550.S1 Monetary Commission/21: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State
[Received July 14—9:20 p.m.]
133. For the President from Pittman. In our 125, July 12, 5 p.m.,71 we described division of work of committees. Action on resolution opposed by Pittman has been indefinitely deferred but remains on [Page 718] agenda for further consideration of committee of central banks. Subdivision 2 of the Monetary Commission today passed three resolutions72 in open session, namely, recommending consideration by central banks of cooperation with agricultural banks possibly making agricultural credits eligible. Resolution is innocuous and is supported by central Europe.
- Second resolution, that all countries capable of maintaining central banks should establish them.
- Third resolution, that central banks should confer with regard to proper coordination in support of gold countries when such standards are established. All these resolutions were innocuous, were not objected to by American delegation, gave opportunity for unobjectionable speeches, and seemed to satisfy Near East groups.
There will probably be considered by the Monetary and Financial Commission before the plenary session only the following subjects: the gold and silver resolution and individual external debts. Main portion of resolution on last subject provides for creation of boards to represent creditors similar to our law adopted last session. A resolution on this subject will be adopted.
The chief work of the Commission deals with individual commodities in an effort to reduce and equalize production. As Conference will adjourn for some period after the plenary session on the 27th the most that could be expected prior to that time would be adoption of our monetary resolution relative to gold and silver and possibly agreement as to production and regulation of certain specific products and the passage of a resolution relative to external debts. Opposition of Great Britain to increasing price levels through publication will probably defer that subject until an adjourned session. Pittman stated in the meeting on the 10th that the question of monetary base seemed involved in the subject matter of the central bank resolution and therefore should be treated in the same manner as such resolution unless instructed to the contrary.
Pittman’s statement to the Bureau has corrected misapprehension relative to central bank resolution.
All delegations seem peaceful and determined to end present session of Conference on 27th with mutual expressions of happiness and good will. Technical committees will probably be appointed to work during recess. Resolution reconvening Conference somewhere around October 1st will probably be adopted. Bureau may refer to committee for discussion question of monetary base. [Pittman.]