Benjamin Strong Jr. to Russell Cornell Leffingwell
Title
Benjamin Strong Jr. to Russell Cornell Leffingwell
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18748
Date
1919 October 16
Description
Benjamin Strong Jr. writes Russell C. Leffingwell regarding the fourth Liberty Loan.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
My dear Russell:
In order that you may be somewhat informed of developments, I am writing to advise you that we are receiving numerous inquiries from banks as to the rates which should be charged for the renewal of loans made upon the bonds of the Fourth Liberty Loan and upon Victory Notes, Mr. Case telling me that he has received probably fifteen inquiries of that character in the last two days. The indication is that rates will be advanced to 4-3/4% and, in some cases, 5%.
But, at the same time, we are receiving a good many inquiries from banking friends as to when the Federal Reserve Bank is going to take steps to bring some check to the speculative fever that seems to be spreading over the country, not only as to the stock exchange, but real estate, commodities, etc., etc. My associates in the bank tell me that there is a growing feeling that a dangerous situation is developing.
While I do not propose to permit myself to be influenced by remarks and discussions of that character, I think the indications are clearly that the bankers in general expect something will be done along the lines of our recent discussion, and, furthermore, I think most of them believe that something should be done. Our invested funds today have reached nine hundred eighty millions, and I expect will be running above a billion dollars steadily pretty soon.
I am thinking of running over to Washington next Tuesday night, returning Friday, but I shall not do so unless you feel that the time has come for us to have that meeting.
B.S.
In order that you may be somewhat informed of developments, I am writing to advise you that we are receiving numerous inquiries from banks as to the rates which should be charged for the renewal of loans made upon the bonds of the Fourth Liberty Loan and upon Victory Notes, Mr. Case telling me that he has received probably fifteen inquiries of that character in the last two days. The indication is that rates will be advanced to 4-3/4% and, in some cases, 5%.
But, at the same time, we are receiving a good many inquiries from banking friends as to when the Federal Reserve Bank is going to take steps to bring some check to the speculative fever that seems to be spreading over the country, not only as to the stock exchange, but real estate, commodities, etc., etc. My associates in the bank tell me that there is a growing feeling that a dangerous situation is developing.
While I do not propose to permit myself to be influenced by remarks and discussions of that character, I think the indications are clearly that the bankers in general expect something will be done along the lines of our recent discussion, and, furthermore, I think most of them believe that something should be done. Our invested funds today have reached nine hundred eighty millions, and I expect will be running above a billion dollars steadily pretty soon.
I am thinking of running over to Washington next Tuesday night, returning Friday, but I shall not do so unless you feel that the time has come for us to have that meeting.
B.S.
Original Format
Letter
To
Leffingwell, R. C. (Russell Cornell), 1878-1960
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Russell Cornell Leffingwell,” 1919 October 16, WWP18748, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.