William G. McAdoo to Woodrow Wilson

Title

William G. McAdoo to Woodrow Wilson

Creator

McAdoo, W. G. (William Gibbs), 1863-1941

Identifier

WWP22181

Date

1918 January 2

Source

Library of Congress, Woodrow Wilson Papers, 1786-1957

Text

Dear Mr. President

C O P Y

I received your letter of December 26. I have, of course, cabled Crosby as you direct. I confess, however, that it has been my own view that the Inter-Ally Council must concern itself with matters of this character, and that, if the United States is to bear successfully its part in financing the war, Crosby must be given the support of our own Shipping Board and of our War Department as well as of the Allies in the effort to coordinate demands upon our Treasury. The Inter-Ally Council was organized, so far as my purposes were concerned, with a view to relating the demands for loans to the Allies to the demands for munitions, supplies and ships. Ships are the crux of the whole situation. The United States Treasury can, I hope, meet the demands of the United States and of the Allies, if those demands are limited to expenditures which can be made promptly effective at the scene of war. But expenditures cannot be made effective without the necessary ships, and the question at once arises as to whether or not the Allies shall be permitted to continue to make purchases of supplies, requiring immediate advances by the Treasury for their payment, without reference to the question whether tonnage can be found to send the supplies forward. The same question is presented in relation to the expenditures of our own War Department. According to the best information I am able to obtain, it is unlikely that tonnage will be available to make effective at an early period the military establishment we are organizing here. Unless the demands of the Allied Governments and of the United States itself are coordinated with reference to the shipping problem and the financial problem, I am in grave doubt of the ability of the Treasury to meet the situation. The only organization which gives hope of producing such coordination is the Inter-Ally Council. I feel, therefore, that it is imperative that Mr. Crosby's activities be not limited, but that his hands be strengthened by adding to the American representation of the Council representatives of our War Department, of our Navy Department, of the Shipping Board, and of the Food Administration. The financial problem of the United States is not so much one of resources as it is of the speed with which these resources can be safely mobilized. I have no doubt of the ability of the United States to bear the stupendous burden of financing the war if reasonable time is given for the effort. What gives me grave concern is the expenditure of money without apparent reference to the date when it can be made effective toward winning the war, and the consequent danger that it may be necessary to withhold financial assistance desired for immediate use because of the expenditure of the United States and of the Allies for purposes which cannot be made effective, because of shipping, for many months to come.

With reference particularly to Mr. Crosby's cable concerning the Italian tonnage situation, I am concerned not so much about the method of dealing with the matter as I am about the vital importance of the situation, as presented to Mr. Crosby by the Italian Ambassador in London. May I direct your attention again to that portion of Mr. Crosby's cable (copy enclosed) referring to the critical situation of Italian industries, etc., for lack of shipping? Time being of the essence, it seemed to me that Mr. Crosby's suggestion was a very wise one, namely, that an Inter-Ally Council on Shipping should be formed, even if organized as a temporary expedient until a permanent organization can be effected, of which Mr. Crosby might act temporarily as the head.

Of course, I do not want to cross any of Mr. Crosby's wires, and if he has the matter in hand and an organization can be effected quickly to meet the situation, that would, of course, satisfy all that I have in mind.

The impressive fact is this: That the credits we are asked to extend to Great Britain, Italy and France must be predicated upon the ability to ship the supplies, materials, etc., which those credits are to purchase in America. Therefore, unless the shipping situation is considered along with the application for such credits, it is impossible to determine them intelligently. Mr. Crosby ought to be put in position quickly to consider credits with relation to the ability to ship supplies, as well as to consider credits with relation to the ability to secure the supplies themselves in our markets.

I am sorry to trouble you with this again, but the matter is of such gravity that I am obliged to beg your further consideration of it.

(Signed) WG McAdoo.
The President, The White House.

Original Format

Enclosure

To

Wilson, Woodrow, 1856-1924

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/05/WWI0906B.pdf

Collection

Citation

McAdoo, W. G. (William Gibbs), 1863-1941, “William G. McAdoo to Woodrow Wilson,” 1918 January 2, WWP22181, World War I Letters, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.