The Birmingham age-herald., 1914-09-23

obligations on account of it's short-ti-ne notes which were marketed abroad.
 Almost all of these American debtors have abundant resources and unimpaire ed credit. exactly as New York city had when 1t entered into negotiation with an Underwriting syndicate. The trouble has been that there has been no way of util- izing this credit or these resources so as to provide funds with which to liquidate foreign obligations. The high quotations for foreign exchange at one time as high as s6 to the English pound. and the scarcity of exchange as well made It im- practicable to secure these evidences Ut credit for the liquidation of American debts held abroad.
 The Second Step
 There seems to be no good reason why the banks which are members of the fed eral reserve system could not as unit raise a gold fund of s150,000,0O0. The pro portionate amount each bank would be asked to subscribe would bear a small TO- ls tion to the reserve resources of each bank.
 Another point of view to which undoubt- edly the attention of the federal reserve board has been or will be called is this With the early liquidation of existing  will follow an enormous demand for American commodities food and maru- factures. In fact, a demand of that kinu has already been felt by the managers or some of our larger industrial companies. By way of Japan. Russia Is seeking nesc- tiations with American industries Wh'cn if carried out will be followed by neaNy exports from the United States to mat country. It is not unlikely that transaction oi magnitude to which Chile is one Of the parties and American industries the other will be completed in the course or lew days. to be followed by Chilean invest ment of several millions in American con- inodities The public has no conception of the magnitude of some of the proposi- tions which have recently come iron Great Britain to the United States. If de- mands of this kind are already felt by American industries it is reasonable to suppose that when normal internation1l al financial conditions, at least between England and the United States are re- stored there will come an overwhelming rush of orders from various parts of the world to this country.
 To End Chaos
 The more the leading men of finance contemplate the proposition involving the | underwriting by the national banks of a fund aggregating s150,00O, 900 in gold where by American international commercial and trade obligations can be met the more strongly persuaded they are that the proposition is not only defensble and practicable, but will lead to the expansion of the favorable influences created by the underwriting syndicate of New York banks which has agreed to take care of the citys pending obligations.
 If the cotton situation be relieved, as in all probability it speedily will be. then the United States will be in position to supply the demands of the world for agricultural products and in better po- sition than at any time in our history. Record-making harvests of wheat and almost record making other harvest hare by a marvellous coincidence character ized the American agricultural year, a year, too, when the continent of Europe and Great Britain are bound to make greater demands upon us for agricultural products than ever before. We are to have an unprecedented surplus of food products and an abundant supply of cot ton The demand for food will be the first which will come to us from foreign nations, for food is d daily necessary of life Later. when industrial conditions, especially in Great Britain, are adjusted to the emergencies of war, it is inevitable
 
 for American cotton.
 A Worthless Symptom
 Some of those who speaking as though they were in despair are pointing to the record made in the month of Au- gust of American foreign trade. They profess to see no reason why the sad story of exports for that month will not be repeated for many months.
 Yet that is not the common opinion in this city. International trade, like in- ternational finance, was parayzed for a time by the gigantic and sudden cyclone of the European war. This condition was inevitable, but there was no reason for believing that it would be long continued After financial difficulties are removed. exports of American commodities should be easily resumed, and when resumed they are certain to surpass any past rec ord.
 Great Britain is still enormously rich. The credit and resources of the empire will not be seriously affected even though the war upon the continent continues, as Lord Kitchener believes it will, for d long time Great Britain is in command of the gold supplies which flow from South Africa now that commerce is protected by British cruisers. Englands S invest ments in other lands should bring her an , although until the financial tangle is un- raveled there may be some delay in pay ing these obligations to English investors. Our bankers say that Russia is in very strong financial condition, and even France. which is now bearing so much of the Burden of the war. possesses grea resources both of credit and of gold. If, then, the national banks of the United States, acting in unit. would under write sufficient sum to enable American manufacturers. merchants and those an- gagged in commerce to utilize their credit and resources so that the payment of pending obligations can be made there seems't obe no reason excepting one-arsi that is related to the securities market - why there should not be a speedy revival of American industrial and business ac- tivity.
 Sunday School Conference