The Secretary of State to President Wilson
My Dear Mr. President: As the letter of Mr. James B. Forgan, which is enclosed to me by Mr. Hamlin, deals directly with the general policy of the Government I feel that before answering it I should be advised as to your wishes. I therefore enclose Mr. Hamlin’s letter11 and a copy of Mr. Forgan’s.12
I think we must recognize the fact that conditions have materially changed since last autumn when we endeavored to discourage the flotation of any general loan by a belligerent in this country. The question of exchange and the large debts which result from purchases by belligerent governments require some method of funding these debts in this country.