Benjamin Strong Jr. to William G. McAdoo
Title
Benjamin Strong Jr. to William G. McAdoo
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18490
Date
1914 November 2
Description
Banjamin Strong Jr. writes William G. McAdoo regarding opening the London and New York stock exchanges for unrestricted trading.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
Dear Mr. Secretary:
Since our recent conferences with Sir George Paish and Basil P. Blackett, Esq., one member of our committee, Mr. James Brown, has left for Europe.
You doubtless appreciate, as we do quite strongly, that conditions have materially changed since the date when these discussions commenced. Money rates are easier, sterling exchange has declined to a point where it is no longer profitable to export gold, and the market for investment securities has broadened at higher prices.
Our discussions with Sir George Paish and Mr. Blackett resulted in outlining a tentative plan which was discussed as of possible mutual advantage in case it was decided to re-open the London and New York Stock Exchanges for unrestricted trading, and to meet such possible condition as might result in that connection.
So far as we are now advised there is no present intention of opening either of the exchanges to unlimited trading, and we assume that on this account a prompter response to the suggestion has been found impossible.
In view of these facts, would it not be advisable, without breaking the negotiations, to postpone a further discusision for the time being? Conditions will doubtless later enable either interest to determine whether and at what time negotiations may be resumed to mutual advantage.
Respectfully yours,
Since our recent conferences with Sir George Paish and Basil P. Blackett, Esq., one member of our committee, Mr. James Brown, has left for Europe.
You doubtless appreciate, as we do quite strongly, that conditions have materially changed since the date when these discussions commenced. Money rates are easier, sterling exchange has declined to a point where it is no longer profitable to export gold, and the market for investment securities has broadened at higher prices.
Our discussions with Sir George Paish and Mr. Blackett resulted in outlining a tentative plan which was discussed as of possible mutual advantage in case it was decided to re-open the London and New York Stock Exchanges for unrestricted trading, and to meet such possible condition as might result in that connection.
So far as we are now advised there is no present intention of opening either of the exchanges to unlimited trading, and we assume that on this account a prompter response to the suggestion has been found impossible.
In view of these facts, would it not be advisable, without breaking the negotiations, to postpone a further discusision for the time being? Conditions will doubtless later enable either interest to determine whether and at what time negotiations may be resumed to mutual advantage.
Respectfully yours,
Original Format
Letter
To
McAdoo, W. G. (William Gibbs), 1863-1941
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to William G. McAdoo,” 1914 November 2, WWP18490, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.