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Show HlH BANKER IS SATISFIED WITHOUTLQDK Sir Edward Holden Reviews Financial Position of Great Britain and Her Allies in the War. LONDON", Jan. 26, 5:40 p. m. Speaking Speak-ing at the annual meeting of the London City and Midland bank today, Sir Edward Ed-ward Holden, managing director of the hank, said that of 232,000,000 of gold which had flowed into America up to thend of 1916, 212,000,000 represent-ihe represent-ihe amount contributed by the en-jfnte en-jfnte all ic6 to form the basis of loans. Of the total foreigu loans of America Ameri-ca since the beginning of the war, amounting to about 160,000,000, he said -123,000,000 were borrowed by Lngland and her allies. The amount of gold required for reserve on this basis, he added, would be only 69,000,000, and therefore 143,000,000 of the entente allies' al-lies' gold had been used for some other purpose anil it would appear that 76,-000,001) 76,-000,001) were locked up under the federal fed-eral reserve system. Continuing, he said: "After the allies had so handsomely contributed to the gold reserve of the "United States, thus facilitating the exportation ex-portation of American commodities to the extent of 1,913,000,000 between July, 1014. and November 30, 1916, it seems difficult to understand why the federal reserve board should have endeavored en-deavored to place difficulties in the way of American bankers creating further fur-ther loans and particularly when they - could have had collateral security for new loans.' ' Hopes for Better Things. Sir Edward expressed hope that new agency arrangements with the Bank of England and with France might be the means of clearing up any difficulties which might have arisen in the past -and that the entente allies, after the great exertions they had put forth to increase in-crease the reserves of gold in America, would be enabled to take advantage of the increased loan superstructure." He also gave uttorance to the hope that it also would be mutually beneficial ia continuing to support British exchange in America. The speech of Sir Edward was a re-Tw re-Tw of the entire financial position of jCteat Britain and her allies before and jr since the war, with comparisons of the effect of the war financially in Great Britain and Germany. He alluded to "Vyie great economic, phenomena which -to be observed in both Great Britain Brit-ain and Germany, of countries overflowing overflow-ing with money and credit, of the large profits that are being made owing greatly great-ly to increased prices of commodities mid of the working classes earning larger wages than ever before, some ot (hem spending their money freely and others saving. Position of Germany. Regarding the financial position of Ciermauy, Sir Edward pointed out how Germany had adopted every means to maintain (he gold reserve of the Keichs-bank Keichs-bank at the necessary one-third of the note issue. Germany, he said, hod issued is-sued notes to the extent of 800,000,000 and Great Britain to the extent of 308.000,000. The gold in the Keichs-bank Keichs-bank now was 126,000,000, which gave Germany a percentage of 15.7, wdiile Great Britain had S 1. 000,000 gold, giving her a percentage of 22. It looked, Sir Kdward opined, 'as though Great Britain were keeping up her end pretty-well. pretty-well. Ou the basis of the 1.1 per cent reserve re-serve required bv the American banking bank-ing system. Sir Edward argued that the entente allies, bv the amount of gold they had sent to tho United States dur-i dur-i mg the war, were entitled to a loan up to 1.400,0(10.000. but that thev had received re-ceived under 430,000,000. Without expressing an opinion as to the propriety of German and Austrian . hanks having branches in England after the war, Sir Edward said he" thought, it would not be wise to exclude foreign hanks. He considered that the. English hunks ought to open banks abroad and that the British government ought to secure such facilities from the United States aud other countries for English banks as foreign banks have obtained here. He also strongly urged that Great Britain should adopt the metric system, saving that otherwise she would be placed at. a great disadvantage disadvan-tage in trade and commercial competition competi-tion with other countries. |