Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-12-02
Abandonment of Plans of New
York FinanCierS to Buy Short
Term Treasury Bills of Al
lies Announced.
WARNING OF THE FEDERAL
RESERVE BOARD IS CAUSE
Other Steps Are to Be Taken
to Obtain the Funds, It Is
Reported but Details Are
Not Given Out,
tsv MORNING JOURNAL SPECIAL LEASED wlRsl

New York, Dec. 1.-The abandon
ment by j. p. Morgan & Co. of the
proposed sale of "a limited amount of
short term British and French treas
ury bills at the request Of the entente
allied governments, announced here
today came as a surprise to the fl
nancial community. The announce
ment issued from the Morgan offices
stated that the action of the British
and French governments was taken
out of regard for the attitude adopted
against the sale by the federal reserve
board The surprise was heightened
by the fact that all arrangements for
the offering had been perfected.
Other plans to finance the pressing
needs of the British and French gov
ernments already are under way, 1t IS
understood, but they have not yet
reached a definite stage. A member
of the Morgan firm informally stated
that no other plans had been tormu-
lated, but it was learned from reliable
sources that the denial had been made
as a matter Of policy. The plans un-
der contemplation, it is Is tntimated,
will involve a large amount of dollar
credits" available to Great Britain, if
not to her chief ally
British institutions and private in
vestors still retain large amounts or
American securities although they
have been largely mobilized by the
British treasury There have been
no cancellations of orders for war sup
plies or other materials to the coun-
tries of the entente allies, according to
the bankers acting for those interests,
and no diminution of orders is eX-
pected.
The British government continues
to hold large reserves of gold in Can
ada and the more remote colonies, and
these reserves, it is believed, will be
employed to meet immediate eXigen-
cies, including stabilization of ex-
change.
The announcement was contained |!
in the following statement;
I'VE have been instructed by the !
British and French governments to !
withdraw their treasury bills from
sale. /
1--WE have accordingly expressed to !
those institutions and investors which |
had already plaed orders with us for /
these securities the wish TO be re- /
leased from the obligations to deliver |
and they have been good enough to |
accede.
This action is because as explained /
by the British chancellor of the eX- |
chequer and by the excheqUer and by !
The French minister of finance, these
governments desire to show every re-
gard to the federal reserve board, a
body of which the secre-
"a, x,F =, nd tho [
.roller of the currency are eX-officio
members,
Payable in New York.
1--WE may add that the sale in linn
ted amount of these treasury bills
payable in dollars in New York, have
never been an essential part of the (
lllied governments financial plans,
lut have for some time been under
with a view to furnish
ng a credit medium that would ac- !
.ommOdate the American banking de-
nands for an instrument of short ma
.urity and of such limited volume that
he government could always under
AXE to lay down gold in New York
sufficient to meet the matured bills
1T is believed further that these
)ills would have furnished at the end
If the war excellent measure Of pro-
ection to the American financial sit
lation, inasmuch as these steadily
obligations of the foreign
would have tended to
prevent heavy drafts of gold from this
market"
An informal statement was made
" a member Of the Morgan company
hat no other financial plans have
,een formulated in place of the ones
.baulOnod