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STRONG PAPERS, Strong to Norman, 1926 (List redone 5/2004, to include all materials)
1926

[January 6 (to Anderson)]
[January 10 (to Anderson)]
[January 15 (to Anderson)]
January 18
March 3
March 6
March 11
March 17 C
March 18C
March 18
March 18
March 26C
March 27
[March 29C]
[March 30C]
March 30
April 1
April 1
April 21
[May 15 (to Harvey)]
May 15
May 15
(May 18)
May 25
(May 25)
[May 27 (to Harvey)]
June 5
[June 5 (to Harvey)]

June 6
(June 11)
[July 5 (to Harvey)]
[July 22]
[August 10 (Harrison to Trotter, with letter to Prof. Han and letter of introduction)]
August 18 (from Harrison)
August 20 (from Harrison)
August 21
August 27
[August 28 (to Osborne)]
(September 12C)
November 8
November 23
Note from original list: C = Cables
November 26
November 26
December 28C
Letters and cables with deputy governors also
included in Strong's files with a few others, such
as that to Osborne. Also letters to ER Peacock, a
[Oct 20 (Harrison to Peacock)]
director of the Bank of England, which were
[Nov 8 (S's secretary to Peacock)]
marked private for BS alone

Strong Papers Key:
[ ] = At earlier date, item was listed as present but no original or copy is now in Papers
06/01/04
( ) = At earlier date, item was not on list but original is in Papers and was copied if no copy existed



STRONG PAPERS,

Strong to Non:icm, 1925 - 1925

1925
Jan.15
:-n.15
24
t
Mir.9

1925
Tan.5 (to Anderson)
Jan. 10(to Anderson)
Jan. 15 (to Anderson)

Mar.9
Mar.20
Mar.21(not sent)
Mar.24
Mar.30
Apr.15
Apr.21
Apr.27
Apr.27
Apr.30
May 4
May 4
May 8 (fromsecy.)
May 9
May 11
May 14
May 18
May 18
May 21
June 1
June 6
June 12
June 12
June 13
June 13

Mar.3

Au3.1 (to Anderson).

Aug. 19
Aug.20
Aug-. 23

Sept.19
Sept.26
Oct.2
Oct.2
Oct.3
Nov.7
Nov.10
Nov.20
Nov.27
Dec.3
Dec.7(to Anderson)

Jan.12,
Mar. C,

Mar.11
Mar.17 C
Mar.18 C
Mar.13
Mar.13
Mar.26 C
Mar.27
Mar.29 C
Mar.30 C
Mar.80
Apr.1
Apr.1
Apr.21
May 15 (to Harvey)
May 15
May 15
May 25
May 27(to Harvey)
June 5
June 5 (to Harvey)
Julie

.5

July 5 (to Ilarvey)

July 22
Au3.10(Harrison to Trotter, with letter t
Frofl Harr and letter of introduct
(fro,.: Harrison)

Aug. 23 (fro.L Harrison)
21

Aug.
Aug.
gov.
Nov.
Nov.
Nov.
Dec.

27
28 (to Osborn)
8
23
26
26
28C

,Ost..2S1("garrison to keacock
o Ieacoc
cy.

Miee-.1=Tolscriti+-0-o-s---to--at.9033,2;

Nov.23 and Dec:42--ora-sent of
EitRttrette.

C -Cables

Note: Letters and cables with deputy governors also included -In matron's files wit .
a few others, suc1i LS tt to OwL_--_1. Also letters to E.R.Peacpck, a director of the
/
-.larked private for 3.S. alone.
Bank of 2nsland,



441

January 18, 1928.

My deer Mamba:
?hie is simply to remind you that our last underetunding
M8s that you mould tgree with the othL:r central btnkers as to the form

of letters to be exchanged with the betionsl Bank of Belgium in case need
arises for the purchase of bills.
You have already been advised of our stipulations, to which we
believe you assented, thtt the capacity of the Bank to borrow money or to

guarantee bills ehould be made clear are unmietaktble; that they should
give us the guarentee to repay in our own currencies, and that the Finance
Minister or other appropriate Ciovermilent official should undertake that no

obstacle -All he interposed to the ehipment of gold.
It might be well to have the form of these letters prepared in
advance and &greed upon so that there will be no delay over formalities.
I shell tike an early opportunity to discuss the matter of the
revolving credit, which you mentioned Friday night, with Mr. Morgan tnd his
aeteciatee, and advise you *net they say.
With best regerds,
sincerely yours,

Right Honorable Montagu C. Norman,
Governor, Bank of England,
 London, England.


March

, li28.

My dear Monty:
Thi E

i s just r. line to advisc you that my return

'i-Acmy

finds an accumulation of work and call that 58 a bit st,-.givr7eg.

get after

I aunt hart a few clays to catch my breath and then

all the. various .matters tlat hey.. come from you, most of wh ch hciv2

been bold for attention until my return.
The descrt bolidny proved to

tiL

a gr,fat ucc,:es.

T did

practictily uothing the entire timc.- that 7 w,.:s at Pain Ppringe, and

for the first tin::: in ay life was ;aver guilty of procrestinatIng
mail that came to me which did not seem to be rk-ssing, but it
has the uncomfottabie co n se queneo of piling up work for my return.
I

of

'cry f: t, and of course greatly relieved about Katherine' 8 baby,

ivasibiy you haw: not y:t had particulars.

*She has a fine

eon, born on tlx 28th, wW cn weighed 91 Founds, threatens to

auburn hair and has been next:A after Phil.

hav,,:

ghtA

Knthsrinc is

and le v_ry well and very much ruffed up.

Unfortunate,4 not eo good netts coy a to m: from Italy.
iy EliotAt:r has bean quite seriously ill and they ft

ratht.r oritioai operation.

d th. need for a

But the. 1...st retort is that

and the operation has been deferred.

A21 of this bears u -on my risme

a bit anti early next week I must send you word lib:Alter ''.t v



is bett,3r

i

bc nec;-;e-

Hon. Vcntegu

Norman

vary to go to Italy aooncr Own I had ol armed and Just
th-2 program

bout

F.n

ry.

liaaatime, sty best to you F h

rt

rays.

y yours,

nu.: filet t'ou. Pont,gu C. Porstn,
Ttror;:::: hodgt , C...1a7den
I.ondon, -ng'. and .




,

V.5/20 .

V, pct 8, 1928.

00 NFI D. NT', AT,

My dear Norman:

Only today (Eaturday) have I been free to devote time to
reading the lettere, documcnts, and cables relating to Belgium which
have accumulated durin my absence, which include your

letters (with

related enclosures) of Fabruary 5, 11 and 19, and Mr. Osborn' s 1 Ater
of February 5

addreased to Mr. Case.

In fact there has not y..t been time for w: to give these pap:xs
the study th y r/:qui re, nor have

Lad the doc.umcnts ex7mined and com-

mented won by soma of our exr rte, who hay have some v' we to express.
But I shall not del ay longer to wri to you on that account.

Mr. Parrison

examine the enc:osurce with yours of Prd)rtytry

5 and the letters which have corn( to us directly from Belgium, P,nd ndvi a,

me next week whether they arrear to be enti rely in conformity with our
understanding, which I haw: no doubt

to be

the case.

The following comments occur to a, in r,:ading youre of th...

'AL

and the do cum nte which e.ccom!any i t:

(I)

I agree that there is no prospect

ceirte and 7,ayments during 192.6,

but

(2)

am wi

ng,

thi n

r

Tu P-

abk

their conc:us!ons.

A forced conversion might .'invite a cainmity, end if conditions

have reached so desperate a. point ne to justify thin



equilibrium of r

consider that to be nrimP.rily

t ion for the bankers to deal wi th, and I
1 imits, to be guided by

of an

m...asury, it

Right HDn. Montagu C. Norman.

2.

would seem to me but reasonabl e that

3/6/26

b,nkf re shoul d defer a stabll i za-

on loan until after it is disclosed whether the 'patient will survive en
illness vit.i eh justifies r. major oreration.

But I gather from your cable

No. 52 that it has

8! nee been deci did to pl ece ey loan of 2,100 ,00r1,010.

frmncs trough

b.nks of B".tual.

This I ge.t from one of Morgan' 6

cables in 'language' ougg etIng that

t mry be oubstituting e. forced loen

fore forced conversion, the consequences of whi

ch

might b_

to otimul ate

th Belgian banko to e,11 (resent ho' dings of short gov_rnm,.nt ob.: igations
to

compensate the amount

failing a markit for

of thei r rartici nation i n suet,

ouch obligations,

fore.-!d 1 o an, or,

It might obi ig- th.le to go to the

Bank for accommodation, neither b ing sati sfactory consequenc;:s of such F
method of doal. ing with the Dt:cember maturity.
TN: rate of stabil i action nos 0.--,ntion,id StItinle to

44 to 1.,or4ito1.

At4

to

whi ch

laf'

s. 1 coo than CtO per frnc) ,

it

would seAs that Osborn' e crleulatione of the relation between domestic and
external ourchasing

that th_

certain
not et

ell.

mwer of the franc were reasoneb!y observ.:d, if

theory and -trlying,

sure that it is.

oft,

can be

that calculation ie r sound one, end I

ota

But it is an im-rovmeent over the on

T.:roponeti. of R ratio of one n-w franc to four old franca.
Osborn' a mom) rr,ndurs

yet sv,..en, but horo al

factory.

do cum:Alt 1 have

there are certai n no into ;eh' ch arc ci earl y unszti e-

Autonomy.

cannot undcretc_-nd why tt

be more Ai' iy

The now Bank Law has not e..-cur-fd that, Pnd

gas not coverA.

It meats

that we must lk,reettur

the bank e condition.

nfo no

(b)
from

n' ight,.ning

These are:
(a)

I

so

e the most

"tat :,

Li-.bt to t,h,

Bank.

TN: last cable Ind! cat.e that

to two bi 1. ion frencs will be converted into a marketabl e




security,

3/6/26

~fight lion. Montagu C. Norman.

but the reasone suggeeted by

ilk

Writing u7, the

inadequate.

80, strike me as

Osborn for failure to do
book profit on

th gold at the 'lower re-tio

for the franc will bOr11 what increase the amount

of reduction of

the

State

Debt, le..Eving less to be repaid out of Lb_ Froceede of th, stabilikation
it understood and they Pgrtt.4 that about 1,510,000,1100. trance

o GII

would be left for conversion ',not a very large

amount)

.

The uncertainty

as to the market for the securities can ba dealt with by F,0100 8Pecial arae the arrangem.nt as to paying interest,
rangement with the Bank, :As
which need be paid, in fact, only in case the eecuriti:,s
Government Funds.

c)

It seems

to me essential that all

domestic be,.encee shouid b,: kert on der:osit with the
cannot see why there fie any hesitation in

National Bank, Find

I

adopting that fia r fixed policy.

It requires no 1 egi al ation.

On ail these points I shall be very much infueneeci by your
own judgment.

PoseibZy they are less i.nwortent in fact than they are as

evidences either of failure to understand our point of vi el', or of lax procAure in giving them exeression.
and,

e.5

e;very one of them sate agreed to by Hautain,

I recall, by Van de Vyvere as well, before they ieft FeN York:
On

the whole, I was rather encouraged by Oebornie m..morandum,

,-_67e.cl a:Ay that part appearing under paragraph 5, - r-r! cca and the relation
between the clomeetIc

end external Purchasing !ober of tit:: franc.

Comments on your letter of

February 19 must

0,, modified by the con-

tents of your cable No. 52, which somewhat modifies your memorandum.
(4)

The proposed three year loan of $50,0.30,000 (with the terms

made reasonably attractive) I believe could ba sold in this mark-'t, but tt.:
bank,re ar,:

the once

to advise, :-And

cone: d :ring the prop() eel .



as you know, are now carefully

The central bank credit I will di AWES 1P-ter.

rroision that the entire 7-roceeds she'

(5)

reserve of t1

to.

go to the

National Bank of Beiglus and existing credits be repaid or

cancelled, leaves a; in some doubt as tc just how great
gained, net.

3/6/26

Right non. Vontagu C. liorm,ir.

4.

benefit

In other words, tow the whole Plan .111 work out.

be

I he'd

asked Morgans if thoy can prepare figures from the date in their possession,
and cennot form any orinion until I have examined them.
(6)

I have comm,..nt,...d on '..-.,arf.gra.ph

4, of your cuble above, in re-

2;rring to your m,morancum.
(7)

Tb..-

71, dg.-I of revenues of the rail way to the stlrvic:. of for

:oans never bra aol.ealed to

ee sound Pintoe:-

P.,rson!,11.y, I

i

.r -f-r rn

advi WV with a aefinf.tz.. undertaking to develop revenues for the bent=fit of

the national budget.
(8)

Paragraph 5 of your cab14.: 1 t3 aati efacto ry if roe zed.

(9)

As to parilgraph 6 - the, c-onworsion slou!d, by all means, b,?

effected to the extent of l ,500,000,000.
crease the Governtacnt's interest tint:::

Therc is no neod to insocur-Ales cfr

d by thy:

which may never occur, and a.rrangem:-.nts coti. d be MN:10 to sef..guard th:

Treasury agalciat intorfuronce with th, markat for th-ir short obligations,
Just A8 we do h,-.:re

(10) Paragraph 3 is satisfactory, but very indernite.
(11) As to -flaragraph 9 - I fina great difficulty in reconcil Ing

what has lo,,:en done with the general tenor of cur discussions.

On my r. turn

home I 1%,%6 sur-o.rised (exTressing it mildly) to learn that some

franca of Belgian bills

boon sold 411.b 0Xchnng-:. guaranteed, through the

First liationt.1 bank of Boston.

And to say that i

Atle.

Eton; el;cd, on reneirt

of your cablu, to le rn that the NR*Lionti Bank brd owed. ur.ccvered ammitacnte
of forward ,.?.xchange to the; extent of



tiout anyone kneeing 't,

n

is

rp rues', ati,

it most mildly.

this c.ommitment

!/8/28.

!light }kin. kig.)ntegu C. Norman.

5.

A recent cabit from Leffingiv.:7.1 states that

s net, and that the Bank is uncov,i:rA to that ext.-int.

Thi a simpiy means that un! cgs t35,300,0C:1. of short foreign currency obl

gattuna can be.- kept flofting

creci! Ls now contembruGl, the r.roceeda of t1'

plated, to the extent that re7-ityment i s off cted, wi
purfose Insti.:ad of apvlyicg to th.:: Bank's reservt.

b._

an;

i tad to that

Th!s, end the repayment

consid: r.ably imrai re the program, un3 se indeed the

of other ob:

Bank has been euccessful In accumulating balancee beyond the amount r,2contly

a.dviaed to ue.
Willie I was not

ooposed to thl issue of for:

P-..e

currency ob.: igetiona t.z you and the others, it via

n

bccsius., I und_retood

that th:, proceeds soui.d be sold by the Treasury to ti. : Bank in exch,grig,--. for

BeIgitn francs, rind that the principal hazard wee simp4 that the Tr.easury,

upon the maturity of the biL, 8, ran book ri ak es to its tbi ity to float
sufficient Ocrsiati c Trisaeury bi 11 s to ene.bio it to renurchasr?. the vitluta from

It now moms that these Treasury bi

the bank.

a me franc bills sold abron.d
This ruts

with the dank di recta y obl Igated for the forwrrei

the entire burden on the Bank, Instead of leavirg it with the Treasury, where

It belonga, unless I

ism

stakcn

E to th_ form of the transaction.

Ity

tand.:retanding i s trier. the equivaient of awn, $t ,909,0 ^C. or $13,000,300.

of these bine tive been

d through Baca and

and 41 i.:,00n,olo. or

thereabouts are held by tilt: Westminster Btra, beei due those sold in thia
country and el. Se Shure.
t.

i s of scoursgi ng to have thi s occur aI thout any

being scot

to us, :at t_ arm:; time that we art. being sdv:sed so ho fful'y of the ircnovem:nt hi the salute position, which is only an E.pifiront lar..rovea...nt arid not a
one so long as Vitae transactions rare !Dying made.

bit as to the future.



It disheartens me a

8.

(72)

4.

than 4-,1

to I

!'...ght Kan. Aiont.4-0

As to th., rate (paragraph 1')),,
and much better then 4 to

made on tht, ground.

I

.

1

No

3/e/%6.

,

I

7rcf,...r 4i to I a.s bettlr

but must rc.ly ur.on thc: studi

The dacree, once mad,-.t,

will settle the matter, and I

hone that its rublication will be deferrcd until we are certain that all
factors of th,. situation have. been dise.osA and cons! dure.d.
exchange coma tm.nt

a.

di 3 ei 0 SU

which has shaken my fa

t1;.

souno:d the si tuatIon ( nar.tgraph

8)

day.

a

The. forward

Vorgs..ns yest ,r-

ful y Info rued that I

They

.;

not comm,,nt

on thei r atti tude.
(74)

It .ie larossibl e for me to adv.7se you now whether you can

count u--on nur narticiration in the contrrl bsnk er---dit.

matcrlally altered that I feel

bean

coil

iged to talc,:

Csreci ft!. Ty in .4.'81,1 ngton, which I

rand rat

am

The ^coition has
t un again wi th my

c. r ng to do on Monday,

1 ...wlnig tomorrow !, Eundly) for that -ur'nee

At least on two --o'nts I

la,:vE

com7. to r v ry definite oono.l.us;on,

and those are:
( n) That I am unwilling to r-coara-..nd our rarti ci nation in thi s credi t
to my oyn

etgly7:s in firs York, or to the. other Rflsorve Banks, until you ere

yours.lf w" 7ing to cable me that you are 874tIsfi,,:d that everything hae been
done that a humanly
th-.. re vi 1 I

or

'.

to Insur,: a successful transr,ction, Pnci that

b,-.1 adequate surervi axon hereafter to further '.nsure that snot- unwi

cone &rod act will not later aff-..ct the who y rl an;
( b) That thz-, Bank must be freed of this forward

which it 1Gs undi rto.ken in bf;hal f of t1'; Tru.,asu 7y;

hercofter;

.end that it 3177 undrt.ak,

bank and ours dinr!ot:y and fu' 7y infc.)racd

that It

and

obi igation

x c b n g te:I.:13.7

b

k.rt fri,...:-

ar=tter of routine to kee^ both your
y

mst,Jrial chAngee in

their -position 'which hair. Any bcsr. ng at 7i" upon th akonz-V,,ry 7-coition, end




7.

a

lik.

116 lit

Mo

,zu C.

..)/6/28.

No

of all commitments not shown in th:.-ir figures.

Thl. difficulty 'bout our participation sill be to a fk rr
year coma tar::nt.

I frankly doubt whether it can be domi:.

1'

thr,-..,-

could doubtl t-.ss

do it for a yes.r, or some part of a year, rr 1 hav; sow::: sort of understanding

that if conditions are obo.rvA and continuo according to tb; ?rogrPut set out,
and no changes made without our r:ssent,

cone; der another

But

T wou-2.d much pn.f,..:r just to buy nirety day bills and koe,::, on buying

without &finite commitment, so as to 1-,ave th- obligation linging someirlut
as F AIR) rd of Dp.moel ea.

Now I have written you very frankly end, of course, you r.1 understand moat eon.fidentielly, owrctly how I am lairre.su.d on my return home and

reedi ng over all the papers.
It i s rath.-r di scouregi ng.

The impresslon i s not a
And the di scoun,gcav nt do

out of the fi gur:-.o and facts rs out of th:

:f.y

t of ftcto ry one.
not e ri ar, so much

situation is being handled

in Belgium.
The above you wi 11 undFret and

a Fisnly an el rib°

ti on of th:-. cpbl

',Ilia, will be sect next weA.
5 nccrol y 3-ours,

P. b. - Tbe,re was unavoidable delay in transcribing the abov:_., but
Bond it without uhp.ng,,, as
as copies of our last cables, Nos. 5Z tyouis
of March 4th) and 23 (ourb of March 6th).
Right 9ono
flontagu C. Norman,
Governor, Bank of Mg 1 and,
London, '2,rtgl snd.
BE:14




March 11

1925.

My dear Norman:

T have etudied more carefully your letter of Februery 5, and the
pepers coverin the Central Bank credit to the National Bank of Belgium to
which it refere.
It seems to us that your letter of December 8 addressed to Governor
Hautein, As well ne his reply of December 15, are fully and accurately deecrintive of cur understanding of whet was to be the terms of the credit so
fee es it concerns the Bank of England. It would, of course, be necessary
for us slightly to very the terms of these letters in order to relate the
agreement to e purchase of bills by this bank rather than to an advance upon
the security of bills.
It le, of course, not at all likely that any use Will be made of
this particular credit. The form, however, seems to be imeortant in view
cf the pending negotiations which may possibly involve a further agreement
on our part to purchase bine.
The undertaking which Mr. Jancsen has given to you in his letter of
February 3, a copy of which you enclosed in your letter of February 5, appears
to be wholly sstisfsctory so far as it concerns the present 110,000,000 credit.
I wonder, however, whether it may be broad enough to cover any future credit
which the Central Banks may extend along the sines of your letter of February
19 and your cable 4:54.
There is, perhaps, no need to be too technical in
7ur construction of the letter, but we should be assured that it covers not
merely the negotiations which have already been arranged, but similar agreements which may be entered into in the future.
rhiie Governor llentein eteted to me in his letter of February 20
that the Belgian Senate would vote within e short time upon the amendment
to Article 8 of the organic laws of the bank, nevertheless we have not as yet
heard whether that amendment has been finally approved by the Belgian Senate
or received Foyel assent.
I presume that we will be advised as coon as the
amendment has been adopted and a proved.
Faithfully yours,

Fight Honorable Montagu C. Norman,
Governor, Bank of Fngland,
London, Frigland.




Benj. Itrong,
Governor,

1
Form 12

arge to the account of __Boatreag____53_44.bert,r_st.
CLASS OF SERVICE DESIRED
Full Rem
Half

Week EF

Ater

Patrons should mark an X opposite
the class of service desired; OTHERWISE THE CABLEGRAM WILL BE
TRANSMITTED AT FULL RATES.

WEST
CAB
NEWCOMB CARLTON. PRESIDENT

WESTERN UNION

UNION
RAM

GEORGE W. E. ATKINS, FIRST VICE-PRESIDENT

Send the following Cablegram, subject to the terms
on back hereof, which are hereby agreed to

3i 7/ 2
DEFERRED RATE

Ploderite




London
Dibtreesed you -:re ill

Please keep me informed
STRONG

Number

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Time Filed

Form 12

arge to the account of
CLASS OF SERVICE DESIRED
Full Rate
Hoff Rat,

red

e141

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Patrons should mark an X opposite
the class of service desired; OTHERWISE THE CABLEGRAM WILL BE
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Ba). Strong

8.5 Liberty St.

WEST
CAB
NEWCOMB CARLTON. PRESIDENT

WESTERN UNION

New tor*

UNION
RAM

Number

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Time Filed

GEORGE W. E. ATKINS. FIRST VICE -PRESIDENT

Send the following Cablegram, subject to the terms
on back hereof, which are hereby agreed to
DEFERRED RATE

Mara 18, 1826

Plodgerite




London

Th_,..nice delighted improved
3r.RONG

Leaving Washington for

seek

March

r,Y) 117JDt;NTIAl

P. 79pt?.

My dear rorwohn:

It really di era ores

'fours of IfE rch 4th LEs just re ached R.Q.

fott.i.w, of atich
ciP .4E

re

'11-.E47 t

o

i

tot (ithf.r

wee

or inntiretively felt to b.: the

4 r 11 tost:tlier tho such aeysnesptin

aFiCrtneC.! tt

atinde

tlr;

On

': of the things vhich you and I have attempted,

rather vainly in 80me instances.
Of course I r-rn going to Itray on account of my mother's Illness,

and certainly could not go there without seeing Stringhor.

I shall go

with an open mind, and I guess you can assume that I shall leave with my
hands free.

Vol pi must not overlook the fact that he himself urged ma to talk
matters over with Ftringher and is atilt expootike, me to mr-k .-.

the visit, as

lEerned directly from home.

Eome things in Germany have ciisapcointed me a bit, but the gre'afest

of all diss.p7ointments is the outcome at Geneva.

The effect in this country

is bad end sill get worse, I am afredd, before it is better.
I

Rai distressed to learn that you are laid up, and as I cabled you

privately yesterday, I hone you sill keep me advised.

letter and best regards as ever.
Sincerely yours,
Fight Fcnorttle Monthgu L.
Bank of
London.
BEIM




and,

hormp.n,

Deny thanks for your

lb

4,4

March 18, ?WO'.

Dear Covc.rnor 'Norman:

This is to ooknooledee your ietter ox' 'March ;,
anolosing ,,iuo.:=.tione for r-vericn sitneesee before the

Indian Commission, which I

t:.1

glad to have.

Sincerely youre,

The Rt. Honorttle Montagu C. Norman,
Comernor, Bank of Eni;lud,
London, Lnelend.




CONFIDENTIAL.

Decode of cabley ram from : FEDERAL RESERY

BArz OF NEW YORX, KEW YORK.
I

(ame)Fri.26th March 1926.

Received ,inagie

7.45 p .m.

(date)

(amoiri.26th March 1926.

Despatched :

(date)

(7489) 1/26 -15110

N °'

Confidential for Governor.

40.

Your 75.
1.

itrauss in Paris and leaving soon for Spain.




through Guaranty

Can be reached

Alexander has matter under
Trust ';ompany, Paris Office. consileration
decision as soon as possible.
3.

May be necessary for me to delay sailing b

now made possible by Mother's improvem
defer final reply as to my own plans.
4.

Shall reply as to Ryan and Zelly as soon

than.
J2RONG.

r

Z70 Perk Avenue,
New York City,
March 27, 1f.?26.

Dear Monty:

This ie a very pereon-L1 letter, but I must dictate it for
want of time to write by lead. It le my firet op2ortunit: to srite
you for turfs time, es I have seen terribly rushee.
First about my plans:
I have had to cancel my passage
to Naples on the third. Had my mother' e illness continued serious
I certainly wouie have Ehnen, but she is very much improved, in fact
hers teen out walking, and will likely be able to return tome the latter
pert of
Meantime, we hove gotten into a legislntive tengle

in liashiegton over some of the banking tills nos penning in Congrese.

The Bonet Colatittec cn

anu &urrency has decided to make a

rather

extensive in.-uiry into some of our operatione, especially those with
*hi Lb I tn,ve more concern than almost anyone else. They arc also
proposing to explore our Hank of Faglanc credit.
Governor Criceinger
tans rgeC me riot to leave until they know just how thie will develop.

Then, again, yblic situation is complicated by your Indian Currency
in :nil ry

There le a etrorg reeling emong some of my frienae in

ia.ehington, that it would be a mistake for anyone of particular prominence
or intimately ?..03,-)ciutecl with our government to appear at e public hearing;
but the matter is left largely to me to decide La to my own hppeartnce.
Of course tau I gone to Italy, it aouiti have been impossible, tut non that
I am delayed by these heeringe in kaehington, it may be impossible also
on tnnt account.
But it
sail directly for iondoni, with the intention of appearing, or et least with
t-lao intention of decieing vht :tner to appear or net after Ely arrival, end
rfter opportunity to talk the matter over with you sand with Mr. Hilton

I am not celayee too long, I coule, of course,

Young.

Thie bane, the iii

OD.,

1 WA getting together such

Gate. se I can

on the whole subject, and if I don't use it myself, possibly it may be used
by someone else.

Continued abeence in anshington end Jack korgn' a illness

delayed approaching others. I advised you by cable that George Roberts
end illbert btrnuee are both in kkirode. Roberts' qualifications are exceptional;

he was long director of the mint;

and a man ;dune renutntinn 4Loulc 6ivo

he is a very sound economist;

',eight.

iut of

course I don't icons what he would say, and it is highly desirable that you

Albert Straus is a bit more
nhonin explain the ihole nitration to him.
he is a man of wide lenowledge; has etuctieo this subject a
theoretical.;
-Ale of cource his etatement should carry some weight as be was
good deal;
the
very largely responsible, - possibly more than anyone



else - for

Mr. Norman

2

ait

IP Ili

8.27.26.

preparation and padsege of the Pitmen Act. I think it was his original
In both cases I am somewhat troubled by the impoesibility of
idea.
Mr. Marburg I have
these two men adequately prep:Iriag themselves.

not approached ae I did not reel it desirable to do so.
with you about this later.

I will talk

Yesterday I had a long talk with Gornelidta Kelly, and em
meeting him and John Ryan at lunch today in an ef'..'ort to make up my mind
On the whole, I believe
whether either of them should be asked to appear.
Very confidentially, the property which they control end run, and
not.

which is cne of the largest copper proaucere, might well be closed, or
certainly its opt reeiccs reoderea so much lees profit hid as to badly
vornoliuo
cripple them in ease the silver :sartcat raw iergely lost.
Kell; is the Preeident of the Silver ?roduere. :eeocietion of fewerioe, and
the mere feet of his appearance Right stir up the silver miners to an
org,eleed efi:ert to defect the propoeel, ebiol, 'Aoula quite likely take a
political turn and plunge us into all eorte of difficulties. ie will

Linel, today, and I viii and e line to this letter tevis-

Ahat I need especially to enoe ie .fteteer the
ing you of tee rsoult.
henringe ere to be public or prieetc, ead hoe locg they 41.11 continue.

I think I can :.,romiee you Viet I will have ell the CLtes that
crt bci had as to the effect upon the mining industry, end a gcoci deal
besides that. But -foe reelize that it bill be very eifficult, for me to
casoude the highly technicil problem of the IiI6511 Currency feem L.
LULL, 1 ueelet feel coaetreinee to
etendeolnt, :ale, at the ti
minimize the extent of our pereonel interest in seeing the project, at least
for the L)resent, thaacioned.

I have cillee in tee eervice of one or ...to men of large experience in mining statistics to aid in the preparation of the ireformetion,
*.nt
.:111 ;-(1,ree thtt the eetim!te of 24 pence as the prive of silver, if
this project is definitely undert,iken, fisvesp optimistic as t:, be regardoe
1.,..-zt as leislxing, uSU ;osaibly ha.i.ardou.a.

by

The world 411

lose the market for one-half of its d roduction, in will reef.; the equivalent
iu c.rOloCLi0:1 ar.21,I1 to over three yehre' normal output.

of

And

the estimste is that silver will sell It 50 cents, ae Ngeia5t the present

based upon (ea alamieetiee of tee
price of silver over a long period of years, including values 3kibSey..161.11; to
The iniaieem prioe we 50 cents
td-metelieen ty Gerc.iay.
t'he ebendenment
I believe in this period, but the conditions are wholly airdisailer, and I
surprised to see tea merket value of Silver promptly
could not be
out in half. Ile also have a feeling that there is miec:Alculation in the
esthete of the ezmun reeuiree under the plan to meet existing rupee

price of 5b cente.

Vein! semis te)

All of this will be developed in the course of our studies,
I 411 either send you the reaulta or tuks them abroed with me.

liabilities.
:eei

lave b.en 6oiue, throut,it

4i.filcult time *itia our

stock market, but it is much better to have it over with.

The big speculative
end I eat! little Likelihood of its recurboon! in etecke it undoubtedly ever.
whether the decline mist, continued et. such h
The only c.,ucetien
rence.
rate es to haze aemperiing eulect upon tueiueee. le hope not.



You doubtless share my regrets that we seem again to have

Yr. Norman

drifted into period where unadvised and possibly 111 tempered public disc,45eione of all sorts of cuestions, political and otherwise, seem to be
It will not help the gold standard. *hat
stiirring up bad feeling wain.

I most dretid is the possibility that American investor& will become co distrusti%1 of European conditions that they will button up their pocket b'oke;
and then indeed it is going to be hard for everybody.

If I go to &)gland first, it
A final word about my plbna.
mer,ne encountering your wet and foggy April weather, "nd I shell want to

sty there .just as short s. time rats possible, going immediately to Italy.
After that, my plane e.re still to be made. But I sight, sc from there to
Vienna bad Kate a rzther Iiesursly trip throu!h part of C9ntral Puropel,
'trading finally in Berlin. It e.ty to that Garrard ;inat.on 411 join me
there part or the trip. !het :.re your pl-;ns, and. how will you be situated
for taking some time off too?
My bf..st regards, ES P21 AWE.

ArfectionAcly

The EsL,Vut Holor,:ola lontagu C. :Ionian,
Thorpe Lodge, Campden Hill,

Lonoon,

P. S.

After my talk with Ryan and Kelly, I am satisfied that they
could not go to London, and further that it is unwise for them
to appear, all of which has been sent by cable.




a

March ..±0,

My cenr Nra.n:
LA

Nemo ruacum
kitzty thanks for ore of :A,,,roh
had
City
Woo..
on the Beldiaa Budget prepared by do6hachez. It. Le an intereot-

ink document.

Faithfully yot.re.,

T1- :e N4ght Honori_bie ;fontt.igu C. Itora::..a,

Governor, The Banic of En,glaud,
Threadne;:d1
l_ondon, E. C.




arce..t,

2, England.

P-6R6o NAL AND CiNFIDENTIAL

April 1, 1928.

kly dear tionty:

This is to elaborate tgonewhet, privately, on whet I am cabling
you todr.y in my number 44.
Mr. V.01 -tan' s absence in Bermuda hap made it imyroeaibIa for me to

have a last Mrd with him in regard Lo the Indien Commission matter.

It

seemed to be of ouch grey:: import!nce that I felt justified in consulting
far othere beyond the men named in our c,,blen of this week.

I

a

have diacussed

the project very confidentially with Dr. Stewart and Professors Sprague of
Harvard and Hollander of Johns Napkins.

They all agree that a Precipitate

adoption of the gold standard by India vexild likely mean a cal amity.

Yester-

day I had a very confidential talk with Reynolde, President of the First
National, Alexander of the Comzerce end we Righ of the WecheniCfs.

They all

expressed like concern.

There at once arises, however, the ghost of .Pol itice rad political
reactions to my appearance.

I am asked Low it is possible to justify my appearing in opposition

to the project irleen it is really a semi-political lunation between Great Britain
and one of her ckminione.

Vneze gentl.em,In have all had some anpreolation of

the character of recent developments in India and how oasy it might be for my
appearance to be misconstrued.

Emphasis is given co this by the suggestion ao frequently appearing
in financial and other publications, n.nd sueectes wide oocarionally by men of
prominence, that there. is wile secret 7rogram in existence upon which you and



2.

PIP

0/26-

Pight Hon. Mobtagu C. Borman.

I are working and which involves interference with monetary end financial

r!fairs in other countries of a sort which is resented.
Of course, i cannot close my ears to these arEurients.

Tr? fact,

it is the first thing which occurred to le when the suggestion about my
appearance was received.

Letters, and still more cables, are so uneatiesfnctory

vehicle

for exchanging views that I have decided to sail by the first steamer possible
after the hearings in Washington about which I wrote you recently have been
concluded.

This, I fear, cannot be before the "Olyar-,ic" on the 17th.

Desiring as earnestly as I do to be of some easistanco, I neverthelees feel much doubt as to whether my e-ppeamance before the Commi scion will

be a service or a disservice, and in any event T cannot undertake to do so
unless others with whom I must consult are in entire er!reement as to the
wisdom of doing so.

You might consider this se also answering yours of the 9th.

there is any chrnge,

I

shell of course cable oroi-tly.
Sincerely yours,

lhe Right Honorable Montagu C. Norman,
Thorpe Lodge, Campden Pill,
London, England.
B5:11




If

April 1, 1928.

Lear Korman:

I as just in receirt of your lf:tter of Irprch f..7rd it1. the
va.rious enclosures, which I shall reed Pt the first or;brtunity.
Leffinrgw,111

I e back, but I have bkd no cr;ortualty yet to

set, hits.

pith best rsgards,
Sincitrely yours,

Montegu C.
Governor, Be nk of !.11g1 and,
Tbs.: Right, ib no nt bi.

London, rbglextd.
BI,s1




No rrn nn ,

April 21, 1926

Dear Governor Norman:

The "Coal Report" which you were good enough to send

came some weeks ago, but even an acknowledgment of it has been

delayed by almost constant absences.

have it.

I

am, indeed, glad to

And if Volumes 2 and 3 can be sent to me later, I

shall appreciate it.
with cordial regards, I em
Sincerely yours,

The Right Honorable Montagu C. Norman,

Governor, The bank of England,
Threadneedle Street,
London, E. C. 2,
Eng I and.




0
On board s/s "Aquitania",
May 15, 1926.

My dear Norman:

Just before leaving, Mr. John P. Ryan called to see me in regard
to Ir. Simmons' visit to London.
office.

You will recall meeting him at my

He expects especially to be entertained in some way by the

London Stock lxchange, but I am not acquainted with the details.

He has

it in mind to make a speech, and I believe the proper setting for a speech
is a dinner.

Tould it be too much trouble to send out some of your

Stock Exchange friends to see what they have in mind for Mr. Simmons,

and if they are going to give him a party they might be warned that he
will likely make a speech.

I have used my influence to keep it as

short as possible.
Sincerely yours,

The Right Honorable Montagu C. Norman,
Governor, Lank of England,
LONDON.

BSIM




ist

S
Aboard o/s "Aquitania",
Hay 15, 1926.

Dear Norman:

I happened to meet the President of the American Bank Note
Company, whose card is enclosed, and he said that he or his associates

would be very glad indeed to be of any service in connection with your
preparations to print the currency notes.

He seemed to feel that there

were many technical difficulties to overcome, in which their experience
in very large printing operations might be of some aid, but he was also
careful to explain that he understood that you were going to do the
printing yourselves and he thought that woo the proper course.

If you feel there is any advantage to be gained, ho would
understand if he were cent for, but if there is no advantage, you can
tear this letter up.
Sincerely yours,

Ths Right Honorable Montagu C. Norman,
Governor, Bank or
LONDON.

R

Pt




BENJ. STRONG
Hotel Chatham,
Paris, May 18, 1926.

40

Dear Monty:

The best I can do is to send you this dictated note, advising
All the arrangements were made to per-

that we had a good trip across.

fection, and consequently I avoided any fatigue.
Of course, since reaching Paris everyone has been after us, and
so far as our talks have progressed, I see no light.

Yesterday I had a

long visit with Tom's partners and vont over the same ground, more or less,
that we discussed in London.

Afterwards I spent a couple of hours with

my friend talking things over very frankly.
with him today.

I shall have another visit

Statements I made to him are sympathetically received

and, I believe, fully understood.
described to us in London.

The difficulties are e

It really is more SQ need of a man than of a

plan, and behind the man real patriotic cooperation by all parties.
I cannot write you very fully until I have had further talks,
and possibly not until after I leave Paris, but you will hoar from me just
as soon as possible.

In the meantime I shall ask Colonel Harjes to keep

Tom advised.
Sincerely yours,

Right Honorable Montagu C. Norman,
Governor, Bank of agland,
London.




Grand Hotel,
Rome, May 25, 1926.

SEND. STRONG

ti

'A.d

P:RSOFAL
My dear Norman:

Thank you for yours of the 20th bringing me up to date in regard
to your conversations with T. '7. L.

I have been unable to write you about my own discussions in Paris
for sheer lack of time.

It was, of course, irpossiblo for me to decline M. Peret's invitation
to see him Wednesday evening, but I took Governer Robineau and Mr. Warren with
me and had a talk of about a half hour.

I could simply explain that I had no

power, practically or legally, to discuss credits with the French Government,
but would be glad to explain what I had stated to Governor Robineau, with which
the latter was in entire accord.

And then I made it clear that a credit such

as was discussed at the Bank in London was at the present time out of the question, in the absence of a comprehensive program.
There has been a great deal of discussion in the press, so far as I
can gather all of it misleading, as usual, and all of it more or less ombarassing.

The newspapers are nothing short of pests.
Robineau and I seem to be in perfect accord.

The idea now being

discussed is soma political understanding between various parties and a similar
understanding between the Bank of Franco and the French bankers.

If that can

be arrived at, the discussion seems then to tend towards turning over the
monetary problem to the Bank, with special experts to advise.

I have no

details, but if there is any substance behind these suggestions, they of course
are in the right direction.




Just now, I am so weary of it all that I am

111
2.

Mr. Norman.

May 25, 1926.

40

more in the mocd to listen than to go much further with it until after
I have had a thorough rest.

I will let you know my plans later and try and coax you to join
me.

e Right Honorable Montagu C. Norman,
vernor, Bank of England,
readneedle Street,
ndon.




Sincerely yours,

Grand Hotel,
Rome, May 25, 1926.

40

My dear Norman:

I am just beginning to read mail after a motor trip to Perugia,
and find yours of the 20th about Mr. Ryan.

He is a sort of advisor to Ur.

Simmons, in some capacity which I do not clearly understand, and apparently

has been in London for a few weeks in touch with the Stock Exchange authorities prior to Ur. Simmons' arrival.
Thank you very much for your aid.

I gathered from your earlier

letter and our talk in New York that you would be interested in seeing that
whatever arrangements were made were suitable.

Sincerely yours,

The Right Honorable Montagu C. Norman,
Governor, Bank of England,
Threadneedle Street,
London.




4
Hotel du Cap d'Antibes,
Antibes, June 5, 1926.

41

My deur hor..aan:

I am just trying to catch up with some mail.

Yours of May 31st suggests that Schacht is somewhat uncertain
about my plans, as I indeed have been myself, so I am writing him today
as per enclosed copy.

Also, I em sending you a telegram as per enclosed confirmation.

Yours sincerely,

The 'ALM Honorable nntagu C. Norman,
Governor, Bank of England,

BS:M
Enos.




S
Hotel du Cap d'Antibes,
Antibes, June 6, 1)26.

My dear Norman:

Many thanks for yours of June let enclosing cutting from
the "Times".

Yours very sincerely,

The Right Honorable Montagu C. Norman,
Ccverncr, Era of Temgland,
London.




r

1

1

Hotel du Cap d'Intibes, Id
Antibes, June 11, 1926. C.:.

41113ENJ. STRONG




,
I

My dear Norman:

Yours of May 19th has just reached me, after wandering about a bit

for reasons which I do not wholly understand, but it was none the leas warmly
welcomed.

I am glad that we did what we could do in the Indian Currency matte
and am glad to have you and your colleagues feel that it was worth-while.

The Professors got a real thrill out of the experience, and I canno

claim in their behalf that it was an act of self-denial or inconvenience, nor
anything but a great pleasure.
that they did a good job.

They had a good time, and personally I feel

Had I been in better form, possibly I could have

contributed more myself.

What you write about M. Peret'6 visit is no more than I expected.
He made a very poor impression upon me indeed.

I made a determined effort to avoid the embarrassment of declining a

credit, in fact sent word in advance that I would be glad to accept his sugge

tion to call and discuss matters generally, but that it would be bettor not to
raise that question.

On the other hand, that was the only thing he wished to

discuss, and he was there with his experts and all the data, just as though I
had stepped into the room with a hundred million dollars in my pocket, ready
to deliver it upon receipt of his story and the security.

I shall not burden you with any account of my doings, now that you a
coming.

7e can talk it all over here with much greater advantage to both.
'Pith best regards and many thanks, believe me
Sincerely yours,
f

The Right Honorable Montagu C. Norman,
Governor, Bank of England,
London.

411111

COPY

New York
Auguet 18, 1926

Bank of r-ngland

London
#47

STRICTLY CONFIDENTIAL FOR GOVERNOR

ONE

Wireless dispatch from London under date august 17 published
yesterdays papers iefeis to curient gold shipments from Australia

to this country as arrangement between yourselves and Commonwealth
Bank of Australia Sydney Australis
TWO

Todays ticker service under ."an Francisco headline also refers to

shipments as being for your account stating that purpose is settlement
of international balances
THREE

Regret publicity for which I have no explanation now unless it is
the London dispatch.




HhrriF.on

COPY CR OUTGOIlla CalltrZtatiIL

Vow York, A. Y.
Aueust 20, 1926.

Bank of ?]and,
London,

No. 51

STRICTLY OWFIO1NTIAL FOR 001t!:AM1R.

Your Bo. 63
One

piednesciays re)ort aroused oonsiderable interest and
vila followed b;

exteAsive oonnenta in yesterdays and

today' paoers.

In the absadce of some authoritative announcement papers
have speculated at length as to cause aql purposL of
shilment.

Three

Consensus of press views is that Haveamt is merely to
relieve usual fall strain on Sterling which it has been
stated will be augaented this year by unusual purchases
of

?Our

American

coca.

We have received numerous inquiries but have of course
made no statenent or explanation.

Five




Referring to your paragraph
(a)

Four

have found in past experiences that informa
discussion with ra)orters not for quotation usuall;;

satisfies

tnem and mares for saner and less conspicuous

mow

NO.2
publicity.

Aide it seals too late now to suggest that course

(b)

as helpful in your nreseht embarrassment (Witch
could not have been anticipated) it way be worth
your considering whether you want us to have any
such informal discussion in connection with
succeeding shtmtints which will no doubt be linked
with curre.t stories and very likely revivo discussion
on each occasion.
Oix

Greatly regret embarrassment to you although press reports
give fairly natural erplanntion and reactions on this side
are generally favorable.

Seven




All advise you if we learn a:i.y further clue

on

ff :bail

as to

Royal Hotel,
Evian, August 21, 1926.

My dear Monty:

Your note of the 17th just reaches me.

There seems to bo one delay after another, and I am now almost certain
that I cannot roach London by the 29th.

So it must be a later Sunday, When I am

to be in two places at once - three places at once will be too much for me!
I have not yet received the pictures from Lime.

't Hoofs, but am anxious

to get them.

I did hear that the Schacht -Francqui plan had been torpedoed and am not
surprised.

Now let us hopes that they settle down to a non-political settlement.

I am leaving for Paris on Sunday, and my present plan is to make some
more visits from there, but will let you know lator.
Best regards as always.
Sincerely yours,

The Right Honorable Montagu C. Norman,
c/o The Bank of England,
Threadneedle Street,
LONDON.
BS :1d




Princooc Hotel,
Paris, August 27, 1926.

PERSONAL
Dear Monty:

It looks as though further travels would havo to end for me, as
the time is approaching whon T must be home at ny dosk.
In view of this, I am trying to get accommodations on tho "Mauretania" sailing on the 18th, so as to go home with the Morrows, and this means

that I will be in London at the end of the first week or aarly in tho second
week of September.

rill you be there?

I would have left earlier, but it is mighty difficult to get accommodatione.

Bost regards.

Sincerely yours,

The Right Honorable Montagu C. Norman,
c/o Bank of England,
LONDON, E.C.2.
BS ::1




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such Telegram although it has been received for that
purpose.

2.-Neither the Marconi Company nor any Telegraph

CARLTON
RITZ
PICCADILLY

of the Telegram, or delay, or error, or omission in the

AU.NICKE

A,D

IRLS

Awerr°77-,

To

CVa " Chatham. Mossochusetts for the underme Waned Amerkan Hotels :
Telegraphic Addreee:
Name of Hotel:

C to

etc,
CaSte No.




NEWYORK
NEWYORK
NEWYORK
NEWYORK

lelesraphie Address t

Name of Hotel

QUEENS SEAPOINT
MARINE SEAPOINT
ROYAL CAPETOWN
CADARGA CAPETOWN

Al

In

it.

?ENNHOTEL
PRINCEGEO
HOLLEYHO

ony oast station in the L'nion of South Africa for :

.ignOners

%...ela;$11C 4

McALPIN

McALPIN
PENNSYLVANIA
PRINCE GEORGE
HOLLEY

TELEGRAPHED).

Address

SAVOY HOTEL LONDON
CECELIA LONDON
METROPOLE LONDON
VICTORIOLA LONDON
GRANOTEL LONDON
HIGHCASTE LONDON
CARLTON HOTEL LONDON
RITZOTEL LONDON
PIQUDILLO LONDON

HYDE PARK

Company or Government Telegraph Administration, by
whom this Telegram is or would in the ordinary course
of the Telegraphic Service be forwarded, shall be liable
to make compensatidiC for any loss, fujiiry or damage
arising or resulting from non-transmission or non-delivery
transmission or delivery thereof, through whatever cause
such nun -transmission, non delivery, delay, error, or
omission shall have occurred, even though occasioned by
the neglect or default of such Company' r Administration
or any Officer or servant in their employ.
3.-The Marconi Company only receives this Telegram
for transmission in accordance with the provisions of the
Regulations made pursuant to the Telegraph Acts, 1863
to x.13, and the provisions of such regulations shall be
deemed to be binding not only between the Sender and
the Marconi Company, but between the Sender and any
Telegraph Company or Government Telegraph Administration by whom this Telegram is or windd in the ordinary
Course of the Telegraph Service be forwarded.

Telegraoklie Addeo..

SAVOY
CECIL
METROPOLE
VICTORIA
GRAND

t. -The Marconi Company or any Telegraph Company
or Gdvenunent Telegraph Administration, by whom this
Telegram is or would in the ordinary course of the

ROYALIST SEAPOINT
MARINE SEAPOINT
ROYAL CAPETOWN
CADARGA CAPETOWN

order that passengers may state their requirements briefly the

following codes may be used :
CODEWORD:

MEANING

Reserve Sitting Room, Two Double Bedrooms and Bath for.
HANNIBAL. Reserve Sitting Room, Double Bedroom, Single Bedroom and Bath for.

CAESAR.

HORATIUS. Reserve Sitting Room, Double Bedroom and Bath for.
Reserve Two Bedrooms and Bath for.
TIBERIUS.
Reserve Double Bedroom and Bath for.
NERO.
Reserve Single Bedroom and Bath for.
ADRIAN.

November 8, 1 26.

PhIVATiis

My dear Mr. Governors
!Ind he

I took your letter of October 2fl up to Governor Strong today,

read it with much interest.

Since

that letter ie,e written you will

'tete heti

word of his condition, tne I feel sure you will, in the circutettncee, uneeretend
this

sort of reply.
Mr. Strong's principal comment was about the anti- tariff menifeeto,

which he was careful

Lot

better he coula probady

to ef..n.

refer you

In fact he said if only his head were a little
to a

pass:,1e in Uno le

ht:anua which eouio exectly

deecribe his own state of mind about that metter.

Further,

he

"I might indeed have been very

some of the other signers, but, as I recall,

most varnish is

atter, anu I was perfectly eatiefied ..hen Mr.

helpful varnish

for

eiseolved in hot

sell eekeu me to Lisn

the menifeeto

that it could be jumping into very hot water, which I eoelci not relish.*
Mr. Strone; use interested in the i,CCOUnt of the central tank credit
to terl6ium,

He

eind particularly, in 'what you write about Italy.

61.1C.1

that he,

Italy
,t, ion
oei

personally, felt that it was unforteeate the offer was not made to
It .iould have put all of the central sauce in correct

Outset.

relation to any importtot eentral bank.

hot having been clone, it MKs

certain to produce the inevitsbie result it

A 1 of this Mr.

at the
in

litoot

Wee when the offer wee ede."

Strong asked me to Irite for him,

,.rid, et. tee BelPf

time, to aLippleMr:At, the word which Mr. Harrison hes earlier sent by telling you

of

his

present




condition arse plena.

I tLifli you know thb.t.

though necessarily claim.
woul

11.8.26

Mr. Sp mark

2

progreee 1.13 no.' ettier?..ctory,

3. r.

Ant. he it.-:

ertill very Aeiik.

It looks ati though it

to et.rly Leber before to can be moved with coik.fort n.un safety.
1.ere

he is Lo 63 to the Broadinoor ilo-..el in Gcloracto
be uncer

Then

will at first

touch vIth 1 r. .ebb at the esaitorius.

of 2 nurse, a: in

Atile the 1:.-nigth of Lis stay

The cootor's prescription is absolute rt:t,

there cepende uper, how ,.oickly he gets back his etre:4,th, we believe it will

not be wise for hin. to return to the Eknk before sprinE.

thaantine, Er.

Governor, I nose it will iuelie,ht his to lv,v(9 your lettcre.

In conclusion, while lir. :7trong amdc no cc:Ir.:cat on y'....Lr imrazreil;'n
numbereu five, I shall tr!.:e the liberty of ,iskig kr. qarriL,on if he CettI
you concernint, the Cr.Uit to the 5nnk of 7.:.:rigls.nd.

r.e you knob,

stan\3Ina; tale ::"arei6.1 maLtere.

VW: aseurancen of my uuteeia, I

:us

Very truly yours,

Lecret: ri to
Yr. Eenj. Stront.

The Rigt:t Honorable Montsio C. horaihn,

of Lai,lana,
The
London, E. C. 2, hh:;land.




270 Paris Avenue,

New York City,
Novecber
la26.
Leer

;total:

By this time you neve received more detaile of my illness, which
+1'-s rather crow.: with

explteine nay complete failure to easwer your leteers.

1

them de the Bank for not writing you more promptly and

in more detail.

st)eme that my

Brother,

in ,telling teem at
charge the

who Wb.8 .;hair source of inforar.tiou, wle very conaervative

the bank now desperately ill 1 use.

dereliction to him, instead of to

Ana you will pleeee

Mr. Harrison and the others.

I

won't go into the details of my illness for it is a ha.rrowiug subject.
But

it

ri11 ewe me to eoloreuo Springs early in 1)ecember, where

meet s eau the minter at the
It

P.:re March, or even April.

ie rather more encouraging

some X-ray pictured of my

broeemoor Hotel.

I doubt it I can get back be-

Geptif laa upon anat develops.

than I had thought poesible a

lunge uiscioee the fact

taut

few

the

outlook

weeks ago, because

that this pneumonia

hurricane

has swept through me without affecting my lung concition a particle, in fact they
seem to ee

it will

better thee ever.

reiuire

ems

the difficulty Jo that I

tam

frigetfully ..eek and

tine to build up enougn etrength to engage in any activity

at all.

So why uon't you come over ae usual, eprod a little time et
and then come out to Colorado and spend a
one of the nott beautiful hotels
could have a quiet




time

together.

little time with me?

in the country,

I

tee

I ink,

ellell be et

Earnest will be there, and ae

By then I will be up to it.

There

are

11.23.23

Mr. Norman

2

*many thin,5 that I want and n,zect to talk with you about, anu without such a talk
it Intl ;__. that nut year will aevelop aUficu1ti s which I greatly wish to avoid.
eo plsaeo try to come.

In moat respects I am satisfieo nith the Felkjan joo, but in one or
two reepeots I wed a bit aiaappointect.

On

of these, Laid really the only one

of any c..oneelutioe, ititst, the failure to get. the Bank of Italy into the party just

ad soon as so learned that the hank of F'r-nce *oold come in.

I will cave the

details of this ;intil I ode you.
I will not bother to ..wits you :Lbout. inerual ,:jueutions, out it you
come, out to Colorado ritf can uiccuus thom in oetail.

I have clilTioulties just as

have, and Do., I 4:m golo!., to to handlooppsa ty bting away from the

an

when

they rLt,uiro solution.
You and I have been in harae.is now for tea years.

they tre

It may be that

tdi,) L4.1t3 collars oft' of LIG Within toe next year and tuna us

into the past7;re to roam a bit - in other koros,

If ..e do, it

suocessora.
lamp burning.

must.

b:::

turn over our jots to

pith such underst.aluia6a sae ad

Kepp the

5o, agt-do I eay, try to come over to sec me and we will talk

it L.11 over.

It .r.La ouch a relief to hive your letters.
love Rat blot:sing,

a thousand thuuce for the measagao of goo a will.

hfrection;ituly,

The ikint Honorable goloattozu C. iiormtn,
Thorpe Lodge, Campaen Hill,
Lonuon,




1 am 6enaing you my

270 Perk Avenue,
Neve York City,
November 28, 1926
My dear Monsen:

ileerrin to yours of October 29, one of the first things which I red
intended to do upon toy return home ..a to di 3coss bith my ussoci:tee 4 itobsible

coatmunicottion to you in line 4th our conversation on the sobjoct of the credit
to the Bank of 1,Ant;1,nd.

but lay illneos hoe deloyod this.

You me), recall ay stetine; that this subject sae on my colander to be
tooen up about six months before the credit expired.

Under tt e circumstooces, I

hardly see ho it is possible for us to ex,-,reee my viea or us-kke any su6destions
until we hear from you.

The influence of the coal strike, ,-nd itu to ction upon

your trade, h,s toen such oe to lake the treettsent or this credit one of special
importance just nob.

Ana these unexpected developments mast) it difficult for ub

to 1.ntioipftte bhp t you Tay wish.

On the other hand, it seems to be more important

because of these developments that we should come to some understanding Pss to the

terminttion or reoewol of th© credit, ano retch on understs.nding with Metero J. P.
Morgan and Compony

Lh' British Treasury bell in advnce of m..turiLy.

clude your Treomory b,.c,use of the guaranty.

I in-

This will ovoid & grett deal of publio

discusesion and comme.nt, one the sort of speculation which is not .;ood for the ex-

ohen6e position ono atrtility anyway.
You sill unaeretond ay writin6 you in they above spirit, and C'f: sure to

toi.e it oe evioecce of our continu'd interest in your pions.
kith warmest regt,rds, I n

The Right tiouor&ble Montagu C. ',unwell,
Governor, The Bozic of kiiglanci.



Sincerely your:),

r

270 Ferk :venue,
Bev Tort City,
ievoribpr ?6,

My dear Muraun:

This in the first d4 I have felt ablo to do =oh sore then touch the
the firat matter on zy mind is your letter of October 2i.).

surfaoe of things,

l grit. ,,,nvaer it by parzgrephs as it. it, written.
E4t iirst let. me say thet while ;r. Jny and Mr. He rrieon have tola we
something oi. 80.14.ium ....at. what trnspired, ;ay discussions with then have been rAber

gthieral ::acs details arcs still 1- leafs. .
2.

I .1.z. not it.le to coswent much on interest r-stes.

My incormation

is too annoszplute, but if p: et ez;:erience is any d,,ide to the future,

should

nave stout 34 days of ft.irly active money, }_rid after the first or the year some
',Plaine, of ratse.

It ees.ls to pie that you must grin and bet r the conse.uences

of toreign loans, even if it does ek;cic soma gold out of you, b-osuee thoze lo-_n+

in tt,e

run ars going to built.; up your foreign tr de, tnd with ti,e coal strike

ended, surely that is stt..t you :seed more thin anything.

It it unfortuwite hov-

erer that he gale: drain c..unot h.e shift...et to us, Ind I wish Sch&cht could find
*tease cir dr.:wing ui;on
3.

LA

for his re uirements.

I have answered this through Miss B eeoor in y former letter, and

the only adoitional coma:vat now justified is to expreee isatisfsotion that your

swot of humor is still 4th you, nd that yo. recognize nine::
4.

From Mies :31..s,..-okeri c letter you ghthered that there were one or

tvo things about the e.eliii,a1 Credit thA
tion arising with the Elvank of Italy.



ointed me, - principt.11y the situa-

I wonder if you recall the talk we had at

11.2e.26

Mr. Norman

2

Antibes on t'ee subject of central beak independence.
mina wue filled with whet I heti obeerved there.

Having juet been in Itely ray

It eeeme to me that it is a mis-

take to expect identically the ti.::.me tretment of bent= ul
countries.

i Jeut:

..:Iferent

It is just as impossible to expect icentic..1 reeelte in u oh oeee from

our present efforts in that regerd es it is impossible to expect the Bali° size and
ehtepe ehoe to fit every foot.

-het is

it

and approprite in an engloureenitehie

Sexon country, or in eey Gereeny or Kell enu, uey

priete in Italy or Freace or in fetch

rt.

country es Finleedl

in4proe

Much espenda upon

indiviuu :l s, - more even than upon lees or theories.
The

ec,,tion of the inclepeneeloc of the Be. ne of Itl.y at tee present

moment it Et-I aw s to e:e should be vieeen a little differently from the way it ie ca be
;Jed I am inclined myself tea

viewed in t.ny of the other countriee you mention.

eeih the eituetion by putting "ineeeendenoe" in the noels on ono sine eela "et -Lii-

izetion" in the eclat) on the other slue, and to decide thet stebilizeeiue outeelehe in
importence yo ;r conception of orthodox independence.

cote clone, I groile. be inclined to go right aleced

Iu feat, were it left to my

it Itelien steoiliaation if

reLuested, juet as we diecuesed it in London eerlier this yeer with Lemont, end rattle°
whet pro8reegs, if sny, is possible toeard an UnCierriteLdille a.8 to indepenceace.

*ay be that no i roerees can be mode.
will

)-..e beide.

controlled the

It

And I em inclined to thiee that not very much

On the other henc, ehile 7 r. Natbein expreceed the view that Velpi

o-' Italy, Volei bite expreeeed the view to others that as rapidly

:es possible the Busk choeld be treed from political or Etete control.

Furthermore,

if you 411 compare the recoro of the reelaticne of the present Italiae Goverment

with the Seek of Italy to that of other Governments kith their central banks, for
ely the past three yet.re, I believe, you will find that the Italian Uove:In e

hes a

record for fairnese ehice. is juet as good, if not better thee, any of Leo others.




5

Mr.

Norman

11.26.'86

To Lummarize, tberttore, I do not bet boa any of us c,n afford to ,.emit
of
tiny L.-lt in the Splendid progrete now being made to
=rd monetary reorganisation in
airope simply in order Cn attempt to impreea or itapobe
any particular theory of central
bank reano4ement and inlei:ei5dence upon the aovernment
oi Ytniy. ..:Joh effort will
tail Lnyway.
It
reassure me a.nd encourage me a good deal if I coule
hr_ve

word from you tb:.t you do not cie5gree with this
vies.

our

In fact I

11:,,a gatherud

L

L

at Antibes had left us fairly well agreed on the point.
5. I am ..riting you seprately on this.

A dry or to

z..go

I

:rote you about visiting

very much.

me.

And I leant you to come

A. to the time, I 411 need until Non Tears, to get on my feet.
I find in my First

ittle lone:ur aeeixyr, to get out of bed and into r oh it

t,At I am udaae to et-nd up and am so exceedingly
weak that I will not be of much
use unoer six weeks or ixore.
My boat reg-trus to you,

+1.8

Yourb sioobrely,

The ni6ht Sonorable Montagu C. Norman,
the 1.1,anii. of Lce,lk.tc.
London, L. C. 2,
11.41s.ed.




New York, 71. Y.

December 20, 1926.

Aodgerite
London
Eon not having seen recent cable wchn,,afte Oat

possibly having received your private letter sent
through Uarrison asks me send vord he will soon
take cottage ;she-1'111e and expects you there in
.:anuary.




ecretari.

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