New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-01
New York and Liverpool
Waiting for Start of
New Banks Here.
S10,000,000 FUND TO
PROTECT MARKET
Paish Conference Believed TO
Have Found Solution of Inter-
national Financial Problem.


Washington, Oct. Sl.-The opening
Of the cotton exchanges of New York
and Liverpool shortly after November
Is, the date Of the opening of the Fed
Cral Reserve banks, Is contemplated ny
the plan which was practically agreed
upon to-day by the representatives OF
the New York bankers and the Federal
Reserve Board and Sir George PaiSh
end Basil Blackett, representing the
British Treasury.
The cotton situation has improved 20
such an extent that the American
bankers and officials are confident that
market operations can be resumed as
soon as the reserve bank machinery is
put into operation. Encouraging re-
ports were received at the Treasury
department that subscriptions 10 the
cotton loan were coming in Satisfac-
torily. New York banks are already
preparing for the opening of the Cot
ton Exchange by raising fund Of
more than 100000 TO take care of
traddling and spreading transactions
ythat were suspended in midair when
;he New York and Liverpool exchanges
closed
BY the establishment of these funds
and the fixing of the character of cot
ION shipments as non-contraband con-
fdence has been restored 10 such an
extent that il is believed that the eX-
changes can be reopened without great
Oimculty and the cotton market brought
TO 6 fairly stable condition.
The conference with the British rep
rcsentatives to-day adjourned 70 meet
. again on Wednesday. by which time
Secretary McAdoo will have returned
from New York. In the mean time the
~. e, 4 Ia, rI.r la
arising between Great Britain and the
United States probably will be consid-
cred by the entire Federal Reserve
Board
Agreement Apparently Reached.
There were indications to-day that an
agreement had been reached and that
il will be submitted TO the officers of
both governments for approval.
Mr.. Harding, who represents the
Federal Reserve Board on the com
mittee which has charge of the ad-
ministration of the S185.000,0 600 cotton
loan fund, said to-day:
Satisfactory progress is being made
on subscriptions TO- the cotton loan
fund. The committees are actively at
work in the various clearing house
cities to which the matter has been re-
ferred.
st Louis reports tlllt the full
amount allotted TO that city, S7,500,000,
has been raised, and the subscribers
are now ready for the underwriting
contract"
Assurances that the entire cotton
situation was rapidly clearing were
forthcoming in high quarters to-day.
il is anticipated that the opening OF
the cotton exchanges viii not only re-
establish the market. but VIII attract
speculative buyers, who md no oppor-
-unity for purchasing stocks because OF
the closing of the Stock Exchange. /
This. il Is expected. will tend further
to buoy up the price Of cotton.
I'm other respects tho financial situa- /
tion showed Improvement. Emergency
currency 20 the extent of $4,000 900 or !
more has already been turned into the .
Treasury for retirement, and the New .
York banks. according 10 the reports .
Of their representatives at to-day's con-
ference, have now, in most cases, re-
serve in excess of the % per cent re-
quired by the present law.
Increase in Loanable Funds.
When the present reserve require
ments are reduced by the operation Of /.
the Federal Reserve act, II is probable
that the New York banks will have
much more money available LOT Com- I
mercial loans than was expected few
days ago.
So confident were Treasury officials
to-day that the cotton and exchange
situations are being satisfactorily set
tied that the statement was made by a
prominent official that the condition Of
the iron and steel trade was the only
occasion for misgiving. This can be
materially benefited by favorable de-
cisiOn from the Interstate Commerce
Commission in the advance rate case
now under considera ion, it was said,
and il is believed that orders for sup
plies and equipment will be placed by
the railroads as soon as the decision is
handed down, if it enables them to
count on increased revenue.