550.S1 Monetary Stabilization/33: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State 69
[Received June 22—3:17 p.m.]
57. For the President from Warburg. Referring my [statement?] this morning’s cable, while the crisis has been overcome and we are now definitely past the point that an agreement for temporary stabilization for the condition precedent to the continuance of the Conference, the situation will again flare up at any time during the Conference if there are violent fluctuations in the dollar rate. It would therefore seem most desirable if without making any declaration whatsoever you could see your way clear to authorize the Federal Reserve banks to take such action to limit fluctuations as may from time to time be desirable and practicable. If this can be done and if as a result of the Conference there could ultimately be devised some method of cooperation to work until it becomes possible to effect permanent stabilization then I believe we are really around this corner. Would you give us your views in regard to this thought? If agreeable should like to have Harrison informed of situation and also of this suggestion and believe he could easily devise method by which it could be carried out. [Warburg.]
- Transmitted to President Roosevelt, aboard U. S. S. Ellis, as telegram No. 10, June 22, 5 p.m.↩