New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-11

rcplied: "You know, no doubt that the
French system of banking never has
been unreservedly TO exchange gold TOT
notes. England. however, has done So
and hope will continue to do so. We
should get back into the habit Of car
rying gold sovereigns in our pockets
But once having tested the convenience
Of the one pound sterling and the ten
shilling notes, | doubt If the tngilsh
public would go back to using SOW
ercigns, even though they are asked 70
do so.
Lord Cunlire expressed the opinion
that undoubtedly the gold redemption
fund behind these notes would De
raised TO much larger percentage
than now obtains. 1--WE have not been
able to increase this fund for years
he said. "because Of the gold we have
been releasing to America.
Dollar Exchange Paramount
lie was diplomatic when it came 10
discussing the relative standing OF
sterling and dollar exchange IN the
world markets. As TO whether BRITISH
bankers had been discouraRing the eN
tension Of dollar exchange. he admitted
that some bankers had probably done
so. but the more important banking IN
tcrcsts i'm London had taken broader
view. He declared that naturally Eng
lish bankers were DESTROYS of seeing as
much business done in sterling as pos
sible. but il was recognized That iof
number of years. at any rate, dollar
exchange would be paramount IN the
international markets. During the
period of the war the United States
would probably continue as money
centre. but afterward there would
probably be more or less of balance
between London and New York.
The British bankers will not re-
linquish their arbitrary control OF the
sterling exchange market until the end
of the war. Lord Cunliffe said in this
connection that there now existed IN
London a committee of five bankers, OF
which he was the chairman, which since
the carly months of the war has been
directing its attention to maintaining
the foreign exchanges. This committee
has practically unlimited powers ana
meets daily. SO far it has been con-
centratng its attention on the New
York market. Other neutral markets
such as Spain. have been left more o.
less TO take their own course. W ltf'
the entrance of the United States into
the war the burden has been lifted from
the shoulders of the British bankers,
but the London committee has not been
dissolved. as il is felt that it may still
have some important work to handle
in the future.
Lord Cunliffe had little to say re-
garding Germany's finances, although
he expressed as his personal opinion a
belief that Germany's worst time would
be after the war, not now.
West Is Enthusiastic
The English banker, in company with
Mr.. Hamlin, Of the Federal Reserve
Board. came to New York after COM
pleting n tour of the Federal Reserve
banks Of Richmond, st. Louis, Chicago
and Cleveland After spending a few
days in the city they will continue their
journey TO Boston next week Mr..
Hamlin said he was greatly impressed
by the enthusiasm shown in the
West over the Liberty Loan.
After visiting the Federal Reserve
Bank yesterday Lord Cunliffe, with Mr.
Hamlin. attended luncheon held by
the American Bankers Association, at
which was present a large gathering
Of prominent bankers. During an in
formal discussion of the governments
war loan financing Lord Cunlifie, it is
understood. impressed upon his hosts
the necessity of placing the Liberty
Loan bonds in the hands of the in
weston instead of tying up the
country's banking resources, which
will be needed for other important
uses