1170.0 Correspondence with Switzerland -- Officers of the ... · r BANQUE NATIONALE SUISSI 71...

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BANQUE NATIONALE SUISSI

71 kOklifget

PAM 192.1

MERU litSERVIBiirt April 19, 1923.

e

Benj. Strong, Esq.,President, Federal Reserve 3ank,

New York, N. Y.

Dear Mister Governor:

I took the liberty to cable you to-day as follows:

"As you know Swiss Franc continues weak. Suppose that expectation of credit"of 100 millions promised by Swiss banks to Reichsbank on gold deposited here"stimulates buying in advance foreign exchange. I fear this will increase"weakness of Franc and study how to avoid it. Could you eventually advance"us whole or part of said amount under form and conditions to be agreed or"would issue of short Swiss Treasury Bills in New York be possible. Please"consider this as nuite private and confidential as well as I do. Schnyder."

Since a certain time the Swiss franc is rather weak. As the

general economic situation in Switzerland shows rather a tendency to improve

there must be certain special reasons for this fact. Germany cams to

liquidate to a considerable amount Swiss investments in order to buy Pounds

and Dollars which she needs for payment of coal and other materials. Besides that,

the very low rate of interest in Switzerland leads the Swiss banks to keep

considerable amounts in foreign exchange and capitalists are rather inclined to

invest in foreign securities. As you may know the Imperial Bank of Germany has

deposited 100 millions of Gold-marks in Switzerland which will serve as collateral

for credits promised by Swiss banks. Now I am afraid this operation may account

very much for the weakness of the Swiss franc as our banks may be inclined toaccumulate foreign exchange which will have to be bought for Germany. They

have a certain interest to keep down our franc till the equivalent of the credit

has been handed over to Germany. We, as Central Bank, should try to counteract

as much as possible those oscillations and I am studying personally and privately

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

- 2 -

how it could be done. Therefore I telegraphed to you thinking it might be

possible to get credits in America up to about the same amount as the above

operation; this would allow us to give out such quantities of foreign ex_

change as may be needed.

Do you think you could enter eventually in discussion of granting

such a credit; or, in case this would not suit either party, Gould we place

in New York treasury bonds on short term or treasury bills on reasonable con-

ditions? I would very much like to know your views on this point. Of course,

I should consider your answer as an absolutely private and personal opinion,

as I beg you to consider this letter as private and confidential. I have net

yet discussed the question with my colleagues, and my further attitude will

depend much upon your.anewer.

I am thanking you very much in advance for a communication of your

views on the matter. The cuestion is one of the Tost interesting from the

point of view of the Central Banks and I feel one of the most important for

cooperation between them.

Believe me, dear Mister Governor, yours very truly,

Benj. Strong, Eso.,

President of the Federal Reserve Bank,

New York.

(Signed) Chas. Schnyder de Wartensee.


TaLL:::LAT10:. CABLMFICT

Berne,Latod April 18, 1923.Rocyd April 19, 1923.

Governor Strong,

Federal Reserve Bank,

Now York, Y.

As you know Swiss francs continue weak,iurpose t'-at expectation of

credit of 100,000,000 promised by Swiss Bank to Reidhsbank on ,7vld deposited

here stimulites buying- in advance foreisa exchanr!e,/ fear this will increase

weakness in francs end study how to avoid it.6ould you eventually advance us

,.,'hole or pnrt of said amount under forms and conditions to be a7reed to or

would issue of short Swiss Treasurz/ bills in New Tbr;c be rossible rlone

consider this as quite privete and confidential as well as i do.

Schnydorwiss National Bank.


2113:3101107. 07 CAT=L7GRX.7

BerneDated April 19, 1923.Reced April 19, 1923.

Governor Strong,

2eder-A. Reserve Bank,

Ne\s York, N. Y.

Reichsbank telegraph that credit Swiss P-nrik not to be used over

20,000,000 your answer valuable

SohnyderSwi ss National 13 31k.


April ZC, 19r3.

Schnyder, wise NAional oa.nk, berne.

'Implying your cable April 18th we believe your problem more radily met

by sale Lore or Treasury bills which we believe could now be sold in reasonable amounts

on favorable terms,. If desired would gladly discuss latter with issuing bankers

here. Tour alternative suggestion of advance from us involves ciuestion of General

2olicy not yet considered in devoloeing our relations with foreill banks of issue

and which Aould meuire discussicn with Federd Roserve Board in Washington and other

Federal reserve banks. As this, mi6ht delay decit:ion unduly suggest sale Treasury

bills posteoniug rluestion of advance for present..


TRANSLATION OF CABLEGRAM

Governor strong:

Federal Reserve Bank,

New York, N. Y.

Borne,

Redd April 21, 1923Sent Anr.21, 1923

Many thanks for your telegram #12. ..;uestion no more urcent have

presently sufficient dollar bills your personal advice will be

usofUl for future

swiss National Bank

sohnyder


FEDERAL RESERVE BANKYORK

Translation of Incoming

CABLEGRAM--

-46From4,-M

677-3Date

101, -T -t.-

No. C-

TRANSLAT 1014 4F CAB L 7GBAM

Berne

.lay 1, 1923.

Governor Strong,

Federal Reserve Batik,

New York, N. Y.

Issue of 120,000,000 4 percent Swiss zedaral ',ail raj Loan closed

yesterday has been fully subscribed..

SclmyderPules National Bank.


:Jay 2, 1923.

PRIVATE. AICI) CaNFIraTIAL

ir. Cnas. $cnnyder de .Vartensee,

Vice-President, Banque Nationale Suisse,Berne, Switzerland.

y dear ;.1r. Vice-President:

Your letter of April 19 has been received in Governor Strong's absence

from the bank as was your confidential cable of the same date to which I under-

took to make reply. .1 shoulu like to explain somewhat more fully than was feasible

144.40,in ka cabled reply of April 20 fig/ views in regard to the questions which you raise,

although I understand from your subsequent cable that your inquiry is no longer

urgent and that you will have presently sufficient dollar bills for your neeas.

Furthermore, I have observed that during the latter part of April there was some

improvement in your exchange.

m/vAs stated in tw cable, I feel certain that you would be able to dis-

pose of a reasonaule amount of your Treasury bills in this market on favorable terms

as your Government enjoys very high credit here. I BPI unable to give you more

definite information as to the exact terms on which your bills could be sold without

discussing the matter with issuing bankers here which I do not understand you desire

lost to do at this time. Should you care to have ing do so at any time in the future,

please do not hesitate to call upon !As.

It seernea desirable to suggest in cable to you the sale of Treas-

ury bills rather than the alternative proposition of a loan from this bank. As you

know, our relations with foreign banks have been somewhat limited to date and have

not involveu loans to our foreign correspondents. Consequently there has been no

occasion for formal consideration of that question and the adoption of a general

policy, so that you will appreciate that your sugrestions could not be passed upon


I -2-

hurriedly and without reference to the Federal Reserve Board. Jur operations

in foreign matters are strictly limited by the provisions of the Federal Reserve

Act ma must be approved in principle by the Federal Reserve Board. I might say

for your private information that I am personally of the opinion, and I think

Governor Strong feels the same way, that we should be prepared to make temporary

advances in reasonable amount s to our fo re ign corresi)ondent s against the security

of gold for the purpose of assisting in tne stabilization of exchange. However,

I have not discussed this question with iry associates, nor has it been presented

to our directors and tne Federal Reserve 3oard , and the ftture policy of this bank

would, of course, be dependent upon their attitude. As you mentioned in your

letter, the question is one of t he most interesting and important in the relations

between central banks and I have no doubt that it would be discussed at any con-

ference of central banks vhich might be held in the future.

I trust that my views will be of some assistance to you, and with

assurances of my esteem, I beg to remain

Very t rulj your s ,

J. H. CA3E,Deputy Governor.


COPY

May 18 , 1923.

;141-. Charles schnyder de Wartensee,Vice President, Swiss National Bank,

Berne, Switzerland.

Ay dear Vice President:

In Governor Strong's absence I beg to acknowledge receipt of your letter

of May 1, in which I have been interested in reading your comments on investment con-

ditions in your country. Although we keep in close touch with the investment market

here, our only active participation in it is through transactions in Government se-

curities and bills. As you know, the Federal reserve beaks are the fiscal agents

of the United States and as such handle the flotation of United States Treasury se-

curities. we have just closed the subscription books for an offering of .;400,000,000.

(or thereabouts) of 4 3/45 Treasury notes dated May 15, 1923, and maturing ]arch 15,

1S27. This offering, which was heavily oversubscribed, is the final step in the re-

funaing of the 44,500,000,000. Victory Liberty Loan issued in May, 1919, and leaves

the Treasury in a very comfortable position. As to the floating debt, all outstanding

Treasury certificates and notes fall due on quarterly tax dates, while the next matur-

ity of Government bonds is the Third Liberty Loan 4 1/4s which are payable on September

15, 1928, ana of which there are a little over 43 ,000 ,000 , 000 . outstanding. (A memo-

randum showing the maturities of this short dated debt is enclosed for your information.)

You have probably observed that there are indications of some slackening of

business nere during the past few weeks , and the pace does not seem to be as rapid as

it was in Laren and April, particularly in the matter of forward buying, wnich has

slowed up considerably. This is undoubtedly a healthy sign but it is not expected to

affect materially tne volume of production, distribution and consumption. The

recent suspension of a number of large new building projects is particularly note-


r. -2- M. Charles Schnyder de Wartensee. 5/18/23.

worthy and has been brought about by rapidly advancing costs of construct ion. The

stock market broke sharply at the beginning of last week, rallied, and at the end of

the week was again so ft. as to money, the tendency towards firmer rat es , which was

in evidence during March, abated somewhat last month and the trend temporarily at least

seems to be toward greater ease. Similarly with bank credit , the increasing volume

of loans by member banks for commercial purposes during March, which was accompanied

by a rectuct ion in their investment holdings, has been followed by a mare moderate ex-

pansion in such loans. It is spparent that since the middle o f March the demand for

credit for commercial purposes has distinctly moderated. These changes in the loan

accounts of our leading member balks have been alrrost without reflection in the Federal

reserve becks' figures. Imports of gold and liquidation of investment holdings have

enabled member banks to meet the credit demands of their customers without recourse

to the reserve banks. In connection with all this, however, it should not be over-

looked that there has recently been a substantial increase in wages and if things

follow their usual course, it should mean higher commodity prices, particularly in

retail markets. Usually this in turn is translated into increased demands for credit,

so that the future has some interesting potential possibilities.

With renewed assurances of my esteem, aelieve me ,

Very- truly yours,

J. H. CA3E,Deputy Governor.

Enc.

JEC/CEP


COPY

May 22, 1923.

Charles Schnyder de 1artensee,Vice President, Banque Nat ionale Suisse,

dear Vice i-;resident:

I believe you are ware that Governor Strong has been way from the bank

for some time on account of illness, and he has asked 713 to explain to you how sorry

he is to be mable to reply to your very interesting letters. tl severe cold contract-

ed during the winter settled in his throat resulting in chronic laryngitis and neces-

sitated a corullete rest anti ciaaige of climate. He has been unable to use his voice

for several asaths, and although his recovery is progressing satisfactorily, he will

not be able to resume work at the bank until next autwxi. In view of these circum-

stances, you will appreciate that .1'. Strong has been unable to carry on his corres-

pondence. He has asked rye to explain this to you so that you will understand his

recent silence ana to assure you that he greatly enjoys your letters and sincerely

nopes that you will continue to write him as you have been kind enough to 10 in the

past. Mr. Strong is also anxious that I shall say to you that he is delighted to

learn that you nave accepted the position of "Conseiller Finuezder" of the h,.ustrian

National Hank.

should you desire to write me privately during Mr. Strong's absence

concerning colt it ions in your country or any of your problems in connection with the

Swiss National Bank or the Austrian liational Bank, i shall be 1,ost pleaseu to hear

from you.

J :

With assurances of my esteem, believe !,,e,

Very truly yours,

J. H. CASE,Deputy Governor.


Rotel du Palais,Biarritz, France,August 5, 1925.

My dear Sir:

One of the objects of my visit to Europe this year wasto become personally acquainted with the officers of those bankswith which the Federal Reserve Bank of New York has relations, and Ihad hoped and expected to visit Berne in order that T might have the

pleasure of meeting you.

But I have also made the trip in order to have a restand holiday with my daughter, who accompanies me, and our time mayprove to be a little short to make the trip.

I am, therefore, writing to inquire if you will begood enough to advise me whether you are planning to be in Berneduring the month of August in case I should find it possible to!rake the trip from Paris. Alec, whether there is any possibilityof your being either in Paris or London at any time during Augustor the early part of September, as that indeed would permit me to

have the pleasure of a meeting and save the time of the trip.

There seem to be many matters which it would be profit-able for us to discuss if a meeting can be arranged, and I begthat you will not hesitate to advise me quite frankly of your wishes.

I now plan to be in Paris by about the fifteenth of Augustand to ra'nain there until at least the twenty-fifth, - poseJbly a lit-

tle longer.

With assurances of my best regards, I bog to remain

Very truly yours,

Ions eu r Bachmann,President, Banque Nationale Suisse,Berne, Switzerland.


'Indications de service.

REri.iBLIQUZ FLAN(.:AISE TELEGREJAIVAL

PR -S'ilIENT BENJAMIN s Tfi.o (4tr E ,

MALIE C PA fee3:st

in

Cho: Wet! soutuic h auenne, recponcohilih, a raicon du srrvice de la corregpondance priree par to you111C li;biyirphiqur. , Lui du nu nmembre 185o, art. 6.)

r.. ISMIDUEDEMOTE.. DATA. Ut.

DI DEPOT.

ZUERICH 53034 31 17° 16125:

HOTELACCOMODATI.ONS ARRANFE0 FOR FUIDAY MORNING AT BALE

EUrFR NEAR STATION MEETING tITH PRESIDENCY AN') IIRECT,OR

FOUR THIRTY AFTERNOON AT OUR PANKRUILDING BACHMWN

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Timbrea date.

Ir. Le toctedicharr+4tet

IIIENTiONS DC SE

0


IIVNQUE NATIONALE SUISSEc!!!, .

LE PRESIDENT DE LADIRECTION GENERALE

Monsieur,

29-10-avat 1S25.

ale-k

Je reQoie vos estimees lignes du5 crt. qui m'ont ete alreasees par notresiege de Berne, attendu que ma residencese trcuve Z1 Zurich et non e. Ferne.

C'est avec plat sir que j'apprendsque vous me ferez l'honneur dune visite,qui sera soyez-en certain la tienvenue. LePresident de notre Conseil de banque, Mon-sieur le Dr. Usteri, serait aussi fort heu-reux de faire votre connaissance. Nous se-rions volontiers a votre disposition lasemaine pr9chaine as Zurich ou si cela pou-vait vcua etre utile pour abre7er le trajet,nous pcurrions vcua rencontrer e, Bale ousi vous le preferiez a Berne. Toutefois itne me serait pas possible de m'atsenter deZurich lee 18 et 30 aout, jours je suisretenu par des seances, main si vous desi-riez venir s Zurich l'un de ces deux jours,je m'arrangeraia volontiers pour vous vcir.Malheureusement, je ne prevois aucune oc-casion de me rendre a Paris ou a Londresces prochains mole.

Pespere toutefois vivement quenous pourrons arranger une entrevue enSuisse et au plaisir de vcua lire, je vousprie d'agreer, Monsieur, l'expresaion demes sentiments bien distinmies.

Monsieur B. Strong, Presidentde la Federal Reserve Bank

ofjrew-York,pr.adr.Hotel du Palais,

Biarritz (France)Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

OANQUE NATIONALE SUISSE


Monsieur,

ACIONOVVIAELWEAD

SEP 26 1925

Faisant suite a mea limes du 10 crt

je vous informe que M. le Pr. Jsteri ne sera

pas Libre jeuli le 20 aolat et vendreli le

21 meme mois. Si pourtant l'un de ce3 deux

fours vous convenait le mieux pour une ren-

contre, le suanomml s'arranzerait pour litre

votre disposition. Ii vous serait recon-

naissant de nous aviser assez tot si vous

choississiez l'une des dates prdcit4es.

Fans l'attente de vos ncuvelles,

Je vous prie d'agreer, Monsieur, l' expression

de mes sentiments bien distingus.

9.

Monsieur 7. .Ttrong, Presidentde la Feleral Reserve Bank

of New-York,pr.alr.Fatel du Palais,

Eiarritz (France)


Banque Nationale Suisse

The President of the General Directory

Zurich, August 13, 1925.alw

Si r:

Following my letter of the 10th inst., Iinform you that Dr. Usteri will not be free Thursday,August 20, and Friday August 21. If, however,one of these two days would suit you better for ameeting, the undersigned would arrange matters so asto be at your disposal. He would bygrateful toyou if you would notify us pretty 59 whether youhave chosen one of the dates aforesaid.

In expectation of hearing frorricti;.,1 begyou, sir, to accept the expression of m"vOty:,Clistin-guished regards.

(Signed) G. Bachmann

Mr. B. Strong,President of the i'ederal Reserve Bank of Aew York,

present address hotel du Palais,Bi arri tz France.

cud A9.0..(luz4 s--tk cil -71/


Motel galactic,Paris, France,August 14, 1925.

My dear Monsieur Bachmann:

Your kind note of August 10 reached me just as I wasleaving Biarritz for Paris, and I am sorry to learn by it thatit was incorrectly addressed to Berne.

Considering the possibility of your being engaged atZurich from the eighteenth to the twentieth, I am now writing topropose that I go either to Bale or Berne, as may beet suit yourconvenience, to spend Friday, August 21. I shall be accompaniedby my colleague, Dr. Walter W. Stewart.

If this plan quite meets your own convenience, we shalltake the night train from Paris, arriving early Friday morning, andplan to spend Friday night, returning by the day train on Saturday.

Might I ask the courtesy of your secretary to arrangefor hotel accommodations and myself,compartment on the fast train to Paris on Saturday.

It will be a great pleasure to have this visit with you,and while my stay must necessarily be short, I am hoping that wemay at least have one day, and possibly that evening together, withmutual benefit.

Unfortunately neither Dr. Stewart nor I speak French,and we are obliged to rely upon your courtesy either to use theEnglish language, or to have someone who can favor us withinterpretation.

With assurances of my esceem, I beg to remain, briarMonsieur Bachmann,

Very sincerely yours,

Monsieur G. Bachmann,President of the Direction General,National Bank of Switzerland,Zurich.

P.S. Might I ask the favor of a teletraphic reply to the aboveaddress?


ON?UE NATIONALE SUISSE


Zite4 .1 th Au-u.st. 19Z5

Yy dear Sir,

In reply to your kind letter of

the 14th inst. I w:.re3 you as follows:

"Fotelaccomodations arransd for Fridayucrning at Bale Hotel ruler near station:,:eeting with presidency and directoriumat four thirty afternoon at our bank-buildins".

Our representative in Basle, 7r

Hunsp,erzer, will meet you at the hotel.

For the meeting in the afternoon, pre-

sident of the Bankboard, Dr. Paul Usteri,

and the vice-president, Dr. Alfred Sarasin,

as aell as the three mmters of the direc-

tcrium will be present. All these gentlemen

will have the pleasure to spend the evening

with you and your colleague, rr.Stewart.

With assurance of my esteem, I beg

to remain, Dear Sir,

Yr.Eenj.Strong,7residentof the Fsderal ile6erveBank of New York

Ebtel Va.,;estic, Paris

very truly yours


Au,. 18, 1925.

Monsieur G. Bachmann

Banque Nationale Suisse ZURICH

Many thanks telegram just received Taking night trnin Thursday and arriveBale Friday morning

Benj. Strong


a

'September 26, 1925.

My dear Mr. President:

Only today have I received your kind note of August 13, which

unfortunately reached Biarritz alter I had left, and hes therefore followed

me to Paris, London and linelly to New YorX.

Lest you limy have felt me to be discourteous in not answering

you more promptly, I write at once to explain, of eouree, the deley and to

beg your indulgence.

The meeting with you and your seeocites in Belo MS moat inter-

eeting ane helpful, and we earnestly hope that the relations of our inetitu-

tions may be of growing value to you, and that you will not hesitete to

comane us in connection with setters sphere c can te of service in New York.

With cordial regards to you end your essocietes, I beg to remain,

Faithfully yours,

Monsieur G. Bachmann,Banque Nationale Suisse,Zurich, Switzerland.

BS. LE,


Hotel Chatham,Paris, May 17, 1926.

Dear "r. Bachmann:

4y visit to Furope this year will be considerably devoted to

a rest, which I much need, but T can hoping neverthelesc, tc visit Switzer-

land and again have the pleasure of seeing you and your anecciates.

Dr. Stewert was not En- to accompnny ne this year, tut T. have

with me tor. Robert B Warren of our office, who is retraining in Paris

while I am taking a holiday, and it may be that ho will wish to call on

you, se he is plonning a visit to Switzerland.

ter. Warren would like to acquaint himself somewhat with conditions

in Switzerland and with benleing methods generally. 'le is acquainted with

the details of our businesc relations, and you may talk with him quite

freely. T have given him a note of introduction addreoted to you, and he

will advice you 3n edvemce of hie call. Anything that you are able to do

to facilitate the object of his visit will ho very greatly c.pprociated.

With kindest regards, believe me

Sincerely yours,

Mr. G. Bachmann,Banque Nationale Suisne,Zurich, Switzerland.


C 0 P Y (Original sent to Mr. Warren)

BANQUE NATIONALE SUISSELe President do la Direction Generale

Zurich, May 20, 1926

Dear Mr. Strong:

I am very glad to learn from your letter of May 17th that there

may be the possibility of meeting you in the near future, and I earnestly

hope you will be able to set apart a few days for 8 visit in Switzerland.

We shall also be glad to make the acquaintance of Mr. Warren, and

I need not say that we are quite at his disposal, if we can be of any use to

him, either in Zurich, or in Berne.

Now this is to let you know that I shall probably be in London on

or about June 7th, so that I shall be happy to meet you there, in case you

could not realize your plan of coming to Switzerland. Please let me know

as soon as you can where and when I shall be able to meet you, which I am

very much locking forward to.

Believe me, dear Mr. Strong,

Yours sincerely

(sgd) G. Bachmann.


S

ohhotel du Cc.p d'Antibes,Antibes, Juno 11, 1926.

Dicer ;4r. Bachmann:

Many thanks for your kind note of =lay 20th, vhien has boon for-

uurdet: to me hero.

The date of my arrival in Switzerland Jo still rather uncertain,

but I shall give you ample notice in advance. In tho mek;.ntime, you may

receive a call from gr. *.;arren, .:ho is still in 1:.ris.

4.ith kindest rega.rds, ideliorb me

Sincerely yours,

Ur. G. Lachman, irecii.ko.nt,%now, Nationale Suisse,Zurich, Ziwitzeriann.


MCHWEIZERISCHE NATIONALBANK

PRASIDENTDES DIREKTORIUMS

ZURICH. DP 24 June 1926.

Dear Mr. Strong,

I have your lines of june 11 th and gladly

note that you will let me know as soon as the date of

your arrival in Switzerland has been fixed.

Meanwhile, I shall be glad to meet Mr.Warren,

if he chooses to come and see us, which I suppose he

has not been able to do up to this day.

Trusting soon to have the pleasure of meeting

you,

I beg to remain

Dear Mr. Strong

Mr.Benjamin Strong, Governor of theFederal Reserve Bank of New York

Hotel du Cap d'Antibea, Antibes.


OSCHWEIZERISCHE NATIONALBANK - BANQUE NATIONALE SUISSEBANCA NAZIONALE SVIZZERA

ZURICH - BERNEAARAU. BALE. GENEVE. LAUSANNE. LUCERNE. NEUCHATEL. ST-GALL

LA CHAUX-DE-FONDS. WINTERTHOURALTDORF. BELLINZOBB. COIRE. FRIBOURG. HERISAU. LIESTAL. LUGANO. BOHAFFHOUSR. SCHWYZ. SION. SOLEURE. WEIN:FELDER

DIRECTION GENERALEW G.

TELICORAMMES: DIRECTIONAL

Dear Sir,

ZURICH, August 11th 1926.

Mr. Benjamin STRONG, Governor

of the FEDERAL RESERVE BANK OF NEW YO:HK,

c/o. Hotel Euler,

BASLE

We take great pleasure in referring to the exchange of

cablegrams of which copies are enclosed in this letter.

Dr. BACHMANN, President of the Board of General Managers,

being absent in holidays this week, we forwarded him your communications

so that he might get in direct touch with you. 7e feel authorized to

express on his behalf our warmest thanks for your messages and to assure

you that he would be very pleased indeed to meet you at whatever place

and day you would choose next week, except Wednesday when on account

of a meeting of the Committee of the Bank he could only meet you in

the evening.

Complying with your wish we have been pleased to arrange

accoAdations for your party at Basle for Thursday evening.

In case you should wish to get any information or other

services of any kind, we are sure, Mr. SCHEUDE, Director of our

Basle Office, will be pleased to be at your disposal.

Believe us to be, Dear Sir,

ENCLOSU2ES.

Yours very truly,

Banque Nationale Suisse


BANQUE NATIONALE SUISSE

zumcB.LE 26th August 1926,LE PRESIDENT

DE LA DIRECTION GiCNERAILE

Dear Yr. Strong,

I beg to acknowledge receipt of your

telegram from Paris reading:

"just received notice that following telegram whichI Bent you from Evian August twenty second addressedbolder Taldhaus was undelivered insufficient addressquote very sorry am unable stop at Zurich but atillhope to see Professor Bruins in Berlin kindeet regardsunquote very sorry about delay".

I also received g copy of your cable from

Evian of the 22 d August addressed to polder ¶aldhaus

and informed Professor Eruine that you will probably

meet him in Berlin.

I very much regret that you are unable to

stop at Zurich and hope nevertheless that we shall have

the pleasure to see you in Zurich in a not too far future.

With best regards,

I remain,

Yours very sincer.

Le'

Mr. Benjamin Strong, Governor ofthe Federal Reserve Bank of New-York

Paris


Princess Notel,Paris, September 4, 1926.

Dear Mr. Bachmann:

I beg to acknowledge receipt of your letter of August 26th,

and note that you had informed Professor Bruins that I would probably meet

him in Berlin. Since then, however, my plans have been changed owing to

the necessity of my returning to New York sooner than I had expected, so

that it will not be possible for me to visit Berlin at all. I shall

probably sail for home on the 18th.

It is also a matter of regret to me that I have not been able to

visit Switzerland again during my present stay in Europe, as I enjoyed my

visit with you very much. Next time I shall certainly hope to come to

Zurich.

With kindest regards, believe me

Ur. G. Bachmann, President,Banque Nationale Suisse,ZURICH, Switzerland.

Yours very sincerely,


iripUE NATIONALE SUISSE


9 th. .Se.pt -1936 .

Dear "r. Strong,

On receipt of your

favour of September 4th I informed Pro-

fessor Bruins that it will not be possible

for you to visit Berlin at all. I regret

it very much for Professor Bruins, who

would have been so pleased to sae you.

With my beat wishee

for a hood sailing and my kindest regards,

I remain

Yours very sincerely

Mr.Benj. Strong, Governor ofthe Federal Reserve Sank of New-York,

Princess Hotel,Paris


Pth Augu.,t 31, 1927.

My dear Dr. Bachmann:

h,:,retotore I nave always plannei sa; visits ,broad during the

'Inner time, Dr. Miller W6:: unwillinE, that I should do eo this year, and he now

feels that it will be ob,airaole for we to avoid the taro most ECIrf.::e *inter

menthe, January and February, and spend it in come more favorable climatt.

I as, accordingly, planning to e ail on the Cont -: Liencamano on Jrnuery 4, spend

ing a few days at Gibraltar and then some seeks et Algeciras. After that, forpossibly t month, I ehall somewhere in the French hiviera for a holiday.

This early e.rivise of ay tentative plans ie in orat,r to express the hope that

P-onat; time during my ctt.y there it will be possible for we to h:.ve a visit from

you.

I am writing alec to Governor Uran, Dr. Schacht, Governor Moreau

and Dr. Viesering. I hope that neither you nor they will feel that I an taking

advente.,e of their kindnese in auegesting the e visits, nothing but health con-

siderations, in fact, leadints me to do eo.

Nith kindest rec-5-arde believe me,

thfully yours,

Dr. G. Bachmann,C/o &Ass NaLional Bank,Zurich, Switzerland.

BS/ RAH


1110 BANQUE NATIONALE SUISSEJM.

LE PRESIDENTDE LA DIRECTION OENERALE

ZURICH. L1; September 14, 1927.

Mr. Benjamin Strong, Governor of the

Federal Reserve Bank of New York,

NEW YORK

Dear Mr. Strong,

I received your kind letter of August 31

and hasten to thank you very sincerely for your communi-

cations. It gave me much pleasure to learn that I

probably shall have the opportunity of seeing you next

winter. I should be exceedingly glad indeed to meet you

during your stay in Europe and I am expecting your further

news regarding the place and the date suitable to you

for such a meeting, thinking that you intend to have

a meeting of all these gentlemen together for discuss-

ing the problem of gold values.

I have also to thank you very much for your

kindness of sending me the first part of the hearings

about stabilization. I am much interested in this matter

because even in our country the same question in nearly

every general meeting of the bank comes into discussion.

Also I would be glad to receive later on a second part

of these hearings.

With best wishes for your recovery and kindest

regards, I remain,rear Mr. Strong,

Yours very faithfully


September 2i, 19 27.

D < -ar Doctor Bachmann:

Your kind letter of September 14 has just roadhed me. I 1 z.d

to aewl you, under acpuratE Dover, the secona part of the he.rina, the

firer pert of which you have already received.

Au to my viEit to Europe next winter, eomc uncertt_inty hue arisen

ae to the date of my eLilin6 and it me be necessary to defer it for

month or two, but I shall certainly keep you informer: and send the earliest

possible advice of my sailing ae soon as it is definitely fixed.

With many thanks for your kind wiehea, which I most cordially

reciprocate, believe me, my dear Dr. Bachmann,

Faithfully yours,

Dr. G. Bachmann,Banque rationaleZurich, Switzerland.

ES/RitH


March 9, 192P.

My dear Mr. President:

Your letters of December 8 and 17 addressed to New York, and copy

of each sent to me at London, should have been answered long ago, had it not

been for my illness, of whioh you hare been advised. So much has transpire'

since the date when they were written that little comment is now possible.

Furthermore, I am still here at Atlantic City and very much out of touch with

affairs in New York. There hae been sufficient improvement in my condition,

however, to justify my returning to 14ew York this afternoon, and I hope grad-

ually, probably very gradually, to reeume attention to office matters, although

I shall spend very short hours at the bank.

I am principally writing now to tell you something of cat plane, which

have been so much disturbed by the trip to London and subsequent illness. While

it would be possible for me to leave now within a few weeks, re have a very im-

portant meeting late in April which I should attend without fail, end it seems

possible that Mr. Harrison may have to make a hurried trip to Europe in time

to be back tare by the 23rd of April. In view of ill of this And of the uneat-

isfectory weather which one is likely to encounter before NIF,y I shell probably

defer sailing until the first or second week in May, and then probably go

directly :io Paris, and from there, if my friends abroad are good enough to

accommodate ti.ei r pl ens somewhat to my disabilities, I might establish mycielf

at some comfortable place in Switzerland or even egsin on the Riviera, and have

tte pleasure of seeing them there.

Switzerland would be more convenient for visitors, but I confess to

such a fondness for the Mediterranean that I am strongly tempted again to jo to

Antibes.


2. s/e/za.

All of ehie explanation is simply to preface the hope that I may havea .good visit with you. There ere matters of importance which we abould be di e-

cussing, and I have in mind especially t1 rather Y:baormel end possibly danger-

ous problem of the a.dequacy of the World's gold reoervee 'nd possible effect

upon prices if they prove to be inadequate. These ,r.c: but two ne.:Itere in which

our interestv are mutual, nd there are many others which 1 ohould much like to

have the privilege of di ecuesing with you.

So, my deer Mr. President, I em sending you We fie e warning, end

hope that it might not be an unpleasant one.

With cordial regardo, And many thcnke for your letters aad your

patience in awaiting this explanation of the delayed reply, I be to remain,

Faithfully yours,

Dr. G. Fs. CI bill ann,

President, Swiss National Bank,Zurich, Stitzerl and.

?. L;. Mr. tro% returned to New Yorj last week, butgave no ,ttention to his null for a fee days, oc the .1- ove letter,dictated at Atlantic City, h.o been c,1t.yed in eetiling.

Secy. to Mr. Strong


411 SCHWEIZERISCHE NATIONALBANK

B/LS. PRAMIDENTDB8 DIREICTORIUM8

i-tivA;r 94+-zumen. DEN 20.Apri1 1928.

Herrn Benjamin Strong, Gouverneur

der Federal Reserve Bank,

N e w York.

Mein lieber Herr Gouverneur,

Ihre freundlichen Zeilen vom 8.Marz habe

ich richtig erhalten und mochte Ihnen heute, wo Sie

voraussichtlich bald die Reise nach Europa antreten

werden, noch zum Ausdruck bringer, wie sehr ich mich

darauf freue, Sie baldozu sehen. Ich werde morgen mit

Herrn Prasident Viesering in Luzern zusammen sein un-d

wir werden dabei zweifellos der Wochen gedenken, die

wir vor einem Jahr zuaammen in Atlantic City und in

New York verbrachten. Die Auseicht, dass Sie von Paris

aus die Schritte nach der Schweiz lenken werden, erfUllt

mich natUrlich mit besonderer Freude und Sie kdnnen ver-

sichert sein, dass ich alley tun werde, um Ihnen in

Locarno oder Lugano oder dann am Genfersee einen Ort

ausfindig zu machen, wo Sie rich bei mdgliOlst sildlichem

Klima wohl fizhlen kOnnen. Wenn ich in diesem Sinne etwas

fUr Sie vorkehren darf, bin ich gerne Ihree Tinkee ge-

wg.rtiL,t.

Mit Ihnen halte ich daftir, dass die Gold-

wahrungafragen in raechen Schritten zu einer Leung

drangen. In Frankreich wird die Stabilisierung nach


den Wahlen alsOoald in Angriff genommen werden. Eine

wichtige Frage wird dabei die eein, in welcher Wise

die Goldvorr &te in den Pienet dieser W8hrungssanierungen

geetellt werden kannen. Per Jahreebericht der Bank von

Italien ist in dieser Richtung besondere lehrreich. co

freue ich mich denn, bald mit Ihnen mUndlich Gelegen-

heit zu eolchen Erdrterungen zu finden.

it beaten CrUssen

Ihr ergebener


TRANSLATION (by 0.E.Moore) Zurich, April 20, 1928.Dear 'fr. Governor:

Your kind lines of March 8 have been duly received and, now that you

are probably about to undertake the trin to Europe, I wish again to tell you

how glad I should be to see you again. I shall meet President Vissering in

Lucerne tomorrow and we shall doubtless recall the weeks which we spent to-

gether in Atlantic City and in New York. The prospect that you will turn

your steps from Paris toward Switzerland naturally fills me with special

wpleasure and you may rest assured that I will do whatever I can to

find you a place at Locarno or Lugano or on Lake Geneva where you can be

comfortable in a southern climate. If I can do anything along these lines

for you, I shall be glad to receive your suggestions.

I am of the opinion, as you are, that the gold standard problems

are pressing toward a. Prompt solution. In France, stabilization Will be

taken up immediately the elections are over. An important question at that

time will be,in what manner the gold supplies can be placed at the service

of these currency restoration plans. The annual report of the Bank of Italy

is particularly instructive in this connection. I am therefore glad that I

shall soon have opportunity to talk over these matters with you in person.

With kindest regards, believe me --

(sgd) G. Bachmann.


Grand Hotel,Crosse, June 2, 1928.


Your kind letter addressed to me in New York arrived just before

my departure and has remained unanswered until now solely on account cf my

corioue illness, which not only prevented my attending to any correspondence

but deprived me of the use of my eyes.

I am now very much better and em writing to thank ycu for your

kindness in offering to facilitate my visit. There was some uncertainty as

to where I should go or just how much traveling it was possible for me to at-

tempt. Ism no'' comfortably settled here at the Grand Hotel, Cresco, at

the suggestion of my physician in Faris, and I expect to remain here during

the month of June. About the let of July I em hoping to go to Evian again,

and whether I can make the trip to Zurich depends entirely upon my recurera-

tion. I think it is rather unlikely, as I have been cautioned and urged by

the Doctor to attempt very little traveling. Possibly you fool th::t the

trip to 7vian is not too long for you to visit me there. i um hoping to

make arrangements to stay at the Royal Hotel, where I stopped two years ago,

but if they cannot accommodate me I may indeed call upon you for assistance,

as you so kindly offer.

There are many matters *hid' I would enjoy and profit by discussing

with you, and I hope that we will be able to have such a meeting.

With every good wish, my dear Dr. Bachmann, believe me,

Very sincerely yours,

Dr. G. Bachmann, Governor,Swiss H'tional Bank,ZURICH.

BS s'.1


SCHWEIZERISCHE NATIONALBANK

PRASIDENTF GDES DIRICKTORIUMN

4111

Mr. Benjamin S t r ong,

Grand Hotel,

ZURICH. DEN June 7, 1928.

Grasse.

My dear Mr. Strong,

From your kind letter of the 2nd inst. I learned, to

my great regret, that you hsve been seriously ill. I am so

sorry that your stay in Europe which was intended to be a pe-

riod of rest should have been spoiled in this way, and I hope

sincerely that by now you are restored to health so that you

feel well enough to enjoy the beauty of the Riviera.

I wish to assure you that I am looking forward with

great pleasure to meeting you and that I shall do my very best

to see you during July, be it in Zurich or in Evian.

Hoping to receive good news about your reconvalescence

I gladly place the facilities of my position at your disposal

in case of need.

With best 7ishes and kind personal greetings, I am, my

dear Mr. Strong,

Very sincerely yours


OftWEIZERISCHE NATIONALBANK

piasIDENIFGDES DIREKTORIIIMS

4111r. Benjamin Strong,

c/o Morgan & Co.,

My dear Mr. Strong,

ZURICH. June 18, 1928,

Paris.14 Place Vendome.

I have for acknowledgement your

wire of the 15th inst. informing me of your

leaving for Paris to-morrow, and of our

intention to go to Haute Savoy the following

week. Fr this I understand that you :'rill

be in Evian around June 25th, a date which

would permit me to come and see you there.

I hope that your journey to and

from Paris will be very agreeable, and that

I shall find you in good health the week

after this. I should thank you to receive

a few lines yet giving me definite infor-

mation as to your arrival in Evian.

With the best of wishes, my

dear Mr. Strong, believe me,

ver sincerely yours,


OSCHWEIZERISCHE NATIONALBANK

PRAM DEN'IpGDES DIRBECTORIUMS

S

Mr. Benjamin Strong,

Hotel Royal,

ZURICH. DEN July 4th, 1928.

EVIAN LES BkINS.

***********************

My. dear Mr. Strong,

I beg to thank you for your telegrams of the 3rd and

the 4th inst. from which I understand that my visiting you

will be agreeable any time between now and July 15 th.

As to my departure I can arrange to leave Berne,

where I have a meeting on monday, early enough to reach

the boat in Ouchy-Lausanne to arrive at Evian at 11.25 A.M.

on Tuesday, July 10th. I hope that this date will be quite

convenient to you.

You have offered to make reservation at your hotel

on my behalf, which is very kind, and I should thank you

very much for your doing so.

With very 'And regards, I remain, Dear Mr. Strong,

Sincerely yours,


U.


Royal Hotel,Evian-les-Baines July 5, 1928.

This is merely to acknowledge receipt of your kind letter

of the 4th, just arrived, from which I note that you will probably

reach Evian at 11:25 a.m. on Tuesday, July 10th. This will be quite

convenient, and I shall arrange to meet you at the pier myself or to

have my secretary do so.

A room and bath has been reserved mt this hotel for your

arrival.

Looking forward to the pleasure of meeting you again, I remain

Sincerely yours,

Dr. G. Bachmann, President,Swiso National Bank,ZURICH.

B3:11


Royal Hotel,Evian-les-Baine, July 17, 1928.

Dear Dr. Bachmann:

Your kind letter of July 14th duly reached me, together with

Lhe enclosure, which I have read with much interest.

I in pending the lecture to Dr. Burgess with the request that

he investigate the bost medium in which it might be -ubliahed. On read-

ing it over, I find that some of the idiom employed in the translation

will require changes here and there in order to be perfectly clear to the

average reader, so I am suggesting to Dr. Burgess that he go over it care-

fully and rend you a text containing suggestions of the slight changes

which seem to be appropriate. I hope this will entirely meet your own

views, and you will doubtless hear from hin very promptly.

The article certainly has a bearing upon many problems in which

we -re interested, poepibly the most important being the over present

study of the gold exchange standard and the resumption of circulation of

gold coin.

Your visit here gave MR the greatest possible pleasure, and I

really thick it was most kind of you and tho others to make the journey

in order to meet my inability to travel just now.

I am improving here gradually and feel confident that I shall

be able to leave next Monday, the 23rd, for Paris, and to sail for home

on August let.

With kindeet regnrds and every good wish, believe me, dour Dr.

Bachman,Very sincerely yours,

Dr. G. Bachmqnn, President,Swiss National Bank,ZURICH.BI!U


'I1WEIZERISCHE NATIONALBANK

PRASIDENT FGDES DIREKTORIUND-4

(1(04_4_4,464,-CetS t )

ZeRICH. DEV July 30th, 1928.

Mr. Benjamin Strong,

Governor of the Federal Reserve Bank of New York,

New York.********************

My dear Mr. Strong,

I beg to acknowledge receipt of your very kind letter

of July 25th, and to thank you for your cordial words re-

garding our meeting, and also for your suggestion. As to

the latter I would inform you that a copy of the original

in German has already been sent to Dr. Burgess.

It was, indeed, with great pleasure that I came to

Evian to see you, and I gladly assure you that the time spent

in your company will ever be recalled as most agreeable.

I sincerely hope that your trip on the Ocean was

enjoyable so that your health could make further progress,

and that by the time you take up your work again, you will

have regained your former strength.

With very kind regards, I remain, my dear Mr. Strong,

Sincerely yours,


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