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BOARD OF GOVERNORS
or

THE

FEDERAL RESERVE SYSTEM

Office Correspondence

Date A ^ s t 20

ni as
Mr. G-oldartwfiia

Subject!
fir

"P\ih"\ i n i t v on nurrencv
a-hairi ] i ga-j-.i nn

I inquired at the Treasury yesterday and found that they
had not issued any release on the subject until yesterday. Yesterday's release is attached, and I believe is entirely proper. The
only reference to the Chicago meeting is a sentence on the second
page, "which I have marked in red. Allan Sproulfs reference must be
to an article which appeared under a Chicago date line in the Herald
Tribune for August llj.. In this statement, after saying that Harry
White would explain his proposal, it was stated that he would be
assisted by E. A, G-oldenweiser, Economist for the Federal Reserve
Board.

I do not know whether Leland gave it out that way or whether

that was just a newspaper man's version.

It is, of course, entirely

inaccurate. There was a further release by Leland dated August 1$,
which is also attached, and which seems to be unobjectionable.




TREASURE DEPARTMENT
"Washington
FOR KELEASE. MOVING NEWSPAPERS
Friday, August 20,~1943.

Press bervice
Wo. 38-16

Secretary Morgenthau made public today a revised draft of the
Treasury's tentative proposal for an International T^abilization Fund
of the United and Associated Nations.
The revised draft was prepared by technical experts of the Treasury
in cooperation with experts of other Departments. The revision folio-wed
exploratory discussions that have been going on for more than two months
between the monetary experts of this Government and the monetary experts
of nearly thirty countries. Yfhile suggestions of representatives of other
countries have been included in the revised draft, Secretary Morgenthau
pointed out that it does not necessarily reflect the views of the experts
of any other countries.
The exploratory technical discussions in T.'ashington have been held
in response to an invj.tat.ion Secretary Morgenthau sent late last March
to the finance ministers of the United Nations, enclosing for their examination, a preliminary draft of the Treasury's tentative proposal. The
finance ministers -were requested to submit the draft for study by their
technical experts and to send their experts to Washington to discuss the
feasibility of international monetary cooperation along the suggested
lines.
Secretary Morgenthau said the exploratory discussions have been
extremely helpful in clarifying the views widely held by the experts
of the United Nations.
"I believe the technical experts are unanimous in their view
that international monetary cooperation is essential if we are to
avoid the collapse of somt monetary systems, to prevent the disruption
of foreign exchanges and to facilitate the restoration and balanced
growth of international trade," he said.
There will be further discussions with the representatives of
other countries who are expected to arrive during the month, Secretary
Morgenthau said. He said that no conference would be called until
he had had an opportunity to consult with the Congressional committees.
' \
M
This revised draft", he said, "is in every sense still a preliminary document. It has not received the official approval either of the
Treasury or of this Government.11
Secretary Morgenthau pointed out that he is keeping the appropriate
committees of the Senate and the House fully informed of the discussions.
On April 5 and 6, 1943, Mr. Morgenthau appeared before three committees




- 2 of the Senate and three commit toes of the House to explain the proposal
for an International Stabilization Fund. Mr. Morgenthau said ho intended
to appear before the appropriate committees of the Senate and the House
soon after Congress convenes to consult "with them further on the proposal.
"Treasury officials11, Mr. Morgenthau said, "are arranging discussions
•with representative public groups to explain what we are doing, and to get
thc-ir suggestions. There will be a conference of officers and directors
of several Federal Reserve Banks in Chicago next week at which proposals
for postwar stabilization of currency will be fully discussed.11
The Secretary indicated that similar conferences will be held with
other Fwdoral Beservo Banks.
Viithin the next few weeks Treasury officials will hold conferences
with the Advisory Council of the itoerican Bankers Association, the
New York City banks and other representative banking groups. Arrange-*
ments are also being made for meetings with members of the Foreign
Trade Council and other organizations representing business men engaged
in foreign trade.
Secretary Mbrgenthau said the Treasury had received a large number
of letters regarding the proposal, many of them embodying interesting
suggestions. All of these letters are being carefully considered.




0O0

II

These articles are protected by copyright and have been removed.
The citations for the original articles are:
New York Herald Tribune, “Chicago Forum on Stabilization to Hear White: Author of American
Plan and Towers to Discuss Varied Monetary Proposals,” August 20, 1943.
New York Herald Tribune, “Allies to Discuss Stabilization in Chicago Aug. 26: U. S., British and
Canadian Delegates Will Consider Post-War Monetary Plans,” August 14, 1943.