The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
e047
itk,,
AEI
tl
st4Lie
/42
ffi
Cr°2
LitivtN
JUG
FEDERAL
191',)
3, 1919.
23
Bannue :Tationale de Belgique,
Brussels, Belr,_Tiam.
Sirs:
Fly departure for ::urope, which was origin lly set for the 1st
of July, has been postponed on account of derangement in the srAline;
sehodule of the White Star Line cmse by 1:-1 or troubles at Liverpool.
I nau expect to sail for Esyland on tho Baltic the 12th in-
stant, and an looking forward with pleastre to w visit to Brussels
in the near future.
Sincerely yours,
COPY OF CABLEGRAM
Brussels,
July 9, 1919.
Federal Reserve Bank,
New York
In accordance with instructions received from Hoover we inform you that
lot consists of twenty nine thousand bags of twenty mark gold pieces
Stop
We weighed at first nine hundred bags- they are above the tolerance, i.e.
7.925 grams per piece, or 3 kilos, 9625 grams per bag of 500 pieces, that
is, ten thousand marks
Stop
Twenty other bags taken at random give weight
in accordance with inscriptions on label
Stop
From forty bags we have
taken a hundred and twenty pieces to weigh individually; thirteen pieces
fall below the extreme limit of light weight, being 7917; 79185; 7924; 7901;
7922; 7919; 7916;7905; 7921; 7923; 7914; 7922; 7921.
appearance of coming probably out of circulation.
Stop
The gold has the
Assuming an average weight
of 7.9451 grams fourteen million, five hundred thousand pieces equal 115203
kilos, 950 grams, or at a fineness of 900, a pure gold weight of 103,683.
kilos, 555 grams, or 3,333,501.7 ounces, that is at the rate of 40.671.834.62
per ounce Troy fine, 468,909,595.8
National Bank of Belgium.
,COPY OF CABLEGRAM
a
New York,
JUly 14, 1919.
Banque Nationale Belgique,
Brussels, Belgium
Your cable giving results of examination of gold received and examination
is satisfactory to us
Stop We have sent you through Treasury Representative
Paris instructions for confirmatory cable
Stop
Hereafter on direct
cables to us please address Fedreserve Newyork
Federal Reserve Bank
REGISTERED
Confidential
Bank of England, London, E. C. 2
July 2-
1991
NATIONAL BANK OF BELGIUM, Brussels
Planning to reach Brussels early next week
definitely later
stop
stop
Will telegraph
Please hold any mail or cables until my
arrival.
STRONG, Governor Federal Reserve Bank
BENJAMIN STRONG, ";umero 12,
July 31, 1919
BANQA NATIONALE DE BELGIQUE
Brussels
Monday.
Au planning to arrive Brussels
Would greatly
Hotel.
accommodations if possible at Astoria
reserving
a:preciate your
and myself, an army officer and
Kent,
my
secretary
Party consists of
chauffeur, fly* in all.
Kindly reply Hotel Ritz, Paris.
Reserve Bunk
BENJAMIN STRONG, Governor Federal
Benjamin Strong, Room 12,
4
V
Hotel Ritz, r a.ris,
:eigust 16, 1919.
Gentlemen:
Owing to rey proposed absence of a few weeks, I find it neceswho will present this letter, all are
rangements in regard to the shipping of goad to the Bank of Enelend.
sary to entrust to 'Va..
It Is of course u.derstood thet the BEsk of englaad is to actually take charge of the shipments, and I do not wish in any way eo
alter the arrangement in VI:et regard.
revertheless, Yr. Kent will be In commtnication with the Federal
Reserve Bank of New York, of which he is still acting. as Deputy Govto facilitate
ernor, and I would greatly epixeciate your en else ,
in every way the carrying out of the arrangements covered by my written
inetructlons to you of this date.
Mr. rent has his own code and check words to the Federal Reserve
B :nk to enable him to conduct ceble corresiondenoe exactly as I have
done and he is likewise thor:ughly f:entliar with the details of the
transaction.
Faithfully yours,
La Banque Nationale de Pelgiene,
Brussels, Belgium.
B3 /Y
Hotel Ritz, Paris,
August 16, 1919.
PERSINAL
Dear Monsieur Van der Rest:
Vy unexpected trip to Constantinople makes it necessary for me to
entrust the handling of the shipment of gold for arrangement by the
Bank of England with your good institution, and I am only now able
to send you this brief line expressing my deep appreciation of your
many courtesies when I was in Brussels.
There is enclosed with this an official letter addressed to you,
in relation to the shipment of the gold, and I am sure that the Bank
of Magland and Ur. Kent will arrange matters to your entire satisfaction.
Any further details requiring adjustment can be dealt with on my return.
Sincerely yours,
ronsieur Leon Van der Rest,
Governor the Banoue Nationale de Belgique,
Brussels, Belgium.
BS /P
S
Yotel
aris,
eugust 1 ?, 1919.
My dear Governor:
%.114
In my letter of yesterday I omitted to refer to the expense Incurred in
coneectIon with the movement of 20O,OW,Cf0 marks of gold to London and the
custody of the 91,Ineenll marks Which for the present we are proposing to
leave for safekeeping in the custody of the Banque Nationale de Belgique.
It is understood that all expense and outlay incurred by the Banque
Nationale will be reimbursed by the Federal 7easerve Bank whenever the amount
is escertalned.
As to the 91,000,DU marks to remain for safekeeping in your custody,
it is eederstood that no fee will be charged for safekeeping, and, on the
other aced, thet for similar services rendered to- the Banque llatlonale de
Belgique by the Federal 2eserve Bank, no fee will likewise be charged.
It Ls important that I should have a statement of the actual expense
inourred in movinu the 2oo,000,oln marks, es promptly as possible, which
will loutlees to es soon as all the god is shipped.
It is likewise important that I should have a statement of any expenee incurred In the actunl count, verification and weighing of the
91,1M1')'. marks loft for safekeeping.
I would be pleased to receive a statement, addressed to me La care
of 7,!essrs. Forgan, Harjes
Company, Place Vendome, :arts, at yOur convenierce.
reantime, with assurance of my esteem, I beg to remain,
Faithfully yours,
Monsieur Leon Van der Rest,
Governor La Banque Nationale de Belgium,
Brussels, Belgium.
B51V
Brussels Belgium
AMERICAN LEGATION
Following message for Banque Nationale de Belgique from Benjamin
Strong Governor Federal Reserve Bank of New York
August twentieth
Am advised
470U*
by Treasury Department of United States that they desire to transfer sufficient
amount of German gold marks to make a payment of ten million dollars in Paris
and have asked me to arrange the matter stop
German gold coin should be shipped
to and will be accepted by the Bank of France on basis of eight ninety nine point
four and amount to be shipped should produce ten million dollar.) fine gold value
figuring German coin at the rate named stop
Would Banque Nationale de Belgique
undertake to make this shipment for account of Federal Reserve Bank making all
arrangements for insurance in accordance with instructions to be furnished later.
stop
Can you also advise probable entire cost of packing transportation and
insurance from Brussels to Paris and length of time required to carevaete shipment
after notice reaches you stop
If gold is Shipped the Federal Reserve Bank
will make correspondin,-, reduction in amount to be shipped to London stop
reply promptly through American Legation Brussels stop
Kindly
Am confirming by mail
BENJAMIN STRONG Governor Federal Reserve Bank New
York
Hotel Ritz, Paris,
August 23, 1919,
deur Mr. Governor:
Since 'train& you in regard to the shipment ol gold to London, I am
in receipt of advises to tho effect that it may be necJsoary to ehip
sor,e part of the gold which you ure good cnot4gh to hold for the Federal
Reserve Bank of New York, to Paris.
In the absence of final advices
from America, I um writing is say that the shipment ahould 7;roceed as
originally arranged, that is, for a total of 20,C0,00(") marks, leaving
marks in the hands of the Banque Nationale Oe Belgique, which
is to be exactly counted, weighed and valued, but in case a shipment to
Paris becomes necessary I shall notify you by telegrar,h through the
American Legation in Brussels exactly how much it will be necessary to
ship.
I am grateful to you for your courtesy in this matter uad be
remain,
Faithfully yours,
Monsieur Leon Van der Rest, Governor,
La Banque Nationale de Belgique,
Brussels.
133/V
to
D. B.
40
Brussels, August 23, 1919.
No. 17426
Dear Sir:
I have the honor to acknowledge receipt of your letter of the 20th
instant, enclosing copy of a telegram which you had forwarded to me
through the American Legation at Brussels.
The National Bank of Belgium would willingly undertake to send to
the Bank of France the sum of 310,000,000 in gold marks.
If our calculations are exact, it would be necessary to send
2,103,835 pieces of gainlxmaxkxx 20-mark gold pieces.
Here is the method by which we arrive at this amount:
1 20-mark piece gold weighs 7,965 grams.
7,965 grams at 899,1+0 = 7,16572 grams.
7,16372 grams at the price of francs 3437 = francs 24,6217.
The monetary par of the dollar = 5,18.
Dollars 10,000,000 = francs 51,800,000.
It will therefore be necessary to send:
'1,800.000 = 2,103,835 20-mark pieces,
24,6217
or 42,076,700 marks gold.
Will you be kind enough to inform us of your agreement upon this
point.
a..
We could also undertake to cause this shipment to be insured in accordance with instructions which you might give us later.
It would be very difficult, if not impossible, for us to fix even
approximately the amount of charges for packing, transportation and insurance.
As for the length of time required for the shipment, it would also
be very difficult for us to determine this matter for you in advance.
It is to be especially noted that we do not have the special boxes
which are indispensable for the shipment in question and we have no idea
how long it would take to manufacture them.
Perhaps it would be more practicable to ask the Bank of England or
the Bank of France to place the necessary number of boxes at your disposal.
It is noted that the gold which would be forwarded to Paris would be
deducted from the shipment of gold to be made to London.
Again renewing the assurance of my esteem,
THE GOVERNOR
L. VAN DER REST
TELEGRAM
Paris, August 26, 1919.
Governor Leon Van Der Rest
L.k Banque Nationale de Belgique
Brussels, Belgium
Thank you for your advices of August twety eighth stop
It now
seems unlikely that any shipment to Paris will be necessary as mentioned
in my letter of August twentieth.
STRONG
1
Hotel Ritz, Faris,
Auguct
It deur Stonrieur
7:..21 der 'Rest:
A eWil dint rocoIved rren t
Yr,
2, 109.
ci
oclor_i Rez:orvo Bunk of New York
indicates that it may be necessary to shi,: all the _scdd fl')'
inetlitution f'ir
T
ir
1,no7
Ly rmr
;iii roLably be
WednanJay cf next
1 Se.,tembor, r11,-41
cixct to h!).,7,1
re,!fived a ftrther cable frorP.
Should ny cable., or mail ..A.drszeed to %le ill your cz
rive
befr.re I reach 2ruzsols, nay I ask you to be L;ood onoul;b to hold
the= until ry arrival.
nithrull7 pure,
Monsieur Leon Van ear %apt, Gouveri,oar,
Mation.,le
Brussels.
BS/V
4
"total Ritz, London,
September 8, 1919.
My dear Mr. Governors
low
As I advised Mr. Janssen and Mr. Hankar when I was last in your office
would probably be the case, the Federal Reserve Bunk he decided to ship
the entire amount of gold which you now hold for our account, to London,
although I had hoped that it would be -i-Jossible to leave some part of it
for safekeejng in your hunds in case at a later date it proved to to desirable to use some part of it on the Continent.
The reasons for this
I ex7lained to Mr. Janssen and Mr. Runkar.
The Bunk of England has been advised of this decision and requested
to give the necessary instructions to their re,resentatives who are now
in Brussels, of which you will no doubt be advised.
Again with many thanks for your courtesy in this matter and for your
many kindnesses to
when I Wa8 in Brussels, I be to re uin,
Faithfully yours,
Monsieur Leon Van der Rest, Gouverneur,
La Bunque Nationale de Belgique,
Brussels.
BS/V
@FedFRASER