861.51/74½
The Acting Secretary of State to President
Wilson5
Washington,
October 20, 1914.
Dear Mr. President: I enclose you a copy of a
memorandum which was left me to-day by the Russian Ambassador.
This is very much like the proposal Mr. Straight6 made the other day in regard to French Treasury
notes, concerning which I spoke to you. Of course I can see that these
proposed obligations of the Russian Treasury amount practically to
promissory notes, which could be used in paying for supplies purchased
in this country.
This proposition seems different to me from a war loan, so far as its
form is concerned, but there is no doubt it is a loan or a series of
loans to the Russian Government.
I told the Russian Ambassador that I would present this memorandum to you
for your consideration.
Very sincerely yours,
[Enclosure]
Memorandum by the Russian Ambassador (Bakhméteff)
In consequence of the present situation in Europe our manufacturers
are compelled to purchase large quantities of goods in the United
States. The American manufacturers do not sell goods in any other
way than cash American Port (F. O. B.). In endeavour to help our
manufacturers in the matter of payments for the purchased goods and
not having sufficient funds in the United States our Government
would like to issue short term obligations of the Imperial Russian
Treasury (to be issued in dollars). The amount of the issue and the
interest rate are to be determined as soon as the Federal Government
will declare themselves favourably (not to have any objections to
the issue).
It is understood that this issue will help both sides, American
manufacturers as well as Russian manufacturers.
