The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-10-23
ED WORLD
TO
|CONSERVE GOLD
6nkers Say, However, America
md Britain Might Present
Basis for Such Action
WOULD BALANCE CREDITS
IN LIEU OF METAL
3ir George Paish, One of En-
gIish Enjoys, to Urge New
Financial Plans

", CHICAGO, Oct. 23.--Gold as q SER
vant and not the master OF business
&as q topic widely discussed by
Bankers and business men In Chicago
connection with the mission Of Sir
DeorRe Paish and Basil Blackett 10
n America, as representatives OF the
+Btitish treasury. These Britons advo-
s. ute plan that will eliminate the
[.uoe OF the actual metal
< The actual shipment OF the precious
khetal In International business trans
actions was called wasteful Dy some
bankers.
That SI00. 100000 In gold should
& now In or out OF this country within
= few weeks. as IL frequently has
+ done. was declared TO be condition
nadly In need OF remedy.
Panic attends the drain OF gold
\ rom our shores, IL Is declared, while
: ils influx lends artificial influence TO a
<ntrong situation. Both movements
\ AFFORD ground for speculation and I'M
Dound conditions. s.T
Bankers contend that action by
ENGLAND and the United States To
1<op gold shipments would form the
|nsis OF plan to be adopted laler
& ~ all nations.
Al present the European war makes
NE countries In the conflict eager to
acquire all the actual gold they can.
Bankers and business men are al
nost q unit In agreeing that credits
I'm be matched and debts and credit
3nlances settled In certificates, which
Hall be evidence that SUFFICIENT
Md or it, equivalent In approved se-
ofities has been deposited. Such a
&Sutem. they say, would satisfy the
&6nkero OF any nation In making ex-
GHanees settlements without shipping
1clual gold
This plan, bankers say. calls for
&e establishment of international
|oaring houses for credits. The idea
Dos laid before the administration Ut
1ashington at the outset of the
nauciai difhculties. due to the Euro
<oon war, but was rejected on the
gound that II might prove TO be in
Notation Of American neutrality.
One local banker said:
England Is more than willing TO
desperate with us. and We are with
~ In this matter, but we must know
&oN tar to carry out the plans with
&f getting into trouble with other
nntries. The same may also be APP
Ned 20 England's attitude In the
onf OF the United States helping
~ Germany or Austria In any agree
hit th&t would facilitate the bust
~ Of those. countries"
0eOrge N. Reynolds, president Of
~ Continental and Commercial Ma
bnnl Bank Of Chicago, Landed the
1x9estiCn OF cooperation by govern
1Gnts OF the world In any Rlan that
o0uld eliminate the physical use Of
I'D IN international transactions, but
1 declared that he did not know how
I&ot viii be accomplished.
~Gfr George Paish has come to
&merica ON . most important mis-
~lon. but until he suggests his rem
~ am at q loss to know how this
rs any other country ID going to avoid
1Ipping gold In settlement OF its OBJ
ntions.r said Mr.. Reynolds. "A
~ cooperative plan including all
10 great nations Of the world that
would prevent the waste incident to
~ shipments of gold to and from
gland would be great thing. but
WOULD rather know how II is to be
me before discussing 1t.
rIt II q broad subject and II the
ogernment is to be made the basis
~ these operations, l should say Il
would be q rather big task to take
ne risk for all American citizens.
Eve are working under q crisis now
nd our bankers know what the
(1ouble IL. We are open to any fea-
|Ulb1e remedy. Under the Aldrich
lu there would have been no trouble
Nth the gold problem"
James b. Forgan. president OF the
F Irst National bank and chairman Of
ne Chicago clearing house commit
~. said he had no occasion 10 study
~ plan for the elimination Of gold
1h1pments I'm our international ex-
1hnnge transactions.
81 1T may or may not be good
hing said Mr.. Forgan. AT all
tovonts I am not prepared to say one
,toy or the other at this time. We
& row have plan in effect whereby the
4 deposit of gold or fits equivalent In
8 <l<fAwa. Canada. serves as basis
~ foreign exchange operations with
1gisnd and the metal or coin is not
1r@cped across the Atlantic This
Dlaa IS working satisfactorily and an
Dxerr our purposes.
81 knew Sir George Paish and Of