T E L E G R A M S
August 3:Telegram to Hon. WG McAdoo, Secretary of Treasury, from Benjamin Strong Jr.Will meet Mr. LansingRobert Lansing, State Department, Metropolitan Club, Washington, nine o’clock tonight regarding arrangement for foreign travelers I discussed with you. Would very much appreciate your assistance. Can you join us there or have a representative? Must return on midnight train. Please wire answer.
August 4:Telegram from WG McAdoo, Washington, D. C. , to Benjamin Strong Jr.Benjamin Strong Jr. C/o C. S. Hamlin, Sub-Treasury, New York.Your telegram received. The PresidentWoodrow Wilson sent a special message to the Congress at two o’clock 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 accomplish said purpose. The money is to be used not only for the relief of the destitute, but in the form of advances to citizens who may reimburse the Government on 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 shipper’s risk. Our idea is to send the money in one of our naval vessels. We hope for prompt action by the Congress. The Secretary of State and I are going before the Appropriations Committee of the Senate at four o’clock this afternoon, and shall appear before the Appropriations Committee of the house tomorrow morning at half past ten.
August 5:Telegram to Adolph C. Miller, C/o Treasury Department, Washington, D C., from institutions mentioned below.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 or 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 to Hon. WG McAdoo, Secretary of the Treasury, Washington, D. C., from Benjamin Strong Jr.Personal intimations have just reached me that word has been received in Washington 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 gone 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. What we want to do is to insure that the shipment is made to responsible people who have facilities to conduct the business.
August 6:Telegram from WG McAdoo to Benjamin Strong Jr.Your telegram received; also telegram signed by Farmers Loan and Trust Co., Brown Brothers and Co., Guaranty Trust Co., Kidder, Peabody & Co., National Bank of Commerce, American Express Company, J. 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 10: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’ Cheques 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 Breckinridge on board the Tennessee, requesting him to send a wireless to Mr. Kent, informing Mr. 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 11:Telegram from WG 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.
August 11:Telegram to Hon. WG McAdooWilliam G. McAdoo, Secretary of the Treasury, signed Benjamin Strong Jr.Suggest inviting Max May, of Guaranty Trust Company; John E. Gardin, of National City Bank; Henry Ickelheimer of Heidelbach, Ickelheimer & Co., Adolph Pavenstedt of G. Amsinck & Co., all members of committee of New York Bankers now engaged in investigating foreign exchange situation; also James Brown of Brown Brothers.
August 11:Telegram to Hon. WG McAdooWilliam G. McAdoo, Secretary of the Treasury, from Benjamin Strong Jr.Referring my previous wire, suggest inviting William L. Benedict, of Kidder, Peabody & Company, New York, on account of their important foreign connections.
August 11:Telegram fromWG McAdoo to Benjamin Strong Jr.Have invited representatives of the firms you suggest. Thanks.
August 13:Telegram from WG McAdoo to Benjamin Strong Jr.It was the distinct understanding that the bankers in New York represented by you should take care of American travelers in Europe holding unexhausted Letters of Credit, and to enable you to get funds to them, you were permitted to send a committee on board the Tennessee and also to have transported free of cost three million dollars of gold for this purpose. It was understood that the government would advance money to take care of American citizens in Europe, who had exhausted their Letters of Credit and had no other available means. For this purpose one million, five hundred thousand dollars of gold was sent on the Tennessee in charge of Treasury agents. Since that time requests have come from several of the embassies to have funds transferred to them by cable. This has been done in the case of London, Paris, Rome and Berne, Switzerland, the government having agreed reimburse the banks making such advances out of the gold shipped on the Tennessee. It now transpires that many Americans holding unexhausted Letters of Credit are seeking and have secured from our embassies advances on such Letters or Travelers’ Cheques. I am consenting that this be done upon the condition only that all such advances against Letters of Credit or Travelers’ Cheques shall be repaid to the American Embassadors out of the bankers’ funds now on board the Tennessee immediately upon the arrival in Europe, or through any other means available to the bankers. Unless this is done, the Treasury funds will be exhausted in making advances upon bankers’ Letters of Credit, and will not be available for the relief of destitute Americans. Congress made the appropriation for the relief of destitute Americans only. Today I have a request from the State Department that we place one hundred twenty-five thousand dollars to the credit of the White Star Line in Naples, to be advanced against Letters of Credit or Travelers’ Cheques. I cannot sanction this payment to the White Star Line except upon the express condition that the bankers will reimburse the Treasurer immediately upon arrival in Europe for all advances made by the White Star Line upon Letters of Credit or Travelers’ Cheques, or that the bankers reimburse the Treasurer promptly through some other available channels. I understood also that Messrs. Morgan, Harjes and Company, Paris, had been put in possession of 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 may be until the Tennessee arrives in Europe. It is most important to keep 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.
M I S C E L L A N E O U S C A B L E G R A M S
August 5:Cablegram to Ambassador Page, London, from Secretary of State.Congress today appropriated $2,500,000 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 $300,000 is needed immediately to relieve Americans on the Continent who are in great distress. The Secretary of the Treasury is sending you by cruiser Tennessee, sailing August sixth, $300,000 in gold. Please advise Kent of this fact, whereupon he will arrange to place $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 England or on the Continent who need it, arranging, 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 pay the same out of this fund. You should take from every one to whom advances are made an obligation to reimburse the Government as soon as possible. Please cable fully and as frequently as possible the steps you take. For your information $1,200,000 additional will go on the Tennessee, to be disbursed under direction of Government representatives who accompany the ship.
August 9:Cablegram to American Legation, Berne, Switzerland, from W. J. Bryan.Yours August 5th 7 P. M. Treasury will deposit tomorrow $50,000 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 giving their permanent American address. Secure reimbursement of advances by assignment of Letters of Credit, Travelers’ Cheques or other money demands, or in any way practicable. Where no security is possible, necessary advances may be made on receipt and personal obligation to reimburse. You will submit account to Secretary of State for all amounts so advanced, supported by obligations and securities to be delivered to the Treasury Department with report. Notify consuls and delegate authorities to them use part of this fund in your discretion, but in strict accordance with foregoing instructions. For better co-ordination 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.
August 10:The reply to cablegram to American Legation, Berne, Switzerland, stated that it would not be satisfactory to have the credit opened up to the American Ambassador, but it must be a credit to the Banque Nationale Suisse, and that has been done.
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 Secretary 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 Travelers’ 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.”
August 15:Cablegram to Government’s representative at Lisbon from State Department, Washington.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 delivery to Treasury Department with 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 , Waldorf 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 to Government’s representative at Madrid, Stockholm and Copenhagen from State Department, Washington.United States authorities guarantee of your drafts for equivalent $ – – – – – -. 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 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 delivery to Treasury Department with report. Notify 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, Waldorf 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 to (American Embassy) Thomas Nelson Page, Rome, from State Department.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 Hotel, Chairman. London Committee will advise you of each credit arranged 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 to Consul General, Naples, from State Department.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 amount of gold to secure Government for guaranty. Convey this cable to London Embassy and ask for detailed directions.
August 15:Cablegram received at Washington from Berlin, via Copenhagen, addressed to Secretary of State, Washington.Answering yours ninth, Germany will allow entrance “Tennessee” with gold. Is allowing Americans to leave as fast as train service restored. If Germany blackades any coast will allow Americans to leave. If you pay German Embassy, Washington, 100,000 gold will pay Embassy here corresponding amount in gold, providing you approve proposed rate of exchange of four Marks nineteen three quarters equalling one dollar. Deutsche Bank will give me credit up to five million Marks, provided United States Government deposits equal sum with its correspondents New York. (Signed) Gerard, Berlin.
August 17:Cablegram from Bankers Committee, Falmouth, to Benjamin Strong Jr..English Committee instructs gold shall not leave Tennessee without insurance covering from ship to Bank of England. Commanding Officer Tennessee demands receipt on deck before delivery gold to be lightered by what we consider adequate ships launch to Falmouth transhipped by American Express to Bank of England. Do policies cover to Bank of England? Reply by cable Tennessee Falmouth quickly as responsibility has been placed on us.
August 17:Cablegram to Bankers Committee on board U. S. Cruiser Tennessee, Falmouth, England, from Benjamin Strong Jr..Cablegram received. Gold insured to place of delivery in London.
August 18:Cablegram from Grier and Gibson, Falmouth, to Mr. StrongGold goes to London tonight, arriving there Tuesday morning.
August 18:Cablegram 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 to American committee, Berne, Switzerland, from 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 if so, how much?
