Benjamin Strong Jr. to Woodrow Wilson
Title
Benjamin Strong Jr. to Woodrow Wilson
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18795
Date
1922 May 26
Description
Benjamin Strong Jr. writes to the President regarding a just passed Federal Reserve bill.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
My dear Mr. President:
With considerable reluctance I am asking for sufficient of your time to read the following comments, which I am taking the liberty of addressing to you, in regard to the bill which has just passed the Congress, providing for an additional member of the Federal Reserve Board, and containing in addition a provision that no building shall be constructed by a Federal reserve bank at an expense in excess of $250,000 except with the approval of Congress. The latter provision I understand does not apply to buildings now in course of construction.As to the provision enlarging the membership of the Board, I deeply regret its necessity. It appears, however, to afford the opportunity, if you should think it wise to do so, to reappoint Governor Harding as a member of the Board and Governor of the Board. This I believe is essential to the welfare of the System.As to the limitation upon building operations of the reserve banks, permit me to respectfully suggest that this is the first step by Congress in the direction of a political and legislative control of the affairs of the banking system, which, if extended as may indeed be the case, is liable to impair its usefulness hereafter and to subject it to repeated and progressive legislative restriction, which in the long run will be dangerous if not fatal.
Executive assent to this first step would appear to me to be encouraging to those who are now criticizing the System, towqard the extension of this sort of legislative supervision.You will, I am sure, understand, my dear Mr. President, that I am submitting this personal expression of views to you most respectfully from the most disinterested motives and because I believe it to be in the interest of the Federal Reserve System and of the country that the bill should be vetoed. If the provision as to the bank buildings were omitted I would not feel this way - in fact, in my last talk with Secretary Mellon I took the liberty of expressing the view to him that I thought the enlargement of the Board by the addition of one member, as proposed by the bill, was the only method by which the subject of agricultural representation on the Board could be dealt with so as to avoid sacrificing Governor Harding.
If it might appear to you that I am guilty of any impropriety in writing to you directly on this subject, I hope that you will ascribe it to the deep interest which I feel in the welfare of the Federal Reserve System, with which I have been connected since its organization, and in the service of which I have given some years of hard work and anxious thought.
With assurance of my esteem, believe me,
Benj. Strong,
Governor.
With considerable reluctance I am asking for sufficient of your time to read the following comments, which I am taking the liberty of addressing to you, in regard to the bill which has just passed the Congress, providing for an additional member of the Federal Reserve Board, and containing in addition a provision that no building shall be constructed by a Federal reserve bank at an expense in excess of $250,000 except with the approval of Congress. The latter provision I understand does not apply to buildings now in course of construction.As to the provision enlarging the membership of the Board, I deeply regret its necessity. It appears, however, to afford the opportunity, if you should think it wise to do so, to reappoint Governor Harding as a member of the Board and Governor of the Board. This I believe is essential to the welfare of the System.As to the limitation upon building operations of the reserve banks, permit me to respectfully suggest that this is the first step by Congress in the direction of a political and legislative control of the affairs of the banking system, which, if extended as may indeed be the case, is liable to impair its usefulness hereafter and to subject it to repeated and progressive legislative restriction, which in the long run will be dangerous if not fatal.
Executive assent to this first step would appear to me to be encouraging to those who are now criticizing the System, towqard the extension of this sort of legislative supervision.You will, I am sure, understand, my dear Mr. President, that I am submitting this personal expression of views to you most respectfully from the most disinterested motives and because I believe it to be in the interest of the Federal Reserve System and of the country that the bill should be vetoed. If the provision as to the bank buildings were omitted I would not feel this way - in fact, in my last talk with Secretary Mellon I took the liberty of expressing the view to him that I thought the enlargement of the Board by the addition of one member, as proposed by the bill, was the only method by which the subject of agricultural representation on the Board could be dealt with so as to avoid sacrificing Governor Harding.
If it might appear to you that I am guilty of any impropriety in writing to you directly on this subject, I hope that you will ascribe it to the deep interest which I feel in the welfare of the Federal Reserve System, with which I have been connected since its organization, and in the service of which I have given some years of hard work and anxious thought.
With assurance of my esteem, believe me,
Benj. Strong,
Governor.
Original Format
Letter
To
Wilson, Woodrow, 1856-1924
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Woodrow Wilson,” 1922 May 26, WWP18795, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.