| Description | These files, apart from the papers relating to the formation of the London Exchange Committee, 1915, cover the measures taken by the Committee to fulfil its functions and include the following subjects:
1916: Placing of dollars and securities in New York for use of HMG, loan through New York by sale of Treasury Bills, supervision of gold movements especially to and from US, watching brief on financial transactions and supplies to or on behalf of enemy, liaison with Royal Commission on Sugar Supply, insurance of gold shipped abroad by the Committee, finance of purchases from abroad by Board of Agriculture and Fisheries, purchase of meal, oats (by War Office), wood, nitrate of soda etc from South America, management of original D50m and other American loans, confidential Government documents on contraband, control of imports, Governor's review of the stoppage of food imports into Germany and his recommendation that import controls are essential to avoid problems with the Gold Standard and Government and Banking credit, D250m loan from J P Morgan & Co, export of gold to Canada to pay for munitions, special provision in Finance Act for large holders of securities, hypothecation of securities in US, Imperial Russian Treasury involvement with Governor over rouble exchange (and business) supervision, Scheme B for the mobilisation of securities of neutral and Canadian countries (Chancellor asked to obtain compulsory powers from Parliament urgently), Negro Savings Banks offer a D20m loan, issue of Metropolitan Water Board Bills in America, Romanian debtors, Treasury (HMT) ask LEC's opinion on poor state of Argentina Exchange and their exchange problems, Treasury suspension of sales of free dollar securities, Foreign Office suggestion that the French Government dissuade French Shipping companies from gold shipments prejudicial to Allied Governments, Royal Commission on Wheat Supply, Cornhill Committee (withdrawal of British Insurance facilities for shipments of gold between neutral countries), issue of HMG, Treasury Bills in US, Governor's disapproval of banks guaranteeing the exchange on American funds deposited with them in London, Committee's urgent request to Chancellor to implement its suggestions to ease the grave financial situation (due to difficulty of obtaining dollars in US) and his reply, Board of Governors of the Federal Reserve System (FRB) statement on Treasury Bills and US banks' investments, British Banks contravening policy on remittance of bills, extreme urgency of increasing in America the gold and dollar resources of the Allies, greater use of dollar securities for regulating Foreign Exchange, curtailment of Government and trade commitments abroad and imports, Andrew Bonar Law's request to Governor for census of foreign securities for sale in US and as collateral for US loans.
1917: Bonar Law advised all British-owned American securities and property should be under control of HMG, American Group loan offer £100m for purchase of food, turpentine, rum, etc, and tractors, Foreign Office warning that Germany is disposing of funds and dollars to neutral European countries (via London) - measures to be taken to counteract UK banks' involvement, embargo - increasing gold shipments from neutral countries lifted (HMT) (April) (LEC's opinion of this action), America's entry into the war did not affect rulings concerning shipment of gold, LEC unable to assist with Russian Provisional Government. request to HMG to place 20m Yen at their disposal in Japan, Governor expresses his displeasure to William C McAdoo at the suggestion that the Commercial Exchange in London operates as a free market and not be controlled by LEC, Memorandum of German measures for controlling exchange, (June) original D50m loan by American bankers paid off with interest, renewal of Treasury Bills held by Japanese Government, J P Morgan & Co (NY) threaten sale of collateral unless HMT's D400m overdraft with them cleared immediately - Chancellor requests Lord Northcliffe to cope and request US Government assistance, President informed, Lord Cunliffe informs Prime Minister that he is unwilling to continue acting with Sir Robert Chalmers and Keynes unless Cabinet accept responsibility, Finance Minister in Ottawa places D85m in gold with J P Morgan & Co at the request of the Deputy Governor, Chancellor warned continuous purchases of exchange in New York are required (HMT provide to funds), Ministry of Blockade, Allied Governments ready to sever relations with neutral banks unwilling to refrain from prohibited transactions, Bank request J P Morgan & Co to substitute British Government for its own name as debtor for D85m loan and tenderer for £17.5m in gold, Bank authorise JPM & Co to withdraw further gold from Ottawa to pay off D14.75m (Bank to be eliminated from involvement after completion), HMT request LEC's views on a joint loan payable in dollars in Japan, to be guaranteed by Britain, France and Russia - LEC not keen. (August) Shipment and insurance of gold from US, Financial Commission, Japanese Government Bill to give power to provide financial assistance to Allies, no restrictions on British houses financing gold shipments from US - Bank's misgivings, US Presidential Proclamation prohibits export of gold coin and currency except under licence, LEC recommends to HMT that investments by UK residents abroad be prohibited, US Goverment concern over large transactions on exchanges, Danish Government D25m loan, Defence of the Realm Regulations 41D: HMT and LEC views on implementation, British Government Loan in Japan.
1918: Payments for cotton imports - proposed scheme, Peruvian and US Governments' proposed credit repayable in gold after war, HMT stops National Bank South Africa exchange transactions - later removed, regulation under Defence of the Realm Act prohibiting export of capital, HMG repaid by US for requisition of ships - use of proceeds, blockade of Central Powers, Foreign Office case on export of Bank Notes, dollar obligations in US and Canada, purchase of Italian lire to improve exchange, enemy use of neutral countries for transmission of funds, investigation into National Bank South Africa transaction in British dollar Treasury Bill, avoidance of speculative transactions in Italian exchange, memorandum on Financial arrangements in Northern Russia, Danish Goverment D25m loan in New York, contraband gold in Switzerland, Ministry of Blockade and Treasury proposal to discontinue returns of transactions in foreign exchange, memorandum on obligations to US Government, insufficiency of rate of interest on the balance to credit of 'British Government Special Exchange Account' with J P Morgan & Co.
1919: HMT views on JPM interest, Royal Dutch Co for the Working of Petroleum Wells - Netherlands India - terms of loan, dollar Treasury Bills, notification of foreign clients by banks etc that credits may only be used for trade purposes, Treasury seek LEC's views on policy concerning support of the Exchanges - brief review of situation in certain neutral countries, Governor's letter to Treasury on the influence of the demand for new capital for British undertakings abroad and related practice of deducting income tax from dividends paid to foreign investors in British companies, (March) proposal by Ministry of blockade to withdraw regulations on banking correspondents making or receiving payments without full details etc - opposed by LEC (41B Defence of the Realm Consolidation Regulations 1914), problems with foreign holders of Exchequer Bonds and other war issues - restrictions on banks, resumption of gold exports, LEC's decisions to discontinue support of the rate for sterling in New York, enemy transmission of funds through London, Treasury policy on return of deposited securities (not pledged as collateral) to depositors, Anglo-American financing of those Allies with financial problems, stabilisation of Chilean exchange, question of the fixing of the Indian rupee price for gold imported into India - LEC recommends gold required by Indian Government be obtained by selling rupee credits for dollars in US and arranging with American Government for export of gold, HMG's decision to extend food control for a further year - its implications, scheme for a Central Agency to purchase exchange for all Government Departments, provision of a Dollar Reserve in New York to finance purchases of bacon, ham and lard in US, Wheat Export finance, general exchange position vis-a-vis neutral countries, Joseph Austen Chamberlain's letter concerning dissolution of LEC, Royal Dutch Petroleum Co D14m loan/Asiatic Petroleum Co. |