Benjamin Strong Jr. to William G. McAdoo
Title
Benjamin Strong Jr. to William G. McAdoo
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18538
Date
1916 December 11
Description
Benjamin Strong Jr. writes William G. McAdoo to urge completion of currency reform.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
Dear Mr. Secretary:
You may occasionally give a moment’s thought to an exile out here in the mountains and wonder how I am occupying my time. In addition to following the doctor’s orders, meaning a certain amount of time devoted to rest, mild exercise, etc., I have been doing a lot of reading, among other things, convincing myslelf that the currency and finance laws of the United States are a wretched jumble and that now is a magnificent opportunity to complete the work so well started by the Federal Reserve Act by two other great pieces of liegislation.
Occasionally I have been tempted to write the President about some of these matters, but so far have been contented to keep your associates on the Federal Reserve Board pretty well peppered with correspondence.
I am now addressing you personally to inquire whether in your opinion there is any prospect or possibility of further currency legislation by the present administration, and whether in connection with legislation of that character the President is willing to consider undertaking a determined effort to introduce the budget system. As to the first, my own views are pretty well crystallized and what is needed is a responsible sponsor, or preferably, the support of yourself and the Federal Reserve Board together with that of the President. I really feel that the subject is so thoroughly understood by those who are actively engaged in operating the Federal Reserve System that no special inquiry or further study of the subject is necessary beyond the usual proceedure to Committees of the Senate and House.
As to the second matter, that is, a budget system, I have been astonished in discussing this matter both with bankers and those connected with the government to find how little the subject is understood, and to get a somewhat better point of view as to possible legislation, I have been giving a little time to studying the methods pursued by the British Government.
Here is opportunity for constructive legislation of utmost value to the country and we can well afford to take lessons in Mr. Gladstone’sWilliam E. Gladstone school if we are ever to introduce economies and orderly expenditure of the government’s revenues into our woown system. I am so much interested in this matter that this letter is being sent to you notwithstanding the great pressure on your time, to inquire whether there is any hope of progress in these two subjects, and if so, whether I can be of any service.
The propsect of greatly enlarged expenditures, necessity for larger revenues and the lack of any statutory system by which the amount of our revenues and expenditures are brought into balance will likely expose the country to an era of Congressional extravagance beyond all precedent unless some reasonable check can be introduced in the near future.
I hope you keep well and returned to your labors well fortified by a good rest this past Summer.
With kindest regards, I beg to remain,
Respectfully yours,
You may occasionally give a moment’s thought to an exile out here in the mountains and wonder how I am occupying my time. In addition to following the doctor’s orders, meaning a certain amount of time devoted to rest, mild exercise, etc., I have been doing a lot of reading, among other things, convincing myslelf that the currency and finance laws of the United States are a wretched jumble and that now is a magnificent opportunity to complete the work so well started by the Federal Reserve Act by two other great pieces of liegislation.
Occasionally I have been tempted to write the President about some of these matters, but so far have been contented to keep your associates on the Federal Reserve Board pretty well peppered with correspondence.
I am now addressing you personally to inquire whether in your opinion there is any prospect or possibility of further currency legislation by the present administration, and whether in connection with legislation of that character the President is willing to consider undertaking a determined effort to introduce the budget system. As to the first, my own views are pretty well crystallized and what is needed is a responsible sponsor, or preferably, the support of yourself and the Federal Reserve Board together with that of the President. I really feel that the subject is so thoroughly understood by those who are actively engaged in operating the Federal Reserve System that no special inquiry or further study of the subject is necessary beyond the usual proceedure to Committees of the Senate and House.
As to the second matter, that is, a budget system, I have been astonished in discussing this matter both with bankers and those connected with the government to find how little the subject is understood, and to get a somewhat better point of view as to possible legislation, I have been giving a little time to studying the methods pursued by the British Government.
Here is opportunity for constructive legislation of utmost value to the country and we can well afford to take lessons in Mr. Gladstone’sWilliam E. Gladstone school if we are ever to introduce economies and orderly expenditure of the government’s revenues into our woown system. I am so much interested in this matter that this letter is being sent to you notwithstanding the great pressure on your time, to inquire whether there is any hope of progress in these two subjects, and if so, whether I can be of any service.
The propsect of greatly enlarged expenditures, necessity for larger revenues and the lack of any statutory system by which the amount of our revenues and expenditures are brought into balance will likely expose the country to an era of Congressional extravagance beyond all precedent unless some reasonable check can be introduced in the near future.
I hope you keep well and returned to your labors well fortified by a good rest this past Summer.
With kindest regards, I beg to remain,
Respectfully yours,
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,” 1916 December 11, WWP18538, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.