The sun., 1919-04-23
FOOD NOW MEDIUM
OF CASH TRANSFERS
Money to Nine European
Lands to Go Through Re-
lief Administration.
FEDERAL RESERVE PLAN
PrOvender Bought Here Will
BE Sold to Europe in It's
Own Currency.


FEDERAL Reserve Board all money trans
fers TO nine Central European nations
must be made through the American
Relief Administration.
Food will be the sole medium OF ex-
change. Cash paid in 20 bank here
for transfer TO any of the countries
concerned will be turned over to the
A. r. A. 1t will be applied to the pur-
chase of food here. This food will be
sold TO the people of the Central Euro
pean nations at it's value in their own
currency, which will be used to pay
the amount of the transfer.
Announcement to this effect was
made by Edgar c. Richard and Theo-
dore +. Whitmarsn, joint directors of
the American Relief Administration
with Herbert Hoover. An order of the
Federal Reserve Board putting the plan
Into effect was sent out by Fred I. Kent,
Director Of the Division OF Foreign
Exchange.
Russia and Germany Ignored.
The plan affects all transfers made TO
Finland. Poland. Czecho -Slovakia. Ger
man Austria. Jugo-Slavia, Serbia, Ru-
mania, Bulgaria and Turkey. No men
ton is made of Russia or Germany, and
80 Tar as these countries are concerned
the administration has made no definite
arrangements. The order does not af-
feet cash transfers to Belgium
Referring to the effect Of tho plan,
Mr.. Richard said yesterday in his Of
fee at lis Broadway that 1t would
enable the Administration to save a
great deal OF the 500, 900 900 which has
been authorized by Congress for Central
European relief work
1.-THE American Relief Administration,
under the direction of Herbert Hoover.
no explained. thus gains added re-
sources for the purchase and shipment
OF supplies through the utilization of
these countries materially in reestab-
fishing their trade and financial activi-
ties.
For four years the people OF these
countries have been cut OF from the
generous assistance received from
American relatives and friends before
the war. The post Office for some time
has not been selling money orders on
Central European countries.
Moreover, since the American Relief
Administration will work through the
local banks in the countries to which
money is RENTED, its cooperation will
help these banks to pick up their bust
ness again and begin to reestablish nor
NAL trade conditions
He said that the American Relief Ad-
mil istratlon will accept no money from
individuals. Private transfers must be
made through banks. steamship offices,
express companies and other concerns
doing foreign exchange business. These
MI in he Ana n
Relief Administration.
THE process by which the Anne ican
Relief Administration operates is as
follows" MIR. Richard said. 1.-The New
York office, in lis Broadway, forwards
lists to Mr.. Hoover at Paris, and at the
same time notifies him by cable the total
deposits and the countries to which this
money has been credited. On this side
food is purchased and started across the
ocean. On the European side an equal
amount of food is sold in the country for
which the payments are to be made. and
an equivalent amount of money in the
currency OF that country is thus obtained
ready for payment to the individuals
when the lists OF payees are received by
mail"
Public Exchange Rate Quoted.
The boundaries of Poland, Czecho-
Slovakia and Rumania, the order ex-
plains. will be determined by lines Of
present military occupation. The ad-
ministration announces that 1t cannot
be certain of delivery in border districts
OF these countries.
For the present. 1t was explained, no
definite exchange rate can be quoted ex-
cepting on Polish marks. for which
rate of 10l9 per dollar has been estab-
lished. Exchanges will be made at the
best rate obtainable. and according TO
best advices tentative rates will be as
follows:
Per dollar
Finland ....;,.----.-----.--. 81 Finnish marks
Ssecho-Slovakla ...--.......- 10 kronen
German Austria .....,....... 20 kronen
Jugo Slavia ACKNOWLEDGEMENTS. nv kronen
a nDia '''', '....:. 10 i sn"
No tentative rate is given for exchange
in Bulgaria and Turkey.
Dealers are forbidden to charge COM
missions exceeding Il Of per cent, with
a minimum charge OF 40 cents per re-
mittance. In cases where a dealers cor
respondent is involved. the correspon-
dent may charge a similar commission,
but in no case may more than two such
commissions be charged on one remit
-tance.
Referring to present conditions in the
Central nations, Mr.. Richard said that
women and children are the greatest
sufferers. The people of these countries,
he said, understand little OF the re-
Quirements of children in the way OF
food. They do not give them enough
fats, and disease is the common result
Of their ignorance.
1t is this condition, he said, that
makes it necessary at times for our re-
lief commissions to appeal for private
aid In their work, as the simple use of
Government funds Tor transfer of food
is not sufficient TO reach these personal
requirements of the populaCe.