Woodrow Wilson Papers
The Food Administrator ( Hoover ) to President Wilson
Dear Mr. President: In order to adequately handle the problem of European food relief, it is necessary that we should establish stocks of food, particularly cereals and fats, at certain strategic ports, these stocks to be drawn upon for the supply of different countries from time to time. Such an arrangement enables us to maintain constant transport and a regular drain of our food supplies from the United States. This arrangement, together with many political considerations involved, require that the foodstuffs in transit and in storage at these bases of supplies should remain in the name and possession of the United States Government. The War Department, with your approval, is now performing this function in respect to certain stocks in the Adriatic, but I assume that their action is only for the emergency, and beyond this it is necessary for us to establish further such stocks at points like Rotterdam, possibly at Gutenberg [Gothenburg], and even at German ports.
The United States Food Administration has the right to buy and sell foodstuffs as may be required in the common defense. The appropriations to the Food Administration for these purposes lie entirely in the Food Administration Grain Corporation, of which you are the sole stockholder. The Directors of the Grain Corporation feel that, as a corporation, they should have your approval to this extension of their operations outside of United States territory. There is no reason either in law or in the purposes of the United States to maintain the common defense that does not warrant such action, and there is abundant actual reason why this action should be taken as a part of the necessity of the United States to maintain tranquillity in Europe while its armies are entangled here.
It is not proposed to part with any of the foodstuffs thus belonging to the Grain Corporation without prior payment. There is, of course, some commercial risk in the matter, also there might be further outbreak of hostilities in Europe that some of our bases of supplies might be involved. This, however, I regard as a risk of war that cannot be avoided.
I would, therefore, be glad to know if you authorize the Grain Corporation to extend its operations to the extent of establishing these stocks and carrying them on the capital and credit which it possesses.
Yours faithfully,