File No. 861.51/379
The Consul at Vladivostok (Caldwell) to the Secretary of State
[Received October 24, 9.13 p.m.]
221. Referring to telegrams Ambassador Morris and others regarding shortage small currency, local branch government bank is willing issue Rs. 15,000,000 small-denomination notes to be released to the public in exchange for [large] ruble notes, the latter being held by a government bank to guarantee small notes. However, it will be necessary for the Allies to bear expense of issuing, which it is suggested might be done by American Bank Note Co. in Peking, government bank stating that they have not funds for this purpose and can not obtain as they are unable to receive money or instructions from the head office in Petrograd. They might obtain from the Siberian government in Omsk but money is very scarce with them so consider long delay certain and the success doubtful. It is also suggested the Allies should supervise issue, bank always holding the large notes which have been paid in for small which would be redeemable on demand in large notes only, no other guaranty to be given. In view of the difficulties encountered constantly by our Army, Red Cross, and Y.M.C.A. in their work in Siberia owing to the shortage small currency, would recommend bearing [Page 79] all or part of the expense of issue subject to settlement later with the Russian Government. On request I met with representatives of British and French High Commissioners and Japanese diplomatic representative and representatives of British, American, and French banks to discuss this question. All agreed report favorably to their governments on the proposal outlined above.
Have you any objections to my attending such conferences in my capacity of consul only?