File No. 861.51/498a
The Acting Secretary of State to the Consul at Archangel (Cole)1
[From War Trade Board:]
20. For your information we approved the following submitted to us by Russian Embassy as a portion of cable they were sending to Omsk government:
All efforts of the United States Government to prompt industrial and commercial interests to organize for the import to and export from Russia are at present being seriously hampered by the lack of a stable monetary unit in Russia, which creates the necessity of taking great risk in all commercial transactions. Desiring to stimulate private initiative and to give Russian and American firms the possibility of governing themselves by stable and positive data in transactions between the United States and Russia, the United States Government, through a corporation formed by it on the basis of a private corporation, [Page 94] intends to meet the temporary emergency by issuing trade notes at parity of fifty cents to ruble. These trade notes will not purport to be currency such as a government would issue, but it is expected will be acceptable in payment for purchase of goods imported from the United States, and furthermore may be exchanged against drafts on New York, London, Paris, and Tokyo. The trade notes will penetrate into masses of population, for example, for payments of purchases effected by the Czecho-Slovaks or American forces in Russia, and for merchandise acquired for export; likewise through granting of credits to individuals, cooperative associations, Zemstvos or other organizations with satisfactory collateral as security. The issue will not in the beginning exceed $5,000,000, that is, Rs. 10,000,000. Later on the amount of currency to be issued will be regulated by amount of commodities sent over to Russia, by the necessities of monetary circulation, etc.
The fundamental principles of this issue are in harmony with the plans of the Embassy outlined in a memorandum presented to the Federal Government in August, copy of which has been given Sookine.1 The need for this issue will in the opinion of the Government of the United States, exist until after official recognition of a government in Russia, and the establishment of a stable monetary unit, at which time appropriate measures will be at once considered for the retirement or conversion of these certificates. Until this time an issue such as is planned is, in the judgment of the United States Government, in which we concur, the only means able to give an impulse to the development of trade between America on the one hand and Siberia, Murman, Archangel, and other parts of Russia on the other.
Being invited to discuss this plan, we pointed out the advisability of acquainting the Siberian government with this plan before any steps were actually taken concerning the circulation even of certificates of this character. Having conferred with the Government of the United States, we find that it, having in view solely the interests of Russia in issuing these certificates, is anxious to receive all constructive suggestions which the Omsk government would have to offer in this respect, and it has expressed the hope that there may be no delay in furthering economic assistance to Russia through the adoption of this plan.
Please discuss this plan and communicate your opinion for transmission to the United States Government.
- The same, on the same date, to the diplomatic representatives in Great Britain (No. 3289, for Sheldon, No. 1787), Japan (No. 151), and Sweden (No. 1355, for Owen, No. 120), and to the Consul at Vladivostok (for Heid, No. 44). File Nos. 661.119/3420, 304g, 304h, and 861.51/451c.↩
- John Sookine, formerly secretary attached to the Russian Embassy at Washington, was at this period connected with the Kolchak government at Omsk.↩