Benjamin Strong Jr. to William G. McAdoo

Title

Benjamin Strong Jr. to William G. McAdoo

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18455

Date

1914 September 4

Description

Benjamin Strong Jr. writes William G. McAdoo on regulating the outflow of gold.

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

Sir:
The committee appointed by the conference of Bankers appreciates the desirablility of relieving the present international exchange situation and particularly of regulating the outflow of gold. The Committee at the same time realizes the necessity of promptly meeting the obligations of banks, corporations, and individuals to Europe, thereby maintaining the high credit of this country and demonstrating its ability to meet its obligations.
For this purpose, and with this object in view, this Committee recommends to the Federal Reserve Board the following plan:
That the banks of this countyry, especially those located in Reserve and Central Reserve cities, be requested to contribute to a gold fund of $150,000,000, of which $25,000,000 to be immediately paid into the depository of the Bank of England in Canada, for which a participation deposit receipt will be furnished to each contributing bank. The remainder of the contributed amounts to be subject to call by the New York Committee through the local Committees of the respective cities, and to be paid for in New York Exchange.
Said New York Committee to be appointed by the New York Clearing House Association, and said local Committees to be appointed by the Clearing House Associations of the respective contributing cities. The Committee appointed by the New York Clearing House Association to be charged with the duty of handling the said fund, of fixing the price at which forieign exchange is to be bought and sold and is to make requisition from time to time upon the respective contributing cities through the local committees thereof. Said local committees shall have supervision in the respective cities of the shipments and general withdrawals of gold.
This committee recommends that the Federal Resertve Board take steps to ascertain the amount of gold that will be contributed by the banks in the respective cities, and that it use its influence to have the said banks contribute their proper pro-rata.

Original Format

Letter

To

McAdoo, W. G. (William Gibbs), 1863-1941

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08153.pdf

Tags

Citation

Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to William G. McAdoo,” 1914 September 4, WWP18455, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.