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Certificate of Original Contribution
Gold Fund contributed re cashing American Travelers' Credits held
by Tourists abroad, under Plan, dated August 4, 1914.

BANKERS TRUST COMPANY
HEREBY CERTIFIES, as Depositary in City of New York, appointed under the Plan above mentioned, that it has received
from

as an Original Contributor $
to be disposed of and administered as part of the Gold Fund created by said
Plan, subject solely to the directions of the Fund Committee provided for in said Plan, as such Committee may be constituted
from time to time. The contributions of the Original Contributors may be reduced pro rata by additional contributions to

the Gold Fund and the amounts of such reductions shall be payable from said additional contributions.
The Contribution represented hereby has been made and received, and this Certificate has been issued, under and subject
to the terms and conditions of a said certain Plan, dated August 4, 1914, executed by all of the Original Contributors and filed by
said Original Contributors with the undersigned, as Depositary named in said Plan, on the 17th day of August, 1914. The holder
hereof by acceptance of this Certificate agrees to all the terms and conditions of said Plan and that the Contribution repret
sented hereby shall be administered and disposed of as in said Plan provided.
The interest represented by this Certificate is transferable, subject, however, to the consent of the Fund Committee,
only on the books of the undersigned upon surrender hereof duly assigned by the registered holder, or by his attorney authorized thereunto in writing in exchange for a certificate of like tenor.
Dated, New York City,
1914.




1

,

BANKERS TRUST COMPANY, as Depositary,

I

il::CRA EN
Assistant Secretary

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the in substitution of power full with Depositary,
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appoint and constitute irrevocably hereby do
and Certificate within the by represented undersigned
the of interest and title right, the all Certificate,
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within the in mentioned Committee, Fund the of sent
con- the to however, subject, transfer, and assign sell,
hereby undersigned the RECEIVED, VALUE FOR

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to

PLAN FOR GOLD FUND
IFOR USE IN CASHING

AMERICAN TRAVELERS' CREDITS
HELD BY TOURISTS ABROAD

Dated August 4, 1914

J. P. MORGAN & COMPANY
BROWN BROTHERS & COMPANY
KIDDER, PEABODY & COMPANY
FIRST NATIONAL BANK
NATIONAL BANK OF COMMERCE
NATIONAL CITY BANK
GUARANTY TRUST COMPANY OF NEW YORK
FARMERS LOAN & TRUST COMPANY

6

BANKERS TRUST COMPANY
AMERICAN EXPRESS COMPANY
Original Contributors

Filed August 17, 1914, with

BANKERS TRUST COMPANY, Depositary
16 WALL STREET
NEW YORK CITY

4

By C. R. AGNEW, Vice-President.
AMERICAN EXPRESS COMPANY,

By G. C. TAYLOR, Vice-President.

Original Contributors.

S

"EXHIBIT A."

PLAN FOR GOLD FUND
1OR USE IN CASHING

AMERICAN TRAVELERS' CREDITS
HELD BY TOURISTS ABROAD.

FIRST: The Gold Fund (above mentioned and hereinafter called "Gold Fund") has been
created, in the first instance, by contributions of the following ten bankers, banks, trust companies
and express company :

J. P. Morgan & Company,
Brown Brothers & Company,
Kidder, Peabody & Company,
First National Bank,
National Bank of Commerce,
who are hereinafter termed "Original Contributors."

National City Bank,
Guaranty Trust Company of New York,
Farmers Loan & Trust Company,
Bankers Trust Company,
American Express Company,

SECOND: The Gold Fund (of an amount or amounts to be fixed from time to time in the
discretion of the Fund Committee hereinafter mentioned), has been created to be administered
and disposed of, as provided in this Plan, through payments made from the Gold Fund, in

cashing Travelers' Credits (either Letters of Credit or Travelers' Cheques), issued by any
American bankers, banks, trust companies, express companies or other American institutions
in good standing and held by tourists abroad, there having difficulty in cashing, or being unable
to cash, such travelers' credits in the usual course of business, by reason of business conditions
in the United Kingdom of Great Britain and Ireland and in Continental Europe being unsettled
by the wars there now prevailing. All proper expenses, including interest and disbursements,
incurred in, and incident to, effecting such purposes, shall be paid from the Gold Fund.
THIRD: All contributions to the Gold Fund shall be in gold and the initial contribution of
each Original Contributor to the Gold Fund shall be five hundred eleven thousand seven hundred dollars ($511,7oo.). Contributions to the Gold Fund from American bankers, banks,
trust companies, express companies and other American institutions other than the Original Contributors, will be received and such other bankers, banks, trust companies, express companies
and other institutions shall be known as "Additional Contributors." Any contribution made by
an Additional Contributor shall be subject to the approval of the Fund Committee, hereinafter
mentioned. All contributions to the Gold Fund shall constitute a single fund. Whenever an
additional contribution shall be made to the Gold Fund, the then respective contributions of
the Original Contributors shall be reduced in proportion to their then contributions, and the
Original Contributors shall be reimbursed from such additional contributions in the amount of
any such reduction.
FOURTH :

The contributors may increase, from time to time, the respective amounts of their

contributions.

The Original Contributors' contributions shall not be reduced, as provided in

Article hereof numbered "Third", to less than an aggregate of three million dollars ($3,000,000.).

In the discretion of the Fund Committee, the Gold Fund may be reduced from time to

time and the decrease in the Gold Fund represented by any reduction (except reductions provided for in Article hereof numbered "Third"), shall be distributed among all the Contributors
proportionately to their then respective contributions. Whenever reductions shall be made in the
contribution of any Contributor, such Contributor shall, upon request, surrender to the Depositary, duly assigned, his certificate of contribution hereinafter mentioned, and receive in exchange
therefor the share of the reduction apportionable to such Contributor and a new certificate of
contribution for the face amount of the contribution as so reduced.

Firm : The ten Original Contributors have appointed and constituted the following ten
persons as the first members of the "Fund Committee":
George C. Taylor,
Benj. Strong, Jr., Chairman,
Charles D. Norton,
J. P. Morgan,
C. R. Agnew,
James Brown,
James S. Alexander,
William L. Benedict,
John H. Gardin.
A. J. Hemphill,
SIXTH : Each Contributor (Original or Additional) constitutes and appoints the Fund Committee, in respect of all transactions affecting the Gold Fund and the interest of each Contributor in the Gold Fund, its or their agent and attorney in fact, as though the Fund Committee
were the sole owner of the Gold Fund and each contribution thereto, with plenary power and

authority to act with respect to any matter or transaction affecting the Gold Fund, and the
administration and disposition of it, and of any interest of any Contributor therein, with full
power to employ and appoint, both at home and abroad, sub-committee's, agents and sub-agents
and attorneys, fiscal agents and depositaries, appointed, in the full discretion of the Fund Committee, to act on behalf of the Fund Committee, in and to whom, or any of them, the Fund Committee may delegate any and all matters and transactions relating to the Gold Fund and any
dispositions thereof.

The expenses, including interest incident to, and disbursements of the Fund Committee in,
the creation, administration and disposition of the Gold Fund are to be borne by the banks,
bankers, trust companies, express companies and other institutions whose customers in Europe
shall be accommodated or benefited by the Gold Fund, in the proportion which the amount of
such accommodation or benefit received by such customers bears to the total amount of the
Gold Fund so utilized, and this without reference to whether such persons or institutions
collect the same from their customers or not.
All such amounts not so reimbursed shall be charged to and paid by the several Contributors
in proportion to the face amount of the certificates of contribution respectively held by them
when the accounting shall be finally had by the Fund Committee.
The Fund Committee shall have full power, in its discretion, to determine when no further
contributions will be received for the Gold Fund, and to determine when the Gold Fund shall
be terminated and further transactions in connection therewith cease. Upon any such termina-

tion, the Fund Committee shall file with the New York City depositary of the Gold Fund a
statement and an account of the Fund Committee's transactions and shall notify the registered
holders of outstanding certificates of contribution of such filing, to surrender such certificates,
duly assigned, and to receive in exchange theref or their respective pro rata share of any balance
of the Gold Fund then to the credit thereof.

The Fund Committee shall consist of at least six members, and not more than
ten members. No one shall be a member of the Fund Committee who shall not be an executive
officer or member of the firm of one of the Original Contributors. No Original Contributor
shall have more than one representative on the Fund Committee. A member of the Fund
Committee may resign, and any vacancy created in such manner, or otherwise, shall be filled
by the remaining members of the Fund Committee by the election of a successor member nominated by the Original Contributor represented by the member in respect of whom such vacancy
occurs. Upon the election of a successor member, as aforesaid, such successor member shall
become forthwith vested with all the powers conferred upon the original members of the Fund
Committee by this Plan. Should any Original Contributor at any time not be represented upon
the Fund Committee, on application of such Original Contributor, the Fund Committee shall
elect a representative of such Original Contributor nominated by that Contributor, to membership on the Fund Committee. A majority of the membership of the Fund Committee shall constitute a quorum.
The Fund Committee can act by majority vote or by writing signed by a majority of the
Fund Committee as at any time constituted. The Fund Committee can adopt any organization
which it may approve and may adopt its own rules of procedure. Any member of the Fund
Committee may appoint and act through a proxy approved by the Fund Committee, provided
such proxy and member are executive officers of the same institution, or members of the same
SEVENTH :

firm, as the case may be.

Bankers Trust Company, as one of the Original Contributors, has been appointed
Fiscal Agent and Depositary in the City of New York of the Contributors for the purposes of
the Gold Fund, and shall be subject to the orders and directions of the Fund Committee alone,
and against the receipt by it as Depositary of contributions made by the Contributors, shall issue
a certificate of contribution, or receipt, in form to be approved by the Fund Committee.
EIGHTH :

NINTH : Neither the Fund Committee, nor any number thereof, nor any of the Contributors,
assume any liability, or make any undertaking, in respect of the receipt, transmission and disposition of the Gold Fund, or of the interest of any Contributor therein, or in respect of the return
of the Gold Fund or any such interest to any other Contributor. The contributions made by
the respective Contributors are made voluntarily and no undertaking is made by any Contributor

or any member of the Fund Committee as to any of the contributions, except to act in good
faith, and all action taken by the Fund Commitee in good faith shall be subject to review by
no one, and the Fund Committee, and none of them, shall incur any liability in respect thereof.
No Contributor assumes any risk except the risk attaching to such Contributor's contribution.
The Contributors do not assume any partnership relation to one another and are not to be
deemed partners for any purpose.
TENTH : This Plan may, from time to time, be amended by the Fund Committee in any
detail of the administration and disposition of the Gold Fund, and with respect to the amount or

amounts of such Fund, so long as the purpose of the Plan as set forth in the Article hereof
numbered "Second" is not departed from in substance and effect.
ELEVENTH : A copy of this Plan and all amendments hereof shall be filed by the Original
Contributors with Bankers Trust Company, Depositary in New York City of the Gold Fund, and

S

such Plan or any amendment hereof so filed shall be deemed the only and sole statement of the
terms and conditions of the Plan upon which the Gold Fund has been created, and is to be contributed to, and by which the Gold Fund is to be administered, disposed of and determined.

Twarrx : This Plan is dated as of August 4, 1914, and this Plan and all the terms and
conditions hereof are deemed to have been in full force and effect from the first contribution by
any Contributor to the Gold Fund.
Dated as of August 4, 1914.
J. P. MORGAN & CO.,
BROWN BROTHERS & CO.,
KIDDER, PEABODY & CO.,

FIRST NATIONAL BANK,

By CHARLES D. NORTON, Vice -President.
NATIONAL CITY BANK,

By JOHN E. GARDIN, Vice-President.
NATIONAL BANK OP COMMERCE,

By J. S. ALEXANDER, President.
BANKERS TRUST COMPANY,

By BENJ. STRONG, JR., President.
GUARANTY TRUST COMPANY OP NEW YORK,

By CHARLES H. SABIN, Vice-President.
FARMERS LOAN & TRUST COMPANY,

By C. R. AGNEW, Vice-President.
AMERICAN EXPRESS COMPANY,

By G. C. TAYLOR, Vice-President.

The foregoing Plan filed with Bankers Trust Company, as Depositary therein mentioned,
by the bankers, banks, trust companies and express company, therein mentioned as Original Contributors, as of the fourth day of August, 1914.
Dated, New York, August 17, 1914.
[CORPORATE SEAL]

ATTEST :

B. W. JONES,

I

[6423P]

NY, as Depositary,

B. CLOSE,
Vice-President.

Assistant Secretary.

Interim Receipt

CERTIFICATE OF ORIGINAL CONTRIBUTION
No. A

Gold Fund contributed re cashing American Travelers'
Credits held by Tourists abroad.
(Of which $3,000,000 shipped
August 6, 1914, by U. S. S. Tennessee.)
BANKERS TRUST COMPANY

hereby certifies, as depositary in City of New York, appointed by the
Ten Original Contributors of the Gold Fund, above mentioned, that it
as an Original Contributor
has received from
to be disposed of and administered as part of the Gold Fund,
subject solely to the directions of the Fund Committee appointed by the
Original Contributors, as such Committee may be constituted from time
to time. The contributions of the Original Contributors may be reduced
pro rata by additional contributions to the Gold Fund and the amounts
of such reductions are payable from said additional contributions.

.

At the time of the issue of this certificate the Gold Fund
has not been limited in amount, but such amount is subject to be fixed
110from time to time, in the discretion of said Committee. The Gold Fund
(of which $3,000,000 was shipped August 6, 1914, by U. S. S. "Tennessee")
may be transferred through credits or otherwise as determined by the
Fund Committee.
This All an Interim Receipt exchangeable for permanent certifis contributions together shall constitute a single
Fund to be disposed of and administered solely by said said Committee, which
icate of Original Contribution, in form approved by Committee, which
shall have plenary authority in the premises with respect to the Gold the
when prepared shall be issued subject to said Plan with respect to
Fund and all in exchange for this Certificate duly assigned The blank.
The
Gold Fund expenses and charges in connection therewith. in expenses,
interest, by acceptance hereof agrees to all the terms of this in, the
holder charges and disbursements incident to, and incurred certificate.
creation and disposition of the Gold Fund, (including such expenses,
interest and disbursements TRUST COMPANY, cashing travelers' credits
BANKERS in respect of as Depositary,
issued by noncontributors and by them not reimbursed), will be a charge
against the Contributors, as provided in a Plan to be filed with the
By
undersigned by said Original Contributors, and which shall govern the
administration and disposition of the Gold Fund.
Assistant Secretary.

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GOLD

STATEMENT

111

AUG. 6 -

100,000.

25,000.

100,000.
25,000.

100,000.
50,000.
100,000.
5,000.

25,000.

100,000.

.

.

.

.

.

100,000.

.

.

.

25,000.
100,000.

eveland.. 50,000.
imore
35,000.

nk

RECEIVED

FROM

Corn Exchange Bank

Kountze Bros
150,000.

,Ohicago.100,000.

go

AMOUNT

International Banking Corporation

l Bank

ia

OF

SYNDICATE

150,000.
25,900
.

100,000

SUB-PARTICIPANTS

X200,000.
50,000.

Original Contributors

Draw from the additional contributors

Additional Contributors to Date
To make up balance above

Commitment of Original Contributors
Reduced 1/10th viz

Funds to be returned as follows:

Each of the Ten Original Contribu

their certificate of contribution and they wil
a new permanent certificate for the balance.

made up the gold will be requested to hand us

$117,714.28, and will receive gold certific*Ites

August 19th -

RE:

GOLD FUND

078.200 returned to each Origina

PRO RATA DISTRIBUTION

200,000

AMERICAN TOURISTS RELIEF FUND NUMBER 1.

Bankers Trust Company
Farmers Loan & Trust Compa4y
National Bank of Commerce
J. P. Morgan & Company
American Express Company
Guaranty Trust Company
Kidder, Peabody & Campany
Brown Bros. & Company
National City Bank
First National Bank

4:14,450

14,450
14,450
14,450
14,450
14,450
14,450
14,450
14,450
14,450

,

2144,500.

$72,972.50
72,972.50
72,972.50
72,972.50
72,972.50
72,972.50
72,972.50
72,972.50
72,972.50
72 972.50

$729,725.

AMERICAN TOURISTS RELIEF FUND NUMBER 2.

Corn Exchange Bank
International Banking Corp.
Kauntze Brothers
Hanover National Bank
Hallgarten & Company
U.S.Mortgage & Trust Co.
Columbia Trust Company
Chemical National Bank
Equitable Trust Company
Redmond & Company
Continental & Camq.Nat'l.Bank,
Chicago.
Chasm National Bank
Fourth Street Nat'l Bank,Phila.
Knauth, Nachod & Klzhne
Illinois Trust & Savings Bank,
Chicago.

Northern Trust Company, Chicago
Citizens Savings & Trust Co.,
Cleveland.
Merchants Loan & Trust Company
Chicago.

Alex. Brown & Sons, Baltimore
Irving National Bank
American Exchange National Bank

£ 6,666.13. 4
1,666.13. 4
3,333. 6.
833. 6.
3,333. 6.
833. 6.
3,333. 6.
3,333. 6.
166.13.

8
8
8
8
8
8
4

033,666.67
8,416.68
25,250.00
16,166.33
4,208.33
16,833.33
4,208.33
16,833.33
16,833.33
841.67

3,333.
833.
3,333.
3,333.

8
8
8
8

16,833.33
4,208.33
16,833.33
16,833.33

833. 6. 8
3,333. 6. 8

4,208.33
16,833.33

1,666.13. 4

8,416.68

5,000.
1,166.13. 4
833. 6. 8

25,250.00
8,416.68
4,208.33

3,333. 6. 8 £55 500.

161E103

5,000.

6.
6.
6.
6.

1:200,000.

$280,275
$1,010,000.

DIRECTORS.
JAMES S.ALEXANDER,Prest.NatBankofCommerce in N.Y.
STEPHEN BAKER. President Bank of the Manhattan Co.
SAMUEL G. BAYN E. President Seaboard Nat.Bank.

EDWIN M. BULKLEY, Spencer Trask & Co.Bankers.
JAMES G. CANNON, President Fourth Nat. Bank.

E. C. CONVERSE. President_
THOMAS DEWITT CUYLER, Prest.Commercial Trust Co.Phila.

HENRY P DAVISON, J. P Morgan & Co., Bankers.

R UDULPH ELLI 5, President Fidelity Trust Co. Phila.
E. HAYWARD FERRY, Vice President Hanover Nat.Bank.
WALTER E FREW, President Corn Exchange Bank.
F RE DK T. HASKELL)/ PrestIll.Trust&Sayings Bank Chicago.
A. BARTON HEPBUR N. Chairman.Chase NatBank.
FRANCIS L. HI N E, President First Nat.Bank.
THOMAS W. LAMONT. J. P Morgan & Co. Bankers.
EDGAR L. MARSTON, Blair & Co Bankers.
JOSE PH B. MARTIN DALE, President Chemical Nat Bank.
GATES W. MFGARRAH.PrestHechanicsAMetalsNatBank.
CHARLES D. NORTON, Vice Prest.First NatBank,

WILLIAM C. POI LLON. Vice President.
DANIEL E. PO MERCY, Vice President.

WILLIAM H. PORTER. J. P Morgan &Co. Bankers.

OFFICERS.
E-7e7e40,14.,4-ReS-C-7Pre.5T6ent,

B-E NJ. STRONG, J RIfifire-Rresident

BANKCRS TRUST

COMPANY
CA PITAL
SURPLUS

$ to, oo o o
10,000.000

CABLE ADDRESS: BANKTR UST. NEW YORK.

16 WALL STREET

WILLIAM C. POI LLON, Vice President.
D. E. POM E ROY, Vice President
W. N. D UAN E, Vice President.

I. KENT, Vice President.
HAROLD B. THORNE, Vice President.
F.

F. N. B. C LOSE. Vice President.
GEO. G. THOMSON, Secretary.

GEORGE W. BENTON Treasurer.
GUY R ICHAR DS, Asst. Secretary.
H.W.DONOVAN, Asst.Treasurer.
BETH UNE W. JONES, Asst.Secretary.
H. F. WI LSO N, J R.. Asst.Secretary.

R. H.GI LES, Asst.Treasurer.
PERRY D. ROGUE, Asst. Secretary.
HARRY N. DU N HAM, Asst, Treasurer
I. M IC HAE LS, Trust Officer

S EWARD PROSS ER. Prest Liberty Nat.Bank

DANIEL G. RE ID. Vice President Liberty Nat.Bank.
BENJ. STRONG. JR. Vice President.
EDWARD F SWIN NEY. Prest. First NatBank,Kansas City
GILBERT G. THORNE, Vice President.NatPark Bank.
EDWARD TOWN SE ND. Prest
Traders' NatBank.
ALBERT H.WIG G I N. President Chase NatBank.
SAMUEL WOOLVERTON, Vice President Hanover Nat.Bank.

FOREIGN EXCHANGE DEPARTMENT

Gentlemen: -

N E W Yo R K

Sept. 1, 1914.

DIRECTORS.

OFFICERS.

JAMES S. ALE XAN DE R, Prest.Nat.Bank of Commerce in N.Y.
STEPHEN BAKE R, President Bank of the Manhattan Co.
SAMUEL G. BAYNE. President Seaboard Nat. Bank.

EDWIN M. BULKLEY, Spencer Trask& Co.Bankers.
JAMES G. CANNON. President Fourth Nat. Bank.

E. C. CONVERSE, President.
THOMAS DEWITT CUYLER, Preat.CommercialTrustCo.Phila.

HENRY P DAVISON. J. P Morgan & Co.. Bankes.

RUDULPH ELLIS, President Fidelity Trust Co. Phila.
E. HAYWARD FERRY, Vice President Hanover Nat.Bank.
WALTER E. FR E W, President Corn Exchange Bank.
FRED'K T MASKELL.VPreSt.111.Trust&Savings Bank Chicago.
A. BARTON HE PBUR N. Chairman.Chase Nat Bank.

FRANCIS L. H I N E.President First Nat.Bank.
THOMAS W. LAMONT. J. P Morgan & Co. Bankers.
EDGAR L MARSTON. Blair & Co Bankers.
JOSEPH B. MARTI NDALE. President Chemical Nat.Bank.
GATES W. H.GARRAH.PrestMechanicsAMetals Nat. Bank.
CHARLES D. NORTON, Vice Prest.First HatBank,

WILLIAM C. P01 LLON. Vice President.
DANIEL E. POMEROY, Vice President

WILLIAM H. PORTER. .J. P Morgan &Co. Bankers.

E. C.CONV ERSE, President.
B ENJ. STRONG, J R.Vice President

WILLIAM C. POI LLON, Vice President.
D. E. POM E ROY, Vice President.

BANKERSTRUST

W. N. DUANE. Vice President.
F. I. KENT, Vice President.
HAROLD B. THORNE , Vice President.
F. N. B.CLOSE. Vice President.
GEO. G. THOMSON. Secretary.
GEORGE W. BENTON, Treasurer.

COMPANY
$10,000.000
10,000.000

CAPITAL
SURPLUS

GUY RICHARDS, Asst. Secretary
H.W. DON OVAN, Asst.Treasurer

BETHUNE W. JONES, Asst.Secretary.

CABLE ADDRESS: BANKTR UST, NEW YORK.

H. F WI LSO N,J R., Asst.Secretary

R. H. GI LES, Asst.Treasurer
PERRY D. BOGUE, Asst Secretary.
HARRY N. DU NHAM, Asst, Treasurer.

16 WALL STREET

I. MICHAELS, Trust Officer.

SEWARD PROSS ER. Pre st Liberty Nat -Bank

DANIEL G. REID. Vice President Liberty Nat.Bank
BENJ. STRONG. JR.Vice President.
EDWARD F SWINNEY, Prestfirst Nat. Bank.Kansas City.
GILBERT G. THORNE, Vice President NatPark Bank
EDWARD TOWNSEND. Prest.Imp& Traders' Nat. Bank.

N E w Yo R K

ALBERT H.WI G G I N. President Chase Nat.Bank
SAMUEL WOOLVERTON, Vice President Hanover Nat Bank.

Sept. 1, 1914.

FOREIGN EXCHANGE DEPARTMENT

a

Gentlemen: -

In accordance with the arrangement made between the
New York Committee and the London Committee covering the gold
shipment, we are to-day cabling the London Committee to pay
to

for your account, as your pro rata share of the
disbursement, at the rate of 5.05. As a number of subscribers
desired to have payment made in New York in Dollars, it was agreed
that the corresponding sterling amount should be divided pro rata
among the original contributors, who preferred Sterling exchange.
There has therefore been allotted you g 618.9.6 which
we are cabling the London Committee to pay your correspondent,
as mentioned above, and we shall be pleased to receive your check
for V,123.30, as the equivalent of this amount at 5.05.
Kindly surrender yel:Tr certificate immediately and receive

a new certificate for your balance in the Fund.
Very truly yours,
BANKERS TRUST COMPANY,

S

Depositary.
at 5.05 --

g 618.9.6

at 5.03 -- r3,123.30

MEMORANDUM
Re- GOLD LOAN

000

1.

Issue Permanent Certificate of Participation to the additional contributors.

2.

Issue Certificate of Participation to the original contributors less their
proportion of $782,000.

3.

Draw checks to the order of each of the original participants of 478,200.

After the above has been done, We should have outstanding
$6,000,000. in Certificatesof Contribution, divided as follows:Original Contributions
Additional Contributions

$4,335,000.
1,665,000.

B.W.J.

August 18,1914.

DIRECTORS.
JAMES S. ALEXANDER, Prest.Nat. Bank of Commerce in NY
STEPHEN BAKER, President Bank orthe Manhattan Co.
IrUEL G. BAY NE President Seaboard Nat.Bank.
IN M. BU LKLEY, Spencer Trash & Co. Bankers.
CONVERSE, President AstorTrust Co.
THOMAS DEWITT CUTLER, Prest.Commercial Trust Co.Phila
HENRY P. DAVISON, J. P. Morgan & Co. Bankers.
WM. NORTH DUANE, Vice President.
RUDULPH ELLIS, President Fidelity Trust Co. Phila.
E. HAYWARD FERRY, Vice President Hanover Nat.Bank.
WALTER E. FR EW, President Corn Exchange Bank.
FRED.K T. HASH ELL,V.Prest. III.Trust &Savings Bank Chicago.
A. BARTON HE PBUR N, Chairman Chase Hal.Bank.
FRANCIS L. H I N E. President First Nat. Bank.
EDGAR L. MARSTON, Blair& Co. Bankers.
JOSEPH B. MARTIN DALE, President Chemical Nat.Bank.
GATES W. MFGAR RAH, Prest. Mechanics'& Metals Nat.Bank.
CHARLES O. NORTON, Vice Prest.First.Nat.Bank
WILLIAM C. POI LLON, Vice President.
DANIEL E.P 0 M ER OY,Vice President.
SE WARD PROSSER, Prest. Liberty Nat. Bank.
DANIEL G. REID, Vice President Liberty Nat.Bank.

OFFICERS.
BENJ. STRONG,JR., President.
WILLIAM C. POILLON, Vice President.
D. E. POMEROY, Vice President.
W. N. DUANE,Vice President.
F. I. K ENT, Vice President.
HAROLD B.THOR NE ,Vice President.
F. N. B.CLOSE,Vice President.
GEO. G.THOMSON, Secretary.
GEORGE W. BENTON, Treasurer.

BANKERS TRUST

COMPANY
CAPITAL
$10,000,000
SURPLUS FUND 10,000,000

GUY RICHARDS, Asst. Secretary.
H.W. DONOVAN, Asst.Treasurer.
BETHUNE W. JONES, Asst.Secretary.
H. F. WI LSON,JR.,Asst. Secretary.
R. H.GI LES , Asst. Treasurer.

CABLE ADDRESS: BAN KTRUST, NEW YORK.

PERRY D. BOGUE, Asst.Secretary.
HARRY N. DUNHAM, Asst.Treasurer.
I. MICHAELS, Trust Officer.

16 WALL STREET

BENJ. STRONG,Je. President.
EDWARD F. SWINN EY, Prest.First NatBank,Kansas City.
GILBERT G.TH OR N E, Vice President Nal.Park Bank.
EDWARD TOWNS END,Prest.linp.&Traders' Nat.Bank.
ALBERT H. WIGGIN, President Chase Nat.Bank.
SAMUEL WOOLVERTON, Vice President Hanover Nat.Bank.

NEW Yo

R K

August 12, 1914.

Gentlemen: -

We telegraphed you to discontinue all further sales of American Bankers Association Travelers' Cheques because the unsettled business conditions abroad prohibit
IIIfor a time the cheques from being used there for the purpose for which they are issued.

The importance of providing some arrangement which would permit of the con-

tinuance of the domestic use of ouch cheques has led to the following plan, pursuant
to which you are authorized to continuo the calo cf Travelers' Cheques for use in the
United States.

Such plan, we understand, has been substantially followed by all

companies interested in the issue of Travelers' Cheques.
Each cheque sold by you must bo stamped on the face (through the globe),
ALSO on the back (through printed matter) as follows: -

This cheque issued for use
and redemption within the
United States only.
In addition to stamping the cheques, kindly communicate to each purchaser
that the cheques are now being issued only for use and redemption in the United States.

We must also ask you to remit at ono in New York funds for all cheques
sold on the day of sale.
By your co-)poration in such arrangement the domestic use of the cheques,
4411which so far has been a most imp)rtant feature of their issue, can be continued.

ery truly

ours,

ntndint.

-

C)

We have been informed that at the time the legal holidays were declared in London, and distress arose among
American travelers due to their fear that they would be
unable to obtain money on their cheques and letters of
credit, through your good offices, the Great Eastern Railway Company distributed money on American travelers' credits,
thereby relieving much anxiety and distress.
It was the unanimous sense of the Committee that you
should receive from them an early ezpression of their appreciation of the action taken by your company, which I now
beg to convey.
You are, of course, fully acquainted with the various
relief measures undertaken in :iashington and New York, bat
the knowledge that one of our own friends from home had
been willing to stand in the breach at a critical moment
has created a warm feeling of regard for you and for your
associates which we hasten by this means to express.

With asurance of our grateful appreciation, we are.
Very truly yours,
Benj. Strong, Jr.

Letter written by Mr. Strong to Mr. Kent:

-2Letter to Mr. Kent by Mx. Strong -

Aug. 24-

-3.-

Letter to ME. Kent by Mr. Strong

Aug 24-

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his return.

LETTER WRITTEN BY MR. STRONG.

August 20, 1914.
Hon W. J. Bryan,
Secretary of State,
Washington, D. C.

My dear Mr. Secretary:

It has not been possible until the present time for me to write,
as I had hoped to do, making some explanation of the urgency which developed
in regard to the protection of travelers' credits held by our countrymen in
Europe, and furthermore the reasons for my assuming that no effective measures for their protection could be undertaken without cooperation of our
Government.
Travelers' Cheques and Letters of Credit which are issued by American
banking institutions and bankers total many millions in the course of one season;
same institutions which make sales as high as ',30,000,000 or 040,000,000 annually
have outstanding at one time from c5,000,000 to 015,000,000 of these credits which
may be cashed at the election and convenience of the travelers in any part of the
world. The banks which issue them are unable to anticipate in what volume they
may be cashed at any given point, and they are accordingly issued under banking
contracts, by the terms of which the foreign institutions which make the payments
on the credits receive reimbursement by drawing drafts on London at the rate of
exchange current at that place on the day the drawing is made. Without this method of London reimbursement it would be necessary for the banks issuing these credits to carry very large balances in a great many cities, the total being far in
excess of the total credit outstanding, and naturally the business would be unprofitable, as it would absorb too much capital if conducted on that basis.
As soon as the crisis in foreign exchange occurred and it became known
that London reimbursement was likely to be disarranged and possibly be absolutely
discontinued, it was apparent that those banks on the Continent which were in the
habit of employing London reimbursement under these contracts might in many cases
In order, therefore, to meet this situation (quite
discontinue cashing cheques.
unprecedented in the history of banking) two methods of procedure only were possible;
One was to ship gold directly to all points where travelers were congregating and
would be without funds, and the other, to establish banking credits at these
points, through the agency of the United States government, which would enable the
local banks to make pay:fents on cheques and drafts.
The procedure which has been followed of shipping gold to London as the
base from which these credits might be established at different points on the Continent, has, I believe, been effective in relieving a situation which might otherwise
have become so distressing as to have caused itense suffereing on the part of our
citizens in Europe. In fact, the mere knowledge that a shipment of gold was being
made in a United States war vessel had an instant effect in releasing money to our
travelers even before special credits had been established. It has been possible
in some places to establish credits against reimbursement out of the gold shipped to
London, and in other places, against deposits in rew York, must more readily then
would have been the vase had a mere promise of a gold shipment been held out to
these foreign banks.

Letter by Mr. Strong to Hon W.J. Bryan - 2 -

Prior to the writer's first trip to Washington, when he had the pleasure
of meeting you, a number of the leading institutions and firms in New York were

BANKERS TRUST COMPANY

August 12, 1914.

Hon. Josephus Daniels,
Secretary of the Navy,
.:.ashington, D. C.

dear Lir. Daniels:

Your kind note of the 11th instant was received
this morning, and I be

once more to express my appreciation of your

courtesy and cooperation in respect of the shipment of gold.

Your

letter is fully understood and will be regarded as personal and confidential.

With kindest regards, believe me,
Faithfully yours,

Presidect

S=W

BANKERS TRUST CalPANY.

Foreign Exchange Department.

August 11, 1914.

1.1r. John E. Gardin,

Vice President, The National City Bank,
New York City.

Dear :Ir. Gardin-

Since writing to you yesterday, confirming our telephonic
conversation, we are in receipt of your letter of the 10th, and note that
you have instructed your Berlin correspondents, the Deutsche Bank and the
Direction der Disconto-Gesellschaft, to pay all Association Cheques under
guaranty of the National City Bank of New York.

Believe I did not quite understand you yesterday, as our
:',2% Kent was in Berlin the latter part of July and full arrangements
were made with the Deutsche Bank and Direction der Disconto-Gesellschaft,
who are both our agents in Berlin, for the protection of Association cheques.
According to cable advices received from both banks, presumably sent about
the 4th or 5th of August, we had several million marks to our credit in
Berlin, which was ample to take care of all :association cheques which they
may be called upon to cash, and we feel sure that neither bank would discriminate and refuse to honor Association cheques in view of the large
balances we have in Germany.

As we understood your message, you had simply instructed
We question very
your correspondents to honor the Association cheques.
much if the cheques were refused by the Head Offices of the two banks in
question, but presume it may have been some smaller banks in Berlin and
We greatly appreciate your courtesy in the matter, but thought
vicinity.
best to explain this to you in order that you may understand our position
and know that if any Association cheques are being refused it is not being
done because of lack of funds in Berlin, but for some reasons unknown to us.
Very truly yours,

JFS/LICA

Th1, NATIONAL CITY BANK

OF NEW YORK.

August 10, 1914.

Mr. Benjamin Strong, Jr., President,
Bankers Trust Company,
New York City.

Dear Mr. Strong:

With reference to my telephonic conversation with
you this morning relative to a cable message received from the
American Charge d'Affaires in Copehhagen to the effect that Berlin
had requested him to inform us that American Bankers Association
checks were not being paid in Berlin, I now have to advise that we

have requested the gentleman above referred to, to instruct our Berlin
correspondents, the Direction der Disoonto Gesellschaft and the Deutsche
Bank, to pay all American Bankers Association checks under the guaranty
of the National City Bank of New York, which I now beg to confirm.

Yours respectfully,

(Signed) John E. Gardin,

Vice President.

G MW

BANKERS TRUST COMPANY.

THE FARMERS LOAN AND TRUST COMPANY

New York,

August 8, 1914.

Benjamin Strong, Jr., Esq.,
President, Bankers Trust Company,
16 Wall Street, New York.
Dear Sir:

Vie beg to acknowledge receipt of your favor of the 7th instant,
quoting the cable instructions sent to Mr. Kent in London with reference
to the appointment on his committee of the representatives of our New
York Committee in connection with the shipment of gold by the U. S.
Cruiser Tennessee.

We have, in accordance with your suggestion, advised our Mr.
Smith in London and, in fact, previous to this definite arrangement,
we had cabled him fully to cooperate in every way possible with Mr.
Kent in the good work which he, from all reports, has been doing in
London.
We are also in receipt of a memorandum copy of your cable
to :4r. Kent with reference to this shipment of gold and the method of
handling it in London, which seems to be very complete.
There is only one point about it which it seems possible
that there might be a slight confusion.
In covering the question
of reimbursement for payments made in London, in the case of drafts
under Letters of Credit, after mention of the rate and interest, the
words are added " and all expense when ascertained." In oonnection
with the Travelers Cheques, these words are not added. Possibly this
can be understood from the context and again it may not have been
necessary for Mr. Kent to be advised of this as it refers only to
final reimbursement in New York, but we assume that the final expense when ascertained will be borne equally by holders of Travelers'
Cheques and Letters of Credit.
Yours very truly,

The Farmers Loan and Trust Company
By

C. R. AGNEW

(Sgd)

Vice President
11485
111/202

BANNERS TRUST COL 'AI

August 8, 1914.

C. R. Agnew, Esq., Vice President,
The Farmers Loan & Trust Co.,
16 nlliam Street, lIew York.
Dear Sir:Your favor of the 8th instant is just received. Replying to
the point which you raise about the difference in method for handling
Travelers' Cheques and Letters of Credit, it must be borne in mind
that Travelers' Cheques are payable at a fixed rate of exchange stated
on the face of the draft which the drawer of the cheque is obligated
to pay, and for which an additional payment cannot be required of the
holder to reimburse expenses. This does not apply, however, to Letters
of Credit as reimbursement, to be provided ordinarily in London exchange
It is, therefore, proper for the
at the rate of the day of cashing.
issuers of Letters of Credit to require the holders of those credits
to reimburse the issuers for the expenses where no rate of exchange is
fixed, inasmuch as the rate of exchange would ordinarily be fixed to
include all expenses were any exchange procurable. The fixed rate of
exchange for Travelers' Cheques makes it impossible to establish a rate
as against the holder of a cheque for reimbursement, but it is our intention to ask all issuers of Travelers' Cheques to bear their pro rate
portion of the expense of cashing them.

Very truly yours,

President.
5:17

BLNEERS TRUST COMPANY

August 7, 1914.

111
N. A. McMillan, Esq., President,
St. Louis Union Trust Company,
St. Louis, Missouri.
Dear Mr. McMillan:

Your favor of the 5th instant, confirming our wires in respect to
the issue and cashing of Travelers' cheques, is just received.
I am writing you rather more fully than we are able to do generally
to those who sell or cash these cheques, as I am anxious that you should not
misunderstand the reason for our action.

The unprecedented situation which has arisen in connection with both
foreign and domestic exchange, due to the foreign war, has led to our sending
out notices for the discontinuance of all sales for the following reasons:
It would be impossible to distinquish between cheques sold
First.
for domestic and those sold for foreign use, and we are advised from many sources
that cheques were being accumulated all over the country for foreign exchange,
which present conditions might make it impossible to cover.
,re had considered
instructing every one to continue selling the cheques for use in this country
only and insure cheque totheir effect sold for accumulation by havingthis country, but there
on each against the being that they were for use only in a stamp placed
naturally was considerable danger in doing this, as particular instructions would
have to be conveyed to each one of the 7,000 agencies, and there was no assurance
that they would be carried out accurately and with security to us.
Second. There was also the possibility that the domestic exchanges
might be arrested, or at any rate be so slow of settlement, that these cheques
would be sold for domestic exchange, just as bank oheoks and be so used, and
this would result in releasing a flood of cheques from all the country for cashment in New York.

The matter was considered with the officers of the American Express
Company and others issuing travelers' cheques, and after a good deal of hesitancy
on the part of those concerned, it was decided that for the moment the only safe
course would be to discontinue sales entirely.
I think you will realize that we would not have taken this step, which
involved telegraphing to 7,000 correspondents, had we not thought the situation
required it. Matters are now rapidly returning to normal, and we hope that an
early date we can siebd instructions to all sellers of Travelers' Cheques which
will in some way permit of their use for domestic purposes, but as yet the plan
Of course you realize that it would never do
has not been entirely completed.
to make an explanation of this character generally to all of our correspondents.
We will, therefore, ask you to hold this letter in confidence.
Very truly yours,

StW

President.

P.S.- Of course the cheques will be cashed here as rapidly as presented, without

-2-

Letter to
N. A. McMillan, Esq., President.

the slightest delay, and there need be no hesitation in telling everybody who
Also, I want to thank you very cordially for
inquires that such is the case.
writing us, and I appreciate your interest in the success of the plan.

ST. LOUIS UNION TRUST CO:1PANY

St. Louis, U.S.A.

August 5, 1914.

Guaranty Trust COMpary,
140 Broadway,
New York City.
Gentlemen:-

ill you be good enough to deliver at our office today, as
Promptly as possible, your check for .811,700., to the order of Bankers
Trust Company, being the amount of your participation in a shipment of
5,117,000. gold coin in bars, which is to be made to London or some
other point in England, to be used for the relief of American travelers
in Europe by providing in that amount a fund for cashing, to the extent
of their needs, travelers credits held by them.

The detailsofthe plan for the use of this fund are being
arranged by a committee consistinc; of Llessrs. J. P. librgan, of the firm
of J. P. Llorgan & Co.; James Brown, of the firm of Brown Brothers & Co.;
A. J. Hemphill, President of the Guaranty Trust Company; George C. Taylor,
President of the American .1,:xpress Company; William L. Benedict, of Kidder,

Pabody & Company, and Benj. Strong, Jr.
Pending the preparation of details of the arrangement, it is
understood that the committee has sole charge.

The shipment, as you may know, plans to go forward by an American
war ship, to be furnished by the United States Government.

Yours very truly,

President

August 4, 1914.

Hon. - illiam G. McAdoo,

Secretary of the Treasury,
'ashington, D. C.
4 dear 'Jr. I.:eAdoo,

I enclose a preliminary draft of the meeting of the cormaittee of
ten associated subscribers who have contributed to the :;5000,000. fund proposed to be sent by the U.S. S.S. "Tennessee" to England and Europe, there
to be used only and solely for the purpose of payments against travelers'
credits issued by all American concerns. Of course the cashing of such
travelers' credits will involve consideration of the responsibility of the
banks or banicers drawing such letters of credit, but no trouble is anticipated
in that direction, and the fund is intended to meet the requirements of all
responsible American travelers' credits.

The enclosed is a preliminary draft only, but it embodies the
substa_ce of the meeting held this afternoon and is subject to revision in
form only.
It is the firm belief of the cotlnittee that the proposed relief work
would be much more effective if the same agencies handled, not only the relief
contemplated to be furnished by the Government, but also the relief wlich is to
come from the fund contributed by the ten New York City institutions. Therefore the committee strongly urges the Government to appoint as its fiscal agents
which the committee has selected, namely,-the Guaranty Trust Company, idessrs.
'Jargon, Grenfell A Co., and Brown, Shipley & Co., in London, and :lessrs. lorgan,
Co. and the American Express Company in Paris. The selection of such
Harjes
agencies fully equipped for such work by the committee was merely the selection
of the ones most available for the purpose. The institutions represented Here
are acting in entire co-operation, no one trying to seek special credit for
..94

itself.

It is hiAily essential that the shipment is not complicated by any
other features than solely relief features.
It may be advisable to take up some form of receipt, or some similar
paper, to be given by the Government of the nature corresponding to a short form
of bill of lading, to be given by the Government or by the Captain as master of
the ship, indicating the consignor, who would be the Dangers Trust Company as
agent, a citizen of the United States, and giving the consignee, the Guaranty
Trust Company, a citizen of the United States, stating that the property consigned is solely a relief fund, limited in its use to financing the needs of
the holders of American travelers' credits,- all that to avoid the possibility
of its being construed a commercial proposition and therefore involving possible
contraband features

This letter is written hurriedly, but to comply with your wish that
you have something from me before you tomorrow.

August 4, 1914.

J. P. Morgan, -sq.,
15 Broad Street,
New York City.
Dear

Ir. Jorgan:-

Advice is just received from 'ashington that the
"Tennessee" will sail from the Brooklyn ITavy Yard tomorrow night
prepared to take the consignment of gold and a consignment from
:ashington, probably :4,000,000. They urgently request sending
a force of competent men to handle the matter on arrival.
I would appreciate your attending the meeting this
afternoon, with suggestions of any men that you have available
to go with the ship, notifying them on receipt of this letter to
be prepared for a considerable absence, in case they are able;
also arranging this afternoon for gold certificates for whatever
contribution may be arranged by you at this afternoon's meeting.

Yours very truly,

JHIA -2JB

The above letter sent also toGeo. C. Taylor,

American E:Ipress Comnany

A. J. Hemphill,

Guaranty Trust Company

James Brown,

Brown Brot:lers 1 Co.

.

L. Benedict,

Kidder, Peabody 1 Comrany

NATIONAL BANK OF COMMERCE
IN

NEW YORK.

August 1, 1914.

Beni. Strong, Jr., Esq., President,
Bankers Trust Co.,
New York.
Dear Mr. Strong:

I duly received your letter of 31st ult., which I quoted to Mr. Jas.
F. Fargo, Treasurer, American Express Co., and am now in receipt of a communication from him as follows:
"July 31, 1914.
T1r. James S. Alexander, President,
National Bank of Commerce,
New York.

Dear Sir:

We hereby confirm the arrangement which you made with Mr. Benj.
Strong, Jr., President of the Bankers Trust Co., and to which we agree
whereby it is understood that the American Express Co. and the Bankers
Trust Co. will notify their correspondents not later than today to
discontinue, until otherwise notified, the sale of Travelers' Cheques.

This arrangement is made without any exception, it being understood that any sales e -footed by Correspondents would be in violation
of the instructions given.
It is also understood that neither institution will resume sales
of cheques without first giving adequate notice to the other, so that
mutually satisfactory arrangements for sending notices to Correspondents can also be made.
7,43 understand that you have a written agreement from President
Strong of the Bankers Trust Co. similar to the above.

Yours truly,
(Signed) J. F. FARGO
Treasurer."

I notice that Er. Fargo's letter does not say that their correspondents were advised by telegraph, but Mr. Fargo and Mr. Grant assured me
yesterday that telegrams were sent yesterday to all their correspondents.
If you desire a further letter from Mr. Fargo covering any point
whatever of the agreement, please advise me, and I am confident I can obtain
from him whatever you may consider necessary or desirable.

Miscellaneous Letters.

July 31:

Letter sent to all Travelers' Cheque banks in confirmation of our telegram of
same date.

the following:

Brown Bros. & Company,
Blair & Company,
Continental & Commercial National Bank, Chicago
Corn Exchange National Bank, Chicago
First National Bank, Chicago

including, of course, the Bankers Trust Company and American Express Company.

August 8: Letter from W. G. McAdoo

to Mr. Strong.

I have called a conference for discussion of the grain export and foreign
exchange situation, to meet the Treasury Department August 14th, at 11 A.M.,
and shall be very happy if you will attend. I would like a strong committee
of the representative foreign exchange houses of New York to be present and
loaded with as much data as possible. Will you not organize such a committee
and advise me as promptly as possible how many will attend?
August 11:Letter to Hon. W. G. McAdoo, signed Benj. Strong, Jr.
I have your note of the 8th instant, and am arranging to have a number
of the members of a strong committee of foreign exchange bankers, which has
already been appointed in New York, attend the conference at your office at
11 o'clock on Friday.
At the moment, I am unable to advise you of the names, beyond stating
that both Mr. Max May, of the Guaranty Trust Company, and hr. John E. Gardin,
of the National City Bank, will both probably attend, and I am hoping that Mr.
Ickelheimer, of Messrs. Heidelbach, Ickelheimer & Company, will also be present. These gentlemen have already undertaken a thorough investigation of the
foreign exchange problem and are in my opinion best able to furnish the data
required.
Will you permit me to suggest that a discussion of this matter is bound
to raise questions in regard to marine insurance, which might be well answered
on the spot by having a leading representative of marine insurance interests
Ey suggestion would be Mr. Hendon Chubb.
present at the meeting.
I have also taken the liberty of asking Mr. Olds, my representative in
Washington, to ascertain from your office whether you wish me to make any
other arrangements in New York with respect to attendance at this meeting. I
Shall certainly be there myself and do anything in my power in New York to
make the attendance a satisfactory one to you and to your associates.

August 10:Letter from N. A. McMillan, President, St. Louis Union Trust Co., St.Louisao.
to Benjamin Strong, President, Bankers Trust Co., New York.
I have your favor of the 7th instant, and note carefully the full and
satisfactory explanation given in regard to A.B.A. checks. You no doubt have
taken the right view of the situation. You, being in the center, can better
judge what is best to be done.
We are very anxious to have the business situation return to the normal
as early as possible, and I am feeling that it will do that in a very short
time.
The strain is lessening here and I believe the issuance of currency

-3-

Miscellaneous Letters

under the Aldrich-Vreeland Act will supply the needs without difficulty. As
soon as people know they can get the currency, there will not be such a demand

- 4 Iliscellaneous Letters

stantially by all parties interested in the issuance of Travelers'

-51Ascellaneous Letters

August 14:

Letter dated August 12, from Swift & Company, Chicago, Ill.

BANCO ?MT= DEL RIO DE LA PLAT,1, jONTEVIDEO
"e have a cable from our Montevideo house, as follows: "Banco
Frences del Rio de la Plata suspended payment tothy owing to diff iculties Buenos Aires branch." Have you any particulars regarding this
suspension?
August 14:

August 14:

August 12:

`e desire to call your attention to the fact that the unsettled
Clause inserted in Plan letter; 5th paragraph to read as follows:
conditions abroad prohibit for a time Travelers' Cheques from being
You are thereused there for the purpose for which they are issued.
';ab enclose circular concerning the system, which will give you
fore authorized to issue Association cheques for use in the United State
further details, but desire to call your attention to the fact that
only, and each cheque issued by you must be stamped in accordance with
the unsettled conditions abroad prohibit for a time Travelers' Cheques
instructions contained in our circular, which will be forwarded with the
from being used there.
general instructions ::oing with the cheques.

Clause inserted in S letter; next tth last patagraph to road as follows:
Letter seht by Benj. Strong, Jr. President, to :.huller Schall & Company,
illiam St., New York.
15
:e wish to confirm our telephonic conversation, end hereby guarantee to
nay you . .,2,000. plus cost of your cablegram to Lisbon, upon receipt of
cable advice that the payment of ...)2,000 has been made to the Consul
General at Lisbon through your correspondent, whose cable address is, we
understand, "Durnay, Lisbon."
-e are :uaranteeing this eayment on behalf of the State Department at
ashington, and we will arrange with the Government for reimbursement
covering our payment to be made to you. se would appreciate your writin
us, confirming that this letter is entirely clear to you

Aurust 12:

& Co., New York.
Letter from
"We received your to-day's favor, instructing us to cable to our friends
Messrs. Henry Burnay & Co., Lisbon, to pay ;E,000 to the Consul General
at Lisbon, and that you will refund us the amount paid, and cable charges
on receipt of a cable from our friends in Lisbon that they have effected
It is understood of course, that you will refund us cost
this payment.
of our cable and cost of cable from Lisbon, whether the payment may be
effected or not.

August 14:

Strong, as Chairman, Committee of New York Bankers,
Letter sent by
to Hon. -m. G. 2IcAdoo, Secretary of the Treasurer.
L. Benedict, of
"Referring to our conversation this morning, iSr.
ndder, Peabody & Co. and Mr. Benj. Strong Jr., President of the Bankers
Trust Company, submit the following memorandum statement of a proposed
u thod of opening necessary credits at various points in Europe for the
benefit of American travelers who are unable to obtain cash on their
letters of credit and travelers' checks:

Champery, Switzerland.
August 15.

Please excuse postal - it is more likely to reach you
than a letter. I wanted to tell you that as soon as telegraphic money orders are possible between Dew York and Switzerland, I
shall probably cable you to send me to the fulllimIt, which : believe is .200; perhaps I may add to send one also to my son, as
0200 will not be enough to pay my debts if this financial situation continues. We are unable to get Letter of Credit or checks
cashed, and they even refuse good American bills; also English
banknotes. Everyone is moneyless, and the hotels are obliged to
give us credit. Hundreds of Americans are in this country unable
to get away or got money. The Consul wrote me serious efforts
were being made to help U3 oash checks, so perhaps before this
reaches you, I can get money here and need not cable. Cables
must be written in French too, i believe. We are cut off from
all countries for the time being; no mail comes from Paris.
Very sincerely,

Aimee S. de Potter.

-6
Miscellaneous Letters

-

Miscellaneous Letters.

S

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 sum of money, the
arrangement purposed so far does not furnish any meansafor reimbursement
or, if fact, any certainty that the amount expended for these purposes will
be reimbursed, unless the Government will give its obligation to do so.
'e therefore suggest the folladng transaction: Bankers Trust Company
will credit Deutsche Bank, as one of their New York correspondents, with
)1,250,000 against sililar credit to be extended by the Deutsche Bank,
Berlin, in favor of Ambassador Gerard at the rate of 4.19 3/4 Earks per
dollar, Ambassador Gerard to be instructed that under this credit the
Deutsche Bank is authorized to make payments on all respondible American
travelers' cheques and letters of credit for 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
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
C :mpany alone for the account of all issuers of American credits.
-e assume that a large proportion of the Credit of 5,000,000 marks will
be expended in paying expense of transportation, rossibly chartering
vessels, in fact for all kinds of relief work for Americans who are
without available funds or credits. It would,tiierefore, be necessary for
us to have the obligation of the Secretary of the Treasury to reimburse
the Bankers Trust Company at the rate of Lflcs. 4.19 3/4 per dollar, and
costs, for all cf the ex?enditures which are not possible of reimbursement
out of good travelers' credits.
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 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 necesaary to
have duplicate accounts covering the eyments and transactions filed with
the Embassy in Berlin, also filed with Bankers gust Company in New York,
and to have advices of the completion of this arrangement nromptly cabled to
the Ambassador at London and to Mr. Kent, .aldorf Hotel, London, Chairman
of the American Relief Committee.
It should also be arranged by Ambassador Gerard, that the credit to Deutsche
is to be used in payment of obligations
Bank, withBB/ITII:ers Trust Company,
due in this country. This will avoid shipping gold and at present, no
safe means to do so are available.

August 18:

Letter addressed to Er. Strong and signed by 7.. J. Bryan, dated "ashington,
Department of State, August 15, 1914.
"The department acknowledges the receipt of your letter of the 13th instant
The
in regard to cabling .;2,000 to the consul-general at Lisbon, Portugal.
arrangement a stated by you in accepted and approved by the Department,
and the consul-general has been instructed as to the transfer of the money."

August 19:

ashington D. C.
Letter sent to I. S. Olds, c/o New 'Allard Hotel,
"The foll6wing is a translation of a cablegram received from the American

- 8 1:iscellaneous Letters

-9 Miscellaneous Letters

I also cabled Lliss Crosby: -

-10-

miscellaneous Letters:

feel sure that :Jr. Harjes will give the matter prompt attention particularIf you wish to make
ly when it is known that Miss Crosby is an invalid.
the suggestion also that Miss Crosby apply directly to Ambassador Herrick,
and mention nIF name in the sane way, I am sure she will receive similar attention from him, as he is a warm,personal friend of mine, and will do everything in his Power. Should occasion arise, don't hesitate to let me know
and I will cable both Ambassador Herrick and Mr. Harjes myself about the
matter.
August 19:

Letter from Mr. Frederick S. Duncan to Mr. Strong:
I greatly appreciate your letter of August 17th with suggestions in regard
to Miss Crosby. Will cable her and also write her as suggested in your
letter.

August 19:

August 20:

Letter from The First National Bank, New Hampton, Iowa, to B. T. Co.:
We are enclosing you herewith American Bankers Association Travelers Cheques
in the amount of Two Hundred tUghty dollars, for redemption and proceeds of
Which you will deposit with the American Exchange National Bank, New York, for
our credit and advice.
These Cheques were issued by us on the second day of July to Mr. G. Kerrhoff
for use in Europe. Mr. Kerrhoff was right in the war zone but he fortunately
worked his way out thru Holland across to England taking ship, the Laconia of
the White Star Line, from Liverpool to New York and reached New York last Sunday.
Mr. Kerkhoff states that for these Travelers Cheques which vie issued him that
he would have been "up against it", as they were the only medium of exchange
that would be accepted. Stated that he met many Americans with their pockets
full of money and that were unable to get anything. He is busy among his
German friends singing our praise for the good dheques issued him which praise
we will gladly accept at the same time however we will have to give you the
real credit for the organization which you have perfected.
Letter from J. ';'alter Thompson to Mr. Strong:
The regular Bank Holiday in London came on Monday, and the Government extended this Bank Holiday up to Friday.
It being necessary to obtain gold, which
could not be obtained anywhere on Bankers Checks at that time, I telephoned

to the Guaranty Trust Company to ascertain if by any possibility I could acquire a small amount of gold there, believing that being an American concern
and not an Engliennoern they might be open.
After some conversation over the telephone I was invited to call, which
I did, and found that while nominally closed there were people inside, and I
was admitted. I presented my checks to the cashier or clerk and at sight,
and without any particular comment he to rued me down flat.
I asked why he
had me come all the w
to Lombard Street if that was what he proposed to do,
but he did not reply, or if he did I did not hear it.
Subsequently I cabled to you, and with your cable in hand T went to the
Guaranty Trust Co. two days later and got what I required. Had he served me,
however, in the first instance with the moderate amount I desired at that
time, it would have been less than half what I required at the time of my
second call.
Relative to the American checks in London, you can readily understand
that in this case the war excitement was something terrific, although it was
rather a suppressed excitement among business men and men engaged in financial

Miscellaneous Letters:
declining them. So far as the A.B.A. checks were concerned, I changed my
mind when I found that they accepted freely checks of the American Express
and Wells Fargo companies, and I found the explanation later in an announcement published, if my memory is correct, in the financial papers, stating
that these people would pay their checks in gold up to a certain amount,
upon presentation.
There was no animosity or favoritism shown as far as I could see, excepting that there was rrobably a doubt as to when they could turn the checks into
gold, which was the only thing that would pass current. This evidently must
have been made very clear by some of the other companies, and it left people
somewhat in doubt as to the A.B.A. checks.
The Cecil Hotel where I stopped, did accept checks on account of board,
but would not give any change in money. The Cunard people declined to accept
the A.B.A. checks in payment of passage, although at the same time they did
accept checks from the American Express Company and some other checks, what
ones I do not know.
This was the situation to the best of my memory and belief.
No man living could have foreseen this condition or known it unless he was
on the ground. The A.B.A. checks were treated exactly the same as Bank of
England notes.

August 21: Letter from Mr. Strong to Mr. J. Walter Thompson.
I am exceedingly grateful to you for your letter of the 20th, which I am
There seems to
anxious to have with other similar statements, in our files.
be a great variety of opinions as to how matters were handled abroad, but I
am glad to say that our clients in the main have been most courteously treatIsolated cases of difficulty are bound to occur, and these we must deal
ed.
with as best we can, and I hope that our friends will all be satisfied that
the best possible was done under the circumstances.
August 22: Letter from J. Walter Thompson to Mr. Strong:
Replying to your letter of Aug. 21st, everyone on the other side seemaa
to feel regarding the checks, that the contretemps was simply occasioned by
the war and I did not hear one complaint. In fact, everyone who used them
spoke well of them.
The reason I took so much interest in the matter was that I felt there
was an opportunity to gain some knowledge that might possibly be of use to
your Company.
August 24: Letter from Fletcher S. Mason for Frank W. Matteson, Atty, to T7r. Bock,
Foreign Exchange Dept., B.T.Co.
I beg to advise you that I am today in receipt of advices from Mrs.
Georgette (Harold) Brown, via Newport, R.I., stating that she had received
the funds kindly cabled by you to your correspondent, Haskard a Co., in
Florence, Italy, although as yet she had not received the earlier remittance
which we attempted to convey through governmental channels.

August 24: Letter from C. Peizette, Acting President American Chamber of Commerce, Paris,
C amber of Commerce of the State of New York.
to the President
The war has created a financial situation in France which should be
brought to the attention of American bankers. On August 3rd, the moratorium
was decreed. This mans that ordinary business payments are postponed. It
Similar conditions prehas practically put an end to banking accommodation.
vail in all belligerent countries. In france, outside of money to pay workmen
of his remaining
and clerks, a depositor may draw out only Frs. 250 and
deposit, until further notice. Within a few days it has become possible to
draw out an additional 14.
,

American houses have, in the regular order of business, recently drawn against
French companies, either their own branch or a house with which they have long
These drafts which were accepted by the French houses, are coming
Miscellaneous had relations.
Letters:
due, and those since August 3rd fall under the effects of the moratorium.
As
collections are practically impossible for the time being, French concerns,
even those having large deposits here, cannot pay these maturing drafts because
of the restrictions of the moratorium. This virtual suspension of business payments will probably be further prolonged by another decree of the French Government, but the conditions will be somewhat modified.
Financial conditions, particularly in France, have shown some improvement
within a few days. You no doubt have learned from the newspapers that cable
transfers are becoming more nearly normal. Actual transactions are being made
either through the deposit of funds by the buyer at New York, or try the payment
of the buyer here in exchange for d,)cuments. We, therefore, urge that you give
the fullest publicity to the situation in Europe, and point out that American
bankers who have discounted drafts on French and other European houses, should
exercise such indulgence as circumstances require, and should not create a hardship by calling upon the drawers of America of such drafts for immediate reimIf all who are concerned with Franco-American trade, particularly bankbursement.
ing houses, will be unusually patient for a short time, it is probable that we
shall soon see a considerable revival of France-American trade, as well as of
As the United States is the one great country which is now
French industry.
neutral, and as the commerce between France and the United States should be very
large on both sides, American manufacturers, exporters, and consequently bankers,
have much to gain by a liberal attitude at this time.

*August 31. Letter from The Lumbermans National Bank of Houston,Tex. to Mr. Strong.
We appreciate very much the information contained in your letter of August
You are certainly to be congratulated on the manner in which you Com27th.
pany has taken hold of the situation and it means the furthering of the present
(Sgd) M.S.Murray, Ass't. Cashier.
good standing of the Bankers Trust Company.
Sept. 4.

Letter from Seward Prosser, The Liberty National Bank, New York to Mr. Strong.
I enclose herewim a copy of a letter-addressed to Gibson, touching on the
I thought it might be of interest.
kind of service he is rendering you.

Mr.H.D.Gibson,
On Board U.S.S.Tennessee.
Dear Pte. Gibson-

War Department
Office of Ass't. Secretary
on Board U.S.S.Tennessee
Aug.15,191

As the TENNESSEE is nearing its port and the time
or the dispersing of our party is coming near at hand,
I desire to express to you my sincere sense of obligation for the valuable assistant cooperation and advice
you have so freely given to us in connection with the
preparatory work of the Relief Cormitision. Had it not
been for your broad knowledge of international exchange
Dici your ability and readiness to impart it, it would
have been impossible for us to have done so well as :ozo have
in preparing the minds of the officers of the Commission
for the conditions and situations that will confront
them in their work on the Continent.
Personally and in the name of the Government, I
desire to extend to you the expression of a very sincere appreciation of your valuable services to us.
(Signed)

Henry Breckenridge,
assistant Secre'a
anaspecial Co

of.War
issioner of the U.S.

-13-

September 7. Letter to Mr. Fred I. Kent from Wisconsin Bankers' Lssociation,Milwaukee,Wisc.
Having seen in some financial paper within the last month, a statement
from you that American Bankers Checks were being cashed freely in European
Countries, I beg to quote from a letter received this morning from one of
our members relative to this subject. The Bank of Burlington, at Burlington,
Wisc., say that their Mr. Slade has just returned from Europe and reports that
traveling with him was a Mr. Reynolds - the latter supplies with American Express checks, while Lir. Slade had the Smerican Bankers Checks purchased from
their bank.
'gr. Slade states that the last checks he was able to cash was on August 2nd,
at Milan Italy, and after that neither he nor other tourists that he met were
able to cash at any place, any of the A.B.A. checks, but that his companion
Mr. Reynolds, cashed the Express checks at practically every place where he
The Express checks, however, were cashed at the Express offices.
tried.

On the way home the question of cashing checks was quite prominent among
the tourists and very bitter complaints were expressed by those holding Bankers checks while those supplies with Express Company checks were highly pleased
with the accomodations extended them. "
The Burlington Bank write further that it seems to them an institution so
large as the Bankers Trust Company should have influence enough to protect its
checks, even at such times as the past month, and the fact that they have not
done so shows a weakness on their part or a lack of proper attention.
Knowing your deep interest in the development of the American Bankers check
plan, I send this information to you with the hope that it may tend to improve
your foreign check plans.
Some of our other members have complained that you should refuse
banks to continue the sale of your checks after war was declared for
has been built up by many banks, the sale of these checks to persons
ing in this country and I understand your company sent out a notice
biting the sale of any of these checks, even in this country, which
I think has been since somewhat modified.

to allow
there
travelprohinotice

I shall be glad to hear your report of present conditions.
(Signed) GEO. BARTLETT, Secretary.

September 8. Letter from the Bank of Burlington, Burlingtson, Wisc., to Bankers Trust Co.
% are sending you enclosed X530 of your travelers checks which were returned by our r. S. D. Slade, who was traveling in Europe and we might say
in connection with this that his traveling companion was supplied with American Express Company checks which were freely cashed on the continent.
Our man would have been stranded with Lae enclosed checks in his pocket
if he had not been aacompanied by his friend who was better situated.

It has been rather humiliating to us to have your checks in the hands of
our customers and to be placed in such a situation and we are still undetermined as to the futuee but believe it advisable to handle other travelers checks than those issued by you.
Kindly remit for the above to Irving National Bank, for our credit and
advice.
G. A. Uebele,
(Signed)
Cashier.

-14 -

Miscellaneous Letters.

September 11.Letter by Mr. Stong to Bank of Burlington, Burlington, Wisc.
Your favor of the 8th instant received, returning .530 in Travelers' Cheques

Miscellaneous Letters.
September 8. Letter from Frederick S. Duncan to Mr. Strong.
I am sincerely grateful to you and to your company for the very efficient

£L6-

aiscellaneous Letters-

AMERICAN CITIZENS' COMMITTEE
White Room
Hotel Savoy,

Embankment Entrance.

FINANCIAL OPERATIONS -;;ILL HEREAFTER BE CONDUCTED UNDER TIE FOLLO:ING DEPARTMENTS.
A.

CABLE TRANSFER BEPAETAENT.

B.

AMERICAN MONEY - CONTINENTAL GOLD EXCHANE DEPARTMEN72.

C.

LOAN DEPARTMENT.

D. EMERGENCY DEPARTMENT
GENERAL INSTRUCTIONS:
(A)

Fir cash on Travelers' Cheques or Letters of Credit persons should apply

at the offices of banks and companies issuing them, i.e.,
American Express Company
Wells, Fargo & Co
Guaranty Trust Company

6 Haymarket
20 Charles St., S.W.
33 Lombard S,;., E.C.

American currency will be exchanged on the basis of Five Dollars
(B)
Continental Gold at par.
for One Pound (El).

.,;13-04)

All persons in need of money must cable their AmeriCables for -ioney.
(C)
can conhectio;.s and they shall only be afforded temporary relief until their cables
can be answered.
Hamburg-American and orth German Lloyd Travelers' Cheques and TLckets.
(D)
Loans upon these and upon receipts for money shall only be made in small amounts and
then on 50% security.
(E)

German and Austrian -ioney - the foregoing rule applies in these cases.

Loans on Security - In all such cases persons obtaining loans shall
(F)
sign cheques on American banks, or if without checking accounts then promissory notes,
with full information as to the financial responsibility of the a pplicant.

etter of the Bankers Trust Company dated Sept.14,1914,
arged on the Bankers checks by Bankers at Lucerne and
-17u may say to the Trust Company that they are mistaken
ose banks were acting under instructions from the
Misscellaneous Letters.

ne 411 September 15. to the effect that they to Tilliam C. Breed, New York
sent out letters Letter by Lir. Strong would pay
Travelers Cheques in full much pay Letters your courtesy in writing me, enclosing the exhibit
I and appreciate of Credit
the rate of five francs to the dollar. the work of the London Committee, which we will add
I, being
in connection with
ommittee of the American Association at Lucerne, was most interesting and difficult matter.
to oar records pertaining to this
of the deferent le6ters sent out by the Bank at
ved in Paris, I called upon Lir. Harjes of Morgan,
om I am acquainted, and took up the subject with him,

-18Miscellaneous Let:ters.

the result being a conference with the other men of that institution.

-19Iliscellaneous Letters.

banks had not realized through the announcement that the ,old was on the

-2U-

commands a premium in Canada, we receive no benefit, and feel that we
should not be called upon to pay any discounts on unused Travelers'
Furthermore, the full
york exchange is at a discount.
Cheques when
commission of 1/2 of one per cent has been waived in your favor on all
cheques issued.
We greatly appreciate your courtesy in having written us, thus giving
us an opportunity to explain our position, and assuring you of our appreciation of any courtesies shown to holders of American Bankers' Association
Travelers' Cheques, we are September 14. Letter from The Dominion Bank to jr. Schmid.
I have received your letter of the 11th inst., also advice today from
the :rational City Bank of your deposit of ;1400 in settlement of that amount
of Travelers' Cheques.

Your arguments first, that New York exchanre comaands a premium in Canada throughout the greater part of the year, and second, that a full commission of 1/2 IS waived in our favor, are not satisfactory explanations
of your refusal to credit us with the amount of the discount. my personal
experience during the last two years has been that I have had to decline
certain good American business because of the prevailing discount for currency. payment for all Bankers cheques received by us goes immediately into your hands and
should not issue them at all were it not for the onehalf commission.
With regard to your further statement that no benefit is received when
New York exchange is at a premium in Canada, our understanding has always
been that settlement must be in New York funds.

You, of
course, know all this much better than I do, but I wanted to add iv small
voice in testimony of his untiring devotion to his duty, well done.
Harris, Tr.
(Signed)

He
miscellaneous Le',,ters. represented most admirably his Country and your Company.

Se2temther 22.

Letter from The Dominion Bank of Hamilton, Ont. to 2.1r. Strong.
Referring to your letter of the 16th instant to which I replied saying
that my head office would communicate direct with you, I beg to say that
they write me that before terms can be offered for your account, further
information must be obtained as to:

The average balance to be kept in the account, the volume of
business, would deposits madd consist of Canadian or J.S.Funds,
'could any other business pass through the account besides payment
for Travelers' Cheques sold in Canada by us or your correspondents,
wuu16. this accc.unt be required to redeem Association money orders
paid in Canada.
If you will kindly furnish me with this data I will see that the matter
is promptly laid before our head office.

Septem

Dear Sirs:-

Re Miss Louise Crosby

I acknowledge receipt of yours of Sept
ing cop of cablegram from Morgan, Harjes & Comp
Strong, Jr., reading:
"Your friend, Louise Cros
good care of by us financially and otherwise and
she left here giving her address as Hotel Walcot
Street, New York City."

I note that you have received a letter
paid kiss Crosby five hundred francs at $5.00, w
ducting from the five hundred dollars received f
expenses, leaving a balance of ',1387.48, for whi
close your check, receipt of which I acknowledge

Bankers Trust Co.,

I wish to expreas my grateful apprecia
tesy you have extended to me and to kiss Crosby.
has been of great help to her and great comfort
Crosby's family, who wore naturally extremely an
ty, particularly during the past two weeks.

1HE DOMINION BANK,

Hamilton, Ont., 14th September, 1914.

J. A. Schmidt,
Manager, The Foreign Exchange Department,
The Bankers Trust Company,
New York, N. Y.

Dear Sir:I have received your letter of the 11th inst., also advice to-day from the National City Dank of your deposit of 01400
in settlement of that amount of Travellers' Cheques.
Your arguments, first, that New York exchange corirands
a premium in Canada throughout the greater part of the year, and
second, that a full commission of one-half is waived in our favor,
are not satisfactory explanations of your refusal to credit us
with the amount of the discount. My personal ezporienco during
the last two years has been that I have had to decline certain good
American business because of the prevailing discount for currency.
Payment for all Bankers cheques received by us goes immediately
into your hands and we should not issue them at all were it not
for the one-half commission.

your further statement that no benefit
With regard
is received when New York exchange is at a premium in Canada, our
understanding has always been that settlement must be in New York
funds.

We shall be glad to open an account if you like and
place the funds here at your disposal. To-day our entry is to be
made,- funds are 3/4 - 11/16 discount. Vie do not consider that
our customer should be charged with this discount, and shall thank
you to send us the amount asked for, namely ,;i,;5.25.

Yours truly,

Manager.
12 noon -"N. Y. funds nominal l';'L die."

411

Kuhn, Loeb & Co.,
52 William Street.

J. P. Morgan & Co.,
Wall Street, corner Broad.

New York, September 17, 1914.
Confidential.

4100,000,000
:JEW YORK CITY LOAN SYNDICATE.

Bankers Trust Company,
New York.
Dear Sirs:-

Of the obligations of the City payable in Paris which
the Syndicate has undertaken to discharge under contract with the
City, we acquired, on September 1, 1914, as we orally informed the
Comptroller, certain Paris maturities for the aggregate amount of
Fes. 13,500,000 at the exchange rate of 19.607843 cents to the
franc.

Vie propose to turn these notes over to the Syndicate
without profit, at the same rates of discount and exchange cx
obligations will reduce to that
those on which they were acquired. The purchase of these foreign
for gold.

Under the agreement w
Comptroller the right to antici
ing obligations covered by the
acquired. The notes aggregatin
ed to the City on a basis of 6'l
the franc.

:c are accordingly ca
us on Friday, September 18th, c
depositaries for their ratable
of 2,677,545.21.

The chock to be drawn
the awn of 4108,976.09.

As this transaction w
gold, the check to be drawn upo
the banks in the customary mann

Very t

I

THE DOMINION BANY,

Hamilton, Ont., 18th September, 1914.

Benjamin Strong, Jr.,
President, the Bankers Trust Company,
New York, N. Y.
Dear sir:-

I have received your letter of the 16th inst., and note
that my letter has offered a sugirestion which will obviate a re-

currence of the case in point.

As you have asked us to quote terms on which an account

might be kept here, and have suggested that the account should be

earned at Head Office, I have forwarded the recent correspondence
to lur. Arthur Pepler, Assistant to the General ::,anager, 2oronto,

who will doubtless communicate with you in due course.
Yours truly,

:i.anager.

8 Via Solferino, Florence,
19 September, 1914.
The Bankers Trust Co.,
19 Wall St.,
New York City.
Gentlemen:-

Thank you for your letter of September 2, which I have
just received, and especially for the efforts made in my behalf
which you describe. Personally I was inconvenienced only a short
time, as I was able to borrow some American Express Co. checks.
Now all difficulty seems to be over.

I have no doubt the facts in other places were as you
state them, but in Rome certainly they wore as stated in .ay earThe American Express Co. and Cook's cashed their
lier letter.
own checks, in limited amounts at any one time, and Sebasti made
limited payments in all cases where he was named as a correspondThe American Express Co. was most accommodating to all,
ent.
The Banat'. Commerciale
and certainly will gain by
Italiana not merely refused to make payments on anything whatever,
but did so in a peculiarly exasperating manner, and when it began
to make payments, exacted, as I was told, most unwarranted discounts. Lany Americans were made exceedingly angry by their
methods and manners. I myself only made one attempt there, but
it was enough to show me what others probably experienced.
Now I hope our troubles are over for a time at least.
With thanks, I am,
Very truly yours,
(Signed)

GEORGE BURTON ADAMS.

aeorge D. Bartlett, Secret
September 28th, 1914.
Wisconsin Banker
Pabst
y dear Mr. Bartlett:

Your favor of Se
ter sent by you to Fred I.
Trust Company, came to the
City.

I thank you for
you know that 1 am always

I do not conside
Bankers Trust Company that
for a brief period. I do
tion in the country issuin
it upon which cash could b
plied to the Express Compa
press Companies began to c

You are no doubt
making a being our belief t
fight against the
amount of business

And, you
The Express Compan
their offices at v
distinct advantage
you.

Of cours
these Bankers Cheq
Trust Company.

I thorou
States could have
Bankers Trust Comp
Kent was in Europe
the interests of t

Always g

LIBERTY NATIONAL BANK.

New York, October 6th, 1914.

Li'. Benjamin Strong, Jr., President,
Bankers Trust Company,
16 Wall Street, City.
Dear 1&r. Strong:

Thank you very much for your letter of the 5th instant,
with regard to the services of our Llr. Gibson, which the Liberty
Bank so willingly gave to you.
We are indeed pleased that what he has been able to do
for you has boon of such a caaracter, that it has been possible
for you to write the appreciative letter which is now before me.
will take great pleasure in havin; this letter read to the Board,
and also shorn to Mr. Gibson upon his return.
Yours very truly,
(Signed)

SEWARD PROSSER
President.

S

LIBERTY NATIONALBANK
OF NEW YORK,

New York, October 16, 1914.

Benjamin Strong, Jr.,
C/o Bankers Trust Company,
New York, D. Y.
Ey dear kr.

Upon my return from abroad, I find your letter of Oct.
5th to Mr. Prosser, in which you say many kind things about my
trio to Europe as a representative of the Bankers Trust Company.
I want to take this, the first opportunity I have had, since my
return, to express to you my sincere appreciation of your thoughtfulness in writing Mr. Prosser as you did. It is needless for
me to say that it was a great pleasure to make the trip, and to
The nicest part of all is, to be
represent your institution.
shown as you have shown me in this case, that my efforts to ropresent you to the best of my ability were appreciated by you.

ll
With kindest regards, and sincere thanks for your letter, I remain,
Yours very truly,
(Signed)

S

H. D. GIBSON

4011 July 31:

Jeblegrans exchanged between Bankers Trust Company and Comptoir National
d'Escompte de Paris, Paris.

Cablegrams exchanged between the Bankers Trust Company and the Direction der DiscontoGesellschaft, Berlin.

JUly 30:

Cablegram to Banktrudis, Berlin.
Charge our account and pay to National bank iffr Deutschland, Berlin, Marks
250,000 for account of Guaranty Trust Co. of New York, New York. Charge
our account and pay Deutsche Bank, Berlin, Marks 500,000 for our account.
',mat is amount of our balance at the close of business tomorrow.

August 2:

411

Cablegram front Banktrudis, Berlin.
Your credit balance (Marks) 432,000.

August 2:

Cablegram from Banktrudis, Berlin.
Have paid Kalisyndikat 41,000.

August 3:

Have paid Kalisyndikat 55,000.

Cablegram from Banktrudis, Berlin.
Have paid Kalisyndikat Marks 53,000.

August 21: Wireless message to Direction via Radio Station, Tuckerton, N.J.
Repeat following messge: Direction der Disconto-Gesellschaft, Berlin, renew
documentary credit No. 273 for Mks. 300,000 and extend credit to cover August shipments, impossible to cable you direct, telegraph us if Kalisyndikat
can make shipments in August, also total amount paid to Kalisyndikat since
your last debit of July 18th, also telegraph amount of our balance and at
what rate you can credit us in Marks against dollars here. Duplicating
this message via Copenhagen and Amsterdam.
August 20: The above message also sent to Direction through Daneke Landmandsbank,
Copenhagen and Hope & Co., Amsterdam.
1111,

August 22: Message sent over the telephone to Mr. Olds to be sent to our Berlin correspondent: (Direction der disconto-Gesellschaft).
Cable us through Ambassador Gerard Amount of our balance.
August 30: Cablegram from Berlin (via Nelson Page, American Embassy, Rome.)
August 30v, your credit balance with Disconto-Gesellschaft is 141700 - Berard

Travelers' Cheque, Letter of Credit and Foreign Exchange Telegrams, eto.

July 29:

Telegram to Old Colony Trust and Savings Bank, Chicago, Ill.
Discontinue using old rates for foreign checks. Foreign exchange market
demoralized. New rates. sent.

July 30:

Telegram sent to National City Bank, Chicago, Ill.
Telegram received. European markets demoralized and currency scarce. Your
telegram is the first we have heard regarding refusals of cheques and Letters
of Credit.
Have cabled our Zurich correspondent to ship currency to Cramer
at once, no matter at what cost. We have ample balances abroad, but European
bankers are holding tight to gold, and we are doing everything possible for
tourists. You may rest assured we will protect your interests. Cur El'.
Kent looking after matters personally.

July 30:

Telegrarp from National City Bank of Chicago, Ill.
Can you cable currency );500 to Ambrose C. Cramer, care Thomas Cook & Son,
Geneva, shipping currency from Paris or Berlin, if necessary. Advise us
by wire.

July 30:

Telegram to National City bank of Chicago,
Can arrange payment through Thomas Cook & Son, New York, but without risk
to them or ourselves.
Cannot guarantee payment.

July 30:

Telegram from National City Bank of Chicago, Ill.
Transfer funds as per telegrams. Payment must be in currency, as party is
unable to realize on your Letter of Credit or Association Cheques.

4I0July 30:

147 telegrams to our Foreign Check Correspondents:
Cancel all rates for foreign checks. Liarket demoralized.

July 30:

50 telegrams to our Letter of Credit Correspondents;
Foreign Exchange and European market demoralized.
Situation abroad critical.
Discontinue issuance Letters of Credit until further notice.

July 31:

Telegram sent to the large issuers of Travelers' Cheques.
Owing probable difficulty cashing Travelers' Cheques, notify purchasers they
take cheques their own risk. Suggest furnishing foreign travelers cash.

July 31:

Telegram sent to all banks, etc., issuing Travelers' Cheques.
Conditions abroad necessitate discontinuance sale of Travelers' Cheques.
Telegram sent to banks in answer to inquiries:
Discontinue all sales for the present.
Letter(Telegram) received.
advise you shortly regarding arrangements for domestic use.

Will

August 3t

Telegram sent to Citizens Savings & Trust Co., Cleveland, Ohio.
Yours first received. Cannot maketransfers as requested, if traveler
arrangements under may for their protection.

August 3:

Telegram from National Bank of Commerce, Toledo, Ohio.
Wire us all information you can concerning settlements of drafts drawn against
If rates are to be
commercial credits issued in favor of the Bour Company.
very high, we wish to cable shippers to discontinue making drafts.

August 3:

Telegram sent to National Bank of Commerce, Toledo, Ohio.
Foreign exchange demoralized. General moratorium declared throughout Europe.

410

Travelers' Cheque, Letter of Credit and Foreign Exch. Telegrams, etc.

- continued -

011111.

Wrote you this morning.
Believe you should instruct all shippers discontinue making drafts, as we must look to you for reimbursement in London
exchange. Our letter of today gives full particulars.
August 3:

Telegram sent to National Bank of Commerce, Toledo, Ohio.
Shall we insist on policies under Commercial Credits to cover war risk on
shipments made prior to present conditions?

August 4:

Telegram from National Bank of Commerce, Toledo, Ohio.
Replying your telegram yesterday, policies apparently cover war risk.

$
August 4;

Telegram sent to Hon. W. J. Bryan, Secretary of the State, Waehington,D.C.
We have received cable advice from Germany that Baroness Von Romberg payment
has been made. We greatly appreciate your assistance.

#ft#

August 5:

Telegram from W. A. Means, Treasurer, B.
Goodrich Co., Akron, O.
Bertram G. work, our President, and also stockholder in Bankers Trust Co.,
is in Frankfurt-on-Main, care Carlton Hotel, and in need of funds. Will
appreciate any relief or assistance which you may be able to afford him.

August 5:

Telegram sent 11r.

Sent

Collect

A. Means, Treasurer, B. F. Goodrich Co., Akron, 0.
Telegram received. Impossible make transfer direct. Arrangements under
way for general relief of all tourists. American bankers arranging with
government to ship gold by cruiser Tennessee. Understand all foreign
consulates have been advised to get in touch with Americana to furnish
neoessary relief when arrangements completed. Doing everything in our
power to hasten matter.

August 5:

Telegram from st. Louis Union Trust Co., St. Louis, Mo.
Shall we cash ABA Travelers' Cheques that may be presented to us.
Viel think
it would be an excellent move if yell can arrange to caan these cheques in
times like this.
Wire us if you will refund us in cash any cash we pay
out of these cheques. We understand we are to discontinue selling. Answer.

August 5:

Telegram sent to St. Louis Union Trust Co., St. Louis, 7:o.
Referring to your telegram - yes - we see no reason to discontinue cashing
American Bankers Association cheques.

August 5:

Telegram from Mechanics and Farmers Bank, Albany, N.Y.
Cam you or can you suggest any way we can buy exchange or actually send
three thousand dollars in gold to Italy for one of our friends.

August 5:

Telegram sent to Mechanics and Farmers Bank, Albany, N.Y.
Regret impossible to make transfer.
Goverrnment arranging to forward funds
for the relief of tourists, Bankers forwarding gold for immediate needs
of tourists holding cheques and credits. Doing everything to assist all
Americans.

August 5:

Night letter sent to lir. W. A. Means, Treasurer, B.F.Goodrich Co., Akron,O.
Referring to our telegram today,suggest you telegraph State Department,
Washington, immediately, giving them full name and address of "Jr. WOrk.
We are doiAg everything possible at this end but require your cooperation
with 7Ashington. Do not hesitate to call on us if we can assist you.
Benjamin Strong, Jr.

August 5:

Telegram from Old National Bank, Spokane, 'Warrington.
Dispatches report party American school girls marooned in Austria
Mary Louise Corbin May and June Twohy Spokane girls with Mlle. Reuche

-3--

Travelers' Cheque, Letter of Credit and Foreign Exch. Telegrams, etc., - Continued -

Chaperon Dana Hall School due Grand Hotel, Tarbole, Austria, August 1, Grand
Hotel, Bellagio, Italy, second, Lucerne, Switzerland, fifth.
Please
cable Fred Kent to investigate and render any assistance possible, and
wire us any information he may be able to obtain concerning the girls.
August 5:

Collect

Telegram sent Old National Bank, Spokane, Washington.
Arrangements under way to ship golf_ to London for relief American Travelers
and negotiations for distribution of money throughout continent through
Government channels being rapidly perfected. Suggest you cable full par ticulars F. I. Kent, Hotel Savoy, London, using no abbreviations and signing full name.
Also communicate State Department washington by telegraph.
If arrangements can be made to disburse funds to travelers in
Austria, their travelers credit will, we believe, be good without regard
to by whom issued.

August 5:

Telegram sent to Adolph C.
oio Treasury Department, Washington,D.C.
The five million gold shipment contributed by ten institutions sending this
telegram never intended to be limited to cash travelers' credits issued
only by such ten institutions, but always intended and will be shipped only
for relief use in cashing to extent immediate needs of tourists holding
travelers' credits in form either of letters of Credit or Travelers' Cheques
issued by any American Bank, banker of concern. Validity of credit and
goodness of drawer to be established in manner customary to such transactions through O.K. of foreign drawees of such credits.
(National City Bank.)
Farmers Loan and Trust Co.
Brown Brothers and Co.
Guaranty Trust Co.
Kidder, Peabody & Co.
National Bank of Commerce,
American Express Co.
Bankers Trust Co.
J.P.Morgan & Co.
First National Bank.

August 5:

Telegram sent to Hon. W.G. lioAdoo, Secretary of Treasury, Washington,D.C.
Personal intimations have just reached me that word has been received in
aashington of lack of harmony respecting gold shipment or appointment in
connection with handling same. There is absolutely no foundation for this
report so far as I know. The gold is being shipped by ten institutions and
firms who are in entire harmony in this effort to protect all Americans
holding Letters of Credit, no matter by whom issued. The gold will be used
for the benefit of all responsible users of Travelers' credits through such
agencies as may be employed, and the recommendations which have cone to
Washington from our committee are the names recommended by the ten firms
or institutions contributing. It occurs to me to suggest to you personally
that if there should be any question on the part of anybody as to whom the
consignee should be, I want you to feel perfectly free to eliminate our
name, if you desire to do so. that we want to do is to insure that the
shipment is made to responsible people who have facilities to conduct the
business.
Benjamin Strong, Jr.

August 6:

Telegram from W. G. McAdoo.
Your telegram received; also telegram signed by Farmers Loan and Trust Co.,
Brown Brothers and Co., Guaranty Trust Co., Kidder, Peabody & Co., National

Travelers' Cheques, Letter of Credit and Foreign Exch. Telegrams, etc. - Continued-

Bank of Commerce, American EXpress Cool. P. Morgan & Co., First National
Bank, Bankers Trust Co.
Also telephone message from Irving S. Olds to
Doctor Miller.
It is not the purpose to receive deposits for shipment on
the Tennessee from any other than bankers' committee, and all inquiries
from other bankers than your committee have been referred to you.
**

August 53

***

August 6:

Collect

August 6:

Telegram from merchants' Loan and Trust Co., Chicago, Ili.
If practicable for us to put gold aboard Tennessee specifically for the protection of our own Letters of Credit, we wish to do so.
Should gold be
acceptable only for the joint fund, we see no need to contribute.
If
gold can be sent on above terms, charge our account 4150,000, and if you
wish we can replace gold by express at once.
Telegram sent to merchants' Loan & Trust Co., Chicago, Ill.
Your wire received. You realize that on basis of your telegram the New
York bankers take all the risk holders of your Letters of Credit of course
getting the benefit.
We had hopes that all institutions issuing Letters
of Credit would promptly join in reasonable contributions to the fund as
patriotic duty which would be sent forward at their risk, but with regular
insurance without war risk covered. Our Vice Presidents Kent and Duane in
London handling details of redemption.
Telegram from the Northern Trust Co., Chicago, Ill.
The press reports war ship Tennessee leaves today; desiring to participate
in depositing funds, let us have definite instructions at once as to what
procedure we must follow. linst have time to give the necessary instructions

-5Travelers' Cheque, Letterof Credit and Foreign Exch. Telegrams, etc., - Continued

August 6: Telegram sent to Union National Bank, Scranton, Pa.
Jollect. Telegram received. Our :Ir. Kent in London. Arrangements under way.

August 5: Telegram sent to Ambassador Page, London, by Secretary of State.
Congress today appropriated 42,5L0,000 to make advances to American travelers
in Europe in need of assistance. F.I.Kent, Vice President Bankers Trust Co.
of New York, at Hotel Savoy, London, has cabled that 4300,000 is needed immediately to relieve Americans on the Continent .ho are in great distress.
The Secretary of the Treasury is seang you by Cruiser Tennessee, sailing
August sixth, 4300,000 in gold. Please advise Kent of this fact, whereupon he
will arrange to place c'300,000 to your credit and make it immediately available for relief purposes.
Confer at once with Kent and with any American
Relief Committee that may be organized in London, or if you think wise,
organize such a committee if none exists and take all such steps as quickly
as possible to extend relief to American citizens in 'ingland or on the Continent who need it, arAaging, if you find it necessary, to dispatch a ship
from an English port to some port on the Continent for this purpose on
such terms as you think the circumstances justify.
It is highly important
to make the most effective possible use of these funds. You may employ such
additional clerical or other assistance as you may require to carry on this
work and ay the same out of this fund. You should take from every one to
whom advances are made an obligation to reiggburse the Government as soon
as possible. Please cable fully and as frequently as possible the steps
you take. For your information 41,200,000 additional will go on the
Tennessee, to be disbursed under direction of Government representatives
who accompany the ship.

August

7:

from National City
answered by mail.
We have been unofficially informed that banks must have their name approved
by Treasury to insure encashment of Letters of Credit out of funds to be
carried on warships Tennesse.. In view of special form of our Letters of
Credit issued through you, please see that our name is also approved.

August

8:

Telegram from First National Bank, :Annan, Idaho.
Iday we sell Travelers' Cheques msrked good only in United States?

August 8:

Telegram to First National Bar, Laillan, Idaho.
Telegram received. Discontinue all sales Travelers' Cheques.
you shortly regarding issuance of further cheques.

'All advise

August 8:

August 8:

Telegram to First National Bank, Berkeley, Calif.
Telegram received. Discontinue all sales Travelers' Cheques.
All advise
you shortly regarding arrangements for cheques for domestic use.

August 8:

I

Telegram from First National Bank, Berkeley, Calif.
:lajority Travelers' Cheques sold by us are for domestic use. Continual demand here for local travel. We are both losing profits under present restrictions.
Suggest use of rubber stamp across face reading for use in
United states only, foreign rates do not apply.
Are reply.

Telegram to National City Bank, Chicago, Ill.
London telegraphs credit 280 our number 239 your number Dawson sent documents
twenty-two bales -rinaetonka direct to Chicago 'Wool Company.
Understand goods
arrived.
Jay we authorize London to nay four hundred and sixty-four pounds?
Telegraph instructions.

-6Travelers' Cheque, Letter of Credit and Foreign Exch. Telegrams - Continued.
August 8: Telegram from First National Bank, Muskogee, Okla.
Please have your representative reach Mrs. J. H. Melton, Kaiser Elizabeth
Street number eighteen twenty one, Vienna, Austria, advancing funds for
her needs, advising us.
***

August 6;

At :Jr. Strong's request, Mr. Close called up the Brooklyn Navy Yard and
ascertained the following from the First Aide of the Captain of the
Navy Yard. Name of Captain of Navy Yard if Captain Cleaves. "Captain not new at the Yard. His First Aide states Tennessee now at
Tompkinsville, and so far as they know, expects to be there all day."

August 8:

Telegram from Third National Bank, St. Louis, mo.
Cable Mr. F. I. Rent,
Please charge our account five thousand dollars.
Waldorf Astoria, London, to pay live amount to Firs. Anna Busch. Wire
action. Rush. Service will be appreciated. Many thanks for courtesy.

August 8;

Telegram from Third National Bank, St. Louis, Mo.
Kindly advise if transfer has been made to London to Mr. Kent, as requested today.

August 8;

Telegram to Third National Sank, St. Louis,
Telegram re eived. Cable Fred I. Kent, care ':.aldorf Hotel, Aldwych 6treet,
We doing needful here, but cannot
London, address of Isrs. Anna Busch.
make direct transfer requested.

Collect

August 8:

August 10:

Telegram from National City Bank, Chicago, Ill.
Referring to your telegram of 6th, authorize London to pay.
due on Monday.

Advise us amount

Telegram to National New Haven Bank, New Haven, Conn.
Referring your letter eighth instant, please discontinue all sales.
rangements under way for domestic use which will be advised later.

Ar-

August 10; Telegram to State National Bank, Texarkana, Arkansas.
Referring your letter seventh, will be glad to protect cheques me nt ioned.
Angus% 10: Telegram to Merchants State Bank, Port Arthur, Texas.
Arrangements for
Kindly discontinue all sales of Travelers' Cheques.
domestic use will be advised later.

August 5:

Telegram from Ndthern Trust Company, Chicago, Ill.
Put us down for one hundred thousand dollars, and we will ship you today
same amount in gold certificates by express. Is this satisfactory? Answer
over this wire.

August 5;

Telegram to Northern Trust Company, Chicago, Ill.
Send us gold certificates, and we will put you down for ;A00,000.
stand this is a general fund and not for any particular c!edit.

You under-

August 5;

Telegram from Nothern Trust Company, Chicago, Ill
Referring to our previous messages, today we have transferred to you by wire
through Assistant Treasurer U.S. at Chicago, one hundred thousand dollars
gold certificates for our account, all charges paid, and Assistant Treasurer, New York, should make payment to you today or tomorrow.

August 5;

Telegram to Northern Trust Company, Chicago, Ill.
Have put you down for 100,000. It will be all right for you to ship the

communicating with State Department, as they may succeed in getting word
to Austrian ambassador.
Travelers' Cheque, Lettr of Credit and Foreign Exch. Telegrams, etc. - Continued
August 10: Telegram from Safe Deposit Bank of Pottsville, Pa.
Can you take care of your checks now in Italy?
Collect

August 10:

August 10:
Collect.

August 10:

Telegram to Safe Deposit Bank of Pottsville, Pa.
Telegram received. Have received no cable advices of refusals from Italy.
71111 instructions were cabled our Italian correspondent to protect cheques.

Brooklyn Navy Yard telephoned that they had received a wireless from Secretary Breckenridge on board the Tennessee, asking for a complete list of
issuers of Travelers' Claques and Letters of Credit.
We telephoned the Navy Yard, stating that we could only supply them with
a partial list, and advising them that a complete list could be obtained,
from Mr. Fred I. Kent, c/o Hotel Waldorf, Aldwych Street, London, and
instructed them to send a message to Secretary Breckenridge on board the
Tennessee, requesting him to send a wireless to
Kent, informing :Jr.
Kent of the port of arrival so as to enable the London Committee to make
full and complete arrangements for the immediate transfer of the gold to
London - which message was confirmed over the wire by the Brooklyn Navy
Yard.

August 10:

Telegram to arand Rapids Savings Bank, Grand Rapids, Mich.
Letter seventh received. Discontinue all further sales Travelers' Cheques.
aill advise shortly regarding arrangements for domestic sales.

August 10:

Telegram from Union Trust Co., Chicago, Ill.
Kindly :ire if you have information as to whether or not American Bankers
Association Cheques are being negotiated in Switzerland and Italy.
Telegram to Union Trust Co., Chicago, Ill.
Telegram received. arrangements made protection all Travelers' Cheques
and credits in Switzerland. Negotiating now with proper authorities
protection Italy.

August 10:

-8Travelers' Cheque, Letter of Credit and Foreign Exch. Telegrams, etc. - continued

August 1G:

Telegram from German National Bank, Cincinnati, 0
Wire best quotation your cable payment London.

August 10:

Telegram to German National Bank, Cincinnati, O.
Telegram received. Regret cannot quote cable London.

August 10:

No market.

Telegram from W. L. Curry, 402 Curry Bldg., Pittsburgh, Pa.
'lhairare prospects for arranging a two or four hundred thousand credit
in London in next few days, and at what cost?
London

August 10:

August 3:

August 11:

August 11:

Telegram to
L. Curry, 402 Curry Bldg., Pittsburgh, Pa.
Telegram received. Regret absolutely impossible present arrange
Telegram to Hon.
G. McAdoo, Secretary of Treasury.
credit.
Will meet sir. Lansing, State Department, Metropolitan Club, V;ashington
nine o'clock tonight regarding arrangement for foreign travelers I discuesed with you.
Would very much appreciate your assistance. Can you
join us there or have a representative, lust return on midnight train.
please wire answer.
Telegram from W. a. McAdoo to Benjamin Strong, Jr.
please telegraph me the names of the gentlemen to whom you advise that
invitations be extended as members of the proposed committee referred
to in my letter of August eighth.

Telegram to Hon
G. MDAdoo, Secretary of the Treasury, signed Benjamin
Strong, Jr.
Suggest inviting Max 2lay, of Guaranty Trust Company; John E. Gardin, of
National City Bank; Henry Ickelheimer of Heidelbaoh, Ickelheimer & Co.,

-

9

-

Travelers' Cheques, Letters of Credit and Foreign Exch. Telegrams,etc.

IIIAugust 1:

Telegram to Charles D. Norton,Vice President First National Bank, New York
City.

Your telegram delayed in transmission if funds are deposited with Department
Embassy in Paris will endeavor to supply funds to Americans for returning
home if money not obtainable will try to arrange for acceptance of orders by
embassy understand Secretary has telephoned you to this effect.
Washington, D.C.
Robert Lansing,
# #
August 3:

###
August 4:

###
August 4:

Telegram to Benjamin Strong, Jr., New York City.
Secretary McAdoo now enroute to Washington from New York will place your
telegram before him upon arrival about three thirty.
George R. Bankers Trust Company, Washington,D.C.
Telegram to Benjamin Strong, Jr., Cooksey,Private Secy. New York City
Just received the following notice from Western Union "Your cable today
to Fred Kent care Waldorf Hotel London signed Strong cancelled stopped by
Government censor to go forward new message in plain English or French
with full address and senders name in full is necessary no code cipher
or abbreviations whatever allowed."
T.B.Harrison, Washington, D. C.

Telegram to Benjamin Strong, Jr., c/o C. J. Hamlin aubtreasury, New York.
The President sent a special message to the Congress
Your telegram received.
at two oclock asking for an appropriation of two and one half millions of
dollars for the relief, protection and transportation of American citizens
in Europe and for the power to use such of the vessels officials and officers
of the Government as he may determine and to take all necessary measures to
The money is to be used not only for the relief of
accomplish said purpose.
the destitute but in the form of advances to citizens who may reimburse the
Government a their return. Until Congress makes the appropriation and
grants this power, it is impossible for me to advise you about fiscal agencies
and other points in your letter, but the President will, I am sure authorize
the appointment of such agents when he has the power. I see no reason why
bankers should not receive from individuals deposits of gold for transmission
at shippers risk. Our idea is to send the money in one of our naval vessels.
The Secretary of State and I are
We hope for prompt action by the Congress.
going before the appropriations Committee of the Senate at four oclock this
afternoon and shall appear before the Appropriations Committee of the house
tomorrow morning at half past ten.
W. G. McAdoo, Washington, D. C.

August 13: Telegram from Cleveland Trust Co., Cleveland, Ohio.
May we issue Travelers' Cheques if we guarantee for domestic use.
August 13; Telegram to Cleveland Trust Co., Cleveland, Ohio.
Telegram received, circular letter mailed you today, each cheque must be
stamped on face through globe also on back through preimed matter as folthis cheque issued for use and redemption within the United States
lows:
Circular letter is being mailed you today .
only.

G. McAdoo to Benjamin Strong, Jr.
August 13: Telegram from
It was the distinct understanding that the bankers in New York represented
by you should take care of Aaerioan travelers in Europe holding unexhausted

or Travelers' Cheques, or that the bankers reimburse the Treasurer promptly
I understood also that :iessrs. Morgan,
through some other available channels.
".10Harjes Letter of Credit and Foreign Exch. possession of - Continued
Travelers' Cheques, and Company, Paris, had been put in telegrams, etc.three million dollars
of gold for the purpose of caring for American travelers holding Letters of
Credit and Travelers' Cheques. It does not seem to me necessary that the government funds should be drawn upon to protect obligations of the bankers, unless
It is most important to keep
it may be until the Tennessee arrives in Europe.
this distinction in mind, and to have complete understanding on this point. Good
deal of confusiOn exists in State Department on this subject, and I want to have
it clarified without delay. Please let me hear from you promptly.
Citizens Savings & Trust Co., Cleveland, 0.
August 14: Telegram to J. R. Nutt,
Have received cable from :r. Kent, reading, tell Nutt his cablegram having
attention.
Merchants Loan & Trust Co., Chicago, Ill.
August 14: Telegram to H. G. P. Deans,
Have received cable from Mr. Kent, reading tell Deans his cablegram having
attention.

August 14: Telegram to C. P. Hutcheson, Cashier, First National Sank, Kansas City.
You may issue Travelers' Cheques for use in United
Yours twelfth received.
"This cheque for
States, stamping each cheque on face and back as follows:
States only. You need have no hesiuse and redemption within the United
tancy in cashing Association cheques presented, when properly countersigned.
August LI: Telegram from Dudley E. Waters, Chairman Grand Rapids National City Bank,
Grand Rapids, Mich.
Can we issue Travelers' Cheques if we use rubber stamp on face reading payable
410
only in United States.

p.11

Travlers' Cheque, Letter of Credit and For. Exch. Telegrams, etc.

Continued

imiktagust 14: Telegram gent Dudley E. Waters, Chairman GrandvRapids National City Bank, Grand
Rapids, Mich.
4IP
Telegram received. You mar issue cheques for use in United States if stamped
on face and back as follows: This cheque issued for use and redemption within
the United States only, Circular giving instructions mailed yesterday.

August 19: Telegram from California National Bank, Sacramento, Calif.
Request your Mr. Kent in London to assist W. F. Myers four the Boyle Folkston
Kent England we guarantee.
August 19: Telegram to California National Bank, Sacramento, Calif.
Telegram received if you will cable your clients to communicate with Fred I. Kent
Waldorf Hotel, Aldwych St., London, he will be glad to assist them in every
possible way, you realize it is impossible for Kent to look up individuals but
he Telegram glad to look after Bsnk &if they Co., Brownsville, Tex.
will be from Brownseville them Trust apply.
We have draft on Credit Lyonnais Paris for fifty nine thousand francs, make offer.
August 19:
Telegram sent to Brownsville Bank & Trust Co., Brownsville, Tex.
Telegram received. Regret not buyers.
August 19:
Telegram sent to H. G. P. Deans, Merchants Loan and Trust Co.,Chicago, Ill.
Kent cables us money telegraphed Lynch through Morgan Harjes, Paris.
August 19:
Telegram sent to J. M. Jellett, Head Office, Dominion Bank, Toronto.
Kindly make inquiries and advise me by telegraph collect if the American Express
August 20:
Co. is issuing Travelers' Cheques in Canada.
August 20: Telegram from J. Y. Jellett, Toronto, Ont.
No, their lowal agents received instructions yesterday might issue them marked
payable only in United States and Canada but received telegram today cancelling
such instructions.
August :0: Telegram sent to Los Angeles Trust & Say. Bank, Los Angeles, Cal.
Your favor fifteenth received. Issue American Bankers Association cheques for
use in the United ;States only, stamping across face and back the following: This
cheque issued for use and redemption within the United States only.
Circular
sent you August 12th, forwarding duplicate today.
August 22; Telegram from Guaranty State Sank, Palestine, Tex Could you cable hundred dollars Paris, if so where payable.
August 22: Telegram to Commercial Germania Trust & Say. Bank, New Orleans, La.
We understand that American Line boats for loading grain are offered at New
Orleans and Galveston and shippers hesitating about furnishing cargo doubting
their ability to sell the exchange.
Auld appreciate your ascertaining situation
at both points and if bills are offered wire us full description with names
drawers and drawees, also particulars as to insurance, and we will endeavor to
handle the bills after particulars are known to us. Would appreciate your ascertaining situation at Galveston promptly as possible.

Travelers Cheque, Letter of Credit and Foreign Exch. Telegrams, etc.

August 24: Telegram from State Street Bank, Quincy, Ill.
Can your Mr. Kent transfer funds to Littstadt Westfalia, Germany.

Answer.

August 24: Telegram to State Street Bank, Quincy, Ill.
Telegram received regret impossible make transfers to Germany.

August 24: Telegram to Jones Cotton Co., Decatur, Ala.
Wrote you 22nd regarding insurance certificates under normal conditions would
not hesitate accept Providence Waahington certificates for moderate amounts.
As advised you, we are noli buying cotton bills at present but handle for collection only. Have written you fully.
August 25: Telegram to J. F. Sartori, c/o Security Trust & Savings Bank, Los Angeles, Calif.
Abaco: some very important meetings will be held in New York beginning next Monday in relation to railroad and savings bank securities. Committee in charge
think it very important you attend as President Savings Bank Section American
Bankers Association. Will appreciate immediate telegram. Very confidential.

4t)

Cablegrams exchanged between Bankers Trust Company and London City and Midland Bank, Ltd.,
London.

July 27:

Cablegram to London.
Charge our account and pay to Swiss Bankverein, London, for account of Banco
hat is amount of our balance
Espanol de la Isla de Cuba, Havana, fil0,000.
at the close of business tomorrow?

July 27:

Cablegram to Holden, care Uidtrust, London.
Confidential. that is your opinion of political situation and money outlook?

July 27:

Cablegram from Holden.
Cannot think general war will ensue, but one between Austria and Servia is
almost certain. Our government will not be allowed to go into war and think
this will have great effect on Russia and prevent them going in. Directors
France not London will be
of Bank of England met today and kept rate
drawing gold from you on account of paying higher prices for eagles.
This
afternoon things slightly brighter. Consols risen from lowest point. Sale
of American securities will keep ap your exchange. What will be the effect
on your market if gold continues to flow out with new bank starting and provision to be made for crops?

'Ally 27:

Cablegram to Holden, London.
Thanks for your cable. Doubt if new bank ready for business before midwinter or spring, and probably not a money factor for the present. Treasury
New York
Department in position to materially assist crop moving demand.
Believe
can still afford to lose some gold without much rate disturbance.
gold movement depends largely upon volume foreign sales securities and extent offset by drawings against crop shipments. Sharp advance bank rate
would probably take considerable gold. Movement of money still from inter-

Continued-

Cablegrams - Bankers Trust Co. and London City and ididland Bank -

July 29:

Cablegram from London.
Think considerable improvement in position. Understand German Government
will publish tonight exchange of telegrams between Kaiser and Tzar of Russia.

July 30:

Cablegram from London.
Roubles - you must instruct us.
We will cable Banque de Commerce de l'Azoff
don. St. Petersburg. Continental telegram subject to considerable delay.
Discounts nil.

July 30:

Cablegram to London.
Foreign news very pessimistic here this morning and insurance on gold with
war risk covered unobtainable. We have no commitments abroad save Travelers'
Cheques, and would prefer gradually extend overdraft arrangement with you to
shipping gold at present. Doubt if over ta00,000 required. Please telegraph promptly if this is satisfactory with adequate collateral deposited
from time to time with First National Bank, New York, for your account.
Kent due in London few days.

July 30:

Cablegram from London.
Received t110,000 Western Electric Company.
Will cable.

Cannot tell fate until tomorrow.

July 30:

Cablegram from London.
Balance to your credit 31,000.

July 30:

Cablegram to Sir Edward Holden.
money rate 6% all maturities. Gold shipments have so depleted bank reserves
I think higher rates likely. Stock market closed very weak and panicky.
Shipping you by St. Louis tomorrow V700,000 gold consigned to our order in
your care. Writing instructions regarding credit on arrival. Please arrange to receive shipment. Would appreciate cable giving latest information.

July 30:

Cablegram to London.
Charge our account and pay to London County & Westminster Bank, Limited,
Lothbury, London, 12,000 for account J. Scott =Comb. You should receive
12,000 for our account tomorrow. Telegraph fate Western Electric Co
110,000. What is the amount of our balance at the close of business tomorrow?

July 31:

Cablegram from Sir Edward Holden.
Ship gold by all means to cover your total liabilities.
Balance to your credit 40,000.
8%.

Bank of England rate

August 3:

Cablegram to London.
Situation regarding travelers lb France probably necessitates
Kent in London.
Please place gold at Kent's
diverting some gold shipped you by St. Louis.
disposal. You can rely on his good judgment.

August 3:

Cablegram from London.
Are we to insist on policies under Commercial Credits to cover war risks?

August 4:

Cablegram to Sir Edward Holden:
Cable immediately assuring us that V700,000 in gold on St. Louis will be held
subject to Kent's instructions. Keep in touch with Kent, whom we are keeping
informed constantly of all particulars. Please answer immediately.

August 4:

Cablegram from London City and Midland Bank, Ltd., London.
Impossible to discount here. You must send gold.

Cablegram - Bankers Trust Co. and London City and midland Bank -

Continued -

-3August 4: Cablegram sent to London City and Midland Bank, Ltd., London.
Accept policies under Commercial Credits covering coffee shipments from Santos
and tea from Japan to United States if war risk not included, provided shipments are under way at least ten days.
Consult Fred Kent at Waldorf Hotel
on all matters requiring immediate attention and keep us posted by cable.
August 5: Cablegram from Holden, London.
It is quire understood that gold on St. Louis is to be held at Kent's disposal.
August 7: Cablegram sent to Sir Edward Holden, care London City Midland Bank, 5 Threadneedle Street, London, England.
Your yesterday's cablegram received. Greatly appreciate the many courtesies
extended to Mr. Fred I. Kent and ourselves.

August 8: Cablegram from Midland Bank, London.
Credit two hundred and eighty Dawson sent documents twenty-two bales Minnetonwe pay
ka direct to Chicago Wool Company. Understand goods have arrived.
four hundred and sixty four pounds?
August 8: Cablegram from Midland Bank, London.
Refer yours twenty-third, seventeen thousand and fifty-three to fifty-six
brokers refuse under moratorium.
August 7: Cablegram from London City and Midland Bnnk, London.
Cable fate of all stock drafts.

August 8: Cablegram to London City and Midland Bank, Limited, 5 Threadneedle Street,
London.
Cannot understand your cablegram regarding stock drafts. Advise us more fully.
Referring to your recent cablegram, you may make payment under credit number
two hundred and eighty.
August 9: Cablegram from Midland Bank, London.
Cable amount of our balance Monday evening. Moratorium is absolute. Bankers
paying about 10% of deposits in cash. Government is issuing government currency direct to bankers.

August 9: Cablegram from Midland Bank, London.
Keep down -,:our dra.:ings on your account as far as 3ossible until discount market
working again.

August 10:Cablegram to London City and Midland Bank, Limited, 5 Threadneedle Street, London,
England.
Referring your letter July thirtieth, draft for one hundred thirty-two thousand
two hundred fifty dollars on Harvey Fisk & Sons should be drawn on Hayden Stone
and Company, New York. Please confirm immediately. Refer your cable stock
drafts all paid, except draft just mentioned, and Hallgarten 4125,400 Halle
and Stieglitz $95,000, Ladenburg Thalmann 4290,000. Understand these will
be taken up tomorrow. Shall cable you when paid. Balance to your credit
4351,890.
August 10:Cablegram from Midland Bank, London.
We convent (?) the following message: The Minister of Finance and Receiver
General of Canada having agreed to receive on behalf of the Bank of England
deposits of gold at Ottawa, the Bank of England are willing to purchase gold
bars at seventy-seven shillings and six pence per oz. standard and eagles at
seventy-six shillings and one halfpenny per oz. when deposited as above.

Cablegrams - Bankers Trust Co. and London City and :.Tidland Bank - Continued.
-4-

Deposits must be made free of expense, including all telegraphic charges,
and the Sank will accept the assay of the American Mint, subject to the
usual guarantee from the parties, claiming payment in London. The Minister of Finance has undertaken to advise the Bank of England by cable,
through the High Commissioner in London, of any deposit made, and depositors should furnish him with the name of the person or persons to
whom the proceeds are to be paid in London. Payment will be made by
the Bank of England only on receipt of advice from the High Conmissioner.
These conditions are subject to any minor alterations or additions which
the Minister of Finance at Ottawa may desire.
August 11: Cablegram from Midland Bank, London.
:e credit your account one hundred thirty-eight thousand gold balance tomorrow.
August 11: Cablegram from Midland Bank, London.
Commercial credits stating insurance cared for your side; we understand
you are attending to war risk. Reply.
August 11: Cablegram to London City :,:idland Bank, 5 Threadneedle Street, London.
Referring your cablegram commercial credits, if insurance America, war risk
attended here.

August 11: Cablegram to London City and Midland Bank, 5 Threadneedle Street, London.
Referring our cablegram tenth, stock drafts received too late to present
all yesterday. Hallgarten, Halle, Stieglitz and Ladenburk Thalmann drafts
paid immediately on presentation today. Notify Japhet and Company. Vie
were in fault our cable advices, which may have indicated delay in payment.
Awaiting your instructions regarding Harvey Fisk draft; Hayden Stone have
no instructions.
August 12: Cablegram from midland Bank, London.
We sent you per Mauretania following stock drafts on Ladenburg Thalmann
dollars thirty thousand, two hundred ninety thousand; Randolph ninety
thousand; Hallgarten thirty, seventy-four thousand four hundred, fifty-one
thousand; sartorius and Eindstein twelve thousand; Harvey Fisk one hundred
thirty-two thousand two fifty; Elliott Co. twenty-nine thousand seven
seventy-seven; Post Flagg five thousand; Bernhard Soholle fourteen thousand
five hundred, one hundred and five thousand, tan thousand; Halle Steiglitz
Cable fate Lanediately.
ninety-five thousand.
August 12: Cablegram to London City and midland Bank, 5 Threadneedle Street, London.
Cablegram received. Mauretania stock drafts all paid, except Harvey Fisk.
Refer our yesterday's cablegram regarding this.
August 12: Cablegram to Sir Edward Holden, 5 Threadneedle Street, London.
Believe Bank of England plan for accumulating gold in Canada great mistake,
and is arrousing opposition here. If plan succeeded, would impair New
York gold reserves at a time when huge credit expansion will be required.
With Clearing House certificates in operation, emergency currency available, and later federal reserve banks in operation, our present gold reserves will serve as basis for credits here, which will be far more effective
in handling Trans-Atlantic shipments and taking back securities than by
Any tendency to withdraw gold or embark gold held
arrangement proposed.

Cablegrams .7. Bankers Trust Co. and London City and Midland Bank - Continued -5-

here will, in my opinion, indefinitely defer opening Stock Exchange and
call loan market, and interfere seriously with effort of New York banks
to gradually take up foreign obligations and pay for them with grain
and commodity bills.
Please show this to Kent.
August 12: Cablegram from Midland Bank, London:
Cambrian war risk policies received per Shipton account Robinson Sweet
thousand quarters oats.

nine

August 13: Cablegram to London City Aidland Bank, London.
Cablegram received, stock draft one hundred thirty-two thousand two hundred
fifty Dollars paid by Hayden Stone for account Bashford, notify Crews Lichtenstadt.
Would moratorium be applied to Robinson Sweet's drafts on Shipton,
Cable immediately amount out
covering which you hold war risk policy.
balance.
August 13; Cablegram from Midland Bank, London
Stock draft one thirty two two fifty dollars Fish present to Hayden Stone.
Cable result. Cambrian war risk policy seven thousand quarters received per
Shipton account Robinson sweet. Cambrian war risk policy one thousand quarters
received per ;ilea con account Robinson Sweet.
August 14: Cablegram from Holden, London.
Working here more freely today. Bill brokers are doing a little more business,
and discounting at the bank money over for deposit with banks. Position easier.
Improving daily.

August 15: Cablegram from Midland Bank, London.
Credit thirty five thousand.
August 16: Cablegram from 7lidland Bank, London.

Your cable fourteenth bills accepted before fifth August subject Moratorium
dalpton says Rohinsons drafts will be paid on or before first maturities.
August 16: Cablegram from Holden, Midland Bank, London.
Position still better today, banks are very liberal to customers and letting
them have what they want.
August 18: Cablegram from Midland Bank, London.
What interest are you allowing on our account.
(x)

August 17: Cablegram from Midland Bank, London.
Discounts forward six spot five half per cent. clearing banks only, fifty
thousand in all.
August 17: Cablegram from Holden, Midland Bank, London.
Things much better here, bill brokers are quoting discount rates.
August 17: Cablegram to Holden, ; London City Midland Bank, London.
Some money loaning
Your various cablegrams received, thanks very much.
around eight per cent. here. Much better sentiment here but no prospects
of New York Stock Exchange opening for some time.
(x)

August 18: Cablegram sent to London Uity Midland Bark Limited, London.
Cablegram received, still allowing you 3 per cent. interest your account.

-6-

Cablegrams - Bankers Trust Co. and London City and Midland Bank - Continued -

Cable us immediately net amount credited
Requesting Kent confer with you.
our account for seven hundred thousand St. Louis gold.
August 18: Cablegram received from Holden, Midland Bank, London.
Over pressure discounting bank not taking in bills after this Morning.
Will continue tomorrow; things going better, more money cirlulating.
August 18: Cablegrai from Midland Bank, London.
Clearing banks limit 12 25,000
Discount six per cent.

in all.

August 19: Cablegram sent to London City, Midland Bank, London.
National Bank Greece, Athens, will deposit with you for our credit fifty
thousand pounds sterling, cable us immediately when funds received and value
date credited.
August 19: Cablegram from Midland Bank, London.
Discounts same as yesterday.
August 20: Cablegralp from Midland Bank, London.
2458 unpaid, refer drawer.

August 2o: Cablegram to London Cuty Midland Bank.
Your cable received, present collection 2458 again and cable only when paid.
August 2o: Cablegram from Midland Bank, London
Proceeds gold St. Louis 143567 seventeen three.
August 2o: Cablegram from Midland Bank, London
We credit you 12 50,000 per Banque Nationale Greece Athens.
August 20: Cablegram from Midland Bank London.
Discount give half stipulations same.
August 20: Cablegram from Holde#, Midland Bank, London
We are waiting for Bank. Statement tomorrow, Bank closed for discounting almost
as soon as opened, bill brokers will probably have money for discounting in few
days, no continental exchange quotations whatever, things are still improving,
money getting cheaper.
August 21: Cablegram from Holden, Midland Bank, London.
Chancellor has issued circular asking, if general wish to renew moratorium our
opinion will be renewed for one month, Joint Stock banks accumulating large resources if bank had not stopped discounting. Ratio wouLl have been much less
awaiting news.
August 21: Cablegram to Holden, London City Midland Bank, London
Situation here unchanged; Money slightly easier, foreign exchange market nominal,
large demand, very little exchange offered.
Greatest difficulty here is
shipping. Sentiment much improved last few days.
August 21: Cablegram from Midland Bank, London.
Credit you b 9191 ten six account Huronion Company per Merton.

August 21: Cablegram to Midland Bank, Londpn.
Cable amount our balance.

-7-

Cablegrams - Bankers Trust Co. and London City and Midland Bank, - Continued.

41)August 22: Cable from Midland Bank.
No improvement from yesterday, builiness not likely ta improve until allies gain
decisive victory.
August 24: Cable to Midland Bank.
Refer our cable regarding Tennessee gold. Cancel any letters of sixth,
August 22: CablegraE to Midland Bank.written you under instructions London Committee. Regret misu
cables has
Pay Imperial Ottoman Bank London one thousand pounds for credit Melachrino Comstanding.
pany Egypt, Alexander.

August 24: Cable to London.
August 22: Cable from Midland Bank. account and credit J. R. Trimble, 46 Stanwiok Mansions Pounds
Charge our
Discount same. eight notify party Baker.

August 22: Cable from 24: Cable from London.
August Midland Bank.
Tennessee gold Receive our account us
not deposited with 750,000 dollars deposited with Bank England
Understand from Hanover National Bank.
to order of officials who accompanied - is this order.

August 25: Cable from London
August 22: Cable to LondonDiscount same.
City.
Your cablegram received, cabling Kent regarding Tennessee gold, consult him.

August 25: Cable to London.
August 23: Cable from Midland Bank. you twenty two thousand dollars account Thomas Firth Sons Shef
Crediting
Credit balance per Wheelock Lovejoy.
70,000 credit you account Huronian Company per Merton h 9171 thirteen five.

August 25: Cable to London
August 23: Cable from Midland Tilliam Fraser and Company, London, five hundred forty nine pounds,
Pay Bank.
Discount same. Coronet Phosphate Company, and American Express Company, 6 Haymarket, o
dred sixteen pounds and seven shillings, account Gorda D. Lowndes, test

*August 24: Cable from Midland Bank.
88.
Discount same.

-8-

Cablegrams exchanged between Bankers Trust Co. and London City and Midland Bank.

25:

Cablegram from London
Imperial Ottoman cannot effect payment to Melachrino Cairo but will hold in London their disposal, instruct.

25:

Cablegram from Holden, London.
Notwithstanding Namur, things are better feeling against import cotton account
uncertainty regarding mills continuing, merchants undecided at present regarding
export.

25:

Cablegram from London
Credit 261 Gottlieg: May we accept drawings from Shanghai also without war risk.
Instruct regarding future drafts.

25:

Cablegram from London.
We credit you 18,051 eighteen eleven account HUronian Company per Merton.

26:

Cablegram to London.
Cablegram received. Instruct Imperial Ottoman hold funds subject instructions
Melachrino, Cairo.

26:

Cablegram from London
Discount same.

26: Cablegram from London.
Robinson paid.
A
Cablegram received, accept drafts documents attached with war risk against docuCablegram to London.
26:
mentary credit number two hundred sixty one.
August 26:

Cablegram to Holden, London.
Plans underway for warehousing large surplus cotton and enabling banks to carry
until next year. Would appretiate details as to possibility English mills conStill working on city warrants.
tinuing. More sterling exchange offering daily.
Very quiet here, sentiment improved.

August 26:

Cablegram to London
Charge our account and pay London County Westminster Bank, Lothbury, London,
three thousand pounds for account J. Scott McComb, test number 78.

August 27:

Cablegram from London
Discount five quarter Reeves Clearing Banks 12 25,000 in all.

August 27:

Cablegram to London.
You will receibe twenty nine thousand pounds for our credit account Texas Company,
cable when received.

August 27:

Cablegram from London.
Account Amer1can Waterworks and. Guarantee pet Guarantee Trust Co. b 1500, test 81.

August 27:

Cablegram to London.
Sachs, New York. Pay Union London smiths Bank, London, five
Pay Kleinwort Sons Company, London, fifteen thousand pounds account Goldman thousan
account New York offices Pay yourselves five thousand pounds account
City Bank, New York. Pay Credit Lyonnais, London, four thousand pou
Southwest National Sank, amerce, Kansas City; refer our cablegram
second, request Imperial Ottoman Bank, London, to cable their Cairo
that amount has been deposited with them for credit of Melachrino Co
Test number 83.

-9-

Cablegrams between Bankers Trust Co. and London City and Midland Bank.
August 27: Cablegram from London.
Position still better, discount market beginning to work but few bills coming
forward. please inform us position cotton market with you, there is agitation
to end moratorium but hankers and business houses think should be extended,
agitation for opening stock exchange but if opened large amount of stock would
be offered possibly leading to gold shipments.
August 28: Cablegram from London.
Discount five quarter Smith Reeves spot five stipulations same.

August 28: Cablegram from Holden, London
Question moratorium to be settled in House Commons Monday, feeling here not so
good today but financial position about the same. Brokers buying bills on clearing bankers.
August 28: Cablegram from London.
b 29,000 Texas received Shipton paid.
August 28: Cablegram to Holden, London
Considered here surplus crop this year may exceed three million bales. Plans
now well developed for enabling southern banks carry over surplus but personally
Much depends on consumption by
consider prices must and should go lowerA
Personally believe lower prices will greatly stimulate American
English mills.
Immills consumption and high cereal prices tend to reduce next years crop.
portant that English cotton buyers should arrange credits which will insure discount long bills or handle through New York credits. Our stock exchange cannot
reopen for some time, should think opening yours would be dangerous,. Extension
moratorium should be considered with regard to effect on American commodity bills
unless payments can be arranged in New York. Demand for exchange inaistant. Situation otherwise improving.

August 28: Cablegram to London.
Pay Albert °Wise, 43 Great Tower, London, four thousand pounds; pay Charles
T. Garland, care Lloyds Bank, St. James Street, one thousand five hundred
Pay Mrs. Helen B. Deweerth, care Ritz Hotel, three hundred ninety two
pounds:
pounds and three shillings, cable amount our balance, test number 98.
August 29: Cablegram to London.
We hereby open a credit for fifty thousand p6unds sterling favor Chile Exploration Company, Chuquicamata, Chile, for account of Chile Exploration Company,
Credit to
New York, available by ninety days sight drafts on yourselves.
remain in force six months, advise party by telegraph though Banoo de Chile,
Valparaiso. Test number 84.
August 29: Cablegram from London.
Se credit you 12159 nineteen one HUronian Company per Merton.
count American water Works Company per Guaranty Trust.

2400 pounds ac-

August 29: Cablegram from London.
Credit 87,000.
August 31: Cablegram to London.
Crediting you six thousand dollars account Thomas Firth Sons, Sheffield, per
Wheelock Lovejoy.
August 31: Cablegram from London..
available cost policy
2487 unpaid, not sufficient, is credit 135 Conti still
Smiths.
added to invoice, discount five, clearing banks 25,000 in all

-10Cablegrams between Bankers Trust Co. and London City and aidland Bank.
4.11 0.11

August 31: Cablegram to London.
Charge our account and pay Albert Tireher, Grand Hotel, London, one hundred
fifty pounds, test number 84.

August 31: Cabled from London.
e credit ycu 4626 EUronian Company per Merton.
August 31:

an from London.
4626 received account Huronian Company per Uerton.

Cable

September 1: Cable; .m from London.
Discount same

September 1: Cablegram to London.
Received two cablegrams advising credit h 4626 each account Huronian, is
this correct.
Seotember 1: Cablegram from London
17085 Wiles paid
September 1: Cablegram from Holden, London.
Discount market better today, bills on Clearing Ranks wante: mixed parcels
of bills have been done.
September 1: Cablegram to London.
Renew Credit number two hundred eighty Dawson, for four hundred sixtythree
pounds, teat number 61. You will receive fifteen thousand sixtyeight pounds
nine shillings six pence from London Committee for our credit.
September 1: Cablegram from London.
17097 paid.
London.
Jeptelber 1: Cablegram
e credit 8501 two nine account Huronian Co. per 1.:erton.

Test 63.

September 1: ,:ablegram from Holden, London.
Your cable twentyseventh, it is thought cotton trade will be very quiet for
month or two, difficulty at present in arranging for delivery of goods to
Spinners also refraining from buying because expecting raw
'.astern buyers:
cotton cheaper in near future, closing of cotton exchanges prevents quotations being properly tested.

September 2: Cablegram from London.
For-ard 4 7/8 spot 4 3/4 Reeves Clearing Sank. 50,000 in all.
September 2: Cablegram to London.
Lessage one: Referring our cablegram August twentysix, Imperial Ottoman Sank,
Cairo, cables they received no advice from their London office of amount deposited there. Request Imperial Ottoman London advise their Cairo office by
cable of amount deposited with the in London for use of relachrino, Cairo,
and cable us when they have done so. Will number our mosso:7es consecutively
Kindly do likewise :your messages.
hereafter.
Se)tember 2

Cablegram from London.
Ours thirtyfirst 4626 Huronian ignore second cable, one amount only, regret.

Cablerams between 3ankers Trust Co. and London City and 1:lidland Bank

11.

Septem

and fu

Septem

Sept am

4411/ Septem

Septem

Septem

Septem

Septem

Septem

Septem

411

Septem

Cablegram from Holden, London
Call money at present 3%. New money almost unlendable, probably
-12duction in bank rate if ratio becomes more normal, accepting hou
being taken from 4 to 5 per cent.with some exceptions clearing b
Cablegrams between London City and midland Bank and the Bankers Trust Company.
freely at 3:14- per cent, feeling here improving and very optimist
to see cable exchange firmer.
September 9:

September 8:

(Holden)
Cablegram from London.
Cablegram from beginning to work the whole position is
September 10:
Rates here lower, accepting houses London.
message eleven, discount same.
better, people have more confidence all round.
Cablegram from London.
September 10: Messaee twelve, received 21,900 Texas Company.

September 10: Cablegram to London.
message six. pay Swiss Bankverein, London, 10,000 pounds accoun
Espanol, Havana. Par Albert Ochse, 43 Great Tower London, 4000
You will receive 10,000 pounds for our credit f
test number 65.
Bank Commerce.

September 11: Cablegram from London.
Cable 13 discount same.
September 11: Cablegram from London.
Pullman paid.
Cable 14.

September 11: Cablegram to Holden, London.
City financing satisfactorily cincluded, am working on plan for
cate to meet other maturing obligations, if successful hopeful e
situation will greatly improve, Government attitude railroad rat
aging.

September 12: Cablegram to London.
message seven. Pay Union of London 1954 pounds, 11 shillings, a
Cable amount our balance.
R lams and Zoonen, test number 78.

September 14:

Cablegram from London.
Smith Reeves same conditions.
Discount

September 14: Qablegram from Holden, London.
t wish you would make an effort to ship as much of our balance

-13--

Cablegrams between London City and 1.11dland Bank and the Bankers Trust Co.

in gold to Ottawa for our account, you would assist very much the American
Finance in this market if you could do that.
September 14: Cablegram to Holden, London.
Personally believe we must pay our foreign balances promptly in gold if
exchange not available but believe if one institution should ship gold
not effect would be unfavorable. Our influence with others has resulted in
Comprotecting city warrants in full by shipping gold if necessary.
Am now making effort
pany contributing near4 5,000,000 for that purpose.
through -ashihgton authorities to raise gold fund seventyfive or one hundred million for general exchange purposes -.ith some hope success. This
fax preferable to separate gold shipments as protects bank position New
Present difficulty increasing volume exchange due.partly to narrow
York.
.ould not this plan following payment city warrants
London discount market.
Please
result broader discount market which we regard vitally necessary.
cable fully.
September 14: Cablegram from London
Cable 17 last 16 omitted, credit 24,028.
September 14: Cablegram to London.
message eight Pay V. =2oultrie lordecai, Hotel Cecil London 250 pounds,
test number 69, crediting you ;36,000 account Thomas Firth Sons, Sheffield,
per wheelouk Lovejoy.
September 15:

Cablegram from nondon
Buy for our account daily until further notice
Message 18:

Cablegrams exchange6 between the Bankers Trust Company and Morgan, Harjes
& Co., Paris.

July 27:

Cablegram to Trustarjes, Paris.
Confidential. That is your opinion of political situation
and money outlook?

July 28:

Cablegram from Morgan, Harjes & Co., Paris.
Confidential. Political situation here very critical and hardly
possible to give any proper appreciation as to outcome and the
effect on financial situation, but at best outlook very disturbing for considerable time.

July 29:

Cablegram to Trustarjes, Paris.
Charge our account and pay to Banque Francaise pour le Commerce
et l'Industrie, Paris, for account of Pombo Hermanos, Cartagena,
Colombia, Francs 15,000. Referring to your letter of the 17th
instant, have Albert Nunes make alterations in the proposed
assignments, reducing the amount of 41,000 to any lower figure.

July 31:

Cablegram to Trustarjes, Paris.
Assist Miss Younker, who is the holder of our Letter of Credit
No.5447, and if necessary facilitate her return.

July 31:

Cablegram to Trustarjes, Paris.
Our Travelers' Cheque balance Credit Lyonnais, Paris, exhausted.
They advise London reimbursement impossible. Please arrange protect payments out of our balance with you, allowing each ap)licant
minimum requirements. What credit can we arrange with you for
Travelers' Cheques, reimbursement against collateral deposited
here.
Can you assist us arranging to have steamship companies
accept Travelers' Cheques for passage money with reimbursement
New York, allowing applicants sufficient funds for necessary
expenses? Kent will get in touch with you from London and arrange
details.

August 1: Cablegram from Morgan, Harjes & Co., Paris through Messrs. J. P.
Morgan & Co., New York.
Refer to cable Bankers Trust Co., New York, July 31. Please tell
them that in view of completely demoralized financial situation
and impossibility get any kind of remittances from abroad, including England, very much regret arrangement suggested impossible.
Of course will pay up to balance their credit waiting to hear from
Kent, and will approach steamship companies in regard to Travelers'
Cheques, although no passages available before end of September.
August 3: Cablegram sent to Trustarjes, Paris.
Am endeavoring arrange with State and Treasury Departments for
relief of travelers in France either by shipment of gold or
arrangement special credits. Would appreciate cable from you
offering co-operation with your facilities in handling matter.
If our Mr. Duane in Paris, Hotel France et Choiseul, he will
Will cable details later.
co-operate also Ambassador Herrick.

1, August 4: Cablegram to Trustarjes,
Pay to George G. Fleurot Francs seven thousand five hundred on
application. Advise as when payment has been made.

Cablegrams - Bankers Trust Company and Morgan, Harjes & Co. - Cont'd
- 2

--

Cablegram to Trustarjes, Paris.
Will you please cable information regarding Mrs. M. P.
and Marguerite, whose address is in your care.
August 4:

Cablegram to Trustarjes, Paris.
Pay to Miss Delphine Dodge, in care of Elisee Palace H
Paris, Francs 2,000. Please advise payment by cable.
this your immediate and personal attention.

August 4:

August

Cablegram to Strong, President Bankers Trust Co., New
Your cable received. We have done everything needful
vide financial accommodation all Americans in France w
hold legitimate credentials. Ask Davison show you my
gram to him.

7:

Ear jee.

August

August

Cablegram to Herman H. Harjes, Care Morgan, Harjes & C
31 Boulevard Eaussmann, Paris, France.
Cablegram received. Many grateful Ame.icans both here
abroad would like to send you their personal thanks.

7:

Cablegram sent to Morgan, Harjes & Co. from J. P, Morg
Suggest drafts against travelers' credits should be in
York funds on New York, five Francs to dollar. Cheque
Travelers' Cheques should be bought at five Francs to
lar, giving holders of Travelers' Cheques with fixed r
receipt which would show amount paid, leaving them opp
tunity claiming difference in rate from issuers of che
after their return.

7:

August 8:

August 8:

Cablegram from Harjes, Paris.
Mrs. M. P. Carter and Marguerite Hotel Imperial, Londo

August 24:

Cablegram to Paris.
Cable immediately amount our balance. Can we have funds deposite
you our credit not subject moratorium.

August 25:

S

Cablegram from Harjes, Paris.
We have paid Dodge & Flearot, but as testword impossib
we act under your sole resoonsibility.

Cablegrai from Paris.
Balance about two hundred and seventy thousand francs, you can hav
deposited with us not subject moratorium.

Cablegrams exchanged between the Bankers Trust Company and the Deutsche
Bank, Berlin, also Hamburg.
July 27: Cablegram to Schmidt, care Bankerdeut, Berlin,
Confidential. What is your opinion of situation and money
outlook.
July 28: Cablegram from Hugo Schmidt, Berlin.
Confidential.
Situation today wade better but still very
uncertain. Money rather tight but further developments
quite depend upon politics.
July 30: Cablegram to Deutsche Bank, Hamburg.
Our Mr. Kent on board Victoria Luise. Please communicate
with him immediately, if he has not already called on you.
Telegraph result promptly.
July 30: Cablegram to Bankerdeut, Berlin.
You will receive from Direction der Disconto-Gesellschaft,
Berlin, Larks 500,000 for our account tomorrow. Communicate
That is amount of our balance at the
at once with them.
clone of business tomorrow?
July 31: Cablegram to Bankerdeut,
Sending cable to our Mr. Kent in your care. If he 1ms called
and departed, please repeat message to him in care of London
City and Midland Bank, Ltd., London. Telegraph us what has
been done.

August 1 :Cablegram to Bankerdeut, Berlin.
Anxiously awaiting reply to our various telegrams. Please
Telegraph daily what is amount
reply by tel-3graph at once.
of our balance. When did you last hear from 2:ent?
August 2:Cablegram from Deutsche Bank, Berlin.
Your credit balance 1,890,000.
August 3:Cablegram to Hugo Schmidt, care Deutschbank, Berlin.
Baroness Antoinette von Romberg, daughter of Converse, our
former President and my father-in-law, wife of Captain von
Romberg, your army Wiesbaden, desires your immediate credit
your -Aesbaden branch Marks 25,000. Would greatly appreciate
your arranging this at once out of our balance. Ple ase
answer by cable.
August 3:Cablegram to Deutsche Bank, Berlin.
Charge our account and transfer by telegraph to your Wiesbaden
office Marks 25,000 for credit of Baroness Antoinette von
Romberg.
August 3:Cablegram from Deutsche Bank, Berlin.
Referring to your telegram of 1st instant, have received
your telegram of 30th ultimo only advising 500,000. Balance
to your credit today 944,000;900,000. Kent left Friday
evening London.

August 4: Cablegram from Deutsche Bank, 2erlin.
Shall we under present conditions continue honor dispositionsunder your Comnercial Credits which have not been
confirmed by us.
Au 7ust 4: Cablegram from iJeutsche Bank, iArlin.
Telegraph us in your code via Vigo Emden.

August 4: Cablegram from Deutsche Bank, Berlin.
Your yesterday's cable payment Romberg Wiesbaden executed.
August 4: Cablegram to Deutsche Bank, Berlin.
Pay by telegraph immediately Marks 2500 to .:rs. O.
Cable us 7-hen payment
Jackson, Nassauer Hof, Wiesbaden.
has been effected. Thanks.
August 4: Cablegram from Deutsche Bank, Berlin.
Our cable address now Deutsche Bank.
August 4: Cablegram to Deutsche Bank, Berlin.
Please pay against Travelers' Cheques sparingly.
us daily amount of our balance.

Telegraph

.

August 4: Cablegram to Deutsche Bank, Berlin.
Cancel our Commercial Credits 249, 251, 265, 279. Advise
beneficiaries immediately.
Please confirm cancellations
by post.
August 4: Cablegram from Deutsche Bank, Berlin.
Cables for Kent just recei7ed. The same contain, as we see,
code words; therefore cannot repeat them further from here.
Would suggest to cable Kent from there direct to London
where we suppose he is still stopping.
August 4:

Wireless message sent to Deutsche Bank, Berlln, through Radio Station,
Tuckerton, New Jersey.
Converse hears nothing from his daughter, Baroness Von Romberg, Wiesbaden, would appreciate report if all right and supplied with money.
(Similar message to above sent to Danske Landmandsbank,
Copenhagen. for forwarding to Deutsche Bank, Berlin.)

Cablegrams exchanged between the Bankers Trust Company and 1.1r. Duane.

aJUly 31:

Cablegram from Duane, Paris.
Do you nesd me?

July 31:

Cablegrap to Repamex, Paris.
Duane -- all immediately at 11organ, Harjes for cablegram.

July 31:

Cablegram to Duane, care Trustarjes, Paris.
Using our code for this message. No immediate need for ypur
Cable received.
return, but suggest you may prefer avoid any risk of delay. Our Paris balance
for payment Travelers' Cheques pretty well exhausted.
Please see Harjes and
ascertain situation respecting cashing Travelers' Cheques there and at Credit
Lyonnais, Paris, and advise us fully.
We are endeavoring to negotiate special
loan to Credit Tjonnais, Paris, $1,000,000 gold against which we wish like
overdraft, if needed with them, and will deposit securities First National
Bank, New York. This arrangement would greatly facilitate travelers and
hope can be made.
Please cable fully what you learn. Are you in touch with
Kent?

August 1:

Cablegram from Mr. Duane in Paris.
Your cable not received until after Credit Lyonnais, Paris closed.
Harjes
has cabled you fully - advises shipping gold at once to cover Travelers'
Cheques.
Situation here very grave.
Am trying to locate Kent.
All try
to go to London at once. Will cable on arrival. Address until leaving
here Hotel France et Choiseul.

August 1:

Cable received Saturday et Choiseul, Paris.
If unable leave Paris try to ascertain h
Cablegram to Duane, Care Hotel France P. 14.
much will be required for Travelers' Cheques and what is situation rega
our travelers getting funds. Will endeavor to divert $200,000 gold arr
in London on St. Louis to Paris.
Have Travelers' Cheques rrotected to
extent possible. Kent enroute to London from Berlin but not certain he
get there.
Keep us posted fully by cable at any hour, but get to Londo
that is your judgment.

August 4:

Cablegram from mr. W. N. Duane.
Reached London and joined Kent today.
Advise all speed in following Ke
request for shipment of gold, ships to transport Americans.

August 6:

Cablegram to W. N. Duane, care Savoy Hotel, London.
Overjoyed your cable. 50 are hustling gold off possibly today. Are wo
about Kent. Keep an eye on him and see that he does not risk his health
Both of you have huge task, which wont be performed if you break down a
can't be done all at once.

Duane, London.
August 11: Cablegram from
You evidently misu
No answer received to Kent's last two wires to you.
stand Kent's proposed plan with Swiss Bank-Verein; plan approved by Lon
Suggest caution not to reflect on Swiss Bank's London :
Bank committee.
London Committee fully endorse all Kent's plan; he is doing excell
ger.
work.

*August 12;

Cablegram from Duane, London.
Advise that no company business be referred to in wires to Kent regardi
London Banking Committee affairs, so such wires can be exhibited to Com
Reid here.
mittee. Deliver cables sent today Company's care.

-2-

Cablegrams between Bankers Trust Co. and W. N. Duane.

411

411

411,

August 22: Cablegram from Lond.
Will sail August 29 unless you advise otherwise, answer.

Miscellaneous cablegrams.

Cablegram to Banco Franc
Market unsettled owing to

::iscellaneous cablegrams.

-

2

August 4:

shipments against dep
dollars per pound St
days full settlement
Cablegram from Den Danske Landmandsba
our account.
Cable
Can only honor Travelers' Cheques to
cover.

Swiss Bankverein, London.
August 7:

Miscellaneous cablegrams
August 7:

August 6:
411

Cablegram from Landmandsbank, Copenhagen.
Can pay 37150 for dollars placed to our credit.
- 3

Cablegram sent to Landmandsbank, Holmens Kanal 12, Copenhagen
Advise us amount we should credit your account with us. Gre
Cablegram sent to Hanson Cleveland Coxe,36 Avenueto facilitate Paris,
appreciate your co-operation de l'Opera, protection of our
France.
Signed Allan Merritt, James Converse.
Pay holders sparingly.
Cheques.
Any help or advice given Miss Delphine Dodge, Hotel Elysee Palace,
will be greatly appreciated.

Miscellanoeou cablegrams

4

IMP

August 7:

Cablegram sent to Williams, Harvey & Company, Ltd., Altcar Road,
Bootle, Liverpool.
Cablegram received. Will allow you three per cent. on daily balances
for the present.

August 8:

Cablegram from Landmandsbank, Copenhagen.
Credit account five thousand dollars.

August 8:

Cablegram to Banque Internationale de Bruxelles, 27 Ave des Arts,
Brussels, Belgium.
Pay Travelers' Cheques sparingly. If our account in need of funds, can
If so, at what rate and what amount is
we credit you in dollars here?
required?

August 8:

Cablegram to Hope and Company, Keizersgracht 579, Amsterdam, Holland.
Pay Travelers' Cheques sparingly. If our account in need of funds, can
If so, at what rate and what amount is
we credit you in do lars here?
required?

August 8:

Cablegram to Schweizerische Kreditanstalt, Paradeplatz 8, Zurich,
Switzerland.
Pay Travelers' Cheques sparingly. If our account in need of funds, can
we credit you in dollars here; if so, at what rate and what amount is
required?

August 8:

Cablegram received by State Department, Washington, from our Ambassador
in Switzerland.
If National City Bank, New York, will cable credit of $10,000. gold
tomorrow and $90,000 gold Saturday, $100,000 total, to Nationale Banque
Suisse, Zurich, immediate, I think relief American travelers in
Switzerland will be effected. Drafts will only be cashed when secured
by deposit of gold coin in National City Bank, New York, for credit of
Banque Nationale Suisse. This information is from the uwiss Government.
Think Department does not appreciate seriousness of financial condition
here. Even drafts for salaries of legation officers are absolutely
refused.

August 9:

Cablegram from Lorillard Ronalds, Milan.
Cable your oorrespondents, Banes Commerciale, Milan, Italy, to pay me
five thousand Lire. Cable reply Hotel Cavour, Milan

August 9,

Cablegram from Williams, Harvey and Co., Liverpool
.regarding Vogelstein and Co., must ask you to protect our interest,
delivering documents at such exchange as you consider necessary for
transmitting money here.

Auc:ust 91

Cablegram to American Legation, Berne, Switzerland. Signed W.J.Bryan.
Treasury will deposit tomorrow $50,000.
Yours August 5th 7: P. M.
in gold with National City Bank, New York, to your credit in Banque
Nationale Suisse. You will use the money for necessary relief and
protection American citizens, taking from each person, on behalf
of whom disbursements are made, a signed receipt, agreeing to reimburse the Treasurer of the United States for the amount, to take
the first available means of transportation to the United States,and

Miscellaneous cablegrams

-

5

Cablegram Received. Please conti
Travelers' Cheques. If London re
We agree rate 5.1250, but would a
possible.

Miscellaneous cablegrams

6

what back they can be made and with what ba
to cover credits should be arranged, such f
benefit of travelers holding American Trave
Credit. Please reply at once. We can proba
States Government, if necessary, covering go

Cablegram from Banca Commerciale Italiana, M
Could utilize only Soverigns or Napoleons sh
Cablegram from Williams Harvey, Liverpool.
Government preparing gold shipment.
Cable amounts received from National Lead Company and Vogelstein and Company Arrange
August 11:

1110

August 10:

you hold our account.

Advise us as other amounts are received.
Cablegram to Banque Frances del Rio de la Pl
August 11:
Telegraph reply to our telegram of 3rd insta
August 11:

August 12:

Cablegram from Kreditanstalt, Zurich.
Confirm Lorillard order.

August 12:

Cablegram to Schweizerische Kreditanstalt, P
Cablegram received. We confirm our cable i
garding payment to Lorillard Ronalds. Cabl
you cancelled Cramer transfer, and has paym
accordance our cablegram August fifth. Ple

August 12:

Cablegram to Lorillard Ronalds, Hotel Cavour
Cablegram received. We telegraphed funds to
through Zurich. We cabled you this effect A
funds?

August 12:

411

Cablegram from Dr. Worcester to Mr. Pomeroy.
Cable Constance Rulison two hundred do;_lars

Cablegram to Williams Harvey Company, Altca
Surrendered Cedric documents Vogelstein aga
eight hundred seventy-seven dollars. We cr

August 12:

Cablegram received by Swift & Co.,Chicago,
Banco Frances del Rio de la Plata suspended
culties Buenos Aires Branch.

Miscellaneous cablegrams.
7

410 August 12:

August 12:

Cablegram received by D. P. Kingsley, President, New York Life Insurance
Co., New York, signed Grow, dated August 11.
Your cable received today saying Washington has arranged for payment of
American Bankers checks through Ambassador Page. Your information not
correct. I have seen Ambassador, Government Officials and Bankers. Currency
famine here. Only way for us to realize is described my cable August seventh.
Have Jecretary of State cable Ambassador Page guaranteeing through Ambassador
that United States Government will repay Bank of Italy one million Lire, and
we can get that amount immediately and more later same way, if needed.
Ambassador will draw money and appoint fiscal agents such as American Express
Company or Thomas Cook and Son to disburse fund, take securities and render
account to our Government. We have twenty-five thousand dollars from
Washington now, but this is devoted to relief. We need Italian money for
Americans holding American Travellers securities. Most people here can
help themselves if my suggestion followed to the letter at once.
Cable
should be to Ambassador and read
"United States authorize Ambassador Nelson Page to draw one
million Lire from Bank of Italy and guarantees repayment to
Bank of Italy. Signed Bryan, Secretary of State."
Cablegram from Credit Suisse, Zurich.
Your cable July 30 subject Cramer not received.
order payment Sarah White.

Confirm by telegraph

August 13:

Cablegram from Credit Suisse, Zurich.
We received with delay your cable, have always continued to pay your
Travelers' Cheques."

August 13:

Cablegram from Williams Harvey, Liverpool.
Understand exchange adjusted somewhat, cable best New York rate can
transfer cable also demand ten thousand pounds."

August 13:

Cablegram from Banca Commerciale Italiana, Milan.
Our bank willing arrange for protection American Travelers' Credits in
Italy. As suggested our cable tenth, gold shipments to Italy best method.
Willing continue payments American Traveler upon authenticated advice gold
has been shipped under obligation United States Government, wire probable
amount of shipment.

August 3:

Cablegram from Wm. h. Porter, London to H. P. Davison, New York.
Been confer_nce Paris, London partners last week.
Seen cables to from you,
therefore not troubled you with cables as nothing to add. Impossible conceive situation unless in midst of it. Grenfell very active innermost
circles doing splendidly. Moratorium absolutely necessary as even richest
unable obtain cash to pay. If England ;lees war, which I fear, then
situation here cannot be imagined.
Letters Credit, Travelers Cheques, etc.,
would be of no avail. Sur Government should at once legislate if necessary
and take steps send ships or charter them here take Americans ho-e and
furnish safe transit for gold for relief Americans this side. Latter can
repay upon returning. Fred Kent arrived Sunday immediately called meeting
Americans for organization committees to do whatever may be possible.
Conferred with him but kept name out of movement for firm reasons. Are booked
Oceanic August 12th, but no certainty any English ships sailing if England
goes in. Secretary informed relatives all well. Many thanks Davison's cable
Saturday. Albert sailed on New York Friday. Love to all.

- 3 -

Cablegram sent to 3chweizerische Kreditstalt, Paradeplatz 8, Zurich.
Miscellaneous cablegrams
August 13:
"Cablegram received, cancel instructions regarding Cramer payment. Transfer
by telegraph equivalent five hundred dollars to Sarah White, 'Hotel Bellevue,
Interlaken, Switzerland. This is confirmation of our cable instructions
of August 5. Cable us when payment has been effected."
August 13:

Cablegram sent to William Harvey Company, Altcar Road, Bootle, Liverpool:
Cablegram received, there is possibility of making cable transfer at five
ten and remittance by demand draft at five hundred, telegraph instructions,
transfers would be your risk.

August 14:

Cablegram from William Harvey, Liverpool.
When can cable transfer under five, send ten thousand pounds.

August 14:

Cablegram from Banque Suisse et Francaise, Paris, dated August 13.
How will you sell cable New York against payment Paris outside moratorium?

August 3:

Cablegram from Wm. H. Porter, London, to H. P. Davison, N.Y.
(Already in book)

August 14:

Cablegram from Lorillard Ronalds, Milan.
Societe Credit Suisse have received no instructions.

Cable them again.

August 14:

Cablegram to Schweizerischer Kreditanstalt, Paradeplatz 8, Zurich.
Refer our cablegrams sixth and twelfth, please execute payment to Lorillard
Ronalds, Geneva, and cable us at once. Ronalds cables your Geneva office
claims not to have received instructions.

August 14:

Cablegram to Haskard & Company,. Florence, Italy.
We credit you one thousand dollars for use J. G. Hagemeyer, Florence.

August 14:

Cablegram from Banco Frances del Rio de la Plata, Buenos Aires, Argentina.
Cover check en route you will receive shortly.

August 14:

Cablegram to Banque Suisse Francaise, Paris
Cablegram received. Make offer value compensee moderate amount only.

August 13:

Mr. Phillips, in Mr. Franklin's office, White Star Line, says they have just
received the following cable from their Naples office:
"In presemt financial situation quite impossible for us to Delp."

August 14:

Cablegram from Banque Suisse Francaise, Paris.
Telegraph for Monday how you will sell cable New York against Paris out of
Moratorium.

August 15:

Cablegram sent by State Department, Washington, to Government's representative at LisbOn:
Muller, Schall & Co., New York are cabling equivalent of two thousand dollars
for your credit through Durnay. Please apply at once for money, cabling
confirmation of receipt to State Department. You will use this money for
necessary relief and protection destitute American citizens, taking from
each person on behalf of whom disbursements are made a signed receipt agreeing to reimburse Treasurer of the United States for the amount, to take the
first available means of transportation to the United States and giving their
permanent American address. You will submit account to Secretary of State
for all amounts so advanced, supported by receipts and securities for de-

Ltiscellaneous Cablegrams.

-9-

livery to Treasury Department rith report.
Use every precaution to guard
against imposition. Any further funds required for relief work to be
arranged by cabling direct to Ambassador Page, London, who is disbursing
fund of gold shipped by Cruiser Tennessee in cooperation with Fred. I. Kent,
';,aldorf Hotel London, Chairman London Relief Committee. If credit required
for cashing Travelers' Cheques and credits, arrange by cabling direct to
London relief committee and Ambassador Page, London, who will give instructions as to manner accounting and settlement. Please report this department amounts of advances arranged through Ambassador Page.
August 15:

Cablegram sent to Liovernment's representatives at :ladrid, Stockholm and Copenhagen by State Department, ;:ashington:United States authorities guarantee of your drafts for equivalent 4
You will use this money for necessary relief and protection American citizens, taking from each person on behalf of whom disbursements are made, a
signed receipt agreeing to reimburse Treasurer of United States for the
amount, to take the first available means of transportation tc the United
States and giving their permanent American address. You will submit account
to Secretary of state for all amounts so advanced, supported by receipts and
securities for delivery to Treasury Department with report. Iiotify consuls
and delegate authority to them to use part of this fund in your discretion,
but in strict accordance with the foregoing instructions. For better coordination direct them to address their communications regarding relief and
transportation to the Legation instead of the Department except answers to
specific instructions and reports on individuals. Use every precaution to
guard against imposition. ambassador Page London, and F.I. Kent, VIaldorf Hotel, London, Chairman London Relief Committee are in charge Disbursement of
Gold shipped by Cruiser Tennessee. Arrangements for reimbursement of above
credit also applications for further funds for relief work or to secure payment on Travelers' Cheques and credits should be made direct to London Relief Committee.

August 15: Cablegram sent by State Department to (American Embassy) Thomas Nelson page,
Rome.
You are authorized to arrange for advance by Bank of Italy of one million lire
to be expended by American Express or Cooks in cashing Travelers' Cheques
and Letters of Credit for Americans, giving guaranty of Government for repayment to Bank, The American Ambassador London will hold equivalent amount in
gold out of shipment by New York bankers to secure government for guaranty
and you are directed to arrange for delivery of an account with paid checks
and documents to him for settlement with London Committee, F.I.Kent, Waldorf
London Committee will advise you of each credit arranged
Hotel, Chairman.
by them and give details about accounting. Reimbursement of expenditures out
of twenty-five thousand credit already arranged, should be made through Ambassador Page, London, out of Government funds shipped on cruiser Tennessee.
August 15: Cablegram sent by State Department to Consul General, Naples.
You are authorized upon request of Ambassador Page, London, to arrange through
-White Star Line for a credit from Banca Commerciale Italiana of one hundred
twenty-five thousand dollars, giving Government guarantee therefor to be disbursed through agent to be appointed by London Embassy in advances to Americans on Travelers' Cheques and Letters of Credit. London Embassy will furnish
you full particulars method of handling checks and account and will hold like
Convey this cable to London
amount of gold to secure Government for guaranty.
Embassy and ask for detailed directions.

-10Miscellaneous Cable Prams.

August 14: Cablegram received by First National Bank, New York, from National Bank of
Greece, Athens.

Miscellaneous Cablegrams.

Trust Company, New York. We will credit you in dollars at four ninety-four
value compense. Telegraph if rate accaptable. Request London City Midland
Bank to cable us when funds received.

August 18: Cablegram from Grier and Gibson, Falmouth, addressed to Mr. Strong.
Gold goes to London tonight, arriving there Tuesday morning.
August 18: Cablegram sent to Williams Harvey Company, Altcar Road, Bootle, Liverpool.
We credit you eighty-five thousand dollars National Lead.
August 18: Cablegragi from American Committee. Switzerland, from Berne.
Addressed to National City Bank, Bankers Trust, Guaranty Trust, Brown Bros.
New York.
The sending of a collective telegram by New York's important banks, or the
addressing of the Banque Nationale Suisse, Berne, by the National City Bank,
will materially better the situation of Americans in all Switzerland to obtain money from Swiss banks. This cable should give assurance that the
drafts against Letters of Credit will be paid directly in New York, instead
of passing through London, against deposits of gold in New York. We recommend taking urgent steps and immediate action.

August 18: Cablegram sent to American Committee, Berne, Switzerland, signed Benj.Strong,
Jr., Chairman New York Bankers' Committee, representing institutions addressed and others.
Answering your cablegram National City Bank,Bankers Trust, Guaranty Trust,
Brown Bros. (stop) Understand London Committee arranged credit twenty
thousand pounds sterling with Swiss Bankverein for cashing Travelers'
Cheques. United States Government deposited fifty thousand dollars gold
with National City Bank for credit Banque Nationale Suisse for similar purpose. Does your cable just received mean that additional credits are required against guarantee of repayment in gold in New York and is so how much.
August 19: Cablegram from National Bank Greece, Athens.
Credited you fifty thousand sterling with London City Midland Bank, London.
Please open dollar account best rate.
August 19: Cablegrag: sent to Danske Landmandsbank, Copenhagen.
Please endeavor send following message Deutsche Bank, 3erlin.
Mr. Converse hears nothing from his datghter, Baroness von Romberg, Wiesbaden,
would appreciate report if all right and supplied with money. Any assistance
you can give to get this message through will be greatly appreciated.

Auguat 19: Cablegram received by Blyth & Bonner, New York, from Banca Comgerciale Italiana,
Genoa:

Send immediately following circular clients receiving heretofore exchange offers.
Banca Commerciale Italiana Genoa informs royal decree August fourth establishes
old credit balances payable by Italian banks only up to give per cent. for period
fourth to twentieth August. New royal decree sixteenth authorizes payment further
the ten percent. from August twentieth to September thirtieth. New amounts entered after August fourth payable integrally. Having for solidarity's sake
agreed with other banks to carry out decree, regret being obliged stick to its
clauses. Will,execute payments against old funds within above stated limits
of: integrally against new funds entered after August fourth here or with our
London branch instructed to pay Americans stranded in Italy against American
letters credit and travelers cheques reasonable amouhts daily expenes and return tickets.

-12::iscellaneous Cablegrams

August 20: Cablegram from Gibson, London.
Special payments your clients all arranged.
August 20: Cablegram to Haskard & Company, Florence, Italy.
We credit you two thousand dollars for use of Georgette Brown.
August 20: Cablegram to Hope & Co., Amsterdam.
Charge our a/c and pay Adele Lee Adams, care Amsterdamsche Bank two hundred thirty
eight guilders, confirm payment by cable.
August 20: Cablegram to Hope & company, Amsterdam.
Endeavor to cable the following to Direction der Disconto-Gesellschaft, Berlin.
Renew Documentary Credit number 273 for three hundred thousand marks and extend
credit to cover August shipments impossible to cable you direct. Telegraph us
if Kalisyndikat can make shipments in August, also total amount paid to Kalisyndikat since your last debit of July 18th, also telegraph amount of our balance
and at what rate z'ou can credit us in Marks against dollars here, dupliciting
this message by wireless and Copenhagen. End of : message. Thank you heartily
your cooperation.
August 20: Cablegram to Danske Landmandsbank, Copenhagen.
Endeavor to cable the following to Direction der Disconto- Gesellschaft, Berlin,l
Renew documentary credit number 273 for thret hundred thousand marks and extend
credit to cover August shipments, impossible to cable you direct, telegraph us
is Kalisyndikat can make shipments in August, also total amount paid to Kalisyndikat since your last debit of July 18th, also telegraph amount of our balance
and at what rate you can credit us in Marks against dollars here, duplicating
this message by wireless and via Amsterdam. End of message. Thank you heartily
your cooperation.
August 20: Cablegram from Haskard, Florence.
Cable if received two thousand Madare Brown.
August 20: Cablegram from Banca Commerciale Italiana, London, through Blyth & Bonner.

Prepared to make cable transfers for stranded Americans Italy against Payment
London.

August 20: Advised by C. A. Stern & Co., New York.
The Credito Italiano Lilian are buyers of Cable London against at.iwbat.i.a lire,
Cable Paris (Payments to bank of France) against Lire at best in lire, upon
actual receipt of cable advice of payment. For quotation only, not binding;
cable London ag. lire 26.50, cable Paris ag. Lire 105. For information:
Actual entries made after August 4 are not subject to the moratorium in Italy.
August 20: Advised by C. A. Stern & Co., New York.
The Credito Italiano beg to announce that the Italian Moratorium limits Banks
liability reimbursing funds due prior August 4th to 55 up to August 20,
up
to September 10, 5 up to September 30. Balances matured or funds deposited
after August 4 fully reimbursed.
August 21: Cablegram sent to William Harvey Co., Altcar Road, Liverpool.
Remitting London your account by tomorrow's mail proceeds Vogelstein collections.
Can cable small amount Sterling around 506 but would advise waiting until Sept-

-13:-iscellaneous Cablegrams

August 21: Cablegram from Privatbanks, Kjobenhavn, Denmark.
Documents 177669 marks Steamer Zaandyk to Charleston against credit 273 presented
today, telegraph us if Discontogesellschaft may honor same.
August 22: Cablegram to Privatbank, Kjobenhavn, Denmark.
Cablegram received, request Discontogesellschaft honor Zaandyk shipment against
proper sllipping documents. We cabled Landmandsbank Copenhagen Thfirsday evening
regarding extension documentary credit 273 please communicate Landmandsmark and
Thanks heartiascertain if they telegraphed particulars to Discontogesellschaft.
ly your cooperation.

August 22: Cablegram to Haskard and Company, Florence, Italy.
We credit you five hundred dollars received from Kidder, Peabody Boston.
August 22: Cablegram to Banos Commerciale Italiana, ;.:flan Italy.
If we arrange to have lira deposits made with you our credit can we draw against
sane in full under terms of moratorium.

August 22: Cablegram from Banco i'rances del Rio de la Pata, Buenos Aires.
Stop all operations for our account. Have suspended payments August 12th.
Cablegram from Banque Suisse Francaise, Paris.
(August 22)
How will you sell cable Yew York against Paris, outside moratorium.

August 22: Cablegram from Societe (de) Credit Suisse, Luzern.
Your letter 3d August received this morning;contents noted.

August 24: Cablegram to Hope f; Company, Amsterdam.
Your letter twelfth received, please pay Travelers' Cheques mentioned.

August 24: Cablegram to Swiss Bankverein, London.
Received Two hundred fifty thousand Dollars for your credit.

August 2L: Cabler-ram from Haskard & Co. Florence.
Fay Banco Napoli New York balance leus thousand dollars credited by cable
our account Banco rapoli Florence intra. (signed) "Haukard"
August 24: Cable-r,im to Haskard S Co. Florence.
Your cablegram unintelligible,please rep.at instructions more clearly,
test word wrong.
.

August 24: Cablegram from Swiss Bankverein, London.
As arranger 7rith pent are paying you two hundred fifty thousand dollars
through Hanover National Bank, Credit our account, please cable
receipt.

August 24: Cablegram to Hope & Company, Amsterdam.
Can we arrange have funds deposited with you against which we
can draw i mediately such funds not to be subject any moratorium answer is,ffnediately, with authenticate our cable messages authorizing payments by control words using names our directors consecutive
order, cable understood.

August 246ablegram to de Keuflize & Company, Paris.
Your letter tenth received and instructions noted.

August 24: Cablegram from Privatbanken, Kjobenhavn.
Landmandsbaak say no cable such contents received.

Cable ram to 3anque Suisse Francalse, Paris.
-14Miscellaneous Cablegrams received, will sell cable New York against cable 2aris outside
Cablegram
moratorium value compense, five twelve one half, limit Ten thousand
August 25: Cablegram toaccepted Landmandsbank, Copenhagen.
Dollars Danske make payment francs :,:organ Harjes for credit our
Endeavor to und,r cableadvice. to Direction der Disconto-Gesellschaft
account cable the following
Berlin; renew documentary credit number two seventythree for :Three
Hundred Thousand Marks and: eaten. credit toAltcar Road, Liverpool.
:arvey Company, cover August shipments,
s
Cablegram to
August 25:
impossible to you twenty direct. Telcgra-Al us if ralisyndikat can make
cable you thousand dollars rational Lead.
Crediting
shipments in August, also total amount paid to Ealisyndikat since your
Cablegram to Banca Commerciale Italiana, Milan.
last debit to our eighteenth transfer by telegraph forty balance lire
August 26: Charge of Julyaccount and also telegraph amount of ourthousand and to Haskard
at what rat you can credit you in marks against dollars here, duplicatand Company, Florence, us will receive one hundred thousand lire for our cred
ing this message by wireless and via Amsterdam. :nd of message. Thank number 71.
it via Rome, account Texas Company.
Telegraph when received. Test
you heartily your cooperation. Did you receive this message before on
August twentieth. Milan. Banca Commerciale Italiana.
August 27:
Cablegram to
Charge our account and transfer by telegraph five thousand lire to your
August 25th:Cablegram from Hope & Company, Amsterdam.
Palermo office for use of Prince Belmonte, test number 72.
No moratorium declared here and unless political difficulties arise,
not Cablegram to Valparaiso. Banco de Chile.
August 26: very probable, however, should moratorium be declared, we might be
compelled to adheia. to any regulations possibly on ourselves, drawn in dollars
We are issuing Commercial Letters of Credit to be adopted by
,,msterdarn bankers. With this reserve Chilean shippers. Believe it would be our
and sterling, such credits favor understood.
mutual advantage your opening account with us in dollars, would be pleased
August 25:
look after your American interests and accept deposits for your credit and
allow three per cent. interest on credit balances. If conditiOns permit
would consider taking reasonable amount acceptances first class New York
Augast 25:
reimbursements for discount.
,

August 27:
lc,,*44.(kietT,
eeutet,

August 25:
August 25:

Cablegram from Valparaiso.

Banco de Chile.

Sincere thanks for kind offer but momentarily without interest for us.
Cablegram from Haskard and Company, Florence.
Remit by cable eight thousand dollars irpoz.

Liscellaneoue Cablegrams.

August 25:

-15-

Cablegram to Paris. Banque Suisse et Francaise.
Cablegram received, will sell cable New York against cable Paris outside
moratorium, value compense, five twelve one half, limit ten thousand dollars, if accepted make payment francs :organ, Harjes for credit our account

-16-

Miscellaneous Cablegrams

credit, we will credit you four ninety five per dollar, executing there against
all payments Switzerland without any charge cable.
Banco Frances del rio de la Plata.
Have cancelled the credit opened in favor of Frigorifico. Nothing transit.

411August 29: Cablegram from Montevideo.

Banco Frances del rio de la Plata.
August 29: Cablegram to Buenos Aires.
Referri4g to your telegram of 22d instant, have received your advices dated
July 22, July 23, July 24. Telegraph if we should pay drafts which are being
presented now. Telegraph full instructions at once.
August 31: Cablegram to Paris. Banque Suisse et Francaise.
Will buy cable London against New York 505, limit ten thousand pounds. Pay
London City Midland Bank for our credit, they to cable us, we credit you on
receipt their cable. Rush answer. Paris, regret.
August 29:

August 31:

PRESS

ANNOUNCEMENT

August 9/10, 1914

The New York Committee of bankers in charge of the relief fund for
American tourists detained in Europe, have announced that contributions to the
fund so far have been received from the following:
Original contributors:
J.P.Morgan & Co.,
Brown Bros. & Co.,
Kidder, Peabody &
First National Bank,
National City Bank,
National Bark of Commerce,
Bankers Trust Company,
Guaranty Trust Company,
American Express Company,
Farmers Loan & Trust Company.

Additional contributors:
Blair & Co.,
Chase National Bank,
Chemical National Bank,
Citizens Savings & Trust Co.,Cleveland,
Columbia Trust Co.,
Continental & Commercial National Bank,Chicago,
Corn Exchange Bank,
Equitable Trust Co.,
First National Bank, Boston,
First National Bank, Chicago,

-2lessage to the Secretary of the Treasury from Benjamin Strong, Jr. - continued -

He can arrange at once tofund shipment. onThe hotelscredits againstdoinggovernment advancall good in London are the wonders in
or general bank make payment
ing credit but have reached their limit. Necessary that he should have London
Committee of bankers give assuranof_ to hotels that credits honored by them will
be paid according to London method when decided upon, such credit at present
only being used by board.
It is his idea that the various London bankers on
whom credits are drawn should make out the drafts in the regular manner, but to
the order of the hotels which take them In settlement for bills.
The banks will
then certify such checks and the hotels will thereby be assured that they can deposit them when cover is provided,
This will divide the work among the banks
properly and prevent any distribution of cash for boarding (this word may have
been intended for hoarding) and will at once allow payment of cash in small amounts
Quoting from cable he says:
"Government gold would only be held pending ultimate collection good credit
and government would receive certified paper referred to as collateral from banks
in meantime."

He also says that people have about exhausted their resources and must have
relief at once.
are having some delay in exchange of cables, by reason of
the censorship which we are asking the State Department to endeavor to eliminate
by instruction cable to Ambassador Pace.
.;ie would appreciate Secretary lIcAdoo's
cooperation.

I am in receipt of definite advice from the London City and Midland Bank, our
bank correspondent in London, that they have released to
Kent, seven hundred
thousand dollars of gold which I advised Secretary LIOAdoo and Secretary Bryan on
Monday last we would endeavor to place at the disposal of the government, and I
assume that
Kent has met the emergency in London by the use of considerable
part of this gold in advance of its arrival, and of the arrival of the gold shippe
on the Tennessee by the Government. It is quite possible that this gold has been
used to complete the credit of three hundred thousand dollars which
Kent arranged for ambassador page.
I am, therefore, sending jr. Kent the following
cable:

"Government shipping million half gold on Tennessee. Understand will be
disbursed in cooperation with your committee by officers in charge.
This includes the three hundred thousand made available to Ambassador Page by State
Department. Wire immediately if further instructions on that matter are required.
Hope everything now in mod shape."
In order that reimbursements may be effected, either to --Ir. Kent or to our
London banks, to whom the gold was consigned, it will be necessary for the State
Department to cable explicit instructions to Ambassador Page and convoy instructions to the representatives of the Government in charge of the Goverment gold
shipped by Tennessee to apply so much of the million, five hundred thousand dollars of the Tennessee gold to the repayment of whatever amount was used out of
the seven hundred thousand dollars of gold placed at the disposal of the a'overnment, pending arrival of Tennessee.

41/

I am this morning advised that the arrangements for the disbursement of the
credit arranged aith the Bank of France, through J. P. Morgan & Company and Morgan
Harjes & Company are substantially completed. The money is already being disbursed and details in respect of the method of effecting disbursements at Paris
will be conveyed to Secretary HcAdoo just as soon as they are completed.

-3Nessage to the Secretary of the Treasury from Benjamin `strong, Jr., - Continued -

I believe it is exceedingly important that instructions be conveyed to
those in charge of the gold shipped by the Government on the Tennessee, informing
them that the London and Paris arrangement which was in course of completion when
the Tennssee sailed, will be perfected and in complete operation by the time of
their arrival and further instructing them to take advantage of this machinery
and cooperate with the London and Paris committee.
At our meeting in ':ashington Monday night I asked the Secretary of State if
arrangements could not be made to furnish the Commander of the Tennessee with
credentials issued by the embassies of the various foreign governments with reWhile we
spect to whom any question of belligerency or contraband might arise.
in New York regard the possibility of difficulty on this score as very remote,
we do feel that it must be covered. LLight no+ this be done by wireless comunication if it was not covered before the cruiser sailed?

BENJALIIN STRONG, Jr.

PRELIL MARY

IMMORANDILI

The Gold Fund above mentioned is to con

and, in first aggregate amount contributed has bee

a first installment of 0,000,000. to be shipped i
U. S. S. "Tennessee".

Such Fund has been created

through a participation therein by the undersigned
the Ten Original Contributors.

Such Fund, whethe

tributions of the Ten Original Contributors or fro

additional contributors, is to constitute a single

cashing travelers' credits issued by American inst
tourists.

The entire administration of such fund

transmission, delivery and distribution thereof, ha

Committee, which is to have plenary power in the pr
as at present constituted, being:

Benjamin Strang, J
J. P. Morgan,
James Brown,

William L. Benedic
A. J. Hemphill,
George C. Taylor,

Charles D. Norton,
C. R. Agnew,

GOLD FUND RE TRAVELERS' CREDITS ISSUED

James S. Alexander

Any and all cnntributnrs to the Fund, including
the Ten Original Contributors and any additional contributors,
release the Cnmmittee from any liability in the administration,
transmission, delivery, distribution and return of the Fund.
Nn contributor assumes any risk other than that attaching tel its nr their cnntribution.
The cnntribators assume
no relation of partnership among themselves and are not to be
deemed partners for any purpose.
It is understood that any expenses of the administratinn of the Fund, not reimbursed to the Cnmmittee, will be
shared pro rata by the Ten Original Contributors.
Dated, August 6, 1914.
(Sgd)
It

J. P. Morgan & Co.

Brown Brothers & Co.
Kidder, Peabody & Co.

Tt

FIRST NATIONAL BANK
By (Sgd) C. D.Back,is, Cashier

NATIONAL BANK OF COUV7RCE,
By (Sgd) J. S. Alexander,Pt.
NATIONAL CITY BANK
By (Sgd) John E. Gardin, V.P.

BANKERS TRUST COMPANY
By (Sgd) Benj. Strnng,Jr., Pt.

GUARANTY TRUST COMPANY
By (Sgd) A. J. Hemphill, Pt.

FARMERS LOAN & TRUST COMPANY
By (Sgd) C. R. Agnew, Vice Pres.
AMERICAN EXPRESS COMPANY

LIELIORANDUM

For
21R. STRONG

-2Ilemo. for 1.1r. Strong regarding shipment of currency - 4;1500,000.

Bankers Trust Company,
16 Wall Street, New York

-continued-

Sacramento, Calif.,
August 12, 1914.

Reply your wire tenth ship tomorrow registered mail insurance deduct expense from
interest credit inclosing statement with your cashiers check for interest explanation entirely satisfactory.
E. D. ROBERTS, State Treasurer.

August 12, 1914.

E. D. Roberts, Esq.,
State Treasurer,
Sacramento, Calif
Telegram received. :Jr. Strong desires me to thank you personally for your cooperation
and understanding of the situation. Currency will be shipped tomorrow.
G.':.. BENTON, Treasurer.

AMERICAN

EXPRESS
TREASURER'S

OFFICE

New

Broadway,

65

COMPANY
York.

July 31,,1914.

I

M

P

0

R

T ANT

Owing to the political conditions in Europe and to the
closing of the foreign exchange markets, we regret that it
is impossible for us to authorize our Agents and Bank
correspondents to continue to draw exchange for our account.
We have stopped quoting rates for exchange - Cables,
Drafts and Postal Remittances - until further notice.

AMICAN EXPRESS
JAS.

F.

COMTANY

FARGO,

Treasurer.

KNAUTH - NACHOD

&

KUBVE

INTERNATIONAL BANKERS

New York, August 6, 1914.

TROELERS1

To Messrs.

CHECKS,

Our Correspondents:

Gentlemen:-

In further reference to our circulars of

August 1st, and 4th, please take note that we have finally
decided to request our correspondents not to issue Travelers'
Checks either for use in this country or abroad until further
notice.

Kindly be guided accordingly, and oblige
Yours very truly,
(signed) Knauth-Nachod & Kuhne.

D. S., Jr.

MEMORANDA

MEMORANDA
for
Aix'. Schmid.

August 8, 1914.

Better consider whether it may not be desirable to send out

a letter similar to the Express Company's, to all the barkR selling cheques, in order to reassure their clients.

B. S., Jr.

AMERICAN EXPRESS COMPANY
Treasurer's Office
65 Broadway
New York

AUG' 6, 1914.

To Agents and Banks Selling Travelers' Cheques:

In order to relieve any anxiety on the part of relatives
al,d friends of holders of American Express Company Travelers'

Cheques and Letters of Credit, the Company begs to state that cable

advices from our European offices are to the effect that Americans
are experiencing no difficulty in securing funds, either on Company's
Travelers' Cheques or Letters of Credit.
All our European offices are still open and doing business
in the usual way, and every possible assistance is being given our
clients.

Yours truly,

JAWS F. FARGO,

Treasurer.

(Draft of Letter to be addressed to concerns issuing letters of
credit, but who do not become contributors to the Fund.)
Gentlemen:-

A fund of 45,117,000. in gold is being shipped on
the U. S. warship "Tennessee" for use in London and possibly other
foreign points, to relieve the necessities of American tourists
abroad, through advances made from such Fund against travelers'
credits issued by any American banks, bankers, express companies
and other institutions held by each tourists.
Such fund of :5,117,000. has been contributed in the
first instance by the following ten New York banks or bankers:

Messrs. J. P. Morgan & Company
Messrs. Brown Brothers & Company
Messrs. Kidder, Peabody & Company
First National bank
National Bank of Commerce
National City Bank
Guaranty Trust Company
Farmers Loan & Trust Company
Bankers Trust Company
American Express Company
Such Fund will not be increased, bat the terms under which such
Fund was created permit additional contributors to be admitted
from time to time, subject to the arrangements made by the Original
Contributors.
To the extent of each additional contributions the
contributions of the ten Original Contributors will be reduced pro
rata, and to the extent of any such redaction the Original Contributors will be reimbursed from such additional contributions.
The administration of such fund is vested in a committee, consisting
of one representative from each of such ten Original Contributors,
which committee has full power with respect to any and all transactions affecting the administration and disposition of the 2und.
It is purposed to consign such Fund to fiscal agents
of the Fund in London, namely, Guaranty Trust Company, Morgan,
Grenfell & Company, and Brown, Shipley & Company, nr any of them.
The fiscal agents of the Fund in Paris will be Morgan, Harjes &
Company and the American Express Company.
The travelers' credits as to which payments from the
Fund will be made are not limited to those in which the ten
Original Contributors or any additional contributors may be interested, but include any and all travelers' credits issued by any
responsible American banes, banker, express company nr other institution.
Such travelers' credits will participate in the Fund
in substantially the following manner, ( subject to such modifications of detail as may be made by the Committee).

Both with respect to letters of credit and travelers'
nr anyone designated for them)
checks a responsible committee,
appointed by tourists to act, is to decide the amount of accommodation to be rendered from the Fund for each individual tourist,
after investigation of the immediate needs of the particular case.
(

LETTERS of CREDIT
As to letters of credit.The holder of each letter of credit must satisfy the
fiscal agent as to the validity of the letter and the genuineness
of his signature, by first obtaining notation of approval thereon of
the London drawee specified in the letter of credit. Thereupon the
holder will draw a draft to the amount of the accommodation in favor
of the fiscal agent of the Fund, upon the London drawee, who will
thereupon stamp the draft payable by the drawer (issuer) of the
credit in America, in New York City funds, at New York City.
The face amount of such draft will then be paid in
sterling to the holder of the letter of credit by the fiscal agent,
at the fixed rate of exchange of X4.90 in the pound sterling.
The
holder of such letter of credit will be required also, through some
signed statement, ( form of which is to be hereafter determined),
appearing upon the draft, to agree to reimburse the drawer of the
credit the pro rata charge (later on to be determined on an accounting), of the expenses of the fund as to such draft.
Thereupon the draft will be forwarded by the fiscal
agent to the New York City fiscal agent (Bankers Trust Company) for
collection.
TRAVELERS' CHECKS.

As to travelers' checks,-

Upon the usual identification of signature and countersignature, travelers' checks will be paid by the fiscal agent in
sterling, at the rate of p:1.90 in the pound. The checks will thereupon be remitted to the New York City fiscal agent of the fund,
(Bankers Trust Company) for presentation to and reimbursement by the
issuing bank, banker, express company or ether institution.
The expenses of the administration of the fund, including interest, insurance, loss on exchange and miscellaneous, are to
be met as follows:Accounting will be had of all the transactions to the
fund and the expenses will be pro rated according to the amounts
of payment involved against the banks, bankers, express companies
or other institutions which issued the travelers' credits, against
which such payments were made.

The Committee however does not reserve the right to
any such payments
exclude from the travelers' credits as t^
are to be made from the fund, travelers' credits issued by American
banks, bankers, express companies or other institatinns who will
not agree to reimburse the fund for the pro rata share of expenses sn
to be dete_mined on sach accounting in respect of the travelers'
credits issued by such bank, banker, express company or other institution.
777

The Committee acquaints you with the foregoing so that
if you have any outstanding travelers' credits and desire that the
same shall be among the travelers' credits against which payments
shall be made from the fund, will you advise the depositary of the
Committee, Bankers Trust Company, 16 Wall Street, New York City, of
your willingness, if so disposed, to bear your pro rata share of the
expense of the fund, sn to be determined in respect7TPayments
made from the fund in respect of travelers' credits issued by yourselves.

We call your attention to the provision of the arrangements under which the Committee act, as agreed to by the ten Original
Contributors, as follows:
"Each contributor (original or additional) appoints the
Committee, in respect of all transactions affecting the Fund, in the
interest of each contributor in the Fund, its or their agent and
attorney in fact, with plenary power to act as though it were the
sole owner thereof,
affecting the fund and the administration and disposition of it, and
any interest of any contributor therein, with full power to appoint
sub-committees, agents, sub-agents, attorneys, fiscal agents and
depositaries to act on behalf of the Committee, in, and to whom the
Committee may delegate, any and all matters and transactions relating
to, and any disposition of, the Fund."

BANKERS TRUST COMPANY
16 Wall St.

August 7, 1914.

Dear Sir:-

I beg to quote the following from cable instructions
sent to Mr. Kent last night:
"Committee sending written instructions in duplicate
London City & Midland, Lnndnn, to place gold at disposal of
your London Committee increased by adding representatives
nominated by Morgan Grenfell, Brown Shipley, Baring Bros.,
Guaranty Trust Company of New Ynrk, London, American Express,
also Henry King Smith representing Farmers Loan & Trust and
L. M. Jacobs representing National City all in London with
yourself representing Bankers Trust Company."
In order that the gold shipped yesterday may be made
immediately available it will be necessary for you to send a
cable, advising your London representative of this arrangement
and instructing that they co- operate immediately with Mr. Kent
in respect of this appointment.
Will you not, therefore, arrange to have this cable
sent at the earliest moment practicable in order that there may
be no delay on the other side.
Very truly yours,

President
S-W

Similar letter sent to the following:

C. R. Agnew, Esq., Vice-President, iarmers
Loan & Trust Co., N. Y.
John E. Gardin, Vice-President, National
City Bank,N. Y.
J. P. Morgan & Co.
Brown Bros. & Co.
Kidder Peabody & Co.
Guaranty Trust Co.,of N.Y., A.J. Hemphill,Pres.
American Express Co.

RECEIVED in apparent

million
said to contain three
board U. 3. 3.

Kegs
good order sixty (60)

coin on
dollars U. S. Gold

"Tennessee".

(signed)

A. R. Jones,

(signed)

H. D. Gibson,

(signed)

J. P. Grier,

(signed)

Eliot Tuckerman,

(signed)

Henry W. Lewis.

BANKERS TRUST COMPANY.
New York, August 6, 1914.

GOLD FUND CONTRIBUTED RE
AMERICAN TRAVELERS' CREiiITS AND CHEQUES.

London City and Midland Bank,
London, England.

Dear airs:Messrs. J. P. Morgan & Company, Kidder, Peabody & Company,
Brown Brothers & Company, First National Bank, National City Bank,
National Bank of Commerce, Bankers Trust Company, Guaranty Trust
Company of New York, Farmers Loan & Trust Company, American Express
Company have contributed to a gold fund, of which 03,000,000. has
this day been shipped from New York by United States Armored Cruiser
"Tennessee", which 03,030,000. will be delivered to your custody by
the agents of such shippers, Messrs. John P. Grier, Henry W. Lewis,
Arthur 2. Jones, Eliot Tuckerman and Harvey D. Gibson, or their
survivors.
You will please accept custody of such 03,000,000 gold and
hold it at the disposal of the London Committee representing the
Committee below mentioned, which London Committee must include as
members a representative from Messrs. Morgan, Grenfell & Company,
from Brown, Shipley & Company, from Baring Brothers & Company, from
Guaranty Trust Company of New York ( maintaining a branch in the
Jit-: of London), and from American Exnress Company. Such London
Committee must also include Henry King Smith as representing The
Farmers Loan & Trust Company, Fred I. Kent as representing Bankers
Jacobs as representing National City
Trust Company and Lawrence
Bank (of New York).
Yours very truly,

(signed) Benj. Strong, Jr.,

Chairman of Committee of Ten
Oriclmal Contributors above named.

BANKERS TRUST COLTANY.

411

New York, August 6, 1914,

On Gold Coin or Bullion

All risks but excluding War as per margin

At and from New York to London or Liverpool

26 Exchange Place,

BANKI.RS TITiST 0 OLLPA

16

Street.

;Tow York, August 6, 1914.
.1.V
Captain C. E. Decker, U.

U. S. Amored Cruiser "Tennessee "

s. John P. Grier, Henry W. Lewis, Arthur

Jones,

and Harvey D. :ibson and the Survivors of them

tituted, appointed and accre)ited agents of

Company, Kidder, Peabody & Company , Brown Brothers

t 7ational Bank, National City Bank, Hational Bank

nkers Trust Company, Caranty Trust Company, Farmers

mpany and American Express Company, shippers of

ntaining gold by United states Armored Cruiser

aving the port of Hew York on August 6, 1914, to

ept delivery of such gold from the Commander of

uiser "Tennessee".

ier.

E,':711-11S 72:=2 COMPANY,

ewis

By (sgd) Benj. Strong, Jr. Pt.

Jones

kerman
"Abson

(Copy of receipt given in two counterparts
by U. S. Government.)

UNITED

STATES

SUB

TREASURY

N

RECEIVED from Bankers Trust Co
of Messrs. J. P. Morgan & Company,
Company, First National Bank, Natio
Trust Company, Guaranty Trust Compa
Express Company, (hereinafter calle
coin of the value of 4i;3,000,000.,
B T C - #1 to 40, incl
D E
B T C - #41 to 60, inc

D E
E" representing "double eagles".

The kegs so received and so ma
Government on board U. S. armored c
August 6, 1914, and to be delivered
accredited agent or agents of said
received from Bankers Trust Company
proper; said agent or agents to pre
Company.

111

The receipt evide4ced hereby i
delivery will be made except upon s
Commander of said armored cruiser "
counterpart the other counterpart s
not be delivered in one single lot,
livered unless one counterpart is p
livered is endorsed upon the counte
said "Tennessee" by the agent recei
setting forth the delivery of such

marine insurance covering ordi
is to be effected to cover the valu
in whole or in part, in the name o
States. If said insurance covers s
Government is to be released by the
of that part of the value not cover
shall be so effected in the name of
States, he shall hold said insuranc
whom said shipment is received.

S

Cannot answer
"Your answer six seven received.
your message six until we receive from you
New York Committee
answer our message eleven.
desire avoid criticism gold shipment being used
for exchange purpose by distribution among original contributors and subsequent contributors as
shipment intended for all responsible American
MINUTES of the meeting of the Gold Fund Committee and cheques. office of also
travelers' credits held at the Committee
want full detailed information regarding manner
and procedure of disbursements made by London
"Message 13"

41

-2-

Committee and how advanoes arranged prior
arrival gold are being covered, also are
vouchers surrendered to London Committee
against payments from gold fund and sent
here or being held London Committee to be forwarded later.
Cannot understand if plane as
outlined in previous cables were followed, how
you can have amount mentioned still available.
please mail for benefit committee itemized
statement of all disbursements and cable brief
summary. Rush."

- 2 -

GOLD FUND FOR USE IN CASHING AMERICAN
TRAVELERS' CREDITS HELD BY
TOURISTS ABROAD
o0o

2

since the last meeting of the Committee with reference to the shipment of the

4,000,000. gold by the "Tennessee", and the insurance of such shipment, and
the issue of temporary certificates of contribution, both original and additional.
The issue of such temporary certificates of contribution was approved.

A form of permanent certificate of original contribution and a form
of certificate of additional contribution were submitted to the meeting, and on
motion duly made, seconded and carried, it was
UNANIMOUSLY VOTED, that such forms be adopted by the Committee, and
Bankers Trust Company, as Depositary, was authorized and directed to issue permanent
certificates in such forms to the Contributors, both Original and Additional, upon
the surrender of temporary certificates already issued, which the Bankers Trust
Company was directed to call in.
tribution are as follows:

The formsof such permanent certificates of con-

- 3 -

-4 Discussion was had as to the procedure

account of the Gold Fund J. P. Morgan & Company, i

Gold Fund the ,3,000,000. credit in Paris with Uor
It was

UNANIMOUJLY VOTED, to postpone action w
a later meeting.
The Committee

UNAMOUSLY VOTED, to authorize Bankers

to advance for account of the Committee such expe

connection with transactions incident to the curre
detailed accounts of such expenses to be rendered
to time.

LIMES of a meeting of the General Committee held at

-2-

to secure reimbursement in Lew York fund, payable in New 'York City,
411

for all amounts of the fund used in cashing Travelers' Credits.

Mr. Morgan announced that he expected to have established a
gold credit with his Paris firm, Messrs. Morgan, Harjes & Company, in
the amount of 46,000,000. and that he was willing to set aside for
the purposes of the Fund, 43,000,000. of such 46,000,000. gold credit,
if the Ten Original Contributors to the Fund would be willing to become contributors to such 46,000,000. on the same basis on which
they had contributed to the Fund to be sent to London.

All the

members of the Committee on behalf of the institutions represented by
them, accepted Mr. Morgan's offer.

The Chairman outlined to the Committee the Special
Committee's recommendations covering rates of exchange to be followed
in cashing travellers' credits from the fund, and method for reimburse411

ment to the fund for expenses to be incurred, etc., (all as set
forth in the minutes of such Special Committee), which such Committee
had agreed upon at their meetings, held August 5, 1914, and such recommendations were approved.

The Chairman announced that insurance as yet had not been
effected, but the underwriters were in conference endeavoring to
arrange for at least 43,000,000. insurance.
The Committee authorized Messrs. Taylor, Harrison and Fay
to confer with the Sub-treasury and formulate a receipt to be given
by the Government against the gold to be shipped via the "Tennessee".
The Committee agreed that the shipment going via the
"Tennessee" should be sent to the London City and Midland Bank, Ltd.,
London, to be placed in its custody, to be held by such Bank at the
disposal of the London Committee above mentioned.

-3-

The Chairman stated that the Government officials had

-4-

make a freight charge for transporting the gold shipped on account
110

of the fund by the "Tennessee", and that he was surprised at such
proposition in view of the entire failure of the Government previously to mention any such charge.

The Chairman mentioned that he had been conferring with
government officials since Lionday evening (August 3); that at

Washington on that evening he had informed them of the 000,000. gold
shipment made by the Bankers Trust Company then in transit; that kr.
Kent in London had been insistent to obtain for immediate use
300,000. for relief; that the Bankers Trust Company was willing to
divert from commercial uses to relief uses i300,000., so asked for

by kr. Kent, out of the 000,000. shipment; such i300,000. to be
reimbursed from the then proposed government appropriation for
relief use.
410

The Chairman stated at all conferences, whether held at
Washington or over the telephone, and in all correspondence, the
relief character of the fund had been brought to the government's
attention.

The CoMmittee voted to acquiesce in the Government's present
intention to make a freight charge, but with the purpose to bring all
the facts to the Government's attention, showing the propriety of
remitting such freight charge.
A form of preliminary memorandum outlining the control of
the fund by the Committee and the limitations of the risks assumed by
the Ten Original Contributors, was thereupon executed by all members
of the Committee on behalf of the institutions respectively represented, constituting the Ten Original Contributors.
The original of such memorandum was ordered filed with the
Chairman.

-5-

It was understood that counsel should formulate, in reason-

able detail, a statement of the Plan relating to the fund, setting
forth the powers and authority of the Committee in the receipt,
transmission and disposition of the fund, to all the terms of which
the certificates evidencing contributions to the fund should state
that all contributions (whether original or additional) should be
sub ject.

The Cominittee was informed that the situation still required

an actual shipment to London, it still being impossible to establish
by cable a gold credit in London against an offsetting gold credit
set up in New York.

The Chairman thereupon stated that everything was in
readiness to effect the "Tennessee" shipment.
On motion the meeting then adjourned.

LIEUTE6 of a meeting held Wednesday, August 5, 1914, of

-2-

pound bterling (the rate already fixed on Travellers' Cheques)
in order that both Cheques and Letters of Credit be put upon
parity.

The Special Committee agreed to recommend that
the expenses incurred in the administration of the Gold Fund
should be covered as follows:
FIRST: Upon the drafts drawn against the Letters
of Credit by the holders thereof, the drawers of such
drafts should be asked on receipt of accommodation,
to agree by notation upon the drafts to pay the expenses
incurred by the Fund in cashing such drafts, in the proportion in which the amount paid on such drafts should
bear to the total amount of payments from the Fund
against Travellers' Credits; but irrespective of whether
or not the holders of such Letters of Credit should so
agree, the institutions, (contributors to the fund),
should pay the expense incurred by the fund in cashing
such drafts in like proportions, and institutions not
contributors to the fund should be invited to pay the
expenses incurred in cashing their drafts in like
proportions.
SEC011: institutions issuing Travellers' Cheques
who are at the same time contributors to the fund,
shall reimburse the fund for the expense incurred in
connection with cashing their Travellers' Cheques by payments from the fund. issuers of Travellers' Cheques (not
contributors) will be invited to reimburse in same way
such expense as to their cheques.
THIRD: in so far as the fund shall not be so
reimbursed as provided in "First" and "Second", the
contributors shall be charged with the deficit so resulting pro rata to their respective contributions.

Report was submitted to the Committee of the progress made
in obtaining insurance and the Special Committee recommended that no
shipment should be made of any part of the fund by the United States
Steamship "Tennessee" unless the entire value of the shipment was
covered by all marine risks, exclusive of war risks.
The meeting of the Special Committee thereupon adjourned.

GOLD FU1D CONTRIBUTED FOR USE iN CASHING TRAVELERS'
CREDITS ISSUED BY ALERICAN INSTITUTIONS ArD BANYERS,

-2-

prepared to go in pro rata on the basis of a contribution of

-3-

put in charge of such shipment would be the latter directionBarney 83 Co.,
Henry Gee and bar. John Grier, under the of O. D. of La..

and Ir. Taylor's statement in that respect was approved by the
committee.

The Bankers Trust Company was appointed as the I!ew York

fiscal agent of the fund.

The Bankers Trust Company was em-

powered as such fiscal agent to deliver to the American Express
Company the fund (or that part of it) to be shipped via
"Tennessee".

The Committee voted the fund, as contributed, should be
used for payments against travelers' credits, (i. e. letters of
credit and travelers' cheques) issued by American bankers or

banking houses and the American Express Company, or other
American institutions, in amounts necessary to relieve the needs
of the holders of such travelers' credits, the sole purpose of
the creation and administration of the fund being for relief so
to be effected through cashing such credits for the holders
thereof.

it was the sense of the committee that the determination
of the amounts to be paid against travelers' credits as presented

from time to time should be as advised by a committee or commitees organized under the auspices of American travelers abroad,

as approved by this committee at a

later meeting, such committee

so selected to be instructed and authorized by this committee to
reject, in its discretion, any particular travelers' credit presented for payment, and in its discretion to advise the fiscal

agents of the committee in London and Paris as to the particular
travelers' credits which shall be cashed from such funds.
It was deemed wise at this time to make no public

announcement.

On the question of the liability of shippers and the
risk of loss, the committee was advised that there would be no
legal responsibility on the part of the United States Government
to reimburse the shippers in the event of loss of the shipment,
unless some definite arrangement was :made to that effect.

It was agreed that at a subsequent meeting of the
committee specific instructions would be formulated and sent to

Fred 1. Kent as representing the Bankers Trust Company, respecting the disposal of the fund.

It was decided to take up at a later meeting the details
of the manner in which the ten Original Contributors and additional contributors were to be reimbursed for their contributions.
It was further suggested that each contributor receive,
411

on payment of his contribution, a certificate from the Bankers
Trust Company as agent to evidence such payment.
it was the unanimous agreement of the committee that
iv.organ, Grenfell & Co., brown, Shipley & Co. and Guaranty Trust

Company of flew York be appointed fiscal agents of the Committee,

in London, and

organ, Harjes & Company and American Express

Company such agents in Paris, and that such fiscal agents be
entirely free to act as the fiscal agents of the United States
Government in the distribution of the contemplated relief fund to
be sent abroad b-.)

such Government.

The Committee approved the recommendation hitherto made
by 1.1r. anty Trust the Administration at Washington, that the Co. and Brown,
Strong to Company of how York, kiorgan, Grenfell & guar-

Shipley & Co. be appointed the special fiscal agents of the
United States Government for the purpose of the United States

-5-

relief fund in London, and that Morgan, Harjes & Co. and the
American Express Company be appointed such agents for like purposes in Paris; as it was the unanimous opinion of the committee
that both economy and efficiency advised that all contemplated
relief work be done through the same agencies.
Adjourned.

I

r
Cablegrams exchanged between the Bankers Trust Company and Mr. Fred I. Kent.

410

July 29:

Cablegram sent to Kent, care Deutsche Bank, Hamburg.
Exchange market demoralized. No trading possible. Over 26,000,000 bars
Insuranoe premiums almost proand coins shipped within last few days.
hibitive. Our continental balances in good condition. Mark loans were
Will require all for Travelers' Cheques and International's
not renewed.
Travelers' Cheques reducing our London balanops rapidly.
documentary credit.
Have no commitments for the immediate future. Will require about ,r50,000 in
Cablegram sent to Kent, care Deutsche Bank, Hamburg.
LondonJuly 30:
about August 5 for ' ravelers' Cheques. Market quoted nominally. Cable
Go at once to London and read our cables in regard to cover for Trave
transfers London 496, Berlin 97, Paris 495, demand 491.9Er1, 505. Rouble cable
Cheques and report at once with advice.
transfers about 5120 here. Can we resell Roubles in London to make Sterling?
Am cabling London for a rate. Have received no discount or arbitration rates
Cablegram from Mr. Kent, Hamburg.
of anyJuly 31:
kind since last Friday. Please endeavor to arrange with London for
Have telegraphed
will wire
Received telegram. temporary advanceLondon andTravelers' you again.
overdraft in our account or to give
to cover
today for London by way of Deutsche Bank, Berlin. Arrive at destinat
Cheques, if necessary, in case we cannot ship gold. Keep us posted on all
Sunday morning. Making (made) arrangements to protect Pally Traveler
developments. Am figuring on gold coin shipments for Travelers' Cheques.
Don't worry, am on job.
Cheques.
Keep us informed of itinery for cable messages to you.
July 31:

Aug. 1:

Re

Cablegram sent to Kent, care Bankerdeut, Berlin.
Cre
Cable received. Have shipped $700,000 gold London by St. Louis.
Lyonnais balance exhausted. Have cabled Morgan, Harjes & Co., Paris,
use their balance sparingly for necessary travelers' expenses. Are a
for special credit but doubt getting it. Also endeavoring arrange st
oompanies accept Travelers' Cheques New York reimbursement for passag
and will meet arriving steamships with funds for travelers, if needed
possible to buy demand or cable or ship gold. Suggest you get in imm
communication with Paris and endeavor make arrangements for protectin
cheques there after arranging Berlin. Also suggest reaching London s
Vkl. have
possible, though balances there for present in good shape.
Total in account $6,500,000. pro
mitments except Travelers' Cheques.
$4,000,000. abroad. Cable fully all news and details of arrangements
New York Stock Exchange closed. We are in good shape here. If you c
arrange travelers' credit matter will be tremendous relief, but take
personal risk.
Thank you heartily.

Cablegram to Kent, care Midtrust, London.
Duane in Faris and trying to reach London. Communicate with him care
If necessary divert $200,000 gold arriving London on St. Louis to Par
Cable fully at any hour.
more, if you can take care London payments.
sult London City and Llidland Bank, Ltd., London, regarding latest act
Banco de Cartagena. Have Lloyds Bank, Ltd., London, Union of London
Bank, Ltd., London, Morgan, Grenfell & Company, London, allow use ent
ances. Can Roubles be used in London or Paris? Travelers' Cheque ou
balances six and one-half million. Impossible estimate European requ
under present conditions. Communicate with Harjes regarding Paris re
ments.

Credit
Have shipped seven hundred thousand dollars gold per St. Louis.
Lyonnais balance exhausted. Have requested Harjes arrange with them h
cheques. If necessary ship portion St. Louis gold to Paris. Believe B
balance sufficient for present. Trouble on Credits and cheques report
Geneva. Have cabled Zurich full instructions. Arrange with all our L
accounts for full use of balances. See Midtrust regarding Banco Cartag
-2Can you use Roubles in London or Paris? Total cheques outstanding six
five hundred thousand. Stopping sales of all cheques for present.

r

August 1:

"'August

2:

Cablegram to Kent, care Midtrast,Kent, care Waldorf Hotel, London.
Cablegram sent to London, also care Bankerdeut, Berlin.
August 3:
Why don't we hear from you? What cablegrams have placing their London office your dis
Guaranty Trust Company are cabling you received?
Please arrange to use it if possible. Cable me fully what you are doin
Cablegram received from Mr. Kent in London.
Arrived London Cablegram from Mr. Kent, probably unobtainable before Tuesday.
Your cablegrams London.
August 3: today.
Tomorrow bank holiday. Have called meeting Americans four o'clock Monday.thousand Ame
Cable received. Mightily pleased. Held meeting today two
Telephone Washington to authorize Ambassador by cable with gold and transports should
Formed fine organization. Battleships cooperate with me
protect Americans here and on continent far as possible. will be prepared divert to co
Before arrival Will open temporary
immediately for England.
Can do
bureau trust company requirements both money and transports. much good. Answer
as seems best and you approve.
Wiring Duane await my in
their
Tell direct continent.
care Waldorf bytions Paris. possible.forward Washington American Banker here too dangerou
eleven, if
Conditions who
Unwise
Think and transports sta
knows business worse daily. most effectively with Ambassador.
can operate
Upon receipt definite instruction gold plan very
important. Have good scheme developed that will meet cash credits traveler continent
can arrange English banks for funds to this serious situation
as effectively as possible. Anxiety many here terrible. Haste necessary.
get them to England, where advisable. Haste imperative. Many American
Regards.
frightful condition on continent. If government will give me supreme :l
ty and will forward ships and money, can begin immediate work every cou
Have Cong
with organization I have back of me while awaiting arrival.
appropriate three hundred thousand dollars that I can use at once to ge

-3-

Americans in distress while boats on way.
Will act with Ambassadors each
country, but must have power. Transport for twenty thousand people probably
needed and five million gold in addition to St. Louis shipment. Aside from
appropriation money furnished by government would only be used to take up
Can arrange with banks
credits. Embassies not proper places handle money.
for space under American flag and control. Rush.
August 3:

Cablegram sent to Kent, care 7aldorf Hotel, London, from Washington.
Conference State and Treasury Departments. Arrangements under way for shipment gold by Government vessel at once, to be placed at direction of special
fiscal agents to be appointed and cooperate in connection with our embassies
abroad.
Arrangements in process for ships to bring travelers home.
Vitally
important to have following information at once. How much gold required for
travelers credits and for any without credits or money. To what places should
Can London arrange with
money be sent. How many travelers to bring home
Paris, Berlin and other points. What are your suggestions about Continental
fiscal agents, particularly Berlin. Can you take general charge from London.
Should we send Americans to assist. Cable particulars in fullest detail.
Will try and arrange Testern Union to give message right of way. Are you
in touch with Duane or Dalliba?
Strong.

August 4:

Cablegram to Fred I. Kent, care Waldorf Hotel, London, via Western Union and
Commercial.
Will advise
Cruiser Tennessee sailing Brooklyn Navy Yard Vednesday night.
amount of gold shipped later. Probably five millions. At government's
request sending staff of men with shipment. Cable name of consignee and
port of delivery at once. Arrange with government for safe delivery and
protection of shipment,

August 4:

Cablegram to Fred I. Kent, care ''.aldorf Hotel, London.

Divert only such portion of gold on St. Louis from London as will not be
Cable us
required for the protection of our various accounts in London.
what arrangements you have made with London for maturing drafts under Commercial Credits. Also cable us the full details of the moratorium declared
in London. Reports here so conflicting that we require immediate details.
Impossible to get detailed advices regarding special gold shipment until
details Washington arrangement completed.
August 4:

Cablegram to Fred I. Kent, care Waldorf Hotel, London.
Confidential. Some delay making necessary arrangements 7.ashington about sailActively on job here and everything possible being done to hasten and
ing.
complete arrangements. Plan contemplates using Morgan Grenfell - Brown
American
Shipley -- Guaranty Trust Company, London -- Morgan, Harjes
Express, paris, as Special redemption agents, if possible, by government
appointment, otherwise in behalf New York bankers. Absolutely necessary you
sable at once that money will be sparingly and impartially used for all American Letters Credit and Travelers' Cheques and not :or special reimbursement
may interested institutions or firms, and those appointed to disburse will
carefully scrutinize goodness of credits. Reimbursement in New York probCable me
ably though Bankers Trust. Will try cable full details tomorrow.
very fully at once.

August 4:

Cablegram to Fred I. Kent, care 7,aldorf Hotel, London.
Midtrust cables quite impossible to discount here. You must send gold end
Important to protect our own Travelers' credits as far as

-4August 4:

Cablegram from Mr. Kent.
Consign gold to Bankers Trust Company of New York, care
Cable received.
Landon City and 'Midland Bank, London. till advise port delivery soon as
Have
British Admiralty opens in morning arranging protection shipment.
government send $300,000 that I can also use immediately without red tape
Wish to
to get Americans on continent and care for special cases here.
charter vessel and send under American flag to take Americans now stranded
and suffering at many continental ports. This must be done at once by some
one who can act with authority in every country without awaiting telegraphic
instructions from anyone. Am positively prepared to do work with proper
credentials, which should be forwarded at once by cable through the Ambassador and direct. There may be no precedent for this, but there is none
for this condition either, If they prefer someone else, will work just as
All vessels should
hard for him, but he must be a hustler and fearless.
be coaled and victualed for round trip. Opened special office Savoy Hotel
today. Am paying Bankers cheques.

August 5:

Cablegram from Mr. Kent, London.
Moratorium probably last until small bank England notes printed. Don't worry
about maturing credits. Will keep you informed when necessary. No ships obtainable for Continental Americans, who are in hell if government don't give
me money quick. They cannot await vessels from America. Must also have
governmental authority raise American: flag, or would raise funds American
residents here. Send notice banks selling cheques I am here and opened
Loudon off' s* yew ehcapes, and refer Americans in trouble to me.

August 5:

Cablegram sent to Fred I. Kent, care Savoy Hotel, London, by H.P. Davison.
I am much concerned lest you overwork and become unfit due to the terrible
strain to which you are now subjected. Of course everything possible being
The
done here to meet requirements: general situation here well in hand.
one thing required of you and me and all others in responsibility is to be
calm and move with great deliberation. The complacency shown here by everybody is really remarkable. This word of caution is prompted by my personal
regard for you, as well as for the importance of the situation as a whole.

August 5:

Cablegram sent to Fred I. Kent, care Hotel Savoy, London.
Cable at once suggestion of institution or individual to be appointed government
fiscal agent Berlin, Austria andnother countries affected. Awaiting word from
washington about special government fund. Hope to get five million gold off
tonight. Don't worry, matters progressing here as rapidly as possible.

August 5:

Cablegram sent to Fred I. Kent, care Hotel Savoy, London.
Landmandsbank, Copenhagen, will honor Travelers' Cheques debit Kroner account.
Arrange with London
Are requesting cover. Impossible to buy exchange here.
City Midland Bank to take care Landmandsbank, Copenhagen, on arrival St. Louis
gold.

August 5:

Cablegram sent to Fred I. Kent, care Savoy Hotel, London.
Congress has appropriated #,500,000 for relief Americans abroad. Am advised
States Department cabling Ambassador Page to arrange for expenditure 4300,000
at once and authorizing cooneration with you. Confer with him as he has detailed instructions. Arrangements for shipment 45,000,000 gold by New York
Bankers nearing completion. Hope to send final advice of shipment with five
responsible bank men on Government vessel tomorrow. Full instructions regarding delivery and use of money will be cabled. Matter being handled by com-

r

to be made exclusively to holders Travelers' Cheques and credits after verification in usual way. All cheques and drafts are to be cashed in Sterling under
directions London committee. Cheques and drafts are to be forwarded Bankers
Endeavor to secure advance
Trust Company for collection and reimbursement.
at once against gold in transit for such amount as you will require before
arrival. New York Committee recommends moderate advance to each applicant.
Committees only protection for repayment of advance is through :olleotion of
Committee Is advised Morgan is
New York drafts and cheques cashed in London.
arranging to deposit lie. three to six million gold for credit Bank of France

r
-6-

to be immediately disbursed Paris for similar purpose there.
Particulars
will be cabled you shortly so that London committee may cooperate with
Morgan Harjes. Necessity for depositing balance of gold here to establish
Paris credit reduced London shipment to three million dollars from amount
originally advised. Understand government shipment on Tennessee one million
five hundred thousand, regarding which cooperate with government officials
in charge. Have endeavored to conform near as possible to suggestions your
Hope above will fully meet situation. To authenticate this,
latest cable.
duplicate will be cabled to Brown Shipley Company, ,ondon. Please compare.

August 7: Marconigram from Mr. Kent, Waldorf Hotel, to Mr. Strong.
My cables to you being held up by censor in New York after having been passed received
August 7: Cablegram from mr. Kent, London,
by English censor. Do needful.
Understand instructio
Cablegram received.
State Department has not yet replied Ambas
August 7; Cablegram to Fred I. Kent, Waldorf Hotel, Aldwich Street, London, England.
government credit to make three hundred th
cable messages. If your messages
Marconigram received. No New York censor on arrang9ments completed, only awaiting such
are being held, evidently action of Canadian up to(40. Everything quiet, no rune. Mo
censor, who must be instructed
from your side. Request English censor to instruct Canadian censor to pass
Both banks and hotels greatly relieved bec
regulations require full name
through immediately your messages to us. Newtransport 20,000 people.
Should start imm
Ambassador Page being adand street address of both sender and addressee.
together tomorrow.
Have you revised by State Department to facilitate our cable exchanges.
ceived our cablegram of today giving details Cablegram to shipment Kent, care Waldorf Ho
of the gold Fred I. by Cruiser
August 8:
J. P. Morgan has sent the following cableg
Tennessee?
this information will assist you to adjust
Suggest drafts against Travelers' Cheques
August 7: Cablegram to Fred I. Kent, Waldorf Hotel, Aldwick Street, London, England.
Sir Edward Holden cables he agrees to hold at your disposal the seven hundred
York five Francs to dollar. Checks and Tr
at
thousand dollars gold shipped Steamer St. Louis.five Francs to dollartgiving holders of
receipt which would show amount paid, leav
August 7; Cablegram to H. P. Davison, care J.P.Morgan &ence in rate from issuers of cheques after
Co. from Mr. Fred I. Kent.
Cablegram received greatly appreciate. Recognize necessity concerning all
Haste in
possible energy. my greatest concern is for Cablegram in Germany. Kent, Waldorf Hotel,
August 8: Americans to Fred I.
relieving them necessary. Everything else working smoothly now this may be has
Suggest government opportunity
Personal.
acted. Regards to all.
Fred I. Kent, midland Hotel, Llopds and other responsible
Waldorf Bank, London, England.
financing commodity shipments and protecti
held abroad. New York will be in good sha
should take advantage of opportunity to ge

-7-

abroad must be carefully considered before we open any extensive credits,
or joint account with London banks
but some kind of offsetting account
should be possible by which amount of credit at either end would be reduced
to minimum. Our idea to open credit here in dollars against similar credits
if needed in Pounds Sterling. Should this necessitate establishing permanent
London office, please consider and report views; also advise fully your opinion
Just advised American
df transaction and suggestion regarding exchange rates.
bank notes being sold heavy discount in London. Think your committee should
arrange to cash in Sterling at rate of exchange to be advised to me at once
difference sufficient to cover expenses and insurance of sending bills home.
August 8:

Cablegram to Fred I. Kent, Waldorf Hotel, Aldwych Street, London.
secretary of Treasury telephones me Ambassador Page is asked for guarantee
that three hundred thousand gold will be returned in thirty days before advances
on that credit can be made. Can you not arrange to meet this requirement by
using three hundred thousand our Saint Louis shipment, getting reimbursement
from million and half shipped for Government's account on Tennessee. Cable me
fully , as Washington end is rather technical, and I will have to arrange for
instructions to be cabled to those in charge Tennessee shipment to make payment
on arrival. Can you suggest any arrangement for opening credits in Germany,
Austria and other countries by deposits gold here, using machinery of Government
for giving necessary assurances as to credit. All quiet here.

August 8:

Cablegram to Fred I. Kent, care Waldorf Hotel, Aldwych Street, London.
Assist Mrs. Anna Busch, a valued client of the Third National Bank of St. Louis,
requesting her to communicate with you. However endeavor to get in touch with
her.

eipast 9:

August 10:

Cablegram from Fred L. Kent, Waldorf Hotel.
I was elected Chairman. Suggested New York
Bankers comm-s-tee met to-day.
committee advertise could make cable transfers London to three hundred dollars
through London committee, you cabling me mentioning names our Directors through
whom transfers made in order received, and we pay anticipating arrival gold. Do
you approve? Mrs. Waller can only be reached from Washington direct; Ambassador
I was
here cannot telegraph points mentioned, as communication stopped.
appointed Chairman Red Cross Committee today, and shall try send parties for
Americans, where necessary and possible, using appropriation Congress, which
Ambassador has authorised the American Consul General and myself to disburse as
Special Committee. Nrs. Ashley Grace here, I looking after her. Tell George
Case Dr. Bell in Glasgow; wired him today. Tell Walter Frew taking care Mrs.
Knapp. Tell Frederick Duncan cannot telegraph money requested, but trying;
tell others to cable friends to look me up, when possible as difficult for me
find time hunt them, but doing best can. Telephoned Ers. Converse today. All
well. Love.
Cablegram from Fred I. Kent, Waldorf Hotel, Aldwych.
London committee suggests you advertise cable transfers to London up to three
hundred dollars can be made by New York committee, you cabling us, we crediting
account, parties with London committee. Total for present one hundred thousand
dollars, to be increased later if advisable and necessary. Such payments
additional to Letters Credit and Travelers' Cheques. Parties holding some S.S.
chennes and others may need such help. Also advise American banks issuing
Letters Credit to deposit funds with New York committee, if balance here depleted.
to be credited their accounts by London committee to be used solely tO loely
drafts against Letters of Credits. Some banks whose correspondents in London
are closed, such Deutsche Bank and others, must protect their credits this manner

-

as against law to honor credits outstanding. Can undoubtedly honor new credits
favor holders for amounts undrawn. Can possibly deposit with Bank England account

-10Cablegrams exchanged between Bankers Trust Co. and

Fred I. Kent -

Continued-

Augast 13: Cablegram from Fred I. Kent, London.
Only method dealing with Switzerland was to deposit here twenty thousand
Do you authorize
pounds with Swiss Bankverein, which was done yesterday.
committee deposit ton thousand pounds each with Credito Italiano and Banca
Commerciale Italiana, London, for Americans in Italy. This is only method
doing this business, but of course in making such deposits under present
circumstances there is considerable risk, as it involves giving credit to
these banks, besides the probability of loss in transmission of the paid
documents and details, thus making the statement alone of these banks the
basis od debiting their payments. Please cable immediately that your committee wishes to take all responsibility for these deposits, and whether the
London Committee are authorized to deal with other countries, Scandinavia
and Spain, by similar deposits.
August 131 Cablegram from Fred I. Kent, London.
Just cabled you as requested by London Committee. Have already deposited ten
thousand pounds with Banca Commerciale for exelusive payment Association
Have also arranged with Denmark
cheques, which are being paid in Italy.
Tell Charles Moore and 2alward Kind, also Deans of the
and Scandinavia.
Merchants Loan, Chicago, and ilutt of Cleveland, their cablegrams having
attention. Tell Roy Follit, our employee, his mother well in London. Saw
are working together.
Sir Edgard today about special matter your cable.
Mrs. Kent and Warner returning next
European.conditions look more serious.
I shall remain as long as necessary.
week, and possibly "Jr. and Mrs. Duane.
August 13: Cablegram to Fred I. Kent, Waldorf Hotel, Aldv:ych Street,London.
Have received cable advice. London City and Midland Bank crediting us Saint
Louis gold shipment. Am collecting maturing drafts on commercial credits
provisional rate five dollars, subject adjustment later. Have we credit
balance with London City Midland Bank, and can we sell cable transfers or
Cable transfers would
draw our account with London City Midland Bank.
be authenticated using directors' names consecutive order similar our arrangement with you. Robinson Sweet offering grain bills on Shipton anderson London seventeen thousand Pounds Sterling, and on Joseph Wiles Son eight
hundred fifty pounds Sterling. London City Midland Bank cables war risk
Will probably buy
policies received by them covering these shipments.
Consult London City Midland Bank
these drafts, unless you advise contrary.
if further particulars needed. Telegraph immediately.

August 13: Cablegram to Fred I. Kent, aaldorf Hotel, Aldwych Street, London.
Will you cable me for information of New York committee manner in which various
credits opened by London committee are being handled, and to whom we are to
Cablegram
refer inquiries regarding payments and advances at various cities.
Will answer as soon as possible.
received beginning words only method.
August 14: Cablegram from Fred I. Kent, Waldorf Hotel, Aldwych Street, London.
Cablegram received. Our London balance twenty eight thousand
personal.
Sell cable transfers and demand only for suatomers at present.
pounds.
Will advise more fully Monday when accounts checked up. Purchase drafts
mentioned with wide margin in rates. Sir Edward trying hard arrange for
credits in accordance with letter instructions I delivered him. Will advise result later. From London committee cablegram received deposited with
Swiss Bankverein against their agreement to cash American credits in Switzer-

r

directly with these officers and ascertain if further credits required for
cashing travelers' Cheques and will arrange for Government guaranty at once
under above plan for these and other cities. State Department reports EmCan you handle
bassies and consulates can get money in Russia except Warsaw.
that and other Russian points by using our Roubles for reimbursement out of
Tennessee shipment. Above plan contemplates opening local credits under
Government guarantee through Embassies for disbursement on travelers' cheques
and for destitute cases the amount used for travelers' cheques to be secured

-12Cablegrams between Bankers Trust Co. and 7r. Fred I. Kent -

---

Continued-

out of three million bankers shipment and the amount disbursed for destitute
cases and embassy expenses out of Government shipment, the accounting for
all travelers' cheques and letters of coedit made to London committee and
settlement effected there. This plan approved by State and Treasury Departments. please cable at once whether you understand and can carry out plan
asking Ambassador to facilitate prompt transmission. i,efer your cable beginning only method.
Swiss deposit approved. Plan above suggested avoids
risking deposits and only care required to safeguard paid documents.
Suggest
these be handled through embassies. Try arrange other credits same plan.
Cablegram ending wit# word completed received, manner of handling satisfactory.
Committee urges every precaution safeguard documents.
August 15: Cablegram sent to Fred I. Kent, ilaldorf Hotel, aldwych Street, London.
This for your information. National Bank Greece Athens cabled First National,
New York, as follows: Credited you with London County Fifty thousand sterling,
to be placed in our sterling account. Please telegraph rate ycu would credit
us in a dollar account for this amount. First National, New York, cabled them
in reply as follows: Cablegram received, unable to handle transaction refer
It may
you to Bankers ?rust Company here, which has oUr entire confidence.
be possible that ay could use this sterling in London and shall endeavor to
Hew York
secure the account of the Greece bank unless youbelieve unwise,
market only nominal. Quotations today for small amount about 494 demand and
499 for cable transfers.

August 16: Cablegram from Fred Kent, Waldorf Hotel, London.
Have seen 2.Irs. 'Tiller, doing needful, tell :Ir. Grace meet family and LIcLaughlin
Copenhagen Holland, :;orway, Sweden,
at Quebec, arriving :Iegantic August 21.

Italy and probably Germany paying our cheques. Sent letter by messenger to
Hugo Schmidt today conditions there reported better for Americans, particularly
:Ieeting Cruiser Tennessee personally tomorrow, have advised
large cities.
If Cunard put on ships will relieve congestion here but
Gibson by telegram.
thousands on continent will need transportation.
AAgust 16: Cablegram from Fred I. Kent, 7,Aldorf Hotel.
Cable National Bank Greece deposit London City nidland our account allow rate
four ninety four if can sell small lots good rates. Americans advised by
London institutions her rate five dollars cable acceptance Greece bank and I will
wire them about travelers' cheques.

August 17: Cablegram sent to Fred I. Kent, care U.S.Cruiser Tennessee, Falmouth, ingland.
Cablegram received, insurance covered by us on Tennessee gold to delivery in
London.

August 17: Cablegram sent to Fred I. Kent, Waldorf Hotel, Aldwych Street, London.
State Department communicating Ambassador Page large number private payments
to be made abroad, including many in Switzerland, whiah Banque Nationale
Suisse now agrees to make in Switzerland only upon receipt direct cable instructions from United States Treasury Department. This involves dupplicat ion very expensive cable instructions and State Department would appreciate
your confarring with ambassador Page and endeavoring to arrange other method
if possible.

Please answer promptly.

August 28: Cablegram sent to Fred I. Kent, naldorf Hotel, Aldwych Street, London.
London City Mdland Bank cables us as follows: what interest are you allowing

-13-

Cablegrams between Bankers Trust Company and

having in mind that we would like l
business.
Fred I. Kent - Continued-Cable us any arrangement
others opening reciprocal accounts

August 18: Cablegram sent to Fred I. Kent, Wal
Pay Mrs. Vandeveer Quick care Ameri
equivalent of three hundred dollars

August 161 Cablegram from Fred Kent, Waldorf Ho
Tennessee gold in Bank England, cab
and some consular payments mentione
returns from Prance Sunday. He ref
deposited with ,:ashington Government
tee suggested wont help every situa
iums and lack cash not doubt of cre
ity meet conditions each country as
outlined by you. Transfer million l
Merchants Loan Chicago money telegra

August 19: Cablegram to Fred I. Kent, Waldorf H
Message number one, your cablegram b
ceived, we have conferred with Washi
be given stop. Cable specifically a
your messages consecutively from now
August 19:

Cablegram from Ered Kent, Waldorf H
Saw Lloyds yesterday
City tomorrow, sening
sailing Adriatic toda
them through Hamburg A

August 20: Cablegram to Fred I. K
Message two. Confer
travelers' 41-s credit
ling Ambassador Page a

August 20: Cablegram to Fred I. K
Message three. Have c
fifty thousand deposit
ceived, also amount ou
agount sterling exchan
livery Octoter sixty
ninety one thousand, W
said periods and our p
rants maturing London
tained London for payi
change rate. Bowring
covering fuel oil ship
tracts.
Would like h
London with war risks,
this.
Keep us fully i

41/Lgust 21: Cablegram from Fred Ke

Arranged pay London Ci
deposit and general bu

Nickel deposit with Lo

r

Our letters August sixth to Midland Bank and letter same date to
in order.
men accompanying shipment outlined manner of handling gold arrival in London
Look ip our instructions and advise what is trouble and what is necessary for
us to do.
August 23: Cablegram from Fred Kent, London.
Cable Midland cancelling your letter sixth.
Message four. Message seven received.
Have written Midland under instructions committee and your cable will be put in
order personal Duane will explaib on arrival, let books stand until then. Mon-

-15-

Cablegrams between Bankers Trust Company and Er. Fred I. Kent - Continued.

day appointment Midland, this matter also City warrants grain shipments and
other matters will cable afterward. Exchange October rovember expected drop
sharply if city warrants paid, but campaign developments may demoralize market,

-16-

Cablegrams between Bankers Trust Co. and Mr. Fred I Kent.

August 25: Cablegram to Fred I. Kent, Valdorf Hotel, London.
Message eleven: Refer your message five, Morgan, City Bank, ourselves and others
Bankers
discussing City Warrant arrangement, suggest conferring with Grenfell.
Committee desire report disbursements of gold fund and from what date disbursements were made. Think all items should be sent forward pronptly for collection.
August 25: Cablegram to Fred I. Kent, Waldorf Hotel, London.
Message Twelve: Columbia Trust Company have received cablegram from Provincial
Bank stating American Consul London claims Tennessee funds destitute Americans
only, Columbia Trust instructing Provincial communioate with you as Bankers shipPlease cable answer.
ment was for all responsible American credits.
August 26: Cablegram from Fred Kent.
Message six. London Bankers have been paying American credits presented here
without using gold fund London Committee feel they can safely release two hundred thousands pounds for distribution among London correspondents of American
If you agree cable with whom deposits must be made and for whose
contributors.
account.
August 25: Cablegram from Fred Kent.
Message seven. Confidential. London bankers preferred pay credits rather than
Couldn't get them operate as you outlined because
take gold knowing it was here.
pride and profit. Now they should be reimbursed to make gold work and held exchange, explaining fully Saturday's mail. We can use First National share and any
other obtainable, everything working smoothly.

°August

25: Cablegram from Fred Kent.
Message eight. Provincial bank misinformed, seeing them personally consider matter
in order.

August 26: Cablegram to Fred I. Kent.
Message thirteen. Your message six seven received. Cannot answer your message
six until we receive from you answer our message eleven. New York Committee desire avoid criticism gold shipment being used for exchange purpose by distribution among original contributors and subsequent contributors as shipment intended
for all responsible American travelers' credits and cheques.
Committee also want
full detailed information regarding manner and procedure of disbursements made
by London Committee and how advances arranged prior arrival gold are being covered,
also are vouchers surrendered to London Committee against payments from Gold Fund
and sent here or being held by London Committee to be forwarded later.
Cannot
understand if plans as outlined in previous cable were followed haw you can have
amount mentioned still available. Please mail for benefit committee itemized
statement of all disbursements and cable brief summary. Rush. Personal: Tell
Bank Athens have remitted balance their account check London.
Cable amount our
balance Midland Bank.
August 27: Cablegrap to Mr. Kent.
Message fourteen. Cable us rates you are quoting London banks for documentary
credits opened with us. You understand London City Midland chArge us one eighth
per cent. on our sight credits. Do you believe it advisable issue Sterling
credits on London to American importers, available against sight and time drafts.
Understand London banks refusing drafts under Commercial Credits bearing endorsements German banks in South America. Sterling,exchange more freely offered today.

-17Cablegrams - Bankers Trust Co. and Mr. Fred I. Kent.

August 28:Cablegram to Mr. Kent.
Message fifteen. Just head Mrs. Kent not well, please cable fully.
Augus t 23:Cablegram to Mr. Kent.

Message sixteen.
Our message fifteen sent from information given me by Mrs.
Grace who saw Mrs. Kent in London.
Is Mrs. Kent returning Plympic, arranging
to meet steamer on arrival. Rush answer.

August 28: Cablegram from Mr. Kent.
Message ten. total deposits and guarantees to date in respect of continental
Europe eighty five thousand pounds.
Original plan outlined by you not considered practicable for London. Exeept on Bank Holidays and the fact that in some
institutions credits have been cashed for limited amounts, bankers here have
never ceased paying travelers' drafts in usual way leaving question of reimbursement till later. To meet this situation and to Amid gold lying idle our
suggestion is to distrioute on account disbursements already made say two hundred thousands pounds London correspondents of American contributors distribution being pro rate to amounts subscribed your side. There is no question of
utilizing shipment for exchange purposes as sum payable to each correspondent
wont equal his disArsements total of which far exceeds while Tennessee shipment.
If you approve, advise specific sterling amount to be paid each correspondent for account each contributor. Expect unused balance of shipment certainly more than sufficient take care remaining needs continent. Will propose
further distribution account London disbursements when position clearer.
Complete doonments for continental disbursements cannot be received for some weeks,
first batch from Switzerland just arrived. London bankers will not deliver documents or vouchers to London Committee but will continue dispose of them according
to usual practice. Confidential' Personal opinion plan and ethop order procedure would help financial and exchange situation if simpler methods prove impossible.
First, official notice Government to banks that Regional banks wont be organized until July nineteen fiftee,t, this ..ould release gold accumulated by
banks:
Second, gold bond issue by Government for amount necessary make available one hundred fifty million gold: Third, syndicate formed finance city warrants and short term notes maturing London this year:
Fourth, Government deposit gold with syndicate bankers as needed: Fifth, syndicate banks deposit
gold Ottawa account Bank England:
Sixth, Bank England hold disposal syndicates
London correspondents for retiring maturities: Seventh, definite announcement
whole plan agreed upon:
Eighth, deposits Ottawa only made as maturities require: Ninth, English investors after such evidence American determinaion to
protect obligations may prefer take new issues from Syndicate to large extent
as American investments would seem safest thing in market; Tenth, readjustment
whole foreign marjet might be immediate and exports and imports begin to wash
themselves naturally: Eleventh, market might result Bank England releasing
Ottawa deposits in large part even if all had to be made.
Midland balance
sixty thousand pounds.
Telephoned Mrs. Waller here and well.

-18-

Cablegrams - Bankers Trust Co. and Mr. Fred I. Kent.
.1 mob NMI

Foreign
Your letter sent by Mrs. Kent received. Will have full attention.
de2artment has already issued dollar and sterling credits on ourselves favor
We
South American firms, cabling London tonight Sterling Credit with them.
Don't worry,
are proceeding very cautiously owing conditions South America.
we are on job here.
August 31:Message eighteen. New Orleans offering nineties on Kleinwort and Huth drawn
are drawees mentioned discountable.
under confirmed credits against cotton
For your information Gerard Berlin cables balances with Grinner about
Stop.
Stop. V111 cable tomorrow particulars two hundred
fifteen hundred thousand.
London statements received but no letter exthousand distribution. Stop.
Stop. Hearing
plaining charges. Awaiting full particulars from you by mail.
number complaints regarding encashment our cheques Italy Switzerland Presume
matter now in order.
Sept. 1

Cablegram from London.
Message twelve: Hugo Smith reports one hundred thousand dollars Association
cheques paid since August first:
Gibson there now. During mobilization and
first days panic no credits cashed some continental countries except miscellaneous places, some taking our cheques, some others.
Satisfied Association and American Express cheques gave good general service but both refused
temporarily many places, sometimes ours being cashed, theirs nob, and vice
versa.
Association cheques being cashed to my knowledge Great Britain, France,
Switzerland, Italy, Germany, Holland, all Scandinavia, writing :Cully enclosing Axcular for distribution. Houses mentioned your message eighteen not
discountable as only Joint Stook Clearing Banks accepted. Don't take first
name anyway.

-19Cablegrams - Bankers Trust Co. and Mr. Fred I. Kent.
thousand sixtyeight pounds nine shillings six pence account Bankers Trust,
New York; Pay London City Midland Bank, eight thousand four hundred seventyone

-20Sept. 3:

Cablegram from London.
Message thirteen, yours twenty payments made today, your message twentyone,
appointments tomorrow Sir Edward Grey Christopher Nugent and Holden, will
answer afterwards. Writing Adams payment resumed Association cheques Italy
Called Drake
August fourteen instructions having been delayed in order since.
Ask Mrs . Kent if my sister recovering from operation.
today.

Sept. 4:

Cablegram to London:
Letter
Message tmentythree: Mrs. Kent reports sister getting along nicely.
received, party's name is Mrs. Vandeveer Quick, not Mrs. Vandeveer, party
writes clients here funds not yet received. Do needful and advise us further.

Sept. 5:

Cablegram from London.
Message fourteen, strictly confidential; Morgan, Vanderlip, Schiff asking our
Government through Government here to request Bank England advance money here
against deposit one third gold two thirds National Bank Note in Ottawa.
Advance against notes to represent loan fine per cent. until redeemed in gold,
total amount hundred fifty million dollars. This would help exchange situation
exaotly as my message ten but wouldn't provide Syndicate with funds to make
deposit and so lift burden refunding from bankers. Expense would be greater
If Government denosited
as cash would be deposited and interest paid also
gold with syndicate bankers against refunding securities as collateral and if
financial public knew gold deposited by bankers in Ottawa would not be demanded
from bankers by Government until securities placed, no disturbance would occur
but market would be relieved through knowledge vast amount securities indirectly refunded by Government. Bank reserves should be figured without government
deposits as agreement not to call would represent time deposits with special
collateral. Believe Embassy here willing urge my rlan in Washington if you
desire as they fully approve. Explained my plan to Holden who approved. Your
message twenty four discount market would not be broadened because of this
operation but am trying to and believe can arrange discount all names we ought
Danger buying acceptance houses bills would not be lessened even if
to take.
discountable. Would make exchange now but might result losses at maturities.
Tell Miss Barnes pay Kidders insurance.

Sept. 5:

Cablegram to London.
Message 24. Will answer message fourteen Tuesday. Midland Bank cabling they
credit us 10,000 per Capital Counties, request them cable fuller particulars
immediately, also ne0_ected number their message.

Sept. 5:

Cablegram to London.
Message 25. Credit Lyonnais, Madrid, cables American Bankers Association place
pounds their disposition London to pay for Travelers' Cheques. Have cabled
them draw on Midland Bank in reimbursement. Please request their London office
to cable Madrid also confirming our instructions.

Sept.

Cablegram from London.
Birge, Forbes should be best possible business as can draw
Message fifteen.
Parrs Bank which discountable and safe for very large line, writing.
Union
Discount offer four per cent. our nineties delivered here Thursday fifty or
hundred thousand if Midland willing fitccept do you want funds. Balance fortyeight
thousand plus ten I deposited today against sale two hundred thousand cable
marks Smith bank rate twenty flat. Can discount Bank Liverpool fifty thousand
Eccles, Muir Duckworth, Fine Spinners and others, writing. Capital Counties d
deposit was account Banque Suisse Francaise, Paris. Your message twentyfive
has attention. Found Mrs. (-slick.

7:

-21-

Sept. 8:

Cablegram to London.
Good
Message twentysix: Replying your message fourteen, very confidential:
progress for handling City obligations regular way without recourse -elan you
outline. Plans also forming for large gold syndicate to meet whole situation.
Will cable payticulars soon. Your letter fifteenth greatly appreciated, will
Smith arranging with Sparger purchase large block
answer in detail few days.
of exchange on consignment prime English clearing banks and approved names
and will cooperate with you securing discounts. Will require balance of our
Marks for International's credit shipments coming forward from neutral countries.
Noted your sale to Union of London and have sold sterling today at good rate.
Smith writing you fully all matters.

Sept. 9:

Cablegram to London.
Message twentyseven: Regarding nineties our position here strong, carrying
surplus reserve. Time money about eight percent. but considerable uncertainty
in getting payment at maturity as loans are not being called. Also means increasing our future contracts. Possibility our being interested, if so shall
cable few days.
Include amount our London balance your next cablegram,
telegraphed Birge, Forbes, Parrs Bank reimbursement satisfactory, necessary
you cable us approved names acceptable for discount as exchange working more
freely and some cotton bills being offered. Is Banca Commerciale Italiana
discountable.

Sept. 10: Cablegram from London.
Message sisteen, can discount all clearing banks, Baring Bros., William Brandt,
London Liverpool Bank Commerce, Huth, Kleinwort, Konig, Rothschild, Bank Liverpool, Manchester County, Manchester District and Union Manchester, also

-2ZSept.14:

Cablegram to London.
twentynine:
L. Lahargone cannot cash Travelers' Cheques Bilbao,
Spain, is in desperate straits, requires funds sufficient for passage homeward,
his address is Amistad, five three A Derecha. Kindly arrange immediately for
protection of cheques at Bilbao and cable us when in order. Arranged with
Lasky Feature Play Company have funds deposited Midland Bank for our credit
similar Huronian Company. Communicate with their representative Sidney 7.
Baber, 84 Charing Road.

aept. 15: Cablegram to London.
Message thirty, refer your message seventeen Morgan, Grenfell considering
handling city warrants in London, suggest you consult them. Midland Bank
Cables no advice Ellen French Letter Credit, this arranged by you, instruct
them.

Sept. 16: Cablegram from London.
Message eighteen, believe important that warrants for Engl] sh market be drawn
in Sterling and would benefit city and syndicate. Whigham cabling Morgan toBalance eighteen thousand interest four per cent. can discount hundred
day.
thousand nineties three one quarter with commission three three (ivarters.
French Letter Credit in order, Midland's error.

Sept. 16: Cablegram to London.
Message thirtyone. Impossible draw warrants in Sterling, Whigham fully adCan purchase cable Lire here about 5.35, believe advisable we remit
vised.
cable Lire Italy and have Italiana London release unused sterling balance.
Cable us your opinion amount required. Regarding nineties, prefer using this
method as cover for our futures if necessary, Smith writing fully next mail,
exchange here fairly steady, cables about 4.98.
Sept. 17:

Cablegram from London.
Your thirty
Message eighteen:
could be sold here but none in
syndicate and general exchange
amendatory agreement neces ary
operate your figure profitably

one, saw Whigham believe millions sterling bills
dollars worthy consideration.
Interests city
market demand issue sterling bills even if
with city. Lire here twenty seven, impossible
, writing.

Sept. 18: Cablegram to London.
Message 32. Received numerous complaints regarding Swiss Banks cashing
association cheques heavy discount, request Creditanstalt ani Bankverein
Zurich notify their branches and correspondents pay Association chew es face
Received two messe-es numbered eighteen. You evidently misconstrued
value.
meaning our message thirtyone regarding Lire, writing. Hope wires Direction
cables credit balance 139,000 sell you one million marks 9550 end message.
Mark cables here about 9550 95625 telegraph immediately if profitable sell
narks in London. Instructing Hope request Direction renew offer immediately
subject prompt reply. Can you reach Salompnsohn and Smith without much delay
or shall we handle cables from here in event transaction consummated.
Sept. 19: Cablegram from London.
Message nineteen: Your thirtytwo, Switzerland nown order, refund difference
asked not exceeding one percent. ket=aing records writing. Marks unsalable
Gibson returning due Monday if require marks his arrival will advise.
here.
Can telegraph Smith little delay.
Sept. 19: Cablegram to London.
Cable
Message 33: Possibility our cabling you Monday regarding nineties.
immediately spot discount rate, presume you and Duane can draw them wherever
endeavor cable more fully
Gold pool hundred million approved,
necessary.
: :onday.

-23-

Sept. 19:

Cable Letter to London.
Have completed plan for hundred million gold fund Washington fully approves,
reserve board makes call reserve city banks. Believe banks will respond and
exchange available early October or sooner. Special Clearing House committee
New York will manage,cable your views handling London and New York accounts
and other suggestions. Probably ask you make London arrangements then come
New York assist here, can you do it without injury your London work.
Advise
Holden.

Sept. 21:

Cablegram from London.
Message twenty: Your message thirtythree discount nineties three one eighth
percent.
delivery here Tuesday or Wednesday by us. Your unnumbered message
twentieth if given full power can arrange matters here easily. Should endeavor obtain better rate from Bank England for deposit as consider present
rate too low but could do nothing without positive and unhampered authorily.
Could then return New York as suggested, coming back London later if necessary

Sept. 21:

Cablegram from London.
Message twentyone: London Committee recommends distribution further two
hundred thousand pounds, instruct. Tell Heidelbach Ickelheimer papers
delivered Hambro, tell Commerce have following items unpaid drafts numbers
54649 54652 54651 54650 3829 3695 4152 instruct.
Collect cable
charges.

Sept. 22:

Cablegram to London.
Message 35, consider cable letter as 34. Draw 75000 pounds nineties and
discount at three and one eighth percent. or better. This will cover
50000 cable needed October fifth for short contracts, Prefer drawing now
than risk higher discounts later. 'Advise Banos. Commerciale, London, crediting t' eir dollar account 25000 from Farmers Loan.

Sept. 22:

Cablegram from London.
Message twentytwo: Banaa Commerciale opening account three one half percent. Midland Balance two thousand.

Sept. 23:

Cablegram to London.
Message. 36. Refer your message 21, make following payments account 200,000
pounds gold fund distribution. Pay the following 14450 pounds each Misland
Bank account Bankers Trust, Farmers Loan Trust account New York office,
Union of London account National Bank Commerce, Morgan, Grenfell account
J. P. Morgan Company, American Express account New York office, Guaranty Trust
Brown Shipley account Brown Brothers, Baring
account New York office;
Brothers account Kidder Peabody, Midland Bank account National City Bank.
Pay the following 3,333 pounds six shillings eigt pence each: Midland Bank
account Hanover National, Glyn Mills Currie account United States Mortgage
Trust, London Joint Stock account Chemical National, Faitable Trust account
New York office, Bank of Scotland account Continental Commercial, Chicago,
Midland Bankaccount Fourth Street National, Philadelphia, 2errs Bank account
Knauth, Nachod I:Uhne, Bank of Scotland account Northern Trust, Chicago,
Conoercial Bank of Scotland, account American Exchange National.

Credit
Pay following 833 pounds six shillings eight pence each:
Lyonnais L,ndon, account Hallgarten, National Provincial Bank
account Columbia Trust, Lloyds Bank account Chase National,
Union of London account Irving National. Pay International
Banking Corporation 1666 pounds thirteen shillings four pence
account New York office, pay Brown Shipley 1166 pounds thirteen
shillings four pence account Alexander Brown Baltimore. Pay
Midland Bank 6666 pounds thirteen shillings four pence account
Corn Exchange Bank. Pay :lidland Bank 5000 pounds account Kountze
Brothers. Pay Union of London 5000 pounds account 7Ierchants Loan
Trust Chicago. Pay Midland Bank 2666 pounds thirteen shillings
four pence account Bankers Trust, this makes total 185550 pounds,
shall cable tomorrow instructions regarding balance 14,450 pounds
make payments promptly and cable when effected.
Sept. 23:

Cablegram to London:
Message thirtysevens Telegraph Smith pay Matilda M. Satterfield
36 Holbeinplatz, Frankfurt a/M. 5000 marks, she is an American
citizen in great distress, please urge her return to States with
her family immediately. Telegraph amount, rate and maturity of
nineties drawn by you.

Sept. 24:

Cablegram from London.
Message twentythree:
Tell Commerce documents here. Fully approve
your letter eleventh. Writing detailed ideas Saturday's steamer
if needed before will cable. Discounted bills three percent.

Sept. 24:

Cablegram to London.
Message thirtyeight, refer our message thirtysix, pay British
Linen Bank twentyeight hundred twentythree pounds eighteen and
five account Blair and Company, pay Midland Bank eight thousand
four hundred seventyone pounds fifteen and three account First
National Chicago, pay Union of London fourteen hundred eleven pounds
nineteen and three account First National Boston, pay Midland Bank
seventeen hardred fortytwo pounds seven and on, account Bankers
Trust. This makes total fourteen thousand four hundred fifty pounds
and grand total of two hundred thousand pounds, cable when payments
effected.

Sept. 24s

Cablegram to London.
Message 39:
Our message 37 held up British censor, communicating
with State Department, cable when received. Director Hotel Excelsior Rome writes Italian banks refuse reimburse them for Association cheques cashed, please do needful.

Sept. 24:

Cablegram to London.
Message 40s Eighty million subscribed, believe balance gold fund
will come. Possibility Vanderlip an I go London next week re
presenting American bankers in negotiations regarding American
credits and handling fund. Believe important you remain meantime.
Use your own judgment about Duanes returning.

Sept. 25:

Cablegram from London:
Message twenty-four, yours thirty-six, payments made except to
Credit Lyonnais account Columbia, which was refused, should this
not be National Provincial. Balance fiftyeight thousand, message
thirtyseven undelivered.

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