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February £6, 1956

The Honorable Henry Sargenthau
Secretary of the Treasury
Washington, D.C.
Hy dear Mr. Secretary!
It Is ay understanding that the Treasury has an arrangement
with the State Department by which reports on foreign financial
developments are supplied by cable from our foreign representatives. I appreciate the confidential character of much of this
material; but I as also impressed with the fact that it is the
sort of current information which in some form should be available to the Board of Governors of the Federal Reserve Systea,
since international gold movements constitute a major element
in the problem of excess reserves with which the Board must deal*
In view of the fact that the Treasury has already made arrangements with the State Bep&rtsent, an independent arrangement by
the Federal Reserve Board would not only involve duplication but
possibly soae confusion as well. It has occurred to me that you
anight be agreeable to an arrangement under which a designated
member of the Board's staff would consult the reports forwarded
by the State Department to the Treasury. If this suggestion
meets with your approval, I shall only be too glad to set up any
procedure you say wish in the interest of preserving the confidential character of the information.

Very truly yours,

! S. Eccles



March 9, 1936.

Dear Chairman Eccles:
I have your letter of February 28th,
with reference to the desire of the Board of
Governors of the Federal Reserve System to
receive copies of confidential cables which
are furnished to the Treasury Department by
the State Department which have a bearing on
foreiaa. financial developments and international gold movements.
The Treasury is pleased to cooperate
with the Board in this matter and if you will
designate some member of the Board's staff
to whom you wish such cables to be sent, we
will be glad to make the necessary arrangements
Very truly yours,

Acting Secretary


Honorable Marriner S. Eccles,
Chairman, Board of Governors
of the Federal Reserve System,
Washington, D. C


Honorable' fiayne C* Taylor
Acting Secretary
Treasury Department
EasMnsrton, D C
« #
Dear Hr» Taylors
loft ate thank you very micb for JWHP . etter of March 9
in which you offer to send to a designated member of the
Board # s staff eables furnished to tfct Treasury Departaent
fey tli© Department of ttete which have a bearing; on foreign
f i a a n d a l deTelopsente and iBteraatioaal gold aiovemeuts*
ilie aenber of the Board*a staff who i« chiefly concer*i«
with international derelop»»Tit/? i s Mr. taltfltf R Gardner of
ths Division of Research anci S t a t i s t i c s , arid I shall appreciate i t if you will aend the cables to hla for use in b i s
reports to the Board.

Very truly yours,

St. $• fceeles