(1) Date requested by Columbian – George Washington University. – o – Name in full: Emma Reba Moseley Bailey, of Georgia. – o – Emma Reba Moseley, of Alabama, daughter of Dr. Robert A. Moseley, Sr., and Mrs. Maria Brooks Stevens Moseley, (both native Alabamians, and the history of Alabama, Georgia, South Carolina, Virginia and Texas, also Connecticut, is the history of many of their families). I am the descendant of Judges, hence LAWYER, The representative woman of the South. Business addresses: Lock Box 464, and General Land Office, Washington, D. C. Legal Residence: Rome, Floyd Co., Georgia. City Residence: No. 1006 I Street N. W., Washington, D. C. – o – Born in Shelby County, Alabama. Married June 10, 1873, and now the widow of Edward Bailey, who was a native of Greenville, South Carolina, a citizen by adoption of Rome, Floyd County, Georgia, Democrat, Presbyterian Elder, (his pastor at Rome, Georgia, was Mrs. [*60529*](2) Woodrow Wilson's father), Mason, Odd Fellow, Member of Royal Arcanum and Columbia Typographical Union, Practical Printer, Proof Reader, Publisher, and Editor –– a legitimate descendant of King Charles The First of Scotland, on his father's side who served in the Indian War, from Georgia, and his mother was formerly Miss Margaret Crooks, of Georgia. – o – Degrees: LI.B. and LL.M. from the Washington College of Law; May 21, 1899, and May 22, 1901, respectively. Years in said College from 1897 to 1901 inclusive. Most notable actions while in The Washington College of Law were my ex tempore speeches: the one on Legal Loves at the Junior Banquet thereof, (from which Mrs. Jane Ellen Foster took her inspiration for hers) and the other adverse to polygamous marriages. My most generous action in connection with said school was my establishment of the Moseley–Bailey gold medal for the best scholarship for three years in said school, and this was, the year of its inception, bestowed on Miss Gertrude Leonard of Ohio. Afterwards the medal was discontinued because the school decided, as expressed by the Dean thereof, not to be in favor of awarding any medals. – o – Degrees: LL.M. and Doctor of Civil Law; June 3, 1902, and June 2, 1903, respectively, from the Columbian, now George Washington University. Years in said University, 1901 to 1907 inclusive, but rights accruing thereunder have been unjustly withheld –– [*60530*]–3– because I am a woman, i.e., Master of Patent Law and Master of Diplomacy. Master of Patent Law will be accorded but I have to fight for my Master of Diplomacy degree. – o – Admission to Bar of the Supreme Court of the District of Columbia January 2, 1901, on motion of Hon. D. W. Baker. Admission to Bar of the Court of Appeals of the District of Columbia, February 13, 1901, on motion of E. Richard Shipp, Lawyer, Professor, and author of several notable books on legal subjects. Admission to Bar of the Supreme Court of the United States January 13, 1908, on motion of Hon. Robert H. Deane of Ohio, noted as a lawyer, member of Congress, politician and judge. – o – Occupation: Clerk, examiner and adjudicator of public land claims, General Land Office, and a practicing lawyer –– on woman's rights, a constitutionalist. Offices held: Copyist, clerk and examiner of claims for pension in Pension Bureau, and clerk, examiner, and adjudicator of claims for a part of our public domain in General Land Office. Author of many articles on pertinent subjects for the religious and secular press and romances. [*60531*]- 4 - Have owned one daily, two weekly, one triweekly newspapers in toto (except the daily) in South Carolina and Georgia. Most notable article in New York American in support of Co-Education as opposed to Mrs. John A. Logan's dictum adverse to. Clubs and Societies: Was a member of the Junior Congress of the United States where I spoke many times, but most notable on my own Woman's Right Bill in 1903. Charter Member of the Columbian Athletic Association, 1901, 1902, 1903 inclusive. Active member of The Columbian Debating Society, 1901, 1902, 1903 inclusive; most notable speech on a phase of The Inter-State Commerce Law, made without preparation, and as Dr. Herrick said, "the best speech", but, you see, being a woman I could not go into the inter-collegiate debates and so forth -- But the long and short haul of Judges Clements and Knapp!!! A member of the Oratory Class of Columbian - George Washington University, Was unanimously elected Vice-President of the Post Graduate Classes of the School of Law and Diplomacy of the Columbian, now George Washington University, and in many instances presided as its president during the [absences] absence of 60532 -5- such president. A member of the Southern Relief Society, resigned because of my school duties, work, husband's health. Enroll me as a member of the Columbian-George Washington Law School Association. I inclose $1.00. Addenda------ One of the most notable distinctions of my life was the day I passed, when fifteen and one-half years of age, in public, written and oral examinations in Philosophy, Rhetoric, Virgil, Telemaque, Geometry, Algebra, Graduate Arithmetic, and a paper written by me on a selected subject. I was offered the Principalship, without examination, of a school of sixty students, from twenty years old down to primary grade, by the Clairman or President of the Board of School Trustees. This examination was while I was a student at the Presbyterian Synodical Female Institute, now Isbell College, at Talladega, Alabama, where I was raised and married. 60533Wherein the preamble of the Constitution of the United States states that "We the people of the United States"; it meant men and women, and when the fourteenth amendment conferred citizenship by birth and naturalization, it was in these words: "All persons born or naturalized in the United States and subject to the jurisdiction thereof are citizens of the United States and of the state wherein they reside. No State shall make or enforce any law which shall abridge the privileges or immunities of the citizens of the United States". The fifteenth amendment succinctly states that: 1. "The rights of citizens of the United States to vote shall not be denied or abridged by the United States or by any state". 2. "The Congress shall have the power to enforce this article by proper legislation." This greatest Constitutional Right and privilege has appeared to lapse by reason of non user by the women or the differentiation and discrimination of the Codic Laws of the several states, and in the reason we, women, now ask for, either that legislation provided for in the above cited amendment, or for an amendment stating specifically that "Women shall exercise their right as citizens of the United States to vote". This would raise women from an economic status to the same stratum in the Home as man, and they would be interdependent and equal partners in the "Community Interest", resulting from the civil contract of matrimony. It would solidify and unify the man and woman into a concrete unit of two equal parts, with mutual, individual, and 60534-2- personal rights and thus benefit the family, the town, the county, the State, the Nation. It would nullify the necessity to a great extent of Club life, foot or base ball interest, for at home the companionship resulting therefrom would suffice, and the divorce evil would be reduced to a minimum status. It would prevent the women, whether wife, mother, daughter, or sister from being constituted "White Slaves" in the economics of the household, or "White Slaves" for local, State, National immoral purposes. And greatest of all, it would raise the ballot, the franchise, the vote from a political asset to the greatest of all Constitutional Rights, with equal opportunity, equal work, equal wage to all the citizens of the United States of America. To you, my brethren, Chivalrous Knights of our own most beloved Southland, I appeal. Give us Women of the South the same status as women of the enfranchised states for our benefit, protection, and happiness, and your children's children shall rise up and call you Ever Blessed. Most respectfully, 60535[*89*] [*2*] Department of State Office of the Secretary My Dear Tumulty - I enclose complete copy of suffrage editorial - the papers did not publish all of it. Now is the time for you to climb down off the fence & the mothers side will be your side - Yours Bryan [*60536*][*[89]*] EDITORIAL WHICH WILL APPEAR IN JULY NUMBER OF THE COMMONER. RELEASED FOR FRIDAY MORNING [*July 17*] PAPERS. VOTES FOR WOMEN The voters of Nebraska will, at the election next November, adopt or reject a proposed amendment extending suffrage to women on equal terms with men. As a citizen of that State it will be my duty to participate in the decision to be rendered at the polls. I have delayed expressing an opinion on this subject, partly because I have been seeking information, and partly because my time has been occupied with national questions upon which the entire country was acting; but now that the issue is presented in my State, I take my position. I shall support the amendment. I shall ask no political rights for myself that I am not willing to grant to my wife. As man and woman are co-tenants of the earth and must work out their destiny together, the presumption is on the side of equality of treatment in all that pertains to their joint life and its opportunities. The burden of proof is on those who claim for one an advantage over the other in determining the conditions under which both shall live. This claim has not been established in the matter of suffrage. On the contrary, the objections raised to woman suffrage appear to me to be invalid, while the arguments advanced in support of the proposition are, in my judgement, convincing. The first objection which I remember to have heard was 605372 that as woman cannot bear arms she should not have a voice in deciding questions that might lead to war, or in enacting laws that might require an army for their enforcement. This argument is seldom offered now, for the reason that as civilization advances laws are obeyed because they are an expression of the public opinion, not merely because they have power and lead behind them. And as we look back over the past, we may well wonder whether the peace movement would not have grown more rapidly than it has had woman, who suffers more than man from the results of war, been consulted before hostilities began. Second. It is urged by some that woman's life is already full of care and that the addition of suffrage would either overburden her or turn her attention away from the duties of the home. The answer made to this is that the exercise of the franchise might result in a change of thought and occupation that would relieve the monotony of woman's work and give restful variety to her activities. And surely the home will not suffer if the mother, "the child's first teacher", is able to intelligently discuss with her family the science of government and the art of successfully administering it. Third. Many well meaning men and women affirm that suffrage would work a harm to woman by lessening the respect in which she is held. This argument would have more weight had it not been employed against every proposition advanced in favor of the enlargement of woman's sphere, This objection was once raised to the higher education of woman, but it is no longer heard. The same objection was offered each time 605383 the door has opened and woman, instead of suffering degradation, has risen. These objections, however honestly advanced, have proven impotent to retard woman's progress. May not the fears, sincerely entertained by the opponents of woman's suffrage, be found to be as groundless as those that once forced the widow in Eastern India to ascend the funeral pyre or as those that now exclude Mohammedan women from the social benefits and responsibilities which the woman of the Christian world share? And are not the second and third objections above stated refuted, to some extent at least, by the fact that in the states which have adopted woman's suffrage (and in the other nations that have adopted it) there is no agitation for a return to the system under which man has a monopoly of the right to vote? Is it not fair to assume that an effort would be made to correct the mistake if woman's suffrage had really failed to give satisfaction to the people where it has been tried? If one were in doubt as to which side of the controversy to take, he would be justified in giving weight to the fact that organization and enthusiasm are on the side of those who favor woman's suffrage. Organization is an evidence of earnestness, as well as of a comprehension of the subject. People do not associate themselves together to secure a given end until they have reached a definite conclusion in regard to its desirability and feel that its accomplishment is worth the effort for which it calls. It is quite evident that those who disinterestedly desire woman's suffrage are willing to make 605394 greater sacrifices to secure it than those who disinterestedly oppose woman's suffrage are willing to make to prevent it. As for myself, I am not in doubt as to my duty. It is not my purpose to discuss the subject with elaboration at this time, but I desire to present the argument to which I give the greatest weight. Without minimizing other arguments advanced in support of the extending of suffrage to woman, I place the emphasis upon the mother's right to a voice in moulding the environment which shall surround her children - an environment which operates powerfully in determining whether her offspring will crown her latter years with joy or "bring down her gray hairs in sorrow to the grave." The Creator has placed upon the mother a burden which she could not shift if she so desired and He has given her th disposition to bear it. Her life trembles in the balance at the child's birth; her active years are given to the care and nurture of her children; her nerve force and vital energy are expended in their behalf; her exhaustless love is poured out upon them. Because the wealth of her existence is bestowed upon them, they are a part of her very being - “where your treasure is, there will your heart be also.” When one considers the cost to parents, especially to the mother, of raising a child, it seems impossible that any one would attempt to lead a child astray or rob its parents of the priceless reward to which they are entitled; and yet there are in every generation - aye, in every community - those who are inhuman enough to deliberately lie in wait to make a wreckage of the lives of young men and young women. They lay snares 605405 for them; they set traps for them; and the men who ply this ghastly trade for gain are allowed to use the ballot to advance their pecuniary interests. I am not willing to stay the mother’ s hand if she thinks that by the use of suffrage she can safeguard the welfare of those who are dearer to her than her own life. The mother can justly claim the right to employ every weapon which can be made effective for the protection of those whose interests she guards, and the ballot will put within her reach all the instrumentalities of government, including the police power. If she is a widow, there is no one who is in a position to speak for her in this matter of supreme importante; if her husband is living, she can supplement his influence if they agree as to what is best for those under their joint care; if they do not agree, who will say that only the father should be consulted? For a time I was impressed by the suggestion that the question should be left to the women to decide - a majority to determine whether the franchise should be extended to woman; but I find myself less and less disposed to endorse this test Samuel Johnson coined an epigram which is in point here, namely, that "no man's conscience can tell him the right of another man." Responsibility for the child's welfare rests primarily upon the parent; the parent receives in largest measure the blessings that flow from the child's life, if that life is nobly employed, and upon the parent falls the blow with severest force if the child's life is misspent. Why should any mother, therefore, be denied the use of the franchise 605415 to safeguard the welfare of her child merely because another mother may not view her duty in the same light? Politics will not suffer by woman's entrance into it. If the political world has grown more pure in spite of the evil influence that have operated to debase it, it will not be polluted by the presence and participation of woman. Neither should we doubt that woman can be trusted with the ballot. She has proven herself equal to every responsibility imposed upon her; she will not fail society in this emergency. Let her vote! And may that discernment which has, throughout the ages, ever enabled to quickly grasp great truths - made her "the last at the cross and the first at the sepulchre"- so direct her in the discharge of her political duties as to add new glories to her and through her still further bless society. 60542President Wilson Compliments of Helen H. Gardener An Address to the Congress of the United States by Carrie Chapman Catt President of the National American Women Suffrage Association "She has given me to democracy : give democracy to her". [illegible signature] From The Woman Citizen National Woman Suffrage Publishing Company, inc. 171 Madison Avenue New York, N.Y. 89 60543AN ADDRESS TO THE CONGRESS OF THE UNITED STATES Woman suffrage is inevitable. Suffragists knew it before November 6, 1917; opponents afterward. Three distinct causes make it inevitable. 1. The history of our country, Ours is a nation born of revolution; of rebellion against a system of government so securely entrenched in the customs and traditions of human society that in 1776 it seemed impregnable. From the beginning of things nations had been ruled by kings and for kings, while the people served and paid the cost. The American Revolutionists boldly proclaimed the heresies: "Taxation without representation is tyranny." "Governments derive their just powers from the consent of the governed." Our Theories Make Woman Suffrage Inevitable The Colonists won and the nation which was established as a result of their victory has held unfailingly that these two fundamental principles of democratic government are not only the spiritual source of our national existence but have been our chief historic pride and at all times the sheet anchor of our liberties. Eighty years after the Revolution Abraham Lincoln welded those two maxims into a new one: "Ours is a government of the people, by the people and for the people." Fifty years more passed and the President of the United States, Woodrow Wilson, in a mighty crisis of the nation, proclaimed to the world: "We are fighting for the things which we have always carried nearest our hearts-for democracy, for the right of those who submit to authority to have a voice in their own government." All the way between these immortal aphorisms political leaders have declared unabated faith in their truth. Not one American has arisen to question their logic in the one hundred and forty-one years of our national existence. However stupidly our country may have evaded the 1 60544logical application at times, it has never swerved from its devotion to the theory of democracy as expressed by those two axioms. Not only has it unceasingly upheld the THEORY but it has carried these theories into PRACTICE whenever men made application. Certain denominations of Protestants, Catholics, Jews, non-land holders, workingmen, Negroes, Indians, were at one time disfranchised in all, or in part, of our country. Class by class they have been admitted to the electorate. Political motives may have played their part in some instances but the only reason given by historians for their enfranchisement is the unassailability of the logic of these maxims of the Declaration. Meantime the United States opened wide its gates to men of all the nations of earth. By the combination of naturalization granted the foreigner after a five-years' residence by our national government and the uniform provision of the State constitutions which extends the vote to male citizens, it has been the custom in our country for three generations that any male immigrant, accepted by the national government as a citizen, automatically becomes a voter in any State in which he chooses to reside, subject only to the minor qualifications prescribed by the State. Justifiable exceptions to the general principle might have been entered. Men just emerging from slavery, untrained to think or act for themselves and in most cases wholly illiterate, were not asked to qualify for voting citizenship. Not even as a measure of national caution has the vote ever been withheld from immigrants until they have learned our language, earned a certificate of fitness from our schools or given definite evidence of loyalty to our country. When such questions have been raised, political leaders have replied : “ What ! Tax men and in return give them no vote ; compel men to obey the authority of a government to which they may not give consent ! Never. That is un-American.” So, it happens that men of all nations and all races, except the Mongolian, may secure citizenship and automatically become voters in any State in the Union, and even the Mongolian born in this country is a citizen and has the vote. With such a history behind it, how can our nation escape the logic it has never failed to follow, when its last unenfranchised class calls for the vote ? Behold our Uncle Sam floating the banner with one hand, “Taxation without representation is tyranny,” and with the other seizing the billions of dollars paid in taxes by women to whom he refuses “representation.” Behold him again, welcoming the boys of twenty-one and the newly-made immigrant citizen to “a voice in their own government" 2 while he denies that fundamental right of democracy to thousands of women public school teachers from whom many of these men learn all they know of citizenship and patriotism, to women college presidents, to women who preach in our pulpits, interpret law in our courts, preside over our hospitals, write books and magazines and serve in every uplifting moral and social enterprise. Is there a single man who can justify such inequality of treatment, such outrageous discriminations ? Not one. Woman suffrage became an assured fact when the Declaration of Independence was written. It matters not at all whether Thomas Jefferson and his compatriots thought of women when they wrote that immortal document. They conceived and voiced a principle greater than any man. “A Power not of themselves which makes for righteousness” gave them the vision and they proclaimed truisms as immutable as the multiplication table, as changeless as time. The Hon. Champ Clark announced that he had been a woman suffragist ever since he “got the hang of the Declaration of Independence.” So it must be with every other American. The amazing thing is that it has required so long a time for a people, most of whom know how to read, “to get the hang of it.” Indeed, so inevitable does our history make woman suffrage that any citizen, political party, Congress or Legislature that now blocks its coming by so much as a single day, contributes to the indefensible inconsistency which threatens to make our nation a jest among the onward-moving peoples of the world. Our Practice Makes Woman Suffrage Inevitable 2. The suffrage for women already established in the United States makes woman suffrage for the nation inevitable. When Elihu Root, as President of the American Society of International Law, at the eleventh annual meeting in Washington, April 26, 1917, said, “The world cannot be half democratic and half autocratic. It must be all democratic or all Prussian. There can be no compromise,” he voiced a general truth. Precisely the same intuition has already taught the blindest and most hostile foe of woman suffrage that our nation cannot long continue a condition under which government in half its territory rests upon the consent of half the people and in the other half upon the consent of all the people ; a condition which grants representation to the taxed in half its territory and denies it in the other half ; a condition which permits 3 [*60545*]women in some States to share in the election of the President, Senators and Representatives and denies them that privilege in others. It is too obvious to require demonstration that woman suffrage, now covering half our territory, will eventually be ordained in all the nation. No one will deny it ; the only question left is when and how will it be completely established. Our Leadership Makes Woman Suffrage Inevitable 3. The leadership of the United States in world democracy compels the enfranchisement of its own women. The maxims of the Declaration were once called “ fundamental principles of government.” They are now called “American principles” or even “Americanisms.” They have become the slogans of every movement toward political liberty the world around ; of every effort to widen the suffrage for men or women in any land. Not a people, race or class striving for freedom is there, anywhere in the world, that has not made our axioms the chief weapon of the struggle. More, all men and women the world around, with far-sighted vision into the verities of things, know that the world tragedy of our day is not now being waged over the assassination of an Archduke, nor commercial competition, nor national ambitions, nor the freedom of the seas—it is a death grapple between the forces which deny and those which uphold the truths of the Declaration of Independence. Our “Americanisms” have become the issue of the great war ! Every day the conviction grows deeper that a world humanity will emerge from the war, demanding political liberty and accepting nothing less. In that new struggle there is little doubt that men and women will demand and attain political liberty together. To-day they are fighting the world’s battle for Democracy together. Men and women are paying the frightful cost of war and bearing its sad and sickening sorrows together. To-morrow they will share its rewards together in democracies which make no discriminations on account of sex. These are new times and, as an earnest of its sincerity in the battle for democracy, the government of Great Britain has not only pledged votes to its disfranchised men and to its women, but the measure passed the House of Commons in June, 1917, by a vote of 7 to 1 and will be sent to the House of Lords in December with the assurances of Premier Lloyd George that it will shortly become a national law. The measure will 4 apply to England, Scotland, Ireland, Wales and all the smaller British islands. Canada, too, has enfranchised the women of all its provinces stretching from the Pacific Coast to Northern New York, and the Premier has predicted votes for all Canadian women before the next national election. Russia, whose opposing forces have made a sad farce of the new liberty, is nevertheless pledged to a democracy which shall include women. It must be remembered that no people ever passd from absolute autocracy into a smoothly running democracy with ready-made constitution and a full set of statutes to cover all conditions. Russia is no exception. She must have time to work out her destiny. Except those maxims of democracy put forth by our own country, it is interesting to note that the only one worthy of immortality is the slogan of the women of New Russia, "Without the participation of women, suffrage is not universal.” France has pledged votes to its women as certainly as a Republic can. Italian men have declared woman suffrage an imperative issue when the war is over and have asked its consideration before. The city of Prague (Bohemia) has appointed a Commission to report a new municipal suffrage plan-which shall include women. Even autocratic Germany has debated the question in the Imperial Reichstag. In the words of Premier Lloyd George : “ There are times in history when the world spins along its destined course so leisurely that for centuries it seems to be at a standstill. Then come awful times when it rushes along at so giddy a pace that the track of centuries is covered in a single year. These are the times in which we now live.” It is true ; democracy, votes for men and votes for women, making slow but certain progress in 1914, have suddenly become established facts in many lands in 1917. Already our one-time Mother Country has become the standard bearer of our Americanisms, the principles she once denied, and—cynical fact—Great Britain, not the United States, is now leading the world on to the coming democracy.* Any man who has red * The present bill provides that the parliamentary vote shall be extended to women. All other suffrage rights on equal terms with men have long been enjoyed by the women of England, Scotland, Ireland and Wales ; the women of Canada too have had municipal suffrage for many years, the qualifications varying in different provinces, and the women of Australia and New Zealand have long had full suffrage on equal terms with men. The Scandinavian countries, too, have outstripped us in applied democracy and have taken the second lead. Universal suffrage including women is already established in Finland, Norway, Denmark and Iceland, while Sweden long ago gave women equal political rights with men, except the vote for Parliament. The King has twice recommended that this disability be removed and action is promised soon. 5 [*60546*]American blood in his veins, any man who has gloried in our history and has rejoiced that our land was the leader of world democracy, will share with us the humbled national pride that our country has so long delayed action upon this question that another country has beaten us in what we thought was our especial world mission. The Logic of the Situation Calls for Immediate Action Is it not clear that American history makes women suffrage inevitable ? That full suffrage in twelve States makes its coming in all forty-eight States inevitable ? That the spread of democracy over the world, including votes for the women of many countries, in each case based upon the principles our Republic gave to the world, compels action by our nation ? Is it not clear that the world expects such action and fails to understand its delay ? In the face of these facts we ask you, Senators and Members of the House of Representatives of the United States, is not the immediate enfranchisement of the women of our nation the duty of the hour? Why hesitate ? Not an inch of solid ground is left for the feet of the opponent. The world's war has killed, buried and pronounced the obsequies upon the hard-worked "war argument." Mr. Asquith, erstwhile champion anti-suffragist of the world, has said so and the British Parliament has confirmed it by its enfranchisement of British women. The million and fifteen thousand women of New York who signed a declaration that they wanted the vote, plus the heavy vote of women in every State and country where women have the franchise, have finally and completely disposed of the familiar "they don't want it" argument. Thousands of women annually emerging from the schools and colleges have closed the debate upon the one-time serious "they don't know enough" argument. The statistics of police courts and prisons have laid the ghost of the "too bad to vote" argument. The woman who demanded the book and verse in the Bible which gave men the vote, declaring that the next verse gave it to women, brought the "Bible argument" to a sudden end. The testimony of thousands of reputable citizens of our own suffrage States and of all other suffrage lands that woman suffrage has brought no harm and much positive good, and the absence of reputable citizens who deny these facts, has closed the "women only double the vote" argument. The increasing number of women wage-earners, many supporting families and some supporting husbands, has thrown out the "woman are 6 represented” argument. One by one these pet misgivings have been relegated to the scrap heap of all rejected, cast-off prejudices. Not an argument is left. The case against woman suffrage, carefully prepared by the combined wit, skill and wisdom of opponents, including some men of high repute, during sixty years, has been closed. The jury of the New York electorate heard it all, weighed the evidence and pronounced it "incompetent, irrelevant and immaterial.” Historians tell us that the battle of Gettysburg brought our Civil War to an end, although the fighting went on a year longer, because the people who directed it did not see that the end had come. Had their sight been clearer, a year’s casualties of human life, desolated homes, high taxes and bitterness of spirit, might have been avoided. The battle of New York is the Gettysburg of the woman suffrage movement. There are those too blind to see that the end has come, and others, unrelenting and unreasoning, who stubbornly deny that the end has come although they know it. These can compel the women of the nation to keep a standing suffrage army, to finance it, to fight on until these blind and stubborn ones are gathered to their fathers and men with clearer vision come to take their places, but the casualties will be sex antagonism, party antagonism, bitterness, resentment, contempt, hate and the things which grow out of a rankling grievance autocratically denied redress. These things are not mentioned in the spirit of threat, but merely to voice well known principles of historical psychology. Benjamin Franklin once said “The cost of war is not paid at the time, the bills come afterwards.” So too the nation, refusing justice when justice is due, finds the costs accumulating and the bills presented at unexpected and embarrassing times. Think it over. If enfranchisement is to be given to women now, how is to be done ? Shall it be by amendment of State constitutions or by amendment of the Federal Constitution ? There are no other ways. The first sends the question from the Legislature by referendum to all male voters of the State ; the other sends the question from Congress to the Legislatures of the several States. Three Reasons for the Federal Method We elect the Federal method. There are three reasons why we make this choice and three reasons why we reject the State method. We choose the Federal method (1) because it is the quickest process and justice 7 [*60547*]demands immediate action. If passed by the Sixty-fifth Congress, as it should be, the amendment will go to forty-one Legislatures in 1919, and when thirty-six have ratified it, will become a national law. In 1869 Wyoming led the way and 1919 will round out half a century of the most self-sacrificing struggle any class ever made for the vote. It is enough. The British women’s suffrage army will be mustered out at the end of their half century of similiar endeavor. Surely men of the land of George Washington will not require a longer time than those of the land of George the Third to discover that taxation without representation is tyranny no matter whether it be men or women who are taxed! We may justly expect American men to be as willing to grant to the women of the United States as generous consideration as those of Great Britain have done. (2) Every other country dignifies woman suffrage as a national question. Even Canada and Australia, composed of self-governing states like our own, so regard it. Were the precedent not established our own national government has taken a step which makes the treatment of woman suffrage as a national question imperative. For the first time in our history Congress has imposed a direct tax upon women and has thus deliberately violated the most fundamental and sacred principle of our government, since it offers no compensating “ representation ” for the tax it imposes. Unless reparation is made it becomes the same kind of tyrant as was George the Third. When the exemption for unmarried persons under the Income Tax was reduced to $1,000, the Congress laid the tax upon thousands of wage-earning women—teachers, doctors, lawyers, bookkeepers, secretaries and the proprietors of many businesses. Such women are earning their incomes under hard conditions of economic inequalities largely due to their disfranchisement. Many of these, while fighting their own economic battle, have been contributors to the campaign for suffrage that they might bring easier conditions for all women. Now those contributions will be deflected from suffrage treasuries into government funds through taxation. Women realize the dire need of huge government resources at this time and will make no protest against the tax, but it must be understood, and understood clearly, that the protest is there just the same and that women income taxpayers with few exceptions harbor a genuine grievance against the government of the United States. The national government is guilty of the violation of the principle that the tax and the vote are inseparable; it 8 alone can make amends. Two ways are open: exempt the women from the Income Tax or grant them the vote—there can be no compromise. To shift responsibility from Congress to the States is to invite the scorn of every human being who has learned to reason. A Congress which creates the law and has the power to violate a world-acknowledged axiom of just government can also command the law and the power to make reparation to those it has wronged by the violation. To you, the Congress of the United States, we must and do look for this act of primary justice. (3) If the entire forty-eight States should severally enfranchise women, their political status would still be inferior to that of men, since no provision for national protection in their right to vote would exist. The women of California or New York are not wholly enfranchised, for the national government has not denied the States the right to deprive them of the vote. This protection can come only by Federal action. Therefore, since women will eventually be forced to demand Congressional action in order to equalize the rights of men and women, why not take such action now and thus shorten and ease the process? When such submission is secured, as it will be, forty-eight simultaneous State ratification campaigns will be necessary. By the State method thirty-six States would be obliged to have individual campaigns, and those would still have to be followed by the forty-eight additional campaigns to secure the final protection in their right to vote by the national government. We propose to conserve money, time and woman's strength by the elimination of the thirty-six State campaigns as unnecessary at this stage of the progress of the woman suffrage movement. Three Reasons Against the State Method The three reasons why we object to the State amendment process are: (1) The constitutions of many States contain such difficult provisions for amending that it is practically impossible to carry an amendment at the polls. Several States require a majority of all the votes cast at an election to insure the passage of an amendment. As the number of persons voting on amendments is usually considerably smaller than the number voting for the head of the ticket, the effect of such provision is that a majority of those men who do not vote at all on the amendment are counted as voting against it. For example, imagine a State casting 100,000 votes for Governor and 80,000 on a woman suffrage 9 60548amendment. That proportion would be a usual one. Now suppose there were 45,000 votes in favor and 35,000 against woman suffrage. The amendment would have been carried by 10,000 majority in a State which requires only a majority of the votes cast on the amendment, as in the State of New York. If, however, the State requires a majority of the votes cast at the election, the amendment would be lost by 10,000 majority. The men who were either too ignorant, too indifferent or too careless to vote on the question would have defeated it. Such constitutions have rarely been amended and then only on some non-controversial question which the dominant powers have agreed to support with the full strength of their “ machines.” New Mexico, for example, requires three-fourths of those voting at an election, including two-thirds from each county. New Mexico is surrounded by suffrage States but the women who live there probably can secure enfranchisement only by federal action. The Indiana constitution provides that a majority of all voters is necessary to carry an amendment ; thus the courts may decide that registered voters who did not go to the polls at all may be counted in the number, a majority of whom it is necessary to secure. The constitution cannot be amended. The courts have declared that the constitution prohibits the Legislature from granting “suffrage to women. What then can the women of Indiana do? They have no other hope than the Federal Amendment. Several State constitutions stipulate that a definite period of time must elapse before an amendment defeated at the polls can again be submitted. New York has no such provision and the second campaign of 1917 immediately followed the first in 1915; but Pennsylvania and New Jersey, both voting on the question in 1915, cannot vote on it again before 1920. New Hampshire has no provision for the submission of an amendment by the Legislature at all. A Constitutional Convention alone has the right to submit an amendment, and such conventions can not be called oftener than once in seven years. The constitutional complications in many of the States are numerous, varied and difficult to overcome. All careful investigators must arrive at the same conclusion that the only hope for the enfranchisement of the women of several States is through Congressional action. Since this is true, we hold it unnecessary to force women to pass through any more referenda campaigns. The hazards of the State constitutionl provisions which women are expected to overcome in order to get the vote, as compared with the easy process 10 by which the vote is fairly thrust upon foreigners who choose to make their residence among us, is so offensive an outrage to one’s sense of justice that a woman’s rebellion would surely have been fomented long ago had women not known that the discrimination visited upon them was without deliberate intent. The continuation of this condition is, however, the direct responsibility now of every man who occupies a position authorized to right the wrong. You are such men, Honorable Senators and Representatives. To you we appeal to remove a grievance more insulting than any nation in the wide world has put upon its women. 2. The second reason why we object to the State process is far more serious and important than the first. It is because the statutory laws governing elections are so inadequate and defective as to vouchsafe little or no protection to a referendum in most States. The need for such protection seems to have been universally overlooked by the lawmakers. Bipartisan election boards offer efficient machinery whereby the representatives of one political party may check any irregularities of the other. The interests of all political parties in an election are further protected by partisan watchers. None of these provisions is available to those interested in a referendum. In most States women may not serve as watchers and no political party assumes responsibility for a non-partisan question. In the State of New York women may serve as watchers. They. did so serve in 1915 and in 1917; nearly every one in the more than 5,000 polling places was covered by efficiently trained women watchers. The women believe that this fact had much to do with the favorable result. In twenty-four States there is no law providing for a recount on a referendum. Voters may be bribed, colonized, repeated and the law provides for no possible redress. In some States corrupt voters may be arrested, tried and punished, but that does not remove their votes from the total vote cast nor in any way change the results. When questions which are supported by men’s organizations go to referendum, such as prohibition, men interested may secure posts as election officials or party watchers and thus be in position to guard the purity of the election. This privilege is not open to women. That corrupt influences have exerted their full power against woman suffrage, we know well. I have myself seen blocks of men marched to the polling booth and paid money in plain sight, both men and brib- ers flaunting the fact boldly that they were “ beating the ——-—- women.” I have myself seen men who could not speak a word of English, nor write 11 60549their names in any language, driven to the polls like sheep to vote against woman suffrage and no law at the time could punish them for the misuse of the vote so cheaply extended to them, nor change the result. It is our sincere belief based upon evidence which has been completely convincing to us that woman suffrage amendments in several States have been won on referendum, but that the returns were juggled and the amendment counted out. We have given to such campaigns our money, our time, our strength, our very lives. We have believed the amendment carried and yet have seen our cause announced as lost. We are tired of playing the State campaign game with “ the political dice loaded and the cards stacked ” against us before we begin. The position of such an amendment is precisely like that of the defendant in a case brought before an inexperienced judge. After having heard the plaintiff, he untactfully remarked that he would listen to the defendant's remarks but he was bound to tell him in advance that he proposed to give the verdict to the plaintiff. From this lower court, often unscrupulous in its unfairness, we appeal to the higher, the Congress and the Legislatures of the United States. 3. The third reason why we object to the State method is even more weighty than either or both of the others. It is because the State method fixes responsibility upon no one. The Legislatures pass the question on to the voters and have no further interest in it. The political parties, not knowing how the election may decide the matter, are loth to espouse the cause of woman suffrage, lest if it loses, they will have alienated from their respective parties the support of enemies of woman suffrage. Contributors to campaign funds have at times stipulated the return service of the party machinery to defeat woman suffrage, and as such contributors are wily enough to make certain of their protection, they often contribute to both dominant parties. Thousands of men in every State have become so accustomed to accept party nominations and platforms as their unquestioned guide that they refuse to act upon a political question without instruction from their leaders. When the leaders pass the word along the line to defeat a woman suffrage amendment, it is impossible to carry it. It is not submitted to an electorate of thinking voters whose reason must be convinced, but to such voters, plus political “ machines” skillfully organized, servilely obedient, who have their plans laid to defeat the question at the polls even before it leaves the 12 Legislature. From a condition where no one is responsible for the procedure of the amendment through the hazards of an election, where every enemy may effectively hide his enmity and the methods employed behind the barriers of constitutions and election laws, we appeal to a method which will bring our cause into the open where every person or party, friend or foe involved in the campaign, may be held responsible to the public. We appeal from the method which has kept the women of this country disfranchised a quarter of a century after their enfranchisement was due, to the method by which the vote has been granted to the men and women of other lands. We do so with the certain assurance that every believer in fair play, regardless of party fealties, will approve our decision. These are the three reasons why we elect the federal method, and the three reasons why we reject the State method. We are so familiar with the objections Congressional opponents urge against suffrage by the federal method that we know those objections also, curiously, number three. Three Objections Answered Objection No. 1. War time is not the proper time to consider this question. Two neutral countries, Iceland and Denmark, and three belligerent countries, Canada, Russia and Great Britain, have enfranchised their women during war time and they have been engaged in war for three and a half years. That which is a proper time for such countries is surely proper enough for us. More, it is not our fault, you will admit, that this question is still unsettled in 1917. If our urgent advice had been taken it would have been disposed of twenty-five years ago and our nation would now be proudly leading the world to democracy instead of following in third place. Had Congress “ got the hang of the Declaration of Independence ” then, more men today would know the definition of democracy than do and more men would understand what a world’s war “ to make the world safe for democracy ” means. In 1866 an Address to Congress was adopted by a Suffrage Convention held in New York and presented to Congress later by Susan B. Anthony and Elizabeth Cady Stanton. They protested against the enfranchisement of Negro men while women remained disfranchised and asked for Congressional action. That was fifty-one years ago. In 1878 the Federal Suffrage Amendment now pending was introduced in Con- 13 60550gress at the request of the National Woman Suffrage Association and has been reintroduced in each succeeding Congress. The representatives of this Association have appeared before the Committees of every Congress since 1878 to urge its passage. The women who made the first appeal, brave, splendid souls, have long since passed into the Beyond, and every one died knowing that the country she loved and served classified her as a political pariah. Every Congress has seen the Committee Rooms packed with anxious women yearning for the declaration of their nation that they were no longer to be classed with idiots, criminals and paupers. Every State has sent its quota of woman to those Committees. Among them have been the daughters of Presidents, Governors, Chief Justices, Speakers of the House, leaders of political parties and leaders of great movements. List the women of the last century whose names will pass into history among the immortals and scarcely one is there who has not appeared before your committees— Susan B. Anthony, Elizabeth Cady Stanton, Lucy Stone, Mary A. Livermore, Lillie Devereux Blake, Julia Ward Howe, Harriet Beecher Stowe, Frances Willard, Clara Barton and hundreds more. There are hundreds of women in the suffrage convention now sitting who have paid out more money in railroad fare to come to Washington in order to persuade men that “ women are people” than all the men in the entire country ever paid to get a vote. Perhaps you think our pleas in those Committee Rooms were poor attempts at logic. Ah, one chairman of the committee long ago said to a fellow member: “There is no man living or dead who could answer the arguments of those women,” and then he added, “ but I’d rather see my wife dead in her coffin than going to vote.” Yet, there are those of you who have said that women are illogical and sentimental! Since Congress has already had fifty-one years of peace in which to deal with the question of woman suffrage, we hold that a further postponement is unwarranted. Objection No. 2. A vote on this question by Congress and the Legislatures is undemocratic ; it should go to the “ people” of the States. You are wrong, gentlemen, as your reason will quickly tell you, if you will reflect a moment. When a State submits a constitutional amendment to male voters, it does a legal, constitutional thing, but when that amendment chiefly concerns one-half the people of the State and the law permits the other half to settle it, the wildest stretch of the imagination could not 14 describe the process as democratic. Democracy means “ the rule of the people,” and, let me repeat, women are people. No State referendum goes to the people; it goes to the male voters. Such referenda can never be democratic. Were the question of woman suffrage to be submitted to a vote of both sexes, the action would be democratic, but in that case it would not be legal nor constitutional. Male voters have never been named by any constitution or statute as the representatives of women; we therefore decline to accept them in that capacity. The nearest approach to representation allowed voteless women are the members of Congress and the Legislatures. These members are apportioned among the several States upon the basis of population and not upon the basis of the numbers of voters. Therefore every Congressman theoretically represents the women of his constituency as well as the male voters. He is theoretically responsible to them and they may properly go to him for redress of such grievances as fall within his jurisdiction. More, every member of Congress not only represents the small constituency confined to his district, but all the people of the country, since his vote upon national questions affects them all. Women, whether voters or non-voters, may properly claim members of Congress as the only substitution for representation provided by the constitution. We apply to you, therefore, to correct a grievous wrong which your constitutional jurisdiction gives you authority to set right. Objection No. 3. States Rights. You pronounce it unfair that thirty-six States should determine who may vote in the remaining twelve; that possible Republican Northern States should decide who may vote in Democratic Southern States. It is no more unfair than that some counties within a State should decide who may vote in the remaining counties ; no more unfair than that the Democratic city of New York should enfranchise the women of the Republican cities of Albany and Rochester, as it has just done. Forty-eight States will have the opportunity to ratify the Federal Amendment and every State, therefore, will have its opportunity to enfranchise its own women in this manner. If any State fails to do it, we may agree that that State would probably not enfranchise its own women by the State method ; but if it would not so enfranchise them that State is behind the times and is holding our country up to the scorn of the nations. It has failed to catch the vision and the spirit of Democracy sweeping over the world. This nation cannot, must not, wait for any 15 60551State, so ignorant, so backward. That State more than all others needs woman suffrage to shake its dry bones, to bring political questions into the home and set discussion going. It needs education, action, stimulation to prevent atrophy. In after years posterity will utter grateful thanks that there was a method which could throw a bit of modernity into it from the outside. It is urged that the women of some such States do not want the vote. Of course if the thought of an entire State is antiquated, its women will share the general stagnation, but there is no State where there is not a large number of women who are working, and working hard, for the vote. The vote is permissive, a liberty extended. It is never a burden laid upon the individual, since there is no obligation to exercise the right. On the other hand, the refusal to permit those who want the vote to have and to use it is oppression, tyranny—and no other words describe the condition. When, therefore, men within a State are so ungenerous or unprogressive or stubborn as to continue the denial of the vote to the women who want it, men on the outside should have no scruples in constituting themselves the liberators of those women. Despite these truths there are among you those who still harbor honest misgivings. Please remember that woman suffrage is coming; you know it is. In this connection, have you ever thought that the women of your own families who may tell you now that they do not want the vote are going to realize some day that there is something insincere in your protestations of chivalry, protection and “ you are too good to vote, my dear,” and are going to discover that the trust, respect, and frank acknowledgment of equality which men of other States have given their women are something infinitely higher and nobler than you have ever offered them? Have you thought that you may now bestow upon them a liberty that they may not yet realize they need, but that tomorrow they may storm your castle and demand? Do you suppose that any woman in the land is going to be content with unenfranchisement when she once comprehends that men of other countries have given women the vote? Do you not see that when that time comes to her she is going to ask why you, her husband, her father, who were so placed, perhaps, that you could observe the progress of world affairs, did not see the coming change of custom and save her from the humiliation of having to beg for that which women in other countries are already enjoying? Have you known that no more potent influence has aroused the sheltered and consequently narrow- 16 visioned woman into a realization that she wanted to be a part of an enfranchised class than the manner in which men treat enfranchised women? ‘There is no patronizing “I am holier than thou” air, but the equality of “ fellow citizens.” One never sees that relation between men and women except where women vote. Some day that woman who doesn’t know the world is moving on and leaving her behind will see and know these things. What will she say and do then? What will you do for her now? There are many well known men in Great Britain who frankly confess that their desire to give British women the vote is founded upon their sense of gratitude for the loyal and remarkable war service women have performed. They speak of suffrage as a reward. For years women have asked the vote as a recognition of the incontrovertible fact that they are responsible, intelligent citizens of the country and because its denial has been an outrageous discrimination against their sex. British women will receive their enfranchisement with joyous appreciation but the joy will be lessened and the appreciation tempered by the perfect understanding that “vote as a reward” is only an escape from the uncomfortable corner into which the unanswerable logic of the women had driven the government. Mutual respect between those who give and those who receive the vote would have been promoted had the inevitable duty not been deferred. We hope American men will be wiser. Many of you have admitted that “ State’s Rights ” is less a principle than a tradition—a tradition, however, which we all know is rooted deep in the memory of bitter and, let us say, regrettable incidents of history. But the past is gone. We are living in the present and facing the future. Other men of other lands have thrown aside traditions as tenderly revered as yours in response to the higher call of Justice, Progress and Democracy. Can you, too, not rise to this same call of duty? Is any good to be served by continuing one injustice in order to resent another injustice? We are one nation and those of us who live now and make our appeal to you are like yourselves not of the generation whose differences created the conditions which entrenched the tradition of State’s Rights. We ask you, our representatives, to right the wrong done us by the law of our land as the men of other lands have done. Our nation is in the extreme crisis of its existence and men should search their very souls to find just and reasonable causes for every thought and act. If you, making this search shall find “ State’s Rights ” 17 60552a sufficient cause to lead you to vote “no” on the Federal Suffrage Amendment, then, with all the gentleness which should accompany the reference to a sacred memory, let us tell you that your cause will bear neither the test of time nor critical analysis, and that your vote will compel your children to apologize for your act. Already your vote has forwarded some of the measures which are far more distinctly State’s Rights questions than the fundamental demand for equal human rights. Among such questions are the regulation of child labor, the eight-hour law, the white slave traffic, moving pictures, questionable literature, food supply, clothing supply, prohibition. All of these acts are in the direction of the restraint of “ personal liberty ” in the supposed interest of the public good. Every instinct of justice, every principle of logic and ethics is shocked at the reasoning which grants Congress the right to curtail personal liberty but no right to extend it. “ Necessity knows no law” may seem to you sufficient authority to tax the incomes of women, to demand exhausting amounts of volunteer military service, to commandeer women for public work and in other ways to restrain their liberty as war measures. But by the same token the grant of more liberty may properly be conferred as a war measure. If other lands have been brave enough to extend suffrage to women in war time, our own country, the mother of democracy, surely will not hesitate. We are told that a million or more American men will be on European battlefields ere many months. For every man who goes, there is one loyal woman and proably more who would vote to support to the utmost that man’s cause. The disloyal men will be here to vote. Suffrage for women now as a war measure means suffrage for the loyal forces, for those who know what it means “ to fight to keep the world safe for democracy.” The framers of the Constitution gave unquestioned authority to Congress to act upon woman suffrage. Why not use that authority and use it now to do the big, noble, just thing of catching pace with other nations on this question of democracy? The world and posterity will honor you for it. In Conclusion In conclusion, we know, and you know that we know, that it has been the aim of both dominant parties to postpone woman suffrage as long as possible. A few men in each party have always fought with us fearlessly, 18 but the party machines have evaded, avoided, tricked and buffeted this question from Congress to Legislatures, from Legislatures to political conventions. I confess to you that many of us have a deep and abiding distrust of all existing political parties—they have tricked us so often and in such unscrupulous fashion that our doubts are natural. Some of you are leaders of those parties and all are members. Your parties we also know have a distrust and suspicion of new women voters. Let us counsel together. Woman suffrage is inevitable—you know it. The political parties will go on—we know it. Shall we then be enemies or friends? Can party leaders in twelve States really obtain the loyal support of women voters when those women know that the same party is ordering the defeat of amendments in States where campaigns are pending, or delaying action in Congress on the Federal Amendment? Gentlemen, we ask you to put yourselves in our places. What would you do? Would you keep on spending your money and your lives on a slow, laborious, clumsy State method, or would you use the votes you have won to complete your campaign on behalf of suffrage for all women in the nation? Would you be content to keep a standing army of women, told off for the special work of educating men in the meaning of democracy ; would you raise and spend millions of dollars in the process ; would you give up every other thing in life you hold dear in order to keep State campaigns going for another possible quarter of a century? Would you do this and see the women of other countries leaving you behind, or would you make “a hard pull, a long pull and a pull altogether” and finish the task at once? You know you would choose the latter. We make the same choice. Do you realize that in no other country in the world with democratic tendencies is suffrage so completely denied as in a considerable number of our own States? There are 13 black States where no suffrage for women exists, and 14 others where suffrage for women is more limited than in many foreign countries. Do you realize that no class of men in our own or in any other land have been compelled to ask their inferiors for the ballot? Do you realize that when you ask women to take their cause to State referendum you compel them to do this; that you drive women of education, refinement, achievement, to beg men who cannot read for their political freedom? Do you realize that such anomalies as a College President asking her 19 60553janitor to give her a vote are overstraining the patience and driving women to desperation? Do you realize that women in increasing numbers indignantly resent the long delay in their enfranchisement ? Your party platforms have pledged woman suffrage. Then why not be honest, frank friends of our cause, adopt it in reality as your own, make it a party program and “ fight with us”? As a party measure—a measure of all parties—why not put the amendment through Congress and the Legislatures? We shall all be better friends, we shall have a happier nation, we women will be free to support loyally the party of our choice and we shall be far prouder of our history. “There is one thing mightier than kings and armies ”—aye, than Congresses and political parties—“ the power of an idea when its time has come to move.” The time for woman suffrage has come. The woman’s hour has struck. If parties prefer to postpone action longer and thus do battle with this idea, they challenge the inevitable. The idea will not perish; the party which opposes it may. Every delay, every trick, every political dishonesty from now on will antagonize the women of the land more and more, and when the party or parties which have so delayed woman suffrage finally let it come, their sincerity will be doubted and their appeal to the new voters will be met with suspicion. This is the psychology of the situation. Can you afford the risk? Think it over. We know you will meet opposition. There are a few “woman haters” left, a few “ old males of the tribe,” as Vance ‘Thompson calls them, whose duty they believe it to be to keep women in the places they have carefully picked out for them. Treitschke, made world famous by war literature, said some years ago: “Germany, which knows all about Germany and France, knows far better what is good for Alsace-Lorraine than that miserable people can possibly know.” A few American Treitschkes we have who know better than women what is good for them. There are women, too, with “slave souls” and “ clinging vines ” for backbones. There are female dolls and male dandies. But the world does not wait for such as these, nor does Liberty pause to heed the plaint of men and women with a grouch. She does not wait for those who have a special interest to serve, nor a selfish reason for depriving other people of freedom. Holding her torch aloft, Liberty is pointing the way onward and upward and saying to America, “ Come.” To you the supporters of our cause, in Senate and House, and the 20 number is large, the suffragists of the nation express their grateful thanks. This address is not meant for you. We are more truly appreciative of all you have done than any words can express. We ask you to make a last, hard fight for the amendment during the present session. Since last we asked a vote on this amendment your position has been fortified by the addition to suffrage territory of Great Britain, Canada and New York. Some of you have been too indifferent to give more than casual attention to this question. It is worthy of your immediate consideration— a question big enough to engage the attention of our Allies in war time, is too big a question for you to neglect. Some of you have grown old in party service. Are you willing that those who take your places by and by shall blame you for having failed to keep pace with the world and thus having lost for them a party advantage? Is there any real gain for you, for your party, for the nation by delay? Do you want to drive the progressive men and women out of your party? Some of you hold to the doctrine of State’s rights, as applying to woman suffrage. Adherence to that theory will keep the United States far behind all other democratic nations in action upon this question. A theory which prevents a nation from keeping up with the trend of world progress cannot be justified. Gentlemen, we hereby petition you, our only designated representatives, to redress our grievances by the immediate passage of the Federal Suffrage Amendment and to use your influence to secure its ratification in your own state, in order that the women of our nation may be endowed with political freedom before the next presidential election, and that our nation may resume its world leadership in democracy. Woman suffrage is coming—you know it. Will you, Honorable Senators and Members of the House of Representatives, help or hinder it? 21 60554WOMEN'S WAR SERVICE IN GREAT BRITAIN "Short of actually bearing arms in the field, there is hardly a service which has contributed, or is contributing, to the maintenance of our cause in which women have not been at least as active and as efficient as men, and wherever we turn we see them doing, with zeal and success, and without any detriment to the prerogatives of their sex, work which three years ago would have been regarded as falling exclusively within the province of men. This is not a merely sentimental argument, though it appeals to our feelings as well as our judgment. But what I confess moves me still more in this matter is the problem of reconstruction when the war is over. The questions which will then necessarily arise in regard to women's labor and women's functions and activities in the new ordering of things--for, do not doubt it, the old order will be changed--are questions in regard to which I, for my part, feel it impossible, consistently either with justice or with expediency, to withhold from women the power and the right of making their voice directly heard."--Mr. ASQUITH, March 28, 1917. "I have been all my life a consistent opponent of the extension of the franchise to women. * * * I would vote for the recommendations of this Conference, wholly from beginning to end, much though I dislike some of them, rather than raise my voice today against the granting of recognition to the women who have not only, as the Prime Minister said, suffered and died for their country in many of the fields of war, but, let there be no mistake, without whose heroism, self-denial, skill, physical strength and endurance this country could never have successfully faced the crisis through which we are passing." Mr. WALTER LONG, March 28, 1917. EARL OF DERBY. July 13, 1916. Queen's Hall, Y. W. C. A. Meeting. Women are now part and parcel of our great army. . Without them it 22 would be impossible for progress to be made, but with them I believe that victory can be assured. RT. HON. HERBERT SAMUEL, M. P. September, 1915. Coventry. The man or woman who makes the shell or fuse is as valuable in this campaign as the man who fires the shell. MR. F. KELLAWAY (Parliamentary Secretary to Ministry of Munitions), January, 1917. In a sense it is true that our armies in the field have been saved by the efforts of our women. There are at present in national factories and controlled establishments close on half a million women working day and night, who are as really protecting the sanctity of their homes and the national honor as are the men who, with incomparable bravery, storm the German positions. * * * Our women have come forward voluntarily, and will come forward in greater numbers as soon as they realize the national need. If we succeed, as we shall succeed, in overwhelming the mass of material which Germany will have prepared, it will be because the women in this kingdom have shown themselves willing to work for the cause for which their men are prepared to die. BARON GAINFORD OF HEADLAM (RT. HON. J. A. PEASE, M. P.) July 3, 1916. Annual statement to House of Commons re Telephone Service. In connection with Zeppelin raids, the work of the women who have come forward voluntarily to do duty at night deserves, I think, very high praise. Hundreds of women have thus come forward. When Zeppelin raids have been anticipated, and sometimes when they have been going on, these women have come out of their homes, and even when bombs were dropping, gone to their positions in the various exchanges. They have played an important part in an organized scheme of air-raid warnings, and in gallantry and self-sacrifice they have set a good example to the whole country. LORD SYDENHAM. July 13, 1916. At the Queen’s Hall Meeting (Y. W. C. A.) He expressed the opinion that the great advance of our splendid army 23 [*60555*]could not have been accomplished but for the untiring labors of the women. RT. HON. E. S. MONTAGU, M. P. August 15, 1916. In Report on Munitions. Now I want to say a word about women. Women of every station, with or without previous experience of the difficulties, or of the strain and monotony of munition work, have proved themselves able to undertake work which before the war was regarded as solely the province of men and often of skilled men alone. Indeed, it is not too much to say that our armies have been saved and victory assured largely by the women in the munition factories. * * * There are, I believe, some 500 different munition processes, upon which women are now engaged, two-thirds of which have never been performed by a woman previous to twelve months ago. I do not want to elaborate this point, because it is well known to the House, but I ask the House to consider this, together with the work done by women in hospitals, in agriculture, in transport trades, and in every type of clerical occupation, and I would respectfully submit, when the time and opportunity offer, it will be opportune to ask, Where is the man now who would deny to woman the civil rights which she has earned by hard work? VISCOUNT FRENCH. October 28, 1916. Town Hall, Leeds. I believe when the history of this war comes to be written the work of the women of England will furnish some of its most brilliant pages. RT. HON. W. F. MASSEY. November 7, 1916. Guildhall A nation whose women could rise to an occasion like this would always play a prominent part among the nations of the world. SIR THOMAS BARLOW. March 14, 1917. At Institute of Public Health. Women had wonderful powers of endurance, especially in monotonous work. 24 RT. HON. SIR E. CARSON, K. C., M. P. March 17, 1917. At Albert Hall Meeting. I should like to be permitted to express on behalf of the Board of Admiralty our sense of deep obligation to the women who have come forward to help us in various ways at this time of national stress. Before the war no women were employed in our central offices in London. We now avail ourselves of the services of nearly 2,000. In the Royal Dockyards and naval establishments at home there were about 450 women employed before the war. There are now about 7,000. In the private engineering shops before the war there were, of course, many women employed; but the number since the war has increased manifold. In the private shipyards before the war there were probably few, if any, women employed; there are now many thousands. I could not easily overstate their devotion to their work. Their physical endurance is, in my opinion, beyond the expectation even of those who rightly understand the spirit which inspires them. I shall be glad if you will allow me this opportunity of making this statement, and to say that undoubtedly we shall want many more women as the work of dilution and substitution in the Royal Dockyards and naval establishments and in the private engineering shops and shipyards proceeds. MR. NEVILLE CHAMBERLAIN. April, 1917. Interview with Mr. Edward Marshall. Before the war there was great restlessness among the younger generation of British women. They were not satisfied with idleness, yet they found most occupations barred to them. Now, through the medium of National Service, they have had their opportunity, and to it they have responded in a manner astonishing even to those who thought most highly of their abilities and capacities. There never has been a doubt of their keen patriotism, but their mental adaptability and even their physical strength have proved to be surprising. A veritable revolution has begun in this way, yet it is apparent that the entrance of Englishwomen into spheres hitherto reserved exclusively for men has but started. Where it will end depends to some extent upon how long the war lasts but we men are beginning to feel convinced that the wonderful things which women already have done are but samples of their capabilities. 25 60556LORD FABER. May 1, 1917. Presiding at a meeting on Women’s Suffrage, Philosophical Hall, Leeds. Women had shown, as was always known, that they had brain and intelligence, and that they were able to do very much work that had hitherto been done by men. At Beckett’s Bank, in Park Row, before there were no women; since the war thirty-two members out of a staff of sixty had joined the army and their places had been filled by women, who did all kinds of work in the bank, and did it extremely well. At the offices of the Yorkshire Post, of which he had been chairman for about thirty years, women were helping in office work, and he was confident women could do almost everything in the office. On the London and North Western Railway, of which he was a director, women were employed in various capacities; in fact, the railways of this country could not be run if the women had not come forward. 26[* 7 *] REPORT OF THE RESOLUTIONS COMMITTEE [* 89 *] RESOLVED: I. That we urge the adhesion of the United States to the League of Nations with the least possible delay. II. That in view of the famine, pestilence and unemployment extending throughout the great tracts of Central and Eastern Europe, and into Asia, we urge Congress to make an immediate and generous loan, to alleviate the dire necessities of these vast regions; and we further petition our government to use its influence to retain and reconstitute the Inter-Allied organizations formed during the war, so that the world's resouces of food, raw materials, finance and transport shall be made available for the relief of the peoples of all countries from famine and pestilence. III. That we declare ourselves emphatically in favor of the principles of free speech, free press and free representation, not only as the best means to promote the orderly progress of enlightment, but as the best safeguard of our American institutions. We recognize that efforts to bring about the overthrow of our government by violence must not be permitted, but in ill-considered attempts to meet this difficulty, there is danger of overthrowing that real liberty which has always been one of the corner-stones of our republic. IV. Whereas, the revenues for education throughout the United States are very little above the pre-war level, and Whereas, for many years teachers' salaries have notably been far below any rational standard, and Whereas under the present economic pressure teachers of training and experience are being forced out of teaching and others who could fitly replace them cannot be secured for the pay offered, and Whereas the shortage of teachers and their inadequate preparation constitute a grave menace to future citizenship and to national security, be it Resolved, that we urge upon State and local bodies, whose function it is to determine the amount of educational revenues, that they double the fund for the payment of teachers' salaries, and at the earliest possible time increase these salaries to a point which shall attract and hold well trained and capable men and women teachers. We are convinced that this point should not be fixed at a "living wage", but that it should enable school boards to compete with commerce, industry and the professions in securing the services of the able, the ambitious, and the prepared, for this most vital public service. (N. B. -- There was a line added here but I have not the wording of it.) V. Whereas, the draft showed nearly one-third of our young men to be in poor physical condition, be it Resolved, that we favor universal compulsory physical training for both sexes, from the age of six to eighteen. VI. Whereas, 605572 (a) in the last five years twelve times as many Americans have perished annually from preventable diseases and preventable accident as died in war, and (b) the military impotence of our former enemies and the mutual protection to result from the League of Nations reduces our military danger to a minimum, and (c) gross illiteracy, dangerous shortage of teachers, an approaching timber famine, currency inflation and industrial unrest call for supremely wise expenditure of taxes, be it Resolved, that we are opposed to universal compulsory military training. VII. That we favor a policy of constructive and friendly cooperation between our government and people of the Mexican government and peoples and we deplore the constant circulation in the press of sensational and inflammatory rumors which often prove unfounded. The rights and dignity of the United States must be maintained, but we are opposed to armed invasion of Mexico except in the last and most extreme necessity. VIII. Whereas 100,000 Christian Armenian women are still held in Turkish harams and 250,000 orphans must perish unless fed, be it Resolved, that we urge a generous cooperation of American women with the relief work, and we protest against the proposal to leave Armenia under the rule of the Sultan, as one of the greatest crimes of history. IX. That we favor the creation of a federal bureau of housing and living conditions, with sufficient funds to enable it to investigate housing and living conditions throughout the country, and to conduct research and experimentation with a view to the immigration of a constructive housing program. X. That we endorse the bill introduced by Congressman Fess to amend the Vocational Education Act so as to make more adequate provision for Home Economics. This bill appropriates half a million yearly for ten years for cooperation with the States in the preparation of teachers of Home Economics, and thereafter three millions annually; parts of the allotments being also available for purposes directly relation to the promotion of better homemaking, of Americanization through home Economics teaching, and few administrative purposes incidental thereto. XI. That we recommend American women to set apart Susan B. Anthony's birthday, February fifteenth, as a day of thanksgiving, and loving remembrance of her and of all the pioneers. XIII. Whereas, This is the year for adding new names to the Hall of Fame, be it Resolved, That we recommend the following names: Susan B. Anthony Lucy Stone Elisabeth Cady Stanton Julia Ward Howe 60558 XIII. That, in view of the imperative need of thrift, we urge upon both men and women the practice of thrift, and a careful study of the Thrift Program sent out by the Treasury Department. XIV. Whereas, the usefulness of a central clearing house for government printed matter has been demonstrated by the National Liberty Service, which operated, under an emergency fund, for six months in the Bureau of Education, and Whereas, the librarians of the United States are ready to serve the government and the people by giving proper publicity to government printed matter, and Whereas, the Library Information Service Bill has been favorably reported by the Education Committee of both Senate and House, be it Resolved, That we endorse the bill (SR457 and HR 6860) "To provide for a Library Information Service in the Bureau of Education." Resolved, That a copy of this resolution be sent to each Senator and Representative. That we extend cordial thanks to all the citizens of Chicago who have contributed to generously to make this convention a brilliant success; and especially to Mrs. Grace Wilbur Trout, President of the Illinois Equal Suffrage Association and Chairman of Local Arrangements for the State, with her large and efficient committee, and to Mrs. George Gellhorn, chairman of Local Living Ratification Valentines; to Mrs A. H. Schweiser, chairman of Local Arrangements for the Victory Dinner; to Mrs. James W. Morrison, who arranged the Processions of Victories; to Mrs. Jacob Bauer, who arranged for the Pleasant Luncheon; to Miss Rose Young, Director of "Then and Now"'; to all the State hostesses; to all the chairman of committees, to the women's clubs, to the minister, choir, and officials of the Fourth Presbyterian Church; to the Congress Hotel; to the government for establishing a special post office for the convention; to the Chicago newspapers and other members of the press; and to the many other person, official and unofficial, who have contributed to our comfort and happiness. The Woman's Anti-Suffrage Bulletin Issued Weekly by The National Association Opposed to Woman Suffrage 37 West 39th Street, New York City [* 7 *] SPECIAL SERVICE SERIES: [* 89 *] ANTIS TO AID "BLACKLISTED" CANDIDATES OF BOTH PARTIES Opponents of Suffrage in Five States Will Decide Presidential Election Mrs. Arhtur M. Dodge, president of the National Association Opposed to Woman Suffrage, has asked the State presidents of the 24 anti-suffrage associations to lend their efforts in behalf of all candidates "blacklisted by suffragists." This request, following recent interstate plans to raise the membership of anti-suffrage associations from the present 350,000 to "more than a million" by the next session of Congress, was drawn forth by the recent declaration of the chairman of the congressional committee of the National Suffrage Association, that her organization "will oppose every candidate for the Senate and House who says he will not vote for a Federal amendment to enfranchise women." BLACKLIST FAILED TWO YEARS AGO Mrs. Dodge says: "This is the virtual resumption of the blacklist issued by suffragists in 1914, in which they did not succeed in defeating even one of the eighteen Congressmen blacklisted. It deserve a similar but more emphatic defeat. "In fourteen State-wide victories at the polls in the last few years, we have demonstrated that the opposition to woman suffrage is determine and that there are at least a million more anti-suffrage votes than suffrage votes. These voters - the men who defend the government, support the women and pay the taxes - cannot be bluffed nor intimidated no matter what may be achieved with some political office-seekers. The voters, when their attention is called to the revival of the blacklist; the campaign of coercion, based on mere bluff, which the suffragists are conducting against candidates who have the nerve to stand on their party platforms, will rally to the defense of democracy. They will realize that a candidate who cannot be bullied by a few women will make a better public servant than a weakling willing to surrender Stat rights and woman's real rights to the suffragist bosses. They will remember that a man who refuses to represent the people of his district [in congress?] will betray his constitu[ents] [on other?]ther issues. 60560NO RICH ORGANIZATION TO TERRORIZE CONGRESS "The time has come for a country-wide demonstration that strong men who really represent the people can be elected to office in America, and that no rich organization, of men or women, can terrorize the Congress of the United States into enacting minority measures which the people themselves have rejected at the polls. DEMAND OF PROFESSIONAL FEMALE POLITICIANS "Outside of the small group of professional female politicians who reiterate base misrepresentations of Western sentiment, there is no demand in this country for a Federal suffrage amendment. There has never been a legitimate expression of such a demand organized by local women voters in the West. The majority of the women who vote and of the men who vote in favor of suffrage resent the campaign conducted by the organized suffragists, especially those suffrage bosses who offer 4,000,000 women's votes that they never will have as a bribe to anybody who will betray platform pledges and help them circumvent majority rule and the will of the people. TO REBUKE WEAKLINGS AND WOMEN BOSSES "If each State president will see that in each Congressional District where there is a blacklisted candidate of either party, the voters are informed on the real issue, the voters will administer a rebuke to the weaklings and to the women bosses next November which will make the failure to defeat blacklisted candidates in 1913 seem a mere prelude. Instead of reproaching and accusing one another for five days for their folly in ever getting up a blacklist, as they did at their National convention in Nashville in 1914, the suffragists will have five - and we hope fifty - years to repent the follies and failures of female bossism in 1916. Let us tell the voters exactly why these candidates are blacklisted - and fair minded men will arise and respond in a way that will be a lesson to bosses and blacklisters for a generation. "It is difficult to refrain from expressions of disappointment that the Republican candidate has indorsed the Federal suffrage amendment, 605613 but this personal position should not be taken seriously. ANTI SUFFRAGE SENTIMENT WILL DECIDE ELECTION "The Republican party cannot elect a President unless it wins the support of the anti-suffrage voters of New York, Massachusetts, Ohio, New Jersey and Michigan. These five States have 116 electoral votes, and they are the deciding votes for the Presidency of the United States in 1916. There are 177 electoral votes in the 15 States of the Solid South. Only 89 more are needed. These five States added to the South would give the President 293 votes in the Electoral College, or nearly thirty more votes than required for re-election! "These five States have cast more than 2,000,000 votes against woman suffrage, giving an anti-suffrage majority of over 657,000. Four of them went Democratic in 1912, but gave President Wilson an aggregate majority of only 135,000. Michigan has gone Democratic since by more than two to one. These anti-suffrage voters will decide the election. "It would be foolhardy for the Republican party to antagonize these anti-suffrage electorates by declaring for a Federal amendment, even if the suffragists could actually "deliver" the rest of the country. "Had the politicians really spent their time studying election figures instead of listening to the threats of the Women's Party, it is probable that there would have been no suffrage plank in the Republican platform. "It is not 'the women voters of the west' but the anti-suffrage voters in the five States that have overwhelmingly defeated woman suffrage, who posses the power to elect the next President. "It is hardly likely, under the circumstances, that the personal position of the Republican candidate will cause the party leaders to approve the Federal amendment. "Either the Republican party will adhere to the official plank which "recognizes the right of each State to settle this question for itself" or give up all hope of electing a Republican president. "This is the actual situation ~ which any politician can demonstrate for himself in about fifteen minutes if he cares to examine the election figures. "The declaration of the Republican candidate in favor of a Federal suffrage amendment has done nothing but prejudice his chances of election." (Signed) Mrs. Arthur M. Dodge, PRESIDENT 60562[*F*] [*89*] Box 45 Leaman Place, Pa. President Woodrow Wilson Washington, D.C. My dear Mr. President: Will you please recommend, in your message to Congress, the submission of the national suffrage amendment and oblige Yours most respectfully Juliette Eshleman [*60563*]To the President of the United States: Now when the Unites States is engaged in a great war for the ideals of democracy, a war in which the women of the nation equally with the men are called upon to do and are doing their full part, we, the women voters of Oregon, urge you to recommend that the Congress of the United States now in session submit forthwith to the several states for ratification an amendment to the Constitution of the United States guaranteeing suffrage to women and thereby granting liberty to the women of our OWN land and establishing within our OWN border a real democracy. NAME Address Mrs. L. R. Edmunson Eugene, Oregon Mrs. Harry H. Hobbs Eugene, Oregon Mrs. Lizzie G. Bryson Eugene, Oregon Mrs. Hazel M. Paine " Mrs. Ella E. Frazer " Mrs. Eunice Gollina Wilkins " Mrs. M. L. York " Mrs. W.P. Boynton " Mrs. Barbara Booth " Jessie Fariss " Mrs. J. O. Holt " Mrs. Seth Laranay " Euphemea Eremham " Willie McGee " (filled by Mrs. R.R. Edmunson) [*60564*]RESOLUTION Now when the United States is engaged in a great war for the ideals of democracy, a war in which the women of the nation equally with the men are called upon to do and are doing their full part, we, the women voters of Oregon, urge you to recommend that the Congress of the United States now in session submit forthwith to the several states for ratification an amendment to the Constitution of the United States guaranteeing suffrage to women and thereby granting liberty to the women of our OWN land and establishing within our OWN border a real democracy. NAME ADDRESS Anna S. G. Sage 652 E 13 Eugene Oregon Jessie A. Propser 212-. 14 Ave. E Florence K. Immel 1127 Ferry St. Mrs. J. C. Parker 1450 High St. Florence H. Stevens 1347 High St- Mrs A. C. Brown 1590 High Mrs. L. E. Norris 470 11th Ave E. Mrs E. J. Flynn 1442 Pearl St. Mrs M. F. Skinner 362 12 Ave East Mrs L. A. Risley 610 East 12th Mrs Lena Fisher 1235 Oak St Mrs Earl Kilpatrick Mrs. Myra U. Mitchell 594-14' Ave E Mrs N. M. Hain 1275 Mill St. [*60565*]To the President of the United States: Now when the United States is engaged in a great war for the ideals of democracy, a war in which the women of the nation equally with the men are called upon to do and are doing their full part, we, the women voters of Oregon, urge you to recommend that the Congress of the United States now in session submit forthwith to the several states for ratification an amendment to the Constitution of the United States guaranteeing suffrage to women and thereby granting liberty to the women of our OWN land and establishing within our OWN border a real democracy. Name Address. Mrs. P.L. Campbell #1170 E. 13th Str. Miss Ruth Shearer 1170- E-13 St. Mrs. H. D. Sheedoce 1343 University StPetition from Women Voters Of Eugene, Oregon. [* 89 *][89] No one more sinceraly regrets, deprecates and opposes the heckling of the President by the militent, English branch of the suffragists, than do the real suffragists of America who have carried the woman suffrage banner, with dignity and good sense, from the early days to its splendid showing of complete triumph in twelve states and its promise of very early success in several others. The bringing to America of these methods of threat and force, by this handfull of young women who were trained by Mrs Pankhurst in England, and who got their first taste of publicity through their jail sentences in London, is quite as shocking to the taste and judgment of the great body of suffragists in the United States as it is to other people of dignity and propriety. Some of the leaders of this new "Woman's Party" and Congressional Union are thirsting for martyrdom. They yearn to so place themselves as to be arrested. They want to accomplish the ends of justice by force and threat, instead of by education and evolution as has ever been the method, as is today the method, of the National American Woman Suffrage Association and of the hundreds of thousands of steady earnest, sane suffrage workers, both men and women, all over America. To import at this late date, from England these tactics of violence and threat, of heckling and bad breeding, is wholly out of character with American ideals, is entirely unnecessary and absolutely the worst influence that could be injected into the woman suffrage movement at this date when it is marching triumphantly to success. The men and the women of America have come to thinking seriously and with a fair amount of intelligence on this subject. The leaven of suffrage placed, without violence, and with grasp and goodwill, so many years ago by Elizabeth Cady Stanton, Susan B. Anthony and 605672 their associates is rapidly leavening the whole country. The trend of the times is carrying this movement forward with dignity and power. To inject into the movement this note of of violence and threat at this late date is to degrade the whole movement to the status of brawlers instead of leaving it,where it has always been in America, with a clean,lofty record won by brain power and high ideals, instead of by squabbling, threats and shrieks. At the present time these young women are threatening the party in power with 4.000.000 women's votes. They cant "deliver the goods". Those of us who are much in the suffrage states know that the women of those states, the leaders, resent any such assumption. These women say that they will not leave their party affiliations and vote against men whom they know and trust and believe in, in order to punish a political party for not believing as those men believe. It is not human nature for them to do so. And above all it is not woman nature, thank God,to punish the innocent nor to wantonly destroy her friends in order to hurt somebody else. This is precisely what the Congressional Union urges the western women to do and claims that they will do. They sent speakers and workers into California, Colorado and other states to try to defeat Senator Chamberlain, Senator Thomas, Representatives Taylor and Raker and others, who have always been among the strongest friends of suffrage, who stood for it valiently long before these English militants were ever heard of, yet these women went out to destroy these men, politically, not because of their own misdeeds or shortcomings, but because these men had not, so far, been able to carry a majority of the other men of their party into the suffrage ranks! Had these men been defeated their successors would have been [of a political party which, also, has failed to “see the light” as a] 605683 of a political party which, also, has "failed to see the light"-as a party, although in power very much longer than the present one. What would have been gained by defeating their very best friends? Nobody knows. Let us suppose that the new, untried men had come in and the old friendly ones had been defeated, what then? Now begins a new period of threats against the old friends in that party--unless they made (in their first session) everybody in their party believe on this subject, and vote as they did, no matter what the constituents of those new men might have dictated or wished. The Congressional Union would now go out and try to defeat Senators, Smoot, Sutherland, Borah, Curtis and other[s] good suffragists because their political party has not voted, as a party, on this topic as these men have voted and worked for many years past even when women suffrage was far more unpopular with their constituents and colleagues than it is today. The voting women of the west, of whom I am one, will not be led into any such unfair, unamerican conduct. Having just returned from the west I know that the real leaders there resent any such idea, and deplore the thrusting of these methods into the suffrage movement in this country. Helen. H. Gardener 6056989 620 West 116 Street, N. Y. City, N. Y. Woodrow Wilson, President of the U. S. of America, White House, Washington, D. C.: Sir: Democracy at home is waiting while the U. S. Senate is deliberately Interfering with its progress. I call upon you to uphold the splendid ideals for which the U. S. entered the World-War; and I ask that the sacrifices women are making and patiently enduring shall be acknowledged by admission to the suffrage. I further ask that you keep the Senate from recesssing until the Federal Suffrage Amendment has been voted upon. The Nations of the World must be made to realize that the U. S. is sincere in its ideals for the democratic reconstruction of the World. The Senate of the U. S. should give an unmistakable answer before the end of this session. I call upon you to appear before the Senate and bring the unsavory treatment they are according to the Federal Suffrage Amendment to a close. This can be done by you as you have done for other War Measures. Very earnestly yours, (Mrs.) Ella O. Grillford Picket on a suspended sentence.National Woman's Party NATIONAL HEADQUARTERS, LAFAYETTE SQUARE WASHINGTON, D. C. COLORS--Purple, White and Gold National Executive Committee Miss Alice Paul, N. J., Chairman Miss Annie Martin, Nev., Vice-Chairman Miss Mabel Vernon, Nev., Secretary Miss Gertrude L. Crocker, Ill., Treasurer Mrs. Robert Baker, D. C. Mrs O. H. P. Belmont, N. Y. Mrs. John Winters Brannan, N. Y. Miss Lucy Burns, N. Y. Mrs. Gilson Gardner, D. C. Mrs. Florence Bayard Hilles, Del. Mrs. Donald R. Hooker, Md. Mrs. J. A. H. Hopkins, N. J. Mrs. William Kent, Cal. Mrs. Lawrence Lewis, Pa. Miss Doris Stevens, Nebr. Miss Maud Younger, Cal. District Chairmen Middle Atlantic States Mrs. Henry Bruere, N. Y. Inland Suffrage States Mrs. E. M. Garnett, Utah North Middle Western States Mrs. A. R. Colvin, Minn. National Committee of State Chairmen Mrs. W. D. Ascough, Conn. Miss Eleanor Barker, Ind. Mrs. Edith Barriger, Mo. Mrs. A. M. Beim, Iowa Mrs. O. H. P. Belmont, N. Y. Mrs. M. S. Bonnifield, Nev. Mrs. W. T. Burch, D. C. Mrs. Dan Casement, Kans. Mrs. Margaret Zane Cherdron, Utah Mrs. H. M. Clagett, Ariz. Mrs. A. R. Colvin, Minn. Mrs. G. W. England, Okla. Mrs. J. Borden Estee, Vt. Mrs. A. R. Fellows, S. Dak. Mrs. Bertha W. Fowler, Colo. Mrs. L. Crozier French, Tenn. Mrs. John Gibbs, S. C. Mrs. C. S. Haire, Mont. Mrs. Florence Bayard Hilles, Del., Mrs. J. A. H. Hopkins, N. J. Miss Ada James, Wis. Mrs. Edward M. Jarrett, Ark. Mrs. Charles Johannes, Nebr. Miss Marie Ernst Kennedy, Pa. Mrs. Otis Floyd Lamson, Wash. Dr. Frances M. Lane, Wyo. Mrs. Ida Finney Mackrille, Cal. Dr. Florence Manion, Oreg. Mrs. Sophie G. Meredith, Va. Mrs. Agnes H. Morey, Mass. Mrs. Elizabeth Darrow O'Neil, N. Dak. Mrs. Joshua Raynolds, N. Mex. Mrs. Townsend Scott, Md. Mrs. Bertram Sippy, Ill. Mrs. Arthur Taylor, N. Car. Mrs. Frederick Walker, Idaho Mrs. Robert Treat Whitehouse, Me. Mrs. Nelson Whittemore, Mich. Mrs. Valentine Winters, Ohio Mrs. Clara Snell Wolfe, Tex. National Advisory Council Chairman, Mrs. John Rogers, N. Y. Secretary, Miss Maud Younger, Cal. Mrs. Frederick T. Ackerman, N. Y. Mrs. Robert Adamson, N. Y. Mrs. Chas. F. Amidon, N. Dak. Miss Jessie Ashley, N. Y. Dr. S. Josephine Baker, N. Y. Mrs. Cyrus Beard, Wyo. Mrs. Mary Ritter Beard, N. Y. Mrs. William B. Boulton, N. J. Mrs. Howard P. Boyle, N. J. Mrs. Edward Breitung, Mich. Mrs. Alfred H. Bright, Minn. Reverend Olympia Brown, Wis. Miss Mary A. Burnham, Pa. Mrs. Dora Phelps Buell, Col. Mrs. Annie Wells Cannon, Utah Mrs. John Carey, Ind. Mrs. Joseph Carey, Wyo. Mrs. Thomas L. Chadbourne, N. Y. Mrs. William L. Colt, N. Y. Miss Anna Constable, N. Y. Mrs. Avery Coonley, Ill. Mrs. Frank Cothren, N. Y. Mrs. Lucius M. Cuthbert, Col. Mrs. George H. Day, Conn. Dr. Mary Dean, Mont. Mrs. Lewis L. Delafield, N. Y. Miss Lavinia Dock, Pa. Mrs. Rheta Childe Dorr, N. Y. Mrs. Crystal Eastman, N. Y. Mrs. Robert Patterson Finley, N. J. Mrs. William Floyd, N. Y. Mrs. Marie Moore Forrest, D. C. Mrs. J. Andre Fouilhoux, Ore. Miss Susan P. Frost, So. Car. Mrs. Emma Maddox Funck, Md. Mrs. Elizabeth Gerberding, Cal. Mrs. Charlotte Perkins Gilman, N. Y. Mrs. Adolphus E. Graupner, Cal. Mrs. Edwin C. Grice, Pa. Mrs. Jennie Law Hardy, Mich. Mrs. W. E. Hardy, Nebr. Mrs. H. O. Havemeyer, N. Y. Mrs. F. R. Hazard, N. Y. Mrs. Phoebe A. Hearst, Cal. Mrs. Wm. Randolph Hearst, N. Y. Mrs. George Hendrie, Mich. Mrs. Elon Hooker, N. Y. Mrs. Frederick C. Howe, N. Y. Miss Mary Ingham, Pa. Mrs. Inez Haynes Irwin, Cal. Mrs. Agnes M. Jenks, R. I. Mrs. Charles Gilmore Kerley, N. Y. Dr. Cora Smith King, Wash. Mrs. Otto Kirchner, Mich. Mrs. Alexander Kohut, N. Y. Miss Fola La Follette, N. Y. Mrs. Lola Maverick Lloyd, Ill. Dr. Sarah H. Lockrey, Pa. Mrs. Anna Lowenburg, Pa. Mrs. Jessie Hardy MacKaye, D. C. Mrs. Lionel S. Marks, Mass. Mrs. Marcus M. Marks, N. Y. Miss Julia Marlowe, N. Y. Miss Helen Marot, N. Y. Mrs. Harris Masterson, Tex. Miss Edythe Wynne Matthison, Conn. Miss Marion May, N. Y. Mrs. Bernice McCoy, Idaho Miss Belle McGibeny, N. J. Miss Vida Milholland, N. Y. Mrs. Lilla Day Monroe, Kans. Mrs. John T. Morrison, Idaho Mrs. Henry Moskowitz, N. Y. Mrs. William Spencer Murray, Md. Mrs. Ellen Spencer Mussey, D. C. Mrs. Adelina Otero-Warren, N. M. Mrs. Marsden Perry, R. I. Mrs. Amos Pinchot, N. Y. Mrs. Annie Porritt, Conn. Mrs. Alden Potter, Minn. Mrs. William Prendergast, N. Y. Mrs. Nina G. Proctor, N. Y. Mrs. James Hayden Rector, Ohio Mrs. Henry Ridgly, Del. Miss Ella Riegel, Pa. Mrs. Julius Rosenwald, Ill. Mrs. Charles Edward Russell, D. C. Mrs. Frederick Sanborn, Cal. Mrs. Frances Thurber Seal, N. Y. Mrs. May Wright Sewall, Ind. Mrs. Eugene Shippen, Mich. Mrs. Austin Sperry, Cal. Mrs. Albert Steinfeld, Ariz. Mrs. Julius Stone, Ohio Mrs. David D. Terry, Ark. Mrs. Mary C. Therkelsen, Oreg. Mrs. Robert Gibbes Thomas, S. C. Miss Clara L. Thompson, Mo. Mrs. Shelley Tollhurst, Cal. Mrs. Samuel Untermyer, N. Y. Mrs. Richard Wainwright, D. C. Mrs. Hettie D. M. Wallis, Tex. Mrs. Thomas F. Walsh, D. C. Mrs. John Jay White, D. C. Mrs. Harvey W. Wiley, D. C. Mrs. S. B. M. Young, Mont. Mrs. Fanny Bloomfield Zeisler, Ill. National Departments Legislative Miss Anne Martin Literature Miss Mary Gertrude Fendall Lobby Miss Maud Younger Membership Miss Mildred Gilbert National Headquarters, Committee of 200 for Maintenance of Mrs. William Kent Organization Miss Doris Stevens Pageant Miss Hazel McKaye Press Chairman, Mrs. Robt. Baker The Suffragist Editors Miss Pauline Clarke Miss Vivian Pierce Cartoonist Mrs. Nina E. Allender Business Staff Advertising Manager--Miss Hazel Hunkins Circulation Manager--Miss Elizabeth Smith Assistant Circulation Manager--Miss Francis Pepper Office Manager--Miss Bliss Finley Executive Secretary Miss Virginia Arnold Field Secretaries Eastern States Miss Elsie Hill Southern States Mrs. E. St. Clair Thompson Western States Miss Margaret Whittemore 17 [*89*] Hon. Woodrow Wilson, President of the United States, Washington, D. C. Dear Sir: Enclosed find copy of resulutions passed at a recent meeting of the Woman's Party of Florida, in which they respectfully ask the immediate passage of the National Suffrage Amendment, and desire your assistance in what we feel at this time, to be not only justice, but necessary as a War measure. Respectfully, Helen Hunt. Secretary, Florida Woman's Party. 425 West Duval Street, Jacksonville, Florida. [*60571*][*89*] National Woman's Party NATIONAL HEADQUARTERS, LAFAYETTE SQUARE WASHINGTON, D. C. COLORS--Purple, White and Gold National Executive Committee Miss Alice Paul, N. J., Chairman Miss Annie Martin, Nev., Vice-Chairman Miss Mabel Vernon, Nev., Secretary Miss Gertrude L. Crocker, Ill., Treasurer Mrs. Robert Baker, D. C. Mrs. O. H. P. Belmont, N. Y. Mrs. John Winters Brannan, N. y> Miss Lucy Burns, N. Y. Mrs. Gilson Gardner, D. C. Mrs. Florence Bayard Hilles, Del. Mrs. Donald R. Hooker, Md. Mrs. J. A. H. Hopkins, N. J. Mrs. William Kent, Cal. Mrs. Lawrence Lewis, Pa. Miss Doris Stevens, Nebr. Miss Maud Younger, Cal. District Chairmen Middle Atlantic States Mrs. Henry Bruere, N. Y. Inland Suffrage States Mrs. E. M. Garnett, Utah North Middle Western States Mrs. A. R. Colvin, Minn. National Committee of State Chairmen Mrs. W. D. Ascough, Conn. Miss Eleanor Barker, Ind. Mrs. Edith Barriger, Mo. Mrs. A. M. Beim, Iowa Mrs. O. H. P. Belmont, N. Y. Mrs. M. S. Bonnifield, Nev. Mrs. W. T. Burch, D. C. Mrs. Dan Casement, Kans. Mrs. Margaret Zane Cherdron, Utah Mrs. H. M. Clagett, Ariz. Mrs. A. R. Colvin, Minn. Mrs. G. W. England, Okla. Mrs. J. Borden Estee, Vt. Mrs. A. R. Fellows, S. Dak. Mrs. Bertha W. Fowler, Colo. Mrs. L. Crozier French, Tenn. Mrs. John Gibbs, S. C. Mrs. C. S. Haire, Mont. Mrs. Florence Bayard Hilles, Del., Mrs. J. A. H. Hopkins, N. J. Miss Ada James, Wis. Mrs. Edward M. Jarrett, Ark. Mrs. Charles Johannes, Nebr. Miss Marie Ernst Kennedy, Pa. Mrs. Otis Floyd Lamson, Wash. Dr. Frances M. Lane, Wyo. Mrs. Ida Finney Mackrille, Cal. Dr. Florence Manion, Oreg. Mrs. Sophie G. Meredith, Va. Mrs. Agnes H. Morey, Mass. Mrs. Elizabeth Darrow O'Neil, N. Dak. Mrs. Joshua Raynolds, N. Mex. Mrs. Townsend Scott, Md. Mrs. Bertram Sippy, Ill. Mrs. Arthur Taylor, N. Car. Mrs. Frederick Walker, Idaho Mrs. Robert Treat Whitehouse, Me. Mrs. Nelson Whittemore, Mich. Mrs. Valentine Winters, Ohio Mrs. Clara Snell Wolfe, Tex. National Advisory Council Chairman, Mrs. John Rogers, N. Y. Secretary, Miss Maud Younger, Cal. Mrs. Frederick T. Ackerman, N. Y. Mrs. Robert Adamson, N. Y. Mrs. Chas. F. Amidon, N. Dak. Miss Jessie Ashley, N. Y. Dr. S. Josephine Baker, N. Y. Mrs. Cyrus Beard, Wyo. Mrs. Mary Ritter Beard, N. Y. Mrs. William B. Boulton, N. J. Mrs. Howard P. Boyle, N. J. Mrs. Edward Breitung, Mich. Mrs. Alfred H. Bright, Minn. Reverend Olympia Brown, Wis. Miss Mary A. Burnham, Pa. Mrs. Dora Phelps Buell, Col. Mrs. Annie Wells Cannon, Utah Mrs. John Carey, Ind. Mrs. Joseph Carey, Wyo. Mrs. Thomas L. Chadbourne, N. Y. Mrs. William L. Colt, N. Y. Miss Anna Constable, N. Y. Mrs. Avery Coonley, Ill. Mrs. Frank Cothren, N. Y. Mrs. Lucius M. Cuthbert, Col. Mrs. George H. Day, Conn. Dr. Mary Dean, Mont. Mrs. Lewis L. Delafield, N. Y. Miss Lavinia Dock, Pa. Mrs. Rheta Childe Dorr, N. Y. Mrs. Crystal Eastman, N. Y. Mrs. Robert Patterson Finley, N. J. Mrs. William Floyd, N. Y. Mrs. Marie Moore Forrest, D. C. Mrs. J. Andre Fouilhoux, Ore. Miss Susan P. Frost, So. Car. Mrs. Emma Maddox Funck, Md. Mrs. Elizabeth Gerberding, Cal. Mrs. Charlotte Perkins Gilman, N. Y. Mrs. Adolphus E. Graupner, Cal. Mrs. Edwin C. Grice, Pa. Mrs. Jennie Law Hardy, Mich. Mrs. W. E. Hardy, Nebr. Mrs. H. O. Havemeyer, N. Y. Mrs. F. R. Hazard, N. Y. Mrs. Phoebe A. Hearst, Cal. Mrs. Wm. Randolph Hearst, N. Y. Mrs. George Hendrie, Mich. Mrs. Elon Hooker, N. Y. Mrs. Frederick C. Howe, N. Y. Miss Mary Ingham, Pa. Mrs. Inez Haynes Irwin, Cal. Mrs. Agnes M. Jenks, R. I. Mrs. Charles Gilmore Kerley, N. Y. Dr. Cora Smith King, Wash. Mrs. Otto Kirchner, Mich. Mrs. Alexander Kohut, N. Y. Miss Fola La Follette, N. Y. Mrs. Lola Maverick Lloyd, Ill. Dr. Sarah H. Lockrey, Pa. Mrs. Anna Lowenburg, Pa. Mrs. Jessie Hardy MacKaye, D. C. Mrs. Lionel S. Marks, Mass. Mrs. Marcus M. Marks, N. Y. Miss Julia Marlowe, N. Y. Miss Helen Marot, N. Y. Mrs. Harris Masterson, Tex. Miss Edythe Wynne Matthison, Conn. Miss Marion May, N. Y. Mrs. Bernice McCoy, Idaho Miss Belle McGibeny, N. J. Miss Vida Milholland, N. Y. Mrs. Lilla Day Monroe, Kans. Mrs. John T. Morrison, Idaho Mrs. Henry Moskowitz, N. Y. Mrs. William Spencer Murray, Md. Mrs. Ellen Spencer Mussey, D. C. Mrs. Adelina Otero-Warren, N. M. Mrs. Marsden Perry, R. I. Mrs. Amos Pinchot, N. Y. Mrs. Annie Porritt, Conn. Mrs. Alden Potter, Minn. Mrs. William Prendergast, N. Y. Mrs. Nina G. Proctor, N. Y. Mrs. James Hayden Rector, Ohio Mrs. Henry Ridgly, Del. Miss Ella Riegel, Pa. Mrs. Julius Rosenwald, Ill. Mrs. Charles Edward Russell, D. C. Mrs. Frederick Sanborn, Cal. Mrs. Frances Thurber Seal, N. Y. Mrs. May Wright Sewall, Ind. Mrs. Eugene Shippen, Mich. Mrs. Austin Sperry, Cal. Mrs. Albert Steinfeld, Ariz. Mrs. Julius Stone, Ohio Mrs. David D. Terry, Ark. Mrs. Mary C. Therkelsen, Oreg. Mrs. Robert Gibbes Thomas, S. C. Miss Clara L. Thompson, Mo. Mrs. Shelley Tollhurst, Cal. Mrs. Samuel Untermyer, N. Y. Mrs. Richard Wainwright, D. C. Mrs. Hettie D. M. Wallis, Tex. Mrs. Thomas F. Walsh, D. C. Mrs. John Jay White, D. C. Mrs. Harvey W. Wiley, D. C. Mrs. S. B. M. Young, Mont. Mrs. Fanny Bloomfield Zeisler, Ill. National Departments Legislative Miss Anne Martin Literature Miss Mary Gertrude Fendall Lobby Miss Maud Younger Membership Miss Mildred Gilbert National Headquarters, Committee of 200 for Maintenance of Mrs. William Kent Organization Miss Doris Stevens Pageant Miss Hazel McKaye Press Chairman, Mrs. Robt. Baker The Suffragist Editors Miss Pauline Clarke Miss Vivian Pierce Cartoonist Mrs. Nina E. Allender Business Staff Advertising Manager--Miss Hazel Hunkins Circulation Manager--Miss Elizabeth Smith Assistant Circulation Manager--Miss Francis Pepper Office Manager--Miss Bliss Finley Executive Secretary Miss Virginia Arnold Field Secretaries Eastern States Miss Elsie Hill Southern States Mrs. E. St. Clair Thompson Western States Miss Margaret Whittemore Copy of resolutions passed by Woman's Party of Florida. Resolved that the Woman's Party of Florida Stands for Presidential Suffrage in the State, and for the immediate passage of the National Suffrage amendment, and resolved that the Woman's Party of Florida respectfully call upon the President of the United States, Woodrow Wilson, and Congress to pass immediately the National Suffrage Amendment, and that the Woman's Party of Florida, urges Speaker Clark of the House; Majority Leader Kitchen of the House; the Judiciary Committee of the House; and the Woman's Suffrage committee of the Senate to do all in their power to secure the immediate passage of the Amendment; and resolved that a copy of these resolutions be sent to President Wilson; Speaker Clark; the president of the Senate; Majority Leader of the House; the chairman of the Judiciary committee of the house, and the chairman of the Woman's Suffrage committee of the Senate. [*60572*][* 89 *] Spokane, Wash. Woodrow Wilson President, The White House Washington, D.C. Sir:- I urge you to use your influence for an early and 60573favorable report of the Susan B. Anthony national suffrage amendment. This session of Congress. Ruth Milholland.[89] Resolution Favoring The Susan B. Anthony Amendent Now Pending In Congress- Presented To The President, Honorable Woodrow Wilson WHEREAS- The enfranchisement of half of the people of our country is an issue vital and essential to the existence of our Republic, and WHEREAS- The newly enfranchised citizens of Kansas realize the vast amount of time, strength and money given by the women of this State to gain their political rights, and WHEREAS- It is our earnest desire to save the unenfranchised women such a useless waste of splendid effort in procuring suffrage through arduous campaigns necessary and incident to the amendment of Sate constitutions, Therefore, BE IT RESOLVED- That we, women voters of the State of Kansas, do unqualifiedly endorse the Susan B. Anthony Amendment to the U.S. Constitution enfranchising women, and call upon the President of The United States, praying, that whatsoever program he may recommend to Congress for action in the present session, he will include therein recommendation for immediate and favorable consideration of National Woman Suffrage. Lilla Day Monroe, Chairman Mrs. Albert H. Horton Mrs. JP Karsten Mrs. J.F. Scott Mrs. T. P. Lindsay Mrs. Robert Gordon Dr Sarah Kline Miss Mandi Mary Kline [*60574*] National Suffrage [*89*] Mrs J. H Johnston Mrs Geo Godfrey Moore Miss Alice Yates Mrs L. M. Garretson AG Hanback Mrs A. S. Riach Mrs Mabel Hanback Lottie A. Case Mrs E. H. Roudebush Lenore Monroe Daisy L. Sieles Mrs J. F. Scott 60575 Lilla Day Monroe No. 909 Harrison Street Topeka, KansasMrs. E. G. Foster [?] P. Morehourer Mrs. Ella L. Tucker " T. H. Pitcher [Miss Maguire] Mayme Marquis Mrs. E. C. McBride Mrs E D C[?] Junie E. Bl[?] Emma Sello Marshall Mrs Anna B. Fisher " Gertrude E. Barnes Ms. Burlingame Mrs W. D. Ross Mrs Louise West E.M. Paxton Mrs AE Johnson A.E. Johnson.[*[89]*] Lilla Day Monroe No. 909 Harrison Street Topeka, Kansas Alice [Nesbaum?] Florence A Bridge Emma E Hewby May E Hall Mae E. Bailey Belle S. Clevenger Mrs J N Rowls Mrs R P [DeArmond?] Mrs E C Mores Mrs L J Prather Mrs H W. Foster Mrs C H Morrison Mrs. Hallie Homing Mrs Mary C Sherman Mrs Carrie Cofram Mrs. A. Samuels Mrs. H. F. Schwarz Mrs Sam Huston Mrs. J. L. White [*60576*][*89*] Suffrage Lilla Day Monroe No. 909 Harrison Street Topeka, Kansas Mrs. Thomas D. Sage. Mrs. Wayne L. Horning. Mary M. Horning. Elizabeth J. Colvin. Mrs Dora O'Neill. Mrs Frank Organ Mrs. W. A. Porvers. Y**** G. Morehouse Miriam M. Foster. Mrs. WE Leguine Mrs. Roy L. Borne. Lotta Palmer. Marie Price Wear Mrs. Lola E. Reflogle [*60577*][*59*] [*Suffrage*] Lilla Day Monroe No. 909 Harrison Street Topeka, Kansas Mrs Geo O. Boone Mrs L.A. Gillette Mrs Allton Mrs. Harshbarger Dr. D. K. Longshore Anna I Milsen Grace Detlor Mary Aten Esther Tayton Mrs. H.W. Bomgardner [*60578*][*89*] Debora K. Langshore M.D. Mrs Frank Organ Anna I. Rielsen Jillah Tucker Anna Wilson Maud Watson Louise Castle Walbridge Della Fay Moures. [*60579*][*[89]*] [Prohibition] Lilla Day Monroe No. 909 Harrison Street Topeka, Kansas Mrs. Robert Fullerton. Mrs. Albert E. Bamberg. Mrs Arthur Tucker Mrs J.E. Wilson Mrs M.[?]. Watson Mrs Mary Erisckson Mary N. Stokes Sara E. Greenfield Mrs. F.R. Sonders Mrs. E.K. Heil Mrs W.M. Balch Elizabeth Gregory Mrs Chas W McCord Ms. L.T. Hussey. Louise Castle Walbridge Mrs. C.W. Miler Ceora Bell Lanham Mrs. F.M. Lanham Mrs Howard N. Rhodes. Emma Sells Marshall [*60580*]Democratic National Committeeman Barnett VOTES VOTES VOTES BARNETT AND CAMPBELL EQUITABLE BLDG. DENVER, COLO. [*89*] [*P*] THANK YOU! PRES'D WILSON COLORADO CARLSON HUGHES VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE VOTE Great work! 1st. Honors to Colorado. 2nd to New Hamp. & 3rd to Ohio. Congratulations! It looks like me if those old fashioned San Juan snow slides Sincerely Hosnahan Boston [*60581*]Copy Resolution sent to His Excellency the Governor of Maryland [*89*] TO HIS EXCELLENCY THE GOVERNOR: WHEREAS, The present war situation calls for the sacrifice, service and patriotic allegiance of the women of Maryland, and WHEREAS, The men of Maryland expect that their women shall leave the shelter of their homes in order to aid their men in the work of defending the State, and WHEREAS, The departure of each white voter in Maryland for military service will deprive a white woman of this State of any representation in his absence, and WHEREAS, The men of England, Russia, France, Canada and even Germany are finding time to enfranchise their women in the midst of a devastating war, as a recognition of their great services performed to their respective countries. BE IT RESOLVED, That we, the suffragists of Anne Arundel County, do call upon you to urge you to give your support to a Presidential suffrage bill to be passed in the coming special session of the Legislature as an Administrative and War Measure. Mrs Richard Rush. Annapolis Md. R.S. Fay Annapolis Md. E.A. Fay Annapolis Md. Wm McKenney 179 P.9.St. R L Dull Annapolis Md Annie McC. Hepburn J.M. Strange Annapolis Md CW. Strykes St John's College Dr Frances Edith Weitzman Annapolis Md. Ella Rush Murray Acton Annapolis Md J. Paul Medford. 182 Main St., Annapolis, Md. S[?] [?] Annapolis Md [*60582*]Ella Rush Murray Acton Annapolis Md J. Paul Medford 182 Main St. Annapolis, Md. Saml Jones Annapolis Md. Wm. Spencer Murray Acton Annapolis Md Ella Rush Murray Acton Annapolis Md A W Dunbar Naval Academy Maud S. Dunbar Naval Academy Edward Jewell Annapolis Md. C. Franklin Strange Annapolis Md Charles G. Feldmeyer Annapolis Md James [?] Sr. Annapolis Md (James Munroe) Margaret C. Wohlgemuth Annapolis, Md. H W. Burgan. Annapolis Elsie Draper Burgan. Sydney S. Handy, 236 Prince George St. Mrs. Sydney S. Handy, 236 Prince George St. Harry Albert Jr. 236 Prince George St Edward D. Johnson Elsie Bradford Johnson C.A.L Wilson [?] Brooks Annapolis Md Geo. C. Barton Annapolis Md Frank D Basil Frank A. Munroe Annapolis Md W.J. King Annapolis Md Mrs Wallace L. Lind Annapolis Md Mrs J. W. Wobcke Annapolis Md Annie Cora Heffenger Lillian L Heffenger A H Wilson Annapolis Md Theodore W. Johnson, 55 Franklin St., Annapolis[?] G. Feldmeyer James Essel[?????] (James Munroe) Margaret C. Wohlgreene MD Annapolis, Md. H W Burgan, Annapolis, Elsie Draper Burgan. Sydney S. Handy, 236 Prince George St. Mrs. Sydney S. Handy, 236 Prince George St. Harry Roberts Jr. 236 Prince George St. Edward D. Johnson Elise Bradford Johnson. C. A. L. Wilson Jno G Brooks Annapolis Md Geo. C. Barton " " Frank A Basil Frank A. Munroe " " W. J. King " " Mrs Wallace L. Lind [*60583*] Mrs. J. W. Wobcke Annapolis Md. Anne Cora Heffenger Lillian L Heffenger A H Wilson Annapolis Md Theodore W. Johnson, 55 Franklin St., Annapolis Walter H. Hart, Church Circle. Charlotte R. Murray Annapolis Md - Mrs. Geo. Davidson St. Margarets Md Mrs. Mary Graven Johnson 55 Franklin St. Annapolis Mrs John J. Lanasa A. A. Co. Louisa V. Walden A. A Co Mrs Frank Hutchins A. A Co Mrs. F. E. Gould. Parole, Md. A. A. Co.[*7*] [*89*] 115 Beechdale Road -- Roland Park -- Md. Dear Mr. President -- I most earnestly urge you to interpret the plank in the Democratic Platform which refers to Woman Suffrage, to the Governor of Maryland and the Legislature -- the extra session starts [*60585*]on May 15th and I sincerely hope you will telegraph them in plenty of time -- There is a wonderful sentiment among the Legislators now, & they only need to be stimulated by your endorsement -- Yours cordially Louise Wilson Schwarz -- Just Government League of Maryland -- [*60586*][*CABLE ADDRESS: "BLACKSTONE" THE BLACKSTONE MICHIGAN BOULEVARD OWNERS AND MANAGEERS THE DRAKE HOTEL CO. TRACY C. DRAKE, PRES'T JOHN B. DRAKE, VICE-PRES'T*] [*7*] [*89*] [*CHICAGO, 191*] Mr. Dear Mr. Tumulty, - I thank you for promptly returning my clippings relative to our plan for establishing equal suffrage throughout the world; and for presenting them to the President. God protect his noble life ! Mrs. Grace Wilbur Trout, our beloved and eloquent and beautiful President of Suffrage, who was given such a long and agreeable interview by President Wilson ,will call upon you some day concerning our new and we think,most helpful blow for women's freedom yet struck. With my very best wishes, Elizabeth Murray Shepherd.[*signature*] 403 Douglas Avenue, Elgin, Illinois, December the fourteenth [*After reading enclosed prospectus you might return it. There are others from the Universities.*] [*60587*][* [89] *] WOMAN'S HISTORY OF THE WORLD Women's International Council for Democracy (Organized by the Board of the History Foundation) Tentative: MRS. HARRIOTT STANTON BLATCH New York MRS. HOWARD GOULD New York MISS ZONA GALE Wisconsin MRS. A. M. SIMONS Milwaukee MRS. GERTRUDE ATHERTON San Francisco MRS. ANDREA HOFER PROUDFOOT Chicago DR. LUCILE EAVES DR. WILHELMINA E. KEY DR. CLARENCE W. ALVORD Dean History Dept. University of Illinois MRS. GRACE WILBUR TROUT Director MRS. ELLA FLAGG YOUNG Washington, D. C. MRS. CLARA SHORTRIDGE FOLTE Former States Attorney Los Angeles MRS. BLANCHE B. WEST Business Manager MRS. WILLIAM SEVERIN Chicago, Treasurer DR. CLARA TODSON Secretary Nolting Block Elgin, Illinois Mrs. Jack London Mr. Clarence Darrow MRS. ELIZABETH MURRAY SHEPHERD Managing Editor 403 Douglas Ave., Elgin, Illinois Mrs. Grace Wilbur Trout, Hotel Raleigh, Washington,D.C. 60588[89] A brief colloquial description THE WOMAN'S HISTORY OF THE WORLD. Supreme Importance of the Work: Historical and Literary Necessity as an Act of Justice to Women. A SUPER-HISTORY by Elisabeth Murray Shepherd The wise Napoleon said: "History is a collection of lies agreed upon". Before chancing upon this worldly epigram, I had written: "History is one long fabric of lies". Napoleon arrived at his conclusion after extensive -if somewhat cynical- making of history himself, in just the manner he described. Much which his Ministers and Marshals performed was attributed to Napoleon: and Napoleon gave his tacit or expressed consent to the imposition upon [the] future humanity. Men demanded supernatural heroes in the past; so every man desiring fame had perfered to surround himself with a halo formed by the lustrous deeds of not only himself, but also [of] every other great man of his time. Otherwise, humanity might find out that there are no supernatural men and refuse to acknowledge kings and tyrants. Farther back, in the days of Herodotus and Confucius, there was required no factual basis whatever for the histories written. Fairy tales were eagerly swallowed by a credulous public. The Chinese worshipped their ancestors, so the ancestors must be given a divine halo. Historians seemed to think they were novelists - 60589Woman's History -2- and their duty was to please rather than to record. Men deified bloody tyrants and military schemers -- so their historians willingly obliged them. The task of the historian in those days must have been an easy one. Has HISTORY HINTED that there was more than one sex worth mentioning? Has HISTORY HINTED that men and women [are] were doing anything else than setting up one tyrant after another for six thousand years? What is the mess we dish up to our children? Read a school history over, -- such as, for example, Myers' General History. Seven hundred pages -- fifty or so are devoted to the manners and customs of the peoples; TWO LINKS on one page to the birth of Christ -- "The central figure in all history" -- and TWO more, a few pages farther along, to His crucifixion and death; none to the WOMEN; all of it to the selfish intrigues of kings and their puppets, murders and wars. The STRONG men, their idol -- the ideal man, apparently, is he who is the MOST selfish. I became appalled at the faithlessness of the historian. THE CHANGING MAP OF THE WORLD has been nothing but a kaleidoscope -- bits of glass handled by a child for his irresponsible, selfish amusement. But we KNOW that this is not true; we know that the race has progressed; we have come out of savagery; we have advanced art and science; we have arrived at a degree of brotherly love and altruism for which the chance gods and devils and the puppet kings and murderers and pirates 60590Woman's History -3- furnish no explanation. NATURE always has a purpose. Underneath this surface display of rapine, tumult, and lawlessness has gone on the real changing map of the world- the SPIRITUAL MAP OF THE WORLD. Why have we evolved distinctly human attributes of pity, sympathy and love? Nature has worked for countless years evolving over higher forms of life. Man is the highest -- and evolution has been at work perfecting man to his highest development. Man himself has been more or less blind to the process. He has attributed natural forces to something supernatural. The old Roman geographers drew a little patch of known land around the Mediterranean and let the rest of the world shade off into unformed shadows, covered over with cruse drawings of imaginary raging masters. Such was the world to them. The same word sufficed for enemy and stranger. But we are through with yellow historians, -- with jingo history. Mankind has outlived his ghosts -- his bugbears, his Mumbo Jumbos, his Hoodoos, his Voodoos, his quackeries -- his charms and spells -- marking his shoddy and partial development. He will demand TRUE histories, alas. His ideals are undergoing change; and he will not be satisfied with a history which seems, prima facie, to proclaim that man worships the rough, the murderous, the egotistic. The world-war has already brought about communism and altruism. We are not accusing all historians of conscious dishonesty. Most of them are unconscious liars. H. H. Bancroft went down to Mexico to write the history of that 60591Woman's History -4- little understood country. Bancroft was entertained by President Diaz in his royal place of Chapultepec. He saw and heard the flattery of Diaz’s minions. He did not consult the people, so he heard no mutterings of discontent. He accepted Diaz's pronouncement upon Mexico; which was, that the people were children in intellect (and always would be); and he a benefficent autocrat; that they needed an “iron hand", and he filled the bill; that Mexico was prosperous and peaceful-- and he did not realize that it was the peace of death, and that the prosperity was confined to Diaz and his pals. But Diaz neglected to tell Bancroft the interesting fact that, as the trusted servant of the people, Diaz had withdrawn money from school funds and closed the schools; and, when the patriotic school-teachers refused to quit -- even though teaching without pay, that he had locked the school doors. He forgot to mention to Bancroft, that, as a consequence of this policy, ninety per cent. of Diaz’s “children” were densely ignorant and as many poverty stricken; that the “iron hand” had ruled after this fashion. "Shoot down anyone who resists." he ordered Do Lopez, "No one will hold you to account". Such subtle (?) influence might be called “the silent conspiracy of power"; and it served as effectively as a bribe would have done in inducing Bancroft to write a corrupted history. The snobbery of the powerful and tyrannical ignores any force but its own. 60592Woman's History -5- Then, there is also the conscious, frank conspiracy to which Napoleon referred. Turner and De Lara also went down to Mexico a few years ago -- and much later than Bancroft. They turned a deaf ear to insinuations that they should write up Diaz as "the Maker of Mexico", and they began to immortalize him as the "Faker of Mexico." They went to real sources -- the people, documents, facts, conditions, and the history they wrote was one to thrill the heart of justice and awakening humanity. But, so soon as the import of their tale was clear, Diaz turned heaven and earth to stop its publication. The American Magazine was forced to withdraw [its] the series; De Lara was hounded over the continent; and mankind was again cheated of the truth; and its upward march thereby delayed. The historians. dealing with facts, and worshipping precedent, is as apt to be blind to great human forces as any other who makes a fetish of authority. Reform pass him by, and leave him gazing stupidly, surprizedly, with his near-sighted eyes, as they rush past him along the path of the universe. He is near-sighted physically and mentally. He probes among dusty tomes till he becomes dusty [and tomby] himself. Some things he does not know [to] exist, because he does not find them in his musty papers. He lives all his life unaware that there are forces- unseen -- moving under the kings and tyrants about whom he writes. The historian has ignored the common people to a great extent he has completely ignored WOMAN. 60593Woman's History -6- Buckle, in his history of Civilization (page four) says: "Scarcely anything has been done toward discovering the principles which govern the destiny of nations. History is still miserably deficient and presents that confused and anarchical appearance natural to a subject of which the laws are unknown and the very foundations unsettled." But it is not a "generalizer" -- a broad philosophical genius, to make general laws upon the facts of history, which I discovered to be the main necessity. We lack an honest historian. There is the need for fully half of past events to be historicized -- which have formerly been suppressed or minimized greatly. If a full half of the race has been ignored, how could anything but a lop-sided history be written? How could anything but a lop-sided civilization be the result of emphasizing and glorifying the work of one half of the human race, and depreciating or ignoring the work of the other half? Especially when the neglected half is the more important since it is the constructive half? How could the laws of progress be determined, when the real progress isn't put into the syllogism? Supposing a man asked for a certain chemical formula, and you write out just half the ingredients? He would get a product in no way resembling what he wanted. [at all] So, in getting at the laws of human progress, history has recorded that life of troublous turmoil; underneath has gone on sure, steady, constructive growth -- many times 60594-7- Women's History “carrying on” in spite of the destructive tendencies of the unbridled ambitions of individual men. How many college graduates know that such a period as the matriarchate existed-- and is still existent in many tribes? If they have heard of it, it is not likely their knowledge extends so far as to know that it was a period of natural development, of peace, of equality, of evolution; that it was an era when the mothers held control. After that gets to them, they will, after some time, begin to contrast it with the patriarchste -- the era of man's supremacy, and realize that the present period has been an era of volcanic progress, of violence, of inequality, of REVOLUTION. The they may begin to get a vision of the Woman Problem and of the monstrous injustice to women and the race, wrought by the sex's long subjection. They may later get the shadow of a vision of the solution of the world's war-sickness: Not the return of the Matriarchate -- nor a perpetuation of the fast-crumbling Patriarchate -- but a UNION of the two -- the strength and ardor of the men combined with the love and constructiveness of the woman. Each sex, running the scheme of things alone, has surely sufficiently proved its inadequscy to effect the fullest happiness and efficiency of the race. Ignorance is the deadliest foe of progress. The better men know women, the better they treat her and her problems. I remember an old deacon of my childhood, who was eternally opposed to “the wimmen", who used to rise regularly in prayer-meeting and say: "Wimmen should stay to hum. Hum is their proper sp’ere; they hain't 60595Woman's History. -8- got no call to go out and mount the scaffold an' speak an' argy with men -- the scaffold is men's proper sp'ere" ---- Thus, the men have proved the case against themselves. When I was a little girl, I was a confirmed Don Quixote -- above all, I was woman's protagonist. But the Happy Hooligans of childhood may become the Sir Phillip Sydneys of maturity. As I went on studying the the case, it seemed that woman was the most unjustly oppressed of all creatures; but that, having once proved her power to direct the race aright, mankind would not be normal or happy until woman should be restored to her equality; that when injustice to her should be removed, she would remove all other injustices. It is just like putting back the main-spring in a watch. Then I discovered that biology and history and philosophy sustain my opinion. We women had been endeavoring, through protests and agitation and education, to secure woman's equality. We encountered the most stubborn resitance, ridicule, plausible lies --the Banque of ghost of PRECEDENT. But at last, we gained the forces of science, religion, education, temperance to fight with us. Yet all the while, the bigoted resistance continued and refused to be convinced. They seemed to think we were making our claims "ex cathedra" -- merely as diets, without facts upon which to base our claims. Here and there, speakers, and writers pointed to women had had risen against obstacles and almost overwhelmingly opposition and achieved; and thus 605969 proved their equality? But the bigots sneered at these as fresk[e]s and “sports”. So studying the question, I became convinced that only a review of all history would prove our conteation,and would furnish the only proof which the opposition would believe and could not deny. Then, while a student at Northwestern University, came the great vision: I would write a Woman’s HIstory of the world. I felt as Keats describes in his sonnet upon Opening Chapman's Homer: “ Or like stout Cortex--- Then the blue Pacific swam into his ken-- Gazed on each other with wild surmise Silent upon a peak of Darien". Only Keats was a better poet than historian. Now, the psychological moment for launching such a work has arrived. The world is afire over international and human problems as never before; women have proved materially, spiritually, what they can do; the world is in a state of transformation; and we must seize the flood- tide to put the world "over the top" of civilization. We must set it upon Its feet - square and solid and right. And personally, the editor has reached the psychological ripeness and balance and education and experience which should guide the literary side of the task aright. It would have been easy enough - it would now be simple and easy -- to go ahead slowly, and do the work alone -- with less than a fifth of the expenditure budgeted below; but so long as it is a work of such tremendous size and import to the race, especially to 60597 10 Woman’s History our sex, I believe that it belongs to ALL women, and that as many as can should share in its production. Community of effort iz the best publicity agent: and, when a thing is [g] good, it should receive the limit of publicity. By a large force of assistants, travelling about over the world, there will be an inevitable tendency to crystallize support of the idea of equality and peace which the history will teach. A large force of the best minds of the world will reset upon each other and produce a masterpiece without parallel. The conscripting of brilliant, large-souled women in not In any sense difficult . In their various capacities of editors, business managers, research workers, evolutionists, biologists, organizers, they are offering themselves daily - though I have not announced the project publicly and wish not to do so, until the plans are completed. The Director of the Illinois Historical Survey of the University of Illinois, Dr. C. W. Alvord, author of several standard histories, has offered his services and those of the force of trained research workers who have just completed the Centennial History of Illinois. Celebrated writers are only too eager to be identified with a work of such dignity, prestige and unprecedented results. The immediate political project ( discussed below .- Part II ) of securing woman suffrage throughout the world, when peace terms are being drawn up at the conclusion of the war, - will be immensely forwarded if not assured, by this work. Therefore, the need of hurrying it as fast as practica[the]ble and the need of a large staff of sides[.] is obvious 60598Woman's History -11- We hereby append the full estimated budget. The thought of returns--"profits"--was the last to come into the editor's head. But, as the extent of the work became clearer to us, we saw how really a great record the history will make in this direction also. With the tremendous advertising it would get-- through our research workers travelling about over the world, through prizes given in the universities of every country, through our publicity bureau, through our lecturers in every land, every woman on earth who can read would have to peruse this work. Five million copies in ten years is our estimate. If the Founder were looking at the project from that angle, he could compute that the history will repay his investment ten times over. ESTIMATED COMPLETE BUDGET: Three Years. 60599[*89*] To His Excellency Woodrow Wilson, The President of the United States, Greeting from The Woman’s Suffrage Club of Cambridge, Massachusetts We unanimously wish to express our grateful appreciation of the honor that you, as the President of this great nation - the leader and champion of Progressive Democracy - are conferring upon us by your acceptance of Mayor Peter's invitation to choose Boston as your landing place, on your return home from your wonderfully successful mission of innaugurating the "League of Nations" - which is the forerunner of "Peace on earth, good,will to men.” We as a body of women suffragists, hope to have the national honor of being counted as half of the people referred to by our immortal Abraham Lincoln in his inspired proclamation of democratic government as being "of the people, by the people, and for the people". We understand you to be in perfect accord with the "Master Mind" and also wuth the Lincoln mind, and we wish to assure you of our appreciation of your efforts and influence for the enfranchisement of women, thereby developing the great Principle of Democracy. We desire to earnestly protest against the attitude of the National Woman's Party, which is happily very much in the minority and entirely out of accord with the spirit of the suffragists of this State and the nation. Our aim is to help, not hinder, the important work on hand at present, and at all times to stand loyal to President Wilson, as he so valiantly stands loyal to the Principle of true democracy - "peace on earth, good will to men". Loyally and faithfully yours to command, The Woman's Suffrage Club of Cambridge, Massachusetts Edna Lawrence Spencer, 1st Vice President 9 Pleasant St. Cambridge A Louise Harlow - Treasurer Katherine A Hunt 158 Magazine St. Cambridge 60600[*89*] [*g*] THE WHITE HOUSE. WASHINGTON. Dear Governor: The suffrage situation prac- tically ressolves itself into this, that if Senator James will not be paired there will enough votes to put it over. I just talked to Richardson, Senator James' secretary, who told me that the Senator would be inclined to do what you wish with reference to pairing himself, so that his vote against the amend- ment would not be counted, and that his absence would really count jim favor of suffrage. I do not see any objection to your writing a letter to the Senator, as a friend, telling him that the situation has developed the fact that his being paired against suffrage will probably result in its de- feat, that you realize his position in the matter but that you would appreciate it if he could at least not pair himself against suffrage; and then write him along the lines of the Shields letter. The Secretary. C.L.S. [*60601*][*89*] 115 Brood Rector 40 Chas A Towne 60602[*[89]*] I take it for granted that it is not necessary for me to state my position as head of the National Executive on this subject because I have already stated it with the utmost frankness. I do not feel at liberty to suggest action which has not been indicated by the platform of the party now in control of the government. I may, however, be permitted to express the confident conjecture that the platform of the Democratic party was silent on this subject because of the conviction of those who drew the platform that this very important subject was a matter which ought on well-established constitutional principles to be handled by the several states, rather than by the national government. I share that conviction. The progress along these lines made by the advocates of the suffrage for women has been very noteworthy and should be very gratifying to those who have so earnestly supported this change in our political methods. 60603Carolyn [89] 60604[*[90]*] THE AMERICAN REVIEW OF REVIEWS 13 ASTOR PLACE-NEW YORK ALBERT SHAW-EDITOR [*ack 3/7*] THE WHITE HOUSE MAR 6-1913 RECEIVED [*7*] March 5, 1913 Dear Mr. President: I have just remarked, in a line to my long-time friend, Franklin K. Lane, that "President Wilson is not only building well, but he is building even better than he himself knows." You have been guided by a spirit of wisdom and discernment in selecting a strong cabinet, fit for departmental work and also for the general duties that are commonly assigned to the President's advisers as a group. Inasmuch as I had taken it upon myself to write to you about the Department of Agriculture, naming Dr. Dabney, I wish to say that Dr. Houston quite fully meets the requirements that I had in mind for the position and also brings some additional qualities to the cabinet that our friend Dabney might have brought in lesser measure. Houston is just the type of man you need,—and all of us who have served with him for years on the Southern Education Board know his talents and his value. McAdoo, at the Treasury, will show those fine qualities of intelligence and audacity (in the right sense of the word) which will be so great a relief to the country after the eclipse which that great department has suffered during recent years. I have known Franklin K. Lane well for a long time, and do not think you could possibly have found another man in so many different ways qualified to give a wise administration of the Interior Department. We 60605President Wilson -2- conservationists of the reasonable type will follow Lane with implicit confidence. Mr. McReynolds is eminently satisfactory as Attorney-General, and Mr. Redfield as Secretary of Commerce will have the country's full confidence from the beginning. I have no doubt Mr. Burleson will make an admirable Postmaster-General. My great desire for that department has been to have it put upon a basis of business efficiency and broad intelligence. No other department so much needs to be cleaned out from top to bottom as the Post-Office Department. Your mail will be heavily burdened, and yet I must give myself the pleasure of expressing, not merely my satisfaction, but my great elation over the way in which you have framed the cabinet. The inaugural address is just what we could have wished for,--the sincere expression of your high purpose, and a sound diagnosis of the condition of the country. Naturally and properly, you will use the Democratic Party mainly as the instrument through which to do your work, but I know that I speak for a great multitude of intelligent and patriotic men when I say that you are going to have the support of the best public opinion of the country, quite regardless of party, in the course upon which you have made so splendid a beginning. As always, Faithfully yours, Albert Shaw. Honorable Woodrow Wilson The White House Washington, D.C. 60606THE AMERICAN REVIEW OF REVIEWS 13 ASTOR PLACE - NEW YORK ALBERT SHAW - EDITOR [*ACKD APR 4 1913 T.M.H.*] [*THE WHITE HOUSE APR 3, 1913 RECEIVED*] [*[90]*] April 2, 1913 Dear Mr President: I have asked the office to send you copies of the April Review, in which I have made you restate your theory of the American cabinet as you wrote it for me exactly twenty years ago. I should not have quoted an old article if I had not thought it remarkably sound and wise in itself, and if I had not also thought that you had in practice carried out very well your old theory. I think you have managed to make a ministerial group that accomplishes two or three things at the same time: 1. It represents very fairly the Democratic party; 2. It represents current political opinion in the country; and 3. it is fitted to work very well with Congress. As you may see from my opening editorial notes in the April Review, I have been particularly well pleased with the application of your theory to the under-secretaryships. It was a fine thing to put Skelton Williams in the Treasury, John Bassett Moore in the State Department, Sweet in the Commerce Department, and so on. The temporary retention of certain under-secretaries from the last administration gave me a good deal of disquietude as a friendly observer and critic of your administration. My disquietude was justified when Mr. Huntington Wilson undertook to call you to task and to expound American policy in the far East as if he were a person of authority. I am quite sufficiently a civil service reformer. But these under-secretaryships are in most cases political in the highest sense. 60607President Wilson -2- Every Department, as regards its highest group, ought undoubtedly to be reconstructed and harmonized. The indispensable holdover from the previous administration is the most dangerous man that can be trained, as the illustration I have cited amply indicates. I hope to call the executive offices and pay my respects to you in the near future. As always, Faithfully yours, (Handwritten: Albert Shaw) Honorable Woodrow Wilson The White House Washington, D.C. 60608[*90*] April 4, 1913 My dear Shaw: Accept my warm thanks for your kind letter of April 2d, and for your courtesy in sending us we copies of the April Review. I am delighted to know that you find my appointments so pleasing. You may be sure that your suggestions will not lack for consideration. With warm regard, Faithfully yours, Dr. Albert Shaw, Review of Reviews, 13 Aster Place, New York City [*60609*]THE AMERICAN REVIEW OF REVIEWS 13 ASTOR PLACE - NEW YORK ALBERT SHAW - EDITOR [*ACKD APR 21 1913 C. L. S.*] [*THE WHITE HOUSE APR 19, 1913 RECEIVED*] April 18, 1913 [*90*] Dear Mr. President: Possibly it might amuse you to run your eye over what I have said for May, regarding your recent innovations and particularly regarding the pending tariff and revenue measure. I am venturing to send you some rough advance sheets. I have had a good deal of a following throughout the country, in years past, in my discussion of tariff questions, and I find myself able to go the full length of this bill, thoroughly supporting free wool. I believe upon the whole that the sugar tax is a useful one to retain, with modification, chiefly because I think the Government is entitled to a substantial revenue from sugar, while incidentally I like to deal kindly with Louisiana in the South, the beet-sugar people in the West, and the Hawaiian and Porto Rico producers, in view of recent history. But I should materially reduce the sugar tax, and my motive would be principally that of revenue. The only way possible to get a tariff bill through is for the President to take a strong position as representing the party and country as a whole; otherwise individual Congressmen, however well-meaning, succumb to the pressure of locality interests, and we get a log-rolled and vicious result. Always, Faithfully yours, Albert Shaw Honorable Woodrow Wilson [*60610*][*90*] April 21, 1913 My dear Shaw: Thank you warmly for your letter of the eighteenth. I know how much you have thought and written about the tariff, and your approval of the pending bill strengthens my own mind greatly. Thank you warmly for the advance sheets from the Review. They will be of real use to me. Cordially and faithfully yours, Dr. Albert Shaw, Review of Reviews, New York City. 60611THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*W.F.J. APR 26 1913 ACK'D*] April 25, 1913 Dear Mr. Tumulty: I am sending you a couple of copies of the Review for May, thinking you may like to glance it through and that the President may care to turn the leaves. I should like to call his attention to the article on page 574, on"American Ships for Panama", because this is the only article that has been published, so far as I know, giving full information as to what is going on in preparation for the use of the canal by our own shipping. The following article, on "Alaska and the Railroads", and the one on "Federal Plant Quarantine", are also of some interest as relating to the big public machine of which you are now one of the managers. Sincerely yours, Albert Shaw. Hon. Joseph P. Tumulty Secretary to the President Washington, D.C. [*Don't answer this! A.S.*] [*90*] [*60612*]The White House, Washington. [*T*] August 12, 1913. Memorandum for the President. Doctor Albert Shaw, Review of Reviews, asks if he may see the President for two or three minutes today. {*90*] [*luncheon*] [*1 o'clock*] 60613THE WHITE HOUSE. NOV 4-1913 RECEIVED THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR November 1, 1913 ACK'D NOV 5 1913 C.T.H. [* 90 *] Hon. Joseph P. Tumulty Secretary to the President Washington, D.C. Dear Sir: Dr. Shaw is having two copies of the November Review of Reviews sent to you to-day, thinking that you might be able to call the President's attention to the article on the new tariff, by Mr. N. I. Stone (page 559), and also to Dr. Shaw's discussion of the tariff, the currency, and the Philippines, in the opening pages of the magazine. Very truly yours Howard Florance Sec'y 60614THE WHITE HOUSE DEC 24 1913 RECEIVED THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR [#] [*RECEIVED]* [*ACKD DEC 26 1913 T.M.H.*] [*90*] December 22, 1913 Dear Mr. Tumulty: I am sending you an early copy or two, just off the press, of the January number of the Review. The President may like to turn the leaves for a moment. The picture on page 10 we think a particularly agreeable one of him and also of you. Sincerely yours, Albert Shaw Hon. Joseph P. Tumulty Secretary to the President Washington, D. C. 60615SHAW, Albert, December 22, 1913. Congratulates the President upon the passage of the Currency Bill. See 93-A [* 90 *] 60616 SHAW, Albert, New York, N. Y., January 20, 1914. Re President's message on trusts and trade commission. See 1105 [*90*] 60617THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*#*] [*Ackgd 1/22/14*] January 21, 1914 [*90*] Dear Mr. Tumulty: Mr. Shaw asks me to send you a set of the early sheets of the February Review, which will indicate the quickness with which we proceed here, inasmuch as there is considerable editorial comment upon the President's trust message although that message was delivered only yesterday afternoon. These are, of course, only rough sheets. Very truly yours, Howard Florance Sec'y Hon. Joseph P. Tumulty Secretary to the President Washington, D.C. 60618[*ACK'D APR 11 1914 T.M.H.*] [*dun*] Dear Mr. Foster: In discussing pending oil legislation, Albert Shaw asked me yesterday if I had # sent a copy of this address to the President - so I send it. Yours always, David T. Day Washington, April 11, 1914 [*90*] [*60619*]THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*ACK'D APR 18 1914 T.M.H.*] THE WHITE HOUSE, APR 18 1914 RECEIVED April 17, 1914. [*90*] Hon. Joseph P. Tumulty, Secretary to the President, Washington, D. C. Dear Sir:– The Review of Reviews would like very much to have, for reference use, copies of the various addresses which the President has delivered to Congress. If there are printed copies available for distribution to such publications as ours, we would greatly appreciate your courtesy in sending a set to us. Thanking you in advance, we remain, Very truly yours, Editorial Department THE REVIEW OF REVIEWS. [*#*] 60620THE AMERICAN REVIEW 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR [*OCT 2 1914 ACK'D OF REVIEWS*] [*Hold*] [*W.F.J. OCT 2 1914 ACK'D*] September 30, 1914 [*90*] Dear Mr. Tumulty: We have a good many things in the October Review that may, I think, be of interest to the President; and I am asking Mr. Florence, of my staff, to send you some copies. With best wishes, Faithfully yours, Albert Shaw # Hon. Joseph P. Tumulty Secretary to the President The White House, Washington [*60621*]THE WHITE HOUSE DEC 30 1914 RECEIVED THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW - EDITOR [*ACK'D DED 31 1914 T. W. M.*] December 29th, 1914. [*90*] Hon. Joseph P. Tumulty, Secretary to the President, White House, Washington, D. C. Dear Sir:- Dr. Shaw has asked that several advance copies of the January Review of Reviews be sent to you. There are several matter contained therein which you yourself might find interesting, and which you might find opportunity to bring to the attention of the President. In the opening pages is Dr. Shaw's editorial comment on phases of American peace and neutrality followed by discussion of the question of our preparedness for defense. On page 13 will be found the references to the President's message, and on page 93 an extended quotation from the message. Very truly yours, Howard Florance + secy 60622THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR [*THE WHITE HOUSE MAY 26 1915 RECEIVED*] [*shorthand*] [*ACK'D MAY 27 1915 T.M.M.*] [*sent to House*] [*90*] May 25, 1915 Dear Mr. President: These have been anxious times for you, and I have thought it well not to add to the burden of White House mail or to write letters to the newspapers. I am, however, sending you advance copies of the June Review, in which I have commented at some length upon recent affairs, and which bring the news up to two days ago. We greatly missed you at Baltimore, where I spent Thursday and Friday. But we all well understood the public and private reasons which kept you at Washington. With warm regards, Faithfully yours, Albert Shaw. Hon. Woodrow Wilson The White House [*60623*]May 27, 1915 [*[90]*] My dear Shaw: Let me thank you for your thoughtfulness in sending we the advance copies of the Review of Reviews. I shall be interested to read your comments. I was genuinely sorry not to be able to attend the reunion. Cordially and sincerely yours, Dr. Albert Shaw, 30 Irving Place, New York City. 60624THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE - NEW YORK [*Ackgd 6/29/16*] [*90*] June 26, 1916. Dear Sir: I am sending you under separate cover several copies of the forthcoming July issue of the Review of Reviews, containing an article entitled "Wilson the Candidate," prepared for us by Mr. L. Ames Brown. Very truly yours, Howard Florance Hon. Joseph P. Tumulty, White House, Washington, D. C. [*Hold for*] 60625THE WHITE HOUSE DEC 2 1916 RECEIVED THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW - EDITOR [*90*] December 1, 1916 DEC 5 1916 Dear Mr. President: I am sending you a copy of a volume that has been privately printed here, by the League for Political Education, in memory of our old friend, the late Elgin R. L. Gould. I was asked to write the chapter on Gould's student days at Baltimore, and it occurs to me you may like to glance it over as referring to a period that does not seem so long past, although more than thirty years have gone by since that time. I had meant to ask you for a few words of recollection about Gould, but the compilers of the volume put me under some pressure to prepare the copy, and it was at a moment when you were greatly absorbed by acute foreign situations and could not be bothered with outside details. I beg to congratulate you upon your reelection and to express confident wishes for an administration that will witness world peace on terms of justice and honor, with our own country helping to bring about the desired readjustment. I have found myself heartily in accord with most of the undertakings and achievements of your administration, though I have had a view of America in relation to the European War that has been different from yours on the one hand and quite different from Mr. Roosevelt's on the other. I have from the start believed in a 60626somewhat aggressive assertion and enforcement of our own rights as a neutral, regardless of sentiment or sympathy for one side or the other. But we are all standing loyally behind your conduct of affairs, and I have in the main had a great regard and esteem for the personnel of the Administration. Again with heartiest wishes for the success of your second term in its public policies, and with the wish that your health--which seems to have improved all the time--may continue to be vigorous, I am, Faithfully yours, Albert Shaw. Honorable Woodrow Wilson The White House Washington, D.C. 60627[*[90]*] December 5, 1916 My dear Shaw: I am glad you sent me the memorial volume to Gould and I shall take a great deal of interest in examining particularly the part about our old association at the Hopkins. I appreciate very warmly what you say about your feeling concerning my reelection and about the administration in general. Some day we will get together and thrash out such differences of opinion as we may happen to have. I often think of our old association and have a strong appetite for some of the old talks. Cordially and sincerely yours, Dr. Albert Shaw, Review of Reviews, New York City. 60628THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*THE WHITE HOUSE FEB 2 1917 RECEIVED*] [Ackgd 2/3/17*] [*90*] February 1, 1917. Hon. Joseph P. Tumulty, The White House, Washington, D. C. Dear Sir: There are some things in the February number of the Review of Reviews that we in this office think the President might be interested in seeing. Especially, there is Dr. Talcott Williams' article on the power of the President to make foreign policy. The President might also find it interesting to read what Dr. Shaw has said editorially regarding peace notes and discussion – having in mind the fact that this was sent to press several days in advance of President Wilson's address 60629before the Senate on January 22. Three copies of the February number are therefore being sent to you by this mail. Very truly yours, Howard Florance (Edit. Dept) 60630THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*THE WHITE HOUSE APR 23 1917 RECEIVED*] [*90*] APR 28 1917 April 27, 1917 Dear Mr. President: In these busy times that keep your mind fully taxed with great affairs, I have not written you or made any venture at communication. But I must now tell you in a word that I have read your message of April 2, not once only but a number of times at intervals between readings. I am not much given to enthusiasm over messages and state papers, but I approve of this paper of yours in a very high degree. I read it as a necessary sequel to the peace address of January 22. I look upon your present policies as intended to offer to the German people precisely as fair and honorable a place in the world as you assign to the French or Italian or Russian people. I was extremely reluctant to have the United States enter the war, and I was greatly out of sympathy with certain New York interests, in the press and in business, that were clamoring for war on grounds that did not seem to me to be constructive. I had differed with State Department policies quite strongly at times, because I was perhaps too insistently of opinion that we ought to take practical steps to enforce neutral maritime rights upon all belligerents. All those things, however, lie in the past. The force 606312. of events has justified your course, as you have now helped the Allies and the neutrals to see a constructive outcome to what otherwise might have been a merely destructive war. I have tried in the editorial pages of the Review for May to express my approval of this entrance on our part into an immediate league for the establishment in the world of peace on enduring principles. Working out the vast and complicated details which follow our momentous decision will be a taxing and trying business for you at times. I am confident that you will have the main end in view; and have the most ardent hope that your leadership in a league of democracies for justice and harmony in the world may have two great effects: (1) to shorten the war, and (2) to reconstruct affairs on sound and progressive lines. There may be nothing at all that I personally can do, because I am not exactly military timber. But if there should be anything of any sort, you will know that I am wholly at your service. With great regard, Faithfully yours, Albert Shaw. Honorable Woodrow Wilson The White House Washington 60632[*[90]*] 28 April, 1917 My dear Shaw: Thank you warmly indeed for your letter of April twenty-seventh. I have always valued your judgment and such a letter does me a lot of good, particularly since I know you do not form such judgments as you have expressed in it without deliberation. The task before us is a long one and a grim one, but I am sure we shall all stand together now with a similar purpose and in a like spirit. I wish I wish I had time for a real letter, but you will know the things which this letter is meant to express but which I have not time to put into it. Cordially and sincerely yours, Dr. Albert Shaw, The Review of Reviews, New York City. 60633THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*Mailed 5/16/17*] THE WHITE HOUSE MAY 16 1917 RECEIVED May 15, 1917. [*90*] The Secretary to the President White House Washington, D. C. Dear Sir: This office has endeavored to maintain intact a file of the President's addresses, as they are sent to us from time to time from your office. Our set lacks, however, the following: The second inaugural address; Address at the dedication of the Red Cross Building in Washington; The proclamation of April 6 regarding aliens. We hope that you may be able to send us a copy of these addresses, and we thank you in advance for your courtesy. Very truly yours, Editorial Department, THE REVIEW OF REVIEWS. 60634SHAW, Albert New York, N. Y. May 22, 1917. Asks that the President grant an interview to Charles D. Lanier, who, he states, is regarded by all the periodical publishers as understanding every phase of the pending Post Office controversies over taxation and second-class matter better than any other man. See 22- D. [*90*] 60635THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*Sent 6/20/17 CC*] THE WHITE HOUSE JUN 20 1917 RECEIVED June 19, 1917 [*90*] Hon. Joseph P. Tumulty Secretary to the President Washington, D.C. Dear Sir: We have noticed that the handy little pamphlet copies of the President's addresses and messages are no longer coming to us (addressed to Dr. Shaw) from your office. Just now we have occasion to refer particularly to the Immigration Bill veto of last January, but we also have never had official copies of the Decoration Day address, the one before the Confederate Veterans, or the Flag Day address. Perhaps these are not available for distribution, but if they are we should be glad to have copies of them. With appreciation of past courtesies, we remain, Very truly yours Editorial Dept., THE REVIEW OF REVIEWS. Howard Florance 60636SHAW, Albert, LANIER, Charles, D., New York City, September 11, 1917. On behalf of the Review of Reviews protest against the proposed zone system of of second-class postal rates provided for in the war revenue bill. Encloses letters from Lawrence F. Abbott, of the Outlook Company, and others, together with printed matter. See 22-D [* 90 *] 60637THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW–EDITOR [*ACK'D OCT 1 1917*] [M Fortis] [*90*] [*?????????? R, 7.*] [*THE WHITE HOUSE OCT 1 1917 RECEIVED*] September 28, 1917 Dear Mr. Tumulty: You were occupied at the White House yesterday when I looked in to see you, and accordingly I left with Mr. Forster the set of proofs of the volume of President Wilson's messages and addresses--about which I had spoken to you, as you will remember, several weeks ago. A little examination of this book will show you that we have taken a good deal of pains, in what I think you will find a very intelligent way, to bring these documents together as a matter of convenience and accessibility. The brief introduction and sketch of President Wilson's career I dictated myself, and although they are very slight I think they will be found to have the right point of view. Mr. Howard Florance, of my staff, has given great pains to making the explanatory notes, and in my opinion deserves much credit for the way in which such parts of the book as the Preparedness speeches in the West have been put together. He also has made the unusually intelligent and valuable index. I shall have some bound copies to send you, I think, early next week. When I spoke to you about this book, I suggested that we would be glad to have from you a simple letter, sent to me,endorsing the general accuracy of the text that we used. As a matter of fact, all the important messages and addresses have been set up from your own official versions, which [*60638*]Mr. Tumulty -2- were sent direct to me from your own office. I am not asking or expecting you to say anything more than what you would, I am sure, be both willing and glad to write. I hope the President may like the way in which we have put these things together. I am sending you over a couple of copies of the October Review, in which I beg to call your attention particularly to my analysis and review of German autocracy and the President's answer to the Pope. I regard that as one of the most valuable and important of all the President's addresses. You will see that we not only included that in our book, but got in several still later matters. Believe me, as ever, Sincerely yours, Albert Shaw. Hon. Joseph P. Tumulty The White House Washington 6063928 September, 1917 [*90*] My dear Shaw: Mr. Tumulty has looked over the proof of the messages and state papers which you were so kind as to send us and has formed the opinion that they are very carefully compiled and very accurate. The compilation will certainly prove very valuable to myself amongst others and I am obliged to you for having undertaken it. Cordially and sincerely yours, Dr. Albert Shaw, Review of Reviews, New York City. 60640THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*[90*] [*Yes*] October 1, 1917 [*ACK'D OCT 2 1917 W.F.J.*] Dear Mr. Tumulty: I have received a very agreeable note from the President, which reads as follows: My dear Shaw: Mr. Tumulty has looked over the proof of the messages and state papers which you were so kind as to send us and has formed the opinion that they are very carefully compiled and very accurate. The compilation will certainly prove very valuable to myself amongst others and I am obliged to you for having undertaken it. Cordially and sincerely yours, WOODROW WILSON We had not expected the President to take time to go into this himself, and his letter is very gratifying. Inasmuch as our business office had desired a statement that we might use regarding the accuracy and reliability of this material, I suppose there could be no objection to our publishing what the President has said. But I wish to make sure that this would be permissible, and so I drop you this line, hoping to hear from you in a day or so. With best regards, Sincerely yours, Albert Shaw. Honorable Joseph. P. Tumulty The White House Washington, D.C. 60641THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR October 3, 1917 [*90*] [*7*] Dear Mr. Forster: I have your note, and will have the greatest pleasure in sending you the volume containing President Wilson's messages and addresses. We shall receive our first bound copies two days from now, and a copy will be sent you at once. We shall, of course, be glad to see that ample copies are supplied for the President's use. Please thank Mr. Tumulty for his note which came yesterday. I had received the President's note and will acknowledge it in sending him some copies of the book as soon as they come from the binders. Sincerely yours, Albert Shaw. Mr. Rudolph Forster The White House Washington, D.C. 60642THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*Mult*] [*ACK'D OCT 8 1917 T.M.H.*] October 5, 1917 [*90*] Dear Mr. Forster: Dr. Shaw has asked me to send you a line saying that one of the first copies of the President's "messages and state papers" has been sent to you to-day, along with others for Mr. Tumulty and for the President himself. These early copies were put through the bindery in a hurry, and do not look as well as later copies will. Additional copies will be sent to the White House later on. Very truly yours, Howard Florance Mr. Rudolph Forster The White House 60643THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*THE WHITE HOUSE OCT 8 1917 RECEIVED*] [*Jaw*] [*Hold for*] [*ACK'D OCT 9 1917 W. F. J.*] October 5, 1917 Dear Mr. Tumulty: I am sending over three copies of the Wilson Messages, for the President, and am sending a copy for you. Please do not be unduly disappointed with the paper and printing. It is legible, but not as it ought to be. These first copies were hurried through the press, and in a short time we shall have more printed with better ink and on better paper. I will then see that you have a bunch of them, because once in a while you might like to hand a copy to some foreign visitor. Believe me, Sincerely yours, Albert Shaw. Hon. Joseph P. Tumulty The White House Washington [*90*] [*60644*]THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR October 5, 1917 [*ACK'D OCT 8 1917 T.M.H*] [*90*] [*THE WHITE HOUSE OCT 7 1917 RECEIVED*] Dear Mr. President: [*dun*] I am sending two or three copies of the volume we have prepared of your Presidential Messages and Addresses. I was glad to be assured, in the note that you sent me, that you would find this collection valuable for your own use. As you have an opportunity to look the book through, I think you will find the collection is quite inclusive without being unduly so. Mr. Howard Florance (of my staff), for example, went through carefully all of the speeches you made on the Western preparedness tour, and by eliminating repetitions that would naturally occur under such circumstances, he has, I think, given us an adequate report. You will also find the explanatory and connecting editorial notes to be convenient and to help the book for reference purposes. The analytical index, also— which makes it possible, for instance, to find everything important that you have said on the subject of Mexico—will be handy for the Opposition in trying to search out your inconsistencies! Doubtless it may prove convenient to have a number of copies of this book in the White House offices, and we shall be glad to see that as many are sent over to Mr. Tumulty as can be used. Unfortunately, as you will see, these first books have not been well printed. The paper and ink are not just right, and there has been some offsetting. Not many have been printed on this paper, and in the near future we shall have better 606452. copies to send. Meanwhile these, though not perfect, are entirely legible and will serve for reference until I can send you better-printed ones. We are going to bring out in ten volumes the Messages and Addresses of all the Presidents. This volume of yours, however (which will be Volume X) has been prepared for separate circulation. It is upon a more extensive scale than the others, which, apart from annual messages, are relatively condensed. While I have read many of your addresses repeatedly as single efforts, I have been more than ever impressed with them as I have gone through them for the cumulative effect that I get from this volume. It has a much more permanent quality, from every standpoint, than the material in some of the preceding nine volumes. I will, of course, have pleasure in seeing that the set goes to you in the near future, when it is ready. It is on a much more condensed plan than the old Richardson set—more useful for some purposes though not for others. Believe me, with great regard, Sincerely yours, Albert Shaw Honorable Woodrow Wilson The White House 60646[*THE WHITE HOUSE OCT 26 1917 RECEIVED*] THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR [*90*] [*Hold for*] October 25, 1917 [*ACK'D OCT 30 1917 W.E.J.*] Dear Mr. Tumulty: We have some copies of our volume of President Wilson's State Papers and Addresses that are rather better printed than those I sent you earlier; and I am now sending over a couple of dozen copies, thinking they may be convenient to have in your office, to give to a foreign visitor or otherwise to make use of. With best wishes, Sincerely yours, Albert Shaw. Hon. Joseph P. Tumulty The White House Washington, D.C. 60647[*[90]*] [*THE WHITE HOUSE OCT 26 1917 RECEIVED*] THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR October 25, 1917 Dear Mr. President: We have now copies of the little volume of your State Papers and Addresses that are more carefully printed than those that I sent over to Mr. Tumulty a week or two ago. I am sending over a number of copies to Mr. Tumulty, thinking it may be a convenience for him to have them at hand for a foreign visitor now and then, or some such purpose. It is a great satisfaction to find in these messages and speeches those doctrines which,- as it becomes every day more clear,- are the justification of our being at war, and the basis upon which we shall help to establish peace. With great regard, Faithfully yours, Albert Shaw. Honorable Woodrow Wilson The White House Washington 60648[*90 *] THE WHITE HOUSE, WASHINGTON. November 23, 1917. Memorandum for the President: Dr. Albert Shaw called this morning and asked if he might have two or three minutes with the President some day week after next. He could come to Washington on a day's notice. 2:30 Dec. 6th C.L.S. notes JWB [[shorthand]] [*Wrote Dr. Shaw 11/23/17*] 60649THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*Ackgd 11/28/17*] November 26, 1917 Dear Mr. Tumulty: I was out on the farm in Virginia Saturday, and am just now back at the office. I find your kind note, informing me that the President could see me at 2:30 on Thursday, December 6. It happens that Thursday is the one day of all next week on which I have a series of rather imperative engagements here of long standing, beginning in the morning and running till night. I had personally arranged (as a member of the program committee of the Economic Club) for Secretary Houston's address that night here, which we are regarding as something very important. I want to be here if possible. I am well aware that the opening of Congress will make the President extremely busy the first of next week. I could be in Washington at any time this week and on any day next week excepting Thursday the 6th. I could, of course, break engagements and be in Washington on that day if there should be no other time that you could arrange. I so fully understand the great pressure upon the President's time that I should be the very last to try to break in upon his needlessly. I will leave it entirely to you, therefore, to arrange as seems best at your end. With thanks, Sincerely yours, Albert Shaw. [*2:30 Wed 5th noted C. L. S.*] Hon. Joseph P. Tumulty The White House [*90*] [*60650*]The Secretary begs to lay the attached before the President, and to ask his wish in the matter. 28th November. [*90*] [*Wrote Dr. Shaw 11/28/17*] 60651THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW - EDITOR [*90*] [*ACK'D DEC 8 1917*] November 30, 1917 Dear Mr. Forster: You will remember our conversation about the index to the volume of "President Wilson's State Papers and Addresses". Mr. Howard Florance, of our editorial staff, who prepared the index, is sending you proof sheets in order that you may note upon them any changes, corrections, or amplifications that you would deem desirable. I think we are likely to extend the volumes almost immediately, to include the President's address before the American Federation of Labor, at Buffalo, and especially the message that he will deliver to Congress early next week. Will you and Mr. Tumulty kindly indicate what Presidential utterances since the last one in the volume (which was September 19) ought to be included? We are not, of course, making a book that is exhaustive, because the President, on one matter or another, is obliged to issue orders and proclamations constantly. Yet there are some that ought to be included. I am sure that you could readily ascertain. Obviously the address at Buffalo of November 12 is very important. Is the Liberty Loan proclamation of October 12 something of the President's own work, or is it an official State Department document that he signed? Also, is the announcement of October 20, fixing the Day of Prayer for October 28, something that it would be thought desirable to include? 60652Mr. Forster -2- We had not included, I believe, the earlier Thanksgiving proclamations, since those always come every November as a matter of course. This year's proclamation, however, issued by the President on November 7, seems to have an exceptional importance growing out of the war. Would you think it desirable to put it in the book? We have never seen a copy of the talk that the President made on October 8, to the "newly formed League for National Unity." Allusions to it were made in the newspapers. Is it a speech that should go with the President's important utterances? We have the newspaper copy of the message of felicitation (given out on October 17) on Russia and the United States, in reply to a message from Madame Breshkovskaya. This, though brief, seems to me an excellent and typical utterance on the President's part, and perhaps should be included. We will go carefully through our file of the Official Bulletin, to see if there are other things that appear to us desirable, and meanwhile perhaps you will be good enough to give us suggestions. Faithfully yours, Albert Shaw. Mr. Rudolph Forster The White House Washington, D.C. 60653THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE–NEW YORK ALBERT SHAW – EDITOR [*THE WHITE HOUSE DEC 2 1917 RECEIVED*] [*90*] [*7*] November 30, 1917 Dear Mr. Tumulty: Thank you very much for your note fixing 2:30 Wednesday afternoon, December 5, as a time when the President will be able to see me. This will be a very convenient date for me. Sincerely yours, Albert Shaw Hon. Joseph P. Tumulty The White House Washington, D.C. P.S. I am writing to Rudolph Forster regarding add'l matter for new edition of the President's addresses. 60654Library of Congress Office of the Chief Clerk WASHINGTON December 5 1917 [*ACK'd DEC 6 1917 ANA*] Dear Mr. Forster: The index to the address delivered by the President to the American Federation of Labor has been prepared by Miss Mary MacNair, of the Catalogue Division. I enclose two copies. Will you look them over and let me know if we have fully met your wishes? Would you care for more detail? We should be delighted to make another attempt, if you wish something more minute than this. Very sincerely yours Ann R Boyd Chief Clerk Mr. Rudolph Forster Executive Clerk The White House 60655 [*89*] INDEX A Acceptance speech (renomination), 302 Agricultural credits (See Farm credits) Agriculture, Department of: Its importance to the world, 103 Agriculture, Future development of, 328 Alaska: Railways and development planned, 45 Alaska: Territorial government urged, 45 America first, 109, 175 America, Spirit of, 115, 122, 127, 211, 291 America, Without hampering ambitions as world power, 111, 134, 168, 199, 313 American Electric Railway Association, Address before, 97 American system of government, Balance of, 324; a lawyer's government, 324 Americans, Disloyal ("hyphenated"), 110, 132, 150, 293, 310 Americans, foreign born, Addresses 4 to, 114, 290 Americans, Undivided allegiance of, 110, 115, 125, 132 Anti-trust legislation (See Sherman Anti-trust Law and Trusts and Monopolies) Arbitration, Failure of, in railroad eight-hour demand, 296 Arbitration law, Suggested changes in, 301; recommendation renewed, 339 Arbitration treaties; Ratification urged, 38 Army (See Defense, National) Associated Press, Address before members of, 108 Austria-Hungary: Diplomatic relations interrupted, but peace maintained, 381 Austria-Hungary, Diplomatic correspondence with (See War) Aviation (See Defense, National) B Banking: Restrictions upon national banks in international trade, 279, 289 Banking legislation (See Currency, also Federal Reserve Bank System) Benedict, Pope, Peace proposal of, and reply, 421 Business Not to be penalized because big and strong, 102 Past the era of suspicion and into era of confidence, 100 Relation of Government to, 103 Some needs of, 12 Spirit of American business toward regulation, 93, 97 (See also Trusts, Trade Commission, Corporations, Directors, Sherman Anti-Trust Law) C Central America (See Latin-America) Children, Co-operation of, in Red Cross work proposed, 427 "Citizenry trained and accustomed to arms," 78 Citizenship address at Philadelphia, 114; at Washington, 290 Commerce International exclusive economic leagues condemned, 424 Limitations imposed by banking restrictions, 279, 289, 329 New fields of foreign commerce, 69, 106, 279, 328 Proposal to remove restrictions on combinations of exporters, 316, 333, 341 Commerce, Bureau of Foreign and Domestic, Usefulness of, 104, 316, 330 Confederate Veterans, Addresses before, 14, 408 Congress: Members and problems of early days, 27, 31 Congress, Messages to First Annual, 37 Second Annual, 67 Third Annual, 133 Fourth Annual, 337 Currency revision, 10 German submarine controversy, 262, 358, 363, 372 Merchant ships, Arming of, 363 Mexico, 18, 59 Panama Canal tolls, 57 Railroad strike threat, 294 Revenue, 64 Tariff, 5 Trusts and Monopolies, 47 War with Germany, 372 431 [*60656*]INDEX Congress, Record of, during first Wilson administration, 304 Congress Hall, Philadelphia, Address at rededication of, 27 Conservation legislation, 70, 86 Corporations Limitations proposed on voting rights of controlling stockholders, 54 Responsibility of individual officers and directors, 53 Responsibility to the public, 101 Counsel and judgment of various kinds, 284 Cuba, Honor in our withdrawal from, 199 Currency legislation urged upon Congress, 10, 39; benefits of new law, 306 D Daughters of American Revolution, Address to, 122 Defense, National Army expansion for war recommended upon basis of universal service, 376 Army insufficient for routine work of peace, 186, 194, 204 Army: Selective Draft Act, 395 Army: Selective Draft men, Message to, 424 Aviation development in Navy, 185 Coast defenses, Efficiency of, 179; Lack of, 169 Industrial mobilization and expert citizen advice, 152, 206 Military training (universal, voluntary) recommended, 78, 129, 140, 186 Military training, advantages of, 161, 164, 178, 192, 213 Military training combined with vocational, 160, 164 National Defense first discussed in message, 76 National Guard commended and changes suggested, 130, 161, 171, 187 Navy enlargement urged, 130, 140, 180 Navy: Fourth in quantity, second to none in quality, 170, 180, 184 Navy: Progress of enlargement plans, 184 Navy that ranks first in the world, 205 Navy: Vast coast guarding task, 203 Navy: What kind of ships shall we build? 79 Preparedness not a money-making agitation, 179 Preparedness program outlined, 126; urged upon Congress, 139 Preparedness, Recognition of pressing nature of, 158, 167, 208 Sanitary lesson of Spanish War, 204 Universal military service recommended, 376 Democratic party, Praise of, 82, 303 Diplomatic notes to belligerent governments, 215-270 Directors, Individual responsibility of, 53 Directors: Interlocking boards condemned, 50 E Economy in Government expenditures urged, 4 Education, Vocational and industrial, legislation recommended, 342 Eight-hour law urged for railway operators, 294 Elections, Legislation recommended to regulate expenditure of money in, 341 Elections (State) of 1914, Interpretation of, 89 Embargo proclamations, 408 Employers' liability law for railway employees urged, 46 Exports, Regulation of, 403 F Farm credits legislation urged upon Congress, 40 Farmer, Legislation benefitting, 306 Farmer, Price-fixing for benefit of, 401, 424 Farmers, upon whom rests the fate of nations, 390 Federal Reserve Bank system created, 10 Federal Reserve Bank system, Good results from, 83, 284, 306 Federal Trade Commission (See Trade Commission) Financial: Address at Pan American Financial Congress, 119 Flag Day address, 411 Food regulation program, 399 France, Greeting to, on Bastile Day, 419 G German Government, Indictment of, 407, 412, 422 German people, No quarrel with, 362, 378, 382 German scheme for world conquest, 414 432 [*60657*]INDEX Germany Diplomatic correspondence with (See War) Diplomatic relations severed, 358 War declaration advised, 372 War proclaimed with, 383 Gettysburg reunion, Address at, 14 Grain Dealer's Association, Address before, 327 Grand Army of the Republic, Address before veterans, 14 Great Britain, Diplomatic correspondence with (See War) H Hoover, Herbert, appointed Food Administrator, 401 I Immigration bill veto: first, 94; second, 356 Inaugural address: first, 1; second, 368 Interlocking directorates condemned, 50 International law: How it was built up, 374 Interstate Commerce Commission, enlargement recommended, 299, 339 Ishii, Viscount, Welcome to, 419 J Jackson Day address at Indianapolis, 80 Japan's special Ambassador, Welcome to, 419 K Kansas as a typical American community, 193 L Labor Appointment of commission to adjust disputes, 427 Eight-hour day advocated for railway operators, 294 Federal employment bureau suggested, 87 Labor pledges in speech accepting renomination, 317 Labor record of first Wilson administration 307 Latin-America, Future commercial relations with, 32, 119, 136, 335 League to Enforce Peace, Address before, 271 (See also Peace League) Lincoln, Address on, at log-cabin birthplace, 319 Lind, John, sent to Mexico as personal representative, 20 Lobby: Statement denouncing insidious influence on tariff legislation, 9 M Manhattan Club, New York, Address at, 126 Merchant marine (See Shipping) Mexico Aid and friendship for, but not coercion, 136 American friendship for, 18 Americans urged to leave, 25 Arms-export prohibition (by Taft) continued, 25; removed, 55 Arms, exports of, forbidden except to Carranza faction, 56 Congress asked for authority to use armed force against Huerta (Tampico incident), 62 Diplomatic note from Mexico, 22 How to help Mexico, 282 Huerta the unspeakable, 312 Huerta's claim of legal government, 23 Huerta's elimination demanded, 21 Intervention or war with Mexico, 276 Mexican sovereignty to be respected, 20 Mexicans entitled to settle domestic affairs in their own way, 62, 91, 312 Pershing armed expedition, Reasons for sending, 311 Special message to Congress, 18 Special message to Congress on the Tampico incident, 59 "Watchful waiting" policy announced, 39 Middlemen should forego unusual profits during war, 390 Militarism, A definition of, 159 Mine labor conditions, Improvement of, 46 Monopolies (See Trusts and monopolies) Monroe Doctrine, 198; should be extended to the whole world, 355 N National Army selected, 395 National Army, Message to, 426 National defense (See Defense) National Guard (See Defense, National) Navy (See Defense, National) Neutrals, Regulation of exports to, 403 New York, New Haven & Hartford Railroad dissolution suit ordered, 63 News, True and false, 112 433 [*60658*]INDEX Newspaper editorials' lack of influence, 92, 193, 201 Non-partisanship of modern American politics, 82, 90 P Panama Canal tolls: Message to Congress urging repeal of free- tolls provision for American ships, 57 Pan-American Financial Congress, Address at, 119 Party, Government by, 84, 90 Parties, Political (See Democratic, Republican, Politics, etc.) Peace An age of peace (ante-bellum statement), 37 Essential terms of world harmony, 348, 370 League of nations to avert future wars, 315, 350, 355 League to enforce peace, United States willing to become a member of, 274 Peace, the desire of democracies, 137 Peace without victory, 352 Right is more precious than peace, 382 See also Peace entries under War Peace, League to Enforce, Address before, 271 Philippines: America as trustee for, 199 Greater measure of self-government for, 71, 145 Natives granted control of upper chamber, 44 Pope Benedict's peace proposals, Reply to, 421 Poland must be united, independent, autonomous, 353 Political asylum for foreign refuges should not be restricted, 95 Politics: A definition of, 28 Independent voters' supermacy, 90 Non-partisanship of modern Americans, 82 Porto Rico, Changes in government urged, 43, 145, 341 "Preparedness" (See Defense, National) Presidential primary law urged upon Congress, 43 Press Club, New York, Address before, 276 Price-fixing as part of food regulation program, 401, 424 Progressive Party principles carried out by Democrats, 308 "Proud, Too, to fight." 117 R Railroads Capital supervision, 51 New York, New Haven & Hartford Railroad sued for dissolution of mergers, 63 Presidential control proposed, over property and men, in case of military necessity, 301, 339 Problem serious and pressing, 154 Special message to Congress to avert threatened strike, 294: reference to railroad legislation in annual message, 337 Systems must be developed and coordinated for national use, 317 Withdrawal of recommendation that Congress approve increase of freight rates to meet expense of eight-hour day, 339 Railroad Business Association, Address before, 156 Red Cross, Address at dedication of Washington home, 392 Red Cross, Co-operation by school children proposed, 427 Reelection, Thinking about, renders reelection difficult, 30 Renomination, Speech accepting, 302 Republican party, Criticism of, 81, 304, 309 Resources, Natural, Development of, 45, 317 Revenue: Further taxation urged, to cover "preparedness" expenditures, 146 Revenue: Special message urging additional revenue to meet decrease in customs, 64 Rural credits (See Farm credits) Russia, always democratic at heart, 379 Russia, Message to, 405 Russian National Council, Message to, 420 S Safety at sea: Ratification of international convention urged, 73 Salesmanship Congress, Addresses at, 279 Second Term (See Reelection) Senate, Address to, on essential terms of peace, 348 Sherman Anti-trust law retarding foreign commerce, 106 Sherman Anti-trust law should be supplemented, 42, 47, 52 Shipping, Lack of, 70 Shipping legislation urged upon Congress, 72 Shipping bill as remedy for extortionate ocean freight rates, 85 434 [*60659*]INDEX Shipping bill as remedy for dwindling merchant marine, 143, 334 South America (See Latin-America) Southern Commercial Congress, Address before, 32 Spanish War sanitary experience, 204 T Tariff, protective (Republican), Evils of, 7, 304 Tariff revision urged upon Congress, 5; its tendency to encourage foreign trade, 305 Tariff Commission Conversion in favor of, 158 Bipartisan membership, 288 What it is expected to accomplish, 316, 332 Taxation, to help sustain war costs, 377 Trade (See Commerce) Trade Commission How it has relieved business, 306, 331 Power to investigate tariff questions, 89 Recommended to Congress, 52 Why it was established, 28, 315 Trusts and monopolies, Message to Congress on, 47 U United States (See America and Americans; also under War) United States Chamber of Commerce, Address before, 103 Universal military training and service (See Defense, National) V Veto of Immigration bill: first, 94, second, 356 W War Alliances must give way to common agreement, 273 America alone at peace and keeping its head, 93, 133, 181, 183 America as a belligerent, 376 America may become involved, 172, 210 America more indispensable at peace than to either side if at war, 198 America seeks no indemnities, no material compensation, 381, 406 America should participate without interfering with supplies for nations already in field, 377 America's interest in European peace, 349 America's object in entering war, 406 America's part to supply food, ships, raw and manufactured materials, 388 Americans' desire that President should "keep us out of war," 173, 189, 201 Ancona case, 254 Arabic case, 253 Armaments, Limitation of, 354, 371 Armed neutrality suggested, 365; declared impracticable, 375 Austria, Note to, regarding Ancona sinking, 254 Between governments, never between peoples, 177 British blockade, Notes relating to, 225, 227, 229 British blockade declared illegal, 234; ineffective, illegal and indefensible, 237 Cushing case, 239, 244 Declaration of London, Suggested observance of, 215 Diplomatic correspondence with belligerents, 215-270 Falaba case, 239, 245 Flag: Unwarranted use of American emblem by British ships, 223 German submarine pledges, 253, 268 Germans in the United States alien enemy regulations, 383 Germany, Diplomatic relations severed, 358 Germany, Proclamation of state of war with, 383 Germany, Refusal to discuss British-American relations with, 270 Germany, Threat to sever diplomatic relations with, 262 Germany, War declaration advised, 372 Gulflight case, 239, 244 Lusitania notes to Germany, 239 244, 249 Merchant ships, Arming of, 265, 375 Merchant ships, Congress asked for authority to arm, 363 Nation, not an army, trained for war, 397 Neutral nation, Difficulties of a, 196, 310, 315 Neutrality appeal to Americans, 217 Neutrality no longer feasible or desirable, 378 Objects for which it is waged, Plea for precise statement of, 347 435 [*60660*]INDEX Objects for which it is waged, A statement of, 422 Objects of America in entertaining war, 406 Peace address (while a neutral) to Senate, on essential terms, 348 Peace: Advantage to Germany of premature peace, 416 Peace agreement must be guaranteed by German people, 424 Peace must be guaranteed by an international force, 351 Peace proposal (while a neutral) to belligerent governments, 343 Peace terms, 348, 407 "Peace without victory," 352 Profits from war industries should be small, 391 Property rights can be vindicated by damage claims, rights of humanity cannot, 310 Right of Americans to travel on the seas, 196 (See also German and submarine note references) Right of Americans to trade with the world, 197 (See also British blockade references) Seas, Freedom of, 353, 371 Submarine, American notes protesting against, 220, 239, 244, 249, 257, 269 Submarine and blockade compromise proposal of United States, 226 Submarines "manifestly cannot be used against merchantmen," 241; "possible and practicable to conduct such submarine operations," 251; "use of submarines for destruction of commerce utterly incompatible with principles of humanity," 262 Submarine war-zone protest to Germany, 220 Submarine war against merchant ships renewed by Germany, 358 Sussex case (note to Germany), 257; (address to Congress), 262 Territorial conquests and punitive damages condemned, 407, 424 United States (See War: America) Visit-and-search principles, 221 Western Hemisphere must be kept out, 168 Washington, George, Brief characterization of, 29 "Watchful waiting" Mexican policy announced, 39 Water-power development urged, 70 Wheat price determined, 424 Workmen's compensation (See Employers' liability) "World must be made safe for democracy," 381 Wilson, Woodrow, Biographical sketch of, xi Woman-suffrage convention, Address at, 323 436 [*60661*]Advancement, American 4 b Alsace-Lorraine 5 a America 6 b see also United States American, Test of an 7 d American advancement 4 b American spirit 6 b Anarchy 8 a Asia-Minor Control by Germany 5 a Austria-Hungary 5 e Bagdad 5 a Balkan States Control by Germany 5 a Belgium 5 a Berlin-Bagdad railway 4-5 Capitalists 7 a Col. House's mission 6 a-b Common counsel 3 a, 8 a-b Competition, Industrial 8 c Competition controlled by German government 4 b-e Conditions of labor 6 c Counsel of nation 3 a Critical time in history 3 b Democracy 7 d, 8 a Destiny of mankind 3 c Domination by Germany 5 Energies of the nation 3 a Europe, Map of 5 a France, Northern 5 a Freedom, Principle of 3 c Germany Berlin-Bagdad railway 4-7 Control of Asia Minor 5 a Control of Austria-Hungary 5 a Control of Balkan States 5 a Control of Turkey 5 a Domination of labor and industry 4 d German government 4 c, 5 b, 5 d Industrial growth 4 Intellectual achievements 3 d in Germany 4 a Pan-Germans 5 b, 5 d Place in the sun 4 a War started by 3 c World domination 5 Gompers, Samuel 6 c Government control of industry, German 4 b-c Hamburg 5 a History, Verdict of 3 d House, Edward W. 6 a Industrial competition 8 c Industrial growth of Germany 4 Issue between power and freedom 3 c Justice, Processes of 8 a Labor, Competition of 8 c Labor, Conditions of 6 c Labor, Courses of 6 d Labor and capital 7 Labor must be free 6 Law taken into one's own hands 8 b Lawlessness 8 a Made in Germany 4 a Mankind, Destiny of 3 c Map of Europe 5 a Markets of the world 4 a Minds of the nation, Drawing together 3 a Mob spirit 7 c-d Must obey common counsel 8 a-b Nation, Energies of 3 a Nation, Minds of 3 a National conception, Nobility of 3 b Nationality, Spirit of 5 c No sympathy with mob spirit 7 c-d Pacifists 5 d Pan-Germans 5 b, 5 d Peace 6 a Peace rumors 5 Peace talk, German 5 a Place in the sun 4 a Political power of the world 5 Power, Principle of 3 c Principle of freedom 3 c Principle of power 3 c Processes of justice 8 a Russia 5 d Settlement hard to avoid 7 a Spirit of nationality 5 c Test of an American 7 d Turkey Control by Germany 5 a United States 8 d see also America Verdict of history 3 d War started by Germany 3 c War - way to get peace 6 a World conception, Nobility of 1 b World domination 5 --------------------------------- For convenience of reference the pages have been divided into quarters, indicated by the letters a, b, c, d. [*60662*]ADDRESS OF PRESIDENT WILSON TO THE AMERICAN FEDERATION OF LABOR CONVENTION BUFFALO, N. Y., NOVEMBER 12, 1917 WASHINGTON 1917 [*60663*]MR. PRESIDENT, DELEGATES OF THE AMERICAN FEDERATION OF LABOR, LADIES AND GENTELMEN: I esteem it a great privilege and a real honor to be thus admitted to your public counsels. When your executive committee paid me the compliment of inviting me here I gladly accepted the invitation because it seems to me that this, above all other times in our history, is the time for common counsel, for the drawing together not only of the energies but of the minds of the Nation. I thought that it was a welcome opportunity for disclosing to you some of the thoughts that have been gathering in my mind during these last momentous months. CRITICAL TIME IN HISTORY. I am introduced to you as the President of the United States, and yet I would be pleased if you would put the thought of the office into the background and regard me as one of your fellow citizens who was come here to speak, not the words authority, but the words of counsel; the words which men should speak to one another who wish to be frank in a moment more critical perhaps than the history of the world has ever yet known; a moment when it is every man's duty to forget himself, to forget his own interest, to fill himself with the nobility of a great national and world conception, and act upon a new platform elevated above the ordinary affairs of life and lifted to where men have views of the long destiny of mankind. I think that in order to realize just what this moment of counsel is it is very desirable that we should remind ourselves just how this war came about and just what it is for. You can explain most wars very simply, but the explanation of this is not so simple. Its roots run deep into all the obscure soils of history, and in my view this is the last decisive issue between the old principle of power and the new principle of freedom WAR STARTED BY GERMANY. The war was started by Germany. Her authorities deny that they started it, but I am willing to let the statement I have just made await the verdict of history. And the thing that needs to be explained is why Germany started the war. Remember what the position of Germany in the world was -- as enviable a position as any nation has ever occupied. The whole world stood at admiration of her wonderful intellectual and material achievements. All the intellectual men of the world went to school to her. As a university man I have been surrounded by men trained in Germany, men who had resorted to Germany because nowhere else could they get such thorough and searching training, particularly in the principles of science and the principles that underlie modern material achievement 24618-17 (3) [*60664*]4 Her men of science had made her industries perhaps the most competent industries of the world, and the label "Made in Germany" was a guarantee of good workmanship and sound material. She had access to all the markets and the world, and every other nation who traded in those markets feared Germany because of her effective and almost irresistible competition. She had a "place in the sun." GERMANY'S INDUSTRIAL GROWTH. Why was she not satisfied? What more did she want? There was nothing in the world of peace that she did not already have an have in abundance. We boast of the extraordinary pace of American advancement. We show with pride the statistics of the increase of our industries and of the population of our cities. Well, those statistics did not match the recent statistics of Germany. Her old cities took on youth and grew faster than any American cities ever grew. her old industries opened their eyes and saw a new world and went out for its conquest. And yet the authorities of Germany were not satisfied. You have one part of the answer to the question why she was not satisfied in her methods of competition. There is no important industry in Germany upon which the Government has not laid its hands, to direct it and, when necessity arose, control it; and you have only to ask any man whom you meet who is familiar with the conditions that prevailed before the war in the matter of national competition to find out the methods of competition which the German manufacturers and exporters used under the patronage and support of the Government of Germany. You will find that they were the same sort of competition that we have tried to prevent by law within our own borders. If they could not sell their goods cheaper than we could sell ours at a profit to themselves they could get a subsidy from the Government which made it possible to sell them cheaper anyhow, and the conditions of competition were thus controlled in large measure by the German Government itself. BERLIN-BAGHDAD RAILWAY. But that did not satisfy the German Government. All the while there was lying behind its thought and its dreams of the future a political control which would enable it in the long run to dominate the labor and the industry of the world. They were not content with success by superior achievement; they wanted success by authority. I suppose very few of you have thought much about the Berlin-to- Bagdad Railway. The Berlin-Bagdad Railway was constructed in order to run the threat of force down the flank of the industrial undertakings of half a dozen other countries; so that when German competition came in it would not be resisted too far, because there was always the possibility of getting German armies into the heart of that country quick than any other armies could get there. 5 Look at the map of Europe now? Germany is thrusting upon us again and again in the discussion of peace talks,--about what? Talks about Belgium; talks about norther France; talks about Alsace-Lorraine. Well those are deeply interesting subjects to us and to them, but they are not the heart of the matter. Take the map and look at it. Germany has absolute control of Austria-Hungary, practical control of the Balkan States, control of Turkey, control of Asia Minor. I saw a map in which the whole thing was printed in appropriate black the other day, and the black stretched all the way from Hamburg to Baghdad--the bulk of German power inserted into the heart of the world. If she can keep that, she has kept all that her dreams contemplated when the war began. If she can keep that, her power can disturb the world as long as she keeps it, always provided, for I feel bound to put this proviso in--always provided the present influence that control the German Government continue to control it. I believe that the spirit of freedom can get into the hearts of Germans and find as fine a welcome there as it can find in any other hearts, but the spirit of freedom does not suit the plans of the Pan-Germans. Power can not be used with concentrated force against the free peoples if it is used by free people. PEACE RUMORS. You know how many intimations come to use from one of the central powers that it is more anxious for peace than the chief central power, and you know that it means that the people in that central power known that if the war ends as it stands they will in effect themselves be vassals of Germany, notwithstanding that their populations are compounded of all the peoples of that part of the world, and notwithstanding the fact that they do not with in their pride and proper spirit of nationality to be so absorbed and dominated. Germany is determined that the political power of the world shall belong to her. There have been such ambitions before. They have been in part realized, but never before have those ambitions been based upon so exact and precise and scientific a plan of domination. May I not say that it is amazing to me that any group of persons should be so ill-informed as to suppose, as some groups in Russia apparently suppose, that any reforms planned in the interest of the people can live in the presence of a Germany powerful enough to undermine or overthrow them by intrigue or force! Any body of free men that compounds with the present German Government is compounding for its own destruction. But that is not the whole of the story. Any man in America or anywhere else that supposes that the free industry and enterprise of the world can continue if the Pan-German plan is achieve and German power fastened upon the world is a fatuous as the dreamers in Russia. What I am opposed to is not the feeling of the pacifists, but their stupidity. My heart is 60665 6 with them, but my mind has a contempt for them. I want peace, but I know how to get it, and they do not. COL. HOUSE'S MISSION. You will notice that I sent a friend of mine, Col. House, to Europe, who is as great a lover of peace as any man in the world; but I didn't send him on a peace mission yet. I sent him to take part in a conference as to how the war was to be won, and he knows, as I know, that that is the way to get peace, if you want it for more than a few minutes. All of this is a preface to the conference that I have referred to with regard to what we are going to do. If we are true friends of freedom, our own or anybody else's, we will see that the power of this country and the productivity of this country is raised to its absolute maximum, and that absolutely nobody is allowed to stand in the way of it. When I say that nobody is allowed to stand in the way I do not mean that they shall be prevented by the power of the Government but by the power of the American spirit. Our duty, if we are to do this great thing and show America to be what we believe her to be--the greatest hope and energy of the world--is to stand together night and day until the job is finished. LABOR MUST BE FREE. While we are fighting for freedom we must see, among other things, that labor is free; and that means a number of interesting things. It means not only that we must do what we have declared our purpose to do, see that the conditions of labor are not rendered more onerous by the war, but also that we shall see to it that the instrumentalities by which the conditions of labor are improved are not blocked or checked. That we must do. That has been the matter about which I have taken pleasure in conferring from time to time with your president, Mr. Gompers; and if I may be permitted to do so, I want to express my admiration of his patriotic courage, his large vision, and his statesmanlike sense of what has to be done. I like to lay my mind alongside of a mind that knows how to pull in harness. The horses that kick over the traces will have to be put in corral. Now, to stand together means that nobody must interrupt the processes of our energy if the interruption can possibly be avoided without the absolute invasion of freedom. To put it concretely, that means this: Nobody has a right to stop the processes of labor until all the methods of conciliation and settlement have been exhausted. And I might as well say right here that I am not talking to you alone. You sometimes stop the courses of labor, but there are others who do the same, and I believe I am speaking from my own experience not only, but from the experience of others when I say 7 that you are reasonable in a larger number of cases than the capitalists. I am not saying these things to them personally yet, because I have not had a chance, but they have to be said, not in any spirit of criticism, but in order to clear the atmosphere and come down to business. Everybody on both sides has now got to transact business, and a settlement is never impossible when both sides want to do the square and right thing. SETTLEMENT HARD TO AVOID. Moreover, a settlement is always hard to avoid when the parties can be brought face to face. I can differ from a man much more radically when he is not in the room when I can when he is in the room, because then the awkward thing is he can come back at me and answer what I say. It is always dangerous for a man to have the floor entirely to himself. Therefore, we must insist in every instance that the parties come into each other's presence and there discuss the issues between them, and not separately in places which have no communication with each other. I always like to remind myself of a delightful saying of an Englishman of the past generation, Charles Lamb. He stuttered a little bit, and once when he was with a group of friends he spoke very harshly of some man who was not present. One of his friends said: "Why, Charles I didn't know that you knew so and so." "O-o-oh," he said. "I-I d-d-don't; I-I can't h-h-hate a m--m-man I-I know," There is a great deal of human nature, of very pleasant human nature, in the saying. It is hard to hate a many you know. I may admit, parenthetically, that there are some politicians whose methods I do not at all believe in, but they are jolly good fellows, and if they only would not talk the wrong kind of politics to me, I would love to be with them. NO SYMPATHY IWTH MOB SPIRIT. So it is all along the line, in serious matters and things less serious. We are all of the same clay and spirit, and we can get together if we desire to get together. Therefore, my counsel to you is this: Let us show ourselves Americans by showing that we do not want to go off in separate camps or groups by ourselves, but that we want to cooperate with all other classes and all other groups in the common enterprise which is to release the spirits of the world from bondage. I would be willing to set that up as the final test of an American. That is the meaning of democracy. I have been very much distressed, my fellow citizens, by some of the things that have happened recently. The mob spirit is displaying itself here and there in this country. I have no sympathy with what some men are saying, but I have no sympathy with the man who take their punishment into their own hands; and I want to say to every man who does join such a mob that I do not recognize him as worth of the free institutions of the United States. There are some organizations in this 606668 country whose objective is anarchy and the destruction of law, but I would not meet their efforts by making myself partner in destroying the law. I despise and hate their purposes as much as any man, but I respect the ancient processes of justice; and I would be too proud not to see them done justice, however wrong they are. MUST OBEY COMMON COUNSEL. So I want to utter my earnest protest against any manifestation of the spirit of lawlessness anywhere or in any cause. Why, gentlemen, look what it means. We claim to be the greatest democratic people in the world, and democracy means first of all act we can govern ourselves. If our men have not self-control, then they are not capable of that great thing which we can democratic government. A man who takes the law into his own hands is not the right man to cooperate in any formation or development of law and institutions, and some of the processes by which the struggle between capital and labor is carried on are processes that come very near to taking the law into your own hands. I do not mean for a m omen to compare them with what I have just been speaking of, but I want you to see that they are mere gradations in this manifestation of the unwillingness to cooperate, and that the fundamental lesson of the whole situation is that we must not only take common counsel, but that we must yield to and obey common counsel. Not all of the instrumentalities for this are at hand. I am hopeful that in the very near future new instrumentalities may be organized by which we can see to it that various things that are now going on ought not to go on. There are various processes of the dilution of labor and the unnecessary substitution of labor and the bidding in distant markets and unfairly upsetting the whole competition of labor which ought not to go on. I mean now on the part of employers, and we must interject some instrumentality of cooperation by which the fair thing will be done all around. i am hopeful that some such instrumentalities may be devised, but whether they are or not, we must use those that we are and upon every occasion where it is necessary have such an instrumentality originated upon that occasion. So, my fellow citizens, the reason I came away from Washington is that I sometimes get lonely down here. So many people come to Washington who know things that are not so, and so few people who know anything about what the people of the United States are thinking about. i have to come away and get reminded of the rest of the country. I have to come away and get reminded of the rest of the country. I have to come away and talk to men who are up against the real thing, and say to them, "I am with you if you are with me." And the only test of being with me is not to think about me personally at all, but merely to think of me as the expression of the time being of the power and dignity and hope of the United States. THE AMERICAN REVIEW OF REVIEWS (2 stamped globes around words) 30 IRVING PLACE-NEW YORK ---------------------------------- ALBERT SHAW-EDITOR AOK'D DEC 28 1917 C.T.M December 26, 1917 [**90**] Dear Mr. Tumulty: I am sending two copies in advance of the "Review of Reviews" for January. Since I have commented at length upon the President's position in the war, I would appreciate it if you would be good enough to call his attention to the editorial pages. A few days ago I asked our office to send to the President the first set that came from the presses of our ten volumes of Presidents' Messages and Addresses. As I explained to you, we have prepared this full set, but we are also having President Wilson's singe volume bound differently and using it separately, and we are adding his Buffalo speech and his Message to Congress of the present month to a new edition, and when that is ready I will see that you have a supply. Meanwhile, I should be very glad to send the ten volume set to your personal address, and have asked the office to see that they are sent. With best wishes for the season and the new year. Sincerely yours, Albert Shaw Mr. Joseph P. Tumulty, Secretary to the President Washington, D.C. 60667THE WHITE HOUSE JAN 28 1918 RECEIVED THE AMERICAN REVIEW OF REVIEWS (2 stamped globes around words) 30 IRVING PLACE-NEW YORK ---------------------------------- ALBERT SHAW-EDITOR (Handwritten: 90. Circled) ACK'D JAN 29 1917 C.L.S January 25, 1918. (Handwritten: Dear) Dear Mr. President: I take the liberty to send you an advance copy or two of the February "Review of Reviews". I know you have not much time for magazines, but Mr. Frank H. Simonds has written for us this month so uncommonly good a review and forecast of the military situation in Europe that I feel justified in calling your personal attention to it. As an incidental matter, I might say that Mr. Simonds resigned from the New York Tribune a week or more ago. He has approved very strongly of your statements, as indicated in this article. Mr. Simonds and I do not perfectly agree regarding the relationship of the United States to the Allies. He is a better military man than I, but I think I am a better political economist. He has been in sympathy with the idea of getting American soldiers in the tranches in Europe, and I, as you know, have been frankly opposed to the plan from the start. I know that you will not misunderstand me when I say that I am wholly of the opinion that many of the defects we have -1- 60668President Woodrow Wilson -2- January 25, 1918. encountered, and about which complaint has been made, have been the inevitable incidents of our too generous yielding to the urgent demands of France and England. Some of the men who are now criticizing the War Department most harshly are themselves men who preached the doctrine of making large armies with unlimited speed. Our function in this war has been navies, ships, food and more food, supplies of all kinds, -- everything except armies in Europe. I am sure that you have done your best to work along a policy that it was difficult to adjust on account of the pressure of foreign governments and the sweeping trends of American public opinion. I feel strongly that the draft ought to have been carried out along the line of your proclamation of the draft law. I think that the point of view of General Crowder has been diametrically opposed all along to your point of view, and it seems to me most unfortunate that he and his little group should have prepared the original draft rules in a way that seemed flatly at every point to contradict your explanation of the spirit and meaning of the Selective Draft. I have said this very frankly in my editorial comments this month. -2- 60669President Woodrow Wilson -3- January 25, 1918. I do not believe that you and Secretary Baker have quite realized the defects of the hospital and sanitary services in some of the camps. There are things that have been going on in the army bureaus that come to some of us on the outside that could hardly by any chance reach the ears of the Secretary of War, much less reach your ears, because you have no time for details. I think that Secretary Baker ought to be a little more brutal, and that he ought to apply the scourge in the temple, rather than act as apologist. But this was only intended to send you Mr. Simonds' article and also that of John R. Commons, who deals with reconstruction after the war. With great regards, Faithfully yours, (Handwritten: Albert Shaw. Underlined) Honorable Woodrow Wilson, The White House, Washington, D.C. 60670[*[90]*] 29 January, 1918 My dear Shaw: Thank you for your letter of January twenty-fifth and for the advance copy of the February Review of Reviews. I shall read Mr. Simonds' article with a great deal of interest. I wish I had time for more than this perfunctory line, but you will understand I am sure. May I not thank you, too, for your own frank views? Cordially and sincerely yours, Dr. Albert Shaw, Review of Reviews, New York City 60671[*[90]*] The American Review of Reviews 30 Irving Place, New York Albert Shaw - Editor March 2, 1918 [*Ack'd Mar 6 1918 W.F.J.*] Dear Mr. Tumulty: Dr. Shaw has mailed to you to-day the first copy of a revised edition of "President Wilson's Addresses and State Papers". Fifty pages have been added, covering the period from September 15, 1917, to date. This early copy is for the President's desk, if he still finds the volume useful. Other copies will be sent to you next week. Very truly yours, Howard Florance Hon. Joseph P. Tumulty The White House Washington, D.C. [*Hold for *] 60672THE AMERICAN REVIEW OF REVIEWS (2 stamped globes around words) 30 IRVING PLACE-NEW YORK ---------------------------------- ALBERT SHAW-EDITOR (Handwritten: 90. Circled) March 7, 1918 ACK'D MAR 13 1918 W.F.J. Dear Mr. Tumulty: We have now plenty of copies of the up-to-date edition of the President's State Papers and Addresses, and I am asking the office to send you over a dozen copies which it may be convenient to have available. We shall be very glad to send you more copies if you will let me know if you have any use for them. Sincerely yours, (Handwritten: Albert Shaw. Underlined) Hon. Joseph P. Tumulty, Secretary to the President, Washington, D.C. (Handwritten: Hold for -) 60673HURLEY, Hon. E. N., United States Shipping Board. Mar. 12, 1918. Says he is enthusiastic over the reorganization of the War Industries Board and the centralization of its authority in the hands of B. M. Baruch. Promises cooperation. Re the plan of the Emergency Fleet Corporation for the elimination of any possibility of profiteering in the shipbuilding industry by the establish[ing]ment of a definite and uniform cost accounting system in all the yards. Says the man to head this work ought to have the full confidence of the country and the labor organizations. Says he has thought of Dr. Albert Shaw in this connection, and asks for any suggestions the President may have in mind. See 484 = A. [*90*] [*60674*][*[90]*] 22 April, 1918 My dear Senator: I am taking the liberty of sending you the enclosed because I think that both the letter and its enclosure may interest you. Doctor Shaw and I were fellow-students at the Johns Hopkins years ago, and I learned there to have a very real confidence in his character and public spirit. May I ask that you let we have his letter again when you have read it? Cordially and sincerely yours, encs. Hon. Lee S. Overman, United States Senate [*60675*]22 April, 1918 [*[90]*] My dear Shaw: Your letter of April twentieth with its enclosures has interested me extremely, and I want you to know how it cheers me to feel that what we are doing now has the full approval of your own judgment, because I value your judgment. I have taken the liberty of letting Senator Overman see Doctor Cleveland's letter and your editorial comments. I am sure he will be stimulated by them. In great haste Cordially and sincerely yours, Dr. Albert Shaw, Review of Reviews, New York City. 60676THE WHITE HOUSE FILES. MEMORANDUM. Writer: Dr. Albert Shaw, Review of Reviews, 30 Irving Place, New York. 20 April, 1918 Subject: Re Overman bill. [*90*] Referred to Senator Lee S. Overman. See Overman Date: 22 April, 1918 [*60677*] [*THE WHITE HOUSE APR 24 1918 RECEIVED*] THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE-NEW YORK ALBERT SHAW-EDITOR [*90*] [ACK'D APR. 25 1918 C.L.S.*] April 23, 1918. Dear Mr. President: I am glad to have your letter of yesterday, and to know that the proof sheets I sent you regarding the Overman bill were of interest. I am sending a full set of rough proofs of this same number just now at hand from the press, so that if you should have any use for another copy of Dr. Cleveland's article, it may be at hand. I should not bother you with these scarcely dry sheets, except that the Overman bill is under immediate consideration, and some point in Cleveland's article might be of help to another Senator. Believe me, Faithfully yours, Albert Shaw Honorable Woodrow Wilson The White House, Washington, D.C. 60678[*[90]*] THE AMERICAN REVIEW OF REVIEWS EDITED BY ALBERT SHAW CONTENTS FOR MAY, 1918 General Ferdinand Foch Frontispiece The Progress of the World— Mars Triumphant 451 The New Vision of Empire 451 The President's Appeal to Force 452 Describing the Great Battle 452 America in the Breach 453 Our Growing Forces Abroad 453 The Policy Must Succeed 454 Backing Up "The Boys" 455 The Question of Officers 455 Civil Leadership 455 Mr. Schwab, Who Succeeds 456 Business Efficiency Gaining 456 The Aircraft Issue 457 The Navy As a Training School 457 Likewise, the Army 457 Dean Keppel in the War Department 458 The Medical Corps 458 Medical Rank and Authority 459 Educating for a Solid Nation 459 Our Patriotic Indians 459 Porto Rico Loyal and Contented 459 As to the Overman Bill 460 "Making Democracy Efficient" 460 Settling the Irish Question 460 Home Rule Follows Conscription 460 British Endurance 461 Unifying the Home Control 462 Reserves Beginning to Count 462 Italians Also in France 462 Ireland and America 462 Quiescence in the East 463 Finland's Ambitions 463 Plight of the Neutrals 464 America and Japan 464 American Propaganda 465 A Useful Bureau 465 Labor and the Patriotic Spirit 465 The War Finance Corporation 467 Wage Increases in Oil and Steel 468 Tax Totals an Agreeable Surprise 468 The Third Liberty Loan Afloat 468 Record of Current Events 469 Cartoons on World Topics 473 Foch—Allied Commander-in-Chief 477 BY MAURICE LEON The Greatest Battle in the World 480 BY FRANK H. SIMONDS Can German Air Craft Bomb New York? 492 BY WALDEMAR KAEMPFFERT AND CARL DIENSTBACH From College Dean to War Executive— I. Frederick P. Keppel of Columbia 497 BY LOVERING TYSON II. Dean Keppel in the War Department 498 BY DONALD WILHELM Making Democracy Efficient 500 BY FREDERICK A. CLEVELAND Massachusetts in Action 503 BY HON. SAMUEL W. MCCALL Boston in War Paint 505 BY GEORGE F. HINES New England Once Again on the Sea 510 BY WINTHROP L. MARVIN New England's War Spirit 515 BY GEORGE PERRY MORRIS Yale's War Services 518 BY PRESIDENT ARTHUR T. HADLEY Connecticut in the Van 520 BY HON. MARCUS H HOLCOMB The Coal Situation 522 BY COLIN DYMENT The "First Americans" as Loyal Americans 523 BY HON. CATO SELLS American Indian Poetry 524 Porto Rico's Place in the Americas 525 BY EMLIO J. PASARELL The College Woman as Nurse 527 BY THOMAS H. SIMPSON Leading Articles of the Month— American Magazines after a Year of War 529 The English Reviews 530 American Destroyers on Duty 531 Japan's Military Coöperation 532 Germany and the Polish Question 534 A New Industrial Italy 535 Limiting War-Time Executive Powers 536 The National Anthem 537 The Spanish Merchant Fleet 538 What Is a Tornado? 539 Guatemala's Earthquake Disaster 540 Standard Time at Sea 541 China's Salt Tax 542 The African Okapi, Unknown to the Zoos 544 The Latest Great Canal Project 545 The Economics of the Palate 546 The War and Advance in Surgery 548 The New Books 549 The Third Liberty Loan 558 Investor's Queries and Answers 560 TERMS:—Issued monthly, 25 cents a number, $3.00 a year in advance in the United States, Porto Rico, Hawaii, Cuba, Canada, Mexico, and the Philippines. Elsewhere $4.00. Entered at New York Post Office as second class matter under Act of Congress, March 3m 1879. Entered as second class matter at the Post Office Department, Ottawa, Canada. Subscribers may remit to us by post-office or express money orders, or by bank checks, drafts, or registered letters. Money in letters is sent at sender's risk. Renew as early as possible in order to avoid a break in the receipt of the numbers. Bookdealers, Postmasters and Newsdealers receive subscriptions. (Subscription and orders for single copies can also be filled, at the price of $2.50 for the yearly subscription, including postage, or 25 cents for single copies. THE REVIEW OF REVIEWS CO., 30 Irving Place, New York Albert Shaw, Pres. Chas. D Lanier, Sec. and Treas. May--1 449 [*60679*]GENERAL FERDINAND FOCH, COMMANDER-IN-CHIEF OF THE ALLIED ARMIES IN FRANCE (In articles appearing in this number of the Review, Mr. Leon and Mr. Simonds show the undisputed fitness of General Foch for the supreme command. He was born in the Pyrenees near the Spanish border, and is of Basque blood. He was trained in his youth as an artilleryman, and saw war in the siege of Paris in 1871. He was then in his twentieth year, having been born October 2, 1851. He is an author of famous books in military science, and for many years past has been regarded as the foremost authority among European strategists. He has great qualities of character and spirit, in addition to his proved fitness for the practical conduct of war. He has the confidence of the Allied armies as well as the Allied governments 450 MAKING DEMOCRACY EFFICIENT The Overman Bill as an Opportunity BY FREDERICK A. CLEVELAND If it is not "gassed" or "maimed a'bornin'," the people may wake up some day to learn that the Overman bill is one of the most significant proposals since 1789. It has been called a war measure, but the war has only put the Government to a test, which shows up its fundamental defect--a defect that President Wilson pointed to more than thirty years ago in that keenly analytical essay entitled "Congressional Government." The Overman will is more than a war measure because any statute which gives to the President the power to reorganize an executive and administrative machinery, under the circumstances, has the force of an amendment to the Constitution. It has this force because it gives back to the executive constitutional powers which, with his own consent, were taken away from him by statutes running back over a long period of years-- such a long period of years that they have taken the place of the Constitution. Nevertheless these changes have been brought about by statute law and are changeable by statute. The bill, if passed, will give back powers which are absolutely essential to effective, responsible, democratic government--unless, it should be said,--unless this is rendered ineffective by the continuation of a procedure in Congress that has had the effect of annuling the Constitution. The Cabinet and Congress In view of the fact that this procedure has a force that in the past has inverted the position of the executive, one added provision should be written into the bill--a clause should be added which would enable the President and the Cabinet to appear before Congress in an open, public way--in fact members of the Cabinet should be required to appear before Congress meeting as a "committee of the whole" to take up all matters initiated by them having to do with finance and administration. It has been frequently stated that the establishment of a responsible form of Cabinet administration would require an amendment to the Federal Constitution. I submit that this can be brought about without even a change in statute law--simply by changing the rules of the House. If Congress were to change its rules so as to permit--and if necessary by statute require--the Cabinet to appear before it on public matters as has been suggested, if the rules were so changed as to give priority to executive measures and a Cabinet member were required to appear personally before the House sitting as a committee of the whole to explain and defend, we would have the means of making the Government responsible. Let us suppose, for example, that a majority of Congress refused to support the measure or measures urged by the President! What would happen? What could happen? Either the President would be forced to bring in an amended bill or proposal or he could be forced to reorganize his Cabinet at any time that a majority of the representative body was against him. If the rules were so changed that he or his Cabinet would be required to assume leadership, if the President were required to have men around him that would stand or fall on their ability to command the respect and support of a majority, the executive would be both responsible and responsive, no matter how much power might be given to him. We would have an executive who could be given the greatest power to direct because he could do nothing if he did not have a majority back of him. Congress, at any time of emergency, could force a coalition Cabinet, a Republican Cabinet, or any other kind of Cabinet, as a condition of granting supplies. The point that I make is that the principle left out of the bill is more important than the bill itself, for everything that is proposed in the bill would necessarily follow. 500 60680 FROM COLLEGE DEAN TO WAR EXECUTIVE 499 Many of these callers have marveled at the Dean's honest diplomacy. And it works, they say. They come, some of them, to criticise and they stay to admire. It is a fact that one of them said to the writer: "I'm the buffer in a big corporation. I'm the assistant to the president—kind of an official harmonizer of all discordant elements—goat, sometimes, I'm told. I thought I was a real shock absorber, but Mr. Keppel—" "—he's a Dean," I interrupted. "Well, that's where he learned it, is it?" And another asked, what is more in point in this article, if it isn't possible that something in the wonderful spirit of the army got its origin in the office of the Secretary, and something of its wholesomeness from the Secretary and his Dean. Probably it did. Certainly it were strange if it did not. Likely it is simple recognition of the fact that led to the nomination, now confirmed, of Dean Keppel as Third Assistant Secretary, the duties of whom, to quote the official letter from Secretary Baker to Congressman Dent, chairman of the Committee on Military Affairs, are "To have charge of the life of the soldier in all of its non-military aspects," which means, simply, that he will be Dean of an "undergraduate body" bigger by far than all the universities in the world combined. "He will have especial supervision for the Secretary of War," Mr. Baker went on, "of the various training camp activities dealing with vocational education and the administration of such problems as are presented by the very helpful activities of the Y. M. C. A., the Knights of Columbus, the Army chaplains, the recreational and hospital and health service of the camps." Which means, simply, that at last the Government is going into the realm of what heretofore have been, necessarily, quasi-private problems of social betterment. It means, broadly, that the public is going into the private charities; recognition, therefore, of the work of that band of scientists called social workers, and the beginning of the end, likely, of many of our social woes. And the Dean comes by his leadership naturally. Certainly he has demonstrated, in his book on the undergraduate, and, more notably, even, as the Secretary's even-handed aide, that his interests are in young people. And meanwhile there were other social agencies busy, all as if in preparation of coordination by the Government in a wonderful plan that is sure to come some day. The Red Cross, guided in some of its departments by students of human hopes and limitations such as Director of Persons, of the Home Service Section, who long had taught at the New York School of Philanthropy, soon saw that no soldier could shoot straight unless his family were free from the wolf at their door. The War Risk Bureau, likewise with its eyes on the problems of reconstruction, made careful provision, in ways freely described by Dr. Lindsay in the April REVIEW OF REVIEWS, for the returning heroes. And the Surgeon General's Department is developing a program to care for every man with anything of disability—"a plan," says Lt.-Colonel Frank Billings, of Rush Medical College, who was one of the American Mission to Russia and is now on General Gorgas' staff, "to make the blind see, the lame walk, the deaf to understand; a plan, in a word, not only to restore men to health, but to restore them functionally as well to places in life and industry." There are other agencies that are relating themselves to this huge and inclusive reconstruction program, which becomes more striking and providential when contrasted to reconstruction after the Civil War. These agencies are alike in having as the major premise of success the fact that additional education can make up for additional disability; that Science, which makes modern war terrible, can nevertheless be used to overcome the results of war; that all the multitudinous efforts in America toward the realizations of our social aim, lend themselves to the leadership of the Government, and to the leadership of an experienced dean with a wide interest in social betterments. It has not been determined that work of the Red Cross or other agencies not referred to in Secretary Baker's letter, shall be consolidated with those specifically mentioned. But it may be conjectured that they will be related; and the mere fact that non-military aspects of the soldiers are to be brought into the province of Uncle Sam is a long step toward eventual coördination. That, in itself, is of vast significance. And the selection of a dean to make the beginning step is of analogous significance. And the selection of Dean Keppel hardly much less.MAKING DEMOCRACY EFFICIENT 501 Is it Undemocratic to Have Leadership? Senators, both Democratic and Republican, are spending long, tedious hours telling why they are against the Overman bill: "It is dangerous to put so much power in the executive." "It would make the President the most powerful autocrat the world has ever known." "It is undemocratic." In this discussion the eye is not turned to France, where millions of men fighting for democracy are being imperilled for lack of something—something that the Hun has with him, and which he accepts from his leader as "Gott mit uns"—something that we have not and which we are told is "undemocratic." We are taught that it is democratic to be shiftless—unprepared; that the institutions of democracy can run on successfully without strong leadership; that it is not dangerous to have executive departments, all the processes of administrations dominated by forty or more irresponsible Congressional committees, the leadership of each of which is fixed by the principle of seniority, and whose interest it is to preserve and augment for their own power at the expense of the executive; that it is undemocratic to have the President and his Cabinet walk up the front steps of the Capitol and in full sight and hearing of the nation to go before the people's representatives to present matters of public business—to tell what the Government is doing, what it proposes to do, and explain their needs for funds. We are also told that it is quite democratic to have several hundred bureaus, bound up with red tape to a degree that renders the executive helpless in dealing with these forty-odd committees (the real Congress) by back-door approaches, giving an account of their stewardship and settling questions of policy behind closed doors with persons who are answerable only to a local constituency which looks to these committee-rooms as places where their representatives can go to gete what is coming to them. Two Kinds of Administrative Machine The engines of democracy are now being put to the test in a very practicable way. In this war, the most powerful political machines are being tried out, not alone for war purposes, but for productive uses as well. Generally speaking, these engines are of two types: (1) The type developed by a patronized Prussian autocracy; (2) the type developed by the builders of democracy. The efficiency of the first type has been demonstrated. When the war broke out this was all tuned up; it was tuned up for making the most of the resources of the German people on the war front and behind the fighting line. It was not until this machine, Juggernaut- like, had crushed its way through Belgium and northern France that the democracies of the world knew what kind of competition they had to meet. For the first time they saw a strong, united people in arms to a man, two Germanic empires bound together by blood ties and well organized for carrying out of every detail of a plan of military contest. They found them quite as well organized to carry on every detail of commercial and industrial activity on a national scale, well equipped and under able leadership— a leadership built up and tried out through half a century of vigorous discipline in institution-building. This is what democracy must compete with and win out against or accept defeat. Five Essentials of Sound Administration If we are to think sanely about the Overman bill, it must be with an appreciation of principles of political organization that make for strength in public service as well as effectiveness for democratic control. At the risk of appearing didactic, I am going to repeat what have seemed to me to be the essentials of successful management. They are these: (1) Strong Executive Leadership.—The stronger the better, the strongest that democracy can produce, with no limitations or inhibitions so long as this leadership has the support of those who are served. (2) A Well-Disciplined Line Organization.— An organized personnel as large as may be needed to execute orders, to do the things that the people need to have done without human or material waste. (3) A Highly Specialized Staff Organization.— An organized personnel, trained and set aside to study and report facts and conditions that must be taken into account by the leadership; where those who are responsible for direction may obtain the best possible basis for the exercise of discretion, developing a management made intelligent through staff knowledge as well as made strong through line discipline (4) Adequate Facilities for Inquiry, Criticism, Discussion and Publicity by a Responsible Personnel Which Is Independent of the Executive.—The making of the representa- [*60681*]502 THE AMERICAN REVIEW OF REVIEWS tive body a real forum with full opportunity given to a responsible, critical opposition under the leadership of persons who are well trained in the public service, a leadership as strong as that at the head of the executive. (5) The means of Effective Control in the Hands of the People and Their Representatives.— A control through which at any time, simply by adverse vote, the sceptre of power can be taken away from the executive and put into the hands of another without loss of line discipline, staff knowledge, or managerial experience, without loss of an ounce of efficiency, enabling democracy to change engineers at any time without stopping or slowing down the engine. The first three of these are the essentials of an efficient government. The last two are the essentials of democratic control. Now let us appraise the great engines of national accomplishment for peace and war that have come forward for the test. The builders of the Prussian political engine used the first three principles only—they had no interest in democracy except to crush it. The Prussian war lords kept out of the German constitution the principles which made for democratic control—their leaders gaining loyal support and contentment of the people through a paternalistic service in the same way as did the head of the family under the old Mosaic law—by developing a culture which left no alternative open to the individual other than to accept this benevolent paternalism enforced by a penal practise that because of its added horrors has become known as Schrecklichkeit. Britain Left Out the Second and Third Great Britain, in building up her imperial organization, has stressed the first, the fourth, and the fifth of these principles. Britain has provided for political leadership. But she has from the first insisted that this leadership shall be responsible, and therefore the attention of British statesmen has been devoted primarily to expedients which will insure democratic control. Because of her national strength, because of her predominance, because of her control over the sea, however, it was not until the beginning of this war that Britons were made to see the necessity of utilizing the second and third principles—the necessity of providing for a well-disciplined line for operating her national activities and a well-trained scientific staff to assist in executive direction. France Used All the Principles France had developed an engine in which all five of these essential principles of political mechanics were used to good effect, but she was late in seeing the need and had not the human or material resources to build large enough and strong enough to compete successfully with the Prussians, and it was only through brave Belgium's sacrifice that France was saved from destruction. Russia provided for leadership, but did not make it strong, and neglected all four other essentials. It was nothing but her mass, weight, and size that held the Prussian war engine on her border for three and a half years. America Has Left Out All of Them America has developed a type of engine all her own—one built in disregard of all of these principles of successful organization and management. The fact that the opposition is now banking on in the effort to talk the Overman bill to death is this—that the most conspicuous thing in all American political history is fear of strong executive leadership. For this reason, we have not developed a well-disciplined line organization. We have not developed a strong, intelligent staff—in facct, this is a thing impossible without strong executive leadership. We have not developed adequate facilities for independent responsible inquiry, criticism, discussion, and publicity, because the initiative is kept in legislative committees. We have not developed means of effective control in the hands of the people and their representatives, because we had an irresponsible executive. Can We Make Our Democracy Efficient? With these known requirements and defects, we now have before us in the Overman bill the largest, the most vital political question that we have ever had to decide. It is this: Shall we as a democracy so organize that our executive can effectively direct and use the forces and resources of the nation for common welfare ends—be they the ends of peace or war? Or, let us put the question more broadly: Can we and our Allies so far adapt and tune up our political machinery that we may demonstrate in actual competition with Prussian autocracy an efficiency that is adequate for self-protection, and at the same time make it consistent with the aims and purposes of democracy?[*[90]*] 25 April, 1918 My dear Shaw: Thank you for sending me the additional proof sheets. I may have a chance to make further use of them. I hope and believe, however, that the Overman Bill is going through all right. In great haste Cordially and sincerely yours, Dr. Albert Shaw, Review of Reviews, New York City [*60682*][*90*] [*Hold for*] [*ACK'D May 20, 1918 W.F.I.*] THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE - NEW YORK ALBERT SHAW - EDITOR May 15, 1918 Dear Mr. Tumulty: We have just received to-day from the printers the first copies of a compilation of ours called "2000 Questions and Answers About the Great War". I am taking the liberty to send over a couple of copies, one of which you will perhaps be good enough to pass to the President (please tell him we have no thought of his stopping to acknowledge it), and the other copy I hope you may like for yourself. We shall expect to make a good many corrections, improvements and expansions in subsequent editions of this book. I hope you will regard the plan of it as practical and useful. Sincerely yours, Albert Shaw. Hon. Joseph P. Tumulty, Secretary to the President, The White House, Washington, D.C. 60683[*THE WHITE HOUSE MAY 25 1918 RECEIVED*] [*THE AMERICAN REVIEW OF REVIEWS 30 IRVING PLACE - NEW YORK ALBERT SHAW - EDITOR*] [*90 *] [*Hold for*] May 23, 1918 [*ACK'D MAY 27 1918 W.F.J.*] Dear Mr. Tumulty: Your note requesting three or four copies of "President Wilson's State Papers and Addresses" comes in Dr. Shaw's absence. I am sending immediately a round dozen copies, as I know Dr. Shaw would wish me to do. I have often thought of asking you frankly whether the President autographs a book now and then in these busy days. In earlier letters to you, Dr. Shaw was good enough to give me some credit for arranging these addresses and making the little prefatory editorial notes. Possibly no one has read these Presidential addresses more often and more carefully than I! If such a request is bad form, you need pay no further attention to it. If, on the other hand, you think the case more or less deserving, I assure you that an autographed volume of "President Wilson's State Papers and Addresses" would immediately become a family heirloom. Sincerely yours, Howard Florance Hon. Joseph P. Tumulty 60684Confidential.- [*90*] 534 Woodward Building, Washington, 12 July, 1918 Dear Mr Tumulty: Some weeks ago my attention was called by a man who is closely connected with Mr Hayes and the Republican National Committee to an article in the March number of the Review of Reviews by the editor [of the] Dr Albert Shaw, advocating the overthrow of the present British Administration, the reconstruction of the House of Lords and the election of a Labor Government.— Page 234.— My informant alledged: a. That the Brooklyn School Board considered the articles pro-German, so anti British , seditious etc, that it ordered the Review excluded from its schools.– b. That the manager of the Scholarship Department of the Review, then wrote the Brooklyn Schoolbioard in part as follows: "It is impossible that the editorials of the March Review of Review can be called pro-Germanbecause they were published as a result of conferences in Washington between President Wilson and Dr Albert Shaw." "The parts objected to are almost word for word the utterances of the President but published as being also the views of this influential organ which stands for peace without victory with President Wilson".— "I tell you this in confidence for to publish the fact that Dr Shaws editorials were inspired by the United States Government would impair there usefulness ".— I understand that this is being to some extent circulated to discredit President Wilson and the administration ;as alledged evidence that they still seek to gain the Pacifiist vote ( if there is any such vote ) by a peace by negotiation and are not sincere in their declaration for peace with victory.— Personally I read Dr Shaws article with great interest and approval and have had under consideration writing an article in extension.— In my opinion Great Britian could and should set a great example , and the King of England should be first man to see it, by abolishing the throne , court and house of lords and establishing a true democracy.— Lloyd George is really a pseudo and discredited democrat.— I had been hoping to have seen you and to have ascertained your views upon that article in the Review of Reviews and the advisability of extending same.— It seems that Shaw or Shaws man was indiscreet; spilling the beans as my informant expressed it.— Perhaps the letter from the Review to the Brooklyn School Board was published and I am not giving you any useful pointer.— If so, I never saw it.— Yours sincerely, J M Jayne [*60685*]Dear Tumulty: [ACK'D, JUL 19 1919,??] This is absolutely a blind matter to me. I do not know what was said in the article in the March number of the Review of Reviews to which reference is made, but from the indications here given I can certainly say that it is not founded upon any interview with me. Shaw has changed his views since March, when he was in a very different attitude towards the war, and my attitude was not his at the time we had our interview. I don't understand this at all. The President. C.L.S. [*D I think we ought to say that without reference to any particular article the President has never given expression to views of this kind. J JMH [[shorthand]*] [*60686*]THE WHITE HOUSE, WASHINGTON. August 1, 1918, Memorandum for the President: Dr. Albert Shaw telephoned from New York asking if the President could see him for five or ten minutes on Monday or Tuesday next. Dr. Shaw stated that he was going abroad in a few days. [*60687*][*ACK'D JUL 31 1918 C.H.H.*] [*90*] 2 August, 1918. Dear Tumulty: Please tell Dr. Shaw that I have felt myself under the necessity recently to deny myself to everybody who would be generous enough to excuse me, because of an unprecedented pressure of things from which I could not withdraw my attention. Please say that I bid him Godspeed on his journey, and I know that he will understand. The President G.F.C. [*60688*][*90*] Personal.- 554 Woodward Building, Washington, 2 August, 1918. Mr Jospeh Tumulty, The White House.- My dear Sir: I am disappointed that you could not see me when I called this morning.- I appreciate that you may have been unable to see me this morning but apparently from the message and attitude with which my note was returned you did not indicate that you cared to see me at any other time.- I had intended to ask your support to an appointment in the foreign service of the Committee on Public Information, in which I am under specific consideration, in conformity with correspondence previously exchanged, especially your letters of the 3 rd and 10 th insts.- However if you consider me in any sense a nuisance or " persona non grata" I have no desire to press such a request upon you.- At the same time I had intended to inform you [?] of certain developments in connection with the case of the Review of Reviews, which as I reported to you in a letter dated July 12, made certain scandalous misrepresentations to the Brooklyn School Board, regarding alledged utterances and inspirations of the President.- As I do not prepose to again call at your office at The White House, at least without invitation, where apparently there is neither realization nor appreciation of an important service rendered, I must respectfully but firmly ask you to promptly and specifically inform me:- a. whether you personally informed the President or whether he personally read my letter of July 12, containing citations from a letter alledged to have been addressed by the Review of Reviews, New York, to the Brooklyn School Board.- [*60689*](2) None can deny the gravity nor the importance of the information given by me.-In a letter dated July 29 you write : " I can assure you that the President has never given expression to views of that kind" refering to certain views in an article by Dr Albert Shaw in the March number of the Reviews of Reviews, which said Review in a letter to the Brooklyn School Board alledges to have been inspired and directed by the President.- That the President did not express such views is a foregone conclusion but your letter is silent as to whether you brought my letter to the personal attention of the President, so that he may be cautioned against those who are evidently betraying his confidence.- The essential point is this : Did the Review of Reviews write the letter alledged to the Brooklyn School Board, from which I cite in my letter to you ? If so, has the president been so informed ? I therefore again ask whether you have or have not shown my letter of July 12 to President Wilson.- If you have not already done so, I prefer to represent the case directly to the President, through friends in the Senate who have frequent and intimate contact with him, and who, I feel sure will agree with me that it is a matter that should be personally laid before him.— I am not to blame that you seem to prefer to conduct such delicate matters in correspondence.- Before I wrote you on the 12th I sought but was denied a personal interview, as I had noted that a previous letter marked [12"]very confidential” had been opened and answered by one of your assistant secretaries.- Personally I never thought that the President would like to have so delicate a matter made the subject of routine office corresponddence; hence my request to you for a personal interview.- I wish now that I had gone direct to the President through my friendss [*60690*](3 0 00 in the Senate, as I am unknown to you and you to me, except through your present office.– Yours truly, Mrs. Jayne [*60691*]JAYNE, H. B. September 11,1918 Refers to Secretary's letter to Will H. HAYS----Talks of certain information in the possession of the Review of Reviews on this subject-see Jayne [*90*] [*60692*] THE AMERICAN REVIEW OF REVIEWS 13 ASTOR PLACE- NEW YORK ALBERT SHAW- EDITOR [*90*] [*ack'd Feb 10 1918*] [*W.F.J*] [*Mr Latter*] [*200 copies here*] February 7, 1919. Dear Mr. Tumilty: Dr. Shaw is planning, when the proper time comes, to bring out another edition of "President Wilson's State Papers and Addresses." We always like to be forehanded with the editorial work, and have it under way. Material is in type up to the time of the President's departure for Europe. I wonder if you have available official copies of at least the earlier addresses the President made in Europe? You will remember that the whole volume is based upon official texts, and not newspaper reports. Very truly yours, Howard Florance Hon. Joseph P. Tumilty White House Washington, D. C. [60693][*Mr Latter*] [*sent 3/24/19*] [*90*] THE AMERICAN REVIEW OF REVIEWS 13 ASTOR PLACE- NEW YORK ALBERT SHAW- EDITOR March 22, 1919. Dear Mr. Tumulty: You may possibly remember that before the President's return,at the end of February, I made inquiry of you as to whether official copies of his European addresses were available. We desire to put them in type for inclusion in a new edition of the "Addresses and State Papers". Official copies were not then available, but perhaps they are now. Very truly yours, Howard Florance Honorable Joseph P. Tumulty White House Washington, D.C. [*60694*]COPY THE WHITE HOUSE WASHINGTON [*[91]*] March 7, 1913. My dear Mr. Lewis: Your letter of March 7th, in which you tender your resignation of the office of Assistant Attorney General charged with the Defense in Indian Depredation Claims, has been received, and I hereby accept it, as tendered. Will you not allow me to express my appreciation of the valuable service you have rendered in the discharge of the duties of your office? Sincerely yours, (Signed) Woodrow Wilson. Hon. William H. Lewis, Assistant Attorney General. [*60695*]M-A DEPARTMENT OF JUSTICE Office of the Attorney General, Washington, D.C [*Accepted 3/7/13*] March 7, 1913. [91] [*91*] The President, The White House. Dear Mr. President: I send you herewith the resignation of Mr. William H. Lewis, Assistant Attorney General, to take effect April 1st. Mr. Lewis is a colored man, about whom you have doubtless heard. He is a man of good standing and of ability. I think it would be well in accepting his resignation to express some appreciation of his character, etc. Sincerely yours, J. C. Mc Reynolds, Attorney General. Enc. [*Resignation + copy of acceptance sent to Justice 3/14/13*] [*60696*]THE WHITE HOUSE FILES. ------------- MEMORANDUM. Copy. [*91*] Writer: DEPARTMENT OF JUSTICE WASHINGTON March 7, 1913. The President of the United States, Through the Honorable the Attorney General. Subject: Sirs: I hereby tender my resignation as Assistant Attorney General charged with the Defense in Indian Depredation claims, to take effect at the pleasure of the President. Respectfully, (Signed) William H. Lewis. Original Referred to AG (For the files of the Dept. of Justice) Date: March 14th. [*60697*][*[92]*] [*The White House Mar 6- 1913 Received*] [*Ack'd Mar 7 1913 J.W.H.*] Titusville, Pa. March 5, 1913 To His Excellency, Hon. Woodrow Wilson, Executive Mansion, Washington, D. C. I wish to talk with you about the complaint of the Independent Telephone interests against the Bell Telephone people. There is a merger now pending which the Independent people desire to prevent. I would like to come to Washington and lay this matter before you,briefly, as soon as possible. I have absolutely no personal or financial interest in the matter, but only a desire to see fair play for the small business man, as well as the large. Mr. W. J. Bryan may remember that a Jamestown, N. Y. gentleman once spoke to him about this matter. Mr. Bryan knows who I am, as he was at my home in Titusville, some years ago. Yours faithfully, S. S. Bryan I congratulate you on the selection of such a splendid cabinet. [*60698*]THE WHITE HOUSE FILES. MEMORANDUM. April 14, 1913 Writer: Hill, Samuel, President, Home Telephone & Telegraph Co., Portland, Oregon Subject: Says his Co. has been fighting the Bell telephone trust, recently bringing proceedings before the grand jury at Seattle, which he thinks would have led to an indictment (as the evidence of law violations was overwhelming) if there had been proper authority to draw the bill. Says change of administration left no one conversant with facts to aid the grand jury, which on its own initiative recessed until April 21st. Fears that the Bell Company will prevent confirmation of anyone the President might nominate for Oregon or Washington district attorneyship before reconvening of the grand jury, and thus bring failure of the proceedings. Urges that the President have the Attorney General designate some special prosecutor who can pursue the matter before the grand jury, xx Referred to: Referred to Atty General without comment Date: April 21, 1913. [*92*] [*60699*][*[92]*] April 19, 1913 My dear Mr. Hill: Let me thank you for your letter of April 14th, and assure you that I shall bring the matter to the attention of the Attorney General. Sincerely yours, Mr. Samuel Hill, President, Home Telephone & Telegraph Co., Portland, Oregon. [*60700*][*JAF-RS-MET*] ADDRESS REPLY TO "THE ATTORNEY GENERAL" AND REFER TO INITIALS AND NUMBER DEPARTMENT OF JUSTICE. WASHINGTON, D.C. [*7*] [*92*] April 21, 1913. J. P. Tumulty, Esq., Secretary to the President, Washington, D. C. SIR: Receipt is hereby acknowledged of your communication of the 21st instant, transmitting a letter and enclosures from Mr. Samuel Hill, of Portland, Oregon, with reference to the telephone proceedings before the Federal grand jury at Seattle, Washington. Mr. Hill forwarded a copy of his letter to the Attorney General direct, and the matter is receiving close attention. Respectfully, For the Attorney General, [*J. A. Fowler*] Assistant to the Attorney General. [*60701*][*92*] [*ACK'D NOV 15 1913*] [*THE WHITE HOUSE NOV 15, 1913 RECEIVED*] [*C.T.H.*] LAW OFFICES MARBURY, GOSNELL & WILLIAMS MARYLAND TRUST BUILDING CALVERT & GERMAN STREETS BALTIMORE WM. L. MARBURY FRANK GOSNELL GEO. WEEMS WILLIAMS JESSE SINGLUFF WILLIAM L. RAWLS TELEPHONE ST. PAUL 2587 CABLE ADDRESS "EMGE" (1-K-6897) November 14, 1913. His Excellency Honorable Woodrow Wilson President of the United States, The White House, Washington, D. C. Dear Mr. President,- I understand that there is some idea of having a Commission appointed to investigate the question of telephone rates, etc. In that event, I would suggest for your consideration as a member of such Commission, Dr. Louis Duncan, formerly of the Johns Hopkins University and Professor of Physics there, now 50 Church Street, New York, Consulting Engineer. Dr. Duncan was Consulting Engineer for the Independent Telephone Company here, years ago, when I was counsel for that concern. He is the man who designed the electrical installation for the Baltimore & Ohio R. R. tunnel here, and he is probably as well equipped as any man in the United States for such work as a Commission of that kind would have to do. When he was Engineer for our Company, we not only found his expert advice of great value, but he protected us against "grafters" with the greatest success. Sincerely Yours, [*W L Marbury*] [*60702*]FORBES CO. BOSTON EUROPEAN PLAN CABLE ADDRESS NEW WILLARD The New Willard, Pennsylvania Avenue, Fourteenth & F Streets 92 Ackngd 12/15/13 Washington, D.C., Dec 13 1913 F.S. Hight, Manager. My dear Mr. Tumilty: Excuse me for being so persistent but I believe the results will justify my insistance. Regarding the care of the people against the telephone trust, "so called. I would like to have President Wilson made a little more conversant with certain phaguse of this case, particularly so as it relates to the "little fellows" concerned. If he would give a half hour to allow John H. Wright, of Jamestown, New York, to state their side as he and others see it I believe it would clear the atmostphere, figuratively speaking, and 60703FORBES CO. BOSTON. EUROPEAN PLAN CABLE ADDRESS NEW WILLARD THE NEW WILLARD, PENNSYLVANIA AVENUE, FOURTEENTH &F STREETS WASHINGTON, D.C., 19 F.S. HIGHT, MANAGER*] (2) might result in clearer judgement in behalf of justice with the powers that be. Mr. Wright will be prompt to keep an appointment when were notified he had the privilege. You must excuse this hasty scrawl so soon after a Gridiron dinner, which I very much enjoyed because of the company with which I was immediately and so completely surrounded. With deep regard, I am, Sincerely, C S Jececson [60704]C. S. Jackson, Oregon Journal[*[Dec. 14, 1913]*] LETTER TO THE ATTORNEY GENERAL FROM THE AMERICAN TELEPHONE AND TELEGRAPH COMPANY OUTLINING A COURSE OF ACTION WHICH IT HAS DETERMINED UPON THE ATTORNEY GENERAL'S REPLY THE PRESIDENT'S LETTER TO THE ATTORNEY GENERAL WASHINGTON GOVERNMENT PRINTING OFFICE 1914 [*60705*]THE WHITE HOUSE. WASHINGTON. December 19, 1913. [*92*] Memorandum for the President: The Attorney General asks that the enclosed draft of reply to the American Telephone and Telegraph Company be submitted to the President for approval or change. The Attorney General is very anxious to have this reply sent out tonight, and asks that it be returned to him as soon as possible. [*ACK'D DEC 19 1913 C.L.S*] [enc. ref 12/19/13] [*60710*][*92*] December 19, 1913 My dear Mr. Attorney General: Thank you for letting me see the letter from the American Telephone and Telegraph Company. It is very gratifying that the company should thus volunteer to adjust its business to the conditions of competition. I gain the impression more and more from week to week that the business men of the country are sincerely desirous of conforming with the law, and it is very gratifying indeed to have occasion, as in this instance, to deal with them in complete frankness and to be able to show them that all we desire is an opportunity to cooperate with them. So long as we are dealt with in this spirit we can help to build up the business of the country upon sounds and permanent lines. Cordially and sincerely yours, enc. Hon. James C. McReynolds, [*60711*]ROBERT C. HALL. PITTSBURGH, PA. [*THE WHITE HOUSE DEC 23 1913 RECEIVED*] [*Ackgd 12/23/13*] [*92*] Hon. Woodrow Wilson, President, United States, Washington, D. C. My dear Mr. Wilson: - Permit me to express to you my appreciation of the efforts of the Department of Justice to curb the domineering tactics of the American Telephone & Telegraph Company in this country. If your Attorney General has succeeded in opening the long distance telephone lines of the Bell Telephone Company as virtual common carriers, it renders independent telephone investments safe and secure instead of questionable value and, in a greater sense, increases the facilities for the nation of telephone communication. It was because of my belief in your sincerity and integrity that I was willing to support you in preference to either the Republican nominee or the so-called Progressive, whom I feared. Do not permit yourself to be dismayed or overwhelmed by the calamity cry of vested interests. So far as the nation at large can see they approve your actions and courage,and you have won and held the support of the best element of the voters and of the nation. With regards, Very sincerely yours, Robert C. Hall RCH [*60712*]THE WHITE HOUSE FILES. MEMORANDUM. [*92*] Feb 25, 1914 Writer: Allen, Terry W., President, Sun Telephone & Telegraph Company, Jackson, Tenn Subject: Wants opportunity for the "independents" to be heard by the Atty Genl before the final agreement is reached between the Govt and the Bell Telephone Company. Has been in communication with Asst Atty Genl Todd, who informed him in effect, that it was none of the "independents' " business, Referred to Atty Genl with note of transmittal Date: Feb 27, 1914 [*60713*][*92*] [*HOME TELEPHONE AND TELEGRAPH CO. OF PORTLAND, OREGON LOCAL AND LONG DISTANCE TELEPHONE AUTOMATIC SYSTEM "SECRET SERVICE"  OFFICERS SAMUEL HILL PRESIDENT A. L. MILLS VICE PRESIDENT J. B. MIDDLETON SECRETARY AND MANAGER EDEN F. WELLS TREAS. & DIRECTOR OF PURCHASES J. C. POTTER AUDITOR DIRECTORS SAMUEL HILL THEO. B. WILCOX WILLIAM M. LADD EDWARD COOKINGHAM A.L. MILLS HENRY L. CORBETT ELLIOTT R. CORBETT EDEN F. WELLS J. C. POTTER TELEPHONE NO. A 6221 GENERAL OFFICES PARK AND BURNSIDE STREETS PORTLAND, OREGON*] April 15th, 1914 Personal [*THE WHITE HOUSE APR 20 1914 RECEIVED*] [*ACK'D APR 20 1914 C.T.R.*] [*92*] Mr. Woodrow Wilson, President of the United States, Washington, D. C. Dear Mr. President:– I wrote you a letter April 14th, 1913 regarding the telephone situation. Mr. Constantine J. Smyth was appointed Special Prosecutor, and through his efforts and those of the Department of Justice, a decision was reached and a decree filed, which protects all interests, and gives the American people the service to which they are entitled, and enables telephone development to proceed in America. Without the action of your administration, this would not have been possible. Through your action, I have come again to believe that the laws of our country are made for all alike, and are administered impartially. Although a life-long republican, I feel my vote for you was not misplaced. Doubtless in the face of some adverse criticism, you will pardon one letter of praise for the work which Mr. Constantine J. Smyth has done, for which you were responsible. Very truly yours, Samuel Hill [*signature*] President. [*60714*]TELEPHONES [*92*] Requests for the President to address organizations by telephone. American Newspaper Publisher's Association, New York, April 22, 1915, --- filed Inv. "N" Minneapolis Traffic Club, April 15, 1915 -- filed Traffic Club of Minneapolis Southern Commercial Congress, Muskogee, Apr. 26, 1915 -500-K--M International Soil-Products Exposition and International Dry Farming Congress, Denver, Col., Oct. and Sept. 1915.. Southern Medical Association, Dallas, Tex., Nov. 10, 1915. Southern Commercial Congress, Charleston, S. C., Dec. 13, 1915 Real Estate Boards of New York and San Francisco, New York City, Feb. 5, 1916 --- filed Real Estate Board of N. ¥. Real Estate Board of Baltimore, February 19, 1916 -- filed Real Estate Board of Baltimore Niagara Falls Board of Trade, Feb. 29/16 --filed Niagara Falis International Circulation Menacers Association, Grand Rapids, Mich., -- June 1916, -- filed International Circulation Managers Association. San Francisco Press Club, April 29, 1916, -- filed San Francisco Press Club. Oakland Automobile end Good Roads-making Machinery Show, April 26, 1916 -- filed Oakland American Institute of Electrical Engineers, San Francisco, New York, Boston, Philadelphia, Atlanta, May 16, 1916,------ filed American Institute of Electrical Engineers. North Carolina Society of Atlanta, May 20, 1916, filed -- North Carolina Society, Mercantile Club of St Louis, June 5, 1916, filed--Mercantile Club of St Louis Associated Advertising Clubs of the World, Philadelphia, Pa., June 29, 1916 -- filed Associated Advertising Clubs Mercantile Club of St Louis, June 5, 1916, filed --- Mercantile Club of St. Louis. Bridgeport (Conn) Chamber of Commerce, June 12, 1916, wants - Prest to address by graphophone --- filed Bridgeport Utah Society of Sons of the American Revolution, Salt Lake City, June 27, 1916 -- filed Sons of American Revolution West Virginia 53d Birthday Celebration -- filed West Virginia Columbus Chamber of Commerce, Oct. 16, 1916, --- filed Columbus Chamber of Commerce Cook County Real Estate Board, Dec. 12, 1916, -- filed Inv. C Poor Richard Club, Philadelphia, Jan 17,1917--Piled Inv P National Orange Show, San Bernardino, Cal., February 20 - 28, 1917, -- filed National Orange Show High Twelve Club, Danville, Ill. -- filed High Twelve Club [*60715*]TELEPHONES (continued) Requests for the President to make addresses by phone. Springfield Publicity Club, May 29, 1917, (campaign for Liberty Bonds) ---- filed 4000 [*60716*][*[92]*] April 13, 1916 My dear Mr. Attorney General: I do not like to return any kind of reply to the enclosed letter without first submitting it to you and asking for a little light on the matter. I would very much appreciate it if you could tell me just the real state of things. Cordially and faithfully yours, Enc. Hon. T. W. Gregory, The Attorney General. [*60717*] Terry W. Allen President of “The Allen Properties", controlling half a dozen Southern independent telephone companies. Complains of the attitude of the Department of Justice, and particularly of that of Assistant Attorney General Todd, as to the so-called “Kingsbury commitment" or voluntary proposal of the American Telephone and Telegraph Company to adjust its business to conform to the law. Claims that the Department has ignored several letters which he has written in criticiem of the Department's course in allowing the Bell interests to continue to extend their monopoly. Says that, while a clause of the so-called commitment called for the consideration of these matters by the Department of Justice and the Interstate Commerce Commission jointly, the Department has set itself up "as the sole judge of all of these merger matters,” and that apparently it has permitted the acquisition by a subsidiary of the Bell interests which is now in the hands of a receiver as a bankrupt concern, of an independent company which also is bankrupt. Insists that the Interstate Commerce Commission should have been consulted and asks that the President direct an investigation of the matter. [*92*] [*60718*] TERRY W. ALLEN, President W. H. KIER, Vice-President W. N. McANGE, JR., General Manager [* [92] *] THE ALLEN PROPERTIES EXECUTIVE OFFICES: Telephone Building STANTONVILLE TELEPHONE CO. CENTER POINT TELEPHONE CO. BALDWYN HOME TELEPHONE CO. SUN TELEPHONE & TELEGRAPH CO. BOONEVILLE HOME TELEPHONE CO. SOUTHERN TELEPHONE & TELEGRAPH CO. CORINTH, MISS., 4/5/16 Hon. Woodrow Wilson, Pres. U. S. Washington, D. C. [*ACK'D APR 15 1916 C, L.S.*] My dear Mr. President ; - The Assistant Attorney General, Mr. G. Carroll Todd, and the Attorney General, Mr. T. W. Gregory, have for sometime refused to acknowledge any letters that I have written. The question is upon the carrying out of the Democratic platform, adopted at Baltimore, on the question of monopolies. On December 19, 1913, the American Telephone & Telegraph Co. wrote to the Department of Justice what has been known as the Kingsbury commitment. In your letter at that time to the Attorney General, Hon. J. C. McReynolds, you stated; "It is very gratifying that the company should thus volunteer to adjust its business to the conditions of competition”. All of the Independent companies in the country looked upon this letter as an indication that the Bell company would no longer seek to be & monopoly, but would be willing to live with competition, without destroying it. Just the opposite to what the Independent companies had reason to expect was the case. The Assistant Attorney General, Mr. G. Carroll Todd, who has charge of this matter, has allowed the Bell Company to make acquisitions of Independent property in violation of this commitment. [*60719*]W. W. PAGE 2 THE ALLEN PROPERTIES 4/5/16 Furthermore, he has considered the protests of Independent companies, who are striving to make competitive conditions possible, as offensive. In the commitment, under the 2nd. paragraph, the American Telephone & Telegraph Co. agreed to take up all of these matters with the Department of Justice and the Interstate Commerce Commission. So far as I can ascertain, the Department of Justice is the only authority that has been consulted. I very fully well realize that I am trespassing upon your patience. I can understand that the great pressure of foreign complications have obscured many domestic conditions that otherwise would have received attention. I would respectfully ask the President of the United States to have this matter investigated, and call for a full report on the subject. A great Industry, that of Independant Telephony has been seriously jeopardized, and not only that , but the Democratic platform, adopted at Baltimore, is being directly and knowingly violated. I do not believe that these conditions have been brought to the attention of the President. I respectfully submit this matter, in hopes that the President will call for an investigation. Very respectfully yours, Terry W. Allen [*signature*] TWA/LG P. S. Please find enclosed a letter that I am today writing Hon. G. Carroll Todd, Ass't Att'y Gen'l of U. S. [*60720*][*[92]*] THE WHITE HOUSE FILES. MEMORANDUM. Writer: Terry W. Allen, President of "The Allen Properties, Corinth, Miss. April 5, 1916 Subject: See attached digest. Referred to Attorney General. Date: April 13, 1916 [*60721*] [*92*] 4/5/16 Hon. G. Carrell Todd, Ass't Att'y Gen'l, U. Us. Washington, D. C, My dear Mr. Todd;– I am in receipt of a letter of the 3rd. inst. from Mr. F. B. McKinnon, Vice-President of the United States Independent Telephone Ass'n , enclosing copy of a proposed consolidation of the Interstate Independent Telephone Company, of Aurora, Ill. with the Bell Telephone System. It must be plain to the Department of Justice that the Central Union Telephone Company, the subsidiary company of the Bell Telephone Company, in Illinois, is in the hands of a received, and that this furnishes a condition of one bankrupt concern purchasing another bankrupt concern in the state of Illinois. It must also be clear to the Department of Justice that the money for financing this deal is not coming direct from the Bell subsidiary company involved, but is being furnished by the American Telephone & Telegraph C. thru its agents in order to help break down Independent Telephony in the state of Illinois. It is difficult for me to understand the Dep't of Justice's attitude toward bankrupt Independent companies, in connection with the law, as stated in the commitment given to the Department of Justice by the American Telephone & Telegraph Co. If bankruptcy furnishes a means of transmutation, and is a license to violate the law, then under this condition, all a concern has got to do, in order to violate the law, as laid down in the commit [*60722*] [*CARBON COPY*]GCT #2 ment, is to become bankrupt. This may be either fictitious bankruptcy, or a purposely conveyed impression of such, in order to delude the Department of Justice. I have been trying for several months to try to convince the Department of Justice of the error of this position in connection with this, the question of acquisition of Independent territory by the Bell Company. My letters have not been replied to, and in a letter of the Assistant Attorney General to Hon. Jno. K. Shields, it was intimated that my letters were offensive to the Department. I mustnow make a further demand upon the Dep[a]artment of Justice in regard to the commitment as stated in a pamphlet furnished by the Department to myself. As far as I have been able to determine, the Department of Justice has considered that the Department of Justice, alon, is the sole judge of all of these merger matters. The commitment, in the second paragraph, states as follows;" the question as to the course to be pursued in such cases will be submitted to your Department and to the Interstate Commerce Commission for such advice and directions, if any, as either may think proper to give, due regard being had to public convenience and to the rulings of the local tribunals. I respectfully call the attention of the Assistant Attorney General to the fact, that so far as any of these mergers are concerned, that if the Interstate Commerce Commission had been consulted, we have no knowledge of that fact. The Commitment of the American Telephone & Telegraph Co. places the responsibility upon two governmental Department[t]s, the Department of Justice and the Interstate Commerce Commission. The authority seems to [*60723*] [*CARBON COPY*]GCT #3 have been assumed by one Department without consulting the other. I am taking the liberty of sending a copy of this letter to each of the Interstate Commerce Commissioners, and asking them if the mergers in the past have been submitted to them by the Department of Justice, as they are a party to this matter, and I respectfully submit my protest against the proposed merger and respectfully ask that the matter be submitted to the Interstate Commerce Commission, and that their consent be obtained before this merger, or any other merger, whether they have been permitted prior to this time or not, be considered by them, and their ruling also be obtained, before, to my mind,they can be allowed. I have taken the liberty, also, of sending the President of the United States copy of this letter, and ask him respectfully to have the Department of Justice acknowledge the same. Very respectfully yours, Terry W. Allen TWA/LG [*60724*] [*CARBON COPY*][*[92]*] [*THE WHITE HOUSE APR 15 1916 RECEIVED*] [*DEPARTMENT OF JUSTICE QUI PRO DOMINA JUSTITIA SEQUITUR*] Office of the Attorney General, Washington,D.C. April 14, 1916 [*C,L.S. APR 15 1916 ACK'D*] The President, The White House. Dear Mr. President: I have your letter of the 13th instant transmitting a letter to you from Terry W. Allen, of Corinth, Mississippi, complaining of the action of the Department of Justice in relation to the commitment of the American Telephone & Telegraph Company expressed in its letter to the Attorney General dated December 19, 1913. You will probably recall the circumstances under which this commitment was entered into. When the present Administration came into office it found pending in the Department of Justice complaints by the so-called independent telephone companies to the effect that the American Telephone & Telegraph Company and its associated companies, commonly known as the Bell System, were attempting to bring under one control the means of communication by wire throughout the entire country, not only through the expansion and extension of their own system but by the acquisition of competing lines in violation of the Federal [*60725*]The President --2. Anti-Trust laws. The Department investigated these complaints and found that they were not without basis. In July, 1913, a suit was instituted under the Anti-Trust Act at Portland, Oregon, against companies comprising the Bell System and others, charging them with having entered into a combination to monopolize the means of telephonic communication in and between the States of Oregon, Washington and Idaho. Some time after the institution of this suit the officers and directors of the Bell System indicated that they were desirous of bringing its organization and business throughout the country generally into harmony with the Anti-Trust laws as construed by the Department of Justice, and to that end conferences were had between officers of the Department of Justice and officers of the Bell System. At the same time the views of the principal complainants were sought as to what measures were necessary in order to restore competitive conditions in this field. In compliance with the suggestions of the Attorney General, formulated as a result of these conferences, the Bell System committed itself to the following course of action, briefly stated: First. It agreed to dispose of its entire holdings of the stock of the Western Union Telegraph Company in such 60726The President --3. way that the control and management of the latter would be entirely independent. Second. It agreed not to make any further acquisitions, directly or indirectly, of competing telephone systems. Third. It agreed to connect its long distance wires with the local exchanges of independent companies upon terms and conditions which were outlined. I enclose herewith a pamphlet which contains this commitment in full, and also Attorney General McReynolds' letter of acknowledgment and your letter of approval. This disposition of the complaints against the Bell System satisfied the complainants and met with almost universal approval, as you may happen to recall. It seems, however, that the writer of the letter which you have transmitted to me disapproved of the whole arrangement. The following statement from a speech of his, a copy of which he sent to Attorney General McReynolds, discloses his attitude: The question is why did the Government agree to a compromise and why did the Government when it had once started suits upon the Pacific Coast practically abandon them? I think the secret of this matter is that the A. T. & T. Company have some excellent legal talent that they have used with wonderful effect. The Government like a hungry fish, swallowed Mr. Kingsbury's bait, hook, line, and pole, and [*60727*]The President --4. the President and the Attorney General both wrote letters and commended the A. T. & T. Company for its magnanimous action. He has also written innumerable letters on the subject, which were often discourteous and at times offensive. He is not to be taken seriously, and I would simply have filed his letter had you not asked for a statement from me on the subject. The statement in his letter to you that the Bell Company has been permitted to violate its commitment is, of course, not true. If there have been any violations of the commitment the Department has no knowledge of the, and in justice to the Bell Company I should state that so far as I can judge it has shown every disposition to comply fully with the commitment. His further statement that the protests of independent companies have been considered as offensive is as silly as it is false. The fact is that where questions have arisen under the commitment associations representing the independent telephone interests have been invited by the Department to express their views. There is no question that since the commitment was entered into the Bell Company has acquired here and there some independent telephone properties – none of them of any great importance – and that the Department had know– [*60728*]The President -- 5. ledge of the acquisitions. In fact, the Bell Company itself gave the information and gave it in advance so that if the Department were of opinion that the acquisitions would violate the commitment it might object in time to prevent the transaction. In none of these cases, however, was there any violation of the commitment. The property acquired either was not competitive in any real sense or the acquisition was but an incident of an exchange of properties ordered by the State public service commissions for the purpose of satisfying the just demands of local communities for efficient and economical telephone service. A typical case was the acquisition by the Bell Company of the property of a small independent company at Clarksville, Tennessee. The Clarksville Company was in sore financial straits and the stockholders desired to sells its property and retire from business. They asked the Bell Company to buy. The Bell Company refused to do so without first stating the matter to the Department of Justice and giving it the opportunity to determine whether the purchase would be in violation of the Bell Company's commitment. Mr. Allen protested against the purchase. The Department made an investigation and ascertained that in no real sense was the Clarksville Company a competitor of [*60729*]The President --6. the Bell Company, that it was in financial difficulties and could not get the necessary capital to carry on its business, and that it either had to sell its property to the Bell Company or go out of business and then dispose of its property at a great loss as junk. Of course, therefore, the Department took the view that the purchase would not be a violation of the commitment. I may say, further, that upon being advised that the Bell Company contemplates acquiring the property of any independent company, the practice of the Department is to notify the principal independent telephone association, so as to give it an opportunity to express its views before any action is taken. In no case that I can recall has the association made any protest. Finally, on January 19, 1916, immediately after Mr. Allen first made the charge that the commitment of the Bell Company "has never been lived up to either by the Government or the Department of Justice", the charge was brought to the attention of the independent telephone association, of which Mr. Allen is a director, with the statement that if the commitment has been violated it has been without the knowledge of the Department, and with the request that if the association knew of any instances of violations that it bring them promptly to the attention [*60730*]The President ––7. of the Department. The association acknowledged receipt of this letter but has never to this day charged that the commitment has been violated in any instance. In short, Mr. President, I am not aware of any step which this Department has omitted towards ensuring the faithful execution of this commitment. Mr. Allen's recent letters have been ignored because the Department became convinced that they were not written in good faith, but for the purpose of giving annoyance. I return herewith Mr. Allen's letter to you with its enclosure. Sincerely yours, T.W. Gregory Attorney General. [*60731*][*[92]*] My dear Sir: Upon receipt of your letter of April fifth, I made careful inquiry of the officers of the Department of Justice and have today received from them a full and detailed statement of the matters about which you have made complaint. I must say to you very frankly that after looking into the matter with as much care as possible in the circumstances, I am convinced that you have no just grounds of complaint, either against the Department or against those who represent it. I am sorry you should have received the impression of neglect or discourtesy. Very truly yours, Mr. Terry W. Allen. Corinth, Mississippi. [*60732*][*[92]*] April 17, 1916 My dear Mr. Attorney General: Thank you very warmly for your patient and careful answer to my inquiry about the matter which Mr. Terry W. Allen, of Corinth, Mississippi, brought to my attention. I suspected that it was a case of the kind that it turns out to be, but I am glad to be fortified by your full statement. Always Faithfully yours, Hon. T. W. Gregory, The Attorney General. [*60733*] TERRY W. ALLEN, President W. H. KIER, Vice-President W.N. McANGE, JR.. General Manager THE ALLEN PROPERTIES EXECUTIVE OFFICES: Telephone Building STANTONVILLE TELEPHONE CO. CENTER POINT TELEPHONE CO. BALDWYN HOME CO. SUN TELEPHONE & TELEGRAPH CO. BOONEVILLE HOME TELEPHONE CO. SOUTHERN TELEPHONE & TELEGRAPH CO. [*ACK'D APR 21 1916 G.T.[?]*] [*[?]*] CORINTH, Miss., 4/19/16 [*THE WHITE HOUSE APR 21 1916 RECEIVED*] Hon. Woodrow Wilson, Pres. U. S. Washington, D. C. My dear Mr. President: [*9[?]*] Your letter of the 17th. inst. is just received and carefully noted. I want to say, in reply, thereto, that in your position, I would do just exactly what you have done. Your position is eminently correct in up-holding the Department of Justice. I cannot see how you could have taken any other position under the circumstances. I feel very certain that since you have investigated this matter, that from now on the same will be considerably clearer to you, and the developments of the next few months will determine whether or not the position assumed by myself has any merit in it. I can very thoroughly understand the very serious and difficult problems that are facing the National Government at this time, and I want to say that under these circumstances, I am deeply grateful to you for looking into this matter at all. The Industry that I represent is at the present time having considerable trouble, but I feel very certain that in the next few months, we will be in a position to adequately ley out our position, so that there can be no misunderstanding of the same. All of the Independent Telephone Journals in the 60734Hon W. W. Page 2 THE ALLEN PROPERTIES country have awakened to the danger that threatens them. There[s] is not an Independent Telephone Journal in the country but what sees this danger. I have tried to convey this condition to your mind as briefly as possible. I regret very much that it was necessary for me to call your attention to the action of the Department of Justice, and I still have hopes that they can be awakened to the serious danger that confronts the Independent Telephone Industry. It is not my intention to try to make a case against the Department of Justice. I feel very certain that if I were to try to formulate a long document, that it would be trespassing upon your patience, and it would not be just or right. I am sincerely grateful to you for looking into the matter, and I trust that time will prove the correctness of my position. Very respectfully yours, Terry W Allen [*signature*] TWA/LG [*60735*]TERRY W. ALLEN, President W. H. KIER. Vice-President W.N. McANGE, Jr. General Manager THE ALLEN PROPERTIES EXECUTIVE OFFICES: Telephone Building LOCAL AND LONG DISTANCE T&T TELEPHONE SYSTEM Co THE ALLEN PROPERTIES STANTONVILLE TELEPHONE CO. CENTER POINT TELEPHONE CO. BALDWYN HOME TELEPHONE CO. SUN TELEPHONE & TELEGRAPH CO. BOONEVILLE HOME TELEPHONE CO. SOUTHERN TELEPHONE & TELEGRAPH CO. CORINTH, MISS., 2/2/17 [*92*] [*THE WHITE HOUSE FEB. 4 1917 RECEIVED*] Hon. Joseph Tumulty, Sec'y to the President, Washington, D. C. My dear Mr. Tumulty: I understand that the President of the United States has answered the recent coummnication sent him by [*F. B. MacKinnon*] the United States Independent Telephone Association and if not inconsistent with the President's desire, I would deeply appreciate it if I can have copy of this letter in reply to the United States Independent Telephone Association. Please understand that I have no desire to have a copy of this letter if you do not deem that it is proper to send me one. Very sincerely yours, Terry W Allen TWA:LG [*60736*]143339. 76[92] GCT-s-t *THE WHITE HOUSE FEB 10 1917 RECEIVED* *DEPARTMENT OF JUSTICE* Office of the Attorney General, Washington, D.C. [*Wrote Mr Allen 2/10/17*] February 9th, 1917. Dear Mr. Tumulty: Referring to your letter of the 5th instant, I have not seen the President's letter to the United States Independent Telephone Association, a copy of which has been requested by Mr. Terry W. Allen. The first thought that occurs to me, however, is, why did not Mr. Allen address his request to the Association, of which he is a member? The experience of this Department with Mr. Allen has made it necessary to deal with him at arms length. If you will refer back to the letter which I wrote the President on April 14, 1916, in relation to one of Mr. Allen's complaints, it may assist you in determining your course. Yours very truly, T. W. Gregory Attorney General. Hon. J. P. Tumulty, Secretary to the President, The White House. [*60737*]COONEY, E. J., Providence, Rhode Island. May 5, 1917. Wants to install the Select-O-Phone an inter-communicating telephone device in the White House. See Screw Machine Products Corporation. [*92*] 60738THE CHESAPEAKE AND POTOMAC TELEPHONE COMPANY ACK'D JUN 251917 W. F. J. 15 Dey Street J. L. Swayze General Counsel New YORK. June 22, 1917. Please refer to file no. Hon. Joseph Tumulty, Secretary to the President, Washington, D.C. Dear Joe: I am writing you merely for the purpose of confirming our conversation over the telephone and so that you may have before you a picture of the situation. The District of Columbia has fixed a valuation of our telephone property within the District and has had a hearing upon the proper rate of return upon such valuation but has not determined what the rate of return should be. The Commission now notifies us to produce a large amount of detailed information which is necessary for a proper consideration of the case. Under ordinary conditions the supplying of this information would not be particularly difficult and we would gladly comply with the request of the Commission and the hearing could be held on July 7th, but we are confronted with an unprecedented situation and our forces are over-worked not only in performing their ordinary duties but in performing the extra work which is entailed by the requirements of the Government. In fact, we do not expect that our forces in Washington will be able to have a vacation this summer. We consider the Government's requirements entitled to first consideration and in order to supply the information requested by the Commission it will be necessary to have clerks and executive officers devote time and attention to preparing the necessary information and testifying. Of necessity, 60739 -2- this would interfere with their other work. The truth is that the emergency situations created by this war are such that we have little or no time for anything else. The extraordinary requirements for telephone service in Washington, Wrightstown and various other parts of our territory demand very careful consideration, particularly as we have very great difficulty in obtaining material and supplies. Our expenses are rapidly increasing out of proportion to the increase in the business and this will continue until we come to a settled basis and is, of course, inherent in the situation. To illustrate this concretely - in 1915 our total telephone expense in the District of Columbia was $1,269,931.00; in 1917 we estimate that this item will increase to $1,690,400.00, and in 1918 will be nearly two million dollars. In order to meet the requirements of service we have been compelled to draft operators from other parts of the country and put them in Washington. We will also have to meet the requirements at Wrightstown and the other military cantonments. the net additions to the capital account of the Company have increased from $113,000. in 1913 to $1,093,800. in 1917. We are doing the best we can to adjust ourselves to this situation and we feel that we ought not to have any unnecessary burdens put upon us. That we desire is that the further proceedings in the investigation of our rates in the District of Columbia be put off until some time in the fall as we do not see how it is possible for us to undertake the necessary work of supplying the information required by the Commission and preparing our own evidence and at the same time 60740-3- carry on all the other work we now have on hand. If there is a letup in the present situation we can take care of the matter in a short time this fall but we do not feel that we ought to be tied down to a specific date for the reason that we do not know what new extraordinary demands will spring up. We are not asking for this delay for the purpose of putting off a consideration of the case but on account of the extraordinary conditions. If it is finally determined that the rates are too high and new and lower rates are established, we have no objection to having such lower rates made retroactive to August 1st. Of course, we are convinced that with the increased capital charges and with the increased expenses a reduction in the rates would be unreasonable under existing conditions, Thanking you for your kindness in this matter, I remain Yours very truly, John Swayze 60741 THE WHITE HOUSE FILES MEMORANDUM. To JPT Writer: Brownlow, Comenr Louis, June 29, 1917 Subject: Refers to conversation and express regret that he overlooked matter and forgot to write letter. Impending departure of Col Kutz makes it necessary to complete pending rate cases, and does not think it will require much work to get data ready by July 7 as Mr. Swayze seems to think. Has no desire to act with undue haste. [*92*] Referred to JL Swayze, 15 Dey St., New York City, with this penciled note: “Dear John. What do you think of the enclosed? [???]X TUMULTY” Date: July 3, 1917 6074215 DEV STREET NEW YORK [*92*] [*0*] [*ACK'D JUL 10 1917 W.F.L*] July 9, 1917. Dear Joe: I am in receipt of the letter from Commissioner Brownlow. They forced us to a hearing on Saturday but it developed at the hearing that they had misconceived the whole situation and that it would be necessary for them to go into the taking of testimony fully. In order that they might be prepared to submit their witnesses to cross-examination, the case was adjourned to some date between the fifteenth of August and the first of September. The net result of the whole situation will be that they will be delayed longer than if they had accepted our proposition. Please accept my thanks for your kindness in the matter. Very truly yours, John L Swayze Hon. Joseph P. Tumulty, Secretary to the President, The White House. 60743UNITED STATES CIVIL SERVICE COMMISSION, WASHINGTON, D.C. August 24, 1917. The President: We have the honor to recommend that the civil service rules be so amended as to exempt appointment to the position of telephone operator from the provisions of the rules relating to the apportionment. For many years it has been difficult to get satisfactory telephone operators. It is the uniform testimony of departmental officials that a knowledge of local conditions and of government organization is highly desirable, if not necessary, on the part of telephone operators in the several executive establishments at Washington; and that as each of the departments usually has but one or two positions of telephone operator, the training of a new appointee from outside the District of Columbia results in considerable inconvenience and embarrassment. The Commission has been reluctant to recommend the removal of these positions from the apportioned service, and has deferred such action for several years. At the present time, however, the exception appears to be necessary. Two examinations have already been held for the position of telephone operator this year, and another one will soon be required. It is at present most important that the operators have knowledge of local conditions such as they would secure through residence in this city and through the operation of local switchboards. For these reasons the Commission recommends that the appointments be exempted from the apportionment, and submits herewith a 60744 -2- proposed amendment of the rules which will accomplish that purpose. We have the honor to be, Very respectfully, Commissioners. 60745BOWLBY, J. W. Brantford, Ontario, Canada, October 1, 1917. invites the President to attend unveiling ceremonies of the monument to commemorate the invention of the telephone, Brantford, Ontario, Canada, October 24, 1917. See card filed -- Inv. "B" [*92*] [*60746*] POWELL, Dr. Lyman P., New York City, October 24, 1917. Has just returned from Europe and encloses article which he has prepared for Review of Reviews entitled, New Aspects of Education in England and France. See 3666 [*92*] [*60747*]SECRETARY OF STATE November 21, 1917. Submits application of the Intercontinental Telephone and Telegraph Company for permission to land a submarine cable at Key West for communication between the United States and Cuba. See Intercontinental Telephone and Telegraph Co. [*(card)*] [*92*] [*60748*]SECRETARY OF STATE, November 21, 1917. Submits supplication of Michigan State Telephone Co., to lay a cable in the Detroit River to a point in Canada. See card -- Michigan State Telephone Co. [*92*] [*60749*]BAKER, Hon. Newton D., Secretary of War, Nov. 26, 1917. Encloses a telegram from Felix Frankfurter, San Francisco, California, re the settlement of the telephone situation, covering the entire coast, for the period of the war. See 4341 [*92*] [*60750*] American Federation of Labor Executive Council President, Samuel Gompers Secretary, Frank Morrison Treasurer, Daniel J. Tobin, 222 E. Michigan St., Indianapolis, Ind. First Vice-President, James Duncan, Hancock Bldg., Quincy, Mass. Second Vice-President, James O’Connell, A. F. of L. Bldg., Washington, D. C. Third Vice-President, Jos. F. Valentine, Commercial Tribune, Cincinnati, Ohio Fourth Vice-President, William Green, Bush Temple of Music, Chicago, Ill. Fifth Vice-President, Frank Morrison, Indianapolis, Ind. Sixth Vice-President, Frank Duffy, Indianapolis, Ind. Seventh Vice-President, William Green, 106 East High Street, Detroit, Mich. A. F. OF L. BUILDING LONG DISTANCE TELEPHONE, MAIN 3871-2-3-4-5-6 CABLE ADDRESS, 'AFEL.' VLY Washington D.C. March 13, 1918. [*ACK'D MAR 15 1918 C.L.S.*] [*92*] [*THE WHITE HOUSE MAR 15 1916 RECEIVED*] Sir: Your attention is respectfully called to the following preambles and resolution adopted by the recent convention of the American Federation of Labor: "WHEREAS, During the period of the war, a low long distance telephone and telegraph rate should be established to all training camps; and WHEREAS, Such low rates would keep us in closer touch with our loved ones; therefore, be it RESOLVED, That the President, Congress, and the Council of National Defense be urged to call a conference of the various telephone and telegraph companies for the purpose of bringing about closer cooperation between the companies, better interconnection, and lower rates to all training camps in the United States." In conforming to the instructions of the convention by conveying the above to you, may I at the same time express the hope that you will favor me with the benefit of your advice in regard to the subject matter of the preambles and resolution as above quoted? Respectfully yours, President, American Federation of Labor. Sam'l Gompers, President, American Federation of Labor. Honorable Woodrow Wilson, President of the United States, Washington, D. C. [*60751*] NOW FOR THE THREE MILLION MARKCAINE, J. C., et al, Portland, Ore., March 14, 1914. (telegram) Requests the President to address, by phone, an illuminated bell to be given by Portland (Ore) Electrical Industry, April 4- 6, 1916, The fourth night is to be dedicated to the President, Army and Navy, the fifth to the Red Cross and the sixth to the Third Liberty Loan. See Portland Electrical Industry [*92*] [*60752*][*[92]*] 15 March, 1918 My dear Mr. Gompers: I have your letter of March thirteenth, embodying the resolutions of the American Federation of Labor with regard to low long distance telephone rates. The object sought to be accomplished seems to me most desirable, and it occurs to me to suggest that you take the matter up with the Postmaster General. He is more familiar than I am with the personnel of the companies that control the telephone lines, and I feel confident would be willing to bring about such a conference as is suggested in the resolutions. You are, of course, quite at liberty to show the Postmaster General this letter. Cordially and sincerely yours, Mr. Samuel Gompers, American Federation of Labor. [*60753*]GADDIS, Earl B., Washington, D. C., April 25, 1918. (addressed to T. W. B.) Quotes telegram addressed to Sen. G. M. Hitchcock, from the Omaha Chamber of Commerce, inviting the President to hear (over phone) Omaha sing "America", April 26th. See Omaha Chamber of Commerce [*92*] [*60754*]COOKINGHAM, Edward, Portland, Ore., October 9, 1916. (telegram) Says Oregon is second over the top in the Fourth Liberty Loan and wants the President to hear cheers of people ever phone October 12th. See 4000 [*92*] [*60755*] COOKINGHAM, Edward, Portland, Ore., October 9, 1918. (telegram) Says Oregon is second over the top on the Fourth Liberty Loan and wants the President to hear cheers over phone October 12th. See 4000 [*92*] [*60755*]KEEVIN, Edward, Boston, Mass., October 24, 1918. Requests the Provident to address, the Liberty Loan Newsboys Association, at a Banquet to be held in Boston, Mass., about November 1st. See Liberty Loan Newsboys Association [*92*] [*60756*] SPARKS, William, Jackson, Mich., November 20, 1918. (telegram) Requests the President to address, by phone, a meeting of mothers of soldier boys, Jackson, Mich., November 23, 1918, on which occasion they will be presented with gold star service pins. See 4508 [*92*] [*60757*] [*MAY 21 1919*] ak Chas. H. Spittle, Pres. Jacksonville, Florida., 5-18-19 telegram Central Trades Council, Re Southern Bell Telephone Company discharging girls because of membership in union. Suggests possibility of strike and complains of discrimination. [*92*] Postmaster General [*60758*] [*by C.E.J.*][*[92]*] May 14, 1919. Miss Cora Moseley, 542 Winters Place, Jacksonville, Florida. My dear Madam; Your telegram of the 4th instant relative to the notice which has been received by 38 employees of the Southern Bell Telephone Company that their service will no longer be required after May 18th, was received and a report called for promptly. Our inquiry discloses the fact that these operators were notified that their services were no longer desired after a certain date only after each of them individually had stated that they intended to leave the service, but would not state they expected to leave. ‘The officials of the company told these operators that as they had expressed their intention of leaving the service, but could not or would not tell when, and furthermore as they were not going to give notice at another time, the officials were obliged to consider this as definite notice from them that they were going to leave the service, and as it was necessary that the company have at all times efficient operators to render the service they, the company, would make the necessary arrangements to replace the operators and they should consider his statement as fifteen days notice that they were going to leave the service and that after May 19th their positions would be filled by others. It therefore appears that the notice received by these operators that their services would be dispensed with on May 19th is the direct outcome of their expressed intention to leave the services of the company. Respectfully, (Signed) J. C. KOONS First Assistant Postmaster General. [*607593*]copy (telegram) (Postal Co.) Jacksonville, Fla. May 18, 1919. 87bmmr 1123pm 47 N.L. 4 extra J. P. Tumulty, Secy White House, Washington, D. C. Southern Bell Telephone Co. discharging girls solely because of membership in Union. Stop. Action of company may cause strike and discontinuance of service. Stop. Action of company plain violation of Burleson order against discrimination whether union or non-union. Stop. We appeal to President. Chas. H. Spittle, President, Central Trades Council. [*60760*][*[92]*] POST OFFICE DEPARTMENT FIRST ASSISTANT POSTMASTER GENERAL WASHINGTON May 23, 1919. Hon. Joseph P. Tumulty, Secretary to the President. My dear Mr. Tumulty: The matter referred to in the telegram dated the 16th instant, addressed to you by Chas. H. Spittle, President of the Central Tredes Council, Jacksonville, Florida, was fully covered by an investigation which we recently had of the telephone situation at Jacksonville, Florida, and I am handing you herewith, for your information, copy of a letter which I wrote to Miss Cora Moseley on May 14th in response to an inquiry from her on the 4th instant. Sincerely yours, J. C. Koons First Assistant Postmaster General. enclosure b-do [*x*] [*22*] [*60761*] [July 11, 1919] 92 TELEPHONE STRIKE. --- Jacksonville, Fla. June 27, 1919. - Reported that trouble is expected. Direction given that such steps as seem advisable be taken. June 28, 1919. - Investigator reports "I walked by the building and everything was exceedingly quiet." Nothing further reported. St. Louis, Missouri. June 27, 1919 - Reported violence and damage to plant feared. Investigator reports that there have been no acts of violence or intimidation. July 3, 1919 - Reported that two cables have been out and an employee assaulted. July 5, 1919 - Upon request, data bearing on question whether telephone lines are still under Government operation forwarded. Nothing further reported. Los Angeles, Calif. June 30, 1919 - Reported that acts of violence are being committed. Directions given that such steps as seem advisable be taken. -1- 60762 July 2, 1919, - Investigator reports conditions satisfactory except at Bakers Field. Nothing further reported. San Francisco, Calif. June 30, 1919. - Reported that acts of violence are being committed, and direction given to take such steps as seem advisable. July 1, 1919. - Investigator reports that no acts of violence have been reported, and that attorney for company states they have no complaints to make. Nothing further reported, Reno, Nevada. July 3, 1919, - Advised that City of Reno desires the appointment of a receiver to operate company and pay wages demanded, and inquiry is made as to whether there is objection to that course. Instructions given that that course would be taking possession from Government, and therefore should be resisted. July 9, 1919, - Reported that public service commission demands that company show cause why it is furnishing unsatisfactory service. United States Attorney instructed to represent at the hearing the position of the Postmaster General, as expressed in the following telegram addressed by him to the Mayor of San Francisco and other -2- 60763Pacific Coast cities: The Wire Control Board, of which the Postmaster General is chairman, is still in existence and functioning, and will promptly pass upon all complaints presented by telephone employees. Full hearing of both sides with opportunity for presentation of all phases of questions of increases wage scale and when effective and so forth, will be decided strictly upon the merits, with absolute justice to all parties. Wire Control Board is a Governmennal agency with duty imposed upon it to settle such controversies, and to set this board aside and create another agency would be a confession that the Government could not be relied upon to do justice. To take such action would be indefensible. The suggestion of arbitration by outside parties on the coast only tends to confuse and delay a satisfactory settlement of this controversy. The operators should return to work with the assurance that there will be prompt consideration given to the matter by the Wire Control Board as soon as they are ready to fully present their case. Nothing further reported. Louisville, Kentucky. July 7, 1919, Reported that cables have been cut and other damage done. Directions given that investigation and report as to necessity of action by the Government be made. July 8, 1919, - Reported that five warrants have been issued and accused persons hela for grand jury; that effect thereof is wholesome, service being maintained, situation well in hand and normal conditions near. Nothing further reported. -3- 60764 East St. Louis, Illinois. July 8, 1919, - Reported that there is some trouble. Instructions given that investigation and report be made concerning situation. July 9, 1919, - Investigator reports that his presence on the scene and an interview with the manager of the company discloses that there has been no trouble. Nothing further reported. July 11 1919, -4- [*60765*] Mr Tumulty from C B Ames [*teleg sit*] [*92*] [*7*] [*60766*]THE CHESAPEAKE AND POTOMAC TELEPHONE COMPANY S.E. COR. OF G ST. AT 13TH ST., N.W. WASHINGTON, D.C. L. D. MAHON DISTRICT MANAGER November 24th, 1919. [*W.P.W.*] [Mr. Smithers,] Executive Mansion, Washington, D.C. Dear Sir: In accordance with your conversation with our Mr. Caulfield of recent date, I am sending you herewith a copy of a letter from the Treasurer of the United States, in which he states that your check #6669 has not been paid. We will appreciate it if you will favor us with a duplicate check covering the charges for toll service during the month of June, 1919. Very truly yours, L D Mahon District Manager. AJ JES/AJ [*ackd 11/25/19 Notified Treas. to stop payment*] [*92*] [*60767*][92] (COPY) TREASURY DEPARTMENT. November 19th, 1919. GFA:T L.D.Mahon, Dist.Mgr., Chesapeake & Potomac Telephone Co., Washington, D.C. Sir: With reference to your letter dated November 6,1919 concerning check #6669, issued Sept. 3, 1919, over symbol 91001, in your favor for $84.10, you are advised that the records of this office show that this check has not been paid up to and including November 12, 1919. Respectfully, (SD) John Burke, Treasurer. 60768WOODWARD, J. O., WASHINGTON, D. C., January 24, 1921. Wants the President to address, by phone, the National Silk Manufacturers and Growers of America, February 7, 1921. See National Silk Manufacturers 92 60769TELEPHONE DATA. Statement Showing Average Rate Received For Local Calls, the Number of Calls per Working Telephone, Stations per Employee, Calls per Employee, Stations per Plant, and Construction Cost per Station. [*92*] Cities Cents per Call Calls per phone Phones per Employee Calls per Employee. Size of Plant Invoice per Phone New York City (m). 4.45 962 .... ...... 451,829 $109.00 Brooklyn (n)..... 4.21 875 .... ...... 152,678 145.00 Washington (d)... 4.21 823 52.0z 45,215 51,361 140.00 g Baltimore (c).... 3.53 993 .... ...... 43,000 134.00 New York Tel Co (a) 3.24 996 38.0 40,000p 1,003,593f 148.00 Philadelphia (Ind) 2.21 b 1456 42.4 61,800 34,556 347.00h Chicago (Bell).... 2.00 b 1622 41.7 67,600 504,124f 116.00 Pittsburgh (Ind)... 1.52 b 2002 30.5 61,757 14,478 450.00h Cleveland (Bell)... 1.48 b 2016 39.1 78,808 70,920 127.00 Pacific Tel. Co... 1.45 b 1928 41.6 80,280 527,400f 177.00 Indianapolis (Ind). 1.14 b 2239 48.0 107,752 14,490 188.00 Spokane (Bell)..... 1.08 b 2169 43.9 95,300 23,333 136.00 Kansas City (Ind).. 1.06 b 3375 41.9 141,465 36,092 173.00 Rochester (Ind).... 1.04b 2940 50.5 149,071 15,308 146.00 Plattsburg (Ind)... 0.94 b 2090 37.4 80,861 10,580 155.00 Buffalo (Ind)...... 0.85 a 2709 35.1 95,205 40,561 180.00 Chicago, Automatic. 0.79 b 1275 k 111.0 141,381 17,867 .....i Louisville (Ind)... 0.69 b 4040 40.6 164,163 21,128 183.00 Fort Wayne (Ind)... 0.62 b 3211 64.4 207,288 12,298 94.00 a Data 1914, New York Public Service Commission. b Data 1915, Interstate Commerce Commission. c Data 1910, the latest for city alone; Case before Public Service Commission. d Data for 1914, report to Utilities Commission. f Includes large area and many distinct plants. g Minus deductions for depreciation. Correct figure near $120 per phone. h Probably does not represent actual investment. i Data not reported. k Low utilization probably due to competing phones in same offices. z Number employees computed from 1914 report (as 972). 60770REASONS FOR MAKING POSTAL TELEPHONE EXPERIMENT IN WASHINGTON. 1. To insure the Government complete control of communication in safeguarding its executive and military affairs at the seat of Government. 2. The Postal chiefs are here and can observe directly and settle in the light of immediate experience the problems which may arise. 3. Congress can judge more readily with what efficiency and economy the experiment may be made. 4. The average local rate in Washington is abnormally high; and the resulting use by the people abnormally low (the rate is $4.21 per hundred local calls here; in Cleveland $1.48; in Buffalo 85 cents; the utilization per phone is 823 a year in Washington; in Cleveland 2016; in Buffalo 2709). 5. The masses are practically disinherited of the use of the telephone in the homes, in Washington. A single hotel near the Capitol, for example, contains more phones than are found in the ten residence blocks that surround it. 6. Postmaster General Burleson estimates that the postal surplus for 1917 will be ten millions; the physical value of the telephone system of the District of Columbia is given as less than seven millions, and this surplus, which is the profit arising from parcel post, could used to provide funds ample for purchasing the system. 7. While in a sense experimental, the postalized electrical communication is institutionally no experiment at all. Like the parcel post, for many years it has been denied its postal rights in the United States. It seems fit that the gold our youngest postal servant has brought us, be utilized to bring into general use this other, equally worthy member of the postal family. 60771File BRIEF FOR A POSTALIZED TELEPHONE IN WASHINGTON, D. C. BY DAVID J. LEWIS, M.C.Knoxville Association of Credit Men W. M. BONHAM, PRESIDENT C. M. MCCLUNC CO. W.F. ROBERTSON, VICE-PRESIDENT H. T. HACKNEY CO. T. G. BROWN, SECOND VICE-PRESIDENT BROWN-ROSS SHOE CO. NATIONAL ASSOCIATION OF CREDIT MEN ORGANIZED VIGILANTIA 1986 GEO. E. BRADFORD, TREASURER DEAVER-KENNEDY CO. A. J. PETTWAY, SECRETARY J. T. MCTEER CLOTHING CO. 93 KNOXVILLE, TENN., Feb.26,1913. Mr. Woodrow Wilson, President, Washington, D.C. Dear Sir:- At the bi-weekly luncheon of our Association, held at the Stratford Hotel, on the evening of February 25th., it was unanimously resolved, that our members (composed of the Wholesale Merchants, Manufacturers and Bankers of Knoxville,) being vitally interested in the reform of the existing Banking and Currency system, express to Congress the urgent necessity to commerce and sound credits of prompt Congressional action, when convening in extra session on April 1st. next, in framing an adequate Banking and Currency measure. As Secretary of the Knoxville Association of Credit Men, I was instructed to advise you of our great interest in this matter, and to urge upon you to use your influence and efforts to have Congress take prompt action in this matter. Your efforts in giving us relief in this matter will be very much appreciated. Yours very truly, A. J. Pettway Secretary of KNOXVILLE ASSOCIATION OF CREDIT MEN 60773 F. L. McClellan, Prest. and Treas. E. P. De Haven, Vice Prest. W. O. Hawkins, Secy. McClellan Paper Company Jobbers, Manufacturers & Importers Printing Envelopes Stationery Paper Wrapping Bags Roofing Duluth Fargo Minneapolis MACK McClellan Paper Co. Wholesale Minneapolis 700-712 Fourth St. South Minneapolis, Minn. Feb 27 1913- Hon Woodrow Wilson- Trenton N.J. Dear Sir;- The Commercial and Banking interests in this part of the country, we believe are almost universally in favor of early legislation on Banking and Currency. We earnestly trust that the matter can be brought up during the special session of Congress and that the matter will be urged by you. Thanking you for the time given to the consideration of this letter, and hoping that you will see your way clear to recommend such legislation in your message to Congress, we remain, Respectfully yours McClellan Paper Company W. O. Hawkins Secretary WOH-CC Printed on 17x22-20 AVON BOND [[shorthand]] [*Ack 3/6/13.*] [*THE WHITE HOUSE Mar 5 - 1913 RECEIVED*] [*93*] [*60774*] *93* * THE WHITE HOUSE MAR 4 1913 RECEIVED* [*acked 3/6/13*] ELMER E. FISHER, President FRANK L. MOWRY, Vice-President WM. S. HUGHES, Sec'y & Treas. IF IT BEARS THE GOPHER BRAND IT MUST BE GOOD Dodson, Fisher, Brockmann Co. MANUFACTURERS AND JOBBERS OF HARNESS AND SADDLERY 15-17 AND 19 THIRD STREET NORTH MINNEAPOLIS, MINN. February Twenty eighth, 1913. Hon. Woodrow Wilson, Trenton, New Jersey. Dear Sir:-- The newspapers have reported that you will recommend as one of the important matters to be taken up by the Congress in special session, the matter of banking and currency legislation. If you have decided to recommend such action upon Congress, we wish to congratulate you upon the stand taken, However, if this report is not true and the matter has not been decided, we wish to urge upon you the importance of this legislation. We think it the most important question before the people of the country at this time. Yours truly, Dodson, Fisher, Brockmann Co. W S Hughes Secretary & Treasurer. WSH/F WE GUARANTEE OUR “NORMAN GEM” COLLARS TO FIT MORE HORSES PERFECTLY THAN ANY OTHER MAKE. EXCLUSIVE AGENTS FOR THE CELEBRATED “VICTOR OAK HARNESS LEATHER" 60775SALISBURY & SATTERLEE CO. MANUFACTURERS OF BEDDING. S & S TRADE MARK. IRON BEDSTEADS & SPRING BEDS. 201-219 MAIN ST. S. E. [*Ack 3/6/13*] Minneapolis, Minn. Feb. 28, 1913. [*93*] [*THE WHITE HOUSE MAR 5 1913 RECEIVED*] Hon. Woodrow Wilson, Trenton, N. J. Dear Sir: In the interests of commerce and business in the United States, we trust that you will be able to arrange to take up Banking and Financial Currency Legislation in the special session of the new Congress. Every business man feels that at the present time he is menaced by an impending disturbance of business on account of our Banking and Currency system; and if a solution of the problems confronting the Banking and Currency Committees can be found in the near future, no time or expense should be spared to put into effect the very much needed changes. Trusting that you can consistently support our request, we remain Yours very truly, SALISBURY & SATTERLEE CO. Per {signed] [*Fred R Salisbury nt*] FRS/I [*60776*][*BUTLER BROTHERS WHOLESALERS OF GENERAL MERCHANDISE NEW YORK CHICAGO ST. LOUIS MINNEAPOLIS DALLAS SAMPLE HOUSES BALTIMORE, OMAHA, SEATTLE, SAN FRANCISCO, CINCINNATI, KANSAS CITY, MILWAUKEE Butler Block MINNEAPOLIS*] 3—1—13. [*shorthand*] [*acnd 3/8/13*] [*Message suggestion*] [*THE WHITE HOUSE MAR 5-1913 RECEIVED*] Hon. Woodrow Wilson, Trenton, New Jersey. Honored Sir: There is hardly a more important matter than that of Banking and Currency Reform that could come before Congress during the special session soon to convene. I respectfully urge that your influence be exerted to have it brought before the Senators and Representatives in the new Congress during the special session Yours very truly, Fred P Butler [*signature*] FPB: MH [*60777 WE SELL TO MERCHANTS ONLY*]PRESIDENT - W. F. NORMAN FAIRBANKS MORSE & CO. Vice-President—E. L. MYERS Western Electric Co. Treasurer—B. A. WILCOX OMAHA NATIONAL BANK Secretary—E. G. JONES 408 MERCHANTS NATIONAL BANK THE OMAHA ASSOCIATION OF CREDIT MEN Affiliated with the National Association of Credit Men, having similar Associations in all the trade centers of the United States VIGILANTIA [*ACK'D MAR 10 1913 C.T.H.*] [*93*] [*Message suggestions*] Omaha, March 1, 1913 Hon. Woodrow Wilson, President Elect, Washington, D. C. Dear Sir:- At the regular meeting of the Omaha Association of Credit Men, the following resolutions were passed unanimously. WHEREAS: The business and financial interests of our nation seem to be almost unanimous that some change or modification of our existing Banking and Monetary system should be made. WHEREAS: The delay to consider and the constant agitation of the Monetary question tends to unsettle and render uncertain the financial conditions throughout the country, therefore be it RESOLVED: That the Omaha Association of Credit Men, representing over one hundred business institutions in Omaha, South Omaha, Nebraska, and Council Bluffs, Iowa, at the regular meeting in Omaha, February 20th, 1913, recommends that the Congress of the United States at the special session to be held in April take some action to relieve the situation and not defer the matter until the regular session in December. RESOLVED: That copies of this resolution be sent to the President-elect, Hon. Woodrow Wilson, Hon. Curtis Glass, Chairman of the Banking and Currency Committee and to each of the Representatives and Senators in Congress from Nebraska. THE OMAHA ASSOCIATION OF CREDIT MEN W. F. Norman President. E. G. Jones Secretary. EGJ-BP 60778VIGILANTIA Utica Association of Credit Men UTICA, N. Y. [*acked 3/8/13*] [*93 message suggestion*] [*THE WHITE HOUSE MAR 5 1913 RECEIVED*] A. H. DOBSON, President, Charles Millar & Son Co. H. G. NEWCOMER, Vice-President, Eureka Mower Co. G. A. NILES, Treasurer, Oneida National Bank. FRED W. WIENKE, Secretary. Board of Directors: C. W. OATLEY, Utica Knitting Co. F. W. SESSIONS, F. W. Sessions Millinery Co. A. O. FOSTER, The American Tailoring Co. J. B. GEER, Wald-Kendrick Co., Inc. March 3, 1913. Hon. Woodrow Wilson, Washington, D.C. Dear Sir: In accordance with instructions, I enclose herewith a certified copy of resolutions adopted by the Utica Association of Credit Men through their Committee on Banking and Currency, which I trust will receive your favorable consideration. Yours very truly, [signed] [*Fred W. Wienke*] Secretary, Utica Association of Credit Men. [*60779*]WHEREAS, The Utica Association of Credit Men believes that our Banking and Currency Laws are a breeder of panics and a menace to our entire commercial structure, and, [*93*] WHEREAS, This Association deems the reform of such Banking and Currency Laws to be of the greatest importance, and believes that prompt consideration of the subject should be given by Congress, and now, therefore, be it RESOLVED, That the Utica Association of Credit Men, a branch of the National Association of Credit Men, through its Committee on Banking and Currency, and upon full authority from the Association, given in a regular meeting held February 24, 1913, does go on record as favoring the consideration of the reform of our Banking and Currency Laws at the coming special session of Congress; that we favor such action as will give us an adequate Banking and Currency system with Centralized Reserves, or Reserves with Centralized Control; a more thorough inspection and examination of banks and facilities for rediscounting sound commercial paper. BE IT FURTHER RESOLVED, That a certified copy of these resolutions be mailed by the Secretary to President– elect Woodrow Wilson, to the Hon. Carter Glass and to our representatives in Congress, and that they be requested to use their best efforts to bring about these much needed reforms. State of New York } County of Oneida } ss: A. H. Dobson, being duly sworn, deposes and says that he is chairman of the Committee on Banking and Currency of the Utica Association of Credit Men, that at a regular meeting of the Association, held February 24, 1913, said Committee was authorized to prepare and forward the above resolutions and that the said resolutions are intended to, and in fact do, represent the position of the Utica Association of Credit Men on this subject. A.H. Dobson [*signature*] Subscribed and sworn to before me this 3d day of March, 1913. W R Jones [*signature*] Notary Public. [*60780*]The National Citizens' League FOR THE PROMOTION OF A SOUND BANKING SYSTEM 223 West Jackson Boulevard Chicago, Ill. March 5, 1915 President Woodrow Wilson, The White House, Washington, D.C. Dear President Wilson: As bearing on the possibility of banking and currency legislation in the Senate, I wish to give you some additional information. IN a recent letter, reference was made by me to an estimate of twenty-five Republican votes for any sound measure. Those votes were from regular Republicans. It now appears that a fortunate situation is being created among Progressive Republicans. There has been drafted for Senator La Follette quite recently a bill along the general lines of the Glass Bill, Instead if "regional banks" there are "Associations of Reserve and Discount", and instead of a "Treasury Board" there is a "Currency Board". Mr. Garrison, manager of the Madison (Wis.) Journal, is laying this measure before a list of twenty-two Senators prepared by Mr. La Follette. The latter does not intend to present this bill, but to have it ready for use when the House bill comes up to Senate. Apart from some differences in details, this bill will follow the Glass bill so nearly as to insure general support rather than opposition from Progressive Senators for the essentials of a needed reform. We have read with deep satisfaction your inaugural message, and many are the expressions of approval for the statement regarding banking and currency reform. With heartfelt good wishes for your administration, believe me Sincerely yours, J. Lawrence Laughlin Confidential [*THE WHITE HOUSE MAR 7 - 1913 RECEIVED*] [*07 C5- SO.*] [*93*] [*3/17/13*] [*THE LIBRARY OF CONGRESS*]The Wisconsin State Journal E. E. GARRISON, Business Manager MADISON, WISCONSIN March 7, 1913 Confidential Dear Mr. President:- From a Director of the United States Rubber Company [*135*], I have a direct intimation that genuine tariff reduction will undoubtedly produce a panic." He further says that it is the common talk in Wall Street that there will probably be a panic during your administration anyway, I know perfectly well what that kind of talk means and I think you do also. There is just one way to put Wall Street in a position where it can have all the panics it wants to without unsettling legitimate business the country over and that is to establish at once the machinery for the rediscount of commercial paper. Last Friday John M. Nelson of Wisconsin introduced in the House "a bill for the establishment of a Currency Board in connection with the Treasury Department of the United States and for the incorporation of Associations of Reserve and Discount throughout the United States" - H.R. 28866. This bill is the result of fifteen years hard work on my part and as much or more on the part of Professor Scott and I can say to you that it is the best piece of work of this sort that has ever been turned out. It has everything good that any rediscount institution's charter has ever had, because we have studied them all, and it has some strong features which none of the others contain. Chairman Carter Glass is much interested in this Bill, as is also Senator Kern. John M. Nelson is your kind of a man through and through. I have kept up a continuous correspondence during the past year with the Senators whose names appear on the enclosed list. [*THE WHITE HOUSE MAR 10 1913 RECEIVED*] [*ACK'D MAR 10 1913 C.T.H.*] [*93*] [*TEHE LIBRARY OF CONGRESS*] [*60782*] Hon. Woodrow Wilson, ---Sheet 2---- Again let me say that if you want to handle the Tariff without gloves and if you want to spike Wall Street's plan of having a panic during your administration you must establish the rediscount of strictly defined commercial paper in this country, the first thing you do. I wish you would ask the members of your Cabinet if they do not agree with this view. Please believe that I am always at your service and that I have no axe to grind. Faithfully yours, E. E. Garrison TO:- Honorable Woodrow Wilson, President of the United States, Washington, D.C. [*THE LIBRARY OF CONGRESS*] [*60783*]SENATOR Henry F. Ashurst Geo. E. Chamberlain Wm. E. Borah Atlee Pomerene Henry L. Meyers John W. Kern Joseph L. Bristow Thomas P. Gore John D. Works Robert L. Owen Nathan P. Bryan Asle J. Gronna Benji. F. Shively Chas. F. Johnson James E. Martine Ellison D. Smith Coe I. Crawford Miles Poindexter Hoke Smith Luke Lea William S. Kenyon M[???]s E. Clapp HOME POST OFFICE Prescott, Ariz. Portland, Cre. Boise, Idaho Canton, Ohio Hamilton, Mont. Indianapolis, Ind. Salina, Kas. Lawton, Okla. Jacksonville, Fla. Lakota, N.D. South Bend, Ind. Waterville, Me. Plainfield, N.J. Florence S.C. Huron S.D. Spokane, Wash. Atlanta, Ga. Nashville, Tenn. Fort Dodge, Iowa St. Paul, Minn.S S. F 1 1/2-1-10-1M No. Certified Copy No. [*[93]*] [*THE WHITE HOUSE MAR 7-1913 RECEIVED*] [*message suggestion*] [[shorthand]] [*acnd 3-7-13*] United States of America THE STATE OF WASHINGTON DEPARTMENT OF STATE. To All To Whom These Presents Shall Come, I, I M Howell, Secretary of State of the State of Washington and custodian of the Seal of said State, do hereby certify that I have carefully compared the annexed copy of House Joint Memorial No 13 relative to railroad construction and development in Alaska, passed Feby 25th & 26th 1913, by the Legislature of the State of Washington. with the original copy of said House Joint Memorial No 13, as enrolled now on file in this office, and find the same to be a full, true and correct copy of said original, and of the whole thereof, together with all official endorsements thereon. In Testimony Whereof, I have hereunto set my hand and affixed hereto the Seal of the State of Washington. Done at the Capitol, at Olympia. this* 28th day of Feby A.D. 1913 IM Howell Secretary of State By Assistant Secretary of State GENERAL LITHOGRAPH CO. SEATTLE [*60785*][*Comp'd MA Do. to C E Do.*] [*[93]*] HOUSE JOINT MEMORIAL’ No. 13. TO HONORABLE WOODROW WILSON, PRESIDENT-ELECT, TRENTON, N. J.: We, your memorialists, the Senate and House of Representatives of the State of Washington in legislative session assembled, respectfully petition: That you make the matter of railroad construction and development in the Territory of Alaska a part of the subject matter of your first meassage to the Congress of the United States, and that if this is impracticable or inconvenient you send a special message to the Congress on the subject at your earliest convenience. To this end we respectfully direct your attention to the report of the Alaska Railway Commission. Passed the House February 25, 1913. Howard D Taylor Speaker of the House. Passed the Senate February 26, 1913. Louis F. Hart. President of the Senate. (ENDORSED. ) Filed in the office of the Secretary of State Feb. 28, 1913 at 2:10 o'clock P. M. I. M. HOWELL, Secretary of State. By J. Grant Hinkle, Asst. Sec. of State. [*60786*][*THE WHITE HOUSE MAR 10 1913 RECEIVED*] Sixty-Second Congress. Asbury F. Lever, S. C., Chairman. Timothy T. Ansberry, Ohio. John N. Garner, Tex. Richmond B. Hobson, Ala. Dudley M. Hughes, Ga. Edmund J. Stack, Ill. John A. Thayer, Mass. John F. Kindred, N. D. James F. Burke, Pa. Andrew J. Holstrad, Minn. William J. Cary, Wisc. John R. Farr, Pa. Caleb Powers, Ky. Theron Akin, N. D. Brooks D. Wingard, Clerk. [*93*] Committee on Education House of Representatives U.S. Washington, D. C. [*Ackgd 3/10/13*] Mar. 7, 1813. Hon. Woodrow Wilson, The White House Washington, D. C. [*Message Sug'ns*] My dear Mr. President: I desire to call your attention to some facts which I think will be of interest to you. On August the 23rd of last year, the House of Representatives passed what is known as the "Lever bill," providing for the establishment of extension departments in the Land Grant colleges of the country—these departments to devote their endeavors to the object of carrying out to the farmer upon his farm the gathered information of these institutions and the various experiment stations of the country. The Senate Committee on Agriculture and Forestry at the session just closed favorably reported the bill to the Senate, and in the Senate what is known as the "Page bill," carrying in addition to this extension proposition, provision for federal aid to vocational and industrial education, was substituted for the House bill, with the result that there being no ground upon which the conferees of the House and Senate could compromise, both propositions failed of enactment. The Baltimore platform of the Democratic party specifically endorses extension teaching in agriculture. The bill as it passed the House is so simple and direct in its terms as to be easily understood, and in my judgment would cause practically no debate in [*60787*] Sixty-Second Congress. Asbury F. Lever, S.C., Chairman Timothy T. Ansberry, Ohio. John N. Garner, Tex. Richmond P. Hobson, Ala. Dudley M. Hughes, Ga. Edmund J. Stack, Ill. John A. Thayer, Mass. John J. Kindred, N.Y. James F. Burke, Pa Andrew J. Volstead, Minn. William J. Cary, Wis. John R. Farr, Pa. Caleb Powers, Ky. Theron Akin, N.Y. Brooks J. Wingard, Clerk Committee on Education House of Representatives U.S. Washington, D.C.*] whither in the House or Senate. The importance of this work is so great and the fruit[it] of it is so good, as I know it from the experience we have had with the Knapp work in the South, which is a crude form of the work intended to be done in this proposed legislation, that I feel that the special session of Congress should include this bill in its program and presuming that the Congress will follow in a large measure the suggestions you make in your message for the special session, I am writing to urge that you include this recommendation. in it. I am sure that this would meet the universal favor and at the same time hasten the starting of the machinery with which we hope to bring about the betterment of our rural life conditions. Very respectfully, A. F. Lever [*THE LIBRARY OF CONGRESS*] M. C. Seventh S. C. Dic.—L/W. [*60788*][*Ackgd 3/10/13*] [*93*] [*THE WHITE HOUSE MAR 9 - 1913 RECEIVED*] 30 Church Street, New York, March 8th, 1913. Hon. Woodrow Wilson, President, Washington, D.C. Dear Dr. Wilson:- [*THE LIBRARY OF CONGRESS*] The question is being raised in the public press as to whether at the coming extra session Congress should give attention exclusively to tariff reform legislation or not,– it being reported that you are receiving opinions now as to the advisability of taking up the work of currency reform also at the extra session rather than to postpone it until December. No doubt you have looked at this matter from more points of view than anybody else has, and yet I feel that it can do no harm to suggest a feature of it that has not as yet appeared in print and is not likely to. I refer to the necessity of immediate currency reform in order to prevent real tariff reform from seeming to be a failure. No one can be more earnestly anxious than I to see immediate and drastic tariff reform, since (as you know from my recent book) I consider our high tariff system to be at the bottom of most of our troubles. Great as is the constant drain on the people of the United States amounting approximately to four and a quarter billion dollars annual tribute to the protected interests, – yet our currency laws are now such that the money powers of this country could bring on a financial panic over night (almost literally) if they chose to do so, and if a real tariff reform program should become a law at the extra session there would be plenty of time before the regular session in December for them to administer a "lesson" (as they call it) to illustrate to the country how bad your tariff program was. Both the magazine and the newspaper press is so largely dominated by these interests that a majority of the people would soon be believing that [*60789*]the panic was due to the new tariff, and so few people really understand either the tariff or the currency question intelligently those who did not would probably be convinced. Such a disaster in the first year of your administration would be a fearful blow to real tariff reformers, and would no doubt have a sinister influence on your subsequent work. It seems to me a great risk to run. Protection in the hands of the interests is their source of increasing wealth, but the existing currency situation is in their hands the tool or weapon for making their power felt. With it they can so arrange hard times that the people may be made to believe almost anything. Great as is the need for tariff reduction I for one would be well satisfied with the work of the coming extra session if nothing else were done but to adopt a thoroughly good and permanent currency reform program, which would remove their most useful weapon from the hands of the financial interests in this county. Wishing you the greatest success, I beg to remain Faithfully yours, MW Erehore [*60790*]W. L. WARING, President. PHONE MADISON 2959. E. S. MITCHELL, Treasurer. COMMERCIAL GUARANTEE COMPANY [THE WHITE HOUSE MAR 9 1913 RECEIVED*] Established 1886. Authorized Capital: $100,000 Incorporated 1895 [*22*]. 28 NORTH NINTH STREET. MEMBER AMERICAN BANKERS’ ASSOCIATION [ACK'D MAR 10 1913 J. W. H.*] RICHMOND, VA., March 8th, 1913. Hon. Woodrow Wilson, [*93*] President of the United States, Washington, D. C. Dear Mr. President: Knowing that you are very much interested in the Currency of the Country, I take the liberty to ask you to read the book published on the subject by the late WM. L. Royall of this City. He gives figures and a full history of the Currency issued by the State of Virginia, which he thought was the best form of currency issued by any country. The book can be had from the Neely Publishing Company of New York City. I am sorry that Mr. Royall did not live to appear in person before your committee on currency, but there are living men who are well posted on the subject. I would request that if you are interested in the subject, that you talk with Colonel Wm. H. Palmer, now President of the National State and City Bank of this city. J. L. Williams, Father of John Skelton Williams of this City. Mr. Williams like Col. Palmer is a little advanced in years, but well able to give you a good idea of the working of the money system of Virginia. Mr. Williams is at the head of the Banking firm of J. L. Williams and Sons of this City. Very truly, W. L. Waring President. 60791[*WILLIAM DE HERTBURN WASHINGTON 39-41 WEST 32ND STREET PHONE 9954 MADISON SQUARE NEW YORK*] [*93*] March 9th, 1913. TO THE PRESIDENT Sir: When I had the honor to see you a short time ago at Trenton, at which time I discussed with you the question of action upon the Currency and Money question at the coming Extra Session of Congress, along with the Tariff Revision, I gave you some facts and figures, which you asked me to send you in writing, which I am doing herewith in the form of an article which I have recently completed at the request of the editor of a very well known publication. The first two or three pages of the first section of the article I think will interest you, as they present some simple but forceful comparisons, illustrating the present monetary condition of the Nation. As the article was written for the layman, I follow with the story of Banks, Banking and Money, which may not interest you, as you may be up on this subject, although the article contains a brief summary of the history and circumstances surrounding the construction and creation of our coinage, monetary, financial and credit systems of to-day. In Part 2, you will find an analysis of the present situation of our finances reduced to simple and forceful figures, that I am quite sure will interest you. This work has taken many weeks of hard study and reference to most of the important government reports and data up to date, and I think that you will find a condensed statement, particularly in the paragraphs which I have marked with a blue pencil, that it would take a long time to obtain from government reports. After I saw you, as per your suggestion, I saw Mr. Carter Glass, Chairman of the Committee on Currency of the House, and he advises me that so far he is concerned he has formulated a currency plan, and would be ready to present it at the extra session. The monetary situation in the East is exceedingly critical, at the present time, and I have had occasion to see the President of a number of small banks, outside of New York City, several of them in New Jersey, recently, and everyone of them is below the legal reserve, and cannot accomodate their customers with any further loans, and I believe this to be the condition throughout the Country. The recent shipments of gold to Germany have accentuated the situation. In fact, one of these bankers who knows, told me that he had not see money generally so tight since the panic of 1907. If this is the case, such a situation will not be relieved by tariff legislation, so may [*60792*]WILLIAM DE HERTBURN WASHINGTON 39-41 WEST 32ND STREET PHONE 9954 MADISON SQUARE NEW YORK March 9th, 1913 (Page 2) I urge upon you as a man who has put in a lot of study upon the economics and affairs of the Nation, that if you do not embody currency legislation in your call for an Extra Session, that you will at least leave a loop hole in the call, wherein it can be introduced a little later on. Certainly, the worst thing that could happen both for party, wage earners and business interests would be a depression or panic to usher in the new administration, and we should do everything in our power to counteract and place ourselves as far as possible beyond such a contingency. Permit me to subscribe myself, Sir. Your most obedient servant, Wm. De. H. Washington. To- The President of the United States, White House, Washington, D. C. [*60793*][*[93]*] THE DANGEROUS CONDITION OF THE FINANCES OF THE UNITED STATES “What is wrong with our Money and Currency System?" You ask the man in the street. Whereat he answers scoffingly, making as if to pass you by. And when you would detain him, asking that he tell wherein the system is at fault, he jeers at you. "Am I a high brow?" he demands, “that you should ask me?" "Let me on my way. Only the learned know what is wrong and no two of them agree. Why then should I worry, lest my brain ache?" and he hurries on. This belief that our most interesting and vital of matters, the currency and money question is a baffling one; that only those who have made deep study of it can grasp the faults of the American System – if indeed it has faults is a general one. True, much study is necessary ere one be able to offer a corrective or a substitute. But it does not follow that equal study is necessary to understand the facts and faults. The most unlettered mother knows when her child has fever; she recognizes the rash of measles, distinguishes the breaking out of chicken pox, and catches the peculiar note of whooping cough. Yet it takes medical knowledge to treat these diseases and prescribe effective medicines. And while the druggist must be able to compound the prescription it is not necessary that he have the scientific knowledge to explain the chemical actions and reactions upon the human tissues of the drugs that cure. So, too, the man in the street may readily grasp the symptons of the nation's monetary malady, though unable to suggest a remedy, and he may find it as easy to judge the effectiveness of the prescription, though he have not the training in finance or economics required of those called on to prescribe, to compound or to trace from cause to effect. It is the endeavor of the writer to make clear to the average man, the non-student of affairs, the man who has probably always thought of himself as a detached individual, rather than as an essential part of our great National human machine, just where the financial system of the United States fails to serve and guard him and the country as it should, and just why he should take a keen interest in setting things aright. The officials of a small town were engaged in arranging a new water supply. They decided to allot to each family, the number of gallons of water a day it needed. They approached one woman with the question: How much water do you use a day? The woman studied a moment. "Monday is wash day" she said; "and I use 200 gallons all told. Tuesday I am busy ironing and do all the cooking or scrubbing. Probably I use 20 gallons Tuesday. Wednesday to Friday about 40 gallons are needed, and on Saturday, I suppose I use 100. Sundays we use about 30 gallons." "Ah, yes," said the officials. That is 490 gallons a week or 70 galloons a day. Therefore 70 gallons a day will be allowed to pass through your pipes. No more. No less." --1-- [*60794*]"But," expostulated the woman. "What will I do on Mondays and Saturdays? Seventy gallons are too little for those days. And for the other days, I have not need for so much water. "That" said they, "is not our affair. You need 490 gallons a week, and you will get it. When the daily supply is too little, you will have to skimp, and when it is too great, you may waste the surplus. But you cannot have a private reservoir to take care of the surplus and hold it in reserve." Then they shrugged their shoulders and walked off marvelling at the ingratitude of womankind. "Tush," says the man in the street, that never happened. "No," you agree, "But that is a clear parallel to our currency system, where exactly such a thing does happen. And that being so, why are you impatient with one who would ask you to show concern and interest?" And he has no answer; for there is none. The interest of the man in the street being suddenly thus aroused, and his eyes opened to the fact that after all the currency problem possibly may easily be understood, let us go further in tearing the language of mystery from the question, putting the big words back into the dictionary to be preserved for the edification of the young of the next generation, and using a simple A-B-C diagram and floor plan of the kind used by the daily journals, wherein A indicates where the old apple tree stands and X shows where the body was found. Keeping ever in mind that we are dealing with the man who thinks in words of one syllable - a trait characteristic of the Anglo-Saxon in general and even of such minds as Ruskin's in particular - let us assume that an individual were dependent for his livelihood, his welfare, his progress and prosperity upon a single piece of machinery, of which there was neither duplicate nor substitute, and on which depended the safety of all his accumulations of a life time in whatever form they might be, in real estate, cash or securities. Let us suppose that piece of machinery were 50 years old and had been in constant operation, had had practically no improvements or repairs made to in, had not even had a partial overhauling since it was started and was creaking and groaning under its load of uninterrupted work. Let us suppose it was laboring under an overload 5,000 per cent greater than it was designed to perform, and had partly broken down, time after time with disastrous effects. Would not we consider any individual improvident, careless, if not reckless, to say the least, who would still depend upon such a piece of machinery, and expect it to keep on working for an indefinite period, particularly if he was a business man. But if a nation of 95,000,000 of the richest and busiest people on earth were dependent up such a machine, 60795 --2--what then? Yet it is so, and it is surely marvellous, if not criminal that a great nation should have such as machine in its greatest of workshops and power house, and the medium through which power is received and delivered, in fact it comes pretty near being the engine that is running the works. This machinery, our money and currency, must be kept in action as constantly and untiringly as the human heart, which while life lasts must go on working and working without rest or cessation. The money question has been hidden in a hoary haze of mystery to the average individual. It has been considered too big and far too complex to be understood by the average citizen. Much dust has been blown into the air and far too much technical language has been used. One feels that he knows and can know nothing about it, and that it is not worth while trying to understand so elaborate a problem. Yet few things are simpler, and it is possible to get it so clear any school boy can understand it. Money is the commercial blood of the nation, It is rightly called the circulating medium. It is exchanged for labor and industry and furnishes their impetus and reward. It pulses through every artery and vein of our commercial and industrial body, and upon its circulation depends to a major extent the commercial life, vigor and welfare of the nation. Unlike the human body, however, which normally has an ample supply of blood for all its purposes and enough to completely fill its veins and arteries at all times, the supply of our actual commercial blood, money is very limited, and we have relatively little of it. If our activities and transactions were dependent upon our actual money alone to fill its arteries and do all our work, and keep healthy our commercial circulation and body, our commercial life would soon discover the fact that there is far too little to go around, and that instead of being a giant trader among nations, we had become sick, stunted and impotent. We must have something to augment this meagre supply of the commercial life giving medium, and this something must be injected to our commercial arteries. What have we injected? The answer is credit and confidence. Like the blood in the human body, the money of the nation is constantly circulating, to and from banks, as from the human heart, which holds for a moment so to speak, and sends out this money in a new stream and in a new direction. Now let us see how much we have of real blood and how much we borrow or inject and what we use as a substitute to fill the business arteries of the nation. MONEY PER CAPITA The average amount of money available in the entire nation is only $34.34 per capita, while the average possessive wealth of each man, woman or child is nearly $1,500.00. In other words, we have only about one-forty-fifth part of the accredited nominal possession of each individual in actual cash. Now $34.34 is not very much money, and if each person should put this amount in his pocket, there would be [*60796*] --3--nothing in circulation. The average family in the United States consists of about 4 persons, and their proportionate property value is between $6,750.00 and $7,000.00, while the percentage of actual money which such a family could obtain in case everyone desired to convert his property into cash at the same time, instead of $7,000.00 would amount to a trifle over $150.00 or about 2 cents on the dollar. [*Banks, Banking & Money*] For the purpose of fully advising and keeping ourselves straight, and going to the bottom of the subject, let us take them up one at a time and see what money, currency, credit and circulation mean, and what banks and financial institutions do and are to us. We commonly connect money, credit and currency with banks and banking, so let us analyze them, glancing for a moment at their history and evolution, and the important functions they have and now serve. Let us begin with money, which is the name given to those substances which are employed as the medium of exchange, as a measure of value. We will then understand the meaning of a few things of the keenest personal interest to us. MONEY Money came into use in the place of barter which was awkward and inconvenient, as it was not always possible to find the man who had exactly what was wanted, who was willing to accept in exchange the particular object which you had, and on which you wanted to realize. Money has not always been gold, silver or bills as it is nowadays. It is desirable for a proper understanding of the question to grasp the fact that the necessity of money arose when one individual desired to acquire that which another possessed, but had not that exact thing which the other desired or would accept in exchange. Trade or exchange probably originally took place between groups of people or tribes, rather than between individuals, for those were the days when might meant right, and an individual in trading, were he to attempt it with a stronger fellow might have what he had taken from him, rather than obtain something in exchange for it. [*Primitive Money*] The first step from primitive conditions was when specialization took place among tribes and certain individuals were set to produce certain articles or obtain certain necessities. Hence each group produced most of the things necessary for itself, and such barter as took place was rather reciprocal presents than mercantile exchanges. Such conditions still obtain among modern savages, and we find among such tribes as the Australians that rough green stones, valuable for making hatchets, are carried hundreds of miles to other tribes who give in return such prized products of their districts as ochre and other pigments with which to decorate their bodies. In other places there are tribes which carry on their heads for many miles rough pieces of sand stone, that may be readily shaped into mortars for crushing grain. Skins seem to have been one of the earliest forms of money, as they formed a medium for clothing, served to make tents or shelter, bedding, shields, sandals and other necessities. [*60797*] --4--[*When Animals Were Money*] As the hunting stage gave way to the pastoral, and animals were domesticated and transactions became larger, the animal itself instead of its skin became the principal form of currency, as it carried with it not only the hide, but an additional useful function and met another necessity, food. History furnishes an abundant proof that in many widely separated sections, and at many different periods far removed each from the other, cattle formed the currency of the early nations and tribes, sheep and oxen being the principal denominations. Ten sheep among the early Italian tribes were reckoned of the value of one ox, and the recognition of these animals as universal standards of value, made them the equivalent of money. The Icelandic as well as the early Teutonic codes were estimated in cattle, and the Latin word pecus or pecunia assures us that the earliest roman money was likewise cattle. The English words fee and finance are probably derived from the same root. In the Iliad of Homer we find the difference in value between two suits of armor reckoned in cattle or oxen. Early Irish laws show the same to be true, and among the Zulus and Kaffirs of South Africa to-day, cattle is the sole source of wealth, or rather the principal wealth and circulating medium and in Uganda to-day, natives reckon their wealth in cattle, but they neither eat or milk them. It is also said that human beings were once currency and that probably such a medium of exchange existed in Ireland. The word "Cumhal" is said to mean a female slave. Even to-day in certain parts of Norway, maize and peas pass current. In Alaska and British Columbia the Haiqua shells pass current. Cowries and other varieties of shells pass in India, whales teeth among the Fijians, red feathers among the South Sea Islanders, and in many nations any attractive stone which can be worked. [*Many Mediums for Money*] The refinement and highest exemplification of the use of stones which we find is in our precious stones, in which the Princes of India have long invested their fortunes and held in their personal or public treasuries, and in which many of our own citizens of to-day keep a certain portion of their liquid assets, as they can readily realize upon them, either by sale or by borrowing. Salt was used in Abyssinia and Mexico and in our own Country, money had many rudimentary forms. In North America, the earliest mediums of exchange were wampum and dried codfish. In the early days of Massachussets, three black beads were worth a penny, and a black belt of three hundred beads was worth one shilling. In the South in Colonial days, tobacco was a favorite basis of value and was often used as money in the payment of obligations, including taxes. In Connecticut and the northeastern States, corn was a favorite medium of exchange and in the State of Franklin, now Tennessee, the salaries of the legislators and Governor were paid, as were nearly all other obligations in skins, pelts and furs. In fact in early days in one section of the Country, a gallon of whiskey passed for two shillings, and in another a yard of jeans, a home spun cloth was a recognized unit of value. [*60798*] --5--It is quite plain therefor, from the above that nothing can serve as money which has not the attributes of wealth, ie., unless it is useful, transferable and limited in supply, these conditions being essential to the existence of value. Instruments for measuring and transferring values must therefor possess them; hence, metal has succeeded in finally driving all other competitors out of the field. When transactions become larger in volume, the lack of the quality of high values in small bulk was the vital objection to the continued use of many of the early forms of money. THE INTRODUCTION OF METAL AS MONEY The use of metal as money can be traced far back into history. It is impossible to determine, however, their exact order of entrance in this capacity, but they may be taken in the order of their value. Beginning with the lowest, iron, which according to Aristotle was widely used as currency among the Spartans. With copper it formed one of the constituents of early Chinese currency, and later was a subsidiary coinage in Japan. Iron spikes are used as money in Central Africa, and Adam Smith notes the employment of nails in Scotland. Lead was used in Burma. Copper has been more extensively used than any of the lesser metals. It likewise figured in the first hebrew coins, and Roman coins were composed entirely of it until 269 B. C., and it has lingered as the standard coinage until a comparatively recent date in the backward European countries. It is used largely throughout the world for subsidiary and unimportant coinage of the present. Tin even ws used by some early British Kings until the abundance of the supply from the Cornish mines drove it out. Nickel and aluminum have also been used in subsidiary coinage and still have place in the minor coinage of many nations. SILVER Silver hold a more prominent place than any of the preceding metals. At the close of the 18th century, it was the chief form of money, and was looked upon as forming the necessary expansive substance. Silver ws also the principal Greek money, and it was introduced at Rome in 269 B. C., following the use of copper, or immediately preceding the end of the copper reign. The currencies of mediaeval Europe had silver as their leading medium, and even to the present date, Eastern and Asiatic Countries prefer silver to gold as the standard of value, but the preeminence of gold is now beyond a question of dispute, and it has superceded all of the others. GOLD There is some difficulty in discovering its earliest employment, but it is said to be found in the records or pictures of the ancient egyptians, who are shown weighing in scales, rings of gold and silver. It was likewise used by the great Eastern Monarchs, and an examination of the various mediums of currency, metallic and non-metallic shows their chronology, and suggests some conclusion respecting the course of monetary evolution, the metal tending to supercede all [*60799*] --6-- other forms of money used by a community, as the more valuable metals displaced the less valuable ones. The explanation is readily found in the qualities that are especially desirable in the articles used for money, there having been a long process of selection and elimination. An additional requisite of great effect is the amount of value which can be concentrated, or as compared with weight and mass. The lack of multum in parvo or high value in small compass had been the obstacle to the use of many early forms of money. Corn, tobacco, iron and copper were defective in this, hence were superceded. If an oxen were technically described as self-moving, it would be less expensive to transport from place to place, but it was very costly to keep and maintain. THE REQUISITES OF METAL FOR MONEY It is desirable that the substance used for money shall be capable of being divided without loss of value, and likewise of being reunited, for time was when half a penny meant half a penny, or in other words, the coin was cut in two, and such articles as eggs and cattle were not susceptible to such treatment, so had to give way. Another essential is that money shall be readily recognized as of a fixed and given quality. Precious stones cannot therefor, well be employed as money, as there is the difficulty of their differing vastly in quality, hence in value. Absolute fixity of value being unobtainable, like perfection in almost every other direction, the nearest approximation that can be obtained is the most desirable. Man's early trading transactions were free, and the articles traded in had a useful and consumptive value, and hence, quality was not so essential a feature. But with the growth of trade and industry, every effort was made to eliminate flucuation in value and the suggestions were ingenious and clever. It is essential that the ordinary functions and value of money should not alter within too short a period and this is peculiarly the case with silver and gold. Many of the grains and agricultural products varied tremendously from year to year, according to the abundance of crops and other reasons. Metals had the advantage of being homogenous, divisible and of being readily recognizable, one from the other. But some had their drawbacks, iron was undesirable because of its liability to rust; lead from its exceeding softness and tendency to blacken or tarnish the things with which it comes in contact; tin for its brittleness, and copper for its low value, and the fluctuations which sometimes cuts its value is two or doubles it within a few months. Thus we arrive at the elimination of the cheaper metals, leaving silver and gold as the most suitable if not the only material for standards of value, while this same process of elimination and the survival of the fittest has brought about the adoption of gold as the highest standard of monetary value. BI-METALISM An additional advantage of silver and gold for coinage is that they may be reunited without loss, of deteriorate by being kept. Their texture being firm and compact, the 60800 --7-- wear well. Gold gives great value in small bulk and it can be transported with comparative facility. Its identity is easily established. Cantillon summarizes these features when he says gold and silver alone are of small bulk, of equal goodness, easier of transport, devisible without loss, easily guarded, brilliant and beautiful and will last almost to eternity. We have traced money from its earliest period when mere commodities were used as currency. In the early use of metal money, it was transfered by weight, but man went further and finally set a stamp on every coin to relieve himself from the trouble of weighing it. COINAGE Coinage systems had a long period of growth in which there are two distinct cleavages. Primarily only the quality or fineness was denoted by the stamp and no attempt was made to specify its weight, the stamp being merely a hall mark or guarantee of quality, such as is now used in Great Britain to denote a guarantee of fineness. It seems likely that the cubes of gold early employed by the Chinese may have been the first actual coins, but other authorities believe with Herodotus that gold and silver coins were first used by the Lydians. He also mentions that the first Greek coinage was at Agera by Phidian of Argos. In order to make the coin, however, complete, or to complete the invention as it were, it became necessary to certify the weight of the metal as well as its fineness upon its face. Then the establishment of a regular size or shape for the coins to prevent its being tampered with after its manufacture became essential. The earliest forms were hexagonal and sexagonal. Finally, however, the universally accepted shape became to be that of a flat circle, both sides of which were stamped, and in many cases, it was stamped or milled upon the edge. It has been said and probably wisely that Greek coinage was both cause and consequence of her rapid growth in commerce. From Greece, the art of coinage travelled to Italy, through Hellenic traders and settlers and rapidly became a fixture of civilized society. The size of the coin was a problem which was settled by common sense, or for the convenience of the user. Coins too small, not being readily picked up, as the English three- penny piece, and the American Gold Dollar, were discontinued. The question of the quality of metal for coinage has required much attention. Both Gold and Silver being so soft in their natural state, they are subject to excessive wear, and consequently it has been found desirable to amalgamate with them copper and tin to bring about a proper degree of hardness. --6-- [*60801*] English gold coins have an alloy of 1 in 12, and silver coins of 1 in 43, French gold coins have an alloy of 1 in 10, perhaps on account of its decimal system. Only 1 to 72 is used in the Austrian Ducat, but this has been found too soft for practical purposes. In the United States, we use 1 in 12. THE INTRODUCTION OF STANDARDS OF VALUE As society took more coherent form, liberty and rights began to be recognized, and the old law that might makes right began to be supplanted by the principles and practice of justice. It thus became incumbent upon the ruler to establish standards of value, so that the judgments of courts; likewise the rudimentry forms of state revenues, (a matter of personal interest to the reigning power) made it desirable in many directions to provide a good medium of payment. Coinage became a prerogative of the King, although in some cases this right was transfered to private individuals. A number of autonomous cities of Greece, which had the right to issue coinage of their own, issued same, each having legal tender power established standards of value. This had the effect of increasing Greece's trade, and the standard of value became most important. Consequently they maintained both the quality and character of their coinage at a high standard. COINAGE & SEIGNORAGE Later in larger states, as in the Roman Empire, coinage became a prerogative of the Emperor. Upon the fall of the Roman Empire and its disintegration, this right passed to the mediaeval Kings of the disrupted Roman Empire, and in England, at one time a part of Rome, it was carefully guarded by the reigning sovereigns. In France and Germany the overlord maintained a seignorial right to coin, but in the modern states, it has been definitely invested in the supreme authority, the government. A special reason for the close association of money with the State is that money shall have the power to finally close a transaction, in other words should be a legal tender. It is a practical and business institution, rather than a purely or simply legal function of the State. What Aristotle regarded as the "unnatural character of money" is seldom due to economic or trade causes, but to State intervention. THE RELATION OF GOVERNMENTS TO MONEY AND BUSINESS Having dealt with the early substitutes for currency, and money and given a thumbnail sketch of the history and origin of coinage, its mono and bi-metallic stages, we come to the point of representative money. The theory of government action in respect to money should be carefully guarded and should ever have in view the best interests of the people; and the business of the nation. An effective currency system is not an arbitrary creation, but must grow and emerge slowly and be fitted to the habits, customs and necessities of the community and must serve its best economic and business needs. --9-- [*60802*]We will spend a few moments on the subjects of its introduction and development. Owing to the close connection and in many cases the assumption by the State of the prerogative of coinage, it was found that there was an expense in the process, as coins are manufactured articles, and the question arose as to whether the State should stand or be reimbursed, or should profit by it. SEIGNORAGE AND FIXING MINTS The profit in this direction has long been known as seniorage. In some cases this was made exceedingly large, but this only resulted in a depreciation of the currency itself for the levy and charge for coinage when coins came to be used in another Country were subtracted, and it came back to the actual value of the metal in the coin. For instance, England with her wide spreading commerce, and owing to her influential position, having to draw supplies from and sell her surplus products to far distant points, found it desirable to hold these expenses out, and hence places the full value of metal in her coins which they are supposed to represent. But she has a seniorage of about 60% on her silver coinage, which largely makes up for the loss in coining her gold, Nearly all other countries make a moderate charge for stamping their gold coinage, while they make a considerable profit upon their silver. The constant use of silver and gold, when it is transfered from hand to hand in all transactions meant a very great deterioration and loss by wear and tear, and likewise the question of convenience entered into the transaction. The value of the English pound was copied from the time of Charlemegne who fixed as a unit the value of a pound of silver, hence the name pound, but silver being so bulky and heavy that to pay #1,000 in silver ($5,000) required the transference of 800 pounds weight of actual metal, hence it was found that there could be a further great economic agency in the use of representative money, hence we come to the use of paper money as currency. THE INTRODUCTION OF PAPER MONEY The earlypaper money was practically a receipt, re- presentative of so much gold, held in the vaults of the public treasury, which was payable on presentation, making this receipt a certificate of demand, thus we arrive at the use of representative documents in the place of the more costly metallic medium. The temptation to reduce the reserve and actual money on deposit, held against the certificates to an inadequate amount, and then escape the difficulty by resorting to the expedient of refusing to pay has proven too strong a temptation for nearly all governments in times of pressure, to their bitter experience. Such action was inevitably followed by a disturbance of the standard of values used in ordinary payment, to the injustice of creditors, they being paid in much lower standard of value than that which they had lent. Further consequences were the upsetting in settlements of trade, both domestic and foreign, the fluctuations in the value of money and the consequent pressure on the working classes; from the slower rise of money wages in contrast with the quicker movements of the price of commodities, 60803 --10--resulting in the fall of real wages. It also checked transactions of an international character, owing to the risk of loss, due to fluctuations while the exchange was in transit, the only gains being a temporary seniorage, to the resultant disadvantage of the State, who thus practically contracted a forced loan without the payment of interest or principle in full. The early use of paper money was very limited, because people had little faith in it, as governments were less stable their overthrow in fact, being a matter of frequent occurrence, both from the seizure of the reins of government by ambitious men, and by the ambition and aggression of other nations. It was not until the institution of banking, or rather until its wider or more universal adoption that the coining of credit was facilitated, and was acceptable to the people. INTRODUCTION OF THE BANK NOTE Then came the bank note, which grew in value and use as governments became more stable, and they maintained their value, largely upon the repute of the issuer. It had a most extraordinary development in both Great Britain and the United States, and furnished these countries with the most practical form of currency yet known. INTRODUCTION OF THE CHEQUE Then came the use of still another substitute, of another form of currency, or substitute for a substitute, the cheque, which calls for the payment in paper money or bills based upon the gold or silver of the standard of value adopted by the nation. Both cheque and paper currency are only representative instruments to facilitate exchange and trade. Business transaction have grown to such mighty volume that they would be almost impossible without these instruments and this mechanism. History teems with the struggles between the influence and temptations yielded to; for deterioration, and those which gave support to; and sustained currency conditions and values in the various nations of the world. BANKS AND BANKING This brings us to a consideration of the machinery which has been adopted for the convenient handling of the money, and we will briefly consider banks and banking. The word bank covers various meanings, but all express a single object ie., the contribution of money for a common purpose. It has also been called by Bacon "as a bank of common stock". Ricardo, an early writer discussing a proposal for an economical and secure currency says that “the assistance that banking gives to the industry of a community is constant and most valuable". The story of banking is tersely told in "Progress and Prosperity" by the author of this article, in the section entitled Banks, Banking and Money page 143, wherein their [*60804*] --11--relation to the growth of the progress and prosperity of the world and their contribution to same are made clear. EARLY BANKING METHODS “Archeologists have found on tablets records of various banking transactions in the reign of Khammurabi, 2300 B. C. The tablets bear memoranda of loans of minas and shekels in varying amounts; the rates of interest in those days ran as high as 20% Several of these tablets are in the Metropolitan Museum of Art in New York. Many of the tablets bear the signatures of witnesses, and have other forms which show that the financial methods and machinery of that day were very similar to those of modern banking. They had simple obligations like a promisory note, and one with a penal clause attached for non-fulfilment. There are obligations with a guarantee, like an endorsed note, others payable to a third person, as a check would be, and drafts from one place which were payable at another. it is remarkable that obligations of this kind, including letters of credit should have proceeded the use of coins. There were private banking houses in those days, the name of one of which is Egibi & Company, who seem to have acted as a National Bank at Babylon, and who seem to have been the J. P. Morgan & Company of Babylonia. In Babylon interest rates ranged from 12 to 24%. BANKING IN GREECE AND ROME Later in Greece in the days of Cicero, one Atticus was prominent as a banker and lend of money, and engaged in many kinds of financial enterprises. Rome was assisted in its war against Hannibal by private individuals, bankers, men of means who loaned large sums of money to the State. Rome had practically a money and stock exchange. Brutus loaned money at as high a rate as 48% interest. In Greece, the usual rate was 12%, Later Venice, Florence and other cities became in turn the money centers of the world. As business grew, it became necessary that every loan be put in writing, and instruments detailing the amounts and conditions of the loans made came into existence, practically promisory notes. GOING BACKWARD Retrogression in banking methods seems to have taken place, for we find some of the banks of Europe, such as that of Amsterdam, more than two thousand years later, were simply great warehouses for bullion. They issued transferable receipts entitling the holders to the delivery of the actual money deposited. Money stored in such a bank was unproductive. Instead of yielding interest, it entailed upon the owner storage expense for guardianship and safekeeping. EARLIEST SAFE DEPOSIT VAULTS Banks in Europe about the 16th century were of two classes, the one just described, that of Amsterdam, being practically a bank of deposit or safe deposit, others became banks of exchange, one of the earliest of which, the Bank of Hamburg is still in existence. It was chartered in 1619 and is the last survivor of this type of exchange banks. They were followed later by such banks of deposit as the Bank of England, the --12-- [*60805*]Bank of Venice, Bank of Sweden, Bank of France, Bank of Germany and others. The existence of international commerce lies not in loans, but by the local manufacture, so to speak of an international coinage or currency. MAINTAINENCE OF STANDARDS OF VALUE Cities of high rank and commercial activity like Hamburg, but of limited territory were continually receiving in payment for exports the coins of many other Countries. A common standard became necessary, and bank money was devised to enable trade to be carried on without the delay and expense that resulted from the use of various coins differing in intrinsic value. By supplying a currency generally accepted, the bank of Hamburg greatly contributed to the prosperity of the City. The regulations in regard to the maintenance of a coin reserve equal to the notes issued being literally carried out, her currency was practically metallic, its paper being merely the representative of money. Money is faith and credit. If it were not, man would go back to the early principles of trade and insist on bartering the article which he possessed for those he required, but production has reached such magnitude that this would be impossible. But had our transaction to be consumated to-day solely in actual coin, we would have to have a vastly greater supply, than now exists either in the form of coin or paper money. Therefor the accentuating need for relay station, or reservoirs where money can be accumulated to enable us to transact our commercial operations. Here is where the bank comes in. EARLY ENGLISH BANKING To English speaking people it may not be amiss to know, as early as the days of James the first from 1208 to 1276, the business of banking was carried on in London by the Goldsmiths of that City, who took deposits and thus established deposit banking. The bank of England was not incorporated until 1694. Goldsmiths were called “new fashioned bankers" in those days, and they began to receive the rents from gentlemen's estates, paying interest on it. It proved a great allurement for people to put their money thus in safe hands where it would pay interest until the day they wanted it, and they could draw it out in sums of £50 to £100, with infinitely less trouble than if they had let it out on personal securities. The English Bank Note was developed from Goldsmith's notes, for such money as they received payable on demand. THE INTRODUCTION OF CHEQUES About 1781, the English adopted a new method. In lieu of notes, they gave out books of cheques. Before the advent of the cheque book, the procedure of issueing notes was considered so essential to that to prohibit their issuance was considered an effectual bar to banking. [*60806*] --13--In the early days of English banking, the number of persons who could be interested in a bank was limited to six. There was no limitation of liability, and the owners or directors were liable for the full extent of their means. This provision was not modified until 1826 and not until 1862 was the limited liability act passed in England. AMERICAN BANKING The history of banking among the American Colonies is like that of most other new countries, filled with many experiments in banking and currency issues. Most of the colonial enterprises are projects for the issue of paper money, or the creation of commercial banks. During the reign of George the 1st, speculative banking was checked to a large extent in the colonies by the Bubble Act, which was passed in England after the bursting of the South Sea Bubble, and which forbade the formation of banking companies without a special charter. In 1740 it was extended to the colonies. 60807 --14--To the President: I think you will find in the following pages a complete and condensed digest gathered from many sources, and practically all of the figures of importance in connection with the Nations financial, bank- and currency situation, put in a readable, greatly simplified, forceful and consecutive form, not found elsewhere. 60808PART II. THE BIRTH OF OUR NATIONAL BANKING SYSTEM. Our modern National Banking System was practically the outcome of the financial necessities of the Federal Government caused by the Civil War. It was found difficult to sell Government Bonds at profitable rates by President Lincoln's Secretary of the Treasury, Mr. Chase, who set about creating a market for the bonds by offering special privileges to banks organized under federal charters, permitting them to issue banknotes, only when the notes were secured by deposits of government bonds. It was a very severe blow to them. THE PASSAGE OF OUR NATIONAL BANK ACT. The act of February 25th, 1863, supplemented by the act of June 3rd, 1864, formed the basis for the National Banking System we have to-day. Any National Bank desiring to issue notes could deposit with the United States Treasurer, United States Bonds to an amount not exceeding the capital stock of the bank. It could then issue banknotes equal to 90% of the par value of the bonds deposited, and no bank could be established which did not invest one-third of its capital in bonds. This was changed in 1874 to reduce the required bond investment to 25%, with a maximum money requirement of $50,000. Notes were taxed at the rate of 1% per annum. It was found that the State Banking System so firmly held general confidence that it was necessary to impose a tax of 10% on the face value of the notes of the State Banks in circulation after July, 1866. The State Banks were thus driven out of the note-issuing business. {In 1864, there were 453 National Banks with an aggregate capital of $70,366,000. In 1865, there were 1,014 banks with an aggregate capital of $242,000,000. EARLY STATE BANKS. Many of the early State Banks were anything but reliable or substantial institutions, and issued notes, regardless of their ability to pay or of any plan of redemption. They were called “wildcat" and "red dog" banks, probably as illustrative of the fact that a wildcat or red dog would have been about as good a basis for credit as the basis on which their notes were really issued. The security back of these notes was practically nothing. They were merely unendorsed promissory notes. One has but to contrast them with the familiar bank note which is secured by United States Bonds for more than its face value. The term "carpetbagger" was also originated at this period of wild cat banking, for after some bank had issued a lot of notes, someone would put them in a carpet bag and go as far away as possible to some distant State and put these notes in circulation, in the hope that they would be a long time in reaching the home bank for redemption. Later the term "carpetbagger" was used in a far different sense. [*60809*] -1-We have four classes of banks and financial institutions. National and State Banks we have touched upon. Savings Banks and Trust Companies must next be taken up. Savings Banks are institutions that receive small deposits of money and invest them for the benefit of depositors at compound interest. THE ORIGIN OF SAVINGS BANKS. The Savings Bank seems to have been suggested by Daniel Defoe in 1697, but the first one was not established until 1765 in Brunswick. Thirteen years later, one was started in Hamburg and still exists. It was in 1797, however, when the first one made its appearance in England, through the activities of one Jeremy Bentham. They were then known as “Frugality Banks." In England, the legislation of 1817, as an inducement to trade, offered a rate of interest in addition to, and in excess of, that given to the ordinary public creditor, and in excess of that offered by government stock or bonds. Later in the United Kingdom, there were established penny banks, where very small deposits might be made by those of very moderate means. SAVINGS BANKS IN THE UNITED STATES. The first Savings Bank incorporated in the United States was the Provident Institution for Savings, incorporated in Boston in 1816. The oldest in New York is the Bank for Savings, incorporated in 1819. Although Savings Banks are less than 100 years old in the United States, they have increased their depositors from 9,000 in 1820 to 10,010,000 in 1912. The most careful restrictions surround them. They are allowed to invest only in real estate mortgages, seasoned bonds, and underlying securities of railroads and other corporations which have had a successful career for a given number of years. We have shown that our National Banking System was created largely for the specific purpose of making a market for Government Bonds, thereby assisting the Nation in times of stress and need. We have referred to our general banking system as a machine, and one which has partly broken down on many occasions. We find also that it was not designed for the purpose for which it is now used. It was more or less of a misfit to begin with. TRUST COMPANIES. Trust Companies, as their name indicates, were organized principally for the purpose of the settlement of estates, and the holding in trust of funds, property, and securities. They also act as trustees for borrowers and issuers of bonds. In many cases, they cut into the business of commercial banks, and at times almost usurp their powers and functions. FACTS TO REMEMBER ABOUT BANKS. Remember that most of the Banks and Banking Institutions in this country are voluntary and entirely independent institutions made up of merchants, farmers, manufacturers, and men in all walks of life. -2- [*60810*]{For their own sakes and yours, many bank directors in this country give a great deal of time freely and unselfishly to looking after your money and mine, more than we do ourselves, with little profit or emolument to themselves. {Now, a bank is not an uncanny, mysterious thing that can only be organized by great capitalists or controlled by them. On the contrary, in any place with under 3,000 inhabitants, any five men of reputable character may organize a National Bank. They have only to make an application to the Comptroller of Currency, show the necessity for a bank in that particular place, and arrange for a capital of $25,000, of which only $12,500 needs to be in cash. In fact they can begin with only 30% of their capital, or $7,500 paid in, but the entire amount must be paid up within six months. This is an excellent feature of our banking system, as it guarantees that the business of banking shall not be, as in some countries a monopoly. {WHAT IS A MODERN BANK? Let us see if we can define a bank and its intimate relation to the community. It is simply the old-fashioned woolen stocking, the chink in the wall, the hollow under the hearth, the treasure chest, in another form. Instead of being the individual, it is the community's place to put its money away for safe-keeping or immediate coming, going or use. When one considers that the bank deposits of the United States total $[*20,000,000,000,*] and that there is but $[*1,521,000,000*] of real money or currency, i.e., cash, [*in our Bank*] we have it borne in on us that each dollar has much work to do. John Smith puts a dollar in the bank, and the bank lends it to Joe Jones, who uses it to pay a debt to Smith. Smith straightway puts it in the bank and now has two dollars to his credit, although all the bank has to show is the original dollar and a promissory note signed by Joe Jones. Robert Roe then borrows the dollar and pays it to Jones to discharge a debt, and Jones spends it in Smith's store. Smith puts it in the bank and has three dollars to his credit. One dollar has thus been three times in Smith's possession, twice in Jones's hands, and once in Roe's, while the bank has received it three times, paid it out twice, owes Smith three dollars, and has two dollars (with interest) due from Jones and Roe. Now, when Smith tries to draw out his three dollars, the bank cannot hand him the original dollar and the two promissory notes. It must have three dollars in cash to pay Smith or close its doors. Now, carrying this into the field of larger transactions, let us suppose a man desires to buy a cargo of wheat or engage in some other transaction that requires a large sum of money. In the old days, he would have to go to a number of persons, getting a little from each, for the purpose of getting enough together to cover his requirements. To-day, the bank accepts deposits in large or small sums and permits a man to withdraw all or part of his deposits at will. Banks may be likened to the reservoir in which a city's supply of water is stored. Now, instead of going to a number of men, borrowing a few dollars here and a few dollars there, one can go to the bank and by pledging [*60811*] -3-the property he purchases, or other property in hand, or his credit, obtain the funds he needs to consummate his transaction. OUR BANKS,THEIR RESOURCES AND ENORMOUS LIABILITIES. Our banking question and the question of our currency and national monetary affairs is teeming with fascinating facts that are interesting to and should be known by every individual who desires to know his country, and particularly by the business man who desires to be posted in regard to the condition, foundatiion and basic plan upon which his financial welfare and safety rest, and whether the same is sound or unsound. RESOURCES AND CONDITION OF OUR NATIONAL BARKS. The paid-up capital of our 7,397 national banks, as of September 4th, 1912, was $1,046,000,000. The combined surplus and other undivided profits, $943,000,000. They had circulating notes outstanding of $713,000,000; due to other banks, $2,177,000; individual deposits of $5,891,000, government deposits of $59,000,000, rediscounts of bills payable of $82,000,000, total liabilities of $10,963,000,000, a little less than $11,000,000,000. 60% of the loanable funds of these banks are out upon loans and discounts aggregating $6,061,000,000. About 17%, or $1,850,000,000 are invested in United States or other bonds and securities, about 7% in United States Bonds, of which $724,000,000 are on deposit with the Treasurer of the United States to secure national bank circulation, $46,000,000 to secure government deposits; and $941,000,000 is held in specie legal tender notes and minor currency. Let us see to what extent we use these institutions and how many banks and financial institutions we have. In September, 1912, we had practically 7,400 National Banks. Of State Banks and other institutions doing a commercial business, 13,823. Non-reporting institutions, 3,800. A total, in round numbers, of 29,000 banking institutions. Of these banks 25,195 have had their assets tabulated, showing same to be approximately $25,000,000,000, and it is safe to say that the other institutions have capital and resources of $500,000,000 more, a total of $25,500,000,000. It will be seen that the State Banks and institutions nearly double the number of our national banks, there being 13,381 of them, with a capitalization of $460,000,000 and aggregate resources of $3,897,000,000, while savings banks, trust companies, etc. have about $6,500,000,000. The capitalization of the combined financial institutions amounts to $2,010,000,000 and the liabilities to banks and in other directions, $20,000,000, HOW MARVELOUSLY WE ARE GROWING RICH. The exports of the United States during the ten months ending October, 1912, were $1,872,000,000, and the imports $1,511,000,000, resulting in a trade balance in our favor of $359,000,000. We prospered within ourselves however, to a far greater extent than in our foreign and external trade, for 60812 -4- compared with 1911, the current asset returns show an increase in the capital of our banks of $58,400,000, and in deposits of $1,170,000,000; and an increase in aggregate assets of $1,355,000,000 in a single year, or of over $110,000,000 a month. During the past four years, or since 1908, our banking figures have increased from $19,000,000,000 to $25,500,000,000, or altogether nearly 33%. We have increased our stock of real money in the banks only $18,000,000, and we are thus 33% worse off, so far as ability to stand a panic is concerned, than we were five years ago, or at the time of the panic of 1907. THE MONEY WECANNOT USE. OUR NATIONAL BANK RESERVES. Under our banking laws, banks located in New York, Chicago, St. Louis and other Central Reserve Cities are required to retain a reserve in cash or currency of 25%. Banks in the other reserve cities are required to retain the same percent, although one half of this amount may be deposited with the banks in the central reserve cities. Banks located elsewhere in the two classes of reserve cities may retain a reserve of 15%, 2/5ths of which must be held in the banks and 3/5th kept on deposit with their agents in the reserves of central reserve cities. It is interesting to note at this point that some of our reserve cities are places of very moderate size and cannot in any sense be considered great headquarters for the accumulation of great aggregations of capital. For instance, Wichita, Kansas, Fort Worth, Texas, Boise, Idaho, Trinidad, [California] and many smaller places are among their number. OUR MANY SMALL BANKS. Contrary to the usual acceptation and understanding, we have many more small banks than large ones. As we have heard so much of money trusts lately, we have lost sight of the fact that among our 7,397 national banks, 27%, or over 2,000, are banks with only $25,000 of capital; 381 have capital between $25,000 and $50,000; 2,323, or 31%, have capitals between $50,000 and $100,000, while there are 2,006 with capitals between $100,000 and $250,000; and only 187, out of 7,397, with capital exceeding $1,000,000; and only 18, out of 7,400, with over $5,000,000 capital. FORCEFUL FACTS. It is probably true that there is an equal or greater proportion of state banks with small capital than of national banks, as there are 13,400. They nearly double the number of national banks, so, after all, our banking facilities are made up to a great extent of a number of small units. There are some statistics that it is useful for us to know about, among them that the pro rata of bank capital in our national banks is as $1 to $5.63 of deposits; $1 to $5.77 of loans, and $1 to $10.40 of aggregate resources; and of specie and legal tender in individual deposits, as $1 to $6.58 in our national banks, but far less in our state banks and other fiscal institutions. 60813 GOVERNMENT HOLDS ITS OWN BONDS FOR ACCOUNT OF BANK -5- Eighty per cent of the bonded debt of the United States is held by banking institutions, so it is shown that they are the largest creditors of the government of the United States. This is out of a total interest-bearing debt of the United States government of $964,000,000, as of October 12, 1912. This amount, taken with $47,000,000 held to secure government deposits, places back in the Treasury of the United States, which holds these bonds as Trustee, $750,000,000 of its entire bonded indebtedness. At the close of business on October 31, 1912, the number of National Banks in existence was 7,428, with a paid-in capital stock of $1,053,000,000. Bonds deposited in the Treasury of the United States secure a circulation of $730,000,000. The circulation outstanding secured by bonds is $727,000,000. OUTSTANDING CIRCULATION. On the same date there were outstanding circulating notes to the amount of $22,000,000, a good part of which is provided for by lawful money in the Treasury of the United States. For the use of the circulation, there is a liquidation charge, making an aggregate outstanding bank circulation of $749,000,348. All but two of these 7,428 banks are banks of issue; these have a capital of only $25,000 each. Contrary to the usual understanding, the issuance of notes by banks is not so profitable as it is usually thought to be; in fact, many individual wonder why the banks do not issue more notes. The total number of banks furnishing statements to the Comptroller of the Currency, including state and other banks, was 803 more than reported last year, and included 1,992 mutual and stock savings banks, 1,100 private banks, and 1,410 loan and trust companies. ONE YEAR'S GAIN IN BANKING INSTITUTIONS. One hundred and eighty-eight new National Banks were chartered during the year. SAFETY OF OUR BANKS IN GOOD TIMES. Our banks have become markedly safer, and it is found that actually less than 1% of the banks chartered since 1900 have failed, as against 5% of all National Banks since 1865, and 82%, in round numbers, has been paid to the creditors of all the banks that did fail, hence the losses have not been very large. At the present time, however, the percentage has fallen tremendously, for receivers were appointed for only eight national banks during the year ending October 31st, 1012, their aggregate capital being only $1,100,000, or the number of failures is now 1/1000th of one per cent. In fact it has been stated that a tax of 1/35,000th of one per cent could make good all the losses of depositors in all National Banks that have failed since their establishment in 1863. A DANGEROUS SITUATION. The most significant and dangerous fact, however, the one that must make every man sit up and take notice, is this: That of the 25, 195 banks in the United States and its Island possessions, they had actual cash on hand in coin 60814 -6-of $238,000,000; in gold certificates, $143,000,000, including $80,500,000 of Clearing House certificates; $22,000,000 of silver dollars; $194,000,000 of silver certificates; nearly $38,000,000 of subsidiary coinage; $253,000,000 of legal tender notes; $108,000,000 of National Bank notes, and cash not classified $74,000,000; or a total of $1,572,000,000 of real money on hand, this against $17,024,000,000 of savings deposits, certificates of deposit, certified checks, cash and checks outstanding. In other words, if all our banks were called upon simultaneously to pay what they owed, they could pay less than 9¢ on the dollar. Few things show more clearly than this the necessity of combining this cash and putting them in a position to act as a unit in their own and the people's defence in case someone hollers "Fire". WORSE AND WORSE Individual deposits in our banks have increased during the last four years $4,239,000,000 or over 33%, and we have only increased our circulating medium $183,000,000 to correspond with this enormous additional tax and burden put upon us and upon our trifling cash reserve. From another standpoint our 25,195 banks have loaned out $13,953,000,000, in round numbers $14,000,000,000,000, against $1,500,000,000 in actual coin, currency and notes, or nine times as much money as there is in the United States in banks and depositories. THE GROWTH OF OUR BANKS In 1874 we had three banks from which reports have been compiled, with a capital of $2,100,000, a circulation of $2,000,000 and a specie resource of $10,000,000. In 1800 there were 28 banks, showing a capital of $21,300,000, circulation of $10,500,000 and specie $17,500,000, and in 1820 there were 370 banks with a capital of $102,000,000, circulation of $40,600,000, deposits of $31,000,000 and specie of $16,700,000. In 1830 there were 329 banks with $110,000,000 of capital, $48,100,000 in circulation, $39,000,000 in deposits, $14,500,000 in specie and $159,000,000 in loans. Since 1900 the number of banks in operation in this country has increased over 107%, and their volume of business is indicated by their deposits, an increase of over 127%, and there is nothing to take care of this immense increase in load. We have doubled our danger; the distribution of our banking institutions and other items that may be mentioned as we pass. INCREASE BY GEOGRAPHICAL SECTIONS The Northern States have 8,833 banks, the South 6,069, the West 5,003 and the Eastern 2,001, or there are 1,727 in the Pacific States, 1,083 in the New England States and 35 in the Island Possessions. In the increase in the number of banks the South has led last year with 304. The Western States followed with 216 and the middle west with 117. On June 7th, 1911, the cash holdings of all reporting banks was $1,554,000,000, and on June 14th, 1912, 60815 -7-$1,572,000,000, making an increase during the year of $18,000,000 cash. During this year, however, the cash in our National Banks decreased about $2,000,000, while the State banks increased about $20,000,000. The total amount of cash held by the National Banks was $996,000,000 and by State Banks $576,000,000, including other reporting banks. The total proportion of money held by all Banks including savings banks, was only $5, 5-15/100ths%, or a little more than 5¢ on the dollar, or one dollar in twenty of what the banks might be called upon to pay, and since then it would seem even more out of proportion than this. A TICKLISH SITUATION. To reduce this problem to the individual, and the only way to bring it home, let it be said that anyone of us would hesitate, or feel unsafe about a loan we had made another individual, which he agreed to pay at any time, or had we deposited money with him, if we knew there was only one dollar out of twenty that it was possible for him to get, if everybody to whom he owed money, including ourselves, were to call upon him at the same time, or about the same time, for payment. Nevertheless we permit ourselves to be in exactly this position, and this is the relative position of the banks toward their depositors and toward the total requirements that they may be called upon to fill. OUR MONEY STOCK. MONEY PER CAPITA. As we have stated, we have a total of only $34.34 in actual money, and $17.98 is in daily use or in the people's pockets, or in use in our daily transactions; it is not in our banks. In other words, a man is either carrying it in his pocket or holding it in his sock, or it is passing from hand to hand. The total proportion of this money in specie, bills and government notes, would be as follows: The total stock of money in the United States on June 12th, 1912 was $3,648,000,000, of which amount nearly 10% was in the Treasury as assets, leaving as our circulating medium $283,000,000 $1.563.000.000, or 42% was in reporting banks, excluding those of our Island possessions, and $1,720,000,000, or 46- 16/100% outside of the Treasury and banks, that is, in circulation among the people. LESS MONEY. LESS LIABILITY. There is only a million and half more than the amount of money reported in circulation in 1911, and $18,300,000 more only got into the tills or the vaults of our banks. $52,000,000 was required for outside circulation. Our banks are holding less and less coin and specie all the time in proportion to the amount they may be called upon to pay. ONE HOUR'S SURPLUS MONEY. In most sections of the United States, banking hours are from 10 to 3 o'clock. Thus five hours comprise our banking day. Holiday subtracted, we have about 300 banking 60816 -8-{days in the year, and our banks show clearings of the tremendous {sum of $168,000,000,000 per annum, or in other words, our banking {transactions are $560,000,000 per day or $105,000,000 per hour {for every banking hour of the day. It must be remembered also {that bank clearings are merely the record of transactions involving {at least two banks. MONEY THAT DOES NOT SHOW. If John Smith deposits a check of James Jones, and the Jones check is drawn on a bank other than the one it is deposited in by Smith, it goes into the bank clearings. But if Jones and Smith use the same back, it does not require to be cleared. So, too, there is no record kept of the local banking transactions of one-bank towns, and few records are available showing the clearings in small places, where checks are exchanged or "cleared" direct, and not through the agency of a clearing {house. The total banking transactions of the country probably {greatly exceed $250,000,000,000 a year, but considering only {the tabulated clearings, the total is enormous enough. {When we realize that our savings banks carry less {than 1% of actual cash, and our State banks only about 7-8/10ths%, {and that our other financial institutions have even smaller {reserves, we can expect no help from them, hence the maintenance {of reserves falls entirely upon our National Banks, as all the {banks and banking institutions fall back upon them in tight {times. ON THIN ICE. {Peculiar parallel to our recorded clearings is found {in the feature of our banking law that requires our banks to {hold a reserve, varying from 15% for country banks, to 25% for {banks in centrally located cities. On November 26, 1912 our {National Banks held $31,000,000 above legal reserve, or 20 minutes {supply of money; on February 25, 1913, they held $64,000,000, or {40 minutes supply of money, so that we see that a withdrawal or a {failure to deposit the average amount within 2% in our national {banks would place them as a whole below their legal reserve, a {situation far too delicate and dangerous for any legitimate {business (to rest upon. Ours is the only country in the world where (these conditions exist. Other countries have depositories and (thus avoid the disaster attending our miserable banking system. {On another date the legal reserve requirement {was $1,467,739,000, while the total cash holdings were {$1,572,953,000, the difference or "surplus reserve" being {$105,000,000, giving us an actual working cash surplus equal to {one hour's bank clearings. Few hobos are so poor that they have {not money enough to see them through the next hour, and why {should the richest nation in the world be in a worse position? INADEQUATE. {Under the Aldrich-Vreeland Act, a measure intended {only for a desperate emergency, and the very resort to which {would indicate a national condition of panic, National Banks {were permitted to issue $500,000,000 of currency, on securities {acceptable to the Secretary of the Treasury, or the Comptroller {of the Currency. This has been the only expansion provided for {through our National Banking Act, but were this whole $500,000,000 {to be created at once, it would cover less than five hours of {our banking transactions. It is evident that such relief as {this is inadequate. [*60817*] -9-WOULD YOU? No sane man would attempt to run a manufacturing plant with only five hours of coal available against the emergency of snowstorms, the breaking down of a railroad train or other catastrophe. No farmer would consider himself safe if he had only five hours food for his stock on his farm. No one would consider himself safe if he had only five hours food in his household. ON THE EDGE OF A PRECIPICE. Why is the nation, and why are we not in exactly the same ridiculous situation when we permit ourselves to have only five hours supply of money between ourselves and disaster? The people's needs and their daily transactions only partly appear in our enormous clearings or inter-bank business of $105,000,000 a banking hour. That straight-out cash transactions are very numerous is perhaps best evidenced by the fact that money passes so quickly from hand to hand that the average life of a dollar bill is only 14 months, after which it is worn out and has to be sent in for redemption. DANGEROUSLY INCREASING LIABILITIES. {Our banks cannot expect to lure any more actual cash {out of the pockets or hands of the people than they hold at {present. At least they have not done so, for in the period {that our banks increased their liabilities in the form of deposits {$1,170,000,000, their actual cash was augmented by but {$18,000,000. In other words, they only gained 1-1/2 cents {for each new dollar of deposits which they accepted, and which {they agreed to pay or return on demand. Certainly in case {of stress, or in time of panic or distrust, we need not expect {to have the public deposit any more of the money which it holds; {on the contrary, the people have shown that they will withdraw {further sums of this precious cash reserve, and it is startling {to think that a little over 1% would put us beyond our legal {currency reserve, if it were withdrawn from our banks. CASH IN POCKET OR IN BANK. {But let us get away from the term "reserve fund" {and call it simply the cash in the pockets of the bank. Let {us liken the bank to an individual, who might be required by {law to keep in his pocket so much money which he cannot spend {or pay out, and do his business, and keeps the rest of his {money - a very small part of his means - in circulation. {Strictly speaking, what is the use of this money, if he is {forbidden by law to use or part with it? In such a case he {is merely doing his business with a few pennies, and a very {great business at that [*is the nation's buisness.*] HOW EASILY THE PUBLIC IS SCARED? In a New York moving picture show recently someone yelled "Fire" when a reel film flared inside of a fireproof box. It could not have done any possible harm, but the cry started a panic in a moment, and while no one was killed or hurt inside the building, two persons were trampled to death and many were injured on the outside of the building after they had reached safety. Just so, runs on our banks have started from the [*60818*] -10-most trivial causes. One was started as this articles is being written by someone in Ohio who had received a bad check on a bank; the drawer having no funds on deposit with the bank, the check was marked "no funds". This depositor went out and stated that the bank, instead of the depositor, had no funds to meet its obligations, and a run was started which lasted for days. AN EXAMPLE OF INELASTICITY. We are riding over a rough road in a springless vehicle, when we could just as easily have pneumatic tires, the best of sorings and elasticity instead of rigidity. Pneumatic tires and elasticity are not luxuries on motor cars; they are necessities. No motor car or vehicle could long stand the rack of rough roads unless protected against shock and jar. Then why ignore common sense and harness our greatest motive power to a springless, absolutely inelastic vehicle and expect it to carry us in safety? No wonder we get financial jolts. RECKLESSNESS. It is reckless, improvident, it is scarcely less than idiocy on the part of a nation, and we would not tolerate it in our owm employes. We have 500 men in Congress in Washington who are employed by us and supposed to represent us, and they are paid to take care of our interests. But they have stood around looking at our worn-out and rickety financial machine for years, have known and admitted that it needed repairs, additions and springs put on it, and that they only could make the repaairs. What have they done besides standing around like a lot of incompetents waiting for it to break down before they repair it? You would not toleratessuch inaction on the part of any other hired man whom you, as an individual, might have employed. DEFYING THE COMMONEST PRECEPTS. We defy almost every principle and adage of business in our currency system. The motto of our nation is that in unity there is strength. One of our States has as its motto: "United we stand, divided we fall". We have an army, a navy, a post office department, and a Treasury department. In them, in fact in every part of our government, we show our belief in organization and have a smoothly running machine. Yet we violate every principle when we come to our most important piece of business. ARMY AND NAVY FOR COMPARISON. Our army's strength is in its organization and power of assembly, in the ease and rapidity with which it may be mobilized. Soldiers are organized into companies, companies into battalions, battalions into regiments, regiments into brigades, brigades into corps, and corps into armies. Our navy is organized into divisions. Various types of ships are assigned to each division, and these divisions in turn make up a fleet. There may be a North Atlantic and a South Atlantic fleet, and these fleets will combine end form an Atlantic Fleet. We hold ready for emergency our surplus stock of arms in our arsenals and magazines in which we carry our surplus 60819 -11-supply of ammunition. Without these, the army and navy would be practically useless. WHY NOT A LAUGHING STOCK? Why should we neglect a similar precaution and not deal with the important money question in the same way? The police forces of our cities are not disorganized rabbles; they are also organized, and so is our citizen soldiery or militia and our naval reserve. Should we ignore our commonest of examples? If we ignored all such methods, we would be the military, naval and civic laughing stock of the world. GET THEM TOGETHER. Yet we have 29,000 banks and financial institutions, and up tot he time of the Aldrich-Vreeland bill, never made any provisions for them to get together for defence. These 29,000 institutions may have demands made upon them that can only be resisted for the real good of the nation as a while by organized action. KEEPING THEM APART. But we insist that they stay apart and that they do not assemble, or be permitted to get together to resist strain or demands upon them by their thirty or thirty-five millions of depositors, who may become a dangerous and panic- stricken rabble at any moment. Blind to their own interest, deaf to the pleas of those who see the menace of unrestrained yielding to the impulse of the moment that shuts off view of the death that lurks beyond the veil of fear. THE TREMENDOUS ACTIVITY OF OUR MONEY. Every dollar of available cash in our banks or an equivalent is deposited and paid out, moving in and out of our banks every three days. Our banks are simply like a weir or small dam in a stream over which the water passes. If any of the funds fail to come into the bank by reason of panic, expressive demands for money, or slowness in the payment of bills, it is equivalent to the diversion of water from the dam, and consequently it does not pass over the weir, hampering all the industries below which depend upon it for power with which to turn their wheels. If each person in the United States were to withdraw approximately $16 from our banks, there would not be a cent of cash or bills left with which to do business. There is only $18.99 in gold or its equivalent in gold certificates per capita, $8.91 in silver, and $8.71 in paper; and about half of that has already been withdrawn or is kept out of banks for current uses. NEEDED AND ENCOURAGING GUERILLA WARFARE. By reason of the disconnected existence lived by our banks, a system of guerilla warfare has grown up and must go on among the very institutions which we trust and depend upon. We have only so many available arms or stands of arms in the form of currency, and when a demand is made upon one, for cash, if he hasnit the funds, he must get them or take them from his neighbor. 60820 ANSWER THIS FOR YOURSELF. -12-Our nation is a great partnership, and the interest of one is the interest of all, whether the man has five cents or a million dollars. When our banks are ready to enter into a defensive co-partnership, not merely for their own protection, but for the protection of the money and deposits of the nation, why should we not permit them to do so, in fact, give them every facility and encouragement. We are fully aware that the National Banking System fails to perform its functions adequately. Why not remedy it and insure a greater soundness than at present, and give it elements of economy and flexibility, which are but another word for safety? As we have shown, the rigidity of the reserve requirements of the banks subjects them to the necessity of paying cash when people demand it, and of refusing to loan when their reserve line is approached. A FORCEFUL COMPARISON. No army would be considered efficient or as amounting to anything that had not both reserves of arms, ammunition and of commissariat. No commander would think of going into battle without troops in reserve to fall back upon to prevent panic, rout, defeat and disaster in the event of temporary reverse, or of attack by forces too great to be repulsed at once. BANK DEPOSITS. The banks that hold deposits of other banks never feel sure that they may not be called upon overnight to supply them with actual cash. Every bank has outstanding liabilities several times greater than the amount of its reserve, and a sudden demand for cash in all parts of the country would deplete the bank funds of every city to a point where they would be in danger of falling below the legal requirements. A large number of banks thus live in a condition of doubt whether they may be suddenly required to part with the whole of their surplus reserve, thereby being deprived of the power of making further loans to their customers, with a money loss to the treasury department, and a violation of our national banking laws. SURPLUS RESERVE. It may not be amiss here to distinguish between the surplus and the surplus reserve. The surplus reserve is the difference between the reserve required by law and the actual cash reserve on hand. It is only the surplus reserve that can be loaned out. The surplus has no connection with the surplus reserve. The surplus is profit that would accrue to stockholders if the bank were to be liquidated. WHY NOT A REMARKET FOR GOOD BANKS PURCHASE. The man who buys a horse our a house can borrow upon it in turn. Would it not be well to permit our commercial banks to take commercial paper to some place where they could sell or hypothecate it or issue currency against it all, guaranteeing it not for their own benefit, but to enable them to tide the public over, and keep in safety the credit structure and the dollars of its depositors? 60821 Here is a sample of the absurdity of our system. -13-There have been times when we could have reduced the national debt by retiring outstanding bonds. Was it done? No, it was not deemed advisable as it would reduce the quantity of our money in circulation. COMPULSORY INDEBTEDNESS. Many of the bonds called in would have been found to be on deposit with National Banks who had issued banknotes against them. When the banks turned in the bonds, they would be forced to retire the notes they issued, thus reducing the money in circulation. Now why should a man or a nation be required to stay in debt in order to be able to have money to do his business with? Why should prosperity depend upon being in debt, and be curtailed if the nation got out of debt? No wonder they layman turns dizzy when asked to think a little about out currency system or lack of system. What more ridiculous a situation could present itself!? Yet this is exactly the position in which the government has placed itself in regard to our National Banks and the power to issue national banknotes, which form one-fourth of the circulation of the country, and the government one-half of the actual cash reserve in our banks. A BOGEY MAN. We have been holding back monetary relief from ourselves for fear someone would get control of our reserve fund, or a possible central bank. It is ridiculous to find such a bogey man scaring a nation and its legislature into inanition. Such a Jack o' Lantern would only amuse a 2-year old child. We have 29,000 banking institutions, and it is ridiculous to think that they would permit control or dominance over them by any one influence. In the present temper of the legislation and the people, it is too absurd to consider, for we could instantly change any law that would pwermit such a thing more quickly than we could make it. Any of the plans for monetary relieft suggested carefully guard against any such thing, and at least one of them gives each bank, regardless of size, an equal vote, thus the bank with $25,000 would have as much to say as the bank with $25,000,000. COULD NOT BE DONE. To bring it home more clearly, we have 3,000 counties in the United States. If each one elected 10 senators, each one with an equal vote, the possibility of controlling such a body would be too remote for serious consideration. So with any of the currency plans. We have an average of 10 banking institutions to a county, and who could control every county in the United States, or even a majority of them? We must remember that banks are voluntary and deposits likewise and the people would handle this matter for themselves the moment they thought their interests were in the hands of dangerous or unscrupulous persons, or being used for the benefit of any clique or financial combination or trust. They could end such domination in a moment by withdrawing their funds from the banks or combinations so controlled, and there would only be a shell left; the people would have the kernel 60822 -14-and the whip-hand, and be able to thoroughly protect themselves as they always have and will be unless a law is provided by which money deposited in banks must remain there indefinitely, which is a proposition which the people would not stand for for a moment and which is too absurd for consideration. {In practically all our currency association or {relief plans, the little bank has an equal vote with the big {bank, and the idea that the 18 five million dollar banks could control {7,400 National Banks, 13,823 State Banks and other {institution and nearly 4,000 independent institutions, whose {membership in such association would be voluntary and not compulsory, {is unworthy of even the smallestv part of a second {thought. There is no need for us to be alarmed about the fact that we have a few large banks, for Canada with its 8,000,000 of people, has more big banks than the United States; London has 10 banks bigger than the 3 largest banks in New York: Berlin 5 and Paris 4, but no country in the world in any way approaches us in the number of banking units and institutions, and if banking has not become a monopoly in these countries - the principal countries of the world - it surely will never become so in the United States. INVITING DISASTER. {We are needlessly at sea instead of on firm ground {as we should be. We are on a tiny raft, overloaded to the {water level, without life preservers or more than an hour's {provisions. We are in the track of vessels and storms, and {yet we have voluntarily permitted our arms to be tied to our {sides, though we may be run down and swamped at any moment and {suffer a catastrophe that would wreck homes, fortunes, lives, {and all that men have striven for years to attain, which would {bring such a widespread flood of anxiety, sorrow and suffering {that it would make the Titanic disaster seem like a jest. YOUR INTEREST IN THE QUESTION. If you have no bank account, nor any money yourself, some of your friends, relations and neighbors have, or somebody owes you money or pays you wages, or you must borrow or beg some money from somebody. You cannot get away from you personal interest in the money, currency and banking problem. Whether you know it or not, you are sitting on the roof of a nitro-glycerine factory that may explode at any moment, with or without apparent cause. Will you get off or stay on? If you want the menace removed, write your Congressman or Senator: ask him to listen himself and insist upon action being taken on the most important of all the problems before us as a nation. Let us remove the slumbering volcano beneath us, lest it burst into an eruption worse than those of 1883 and 1907. We are sorry for the people who live on the slope of Vesuvius, or who have to live in Messina, but they are compelled to remain or return to their dangerous situation, while we voluntarily place ourselves again and again needlessly in equal danger, without a possible excuse that a grain of common sense could find a warrant for. [*60823*] -15- FISHER, Irving March 11,1913 Wants President to send a message to Congress in re an International Conference on the High Cost of Living---see 160-A 93 60824[*THOMAS C.McRAE PRESCOTT, ARK.*] [*93*] [*shorthand*] [*THE WHITE HOUSE MARCH 15 1913 RECEIVED*] [*THE LIBRARY OF CONGRESS*] [*acnd 3/13/1913*] March 12, 1913. Pres. Woodrow Wilson, Washington, D.C. Sir: I trust you will not think me presumptious for joining in the request that you provide for the consideration of the Currency question as well as that of the Tariff at the extraordinary session of Congress to be convened in April. The Tariff is of supreme importance and should of course, receive consideration first; but as our party is pledged to Currency Reform and the people generally desire and expect it from your administration as soon as possible, and as both Tariff and Currency have been the subject of discussion for several years past, I believe it will be wise to consider both of them this year while your friends fresh from the people, are in control of the Legislative Department of the Government rather than to postpone either of them until next year when the Congressional election will absorb much of their time and attention. My observation has been that both Tariff and Currency Legislation can be enacted more satisfactorily before the pre-election primaries are held rather than pending or after them. [*60825*]THOMAS C. McRAE PRESCOTT, ARK. Pres. W.W. 3-12-13. Pg.#2. My apology for writing you is the interest that I feel in the success of your administration and in the reforms that you so ably represent. Accept assurances of my highest consideration and esteem. Respectfully, Tho. C. McRae TCM/ms. [*THE LIBRARY OF CONGRESS*] [*60826*] [*ARNOLD POLLAK 715-721 MERCHANTS EXCHANGE*] [*Encl ute?*] [*San Francisco, Cal.,*] March 15th/13 His Excellency The President. In November 1907 when this country was in the throes of the money panic, I suggested to Mr. Geo. W. Cortelue a plan for the establishment of a U.S. Central Bank at Washington D.C. Thereby curtailing the power of occasional vicious financial combinations, That idea I understand had the consideration of this Nations council at that time, while the trouble lasted. Bringing this idea to your excellencies thoughts may be a good suggestion, and possibly be made, and be embodied as a feature of a new Banking and Currency legislation, in this manner protecting all classes. This suggestion is individual, and therefore has not been made a part of my letter as influenced by arguments as advanced by Congressman Glass, of the Banking and Currency Committee. Your humble servant Arnold Pollak [*signature*] Inclosed letter for your kind perusal. Would thank you for its return. I would thank this Administration to consider me, in the event of a similar opportunity, being particularly adopted for matters pertaining to the Commercial end of the Tobacco and Cigar lines. I am an independent Commission merchant in these lines for thirtyfive years. The trust has not done me any good. [*above*] [*60827*][*ARNOLD POLLAK 715-721 MERCHANTS EXCHANGE SAN FRANCISCO, CAL.*] March 15th/13 [*ACK'D MAR 20 1913 C. T. H.*] [*93*] [*THE WHITE HOUSE MAR 20 1913 RECEIVED*] To his Excellency Woodrow Wilson The President U.S.A. Washington, D.C. Honorable Sir: - The request of the S.F. Chamber of Commerce, for a united effort on part of its members, and the appearant necessity of an early change in our Banking laws, is my excuse for this unusual liberty. I hope the opinion expressed by all Commercial Chambers throughout the United States, may aid your deliberation upon this vital matter, and change your view as recently expressed: "That public sentiment as to banking reform has not yet crystalis The passage of such improved laws, and successfull working of same during your administration, would add luster to yourself, and aid permanency to the Party now in power. I remain, Honorable Sir, Your very humble servant ARNOLD POLLAK [*signature*] [*60828*][*93*] FIDELITY TRUST COMPANY KANSAS CITY, MO. [*ACK'D MAR 19 1913 T.M.H.*] [*THE WHITE HOUSE MAR 19 1913 RECEIVED*] March 17, 1913. [*THE LIBRARY OF CONGRESS*] Dear Mr. President: It is barely possible that you may recall my being introduced to you on the platform when you addressed the American Bankers’ Convention at Denver, in 1908. I had also the pleasure of meeting you in Kansas City about a year ago. I am informed by friends that you are making a most thorough investigation of American banking and currency, and, if you have time, you might, I think, be interested in an article in which I have treated the question from the standpoint of the country banker. The article appeared in the American Economic Review for June, 1911, and I am taking the liberty of sending you a copy under separate cover. It is entitled “Financial Co-operation and the Aldrich Plan.” Trusting that because of the point of view the article may be worth notice, I am, Very respectfully, Thornton Cook Hon. Woodrow Wilson, President of the United States, Washington, D. C. [*f*] [*60829*]COPY. COPY. FIDELTI TRUST COMPANY KANSAS CITY, MO. [*ACK'D MAR 19 1913 T.M.H.*] March 17, 1913. Dear Mr. President: It is barely possible that you may recall my being introduced to you on the platform when you addressed the American Bankers’ Convention at Denver, in 1908. I had also the pleasure of meeting you in Kansas City about a year ago. I am informed by friends that you are making a most thorough investigation of American banking and currency, and, if you have time, you might, I think, be interested in an article in which I have treated the question from the standpoint of the country banker. The article appeared in the American Economic Review for June, 1911, and I am taking the liberty of sending you a copy under separate cover. It is entitled “Financial Co-operation and the Aldrich Plan." Trusting that because of the point of view the article may be worth notice, I am, Very respectfully, Thornton Cooke Hon. Woodrow Wilson, President of the United States, Washington, D. C. [*60830*]Reprint from The American Economic Review, June 1921, published by American Economic Association. Inquiries in regard to membership should be made to Professor T. N. Carver, Harvard University, Cambridge, Mass. Financial Co-operation and the Aldrich Plan Thorton Cooke [*60831*]U'REN & SCHUBBEL ATTORNEYS AT LAW Deutscher Advokat - OREGON CITY., ORE., March 17, 1913 - Hon. Woodrow Wilson, Washington, D.C. My Dear Friend:- I am not addressing this officially because it is only a private suggestion. Can't you cripple the Beast before you hunt him in the tariff jungles? As the law stands, he can use the banking system to create any trouble he needs, from a local or general temporary scarcity of money to a raging panic. I believe the owners of special privileges under the tariff, currency and transportation laws, are fairly free from serious danger while they have that power. Would they not lose most of that power if the currency law was amended to allow any person to borrow treasury notes, through the postal savings banks, at any time. in sums of $100 or any multiple thereof, on the SAME TERMS AND SAME SECURITIES that the government guarantee the promissory note of the National banks to circulate as currency? The currency would then expand and contract in obedience to the natural demands of business, instead of responding to the manipulations of the great financiers. Such treasury notes need not be legal tender. If they are made receivable by the U.S. treasury for all debts, dues and obligations payable to the government, like the first $60,000,000 issue of treasury notes during the war, their debt paying power would be equal to gold. The rate of interest for such loans is immaterial, so long as it is the same for banks and private citizens. But 3% or 4% would be a good substitute for some of what you will lose by abolition or reduction of the tariff schedules. I think such an amendment would meet almost unanimous approval from the plain people as soon as it is stated, and with the plain people I includeU’REN & SCHUEBEL ATTORNEYS AT LAW Deutscher Advokat OREGON CITY., ORE., March 17, 1913. Wilson letter continued. most of the traders as well as the workers. But I will not write an argument now, first, because you have probably thought of the plan, and second, I hope to ask your help next month on some work for Oregon in which I know you are interested. That will take as much time, and I am afraid more, than you can afford. The comments I hear thus far on your published plans are generally favorable. Sincerely yours, W. S. U'Ren [*60841*] [*MAR 19 1 ACK'D MAR 19 1913 C.T.H.*] [*93*] [*THE WHITE HOUSE, MAR 19 1913 RECEIVED*] Silver Springs, Maryland. 18 March, 1913. Hon Woodrow Wilson, President of the United States. Sir:- I have the honor to request that if compatible with your [purposes] plans and not repugnant to your purposes, you embody in your forthcoming message a big reference to the desirability of a clause in the new tariff bill promoting the importation of the plumage of wild birds. The proposed measure is receiving very favorable consideration by the Committee on Ways and Means of the House of Representatives; and as it is directly, in line with the plumage law recently adopted by New Jersey, largely through your advocacy of it, I am in hope that you may find it possible to indicate in some way your friendliness toward such a clause in the tariff. If you could grant me an interview of five minutes, at any time you might appoint, I should be glad to wait on you and explain more fully the measure and its present statues. I have the honor to remain, Very respectfully, Henry Oldys [*signature*] [*2 Enclosures.*] [*60842*]HON. JOE BARNARD, 1308 R. I.AVE., WASHINGTON, PRESIDENT MISS HELEN P. CHILDS, CHEVY CHASE, MD., SECRETARY HENRY OLDYS, SILVER SPRING, MD., CHAIRMAN TARIFF AMENDMENT COMMITTEE AUDUBON SOCIETY OF THE DISTRICT OF COLUMBIA MAY 18 1897 KEEP BIRD PLUMAGE OUT OF THE UNITED STATES. Reasons why Schedule "N" of the Tariff Act should be Amended so as to Prohibit the Importation of the Plumage of Wild Birds. 1. Bird slaughter is greater than ever before in the history of the world. In ten years more, if this slaughter be not checked, a dozen or more of the most beautiful species will have been completely exterminated. Like the passenger pigeon, the dodo, the great auk, the Labrador duck, Pallas's cormorant, the Eskimo curlew, and several of the parrot tribe of the West Indies, they will be merely a fading memory. Many more will be well on the road to extinction. 2. This slaughter can be stopped only by closing the market for plumage. The number of regions ravaged makes it practically impossible to secure laws prohibiting killing everywhere; and in the remote wildernesses where the work of destruction is conducted it is impossible to enforce such prohibitory laws as are enacted. 3. More plumage is sold in the United States than in any other country. To cut off this great market would heavily diminish the demand for plumage of dead birds and so would decrease the supply. England and Germany are trying to close their ports to wild-bird plumage. Such action by the United States will aid them to accomplish their purpose. 4. London, Paris, Berlin and New York are the distributing centres of plumage for the world. The closing of the New York distributing market is likely to be followed by the closing of those of London and Berlin. With these three put out of business, that of Paris will alone be left; and the damaging effect of loss of trade, combined with the coercive influence of example, will quickly place that of Paris in the limbo of discarded evils. 5. The action is not a new venture. Australia, in March, 1911, by edict of the governor-general, cut off the importation 60843of the plumage of a large number of species that are approaching the danger line. England's four attempts to pass a similar law led to a parliamentary investigation that was satisfactorily searching and indicated clearly the beneficial effect that would follow such action. 6. Equally attractive hat trimming will be substituted that will satisfy both women and milliners. Hats will still be trimmed, and ostrich plumes, fancy feathers (of domesticated fowls), artificial flowers, and other trimmings that the art and ingenuity of milliners will devise will leave no room for dissatisfaction, especially as these substitutes will not involve the cruelty and vandalism involved in the present custom of wearing the feathers of birds whose lives must be sacrificed to supply the trimming material. Substitutes must soon be found in any event if the present war of extermination be not checked. 7. The passage of such a law will excite little opposition. Thousands of citizens will be gratified by the abolition of the plumage-wearing custom in the United States. Many women have voluntarily abandoned the wearing of wild-bird plumage, and of those who still retain the custom the vast majority are indifferent to what they wear provided it is fashionable (plumage will become unfashionable very soon after it becomes impossible to obtain fresh supplies). Mary milliners are opposed to the destruction of living birds for the trimming of hats, and most of them are ready to welcome a law that will end the opprobrium their business now excites and place all on an equal footing regardless of location. They would prefer a nation-wide law to variant State laws under which so great inequalities of opportunity exist. The main opposition will come from a handful of importers. 8. The manufacture of 'fancy feathers' in the United States will be greatly stimulated. This is a growing and very profitable industry, which has more than doubled in the past five or six years. With the withdrawal of the competition with wild-bird plumage now sustained, it will meet with a suddenly increased demand that will necessarily bring a great stimulus. The trade in ostrich plumes will likewise be much benefited. 9. Every nation is interested in preserving the beautiful and interesting things of the world. In the present age of travel and invention no nation has a monopoly of the natural objects of interest found within its borders. The destruction of the Riviera would curtail the pleasure of Americans no less than that of Italians and French. Switzerland is the playground of the entire civilized world, not of the Swiss alone. The maintenance of law and order in Mexico is necessary to the good of American and English interests as well as Mexican. The preservation of the world's resources affects the well-being of all nations, whose various interests are now so intermingled and blended that they can not be disengaged. Whatever is useful or valuable, wherever found, can be enjoyed by the whole world; for enterprise and ingenuity bring such features to those who are unable to go to them. Thus we are enabled to accompany Peary and Amundsen to the poles, and explore the jungles of India and the plains of Africa with Kearton and Rainey. In zoological gardens we can find living examples of beasts and birds from every quarter of the globe, while aquariums show us the different forms of life that inhabit the waters of the world. The near future will bring to us vivid representations of the wonderful and beautiful evolutions of exotic birds that will yield delight to millions, provided we refuse to allow these birds to be sacrificed to the single use of hat trimming. Instance the lyre-bird of Australia, a bird of magnificent plumage, which, besides possessing an attractive song of its own, mimics the songs of other birds, human speech, the varied noises of the barnyard, the sawing and chopping of wood, the creaking of wagons, and many other sounds with a skill that makes our own mockingbird seem the veriest amateur. It is profitable that before long photographic and phonographic reproductions will bring these interesting features to us from the islands of the Pacific, to be a perpetual delight to the whole world. Shall we permit this source of possible enjoyment to be obliterated in a few years (in five or ten years the lyre bird will be exterminated at the present rate of destruction) solely to allow a few mercenary men to make a profit out of its feathers? But there is a higher viewpoint than that of self-interest. The world iwthall its wealth and beauty is ours only in trust. It is committed to our keeping to use, not abuse, and we must hand it down to our heirs unimpaired, or be guilty of a breach of trust. We received as our heritage a world filled with noble forests, teeming with game of all kinds, rich in fertile soil, abounding in useful, beautiful, and interesting birds; if we exploit it for our own temporary benefit and turn it over to our successors denuded and stripped, posterity will not hold us guiltless, but will brand us as grossly ignorant or unprincipled vandals, utterly unworthy of the trust imposed on us. 60844HON. HOB BARNARD. 1306 R. I. AVE., WASHINGTON, PRESIDENT MISS HELEN P. CHILDS. CHEVY CHASE, MD., SECRETARY HENRY OLDYS, SILVER SPRINGS, MD., CHAIRMAN TARIFF AMENDMENT COMMITTEE AUDUBON SOCIETY OF THE DISTRICT OF COLUMBIA MAY 18TH 1897 KEEP BIRD PLUMAGE OUT OF THE UNITED STATES. An amendment to the tariff act prohibiting the importation of the plumage of any wild bird has been proposed to the Committee on Ways and Means of the House of Representatives, which is now preparing a new tariff bill to be considered by Congress at the special session to be called on April 1, 1913. The present law (Paragraph 438, Schedule "N") imposes a duty of 60% on dressed and 20% on crude or undressed plumage. It is proposed to amend this so as to omit the plumage of wild birds, the importation of which shall be prohibited except for scientific or educational purposes. A precedent for this measure is found in the present tariff act which prohibits importation of the eggs of game birds. A hearing was held on Schedule "N" by the Ways and Means Committe on January 30, at which the proposed amendment was urged by Dr. W. T. Hornaday, representing the New York Zoological Society, and Mr. T. Gilbert Pearson, representing the National Association of Audubon Societies. An excellent impression was made and several members of the committee, including the Chairman, Mr. Underwood, of Georgia, received the proposition favorably. The measure also has the support of the U.S. Department of Agriculture, the Camp Fire Club, the American Ornithologists' Union, the American Society for the Protection and Propagation of Game, the Agassiz Association, and such leaders in the bird protection movement as Dr. George Bird Grinnell, Dr. David Starr Jordan, Mr. Ernest Thompson Seton, Mr. E. H. Forbush, Mr. Jefferson Butler, Mr. John H. Wallace, Gen. John C. Speaks, Mr. Ruthven Deane, Mr. William Brewster, and many others. You are earnestly requested to help secure this valuable legislation by urging it upon the representatives of your State in Congress and by giving it the widest publicity possible. The support of the millinery trade is particularly desired and it is hoped you will use your best efforts to secure the endorsement of the measure by the leading milliners of your city. HENRY OLDYS, Silver Spring, Maryland, on behalf of the Audubon Society of the District of Columbia. MARCH 1, 1913. [*60845*] WOMAN'S EDUCATIONAL LEAGUE OF WASHINGTON, D. C., March 18, 1913. For copy of resolution adopted by the Woman's Educational League Requesting the President to urge, in his message to the extra session of Congress, legislation granting suffrage to women. See 89 [*93*] [*60846*] HEFLIN, Rep. J. T., La Fayette, Ala., March 20, 1913. Expresses hope that the President will not make any suggestions in his first message favoring woman suffrage. See 89 [*93*] [*60847*]Old Fashioned Wax Upper Leathers. All Grades of Hides. Raw Lace and Mats Tanned. Hand Made Horse Collars, Toner's Patterns, no pads needed when these collars are used. United Phone, 451 Baltimore Street. WM. S. DUTTERA, PROPRIETOR OF Gettysburg Battlefield Tannery [*THE WHITE HOUSE, MAR 21 1913 RECEIVED*] [*93*] [*ACK'D MAR 21 1913 C.T.H.*] President Woodrow Wilson - White House. Dear President, I see you have struck the key note in calling your extra session, The currency question is one of the most important [*#*] measures to go into with your sleeves up. The Wall St. sharks I'll bet are gaping, you acted on the spur [spur] of the moment. They were planning to destroy the local factories for want of money until the tarrif would have had its workings, and crippled. Six months all other smaller producers of nessaries. [To still] are climb higher on the common consumer: Issue scrip currency of Lincoln style used in 1863 until you arrange proper U.S. money on the investment in old farms all over the U.S. on first mortgage at 2 per cent, some will be as safe as gold, and let it out [*60848*]Old Fashioned Wax Upper Leathers. All Grades of Hides. Raw Lace and Mats Tanned. Hand Made Horse Collars, Toner's Patterns, no pads needed when these collars are used. United Phone, 451 Baltimore Street. WM. S. DUTTERA, PROPRIETOR OF Gettysburg Battlefield Tannery [*2*] Through Postoffice, Bank buildings one in every country. And have two good men, farmers not lawyers to put the value, who knows the value, and they will relieve the Panick, sure to be here in 60 days this is there only time to pinch us. Gold we can not eat, but products of the farm will let us exist. This would [*make*] J.P. Morgan & Co. sick, They can not down this. You will have the money or farm land, Bonds & recorded in the Court House and will help the class, that should be helped at a low rate of interest, The banks are straining a point at the governments wish. Now is a time to sicken all the money sharks. Beg pardon for your time when you come to the Battlefield town this summer to see a common Tanner almost out of business due to the U.S. leather [bust?] running us out of raw hides, and we were obliged almost to quite tanning. Yours truley, WM S. Duttera [*60849*]Dear Secritory J. P. Tumulty Read Item we feal this Explenation his letter Enclosed Even in this town it is a serious problem but canot be helped Mark Hanna mat Quay & Guaman of end & 1 Dez - the like left it go this way it will be hard on you & the President to study I hope your strength will be with you Rembe your viatmin spend a week with me if you can are you got Family, quietly that it what will do you good if everything hapen you can slip over home for a day or so N S Dutten " [*60850*]LAIDLAW, James B., Chicago, Ill., March 21, 1913. On behalf of the National Men's League for Woman Suffrage urges the President to recommend in his message to the special session of congress woman suffrage legislation. See 89 [*93*] [*60851*] 9747 THE WHITE HOUSE MAR 23 1913 RECEIVED ACK'D MAR 24 1913 C.T.H THE FIRST NATIONAL BANK OF FLORENCE, S.C. UNITED STATES DEPOSITORY CAPITAL $150,000.00 FLORENCE, S.C. J.W.McCOWN, PRESIDENT. S.H. SAUNDERS, VICE PRESIDENT. B.G. GREGG, VICE PRESIDENT. JULIEN C.ROGERS CASHIER. B.W.COVINGTON, ASST.CASHIER. RK.RUTLEDGE, ASST. CASHIER. S.H.HUSBANDS, ASST. CASHIER March 21st, 1913. 93 President Woodrow Wilson, Washington, D.C. My dear Sir:- You will please pardon a small country banker writing you on a matter of finance, but we feel sure that under the existing conditions of the money market you will be glad to read an extract from " The Bache Review" of March 8th, which we have marked and enclosed herewith, and to our mind, throws some light on the cause of the present situation. We trust that you will recommend that some practical banking laws be enacted during the coming session of Congress. [*#*] With highest regards and best wishes for you and your administration, I remain, Very truly yours, JULIEN C.ROGERS Cashier JCR/E 60852[*Merkend Copy.*] [*[93]*] The Bache Review A SUMMARY OF THE GENERAL FINANCIAL AND BUSINESS SITUATION PUBLISHED EVERY WEEK BY J. S. BACHE & CO., BANKERS Vol. 2 NEW YORK, MARCH 8, 1913. No. 10 THE REAL OBSTRUCTION.—STOCK EXCHANGE MATTERS.— GENERAL REVIEW.—THE IMMEDIATE OUTLOOK.—THE FUTURE. The Real Obstruction. Anyone looking back observantly over the condition of things in the United States for the last six months will note that the really dominant factor has been the Balkan War and results growing out of it. Our security market is evidence of this. At the first of October, with a record crop assured and the business of the country rolling up in a continually increasing volume, there was every indication of a great trade boom and a resulting rise in the market for securities. The first outbreak of the war did not affect these prospects. The markets abroad broke badly and our own securities were rushed into the New York market, but it will be remembered how prices withstood sturdily the first very large dumping of securities over here. Gradually, however, prices began to yield and in the end our markets succumbed to the threatening situation abroad. And from this we have not recovered. It will thus be seen that our politics here, election, its results, and all that, and our general matters, have had practically no effect upon the situation. And now the Administration has actually changed and matters remain about the same. Everything is waiting for the conclusion of the war. Our own trade has not thus far been affected. Abroad, business, outside of the involved countries continued good for a time—in England and France and in Germany also—and, in fact, is still prosperous, although now beginning to feel the strain, as the prolongation of the war is commencing to have a very bad effect. The stoppage of new issues of securities on the Continent took place some time ago. Investors in England, France and Germany, in normal times, loan to the borrowing countries about $375,000,000 every month. This ceased months ago, because of distrust created by the Balkan trouble, and it can be imagined that a cessation of this character is very serious and brings about much distress. This situation in the borrowing countries is bound to react on the trade of the lending countries, and to some extent has already done so. A wearisome prolongation might turn back trade all over the world—even in the United States. The matters in dispute between the combatants are really comparatively of small moment, but due to the obstinacy of Turkey, which is completely defeated, the situation is prolonged. It is the greatest relief to know that now negotiations are to be resumed and it is to be hoped that a settlement will be speedily made. We shall then look to see the beginnings of much betterment in our own affairs. The hoarding of cash which has been going on in Europe for the last six months or since the outbreak of the Balkan War has, as it were, concentrated a vast sum which, when the peace is at last declared, will stand as a large reserve for reinvestment and to that extent will prove an important impetus when the time comes. It is calculated that new loans to the extent of $550,000,000 will have to be raised on the conclusion of the Balkan War. [*60853*]Stock Exchange Matters. Among the bills introduced for regulation of the Stock Exchange the one limiting the rate of interest which may be charged to borrowers, to 15 per cent., is intended to protect the borrower, or may perhaps be the outcome of a reading of the Pujo Committee testimony, wherein the conclusion was drawn or made to be inferred by the Committee that there was a wicked conspiracy of speculators in New York to raise money rates in order to draw funds away from the rest of the country where they were needed in business operations. The whole inference, of course, was wrong and the attempt to chain down the operation of natural law would be as ineffectual or as disastrous as undertaking to "harness the ocean and keep back the tides. In order to make it impossible to get around the law a provision is attached making it a penal offence to give or receive a commission. In one way the effect of all this would be most alarming if the law were enforced. For instance, if money were tight and the rate had risen to say 10 per cent., a body of speculators short of the market could easily bid the rate up to 15 per cent. and engineer a corner in funds. If then no money were obtainable at 15% or less, a wholesale shower of securities would be forced upon the market, producing a great fall in the price, and a condition hordering on panic might ensue. Thus a weapon would be placed in the hands of speculators for the fall, who might thereby reap a large profit, to the injury of the entire country. The whole idea of the Usury law is uneconomic and unpractical. In the State of Massachusetts there is no Usury law, except that applying to loans of less than $1,000. This is called the “Small Loans Act,” and the law is avoided, by the charging of commission for obtaining a loan or a renewal, to such an extent that the act is practically nullified and an exorbitant rate of interest oftentimes obtained. A correspondent, the vice-president of a Massachusetts bank, writes us on this subject: “Bankers in Massachusetts do not usually charge their customers over 6 per cent., except in exceptional cases where there is an increased risk which the borrower recognizes. “I believe the abuses in this commonwealth are neither greater or less, because there is no Usury law. As, if such a law existed and the lender had it in his power and inclination to charge an exorbitant rate of interest, he could avoid the law by discounting the note or by charging an extra percentage as a commission for making the loan, or else refer the loan to some broker who would receive a commission for placing it. “The fact that no attempt is made to place a law against usury on the - statute books in this State is evidence that there seems to be no abuse in allowing parties to contract for their money freely.” The experience abroad for practically generations has proven that a free market makes money cheaper on the average in the long run. As far as possible, all business should be free from harassing legislation, as the natural laws of trade are unerringly operative, and correct most abuses. This freedom is especially desirable in a great security market and adds very materially to the value of the Exchange as a place to buy and sell advantageously. It also adds to the value of the securities dealt in. The advantage of purchasing securities listed on the New York Stock Exchange is generally admitted by investors; and even the bond houses which bring out issues of their own, make it a rule to have these listed as soon as possible and as far as possible, in order to make them widely known and because of the good character which such listing gives to the security. The requirements of the Exchange in this regard are becoming each year more rigorous and comprehensive, thus adding to safety for the investor. The investor is at the advantage of having his orders executed at but one-eighth of one per cent commission, whereas outside securities are dealt in at a much higher rate of commission, rang- ing in some instances from one to five per cent. In case of sale the unlisted security is again subject to this larger commission. The quotations on the Exchange are the mirror of demand and supply over the whole world and thus reflect more nearly the true value, while unlisted securities are at the disadvantage of having to find either an individual - purchaser or seller and so producing quotations wide apart. The listed security may be almost invariably negotiated promptly as collateral at the banks. On the other hand, this facility is almost completely cut off for the unlisted security, except locally where it is known. General Review. It is useless to comment on an Administration a few days old. Of important and most encouraging consideration is the persistent report that President Wilson is determined upon prompt and sound revision of the Banking and Currency system. It may be that the country has at last had raised up for its salvation an obstinate and courageous Executive who will force through such legislation. If accomplished, it will be a national redemption of incalculable consequence and a guidance into the promised land after fifty years of floundering in the Wilderness. Much thought has been given to the probable policies of the new Administration with regard to business. Generally speaking, business does not look forward with apprehension to these. The sentiment of large business bodies in this matter is set forth in an article in American Industries for March, which is just being issued, on “Business and the New Administration.” The article is written by Mr. A. Parker Nevin, General Counsel of the National Association of Manufacturers. He says: “The American business constituency will watch the incoming Administration with careful scrutiny. Business does not assert its own perfection. It does believe, however, that many proposed legislative enactments are in reality not needed and will have ultimate injurious effect. Any measure calculated to benefit American business interests and likewise benefit popular requirements, should be encouraged and supported. Any proposal based upon the idea of special legislation is repugnant to the nation. “Business desires to have as little contact with politics as is possible. The old days of the close alliance between the politician and the special business interests have passed. They must not return. But the day when legitimate business shall have the right of impartial hearing and the presumption of honesty in its claims, has come. If President Wilson will dismiss the clamor of the passing demagogue and rebuke the sincere but often misguided extremist and will guide the country’s affairs in the light of seasoned experience and stimulating common sense, he will receive the award of ultimate popular approval.” The market had been peppered with much short selling on Monday anticipating depression in the actual shifting to a new party, but the address, the announcement of the Cabinet and the physical change at the White House, were all taken calmly, necessitating short covering and a consequent rather bright uplift. This is about all, in the way of market up-and-down changes, that may be expected for a time, as far as effect from our own happenings may be produced. There are, however, rather good reports from the business of the country, the iron statement for February being one of these. February marks the high water for iron output per day at the rate of 92,369 tons, according to the Iron Age, which puts the daily capacity of all active furnaces on March Ist as 93,086 tons; so that the average daily output for February is within 617 tons of every ton that can be made. The total output for the month was 2,586,337 tons. A year ago for the same month the output was 2,100,000 tons, and the year before 1,794,000 tons. The great rate of production of pig iron indicated. by last month’s figures suggests consideration of whether or not we are nearing the over-production period, a continuance of which would put the iron [*60854*]With trade in sight, somewhere ahead on the down-hill path, which thus far has not been visible, the progress has been almost steadily upward from month to month. With this increase of output, there is fortunately more inquiry in the pig iron market. In fact, the history of this movement shows that no effect has been made by the various events here and abroad, which have produced more or less depression in the stock market. The Immediate Outlook. That the Balkan War influences are and have been the real obstruction is now being visibly evidenced by the situation in the money market. Here, up to the present time, the fact that there is little speculation has kept money fairly easy, but the outgo of 30 million dollars in gold since the beginning of the year has been steadily depleting our supply until the surplus is close to the vanishing point. Ours is the only civilized country where the gold reserve is absolutely at the mercy of every other nation. We have no institutional power to protect it, and high money, which follows after the gold has gone out, is the only thing that helps to stop its export. Our gold holdings, instead of being in one reservoir, are scattered all over the country, and consequently, we feel a reduction in the supply more quickly. The situation abroad is strained, with Berlin as the acute point. Berlin bankers have been bidding for money in this market and have now advanced their offer to 6½ percent for loans until the end of April. The New York banks for some time have been avoiding time loans, and any available funds have been used in the call market; this has kept the rate there, thus far, low. We are now, however, approaching the point where higher rates for money all around may be expected. This leaves no foundation for any dependable, speculative, rising security prices. The Future. This is the situation speculatively. As far as we, as a separate country, are concerned, all unfavorable factors seem to have been fairly discounted and the position, basically, is sound. We have ahead of us the tariff ceremony, for which the stage is now being arranged. When this is at its height, the spectacle will appear bloody, and prices will probably reflect the disturbance, but the interests of constituents of even Democratic Congressmen will have to be considered, and it does not seem likely that anything drastic can be accomplished. With the tariff out of the way, and if President Wilson insists upon and succeeds in passing a sound Banking bill, we shall start on new prosperity, dependent on good crops, natural laws, enormous resources, and the unceasing activity of a hundred million people. J. S. BACHE & CO. The review is sent on application to those interested, for a reasonable time without charge. Those desiring to receive it thereafter regularly may subscribe, paying postage only, namely, 52 cents per annum. It is, however, sent each week, without charge, to customers requesting it.COMBINED DEPOSITS The First National Bank of Florence, S. C., AND OUR SAVINGS DEPARTMENT, THE Peoples Savings Bank & Trust Co. FEB. 4th, 1909, $61,106.67 FEB. 4th, 1910, $224,131.59 FEB. 4th, 1912, $303,123.59 FEB. 4th, 1913, - $401,535.28 Total Resources - - - $824,694.17 STRONGEST INSTITUTION IN EASTERN SOUTH CAROLINA Depository of the United States, State of South Carolina, County and City of Florence We solicit the business of Individuals, Corporations and Banks, promising the utmost liberality consistent with safe banking methods. COLLECTIONS A SPECIALTY J. W. McCOWN, President JULIEN C. ROGERS, Cashier (Over) [*60855*] STATEMENT OF THE BANKS OF FLORENCE, S. C. at the Close of Business, Feb. 4th, [1912] 1913 NAME OF BANK Year Estab Capital and Surplus Cash and in Banks Deposits Loans Total Resources THE FIRST NATIONAL BANK a 1908 170,773.11 110,437.67 323,381.56 390,903.63 716,154.67 and its Savings Department the Peoples Savings Bank & Trust Co.b 1910 30,385.78 12,767.66 78,153.72 94,809.34 108,539.50 TOTAL . . . . 201,158.89 123,205.33 401,535.28 485,712.97 824,694.17 Commercial and Savings Bank . . 1900 140,359.83 28,167.90 222,410.62 336,602.55 382,770.45 Bank of Florence . . . . 1888 79,120.30 45,179.76 192,887.38 198,428.92 272,007.68 Farmers and Mechanics Bank . . 1905 55,624.94 32,926.68 212,149.93 219,708.45 267,774.87 Palmetto Bank and Trust Company . 1911 40,427.00 14,885.80 51,079.50 81,174.91 101,506.50 Total . . . . 516,690.96 244,365.47 1,080,062.71 1,321,627.80 1,848, 753.67 a Dividends Paid $36,000.00 b Dividends Paid $3,000.00 (Over) [93] [THE WHITE HOUSE MAR 24 1913 RECEIVED] ACK'D MAR 24 1913 C.T.H. *LIBRARY OF CONGRESS* The land is the Natural Resource of all the people and not a few Derived from its monopoly value should be the single source of governmental revenue, and from nothing else after- Henry George The Public Utilities are the Natural Resources of the people of cities, and should be kept for them all, and not for a few -After G. Pinchot HENRY G. SEAVER 473 EAST 18th STREET BROOKLYN, N.Y. Brooklyn, N.Y., March 22 1913 Hon Woodrow Wilson President Wash. D.C, Sir:- I beg to submit the following: - I hope that the rumor is not true (that appears in the NY World this a.m.) that at the extra session of Congress on April 7 which is called for the reduction of the tariff, currency legislation will be started. It [*#*] makes me indignant to hear of it. Such a policy would queer not only your promising administration, but throw the Democracy out of power for certain- The "money trust" are using no doubt such a lever - They did it before. They knocked out Cleveland by that means, and he was fool enough not to know it. I am no "greenbacker", but it is true this country has got along on practically paper and the faith of the people, for many years and can survive another six months on it. I suggest Reform & reduce the tariff first, as the people elected you to do, and afterwards tackle the money questions. Resp Henry G Seaver [*60856*][*N. C7 Y 9*] Erie, Pa 3-23-13 [*93*] [*ACK'D MAR 26 1913 J.F.S.*] [*THE WHITE HOUSE MAR 23 1913 RECEIVED*] J. P. Tumulty Dear Sir Yours of the 20th received and noted. I inclose you a clipping of an article prepared by me for the Erie Labor Journal of last week which is one of a series I will write showing the real intention of the law creating National Banks and Bank notes based upon a bond cursed Nation. Please call the Presidents attention to those I send you they might aid in the currency reform bill that is pressing itself upon the people of this country. Respectfully yours E. B. Willis 111B State St Erie Pa [*60857*]THE SEVEN CONSPIRACIES Editor of the Union Labor Journal: The following, known as the "Hazard Circular," was confidentially sent to all American bankers during the year of 1862, by Charles Hazzard, an English banker, and shows clearly the bankers' object in getting control of the money of the country. I give it in full with two other circulars sent out by the American Bankers' Association, the first on Oct. 9, 1877, and the second on March 12, 1893. Read them and keep them and you will know who and for what purpose a money trust was formed. The Hazzard Circular. "Slavery is likely to be abolished by the war power, and chattel slavery destroyed. This I and my European friends are in favor of, For slavery is but the owning of labor and carries with it the care for the laborer, while the modern or European plan, led on by England, is capital control of labor by controlling wages; this can be done by controlling the money. The great debt that capitalists will see to it, is made out of the war must be used as a measure to control the volume of money. To accomplish this, Bonds must be used as a banking basis. It will not do to allow the greenback, as it is called, to circulate as money for any length of time. For, we cannot control them. But we can control the Bonds and through them the bank issue." How nearly the teachings of this infamous circular have been carried one need only to look about him to see the effects of. "Capital control of labor by controlling wages by controlling the money." The following was sent to all bankers in the country Oct. 9. 1877: "Dear Sir- It is advisable to do all in your power to sustain such prominent daily and weekly newspapers, especially the agricultural and religious press as will oppose the issuing of greenback paper money, and that you also withhold patronage or favors from all applicants who are not willing to oppose the government issue of money. Let the government issue the coin and the banks issue the paper money of the country, for then we can better protect each other. To repeal the law creating national bank notes or to restore to circulation the government issue of paper money will be to provide the people with money, and will therefore seriously affect your individual profit as bankers and lenders. See your congressman at once and engage him to support our interests that we may control legislation. JAMES BUEL, Secretary, 247 Broadway, N.Y. What do you think of that: control of wages, money, press, and congress? Well, here is the "panic circular" issued March 24, 1893, by the Bankers' Association: Dear Sir- The interests of national [*60858*] bankers require immediate financial legislation by congress. Silver, silver certificates and treasury notes must be retired, and national bank notes upon a gold basis made the only money. This will require the authorization of from $500,000,000 to $1,000,000,000 of new bonds as a basis of circulation. You will at once retire one-third of your circulation and call in one-half of your loans. Be careful to make a money stringency among your patrons, especially among your influential business men. . Advocate an extra session of congress for the repeal of the purchasing clause of the Sherman law and act with the other banks of your city in securing a large petition to congress for its unconditional repeal as per accompanying form. Use personal influences with congressmen and particularly let your wishes be known to senators. The future life of national banks as fixed and safe investments depends upon immediate action, as there is an increasing sentiment in favor of government legal tender notes and silver coinage." This shows plainly who have been behind the seven finanical acts of conspiracy that have enslaved the laboring class of America by controlling the money, which control was fully exposed by the Pujo investigating committee. Everybody should secure a copy of the sworn statement made by Frederick A. Luckenbach, of Arapahoe County, Col., made in 1892, which shows how earnest Leyd, of London, England, came to this country in the winter of 1872-3, with a fund of 100,000 pounds and authority to use as much more as was necessary to have congress pass the bill demonetizing silver, a thing to use Leyd's own words, "He would not dared to have done in his own country." The little book, known as "The Seven Financial Conspiracies Which Have Enslaved the American People" should be in every laboring man's home in the land. I have endeavored by the above to show how and by whom and for what purpose chattel slavery was abolished and the wage system of slavery put in its place. Any further information along this line will be freely furnished upon inquiry by the writer. E. B. WILLIS, 1113 State Street, Erie, Pa.Dutee Wilcox, President. Wm P. Goodwin, Treasurer. INCORPORATED 1851 [*back in closet*] [*ACK'D MAR 26 1913 C. T.H.*] PEOPLES SAVINGS BANK IN PROVIDENCE. [*THE WHITE HOUSE MAR 26 1913 RECEIVED*] Providence, R.I., March 24, 1913. Mr. Woodrow Wilson, President of the United States, Washington, D,C, [*93*] Dear Sir:— I am taking the liberty of sending to you a book entitled Money, Credit Currency and a Currency Plan, which contains a paper that I wrote on the subject. The paper was written for the purpose of clarifying and putting into definite form my then somewhat incoherent views on the subject while I was serving this State as its Bank Commissioner. At the request of persons who read the manuscript the paper was printed for private distribution. I trust that this treatment of the subject may prove worth the brief time and attention required to read the book, as it brings out a method not treated by others and is very simple and practicable without disturbing the general banking practice developed in this country. The general function of banking is regulated by the nature of the business by an inherent law which will always exist so long as the relation of a bank is needed by men. Our national bank act is not bad, notwithstanding its obvious defects in the matter of currency and reserves. Very truly yours, Wm P. Goodwin 60859[*THE WHITE HOUSE MAR 27 1913 RECEIVED*] [*ACK'D MAR 27 1913 C.T.H.*] Chicago, March 24, 1913 Hon. Woodrow Wilson, Washington, D.C. [*93*] Mr. President: At the Fourth Presbyterian Church yesterday, Dr. Timothy Stone in a very fervent and emphatic manner thanked God, that there was now at the head of the nation a God-fearing and God-serving man. This prayer of thankfulmess expresses my own sentiments, and those of multitudes of others in this land of ours. The articles from your pen that have appeared in the World's Work, I have read with much pleasure and profit, and in the awakening and crystallizing of public sentiment, they remind me somewhat of the effect the letters of "Junius" had in the times of George III. Your speech at the Bankers’ Meeting in Chicago was a timely admonition to a section of the Money power, that has had a ruthless and destructive sway in Chicago for many years past, and which even now shows no signs of correcting its vicious practices. I enclose you a copy of a letter I have recently sent to Mr. George M. Reynolds, President of the Continental and Commercial National Bank of Chicago, which but faintly expresses conditions as they have existed for a quarter of a century or more in this city. Very respectfully, A. W. Green 337 Postal Tel Bldg Chicago Ill 60860[93] (Copy) Chicago, Mr. George M. Reynolds, c/o Continental & Commercial National Bank, Chicago. My Dear Sir: I have been reading your testimony before the Pujo Monetary Committee, and I am exceedingly gratified to note the remarkable change that has taken place in your sentiments since you first proclaimed that you were one of twelve who controlled the financial interests of this country, and when you autocratically asserted that banks had to violate the law under stress, and that they had to violate the reserve law. When you made that famous declaration, you unwittingly revealed to the public that its suspicion regarding a money power had become a certainty, and you expressed in a few words the cause of the political chaos and the social unrest which brought this country to the very verge of revolt. In your address to the New York State Bankers’ Association at Buffalo, on June 13, 1912, you made a scoffing allusion to what you termed "Well meaning but misguided people who honestly feel that there now exists in the United States a money banditti seeking to pounce upon and destroy the unwary and the unsophisticated." This expression you employed in the face of the exposure of the vicious and tragic ruin, by the Money Power, of the thoroughly solvent Oriental Bank of New York in 1907, which resulted, without any valid excuse, in blasting a fair [*60861*] -2- reputation and in the destruction of a lifetime of energy, application and honest dealing of one president of this fated bank, and in the death of another who had taken his place. This is but one of the many instances of the insatiable and unscrupulous Money Trust,—Money Power, Money Credit, or Money Concentration, — call it by what name you will, in which you have been the exalting oracle, and you and J. Ogden Armour the fostering agents. But since George F. Baker acknowledged to the Pujo Committee that there was a money concentration, which had gone far enough, you have testified before the same Committee that the concentration of money had gone too far, and that it constituted a menace. How unfortunate you did not realize this a long time ago, before it had gone too far, and before it had become a menace. Your admissions, coming at this late day and so contrary to your previous arrogant assertions, savor of a compulsory confession or an eleventh-hour repentance. In answer to the question of Mr. Untermeyer — "Do you approve of the identity of directors in potentially competing companies?" — your answer was: ‘‘No; personally I do not believe that is best; that is the reason I am not a director or stockholder in any corporation that deals with us." I observe that your name is among the newly elected directors of two banks on January 15th of the present year, which are outside 60862-3- of your own combination, while Ralvh Van Vechten, one of the Vice-presidents of your bank is also a director in two other banks. Several of the directors in your bank are directors in other banks in this city, while J. Ogden Armour, besides being a director in your bank and the National City Bank of New York, is also a director of two other banks in this city. Three of the officers of the Armour Co. are directors in banks, and J. Ogden Armour exercises a feverish propensity in acquiring bank stock in various banks in all parts of the country, so that as an interlocking stockholder of banks, he has a voice in their management and can exercise an influential force in the distribution of the credits of many banks. You once wrote and referred me to a certain National Bank inspector, to verify your laudatory assertion about the efficiency of your bank inspection, but Comptroller Laurence O. Murry, in his testimony before the Pujo Committee, acknowledged that the Government inspection of National Banks is inefficient, unsatisfactory and superficial, and furthermore the Comptroller testified that there were nineteen National Banks in this country that had Security Bank attachments, which were organized under State laws, over which he had no supervision. Consequently, the Comptroller must have had in mind your own bank as one of the nineteen he referred to in his testimony. Furthermore, one of the directors of the Continental and Commercial National Bank combination informs me that your bank is so big, the 60863 -4- directors do not undertake to know anything about it, but leave it all to you. What a commentary on big banking business! What a humiliating disclosure for a banking institution that boasts of one quarter billion resources, and what a menace to the commercial interests of the country; and what wonder is it that Clearing house certificates become a necessary refuge, at the first signs of any financial storm, or that there is a clamor for some paternal Aldrich Bill to aid institutions that invite, if indeed they do not originate, commercial disaster. I believe you told the Pujo Committee your bank possessed no holding companies, and you said you wished to make a distinction between holding companies and affiliated institutions. You advertise that the stockholders of the Continental and Commercial National Bank own the stock of the Continental and Commercial Trust and Savings Bank, as well as that of the Hibernian Banking Association, but two of your directors tell me that the stock of those two banks has not been distributed to the stockholders of the Continental and Commercial National Bank, but is held intact by a Trustee. How does this differ from a holding company in any essential feature? It is these subterfuges and evasions that cause disrespect for the law, and which suggest to the public that there is one law for big corporations and another for the individual. I have recently had occasion to learn that the members of the 60864 -5- Chicago Stock Exchange are restive under the invasion of their rights, and because of the abuses which institutions like your own are imposing upon them. They are inquiring what right has a National Bank, or any bank, to embark in a speculative commercial business. They desire to know by what authority a National Bank, or any bank, has the right to accept customers’ money and then employ that money in doing all it can to acquire its customers’ business. They wish to know what condition a bank will be in to pay the sudden demands of its customers, when the funds of the bank are invested in securities, many of which would be unsalable in times of financial stress. But what especially excites the resentment of the members of the Chicago Stock Exchange is that it is claimed certain banking institutions make a fictitious value to an entire issue of bonds, by having them listed on the Stock Exchange, and then sold exclusively over the counter of the bank on Stock Exchange quotations that are made by the bank itself for the very purpose of unloading on the public the securities of the bank at an inflated valuation. The members of the Chicago Stock Exchange regard such transactions as shady, and an imposition on the public, and an arrangement which tends to throw discredit on all Stock Exchange transactions. When asked why some action is not taken by the members of the Stock Exchange to prevent such unscrupulous transactions, the answer 60865-6- was: ‘‘We dare not offend our bankers,’” — which affords another illustration of the intimidating and corrupting influence of the Money Power. I think, Mr. Reynolds, that you were very fortunate in not having some of the citizens of Chicago on the Pujo Committee when you gave your testimony. Two of your bank’s directors, who are officers in the National City Bank of New York, have resigned from your bank at your request, which is a start in the right direction, but in continuing J. Ogden Armour in its directorate, the Continental and Commercial National Bank is honoring a man whose firm, while J. Ogden Armour was a co-partner, was reported to have been instrumental, if not the sole actor, in premeditatedly and determinedly ruining a National Bank, for purely mercenary purposes, and which caused the most disastrous panic ever experienced in the grain trade of this country, and which resulted in ruin to many, as well as losses to hundreds of the bank’s depositors. This bank failure and grain panic was the result of a carefully contrived conspiracy to do what it did do. It resulted in the Armour house and its associates pocketing approximately $10,000,000.00. They secretly contrived to occupy both sides of a market, and took their profits on one side and never paid their losses on the other. These transactions were conducted under cover, as their letters and telegrams state, so they would not be liable when the deal was over. 60866-7- This entire transaction constituted one of the most atrocious swindles ever perpetrated on the American public, and it has been a continuing conspiracy, and crime has been added to crime ever since, to prevent detection. Here is an instance of a National Bank that was just as certainly robbed as if its doors had been forced by the burglar’s jimmy, or its vaults dynamited and its contents looted. Not much wonder is it that the principals in this crime and conspiracy thought it necessary, only a few months ago, to purchase at an extravagant price some incriminating evidence to prevent exposure, and accordingly by their own acts have further concealed the fraud and continued the conspiracy down to the present time. It was the same band of buccaneers that ruined the late B. P. Hutchinson, one of the most brilliant mercantile characters that ever lived. It was this coterie of men that perpetrated the infamous swindle of 1888 on the foreign stockholders of the St. Paul Railroad, and which elicited from the English and New York press such epithets against the late P. D. Armour as thief, scoundrel, robber, swindler, and that nothing was good enough for him except a chain and ball and stripes. So severe and long continued was the criticism, and so threatening were criminal proceedings, that Mr. Armour telegraphed to a New York relative as follows: ‘‘Go to press and stop this criticism of me; I cannot stand it; I am no more to blame than the other directors.’’ 60837-8- The $2.00 wheat corner of September, 1888, was another of those mean, low, vicious transactions which was originated and executed by the same group of men, although the late B. P. Hutchinson was an unwilling agent, and in reality a victim who suffered severely by it. The inside facts of this atrocious transaction are known to but few, even of the members of the Chicago Board of Trade, but it constitutes one more link in the infamous doings of this predatory set of men, to whom Mr. Hutchinson did not belong, and who probably never knew how it all came about. The early nineties saw the inception and the virtual consummation of the Beef Trust by the most vicious and ruthless methods practiced on fellow members of the Chicago Board of Trade, whereby many of them were driven out of business. Here is where Armour and his associates eliminated, or rather obliterated, the competition of middlemen in the beef trade, so that beef products are not now traded in on the Chicago Board of Trade, and the people of the country have realized the results of it to their sorrow, and the Armour firm has many times threatened to monopolize the grain trade, as it has the beef trade, wherefore it becomes a question whether Congress has not many times been imposed upon, and whether some of the hostile legislation against Boards of Trade has not been instigated by this same Armour firm and its financial confederates, so that they might obtain control of the grain trade and build up a bigger organization than that of the Beef Trust or the Steel Trust. 60868-9- The lard panic of 1893 was a preconcerted affair, planned months ahead by the same group of men, to scatter ruin and distress throughout the trade, and which resulted in serious losses to many and enormous profit to a few. Now we come to the fraudulent issue and circulation by the Armour house of 12,000,000 bushels of warehouse wheat receipts, extending over a period of years from 1893 to 1896, and until detected. The principals in this fraud escaped punishment, as they usually do in one way or another; this time they pleaded ignorance, and placed the blame for the crime on a subordinate, but they retained the criminal in their employ and kept the profit of the criminal transaction, as is customary with that firm, except n a few cases where some resolute victim compelled them to disgorge or face criminal prosecution. Then there was the loading out on cars from the Armour elevators a quantity of high grade wheat for a fellow merchant, during the day, and a return of those same carloads of wheat during the following night, when the high grade wheat was taken out of the cars and a low grade of wheat substituted in its place. These cars of wheat were then returned to their original place in the railroad yards, in anticipation that the following morning would find them on their way to their Eastern destination. But the owner of the wheat, being apprised of the unscrupulous reputation of the Armour house, detected the fraud and compelled the Armours to keep their elevators closed 60869 -10- from February to May of that year, and it is reported that this firm were also obliged to pay $1,000,000.00 to the injured person, as the only alternative against criminal prosecution. In September, 1802, occurred the wheat corner of Armour & Co., where the price was advanced during the month of September from 70c to 95c, and then dropped back to the starting point, after the Armour concern had reaped the fruits of their extortion. During the panic of 1907, after the Bank of Commerce of Kansas City had paid $18,000,000.00 out of $36,000,000.00, and had almost silenced the run upon it, the president of the Armour bank in Kansas City, according to the press reports, withheld the checks from the clearings, and contrary to clearing house rules, demanded the currency or Chicago Exchange at the bank. ‘‘We will certify the checks and pay them through the clearing house in the regular way,’’ was the answer of the Bank of Commerce officials. ‘‘Pay now, or I will report you broke,’’ was the brutal reply of the Armour bank president, and as it was impossible to produce the cash on the moment, the Bank of Commerce was obliged to suspend; but its thorough solvency was established by that fact that within ten months thereafter the new president, W. B. Ridgley, who had resigned from the Comptrollership of the United States Treasury to take the presidency of the Bank of Commerce, was summarily ousted from his office and the former president again elected in his place. 60870 -11- The year 1909 witnessed the September Oat corner by the Armour and Peavey concerns, but owing to the stern action of the directors of the Chicago Board of Trade, it was a sorry affair. The directors administered a stinging rebuke to the offending parties, and the following year witnessed the failure of the Peavey firm and the tragic death of its manager. These are a few instances in the business career of Armour & Co. To give a complete record would necessitate recording a continuous performance, as from father and son to the son alone, during the entire course of their commercial history, there has been no indication of any remorse, or restitution, or repentance, or reform, or any abandonment of their predatory and vicious policies. Diametrically opposite to the excellent and commendable methods of Marshall Field & Co., John V. Farwell & Co., Mandel Bros., Richard T. Crane, Henry Botsford, and multitudes of representative business men, the firm of Armour & Co. stands apart and alone, as the conspicuous representatives of the worst commercialism this country has ever known,-—treacherous to their friends, vindictive to their enemies, and boastingly cruel, - their illegal, pretentious and inflated wealth has purchased immunity for their crimes and given them a glossing of just tolerating respectability. When compelled to abandon its early policy of an indiscriminate and wholesale distribution of inferior goods to the trade, and obliged to adopt a more secretive and restrained method of decep- 60871 -12- tion, the firm of Armour & Co. fastens itself on freight rebates, and exercised in this respect a more demoralizing and destructive force than any other agency in the country, with possibly one exception, and a further indication of their intention was their effort to organize a $922,000,000 corporation, as disclosed in the Government suit against them the past year. While appearing to upbuild and extent the trade of this city and country, the firm of Armour & Co. have in reality done much to injure and drive it away. When deprived by law of their extortionate revenues from railroad rebates, J. Ogden Armour made a frantic rush to acquire a hold on the people’s money through a multifarious purchase of bank stock, a continuation of his policy of always pulling at the pap of some special privilege, as if it was vital to the very existence of himself and his firm. The financial power of the Armour firm is due to the multiplicity of its banking interests. This has enabled it to use the people’s money to employ against the people, in building up Beef Trusts and in crushing legitimate business by despicable methods for more than a quarter of a century, and which is responsible as much as or more than any other agency for the present social unrest. Their endless chain of directorships and interlocking stock holdings in banks and other corporations is to the Armour house what the pillar of cloud by day and the pillar of fire by night was to the Israelites, and deprived of the sustaining influence of banks, 60872 -13- J. Ogden Armour would be as flaccid and impotent as was Samson shorn of his hair. The vulnerability of the Armour concern is its over extended condition, its enormous bonded interest, the quotations of which it is necessary to sustain, or the bonds might easily decline to a small fraction of their present market price; the notoriously poor speculative ventures of J. Ogden Armour, and the enormous issue of its own commercial paper by the Armour firm. The danger is that whenever there occurs any serious financial disturbance, banks may be obliged to protect the various Armour interests in order to save themselves from trouble, and in such an emergency the Continental and Commercial National Bank might be compelled to stand the brunt of it. If I am correctly informed, J. Ogden Armour and his family possess 15,500 shares of stock of the Continental and Commercial National Bank. As a voting power this means 31,000 shares, whether it is for or against any official in your bank, which implies their retention or rejection, according to the friendship or the enmity of Mr. Armour. Consequently, can it not be confidently affirmed that he has the power to exercise a dominating control over the policy of the Continental and Commercial National Bank, and that the officials of that bank must conform to his requirements or lose their positions? Deprived of every vestige of literary grace is the bare record, of what might be termed an index or digest of a fractional 60873-14- part of the predatory history of a firm that has exercised a most demoraliizng influence on the commercial life of this nation for more than thirty years. It is exceedingly distasteful to me to make such serious charges against any human being as I have made against J. Ogden Armour and his firm. If I am wrong, there is no condemnation severe enough to extend to me, and moreover, I should in that case be prosecuted to the extremity of the law. If you desire to have substantiated the moral certainty of my allegations, then in that case the most convincing oral and documentary evidence can be furnished you in short order. If you wish to know how vigorously cases against these interests I have referred to have been contested in the courts, the prominent attorneys who represented those interests can satisfy you on that point. If you desire to know why the victims of their predatory methods cannot obtain justice, the answer is practically the same as that given to the victims of the former Boss Tweed,—"What are you going to do about it, now that you have found it out?’’ A further brutal reply is,—"It will do you no good to go to the courts, because we buy them.’’ There are, to be sure, lawyers of integrity and high standing, but these have already advised their clients to make restitution and forego their evil practices. 60874 -15- There are judges who are above reproach, and who are doing all in their power to exterminate the wrong and punish the wrongdoer, but these are the courts that are avoided by corrupt interests, or they manage to get the cases against them removed to some more complacent tribunal. You have seen fit to ignore the frequent admonitions you have received, which indicates that you are under the complete domination of J. Ogden Armour, but at last you have been obliged to publicly acknowledge to the Pujo Committee, that my allegations rested on a firm foundation, for you have testified there was a money concentration, which of course could not have occurred if there had not been a money trust, or a money power, capable of concentrating money. You have acknowledged that this concentration has gone too far, and has become a menace, so you have in reality turned State's evidence, and convicted yourself, But what do you propose to do to remove the menace which you say exists? Do you any longer intend to insult the nation by fostering disreputable business interests? Will your bank continue to honor a man whose firm has so notorious a record of oppression, wrongdoing, treacherous dealings, scandalous misdeeds, and a generation of corrupt and criminal practices, as has that of the Armour firm? You have again hoisted the name of J. Ogden Armour at the head of your list of directors as your standard bearer. You overrate the credulity of the people, and you underrate their intelligence. 60875 -16-. You have made grave errors, and you have raised up many enemies. You are now possessed of good intentions, but you are circumvented by bad environments. You are water-logged with a vicious business interest, and you will be obliged to jetsam your burden, or be engulfed beneath the waves of an outraged public sentiment. Very respectfully, Andrea 337 Postal Fed Bldg Chicago Ill 60876[*THE WHITE HOUSE MAR 25 1913 RECEIVED*] 116 West End Avenue, Haddonfield, N.J. [*ACK'D MAR 25 1913 C. T.H.*] [*93*]. March 14, 1913. Mr. Woodrow Wilson, President of the United States, White House, Washington, D.C. My dear Mr. President:- Although an advocate of the Progressive party, I am taking the liberty of addressing you on the subject of proposed tariff, currency, living cost, and trust legislation that may be brought to the attention of Congress during the coming session. It is fully understood by the country at large that Congress must provide for a substantial tariff reduction this Spring, especially with reference to those schedules involving necessaries. I hope it will not be regarded as a presumption if I ask your consideration of the views hereinafter expressed. I hope you can see your way clear to recommend that a non-partisan tariff commission be appointed for the purpose of making a scientific inquiry on the subject, so that authoritative information may be procured on which to base future tariff legislation. I believe such a course would prove to be highly satisfactory to the whole country, because the facts obtained would answer theorists and would therefore put a stop to conjecture and bias for all time. It is appreciated that some legislation must be enacted in order to offset the dangerous dependency of our system of credit upon the will and management of a mere handful of our country’s financiers; and furthermore, to establish a more elastic currency system. I hope you can recommend the creation of a central bank or clearing house, through which currency shall be issued; that such central clearing house shall have supervision over district clearing houses such as we now have, through which all banking institutions holding government funds shall be compelled to clear; and that when stringency shall occur, the central clearing house shall have power to issue clearing house notes on the government credit as legal tender, which while outstanding shall bear a small rate of interest; and that provision shall be made for such central institution to be represented by a non-partisan, non-factional commission, whose proceedings shall be public, and whose transactions shall be widely published. 60877 (1) It is well realized that some inquiry must be made on the subject of living cost. Present unrest is probably due more to the high cost of living than to any other factor. I hope you will be able to recommend the appointment of a nonpartisan commission to make exhaustive and scientific research on this subject, especially with reference to cost of production of public necessities and their subsequent handling through middlemen; also as to extravagance in living; and finally the effects of the tariff and other public burdens, such as stock watering and speculation in corporate ownership, various forms of economic waste including waste of natural resources of the country, waste of human energy and production through industrial pursuits and unhealthful living, &c. It is most apparent that adequate legislation be enacted to remedy the overbearing attitude of the trusts in their dealings with the general public. I hope that you can conscientiously recommend the appointment of a commission to inquire into big business methods, with authority to make examination of all private records, which commission shall as far as possible take small business groups aggregating in size a large business operating as a trust, and prepare comparative tables showing whether or not the large interests actually conduct themselves at a lesser cost in proportion than the aggregate small interests, thus establishing beyond question whether it is more economical to dissolve trusts than to regulate them. If all the foregoing questions were to be considered from an economic standpoint, but one commission would be necessary to inquire into the conditions and facts desired, because each subject is more or less inter-related with the other. It might be that one large commission with power to subdivide into small groups under one general, comprehensive plan would save time, expense and annoyance to all concerned. I make these suggestions as an individual; they embody what I conscientiously believe are proper remedies for some of the evils of our system. All of us must realize that the practical solution of these questions would confer a lasting benefit, not only to ourselves, but to posterity. With reference to our foreign relations, I am convinced that enlightened public sentiment throughout all civilized countries demands that wars shall cease and all differences settled amicably. While this state cannot be brought about at once, it can be encouraged by an agreement between all nations to disarm. I therefore hope you will be able to propose and accomplish through diplomatic channels a plan for the actual disarmament of all nations. This might be done through a mutual agreement to dismantle navies and disestablish armies, supplemented by an international trade agreement backed by an international court of broad and comprehensive scope, with jurisdiction over all questions between two or more na- (2) 60878 tions when diplomacy cannot settle them. An international tribunal could readily be established between nation and nation composed, say, of two members from one country and two from the other, while one or three additional representing the balance of power would be selected by mutual consent from neutral countries. Courts of this character could be established between one nation and each other nation. There would thus be no opportunity for a central power to grow and aggrandize to itself the sovereign powers of the nations themselves, as might be feared were the Hague Tribunal vested with such powers. With regard to partisanship, I am a Progressive because I believe that party is practically non-partisan, when compared with the other parties. I do not believe in partisan politics excepting as they divide on fundamental national issues, I am not a Democrat because I particularly differ with the Democratic party in its policy of free trade. I voted for Democratic state and county candidates in 1910 because no national policy was at stake. Theretofore I had always been Republican. I left the Republican party in June, 1912, after that party deliberately subverted my ballot. Thus, as a Progressive, while actively interested in that party, I am absolutely independent; and I believe 10,000,000 of the electors in this country are the same. And that is the secret of the power of the Progressive party. On the tariff question, for instance, I believe the Progressive party is favorable both to the free trader and the protectionist, because its policy as to a tariff commission, if carried out, would result in an investigation that would assemble facts that would determine whether the free trade or protection theory is the correct one. In New Jersey, especially this year, I see the need of an independent party, and I hope such issues will be raised which shall enhance civil service, abolish patronage, and provide for a more direct method of ascertaining public will by some system of public conventions supplementing our present election laws. It is quite certain that old line politicians would consider this to be rank heresy, no matter what their partisan affiliations might be. I hope you have great success in your Administration. All honest Americans believe in you, and they will stand by you to a man in support of your efforts to give them good government. Very truly yours, Wm. Carey Marshall [60879]March 24, 1913 My dear Mr. U'Ren: I am in receipt of your letter of March seventeenth and shall carefully consider what you say concerning the amendment of the currency laws. I thank you for having written me. Sincerely yours, Hon. W. S. U'Ren, Oregon City, Oregon. [*60880*][* book in closet.*] [*ACK'D MAR 26 1913 C. T.H.*] New York, March 25th, 1913. [*93*] Hon. Woodrow Wilson, Washington, D. C. [*THE WHITE HOUSE MAR 26 1913 RECEIVED*] Dear Sir:- I take the liberty of sending you a copy of my book, "A Scientific Currency". If you have not the patience to read it all, I would especially ask that you read Chapters XI, XII, and XIII. The principal points I make are that the gold standard has failed as a fair measure of value; that the only scientific standard of value is an index number of commodity prices; that a scientific money must be redeemable in all commodities at a fixed average ratio; that the larger part of our currency is check money, based upon the credit of the individual drawing the check and clearing-house methods; that the banks charge exorbitant rates of “interest” for that which costs them nothing but bookkeeping expenses; that money is a tool of trade and that the cheapest, other things being equal, is the best, and that, if paper money should be issued, the government should issue it and regulate its amount, so as to preserve an even level of prices. There is no sound reason why an interest-rate of three percent, such as prevails in France, should not prevail throughout the whole of the United States. It would save the people annually from two to three billions of dollars. Very truly yours, Wm H. Crane, 50 Church St. 60881[*THE WHITE HOUSE MAR 27 1913 RECEIVED*] A. S. TERRILL & COMPANY INCORPORATED CHICAGO TELEPHONE, MAIN 3757 NEW YORK TELEPHONE, JOHN 4840 LONDON TELEPHONE, CENTRAL 8203 STOCK EXCHANGE BLDG., CHICAGO CABLE ADDRESS MUTUAL LIFE BLDG., NEW YORK TO ALL OFFICES WINCHESTER HOUSE, OLD BROAD ST., LONDON, E.C. ENG. "LUMCOT" [*ACK'D MAR 27 1913 C. T. H.*] PLEASE REPLY TO CHICAGO, U.S.A. [*93*] March 25th, 1913. His Excellency Woodrow Wilson, President of the United States, Washington, D.C. Dear Sir:— Knowing that you will be interested to learn of the favorable feeling that your policies and administration are creating abroad, I wish to quote the following from a letter received to-day from our London manager, who was a very able bank manager in America for many years and is now prominent in financial circles in London:— "While we do not expect the President of the United States will follow the banking system of any one country, we can be certain that a man of his intelligence will follow the advice of his able bankers, and no one knows better than he of the value of using the brains that have been thinking of these matters for half a lifetime. Every— 60882A.S. TERRILL & COMPANY INCORPORATED CHICAGO TELEPHONE, MAIN 3757 NEW YORK TELEPHONE, JOHN 4840 LONDON TELEPHONE, CENTRAL 8203 STOCK EXCHANGE BLDG., CHICAGO MUTUAL LIFE BLDG., NEW YORK WINCHESTER HOUSE, OLD BROAD ST., LONDON, E.C. ENG. CABLE ADDRESS TO ALL OFFICES "LUMCOT" PLEASE REPLY TO CHICAGO, U.S.A. March 25th, 1913. -2- thing President Wilson has said so far has been received by the solid people on this side with a feeling of admiration and respect, and from the remarks to be heard around the Banks and Exchanges, there can only be one conclusion which is, that we are all feeling very much easier in regards to the good government of your country and a just consideration of your neighbors, and I may add that it is just about time you had a President of his calibre." It must be most gratifying to you to know that your every move, utterance and able administration is not only pleasing to the people of this country but is being commended by foreign countries. I am sure the American people need have no fear but that your administration will be one of the strongest and most able during the present generation. Yours most respectfully, [Signature] [*60883*]ALL GOODS OFFERED ARE IF UNSOLD, AND SUBJECT TO MARKET CHANGE. JAMES F. White & Co. 54 & 56 WORTH St. NEW YORK. Boston. PHILADELPHIA, DUNDEE, BELFAST, CALCUTTA. P.O. Box 448 New York. Caste Avpress. REAPERS. NY. Lreper's Cope CaBLe Cope - R-1-Coee Honorable Woodrow Wilson President of the United States, The Capitol, Washington, D. C. Dear Sir: The recent change in the Administration brought about by the success of the Democratic Party in the last election, has created uncertainty and consequently unrest in the minds of many engaged in commercial pursuits. This feeling of uncertainty is due to the impending legislation governing the tariff, taxation, trusts, etc. It is unfair to assume that these changes will be other than reasonable and careful of the vast commercial interests of the country, but nevertheless, considerable apprehension exists. I believe that it is your wish to remove this apprehension as soon as possible and I believe that this will be accomplished to a great degree by prompt action by Congress on banking and currency legislation. The enactment of a law relieving the country of the present obsolete and inflexible system would be a great achievement for your administration and demonstrate your interest in legislation, which is beneficial to all. The National Monetary Commission has made an exhaustive inquiry into this subject and has recommended a plan consisting of [*60884*]ALL GOODS OFFERED ARE IF UNSOLD, AND SUBJECT TO MARKET CHANGE. JAMES F. WHITE & Co. 54 & 56 WORTH ST. NEW YORK. BOSTON. PHILADELPHIA, DUNDEE, BELFAST, CALCUTTA. P.O. Box 448 New York. CABLE ADDRESS. REAPERS. N.Y. CABLE CODE { LIEBER'S CODE. A-1-CODE} NEW YORK Honorable Woodrow Wilson -2- March 26, 1915. a federation of all the banks for mutual support and co-operation, and while the profits of the federation cannot be large, the fact that all profits over 5% are to go to the Government removes all suspicion of a money trust under the plan. The proposed system is in embryo, but with the advice of these expert in banking and commercial affairs, a practical system can be evolved which would be of immeasurable benefit to the country at large. I therefor respectfully urge you to influence prompt action by Congress on this subject. Respectfully yours, [????????] 60885Cc. L. CHALMERS, Pres. and Treas. J. L. CHALMERS, Vice Pres. L. C. WHITE, Sec’y THE HAYNES & CHALMERS CO. Wholesale Dealers in Hardware and Iron, Carriage Stock PAINTS, OILS, DOORS, WINDOWS, Etc. Lumbermen’s and Mill Supplies a Specialty. Dynamite, Powder, Sporting Goods 176-178 EXCHANGE STREET Bangor, Me., March 26, 1913. [*THE WHITE HOUSE MAR 28 1913 RECEIVED*] Hon. Woodrow Wilson Pres. United States, Washington, D. C. [*93*] [*ackd 3/28/13*] Dear Sir: It would seem to us that next to the Tariff question which, as we understand the matter, this session of Congress is pledged to take up first, the question of Banking and Currency Reform is most important. To us it seems to be the prevailing opinion, among the business community, that there is something wrong with our present system. This being the case, why not have it corrected at once? We think there should be a better outlet for sound Commercial Paper. That is to say, something done to make rates on good solid paper more stable and not fluctuate from day to day, as at present, depending more or less upon the ability of banks to let their money on call at a high rate of interest. We do not claim to be experts in this matter but have entire confidence in your ability and good judgment as to what changes should be made in the best interests of all concerned. Yours truly, The Haynes & Chalmers Co. L. C. White Secty LCW/S. 60886M. & L.W. SCUDDER CERTIFIED PUBLIC ACCOUNTANTS 55 WALL STREET TEL. 3400 BROAD NEW YORK MARVYN SCUDDER, C.P.A. (W. VA.) LAWRENCE W. SCUDDER, C.P.A. (N.Y.) [*THE WHITE HOUSE MAR 28 1913 RECEIVED*] [*ACK'D MAR 28 1913 J. F. S.*] March 27th, 1913. Hon. Woodrow Wilson, White House, [*93*] Washington, D.C. Dear Mr. President:— I have read with interest your article in the March "World's Work", entitled "Monopoly or Opportunity," in which you say:— "These things are not hidden even from the layman. They are not half hidden from college men. The college men's days of innocence have passed, and their days of sophistication have come. They know what is going on, because we live in a talkative world, full of statistics, full of congressional inquiries, full of trials of persons who have attempted to live independently of the statutes of the United States; and so a great many things have come to light under oath, which we must believe by the credibility of the witnesses, who are, indeed, in many instances very eminent and respectable witnesses." [*Currency #*] I am particularly interested in this portion of your article because the statistics of large corporations and congressional inquiries to which you refer are the things which for years have engaged the thoughts and efforts of my associates and myself. From the investigation of Insurance Companies by Justice Hughes for the Armstrong Committee of the New York State Legislature in 1905 to the Money Trust Investigation, just closed, we -1- 60887have in the employ of National state and City government, investigated those organizations and individuals who, it has been alleged, have attempted to live independently of the spirit of the statutes, if not indirect violation of them. We have as complete and extensive a library of financial statistics as we know of in America, containing such material as annual reports of corporations, mortg[u]ges, syndicate agreements, newspaper clippings, state departmental reports, statistical and financial manuals and periodical publications all carefully filed and indexed In the course of the investigations with which we have been connected, we have, naturally, collected a great deal of statistical information which has either not been published or published in such form as not to be readily available to people unfamiliar with the details of the investigations themselves. Being college men and trained by our education to study economic conditions and find a cause for each effect, we have, of course, obtained a good deal of knowledge of conditions, particularly with reference to the financing of large corporations and the causes contributing to their successes or failures. In the course of this work we have naturally found conditions which appeared to us undesirable and our imagination has caused us to look for methods of eliminating them. 60888 -2-If our opinions or services would at anytime be of value to you, I trust that you will not hesitate to call upon us. If, before doing so, you should wish to learn something about us from other sources, I would suggest that you communicate with the following gentlemen:– Hon. Charles E. Hughes, U.s. Supreme Court. Hon. John Purroy Mitchel, President Board of Aldermen, City of New York. Hon. Frank A. Vanderlip, President National City Bank of New York. Hon. Arsene P. Pujo, formerly Chairman, Banking & Currency Committee House of Representatives. Hon. James Mc Reynolds, Attorney General. Mr. O. De Gray Vanderbilt (whom I believe you know personally) President Weir Frog Company, Cincinnati, Ohio. Mr. James Imbrie of William Morris Imbrie & Co., New York or Andrew C. Imbrie of Princeton, N.J. I am enclosing a list of the more important public engagements that we have had in recent years. We have also, of course, made many very thorough examinations into the affairs of large corporations and I believe that a well educated and thoughtful accountant can obtain a deeper and clearer understanding of business problems than any other professional man for it is his business to study business, to investigate –3– [*60889*]and explain conditions and the results from operations. It is expected that Congress will shortly be called upon to enact legislation pertaining to the currency of the country. Because of the evils which we have seen in our work, not only in the Money Trust Investigation but in the examination of the accounts of corporations using money, I believe our opinions and suggestions might be of material help to Congress and yourself and to the people of the Country. Respectfully yours, Lawrence W. Seuddle LWS/H. -4- 60890THE UNION NATIONAL BANK HOUSTON SHEET No. [ c. March 1913] Mr. E. M. House, New York. [93] [*This man is one of the best bankers I have ever known. -Matt*] Fill under banking and currency. With Governor Wilson's incisive intellect at work on this problem, it will only require cold unprejudiced study for a little while to lead him irresistibly to correct conclusions, as to the necessity of the times. These are, of course, as I see them: (A) To provide a concentration, or mobilization of the gold reserves of our country, now scattered and of little avail. (B) To provide in some way through an association of the banking power of the country a Discount Market, for sound commercial paper. (C) To arrange a plan for the issuance of a sound, elastic currency, with easy and certain redeption features. As a practical bank man I regard the above fundamental and yet easy of arrangement, if we can only get our own consent to do these things. I would emphasize the necessity for a Discount Market, where a bank in pursuance of its legitimate business, or in times of stress can take its unquestionably sound commercial paper and get credit for it (or the currency). Credit is the first desideratim. There is plenty of currency to transact the business of the country in normal situations, and only when hoarding is resorted to by reason of a loss of confidence would it be necessary in all probability to issue much currency. Ninety-five per cent of the business of the country is transacted, as you know, by checks and not by the actual currency. So that a bank with its portfolios full of good sound commercial paper can at any and all times render assistance to its customers by going to the reservoir for rediscounting privileges. [*60891*]W. W. Parkinson Assistant Cashier First State Bank Amarillo, Tex. [*60892*][*[c. March 1913]*] MIKE C. LeMASTER, President W. N. SADLER, Cashier FRANK A. WHITE, Vice President W.W. PARKINSON, Asst. Cashier FIRST STATE BANK GUARANTY FUND BANK CAPITAL STOCK $50,000.00 AMARILLO, TEXAS. [*[93]*] OUTLINE OF BANKING LAWS. (A) Central Bank at Washington, under supervision of Treasury department, to act as correspondent and reserve agent for Branch Banks, as hereinafter provided. (B) Branch Bank at capital of each State, to act as correspondent and reserve agent for Local Banks, as hereinafter provided. (C) Local Banks. Capital and number regulated according to population of locality. Subject to examination as under present law, but in addition, to be under practical supervision of special overseer, who shall have jurisdiction over a limited number of banks, so as to visit each bank at least once each month, Local Banks to carry 15% of deposits in cash and reserve. Branch Banks to carry with Central Bank, 25% of deposits. Funds accumulating in Central and Branch Banks, subject to use in retiring present Government bonds and construction of Federal improvements. Central Bank authorized to draw on Branch Banks, as needed, for not to exceed 60% of deposits. Central and Branch Banks to pay no interest on deposits, but the Government to guarantee all deposits. Transportation facilities to be provided through postal system for shipment of currency and coin, charges to be paid by Central Bank, through Branch Bank making the shipment. 60893MIKE C. Le MASTER, President. W.N. SADLER, Cashier. FRANK A. WHITE, Vice President W.W. PARKINSON, Asst Cash. FIRST STATE BANK GUARANTY FUND BANK CAPITAL STOCK $ 50,000.00 AMARILLO, TEXAS. Local Banks to be enabled to borrow, from Central Bank, in time of special need, not to exceed 60% of face value of approved securities. [*60894*][*[ c. March 1913]*] [*[93]*] RESOLUTION, [*Thanks*] Whereas, there is no question of more vital importance to the people of the United States as a whole than that of an adequate rehabilitation of our antiquated monetary system, and Whereas, the banking and business world have, without exception, for the past several years been importuning Congress to grant the needed changes so apparent to every thinking man, therefore, Be it resolved by the First District Texas Bankers Association, in convention assembled in the City of Houston, that President Wilson and those in control of the incoming Congress be earnestly urged to make this question the first to be disposed of during the extraordinary session which will be called and that we sincerely urge every member of the Congressional delegation from Texas to insist upon an immediate revision of the laws adequately, that the monetary system of this country may, at least, be placed on a basis as stable as those of the leading foreign countries, with the hope that ours may be made the very best. Be it further resolved that a copy of this resolution be forthwith furnished by the Secretary to President Wilson, Representatives Oscar Underwood and Carter Glass, and to each member of the Congressional Delegation from Texas. 60895[*[c. March 1913]*] [*22*] Progressive Money. Our law makers at home and not the law breakers. Our statesmen are responsible for the big concerns ever riding the rights of the people. Today may be characterized as the greatest struggle ever known in America between the people and the privileged class. The people are slow to wake up, slow to recognize their own interests, slow to realize their power, slow to invoke it. On the other side, the privileged class, always awake and quick to act. For forty years the privileged interests have furnished the motive power to make the laws in the United States. The economic change that will correct these political evils is one that will remove the prize from the privileged. It must reserve to the public the management of public service. The most damaging, the all-absorbing of these public privileges is the money trust. If you watched the late [late] investigation you should be fully convinced. Abraham Lincoln showed us how to do this; Issue several million treasury notes, a legal tender for all debts, both public and private. Loan same to states and counties and municipalities on their bonds at about 2 percent. Also loan same to corporations and individuals, [*93*] requiring approved security. Put this out through the state organization or the postal service, always keeping up with the demand. There is no way today that a property owner or farmer can borrow money except from misers or some life insurance company and pay a usurious rate of interest and commissions. We would have this public function as cheaply as possible and turn this government to a lending instead of a borrowing nation. Money is only law, and every foreign dollar that is loaned in this country is a robber. Millions in products go abroad yearly to pay this tribute, which is wasted to us. We have our money and prosperity based on an accident gold—the finding of gold is purely an accident. The only violence that Christ ever resorted to was driving the money changers from the synagogue, calling it a den of thieves. Strike at the very root of these combines, and the others will be easily subdued. Give us a progressive money system. Then let Morgan, Belmont, Rockefeller, or anybody else try to start a panic. This is a humane move as well as a political one. You can see at a glance that this country would run over with prosperity under such a system. I am a great admirer of W J Bryan. He understands this subject fully. If under the present laws and constitution we cannot do this, steps should be taken at once to change them so we can. Eliminate the big Pharasites from society.—by doing without them—let the miser sit on his strong box and wonder why he is cut off from favoritism. Do this and show the world what progressivism means. Ed F. Wesh marshall mo 60896CLEMENT STUDEBAKER, JR. President. S. D. RIDER, V. Pres & Sec'y. N. J. RILEY, Treasurer. [*F*] South Bend Watch Company [??ERS] HIGH GRADE WATCHES. "SOUTH BEND" WORLD FAMED South Bend, Ind. U.S.A. April 4, 1913. [*THE WHITE HOUSE APR 6- 1913 RECEIVED*] Hon. Woodrow Wilson, President of the United States, Washington, D. C. Hon Sir:- [*93*] [*THE LIBRARY OF CONGRESS*] You have called an extra session of Congress to convene on April 7th, the object of which is, we believe, primarily to consider the Tariff question. In our opinion, however, there is another matter that is of equal importance, and that is the taking up of banking and currency legislation, in order that the business interests of this country may be freed from the apprehension that exists continually, at the present time, regarding the possibility of money panics. It is not for us to suggest any definite plan to be pursued in this respect, as we believe that there are others who are more capable and much better fitted to study this subject, but we do wish to urge upon you the necessity of taking as prompt action as can be taken consistent with the working out of a plan that will relieve the present unsatisfactory situation. Yours sincerely, SOUTH BEND WATCH COMPANY. S D Rider Vice President. SDRider/B [*60897*]FOUNDED 1842 Form 353 INCORPORATED 1890 DRUGS CHEMICALS PHARMACEUTICALS OILS, PAINTS, VARNISHES GLASS AND GLASSWARE DRUGGISTS' SUNDRIES CIGARS AND TOBACCOS ROBINSON-PETTET CO. INCORPORATED. Wholesale Druggists, [*THE WHITE HOUSE APR 7-1913 RECEIVED*] [*ACK'D APR 7 1913 T. M. H.*] LOUISVILLE, KY. April 4, 1913. [*93*] Mr. President:- We notice from the press reports that some pressure is being brought to bear to limit the coming extra session of Congress to making changes in the Tariff. We appreciate the fact that it is no doubt wise to have Tariff Legislation well out of the way before taking up any other business, but we believe that there is no matter now before the public which should command the attention of Congress as the change in our Banking and Currency Laws. We are not committed to any particular method or policy along these lines, but we hope very much that you will use your influence in having some legislation enacted before the extra session adjourns. Changes in the Tariff will of necessity cause some confusion in the business commmity, and we believe that good Currency Laws would assist materially in helping bridge over the period of transition. We remain, Very respectfully yours ROBINSON-PETTET CO., (INCORPORATED,) By A Lee Robinson President. To the President of the United States. 60898[93] THE WHITE HOUSE APR 11 1913 RECEIVED ACK'D APR 11 1913 T.M.K. LAW OFFICES OF MOORE & MOORE. CAMPAU BUILDING. DETROIT, MICH. April 7, 1913. Hon. Woodrow Wilson, President of the United States, Washington, D.C. My dear Mr. President: I take the liberty of sending you under separate cover my views on the currency question, which I trust you will do me the honor to read. [*#*] You will notice that the central idea of my article is this. The government should furnish all the currency and make it elastic— causing it to expand automatically and to any reasonable extent for the purpose of overcoming a money stringency and then to contract automatically when the stringency is past. In the pamphlet a few paragraphs are marked and some—which just as stated are, I believe, new—have a double mark. I am sending a copy of this pamphlet to some members of both houses. Very truly yours, [Geo Wm Moore??} AW/GWM [*60899*]THE AMERICAN MONETARY SYSTEM BY GEORGE WILLIAM MOORE OF THE DETROIT BAR. Our monetary system is described by financiers and prominent business men as "the worst in the world." The difficulty is not in the quality of the money—that is of the best. The fault found is that our currency is too small in volume and practically inflexible. We know that the volume should be more than enough to pay for a single purchase and that it should not be enough to pay for all purchases—over 95 per cent in amount of all payments are now made by checks, drafts, etc. The money of the world consists of about $7,000,000,000 gold, $3,500,000,000 silver, and $4,500,000,000 paper. Most of the nations of the earth have made gold the sole standard of value but not of volume. If they depended upon gold alone for currency they would have to wait until people living in the Rocky Mountains, Australia, Alaska, Africa and elsewhere had dug the gold out of the ground, and if the requisite quantity was not forthcoming great inconvenience, suffering and disaster would result— gold mines do not and never did give the necessary volume or elasticity. [*60901*]2 Besides, abnormal efforts are at times made by some countries to acquire or hoard gold which necessarily produces a stringency in other-the British Empire now produces about 3/5 of the world's gold, and might seriously embarrass other nations by keeping it all. No nation should and no nation does put itself at the mercy of gold mines or gold hoarders. Each can with its own assets give the desired volume and flexibility to its currency. Elaborate tables have been prepared and numerous bases proposed for fixing the permanent volume of currency a nation needs, but all nations fix the volume arbitrarily. The Bank of England keeps constantly outstanding about €15,000,000 of its circulating notes and a considerable quantity of silver, all based on the credit of the bank. Similar arbitrary issues prevail in all other nations. As a result the volumes of currency carry. France has $40.68 per capita. United States, $35.28; Great Britain, $17.90; India, $3.32. This variation is not surprising because the volume of money required depends upon the trade, habits, etc., of the people. In England for centuries bullion and plate have in times of stringency been deposited with the Bank of England and circulating bank notes taken out. This and other means gives the desired elasticity. Continental Europe in times of stringency issues additional paper money secured by bonds, commercial paper, etc. But our currency is practically inelastic. The Federal constitution confers upon Congress the power to "coin money and regulate the value thereof." The Federal Supreme Court holds that the word "coin" means 3 "create" and that the government can create full legal tender money out of gold, silver, copper or paper. And as the value of money depends upon its (1) intrinsic value, (2) volume and (3) elasticity, Congress has control of all these questions. The volume of our currency is made up of about one-half gold, one-quarter silver and one-quarter paper. These preparations have not been made as the result of a fixed rule. But a fixed rule should be adopted because commercial values depend largely upon the volume of money. Free coinage regulates the volume of gold. Half as much silver as gold (the present proportion) is reasonable. As the amount of gold mined caries with the different years it might be better to have the volume of our paper money a percentage of the nation's wealth which has a gradual and somewhat uniform increase. What better currency is possible than a paper dollar payable on demand in gold secured by the nation's wealth and guaranteed by the nation's honor. The permanent volume of silver and paper currency could be increased or reduced by correspondingly increasing or reducing-in the inverse ratio-the federal tax burdens. As all money is based on the government guarantee of payment in gold coins the government should keep a large amount of hold in its vaults to meet demands, but gold certificates should be issued in lieu of the hoarded gold so as not to reduce the volume of money in circulation- a reserve sufficient for banks would be ample fo the government. True, in great emergencies hold may leave the country. 609024 The Bank of England suspended gold payments for 25 years as the result of the Napoleonic wars and our own country for 17 years as the result of our civil war. But if the banks can get gold so can the government and if the people must temporarily rely upon paper money alone the credit of the government is better than that of any bank. The government can make our currency elastic by keeping on hand at all times a suitable amount of paper money and loaning any bank or financial institution what it reasonably needs. This should be in appearance the same as other paper money so as not to emphasize the fact that emergency currency is being issued and the bank could repay in any kind of government money. In those states where they have a guaranty of bank deposits the government may not need any collateral, and where collateral is required it should be such as a well conducted bank acquires in its business. Each loan could be on or before three months, at local interest rates, with an increase in the interest rate if renewed. This would return the emergency money automatically to the government as soon as the stringency had passed. If emergency currency was called for frequently and retained for a considerable length of time it would indicate that more permanent currency was needed. Banks could make their arrangements with the government in advance and deposit, if required, suitable collateral so that the currency could be had instantly. Experience might demonstrate the advisability of some such an arrangement with other corporations and with individuals. 5 Money stringencies sometimes occur throughout the whole country and sometimes only in localities. The emergency currency would be issued only where needed, just as in irrigation water is supplied where wanted, and in volumes desired. Under present conditions the government, the banks and individuals begin to hoard money at the first appearance of a financial storm. Soon the scramble for currency becomes acute and the stringency is greatly aggravated. The government should not hoard but keep its money deposited in various banks, and, to avoid any charge of favoritism, the banks should bid for the deposits. If emergency currency could always be had (1) banks would not feel obliged to hoard money; (2) bank reserves could safely be reduced, which would increase the profits of the banks and the volume of currency in circulation; (3) depositors would feel safe because they would know that the banks could pay them in cash, and (4) the whole country would be relieved from the danger of a currency famine. The plan is simple, needs no elaborate machinery and is easily executed. As to the Aldrich Bill: The bill proposes to organize a corporation to be known as the “National Reserve Association.” This is a misnomer. The proposed organization is a bank, and should be so called. The main office is to be at Washington with branch offices established where and when it pleases. The Association can create as many directors as it chooses, to which must be added four cabinet officers as ex officio directors. 609036 An executive committee of nine has practically all the powers of a board of directors. All national bank notes are to be recalled and notes of the Association substituted in their place. The Association may issue $3 of its own promissory circulating notes for every dollar of gold or government money it has in its vaults, and no tax shall be levied on the first $900,000,000 of this paper issue. The next $300,000,000 so issued will pay a tax of 1 1/2% per annum. And on all over $1,200,000,000 a tax of 5% per annum. The government shall accept from the Association all the government 2% circulating bonds, and give in exchange therefor government 3% non-circulating bonds. All monies of the Federal government must be kept on deposit with the Association, without interest, and disbursed by check. The entire capital stock of the Association must be subscribed by banks in their corporate capacity, and each bank must subscribe 20% of its capital stock, “no more, no less.” If a bank’s capital stock is increased or decreased its holdings in the Association shall increase or decrease accordingly. No bank can sell, assign or hypothecate its stock. Having once joined the Association it can never withdraw. Half the stock subscribed by each bank is to be paid in in cash, and the other half when called for. All earnings of the Association in excess of 5% per annum on the cash paid in on the stock goes to the government. While the banks of the country are not specifically required to join the Association they will be compelled to in 7 practice because the Association can deal only with the government and its stockholders, and consequently the Association cannot furnish to any non-stockholders any currency or extend other avantages. Besides any bank that does not join will probably be regarded by the public with suspicion which will necessarily bring on a run so that the net practical result is that every bank must either go into the combination or into liquidation. But the Association may refuse currency to a subscribing bank, and may suspend it from all privileges—this power would doubtless be used merely to discipline the banks because they will see the enormous advantages of a union. The circulating notes of the Association shall be legal tender between the Association, the banks and the government only, consequently the Association notes will not be legal tender to bank depositors. The Association is given power to fix the rate of discount, “which shall be uniform through the United States.” Commercial paper is given special advantage in discounting and rediscounting. Bonds are not favored, but “the Association may, when in its opinion public interest requires it,” loan money on bonds and other approved collateral to the amount of 75% of their value. The Association may establish foreign agencies for selling and buying foreign paper and cause new banks to be incorporated for that purpose to work in connection with the Association. No amendments or repeal of the proposed act can take effect until the end of a decennial period from the date of the organization. [*60904*]8 This bill would put the entire banking, credit and monetary system of the United States into the hands of an incorporated and legalized trust. But it is claimed that this great monopoly will be a public blessing. No private monopoly ever was or ever will be used for the public good. Some light may be thrown on the respective merits of the two plans by comparing one with the other. The Aldrich plan proposes to substitute private bank bills for government paper money. This is a step backwards towards the time when bank bills were often at a discount and when some bills passing at par one day would be at a discount on the morrow. The people cannot know the standing of any bank nor how soon it will be looted; nor how many unauthorized bank notes are in circulation, and they should not be compelled to worry over the value of their money. Banks sometimes fail, but the people have unlimited confidence in their government. In bank runs people are more or less unreasonable, and the only way to save all questions is to offer them legal tender money. The Aldrich plan might result in money of different values. The standard silver dollar being full legal tender has always been at par, but the trade silver dollar, although intrinsically worth more, passed nowhere because it was not a legal tender. The first $60,000,000 of greenbacks issued during the civil war were a full legal tender, and always at a par with gold. The war greenbacks that fell below par were the green- backs that the government itself repudiated. On their face they said they were redeemable “at the pleasure of the United States after five years,” and that they were not receivable for debts due the government—naturally they would not be at a parity with gold. When the government finally made them legal tender they immediately came to par. All our paper money should be legal tender and issued by the government. The Aldrich plan contemplates that Congress shall abdicate its control of our currency and confer that power upon a private bank. The argument is that the government can under the Aldrich plan dictate the policy and compel obedience—if so the bank is a useless appendage. If, on the other hand, the government cannot, then the bank is a dangerous menace. The people cannot properly control their currency by conferring that power upon a bank and then trying to regulate the bank—it is impossible to draw a law that will control such a bank. But the government can by direct action properly regulate the currency. At times the government now deposits of its hoarded money large sums to enable the banks to move the crops. It is a matter of history that the government broke the money corner on Black Friday by issuing a large volume of money from its coffers. Years ago a few men in Wall Street tied up the bulk of the currency circulating in New York City and then wrought financial havoc. This could not have been done if additional currency could have been supplied instantly. During the panic of 1907 the government deposited in [*60905*]10 banks $42,000,000 of its hoarded currency. As a result “relief came almost instantly.” During that panic the border cities were materially aided by currency sent over to them from Canada. Banks have in times of stringencies arbitrarily refused to pay out currency. Under the government plan no bank would have to resort to such methods. The Aldrich plan requires each bank to go to the Association for currency, but the Association can grant or refuse. The government plan gives each bank currency under a public law executed by a public servant. It would be better for the people to make each bank independent than to force them to become subservient to a banking trust. In certain foreign countries one bank, more or less controlled by the government, as a stockholder or otherwise, issues the currency and supplies such others as are persona grata to the issuing bank—the bank of issue is a sort of overlord and the other banks vassals. Those countries submit to banking despotism just as they submitted for centuries to hereditary despotism. But we need not discuss the foreign plans because even the advocates of the Aldrich Bill say that none of them are suitable for us. The advocates of the Aldrich plan say that the old United States bank of Jackson’s day was a menace because with branches everywhere it competed with all the other banks, while under the Aldrich plan there will be no competition. That is true. Instead of competition there will be a trust. Jackson was afraid that the United States bank would 11 bring about a money trust—the proposed National Reserve Association would start as one. The advocates of the Aldrich plan also say that the present banking methods are like the old continental system when each state acted independently ; that the intention is to unite all the banks just as the Federal Constitution united all the states. The illustration is a good one. It does unite all the banks into one great trust. If the National Reserve Association is organized it would then be the banks against the people with the banks organized into one solid, indissoluble union and in absolute control of the banking, bank credits and money of the country, with power to increase or decrease the volume of currency at their will—they could control prices, prosperities and panics. They could hoard the currency and in that way bring on a panic. They could issue an abnormal amount of currency, and in that way bring on a boom. And they would have power to continue either long enough to enable the managers to reap enormous profit therefrom. If an association of nine or ninety men can bring on a panic or a boom at will they would soon own the bulk of the property, control political parties and dominate the government itself. Their threat alone would frighten the people into submission even at the ballot box. The only safe course for the people is to keep control of their own currency and regulate its volume and flexibility. They will then know the amount of money in circulation and that emergency currency is issued for legitimate, not speculative purposes. [*60906*]12 One of the arguments made is that the banking trust will make no profit because the banks which furnish the capital cannot make more than 5¢ on their investment; all the balance of the profits is to go to the government. But the National Reserve Association is to be the depository of all government money, and have the right to issue hundreds of millions of its own paper money. It would dominate all the banks and dictate who should have money or credit and on what terms. Under such circumstances the managers would become rich beyond the dreams of avarice. Who could estimate the gigantic, staggering profits that would result indirectly from the control of so much money. To illustrate: $2,300,000 was paid for the $50,000 of Equitable Life Insurance Co. stock, although the holder. of the stock could not receive more than 74; that is, $3,500 a year. Of course the value of the stock was not what it earned, but the indirect benefits resulting from the control of the company’s money. The indirect benefits resulting from a control of the Equitable Life compared with the indirect benefits resulting from a control of the proposed National Reserve Association would be as a molehill to a mountain. But it is said that the directors are to be selected from various parts of the country so that there can be no unit of action to abuse the power. But the banks elect the directors, and it would be only necessary to unite the directing bankers. Besides, the actual control would probably be in the hands of nine men—the executive committee—who have practically all the powers of a board of directors. It is, however, immaterial how many directors there are, where they live, or to what extent the voting power is 13 scattered because a union of power brings a union of management. In the New York Life and Mutual Life the power is vested in the policy holders who are scattered “wider than the earth and sky.” But a few men control both companies, and notwithstanding their scandalous misuse of the company’s money, all the efforts of the government, the courts and the policy holders have been unable to dislodge them. The stockholders of our trunk line railroads and large industrial organizations are scattered over the earth, but each organization is controlled by a dozen, sometimes by one. It is said that the government would take a risk in loaning emergency currency to banks. The government would loan non-interest bearing bills at not less than the local interest rates, for which it would. receive the obligation of a bank in good standing and approved collateral. The fact that under the Aldrich plan all the profits over 5° go to the government would encourage enorm sus sal- aries and heavy expenses. Besides, the managers in their own interest would sacrifice the direct for the indirect profits. The rates of discount are higher in the West than in the East, and will doubtless remain so for many years, and yet the Aldrich plan requires the Association to arbitrarily fix the rate of discount which all shall pay and “which shall be uniform throughout the United States.” Under the government plan there would be no attempt made to regulate the rates of discount—the charge for emergency currency would be simply the local rate. The rate of discount should be determined by the law of supply and demand and not by the judgment, interest, [*60907*]14 caprice or possible malice of an association of bankers located perhaps three thousand miles away. The National Reserve Association and all its branches are to be relieved from all personal taxes. This clause would enable many persons to avoid their just share of the tax burden. Every bank pays into the Association 10¢ of its capital in cash, and becomes liable for 10¢ more on demand. Besides, the local banks must guarantee the local branch of the Association against loss. Such liabilities would certainly frighten bank depositors. The laws should be so framed as to enhance not injure the bank’s credit. The Aldrich plan furnishes currency to commercial banks only. Savings banks with their immense aggregations of bonds and mortgages are quite as worthy and just as much entitled to currency. The Aldrich plan also gives much better opportunity to secure currency upon commercial paper than upon bonds. No such discrimination should be allowed. Bonds and mortgages of known and recognized value should be given all the privileges of any other form of securities. There are no safer bank assets than municipal bonds. Why should they be discriminated against? It would be a special advantage to the public generally to have all the banks authorized to own municipal bonds and have these bonds convertible temporarily into legal tender currency. Bonds of our large cities being more easily convertible into money bring higher prices than the bonds of our smaller cities. The government plan would tend to equalize the prices and increase the salability of both. 15 It is claimed that a preference to commercial paper would tend to prevent speculation in Wall Street. The banks would then rediscount their commercial paper and use more money than ever in speculation. But the objection that the government should not go into the banking business at all is fundamental and insurmountable. The government plan does not contemplate government banking. It only requires that the government shall furnish the necessary currency to enable the business of the country to be properly conducted. Let the government retain exclusive control of our currency, giving it a sufficient volume and elasticity. Let the banks, acting independently—and not as a trust —do the banking business of the country. We do not want a partnership or any entangling alliance between the banks and our government.[*MERCHANTS UNION TRUST CO. 715-717-719 CHESTNUT STREET PHILADELPHIA JOHN S. BIOREN PRESIDENT JOSEPH [R.] T. RHOADS 1ST VICE PRESIDENT JOHN STOKES ADAMS 2D VICE PRESIDENT AND TRUST OFFICER WILLIAM J. CLARK SECRETARY AND TREASURER PLEASE ADDRESS ALL COMMUNICATIONS TO THE COMPANY*] April 8th, 1913. [*93*] [*ACK'D APR 9 1913 J.W.H.*] Hon. Woodrow Wilson, President of the United States, Executive Mansion, Washington, D. C. Dear Sir:- I have read with much pleasure and interest your message on Tariff presented to the Congress to-day, and note therein the fact that you may later on in the session call legislative attention to the reform of our banking and currency laws. # Although not familiar with manufacturing, the revision proposed seems to me a proper and moderate one considering the divergence between Democratic and Republican principles in the collection of custom duties. If the coming revision in emergency circulation is met in the same manner I think the Country will be greatly indebted to the new Administration. Respectfully yours, John S. Bioren [*signature*] (Riverton, N. J.) President. [*60909*]CITY OF NEW YORK DEPARTMENT OF FINANCE WILLIAM A. PRENDERGAST, Comptroller EDMUND D. FISHER DEPUTY COMPTROLLER [93] April 9, 1913. Hon. Woodrow Wilson. The White House, Washington, D. C. My dear Mr. Wilson: I take pleasure in sending you herewith additional subject matter in relation to banking legislation. This is presumed to clarify the subject to da[x] for a group of young men to whom the lecture will be addressed this evening. You may possibly be interested in the thought developed. "A Public Service Commission for Banking". Very truly yours, [?] [?] (Enclosure). 60910BANKING ECONOMICS WITH PARTICULAR REFERENCE TO BANKING AND CURRENCY LEGISLATION ADDRESS delivered by EDMUND D. FISHER Deputy Comptroller, City of New York BEFORE FINANCE FORUM NEW YORK CITY April 9, 1919 [*60911*][*Telephone Main 1093 Established 1871. Chas. Heidrich & Co. Commission Merchants, Butter, Eggs, Poultry, Calves, Game, Green and Dried Fruits, Etc. 33 Walnut Street. REFERENCES: Campbell County Bank, Bellevue, Ky. Fifth National Bank, Cincinnati, O. Commerical Agencies. Cincinnati,*] April 11th., 1913[*190*] [*93*] [*ACK'D APR 14 1913 J.F.S.*] Hon. Woodrow Wilson, Washington, D. C. Dear Mr. President:- Personally I believe in tariff revision, but I consider a reconstruction of our banking and currency system a more important work. Tariff revision is perhaps a salutary, but certainly a painful and weakening operation. Banking reform, on the other hand, is a tonic which would inject strength and viatlity into the business world. I have gone through a great many panics, and know what it means to our country. It should precede, or at least go hand in hand with tariff revision to facilitate the convalescence of business after its tariff operation. Without being technically informed on either subject the great mass of business men of Ohio share that belief. Personally I have talked to hundreds and know this to be true. Having great faith that you will see that this banking reofrm will be enacted, I remain, Very respectfully yours, Chas Heidrich [*signature*] CH-L. [*60919*][*[93]*] April 14, 1913. My dear Senator Hitchcock: Allow me to thank you for your letter of April 14th on the subject of banking and currency laws, and to ensure you that I shall give the matter very careful consideration. Sincerely yours, Hon. Gilbert M. Hitchcock, United States Senate. [*60920*] THE WHITE HOUSE FILES. MEMORANDUM. April 14, 1913 Writer: Senator Gilbert M. Hitchcock. Subject: Encloses bill amending banking and currency laws. [*93*] Referred to The Secretary of the Treasury. [*for consider.*] Date: April 14, 1913. [*60921*][*[Apr 28, 1019?]*] IN UNION THERE IS STRENGTH [*93*] Compliments of E A Grant [*x*] [*ACK'D APR 28191?*] [*60922*]A SUGGESTION AS TO The Union of Banks The Currency of the United States and the Guaranty of Bank Deposits by E. A. GRANT Cleveland, Ohio 1909 [*60923*]THE HOUSE THAT MAKES THE PRICE NO. 336 COURT SQUARE McWHORTER, HUTTON & CO. IMPORTERS AND JOBBERS HARDWARE AND KINDRED LINES J. L. McWHORTER, President W. C. WEAVER, V. President WEAVER HARRIS, Treas. C. E. FREELAND, Secty. NASHVILLE, TENNESSEE April 28, 1913 [93] To The President, Washington, D. C. My Dear Sir:- Amidst the turmoil and the strife involved in the fight for free sugar and free wool, I trust you may not forget the question that ranks in importance at least second with tariff reform, namely, the overhauling of the currency and banking laws. The value of our posperity is very greatly lessened by the periodical destruction of property through panies. I believe that your great fight for tariff reduction will bring injury to few and prosperity to many; but your task will be but half completed, unless you also devise means for the conservation of that prosperity. I do not pretend to suggest a plan. You have only to pursue your usual course in important public matters- take counsel of many- and you will discover the best plan. I am, however, sure of this: If you achieve during your term but two things, the reformation of our taxing system and the reformation 60931THE HOUSE THAT MAKES THE PRICE NO. 336 COURT SQUARE McWHORTER, HUTTON & CO. IMPORTERS AND JOBBERS HARDWARE AND KINDRED LINES J. L. McWHORTER, President W. C. WEAVER, V. President WEAVER HARRIS, Treas. C. E. FREELAND, Secty. NASHVILLE, TENNESSEE April 28, 1913 of our currency and banking system, you will deservedly go down in history with your four greatest predesessors. I am profoundly anxious for you to accomplish the monetary and banking reform, because of the predominant influence of the South in your administration, and also for the reason that many good people honestly believe the democratic party is not equal to the task. Lets show them. Yours truly, J L McWhorter 60932ackw 5/1/13 EAST BOSTON, April 29, 1913. Woodrow Wilson, President of the United States. My dear Sir: I had the pleasure of meeting you in Tremont Temple, Boston, during your Election tour last October, and I felt then that you were just as much President of the United States as you were two weeks ago, when I met you in the White House, in Washington, D.C. I would like most earnestly to call your attention to the vital necessity of doing something, and doing it promptly in the financial reformation of our currency. I feel that you have your mind most keenly on the vital necessity of this question- and about all I want to do is to emphasize the importance of prmptness in the matter. I noticed with pleasure the slick manner in which you hastened the tariff reform question, and, while that has the right of way, I think that or no other question will begin to equal in importance the reformation of our inelastic currency. There are more than a hundred reasons I could give you for prompt action in this matter, but I feel that you are better posted on the matter than I am, and I also feel in good conscience and willingness you will do your best. Outside of the needs of our railroads for more money the most vital question in the financial outlook is the need of an elastic currency to finance our prospective crop. The prospect of the new crop as you know is most brilliant, whcih makes the subjectall the more important in fact so important that unless this matter is put through by the present Congress, there 60933-2- is nothing that will prevent another panic similar to the Roosevelt ponic of 1907. Nearly every condition of our business world is pointing in the same direction that they did in 1907, and, to my mind, nothing will prevent a repetition of that sad event except the conditions I suggest. I do not know the detail of the currency bill that is under way, but one feature I have seen proposed was the guranteeing of bank loans, which in itself is a splendid thing to promote such elasticity as will be needed in the near future, but, outside of this I feel that what is vitally necessary to prevent a panic of the 1907 kind, is prompt action on the part of yourself and your Democratic Congress. Let us hope that, for the sake of the Democratic party- for our country's sake, and for your sake, you will be guided by such wisdom in this matter that there will be no necessity for hanging anyone on Haman's gibbet or any other place because of a panic during the term of the present executive. Yours respectfully, Christopher [?]. Surevy[?] Maverick House East Boston, Mass 60934[*93*] [*ansd 5/1/13*] [*THE WHITE HOUSE MAY 1 1913 RECEIVED*] Louisville, Ky. April 29, 1913 Honorable Woodrow Wilson, President of the United States. Dear Sir: - Earl in October I came to Louisville - having sold my small farm near this city for $3,300 - came her to live, and to invest the proceeds of sale of farm. It was all I had. I am an elderly woman, country-bred quite alone in the world, [*60935*]Through this same "Government" I have lost much. First: - my father gave his life for the South - at the battle of Pea Ridge. I was adopted by my mother's sister and her husband: our slaves were freed: farming became a losing business under the changed order of things, until the $15,000 farm dwindled into - my legacy of $3,300 - when the last of my foster-parents died - five years ago. Another source of distress: - Louisville has not a Democratic newspaper! Respectfully - (Miss) Mary A. Torbett. 643 - Floyd Street.and ignorant of business methods. Owing to the smallness of my capital - it was necessary for me to make the most of it in investing. I was advised to buy "stocks." I "invested" in 12 shares of "West Penn." at 80; 6 shares of Cities Service at 88 1/2' and of Utilities Improvement - 6 shares preferred, three shares common. As quoted to-day - my aggregate loss is $65.40. My dividends - up to date - amount to 58.64. This is the condition of things at the end of six months. How can I have known - what is assessed as a fact - that stocks are influenced by everything under heaven that happens - not only in this country - but all over the globe? The visit of the Secretary of State to California!! See inclosure. Mr. President - I know that you do not intend that the great jugernaut of Government shall crush to ruin women like myself driven by poverty to the necessity of taking risks - for very life's sake. [*60936*]THE LOUISVILLE HERALD, FRIDAY MORNING, APRIL 25, 1913. 8 BEARS SUCCEED IN LOWERING MARKET Whole List Sells Off And Losses Run From One To Eight Points. NEW. YORK, April 24.—Influenced by a number of unfavorable factors, the stock market today turned downward rather sharply. Trading was not heavy, however, | and pressure was not severe, except at intervals. While selling was mainly professional, it was apparent that liquidation was in progress in some parts of the market. This was indicated by the heaviness of standard investment stocks and seasoned bonds, which declined as readily as the speculative issues. Many new low records for the movement were made, and in the list were such stocks as New York Central. Northwestern, Illinois Central and American Tobacoco. Losses of 1 to 2 points were numerous, with declines among the less stable industrials running as high as 8 points. Chief among the day's bearish influences was the substantial victory of the firemen on Eastern railroads in their contest for higher wages. While it had been assumed that an increase would be granted, the award drew attention to the higher operating expenses which the railroads will be called to meet, as well as the possibility of further demands from other classes of employes. The concern felt in Europe over the Balkan situation was reflected in the foreign markets, and in some selling here for London account. Reports of further extensive applications for capital, the New Haven inquiry in Boston and the decision of the National Administration to despatch the Secretary of State to California. were other items which the bears found useful in pulling the market their way. Bonds were again under pressure. Panama 3s advanced on call. [*60937*] World-Wide Money Panic Is Seen In Gloomy Market Review What is probably the most surprising production and summary of financial conditions present and to come, is contained in a market letter just issued by Lindley & Co., a New York Stock Exchange firm. The letter predicts a repitition of the panic conditions of 1907 and other strained times of recent years. In short, the review is the most gloomy published for some time. Stockholders are urged to realize on present holdings of both railroad and industrial stocks. A world-wide money tightness is predicted. Under the head of "The Present Outlook." Lindley & Co. say, in part: "The immediate fluctuations in the stock market are always difficult to forecast, but the ultimate outcome, we have no hesistancy in saying, looks bad for the holders of securities. The trend is manifestly downward. Whether prices will reach the panic level of 1907 before a permanent recovery sets in, we would hardly venture to predict, but the tendency is certainly in that direction. The only modifying influence that we can see would be another big crop year, but even this might not have more than a steadying effect. The governing influence at the present time is money. Our legislators have left unheeded the warnings of 1907. Our currency is the same inelastic medium, and our banks will be in the same position as then in time of stress. We believe both the President and the leaders in Congress realize the seriousness of the situation. but the stress of politics has relegated banking reform to a position of secondary importance, when it ought to be receiving the first consideration, and the reform when it comes may come too late to stay the storm. The menace of short-time loans, falling due in our normally tight money period, with little prospect of conversion, hangs like a pall over the bond market. In the stock market there is little to encourage either the investor or the speculator. It has been held steady during the bad news and any good news will be sure to induce selling, and we can not urge our customers too strongly to improve the present opportunity to realize upon their holdings of both railraod and industrial stocks, that may be in a position to reap the benefit of their foresight when real bargains are offered." when real bargains are offered." ROBT. H. INGERSOLL NEW YORK CHICAGO SAN FRANSISCO LONDON, ENG. MONTREAL, CAN. MEXICO CITY Robt. H. Ingersoll & Bro. Ingersoll and Ingersoll-Trenton Watches Home Office, 315 4th Ave., Ashland Building NEAR 230 STREET New York City CHAS. H. INGERSOLL MANUFACTURERS INGERSOLL WATCHES $1.00 TO $5.00 AND INGERSOLL-TRENTON WATCHES, $5.00 TO $25.00 CHI/N ACK'D MAY 1 1913 G.T.M 93 THE WHITE HOUSE MAY 1- 1913 RECEIVED April 30th, 1913 Hon. Woodrow Wilson, Executive Mansion, Washington, D.C. Dear Mr. President:- I am enclosing a booklet containing the address of Mr. James G. Cannon, President of the Fourth National Bank, which strikes me as being an extraordinary document, especially considering its source, as in some re- spects it is quite Wilsonesque, notably in its directness, candor and novel statements. It is partioularly interesting in that it concedes that banking is a public business, and therefore a subject of public regulation. It has another virtue in that it does not apparently advocate the Aldrich or any other “out and dried" scheme, but is intended to be helpful along lines of suggestion. Very likely you have read it, but I am calling it to your attention on the off chance that you have not seen it. I believe action should be taken on the banking and currency question as soon as it may be done understandingly, but I am NOT in favor of getting some sort of legislation at any cost of possible mistakes. Yours very truly, (Enc. ) | CH luqusael 60939 "A Sign You see everywhere" INGERSOLL Dollar Watch On railroads from coast to coast CLEARING HOUSES AND CURRENCY No. 1 [*60940*]Clearing Houses and Currency No. 1 [*60941*]CLEARING HOUSES AND CURRENCY No. 1 BY JAMES G. CANNON PRESIDENT FOURTH NATIONAL BANK, NEW YORK Address Delivered at the ANNUAL BANQUET OF THE CHAMBER OF COMMERCE Syracuse, N. Y., March 27, 1913 [*60942*]The Trow Press New York CLEARING HOUSES AND CURRENCY No. 1 Gentlemen: It affords me very great pleasure to be present and speak to the members of the Syracuse Chamber of Commerce on this occasion. It is difficult to estimate the return a community derives either as direct or collateral benefits from an organization such as your Chamber of Commerce. Direct benefit, as a rule, is traceable and I should say that much of the commercial development of Syracuse can be credited to your efforts. The collateral benefit, while no less important, is just as essential to the welfare of a city as the more visible results. It is, in reality, the business atmosphere, and you cannot help but appreciate how much more can be accomplished where there is a spirit of healthy co-operation than where petty business jealousies are to be contended with. Chambers of Commerce and business organizations of a 3 609436 Clearing Houses and Currency kindred nature, operating on broad and liberal lines, are deserving of the undivided support of all classes of citizens. I am glad to have the opportunity to congratulate you on the evidence of the friendly spirit you have shown here to-night, and I trust that the material welfare and commercial standing of your city will always be your first thought. I am going to speak to you this evening on the subject of Clearing Houses. Very little attention has ever been paid to these institutions outside of the immediate banking circles which have been connected with them, but latterly more attention has been given to their facilities and there has been a growing feeling on the part of the business interests that they can be utilized along broader lines in helping to solve our currency problem. The Clearing House has become a powerful factor in the financial life of this country. From small beginnings, used simply as a device for exchanging checks between banks, it has become a great machine through the combination of banks in each association for upholding and strengthening the integrity of our financial institutions; and as its members have seen from time to time what can be accomplished through Clearing Houses and Currency 7 its agency they have delegated to it more and more powers; and whatever may be said as to the exercise of these powers, it still behooves us to stop and consider how far such powers can continue to be delegated to these various associations without becoming oppressive to the banks which are its members. A general discussion of these powers has been brought before the business community at the present time, largely on account of the activity of the so-called Pujo Committee, and it has been suggested by this Committee that these associations should be incorporated. Opinion seems to be divided among the bankers of the country as to the wisdom of this move. I have for a long time, after careful study of the situation, felt that they should be incorporated, and in an address delivered at Columbia Univeristy, shortly after the panic of 1907, I suggested the incoporation of Clearing Houses, and in my testimony before the Pujo Committee I also favored such incorporation. It has seemed to me that if Clearing Houses are ever to form the nucleus of a comprehensive currency system, in this country, as some of us believe to be possible, one of the first requsites is adequate provision for their incorporation. 60944 8 Clearing Houses and Currency As we all know, public sentiment has changed very decidedly during the past ten years with respect to matters of this character, and during the past decade all of our public service corporations have been carefully supervised by public service commissions and our railroads by the Interstate Commerce Commission, and I think it is the consensus of opinion that this has been for the public good. It is now becoming the order of the day that when any body of men exercise power which affects the public at large, or any great Portion of the public, that power or authority, although ostensibly private, is nevertheless impressed with public character, and, therefore, should be subject to governmental regulation, irrespective of the manner in which it may have been administered in the past, and as this seems to be the generally accepted status of affairs in the United States to-day, I am sure the Clearing Houses of this country sooner or later will of necessity be obliged to recognize it and either submit to incorporation under a general law of the Federal Government or become incorporated under various State laws. When incorporated they can be held responsible for their acts and be subject to such provisions as the law may delegate to them. I do not believe the extent to which many Clearing Houses and Currency 9 associations have carried their rules and regulations along lines which, to say the least, are very restrictive among their members in doing business, is generally known. In one large city in Pennsylvania, rules are enforced which prohibit the solicitation of accounts of other members, and members having depositors of other member banks shall have the right to ascertain from such members the extent and character of loans made to such depositors, and when a depositor applies to one member bank, that bank shall have the right to ascertain from the depositor’s bank whether a loan has previously been offered there and refused, and the reason for its refusal. In this way the depositor would actually be barred from closing his account with one bank and going with another. In one large southern city very stringent rules have been made with reference to the banks of the association allowing rebates of interest on loans paid before maturity, and a fixed rate is established which must be strictly adhered to in such case. This is done in several Clearing Houses of the country. In many Clearing Houses they have rules covering the methods of advertising of the different banks, and in one large city all printed adver- 60945 10 Clearing Houses and Currency tising by the members is restricted to daily newspapers and to circulars intended for distribution. And in another city the Clearing House has an advertising committee to which is referred all contracts for advertising by members. In a Pennsylvania city the associated banks report to each other the names of persons whose accounts have been closed, due to overdrawing or for any other reason, and the president or cashier, on the day the account is closed, sends a slip containing the names and addresses to all the other banks in the city. This provision is in force in several of our large Clearing House Associations. In a large western city every bank member of the association compels its depositors to sign an agreement that they will not hold the bank responsible for any check cashed or deposited until the returns are fully received. In another large western city a daily meeting of the committee is held to fix the buying rate for exchange received from customers in amounts of $10,000 and upward. In a large southern city no member of the association, or bank or trust company clearing through a member, can accept on deposit or Clearing Houses and Currency 11 for collection from local customers items drawn against local banks or trust companies not members of the association, thus barring out all competition. In several cities rules and regulations are established which prohibit the giving away of check books, and the rates which the banks must charge for the same are carefully supervised. In thirty-one cities, mostly large, the regulation rate of interest that shall be paid on deposits is fixed by the Clearing House Association, and in several cities the rates of interest that shall be charged upon loans by the associated banks are fixed. The Clearing House Association appoints a committee who from time to time names the minimum rate. One large Clearing House Association in the West was the recipient of special attention by the Pujo Committee, in its recent investigation, practically all of its active officers having been subjected to rigorous examination upon its rule that members should not be permitted to pay interest on checking accounts, except those already on their books, which was believed to be directed against a new bank. The bank in question refused to subscribe to the new rul- 6094612 Clearing Houses and Currency ing, claiming it would hamper its growth, and being uncertain of their power to enforce expulsion, the other members withdrew and formed a new association. Among the other notable Clearing House regulations are the fixing of the premium or discount to be paid or received on exchange, regulating the cost of transfers by wire, and in most cities the Clearing House defines the minimum amount of capital and surplus a bank must have to be eligible for membership. And last, but not least, in ninety-one cities the Clearing Houses have established rates for the collection of out-of-town checks and the fixing of penalties for the non-compliance with such rates. Many other associations have established rules and regulations in regard to Clearing House examiners. I could go on for some time, but I do not desire to weary you by giving details as to the methods which are being pursued by some of the two hundred and thirty associations in this country. I have taken the liberty of citing only a few examples of what is being done by Clearing House Associations so that you may see that there is some foundation for the sug- Clearing Houses and Currency 13 gestion that these associations should be incorporated and made responsible for their acts. While there is a large field for expansion in the activities of Clearing Houses, and while it may be that in some of the instances I have cited this expansion has been beneficial, nevertheless, in other cases in which the associations have gone to great lengths in the regulation of the business of their members, this represents an abuse of the Clearing House system. The point I seek to make is that these and other extensions of Clearing House activities, whether good or bad in themselves, involve a dangerous exercise of power, unless the whole system is brought under proper governmental regulation. By the undue exercise of power, many of the associations have undoubtedly laid themselves open to criticism. They will probably have to relinquish a good many of these regulations in the event of the Government establishing, as I sincerely trust it will, a Federal Incorporation Law for Clearing Houses. For some time I have been of the opinion that all banks should be admitted to membership in the associations, irrespective of the size of their capital, provided their management and loaning system were sound, and there is 6094714 Clearing Houses and Currency no good reason why small institutions, as well as large, should not have the facilities of the Clearing House. It is also a source of great expense to all banking institutions to collect checks and drafts on outside banks, not members of any given association, and I believe some plan can be formulated which will permit institutions of small capital, but with ample means for the amount of business they do, to become members. Perhaps some scheme for a sliding scale of capital and surplus might be applied to that it will be necessary only for institutions that desire to clear to have a proper amount of capital and surplus in proportion to their deposits. These and many other matters could be covered by a proper act of incorporation. My own preference, if it could be legally done,would be for a Federal Incorporation Act, something after the order of the National Bank Act. If this could be accomplished, Clearing Houses could, perhaps, classify under the head of Central Reserve and Reserve City Clearing Houses, with powers delegated to each one of these classes. My thought would be to make them come under the jurisdiction of the Secretary of the Treasury, rather than of the Comptroller of the Currency, because of the fact that the membership Clearing Houses and Currency 15 of these associations consists of State institutions, as well as institutions incorporated under the National Bank Act. In most associations the Clearing House Committee, sometimes called the Committee of Management, or Executive Committee, is elected annually and is vested with almost absolute  power, the direction, practically, of the whole machinery of the Clearing House resting in its hands. This committee consists of from three to five men, presidents of the strongest institutions of a given city. Ther personnel is usually changed from year to year, but in most large cities this committee not to know, through this examiner, pretty much the condition, methods, and business of all their competitors. While the men who have composed these committees in various Clearing Houses of the country for many years have been men of high character and standing, and have exercised the powers conferred upon them in a discreet manner, still I would favor the appointment for life or for a long tenure of office of a paid president of the association in several of the large cities like New16 Clearing Houses and Currency York, Chicago, St. Louis, Boston, Philadelphia and others, who should be a banker of national reputation, and draw a salary equal to that of any bank president. He should not engage in the banking business, but should devote all of his time to the duties of his office. In this way many things could be accomplished which cannot now be done in serving the interests of the members of the association and preserving the integrity and competition of the individual bank. I am firmly of the belief, and have been for several years, that in the Clearing House Associations of our country we have facilities which can be utilized as a safe basis upon which we may issue currency. In common with many others, I endorsed the so-called Aldrich Bill, but it has become more and more apparent that this bill cannot be enacted into law, and we naturally turn to the next best thing, namely, to utilize the existing machinery of the banking business which has been tried, and see if by careful analysis we cannot, from these present beginnings, which have served us so well, build up a monetary scheme which will serve the people of this country as a whole without respect to location or environment. If the country does not seem ripe for a wholesale turnover in Clearing Houses and Currency 17 our monetary system, why not do what is to be done gradually? I believe our present administration has a great opportunity to accomplish a lasting good along this line for the American people. There is a prejudice of long standing, which, happily, is growing less and less, against our banks, and the people at large are now coming to believe that the bankers of the nation are their friends and not their enemies. This old prejudice was due to the fact that banks formerly charged high rates for the use of money, and kept them at a distance. I think our bankers are beginning to realize that they have been largely at fault in this matter, and they are now taking the people more and more into their confidence in matters of finance. This is the day of the open door in banking, and the business of discounting a customer’s note is not held behind closed doors, but the customer now comes to the bank as a matter of right, because of certain obligations to him on the part of the bank. He presents a detailed statement of his affairs to the institution with which he deals, and on the strength of his financial condition revealed therein, and of the balances maintained, he secures from the bank the amount 6094918 Clearing Houses and Currency of accommodation which he himself recognizes as being just and proper according to established standards. The banking business is in this way becoming better known to the public at large, and men are not afraid of committing their affairs to their bank because of their competitors. This is the era of publicity- of competition in trade. The bankers of this country have been larely to blame for lack of currency reform because they could not, and cannot now, agree among themselves as to the best method to be pursued. The time is ripe, it seems to me, when we should agree upon some simple foundation and then build our own system of finances upon it, and that foundation, I believe, we have in the various Clearing House Associations of the country. I feel that an elastic currency, designed to meet the requirements of our trade, can be devised by availing ourselves of the machinery of our Clearing House Associations. In the panic of 1907, the maximum amount of Clearing House Loan Certificates, Cashier's Checks, and other substitutes for money issued, as far as known-and I have attempted to gather these statistics very carefully- was $236,189 which, after the panic, were all retired Clearing Houses and Currency 19 without the loss of a single dollar to the banks or to the public. Of this maximum amount, $84,420,000 were outstanding in New York; $38,285,000 in Chicago; $10,578,000 in St. Louis- a total of $137,283,000, or 5% of the whole having been contributed by the three present Central Reserve Cities. The Reserve Cities, forty-seven in number, had a maximum amount of $88,496,000, or 37 1/2% of the whole; so that the Central Reserve and Reserve Cities issued 95 1/2% of the entire amount of these so-called Emergency Certificates. If we look at it in another form and take simply the Sub-Treasury cities, nine in number, consisting of New York, Baltimore, Cincinnati, Boston, New Orleans, St. Louis, Philadelphia, Chicago, and San Francisco, these cities issued about 78% of the amount outstanding. I am giving you these figures to show that is the Clearing Houses either of the Central Reserve Cities and Reserve Cities, or simply the Clearing Houses in cities where there are Sub Treasuries, could be properly incorporated and privileges given to them in connection with the issue of an elastic currency suitable to the trade and commerce of the country, bearing a high20 Clearing Houses and Currency rate of interest while the same was outstanding, and retirable by deposit of lawful money in the Treasury of the United States, the same as National Bank Notes are now retired, we would then have the machinery established for handling an asset currency which would be available in all parts of the country. If these associations could then be federated in some way so that the actual cash reserve which is held in one association would not be drawn out by another association and a scramble for cash be made in times of stress, and by combining them under some governmental supervision and power whereby the reserves of the various associations could be massed, I believe we would have the beginning of a strong financial system in this country. From time to time methods could be evolved for the retirement of National Bank Notes based upon Government bonds and other of the reforms which are so needful could be carried out. The thought which I have just outlined, in a general way, would create elasticity in the assets of the banks in the various associations. In times of financial stress and special activity, what the banks require are assets which are readily convertible into cash and which will Clearing Houses and Currency 21 pay depositors as well as afford a basis for new loans. At such times we need expansion in the right direction, and not contraction. We do not need more fixed currency, but we do need flexibility. In times of panic or extremely tight money, the banks require some means by which they can convert their fixed assets into liquid assets without calling upon borrowers for the payment of their loans, and with these new liquid assets furnish further credit to their customers, because in such times the needs of the occasional, as well as other borrowers upon the banks, are very large. The purpose of the Clearing House Loan Certificates, which were used so extensively in the panic of 1907, was to allow the banks to take to the Clearing House their fixed assets and to convert them into a medium of exchange be- tween themselves, thus allowing the extension of further credit, which credit was utilized by their depositors through the Clearing House. Panic always produces fright, not only among the public at large, but also among the banks themselves, and if we could have a provision for the issuance of an asset currency, through a modification of the Clearing House system, and properly authorized under Government 6095122 Clearing Houses and Currency supervision, it would go a long way toward allaying the fear which occurs at such periods and would, to a great extent, prevent these periodical disturbances in our financial world. It is not my desire to appear a pessimist with respect to the immediate future of this great country of ours, but I do feel very strongly that something should be done, and done at once, looking to the reform of our currency. The money markets of the world are very firm, and the demands upon capital for several years are going to be greater than ever before. A large amount of the world’s funds have for some time been in the process of conversion into fixed capital, such as railroads, buildings of unprecedented size, public service utilities, the Panama Canal, conservation and irrigation schemes, and other things of like character, not only in this country, but throughout the civilized world. Another feature of the situation is the disturbance of the financial equilibrium which has been brought about by the extraordinary absorption of gold by India. It behooves us, therefore, in view of the large demands for credit which are staring us in the face from all directions, to so adjust our currency conditions in this country that we will be in a position to meet any exigencies that may arise, without disturbing our prosperity, and I earnestly Clearing Houses and Currency 23 hope our present administration will see the necessity for promptly finding some solution of our currency problem. 60952TREASURY DEPARTMENT OFFICE OF THE SECURETARY WASHINGTON DIVISION OF PRINTING AND STATIONERY May, 6 1913. 93 Dear Mr. president: Being deeply interested in the currency question, and knowing that you are also, I take the liberty of sending you herewith some suggestions on the subject, which I would be greatly pleased to have you read, Very sincerely, [?]uo. G. H[a]rndon. Hon. Woodrow Wilson, The White House. 60953[93] AN ELASTIC CURRENCY. By JOHN G. HERNDON. If the suggestions made by the writer in a former article should be adopted (which article was included in the remarks of Hon. John Q. Tilson, of Connecticut, in the House of Representatives, on Tuesday, August 6, 1912, while addressing the House on "A bill to provide for a uniform national-bank currency,” H.R. 26115), it would result in reducing our paper currency to two kinds--a coin certificate and a bond-secured currency certificate. The coin certificate would take the place of the gold and silver certificates and the United States and Treasury notes, while the bond-secured currency certificates would supersede the 37,000 varieties of national bank notes, as the names of the banks would be eliminated from the currency issued to them. The coin certificates would be based on the gold and silver in the Treasury, while the currency certificates would be based on and secured by noninterest-bearing bonds issued by the Government. These bonds should be issued to any banking institution desiring to purchase them at par and in any amounts desired. If a bank desired to obtain fifty thousand dollars' worth of these currency certificates it would first be required to purchase fifty thousand dollars' worth of noninterest-bearing United States bonds. Having bought the bonds, the bank would deposit them with the Government and receive in exchange for them a like amount of the currency certificates. The fifty thousand dollars paid for the bonds would then be covered into the Treasury and coin certificates would be issued against it. These coin certificates would then be loaned to or deposited in the bank making the purchase of the bonds, provided the bank could and would give approved security for the loan or deposit and pay the Government at least two per cent interest per annum therefor. 60954- 2 - The classes of securities furnished the Government for these loans or deposits should be such as are now accepted by the Government as security for deposits of public moneys, and the amounts loaned on them should be sufficiently below the real value of the securities pledged to make their redemption absolutely certain. A bank should be allowed to borrow any portion of or the entire amount it originally paid for the bonds, and for any length of time, so long as it paid interest on the same and the market value of the securities pledged for it did not fall below the Government's requirements. If a bank did not need or could not use to advantage this money, there would be no obligation resting on it to take it. If, on the other hand, it could use a portion of it, or all of it, for three, six, or twelve months, or even longer, when crop-moving time or some other emergency arose it would always be at its disposal, for this money should never be used for any other purpose. It would be a trust fund to be loaned to banks on approved security and ultimately for the redemption of the Government's noninterest-bearing bonds. If a bank desired to retire from business it would first be necessary for it to redeem any outstanding obligations it owed the Government on account of borrowed money for which it had pledged its securities. Then it would return to the Government the amount of currency certificates it received from the Government and the Government would return to the bank the amount it paid for the bonds, which would then be canceled, together with a like amount of the currency and coin certificates, and the deal closed. There would be no waiting for years to close the account, as is now the case. The bonds should be redeemable at the pleasure of the purchaser, for the money would always be on hand with which to pay them. To sum up, the purchaser gets his bonds at par, receives currency certificates in a like sum when the bonds are deposited, is granted the 60955- 3 - privilege of borrowing from the Government an additional sum equal to the amount he paid for the bonds, and can have the money he paid for the bonds returned to him whenever he so desires. As the Government would issue these certificates, the banks would be relieved from a vast expense in connection therewith, probably amounting to a million dollars annually. The Government, however, would be at no expense in the matter, as it would pay no interest on its bonds, while the two per cent interest to be paid by the banks for the money they would borrow from the fund which they themselves would create would be sufficient to met all expenses in connection with the issuing and redemption of the certificates. This would provide an elastic currency, yet a currency that would contract to its normal proportions whenever the emergency that called it forth had passed. If the amount of interest mentioned--two percent-- is not enough, it could've increased to two-and-a-half, or whatever amount is necessary and just. The plan would not only permit future national banks to obtain double the volume of currency that is now authorized by law to be issued to them by the Government--half in currency certificates and half in coin certificates--but it would also permit all banks and trust companies to purchase these non-interest bearing bonds and have issued to them the currency certificates provided for thereunder, granting them the same privilege of borrowing money from the Government that is accorded to national banks, and on the same terms. A national bank already in existence having on deposit with the Government interest-bearing bonds to secure its circulation could purchase an equal amount of the noninterest-bearing bonds and substitute them for those bearing interest, which latter could then be used as security for loans or deposits from the Government or they could be sold, thus reducing the bank’s investment in bonds to its original amount, 60956-4- yet doubling its volume of currency if it should desire to take advantage of the Government's offer to deposit with or lend it money. If the banks were thus privileged to increase their circulating medium in this way, in times of emergency of financial strain it would prevent money panics, as they could not occur under such conditions. And now a word or two as to the soundness of the proposition. The United States has for years been selling its bonds in order to obtain gold with which to meet expenses in connection with certain extraordinary undertakings or obligations, the latest being the building of the Panama Canal. These various issues of bonds bear interest in different amounts, the last issue of $50,000,000 being at three per cent, and, with the exception of this last issue, these bonds can be deposited with the Government by national banking associations and the Government will issue to said associations national bank notes equal in amount to the face value of the bonds so deposited. These notes are as good as gold; in fact they may be exchanged for gold, although the process of making this exchange is very circuitous. Now, it would seem that if the present bank notes are properly secured, then the ones I suggest would be equally so at least, as the vast amount of interest the Government is now paying on the bonds heretofore issues would be saved, thus increasing in that proportion the value of the security on which the notes are based. Now as to the risk the Government would assume in depositing with the banks the money the said banks pay for their bonds, it certainly would be no greater than that assumed by the Government in the past, when hundreds of millions were so deposited on which not one cent of interest was paid by the banks, whereas under the plan here outlined the banks would pay the Government a rate of interest at least sufficient to cover the cost of maintaining the system. This currency would be safe, sound, and stable, expanding and contracting as the needs of business demanded; a currency half of which 60957-5- would be secured by deposits of United States bonds and the other half by deposits of lawful money in the Treasury of the United States. Now, if it should be thought desirable to loan back to or deposit with the banks only fifty or seventy-five per cent of the amounts they pay for noninterest-bearing bonds, the remaining fifty or twenty-five per cent could be used for retiring United States notes by substituting the suggested coin certificates for them. If this were done Government never again would be called upon to sell bonds in order to obtain gold with which to redeem three notes, as the difference between the amounts received from the sale of the noninterest-bearing bonds and the sums loaned back to or deposited with the banks would provide fund that would not only be sufficient for the redemption of all United States notes outstanding, but eventually could be used to pay off the bonded indebtedness of the United States. To illustrate: If the various national, state, and savings banks and trust companies should decide to invest in these suggested noninterest bearing bonds a sum equal to the face value of the interest-bearing bonds the national banks now have on deposit with the Government to secure their circulation, this would result in paying into the Treasury, in round numbers, $1,000,000,000. On depositing these noninterest-bearing bonds with the Government the banks would receive in exchange therefor a like sum of the currency certificates and in addition thereto be granted the privilege of borrowing back from the Government half or three-fourths of the amounts they paid for the bonds. If only half of the amount invested in bonds should be loaned back to them this would leave a balance of $500,000,000 in the Treasury available for the redemption of United States notes and interest-bearing bonds. If seventy- five per cent were loaned back to or deposited with the banks, this would leave a balance of $250,000,000 in the Treasury, which, when added to the $150,000,000 in gold now on deposit for the redemption of the United States notes, would be more than sufficient for that purpose. 60958-6- It is not proposed, however, to decrease the volume of currency by the redemption of the United States notes. It is merely proposed to substitute $346,000,000 in gold, for $346,000,000 in United States notes, back of which there are only $150,000,000 in gold. If the requirement that banks shall purchase United States bonds and deposit them with the Government in order to secure their circulation were rescinded it would simplify matters still further. A deposit of bonds is entirely unnecessary under the plan here outlined and adds nothing whatever tot he Government's security, but does add a great deal of useless and unnecessary expense for printing and accounting. If a bank or trust company decides to exchange lawful money for these currency certificates in order to secure the privilege of borrowing back from the Government fifty, seventy-five, or even one hundred per cent of the money so invested, allow it to do so, but do not put it and the Government to unnecessary expense by requiring the purchase of bonds. The Government receives dollar for dollar in the exchange, and if it deposits with or loans back to the bank any part of the sum so received it is amply secured by the deposit of acceptable collateral-- just such collateral as is now required of national banks when public moneys are deposited with them. Washington, D.C. 60959[*File*] [*93*] 5/10/13 Dear Mr. Tumulty: The President directed me to send you the attached list (which he wished regarded as confidential) and to ask if you would find out what you could about these gentlemen and about their willingness [*60960*]2 to follow us along the lines of sound currency legislation. R. F. [*60961*][*[93]*] BANKING AND CURRENCY 1. Carter Glass of Virginia 2. Charles A. Korbly of Indiana 3. William G. Brown of West Virginia 4. R. J. Bulkley of Ohio 5. Robert L. Doughton of North Carolina 6. Hubert D. Stephens of Mississippi 7. James F. Byrnes of South Carolina 8. George A. Feely of Kansas [*look this up*] 9. Thoms G. Patten of New York 10. Claudius U. Stone of Illinois 11. Michael F. Phelan of Massachusetts 12. Joe H. Eagle of Texas 13. Otis T. Wingo of Arkansas 14. H. H. Seldomridge of Colorado [*60962*] [*93*] [*THE WHITE HOUSE MAY 20 1913 RECIEVED*] United State Senate Washington, D.C. [*ans*] [*ackgd 5/20/13*] May 20, 1913. My dear W. President: Having had compiled for my own use the party platform planks of recent years in Banking and Currency I send you a copy # for your convenience. Yours very truly Robt Owen [*389*] [*+*] [*#*] [*60963*]May 20, 1913. My dear Senator: Thank you warmly for your letter of May 20th and for your courtesy in sending me the party platform planks on Banking and Currency. I am very glad to have them. Cordially and sincerely yours, Hon. Robert L. Owen, United States Senate. [*60964*]MELDRUM, H. A., Buffalo, N. Y., May 28, 1913. Extends invitation to the President to attend dinner, at which addresses will be delivered upon the subject of banking and currency under the auspices of the Buffalo (N. Y.) Chamber of Commerce, June 14, 1913. See Inv, “B" [*93*] [*60965*] W.L.BOREMAN DRUGS, BOOKS, STATIONERY PARKERSBURG, W. VA 5/21/13 [*93*] [*ACK'D JUN 2 1913 T.M.H*] Mr. Woodrow Wilson Washington President of the United States Dear Sir I wish to thank you for appointing Lewis F. Post to the position of assistant secretary of Labor. He is the kind of democrat I like, a little d. democrat. I want to ask you if you ever heard of the money theory or plan his close friend Tom L. Johnson proposed for this county. And by the way it was partly sanctioned or proposed by that old Lincoln man F.E. Spinner,- a former Treasurer of the U.S., he who wrote that funny sprawling signature on the "greenbacks." Tom Johnson's plan was to issue greenbacks redeemable by taxation. But when there was a surplus or appeared to be a surplus or when the holder of any amount of greenback got a [*60966*]W.I. BOREMAN DRUGS, BOOKS, STATIONERY PARKERSBURG, W. VA. 2 scare in his system he was to have the privilege to take his greenbacks to the post office and buy a United States bond bearing a low interest said bond to be redeemable in greenbacks whenever the scare was over. This also was Spinners plan I think. It would work automatically. Dont call these crank ideas till you have inquired into them. I think the plan is very simple, practical and wonderfully profitable to the government. Sincerely W.I. Boreman Louis D. Brandeis, Boston, Mass. [*93*] In connection with conference had with the President on the 11th, gives the substance of the opinion expressed by him on the proposed currency legislation. [*#*] [*60968*]Louis D. Brandeis 161 Devonshire Street Boston, Mass. June 14, 1915 B/P 93 My dear Mr. President: As requested at our conference on the 11th I am writing you the substance of the opinion expressed by me on the proposed currency legislation: First: It is, of course, desirable to enact at an early date a currency bill, if an adequate, confidence-inspiring bill can be passed. But full and free discussion of any proposed measure is essential both to safety and to public confidence in its wisdom. Up to this time there has been little discussion of the currency question except that organized by the bankers. Second: The power to issue currency should be vested exclusively in Government officials, even when the currency is issued against commercial paper. The American people will not be content to have the discretion necessarily involved vested in a Board composed wholly or in part of bankers; for their judgement may be biased by private interest or affiliation. The function of the bankers should be limited strictly to that of an advisory council. Merely placing in the Government the ultimate supervision and control over the currency issues would not afford the public adequate protection. Third: It was suggested that a bill, providing for local boards of nine members, of whom six would be bankers, could be passed now, because of the public opinion which the bankers have [*60969*]Hon. W.W. 2 been making within the past two years; that it would be desirable to so pass such a bill in order to prevent panic conditions, and that letter,when the public should have become educated not to heed the cry against the Government entering the banking business, the law might be modified so as to transfer the power over the currency issue to Government officials. But a bill vesting the immediate currency-issuing power in the bankers is almost certain to meet with serious opposition, and there is little probability of securing the passage of such a bill in time to prevent an early financial disturbance, or to quickly allay it. Fourth: The effect which the enactment of an improved currency lay would have in preventing or allaying financial disturbances has, I believe, been greatly exaggerated. The beneficent effect of the best conceivable currency bill will be relatively slight, unless we are able to curb the money trust, and to remove the uneasiness among business men due to its power. Nothing would go so far in establishing confidence among business men as the assurance that the Government will control the currency issues and the conviction that whatever money is available, will be available for business generally, and not be subject to the control of a favored few. Any currency bill which is enacted, should embody provisions framed so that the people may have some assurance that the change will ensure their benefit. Fifth: It is a serious question whether, in case we should pass a currency bill satisfactory to the banking interests, and which contains no provisions limiting the power or the month 60970 Hon. W. W. 3 trust, the probability of enacting later legislation to curb the money trusts would not be greatly lessened. Sixth: The conflict between the policies of the Administration and the desires of the financiers and of big business, is an irreconcilable one. Concessions to the big business interests must in the end prove futile. The administration can at best have only their seeming or temporary cooperation. In essentials they must be hostile. While we must give the most careful consideration to their recommendations and avail ourselves of their expert knowledge, it is extremely dangerous to follow their advice even in a field technically their own. Very cordially yours, [Signature] Hon. Woodrow Wilson, White House, Washington, D.C. 60971JNO. N. Garner 15th Dist. Texas 93 House of Representatives U.S. Washington, D.C. June 14, 1913 Honorable Woodrow Wilson, President of the United States, The White House. My Dear Mr. President: The statement appearing in this morning's papers by my colleague from Texas, Mr. Henry, impels me to write you with this note to assure you that more than two-thirds of the Texas delegation are in hearty sympathy with your efforts to give the country legislation upon the currency question. While a goodly portion of us Texans favored some one else for the nomination, we were sincere and energetic Wilson men after the Convention, and we are now as anxious, and I think more so, to make your administration a success, than some of those who were original Wilson men. May I add that there seems to be some opposition to currency legislation at this session, among the opposing element being some important factors in both branches of Congress, but it is my judgement that a bill can be put through the House at this session. We promised the country legislation along this line- the business people are expecting it; if we are not competent to legislate upon this all important question I think there is some justification for the Republicans to say that we are not capable of running this Government. However, the principal purpose of this note is to assure you that while there is an apparent division in the House, and possibly some important factors are against us, we can, with your leadership, pass a bill in the House, and with you will be found a very large proportion of the Texas delegation. With great respect, I am Sincerely yours, JNO. N. Garner 60972June 16, 1913 93 My dear Mr. Garner: Accept my cordial thanks for your generous letter of June 14th: It was indeed kind of you to go to the trouble to reassure me as to the sentiment among your State delegation and among the members of the House generally, and I very deeply appreciate the friendly spirit which actuated you. I am very much gratified to know that I can count upon you for the support which is so necessary to the success of our common cause. With warm regard, Cordially and sincerely yours, Hon. John N. Garner House of Representatives 9 60973June 17, 1913 [*93*] My dear Mr. Brandeis: I am sincerely obliged to you for your kindness in sending your letter of June fourteenth. It serves me as a most valuable memorandum of our conversation. In haste Cordially and faithfully yours, Mr. Louis D. Brandeis, Boston, Massachusetts [*60974*][*[93]*] [*THE WHITE HOUSE JUNE 19 1913 RECEIVED*] [*Ackgd & encs. send 6/19/13*] THE SECRETARY OF THE TREASURY WASHINGTON June 17, 1913. Dear Mr. President: I thought you might be interested in reading the enclosed letters. We have had many very interesting ones of a similar character, but I shall not burden you with them. Sincerely yours W G McAdoo The President, The White House. [*60975*]Banking and Currency Legislation Remarks of Hon. Francis G. Newlands of Nevada in the Senate of the United States June 17, 1913 93 Washington 1913 97870-12119 60976UNItED STATES OF AMERICA GOVERNMENT PRINTING OFFICE REMARKS OF HON. FRANCIS G. NEWLANDS Mr. NEWLANDS. I offer a resolution which I ask to have read. The VICE PRESIDENT. The Secretary will read the resolution for the information of the Senate. The resolution (S. Res. 100) was read, as follows: Resolved, the is the sense of the Senate-- 1. That in all legislation affecting the regulation of commerce regard should be had to our dual system of government which gives to the respective States control of commerce between the State and to the United States control of commerce between the States; and that all contemplated legislation should have in view not the absorption of the functions of the States by the National Government, but the full exercise of the powers of the Nation and the States under a system of cooperation authorized by law which, without impairing any of the functions of the respective sovereigns, will bring them into harmony regarding the relation of State to interstate commerce. 2. That with a view to regulating interstate exchange and preventing its interruption by bank panics the National and State banks within the boundaries of each State should be brought into union under national law in reserve associations analogous to existing clearing-house associations, the membership of the State banks in such reserve associations to be made dependent upon their complying with the requirements of the national banking act regarding capital and reserves and upon their submitting to such examination as the national banks are subjected to. 3. That such reserve associations of the respective States should be federated under national law by the organization of a national reserve board composed of nine members to be selected by the various State reserve associations, one member thereof from each judicial circuit, and of nine other members to be selected by the President of the United States from the department chiefs or otherwise; such reserve board to have such powers in bringing the various State reserve associations into cooperation for the purpose of protecting their reserves and preventing the interruption of interstate exchange as Congress may determine, and to be advisory to Congress and to the executive department. 4. That the comptroller's office, with all its officials, funds, powers, and duties should be merged in a nonpartisan national banking commission, to be appointed by the President, of which commission the Secretary of the Treasury shall be the chairman and the Comptroller of the Currency the secretary; such commission to have powers of investigation, correction, and publicity over banks engaged in interstate exchange analogous, so far as practicable, to those now exercised by the Interstate Commerce Commission over carriers engaged in interstate transportation. 5. That there should be legislation which shall bring such national banking commission into cooperation with similar commissions organized by the respective States. 6. That legislation should be enacted which will gradually diminish the percentage of the reserves of the country banks permitted to be deposited in reserve city and central reserve city banks, to be used there for purposes of speculation instead of exchange. Mr. NEWLANDS. Mr. President, I wish to make a brief statement in connection with the resolution. I believe immediate action should be had regarding banking laws. I think, however, that instead of organizing 15 regional 97870—12119 3 [*60977*]4 reserve associations, composed of both national and State banks within certain banking zones, it would be better to organize a reserve association in each State composed of the banks, both national and State, within such State, thus accommodating our economic to our political divisions. Provision can be made for some of the smaller States by allowing the banks in such States to join the associations of adjoining larger States until they reach a certain population. It is, of course, desirable that the reserve associations should include both the State and national banks. One-half of the banks of the country are State banks, and one-half of the deposits of the country are in State banks. Any system intended to establish security in our banking system must include both halves and not simply one half. It would not, in my judgement, do to put in one association the banks of half a dozen different States, with all their differences in banking laws and regulations. It is inconvenient enough to have in one association banks created and regulated sovereigns. It would be much easier to bring the national sovereignty into harmony with a single State sovereignty in a reserve association than with three or four State sovereignties. If this were a Nation without State lines the economic zone might be the best, but as long as we have a Nation of sovereign States the economical lines should conform to the State lines. This is so now with reference to both transportation and banking. We have trade commissions organized under both national and State laws, and in all this legislation the economic lines conform to the State lines. I believe that the future of our Government depends upon the exercise, not the disuse, of State functions. There may be some inconvenience, but unless the State functions are exercised. concurrently with the national functions are exercised concurrently with the national functions the former will gradually sink into disuse, and we will have some day a centralized Government at Washington over three or four hundred millions of people- a Government that will be absolutely unwieldy. and subversive of everything like home rule. Mr. President, I ask that the resolution may lie on the table for the present. I wish to give notice that at the next session of the Senate I will speak upon it. The VICE PRESIDENT. the resolution will lie on the table and be printed. 97870-12119 BOARD OF DIRECTORS NEIL D. SILLS T. P. BRYAN ALVIN M. SMITH AMOS M GOVER H W. ROUNTREE T. M CARRINGTON B. T. JELLISON O. J. SANDS CHAS. E. STRAUS, JR. EDMUND STRUDWICK W. T REED W. S. P. MAYO E. RANDOLPH WILLIAMS BUSINESS MEN'S CLUB RICHMOND, VIRGINIA TENTH FLOOR AMERICAN NATIONAL BANK BUILDING TELEPHONE MADISON 6972 TELEPHONE MONROE 1011 OFFICERS T. P. BRYAN PRESIDENT ALVIN M. SMITH FIRST VICE-PRESIDENT W. S. P. MAYO SECOND VICE-PRESIDENT AMOS M. GOVER RECORDING SECRETARY C. P. WALFORD, JR. SECRETARY AND TREASURER [*ACK'D JUN 19 1913 C.T.H.*] [*THE WHITE HOUSE JUN 19 1913 RECEIVED*] [*93*] [*THE LIBRARY OF CONGRESS*] June 17, 1913. Hon. Woodrow Wilson, Washington, D. C. Honored Sir: We have noted in the Associated Press report this morning that Mr. Underwood does not believe or feel that Banking and Currency Reform can be had at the extra session of Congress unless the business people get behind it and push it, We wish to call your attention to the fact that the Business Men's Club of Richmond, Virginia on March 6th, 1912 passed a resolution favoring immediate revision of the Bank and Currency Laws of our Country. The membership of this Club is composed of over 1,100 of the most substantial men in this community, and we fail to see how Mr. Underwood or any other member of Congress can evade the issue at this time, We urge the passage of a Banking and Currency Law at this extra session of Congress, and trust that we may have the pleasure of advising our members that you will give your earnest support to an immediate revision of our Banking and Currency Laws. Yours very truly, Alvin M. Smith President, AMS/B. [*60978*]William F. Fitzgerald Boston June 18, 1913. (Ackgd 6/20/13) Mr. Joseph P. Tumulty, Washington, D. C. Dear Mr. Tumulty:- Mr. Quincy and myself have been quite busy on the income tax and a brief has been sent the President. If their statements are those of fact and their information of value, they are most desirable people to have with the Administration. The most favorable sign I see is that many men are now beginning to realize for the first time that this is really a government for all and that anybody can get a square deal, and that the time of playing the game from an entirely selfish standpoint is past. It is this same thought which caused me to remark a few months ago that I believed within twelve months President Wilson would be one of the country's greatest assets. I am most anxious to see you to go thoroughly into detail of the amazing work done by the administration, and what they frustrated; and if I read the signs correctly I doubt if such things would be tried again during President Wilson's term of office. Probably you are better posted on the situation than I am, but I have observed very carefully and at times I have felt that the administration was not alive to conditions. I am so thoroughly impressed with the great body of citizens, with the wonderful ability of men who were too diffident to go into public affairs hitherto, becoming interestd in the square deal movement, and being brought into active citizenship by assisting the government in handling its policies, that I can see by the turn of a hand, a government which will command the confidence of all. [*60979*]WILLIAM F. FITZGERALD BOSTON June 18, 1913. Mr. J. P. T. #2. I am sorry Secretary Daniels was so busy that he could not give more time to the business end, and give men an opportunity to meet and know him. He has made a wonderful impression here, and his kindliness and sincerity equal his ability, in my judgment. The sentiment on the street tonight is of a negative character. While investors are sure that the standard stocks are cheap they are still very fearful. A return of confidence will find the market bare of stocks, and this in my judgment will bring about a feeling of stability and reliance in the government. With kind regards, I am Yours very truly, W. F. Fizgerald c-1. [*+*] [*60980*]CARTER GLASS 6TH DIST., VA. BANKING AND CURRENCY PUBLIC BUILDINGS House of Representatives, Washington. June 18, 1913. [93] [2] My dear Mr. President: At the risk of being regarded pertinacious I am going to ask if you will not consider the advisablity of modifying somewhat your view of bank representation on the proposed Federal Reserve Board. The matter has given me much concern, and more than ever I am convinced that it will be a grave mistake to alter so radically the feature of the bill indicated. Last night when I came back to my hotel I found Mr. Bulkley waiting and he sat with me until past one o'clokc this morning. Knowing that he was so earnestly for a government note issue and for government control, I imagined he would be delighted with the suggested alteration. I told him of the change without first indicating my own view and much to my astonishment- and gratification- he instantly and vigorously protested, saying he had regarded the extent to which we had already put the government in control, together with the tremendous power of the Board, as the real weakness of the bill. He also said we could not escape the charge of exposing the banking business of the country to political control. As indicated to you last night, Mr. Bulkley is a strong man of the committee with whom we must reckon; hence his view of this proposed alteration fully confirms my belief that it would prove an almost irretrivable mistake to leave the banks without representation on the Central Board. You will note that the bill requires the three members selected by the banks to sever all bank connections before qualifying. Might it not be well at least to take Mr. McAdoo's suggestion and have the President select these men from a list proposed by the banks? With high esteem, Sincerely yours, Carter Glass. Hon Woodrow Wilson, The White House. 60981 [*[93]*] Since writing the enclosed letter, I have been handed this newspaper clipping from the New York Times which, as will be noted, strongly objects to the extent of government control already provided in the bill. I send it as indicative of the lines of attack that may be expected. C.E. [*60982*] PUTTING THE GOVERNMENT IN THE BANKING BUSINESS The new Currency Reform bill, as prepared by Senator Owen of Oklahoma, Representative Carter Glass, and Secretary McAdoo, provides for United States Treasury notes to be issued to the banks at the discretion of a Federal Board of Reserve controlled absolutely by the Government. This takes us back as far as it is now possible to go in the direction of the greenback. The difference is that the new notes would not be fiat money; they would have behind them a reserve in banks, shareholders' liability, apparently, and bank assets, and that, of course, is a very substantial difference. It has been the belief of Mr. Bryan, since the free coinage of silver ceased to be a living issue, that the country’s currency should be supplied by the Federal Treasury; that belief has been avowed by Senator Owen in speeches reported in The Congressional Record. The Monetary Commission recommended, it will be recalled, that additional currency, when needed, should be issued to the banks by the Central Reserve Association, and that they should have behind them a 50 percent reserve in gold or legal reserve money. We do not suppose the difference is vital between notes issued by the Treasury and notes issued by a Central Reserve Association, if we limit the import of the word issue to the mere physical act of sending out the notes or to the legend they bear upon their face. The difference between the Monetary Commission plan and the Owen-Glass plan, however, is vital; it is tremendous, since it involves the differences that lie between sound banking and a kind of banking that the experience of the world for centuries has demonstrated to be radically unsound and unsafe. In the various reserve districts, there would be nine Directors, three elected by the voters of the member banks, three others would be representative business men elected by the member banks, while the remaining three would be appointed by the President of the United States. It will be seen at once that the plan effectually provides for putting the Government into banking and for depriving bankers of the control of their own business. What checks and safeguards the plan provides can be determined only by a scrutiny of the detailed provisions of the bill in its final form. But there can be no doubt about the intention of its authors or of the working of the plan in conditions which might at any time arise. If it should happen that the Federal Board of Reserve was at any time in control of an Administration that believed that the cure for hard times or for any financial trouble was the issue of circulating notes in great volume, there can be hardly a doubt that this plan would confer the power to expand the currency to a dangerous degree. With two-thirds of the Central Board in its control, with one-third of each regional board in sympathy, and with the certainty that many of the reserve associations would be active partisans of a greater and always greater volume of currency, nothing but the tax upon the notes would stand in the way of a dangerous expansion of the circulating medium, and this tax, it appears, is for the first four months merely nominal. That danger inheres in every plan which gives a Government control over the issues of currency. The Monetary Commission plan was strictly automatic. In no possible way could politics interfere with the working of the system, while the Owen-Glass plan creates a system altogether political. In the one case, the country’s banking and currency would have been managed by experts, by men with the qualification of experience and having the closest possible knowledge of local business conditions. In the other, the system would be under the control of political appointees, and we know only too well in this country that means men appointed to office not because of knowledge and fitness, but for personal or party reasons, just as we appoint thousands of public officers, including our diplomatic representatives. This would not be a reform of our banking and currency systems. It would be a retrogression, a taking up of what experience has discarded, what we know to be unsound and unsafe. The Monetary Commission studied the gradual retirement of the secured circulation and the purchase from the banks of the 2 per cents upon which it is based. The new plan allows twenty years for the retirement of outstanding notes. The Commission plan made a careful provision also for bank acceptances and the establishing of a standard of commercial bills, for the discounting of those bills, for the providing of a gold supply to support at all times the credit of the Government, and for taking charge of the receipts and disbursements of the Treasury. We shall know in what way these matters are cared for by the new plan when the Owen-Glass bill is reported. For one thing, it does not provide for the guarantee of bank deposits, and upon that we must congratulate its authors. Thethat, of course, is a very substantial difference. It has been the belief of Mr. Brax, since the free coinage of silver ceased to be a living issue, that the country’s currency should be supplied by the Federal Treasury; that belief has been avowed by Senator Owen in speeches reported in The Congressional Record. The Monetary Commission recommended, it will be recalled, that additional currency, when needed, should be issued to the banks by the Central Reserve Association, and that they should have behind them a 50 per cent. reserve in gold or legal reserve money. We do not suppose the difference is vital between notes issued by the Treasury and notes issued by a Central Reserve Association, if we limit the issue to the mere physical act of sending out the notes or to the legend they bear upon their face. The difference between the Monetary Commission plan and the Owen-Glass plan, however, is vital, it is tremendous, since it involves the differences between sound banking and a kind of banking that the experience of the world for centuries has demonstrated to be radically unsound and unsafe. The radical departure of the Owen-Glass plan from the Monetary Commission plan may be readily understood by a comparison of the manner in which the central boards of control, respectively, would be organized. The National Reserve Association authorized in the Commission plan would have been a federation of all the banks in the country, controlled by them. This reserve association would have had a board of forty-six Directors, of whom thirty-nine would have been chosen by the Directors of the fifteen district branches of the association, embracing all the banks in the country, with seven ex-officio members, including a Governor to be appointed by the President from a list submitted by the Central Reserve Directors, and the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce and Labor, and the Controller of the Currency; and fifteen of these Directors would have been representatives of agriculture, commerce, and industry, men not engaged in banking or interested in banking. To this board, composed chiefly of bankers, would have been entrusted the duty of issuing notes, and of regulating discounts, and the other operations of the system, of maintaining the central reserve. The Owen-Glass Plan provides for a Federal Reserve Board consisting of nine members. Three of them would be elected by regional reserve associations, that is, by the banks; four would be appointed by the President, and the eighth and ninth members would be the Secretary of the Treasury and the Secretary of Agriculture. Thus, the Administration at any given time would control six of the nine members. The government would have control of the board. At the same time, the votes of the board, upon the demand of regional reserve associations, of which there are to be fifteen in the country, would have authority to issue Treasury notes. Moreover, in each of the fifteen regional reserve boards, the votes of the government appointees would be under the control of political authorities in this country—that means men appointed to office not because of knowledge and fitness, but for personal or party reasons, just as we appoint thousands of public officers, including our diplomatic representatives. This would not be a reform of our banking and currency systems. It would be a retrogression, a taking up of what experience has discarded as unsound and unsafe. The case made for a gradual retirement of the bond-secured circulation and the purchase from the banks of the 2 per cents upon which it is based. The new plan allows twenty years for the retirement of outstanding notes. The Commission plan made a careful provision also for bank acceptances and the establishing of a standard of commercial bills, for the regulation of discounts, for the providing of a gold supply to support at all times the credit of the Government, and for taking charge of the receipts and disbursements of the Treasury. We shall know in what way these matters are cared for by the new plan when the Owen-Glass bill is reported. For one thing, it does not provide for the guarantee of bank deposits, and upon that we must congratulate its authors. The natural fear will be that they have placed too much stress upon the currency supply, upon the mere issue of additional notes, which, while they may facilitate individual transactions, in no way enable the banks in times of stress to give ampler accommodation to borrowers. The safeguard against the recurrence of conditions like 1907, of course, is the provision, not of currency notes, but of reserve money, the building up of bank reserves that can be used as the basis of accommodation. Inasmuch as something like 90 per cent. of our business transactions are effected by the transfer of credits, it ought to be plain that the central feature of the reform plan should be the establishment of sufficient and available reserve, not the facilitating of the issue of Treasury notes.[*F*] [*93*] Secretary of the Treasury States that Mr. Glass has told him that it is most important that the President let him know quickly when he (the President) will invite the members of the House Currency Committee, individually or collectively, to see him. Gives reasons why prompt action should be taken. [*THE WHITE HOUSE JUNE 19 1913 RECEIVED*] Wednesday pm June 18. THE SECRETARY OF THE TREASURY Dear Mr. President, Mr. Glass has been here & says that it is most important that you let him know quickly when you will invite the members of the House Committee, individually or collectively, to see you. He thinks you had better send the incitation to the members direct & that in view of premature publications of the plan (which dismay him exceedingly) it becomes doubly important for you to act quickly, as you may [*60985*]THE SECRETARY OF THE TREASURY be able to dissipate a good deal of discontent with the alleged secrecy about what is being done. Will you kindly advise Mr. Glass direct. I also think it doubly important for you to see the House Committee promptly, if you have today conferred with the Senate Committee. Hastily, Faithfully yours W G McAdoo [*60986*]Secretary of the Treasury Encloses letter from Cleveland H. Dodge extending congratulations on the notion taken in regard to the Vreeland Currency Bill. 93 60987[93] THE SECRETARY OF THE TREASURY WASHINGTON JUNE 16, 1915. Dear Mr. President: here is a letter from our fine friend, Cleveland H. Dodge, which I thought you might like to read. Very sincerely yours, W. G. McAdoo the President, The White House. 60988[*93*] CLEVELAND H. DODGE NEW YORK 99 JOHN STREET June 17th, 1913. [*Ack 6-18-13*] The Honorable William G. McAdoo, Secretary of Treasury, Washington, D.C. My dear Mr.McAdoo: I have your good letter of June 16th with the enclosure, which I will at once hand to the gentleman named, as you request. It is needless to say that I appreciate very much your action in this matter, and I am sure that my friend will also. I meant to have written you last week to congratulate you on your action in regard to the Vreeland Currency Bill which had such a remarkable influence in restoring confidence. It was a fine thing to do, and the whole country benefitted by it. I wish I could help you bear some of your burdens in Washington, but you have already accomplished so much and have made such good progress with your Currency Bill that I can only stand by and admire. Hoping to see you soon again in New York, with warm regards, Very sincerely yours, C.H.Dodge I am awfully glad you had that talk ten days ago in NY. It did good all around [*60989*] June 10, 1913. My dear McAdoo: I am sincerely obliged to you for your letter of June 17th and for the enclosures. I have, indeed, been much interested in reading them. Faithfully yours, [*93*] Hon. W. G. McAdoo, Secretary of the Treasury. Enclosures. 60990Secretary of the Treasury Believes the President will be interested in the enclosures from James Speyer of New York, S.S. Fontaine of The World, and E.McC. Fisher of Baltimore - all commending the action of the administration as to Emergency Currency. [*#*] June 18, 1913 My dear Mr. Secretary: Thank you for having let me see the enclosed letter. It is both gratifying and interesting. Cordially yours, [*enc.*] Hon. William C. Redfield, Secretary of Commerce. [*60992*]THE WHITE HOUSE FILES. MEMORANDUM. [*93*] Writer: Horace H. Lee, Philadelphia Stock Exchange, Philadelphia, Pa. June 17, 1913 (Addressed to Secretary Redfield) Subject: The English Company's Act and currency legislation. [*#*] Referred to Secretary of Commerce. Date: June 18, 1913 [*60993*]June 19, 1913 [*[93]*] My dear Mr. Brown: The President is very desirous of conferring with the majority members of the House Committee on Banking and Currency at his office on Friday evening, June 20th, at eight o'clock, and would be pleased if you could arrange to be here at that hour. May I ask you to let me know by telephone whether or not you can be present? Sincerely yours, Secretary to the President Hon. Willian C. Brown, jr., House of Representatives. [*60994*] 93 [[shorthand]] 60995[*93*] THE WHITE HOUSE. WASHINGTON. House Comittee on Banking and Currency: ✓ Carter Glass, Chairman yes Charles A. Korbly yes William C. Brown, jr. yes Robert J. Bulkley yes George A. Neeley yes Thomas C. Patten - will arrive W. 5 this eve yes Claudius U. Stone yes Michael F. Phelan yes Joe H Eagle Otis T. Wingo - uncertain + H. H. Seldomridge (in Panama) yes Emmett Wilson yes Claude Weaver yes J. Willard Ragsdale Everis A. Hayes Frank E. Guernsey James F. Burke Frank P. Woods Edmund Platt George R. Smith Charles A. Lindbergh [*60996*] Secretary of the Treasury Encloses letter from J. H. O'Neil, President of the Federal Trust Company of Boston, a former Member of Congress and a long time Democrat. Mr. O'Neil highly commends the Secretary on currency relief proposal. [*60997*] [*[93]*] [*THE WHITE HOUSE JUN 20 1913 RECEIVED*] THE SECRETARY OF THE TREASURY WASHINGTON [*ackgd 6/20/13*] Juen 19, 1913. Dear Mr. President: The enclosed from the President of the Federal Trust Company of Boston, a former Member of Congress, and a long time Democrat, may interest you. Sincerely yours W G McAdoo The President The White House. [*60998*][*93*] AMERICAN BANK NOTE CO. BOSTON LITHO. FEDERAL TRUST COMPANY BOSTON 1899 CABLE ADDRESS. "FEDTRUST, BOSTON" JOSEPH h. O'NEIL, President. JAMES W. KENNEY, Vice President. JOHN C. HEYER, Vice President. CAPITAL $1,000,000. SAMUEL A. MERRILL, Treasurer. DAVID BATES, Actuary. FEDERAL TRUST COMPANY BOSTON, MASS. [*Ack 6/19/13 9*] [*OFFICE OF PRIVATE SECRETARY TO SECRETARY OF THE TREASURY 1913 JUN 19 2 35*] My dear Mr. Secretary You called their hand all right, for they were playing politics in my judgment and you can have them eating out of your hand from now on. Enclose clipping from across the border which shows they know what they are trying to do to us [*notified*] Keep them on their knees Yours truly J H O'Neil [*35 ✓ 35 ✓ 40 ✓ 64 ✓ ------ 174*] Hon Wm G. McAdoo Secretary of the Treasury [*60999*][*[93*] June 19, 1918 My dear McAdoo: Thank you sincerely for your letter of June 18th and for your kindness in sending me its enclosure from Mr. Dodge. What he says is interesting and encouraging. Faithfully yours, Hon. W. G. McAdoo, Secretary of the Treasury. Enclosure. [*61000*][93] June 19, 1913. My dear McAdoo: Here is a letter from Senator Owen enclosing one from Mr. Untomayor. Faithfully yours, Hon. W. G. McAdoo, Secretary of the Treasury. Enclosure. 61001 June 19, 1913. My dear Senator: Thank you very much for your letter of June 17th and for its enclosure, both of which I have read with interest. I shall bring the matter to the attention of the Secretary of the Treasury. Cordially and sincerely yours, Hon. Robert L. Owen, [*93*] United States Senate. 61002 [*[93*] THE WHITE HOUSE FILES. MEMORANDUM. Writer: Owen, Senator Robert L. Subject: Encloses letter from Samel Untermyer, stating that he intends sailing on the 25th and suggesting that he take with him unofficially the various tentative proposals for legislation and discuss them with the leading financial authorities of England, France and Germany and make a written report, which would point out the elements of strength and weakness in each of the plans. Referred to Sec. Treas. Date: June 19, 1913. [*61003*]61004 93 Senator Owen. Enclosing letter from Hon. Samuel Untermyer, who states that there is not the urgent need for currency legislation that was anticipated, owing, to the marked diminution in the volume of business during the past few weeks. He believes that what is now required is more free capital, by compelling the men in control of the large banks and trust companies in the larger cities to keep their assets liquid. Mr. Untermyer intends sailing on the 25th and suggests that he take with him unofficially the various tentative proposals for legislation and discuss them with the leading financial authorities of England, France and Germany and make a written report, which would point out the elements of strength and weakness in each of the plans.[[shorthand]]June 20, 1913. My dear McAdoo: I am obliged to you for your letter of June 19th and for your kindness in sending me the enclosure from Mr. O'Neil. Faithfully yours, Hon. W. G. McAdoo, Secretary of the Treasury. 93 Hon. Franklin MacVeagh, [* ACK'D JUN 29 1913 T. M. H.*] Dublin, N. H. States [to the President] that Mr. Ira Nelson Morris has not been in the packing-house business since the death of his father, eight years ago. Expresses satisfaction at the President's full appreciation of the importance of banking and currency legislation at this session of Congress. This legislation has long been overdue and no further time should be lost. [*61006*][*[93]*] [*THE WHITE HOUSE JUN 29 1913 RECEIVED*] STATION - HARRISVILLE KNOLLWOOD DUBLIN NEW HAMPSHIRE June 20th 1913 [*ACK'D JUN 23 1913 T.M.H.*] Dear Mr. President, I have been asked, as a Chicago man, to state to you that Mr Ira Nelson Morris has not been in the packing-house business since the death of his father some eight years ago. The significance attached to this fact, I presume, lies in this: that Mr Morris was not involved in the suits the Government brought against the packers. There being abundant sources within your own party from which this information could reach you I am perhaps taking up your time needlessly Permit me, turning to another [*61007*]subject, to express satisfaction at your full appreciation of the importance of banking and currency legislation at this session of Congress. This legislation is long - very long - overdue; and no further time should be lost and no further chances taken. I do not know definitely, of course, what the new bill will contain; but if the reform proposed shall be right as far - as it is confidently expected to be - as it goes I shall not quarrel because it doesn't go as far as I may think it will have to in the end. Very sincerely, Franklin MacNeagh to The President WashingtonSECRETARY OF THE TREASURY, June 21, 1913. Incloses telegram from J. H. Tregoe, of the National Association of Credit Men, in regard to Currency Refrom, together with his proposed reply asking if the President has any objection to his sending it. See 41 [*93*] [*61008*] THE WHITE HOUSE JUN 21 1913 RECEIVED THE SECRETARY OF THE TREASURY WASHINGTON 93 File Dear Mr. President; Thank you for letting me see Senator Owen's letter of the 17th, together with Mr. Untermeyer's letter of the 13th, which I have read. I quite agree with you about the matter. Sincerely yours, McAdoo The President, The White House. 61009 [*93*] ROBERT L. OWEN, OKLA., CHAIRMAN. GILBERT M. HITCHCOCK, NEBR. JAMES A. O'GORMAN, N.Y. JAMES A. REED, MO. ATLEE POMERENE, OHIO. JOHN F. SHAFROTH, COLO. HENRY F. HOLLIS, N.H. KNUTE NELSON, MINN. JOSEPH L. BRISTOW, KANS. COE I. CRAWFORD, S.DAK. GEORGE P. MCLEAN, CONN. JOHN W. WEEKS, MASS. JAMES W. BELLER, CLERK. UNITED STATES SENATE. COMMITTEE ON BANKING AND CURRENCY. [*THE WHITE HOUSE, JUN 19 1913 RECEIVED*] [*Ackgd 6/19/13*] June 17, 1913. The President, The White House, Washington, D.C. Sir: I enclose an interesting letter from Hon. Samuel Untermyer, for your consideration. I have great respect for Mr. Untermyer, believing in his patriotism and in his extraordinary abilities. If you care to use his services in any way, I should be glad to convey that suggestion to him. Yours, very respectfully, Robert Owen Encl. VWL [*61010*] [*[93]*] GUGGENHEIMER, UNTERMYER & MARSHALL No. 37 WALL STREET, New York CABLE ADDRESS "MELPOMENE" NEW YORK June 13th, 1913. Hon. Robert L. Owen, Chairman, Committee on Banking and Currency, United States Senate, Washington, D. C. My dear Senator: The Washington dispatches foreshadow the postponement of Currency Legislation until the regular session. Whilst immediate relief is desirable there has been such a marked diminution in the volume of business during the past few weeks with the prospects of a continuance of that condition, that there is not the urgent need for immediate legislation that was anticipated. What we really require at the moment is more free capital rather than a larger circulating medium. If the banking laws were amended so as to compel the two dozen or more great banks and trust companies in New York, Boston, Chicago, and Philadelphia that are under the domination of a few men in New York to keep their assets liquid and subject to the uses for which they were organized, instead of being made the dumping ground for unmarketable securities, we should not be in this situation. The "security-kiting" of high finance has done much to bring us to our present plight and one of the primary purposes of banking and currency reform should be to relegate our banking institutions to their legitimate functions. However, that is a long story and a little aside from the object of this letter. 61011Hon. R. O. - 2. It would be far wiser to postpone Currency Reform until a comprehensive system can be perfected than to put through a hastily-conceived and immature Bill. You have an opportunity now with the experience of other nations before you, to inaugurate a system that will avoid the mistakes of other countries and that will be an object-lesson to the world. It seems a pity to throw away that opportunity. On the assumption that the introduction of the necessary Bills with the Administration approval will await the regular session and that meantime they will be perfected I have the following suggestion to offer for the consideration of the President, Secretary McAdoo and yourself: I am expecting to sail on the 25th, to be gone until the end of August, unless it is believed that I can be of aid by remaining here. In that event I will of course remain, although I cannot conceive of any conditions under which my assistance would be of sufficient moment to require my presence. My suggestion is that I take with me unofficially the various tentative proposals for legislation and discuss them with the leading financial authorities of England, France and Germany and make a written report, based on such investigation, which would point out the elements of strength and weakness in each of the plans under consideration. In that way many of the pitfalls may be avoided that are otherwise likely to be encountered in dealing with this delicate and technical subject. I have become convinced that we should have a Government Currency rather than a bank-note currency. Candor should, however, compel us to admit that we in this country are densely ignorant of everything that 61012 Hon. R. I. O. - 3. pertains to scientific banking. Our supposed bankers are mainly successful promotors, speculators, bond salesmen, money lenders and not a few of them "market-riggers". The performances of the past thirty days on the Stock Exchange ought to satisfy us that they are not students of finance. There are only two or three men on this side who are thoroughly grounded in legitimate banking and they are perhaps unconsciously so obsessed by prejudice, tradition or self-interest that their judgements are unreliable. No scheme of legislation will answer the purpose of modern conditions that does not adequately provide a free discount market and for dealings in foreign and domestic drafts and bills of exchange. It is absurd that the commerce of this great country should be paying tribute to Euro[e on its transactions with foreign countries. We are the laughing-stock of this world on that subject. It is no answer to my suggestion to say that the Monetary Commission Report deals ably and exhaustively (as it does) with the European banking system. With these proposed bills, before you the purpose should be to ascertain and exhaust all objections that may be presented from the foreign point of view. that will enable us, you, to determine their validity. After all, the strength of whatever plan is finally adopted will be measured by the degree of confidence it inspires abroad as well as at home. I have perhaps peculiar facilities for gathering the proposed views and information, at least in England and Germany, by reason of extensive 61013Hon. R. L. O. - 4. professional relations with banking interests in those countries extending over the past twenty-five years. It may, however, be necessary to invoke the cooperation of our diplomatic representatives so as to secure prompt access to government officials. Thus equipped, Congress should now be able to construct the soundest and most comprehensive banking and currency system in the world, for we have the largest resources and credit if we only knew how to utilize them instead of continuing to fritter them away. Apropos of our frequent discussions on this subject, I would also be willing, if so desired, to draft during the vacation a revision of the banking law and a Bill for the incorporation of Clearing House Associations, both of which will be necessary factors in any adequate plan of banking and currency legislation. If these suggestions appeal to you and to the President and Secretary McAdoo—(if you conclude that it is worthwhile to submit them)—I will be pleased to hear from you promptly, as my tentative sailing date is near at hand. With kind regards, believe me, Sincerely yours, Sam [Gluberry?] Es [*THE LIBRARY OF CONGRESS*] Col. House, who is now on the other side, has studied this question & is deeply interested in it If his co-operation in this suggestion above outlined could be secured it would be of great value in securing a disinterested opinion from foreign experts. I would gladly act with him. [*61014*]Joe T. Robinson, Ark., Chairman. John Walter Smith, MD. Luke Lea, Tenn. Theodore E. Burton, Ohio. John D. Works, Cal. Ross Williams, Ark., Clerk. United States Senate, COMMITTEE ON EXPENDITURES IN THE TREASURY DEPARTMENT. {THE WHITE HOUSE Jun 2 2 1913} RECEIVED} June 21, 1913. (?/23/13) To the President, White House, Washington, D.C. Mr. President: Newspaper reports of dissensions among Democrats concerning the proposed amendment to our Banking and Currency Laws, are unquestionably exag[g]erated. Some rivalries and jealousies have very naturally arisen. Moreover, Members of Congress have learned to approach this subject with suspicion and caution. A strong current of opinion, daily gathering volume, is running through the minds of Members, both of the House and of the Senate,