View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.









3, 1919.


Bannue :Tationale de Belgique,
Brussels, Belr,_Tiam.


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,



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


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


Twenty other bags taken at random give weight

in accordance with inscriptions on label


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.


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.


New York,

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


Hereafter on direct

cables to us please address Fedreserve Newyork

Federal Reserve Bank

JUly 14,


Bank of England, London, E. C. 2

July 2-


Planning to reach Brussels early next week
definitely later



Will telegraph

Please hold any mail or cables until my


STRONG, Governor Federal Reserve Bank

BENJAMIN STRONG, ";umero 12,

July 31, 1919

Au planning to arrive Brussels

Would greatly

possible at Astoria Hotel.
reserving accommodations if
a:preciate your
officer and
Kent, my secretary and myself, an army
Party consists of
chauffeur, fly* in all.

Kindly reply Hotel Ritz, Paris.

Reserve Bunk
BENJAMIN STRONG, Governor Federal

Benjamin Strong, Room 12,





Hotel Ritz, r a.ris,

:eigust 16, 1919.


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
Faithfully yours,

La Banque Nationale de Pelgiene,
Brussels, Belgium.

B3 /Y


Hotel Ritz, Paris,
August 16, 1919.


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.






eugust 1 ?, 1919.

My dear Governor:


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.




Brussels Belgium

Following message for Banque Nationale de Belgique from Benjamin
Strong Governor Federal Reserve Bank of New York

August twentieth

Am advised

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.

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


Am confirming by mail

BENJAMIN STRONG Governor Federal Reserve Bank New


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

I am grateful to you for your courtesy in this matter uad be

Faithfully yours,

Monsieur Leon Van der Rest, Governor,
La Banque Nationale de Belgique,



D. B.


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,
or 42,076,700 marks gold.
Will you be kind enough to inform us of your agreement upon this


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,



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.





Hotel Ritz, Faris,


It deur Stonrieur

7:..21 der 'Rest:

A eWil dint rocoIved rren t


2, 109.


oclor_i Rez:orvo Bunk of New York

indicates that it may be necessary to shi,: all the _scdd fl')'
inetlitution f'ir



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 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,





"total Ritz, London,

September 8, 1919.

My dear Mr. Governors


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,


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102