The Birmingham age-herald., 1914-09-01
The Market Situation
 Is Without Precedent
This the Principal Handicap Confronting Financiers. Question of no Foreign Exchange Serious Matter. Hollands Opinion
Bx HOLLAND

New York. August s1-tSpecial )--Just q weeks time was required for the Ameri- can bankers in cooperation with the gov ernment, to get the financial situation and the money market fairly well in hand Just week from the day of the closing of the stock exchange as a pre- cautionary measure. official announce meflt was made by Secretary McAdoo and by the comptroller of the currency, John Skelton Williams. that the situation was well in hand. This announcement was confirmed by leading New York bankers and by those of Boston, Chicago and other large financial centers From the leading Boston bankers came assurances that there was not the slightest danger of money stringency in Boston, the banks being supplied with ample funds
 Just as the banking and money mar ket situation was found to be satisfactory, a new phase of the complications occa- stoned by the European war began to command earnest discussion. It was the enforced embargo upon foreign trade that commanded attention. It came so sud denly that for time there was paralysis in every department of American activ- ity which reflected our foreign trade
 The problem was a serious one for several reasons. First of all, it brought about an absolute deadlock so far as for eign exchange was concerned. The great masters of foreign exchange found them selves face to face with a problem for whic.: there was no precedent. Had there been any precedent to which these men I,ox iol, speedily solution of the problem. Ap- parenty we have got to get along for sometime, so far as our exports are con cerned, even after commerce is renewed without the aid of foreign exchange. If a situation of that kind is developed it will put us back in time wveral cen turies, when foreign trade Was actual barter and when the negotiable nstrd- ments which represented it were yet to be invented by the merchants of Am sterdam.
 In the next place, the blockade of-our foreign trade has seriously affected our great ocean ports. Galveston and New Orleans, which are great shippers of cot ton-Galveston for that reason standing second among the export cities of the sQn1IeQ StateS-1Ounu lnefQSeiNeS 1nStant- ly in an impasse To relieve themselves of pecuniary obligations. some of the railroads which at this time should have been occupied full time and overtime in hauling grain from the western elevators to the seaports, felt justified in announc- ing that they should have to put an embargo upon this traffic. since they could not deliver the grain at the sea ports.
 
 The Way Out of It
 There is no. doubt that adequate finan- cial accommodation can be secured. all though by highly artiflcialized methods. whereby the movement of commerce across the ocean will be made possible. It was not unreasonable to consider proposition involving the setting aside of a fund of at least $s00000,0O0 for the purpose of facilitating the movement of our commodities across the sea.
 Max May one of the worlds great leaders in the field of foreign exchange, put the situation tersely into words when he said that just now Europe is bank> rupt. The United States must look upon Europe exactly as the individual cred itor looks upon a bankrupt corporation.
 In order to bring about the reorganiza- tion of great corporation which has been compelled to ask the protection of the courts. it is usually essential that con siderable amount of fresh capital be util- ized. This represents fairly well the sit-