The Birmingham age-herald., 1913-09-18

much the larger part of these new Sc
curities will pass into the possession
of the French people within "a few
months. The excellent machinery
which the French bankers have built,
whereby 1t is possible for French peas
ants and farmers to invest very
small amount in security through the
use of a certificate system, makes 1t
easy to utilize the savings of the
French people in this way It-is to be
financing upon a very great scale. The
French banks operate the machinery OF
this fanancing and the F'renca people
will furnish most of the funds.
The Real Hoarding in France
The great banks in France. however
still persist in boarding gold or in
keeping as much as possible in theii
vaults. IF anyone should offer a 1000
franc bill to the bank which Issued II
so as to secure actual money or cash
for it. the bank would be likely tc
pay about 20 francs in gold and max {
the rest Of the payment in silver OF
in paper money. A process of that
kind in the United States would be
sure to cause trouble and IL was, in
fact, when Secretary of the Treasury
John G. Carlisle said. in the spring OF
1892, that he might be compelled t.
pay government obligations in silver
because he had no gold that the cur
rency panic of the summer of that yeai
began. Everyone in France. however
knows that the banks refuse to pa1
out gold not because they have none
but because they want to fortify theii
resources with the worlds best and al
most exclusive money metal
What European Bankers Said
Another bit of Information brought
a day or two ago from Europe to this
city relates to some features of the
preparation of the currency bill now
before Congress-. According to this re.
port, Samuel Untermyer, the counsel
for the so-called Pujo committee, was
known by some of the administrator
at Washington to contemplate a sum-
mer excursion to Great Britain and the
continent of Europe. He was. therefore
asked If he would not in an informal
almost impersonal way give such as.
sistance to those who had this bill il
charge as would enable them to get o
fairly good understanding OF the Views
of competent men of London 5nd upof
the continent respecting certain .mone-
tary and fiscal subjects
In London, Mr. Untermyer met warn
personal friend who is also an interna.
tional banker of high reputation, one
whose name was never associated will
any of the hearings of the Pujo commit
tee. He willingly offered to introduce Mr.
Untermyer to some of the leading bank
ers of London, to some of the governors
of the Bank of England and to severa
men of very, high expert authority. He
also gave Mr.. Untermyer letters of intro
duction to bankers of Berlin and one ol
two other financial centers upon the con
tinent
Everywhere Mr. Untermyer was received
with courtesy. The questions he asked
were answered freely and the information
he sought was willingly communicated
He obtained a large amount of materia
and upon it he based according to gen
eral understanding, admirably clear and
very comprehensive report. 1t was al
excellent treatise upon several of the sub
jects which the administration and tht
banking and currency committee at Wash
irgton had centered much study upon
This report was shown to the interna.
tional banker who had made it so easy
for Mr.. Untermyer to secure the informa-
tion which he sought. He read it through
carefully and spoke of II in terms Of