LF Sailer to Nicholas Kelley
Title
LF Sailer to Nicholas Kelley
Creator
LF Sailer
Identifier
WWP18784
Date
1920 July 22
Description
LF Sailer replies to a letter sent by Nicholas Kelley, regarding a silver purchase proposed by the British Indian government.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
Dear Mr. Kelley:
Your letter of July 16 has been received enclosing a memorandum of a proposed agreement between the United States Treasury and the British Treasury concerning the re-payment by the latter of certain of its obligations held by the United States Treasury in the amount of $122,017,633.57, and considered as having been given by the British Treasury for advances made to it by the United States Treasury in order to enable it to purchase silver under the Pittman Act.
We note that sub-division 3 of the proposed agreement provides that the British Government will arrange to make available rupee credits to the United States Treasury under the conditions outlined therein which provide for the arrangements being carried out by this bank.In reply we write to inform you that in the event of an agreement being entered into between the two Treasuries, either in the form of the memorandum or in the form of the memorandum as amended with regard to notices, we shall be glad to act under the agreement in behalf of the Treasury Department if the Secretary of the Treasury shall so request us.With regard to our naming an agent in London for the purpose of making tenders and receiving notices of sales of rupees, we should prefer to have the Bank of England act for us in that capacity. However, before giving you a definite answer, it will be necessary for us to communicate with the Bank of England and ascertain whether they would be willing to do so. If the Treasury Department desires us to communicate with the Bank of England at this time, we request that you advise us to that effect.
Deputy Governor.
Your letter of July 16 has been received enclosing a memorandum of a proposed agreement between the United States Treasury and the British Treasury concerning the re-payment by the latter of certain of its obligations held by the United States Treasury in the amount of $122,017,633.57, and considered as having been given by the British Treasury for advances made to it by the United States Treasury in order to enable it to purchase silver under the Pittman Act.
We note that sub-division 3 of the proposed agreement provides that the British Government will arrange to make available rupee credits to the United States Treasury under the conditions outlined therein which provide for the arrangements being carried out by this bank.In reply we write to inform you that in the event of an agreement being entered into between the two Treasuries, either in the form of the memorandum or in the form of the memorandum as amended with regard to notices, we shall be glad to act under the agreement in behalf of the Treasury Department if the Secretary of the Treasury shall so request us.With regard to our naming an agent in London for the purpose of making tenders and receiving notices of sales of rupees, we should prefer to have the Bank of England act for us in that capacity. However, before giving you a definite answer, it will be necessary for us to communicate with the Bank of England and ascertain whether they would be willing to do so. If the Treasury Department desires us to communicate with the Bank of England at this time, we request that you advise us to that effect.
Deputy Governor.
Original Format
Letter
To
Nicholas Kelley
Collection
Citation
LF Sailer, “LF Sailer to Nicholas Kelley,” 1920 July 22, WWP18784, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.