New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-12-19
Soreness

OOIeD6SS
The soreness produced on GER
tain part of the financial body by
the Federal Reserve Boards warn
ing against an unlimited" amount
of British and French treasury bills
is very obstinate. Each time it is
touched, acrimonious discourse is OBJ
tanned. If there is lull in war or
ders. some one is at pains to say
that it is owing more to the un-
friendliness of the Federal Reserve
Board to foreign loans than to the
thought of peace. If there is a
rumor Of negotiations taking place
for another large secured British or
French loan, the bankers who might
be concerned offer the suggestion
that as result Of the Federal Re
serve Boards attitude it will be very
difficult, perhaps, to place foreign
loans. Wall Street apparently has
allowed the matter to remain mis-
understood abroad. In the English
comment tone of bitterness fingers.
The London correspondent Of "The
New York Evening Post" says: "By
further restriction Of credits and by
smashing exchange you could not, of
course, stop the war; but you could
seriously inconvenience the Allies
The inference therein of political mo-
tives is unfair and disagreeable, but
it is merely an echo of what some
Wall Street people have been saying.
However, neither the practice nor
the wisdom of banking is confined to
Wall Street. In this, as in so many
other cases of late, there is evidence
Of cleavage between financial opin-
ion in Wall Street and financial opin-
ion elsewhere. The latest issue of
the Journal Of the American Bank
ers' Association, published in Wall
Street but existing nevertheless as a
national organ, devotes its leading
article to THE Federal Reserve
Boards Warning" and commends 1t
unreservedly. 1t reviews what led
up to it. especially emphasizing the
fact that after a conference between
the Federal Reserve Board and the
Federal Advisory Council, consisting
of Independent bankers from all
parts Of the country, joint state
ment appeared which vaguely eX-
pressed the very views which the
Federal Reserve Board one week
later felt obliged to set forth on its
own account in a more explicit man
ner. The circumstances which
caused the Federal Reserve Board to
do this had arisen in Wall Street.
Referring now TO the Federal Re
serve Boards own statement, the
Journal Of the American Bankers
Association says:
There was no chance apparently TO
mistake the meaning of this state
ment, but there was the usual mis-
Interpretation in headlines. One
newspaper said the board was for
bidding member banks 10 invest in
foreign securities Another said the
United States Warns Against War
Loans" Others sought motives and
purposes supposed to be hidden be-
meath a surface Of words.
As matter Of fact, the Reserve
Board was for the first time exercis-
ing its highest duty. 1t was adyis-
ing the banks out Of the fulness Of
its information. 1t gave the advice
after consultation with bankers from
all reserve districts. These bankers
form council which for the first
time justified its existence. Circum-
stances dictated the form of the
statement.
In reaching their conclusions they
had At hand much information. The
whole country is included in the
scope Of the observation of the mem
bers Of the Advisory Council. The
Reserve Board receives daily from
cash reserve bank a report Of its OPP
eratians. II was able, therefore. 10
.npr.cmen: the general knowledge of
&c -oni ell with exact information.
7, thinks the board might have
been justified in making its warning