The Birmingham age-herald., 1914-10-24
Financial Leaders of United States and England Take
 Up Situation
COTTON WILL PLAY
 IMPORTANT PART
Paish Declares English Manufacturers Will Buy American Cotton. Amount They Will Take
 Not Forecast

 forces of the federal government. aided by thc friendly counsel Of prominent bankers and representatives of Great Britain. were turned today toward resdjustment of the foreign market, disturbed by the European war.
 For more than three hours the federal reserve board, Sir George Paish and Basil $. Blackett, representing tho English treasury. and some of the best known bankers in New York, discussed the sit- uation in all it's aspects. According to those present no note of pessimism was sounded at the meeting and tonight there was every reason to believe the prob lcms which loomed so large on the finan- cial horizon few months ago will be solved without great difficulty. Here are the salient conclusions reached by the conference. .
 American bankers stand ready to pay their obligations to England in cash. The 100000 gold pool already formed and sS0,Ooo0oo raised by New York syndi- cate to meet New York eitys obliga- tions probably will be enough. however, to satisfy English creditors.
 The New York and London stock ex- changes will not be opened soon, possibly not before the beginning of 1915. A joint slider reopening beforehand.
 
 To Hasten Consideration
 The federal reserve board Is expected to hasten consideration of the proposed cotton loan fund plan, designed in part to give bottom to the cotton market.
 The cotton exchanges in New York. New Orleans and Liverpool probably will he opened as soon as possible The New York exchange probably will confer through a committee with the Liverpool exchange before such action is taken
 A committee consisting of Benjamin Strong, Jr., A. H. wiggin, James Brown Of New York and Governor Hamlin and Paul M. warburg of the reserve board will hold further conferences with Sir George Paish and Mir. Blackett about de- tails of the readjustment plan
 According to some of those at the con ference the optimism of all present was surprising. Sir George if was said, did not indicate that he had come to de- mand payment of American debts. he had no concrete plan to lay before the Amer icans but listened to what they had to say. The American bankers, on the other hand, made it clear that there was every reason to believe America could and would meet all obligations in gold A month ago they said they were worried about America's European debts, but as the weeks passed individuals appeared to take care of millions in debts across the water that 1t had been feared would have to be met through some pooling arr Other millions the bankers believe. will be accessible soon
 Although there was no expression as to how much gold actually must be paid to England, 1t was the opinion of many of those present that but little more than already has been arranged for will be necessary.
 Will Buy Cotton
 A prominent part in all the calcula- tions. all agreed. must be played by cot ton and for this reason the desirability of finding bottom for the market and making arrangements for re-opening cot ton exchanges were discussed at length Sir George voiced again the opinion that English manufacturers would buy cotton when they knew bottom had beea reached and that competitors could not underbuv them. Just how much Englands buyers would take was not forecast but the steadying effect buying there will have on foreign exchange was generally ad- nitted. Mir. Blackett denied there was an agreement in Europe to keep down. cotton purchases, thereby limiting the power of the United States to pay it's indebtedness.
 Sir George felt confident English hold ITS of American securities would not 'ump them on the market if the Lon ron exchange openeds England. he ex- olained was fighting the war on her sa wings and her current receipts. A l selling of American investments might come. he said but that would be account sd for by the large expectations of cot ton, grain and other commodities in the rext few months. He added that all se- ,urities had been taken care of up until January 1. By that time, the balance of trade probably will swing back to- wards the United States
 The New York bankers expressed no lesire for immediate reopening of the New York exchange, agreeing 1t would be we'll to wait until other and more press ng matters were disposed of. The cot on exchange might be reopened, they thought as soon as the 12 federal re- 'erve banks begin business about Novem- per 30.
 The question of short term paper to tide over the period before American commodities begin to appreciably reduce he American debt to England was not discussed today. It was expected it would come up in the conference tomor- CIV and form basis for some arrange nent by which even a portion of the 'l00,00Q.00o gold pool need not be actually 1 for several months.
 No direct reference was made at the conference to the cotton loan fund plan. | which the reserve board Is considering. | It was discussed today by members of the board unoffically. and will be taken l up formally tomorrow.
 Upon It's success in the opinion of many depends largely the success of | he present conferences. Little doubt was tonight that the reserve board | would approve 1t.
 Tho bankers present at the conference oday were Benjamin Strong. Jr.. H. P l )avison. T. H. Price, Samuel McRoberts, 2. O. Brown, Charles Starck. Willis1n | Woodward. James Brown and J. s. Alex ander of New York: Festus !. Wade of Il st, Louis and D. c. Wing of Boston.