The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-12-10

convinced that trade now follows the
loans, whereas it used to be said that
trade follows the flag and has always been
said since rail transportation began In
the United States that trade follows the
rails.
No one can be brought in touch with
leaders in the financial district without
learning that they are already contem-
plating the making of loans to other ma
tons. Possibly the United States may In
directly lend to France, although the rigid
attitude of neutrality which is now main
tanned by the government would undoubt-
ledly make direct loan impracticable.
Within few days loans have been made
to Sweden and to Panama. There are
some evidences that one or two OF the
South American countries are ready 10
approach the United States with intent to
negotiate considerable loans here. Russia
has already established large credit IN
the United States, although exactly wnere
| it Is and who are the representatives OF
Russia are subjects yelled In some mys-
terry American manufacturers VINO nave
been selling heavily to Russia recenuy
received pay in cash, but the payments
were made in such manner as to cover the
| transaction exactly as cashier chcchs
are sometimes used for the purpose OF
protecting the person who bought check
| of that kind.
| However. if Russia has not been able
to secure in New York precisely the KIND
of open banking facilities which 1t was
| reported she at one time contemplated
she is serving her purpose quite as well.
She is sending gold regularly to the Bank
of England. The belief in the Wall street
district is that the bank now is carrying
! between s50,OO0,000 and $4,000, 900 in sold
| to the credit of Russia. No doubt con-
| siderable portion of this gold viii be
used to facilitate payments for the heavy
purchases Russia Is now making in the
| United States. There seems to be an I'M
preston that Russia rather than France
! or Great Britain will be found to have
| been the largest purchaser of American
commodities during the entire period of
| the war After peace comes, the proba-
| bilities are considered good that Russia
may attempt to borrow large amount OF
money from the United States. If that
be done, much of the money will be in
| vested in repairing the damage done by
| war, and this will entail the purchase of
4
| How far removed from the truth or the
event were the predictions of some Of the
| ablest men of the United States a few
months ago is now disclosed by the &C
| tual situation upon the continent of Eu-
| rope and Great Britain. Some of the
| ablest of our men of finance felt justified
| in saying as late as April of this year
that it was impossible that great war
should take place because the worlds
| R,.o, ,oia a n
be prevented. One of these fnanciers
| stated that war would have taken place
at the time of the friction between Ger
many and France on account OF the Mo-
| rocco incident if Germany had not sud
denly discovered that she over very large
sums to Great Britain and that these
debts would be called if she persisted In
her attitude toward France at that time
This Illustration was used not in any way
to criticize Germany, but to set forth the
influence which the worlds high finance
has in world affairs.
So also, late in July one of the ablest
men in American business life. man OF
unusually accurate judgment. declared
that Germany would not care to force
the issue to active war because IL she did
the magnificent commerce which she had
built up would be destroyed, temporarily
at least.
Now there begins to be a better under
standing of the fact that there is some
thing more powerful than high finance
! in world affairs. There have been two
financial events which have occurred since
the war began that have served to change
the view that high finance represented 1y
: a few men can control world affairs
These events were the wonderful celebrity
, with which the great British war loar
, / was absorbed by the people of Great Brit
ain recently and the equally wonderful
! MI yrit1
many accepted a loan as high as $1,000,
600 600, and now appear ready to accept
another. There Is not financial 1nsti-
tuition in New York of International as
| ISOLATION in which the extraordinary Ia
cility with which these popular loans have
been made has not been the subject OF
much comment. There is general admis-
sion that they have been absorbed by the
public far more easily than was pre-.
sumed in the early days of the war to be
/ possible.
| The great bankers may possess billions
and, acting together, control more bill
, lions, but it is now recognized that the re-
sources of countries like Germany ant
: Great Britain and the savings accumu
3 lated by the peoples of these countries
are something against which high finance
, cannot stand. Then, too, within the pas
> 10 or 20 years the mobilization and utiliza
ton of credit have been very great, 81
that 1t seems impossible that there can be-
higher development of this resource. L
has been recently stated by high authority
in this city that the credit organization
established in recent times make possible
enormous payments on government bonds
to be made in short time, whereas thu
reimbursements can be extended over ;
very long time. In this way the publi'
can make heavy subscriptions to nationa
loans without being compelled to sci
property. The proposition is put In thi.
way: If citizen has to sacrifice propert.