The Washington times., 1916-11-06
Chicago Conference.

grave concern In Federal Reserve Board
circles. ~ -
Chicago Conference.
In this connection. reports from Chi
caso OF an important conference OF
hnanciers. such men as Henry T., Ds-
vison and George NJ. Reynolds, were
eagerly scanned In Treasury circles and
by members and officials OF the Federal
Reserve Board today.
,Reports of this meeting indicated
there was some talk about danger of
characterization OF gold by Great Britain.
Russia; and France. However, while
there has been great deal of de-
inonetization discussion in ono way and
another lately. IL IL not believed here
mere Is any serious danger of II. Au-
thoritlcS on the subject of gold in the
Federal reserve system say there is no
likelihood OF It,
How 10 Check Flow.
What is understood to have been the
real subject Of discussion at ChIcar go,
however. is the flood OF gold. how 10
check II, and in this connection the
matter Of feating In this country a b e.
unsecured loan for Great Britain. In
other words, II Is proposed 10 float a big
issue OF British government obligation :
unsecured. In order TO halt the flood of
gold. or partly for this reason, some of
the big bankers want to float the unse-
cured loan.
The Federal reserve board. 1t was I'M
derstood today, would not Interfere In
The sale or such ioan. That is TO
say. the board will undoubtedly take the
view that the fate or such a loan will
be settled by the American investor.
Unless he considers IL reasonably sound
ne VIII not participate in II, and II can
not be noatod.
People Could Judge.
The American investor. for instance,
might be willing to buy obligations Of
Great Britain unsecured because he
would regard the British government as
absolutely stable. He might not be will
ing to buy obligations OF some other
government.
The Federal reserve board members
are concerned over the huge gold influx,
which has melted over 500. 10000 in The
last two years. But the feeling I'm tho
board. judging from speeches OF some
or the members lately. II that there
need be no alarm over conditions II
proper steps are taken In time to con-
troll the drain expected after the war
u the drain Is gradual and not sudden. II
may do little harm.
Would Control Supply.
SN'Nh6 SVhAiiltDl the board
in favor of legislation to enable the
Federal reserve banks to control a
large share of the gold supply within
the country instead of having II scat.
tered about. II they mad this control
then. 1t Is pointed out, they would have
also control over drainage
The legislation proposed to allow Fed.
erai reserve notes to be counted as re.
serves by member banks would enabl,
the Federal reserve banks to get gold
The spectacle is presented of the United
states having more gold than IL need
and the Federal reserve banks not hav.
Ing enough.
The total stock OF gold and bullion II
the United States Is about s., 700, 900 100
This Is a staggering total. more thar
ever before held by this nation nnt
more than any other alton holds. nm
the Federal reserve system has littI,
comparatively of It. What the boa
or AT least part OF its members want, /.
to bring large share of this gold mn
der Federal reserve authority, 20 IL car
be controlled in time of stress.