The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-08-01

in relation to the marketing of belligerent
loans in the United States was a flash in
the pan. 1t had become evident to some
of those in authority, ana was presumed
40 be at least the informal and I'M
acknowledged view of the federal reserve
board at Washington. that the United
States would find itself clogged with re-
spect to its dealings with other nations
unless 1t had a free hand so far as the
negotiation of loans with any nation, bel
ligerent or neutral, was concerned. That
change of view was made known when
recently France negotiated a loan and it
Is now emphasized by the willingness with
which American bankers perfected neso-
tiations with Sir Frederick Williams
Taylor, who Is the general manager of
the Great Bank of Montreal an institu-
ton which Is the financial agent of the
Dominion of Canada. 1t is the under
standing in the financial district that
there was little or no discussion respect
ing terms. Canada was willing to pay
interest at the rate of per cent on the
total issue of the Dominion notes.
1t Will Easily Be Absorbed
One of the members of the syndicate
which has underwritten this loan said this
morning that not the slightest doubt ex-
listed when the negotiation was completed
that 1t would easily be absorbed by Amer
lean investors. Money is plentiful and is
anxiously seeking investment of this kind.
We have an abundance of funds. the
banker said, which will make it possible
for us to negotiate other loans, national
In character, and the intimation seemed
to be that he had in mind pending nego-
tiations Of this kind. One of the features
associated with this loan has not failed
to attract attention in the financial dis
trict, for it is regarded al making it clear
that Canada Is ready to utilize all her
resources as far as this may be neces-
sary in assisting Great Britain in main
tain>2g the war until success is assured.
NeveS before has the Canadian govern
ment undertaken to place loans in the
United States, and that the Dominion now
deems 1t expedient, in fact. necessary, to
40 this, points to prevalent opinion in
Canada that the United States is now the
chief. almost the only, great money mar
ket In the world which has a free hand.
Transactions of this kind will do more
II the view maintained in the financial dis
trict is correct, to continue and increase
the commercial relations between the Uni
ted States and Canada, which before the
war was our best customer, If cotton be
left out of consideration.
Another feature of this transaction not
easily recognized by the public is the
demonstration 1t makes of the plentiful
supply of funds in the United States. This
condition Is not confined to New York. 1t
prevails everywhere in the United States
and is especially noticeable in the grain
producing sections of the country, where
the banks are understood to be almost
overfiowing with money, much of which
has been desposted by farmers.
If 1t were possible to make a record of
some of the propositions which bank
managers have been asked to consider.
there would be a realization of the fact
that there is a great deal of money in
the hands of the public. New England
funds are now seeking investment and In
large amounts In the listed and unlisted
stocks OF corporations which are occupied
In filling war orders Rarely a day passes
without propositions being made to the
officers of hanks in this city to this ef-
feet: 1--WE are willing to deposit large
sums of money in your bank with the
understanding that 1t will be left with
you for at least 80 days provided you will
allow us interest on this deposit" The
proposition does not appeal to bankers;
they already have ample funds, so ample
they are wondering how they can make
profitable use of them. There was a time,
not long ago. when the offer of a consid-
cradle deposit of money with the condi-
ton that it should bear interest even
though the money was Withdrawn after
80 days, would have been gladly accepted
by the bankers. Today offers of that kind
are turned down. The ease with which
the Dominion of Canada was able to place
loan of at least $4O.00o.0O0 In the Ameri-
can market is one of the best illustra-
lions of the plethora of money which now
characterizes this market.