The Washington herald., 1914-10-28
normal CREDIT
FAST Returning
McAdoo Points 10 Improve
ment in Exchange Between
U. S. and Europe.
VIRTUE IN CONFERENCES
Meetings with British Financiers Ex-
pected to Bring About Better
Understanding.
In CONFERENCES

secretary OF I1e Treasury 1lcAQOO salo
yesterday that there were many indica-
tions that normal conditions are rapidly
coming about In the credit relations be-
tween the United States and European
countries. In this connection Mr.. Nc
Adoo placed emphasis upon the drop In
the exchange rate from sos which was
the high-water mark OF the war crisis.
to L.S9 at which It was quoted yester-
day. The Secretary pointed out that the
normal rate Of exchange is but a few
points below yesterdays quotation.
Mr.. McAdoo's informal statement sub
stantiates the view which Is entertained
by high officials OF the administration
that the problem Of meeting American
obligations to Great Britain will work
themselves out so rapidly that no definite
official measures may be expected to re-
suit from the conferences with Sir George
Paish and Basil Blackett, representatives
Of the British treasury. who have been
in this country for the past ten days.
officials who hold this view believe
that the most valuable result which Is
to be looked for from the international
conferences here will be the establish
ment of better understanding between
both countries and Increased confidence.
Gradually Being Solved.
The belief that the international situ-
alton is gradually and certainly working
out its own solution Is based on many
elements, according to those In touch
with the views Of the members Of the
Federal Reserve Board. Most impor-
tance is attached to the announced in
tention of individuals and corporations
having large obligations to European
creditors OF meeting these obligations
without recourse TO governmental sources
for advice or assistance.
These assurances, 1t is said, sufice to
cover a large part Of the excess of our
obligations to Great Britain over the
800, ,OOO. 900 pool for the payment Of In
ternational obligations which has been
subscribed by the banks of the country.
Treasury officials in this connection point
with a great deal OF satisfaction to re-
ports from collector of customs at New
York showing a weekly margin Of sew
eraI million dollars OF exports over i'm
ports from New York.
BENEFIT to Cotton.
Oficials likewise expressed the belief
that the declaration Of Great Britain
that she would regard cotton as noncon-
traband would further assist the finan-
cial situation in this country. It was
learned that a result Of the declaration
already has been to facilitate the insur-
ing of cotton shipments against war
risks, according to reports which have
reached the Treasury Department
Secretary McAdoo took occasion yester-
day to express the belief that the market
ing of the cotton crop at the present time
would be materially accelerated had the
administration shipping bill been passed
and a fleet of merchant vessels been made
available at the present time He said
that, unquestionably, It would be easier
to supply the German and Austrian de-
mand for cotton had we American mer-
chant ships available. It was learned
that reports have reached the Treasury
Department that the number Of Greek,
Danish, and SCANDINAVIAN bottoms which
are available for transportation of cot
ton to Germany and Austria may not be
sufficient to meet the demand. Oficials
regard the finding Of means for trans
porting to Germany the 100000 bales Of
cotton for which she Is believed to be
in the market as an important feature
of the cotton problem.