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Alfred Hayes (banker)
Encyclopedia
Alfred Hayes, Jr. was an American
bank
er and an expert in international finance
. Hayes was known as a conservative money manager who took a strong stand against inflation
. He also had a reputation as a lightning-fast mathematician.
Hayes was born on Independence Day
in 1910 in Ithaca
, New York
. He was a student at Harvard College
before transferring to Yale
, where he completed a Bachelor of Arts
degree in chemistry
. He then studied for a year at the Harvard Business School
before attending New College, Oxford
as a Rhodes Scholar
. At Oxford, Hayes studied economics
.
In 1933, Hayes became an analyst for the investment department of City Bank Farmers Trust Co. In 1940 he transferred to the bond department of the National City Bank. Two years later he became assistant secretary in the investment department of the New York Trust Co. During World War II
, Hayes served for two years in Washington, D.C.
and Rome
as a U.S. Navy lieutenant
in the office of financial planning for military government and later in the office of the Foreign Liquidation Commissioner. After the war, Hayes returned to New York Trust, where he became assistant vice president (1947). From 1949 to 1955 Hayes served as vice president in charge of the Trust's foreign division.
Most notably, Hayes served from 1956 to 1975 as president of the Federal Reserve Bank of New York
. When Hayes appeared before the House Banking Committee in 1964, committee chairman Wright Patman
, a strong opponent of the Federal Reserve System
, told Hayes: "You can absolutely veto everything the President
does. You have the power to veto what the Congress
does, and the fact is that you have done it. You are going too far."
After leaving the Federal Reserve, Hayes served as chairman of Morgan Stanley International
. He retired in 1981.
John Brooks, "Annals of Finance: In Defense of Sterling II," The New Yorker, March 30, 1968, 43-101
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
er and an expert in international finance
International finance
International finance is the branch of economics that studies the dynamics of exchange rates, foreign investment, global financial system, and how these affect international trade. It also studies international projects, international investments and capital flows, and trade deficits. It includes...
. Hayes was known as a conservative money manager who took a strong stand against inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
. He also had a reputation as a lightning-fast mathematician.
Hayes was born on Independence Day
Independence Day (United States)
Independence Day, commonly known as the Fourth of July, is a federal holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776, declaring independence from the Kingdom of Great Britain...
in 1910 in Ithaca
Ithaca, New York
The city of Ithaca, is a city in upstate New York and the county seat of Tompkins County, as well as the largest community in the Ithaca-Tompkins County metropolitan area...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. He was a student at Harvard College
Harvard College
Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...
before transferring to Yale
Yale College
Yale College was the official name of Yale University from 1718 to 1887. The name now refers to the undergraduate part of the university. Each undergraduate student is assigned to one of 12 residential colleges.-Residential colleges:...
, where he completed a Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
degree in chemistry
Chemistry
Chemistry is the science of matter, especially its chemical reactions, but also its composition, structure and properties. Chemistry is concerned with atoms and their interactions with other atoms, and particularly with the properties of chemical bonds....
. He then studied for a year at the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
before attending New College, Oxford
New College, Oxford
New College is one of the constituent colleges of the University of Oxford in the United Kingdom.- Overview :The College's official name, College of St Mary, is the same as that of the older Oriel College; hence, it has been referred to as the "New College of St Mary", and is now almost always...
as a Rhodes Scholar
Rhodes Scholarship
The Rhodes Scholarship, named after Cecil Rhodes, is an international postgraduate award for study at the University of Oxford. It was the first large-scale programme of international scholarships, and is widely considered the "world's most prestigious scholarship" by many public sources such as...
. At Oxford, Hayes studied economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
.
In 1933, Hayes became an analyst for the investment department of City Bank Farmers Trust Co. In 1940 he transferred to the bond department of the National City Bank. Two years later he became assistant secretary in the investment department of the New York Trust Co. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, Hayes served for two years in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
and Rome
Rome
Rome is the capital of Italy and the country's largest and most populated city and comune, with over 2.7 million residents in . The city is located in the central-western portion of the Italian Peninsula, on the Tiber River within the Lazio region of Italy.Rome's history spans two and a half...
as a U.S. Navy lieutenant
Lieutenant
A lieutenant is a junior commissioned officer in many nations' armed forces. Typically, the rank of lieutenant in naval usage, while still a junior officer rank, is senior to the army rank...
in the office of financial planning for military government and later in the office of the Foreign Liquidation Commissioner. After the war, Hayes returned to New York Trust, where he became assistant vice president (1947). From 1949 to 1955 Hayes served as vice president in charge of the Trust's foreign division.
Most notably, Hayes served from 1956 to 1975 as president of the Federal Reserve Bank of New York
Federal Reserve Bank of New York
The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is located at 33 Liberty Street, New York, NY. It is responsible for the Second District of the Federal Reserve System, which encompasses New York state, the 12 northern counties of New Jersey,...
. When Hayes appeared before the House Banking Committee in 1964, committee chairman Wright Patman
Wright Patman
John William Wright Patman was a U.S. Congressman from Texas in Texas's 1st congressional district and chair of the United States House Committee on Banking and Currency .-Early life:...
, a strong opponent of the Federal Reserve System
Federal Reserve System
The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
, told Hayes: "You can absolutely veto everything the President
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
does. You have the power to veto what the Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
does, and the fact is that you have done it. You are going too far."
After leaving the Federal Reserve, Hayes served as chairman of Morgan Stanley International
Morgan Stanley Capital International
MSCI Inc. is a provider of investment decision support tools to investment institutions. Products include indices, portfolio risk and performance analytics - for use in managing equity, fixed income and multi-asset class portfolios - and governance tools....
. He retired in 1981.
Additional reading
John Brooks, "Annals of Finance: In Defense of Sterling I," The New Yorker, March 23, 1968, 44-96John Brooks, "Annals of Finance: In Defense of Sterling II," The New Yorker, March 30, 1968, 43-101
External links
- Federal Reserve Bank of New York biography
- "Emerging Arrangements in International Payments — Public and Private", transcript of a lecture by Alfred Hayes to the Per JacobssonPer JacobssonPer Jacobsson was managing director of the International Monetary Fund from November 21, 1956 until his death in 1963. Born in Tanum, Bohuslän, Jacobsson received degrees in law and economics from the Uppsala University....
Foundation, 1975