The Birmingham age-herald., 1915-10-09

states. At first the majority opinion ap- peared to be that while the loan would De underwritten and might be after a tune absorbed nevertheless 1t was not Ilkeiy 10 be regarded as a popular loan. "ith this view the bankers who were in nesot'ation With the Anglo-French com
 mission did not share They knew what the public had no knowledee of-n.maIy that preparations for this undertaking had ions been under way discussed as long ago as last winter and in the early sprihs. It was these preliminary and in- formal conferences which made if all the easier for the American bankers and ,ne commissioners from England and france to come to agreement within about two weeks after the comm;ss,on met the American bankers in New York.
 inese are excellent reasons for sur nising that MT. Morgan and Mir. Dayi- son, who has been so intimately associ ated with MT. Morgan in the preparatory stages as well as in the final proceedings associated with this loan, have been con 1ident not merely that the loan would h., a. success. but also that it would be rom the first a very popular success mere were some reasons which justified the friends of MT. Davidson and MT. Nor gan Tn surmising that they felt confi oent that the loan would be not only nm immediate success. but would in fact be one or the most sensationally successful undertakings in the way of a large loan.
 Nevertheless those who were at first n little doubtful about the success of the loan are not seriously to be criticized for thelr view. Not until the negotiations were completed and an informal agree ment reached was there anything like accurate knowledge of what the amount and what the terms of the loan would be For sometime after the commissioners
 
 derstanding was that the loan would prob ably be for a billion dollars This ex- plains Why so many in the financial dis trict were inclined to doubt whether the loan would be. at first a success or whether it would be a popular success. rms doubt, however, was not confined to those who had no active part in the ne- gotiations. Presumably it was the be- lief of majority of the American bank CTS that If as large an amount as a bil- non dollars was agreed upon the i'm mediate success of the loan might be in April. For that reason, the amount was fixed at $500 00OO,0OO
 There were several things which the American bankers had in mind when fix ing upon s5OO,00O,000 as the maximum amount of the loan. One of these req sons was the fact that the United States had never before taken part. executing In moderate way, in the placing of a foreign loan. It was to be a new ex- perience for us, and it was essential that 1t be successful experience Having demonstrated that we are capable not only of absorbing. but of enthusia sticaIly absorbing, loan of this kind we are likely hereafter to be better prepared to accept the great opportunities which the leading men are now recognizing as cer- tain to be offered to us in the way of financing the nations which have been devastated by war. Germany and Aus tria included, if they need help, out of their endorsements. The experience which was associated with the quick ab- sorption of this stupendous loan will ir the view of the leading American bank CTS who aided in negotiating it serve as an excellent and valuable object les son to the United States, serving to place us in position to maintain our status as a world power.