The Washington herald., 1916-11-04
COLD STANDARD
THREATENED BY
FOREIGN INFLUX
Great Bankers Meet to Discuss
Means Of Averting Fman-
cial Crisis.
HINGES ON LOAN TERMS
England. France and Russia Ready 10
Send Billion Dollars WORTH
of Gold Security.
By the International News servIee.D

CBy the international News servIee.D
Chicago, Nov. 3.-One of the
gravest financial problems that ever
confronted the United States was dis
cussed behind closed doors tonight at
the Chicago Club where were gather
ed twelve men associated with the
biggest financial houses Of the na-
tion.
1t is known that the conference had
to do with the financial relations of
the United States with Great Britain,
France and Russia, and it was said
that even the retention Of the gold
standard of money among the four
nations might hang on the outcome
Of the meeting.
MoEuIs Of Finance Present.
Among thdee gathered at the conference
were Henry p. Dawson. OF New York.
member of the firm of J. p. Morgan &
Co, financial agents OF Great Britain,
France and Russia: Charles Sabin, presi-
dent OF the Guaranty Trust Company OF
New York one of the biggest institutions
Of this kind in the United States; George
NJ. Reynolds. president OF the COntinentsls
and Commercial National Bank OF Chi
cago; S II. BurnhamI OF Lincoln. Neb.:
]. B. Forgan, Charles G. Dawes, Arthur
Reynolds. f. r. Hurlbutt, II. F. Raw
son. L. A. GODDARD. Samuel insult. John
A. Lynch. William A. Tlden. r. G. Dun
ham and J. f. Otis.
The tremendous effects which hang on
the result Of the meeting are foreshad-
owed in a telegram received tonight by
NJ 10 IN .FN
New York.
II read:
Information from reliable sources
states that the future of the gold stand
ard depends upon the attitude OF the
| bankers Of che United States in regard
to the next British loan. The amount
needed Will be d.0o 0o0en II the loan
is not obtSinable without collateral. Eng
land is prepared to form a new pool with
Russia and France 20 send 81, 600 600 in
gold The latter countries have hest
| tRted because their note circulation is
based on their gold reserve II is now
agreed to form a new pool for sending
monetize the gold. This is. indeed,
serious situation for the United States.
demanding quick action"
Drastic Action Unlikely.
Neither Davidson nor Sabin would. in
possibility of the United States on a
gold basis. having 10 face the three pow
erful nations on a silver basis. But Henry
| d. Baker, former commercial atIache at
Petrograd, speaking unoficially. said that
! he did not believe that the members OF
| the entente would take such a drastic
step. He said:
II am sure that the allies would do
nothing which would injure the stand
ing OF their securities. To do so would
| only prevent the obtaining OF further
funds. The question of getting all the
| money they need in the United States Is
only one OF interest rate. There never
was more money TO invest than in the
United States right now. and never a
greater demand for good bonds
But IL any such proposition should
be under consideration. silver and gold
would be placed on fair parity; that in
no way would mean any loss Of credit
II silver were made a unit Of money
there probably would be no injury to any
one holding gold money OF securities, 50
long as the silver basis. as arranged. sAss
according TO a fair market value Of the
silver in gold.
'It seems to me. however. unlikely that
England or France would for a minute
seriously consider going on a silver basis
and putting themselves in a class with
Mexico and China. IL gold were, demon
etized il would hurt the British empire
more than the United States, for the
British empire. including South Africa.
the Yukon and Australia, is the leading
gold producing country. while the United
States with Mexico and the Cobalt resion
OF Canada is the leading silver producer"