The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-09-14
ALLIES DON'T WANT TO
PUT UP COLLATERAL

New York. Sept. 13.--After foul
days conferences and discussions with
the Anglo-French mission to the
lieving the foreign exchange situation
The nnanciers OF the country are con-
WINGED:
/ l. That all plans for the establish
/ ment of credits for England and
France in the United States In order
+ to relieve the situation must be formu-
lated on the basis that neither England
nor France. Jointly nor severally, will
put up any collateral Of any kind to
SECURE the credit. The attitude OF
the mission summed up is: England
and France do not have to put up
/ collateral; their credit is good
enough"
| 2. The two countries desire credits
amounting to at least one thousand
million-al of which liz to be ex-
pended in this country in the pur-
chase OF wheat. cotton. meat products,
| hay, grain, of all kinds and ammuni-
ition.
| 8. The purchase of munitions OF
( war is not the controlling cause OF
the mission. as both countries have
sufficient gold for that purpose. One
quotation repeated in the financial dis
| trict today was:
| I'VE have the gold In England and
France to buy munitions Of war. and
we will starve in order that we can
purchase them If necessary We dc
not have to buy your wheat and your
cotton and other products, but we
want to, 1t satisfactory arrangements
can be made"
or Mutual importance.
One other quotation, which was
passed from one banker to another.
was:
THE esta hlishment OF an adequate
credit Is of as much importance TO
the United States, perhaps more. than
! 1t ia to England and France"
| 4. So long as the work of the Anglo
French and American financiers is
confined to the single task of estab-
fishing a credit whereby normal ex-
change rules that may be apailed OF
! by the American producer. the United
States government will interpose no
objection. The question of neutralf-
| ty. already raised by the friends OF
Germany and Austria, has been care
fully considered. 1t has been decided
that there will be no violation of neu-
| trality
| s. The form in which the credit is
to be established has not been deter
mined and will not be decided upon
until financiers from every section OF
the country have had an opportunity
Ito express their views. Many were
much surprised that no form Of coll
| lateral was to be offered, while others
agreed at once that the credit of the
two great countries would suffice.
Bitter German Propaganda.
6. In perfecting the plans. both the
members of the mission and Ameri-
! can fnanciers anticipate a bitter Ger
man propaganda against the business.
1t has begun both in New York and
Throughout the West Local bankers
have been visited by both stockholders
and depositors Of Teuton leanings and
warned not to participate, while West
| ern savings banks in Chicago and
other cities have been threatened with
| runs on their institutions If they
use their money to help the allies
buy munitions.
Belief was growing in financial cir
| cles today that the form in which the
members Of the Angio-French mission
desire the credits to be established fol
the two countries In this country, viii
be bonds backed by the credit of the
| two countries. There was no statement
to that effect from the members o,
! the mission, but it was gathered from
the drift OF the various conversations
The form of the bond credit could not
| be prophecied, nor the way In which II
would go the American public. moi
the bond buying of the neutral world
through the United States. That viii
be decided later.
/ In the meantime 1t was known tina
every member OF the mission was bus,
with the conferees, Raran Reading
Sir Edward Hopkinson Holden. Sir Fl
H. Smith, octave Homberg and Ernes
Mallet, not stirring from the Biltmor'
lall day, while Basil b. Blackett has
! time to go out for short time only
; They saw many men at their hotels
J however, on the eighteenth floor, Man.
: of these visitors were out of tow,
, bankers who slipped into the hote
, thnd out again without being recog
nized. steered to the elevators. J. 2
Morgan, Henry r. Dawson, Walter +
| Frew. president of the Corn Exchang
Bank and j. ]. Hin. were among TIL
5 men recognized, and MIR. Hill cam
5 and departed strongly In favor OF BIZ
loan, for the save of the northwestern
wheat man who will have 400. 100000
; bushels of wheat TO sell abroad thi
: year. experimenting his strong inter
, view on this subject. came declara
ton from a source as authoritative a
i, he is, unless those countries do Obtain
: money here the wheat growers of til
t country may as we'll dump 200 100000
: OF this exportable surplus in LAX
Michigan for all the good it will d
r them"
. Neither Mr.. Morgan. Mr.. Daviso
, nor Mr.. Frew would talk when the
: came down from the conference room
: Mr.. Hill said he had nothing TO add I
t his statement earlier in the day.
8 Later Baron Reading speaking 70
E all themembers of the mission mad
r this statement:
Cannot Now Speak Definitely.
1--WE do not now In position I
I make a definite statement because w
: are studying conditions In New Yor'
4 and elsewhere in relation to America
exchange on London and Paris.
!. we have received considerable
: nuEl Der Of persons, principally banker
land other gentlemen who are inter
ested In the stability OF exchange. TIL
4 one thing that Is very striking about
I is that everybody Is agreed, as on
. could expect. as to the great I'm
l portance to be attributed to the regu
Al lating of the exchange SO as to pro
Wide MORA sta bile conditions tina hay