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Show OFFICIAL CIRCLES EXPRESS INTEREST IN LOAN ACTION WAPTfTN'fJTON, Vfr. l . W i t hd rn wal of the Hritish end French treasury hills by J. P. Morgan & Co. with the statement Lhiit it ;is ilon at thp dit-ertinn of the rfsiect lvf governments and out of a "dp-sii'f: "dp-sii'f: to show every regard to the federal mxorvf. no'rd" crn tor! much Interest In Kfivcrnmrnl circles, but drew no official comment further than a reiteration at the stati" d'P irtmmt that the reserve hoard's net ion was merely a matter of domestic rf incern. ScrctJi rv Tonsincr consulted peveral t i rnx.s wi ( h I he hnn rd before t lie issuance of its recent warnins to American bankers bank-ers io avoid locking up their funds In for t tun treasury bills likely to Involve loriK-lerm obligations, and advised the members tbaT. their action could not be considered in the slightest degree unneutral un-neutral or unfriendly. Nevertheless, as i t a flVeted foreign securities, gren t c;i re was tak.'.'ii to point out in the. board's statement I ha t t he reasons were purely domestic and the warning was not intended in-tended as a reflection upon the financial stand i ng of n ny country. In some quarters today it was suggested sug-gested that perhaps the allied governments' govern-ments' action was influenced, to an extent ex-tent nt least, by hostility in their own countries to tho short-term notes, on the around that they put their treasuries at I he mercy of A nierlcan ba nkers, who could renew or not , as they saw fit. It was stated officially Mint no government govern-ment had approached the state department depart-ment In any way concerning the notes, either before or after the reserve board's announcement. |