A GERMAN-AMERICAN.

Manawatu Herald, Volume XXXIX, Issue 1675, 15 February 1917, Page 2

A GERMAN-AMERICAN.

A CORRESPONDENT of the New York Outlook, a well-known American lawyer, who is thoroughly familiar with French public feeling, states that there is unexpressed hutvery deep resentment in France against the action of the United States Federal Reserve Board taken during the last week in November againsl the short-term Treasury notes offered for sale by the French Government and the British Government in the United States. The Federal Reserve Board officially advised the hanks of the country'not to invest in these Treasury notes, and thus gave an implied warning to

American investors to be cn their guard against the securities of the allies. The French as well as English critics who take this ground point out the fact that one of the most influential members of the Federal Reserve Board is Mr Paul M. Warburg, who became a member of the board on July 31st, 1914. At that time he had been a partner in the firm of Messrs Kuhn, Loeb, and Co., tor some 12 years, prior to which he was a partner in firm of Messrs M. M. Warburg and Co., the most prominent bankers of Hamburg. W hen he retired from Messrs Kuhn, Loeb and Co., on joining the 1' ederal Reserve Board, he also officially retired from the house of Warburg in Hamburg. But the head of the latter house is Mr Max M. Barlmrg, a director of the Deutsche Bank, who is the elder brother of Paul M. Warburg. The German firm of Messrs Warburg has been prominent in the negotiation of all the German war loans. Mr Paul M. Warburg became a citizen of the United States in 1911. In 1912 the German Kaiser decorated him with the Order of the Prussian Red Eagle for services rendered by him to the country of his origin in the field of finance. This, says the Outlook, is the ground of much French criticism of the disapproval, expresed by President Wilson and his Administration, of loans (o the allies on the part of American bankers.