New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-05-06
SoeI1se of Dollar
Acceptance as A'd
To Reconstruction
c.,.rnor v. r. 6. Harding
Wv Il Reserve Board and Paul
n. Warburg Urge Devel-
ooment of Market Here

,.r.looment o. the market for and
~ :. the dollar acceptance will con
~ ~. "a important measure to the
80. .s-.,ion Of normal conditions in
-. and throughout the world, Gov
S-. " p. G. Harding Of the Fed
s s.., Reserve Board and Paul NJ War
,yesident of the American Ac-
80 ...,ss Council. told the group Of
' '.x,r. at the spring dinner of the
,....r organization held last night at
=. Metropolitan Club
~rbe volume OF prime bankers &C
...,ces whether drawn IN dollars or
s.<rIinr. or in any other currency
80 Governor Harding, lis directly re
ia..a 10 the volume of the worlds
.,.5s which in turn is affected by
t e,sr and economic conditions. 1t
4oIlows. therefore, that anything which
.n W done properly to improve and
c~n -! Us .Jese conditions abroad Will
S,~o''' ~ important bearing upon do
N@,. 90, ron,n1erce and industry.
'n1 = .".rnor Harding declared that the
Go'ei p" pnserve Board had full APP
arsc,ation Of the work to be cone to
hing gradual restoration OF more
rormal conditions abroad out tha'
bo.b the board and the Reserve banks
neonssari}v observe the limitations OF
40 etatutes, defining the powers OF
+be Reserve banks in foreign hnanclng'
sr5 emnhasized that the essential prln-
c'nle OF the act is liquidlty,
"Et may well be, however, that the
Federal Reserve system can render eff
fective aid to foreign countries by
MAINTAINING a strong banking posi-
ION" he continued "The marketing
Of foreign issues in this country is
elected far more readily in the pres
ont circumstances, when the position
Of the Federal Reserve banks is strong,
.1an was the case two years ago, when
The situation was the reverse.
Destiny of Europe
Il have no doubt that the financial
interests of this country recognize the
Great benefits which would accrue to
American agriculture, commerce and
industry from the economic and politi
cal Sterilization of Europe, but the
destines Of European nations are, after
al. in their own hands,
In connection with a review OF the
Development Of the American bill mar
set Governor Harding stressed the
Importance OF the new regulations
recently announced, which, in effect,
rec the market from the strict con-
ro deemed necessary during the early
stages Of its growth.
Mr. Warburg characterized the mOdl-
fcation Of the acceptance regulations,
enabling foreign users of American
banking facilities to use dollar drafts
with approximately the same ease as
s.erling credits. as "a milestone Of
historic Importance in American bank
lng evolution He made a special plea
or concentration now on building up
me use of the trade acceptance, urging
nat the Reserve banks should be per
mitted 10 buy in the open market this
c.sss Of bills with third name in
forsement
Liquidity Importance
rorougb joufda t.oD'5 said . Mr. ~ War
fgrg sour e sfrons, ber b w
syoidinc &c far - nossibie +n anra aar
rs borrowers from Fedorai " Pos pr,,o
hanks. Il Is all no ,0oro ,,,n 80
or ber ~ have a, t 80 ''Vt ~, 'Hipoi Va
.a1 in tba on n, p "arL "4 +bn ,net h Gan
bic 10 draw on tbe rc ~ ,l' 81 +be
Federal Reserve avs,or' +.i 49, ~ e,o'
nearing az bsntors ''''" "''''0'' APP
"Federal P 'a,,or,o bouLs -. 49, o.Ao
hand = tbay war+ 60 a. ro on re Q tL