The Birmingham age-herald., 1914-09-12
Handling New York's Fi- nancial Obligations This
 Week a Master Stroke
( NEARLY $1OO,OOO,OOO
 TO BE PAID ABROAD
Short Time Notes Given In London Have Become Due and Money Had to Be Provided In
 Some Way
By HOLLAND

By HOLLAND , New York, September 11.-(Special.)- )-At the conference between the federal reserve board and the representatives of the busi- ness and financial life of the nation which was held at Washington week ago, the most valuable feature, in the view of some who shared in the conference, was the evidence that American banks and Amer ican bankers who are not within the au- thority of the federal reserve board are not only willing but anxious to cooperate in every way so that at the earliest mo- , ment an approach to normal conditions may be reported.
 It was made evident at the conference that the leaders of finance and business in the United States realize that nothwith- standing the magnitude of our indebted ness to other nations of approximately some $5, 900, 600, nevertheless we can put ourselves into condition which Will make it comparatively easy to take ccre of this debt as the occasion for pay ments upon 1t crises and are also in con- dition to aid greatly other nations, es- pecally those which are in emergency because of tn 2 European war.
 In the fina icial district it has been the ] understandable ever since the Washington conference that there was revealed at that conferenec a determination to meet all our immediate obligations abroad as rapidly as they mature. In order to ac- complish this, however it will be essen tial that careful preparation be made so that these payments may be made in a ' systematic and, as far as possible normal manner.
 The Master Stroke
 What was said in the conference at Washington appears to be regarded as confidential excepting that there was will ingness to make a report in a general 4 way of the views there presented. But 2 there came visible demonstration of the de- termination of American bankers to meet immediately obligations when the finance officer of New York city. Mir. Prendergast, announced that he had been able to pre- feet arrangements with a syndicate of pri- vate bankers who agreed to take care of the entire issue of New York city notes. approximately $l00,000,000 in all, which must be paid in London for Great Britain or for France within the next four or five months.
 In private conversation Mir Prendergast has intimated that he regards this CO., . operation on the part of the bankers as \vital to the credit and to the prosperity of 'sFthe United States. The proposition may make it necessary for the bankers to fur nish nearly s100000,00o in gold. Whatever gold is furnished will be sent in all prob ability to Ottawa, where it will become automatically part of the reserve of the Bank of England.
 Great Leadership
 In the financial district this agreement ' haf II, officer is spoken of as Illustrating that the death of the late J. Pierpont Nor gan has not involved a loss of the leader ship which he So long maintain \ as head of his house.
 After the senior Morgan's death many persons asked whether his influence would hot be scattered and whether. his sue eessor would be able by personal power and intellectual ability as well as busi- ness sagacity, to maintain the Morgan traditions.
 It was recognized. however that the head of the Morgan house of today would lnot be called upon, in all probability, for Sa demonstration of his capacity as a leader along lines which identified his father. J. Pierpont Morgan was the ac- knowledged leader in revitalzng great corporations, especially railroads, some of which had become almost moribund and in assisting in the development of large industries of the United States. In the panic of 1907 his leadership was tacitly. spontaneously and immediately recog- nized. To his office went the foremost of the banking influences of Jew York not because they were summoned, but because they wanted to say to Mr. Morgan tha he could rely upon them for whatever as- { assistance it was in their power to give to shim.
 New Occasions Teach New Duties
 Since the death of J. Pierpont Morgan the feeling in the financial district has been that unless some new emergency arises there would be no occasion for the demonstration of ability to maintain the Morgan influence and leadership. If there was new emergency it would be of a kind sunforeseen. It would not have important relation to the readjustment of American business life to modern conditions, since that readjustment would be obtained without serious friction. It would not be