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

curtailment of new capital supplies for the United States. That will compel us to find our own capital. Probably it is this which has persuaded MT. Paul War burg of the federal reserve board. .s re ported, that it would be an expedient measure if the federal reserve. banks are permitted to guarantee domestic drafts, or, as it is called in banking circles to issue acceptances. This would make available large amount of latent credit Some banks possess this to a greater ex- tent than others. but all well managed banks do possess this latent credit power Of course, there would have to be care full restrictions and careful supervision. But a great amount of new capital can be secured by the utilization of these hitherto unused credit resources.
 MT. Vanderlip calls attention to the fact that today the United States is, in natural resources. the richest country o1 the globe. and it has now not only the capacity but the equipment for produc- ing at home almost all the commodities which enter into International trade. ol- timately, if these resources are thus Ntia- ized as they must be through complete utilization of sound credit, one or the ultimate effects of the European war VIII be of great advantage to the On-teu States
 MT. Vanderip intimates that this eA perience may prove to be an obJect sies, son of the utmost value to the United States. Neither the banks as "nois ,s nor the people have as yet fully reahAeu what the credit resources of the country are. They have not realized this because these resources have not as yet been ei- fectively used. Credit has been TOT ,iie most part completely localized. For tnis reason for years there has been great supply of idle credit resources scattered all over the country which. had they been utilized . would have been sufficient to furnish large amounts of fresh capi- tai.
 Mir yanderlp Is persuaded that 1T We make effective use of our credit resources and call into employment resources or tills kind that have long been neglected, there is not the slightest doubt that the United States can easily finance it's crops no mat ter what the magnitude of them may be- not only at home, but in providing the means by which they may be carried to foreign markets, and, further more, will be able to find great opportunities in new markets.
 Our International Trade
 While encouraging to the fullest all reas- enable efforts to obtain foreign markets which In the past have been dominated by the merchants and manufacturers of tue nations Wn1cn are new at war, MI. Vanderlip is not persuadedNh we can go straight ahead, enter these foreign mar kets, especially in South America, with perfect ease and capture them. It should be borne in mind that we are bound to lose for a good while a good deal of our export trade to Germany, which in the past has been one of our best customers, and France. which will be in no position for a long while to buy much of foreign countries. We are likely to lose some cf our export trade to England. Further more, Mir vanderlip calls attention to the Canadian situation. Not the least of the interesting and important phenomena which have characterized our foreign trade for the past 10 years has been the growth of that trade with Canada. If Canada bought of us as much cotton as England has done, then our exports to the dominion would be the largest item in our entire international trade. But Mir. Vanderlip is apprehensive that our trade with Canada will not be very good or as good as 1t has been in the past four or five years by reason of the fact that Canada has been depending to some ex- tent upon England to aid her in famine ing her foreign trade. Our exports to Canada are explained in great measure by reason of the fact that they have been financed in Europe.
 are compelled to face a practical stop enormous export of copper to that coun- try For 1t is not to be presumed that Germany will be able immediately to re-