Benjamin Strong Jr. to William G. McAdoo
Title
Benjamin Strong Jr. to William G. McAdoo
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18502
Date
1915 August 25
Description
Benjamin Strong Jr. writes to William G. McAdoo on international trade and the foreign exchange.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
PERSONAL
My dear Mr. Secretary:
Our conference of last Friday seemed to develop that we held substantially the same views in regard to certain features of our foreign commerce and the foreign exchanges which are now developing. These were
First: That our export trade balance has now reached the point where it may exhaust the ability of our foreign customers to make prompt settlement unless special facilities for doing so can be promptly developed.
Second: Failure to develop such facilities might result in a considerable curtailment of our exports, and,
Third: That it might possibly develop that the surviving export trade would be confined to those necessary articles of commerce so urgently required abroad that their purchase would be continued to the exclusion of other commodities which form a large part of our normal export trade.
I think we were also, in agreement that gold payment would be unnecessary and possibly unsound, as tending to expend our own situation at home and likewise to curtail the buying power of our foreign customers. To meet the situation in part, it was suggested that the existing regulation of the Reserve Board governing acceptances should be somewhat modified so as to remove certain restrictions that are now imposed upon that business and develop greater freedom in the arranging of commercial credits between the banks of this country and Europe. To put this suggestion in concrete shape, Mr. Curtis and I have re-drawn Regulation J, now in force, and I beg to enclose two copies of the same herein. This is respectfully submitted for your consideration.
Very truly yours,
Governor.
My dear Mr. Secretary:
Our conference of last Friday seemed to develop that we held substantially the same views in regard to certain features of our foreign commerce and the foreign exchanges which are now developing. These were
First: That our export trade balance has now reached the point where it may exhaust the ability of our foreign customers to make prompt settlement unless special facilities for doing so can be promptly developed.
Second: Failure to develop such facilities might result in a considerable curtailment of our exports, and,
Third: That it might possibly develop that the surviving export trade would be confined to those necessary articles of commerce so urgently required abroad that their purchase would be continued to the exclusion of other commodities which form a large part of our normal export trade.
I think we were also, in agreement that gold payment would be unnecessary and possibly unsound, as tending to expend our own situation at home and likewise to curtail the buying power of our foreign customers. To meet the situation in part, it was suggested that the existing regulation of the Reserve Board governing acceptances should be somewhat modified so as to remove certain restrictions that are now imposed upon that business and develop greater freedom in the arranging of commercial credits between the banks of this country and Europe. To put this suggestion in concrete shape, Mr. Curtis and I have re-drawn Regulation J, now in force, and I beg to enclose two copies of the same herein. This is respectfully submitted for your consideration.
Very truly yours,
Governor.
Original Format
Letter
To
McAdoo, W. G. (William Gibbs), 1863-1941
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to William G. McAdoo,” 1915 August 25, WWP18502, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.