New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-05-11
British Gold to
Aid in Raising
American Loan
Lord Cunlife Says English
Bankers Seek to Prevent
Money Strain


Of England. on his arrival here yes
terday, following a trip through the
Middle West, explained that the re
sumption OF gold shipments from Can
ada 10 this country was part Of the
plan adopted by leading bankers Of
England 10 facilitate the huge iinan-
cial operations in which the United
States government is now engaged.
Point was given his remarks by the
arrival during the day of sl3,600, 900
in gold bars from Ottawa, making a
total of S29,OOO.OOO gold received here
in two days for account Of the Brit
ish government
Lord CunlifTe is a member of the
British military and financial commits
sion now in this country. Meeting a
group Of newspaper men at the office
Of Benjamin Strong, governor of the
Federal Reserve Bank Of New York,
the English banker talked at length
of the various important phases of the
international monetary situation, e,-
pecially as regards the past and
future financial relations between
England and the United States. From
his remarks, it is apparent that Great
Britain is doing all in her power to
assist the United States government
in the latter's newly acquired posi-
ton of banker TO the Allies. The best
financial minds of Great Britain are
now heartily cooperating with the
leading representatives Of banking
opinion in the United States in an
effort to maintain easy money market
conditions on this side of the Allan
tic. he said.
English bankers will send US all the
gold they can safely spare. Lord Gun
life stated. Gold shipped here will
be used for purposes of maintaining
exchange at a workable level, but it
is hoped, the banker explained, that
the effect of these shipments will be
to reduce the rate of interest in the
principal American monetary centres.
On the other hand, the fresh move
ment of gold from England to the
United States ought 10 increase in
terest rates in the former country.
Lord CunlifTe said he could not speak
as to the effect on France because Of
its different monetary system.
To Keep Money Rates Down
1t was pointed out as being greatly
to the advantage of Great Britain that
interest rates here should he kept as
low as possible. II the United States
government had to pay high rates for
it's loans the cost of Allied borrowing
here would increase correspondingly.
Lord CunlifTe expressed the hope that
rates would not 20 up materially, but
he asserted that the Allied borrow
ings would unquestionably be heavy,
and it was too carly to say what the
effect would be upon the American
money market.
Asked concerning the new rccipro-
cal arrangement recently concluded
between the Bank of England and the
Federal Reserve Bank Of New York.
he replied that up to the present time
no business had been done, but that
it was hoped very shortly TO commence
working on a practical arrangement
for the interchange Of business be-
tween the two institutions. The dis
counting of commercial paper would
likely he the principal business be
tween the banks. Commercial paper,
according to Lord Cunlife. is now in
limited supply in England, owing to
war conditions II was inferred from
this that the English bankers look for
an augmentation Of the supply as
result of the new relationship be-
tween the New York and London
banks.
Lesson in Britain's Mistakes
In view of the new relationsh = now
existing between the United States and
the Allies as a result of Americas en-
trance into the war. Lord Cunliffe
pointed out that in financial matters
As well as in military matters The Brit
ish commission now in the country was
ready to give us the benefit CT their
There was no intention Of
debating what should be done. he said,
but it was hoped that Great Britain's
experience in war finance would be of
use TO the American government.
Included in the list of questions sub
mitted to the English banker for dis
cussion was one pertaining to TIE new
and extensive note circulation brought
into being as war measure. lie was
asked whether. in his judgment. il
would be long after the war before
England would be able TO redeem her
note issues with cold Lord CunliTe