The Washington times., 1920-04-08
Pool Believed to Be Oper-
atins Gold Shipments to
Lift Sterling Exchange.

That England had q plan TO enhance
the worth OF her pound In the United
states was morally certain to stu
dents OF foreign exchanse-and OF
England The moral certainty IL yir-
tually confirmed.
As might have been safely as
sumed, J. p. Morgan & Co. are efiec-
tive co-workers in the project. This
house has had frequent and crucial
experience In maintaining exchanges
against natural conditions. More
over, IL was what may be broadly
termed the fiscal agents of the Brit
ish government In the United States
during the war.
At the London end OF the plan TO
improve the pound. besides Morgan.
Grenfell & Co. is the National Pro-
yinciai and Union Bank OF England,
a 81, 200. 100000 deposits Institution;
or. more concretely. Sir Felix Schus-
ter, one OF the most skillful, ingenious
and resourceful nnanciers in Europe.
For a time, during the war, Schus-
ter, because OF his German origin,
was covertly maligned by some en-
vious rivals who would have cast
doubt on his patriotism. Since the
armistice. however. he has been
quietly but industriousIy active on
behalf OF English finance.
A conspicuous act was his success
In effecting a consolidation between
his bank, the Union OF London, and
Smiths Bank and the National Prov
inciai. perceiving as he did that for
England to lead In the worlds finan-
cial strength and to have the strength
must have big banks. Both the Ma
tional Provincial and the Union of
London and Smiths stood high In
England. Their merger was In a way
a master stroke.
Although Schuster declined to head
the unified institution probably for
the reason given above. he remains
the influential director. As such.
combined with his extraordinary abil-
ity, he was chosen by the exchequer
and by English bankers generally TO
direct the movement to advance the
English pound. ~
The formationai conditions were not
favorable. but they were far from
ample. The latest figures tell that
while England's imports have risen so
per cent. her exports increased a lit.
tie more than 100 per cent. Yet this
Improvement had not impressed ex.
change markedly between London and
New York, because gain in exports
was scattered among many countries
Even otherwise, were the outge
wholly to the United States, It had not
by more than 5 per cent justified the
amazing recovery in sterling.
Gold In any valid amount would
not-could not--be sent. The first
and prime and urgent recommenda.
ton made by Eneland's COMMITTEE or
currency and foreign exchange after
the war" was to accumulate gold and
retain IL at all hazards.
"It is imperative that the gold re
serve be greatly increased and a
Limitation put on the issue Of cur
rency notes"
Hence the gold coming from Lop-
don to New York "a relatively negli.
gible sunny on the pretense of pay
ing for some Anglo-French bonds
bought anticipatively was merely one
OF the strategic lodges to facilitate
the operations of the Schuster- Nor
gan pool to lift exchange.
For these operations the British
government majority and English
debtors minority are paying liberal
commission to the pool-and all the
expense of the maneuvres, OF course
The payments are well worth it
and the eminent workers are worth
their hire.