The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1914-10-23

uclhlB Oh the Eu8llsn koScfnhchl
were coming to America TO discuss
monetary operations between England
and this country, but did not know IL
had q worldwide angle until read
| Il In the Herald this morning.
with nine countries In Europe at
war and all OF them eager to gather
all the actual gold they can acquire
it does not seem to me that this Ia
the opportune time to start such q
movement"
Mr.. Forgan added that after the
hostilities have ceased some means
OF establishing a credit system where
by the shipment OF gold would be
made unnecessary might be worked
out, although he had not given
thought TO the subject that would sn-
able him to suggest how II might be
done.
Charles G. Dawes, president of the
Central Trust Co. of Illinois, former
ly comptroller OF the currency, said
some plan should and will be devised
doing away with the actual shipment
OF gold as IL figures in the settle
ment Of International business trans
actions.
while do not care to discuss the
subject at length until we heard what
Sir George Paish has I'm mind as a
remedy, II may safely be said some
thing OF the kind will come as one
of the results of the European wal"
said Mr.. Dawes. 81 have views on
the subject, and may give them later
on.
TT Is my belief that We shall find
perfectly efficient and prompt metns
cd Of carrying on exchange and all
business pertaining thereto without
shipping gold back and forward at
different intervals. according to the
credit or debit balances as they may
stand at various periods OF the year."
DIR. Dawes suggested plan could
be arranged so gold could be held In
vaults in this country and certificates
issued against II. as In the plan under
which clearing house certificates are
used in times OF financial stress,
when the banks seek to conserve
their gold supply. He declared that
all the foreign banker wants Is a de-
post OF gold and legal evidence OF
the same as his security. The Amer
lean banker, he said, will accept the
same from the foreign banker when
the plan is arranged.
John J. Arnold, vice-president and
manager of the foreign exchange de-
partment OF the First National. bank,
said the Paish plan was substantially
the one suggested by Chicago bank
ers at the beginning Of the war. Then
the scheme was abandoned because
of the inability Of including Germany
and Austria.
Now, as then. the question of neu-
trality was always involved" said Mr..
Arnold. Il saw Paul Warburg Of the
federal reserve board less than two
weeks ago relative to the same matter
OF matching credits, and he again
replied that he could not see how IL
could be done at this time.
The visit OF Sir George Paish and
Mr.. Blackett win help the PROPOSE
ton, which can be and eventually
al clearing house. where the debts
and credits Of the larger nations,
anyway, can be settled / think the
prevention OF gold reserve exporta-
tons can be handled by the federal
reserve board.
or course, the bankers advocated
a central bank, and probably still be-
lieve IL to be advantageous, but I
have little doubt the present system
can bring about a similar result"
The dependence Of the nations
agriculture on the vagaries OF finance
interferes with the central bank ides,
/ in the mind Of Edward N. Hurley.
vice-president of the Illinois Manu-
facturers' association, who recently re-
ported to the federal government on
South Americas financial status. He
believed In plan to conserve the
gold reserves Of the nation.
II read OF the mission OF Sir
George Paish with great interest"
said Mr.. Hurley. 1T seems to me
that the farming proposition In this
country requires 50 much money that
II New York and Chicago people were
tied up in a central bank there would
be great difficulty sometimes in NOV
ing crops. I do not believe the CEN
trail bank plan will work In this coun-
try.
II do believe with our British Wis
itors that some method should be
adopted for the retention OF gold for
our reserves. The experiences OF the
last few months show that interna-
tional action Is necessary"