The Birmingham age-herald., 1914-04-25
What the End Will Be

One comment IlequeltiN made mas been
 evidently stimulated by the recollection
 of the war with Spain. It has been often
 said that when that war began the Amer
 ican people had not the slightest sus-
 picion that in addition to securing the
 independence and pacification of Cuba 1t
 would bring the sovereignty of the United
 States over Porto Rico and the Philippine
 Islands. The consequences immediate
 and remote of the acquisition of the Phil
 ippines are of world wide importance and
 in case we shall ever be in trouble with
 Japan would be of vital importance.
 So it has been sometimes said that if
 the United States government finds 1t necessary to go to extremes in Mexico no one can with confidence predict the ulti-
 mate effect of such action. There is, of course, requent reference to statement
 alleged to have been made by Senator
 Borah that the end will not come until
 our authority reaches Panama.
 Another subject of considerable com ment is the effect of aggressive action
 in Mexico, if it be taken, upon the organization of the new national banking system. The national banks must sub
 scribe many millions to the capital stock
 of the federal reserve banks They have all been preparing for subscription de- mands. Although the payments are part ly to be made in instalments, some of
 them may be procra stinated at the pleas
 ure of the federal reserve board. Never
 theless, a good deal of money must be
 paid into the federal reserve bank soon
 after the appointment of the federal re-
 serve board. Money Is plentiful now, and the banks are abundantly fortified
 to meet the demands which will be made
 upon them for subscriptions for the fed
 eral reserve banks. Yet the mere pros- pect of intervention, which is a disguised term of war. caused the rate for money immediately to harden a little-a feature
 of the money market which is full of
 significance In case there should come actual intervention.
 Then and Now
 It is observed that there is frequent
 reference to the conditions which pre-
 vailed in the United States at the time of the Spanish war and comparison of
 those conditions with those which exist today.
 In the second year of President McKin-
 ley's first administration the country was
 recovering. it was said. with amazing
 rapidity from the demoralization which began in 1893. Moribund railroads had been brought to life. There had been nationwide liquidation. The free silver controversy was ended and the people had declared for single gold standard. A new tariff law, written for the most part py tic idtc 1NciSOD lJlnSlcy, UdQ Dttn put upon the statute books. The crops were very favorable and the condition of the country was So prosperous that notwith- standing the Spanish war we were able to liquidate, as estimated. approximately a thousand million of our foreign indebt- edness and to receive gold in such great
 amounts from Europe as to make it nec- essary greatly to enlarge the vaults of the clearing house in New York city.
 About $1OO 00O,0OO of gold came in within
 few months. We were able to send
 s20, 900 in gold or its equivalent to France on account of the stipulations of the treaty of peace with Spain, and to do that without the slightest ripple in the money market.
 Today business conditions are not very encouraging as whole. The situation
 with the railroads may not be as des-
 perate as some have asserted 1t to be- but 1t is serious American business is at- tempting to adjust itself to tariff law based upon business principles that differ from those which were embodied in the two tariff laws enacted since President McKinleys first administration. There are establishments of business to the anti- trust law which were unknown and un- thought of at tho time of the Spanish war. Tho iethargy in business is proved by the accumulations Of vast amounts of money In the financial eentsrs. There arc . good many Idle artisans. And the national banking system ts speedily to be organised in obedience to q law which in many respects Is radically different from the national banking law as t was at the tins of the Spanish war. 4 eom- parison of this kind Is inevitable, at least on ths part of those who may be called upon to asst tine government jH eass there bs Hssd of financial assistance at this time. That the American bankers will as readily FssPsHd ta appsais fer funds, if any be made, as they did in 1888 Is a tHattsF upon which there Is ne disagreement of opinion in tias financial
 w0f1d.