Benjamin Strong Jr. to Herbert Hoover
Title
Benjamin Strong Jr. to Herbert Hoover
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18700
Date
1919 July 31
Description
Benjamin Strong Jr. writes to Herbert Hoover about making a payment to the Commission for Relief in Belgium
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Subject
Hoover, Herbert, 1874-1964--Correspondence
Language
English
Text
Hotel Ritz, Paris,
July 31, 1919.
My dear Mr. Hoover:
Your favor of the 31st instant is duly received. My understanding when I was in New York was simply that contained in the cables exchanged between the Treasury Department and the American Mission, to the effect that a portion of the gold had been deposited in your name personally and a portion in the name of the United States Food Administration Grain Corporation and subsequently that the entire amount would be turned over to the Federal Reserve Bank of New York by whoever held the title, and personally I had understood that the whole payment was to be made to the Grain Corporation.
Before I left New York, however, the Guaranty Trust Company made inquiry as to whether we were prepared to make them a payment of $50,000,000 for account of the C.R.B., but we had no instructions and referred them to Mr. Barnes or Mr. Shattuck.
It will doubtless be necessary for us to receive some exact statement as to the division ofnthe funds at a later date when the amount is determined, and I take the liberty of suggesting that the directions be sent us separately as to the exact amount for which accounting must be made to the C.R.B. and the exact amount for which accounting must be made to the Grain DCorporation.
I further understood that instructions had been sent to the National Bank of Belgium and the Nederlandsche Bank to turn over the gold to the Federal Reserve Bank, which I assume you intend as authority to them to make the transfers as rapidly as the gold is checked and paid for. This, as you know, I am arranging to do as promptly as possible and hope to facilitate the matter when I reach Brussels and Amsterdam.
What you mentioned in regard to a misunderstanding by the Treasury Department is entirely unknown to me and I am cabling to the Bank to make inquiry and reply at once.
Faithfully yours,
P.S. Since dictating the above I find duplicate original of your letter of June 24, addressed to Mr. Davs, stating that 290,000,000 marks held by the National Bank of Belgium and 200,000,000 marks held by the Nederlandsche Bank were deposited in your name as President of the United States Food Administration Grain Corporation and 210,000,000 marks in the Nederlandsche Bank in your own name personally. Your letter of June 27, addressed to Mr. Davis, states that of the 150,000,000 marks additional deposited by the Reichsbank 30,000,000 marks were allotted to you and that the proceeds are to be paid to the United States Food Administration Grain Corporation, so that I understand from this correspondence that as to 520,000,000 marks we would account to the United States Food Administration Grain Corporation and as to the 210,000,000 marks we would account to the Commission for Relief in Belgium if we were correct in assuming that the deposit in your name personally was for account of the CRB.
July 31, 1919.
My dear Mr. Hoover:
Your favor of the 31st instant is duly received. My understanding when I was in New York was simply that contained in the cables exchanged between the Treasury Department and the American Mission, to the effect that a portion of the gold had been deposited in your name personally and a portion in the name of the United States Food Administration Grain Corporation and subsequently that the entire amount would be turned over to the Federal Reserve Bank of New York by whoever held the title, and personally I had understood that the whole payment was to be made to the Grain Corporation.
Before I left New York, however, the Guaranty Trust Company made inquiry as to whether we were prepared to make them a payment of $50,000,000 for account of the C.R.B., but we had no instructions and referred them to Mr. Barnes or Mr. Shattuck.
It will doubtless be necessary for us to receive some exact statement as to the division ofnthe funds at a later date when the amount is determined, and I take the liberty of suggesting that the directions be sent us separately as to the exact amount for which accounting must be made to the C.R.B. and the exact amount for which accounting must be made to the Grain DCorporation.
I further understood that instructions had been sent to the National Bank of Belgium and the Nederlandsche Bank to turn over the gold to the Federal Reserve Bank, which I assume you intend as authority to them to make the transfers as rapidly as the gold is checked and paid for. This, as you know, I am arranging to do as promptly as possible and hope to facilitate the matter when I reach Brussels and Amsterdam.
What you mentioned in regard to a misunderstanding by the Treasury Department is entirely unknown to me and I am cabling to the Bank to make inquiry and reply at once.
Faithfully yours,
P.S. Since dictating the above I find duplicate original of your letter of June 24, addressed to Mr. Davs, stating that 290,000,000 marks held by the National Bank of Belgium and 200,000,000 marks held by the Nederlandsche Bank were deposited in your name as President of the United States Food Administration Grain Corporation and 210,000,000 marks in the Nederlandsche Bank in your own name personally. Your letter of June 27, addressed to Mr. Davis, states that of the 150,000,000 marks additional deposited by the Reichsbank 30,000,000 marks were allotted to you and that the proceeds are to be paid to the United States Food Administration Grain Corporation, so that I understand from this correspondence that as to 520,000,000 marks we would account to the United States Food Administration Grain Corporation and as to the 210,000,000 marks we would account to the Commission for Relief in Belgium if we were correct in assuming that the deposit in your name personally was for account of the CRB.
Original Format
Letter
To
Hoover, Herbert, 1874-1964
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Herbert Hoover,” 1919 July 31, WWP18700, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.