File No. 763.72/55
The Minister in Belgium (Whitlock) to the Secretary of State
Brussels, August 2, 1914, 10 a.m.
[Received 1:25 p.m.]
[Telegram]
Situation here marked by great uncertainty and apprehension. Difficult secure any information on which to base definite estimate [Page 31] of probable developments. Great financial timidity among classes which has caused runs on all the banks. They are meeting payments and assert that there will be no failures if runs cease within the next few days. Many shops and business houses refuse to accept bank notes although they appear to be well supported. Small coin withdrawn from circulation which causes great difficulty in ordinary transactions. It is hoped that this will be remedied to some extent to-morrow by issue of clearing-house certificates in small denominations. Exchange very high. Banks giving from four francs to four francs fifty for American dollars. Unless I secure unusual information on general situation I shall confine my telegraphic reports to matters affecting Belgium alone.