Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-10-21
HERE TO ARRANGE
FOR GOLD EXCHANGE
Sir George Paish Represents
English Chancellor of Ex-
chequer in Conference.
U. S. SHORT-TERM NOTES
MAY BE THE SOLUTION
Federal Reserve Banks Endorsements
Likely to Be Sufficient Guarantee
for Metal When Needed.

for Metal When Needed.
There is no doubt in the mind of Sir
George Paish. special adviser to the
English chancellor of the eNchequer
that the problems of international ex-
change now troubling the financial and
economic experts of this government
will he smoothed out. Here to discuss
these difficulties. he believes the solu-
tion that will be arrived at will content
both Great Britain and the United
States. and that the balance of trade
will soon swing again to the United
States, making unnecessary the pay
ment to England of immense sums OF
American gold.
The illness today of the Secretary OF
the Treasury will make impossible until
tomorrow or a later day the pending
conference regarding the international
situation. A meeting of the directors
of the federal reserve banks yesterday
claiming the attention of Secretary NC
Adoo, the British tinancier did not meet
with him and the federal reserve board.
Silent on Details.
Although Sir George did not feel at
liberty to discuss details of the plans
under way for meeting the situation 1t
has become apparent that the federal
reserve board probably will attempt to
provide short-term interest bearing
paper or notes which will be acceptable
to the English government In place OF
actual gold. It became known, too,
that the English bankers recently re-
fused to take the obligations OF New
York CITY to the amount of $SO,OO0,O0O
because they were regarded as having
too long to run.
The English bankers are sald TO pre-
FER sixty-day or ninety-day paper
which is easily controvertible and on
which gold could be demanded IN a
comnaratiyely short time if conditions
arose to make more gold necessary 70
England. hlv
viii he In oneration within thirty days.
Tban naper carrying their 1ndorse-
ments may be acceptable to Enghsn
creditors
Sir Georges Views.
Discussing the situation IN a STATE
ment given out by him yesterday DIE
George Paish said:
AT the present time England OF
course, feels that she wants money
that is owed her. We have coming
rom the limited States probably more
than 500. 1000. The ordinary meth
cd Of payment is by gold. but IN tne
course Of business the paIancs 40 -,
AIoo-ican securities or by payment Tor
I'm view of the present situation IN
your country the payment OF TINS Iarse
amount Of gold at this .ime re. ,h gsad
prove inconvenient. ENGLAND was giao
70 reapond to a proposal that the case
he tsIi<ed about and an effort MADE TO
And some way of meeting the dlmcuiiy.
Il feel sure that some way VIII We
discovered here by your federal reserve
%nsrd ana the Secretary of the Treas
nrV and there is no doubt that even
tIaily the balance of trade will again
be in your favor. In the montns 10
come England will be ouyins Al me-, is ..at
cancei the sum owed in a few months,
but II is bound to come In time. IN
the meantime arrangements may De
made so that you will not pc emoar-
raised, and yet England VII sorth-
sured that her money Will oe Aoi
coming when wanted.
Exchanges to Open Soon.
Sir George said that he believed the
London Stock Exchange would reopen
in a short time, and thought 1t prob
able that the New York exchange
would be opened about the same time.
His government, he said. was preparing
to prevent the calling of loans on Sc
entities that might ordinarily be ex-
nected to accompany the resumption or
stock exchange business. and with such
a guaranty he thought there was little
to stand in the way OF a reopen ing,
He does not expect to see the New
Vork exchange opened before that in
London. =
Sir George declared that he did not
believe American cotton growers need
fear that English manufacturers Will
buy Egyptian cotton In preference TO
American cotton.
THE Egyptian cotton is not used for
the same grade of manufactured
goods" said he. AT present the Eng
fish mills probably have a suhclent
supply on hand for few months.
They are naturally not anxious to buy
ton has reached the bottom price The
margin of profit in cotton Is too small
to warrant such risks. If you sue
coed in taking care of the surplus crop
1 have no doubt that you Will see the
English mills in the market again
quickly. -
II suppose the cotton exchanges in
New York and New Orleans will open
again shortly IL the plan Of the red
eral reserve board for d one-hundred-
and-fifty- million dollar loan fund goes
through. Then l think the Liverpool
exchange will follow. With cotton
Improvement in conditions and some
Of the balance against you Will De
wiped out of existence"