The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-16
NATIONS BANKERS
TO DISCUSS FUTURE
Glass Calls Conference at
Washington to Consider
Vital Money Problems.
SEES QUICK PROSPERITY
Railroads, Victory Loan, Res
toration of Credit and For
eign Trade on the List.
SEES QUICK PROSPERITY
sn.cinI Dlsnnfch 10 Tn Sur.


WASHINGTON, March ia confer
once OF representative bankers OF the
country to consider the vital monetary
questions facing the nation-such as
financing the railroads, the restoration
of normal credit and money and con-
sequently Industrial conditions. the pass
ing TO investors of the Victory Liberty
Loan and the maintenance OF the United
States as creditor nation before the
orld-has been called by the Federal
Reserve Board.
This conference is regarded by the
officials here as one of the most inn
portant in tho financial history OF the
United States, and they say that the
conclusions reached, II any of the prob
lens are solved, i'll be of far reaching
Importance and III stand out in eco
nomic history
Governors OF all the Federal reserve
hanks and the full membership OF the
advisory council of the Federal Reserve
Board, hlch is composed Of represent
tative bankers in every district Of the
country. have been called to meet here
next Thursday with the reserve board,
the Secretary of the Treasury, directors
of the War Finance Corporation and
other officials. The conference is ex-
pected to run TO next Saturday night
and perhaps beyond.
Secretary Glass i'll exchange views
with the conference and Is expected to
ask an expression on the Victory Loan
as to interest rates. maturities and other
details. These questions are a mat
ter of grave study IN the department
and every possible means to make the
loan popular, like all the ar loans, Is
being sought
-OfHcials who are TO attend the con-
ference realize that the United States
aud the world are facing financial prob
lens nsver before paralleled. These will
be taken up one by one by the confer
ence for solution.
Would Restore Prosperity.
While there is no alarm and no occa-
sion for alarm, the questions are re-
sarded as Of transcending Importance to
the nation. Upon them many officials
believe balances tho immediate prosper
ity for the country and the people
toward which they are striving. with a
view to ending the unrest and hesitaAcy
OF the transition period.
The whole economic structure OF the
nation will be gone over and pro-
gramme worked out to relieve the banks
as much as possible Of the huge amount
of financing that will be necessary in
the next few months for the Government,
the railroads and general industry.
One of the first questions taken up
will be that OF lowering rediscount rates
at Federal Reserve banks. These rates
were held at one level during the war.
Upon these rates the Federal Reserve
banks without exception were exceed
ingly profitable. They piled UP reserves
and surplus, and despite the increase in
surplus allowed them by law will in
some instances pay a balance to the Gov
ernment as a tax Reduction will not
he considered. however, from the stand
point of reserve bank prosperity.
The banks are in effect Government
institutions and the profits Of war times
are not expected TO last In any event.
\ reduction Is to be considered as a
palliative for the business and industry
Of the country. 1t lie expected to ease
money rates and make the financial
situation easier. Whether this Is adj
vsable in view of the fact that 1t will
work to stop to some extent a shorten
ing OF the currency of the country
viii have 10 be determined.
VIII Plan Railway Relief.
Refnancing Of railroads both in the
immediate future during Federal control
and after Federal control is to be dis
cussed. 1t Is expected that Railroad
Administration plans to meet the i'm
mediate situation created by the fall
ure Of Congress to I'LL the exhausted
revolving fund will be passed upon.
The conference will consider methods
Of holding this country in place as a
creditor nation before the whole world,
as well as methods to prevent depletion
- our huge gold reserves with the re-
noval OF war restrictions. This subject
includes not only the holding of credits
placed here by the Allies during the
war through their borrowings from the
United States but the trade credits in
our favor. This will take the confer
cnce TO ways and means OF promoting
and holding the foreign trade OF the
nation and TO questions as to how the
Federal Reserve Board and the re-
serve banks, with the War Finance Cor
poratlon's aid. can promote the expan-
sion OF American export trade
Establishment OF dollar exchange and
the complete restoration of the Ameri-
can dollar on the exchanges of the world
probably will be considered in this con-
neCtion.
1t Is expected that the conference In
its survey Of the needs OF the domestic
situation and the aid that can be ex-
r-nded will define the shadowy line In
>thc transition period where war time
authority ends and peace time regula-
tons and practices must begin.
The banks have resources never
equalled in history and have been
through a profitable period, but de-
mands are coming on them that have
likewise never been eQualled. AS a re-
suit it Is probable that Secretary Glass
viii be guided largely by the conference
views on the terms of the next loan, so
that II can be broadly distributed and
will not rest upon the banks.
Plunkett Confcrs on Agriculture.
WAsHINGTON March * Sir Hnraca