Show ENGLAND U. U S. S i PUll T TOGETHER i I T TO uR P V. V of Norman to America Keeps 2 Nations Na- Na i s Financial Friends I By FREDERIC WILLIAM WILE i WASHINGTON ASHI Jan 20 Arrival In this country of Montagu C. C i 10 Norman governor of the Bank of England revives interest in the purpose of American and British finance government and private t tc f cooperate operate in the stabilization of oC Europe Mr Ir Norman through his annual visits to the United States and through Ills his periodical contact With the leaders or of American fInan fI- fI nan e lIke Secretary Mellon and Governor Strong of th the Reserve Re- Re serve Iene bank ot of New York when these officials are abroad maintains maintains main main- practically unbroken relations relations rela- rela with Uncle Sams Sam's great money machine TIle The keynote ot of the movement movement move move- ment in progress was recently alrick b by Secretary Mellon In advocating advocating ad- ad the prompt ot of the Federal Reserve banks Mr Mn Mellon Menon said In the plans for the stabilization stabilization tion of the rest of Europe the participation par par- of the Federal Reserve banks is equally necessary The secretary secretary- ot of the treasury treasur added that the plans which are re now taking shape throughout the world look far ahead For this reason it Is important that no element ot of uncertainty un- un certainty should be injected into the situation such as would come froma from a ri delay In extending the charters of the federal reserve banks PLANS ARE LAID The Federal Reserve banks with the Bank ank of England are to be bethe bethe the bedrock of the new financial structure even thou though h the credits they extend for stabilizing purposes may never be actually used Great Britain itself has never never used the gold credit granted it ity by y the New York Federal Reserve bank ank in April nor the credit which the hank bank established established es- es with J. J P. P Morgan an Co about I the same time Though riot directly responsible for John Bulls Bull's striping achievement in restoring tile the fl pound sterling to old time parity par par- ity ity- with the dollar within seven years rears after the armistice the American American Amer- Amer ican gold credits were were an undeniably ably bl strong strong- factor in normalizing the British gold standard Similar arran arrangements for stabilizing the franc now worth less than 4 Cents in American money and the Italian Bra quoted at about 4 cents have ha been in intermittent progress for fOI many months Governor Governor Gov- Gov Strong of the New ew York Federal Federal Fed Fed- I eral Reserve bank Undersecretary of the United States trens- trens r and Governor Norman of or the tn Bank of England wele protract d conference on tile the subject in Europe last year ear DEPENDS ON ON FRANCE Americas America's readiness to join Great Britain In establishing a gold cred- cred ft for France for stabilIzation purposes pur- pur poses will depend very largely on whether hether the French parliament ratifies ratIfies rat rat- the Mellon Berenger debt settlement set set- et of 1926 This contingency Is one of the strong arguments now being u used d at Paris Parie by those who urge ure ratification at the earliest possible pos pos- sible moment The coincidence of oC the visits to the United States of the th Think Bank of ofEn En England l md executive and S. S Parker Gilbert the young American a agent agent- ent- ent g general for reparations at Berlin su suggests the possibilIty that some British American financial financial fi- fi new plans for assistance to Germany may maybe maybe be in process of evolvement There were reports that Dr Hialmar Schacht president of the bank was headed for New York and Washington at this time but neither German nor American authorities authorities au- au are aware that the German German Ger- Ger man finance chieftain plans a visit here T sum and substance of all this that States and Great Britain the only two really tant money powers ld in the world with normalized currencies and ample ample am- am resources of their own care lare marching shoulder to shoulder more closely than ever fa for the purpose of putting the international financial financial finan- finan cial house In order Governor Normans Norman's Normans Norman's Nor Nor- mans man's recurring sojourns In this country Invariably result in reneWal reneW renew- al ot of rumors that the Bank of En England Eng Eng- land Is seeking to engineer a revision revision sion of the British debt settlement with the America American treasury Governor Governor Gov- Gov Norman along with Stanley Stanle Baldwin now premier of Britain Brit Brit- ain ain was a leading the settlement settlement set set- which was effected at Washington four years ago this month The British regard the debt business business' with America a burdensome burden burden- some but a closed incident Their responsible f Insist iri hi and out of oC season tha John Bull will never ask Uncle S 'S Sam 1 for revision reduction cancellation or anything else plse That that if the United States some magnanimous day should come along and volunteer volunteer volun- volun teer a revision In one or an- an other Britain Would turn a deaf par ear But ahe proclaims that its it's a aCar afar far Car cry between an any asking for that sort of and her natural readiness readiness readi- readi ness to exhibit r receptivity it if what nevet- nevet neve would ask for comes al along In the shape of an American pi- pi ICer Sentiment t Sentiment in Great Brit aln aitT despite periodical c cancellation n eruptions in the United States is If unanimous that the United states expects to be paid in full PAY HUGE SUM The British treasury is now nav- nav inI the United States about a year ear Semiannually the British account to its 1111 for interest payments of 1 making a total of a. a ye year r In interest In- In terest charges alone The last halt half yearly Instalment was wa paid at Washington on December 15 I together together to- to gether with the annual instalment nn principal amounting to These heavy exactions exa every Briton acknowledges are difficult to meet They are responsible In large de degree ree for the high Income tax the British people must pa pay pay- But these anxieties long since faded out of the calculations ot of the British government The latter latter's energies as far as America Is concerned are wholly directed toward joining hands handi with this country countr in Improving ing Europe's war shattered financial financial finan- finan cial system That is why the governor gov- gov or of the Bank of England Is again In the United States stretchIng stretching stretch stretch- Ing his legs und under r the same mahogany any with Mr rr Mellon Welton and the other moguls ot of American finance Copyright 1927 |