550.S1 Monetary Stabilization/54: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State 77
[Received June 27—7:15 p.m.]
4a. For the President. MacDonald invited the entire American delegation to meet with British delegation this afternoon. He indicated that Holland, France, Switzerland and Belgium had all been to see him today making urgent representations that unless something were done these countries would be forced off gold in immediate future possibly next week and that result of this happening would be to create complete confusion and make further work of Conference exceedingly difficult if not impossible. Among other things that tariff truce would be ipso facto rendered null and void. Naturally we explained that we could not consider any phases of this matter. They said that the present situation was due largely to depression of dollar. We did not agree. Chamberlain with the approval of others of the British delegation inquired whether our Government would in conjunction with others including England take steps to prevent speculation in dollar exchange. Again we stated that we could not consider or deal with such proposal. They indicated that in their judgment this would be helpful to prevent Holland and the other gold countries going off gold standard. Some of our delegation seem to think that this meeting was a step to fix major blame on United States in case the Conference should sag down and terminate. The monetary situation in the gold standard countries is understood to be serious and that anything may happen within next 2 or 3 weeks beginning with Holland almost any day. I and others have constantly assured British, French and other delegations of the keen and sympathetic interest of yourself in their respective countries in connection with their difficulties. I have also in full detail pointed out all the facts about how conditions have been and how they have developed at home in order that delegates of other nations here may fully appreciate your present situation. This I have done from the outset. I am not offering any suggestions pro or con but simply detailing chief facts effecting occurrences today. If you desire any suggestions from Sprague, Warburg or members of delegation kindly advise. Just now this gold standard situation in the countries mentioned is in fact very acute if representations are reliable, and inevitably the effect is to somewhat slow down and confuse our work in the Economic Conference.
[Page 659]Cox, myself and others much appreciated your message of Sunday morning.78 I would not be frank if I did not say that it has been impossible to keep some of our delegates out of the newspapers. Some, too, are not in full sympathy with all of the instructions and this has impaired our efficiency.