Benjamin Strong Jr. to Woodrow Wilson

Title

Benjamin Strong Jr. to Woodrow Wilson

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18614

Date

1918 November 26

Description

Benjamin Strong Jr. writes to President Woodrow Wilson expressing his concern over the resignation of Secretary of the Treasury William G. McAdoo

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

Dear Mr. President:
My only justification for writing you this personal letter is the concern which I can not help feeling as to the Government’s financial program following Secretary McAdoo’s resignation, and I venture to write you this frank letter containing an expression of my own views with the hope that you will realize that it is dictated solely by a desire to be of some slight service in this matter.
Secretary McAdoo has accomplished, in his administration of the Treasury, a most wonderful achievement, largely because of his courage and his full appreciation of the sound monetary and financial principles which must govern the financing of the war if our country is to escape such disastrous consequences as arose through the mis-handling of our finances during the Civil War, and such as I fear will be encountered by some of the belligerent nations of Europe in future years. He is leaving his office I am sure from necessity which is controlling, at a time when our problems are increasing in difficulty, rather than the reverse, and when it will require a strong hand and sound judgment to save us from the undoing of much of his good work of the past. The importance of the program of tax legislation he has fully realized. I am not so sure that his successor will. The future borrowings of the Government for at least six months, and possibly longer, will probably be of larger amount than at any period, and the difficulty of placing these loans will now be vastly greater than the difficulties encountered during the period of active hostilities. There is owing to us eight billion dollars by foreign governments, the terms for the adjustment of which indebtedness have not yet been settled, and, upon the settlement of these terms very much of our future prosperity will depend. Problems will shortly arise in the international exchanges growing out of the tremendous change in our international trade, which can only be dealt with by one fully familiar with the development and history of the affairs of the Treasury Department up to the present time. As a result of the elections, we are, unfortunately, confronted with the deplorable situation where an adverse, and possibly hostile political party will be in control of Congress and will not continue a sympathetic support of the policies of the administration. We may be threatened by a revival of demands for a protective tariff, which would menace our future prosperity and financial security. It is not impossible that, strive as you may to avoid such a development, the results of the peace conference will not protect the world against a reversion to a species of commercial barbarism in the strife which may be expected to arise in the effort of the crippled nations of Europe to reestablish and rehabilitate their foreign business.
All of these various difficulties reach into and effect our domestic financial position, and in an important way our international financial relations. Probably you understand quite fully that my own relations with Secretary McAdoo and his associates and, generally, with the Treasury Department, have afforded me a knowledge of the workings of the department, of the men in the organization, and of the problems with which it has dealt, of more intimate a nature than almost anyone outside of the department itself. The object of this letter is, therefore, most respectfully to urge upon your attention the grave necessity that Secretary McAdoo’s successor shall be a man of the greatest ability that can be found, who would undertake the work still unfinished in the spirit of patriotism and with no other purpose than to see the country secure and fortified against the many dangers which menace ourselves and the whole world.
I am fully aware, Mr. President, that a situation as grave as that with which we are now confronted would seem to demand the appointment of some one who would command the confidence of everyone by reason of a record with which everyone is fully acquainted. It is probably a fact that Secretary McAdoo has been able to command, to a degree never enjoyed by any of his predecessors, the confidence and respect of the bankers of the country. This has been due to his courage, ability and resourcefulness, and, in part, to the admirable selection of associates and assistants that he has made. I know all of them, and know of the unselfish, patriotic spirit in which they have underaken their duties. Believing as I do that no consideration will be allowed to enter into this matter except that of the public welfare, I have become convinced that the interests of the nation will be best served if circumstances permit of the appointment of Mr. Leffingwell to succeed Secretary McAdoo. He has carried a very large share of the burden of that office during the period when Secretary McAdoo has been in charge of the railroads. Necessarily, he has had a very intimate and direct contact with the Federal reserve banks and generally with the bankers of the country. He commands their respect and confidence. The advantage of appointing someone of his experience and intimate knowledge of these various problems to which I refer outweighs, I believe, every consideration that might be advanced in favor of some other appointment, such, for instance, as the advantage of appointing someone who is better known as a financier and statesman. The chances are that he has not the remotest thought of such an appointment, and were it suggested to him I am inclined to believe that he would not feel qualified to accept it. I am confident, however, that he is fully capable of filling the office; that he will do so with credit to himself and to the department and to the entire satisfaction of the country generally and particularly of the bankers who must be relied upon still for many months to come for unreserved support of the Treasury Department.
You will, I am sure, understand the object of this letter. I have never before felt justified in addressing such a letter to you, and do so now only because of my conciousness of the importance of this matter and of my intimate familiarity with the work of the Treasury Department.
With assurances of my esteem, I beg to remain,

Original Format

Letter

To

Wilson, Woodrow, 1856-1924

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08050.pdf

Tags

Citation

Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Woodrow Wilson,” 1918 November 26, WWP18614, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.