The Birmingham age-herald., 1915-09-02
CONTRAST WITH
 CIVIL WAR DAYS
British People Have Just Subscribed Three Billions--United States States Debt Small Com
 pared With Wealth
By HOLLAND

would come from insurance companies ir case Congress deemed it expedient to an. thorlze an issue of government bonds possibly for as much as C0000.0O0 foi the purpose of securing funds whereby l the United States can be prepared to meel any emergencies that may arise from the hostility of any nation. A few days age it was reported in real estate circles ir 1 this city that the great insurance com panies of New York had many millions which they would be glad to invest in good 1 real estate loans The presumption is tha were the Secretary of the Treasury au- I thorized by Congress to offer new ts- sue of United States bonds, in the agyre- 1 gate possibly as much as $500, 100000, a considerable portion of these bonds would gladly be accepted by the insurance com panies of the United States.
 The aggregate savings of the American people on deposit in savings banks, ex- elusive of those which have been placed in the postal savings department, are re- ported to be approximately two billion dollars. In the financial district the be- lief is commonly expressed that were the Secretary of the Treasury to offer for sale a new issue of United States bonds he would have no difficulty in finding mar ket for a considerable part of them with the savings banks, although that might depend upon the rate of interest which would be deemed expedient to fix for these bonds.
 In the opinion of those whose experience constitutes them req sonable authorities the Secretary of the Treasury could as swiftly and as easily place with the Amer ican people an issue of 50.0O0,0OO of bonds as Frand A. Vanderlip. when Assistant Secretary of the Treasury, passed directly from the treasury department to sub scribers an issue of $200, ,00O, 600 of Spanish war bonds.
 Of course, it is not fair to compare the transaction which was the first of the achievements of Mr Vanderlip with a transaction which Secretary McAdoo may undertake in case reasons of c,ner- gency or expediency influence Congress in authorizing an issue of new bonds for a much perhaps as s500,000 GOO. MT. Van derlp, when Assistant Secretary of the Treasury, had only one market for the Spanish war bonds. That was because the rate of interest was too low to make it possible to secure for this issue popular
 
 the national banks.
 MT. McAdoo will undoubtedly. in case he is called upon next winter to negotiate an issue of perhaps $500,0OO,000 of govern meont bonds, undertake a popular sub- scription, and the belief in the financial district is that any endeavor of that kind on his part would be followed by almost Instantaneous success Great Britain has recently foated at home a war issue of approximately s3,000 100000. Al! classes in Great Britain subscribed to this issue. If that can be done in England it ccr- tainly could be done at this time in the United States, for 1t Is within the uossi- bilities that ultimately Congress may deem 1t expedient to authorize the issue of three or four times as many bonds as will be authorized at first.
 Occa sionally the question is asked, "Cculd the United States, in view of the necessity of adjusting financial conditions would involve the establishment here of great credit or the absorption of heavy loans, also place a large issue of United States bonds?' Apparently none of the financiers doubts the ability Of the Amer icar, people to absorb whatever issues of bonds Congress may find 1t expedient to authorize, although at the same time the international fnanciers may be aid ing Great Britain and her allies so that they may successfully finance their obli- ga tions
 In 1863, the Secretary of the Treasury at Washington, Salmon P. Chase, having found it inevitable that the United States borrow large amount of money in or der to meet the expenses entailed by the war, summoned the late Jay Cooke of Philadelphia and asked him if he thought the American people would readily suh- scribe to an issue of large block ot bonds. At that time the government at Washington was expending at the rate Of $l,000,00O a day on account of the war and $l,o0o,0O0 a day seemed to the people an enormous amount of money to spend. For that reason. Secretary Chase was a little in doubt respecting the willingness or ability of the people to subscribe for a new issue of large block of government bonds MT. Cooke req ssured him and un- dertook to float tho issue within few weeks time. He did not prt
 than he could pei form. for he fioated the loan. If that were possible in civil war days. when the resources of the govern ment in gold were very small and when taxation was very great, 1t should be
 sible now. when the United States is in possession of approximately $2,000, ,0O0. GOO in gold when we have just put in operation one of the most effective banking sys- tems of the world, and when money is pouring into the United States in swift
 
 istration at Washington to contemplate with perfect serenity an approach
 American people with the offer of a large block of government bonds.
 Financing the Cotton
 When Secretary McAdoo, a few days ago, announced that he was about to utilize the resources of the fedesal treas ury and so utilize them that in co-oper- ation with the federal reserve banks the cotton planters of the south would be re- lieved from serious apprehension of heavy losses on account of their cotton, he in directly. so it is said in the financial dis trlct, illustrated the financial strength and resources of the United States. with some hint of the manner in which these can be made available in case the govern ment finds it expedient to borrow from the people great sums of money so that we can be prepared to meet any emer- gency. The national debt of the United States is now. In comparison with the na- tional wealth and resources, very small.
 The funded debt of the city anH the state of New York is greater in amount than is the funded debt which is repre- scented by the United States bonds3 Never was the country in better condition. ac- ,cording to the view of those who have given some thought to this subject, 10 place large loans with the peOpld than if