File No. 861.51/392
The Department of State to the British Embassy
Memorandum
The Government of the United States has given very careful consideration to the memorandum of October 16, 1918, No. 1148, presented by the British Embassy on the subject of the establishment, in the Archangel and Murmansk districts of Russia, of a new currency redeemable at a fixed rate in pounds sterling.
It is noted that the British authorities at Archangel regard it as essential that immediate action be taken in this regard and that the British Commander in Chief is of the opinion that it would be “disastrous” to delay bringing into force the scheme which has been proposed by the British Government.
The Government of the United States assumes that the British authorities in north Russia, in making their recommendations, do so with full cognizance of the proposal, which it is understood the British Government accepts in principle, that a new currency of inter-Allied character be established with the least possible delay, and that these authorities have considered and dismissed as impracticable the purchase for immediate necessities of limited amounts of rubles of current circulating issues as a temporary expedient pending the establishment of such a currency of inter-Allied character.
If this assumption is correct, and if the local authorities upon whose judgment the British Government relies have acted with full knowledge of the financial plans now being developed among the interested Associated Governments and with an appreciation of the desirability, which appears self-evident, of avoiding adding a new temporary emergency currency to the already confused monetary situation, then the Government of the United States, in deference to the well-considered judgment of those in immediate touch with local conditions and charged with responsibility in respect thereto, would not desire to raise further objection to the plan of the British Government for the immediate issue in north Russia of a new temporary currency redeemable at a fixed rate in pounds sterling. At the same time the Government of the United States can not but express the hope that, if the issue is made, its emergency character will be emphasized and that to this end a time limit be expressed on the face of the currency, specifying that it must be presented within a limited time for redemption, which time in the opinion of the Government of the United States should be short.
The Government of the United States notes the suggestion that as the British authorities are taking the lead in steps to establish a [Page 78] new currency in north Russia, it would be equally natural if the lead as regards these matters in Siberia were taken by the United States. In the judgment of the United States, it would be most unfortunate if a different medium of exchange should be established in north Russia from that which may be established in Siberia, particularly since it is hoped that the assistance inaugurated from Archangel and Vladivostok, respectively, may shortly effect a juncture, in which case the undesirability of having introduced more than one currency would be obvious. The Government of the United States also assumes that this suggestion does not imply a desire on the part of the British Government that distinct “spheres of influence” should be set up in Russia, but merely that practical situations may from time to time throw upon one of the Associated Governments a greater measure of assistance than may fall upon another. The British Embassy is aware that the action of the United States in participating in aid for Russia has been determined only by considerations of the measure of assistance it has been in a position to offer.