Benjamin Strong Jr. to William G. McAdoo
Title
Benjamin Strong Jr. to William G. McAdoo
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18495
Date
1915 August 2
Description
Benjamin Strong Jr. writes William G. McAdoo on American financial preparedness for the war.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
My dear Secretary McAdoo:
The memorandum enclosed herein was started shortly after I last saw you in Washington, and would have been sent you some time ago had it not been that both of the matters covered by the enclosed letter were being actively discussed by the Directors of this bank and I wanted to consult the Board on the subject before sending it. It now takes the form of a letter addressed to you by a Committee of the Board of Directors of NY Reserve Bank and I regret that it is so long.
The present sense of financial security which prevails in the country is undoubtedly due to a large degree to the existence of the Federal Reserve System. It would be a sad shock to this country if we should, notwithstanding our best efforts to avoid it, be drawn into the war, and it be found that we were not fully prepared at all points to meet the situation.
It seems to me the Federal Reserve System is somewhat in the position of the British fleet; it is not fighting great battles and doing spectacular things, but the fleet is there just the same, and its mere exsistence enables the bBritish commerce to continue. So it is with our System. Business is proceeding as normal in this country, as the country generally has confidence in our preparedness for any eventuality. The question is, are we fully prepared?
I hope you are having a thorough rest and appreciate how much you need and deserve it.
With kindest regards, believe me,
Sincerely yours,
Governor.
The memorandum enclosed herein was started shortly after I last saw you in Washington, and would have been sent you some time ago had it not been that both of the matters covered by the enclosed letter were being actively discussed by the Directors of this bank and I wanted to consult the Board on the subject before sending it. It now takes the form of a letter addressed to you by a Committee of the Board of Directors of NY Reserve Bank and I regret that it is so long.
The present sense of financial security which prevails in the country is undoubtedly due to a large degree to the existence of the Federal Reserve System. It would be a sad shock to this country if we should, notwithstanding our best efforts to avoid it, be drawn into the war, and it be found that we were not fully prepared at all points to meet the situation.
It seems to me the Federal Reserve System is somewhat in the position of the British fleet; it is not fighting great battles and doing spectacular things, but the fleet is there just the same, and its mere exsistence enables the bBritish commerce to continue. So it is with our System. Business is proceeding as normal in this country, as the country generally has confidence in our preparedness for any eventuality. The question is, are we fully prepared?
I hope you are having a thorough rest and appreciate how much you need and deserve it.
With kindest regards, believe me,
Sincerely yours,
Governor.
Original Format
Letter
To
McAdoo, W. G. (William Gibbs), 1863-1941
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to William G. McAdoo,” 1915 August 2, WWP18495, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.