Herbert Hoover to Woodrow Wilson
Title
Herbert Hoover to Woodrow Wilson
Creator
Hoover, Herbert, 1874-1964
Identifier
WWP19165
Date
1917 August 24
Description
After consulting with William McAdoo, Herbert Hoover writes to Woodrow Wilson concerning the Food Administration Grain Corporation.
Source
Hoover-Wilson Correspondence, Hoover Institution, Hoover Institution Archives, Stanford, California
Publisher
Woodrow Wilson Presidential Library & Museum
Subject
Wilson, Woodrow, 1856-1924--Correspondence
Hoover, Herbert, 1874-1964--Correspondence
Language
English
Text
1-H-1
Dear Mr. President
In respect to the Treasury method of handling funds for the Food Administration Grain Corporation, I have now had the pleasure of an interview with Mr. McAdoo and his staff and I understand they are in agreement with me that the normal Treasury method of handling funds is not applicable to this operation.
The prime reason for the formation of the Grain Coproration, as distinguished from departmental handling, was the necessity for the Grain Corporation to buy and sell grain on a large scale on the lines of normal trade custom, and in connection with these operations to borrow money on grain in warehouses, to draw bills of exchange, etc.
Our conception of the financial arrangement to be be made has always been that the interest of the Treasury ended when the capital stock of the Grain Corporation had been subscribed. I am only too anxious to secure all the safeguards in the shape of audits, but the normal form of Treasury audit would require the passing upon the purpose for which each sum of money was spent and as in this case the money would be expended together with the borrowed moneys and resources from the Allies, the present system of audit would be wholly inapplicable.
I would indeed be gratified if the Treasury would set up some sort of an engine in the shape of an inspection of the Corporation’s operations at periodic intervals. If you are in accord with the above, you will understand that it would be unnecessary to ussue the executive order outlined to you by Mr. McAdoo. I am also under the impression that this method subject to detailed working out is now agreeable to Mr. McAdoo and his assistants.
I remain,
Your obedient servant,
[Herbert Hoover]
Dear Mr. President
In respect to the Treasury method of handling funds for the Food Administration Grain Corporation, I have now had the pleasure of an interview with Mr. McAdoo and his staff and I understand they are in agreement with me that the normal Treasury method of handling funds is not applicable to this operation.
The prime reason for the formation of the Grain Coproration, as distinguished from departmental handling, was the necessity for the Grain Corporation to buy and sell grain on a large scale on the lines of normal trade custom, and in connection with these operations to borrow money on grain in warehouses, to draw bills of exchange, etc.
Our conception of the financial arrangement to be be made has always been that the interest of the Treasury ended when the capital stock of the Grain Corporation had been subscribed. I am only too anxious to secure all the safeguards in the shape of audits, but the normal form of Treasury audit would require the passing upon the purpose for which each sum of money was spent and as in this case the money would be expended together with the borrowed moneys and resources from the Allies, the present system of audit would be wholly inapplicable.
I would indeed be gratified if the Treasury would set up some sort of an engine in the shape of an inspection of the Corporation’s operations at periodic intervals. If you are in accord with the above, you will understand that it would be unnecessary to ussue the executive order outlined to you by Mr. McAdoo. I am also under the impression that this method subject to detailed working out is now agreeable to Mr. McAdoo and his assistants.
I remain,
Your obedient servant,
[Herbert Hoover]
Original Format
Letter
To
Wilson, Woodrow, 1856-1924
Files
Citation
Hoover, Herbert, 1874-1964, “Herbert Hoover to Woodrow Wilson,” 1917 August 24, WWP19165, Hoover Institute at Stanford University Collection, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.