New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-08-15
FINANCIAL RECORD
HERE And ABROAD
Bankers Seek MCAdOo'S
Aid in Finding Way to
Pay Foreign Debts.

All eyes in the financial district were
turned on Washington yesterday. where
the conference was going on between
the Secretary Of the Treasury and
bankers, shipping men and exporters
from this and other cities, Nearly
every notable banker in New York was
present at the meeting in the Treasury
Offices, where the discussion revolved
around measures for restoring our for
eign trade 70 the Atlantic and for pay
ing our debts TO Europe. Those who
remained behind in Wall Street got no
definite news during the day of what
was going on, but 10 was well known
that among the proposals which would
be made was one for having the United
States follow the example Of some Of
the European nations and assume the
war risk on shipments Of grain and cot
ton and perhaps other commodities,
likewise. that plans would be suggested
for protecting the cotton planters while
their ordinary outlet for a large part
Of their crops was cut Oft, as well as
WAYS for releasing into the channels OF
international banking some of the gold
now held among the reserves OF the
banks.
The plan for diluting the reserves Of
the national banks with each others
obligations now seems 70 have gone by
the board, driven out by the indlgna-
ton Of well known bankers and econo-
mists, If not by its inherent unsound-
ness. Those who proposed II never
nretended that 10 was desirable except
for an emergency such as has arisen IN
connection with the difficulty OF paying
American debts 10 Europe, and now
they show but little inclination 20
champion 10 even on that score. ne
night brings counsel; what was ali
right or not too bad on Wednesday
evening looked very different on lhurs-
day morning.
What seems most likely 70 be
adopted is the suggestion that the
banks be permitted 70 draw down their
reserves 10 about is per cent in the
central reserve cities, where 20 per
cent Is now required measure cal.
culated 20 release about S150,0OOOOO OF
gold. II optimistic theories have any
Foundation in fact, not more than one
third Of that amount would need 70
cross the ocean before our foreign
creditors would be willing 70 take the
will for the deed and declare no more
money payments necessary. Eighteen
per cent is the reserve requirement un-
der the new Federal Reserve law, but
that law is not yet effective. tor lhe
sgme reason the Federal Reserve
Board, as il has specifically. declared
has no power 70 assume the rlght gwen
IL under the new law OF suspenolhH
reserve requirements for certain gen
rite periods IL is not likely 10 DC "
fector either. until October j, accord
inc n the estimate of Charles s. Ham
lin its governor. About the only pos
sible way for the plan 70 become e.
fective is for the Controller o. the
Currency 20 close his eyes 70 the 1ac'
that the banks are not carrying the
amount Of reserve required. reserves
Gre meant for emergencies, but IL IS
Question how far the letter OF the Ia"
ebonld be ignored for the sake OF eN-
rc6iencv. IL is true that there was =
IeTio6 a nearly three months IN !SO'
y.bsn the local banks were below tnelr
yeserve requirements, but at that tlme
currency was being boarded ana there
we're no emergency banknotes. 80.
The known movements OF none! en
week do not indicate more IMAM d 0o
rarativelv small loss in cash by the
banks-about S5,OOO,OOO-oI WhlcIi ;. IL
net loss 70 the interior was 49,
over 81 100000. To-day's bank state
,ner+ ought 70 be more satisfactory
~oadinr than that Of q week ago.
A. q late hour yesterday the snip
--;e+ry bill was still being debated,
because OF the amendments IN CONFER
800 hut there was q good prospeCV /
~ lis early passage. The PRESIDENT
Il vas said. stood ready 20 sign II
y,itbout an hours delay. The prlncipal
onposition 20 the bill centred on Ine
clause permitting foreign Xessels
engage, under certain condltlohS' III
American cosstwise trade. II wy
Measure is passed IN substantially the
80 fo-n, as II left the conference
there ought 70 be a very rapid IN
crease in the number Of ships under
the American flag, and so an unlock
ing Of the gates Of ocean transports-
lion That. Of course, would so lar
toward building up credits 10 onset
American debts abroad. and mlghI
even make unnecessary the shlpplhg
OF any gold.
In the absence of any statement from
the administration there were no new
developments in connection with the
nossibfe fotation of a large loan here
FOR the French government. me
bankers who were sounded IN the mat
ter explained that they we're not GER
tain whether they cared 70 undertake
the business and that IN no eVenI
would thew give II consideration until
,bev learned the attitude Of the State
Department
There was still more activity in for
eign exchange, accompanied by a move,
ment Of gold TO Canada from some OF
the trust companies out Of their vaults.
The gold went 20 the credit OF the
Bank of Eugland's depository IN OF
tawa. Demand sterling was quoted az
4.95lh dA96, cables 1890 300 ana franc
cables 5.07@510. As yet however,
there is no approach 10 market of
nnrnal volume.