdoo was under heavy obligations
man
57. The
to Kuhn, Loeb & Co. and that McAdoo would certainly
give Warburg a copy as soon as he gets one. 140
58. Col. Rouse Obtained a copy and gave one to Warburg; they
went to Burcpe together and Warburg wrote a letter
from Switserland bitterly attacking the bill,
especially that part relating to the consolidation at
reserves, Which, he said, would draw money from the
stook exchange, and that he disfavored any such
interference. (Seo scrap bodk for letter) 140
59. Discovered that Dr. Miller had a copy. Glass much
disturbed at this. MOAdoo said he had asked Miller
to examine the bill and gave him a copy, bat that
his suggestions were of no value. 140
60. Willis said hs heard tram other sources that Miller was
bitterly opposed to Glass Act. 140
61. Willis says he heard Warburg telephone Gov. Strong
suggesting postponement at next meeting of Federal
Advisory Council until annual report at Board came
out as it might contain a statement of cost of
council meetings. 144
62. Says statement in mAnutei of meeting of Nov. 22, 1915
(or possibly Nov. 22, 1915) - that Warburg said anyone
not agreeing that 4 banks should be abolished was an
enemy of the Federal Reserve system, - was absolutely
correct. 148
63. Delano admitted to him that Warburg said this, but said
he had lost his temper and that his words should
not berrecorded. 148
64. C.S.R. feels Willie is responsible for Glass's worries
about the clearing system. 160
65. Complains because hitudoo does not attend more meetings.
C.S.N. fears he is not satisfied with his work
as Governor. 160
66. Says Moidoo meekly surrenders to Warburg et ale, especially
his back down in Federal Reserve agencies in
South America. 160
67. Said this was a cowardly surrender. 160
67*. Says Williams objected to his salary claim being docketed,
as it required no action by Board, it being purely
a question of law. 171
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Federal Reserve Bank of St. Louis
223.
Willis, H. P. (Cont.)
68. Warburg tells Willis he has at last got the votes for
his proposed addition to annual report as to Government
deposits, etc. and that he should insist an putting
this through an Monday. 177
69. Board gives lunch to Willis an his leaving for the
Philippines to establish the Philippine National Bank.
Mar. 23, 1916. 213
see - Discount rates
Federal Reserve Board; cutting down
Wilson, Mrs. Woodrow
Federal Reserve Bank of Richmond, in February, 1916, discounts
for a Washington member bank a note of Galt Brothers
indorsed by. 192
•
Wilson, President
Index.
Appointments
Bolling. 19, 20
Ogilvie. 3
Assistant Secretaries. 17
Attorney General. 8, 13
Bolling. 19, 23
Catholic opposition. 16
Central bank. 1
Clearing system. 13
Cotton. 4
Crawford, Sir Richard. 4
Cutting down Federal Reserve districts. 6,8,9,10,11,12
Delano. 6, 35, 36, 40
Discount rates. 1
lxecutive damination.3, 11, 19, 20
Federal Reserve banks. Rediscounts between. Rates. 1
Federal Reserve Board. 3, 5, 121 13, 17, 32, 33
Garrison, Secretary. 18
Germany. 16
Glass, Carter. 7
Governor, Federal Reserve Board. 31, 34 to 46
Governors of Federal Reserve banks. 1
Great Britain. 4
Hamlin, C.S.
2 (protest, Riggs Badc),.8, 9, 10, 12, 15, 18
21, 22 to 25, 28, 29, 31, 32, 33, 41, 42,43, 46
Harding, Gov. 41 6
Hunt, Guillard. 15
Inter Federal Reserve bank rediscounts. 1
Lansing, Secretary. 16
MaAdoo, W.G. 5, 7, 8$ 12, 17, 19, 20
McAdoo, Mrs. W. G. 14
Mexican situation. 22 to 26
Miller, Dr. A. C. 11
Ogilvie. 3
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Federal Reserve Bank of St. Louis
224.
Wilson, President (Cont.)
O'Neil, J. H. 30
Politics. 14
Pope of Rome. 16
Prince, Dr. Morton. 15
Reactionaries. 43
Riggs Bank. 2
Scott, General. 21
Springfield Republican. 15
Status, Federal Reserve Board. 5, 17.
Sussex, Torpedoing of. 27
Ultimatum. Cutting down of districts. 6
Warburg, P. 39, 44, 45
Woman suffrage. 14
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
• s,
Feels strongly that the Governors are arrogating the
power of a central bank in recommending a 4%
rediscount rate between Federal Reserve banks.
Mar. 9, 1915. 5
C.S.H. interview with Wilson protesting as to Riggs Bank
See - Riggs Bank
Asks Board to give some appointment to Mr. Ogilvey, a
Princeton man, but Board refuses to waive the age
limit and he secured an appointment from Department
of Labor. 28
Has interview with Harding and fully apprbves his conferences
with Sir Richard Crawford, as to buying of cotton by
British Government. 51
Moadoo says Wilson does not want to give Federal Reserve
Board a status above the Interstate Commerce and
Civi; Service Commissions. 55
Harding eve Board willaut down districts unless Wilson
sends for Delano and asks him not to press the matter. 95
Glass says Board ambers feel that McAdoo exercises an
undue influence over Wilson. 98
McAdoo asks C.S.H. to write Wilson asking him to call for
opinion fram Attorney General as to Board's power to
out down districts. 116
C.S.H. writes Wilson as above. 116
Wilson writes C.S.H. he will do this with pleasure. 118
Miller complains of executive interference by Wilson as
to cutting down of districts. 135
McAdoo says Wilson will soon send for C.S.H. to discuss
the split in the Board. 144
Board asks Wilson to sail for opinion from Attorney General
as to mandatary powers of Board with regard to a
clearing system. 156
Mrs. McAdoo tells C.S.H., on or about Jan. 13,1916, at dinner,
that her father was influenced by politics in coming out
for woman suffrage; that she had often in the past
beard him argue against it. 168
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Federal Reserve Bank of St. Louis
•
225.
I.
•
•
Wilsoh, President (Cont.)
15. Hunt writes letter defending Wilson against attack of
Dr. Morton Prince, which C.S.H. publishes in
the Springfield Republican. 176
16. Lansing explains to C.S.H. the real reason for catholic
opposition to Wilson, - a secret agreement
between Germany and the Pope of Rome to give him
temporal power in case Germany wins the war. 176
17. McAdoo says Wilson is responsible for not giving a
status to Federal Reserve Board above Assistant
Secretaries. 178
18. C.S.H. writes Wilson indorsing his stand as to Secretary
Garrison. 186
19. McAdoo tells C.S.H. that Wilson would like to have his
brother-in-law, Boiling, appointed Federal Reserve
Agent at Richmond, if fit for the position. 195
20. Says fact that he is his brother-in-law should not
militate against him, but he does not want to
embarrass the Federal Reserve Board. 195
21. C.S.H. dines with General Scott to meet Wilson.
Aptil 5, 1916. 216
22. Wilson says to C.S.H. after dinner!Troubled at Mexican situation. 216
23.
Will not hesitate to withdraw troops sent after
Villa if not captured soon. 216
24.
Will send message to Congress, if he decides to
withdraw the troops, pointing out that our
enemies wish us to stay in, in hope that
sane complications will result. 216
25.
C.S.H. tells him he believes Mexican situation
will clear up and that his policy will be
successful. 216
26.
Wilson seemed to be in much doubt about the whole
matter. 216
27.
Said the torpedoing of the Sussex gave him such
concern. 216
28.
C.S.H. says the masses of the people want peace and
will recognise - whatever happens in futurethat he had done everything possible to
maintain peaoe.216
29. C.S.H. said that, whatever might happery he had strengthened
himself with the masses by his course. This seemed
to please him very much. 216
30. J. H. O'Neil says this country will never be really
prosperous until Wilson is swept out of power. 218
31. Wants to redesignate C.S.H. as Governor. 241
32. Says will reappoint C.S.H. an Federal Reserve Board. 243
33. Appoints C.S.H. for 10 year term an Federal Reserve Board.
256
34. Has reluctantly determined to have rotation in Governorship
269
35. Says Delano's letter to him asking an interview an
rotation of Governor is a polite form of blackmail,
that at any other time he would have had no
difficulty in treating it as it deserved. 268
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Federal Reserve Bank of St. Louis
*
226.
Wilson, President (Cont.)
36. That if Delano et ale should resign now it would
undoubtedly embarrass the administration. 269
37. That this was clearly their intent. 269
38. His carefully considered what the rotation should be. 269
39. Impossible to make Warburg Governor. 269
40. To designate Delano would emphasise the passing over of
Warburg. 269, 270
41. Wishes to designate C.S.H. but thinks it wise to yield. 272
42. C.S.H. doss not blame Wilson for deciding on rotation. 273
43. C.S.H. feels, however, that the reactionaries dared Wilson
and he yieldad. 273
44. Is ready for Warburg whatever he may do. 283
45. If Warburg resigns Wilson will make him ridiculous. 283
46. Writes letter to C.S.H. expressing gratitude and
appreciation for his gen3r0us and public spirited
attitude on the Governorship. 290
Wing, Daniel
Says Federal Reserve Bank of Boston can never earn dividends
except in times of commercial crises and that Boston's
hope lies in acceptance field. 186
See - Federal Advisory Council
Federal Reserve banks
Wisconsin banks petition
See - Federal Reserve Bank, Minneapolis
Federal Reserve Board; redistricting
Redistricting
Wold, Gov. 173, 294
See - Federal Reserve Bank, Minneapolis
Women suffrage
Mrs. McAdoo tells C.S.H. her father came out for, for
political reasons; that she had often, in the
past, baud him argue against it. 168
Wiwi sheet
See - Williaa
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