The Birmingham age-herald., 1914-09-11

interest are greatly in excess of the dif-
 ference between the money value of her
 exports and her imports.
 France. too, has made large invest
 ments in other lands, principally in Rus
 sia but there is considerable investment
 of such capital in the United States, es-
 peciaI,y in the south, where French money
 has been used to develop great hydro
 electric power plants.
 France has also been very partial to
 the bonds and notes issued by New York
 city. and it has been for some years the
 opinion of the city financial officers that
 a considerable portion of the New York
 city bonds that have been annually Of
 fered for sale has ultimately found it's
 way into the French investors hands. The
 war however, will make it necessary
 greatly to curtail investments by England
 and France. and probably by Holland, Of
 surplus capital in undertakings in foreign
 lands. It is expected that England will
 be called upon to finance not only her own war debt, but considerable portion of the war debt of France and of Russia. This situation explains to some extent the opinion voiced by some who are of busi- ness experience that the United States will not be able to go ahead very rap idly. at least until the war debts have been financed and permanently funded. What Must We Do?
 If this view be correct. then there is a strong probability that the banks of the United States, acting in cooperation, will be disposed to check any disposition to enlarge American industrial and business activities.
 The question has recently been asked
 many times why it is that the banks in the east, especially in New York. are piling up large amounts of cash resources and are reluctant to utilize these re- sources excepting to meet the imperative needs of their regular customers. MT Nanderlip, in his recent circular, says that the only way to stop gold exports and at the same time to preserve the integrity of our monetary system, Is by enforcing banking policies throughout tho co.l.try which would cause our people tC ruy less in foreign lands and sell more in foreign markets. This is gentle way of stating that the banking influence which can secure this good result is tight money. But it is necessary that if there be tight money that condition should ex- tend throughout the United States.
 Government Cooperation
 l The administration at Washington, and 1 especially the treasury department, has
 co-operated with the utmost cordiality of l spirit with the American bankers so that
 the emergency may be ended. It was not pOSSlDlc lUI llie government lo cO-OpeTdle | with the bankers as the government of
 Great Britain. acting through the chan cellor of the exchequer, co-operated with the Bank of England, thereby putting an end to chaos within "A hours; yet the l spirit of cooperation is precisely the same i in this country as it was in London. Ii l was a dramat tic occasion when the Secre- tary of the Treasury visited New York l immediately after the emergency was upon us, for the purpose of comparing l views with those who are in authority l in the money markets as to the best methods of meeting the emergency. II was cooperation of the highest order and it is now so recognized in this city when Secretary McAdoo earnestly urged 1 Congress to adopt additional legislation I whereby the emergency currency ac' l could be made more effective. MT. Me l Adoo knew that if the American bank | ing system and the American people were l to be protected it was inevitable that the l provisions of the emergency currency act 1 should be immediately avaiied of end 1 furthermore that Congress should greatly l enlarge these provisions. MT. McAdoo' $
 celebrity of action was quite as dramatic l as was the speed with which the chan cellor of the exchequer brought himself
 into conference with the governors of the