The Birmingham age-herald., 1914-10-02
Large Business to Be Speed fly Established With Ger
 tain South Americans
HARMONY NEEDED
 IN FINANCIAL CIRCLES
Bankers Think McAdoo Had Cause for Complaint, But Hope Future Warnings Will Be In Form
 of Private Letters
By HOLLAND

Ky HOLLAND
 New York, October 1.-(Special.) )-Nego. | tiations now in progress between repre- sentatives of European nations and al least one South American nation and tn, managers of some of the larger indus trial organizations of the United States are necessarily confidential.
 Vague intimations which hint at tn, object of the negotiations lead to the i'm pression that when completed they will be represented by a large sum of money | The presumption has been strong tha England, France and possibly Russi; | might be found speedily approaching tn,
 American market for the purpose of buy l ing arms and munitions of war. Business
 negotiations of this kind are, however
 necessarily of a delicate character. espe cially as some of the commodities whicl other nations may buy in the United States are contraband of war and woul, sea.
 | But it can be reported that the ev
 dences are plentiful that a large bushes. | is to be established speedily between th' l United States and some of the nations now at war and before long with one ol
 two of the South American nations. Tn,
 inevitable effect of business of that kinS
 which will reach foreign markets will b' greatly to stimulate certain lines of do
 nestle manufacture. A month ago thes' propositions were looked at somewha | askance since at that time no one coulS
 tell how soon the financial situation nigh
 be made fairly satisfactory. Today thu
 belief is strong that within short tim,
 fairly good International financial condi
 tions will have been established. l
 seems to be an opinion held with unan
 imity that the gold pool of $1O0.Qo0.0O0 O whose formation there now seems to b, l little doubt, will greatly and favorabl,
 influence foreign exchange qoutations. 1 So also it is the common belief tha
 the imposition of the war tax, if it be s' levied as to make the speedy collection
 of it possible, will also relieve the situa I tion.
 The War Tax and the Tariff l If we look at the matter solely iron the economic point of view, then there i
 discovered a close but peculiar relation l between the enactment of war tax tha
 will secure revenue of s100. 100000 and tn
 low tariff law which became operativ | just year ago.
 l Nobody. can now make any reliable es l innate which would show what the eff l feet upon the revenues of the new loy 1 tariff law in the first year of it's operation
 has been. The European war throttle' l the tariff law in day, exactly as it throt | tied the financial market. Exports practi
 cally ceased for while, and, curiousl,
 enough, the war has served far more er i fectually than a high protective tariff
 would have done to give that protection | which those who favor the protective pol 1 icy have thought essential for Americal | manufacturing interests as well as fo I American labor. The embargo upon i'm i portations occasioned by the check whicl | manufacturers of Great Britain, Bel ] gium, Germany and France have me
 with so far as the foreign markets hay been concerned must, if it be continued abundantly protect American manu lecturers from foreign competition. Il trade circles in this city the presumptio is general that we shall have resumed in ternational trade with Great Britain nor speedily than with any of the other ma tions which are now at war. Severa years must pass before Belgium-whic | until the war was one of the busies | workshops of Europe-will have recov
 cred. The United States is certain to gai
 an international trade with Canada whic | will to some extent make good the loss o it's trade with England.
 Those who are seeking for partisan ad vantage, whether for the republican 0 for the democratic party, will be unabl to find anything in the first year recor of the new tariff which will support partisan argument For the time being | therefore, the tariff is really eliminated
 and some of the politicians wonde whether this may not be to some exten
 influential in the congressional election | which are to take place next month, tn l influence being exerted chiefly in causn | a relatively small vote to be boiled.
 MT. McAdOo and the Banks 1 It can be reported that the bankers 0 1 New York who have taken the leadershi
 in perfecting plans for the relief of tn
 international money situation, and wh
 have done this in cooperation with tn administration at Washington, earnestl | hope that the discussion which has bee
 accustomed by Secretary McAdoos recen public stand against what he term
 boarding by some of the American bank
 will be speedily ended. Really, 1t is /, matter of trifling importance. It oc
 casioned a little breeze and that was all There, of, course. has been some regre
 that anything should have been said o
 done by any one in authority which migh impair the cordial rela tions establshe
 between the American bankers and tn administration.
 | l Naturally, the managers of some of tn | banks whose names were included in tn
 list made public by Secretary McAdoo ar annoyed. and have hastened to explain 1 that their excessive reserves were in | evitable and do not represent the spiri l of hoarding. It was deemed proper tha
 the chairman of the clearing house asso citation should say to Secretary McAdo | that the majority of the banks of Ne, York are dealing fairly with their GUS | toners, and are not exacting more thal l t per cent interest as the rate for loans. l There would be some inconsistency | there were 8 general denial of the accu l sation brought by Secretary McAdoo tha hoarding has been practiced by som 8I.... .wI.t.