Theodore E. Burton to Benjamin Strong Jr.
Title
Theodore E. Burton to Benjamin Strong Jr.
Creator
Theodore E. Burton
Identifier
WWP18435
Date
1913 December 2
Description
Senator Theodore E. Burton writes Benjamin Strong Jr. on the Federal Reserve Act.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
THEODORE E. BURTON.
My dear Mr. Strong:
Your letter of yesterday is just received. The utter hopelessness of obtaining any amendment to the bill created a certain degree of demoralization among those who desired to improve it. I presented most of the amendments which I had prepared. I omitted to present one, however, namely, the proposition to strike out the provision on p. 67, “except as thus provided, no member bank shall keep on deposit with any non-member bank a sum in excess of ten per cent of its own paid-up capital or surplus.”
The banking institutions, which do not intend to enter the system, are aware that this is in the bill. The object of it is perfectly plain, namely, to force all banks to become members. If a vote had been taken upon it, it would have been voted down and the democratic conferees in the Senate would have said that the vote was a mandate to them to insist on the retention of this item in the bill. On the other hand, there is a possibility that it may be eliminated in conference. I am trying to ascertain this morning from trust companies here whether any steps are being taken looking to that end. I did not ask for a vote, because I found that the number would probably not be more than 25. This would have given a black eye to the proposition.
On the other hand the conviction of a very large majority in the Senate is in favor of a central bank.
Mr. Kent has sent me the extract from Sir Edward Holden.
I shall be extremely glad to see you and your son during the holidays. My plans are somewhat uncertain, dependent upon the date and recess taken by Congress. My present plan is to be away from Monday night until Saturday morning of next week and then to remain until the 1st of Jaunuary. If I am not here my secretary will be glad to see you, though I hope you may be here when I am here.
New Year’s day has usually been a great holiday in Washington, but the President has decided not to hold the usual reception and that will make the day less attractive.
With kind regards.
Yours sincerely,
My dear Mr. Strong:
Your letter of yesterday is just received. The utter hopelessness of obtaining any amendment to the bill created a certain degree of demoralization among those who desired to improve it. I presented most of the amendments which I had prepared. I omitted to present one, however, namely, the proposition to strike out the provision on p. 67, “except as thus provided, no member bank shall keep on deposit with any non-member bank a sum in excess of ten per cent of its own paid-up capital or surplus.”
The banking institutions, which do not intend to enter the system, are aware that this is in the bill. The object of it is perfectly plain, namely, to force all banks to become members. If a vote had been taken upon it, it would have been voted down and the democratic conferees in the Senate would have said that the vote was a mandate to them to insist on the retention of this item in the bill. On the other hand, there is a possibility that it may be eliminated in conference. I am trying to ascertain this morning from trust companies here whether any steps are being taken looking to that end. I did not ask for a vote, because I found that the number would probably not be more than 25. This would have given a black eye to the proposition.
On the other hand the conviction of a very large majority in the Senate is in favor of a central bank.
Mr. Kent has sent me the extract from Sir Edward Holden.
I shall be extremely glad to see you and your son during the holidays. My plans are somewhat uncertain, dependent upon the date and recess taken by Congress. My present plan is to be away from Monday night until Saturday morning of next week and then to remain until the 1st of Jaunuary. If I am not here my secretary will be glad to see you, though I hope you may be here when I am here.
New Year’s day has usually been a great holiday in Washington, but the President has decided not to hold the usual reception and that will make the day less attractive.
With kind regards.
Yours sincerely,
Original Format
Letter
To
Strong, Benjamin, 1872-1928
Files
Collection
Citation
Theodore E. Burton, “Theodore E. Burton to Benjamin Strong Jr.,” 1913 December 2, WWP18435, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.