The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-10-20
TTONlPROBLEM|ECR
OF FINANCIAL SITUATION.
Conferences Between American and
English Treasury Representatives
Begin at Washington.
MAY HAVE IMPORTANT EFFECT
In Search OF Satisfactory solution Of
Proposed Loan Fund Plan-Ques-
ton Of Reopening London and New
York; Exchanges to BE Considered.

WASHINGTON, $ October 19.-Sir
George Paish. special adviser to the
English Chancellor of the Exchequer;
Basil B.. Blackett. of the English
Federal Reserve Board to-day began
series of conferences here which are
expected to have an important effect
on financial conditions In Great Britain
and the United States. Restowal of
normal conditions In foreign exchange
dealings between the two countries is
the object of the meeting, and they
probably Will have a direct influence on
the disposition OF the South's cotton
crop
1t became known tonight that of
nciaIs OF tho American government feel
keenly that cotton is the cruN OF n
situation which has many ramifcations.
and that on the success OF plans to
care for the surplus and on the will
ingness of manufacturers to buy cotton
depend tho value of Sir Georges visit.
It is probable that before Sir George
returns to England the question of n
reopening 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 do not call
loans Immediately. II the London
market is not greatly affected, Its re-
sumption. OF business may be followed
by the reopening OF the New York eX-
change.
SEEKING FOR SOLUTION
OF COTTON LOAN PLAN
SO much depends on the cotton prob
lem that there probably Will be no
further conferences until committee
of the board. which Is handling the
proposed $15O,000.o0O cotton loan fund
plan. has found a satisfactory solution.
The committee, Secretary McAdoo. Paul
M n ~ EIae lir.tv
turned to-day from New York. where
IL had been at work since Saturday, in
an effort to convince New York bank
ers of the feasibility and soundness of
plans for the fund.
Tho New York bankers promised to
put UP one-third of the loan fund, but
prescribed conditions 1t was discovered
could not legally be met. Tho reserve
board members proposed different con-
dttions. and as n further inducement
offered to let the Northern section of
the United States put up SO to every
81 put up By Southern bankers, with
the understanding that the Northern
banks would have prior lien for their
money.
Under this tentative plan. Southern
banks would have actual management
OF the fund. the whole. however. to be
under supervision of the reserve board
Other conditions az to interest rate and
price OF cotton were said to be left
unchanged.
This counter-plan has not been
passed on finally. but every opportu-
nifty will be taken to expedite It's con-
sideration. SO that the board may be-
GIN discussion OF international prob
lens with Sir George and Mr.. Blackett
At PRESENT COTTON CROP
OF FIRST INiPORTAN nee
The cotton crop is of first Importance
in these conferences. because on IL
the United States has relied I'm past
years to cancel the larger part of its
foreign Indebtedness
Sir George Is known to hold that
English manufacturers do not wish to
buy cotton now unless they are salts
fed 1t has reached the bottom price.
American manufacturers according
&c information available at the Treas
ury Department, apparently feel tho
same way. and little cotton Is being
sold. With the $l5O.ooo.00O loan fund
In operation. II Is argued that millions
OF bales VIII DO taken out OF this mar
ket and direct and stimulating 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 decreased
rapidly and materially, and conditions
hero would improve in consequence.
1t was said tonight that cotton eX-
changes probably would open shortly II
arguments made here awaited. One diff
ficulty is the fact that there are no
quotations on which the factor or tho
manufacturer can base offers
The question of opening London and
New York stock exchanges probably
will be taken up later at conferences
with New York bankers. Secretary Nc
Adoo Tonight said that representatives
OF leading banking houses In New York