The Birmingham age-herald., 1914-10-29
Public Knows Little of Inn mense Volume of Com
 mOdities Going Abroad
EXPERT BUYERS ARE
 ALL OVER COUNTRY
Growth of Exports Is Especially Re- markable In View of Fact That So Little Cotton Has Been
 Sent
By HOLLAND

the sudden oneCk to American business,
 finance and the money market and to in- ternational trade which was occasioned | by the outbreak of the European war
 will be numbered among the chief tradi- tons of American business life, so also 1t
 is beginning to be said in the financial dis triot the tradition will be matched by one
 which hirtory will record as the most
 sudden change in international trade re-
 lstions which this country or any other
 has over known.
 | It was said thls morning that the United
 States was practically in comotose con
 dition from August till mid-September. We began to regain consciousness about the middle of September and now within a little over a month we are occupied with the greatest export trade we have ever known.
 Of course, bankers are looking with eagerness at the figures which give the money value of exports from day to day and week to week. They do this because they realize that exports of the kind and valuo which are now in progress cannot be continued for many weeks without shifting our position so that instead of eagerly searching for foreign exchange and desperately undertaking artificial methods by which our obligations to Flu rope can be met we shall find exchange in abundance because these exports will fur nish credit upon which exchange may be based.
 A certain similarity between the pres ent financial undertakings and those which <1.. ,l,,. .tvie of the United States has not escaped ob- servaton. For the public has only a vague idea of the nature of the financing operations which are now under discus sion The public does know that a gold fund of Sl00, 600 900 has been established l against which exchange may be drawn so that American debtors may find the in struments by which they can pay their
 debts to England. The public does know, because the thing is accomplished. that New York banks are providing New York city with the $S2,000,00o In gold which are | needed to take up New York city's notes now due or about to become due in Lon | don But as to other discussions and propositions nothing but the vaguest in- | tina tons reach the public. The men of 1 finance and banking have adopted a sort | of voluntary censorship and that is es- sential because transactions of this kind | involve caution and to some extent, l secrecy, until they can be thoroughly worked out.
 So With the Exporters
 l The industries of the United States | which are now occupied with the manu- l featuring commodities and with selling | those already manufactured to England l and to other nations have also adopted
 a sort of voluntary censorship. They do | not like to have the public know of what | they are undertaking partly because they may fear competition and partly because | they know that the foreign nations which are buying so heavily in the United States
 are anxious that their purchases should be kept from the Knowledge of Germany and Austria.
 | The only way, aside from occasional | reports, that the public does get knowl- | edge of this export is by the records made | at the custom house. For instance, in l four days in mid-October exports from | the port of New York were of the money
 value of little over s15,000000. This was l s. o0o. 900 larger than the money value of
 the exports for four days in the previous | week.
 The money value of our exports grad ually increases. And if the figure for Oc- | tober shall be maintained, even if there be no increase in November and Decem- Der, it will be possible to report on Jan uary 1 next that our exports for the last 1 cceded In money value the exports oi
 any preceding final quarter. This is al 1 the mere remarkable because exports o1
 cotton. which usually begin about this l time are. comparatively speaking, small
 The Financial Side
 | Occasional comment is made in the 1 financial district of a condition which seems almost paradoxical Sir George Paish has been for some days in con-
 ference with members of the administra- l ton at Washington, and with various
 financial authorities chiefly for the pur- | pose of reaching plan by which the cur rent indebtedness on account of trade and | finance bills due by the United States | to Europe can be liquidated with as little export of gold as Is possible. But France, | Italy and Japan are understood to be per- l fecting arrangements by which they can establish in New York credit or funds by
 means of which spot payment for these exports can be made. There seems to have been adopted. probably by tacit un-
 derstanding among American manufactur- 1 CTS and traders, a rule that commodities I bought at the present time for export 1 shall be paid for upon delivery at the sea port Those who have been buying com mod,ties assume all risk and pay all charges when the commodities reach our seaports. For instance the other oay there was delivered for the account of Russia a large consignment of American commodities When the articles were turned over to the steamship company payment became due for them Russia drew upon one of her financial agents in New York for large amoun., consider ably in excess of $100.000, and in that way the payment was made.
 In order to establish facilities by means of which immediate payment for these commodities can be secured, France and England, as well as Russia, are provid- ing credit in New York city against which they may draw drafts for payment when the American commodities are deliv- cred at the seaport. Some of the pur- chases will involve at least year before the commodities can be delivered. One of the nations Is now seeking contracts for American commodities to be delivered between this time and July 1, the aggre- gate value of which will not be far from $20000,O00. These commodities will not be delivered at once, but from time to time. and payment will be made upon delivery. It is known, although somewhat vague ly. that France is represented in the United States by expert buyers. there be- ling about 26 in all. Great Britain also has !la coneiderabie number of purchasers in |the. United States, although Ottawa has llnow become tho headquarters for those who as representatives of England are Iibuyhg in this country.
 We are sending gold in large amounts | to Ottuwa. 70 that our debts to England msy be .liquidated while at- the same time England has established q purchasing { -x--Lf a-