The weekly tribune and the Cape County herald. (Cape Girardeau, Mo.) 1914-1918, 1916-11-10
NATION MAY HAVE
TO CHANGE BASIS
Financiers Say We May Have
to Relegate Gold and Take
Silver Standard.
RUSSIA, FRANCE AND
ENGLAND BANKRUPT
Securities Held in L. S. Against
Allies May be Worthless,
Say Bankers.
Special Dispatch to The Tribune.

Special Dispatch to The Tribune.
Chicago, H., Nov. 3.-The gravest
financial problem that ever confronted
the United States, which has been pre-
cipitated by this country's support of
the Allies, was secretly discussed at
the Chicago Club tonight by twelve
men associated with the largest finan-
ciaI houses in America.
1t is known that the conference re-
lated to the financial relations Of the
United States with Great Britain,
France and Russia. 1t is reported
that even the retention of the gold
standard of money among the four na-
tons hangs on the outcome Of the
meeting here.
The tremendous events which may
result on the decision of these bank
ers in conference here was foreshadow-
ed in kilograms received by big Chi
cage financial house from its New
York correspondent. One message
said: "From reliable sources it has
been learned that the future of the
gold standard depends upon the atti-
tude of the bankers in the United
States in regard to the next British
loan, the amount OF which will be
$1,0OO,0O0,00e.
at this loan is not obtainable with
out England being forced to furnish
collateral, Great Britain is ready to
form new pool with France and Rus
STA to send one billion dollars in gold
to the United States.
THE three European nations hest
tate to send any more gold to the
United States, because their note cir
cuIation is based on their gold reserve.
But France and Russia are agreed to
enter into the pool to send the billion
dollars in gold to the United States if
England will agree to demonetize gold.
This is a serious situation for the
United States and demands immediate
action"
The bankers, who assembled here,
refused to discuss the possibility Of
the United States on a gold basis, hay
ing to face the three powerful nations
on a silver basis or standard. If the
United States failed to join Great
Britain, France and England and &C
cept the silver money standard, it
would shatter the standing of the AL
lies securities which have been dis
posed of in the United States.
1t has been whispered in financial
circles, both here and in New York for
several weeks that a financial crisis
was about to be precipitated, but it
had been hoped that it could be STAYED
off.
1t is not definitely known what the
Allied securities held in the United
States aggregate, but it is a we'll
known fact that the bulk of them are
in the East. New York will be hit
hardest if some way to avoid the crisis
is not found.
Chicago bankers fear that a change
from a gold standard of money to a
silver basis would precipitate a critical
situation all over the United States.
but it is hoped by the fnanciers that
some way out of the crisis will be
found
An embargo on the shipment of arms
and foodstuffs to the nations now en-
gagged in the European war would pre-
vent further loss in this country, if
there is to be loss, but it would not
bring the present problems any nearer
a solution.
Chicago bankers, and, in fact, the
financial men who are in conference
here, are opposed to England negotiat-
ing a billion dollar loan here unless
those countries send gold in that sum
to the United States. One of the bank
ers in the conference is opposed to this
country becoming further involved in
the European struggle, and therefore,
will not consent to approving the loan
now asked.
New York, Nov. S.-A syndicate of
bankers has concluded the negotiations
for an unsecured loan of $4,000, 900
to Russia, it was announced tonight.