WAR AND FINANCE.

Northern Advocate, 27 November 1914, Page 5

WAR AND FINANCE.

AN EXPERT PREDICTION,

(Press Assn. —Reed. 7.30 p.m.) WASHINGTON, November 26. Sir George Paish, one of the British Treasury officials, who is leaving for London, stated that the United States would be certain to have great

prosperity during the war, but misfortune would be certain to come later. The world was now consuming Its seed corn, which meant nothing but loss and suffering thereby for. a decade. After the war Britain would be able to reduce her expenses on armaments, and it was likely she would be able to defray her entire cost of the war in a few years. Sir G. Paish expected that the leading stock exchanges would re-open in January, when he hoped that financial confidence generally would be restored.

Sir George Paish, who was for many years on the editorial staff of "The Statist," has been on a special ■ mission to America, in company with Mr Basil Elackett, another British Treasury official, and he is now returning to England to explain the position to British merchants. The importance of this mission can be conveniently indicated by the quotation of a statement issued from Washington early in October. "The delegates," says the statement, "are under instructions to discuss exchange dealings between the United States and England, and also the cotton situation. They come at the invitation of the Secretary of the United States Treasury. "So far, no invitation has been extended to Germany to participate in this conference. It is explained that any balance between this country and Germany is so slight "at present that there is no need for such a conference. If this need arises in the- future, however, it is expected that a similar invitation will be extended to the German Government. "It is said that there is no present intention of officials here to create some sort of international' bureau to handle credits, although this may be a result of the meeting. The recently formed syndicate of T New York bankers, which will take care of about £16,000,000 of American obligations to Europe, and,the £20,----000,000 gold pool to carry obligations amounting to that much more have done much in the opinion of officials to clear up foreign exchange conditions. ; "The principal foreign exchange market of the world, however, is in London, and the total so guaranteed by American bankers is not sufficient to meet all the obligations Incurred or in the making. "The conference was arranged for the purpose of reaching some understanding which will solve the problem of future transactions. It is possible that it may result in making it unnecessary for the American bankers to ship a large part of the £ 20,000,000 gold ; fund out of the United, States, and, it was pointed out,, may make it possible for the New York syndicate to meet the obligations they have agreed to meet with the actual transfer" of; £ 16,000,000 in American gold." :'.