The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1914-10-23
FEDERAL RESERVE BOARD BUSY
IN WASHINGTON WITH PER-
Picking FINANCIAL SiTU-
ALTON DUE TO WAR.
BRITISH EXPERT PREDICTS
AMERICAN TRADE GAINS
Expects This Balance to Offset in q
Measure Great Gold Drains That
Have Been Made Upon This
Country - Treasures the
Cotton Growers.

Washington, Oct. 22.-Problems Of
international exchange which at pres
ent are worrying the federal reserve
board will be solved soon and the bal
ance of trade will swing again to the
United States, making the payment Of
immense sums of American gold to
England unnecessary, in the opinion
of Sir George Paish, special adviser
to the English chancellor of the ex-
chequer, now in Washington, discuss
ing foreign exchange conditions with
the board and Secretary of the Treas
ury McAdoo.
Sees Solution of Difficulties.
While Sir George declined to talk
about details of any plan for a solu-
belief that there was no doubt that
the difficulties would be smoothed out
and both England and the United
States satisfied with the result.
AT the present time" he said,
England, of course, feels that she
wants money that is owed her. We
have coming from the United States
probably $200,O00,0O0. The ordinary
method of payment is by gold, but in
the course of business the balance 10
usually taken care Of by purchases of
American securities or by payment for
your crops. In view of the present
situation in your country the payment
of this large amount of gold at this
time might prove incCnvenient and
England was glad to respond to pro-
pOsal that the case be talked about
and an effort made to find some way
of meeting the difficulty.
England Will Be Buying.
81 feel sure that some way will be
discovered here by your federal re-
serve board and the secretary of the
treasury and there is no doubt that
eventually the balance of trade will
again be in your favor In the months
to come, England will be buying
American wheat and cotton. 1t prob
ably will not cancel the sum owed in
a few months, but it is bound to come
in time. In the meantime, arrange
ments may be made so that you will
not be embarrassed and yet England
will be assured that her money will
be forthcoming when wanted"
Sir George said he believed the.
London stock exchange would reopen
in short time and thought it prob
able that the New York exchange
would be opened at about the same
time. His government, he said, was
preparing to prevent the calling Of
loans on securities that might ordi-
narily be expected to accompany the
resumption of stock exchange BUSH
ness and with such guaranty he
thought there was little to stand in
the way of reopening. He does not
expect to see the New York exchange
opened before that in London.
Treasures Cotton Growers.
Sir George declared that he did not
fear that English manufacturers
would buy Egyptian cotton in pref
erence to American cotton.
1.-THE Egyptian cotton is not used
for the same grade of manufactured
goods" said he. "At the present mo-
ment the English mills probably have
a sufficient supply on hand for few
months. They are not anxious to buy,
however, unless they are sure cotton
has reached the bottom price. The
margin of profit in cotton is too small
to warrant such risks.
Expects Early Improvement.
IF you succeed in taking care Of
the surplus crop / have no doubt
that you will see the English mills in
the market again quickly. l suppose
the cotton exchanges in New York
and New Orleans will open shortly if
the plan of the federal reserve board
for a s150,000,000' loan fund goes
through. Then think the Liverpool
exchange will follow. With cotton
selling again there is bound to be an
Improvement in conditions and some
of the balance against you will be
wiped out of existence"
EtrL -