Benjamin Strong Jr. to William Jennings Bryan and William G. McAdoo

Title

Benjamin Strong Jr. to William Jennings Bryan and William G. McAdoo

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18452

Date

1914 August 14

Description

Benjamin Strong Jr. writes to William Jennings Bryan and William G. McAdoo about a proposed method for opening credit for American travellers in England and Europe.

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

Dear Mr. Secretary:-

Referring to our conversation this morning, Mr. W. L. Benedict, of Kidder, Peabody & Co., and Mr. Benj. Strong Jr. President of the Bankers Trust Company, submit the following memorandum statement of a proposed method of opening necessary credits at various points in Europe for the benefit of American travellers who are unable to obtain cash on their letters of credit and travellers’ checks:

The Bankers Committee of New York will direct the Bankers Committee of London to set aside out of the three million dollars gold shipped by the bankers on the Cruiser Tennessee, such specific sums of money as are required to protect guarantees given by the United States government through Ambassadors or Consuls at various points, for the purpose of furnishing cash at those points.

The amounts so set aside in London out of the three millions of gold shipment, will be held subject to the control of Ambassador Page at London, under instructions from the State Department, and will be in addition to the government fund applied to the relief of those whose resources are exhausted.

The State Department could then cable to the American Ambassador at Rome, or to other Embassies or Consulates, directing that the government give its obligation for the amount of money desired at that point for payments on travellers’ checks and credits which would be disbursed by the Ambassadors or Consuls, of ir preferred, through suitable banking agencies appointed by the bankers.

As payments are made out of the funds placed at the disposal of Ambassadors and Consuls or banking agencies, the evidences of payments in the shape of drafts, letters of Credit, or travellers’ checks, will be transmitted to the Ambassador at London, and he, in cooperation with the London committee, will reimburse the government out of the fund set aside in London for that purpose.

We are informed that the office of the London committee is well organized with skilled clerks, and in charge of experienced bankers, the chairman being Mr. F. I. Kent, Vice-President of the Bankers Trust Company, New York City, who has had many years’ experience in handling foreign exchange and letter of credit transactions. Our committee feels every assurance that on the scheme above outlined the government will be fully protected, and these payments can be promptly made.

BENJAMIN STRONG, JR.
Chairman, Committee of New York Bankers.

Original Format

Letter

To

McAdoo, W. G. (William Gibbs), 1863-1941
Bryan, William Jennings, 1860-1925

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08058.pdf

Tags

Citation

Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to William Jennings Bryan and William G. McAdoo,” 1914 August 14, WWP18452, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.