Evening star., 1914-08-14
J. P. Morgan and Other Cap
tains of Finance Meet
the President.
DISCUSSION OF PLANS
TO UPHOLD COMMERCE
Proposition That the Government
Provide War Risks for Ships
and Cargoes.

Captains of finance and industry con-
ferrcd today with President Wilson
and Secretary McAdoo on measures to
uphold the commerce and credit of the
United States during the European.
war.
Headed by j. T. Morgan, James J.
Hill. James Speyer and other prominent
figures in the nations business life,
they discussed means of restoring
Americas transatlantic trade and the
financial situation at home generally
The conference agreed that the first
move must be TO find ships to carry car
goes cougestinc railroads and terminals.
Ii was the general opinion. however. that
the government must provide war FISH
Cor both ships and carSoes, as ALREADY
has been done by England and France, or
the amendment to the shipping laws 10
bring foreign vessels under American
register would lose much OF its value
The proposal to lower or substitute the
gold reserves in the banks was not taken
up.
The question of providing a means OF
foreign exchange also was discussed as
one of the paramount problems to be dis
posed of with the resumption OF trade.
After a conference at the Treasury De
partnent, where Secretary McAdoo out
lined the financial situation from the gov
ernment's point of view, the business men
went to the White House to be received
by the President
Neutrality to Be Enforced.
Two important problems involving the
neutrality of the United States during the
European war were considered Of para
mount Importance today by President
Wilson at the conference with members
of his cabinet.
One was plan to apply to all cable
Offices in the United States the same
censorship which recently was placed on
all radio stations to prevent neutral ter
ritory from being used as a base for the
transmission of military or naval infor-
nation to the warning European nations.
The other problem involved the grant
ing of permission to American bankers
to float loans here for any of the coun-
tries involved in the European war.
The customary meeting Of the cabinet
was dispensed with. but the President
called into conference the individual
members with whom he wanted to dis
cuss the situation.
He issued a neutrality proclamation
covering the war between Great Britain
and Austria-Hungary.
That the ablest minds Of the country
have been invited to cooperate with the
government in the solving of some Of the
huge problems now confronting the ad-
ministration is not doubted; that many Of
the problems are immensely serious and
complicated is likewise admitted.
Currency Not Present Factor.
The issue of currency and the plentiful
ness of money in the United States Is
really not a factor in the situation now.
arrangements having been made for an
ample supply of currency under all cir
cumstances. The real problems are the
transportation Of American products
abroad, the regulation of exchange and
the filing of contracts abroad that were
made prior to the outbreak of hostili-
ties.
Secretary Redfleld today had a long
talk with President Wilson. He and
President that they fully believe Ameri-
can grain products will hnd sufficient
transportation in a short time to prevent
financial losses in that direction. but that
the greatest danger lies in the cotton
crop of the south, the consumption of
which abroad will be materially lessened
by the war. The tobacco crop also OF
the south is relatively in the same posi-
ton.
II is candidly admitted among high off,
ciais of the administration that little
actual benefit is likely to follow legtsla-
tion permitting the registry under the
American flag of foreign owned vessels.
Foreign countries have countered this leg
islation by guaranteeing war insurance,
which will make the foreign sh1powner
satisfied with his present national at
tachment.
There is a disposition. though. to take
advantage Of the situation to pass lesis-
lation that will start a permanent Ameri-
can marine. and how to go about this -
being carefully considered The Ameri-
can people realize. as they never did be
fore, the huge Importance OF an American
marine and will sanction any fair move
rnent for increase In American shipping.
1t is argued.
Cotton Problem Serious.
How to handle the cotton problem
was one of the main subjects before
the conferences this afternoon and to-
day This years cotton crop has prac-
tically been financed in advance, and
it was financed on a basis of IL to 10
cent cotton. Nearly three-fourths OF
the cotton crop .of the south is raised
by tenants who buy their provisions
and clothing of merchants in advance
and pledge their cotton in payment. III
cotton goes down in price the farmer
and merchant both suffer. The mer-
chant is unable to meet his obliga-
lions to the bankers and the bankers
are unable to meet their obligations to
the New York and other banks they
nave borrowed from.
That is why so many minds are en-
gagged in trying to stop possible finan-
cial danger in the south. Trouble there
would mean trouble elsewhere. In ad-
ministration circles today it was still
the opinion that legislation is likely
to be passed providing for warehousing
Of cotton and the issue of federal GER
tificates of deposit of cotton that
would enable loans to be made by the
banks.
Proposed Loan to France Debated.