860c.516/53: Telegram

The Minister in Poland ( Gibson ) to the Secretary of State

86. My 84, April 22, 6 p.m.5 On March 31st Minister of Finance informed trade commissioner American banks would be subjected to same regulations as Poland banks, especially bank of issue law of March 23, 1920. Stated banks not possessing agreements for conducting business would be required to liquidate and that no new permits would be granted. This decision based on view that Guaranty Trust agreement offers most advantageous method of conducting remittance business and that without intention of creating monopoly it is Government’s desire to turn maximum amount of business through that channel. It is my belief that if Guaranty plan works well next step will be to require liquidation of all other American banks. While this phase has not taken definite form, I assume it would be objectionable to Department as constituting monopoly. Department may wish to give me instructions as to course I should follow if general liquidation is ordered.

  1. Not printed.