Full text of Papers of Benjamin Strong, Jr. : Correspondence with the State Department : Members of the State Department in Europe

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"S000nd lot approximating t7enty million
goldmrks oompieted
gross weight kilo 7945 grammes 565

troy ounces 255455,672 German

weight 7945,5706 difference granules 5,1
coins genuine are weighing
third lot 956002."

8/1/19.

Confirmation of badly garbled cablegram, which is to be found in
Personal file.
HCV

August 4th, 1919.

Benjamin Strong, Esquire,
National Bank of Belgium,
Brussels.
Sir:

agee

I desire to transmit herewith the following telegram

261174-

received August third through the Department of State:

°rail
" From Rathbone for Benjamin Strong Second
LEEZTYIELD ITYPOGIIJBA IJJOVVUSAH PIMAMBIYME
OSTYG NEDERLANDBCHE AVPRAQUOTE /ULVLOJUDYE
;AMUSGFEWYV AKTORGYDAR JYHUFCYTEB, VYRVYIVTAG
MIOWTiEVIR GYNIFLYOLK HAWYHTROY NOOVTMOUJM
LUFNACOMMA LIORTGUIRO VYRBLMIOWT LEWIRCOMKA
MACPOHATYH EKZIBGYNIF LIABZCOINB GULANANFIM
VYRFAGLOHB JUDYE UNQUOTE FEDRESERVE"

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Arm.
Ardevew-rait.

I am, Sir,

Your obedient servant,

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Avid.
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August 4, 1919.

Benjamin Strong, Esquire,
National Bank of Belgium,
Brussels.
Sir:

I desire to transmi

herewith

the following telegram received

August third through the Department or State:
"From Rathbone for Benjamin Strong Second
July 31st.
For your information Ar repeat cable
"Cable No. Four.
received from Nederlandsche Bank quote Third lot approximately equals
amount gold marks completed Gross weights kilograms 7945, grams 705-1/2,
troy ounces 25,460.173 German weights kilograms 7945, grams 773-1/2
difference grams 68
Coins genuine
Are weighing fourth lot unquote
Federal Reserve Bank
I am, Sir,

Your obedient servant,
W. M. SWIFT,

Secretary d' Legation
(American Legation Brussels)

August 5, 1919.

Dear Sir:

I am taking the liberty of handing you herewith a dispatch which
I am anxio:Is to have sent to my office at New York through the State
Department, under the ?rotection of your code, and will greatly appreciate your courtesy in transmitting it as promptly as possible, as the
message is of considerable importance.
I uu sending this by a mescenger, as I shall be unable to call
at the Embassy until later in the day, and would greatly a7preciate
your handing to him any cable message which may have been received
for me since / was at the office this morning.
Thanking you in anticipation, I beg to remain,
Faithfully yours,

To the American Minister,
Brussels.

55/7

lugust .5, 1919.

Dear Sire

With this T am enclosing copy of a telegraph diepatch which is

quite urent and which / would greatly appreciate having transferred
into your own code as nromptly as ;essible and transmitted to the Governor of the Bank of rngland through the American Ambassador at London.

For the Cost of this and other messages which you are good enough

to tranemit for me, I shall of course make reimbursenent before leaving

Brussels, and sincerely trust that I aa not giving you an undue amount
of trouble in connection therewith.
Faithfully yours,

lb the Charge d'Affaires,

American Legation,

Brussels.

Hotel Astoria, Brussels,
August 6, 1919.

My dear Sir:

With this I am enclosing a letter addressed to Mr. R. H. Treman,
of the Federal Reserve Bank, which I would greatly appreciate having

transmitted in the Legation pouch.
Very truly yours,
To the Charge d'Affaires,
American Legation,

Brussels.
V

August 6, 1919.

OLAANNVWL,

My dear Mr. -Kerman;

With this T an enclosing another cable for transmission to
tie Federal Reserve Bank of New York, in the Embassy code, and

again I am grateful to you for your kind assistance.

I shall arrange this afternoon, or possibly on my return
to Brussels next week, to reimburse the coat of these messages.
I ara.

Very truly yours,
iiorman Armour, Esq.,

Charge d'Affaires,
American Lezation,

Brussels.

B3,fy

HOTEL RITZ, PARIS, FRLNCE.

August 16th, 1919.
American Lemtion,

22 Place de l'Industrle,
Brussels, Belgium.

Gentlemen:

Unfortunately I fear I left Brussels without

discharging the cost of cables which you were good enough
to send for we in State Department code and I am now
writing to ask if you will be good enough to send me a
memorandum of the cost in care of Eorgan Harjes & Co.,
Place Vendome, Paris and I will remit on my return from
Constantinople in the course of a few weeks.

Sincerely yours,

AMERICAN LEGATION
BRUSSELS

August 18th, 1919.

The American Legation at Brussels presents
its compliments to gr. Benjamin Strong, an with
4it

reference to his letter of the 16th instant, begs
to state that the following amounts have been expeWiel In cable tolls for the Ferieral Reserve Bank
of New-York:

Telegram ffo.307. to Wash'n: Pres.118.90
"

3080
3090

13.

Total:

"
"

LorP.on,
n

i72o50

105.35
13.45

310.70

for which it is requesteq that a remittance in
settlement thereof be sent at Mr. Strong's convenience..

Benjamin Strong, Esquire,

Hotel Ritz, Pacts.

Ntr,t4'

021-5

AMERICAN LEGATION

Brussels Belgium

Following message for Banque Nationale de Belgique from Benjamin
Strong Governor Federul Reserve Bunk of New York

August twentieth

Am advised

by Treasury Department of United Stutee that they desire to transfer sufficient
amount of German gold marks to make a payment of tan million dollars in Paris

and have asked me to arratve the matter stop

German gold coin should be Shipped

to and will be aecelted by the Bunk of France on busie of eight ninety nine point
four and amount to be shipped should produce tan million dollar° fine gold value
figuring German coin at the rate named atop

Would Banque Nationale de Belgique

undertake to make thie shipment for account of,Pederal Reserve Bank making all

arrangements for insurance in accordance with instructions to be furnished later.
stop

Gan you also advise probable entire cost of packing transportation and

insurance from Brussels to Paris and length of time required to complete Shipment

after notice reaches you stop

If gold is Shipped the Federal Reserve Bank

will me correaponding reduction in amount to be shipped to Landon atop
reply promptly through American Legation Brussels stop

Kindly

Am confirming by mail

BENJAMIN STRONG Governor Federal Reserve Bank New
.York

Hotel Ritz, Paris,
August 21, 1919.

Gentlemen:

With this I beg to enclose draft on Brussels, value fcs. 31o.7o, in settlement of the bill which I have just received covering cost of cables and telegrams
which you weregood enough to dispatch for me while I was in Brussels.

Again with nuny thanks for your courtesy, I beg to remain,
Sincerely yours,

American Legation,

Brussels,

Belgium

BS/V

(Enclosure)

August

25, 1919

Benjamin Strong, Esquire,
American Commission to Negotiate Peace,
Hotel Crillon, Paris.
My dear 2r. Strong:

I enclose herewith a letter addressed to you which we
have today received from the National Bank with the request that
it be sent on to you as soon as possible.
It appears to be a
reply to your telegram sent throuth us regarding the transfer of
ten million dollars in gold to Paris.

I hope you will call upon me if I can be of any
assistance to you either in this transaction, or in any others
that may arrise.

Things are about the same here, although the franc
continues to descend, which displeases everybody except American officials receiving their salary cheques in dollars, which
makes even our somewhat meagre allowances look quite respectable
when translated into Belgian currency.

Seriolisly, I do think it is important that every
effort be made to bring down the rate of exchange. Yesterday's
papers again commented on the fact of American and British ExThe dollar is now 8.57.
change.

,ith best wishes, believe me,

Very sincerely yours,

-41041-71-'

WELBGRAM

Amsterdam, September 5, 1919.

NOdIAN ARMOUR
American Legation
Brussels

If any mail or telegrams are received for me please repeat telegrams
and forward mail to me care Bank of England London
BENJAMIN STRONG

Hotel Ritz, Paris,
August 28, 1219.

dear Mr. Armour:

Many thanks for your note of the 25th with the enclosure from the
National Bank containing information needed in regard to our gold
transaction. I certainly shall not hesitate to call upon you for
assistance in this matter and am most grateful to you for what you
have already done.
Traveling about as I have and meeting so many people you may imagine
that my impressions of the situation here are varied and somewhat conT see many evidences of slow improvement,
fused.
That is the fact.

and at the same time danger ahead for this winter if our people at home

fail or are too slow in furnishing assistance.

The decline in exchange is making people realize at last that hard
can be relied upon for a permanent

work, production and economy alone
cure for these economic ills.

With kindest regards, I um,
Sincerely yours,

Norman Armour, Esq.,
The American Legation,

Brussels.

BS/11

r
eia. 41' -4

London, July

21,

1919.

Sir,

The Ambassador desires me to transmit herewith,
for your

information, copy of a

telegram which

he has received from the Department of State, containing a message for you.
I am, Sir,

Your obedient servant,

au,s; s

GO CIA l'aLLI.6%..

Third Secretary of Embassy.

Benjamin

Strong, Esquire,
C/o Messrs. Morgan Grenfell & Company,
22 Old Broad Street,
E. C.

Enclosure:-

Copy of telegram.

CCP

In 15
July 20, 1919

PARAPHRASE

ORIG IN AL

American Embassy, London

FROM

Department of State, signed 'PHILLIPS ACTINC'

DATED

July 20, 10 a.m.
July 20, 7:45 p.r.

5697

NO.

krom Ratbbons:
Treqsur 7 A-28.

The Federal Reserve Bank of New York sends the following message
to Benjamin Strong, care of Morgan Grenfell and Company, 22 Old
Broad Street, London:

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COPY OF TELEGRAM

fioaelvod

ICAN EMBASSY, PARIS

Augutt 21, 9;40 Ad

RECEIVED

644 Blue

London august 20. 1919.
PARI

MIL

'644. Auguit 20, 6pm. For Benjamin
Strong, Ritz Hotel, from Kent. "Bank of iAglwad

reoontly had occasion to ship gold to Spain and rate
W44.8 three eiOits of one percent but insurance was
teat ng. Norman does not believe the:, can get.
insurance in dollars but n finding out and Jill wire
tomorrow. Total pesetas outstanding 155 million
and would suwest you telephone Hare at General
Pershir..rg' Headquarters and ascertain whether he is
making progress ulth Drquijo of Madrid in selling
supplies to Spain, as it might help out Treasury
to kner; exact situation.
E3

DAVIS.

py Bart

(Strong, Aug. 21,

1919.,

July 24,

My dear Mr. Williams:
I am in due recelpl. of your letter

the 21st enclosing copy of

Cablegram 5691, dated July 29, transmitted through t.ie Treasury Deart-

ment, and thank you very much for your ceurtev in the matter.
Yours sincerely,

Curtis C. Williams, Jr., Esq.,

Third Secretary of Embassy,
American Embassy,
4

Grosvenor Gardens,

London, England.

July 24 1919.

Dear Mr, Ambassadors

With this I am taking the liberty of enclosing to you a confidential cable addressed to mr. Russell C. Leffingwell, Assistant Secretary of the Treasury, which I believe it is te,-Yortant he
should receive, and through such code as will afford it the best
possible protection.

The significance of this situation will be quite a?parent to
you, and I shall hope to have oportunity before leaving for Paris
Sunday to have a few words with you about it.

Much a2preoiating your courtesy In transmitting the cable
under such safeguards as you can conveniently employ, I beg to
remain,

Faithfully yours,

Mon. John W. Dt41,18,

Anierican Ambassador,
London, England:
133/V

P. S. I an asking Mr. Vaughan to deliver this letter by hand, and
he will leave the money at the Embassy to defray the cost.

HOTEL RITZ, Paris

July 30, 1919.

Dear Sir:

Mr. Strong wishes ne to express to you his appreciation of the Ambassadoreis courtesy in forwarding to him under date of July 2i copy of
cable 'Treasury A-19' from the Federal Reserve Bank, dated July 25th.
Very truly yours,

Curtis C. Williams, Jr., Esq.,

Third Secretary of Prnbassy,
American Embassy, London.

LONDON, July 24,

1919.

Dear Governor Strong,

It has given me very

great

pleasure to for-

ward the telegram which you enclosed in your ietter
of July twenty-fourth for transmission to Mr. Russell
Leffingwell, Assistant

Secretary of

the Treasury.

am only too happy to be of assistance to you,

so please do not

hesitate to let me know when

is anything I can do for you.
Yours sincerely,

ble
Benjamin Strong,
The Hon
.

C/o Bank of England,

London.

there

July 2,, 1919,

Dear Mr. Ambasqador:

Lty T further trouble you by asking the privilege of sending

theenclosadjetter, addressed to gr. Leffingwell, in the Embassy
?ouch, if it in quite proper for me to make the request.

Thanking you in

anticipation, I be to remain,
Sincerely yours,

Hon. John W. Davis,
American Ambassador,
London, England.

London,

July 2,, t919.

Deur Mr. Ambassador:

As I shall be leaving for Paris on Sunday and cables may be received during ayabeence on the Continent, I would greatly a:reciate

having any such cables repeated to ae until adv.see to the contrary,
care the Aelerican Ambassador, raris.

In the cuse of any message transmitted in the code of the State
'Department, I am uncertuin us to the ability of the Embassy at .aris
to decode it, and rossibly you will be good enough to de uL with such
meecages us-circumstances may require.

DoubtLess it would be undesirable to send the ;:ekraphrace by

mail on account of the mail censorship, which I understand still
prevails on the Continent.
Deeply appreciating the courtesy of the members of

in attending to these mattere, I be to remuin,
Sincerely yours,

Hon. John W. Davis,
American Ambas,2ador,

London, Englund.
Bsiv

our stuff

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LONDON, July 26, 1919.

1
Sir,
The Ambassador desires me to

transmit

herewith, for your inforalation, copy of a
telegram which he has received from the
Department of State, containing a message
for you.

I am, Sir,
Your obedient

servant,

el 03 :LAR :4LaiL34.

Third Secretary of Embassy.

Benjamin Strong, Esq.,
C/o Messrs. Morgan Grenfell 8, Company,

22 Old Broad Street,
E. C.

Enclosure:

Mr. Williams

Copy of telegraAl No. 5714.

COP

OPEN

In 11
July 25, 1919

ORIGINAL
TO

American Embassy, London

FROM

Department of State, signed ILANSING1

DAT2D

REM

July 25, 10 a.m.
July 25, 8 p.m.

BO.

5714

From Eathbone:

Treasury A-29.

Following is for Benjamin Strong, in care
of Morgan Grenfell and Go$pany, 22 Old Broad Street, London:
/LEAKDZONES LAYBEOSTAZ UKYYHGIDUB BIYMEDYSUE
ITUXTGOWTA NEDFILANDSORE AVPRAOPLAB GEFSEJUDYE AMURGLEPPY

KEJUMGYDAR JYRUFCYTEB TY1VYIVTAG MINLOYEAML GYNIFYAVJE BOOVTMOUJM

LOYGMEOEVZ COINS ABFIMGALAN ANFIWYRFA PYIRVJUDYE UNQUOTE
ULYUMDAYRE SAWUREGALY LEAKDUKMYH GIDUBBIZIE DYSURITVJDN OSTYG

NEDERLANDSCHE AVPRAOPLAB OSUSDBIYME LEOVSGYDAR GUMSOPOZPA

UMPETDIFUY LOLSOKECUM JYRUFMUJYS MIJWRYVUD LEPILKEJUM
'MOVOYATB/N DITYRYMUMWYMBEGPOLEO WilTYPLIDGE AWSUTGAZOL
VYRGEMOAHC 7. .'.AMOYIVTAG USEWJLUCRY KEJUVGYDAR JYHUFVUYAT

POMOAVYRAF ONRURIDVUD DYZILWISAZ JYGZEPBWOS NESADPDIGZ

TUGNYOBSBA WUSELIKTUD VUSAPDIOSZ ADIZTVYRFA GYDAROOIDS

APURKROOZO ALAUWIOEK PIDANFIOLM JUDYEAMURG VINODLEPPY
KEJUMJYHUF UNQUOTE LECVAPASIV UMUPYBIYME BIHEVHOMKO ABCAFATWAD
IKTUDGRADK LEEZTWUSEL BIYMELEAKD ALAVKLEOVA OSSUDITWEP
IDVUDODORD FAZMAUZZBO WUPEOVIAMY COLIBALAVK UKGEVWODUT

LEGZAEWIT ULWAGBIYME RAKUYNYKEK FEDRESERVE."

Mr. Williams

http://fraser.stlouisfed.org/
1Federal Reserve
Bank of St. Louis

London, December 28, 1920.

Dear Mr. Strong:

The following telegram was received for you
from Mr. Harrison in Paris, dated December 24th:"Merry Christmas and happy New Year".

I believe this message was

this will serve as

telephoned to you but

confirmation.

Believe me,
Sincerely yours,

Benjamin Strong, Esq.,

c/o Montagu Collet Norman, Esq.,
The Bank of England,
LONDON.

t
"1

14,

4
L.;

Suggested plan for handling transaction proposed by cable from

Ambassador Gerard., received at Washington August 15, 1914.
wilirst, as to one hundred thousand dollar gold item, deposit the
4100,000. gold with the German EMbassy with corresponding deposit
with Ambassador Gerard in Berlin. The proposed rate of 4 Marks
19 3/4 appears to us satisfactory and the proposed plan to be the
promptest way of effecting a temporary credit with which Ambassador
Gerard can pay Embassies' expenses, etc. This also affords means
for the German Etbassy at Washington to pay their expenses. Seconi,
as to five million Mark item, the last paragraph of Ambassador's
cable does not indicate for what purpose the Marks 5,000,000 credit will be used, at what rate of exchange Marks will be figured,
or whether the amount to be deposited in New York shall be gold
or simply a credit, or whether the gold is to be ultimately shipped
abroad. If, as we surmise, this sum is to be principally used
for the purpose of paying transportation, possibly chartering vessels, etc., it will be difficult to arrange for bankers to advance
this BUM of money; the arrangement purposed so far does not furnish any means for reimbursement or, in fact, any certainty that
the amount expended for these purposes will be reimbursed, unless
the Government will give its obligation to do so. We therefore
suggest the following transaction: Bankers Truat Company will credDeutsche Bank, as one of their New York correspondents, with
41,250,000 against similar credit to be extended by the Deutsche
Bank, Berlin, in favor of Ambassador Gerard at the rate of 4.19 3/4
Marks per dollar, Ambassador Gerard to be instructed that under
this credit the Deutsche Bank is authorized to make payments on all
responsible American travelers' cheques and letters of
such moderate amounts as are required by each individual, the payments against such credits to be figured at the rate of 96 cents
for 4 Marks, which will make but a small allowance to cover the expenses of handling the transaction, collecting the cheques, etc.
This allowance is necessary inasmuch as the account will be handled
for the benefit of some hundreds of American institutions issuing
these credits, with whom we are in no position to communicate and
confirm arrangements. Otherwise the entire risk would be assumed
by Bankers Trust Company alone for the account of all issuers of
American credits. We assume that a large proportion of the credit
of 5,000,000 Marks will be expended in paying expense of transportarelief
work for Americans who are without available funds or credits. It
would, therefore, be neceeeary for us to have the obligation of
the secretary of the Treasury to reimburse the Bankers Trust Company
at the rate of larks 4.19 3/4 per dollar, and costs, for all of the
expenditures which are not possible of reimbursement out of good
Bankers Trust Company is quite willing to make
the advance under this arrangement, provided also instructions are
given to Ambassador Gerard that an agreement be entered into with
the Deutsche Bank that in case conditions make it advisable, the
travelers' cheques, drafts or other evidences of the payments made

credit for

tion, possibly chartering vessels, in fact for all kinds of

travelers' credits.

by the Deutsche Bank, shall be delivered to the American EMbassy
in Berlin and given the same safeguards as are given to the possessions of the Government in its care. It will also be necessary to
'lave duplicate accounts covering the payments and transactions filed
with the Embassy in Berlin, also filed. with Bankers Trust Company
in New York, and to have advices of the completion of this arrange-

-2-

ment promptly cabled to the Ambassador at London and to Jar. Kent,
Waldorf Hotel, London, Chairman of the American Relief Committee.
It should also be arranged by Ambassador Gerard that the credit
to Deutsche Bank with Bankers Trust Company is to be used in payment of obligations due in this country. This will avoid shipping
gold,and at present no safe means to do so are available.

,criA/e.,

Brack's

Doelen Hotel, Amsterdam,

August 9, 1919.

The American Legation,
The Hague, Holland.
Gentlemen:

permit me to express my appreciation of your courtesy in forwarda letter received at the Legation for me by messenger.
I understand that it will be delivered at the hotel either today or tomorrow
morning.

ing

I shall be in Amsterdam until Tuesday morning, and am writing to
ask if you will be good enough to advise' me at the Hotel Brack's Doelen,
by telebhone, in case any mail or telegrams arrive before Tuesday mornI shall be ',,assing through The Hague on my way back to Brussels
ing.
either Tuesday or Wednesday and will stop at the Legation to arrange

about my passorts and mail.

If for any reason I shall be unable to atop, telegrams received
after Monday should be repeated to me care of National Bank of Belgium,
Brussels, until Friday, and thereafter cure of Morgan, Haries
Company,
Place Vendome, Paris, as I shall be in Brussels only a day or two and I
might miss it.
With Tway thanks for your courtesy, I beg to remain,
Faithfully yours,

BS/V

ilotel Brack's Doelen, Amsterdam,

August 11, i919.

Jear Sir:
This letter will bo presented to you by my secretary, Mr. Harold

Vaughan, who will call at the Legation accompanied by Monsieur Bancharel this morning.

Mt. Vaughan will )resent to you the passports of our party, consting of Mr. Fred I. gent, Vice President of the Banloare Trust Cornj, and myself, both of U3 being abroad on government business, Yr.
Vaughan, Monsieur Bancharel and Hathaway who is driving for us.

I also take the liberty of encosing with this letter of introduc-

tion which my friend Mr. Henry P. Fletcher "Ave me and which I regret
CIA I am unable to present to the American Minister, owing to his
abence.

I we anxious to have our papers visaed, if that is necessary, in
order that we may proceed early tomorrow to Brussels, and; .f it is
ressible to have it done today while gr. Vaughan waits, it would be a
-reat convenience. Otherwise I sha,1 stop e...r.y tomorrow morning at
_such hour us Mr. Vaughan arranges to Use them up on my way through.

I have aiso handed Wr. Vaughan to exhibit to you letters of the
State Department in regard to my visit, which explain themselves.
With many thanks in anticipaien of your courtesy, and looking
forward to having the...pleasure of meeting you tomorrow, I beg to

rerain,

Faithfully yours,

ne Charge d'Affaires,
A-erican Legation,
Hague.

Bruccels, August 12, 1919
American Legation,
The Hague

Please repeat any telegrams which you may receilre for me care
Morgan Haries

Company, Place Vendome, Parie, direct, as our stay here

will be very short; also same disosition any uail.
BENJAZN STRONG

The Hague, Netherlands,
August 14th, 1919.

Dear Mr. Strong:

I am enclosing herewith a copy of a letter of
0111=i

yesterday's date, which I received from Mr. ter Meulen.

I should

have sought your advice in regard to this matter the other day but
at the time of your visit it was still in an embryonic state.

have had a private idea for some time that it would be an ezcellent
thing if an international conference of bankers could be called at
The Hague.

I had confided the idea in personal, unofficial con-

versation previously with Mr. ter Meulen and when he came to luncheon
with me the day of your visit it was further developed.

The matter has now come to the point where I think
I should submit a skeleton suggestion of the project to the Department of State for their consideration and such instructions as they
may care to give me.

I intend, therefore, to do this today or to-

morrow by telegraph.

I have made it quite clear that so far I am

in no way acting in accordance with instructions of my Government but
merely in a private capacity.

I don't think anyway that it is a

matter in which Government interference or even initiative, unless
camouflaged and strictly limited, is as yet warranted but I should
be very grateful for your views.

I am also writing to Mr. ter Meulen

that I have taken up the matter with you as he suggested.

-2-

Looking forward very much to seeing you when you
return, I am,

Yours very truly,

The Honorable Benjamin Strong,
etc., etc., etc.,

C/o Morgan, Harjes & Co.,
Place Vendome, PARIS.

Enclosure:

Copy of letter as above.

HOPE & CO.

AMSTERDAM

August 13th

1919.

CONFIDENTIAL.
Dear 1)11r. Gunther,

In consequence of our yesterday's conversation
I went to see this morning Dr. Vissering, Governor of our Netherlands
Bank, to whom I communicated your views as to the advisability of calling a conference of bankers.

I found Dr. Vissering and his co-directors

at the Bank quite alive to the great necessity of attempting to bring
order into the chaos existing at present between sellers and purchasers
of the principal world-products, and of devising a scheme which would
lead to the granting of long-time credits by sellers to buyers.
Dr. Vissering however suggested that before calling a
meeting of private bankers, it would be essential to have the Governors
of some of the principal Banks of Issue discuss the question between
themselves, inasmuch as private bankers could do no profitable work in
this connection until they first knew to what extent the Banks of Issue
in their respective countries were willing to support them.

Dr. Visser-

ing further suggested that possibly advantage might be taken of the
presence in Europe of

Strong, who has expressed his intention of

coming back to Holland in about ten days' time, by having first of all
an informal exchange of views on the subject between idr. Strong, as

representing the Federal Reserve Bank of New York, and Dr. Vissering.
These two might then consider which other Governors of Banks of Issue
should further be approached.

You will understand that Dr. Vissering,

as Governor of the Bank of Issue of a small neutral country, is feeling
rather reluctant to take the lead in a movement the success of which is

-2-

still so very uncertain; and he feels that whatever he does should
be done very cautiously and only after mature consideration.

Would it therefore perhaps be advisable that you
should sound

r. Strong,whose address in Paris is no doubt known to

you, whether he would be prepared on his return to discuss the matter

with Dr. Vissering? If you were to approach Mr. Strong without delay,
there would still be sufficient time left for him, before his arrival
in Holland, to consult, if he Should like to do so, the Federal Reserve Board in the United States as to their views on the subject.
I shall be very glad to hear from you whether Dr.

Vissering's suggestions appeal to you, or whether you should desire
to proceed in a different manner.

Yours very sincerely,

(S) C.E.terMEULEN.

F.M.Gunther Esq.
Legation of the U.S.of America,
THE HAGUE.

4-A.1.

(TRAY,

322.

Haguo.

Dated August 19, 1919,

Roca 21st, 440 P. M.
Ammission,.

paris.
322, Socstcto 6714, August 19th, 1 D.. El.
With a view towards bringing order into the

chaas existing at present between sollers and purchasers of the principal world products, and of devising a scheme which would load to the granting of
long time credit by sellers to buyers, I have felt
for sometime that a meeting of bankers from all
countries concernod should be called at The Haguo

as the most logical and contra point for discuS,,
Such a moeting it would seem essenti_l to
have the governors of some of the principal banks
of issue discuss thil1 ucstiolls betwoon themselves
in
'as much as privte bankers could do no profitable work in the connection
they first know

sion,

-SECOND STU, TTh.

ITT

:716

to wh-t cxtont thc b-133<s of issno in thoir
C'),171t5AUS WuT

willin to sui?-)ort thy.a.

3)9 this

r2,ut with T:nr
tndorst-nd th_t Mr. Bonjamin 6tr:,n,3 will shortly r,ttrn horc frunP-liS n6.I honl liko if
-)ossiblo t- bQ '.cg.11.:Antod. with y':,nr viows.
GUIITHLR.

hotel Ritz, Paris,
August 21, 1919.

Dear Mr. Gunther:

I am grateful to you for your kind letter of August 14 enclosing copy
of Mr. Ter Meulen'e letter, which just reaches me.
It has long been in my mind and in fact I have been working an a plan

for the last three years to bring about a more intimate and, if you please,
a more valuable relationship between the central bunks of issue.
Such a relationship has already been established between the Federal Reserve Bank of New York and the Bank of England, and in course of time I

shall hope that the arrangement now established will function to the advantage of both countries.

Quite Informally I have discussed the matter with Dr. Viseering, as
It has been mentioned to Mt. Van der Rest, of lhe
Banque Nationale de Belgique, and we have been corresponding for the last
two or three years about it with the Bank of France.
you may have been advised.

Under present conditions a meeting of the officers of these banks
might be fruitful in that it would enable an exchange of views to be had,
but I an sure it should be quite confidential and unofficial.
The great eroblom now confronting the world is the readjustment of the
Were the impression to get abroad that the central banks intended to undertake such a tesl: it would undoubtedly shuke confidence and
possibly ceuse alarm, because the task of dealing with the exchanges is of far
too great magnitude to be undertaken by any banking institution or groups of
exchanges.

institutions.

My suggestion to Dr. Vissering was simply with the idea of bringing about
a friendly meeting, and I had intended to suggest the matter to the Governor
of the Bank of England when I reached London, as in a sense that institution
is the dean of the central banks.
This is a matter which I have never broached to the Treasury Department
nor to the Federal Reserve Board, and, were T to undertake to errenee such a
meeting while still in Europe, it would seem to be necessary for me to first
coersunicate the plan to lashineton.

T shall endeavor to write you more fully after reaching London and
meantime I an greatly obliged to you for your thoughtfulness in advising
me of your proposed suggestion to lashington.

F. M. Gunther, Esq.,
American Legation, The Hague

Sincerely yours,

Hotel Ritz, London,
September 8, 1919.

My dear Mr. Edwards:

Much to my regret I found your card Indicating that you had canal
in my absence and just before I was leaving for London.

My last viait to Amsterdam was so brief that I found it impossible to stop at The Hague as I had hoped to do, to see Mr. Gunther
and to make your acquaintaince.

With kindest regards, believe me,
Sincerely yours,

Paul L. Edwards, Esq.,
Commercial Attache to the American Legation,
Korte Voorhout 6,
The Hague.

BS/V

L44,-

'otel Ritz, Paris,
August 16, 1919.

My dear Nemo:

Is it possible and appropriate for me to receive one of the

printed copies of the German replies and the amendments to the
Treaty made subsequent to the original printing?

Confidentially, at the proper time when these have been pub-

lished I want them to add to a collection of war material and lit-

erature which I am making for Princeton University and en RSSIlre you
that they will mot be nsed in any way nor shown to anyone until it is
proper for me to lodge them there. In nny event, I don't want them

unless It is altogether right for me to have them,
S ince rely yours,

Leland Harrison, Esq.,
Rotel de Crillon,

Paris.

BSPI

Hotel Ritz, Paris, August 26, 1919.

4 dear Nemo:

I have just received a letter frau Frank McCoy in which he says:
"I would also appreciate your

talking to Leland Harrison and askhim to arrange to have Prof. Elliot Mears work with us at Constantinople and put such information as he has at our disposA.."

ing

You doubtless know Prof. Mears' mission at Constantinople and will do

the needful.
Sincerely yours,

Leland Harrison, Esq.,
aotel de Crillon,
Paris.

I3S/V

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-A-402

July 10, 1924.

Dear Mr. Ambassador:

This ate kill be preaented to you by my friend and dssooiste,
Mr. Pierre jay, u.ho is chairswa of the 'oourd of ....irecture or this bank.

io ta be in auland and on the Continent thiL aummer, partly on business
Lad kartly as a holiday.
He waul_l like to Lave VIC pitAlbure oi meeting you if your engttge-

mento vrmit you otlortunity to bee him, and I m sure you will be interested in hearing what h may have to say about things at home.

Trusting that ynu keep well, and vith kindest regards, believe
me,

Tours faithfully,

aorable Frank B. Kellogg,
American Ambassador,
London, England.

July 10, 1924.

Dear Mr. tmlysseLdor:

I hp.ve taken the liberty of ;Avinc; a note of introduction
to you tc my friend 3nd ,,esociate, Mr. Pierre Jay of NEW 'fork, who

you vill recall is chP,irmsn of the board of directors of this beak
s:rid Federal Feoerv

Pent.

c is visitin7 Europe thic: summer ?artly

oc pleasure and pertly for the purpose of informing himsolf RS to
busines,7 and bankinL conditions ,troad.

He would like very much

to have the privilege of meeting you, and I hope that you may find
opportunity to receive him.

You will, I am sure, be interested in the news that he will
bring you of what has been oing on recently at home.

With kindest regdrds, believe me,
Sincerely yours,

Honorable Frank B. Kelloug,
American Ambassador,
London, England.
en C.

ARTHUR W. PAGE
ROOM 1010,46 CEDAR STREET
NEW YORK 5. NEW YORK
BOWLING GREEN 9-7484

April 19, 1954.

BENJAMIN STRONG, Esq., President,
United States Trust Company of New York,
45 Wall Street,
New York 5, New York.
Dear Mr. Strong,

I enclose copies of the correspondence between our respective fathers
which you so kindly gave me.
The originals are now in the
Houghton Library at Harvard.
I read them over again today. They
bring back vividly another time of stress
and give a feeling of the optimism and confidence with which that crisis was faced.

Sincerely yours,

PERSONAL AND CONFIDENTIAL.

June 9th,

1916.

My dear Ambassador Page:

I have wanted for a long time to write you a good

newsy letter and have particularly wanted to tell you what
a great privilege it was to have so many enjoyable visits
with you and Mts. Page while I was in London.

It did

a lot of good and helped tremendously to complete the work
I was engaged in and upon which I had set my heart to carry through.

As I told you just before leaving, it was as fully
completed as was possible without entering into commitments
which might have embarrassed me with my associates on returning.

You read the memorandum which covered the ground

pretty thoroughly.

In order to accomplish what was contem-

plated, it was necessary to obtain certain amendments to the
Federal Reserve Act.

These amendments have been prepared,

have been endorsed by the Federal Reserve Board, have been
submitted to Congress and read twice and are now in the bands
of the respective Committees of the Senate and the House,

where I am informed, they will undoubtedly receive favorable
consideration.

accomplishment.

That part of the work is well along toward

-2-

Hon. Walter H. Page.

The other part, which consists of obtaining consent of

the Federal Reserve Board and the Federal Reserve Banks, has not
yet been fully concluded but I am hopeful that it will after it
has been considered in all phases.
question of neutrality.

The real difficulty is the

Personally, I feel that objections on

that score are super-technical and unnecessary, but official
Washington is timid and it requires patience and tact to conclude
this part of the work.

I am hopeful that it will be concluded

successfully.

Now, about the other matter which we discussed so frequently and fully:

When I reached home, the situation in re-

gard to the Sussex had fully crystallized.

The reports had

been received here and you are, of course, acquainted with the
subsequent treatment of the subject.

I did not feel justified

or really disposed to make an attempt to have a talk with the

President while that matter was pending and after very thorough
consideration, I felt that the treatment of the Sussex incident
was so thoroughly satisfactory that there was not much more to
be said, so I have made no effort to see either the President
or Colonel House.

On the other hand, I met Phillips one day at the Met-

ropolitan Club in Washington and had quite a talk with him
about my trip abroad.

He was keenly interested and I finally

went into the matter quite thoroughly and it resulted in his
asking me to have a talk with Frank Polk about it.

Without

reviewing what I said to Polk, whom I know very well and admire

-3-

Hon. Walter H. Page.

very much, I told him exactly what I would have told the
President, had I seen the President immediately on returning.

He knows about everything that I know about the situ-

ation abroad so far as it could be outlined in an hours'
talk.

If anything further is wanted from me, I have told him

that everything I have, including my notes, are at the disposal of the Administration.

You know how strongly I feel in

regard to the position our own country should occupy.
to see two things done;

I want

First, representatives of this coun-

try joining hands with the other English-speaking people in
stating to the other nations of the world what must be the
conditions prevailing in future to bring about a cessation of,
or efforts to bring about a cessation of, war or excessive
armament in preparation for war.

This country as mediator can

accomplish nothing in that direction.

As party to a solemn

compact, it will throw the weight of a hundred million people

and all its unimpaired wealth and strength into the scales and
be the deciding and final factor.

No one or two nations nor,

in fact, all other nations will be able to overcome the strength
of the United States and Great Britain.

Sometimes one is influenced by atmosphere in forming
opinions.

I may have been influenced somewhat by the atmosphere

of England and France, but I have been home since the 15th of

April and have not changed my views one iota as to What should
be done and I only wish it were possible for me to do something

-4-

Hon. Walter H. Page.

more effective than just thinking about it, to lead matters in
this direction.

This letter, I hope you will understand is written
in entire confidence because I want to take you into the
secret of My awn affairs.

hot long after returning home,

various matter combined to bring about quite an upset in my
physical well-being, so that just now I am dictating this
letter from bed having been laid low first, by a recurrence

of an old trouble with my back which bothered me a good deal
two years ago, and second, by the doctors who tell me that I
have tuberculosis in my lungs and that within a few weeks, I

must pack off to Colorado and spend a year repairing the damage.

You can imagine that it is a very bitter pill.

Federal Reserve System is established.

The

All the functions

of the System are in operation with the sole exception of our

foreign business which I felt when I left London was well in
the way of solution.

We are now in a position to gradually

perfect the machinery to develop our information departments

and sit tight and await the time when we can protect the country against the financial consequences of this war, which are
bound to develop within a year or two.

My disappointment is that I will probably not be on
hand to help operate the machine when it does its work.

shall probably ask our directors to accept my resignation some
time within the next two weeks, and then spend the next year in

-5-

Hon. Walter H. Page.

the open air in Colorado, drinking milk, eating raw eggs and
It would do me a

ruminating over the sine of my past life.

great deal of good if I could get one nice long letter from
you and maybe some day when your work is done and you are look-

ing for some fishing or hunting or botanizing or any old thing
of the kind that might take you out to the Rocky Mountains, send
me a telegram and you will make me very happy by giving me a
chance to give you an outing.

I am not sure now what my ad-

dress will be but it will be known at the Federal Reserve Bank,

Equitable Building, New York, and if you reply through the
State Department, as I hope you will, they will forward it to
the bank and the bank will forward it to

promptly.

I should, also, say that the reason I did not write
sooner is because of the amount of traveling and work that was
,

thrown on me immediately on my return.

I have made three trips

to Washington, (one immediately on my return), two to Princeton,

one to Pottstown, one to Warwick and one to Garden City and now
while I am laid up in bed I am catching up on correspondence that
I should have attended to long ago.

I was terribly distressed by the reports of the loss of
the "Indefatigable" and the possibility of disaster to Symington.

Phillips telegraphed me from the State Department, however, that
he was safe and it gave me a very good day, notwithstanding my blues.
May I ask you to give me very best to Mrs. Page?

Ny good

mother is coming in to see me to-morrow from the country and I

-6-

Hon. Walter H. Page.

have to break the news to her about my own condition and it made
me think of Mrs. Page and how much she and my mother are alike.
With every good wish to yourself, I am,
Faithfully, your friend,

Honorable Walter Heinz Page,
American Embassy,
6 Grosvenor Square,
London, England.

ENJEASSY OF rah,
UNITED STATES OF AMERICA
LONDON

1916.

21 July

My dear Strong:

This is the most amazingly sad news and it stuns me.

It is a most unfortunate time for your great work to be interrupted ---just when the whole Reserve Bank scheme is getting
into shape both for its value at home and especially with reference to its big and important connections abroad.

Nobody

knows this latter group of problems and opportunities as you
know it.

But of even greater importance by far than these public matters is the personal and private misfortune to you &

your family and your friends the misfortune that you've now
got to take a year right out of your planned life.
all, I prefer to say apparent misfortune.
have a good deal of pride of plan.

But, after

You know we all

If we plan this or that

and something breaks our plan up, we're sure that the world
will all run wrong.
all.

But in most cases it doesn't run wrong at

I've known we've all known

so many cases of this

particular ailment that brought only an enforced rest for which
its victims were afterwards glad: they wouldn't have taken a
good rest under any other conditions.

I shall look upon you as

dry-docked for a year or less. [Mrs. Page lately went into a

hospital for a minor operation, and Symington wrote her a note-

-2-

Dry-

"my dear lady, how long have you got to be dry-docked?"1

docking may be tiresome for you as I fancy it is for the Iron
Duke

Jellicoe's flagship which is now getting mended; but

you'll get time to think out lots of things -- from the theory
of long golf-drives to the working of international exchange.

I'll bet you'll find more beauty in Colorado than otherwise
you'd ever have known was there.

I have my moods wherein I'd

give a great deal to be dry-docked for the next year.

I may be

mistaken, but a year of rest looks as enticing to me as the unattainable usually looks.
For this infernal slaughter may go on for another year.

Yet the feeling grows here that it Taend before another winter.

I say f_lp_pAme., for nobody has a conviction.

The Allies now have the inning:

way to reason it out.
no doubt about that.

There's no
there's

Not only have they the military advantage,

as things are now going, but they are exerting an embarrassing
economic pressure also.

The coming harvest will relieve that

in some respects but not the meat-want.

And, of course, the

Germans may again have some pieces of military good-fortune.

But the Allies seem now to have guns and munitions enough and
they seem to have learned this deadly game; and it does look as
If the war had entered its last phase.
I'll go to Colorado next year if I get half a chance
you may be very sure.

In the meantime I hope for a letter from

you whenever you feel like writing.

May the mountains and the

-3air and your own sound philosophic temper work rapidly for your
recovery!

Mrs. Page asks me to send you her regards & most
earnest good wishes.

Sincerely Your friend,
[Walter H. Page]

Estes Park, Colo., July 26,

Honorable Walter H. Page,
Embassy of the United States of America,
6 Grosvenor Gardens,
London, England.
My dear Ambassador Page:

Your note of June 22nd, introducing Mr. Walker of the
Manchester Guardian, has been forwarded to me here and by this
time you have doubtless received my letter explaining my enforced absence from the office for some months.

It is a great disappointment not to be able to do
something to promote Mr. Walker's mission.

my associates at

the office will, I am sure, do everything possible in my absence.

I notice by the New York papers that you and MIT. Page
expect to make a short visit to this country.

I am terribly

disappointed that it will not afford me opportunity to see you
and return the hospitality which you extended to me so generously while I was in London.

It is quite probable that as soon as

I recover my health I ehall make another trip to London to complete the mission which took me there earlier this year, and I
sincerely trust that you will be there at that time.

With warmest regards to yourself and to Mrs. Page, I
beg to remain,

Sincerely yours,

1916.

Office of

Third Assistant Secretary
DEPARTMENT OF STATE
WASBINGTON

July 31, 1916.
Dear Mr. Strong:

I have your letter of the 26th instant inclosing
a note addressed to Ambassador Page, who is now en route
to the United States.

In reply I hasten to advise you

that the communication is being held pending his arrival
in Washington.

With kindest regards,
Sincerely yours,

[William Phillips]

Benjamin Strong, Esq.,
Estes Park, Colorado.

Denver, Colorado,
January 2, 1917.

Dear Me. Page:

This letter will be presented to you by a warm friend
of mine, Mr. Charles A. Johnson of Denver, who is on his way to

Paris, accompanied by his sister Mrs. Clifford Brigham, both
having engaged themselves for certain war relief work in Paris.

I was anxious that Mr. Johnson have opportunity to meet
you on his way through to take up his work and I take this occasion to send you by him my warmest regards and good wishes for
the New Year.

May I ask you to convey the same to Mrs. Page.
Very sincerely yours,

Hon. W. H. Page,
U. S. Ambassador,
6 Grosvenor Gardens',
London, England.

Bs/cc

Denver, Colorado,
January 2, 1917.

Dear Mr. Page:

With this I am enclosing copy of a letter of introduction which I have taken the liberty of giving to my friend,
Mr. Charles A. Johnson of Denver, which explains itself.

Mr.

Johnson is a man of considerable means and a leading citizen
of this city, and he and his sister are both deeply interested
in SOMB relief work which they are undertaking in Paris.

I hope that I am not encroaching on your valuable

time by giving Mr. Johnson this letter of introduction, but
I feel sure you will be very glad to meet him and if you are
in any way able to facilitate his trip, I will greatly appre-

ciate it.

With warmest regards and best wishes for the New
Year, I am,
Very truly yours,

Hon. W. H. Page,
U. S. Ambassador,
6 Grosvenor Gardens,
London, England.

Enc.

EMBASSY OF THE
UhITED STATES OF AMERICA
London, May 2,

1917.

Dear Mr. Strong:

The chief thing that delights me in the letter
that I have just had the pleasure to receive from you --

which has been a very long time in coming -- is the good
news that you are thinking of coming East in June.

I hope

you are not leaving Colorado prematurely -- in other words,
I hope that you have made entirely satisfactory progress,

and are over the worst of this great misfortune that overtook you.

Of course I hope, if you are physically able, that
you will be sent over here by our Government on the errand
that you mention.

It would be illogical to send anybody

else if you can come, and I needn't tell you what personal
pleasure I should get out of your visit if you are able to
come.

I can't undertake to write you about the rush of
recent events here nor how much we are pleased.

The recep-

tion that the English have given us into the war is everything that we could have asked both in fact and in spirit,
and we have come in just in the nick of time.

I have quite

a definite feeling that we will really be able to render
notable service.

SOMB

Of course the first thing that one thinks

-2-

of is the pleasure that it will afford us to give real help
in this great crisis in the world's history; but next to that,

and even of greater importance to us I often think, will be
the effect that coming into the war and conducting ourselves

worthily will have upon our own internal affairs, upon our
character, and upon our breaking away from our old policy of
isolation.

We are most jubilant here and I write every op-

portunity that I can make the great gratification that it
gives us to see how our Government and people have really entered into the spirit of the occasion.

It is a great thing

to be alive in these notable days and I have a fuller and
fuller sense of that every week as the progress of events
moves forward.

I do most sincerely hope that you are yourself again
and that we shall soon have the pleasure to see you here.
may be sure of a hearty welcome from all your friends.
Believe me,

With congratulations,
Most heartily yours,
[Walter H. Page]

Benjamin Strong, Jr., Esq.,
4100 Montview Boulevard,
Denver,
Colorado,

U. S. A.

You

EMBASSY OF TEE
UNITED STATES OF AMERICA
London, September

7, 1917.

My dear Strong,

It was exceedingly pleasant to get your letter from
New York some eight or ten days ago telling me about the way
the Liberty Loan was raised, and holding out some expectation
that you might make another trip here at a later time.
heartily hope that this will come off.

As you know before you

receive this, this Government has sent Lord Reading, in addition to its other representatives in the United States, to
carry on conferences with our financial authorities about fiLord Read-

nancial arrangements between the two Governments.
ing I think you know.

Of course he goes with full authority
I have been

and he is the Lord Chief Justice of this Kingdom.

informed of the several sharp corners that this Government has

had to turn in connection with financial arrangements with our
Government but I think, so far as my

information

now goes,

that the thing will work out all right.
But I am not writing you a letter to give you information about a subject about which you know more than I.

I am

merely writing to tell you the pleasure your letter gave me and
to express the earnest hope that since you are back in New York
you are fast recovering from your physical trouble.
Benjamin Strong, Esq.,
Federal Reserve Bank,
New York City, U.S.A.

-2-

We are still having abnormally busy days here and we

are trying to do all we can to arrange the details of cooperation which of course come without end.

Looked at from this

point of view and at this distance, the work that our Government is doing seems simply colossal.

The details in which

full cooperation have not yet been secured are mere details

and count for little in comparison with the gigantic transactions which you are all doing in America -- the Government
and the public alike.

I dare say you know, but it gives me great

pleasure to tell of the deep appreciation of the Government and
the people here of all this help we are trying to render.
are in just the mood we would have them in.

They

Heaven knows how

long before we can get this job finished, for it is yet an
awful and a terrible one, but about the finishing of it there
is not the slightest doubt in the world.

my hope is, and

everybody's hope is, that we can get it done without a colossal
list of casualties.

I sincerely hope you will soon be over and I need not
tell you what a hearty welcome you will get.

With all good

wishes and with Mrs. Page's kindest regards, I am
Very sincerely yours,
[Walter H. Page]

January 21, 1918.

Dear Sir:

This note will be presented to you by my friend, Mr.

John T. Pratt, who is just leaving this country to accept a
position of importance in the American Red Cross, Field
Service, in France.
I hope that Mr. Pratt's duties will permit 'him op-

portunity to present this letter to you, as he is a very warm
friend of mine

and I am sure you will be glad to know him.

Anything that you can do to facilitate his work or
'

his trip will be greatly appreciated by me.

Faithfully yours,

Hon. Walter H. Page,
American Ambassador,
London, England.

BS/HAB

January 21,

1918.

Dear Mr. Page:

I have taken the liberty of giving a note of intro-

duction addressed to you, to my friend, W. John T. Pratt,
who is sailing for France this week.

Mr. Pratt is a well-known New Yorker, the son of
Mr. Charles Pratt whom you doubtless know as one time connected with the Standard Oil Company.

Since the outbreak of

the war he has been engaged in some important work in the
Department of Labor, in Washington, and has now resigned to
take up work in France.

He is a very warm personal friend of mine and a delightful fellow in every way, and I hope his engagements
abroad permit him opportunity to meet you.

Anything that

you can do to facilitate the objects of his trip will be
warmly appreciated.

With kindest remembrances for the New Year, and
thanking you in advance, I beg to remain,
Sincerely yours,

Hon.Walter H.Page,
American Ambassador,
London, England.
BS /LRR

PERSOAL AND COILFIDYNTIAL.

June 9th, 1916.
My dear Ambassador Page:
I have wanted for a

long

time to write you a good

newsy letter and have particularly wanted to tell you what
a great privilege it was to have so many enjoyable visits
with you and lirs. Page while I was in London.

It did me

a lot of good and helped tremendously to complete
I was engaged in and upon

which I

the work

had set my heart to car-

ry through.
As I told you just before leaving, it was as fully
comuleted as was possible without entering into commitments

which might have embarrassed me with my associates on returning.

You read the memorandum which covered the ground

pretty thoroughly.

In order to accomplish what was contem-

plated, it was necessary to obtain certain amendments to the

Federal Reserve Act. _These amendments have

have been endorsed by
submitted to

the Federal Reserve

Congress and read trice and

of the respective

Committees of

been prepared,

Board, have

been

are now in the hands

the Senate and the House,

where I am Informed, they will undoubtedly receive favorable
consideration.

accomplishment.

That

part of the work is well along toward

-2-

Hon. Walter H. Page.

The other part, which *consists of

the Federal Reserve Board and

the

obtaining

consent of

Federal Reserve Banks, has not

yet been fully concluded but I am hopeful that it will after it

has been considered in all phases. The realdifficulty is
question of neutrality.

Personally, I

feel that

the

objections on

that score are super-technical and unnecessary, but official
Washington is timid and it requires
this part of the work.

patience and tact to conclude

I am hopeful that it will be concluded

successfully.

Now, about the other

matter which we discussed so fre-

fully: When I reached home, the situation in regard to the Sussex had fully crystallized. The reports had
quently and

been received here and you are, of course,
subsequent treatment of the

subject.

or really disposed to make an

acquainted with the

I did not feel justified

attempt to have

President while that matter was

pending and

consideration, I felt that the treatment of

a talk

with

the

after very thorough

the

Sussex incident

was so thoroughly satisfactory that

there was not much more to

be said, so I have made no effort to

see either the President

or Colonel House.
On the other hand, I

met Phillips

one day at the Met-

ropolitan Club in Washington and had quite a talk with him
about my trip abroad.

He was keenly interested and I finally

went into the natter quite thoroughly and it resulted in his
asking me to have a talk with Frank Polk about it.

reviewing what I said to Polk, whom I

Without

know very well and admire

Hon. Walter H. Page.

-3very much, I told him exactly

what I

would have told the

President, had I seen the President immediately on returning.

He knows about everything that I know about the situ-

ation abroad so far as it could be outlined in an hours'
talk.

If anything further

is wanted from me, I

that everything I have, including

my notes,

have told him

are at the dis-

posal of the Administration. You know how- strongly I feel in
regard to the position our own country should occupy.
to see two things done:

want

First, representatives of this coun-

try joining hands with the other English-speaking people in
stating to the other nations of the world what must be the
conditions prevailing in future to bring about a cessation of,

or efforts

to bring about a cessation of, war or excessive

armament in preparation for war.

accomplish

nothing in

This country as mediator can

that direction.

compact, it will throw the

weight

As party to a

solemn

of a hundred million people

and all its unimpaired wealth and strength into the scales and
be

the deciding

in fact, all

and final factor.

other nations will

No one or two nations nor,

be able to overcome the strength

of the United States and Great Britain.

Sometimes one is influenced by atmosphere in forming
opinions.

I may have been influenced somewhat by the

atmosphere

of England and France, but I have been home since the 15th of

April and have not

changed my views one iota as to vrhat

should

be done and I only wish it were possible for me to do something

Hon. Walter H. Page.

-4-

more effective than just thinking about it, to lead matters in
r

this direction.

This letter, I hope you will understand is written

in entire confidence because I want to take you into the
Not long after returning home,

secret of my own affairs.

various matter combined

to bring about quite an upset in my

just

physical well-being, so that

now I am dictating this

letter from bed having been laid low first,

bothered me a good deal

of an old trouble with my back which

the doctors who

tell me that I

lungs and that within

a few weeks, I

two years ago, and second, by
have tuberculosis in my

by a recurrence

must pack off to Colorado and spend a year repairing the damage.

You can imagine that it is a very bitter pill.

Federal Reserve System is established.
'

The

All the functions

of the System are in operation with the sole exception of our

foreign

business which I

the way of solution.

felt when I left London was well in

We are now in a position

perfect the machinery to

develop our

and sit tight and await the

try against the financial
bound to develop

two.

that I will probably not

within

the next two

be on

machine when it does its work.

shall probably ask our directors to
time

can protect the coun-

consequences of this war, which are

Ey disappointment is

the

information departments

time when we

within a year or

hand to help operate

to gradually

accept my

resignation some

weeks, and then spend the

next year in

-5-

Hon. Walter H. Page.

the open air in Colorado, drinking milk, eating raw eggs and
ruminating over the sins of my past

life. It would do me a

great deal of good if I could get one

nice

long letter from

you and maybe some day when your work is done

and you are look-

ing for some fishing or hunting or botanizing

or any old thing

of the kind that night take you out to the Rocky Mbuntains, send
me a telegram and you will

make me very happy by giving me a

chance to give you an outing.

dress will be but it will

Equitable

I am not sure now

what my ad-

be known at the Federal Reserve Bank,

Building, New York, and if you reply through the

State Department, as I hope you will, they will
the bank and the bank will

forward

It to me promptly.

I should, also, say that the reason I
sooner is because of the amount of

forward it to

did not write

traveling and work that was

thrown on me immediately on my return.

have

made three trips

to Washington, (one immediately on.my return), two to
one to

Princeton,

Pottstown, one to Warwick .and one to Garden City and now

while I am laid up in bed I am catching 111)

I should have attended

on correspondence

that

to long ago.

I was terribly distressed by the reports of the loss of
the "Indefatigable" and the possibility of disaster to
Phillips telegraphed me
he was

safe

from the State Department,

however,

that

and it gave me a very good day, notwithstanding my blues.

May I ask you to give
mother is coming in to

Symington.

very best to

Mrs. Page? Ey good

see me to-morrow from the country and I

-6-

Hon. Walter H. Page.

have to break the news to her about my own condition and it made
me think of Mrs. Page and how much she and my mother are alike.

With every good wish to yourself, I am,

Faithfully, your friend,
Honorable Walter Heinz Page,
American Embassy,

6 Grosvenor Square,
London, England.

EMBASSY OF TEE
UNITED STATES OF AMERICA
LONDON
21 July 1916.

My dear Strong:

This is. the most amazingly sad news and it stuns me.
It is a most unfortunate time for your great work to be inter-

runted just when the whole Reserve
Into shape both for its

Bank scheme is getting

value at home and especially with re-

ference to its big and impo'rtant connections abroad.

Nobody

knows this latter group of problems and opportunities as you
know it.
But of even greater importance by far than these public matters is the personal and private 'misfortune to you &

your family and your
got to take a year

all, I prefer

friends the misfortune

right out of your

to say

and something breaks our plan up,
will all run wrong.
all.

planned life.

apparent misfortune.

have a good deal of pride of plan.

that you've now
But, after

You know we all

If we plan this or

that

we're sure that the world

But in most cases it doesn't run wrong at

I've known --we've all known -- so many cases of this

particular ailment that brought only

an enforced

rest for which

Its vie-tiro were afterwards glad: they wouldn't have

good rest under any other conditions.

dry-docked for

taken a

I shall look upon you as

a year or less. Dirs. Page lately went Into a

hospital for a minor operation, and Symington wrote her a note-

-2-

"my dear lady, how long have you got to,be dry-docked?"]

Dry-

docking may be tiresome for you as I fancy it is for the iron

Duke Jellicoe's flagship which is now getting mended; but
you'll get time to think out lots of things -- from the theory
of long golf-driVes to the working of international exchange.

I'll bet you'll find more beauty in Colorado than otherwise
you'd ever

have known was there.

have my moods wherein I'd

give a great deal to be

dry-docked for

mistaken, but a year of

rest looks as enticing to me as the un-

the next year.

I may be

attainable usually looks.
For this infernal

slaughter may

go on for another

year.

Yet the feeling grows here that it mav end before another winter.

I say feelirlgo for nobody has a conviction.

way to reason it out.

no doubt about

that.

There's no

The Allies now have the inning:

there's

hot only have they the military advantage,

as things are now going, but they are exerting an embarrassing

economic pressure also.

The coming harvest will relieve that

in some respects but not the meat-want. And, of course, the
Germans may again have. same pieces of military good-fortune.

But the Allies seem now
they seem to

to have guns and munitions enough and

have learned

If the war had entered

this deadly game; and it does look as

its last phase.

I'll go to Colorado next year if I get half
you may be very sure.

you whenever you

a chance

In.the meantime I hope for a letter from

feel like writing.

May the mountains and the

-3-

air and your own sound philosophic temper work rapidly for your
recovery!

Mrs. Page asks me to send you her regards & most
earnest good wishes.

Sineerely Your friend,
[Walter H. Page]

26, 1916.

Estes Park, Colo., July

Honorable Walter H. Page,
Embassy of the United States of America,
6 Grosvenor Gardens,
London, England.
My dear Ambassador Page:

Your note of Jane 22nd, introducing Mr. Walker of the
Nhnchester Guardian, has been forwarded to me here and by this
time you have doubtless received my letter explaining my enforced absence from the office for some months.

It is a great disappointment not to be able to do
something to promote Mr. Walker's mission.

my associates at

the office will, I am sure, do everything possible in my absence.

I notice by the New York papers that you and Ws. Page
expect to make a short visit to this country.

I am terribly

disappointed that it will not afford me opportunity to see you
and return the hospitality which you extended to me so generously while I was in London.

It is quite probable that as soon as

I recover my health I,shall make another trip to London to com-

plete the mission which took me there earlier this year, and I
sincerely trust that you will be there at that time.

With warmest regards to yourself and to Mrs. Page, I
beg to remain,

Sincerely yours,

-4°

Office of
Third Assistant Secretary
DEPARTIEhT OF STATE
WASHITCTON
July 31, 1516.

Dear Mx.

Strong:
I have your letter of the 26th instant inclosing

a note addressed to Ambassador Page, who is now en route
to the

United

States.

In reply I hasten to advise you

that the communication ts being held pending his arrival
In Washington.

With kindest regards,
Sincerely yours,

[William Phillips]

Benjamin Strong, Esq.,
Estes Park, Colorado.

/j242'11

Denver, Colorado,
January 2, 1917.

Dear Mr. Page:
This letter will be presented to you by a warm friend
of mine, Mr.

Charles A. Johnson of Denver, who is on his way to

Paris, accompanied by his sister Mrs. Clifford Brigham, both
having

engaged themselves

for

certain war relief work in Paris.

I was anxious that Mr. Johnson have opportunity to meet
you on his way through to take up his work and I take this occasion to send you by him my warmest regards and good wishes for

the New Year.

Lay I ask you to convey the same to Mrs. Page.
.Very sincerely yours,

Hon. W. H. Page,
U. S. Ambassador,
6 Grosvenor Gardens,
London, England.

(79.;:47;"/

Denver, Colorado,

January 2,

1917.

Dear Etc. Page:

With this I am enclosing copy of a letter of introduction which I have taken the liberty of giving to my friend,
Mr. Charles A.

Johnson of Denver, which explains itself.

Mr.

Johnson is a man of considerable means and a leading citizen
of this city, and he and his sister are

in some relief work which

both deeply interested

they are undertaking in Paris.

I hope that I am not encroaching on your

valuable

time by giving Mr. Johnson this letter of introduction, but
I feel sure you will be very glad to meet him and if you are
In any way able

to facilitate his trip, I will greatly appre-

ciate it.

With warmest regards and best wishes for the
Year, I am,

Very truly yours,
Hon, W. H. Page,
U. S. Ambassador,
6 Grosvenor Gardens,
London, England.

Enc.

hew

Denver, Colorado,

April 6, 1917.
Dear Mr. Page:

I !cannot refrain from sending you a few lines of felicitation
and to express the great happiness that I am just now feeling that
our country is at last taking its place alongside of the champions
of democracy.

To m7 mind, this is the great

period in American history.

matter what sacrifices we may be obliged to make, they will be trifling
compared with those which you and I have personally witnessed abroad and
how great indeed will be the benefit.

The arrangements started when

I was in London with the Bank of

England are not only very nearly completed with the Bank of England but
well along towards completion with the Bank of France.

Naturally, i am

most anxious to be on hand to comriete this work and to serve our
ment in any other way possible

abroad.

govern-

I had planned to return Aast by

the first of June, but have made suggestions to Washington, urging that
if any special representation is to be arranged abroad

connection with

financial matters, that I be given an oppnrtunity to look after the

bank-

ing and, if possible. I do not know what will becone of it, but you can
understand sr; eagerness to undertake the work.

Won't you give my kindest regards to Lars. Page and my warmest good

wishes to yourself.
Very sincerely yours,

Hon. Walter H. Pa_g_ssee.

U. S. Ambassador,
6 Grosvenor Gardens,
London, England.

August 13, 1917.

Dear Mr.

Page:
Two days of most enjoyable visits with Comander Symington

suggested that it had been a long time since I last wrote you and so
here is just a bit of news from home.

Just now things are fairly quiet with us, although prepara-

tion for the next loan campaign brought me back to New York from Denver
for a few months, work after having spent the winter out there with
two short visits to Now York. That wonderful climate and a fairly
rigorous discipline exercised by the doctor over my behavior and plenty
of fresh air, have really made a wonderful change in my health, xrui

while I cannot say as yet I am completely cured, I am getting near'
enough to the mark to take the risk of working in New York when occa-

require it.
Just now, the thing that is

sion seems to

uppermost in all our minds is the
The first Liberty Loan was a success beyond all
war and war finance.
expectations
total subscriptions aggregating
0.,187,000,000, aad besides that we had in reserve ;,300,000,000 of subscriptions for emergency use in case the rest of the country was short.
The total subscription was ,;;,3,035,000,000 and I am satisfied the number
of subscribers exceeded 4,000,000.
This record is unexampled at the
outset of our participation in the war and, of course, endourages everybody in proportion.

in this district, our

You will be interested as an indication of the way the work
was done in looking over the enclosed roster of the organization in
this
This covered only the committees in New YOrk City,
these being supplemented by some htundrede of committees in every city
and town in the Second Federal Reserve District.
with variations,
the same organizations were developed in each of the other eleven districts and new, with more time to prepare, we expect for the next loan

district.

to have a nationwide machine which will have an absolutely irresistible
sweep.
Of course, you know all about the conclusion of our arrangememorandum which I showed you in
we eventually concluded matters,
but now the agreement has been executed and we have
action - one of some magnitude.
it is
in line With the sentiments which you expressed in a recent address and which I read with a

ment with the Bank of England. The
London was greatly elaborated before

all

hed our first trans-

To Ambassador page.

8/10/171

These two nations must get
great deal of interest and sympathy.
It is all easy when we are fighting a common
closer together.
enemy, but we must not lot trade jealousies and a competitive spirit,
a characteristic of 2nglis1men mrd imericans, effect a reaction when
the wbr is over and the work of repair and reconstruction must be
undertaken.

Bara of France have not yet been
do not speak the same language, nor

Our negotiations with the

brought to a conclusion.
think along quite the same

lines, but I have strong hopes that we
can conclude an arrangement similar to the 7nglish one, and if necessary will make another trip abroad for the purpose.
be to see you and Mrs.
small part of the pleasure of the
Page agaia and I hope that we can have some visits together over aunday morning breakfast and a cigar.

trip will

If I do, no

I wish you would give Mrs. Page my warmest regards and the
same to your good self.

Faithfully yours,

Honorable Walter H. Page,
American Embassy,
3, Greavernor Square,
London, England.

August 13, 1917.

Dear Mr. Page:

Two days of most enjoyable visits with Commander Symington
suggested that it had been a long time since I last wrote you and so
here is just a bit of news from home.

fairly

Just now things are
quiet with us, although preparation for the next loan campaign brought me back to New York from Denver
for a few months, work after having spent the winter out there with
two short visits to New York.
That wonderful climate and a fairly
rigorous discipline exercised by the doctor over my behavior and plenty
of freak air, have really made a wonderful change in my health, and
while I cannot say as yot I am completely cured, I am getting near
enough to the mark to take the risk of working in New York when occasion seems to require it.
Just now, the thing that is uppermost in all our minds is the
war and war finance.
The first Liberty Loan was a success beyond all
.pectations in this district, our total subscriptions aggregating
1,187,000,000, and besides that we had in reserve ,300,000,000 of subscriptions for emergency use in case the rest of the country was short.
The total subscription was v3,035,000,000 and I am satisfied the number
of subscribers exceeded 4,000,000.
This record is unexampled at the
outset of our participation in the war and, of course, endouraaes everybody in proportion.
You will be interested as an indication of the way the work
was done in looking over the enclosed roster of the organization in
this district.
This covered only the committees in New York City,
these being supplemented by some hundreds of committees in every city
and town in the Second Federal Reserve District.
With variations,
the same organizations were developed in each of the other eleven districts and now, with more time to prepare, we expect for the next loan
to have a nationwide machine which will have an absolutely irresistible
sweep.

Of course, you know all about the conclusion of our arrangement with the Bank of England.
The memorandum which I showed you in
London was greatly elaborated before we eventually concluded matters,
but now the agreement has been executed amd we have had our first transaction - one of some magnitude.
It is all in line with the sentiments which you expressed in a recent address and which I read with a

To Ambassador Page.

3/13/17.

These two nations must get
great deal of interest and sympathy.
It is all easy when we are fighting a common
closer together.
enemy, but we mast not let trade jealousies and a competitive spirit,
a characteristic of Englishmen and Americans, effect a reaction when
the war is over and the work of repair and reconstruction must be
undertaken.
Our negotiations with the Bank of France have not yet been
We do not speak the same language, nor
brought to a conclusion.
same
lines, but I have strong hopes that we
the
think along quite
can conclude an arrengement similar to the English one, and if necessary will make another trip abroad for the purpose. If I do, no
small part of the pleasure of the trip will be to see you and Mrs.
Page again and I hope that we can have some visits together over Sunday morning breakfast and a cigar.
I wish you would give Mrs. Page my warmest regards and the
to your good self.
Faithfully yours,

Honorable Walter H. Page,

American Embassy,
3, Gresvernor Square,
London, England.

EMBASSY OF THE
UNITED STATES OF ANERICA
London, September

7, 1917.

My dear Strong,

It was exceedingly

pleasant to get your

letter from

New York some eight or ten days ago telling me about the way
the Liberty Loan was raised, and holding out some expectation
that you might make another trip here at a later time.

heartily hope that this will come off.

As you know before you

receive this, this Government has sent Lord Reading, in addition to its other representatives in the United

States,

carry on conferences with our financial authorities about financial arrangements between the two Governments.

Lord Read-

ing I think you know.

Of course he goes with full authority

and he is the Lord Chief Justice of this Kingdom.

I have been

informed of the several sharp corners that this Government has
had to turn in connection with financial arrangements with our
Government but I think, so far as my information now goes,
that the thing will work out all right.
But I am not writing you a letter to give you information about a subject about which you know more than I.

I am

C.,

merely writing to tell you the pleasure your letter gave inc and

to express the earnest hope that since you are back in Kew York
you are fast recovering from your physical trouble.
Benjamin Strong, Esq.,
Federal Reserve Bank,
New York City, U.S.A.

We are still having abnormally busy days here and we

are trying to do all we can to arrange the details of cooperaLooked at from this

tion which of course come without end.

point of view and at this distance, the work that our Government is doing seems simply colossal.

The details in which

.full cooperation have not yet been secured are mere details

and count for little in comparison with the gigantic trans-

actions which you are all doing in America -- the Government
and the public alike.

I dare say you know, but, it gives me great

pleasure to tell of the deep appreciation of the Government and
the people here of all this help we are trying to render.
are in just the mood we would have them in.

They

Heaven knows how

long before we can get this job finished, for it is yet an
awful and a terrible one, but about the finishing of it there
is not the slightest' doubt in the world.

Ny hope is, and

everybody's hope is, that we can get it done without a colossal
list of casualties.

I sincerely hope you will soon be over and I need not
tell you what a hearty welcome you will get.

With all good

wishes and with Mrs. Page's kindest regards, I am
Very sincerely yours,
[Walter H. Page]

MASSY OF TEE
MITED STATES OF ARFEICA
London, l'ay 2, 1917.

Dear Me.

Strong:

The chief thing that delights me in the letter.
that I have just had the pleasure to receiVe from you --

which has

been a very long time in coming -- is the good

news that you are thinking of coming East in June. I hope
you are not

leaving Colorado prematurely -- in other words,

I hope that you have rade entirely satisfactory progress,
and are over the

worst

of this great misfortune that over-

took you.

Of course I hope, if
you will be

you are

physically able, that

sent over here by our Government on the errand

that you mention.

It would be illogical to send anybody

else if you can come, and I needn't tell you what personal

pleasure I should get out of your visit if you are

able

come.
I can't undertake to
recent
tion

write you about

the rush of

events here nor how mach we are pleased.

The recep-

that the English have given us into the war is every-

thing that we could have asked both in fact and in spirit,
and we have come in just in the nick of time. I have quite

a definite feeling

that we

rill

really be able to render sole

notable service. Of coarse the first thing

that one thinks

of is the pleasure that it will afford 1K

;o give real help

in this great crisis in the world's history; but next to that,
.

and even of greater importance to us I often think, will be
the effect that coming into the war and conducting ourselves
worthily will have upon our own internal affairs, upon our
character, and upon our breaking away from our old policy of
isolation.

We are most jubilant here and I write every op-

portunity that I can make the

great gratification that it

gives Us to see how. our Government and people have really entered into the spirit of the occasion.

It is a great thing

to be alive in these notable days and I have a fuller and
fuller sense of that every week as the progress of events
moves forward.

I do most sincerely hope that you are yourself again
and that we shall soon have the pleasure to see you here.

may be sure of a hearty welcome from all your

friends.

Believe me,
With congratulations,
Most heartily yours,

[Walter H. Page]

Benjamin Strong, Jr., Esq.,

4100 Montview

Boulevard,

ljenver,

'Colorado,

U. S. A.

You

January 21, 1918.

Dear Sir:

This note will be presented to you by my friend., Ni'.

John T. Pratt, who is just leaving this country to accept a
position of importance in he American Red Cross, Field
Service, in France.

I hope that It'. Pratt's duties will permit him opportunity to present this letter to you, as he is a very warm
friend of mine and I am sure you will be glad to know him.

Anything that you can do to facilitate his work or
his trip will be greatly appreciated by me.
Faithfully yours,

Hon. Walter E. Page,
American Ambassador,

London, England.

ES/EAB

January 21,

1918.

Dear Mr. Page:

I have taken the liberty of giving a 1161e of introduction addressed to you, to my friend, Mr. John T. Pratt,
who is sailing for France this week.
Mr. Pratt is a well-known New Yorker, the son of
Mr. Charles Pratt whom you doubtless know as one time connected with the Standard Oil Company.

Since the outbreak of

the war he has been engaged in some important work in the

Department of Labor, in Washington, and has now resigned to
take up work in France.

Ee is a very warm personal friend of mine and a delightful fellow in every way, and I hope his engagements
abroad permit him opportunity to meet you.

you can do to

Anything that

facilitate the objects of his trip will be

warmly appreciated.

With kindest remembrances for the rew Year, and
`.

thanking you in advance, I beg to remain,
Sincerely yours,

Eon.Walter H.Page,
American Ambassador,
London, England.
B.3/L-RE

1)7--

July 23, A919.
FREDERICK STERLING

American Embassy, Paris

Arrive in Paris Sunday stop Can you and Nemo arrange accommodations
at Ritz for myseff and secretary stop Please telegraph as promptly as
possible care Morgan Grenfell (9, Company, twenty two Ola Broad street
London

BENJAMIN STRONG

July 15, 1919.
FREDERTOK STERLING,

Many thank.

American EMbassy, Paris, France

Prepare :or an Old Home Week.
STRONG

Benjamin Strong, c/o Morgan, &rental' & Co.,

12 Old Broad street, London, Engl..nd.

July 10, 1924.

Dear Fred:

I have taken the liberty of giving a note of introduction to my
friend and associate, Mr. Pierre Jay,

Me is chairman of our board of

directors and Federal Reserve Agent, and we have been associated together

since the organization of thie bank.

You will find him a most delightful

fellow,and I hope that you and he have opportunity for e visit together.
He would like to meet the Ambassador, and I have taken the liberty of

giving him a letter also to him.

Mr. Jay I believe will have his wife

and two daughters with him.

It was a great regret to me that your visit to Paris was so much
disturbed by my illness there, and I especially regretted not being able
to see more of you and Dorothy.

Won't you please give her my love. / hope

that you both keep well and as happy as you looked the last time I saw you.
With warmest regards, I am,

Faithfully yours,
Mr. Frederick Sterling,
American fimbasey,
London, Rnglend.
en c,

July 10, 1924.

Dear Fred:

This note will It presented to you by my frieud and associate,
Yr. Pierre Jay.,

I Lave taken the liberty of giving him a note to the

Ambassador us he mould like to haTe the privilege of meeting tin, and

an. sure: that Yr. Kellogz will to zlad tc bear somethins of recent :Jews
from he

Tith kindeet regards,believe me,
Tours sincerely,

Yr. Frederick Sterling,
American Embaesy,

London, England.

EMBASSY OF THE
UNITED STATES OF AMERICA
London, August 29, 1925.
CONFIDENTIAL.

Dear Ben:

I have not been able to reach the
..zibassador as yet by telephone with regard to an

appointment for Wednesday, but I shall inform you
of this on Monday at the latest.

We have received a telegraphic instruction from Washington directing us to obtain
the fullest available information possible with
regard to the tentative agreement made between
Churchill and Caillaux on the settlement
French Debt to Great Britain.

the

In particular, we

are asked to' obtain discreetly information as to

how the total figures were arrived at, the schedule
of payments and what political considerations were
involved.

Also, as to the so called Commercial

Debt, what is the amount, how much has been paid
upon it, and how, when and at what rate it will be
finally liquidated; furthermore, as to the transaction between the Bank of France and the Bank of
England, what is the basis of the indebtedness,

amounts already paid or to be paid, dates of payment, and interest rates thereon.

We/

- 2 -

We have already transmitted to Washington a
good deal of this information by yesterday's mail
but I would ask, if it is not too much trouble, that
you obtain what data you can on this subject and
write me on Monday night.

Do not bother, however,

if you are too busy.
Yours as ever,

Benjamin Strong, Esquire,
Cio The Rt. Hon. Montagu Norman,
Governor, Bank of England.
London.

Caillaux's first position was to make payments entirely conditioned upon the product of the Dawes Plan.

His definite offer was an

annuity of 10,000,000 steraing for sixty-two years.

The British position

was nearer 15,000,000, or 16,000,000 sterling, and, finally, 12,500,000
sterling was tentatively agreed upon.

Caillaux strongly emphasized transfer

difficulties, and insisted that it was the controlling factor.

His proposal

was that the transfer question be refereed when difficulties arose, suggesting
the Governor of the Bank of England, the Governor of the Bank of France, and
the President of the League of Nations as referees.

The question could not

be settled and was left open.

There has been a strong British point of view that the terms
of the Balfour note should control.

The Treasury seems to have taken the

view that a settlement was essential, even it it did not produce 100% of
the Balfour note proposal.

The figure arrived at was, basicly, a lump

sum compromise.

The payments, until 1930, in general are understood to be
scaled, but the exact details have not been agreed upon.

The idea is to

start at, say, 2,000,000 sterling and increase the next year to 4,000,000
and so on, by 2,000,000 a year cr thereabouts, the rate of increase to be
dependent somewhat upon the rate at which actual payments are made by the
Bank of Fraice on the Bank of England loan.
The cash advanced by the British was 470,000,000 sterling in
round figures.

Interest has increased it to 620,000,000 sterling;

interest

being added to capital from time to time at the Bank of England discount rate,
whatever that might be.

The gold delivered by the Bank of France in connection

with this advance, roughly I believe 50,000,000 sterling, has heretofore been
carried by the British as a loan of gold.

Interest has been paid on it, and

credited on the French obligation, being merely a bookkeeping entry, and notes
:get

taken from the French for the/accrued interest.

-2-

The new arrangement contemplates that a non-interest bearing note
will be given representing the gold amount, payable at the end of sixty-two
years;

and if this is repaid, then the French will get back the gold.

This

is eye wash to save the statement of the Bank of France.
The British would have preferred to sit down with us and deal with
the French together.

They did not consider that any settlement with an

insolvent debtor, or one of doubtful solvency, could be tolerated which did not
result in payments being pan i passu.

As that was not possible, however, they

have done the best they could, and strongly hope that the American settlement
can be along some similar lines;

with due regard to adjustment of details and

less important matters, so long as the basic principle of this settlement is
observed.

Thcy would roughly estimate that it means the repayment of

capital with not over 2% simple interest.

They think the French capable of making these payments, but admit
that there is some uncertainty.

And the question of capacity of transfer has

got to be examined and dealt with later.

There would be little disagreement

that, if this settlement does not result in a settlement in America, and, following that, a monetary reorganization, there is still danger of a breakdown of
the franc which would make the present settlement ineffective and put the whole
matter back in its original position.
The perilous situation of the French floating debt is not minimized,
but still hope is expressed that this can be dealt with satisfactorily if the
debts are.

upon the

On the other hand the conversion loan is regarded as imposing
Treasury the necessity for conducting all of its refunding on a

stabilization basis.

The first, at 95 francs to the pound, means the next at

a higher rate, and so on, with a possible increasing depreciation of the franc.
The only solution, of course, is a monetary reorganization recognizing the
need for revaluation and regularizing it by law, as well as in fact.

The newspaper sentiment in America seems to be predicated upon the

-3-

assumption that the British have somehow or other laid a trap for us.
nothing of that sort involved.
ment.

There is

Someone had to make the first tentative arrange-

They have done the test they could upon the best knowledge they could get

of French capacity.

They believe it is much better to accept less and

avoid

too
the risk of a

break-down,

than to demand more and approaoYtiose to the margin

of safety.

The difficulty is about capacity of transfer. 17 any reference
is attempted it would cloud the situation, because the reference

could only

disclose what existing facts were at a given moment, but could hardly correct
causes

which lead to that state of facts, such, for instance, as might arise

'by an abuse of the Bank of France, - the evidence of the possibility of which

has already been

substantially given

to the world.

loaned 60,000,000 sterling to F. for commercial purposes.
F. gave satisfactory collateral of which 20,000,000 sterling was gold
which is still held, but not shown. F. has been regularly making repayments and paying interest for some years.
I was first acquainted
with the existence of this loan in March or April 1919, when no repay-

repayments proportionate
amounts of gold were returned, so that the amount now held is about
190,000,000. Under the present arrangement the entire amount of gold
ment had yet been made.

On the

earlier

will be held until the entire loan

is repaid and then will be returned

Roughly I estimate the present amount owing at about

to F.

48,000,000 sterling, - possibly a little

more.

under the present rate of payment should

be liquidated by about 19;.i0,

the

payments

increasing from the

present rate, which I surmise to be

about 4,000,000 sterling to a maximum

tutions,

The entire amount

payment in 1930.

This is purely a private transaction between the two instiwhatever may have been the influence of either or both govern-

ments in the arrangement. The only influence upon the debt adjustment
will be a willingness by the government of E. to forego larger payments

for itself during those years when E is being repaid, so as to avoid
too heavy a burden of transfers, thereby, of course, giving E. a
preference.

Other than this it should not be

considered as forming

a part of the settlement.

Wadsworth and Gilbert are both supposed to be acquainted
with this matter, but I do not know whether there is any record in
the Treasury or not.

I rather think it

unlikely, as the information

was communicated verbally some years ago.

Private - F. A. Sterling to B. S. - London, Aug. 29, 1925

17)

Hotel Ritz, Paris,
July 2e,, 1919.

My dear Mr. Ambassador:

I have taken the liberty of asking Ambassador Davis that, if
any messages from the Treasury Department reach London through the

State Department and in the Embassy code, he be good enough to have

them repeated to you, and I shall hope at onceto call and 24y my

respects and possibly have a little chat with
object of my visit if you can spare the time.
With cordial rez,ards, believe me,
Very truly yours,

Hon. Hugh Wall_tce,
American Ambassador,

Paris.

you in regard to the

Hotel Ritz, Paris,
July 31, 1919.

My dear Mr. Ambassador:

I am just advised by Mr. Welsh, of the American Mission, that a
cable intended for transmission tothe Federal Reserve Bunk was not sant
through the Mission, but wus transmitted to your office for dikatch
through the Embassy.
For obvious reasons this and similar cables should preferably
be sent under code protection if that is feasible and I am most grateful
to you for your assistance in the matter.
I have arranged to ascertain tho cost and reimburse the account
before leaving Paris.
I beg to remain,

Faithfully yours,

Hon. Hugh C. Wallace,
Am-ricun Ambassador,
Paris, France.

I3S/V

AMERICAN EMBASSY

PARIS

Paris, July 31. 1919.

Benjamin Strong, Esq.,
Hotel Ritz,
Paris.

Sir:

The Ambassador has asked me to acknowledge the
receipt of your letter of July 31 and to tell you that
your telegram was sent to-day, in code, to the Department
of State for further transmission to its ultimate address.

He wishes me to assure you that the Embassy will be glad
to transmit any other cables you may have to send while
you are

Paris.

The accountant at the Embassy will keep a
separate account of the cables sent by you which you
can pay at your convenience.
I am, Sir,

Your obedient servant,

Second Secretary.

Hotel Ritz, Paris
August 1, 1919.

Dear Mr. Ambassador:

In case any cables should come for me before the end of the next
week I would be greatly obliged if they could be repeated to me, up
to and including Tuesday, August 5, in cure of the National Bank of
Belgium, Brussels, and thereafter until Friday, August 8, in care of
the Nederiandsche Bank, Amsterdam.

If I have left Amsterdsm before any cables have reached me,

will take the liberty of asking for copies at your office upon my
return to Paris.
Faithfully yours,

Hon. Hugh C. Wallace,
American Ambassador,

Paris, France.

ROTEL RITZ, PARIS, FRANCE.

August 16th, 1919.
Amrican Embassy,

5 Rue Chaillot,

Paris, Prance.

Gentlemen:

Unfortunately I am obliged to leave Paris for
Constantinople tonight without opportunity to discharge
the cost of the cablegrams which you were good enough
to send for me.

shall be back In Paris In a few weeks and
settle the account then. Should any mall or cables be

received in my absence they Should be forwarded to Messrs.
Morgan Earjes &Co., Place Vendome, Paris.
Thanking you, I beg V3 remain

Sincerely yours,

Hotel Ritz, :ligust 18, 1919.
The American Embassy,

5 Rue Chaillot, Paris.
Gentlemen:

,,ith this I am enclosing telegram to Mr. Fred I. Xent, care the
American Embassy, London, and cable to the Treasury Department, Wash-

ington, and one addressed to Ur. Leffingwel/ of the Treasury Department,

personally, and beg that you will arrange to have tnese messages sent
in code as promptly as possible.

,I would not trouble, you with these

transmissions were it not for the importance which seems to make it

necessary thk',t I ask tliis courte:4.
Thanking you in anticipation, I beg to remain,
Very tau:4 jOUXS,

BSIV

Hotel Ritz, August 19, 1919.

Gentlemen:

Herewith I beg to hand you a reply to the cable addressed to me by the
Treasury Deartment of the United States, which you were good enough to transmit to me yesterday.

shall greatly appreciate your transmitting this in code as promptly as
possible, 443 I regret to auy the matter is urgent.
I um also enclosing two cables addressed to the Federal Reserve Bank, in
Bentley's code, which I would greatly appreciate having transmitted as well.

With appreciation of your courtesy, I beg to remain,

Faithfully yours,

American argbassy,

Rue Chaillot,
Paris,

BSAT

-k

Hotel Ritz, Paris,
August 20, 1919.

Gentlemen:

Herewith I em handing you a cablegram for tranemiesion to Mr 4 Leffingwell,

Assistant Secretary of the Treasury, NO. T-7, Mud. another message for transmisstot

to the Banque Nationale de Belgique, Brussels, both of which I would greatly ap-

preciate having transmitted promptly in code, the latter through the American
Legation at Brussels.
This is a =Atter of some urgency to the Treasury Department and I hope the
messages can be marked "Ruele.

Mr. Vaughan, who will deliver this letter, will make a settlement of the

cost of messages sent to dute,,and it will be a great convenience to me if an
account can be kept of the coot f further messeges, which will likewise be
settled promptly.
Thunking you, I beg to remain,

Faithfullyt yours,

American Embessy,

5 Rue Chaillot,
Paris.

BS/V

Hotel Ritz, Paris,
August 20, 1919.

American Embassy,

5 Rue de Chaillot, Paris.
Gentlemen:

I am enclosing herewith cablegram T-8 which I would greatly appreciate

having transmitted in code to Mr. Leffingwoll, Assistant Secretary of the
Treasury, at your earliest convenience.

Tha4ing you in anticipation, I remain,
Very truly yours,

Hotel Ritz, Paris,
August 21, 1919.

Gentlemen:

With this I am enclosing a letter addressed to lion. Russell C.
Leffingwell, Assistant Secretary of the Treaeury, at WaShington, which I
%,suld greatlAppreciate your transmitting in theEmbassy pouch.
Thanking you in anticipation, I am,

Faithfully yours,

The American Embassy,

5 Rue de Chaillot, Paris.

Hotel Ritz, Paris,
August 23, 1919.

American Embassy,

5 Rue de Chaillot, Paris.
Gentlemen:

With this I am enclosing draft copy cablegram No. 18, addressed to
the Federal Reserve Bank, which I will appreciate very much your sending
in code through the Treasury Department.

Faithfully yours,

Hotel Ritz, Paris,
August 30, 1919.
Gentlemen:

In view of my departure from Paris Monday
evening, I shall be obliged
if you will repeat telegrams received up to and including Tuesday
to me
care Nederlandsche Bank, Amsterdam, and mail originals to me
care Morgan,

Grenfell

Company, 22 Old Broad street, London.

Thanking you in anticipatiom, I remain,

Faithfully yours,
The American Embassy,

5 Rue Chaillot, Paris.

Hotel Ritz, Paris,
September 1, 1919.

Dear Mr. Ambassador:

During my stay in Paris it has been necessary for me to call
upon your organization for a good deal of assistance in connection
with cabling, mails, passports, etc., and I cannot leave Paris
without expressing to you my warm appreciation of the unfailing
courtesy and attention which these gentlemen have shown me.
The staff in the code, mail, accounting and passport departments have been good enough td look after the details of these
matters, sometimes I am sure at considerable personal inconvenience
on account of latehours, and their good help has very much facilitated the object of my trip.

With _cordial regards and assurance of my best wishes for your
mission in Paris, I beg to remain,
Faithfully yours,

Hon. Hugh C. Wallace,
American Ambassador,
5 Rue de Chaillot,, Paris,

BS/V

AMERICAN EMBASSY

PARIS

Paris, 6 September; 1919

Sir.

enclose, herewith, a statement of
your account for personal telegrams sent by

the Embassy during the month of September 1919

amounting to Francs 7.60
I shall appreciate your remittance for
this amount at your earliest convenience
I am,

Very truly yours,

Chief Accountant.

Mr.B.STRONG
Representative Reserve Bank
of New-York
Hotel Ritz

Ritz liotel, Loadon,
3eptember 12, 1919.

Dear Lr. Imbassador:

I was very much disappointed to be obliged to leave

aris on very short notice, so that I was deprived of the op ortunity of calling again to see you and 12ossibly having the
pleasure of seelng Mrs. Wallace._
My visit. to France has convinced Me of the difficulty
of the work ahead of us, a larg,. share of which will, I know,

fall upon your shoulders, and I take this oportunity to express
to you mg best wishes for every success in your mission.
With kindest regards and with maw thanks for your
.courtesies to me while sin Paris, I beg to remain,
Sincerely yours,

Hon. Hugh dallace,

American Ambassador,

Paris, l'rance.

133/Pr

London, September 16, 1919.

Dear Sir:

Flerewith enclosed please find draft for fcs. 7.6 in payment of
statement of September 6th for personal telegrams sent by the Embassy

for account of Mr. Strong during this month.

Should any further

charges be incurred for Mr. Strong's account, will you please send a
memorandum of same to him care of Federal Reserve Bank, New York, as

he expects to sail next Friday.
With many thanks for your courtesies, I remain,
Very truly yours,
Mr. William U. Hutterly,
Chief Accountant,
American Embassy,

5 Rue de Ohaillot, Paris.

Secretary.

Strong Papers Box #1
(orginal files)
010.1 - 120.0

1911-1928

Duplicate set in Central Records

COMMISSIONER PLENIPOTENTIARY

OF THE UNITED STATES OF AMERICA

Paris, September

1G, 1919.

Dear Ben:

t .19
am sorry you

Just a line to thank you for your note".

are going home, but in view of the attitude of the British
I think it would be very much better if we all went home.
_y the British should feel that they have the right to say,

without consulting anyone, when the Conference should begin
and cease is beyond me.

The Lord knows I want to go home,

but I am not prepared to go when it suits the convenience
of the British Prime :1-inister.

LookinE forward to seeing you soon and wishing you a
safe trip,

Yours faithfully,

Benjamin Strong, Esquire,

Ritz Hotel, London.

1.4

11liat4 U. Hutterly, Esq.,
Disbursing OfficervArat,)rican Embassy,
,5, Rue de Chaillet, Paris, France.

It e4r Sir:
Enclosed please find Bankers Trust Company'

draft No. 6943,

fur Francs 515.75, as per your statcment, to cover charges on telegrams
G

cables sent from your office during Aust and September by Mr.
and myself.

Appreciatine your courtesy in the matter, believe me,
Yours very truly,

Encl. (1)

Dra4't

Governor.

416.10111.-

n-..1

PC..

Reine1irt, seulement pen hut

RP.
TC.
MP.

le jour.
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taxes les ardres des.ignent la date el l'lieure de depot:
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date.,

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VV LI, YOU DINE VV I TH ME NEXT/FR I DAY JULY

S I XTEFI\ITH HUrr H C VVALLA

5 PLACE DIEN A

Full text of Papers of Benjamin Strong, Jr. : Correspondence with the State Department : Members of the State Department in Europe

FRASER