New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-20
u. S. Plan to Make Pay
ment of Debts in Staple
with Aid of Banks.
SIR GEORGE PAISH
CALLS ON M'ADOO
S15O,OOO,0O0 Fund Probably 10
Be Administered by Federal
Reserve Board.
from The Tribune Bureau

Washington, Oct. 19.-Sir George
Psish and Basil Blsekett, the British
financial experts, had an informal con-
ference with the Secretary OF the
Treasury and the Federal Reserve
Board to-day on the subject OF restor-
alton of normal conditions in the for
erign exchange market and the opening
of the cotton market
Further conferences are TO be held,
10 which representative bankers OF
New York will be invited. Sir George
Paish came here on the invitation OF
Mr.. McAdoO. He was introduced by the
British Ambassador. Previous to meet
ing the Secretary of the Treasury ne
had short talk with the President.
The Secretary of the Treasury, "hen
the conference ended, sald:
"Sir George Paish and Mr.. Blackett
rave assurances of the earnest desire
Of the British government to iend al
the assistance in its power toward the
restoration of normal conditions IN the
foreign exchange market and the open
ing of the cotton market, which, OF
course, is intimately related 70 the FOR
eign exchange situation. No specinc
plans have yet been considered"
At the suggestion Of New YORK bank,
ers the Federal Reserve Board will
probably administer the proposed $780,
OOO,OOO fund which Festus J. Wade, OF
ST. Louis, is endeavoring to raise for
the relief Of the cotton situation.
The Secretary Of the Treasury made
this announcement to-day, following
a conference between bankers in New
York. The proposed pool was discussed
with leading bankers by Mr.. McAdoo
and Messrs. Harding and Warburg, OF
the Federal Reserve Board, and the
mixers suggested o number OF changes
in Mr.. Wade's plan.
"The New York bankers felt that
some features of Mr.. Wade's plan
should be changed" said Mr.. McAdoo
to-day. "They expressed the belief that
the plan could be improved in some I'M
portant particulars. The changes are
under consideration by the Federal
Reserve Board.
Among other things it is the desire OF
the NewYork bankers that the fund shall
be administered by the Federal Reserve
Board While 1t is, Of course, not the
duty OF the Federal Reserve Board to
administer matters of this character,
the board is nevertheless willing to
volunteer for this service, recognizing
the great Importance to the country Of
doing everything possible to help the
cotton situation. There is a unanim-
ity of opinion among the members OF
the Federal Reserve Board that fund
Of this character, properly administered,
will be Of great benefit TO the South"
The principal object of Sir George
Paish's visit to the United States, 1t
was learned yesterday. is to find solu-
ton Of the cotton problem. Upon that
hangs international exchange as
whole. II a way can be found to ex-
pedite the outflow Of the crop the
clearing up of Americas debts to Eu-
rope will be in sight.
The plan now in the air is to get
British creditors TO take, In effect, cot
ton for the payment Of debts, instead of
cold. That is, if England can be in
duced TO buy now, or assume present
responsibility for, the great bulk OF
cotton she is thought certain to require
later there will be little further &C.
casion for the export of gold and
movement of the metal in the return
direction can be looked for.
Sir George came over here with de-
tailed statistics of the stocks Of cotton
on hand and the consumption Of the
great English mills in Lancashire. They
showed that at the outbreak OF the war
there was upward of 100000 bales
awaiting fabrication; five or six
months supply. More will be wanted,
and before long.
IL is on the hope that English manu-
facturers can be induced to anticipate
their needs-or bankers for them-that
the plan is being built for relieving the
international banking situation. Sir
George is said TO have brought as
surapces of the Bank of England's sup
port for any plan he may recommend.
Because there is under discussion a
vav for England to help relieve the
cotton situation there has not been any
abandonment of the domestic plan. Tho
Wade sl50,0OO,000 cotton pool scheme
is now before the Federal Reserve
BOARD for amendment.
Sunday there was a meeting at the
Mstropoiitan Club of the Secretary Of
the Treasury, w. P. G. Harding, of the
FEDERAL Reserve Board; Francis l..
Hine. president of the Clearing House
Association; Albert II. Wiggin, chair
nan of the Clearing House Committee;
N'-e~