Basil P. Blackett to the Secretary of the Treasury

Title

Basil P. Blackett to the Secretary of the Treasury

Creator

Basil P. Blackett

Identifier

WWP18782

Date

1920 June 3

Description

Basil P. Blackett writes David F. Houston regarding the purchase of silver on behalf of India.

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

C O P Y

Any reply to this letter should be addressed
to The Secretary,
Treasury,
Whitehall, London, S.W.1
and the following number quoted
F.
260.

I am directed by the Lords Commissioners of His Majesty’s Treasury to address yoju relative to the recent negotiations between the Honorable Albert Rathbone of the United States Treasury, and Mr. Basil P. Blackett of this Department regarding the liquidation of the liability of His Majesty’s Government to the United States’Treasury in respect of the purchase of Pittman silver on behalf of the Government of India, and to inform you that the proposals agreed between Mr. Rathbone and Mr. Blackett (subject to general agreement upon other matters under discussion) have been laid before the Secretary of State for India with a view to the concurrence of the Indian Government being obtained.My Lords have received a reply from the Indian Government expressing agreement in the proposals as a whole. With regard however to the provision that telegraphic notices should be sent to the Federal Reserve Bank of New York reasonably in advance of each and every weekly or other offering of rupee credits by the Indian Government in London or elsewhere in Great Britain, the Indian Government draws attentinon to the rules applying to the sale of bills and telegraphic transfers on India (of which four copies are enclosed herewith) and writes as follows:-“It will apparently be necessary for the Federal Reserve Bank to have its own agent in London for the purpose of submitting tenders and it is suggested that it will be unnecessary for His Majesty’s Government to engage to give notice of each weekly sale to the Federal Reserve Bank in New York. It will be understood that any tender put forward by or on behalf of the Secretary of the United States’ Treasury in connection with the normal offering of drafts on India by the Secretary of State will rank equally with tenders put forward by banks and firms in this country or elsewhere. No preferential treatment is proposed in connection with these sales, and the acceptance, or otherwise, of any tenders on behalf of the Secretary of the United States’ Treasury will be determined on the same conditions as apply to the tenders of other applicants. It will be observed from rule 7 that payment for bills and transfers must be made before the Tuesday next after the day of allotment, and in the event of an allotment being made in respect of the United States’ Treasury it would be convenient that the sterling amount due under the proposed arrangements be paid by Huis Majesty’s Treasury to the Secretary of State’s account at the Bank of England in accordance with the regulations. The matter will be adjusted by the receipt of dollars in New York simultaneously.”I am to ask whom the United States Treasury wouold wish should act as their agent both for the purpose of making tenders and receiving notices.I am to add that it would be convenient to the Government of India that the United States Treasury should give as long notice as possible when they propose to apply for the grant of the special rupee credits to be placed at the disposal of the Federal Reserve Bank at New York at the fixed exchange rate of 48 2/3 cents per rupee.
I am, Sir, Your obedient servant,
(sgd) B. P. BLACKETT

Original Format

Letter

To

David Franklin Houston

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08301.pdf

Tags

Citation

Basil P. Blackett, “Basil P. Blackett to the Secretary of the Treasury,” 1920 June 3, WWP18782, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.