Evening star., 1914-08-02

ence in Washington. to be attended by
| bankers from a dozen of the principal
cities Of the country. At this conference,
| which Is expected to include William q.
| McAdoo. Secretary Of the Treasury.
| ways and means OF meeting the present
| situation are to be considered. and an
effort made to devise a comprehensive
plan Of action throughout the country.
Suggest Loan to England.
The suggestion for loan of 500. 600. .00O
gold to England was made at a meeting
| of representatives of the principal for
eign exchange houses. For the last two
days business in foreign exchange has
been virtually suspended. and It was
deemed essential to the financial inter
ests Of this country to devise some plan
Of restoring equilibrium. August Ulrieh
of Ladenburg. Thalmann & Co.. chairman
Of the committee of foreign exchange
representatives. advanced the idea OF
loaning money to England.
1t was proposed to ship the gold to
England. or. what met with more gen.
eral approval. to hold the gold here. In
the latter case, this money would De
placed to the credit of England. perhaps
under the supervision of representatives
Of the British government. Another pro.
posal was to purchase a special issue OF
British bonds to be underwritten here
"Would Be Gracious Act"
Mr.. Ulrich argued that such action
would be a gracious response to England.
in its hour of need. to assistance ex-
tended this country during the panic OF
1907. The primary purposes Of such
step, however, would be to halt the un-
precedented outflow of gold from this
country, and to enable Europe to pay
for exports. principally OF foodstuns
which it is expected will be made in the
near future. With $1OO.OOO.OOO to foreign
credit here. 1t was said the necessity for
further exports of the metal would near
ly, If not wholly. disappear.
Annually at this season millions OF
bushels of grain are sent abroad. ana
this year, on account of the war, the
demand will be unusually heavy, II 1t IS
possible to make shipments. In view OF
the uncertain conditions under which
and the demoralized condition OF Euro
pean finances it was felt that the prob
lem of collecting, Europe's oil! Tor these
exports would be difficult. The bulk OF
through London. and the suggestion was
advanced that, instead of forwarding the
customary remittances in payment, Eu-
rope might make the settlement by draw
ing against reserve fund in New York.
Pays Great Premiums.
"Wh hile we are boasting." said Mr.. Ul-
rich. that we would absorb all the
foreign sales of securities better than
any other financial center. and that gold
here was not at premium, yet the
American business man has to pay out
rageous premiums on checks which,
when presented abroad. could not be re-
deemed in silver. much less gold. We
possess the intelligence and strength to
pay Europe all we owe 1t without un-
due injury to the American business
man. We shall find the proper and at
the same time honorable way to adjust
our exchange transactions, but we have
got to stop these present exorbitant high
rates"
Differences of opinion arose as to the
advisability of the suggested loan to
England. A committee of five was ap-
mittee held stormy session. 1t was
finally agreed that Mr.. Ulrich and Max
May. vice president of the Guaranty
Trust Company. should go to Washing
Secretary McAdoo. and it was under
stood that a meeting with President Will
son had been arranged for. tomorrow.
Mr.. Ulrich and Mr.. May were to return
to New York in time to meet the other
members of the committee Of five to-
turn was to report to the main body
early Monday morning before banking
hours.
Mr. Ulrich and Mr.. May left huriedly
for Washington tonight. Before their
departure for Washington they said
they had no definite proposals to make
to the Treasury officials. but were going
down to lay the whole situation before
them in the hope that some plan might
be evolved.
Chicagoans Are Coming.
CHICAGO. August 1.-Three members
of the Chicago clearing house commit
tee will leave tomorrow for Washington
to confer with the Secretary Of the Treas
ury and other bankers regarding the ef-
feet of the war on American finances.
They are James 3. Forgan, president Of
the First National Bank: George NJ
REYNOLDS, president of the Continental