Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-15
BURGESS IN PARIS
hTO DISCUSS MONEY
Official of Federal Reserve
and Bank of France Head
! Confer on Gold.

By Gable to The Star.
PARIS. October Is. = Warren r..
Burgess, deputy governor OF the Fed
eral Reserve Bank Of New York, Is IN
Paris continuing the exchange OF
financial views begun in Basel with
Clement Moret, governor OF the Bank
of France Interest rates and gold
movements form the main topics OF
his discussions.
The French are beginning to ADOPT
A saner view of American conditions,
and the newspapers are divided IN their
attitudes. Financial newspaper coolly,
if not distintereStedly, discuss the sit
uation, while the political press places
more vigor in its attacks as the eve OF
Premier Pierre Lavals departure Ior
Washington approaches. Among the
financial journals, Information gives
what is considered to be the flrst intel
ligent opinion in France on the Hoover
credit institute 1t says:
There is now a Saner appreciation
of President Hoover's creation OF ma
tional credit corporation. This eStab-
lishment could render great service in
making more liquid those institutions
temporarily embarrassed.
Holds u. S. Imitation Distant.
eff the credit corporation uses only
capital formed from subscriptions from
dSSOCldIe
ance of bonds, imitation will not arise.
Only rediscounting with the Federal Re-
serve Bank of frozen credits would bring
imitation or advances on poor paper.
This danger exists, considering the
precedentS established by agricultural
credits and the state Of mind in politl-
cal circles, but initiation is still dis
tant"
On the other hand, the political news
which the French view things. Midi Of
Paris writes
"As regards Europe, America is in
an artificial position. To restore conf
dence, to appease the worries which
the evolution of Germany might cause
and to restore an atmosphere favorable
for business, there are some initiatives
to be taken
Americans refused to take these
initiatives because they have a political
aspect Financially present in Europe,
America refuses to enter politically.
America refuses to cast its weight on
the scales to help maintain stability
in the Old World and respect for
treaties.
The manifestations in Bad Harz-
burg the recent Hitherto meeting against
the Bruening government would lose
much of their Importance If. for in
stance. President Hoover would inform
Germany that America considers that
the political clauses of the Treaty Of
Versailles should be upheld. Instead
America proposes to renew Germany's
moratorium, which signifies also
moratorium for world confidence.
Federal Reserve Bank statements do
not contain the secret of the dollar
problem any more. for its solution is
psychological and political"
Americans Sec Political Plot.
Other French newspapers say that
Mr.. Burgess has only half convinced
Europe that American finances are
still sound.
British newspapers adopt a similar
attitude. with the London Daily Mail
in its Continental edition writing that
American branch banks in Paris are
bringing gold from New York to hoard
IL their vaults here for security.
Less important French newspapers
gre already shouting the victory Of the
franc over the pound and the dollar.
Most Americans in Europe are be-
wildered by the malicious and mac
curate accounts of conditions in the
United States, and those who six
months ago refused to entertain the
thought that a plot was being To-
mented, are inclined today to think
that the developments have been has
tened by a financial combine seeking
political advantage. Others hold that
there is no plot, but that some gov
ernments are trying to take advantage
Of the situation now that a crisis is
here.
(Copyright, 1919