Benjamin Strong Jr. to Carter Glass

Title

Benjamin Strong Jr. to Carter Glass

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18778

Date

1920 January 14

Description

Benjamin Strong Jr. replies to Carter Glass's letter, to try and resolve their differences over the Federal Reserve.

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

CASTLE HOT SPRINGS HOTEL
Hot Springs, Arizona

My dear Secretary Glass:
Your most kind letter of December 31 reached me just as I was taking the train, and since reaching Arizona I have laid aside every thought of mail in favor of complete rest, which I sorely needed. But I left greatly relieved by the receipt of your letter and freed of an anxiety which had weighed on my mind ever since my return from abroad.I hope you understand that I have always regarded my work in the Reserve Bank as a great privilege, - the greatest in fact that one could wish to enjoy, - and though for the last five years I have, as you say, faced a rather grim fight with tuberculosis, I cannot regard that as any different from what my own boy was glad to do when he went to France. It was worth it and I wouldn’t have missed it for any consideration. As I have frequently said to Leffingwell, it would be a grievous disappointment to me if, after five years work to make the Reserve Bank of New York, and possibly to help make the System, an operating success, I found myself out of accord with the author of the Reserve Act. But I am confident that such is not really the case. There is at present, and has been now for three years, such a difficult and distorted situation, due to the war and to war finance, that we have none of us learned by the experience of more normal conditions, just how the Reserve Bank and the money market in New York can be made to function together. Although necessary, I have always regretted the extent to which I had personally dominated the New York situation. It has aroused jealousies and distrust of motives, and at times I cannot help but wonder whether I or some successor at the head of the bank may not some day be guilty of some blunder, or worse, which might discredit us all. On the other hand, anything approaching the exercise of a control such as we have had, by a government body in Washington, I fear would in time, and with the changes which time bring, lead to a political control of the System with the ever present possibility of misuse.What I most want to do, Mr. Secretary, is to bring our minds to meet on the problems of the System for the long future, even more than on present conditions and policies which are too unusual to be the basis of permanent judgment. Nothing is nearer my heart than to see this great reform established as the foundation of our country’s future prosperity and security. And not least in importance to me has been the privilege and pleasure of sharing with you for a time some of these duties and burdens which I have really enjoyed, and so largely because it has been in association with you.But I want to finish the work, and to have you feel that it was well done, and more particularly that it was honestly done for the best welfare of the country.Again, many thanks for your letter and for your confidence. I wish you the same success in the Senate which you have enjoyed in the House and the Treasury and much happiness with it.

Benj. Strong.

Original Format

Letter

To

Glass, Carter, 1858-1946

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08204.pdf
D08205.pdf

Tags

Citation

Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Carter Glass,” 1920 January 14, WWP18778, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.