New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-02
BANKERS ENJOYS
SENT TO M ADOO
Ulrich and May Selected
by Foreign Exchange
Representatives.

As the outcome of a meeting Of more
than forty Of the leading foreign ex-
change representatives of this city at
the Guaranty Trust Company yesterday
morning, August Ulrich, of the inter
national banking firm of Ladenburg,
Thalmann & Co., and Max May, vice
president of the Guaranty Trust Com
pany, left hurriedly for Washington
last night. where they will hold con-
ference with Secretary McAdoo. and
perhaps the President, this morning.
They hope, with the cooperation of the
Treasury Department, to relieve the
abnormal situation in the international
exchange market and check the eX-
traordinary and dangerous outflow of
gold.
The meeting was called by Mr.. Ul-
rich and was attended by representa-
tives of practically all the banks, bank
ing firms and trust companies doing
exchange business on large scale, eX-
cept the National City Bank. John +.
Gardin, however, who is the City
Banks ice-president, in charge of its
foreign exchange operations, later
agreed to serve on the committee Of
five appointed at the meeting to con-
slider what action should be taken to
bring some measure of order back to
the international banking machinery.
The committee consists of Max May,
chairman, Guaranty Trust Company;
August Ulrich, Ladenburg, Thalmann
e. Co.; George lie Blanc, Equitable
Trust Company; John E. Gardin, Ma
tional City Bank, and r. u. Hebden,
Bank of Montreal
After the general meeting in the
morning the committee met at ,
o'clock, delegated Mr.. Ulrich ard Mr..
May to confer with the Treasury au-
thorities, and adjourned until this af-
ternoon. The committee will report to
the general body at the Guaranty Trust
Company on Monday morning at $50
o'clock.
In his address to the full body at the
morning meeting Chairman Ulrich re-
viewed the situation that had led to a
deadlock in the exchange meeting. He
told his fellow-bankers that all of
them had been guilty in a certain way
of helping along the ruinous rise
through their over-anXiety and courte-
sy in placing funds at the disposal of
their foreign correspondents overnight.
/ II there had existed among the foreign
exchange bankers an understanding
such as should exist, the exchange mar
ket, he said, could not have acted as
disgracefully as it did.
eve shall find the proper, and at the
same time the honorable. way to adjust
/ our exchange transactions" he said,
"but we have got TO stop the present
exorbitantly high rates. In 1907 it was
London that provided us with gold and
ungrudgingly helped us. II now De-
hooves us to stand by London in its
present embarrassment.
81 understand that a shipment Of
500, 100000 of gold to London, either
in the shape of a loan or IN payment
of a purchase of bonds, would greatly
relieve the London money market. 1t
would benefit London, and, also, would
react to the benefit Of our own money
market
81 am firmly of the opinion that we
ought to fix exchange rates, and do this
more in accordance with the natural
PARTIES as they are arrived at from
day to day, taking into account the
value Of loanable capital both here aid
abroad, and making due allowances fer
proper differences between checks and
cables. | therefore strongly advocate
daily meetings of committee, whose
duty it shall be TO fix a reasonable
range of rates, supervise the exchange
of foreign bills and cable transfers and
appoint, if necessary, agents at foreign
centres to attend 20 the collection of
bills in case moratorium should be
established abroad-in general, TO look
after any other transactions as may
from time to time have to be settled
I abroad
Mr.. Ulrich suggested as an alterna-
tive plan, that trustees be. appointed IN
New York with whom could be deposit.
ed gold in trust for foreign central
banks in case shipments of specie
should become too perilcrs and too ex-
pensiye.