The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1914-10-20
BRITAIN MAY COOPERATE
Believed That Resumption of Busi.
ness Relations With British Empire
Would Be of Material ADVANTAGE to
American Cotton Growers.

Washington, Oct. 19.-Disposition
of the souta's enormous cotton crop
and restoration of normal exchange
dealings between Great Britain and
the Omitted States were discussed at
"a conference today between repre-
sentatives of the two countries.
Sir George Parish, special adviser
to the English chancellor of the ex-
chequer, and Basil b. Blackette of
the English territory, represented
Great Britain; Secretary McAdoo and
the federal reserve board were the
| American conferees.
Although there was no formal dis
cussion of plans which may eventual
| ly be put forth by the Engishmen or
| by the reserve board, it became
known tonight that officials of the
American government feel keenly
that cotton is the crux of the situa,
tion. Upon the success of the plans
to care for surplus cotton and upon
the willingness of manufacturers to
buy cotton, more than upon any other
thing depends the value of Sir
Georges visit, they believe
1t is probable that before Sir
George returns to England the ques-
tion of a reopeniHg of the London
and New York stock exchanges will
be considered. 1t was predicted here
tonight that the London exchange
would reopen shortly with the British
government urging that London
| brokers shall not call loans immedi
ately. II the London market is not
greatly affected, its resumption of
business may be followed by the
| New York exchange
| So much depends, however, upon
the solving of the cotton problem that
there probably will be no further
conferences until commission of the
| board which is wrestling with the
proposed $780, 100000 cotton loan
| fund plan has found solution salts
| factory to the board, to the banks
and the expected borrowers. This
committee, Secretary McAdoo, Paul
| NJ, Warburg and w. F. G. Harding,
returned today from New York where
they have been at work since Satur-
day in an effort to convince New
York bankers of the feasibility and
soundness OF their plans for the loan
fund
The New York bankers promised to
| put up one-third of the loan fund. but
prescribed certain conditions which IL
was discovered could not be legally
met. The reserve board members
| proposed different conditions, and as
a further indictment offered to let
| the northern section of the United
States put up three dollars to every
one put up by southern banks with
the understanding, of course, that the
northern banks would have a prior
| lien for their money.
Under this tentative plan the banks
of the south would get the actual
management of the fund, the whole,
| however to be under the supervision
of the reserve board. Other condi-
| tions as to interest rate and price of
cotton were said to be lett unchanged.
This counter plan has not been
passed upon finally, but every oppor-l
| tunity will be taken to expedite its
consideration in order that the board
may get to the discussion of interest
problems with Sir George and Mr..
| Blackett.
The cotton crop is of first imrov-
tance in these conferences because
the United States has relied in past
years upon it to cancel by far the
larger part of its foreign indebted.
ness.
Sir George is known to take the
| position that the English cotton man.
| ufacturers do not wis to go into the
market now and but cotton unless
| they are satisfied that it has reached
the bottom price. The American
manufacturers, according to informa-
| tion available at the treasury depart
ment, apparently feel about the same
! way, and in consequence but little
cotton Is being sold. With the $780,
100000 loan fund in operation, how
ever, 1t Is argued that millions OF
bales Of cotton will be taken out OF
this market and a direct and stimu-
lating effect will be felt both here
and in England.
| With cotton moving again across
the Atlantic the Indebtedness of the
United States to England would be