The New York herald., 1922-05-06
BOARD HAS NO FIGHT
ON STERLING BILLS
W. p. G. Harding Tells Reserve
Members There rs Room
for Both Exchanges.

w. r. @. Harding. Governor OF tho
Federal Reserve Board. speaking at the :
spring meeting dinner Of the Amer )
lean Acceptance Council at the Metro 4
politan Club last night asserted that
the Federal Reserve Board has no dis
position to attempt to monopolize the
acceptance business for this country.
nor any thought that it could do so, for
1t Is recognized that the sterling biil,
which for 50 many generations has
played 80 important q part in financing
the commerce OF the world 10 an in-a
portant and necessary instrument. sf
Mr.. Harding said there is a field for
both dollar and sterling exchange and
the two great English speaking nations
can render better service to the worlds
commerce by participation on the part
Of both than would be the case it
either were excluded Continuing hs.
said: 4er
THE vo,ume OF prime bankers ac-c
ceptances, whether drawn In dollars
or in sterling. or IN any other cur-
rency. is directly related to the volumer
of the worlds trade. which In turn iss
affected by financial and economic
| conditions It follows. therefore, that
anything which can be done properly
to improve and stabilize these condi-
tions abroad will have an important
bearing upon domestic commerce arsdr
| industry. a07
| This country, which before the war
was debtor on the worlds balance
sheet. is now a large creditor nation
/ and as such is affected. financially az
well as commercially. by changes in
conditions abroad A large part, prob,
ably 40 per cent, OF the worlds gold
stock is held in this country and muca
interest naturally attaches everywhere
! to any question as TO how the banking
xNeA ivy
without detriment to domestic inter-
ests in bringing about gradual restora--
tion OF more normal conditions abroad.
1T ia Of interest TO note the extent to-
which the growth OF acceptances has
centered in New York city. Since Junei
80, 1919. when separate figures OF ae-
ceptance liabilities OF member banks in
New York city have been available In
published reports the liabilities Of these
banks have constituted over 80 per cent
OF tho lis bilities of all member banks
and this percentage has increased very
appreciably since June, 1890" hg
Paul NJ. Warburg. president OF the
American Acceptance Council. said: ~
"T'he main burden of financing tho
world will rest on England and ths.
United States 1t will not be q ques-
ton OF crowdng one another out: ths
burdens viii be 50 heavy that both coun-
tries win be grateful for having a part
ner shouldarlng a SUBSTANTIAL share in tbs
load
'T believe that among the thousand
steps TO he taken forward. at least one
will be taken with the assistance OF tho
American bankers acceptance. WIEN,
proper moment comes--and hovV
- s.. Il were soon--and some on
strongest European countries win
ready to return to their antebellum. q -
modified system OF free gold payrnenNA\
we may. In my personal opinion. find IN.
timely to 60 before Congress ana 4 y
for an amendment that for a certain
number Of years would give the Fed
Crnl Reserve Board the power TO permit
member banks to accept finance drafts
drawn by banks OF countries completing
their fiscal and financial rehabilitation.
"Just as much as before the creation
o. the Federal Reserve system British
bankers granted large acceptance credits
70 syndicates OF American bankers ia
times when excessive gold exports
threatened our country. so we ought 20
be placed IN q position where we eau
offer the services Of American banking
syndicates TO strengthen and protect Icu-
ropean countries striving TO return"
Sir Seelig Schustor. head OF the Ma
tional, Provincial and Union Bank Of
London, discussed the origin OF bank
ing and defined bank as "a corporate
body OF people who accept money from
people payable on demand lie saitf
that British commerce To-day ~ suffers
INK from unscrupulouf neighbors and
that the chief problem confronting Brit
ish banking is the financing or new ma
tions. The tendency In England as in
America he said, ~ tho liberal grant
ing OF acceptance credit. which has been
abused.