The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-10-21

Washington. oct 20.-Problems Oh
international exchange which are al
present worrying the federal reserve
board will be solved soon and the
balance of trade will swing again to
the United States making tie pay
ment of immense sums of American
gold to England unnecessary, in the
opinion of Sir George Paish, special
adviser to the English chancellor OF
! the exchequer, now in Washington,
discussing foreign exchange with tAe
board and Secretary McAdoo
Sir George expressed the belief
| that there was no doubt that the diff
fculties would be smoothed out and
both England and the United States
suffered as the result.
AT the present time" he said,
England feels that she wants money
that is owed her We have coming
more than 5000 5000 Payment OF
| this large amount of gold in the pres
emit situation might prove inconven-
iont and England was glad to respond
to a proposal that the case be talked
about and an effort made to find some
way of meeting the difficulty.
II 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 thai
eventually the balance of trade will
again be in your favor. In the
months to come England will be buy
ing American wheat and cotton, II
probably will not cancel the sum
owed in a few months, but it Is bound
to come in time. In the meantime
arrangements may be made so that
Iyou will not be embarrassed and yet
England VIII be assured that hel
money will be Forthcoming when
wanted
Sir George said that he believed the
London stock exchange would reopen
in a short time and thought it prob
able that the New York exchange
would be opened about the same time
His government, he said, was prepar
ing to prevent the calling OF loans on
securities and with such a guaranty
he thought there was little to stand
in the way of a reopening. He does
not expect to see the New York ex
change opened before that in London.
| Sir George declared that he did not
believe American cotton growers need
| fear that English manufacturers will
buy Egyptian cotton in preference to
American cotton.
I frFrrr &c
| for the same grade of manufactured
goods" he said. "At present the
English mills probably have suffic
lent supply on hand for a few months.
They are not anxious to buy how
ever, unless they are sure that cotton
has reached the bottom price. The
margin of profit in cotton is too small
to warrant such risks. If you succeed
in taking care of the surplus crop
have no doubt that you will see the
| English mills quickly in the market
again. | suppose the cotton ex'
! clanges in New York and New Or
lleans will open again shortly If the
plan of the federal reserve board for
a $3.50, 600 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 ex
listence,"
Secretary McAdoo and the reserve
board were occupied today with the
directors and other officials of the
twelve reserve banks, who are in
Washington for a conference, and
there was no further consideration
with Sir George and Basil b. Backett
of the English treasury. Mr. McAdoo
was ordered to bed tonight by his
physician, suffering with a slight at
Jack Of nervous indigestion.
Although Sir George did not feel at
Liberty to discuss details OF the plans
under way for meeting the situation,
it became apparent tday that the
federal reserve board probably will
attempt to provide short term, inter
est-bearing paper or notes which will
be acceptable to the English govern
lment in place of actual gold 1t be-
come known, too that the English
bankers recently refused to take the
obligations of New York city to the
lamount OF $4,000 600 because they
were regarded as having too long TO
run.s
Tae federal reserve banks probably
Twill be in operation within 80 days
and then paper carrying their en-
ldorsements may be acceptable to
English creditors.