Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-10-25

dom's continuing to supplement
American Government assistance on
this scale is shown by the following
facts:
Gold. We have exported to the
United States since the commence
ment of the war Including gold lately
ear1narked for the New York Federal
Reserve Bank) a. sum of S300 900 900
in actual gold. This has all been sent
on behalf of the United Kingdom, but
a considerable part has been borrow
ed or purchased from the other allies.
In addition, fairly substantial
amount has been dispatched 10 other
destinations. This represents an
enormous effort, of which the reserves
of the United States nave obtained
the benefit.
Sums Left i'll Reserve.
The United Kingdom now have LEFT
about $4,000 600 in the Bank OF Eng
lands reserve, & 2S,500, 900 i'll the cur
rency note reserve, and an unknown
amount estimated at maximum OF
ESQ 900 900 with the joint stock banks.
In addition there IS a sum of about
FLO 600 900 at the disposal of the
treasury but not included in any pub
lished reserve. This makes total of
about fl4O. 100000. There are virtu-
ally no government bonds in circula-
ton. This is about 6 per cent of our
banking liability and considerably
less than allotted circulation of the
government bonds III the United
States.
The amount of this Government
loan which we could part with, with
out destroying the confidence upon
which our credit rests. is inconsid-
cradle.
Securities-Before the Treasury
initiated their official mobilization OF
dollar securities large amounts were
disposed of through private channels
and also by the Bank of England,
who were Systematically engaged in
the disposal of Dutch government Sc
curities in New York
The following figures relate only to
the treasury scheme: Value Of securi-
ties purchased $I70,p0U,oU0; value Of
securities obtained on deposit as a
Joan 81 ,130, 900, 900: total S1.900,000,-
600. The above has been disposed OF
as follows: Sold in New York, $780,
900 900: deposited as security against
loans $780, 900; deposited as Sc
curity against call loans. $500, 0o0, 900;
still in hand sl5o,000, 900; total
| 81 800. 100000 tall figures approx
mate). We have now obtained virtu-
ally all the dollar securities available
| in this country and, in view of penal
| ties now attached, 1t is believed that
the amount of saleable securities still
/ in private hands is now of very small
dimensions. The balance in hand can
only be disposed of gradually and is
not In any case an important amount.
Resources Are Exhausted.
| In short, our resources available for
payments in America are exhausted.
Unless the United States Government
can meet in full our expenses in
America, including exchange, the
whole financial. fabric of the alliance
will collapse. This conclusion will be
matter not of months but of days.
The question is one of which it is
| necessary to take a large view. If
matters continue on the same basis
as during the last few weeks a finan-
cial disaster of the first magnitude
| cannot be avoided. In the course OF
August the enemy will receive the
announcement of which he stands in
so great need, at the moment of the
war, when perhaps, he needs 1t most
| Mr.. McAdoo suggests that the set
| Element of joint allied purchasing ar
rangements must precede any prom
Uses from him of financial support in
| Aug uSl- his lIidJSSly = SoNcl IiiltIIi
| do not know how to interpret this
statement. They are doing what they
| can to promote the establishment of
such arrangements and at the end of
June prepared a detailed scheme, on
lines which they had been given to
| understand would commend them
selves to the United States Govern
ment, for submission to the other
allies, but the settlement depends
upon the progress of events in Amer
| lea and the acquiescence of the other
allies concerned. They will instruct
| Sir c. Spring Rice to communicate
unofficially the details to the United
States Government imm ediately with
out waiting for replies from the other
allies. His majesty's government
cannot believe that, if these or other
natural and unavoidable causes OF
delay are operative for reasons which
may be out of their control, financial
support will be withheld and a ca
tastrophe precipitated.
| AS regards Mr.. McAdoo's concluding
passage, the chancellor of the ex
chequer desires to say that Lord
iNorthcliffe is the duly authorized rep
resentative of his majesty's govern
lions on their behalf. Lord North
cliffe has, however, suggested that the
| United States Government would
| themselves prefer that some one with
political experience such as an ex
| cabinet member should be asked tc
cross to the United States for the pur
pose of dealing with the financial stu
alton. If this is the desire of the
United States Government his maj
esty's government would gladly com
ply with it.
Copyright. 1925D