550.S1 Monetary Stabilization/56: Telegram
President Roosevelt to the Acting Secretary of State
[Received June 29—3 a.m.]
15. Have read your 23, June 27, 9 p.m.83 and also Acheson’s of today. Suggest you discuss following with Acheson, Baruch and others and if no serious disagreement send it84 as early as possible to delegation.
“Number 23 and have discussed it with Washington. I fully appreciate the importance attached to staying on gold by France, Holland and Switzerland but I still believe this importance is distinctly debatable from point of view of an ultimate permanent settlement. [Page 661] For example, if France goes off gold it will be very difficult for her to finance her continuing deficits and this will result in realistic efforts to balance her budget. It is also questionable whether under any circumstances they will find it advisable or possible to stay on gold. I do not greatly fear bad set-back to our domestic price level restoration even if all these nations go off gold.
But the most important fact is that our London delegation is absolutely right in distinguishing between government action at Conference and private action by central banks. The United States must continue to make this distinction clear and that the Treasury Department cannot participate in the exercise of form of tripartite action.
In view of all circumstances at this time I suggest that special care be taken by delegation and Moley and those close to it to insure no publicity of any kind except through Secretary Hull. Please read this from me to all concerned. Roosevelt”.