The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-11-05
|DEBT WILL BE ADJUSTED
in NATURAL CHANNELS
New York Syndicate, 100000, 900
Gold Pool and American Crops
Will Work Solution.
sERRAND OF FINANCiERs ENDS
Sir George Paisli and Basil B. Black
EFT. Of English Treasury, May Meet
I Federal Reserve Board To-Day for
Final Conference.

4
WASHINGTON. November 4.-Sir
George Paish aud Basil 3. Biackett.
of tho English Treasury. practically
have ended their mission In America,
and as q consequence OF their confer
ences with the Federal Reserve Board
and New York bankers IT was indicate
Tonight that no further steps need be
taken for tho present to arrange for
shipments OF American gold to Eu-
rope
The conferences have brought the
conviction that the matter OF Ameri-
can debts abroad will be adjusted
through the natural avenues Of trade
| and through the special machinery
already set UP. The 100000 gold
pool, the New York City syndicate and
American crops are expected to take
care OF the present American Indebted
ness.
NO sHoRT-TERM NOTES
| ~. WILL BE UNNECESSARY.
1t is said Sir George agreed that no
issue of short-term' notes Will be neces-
sary to match the bnlance''ln favor OF
England, which the gold pool and the
New York syndicate will leave Re-
vivod trade, American officials believe.
soon Will cat up the. outstanding
I, by the British Treasury. American
hanks Will not be drained of their gold
at the time when they are about to
shift their reserves to Federal reserve
banks.
Only one matter remains to be ad-
ljusted. There still liz fear, that IL the
! London Stock Exchange opens for bust
ness. thousands Of shares OF American
securities will be put on the market
at bargain prices bound to attract
mcr!can Investors. Such ii dumping
OF American stocks would send the
hD n hp ciI do
OF the ledger, and lead to conditions
under which England might feel she
must ask for cash.
That phase OF the problem has been
given much thought 1t has become
apparent that the English government
Intends to allow the reopcning OF the
London exchange. In the near future.
1T was suggested that cooperation OF
American bankers would tend to make
II hard for prospective buyers OF
American stocks abroad to get loans
here. The banks OF the country and
the Federal Reserve Board have worked
In close harmony since the war began,
and there has been n marked inclina-.
ton on the. part OF the bankers to
get the ear of the board before under
taking any vital step. That bankers
might be willing to respect the boards
wishes In the matter Of loans OF this
character would not be surprising news
|lo officials here.
ItRh
,S+ POWERFUL. LEVER
The board may find powerful lever
In the currency act Itself. 1t permits
any Federal reserve bank to discount
notes. drafts and bills of exchange of
member banks where they are issued
or drawn for agricultural, Industrial or
commercial. purposes. or the proceeds
OF which have been used or are to be
used for. such purposes hut this
definition, the law specifically states,
shall not include notes, drafts or bills
covering merely investment securities,
except bonds and notes of the govern
ment OF the United States"
Armed with this provision, member
banks, 1t Is said, Will be able to explain
to customers who seek loans for stock
buying purposes that their paper Will
not be discounted by the reserve bank,
ana that, In consequences. tho mem bcr
bank must refuse. ~, ls 70.
Sir George was said tonight to be
In touch with the home government III
arrangements can he made to take care,
OF the stock exchange situation. he
probably viii meet with the Federal
Reserve Board to-morrow ut Anal
conference. 4. ,1T;