Benjamin Strong Jr. to Russell Cornell Leffingwell

Title

Benjamin Strong Jr. to Russell Cornell Leffingwell

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18734

Date

1919 August 3

Description

Benjamin Strong Jr. writes Russell C. Leffingwell regarding America's position in the area of international finance.

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

My dear Russell,
Up to now I have been sending you some letters in the nature of running comments and impressions, which I have been careful to warn you were not in any way conclusions, but the time has come when I should send you something more in the nature of a definite opinion.This cannot be done satisfactorily in the limited time I have and without more assistance, but I have dictated the enclosed memorandum giving what I believe epitomizes the more important features of the situation. In this memorandum I have not emphasized what is possibly the most important of all considerations. The prestige and influence of the United States government and of out people in Europe today is tso great that it may be employed in bringing about stable political conditions and economic recovery reasonably promptly, provided we are willing to assume the leadership and give prompt help.In my opinion treaties would be signed promptly, disputes and discords would either disapear or be subjected to control and the organizations to deal with financial and business rehabilitation would promptly be created and begin to function wif the United States would take the leadership and furnish needed assistance.Every report reaching us here indicates that the attitude of the Senate and possibly a growing public opinion at home leans toward withdrawing from the European situation and allowing Europe to flounder. I can only believe that we do not realize our power, and am unwilling to believe that once we realized it we would be unwilling to exercise it.We cannot wait to have finance ministers, ambassadors and others come to Washington begging for help. We must take an affirmative and constructive attitude and invite them to come, and we must likewise, where influence can be exerted, direct it toward furnishing help.This afternoon I read the memorandum to Mr. Polk. His principal comment was that I had not sufficiently emphasized the possibilities of restoration in Europe through the exercise of our influence backed by financial and material aid. Objection and discord in formulating plans will disappear in the face of this attitude by us.At his suggestion I am sending you a cable paraphrasing the memorandum and he is proposing to send a cable to Mr.& Lansing urging that it be considered by the President.Of course I realize the many difficulties which exist at home.I am not willing now to say as Mr. Vanderlip did that if we do not give aid Europe is going to collapse, nor have I modified greatly my belidef frequently expressed to you, that there is much exaggeration in the statement of figures of European requirements. What has not been exaggerated, however, is the need for prompt help, even though it be but a fraction of what is estimated by some recent visitors to Europe.In conclusion, let me say that you may rely with complete assurance that in no respect is the memorandum enclosed an exaggeration, but it is rather a moderation of all points and representations which have been made to me by many responsible people.In a recent letter from Jay, referring to money leaving the United States in the hands of emigrants, he makes the following statement:This indicates a somewhat passive attitude on our part, and I believe a much more affirmative and aggressive attitude is justified.I hope this memorandum may be of some assistance to you.

Original Format

Letter

To

Leffingwell, R. C. (Russell Cornell), 1878-1960

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08272.pdf

Tags

Citation

Strong, Benjamin, 1872-1928 , “Benjamin Strong Jr. to Russell Cornell Leffingwell,” 1919 August 3, WWP18734, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.