The Birmingham age-herald., 1915-04-01

thC liliit cOiiltsp DdtlhtlS SdS, tiidt we have absorbed the American securities heretofore held abroad then the United States will no longer be in any sense a debtor nation.
 The South and Business
 MT. Harding's thorough understanding of business conditions in the south, and particularly of the cotton situation. com bined with his familiarity with financial conditions in the north, especially in New York, make that he Is reported to have said at Atlanta subject of considerable and very interesting comment in this city. He is of the first of the great authorities in our federal reserve system. so it is said, to make the announcement to the business men of the United States that in many parts of the country, especially in the agricultural regions, business con- ditions are now normal and promise rapid and satisfactory increase. What is of greater importance here is the unquali- fled statements that business conditions are becoming normal in the south. In proof of that he might have referred, it is said to recent incident of which report has been received with interest in this city. A recent issue of s, 525. 600 Az per cent refunding bonds of Georgia was bought by one person. The bonds carry the same interest as did the recent issue of New York state bonds and the premium Olltreu Dy lut SutctSSlul Diuucl was approximately equivalent to the pre- mium which secured the New York state bond offering. Georgia's credit and that of New York state are by this test on par. There is no banker in this city who does not realize that transaction of this kind is of itself good proof of business conditions in Georgia. Had all of those who made offerings for these bonds re- ceived awards then the total amount would have been very much greater than the $3,525,0Oo which the state offered for sale.
 Indirectly MT. Harding intimated that before this calendar year Is ended there will be visible and ,netion-wide demonstra- ton of d revival of business activity. His outlook into the future was from the point of view of member of the federal reserve board. If New York city, after the war bec0mes-as MT. Harding thinks 1t will the worlds financial center, that distinc- tion will come to 1t through the assistance of the federal reserve system, and while New Yorks name may identify the new money center of the world nevertheless that distinction will be shared by the fed eral reserve banks of all the districts in the United States. In explanation of this Mir Harding intimates that the member banks of the federal reserve system, both state and national, will next fall be wis., ably and almost overwhelmingly occupied with handling forelgn acceptanceS. Inere are good many incidental evidences that business is beginning to feel the change Judge Gary of the Steel corporation made reference recently to one of these evi- dences. The Guggenheims now report a material increase in their great indus try New York state banking institutions arc understood to have utilized their credit by accepting within the past eight months an aggregate of $25.0O0OOO Of lro NTt,oI of these funds have been used in mercantile and industrial operations The acceptances of which MT. Harding speaks are such as the law permits the banks of the fed eral reserve system to make. They may utilize their credit by accepting drafts drawn on account of foreign business. And this utilization. he thinks, will reach a fig ure which when the reserve system was authorized by law no one could possibly have dreamed of