The Birmingham age-herald., 1915-01-14

the large financial centers. when discuss.
 ing the situation as it was in September
 obtained reliable information respecting | the harvests and the presumptive demand
 that would come from other nations for American food products, as we'll as for | manufactured commodities. The magni- | ture of these resources was estimated in dollars. The total sum was found to be colossal. The crops alone were esti-
 mated at $10,O00, 100000. All that was neces-
 sary, therefore, was to find some conven- tent mode of living" as they say in diplomacy, until avail could be made of
 these resources. This mode of living
 was reduced to the proposition that a
 gold pool of s1000OO,0OO be raised by a syndicate in which were all the national banks of the United States. The response to this proposition was instantaneous, so that it was possible at once to send to the representative of the Bank of Eng land at Ottawa, Canada, millions in gold against which exchange could be drawn which would be sold to American debtors to England.
 This movement was under way when Sir George Paish visited the United States. He did not then fully realize the
 magnitude of our resources or how they would be made immediately to avail in the emergency until he had been in the United States several weeks. Those with whom he talked were men of great ability and who were thoroughly fortified with exhaustive information. One of these was Henry F. Davison, now recognized as one of the great constructive forces in Amer ican financial and commercial life Some
 think he is the leader in that respect at least in our own financial district Mir
 Davison saw. as early as October, that there was to be a colossal movement of American wealth in the form of com moditfes to Great Britain and to other parts of the world. He perceived that this movement would inevitably become so great as to furnish the means by which, without any furthr employment of gold or any artificial arrangements be-
 tween the British treasury and the United States, American indebtedness on current account could be liquidated Mir Davison was inclined to think that within a few weeks the daily record made by the quotations for foreign exchange would reveal the magnitude of our exports.
 When Sir George Paish was recalled to England by his chief, the chancellor of the exchequer, MT. Davison went with him. probably feeling sure that all that was necessary for him to do was to per- suade the English authorities that with in short time our foreign commerce would restore normal conditions-that is. SO far at least as trade and the method or iQuidating trade were concerned. Gradually foreign exchange quotat tions told the story, the quotations constantly dropped until at last few days ago they passed below the point which is com monly regarded as the dividing line be- low which gold imports can be demanded by the United States.
 Within three months this momentous cnanse has taken place. There is no ionser any impasse or deadlock. Ameri- can banking conditions are substantially normal. We are lending money to foreign nauons We have liquidated our indebt- edness on current account abroad and apFarentiy we are now, or speedily will De. In position to demand payment in gold of balances due us
 Ine common opinion in the financial district IS that the United States will not insist upon imports of gold We are mora likely to establish great credits in Ion- don against which can be drawn the ex- cnanse which may be utilized in floating foreign oDligations which are accepted by the United States. All indications point to A constant increase in our exports. and we now have abundant opportunity to consider the expansion of our foreign trade Tn other countries than those now engaged In war. especially in South Amer lea. This subject will be exhaustfvelv discussed at the convention of American industry which will be held in St. Louis Lext week.