Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-04
RESERVE BANKERS
IN SECRET CONF ABB
No Notes Taken at Meeting
With Federal Reserve Board
at Treasury Today.
FINANCIAL SITUATION
is REPORTED IMPROVED
Representatives Of Twelve Cities &c
Over Details of New System-Gov-
ernment's Policy Criticised.

In conclave 80 secret that even
stenographic notes. which might be
sprung at some future time to disclose the
utterances Of any Of the conferees. are
not being taken. representatives Of bank
are meeting with the federal reserve
board today The program has not been
divulged, although the call to tho con-
ference included requests from the fed
eral reserve bank that the bankers come
prepared with explicit data on foreign
and domestic credits.
After the conference took a recess at
o'clock for lunch. 1t was declared by one
Of the bankers that the government
policy Of issuing emergency currency to
war conditions found favor An improv-
ing financial situation over the country
was also reported.
Includes Whole Country.
Controller Williams said the meeting
had heard clearing house reports Of con-
ditions on the Pacific coast, In the north
west and in Chicago, and was in the
midst Of the report of the New York
clearing house when adjournment was
taken. The situation disclosed, especially
as regards Chicago, was encouraging, he
said.
Criticises Governments Plan.
There 10 known to be q disposition on
the part Of a large element among the
bankers who are assembled to bring for
ward a strong criticism Of the govern
ment's plan to advance financial aid in
the crop situation. There is objection tc
the financial policy of government pater-
naIism. and the method employed OF
strange security is criticised by some as
a "makeshift policy" The effectiveness OF
the plan from any viewpoint Is question
ed.
There is also known to be a large
number Of bankers who would defer
the Inauguration Of the new federal
reserve system until a time when con-
ditions appear to them to be moro
favorable than now. when the war sit
uation has created SO much Industrial
that the putting into operation OF the
new currency system would serve only
to disturb further trade adjustments.
Amendments Are Suggested.
The federal reserve board has been
considering amendments to the new
currency law, calculated to coordinate
1t and to make desirable changes in its
provisions. Some amendments Of the
latter type have already been submit
ted to Congress-. It Is expected that
the bankers will be asked to give their
opinion on mooted questions In this
directionn. and their view may largely
decide whether such amendments shall
| be- modified. abandoned or proposed.
Board in No Hurry.
There Is no apparent desire on the
part Of the federal reserve board to
hasten the opening OF the new cur
rency system. They have reached the
conclusion. It is understood. that the
transfer from the present national
ba mixing system. with Its corollary Of
the AidrichVreeland act. can be ac-
compiished with little friction and
practically no Inconvenience
The conference will look up the
question Of the foreign indebtedness
Of American merchants, hoping to find
a solution without payment to Europe
Of large amounts Of gold. No exact
figures are at hand. but the clearing
house associations were asked to col
lect all available Information on the
amount involved.