Russell Cornell Leffingwell to Matteson
Title
Russell Cornell Leffingwell to Matteson
Creator
Leffingwell, R. C. (Russell Cornell), 1878-1960
Identifier
WWP18670
Date
1919 June 19
Description
A report by Russell C. Leffingwell on the public debt.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
TELEGRAM
ATTENTION MR. MATTESON
Governor,Federal Reserve Bank,New York.
For your information I have sent following telegram to other districts:
Personal. I hope you will make an effort to bring about exchanges of certificates maturing between July 15 and September 9 inclusive, for certificates of series T-4 maturing Sept. 15. There are two reasons why such exchanges are very important.
First: if we could get a large amount of certificates exchanged in the next ten days or two weeks it would greatly reduce the treasury certificat program which must be presented to the banks of the country since it would eliminate a large amount of refunding.
Second: it is essential in order to prevent money disturbance on and about Sept. 15 that a large amound of certificates of series T 4 should be issued and I do not think it expedient on account of the extremely short maturity for the Treasury to sell such certificates for cash or by credit.
I may add that by giving banking insititutions this privilege of exchange we give them an opportunity to take a certificate which should be readily marketable to tax payers in exchange for certificates for which there is comparatively light investment demand.
If banks will make the transaction and dispose of tax certificates to their customers it will enable them to liquidate to that extent their borrowings from you while at the same time protecting themselves from the possibility of a strain later when the taxes are due.
New York has reported exchanges aggregating $46,750,000 to date.
Leffingwell
ATTENTION MR. MATTESON
Governor,Federal Reserve Bank,New York.
For your information I have sent following telegram to other districts:
Personal. I hope you will make an effort to bring about exchanges of certificates maturing between July 15 and September 9 inclusive, for certificates of series T-4 maturing Sept. 15. There are two reasons why such exchanges are very important.
First: if we could get a large amount of certificates exchanged in the next ten days or two weeks it would greatly reduce the treasury certificat program which must be presented to the banks of the country since it would eliminate a large amount of refunding.
Second: it is essential in order to prevent money disturbance on and about Sept. 15 that a large amound of certificates of series T 4 should be issued and I do not think it expedient on account of the extremely short maturity for the Treasury to sell such certificates for cash or by credit.
I may add that by giving banking insititutions this privilege of exchange we give them an opportunity to take a certificate which should be readily marketable to tax payers in exchange for certificates for which there is comparatively light investment demand.
If banks will make the transaction and dispose of tax certificates to their customers it will enable them to liquidate to that extent their borrowings from you while at the same time protecting themselves from the possibility of a strain later when the taxes are due.
New York has reported exchanges aggregating $46,750,000 to date.
Leffingwell
Original Format
Report
To
Matteson
Files
Collection
Citation
Leffingwell, R. C. (Russell Cornell), 1878-1960 , “Russell Cornell Leffingwell to Matteson,” 1919 June 19, WWP18670, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.