550.S1 Monetary Stabilization/43: Telegram
President Roosevelt to the Acting Secretary of State 72
[Received 6:20 p.m.]
10. Referring to Warburg’s 57 of June 22d and Cox’s 58 of June 22d am inclined to think my suggestion of taking steps to prevent pound from fluctuating violently above 4.25 might be helpful. This could be effected through Federal Reserve Banks but should be limited to violent upward fluctuations. Will you talk this over with Baruch and Woodin and if you all think advisable please prepare draft of further message. On other hand situation seems quieting down so well that anything further may be unnecessary.
Please send following for Hull and Cox:
“Delighted way things are going. Your statements were well received here. The real trouble of first week lay I think with French and British press trying deliberately to discredit us for certain clear objectives.
Am inclined to think we should lay further stress on absolute necessity of every nation large and small living within income and starting to reduce national debts. Monetary stabilization is impossible for any nation which continues to go deeper into debt unless additions to debt are definitely covered by specific and adequate taxes as we have done in special session.
Do not worry about attitude of a few papers like New York Times. Prestige of delegation is generally excellent at home and most people are saying you were all clever enough to avoid an obvious trap.”
- Substance transmitted to Assistant Secretary of State Moley, aboard S. S. Manhattan, June 26, 6 p.m. Quoted portion transmitted to the Chairman of the American delegation as telegram No. 69, June 24, 8 p.m.↩