File No. 763.72112/4663

The Secretary of Commerce ( Redfield ) to the Secretary of State

My Dear Mr. Secretary: I have noted with care your favor of the 28th instant covering copy of letter from the British Ambassador stating in substance that the British Government considers that the time has come for bringing such pressure upon neutrals as will deter them from rendering financial assistance to the enemy and setting forth the means suggested by the Governments mentioned in your letter for bringing the matter into effect.1

In response to your request for expression of my views at the earliest practicable moment, I beg to advise as follows.

The Department of Commerce regards it as supremely important to cut off as fully and promptly as possible the enemy’s supplies of credit. Without credit and credit facilities the enemy cannot purchase needed supplies even if those supplies exist and no other obstruction prevents his securing them. If the means of paying for purchases are gone the possibility of making purchases is indeed remote.

Without entering into the more minute details of the memorandum (concerning which details it is respectfully suggested that the Secretary of the Treasury or the chairman of the Federal Reserve Board is more competent to speak with authority than this Department) the object sought therein is one that it is necessary to obtain if at all possible, the means are deemed legitimate and the proposed course in very large measure practicable. I am not prepared to discuss the question as to whether under existing law authority exists to take the proposed course.

Yours very truly,

William C. Redfield
  1. See communication from the Secretary of State to the Secretary of the Treasury, Aug. 28, ante, p. 938.