Benjamin Strong Jr. to Russell Cornell Leffingwell
Title
Benjamin Strong Jr. to Russell Cornell Leffingwell
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18597
Date
1918 June 15
Description
Benjamin Strong Jr. writes Russell C. Leffingwell on the question of lending the Bank of France additional funds for the war effort.
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
Dear Leffingwell:
I have given more thought to the French situation since talking with you than anything else and have reached a conclusion which you may regard as quixotic, but which I still believe is a wise thing to do.
We must not lose the war for lack of financial courage. This is the time when they must throw their military reserves into the struggle and I believe that a great moral advantage will be given at this critical tiime by throwing our financial reserves into the struggle.
If it will stiffen the resistance to let the Bank of France have one or two hundred million dollars of gold, I would let them have it. The question is will it stiffen the resistance!
It is most difficult to get a correct appraisal of public sentiment, and particularly of the spirit of a nation which is suffering the depression of reverses. We have been through an experience with Russia that discloses the peril of a misunderstanding of that vitat factor of war. If it were left solely to me, I think I would get the very best possible expression of view as to the morale of the French people friom Pershing, Sharpe, the Red Cross people, the Y. M. C. A. people and our own Government representatives in the war councils in France and if these views encourage us to believe that it will have commensurate results, I wouldn’t wait for demands to be pressed but would come forward at once with an offer to build up the reserves of the bank of France, nor would I wait and do this by the gradual process in connection with our purchases of war materials, but I would do it in a large way, courageously, just as the pPresident directed our troops in the brigading arrangement.
Take this for what it is worth. It is my best judgment of what ought to be done.
Very truly yours,
Governor.
I have given more thought to the French situation since talking with you than anything else and have reached a conclusion which you may regard as quixotic, but which I still believe is a wise thing to do.
We must not lose the war for lack of financial courage. This is the time when they must throw their military reserves into the struggle and I believe that a great moral advantage will be given at this critical tiime by throwing our financial reserves into the struggle.
If it will stiffen the resistance to let the Bank of France have one or two hundred million dollars of gold, I would let them have it. The question is will it stiffen the resistance!
It is most difficult to get a correct appraisal of public sentiment, and particularly of the spirit of a nation which is suffering the depression of reverses. We have been through an experience with Russia that discloses the peril of a misunderstanding of that vitat factor of war. If it were left solely to me, I think I would get the very best possible expression of view as to the morale of the French people friom Pershing, Sharpe, the Red Cross people, the Y. M. C. A. people and our own Government representatives in the war councils in France and if these views encourage us to believe that it will have commensurate results, I wouldn’t wait for demands to be pressed but would come forward at once with an offer to build up the reserves of the bank of France, nor would I wait and do this by the gradual process in connection with our purchases of war materials, but I would do it in a large way, courageously, just as the pPresident directed our troops in the brigading arrangement.
Take this for what it is worth. It is my best judgment of what ought to be done.
Very truly yours,
Governor.
Original Format
Letter
To
Leffingwell, R. C. (Russell Cornell), 1878-1960
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Benjamin Strong Jr. to Russell Cornell Leffingwell,” 1918 June 15, WWP18597, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.