THE LANSING PAPERS, 1914-1920, VOLUME I



issue. These securities could be sold abroad or be readily available
as collateral in foreign loans and would be paid at maturity in dollars
or equivalent in foreign exchange.
                                               ROBERT LANSING
  [WASHINGTON,] October 23, 1914.

763.72111/630i
Memorandum by the Acting Secretary of State of a Conversation
       With President Wilson, October 23, 1914, 8:30 p. m.
                    [WASHINGToN,] October 23, 1914-9:30 p. m.
  From my conversation with the President I gathered the following
impressions as to his views concerning bank credits of belligerent gov-
ernments in contradistinction to a public loan floated in this country.
  There is a decided difference between an issue of government bonds,
which are sold in open market to investors, and an arrangement for
easy exchange in meeting debts incurred in trade between a govern-
ment and American merchants.
  The sale of bonds draws gold from the American people. The
purchasers of bonds are loaning their savings to the belligerent gov-
ernment, and are, in fact, financing the war.
  The acceptance of Treasury notes or other evidences of debt in pay-
ment for articles purchased in this country is merely a means of
facilitating trade by a system of credits which will avoid the clumsy
and impractical method of cash payments. As trade with belligerents
is legitimate and proper it is desirable that obstacles, such an [as?]
interference with an arrangement of credits or easy method of ex-
change, should be removed.
  The question of an arrangement of this sort ought not to be sub-
mitted to this Government for its opinion, since it has given its views
on loans in general, although an arrangement as to credits has to do
with a commercial debt rather than with a loan of money.
  The above are my individual impressions of the conversation with
the President, who authorized me to give them to such persons as
were entitled to hear them, upon the express understanding that they
were my own impressions and that I had no authority to speak for
the President or the Government.
                                               ROBERT LANSING
  Substance of above conveyed to Willard Straight at Metropolitan
Club, 8: 30 p. m. October 24, 1914.
                                                           R.L.
  Substance of above conveyed to R. L. Farnham9 at the Depart-
ment, 10: 30 a. m., October 26, 1914.
                                                           R.L.
 Representative of the National City Bank.



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