550.S1 Monetary Stabilization/70: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State
[Received July 1—9:20 a.m.]
86. For Baruch and Woodin from Swope. Moley, Sprague and I convinced statement though innocuous is essential to continuance of [Page 672] Conference and to save America from onus of break-up. We are delighted you, Woodin and Acheson are in approval. My suggestions as to background to accompany statement about President’s approval are:
It is general statement in no way binding. It does not concern the Government but is merely permissive to central banks to act if necessary to check excessive speculation against currencies of the various nations. In no way whatsoever is it even an approach to stabilization. That is definitely excluded. There is to be no control of trend but only, if at all, monetary action against speculative pressure and some experts believe that even this step will not be needed. The matter is being considered quite apart from the Conference which is not dealing in it but which, once freed of the obstacle in its path, can go on to its set tasks. It is important to point out that statement largely duplication of Pittman resolution.5 It may be worth noting that America and Britain as non-gold countries took their stand together as apart from the gold bullion countries. London will probably be all right in press treatment but if Paris attempts to give wrong color it should be checked by statement from Treasury and we will do same over here. Regards. [Swope.]
- Journal of the Monetary and Economic Conference, p. 66.↩