The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-01-30

| to be no point of contact between Secre-
tary Bryan's exposition of the principles
neutrality upon which the United States
stands and an address delivered to a
body of men engaged in so technical a vo-
cation as that which occupies the Credit
Mems association. But a very important
relation is regarded here as having been
established between Mr.. Elridge's address
and one paragraph of Secretary Bryan's
letter.
Secretary Bryan's letter states that the
present administration at Washington
CARDS the lending of money by the bank
ers of the United States to any of the bel
ligerent nations a violation certainly
of the spirit and probably of the law of
neutrality. When the administration at
Washington first announced that this was
its belief that statement was made to
J. p. Morgan, who had under consdera-
ton the acceptance by American bankers
of French national loan There was
needed no more than the gentlest intima-
ton that the administration would look
with disfavor upon a transaction of that
kind to lead Mr.. Morgan promptly to say
that in view of that disposition there
States loan for a beligerent nation, at
least on his part.
All of the authorities upon international
! law so far as these have been heard
from, agree in saying that this attitude of
the administration is a new construction
OF international law with respect to neu-
| trail obligations
Therefore, during the life of the present
administration no American loan will be
| made to any of the belligerent nations. In
view of this the bankers are undertaking
by certain highly artificial methods to
meet the needs of beligerent nations with
out accepting as security national bonds
Canada has discovered that If short-time
notes are offered to the bankers these will
De willingly purchased provided the terms
are satisfactory, and the investing pub
, lie mas shown strong disposition to buy
notes or this character. Very likely dur
| ing the year 1915 Canada will again an
proach the American money market for
the purpose of replenishing her treasury
and presumably the transaction, if there
| be one will be similar to the recent sale
/ in the United tSates of Canadian short
time notes. Within few days, English
bankers, with the approval of the British
treasury have perfected arrangements
which will make 1t necessary to place
| English loans in the United States. A
credit which may be as much as 500 900 900
/ is to be established in London against
| which American bankers who have been
nominated as the commercial agents of
| England may draw drafts with which pay
| ments may be made for English purchases
| in the United States.
| So also France and Russia are obtain
| ing funds or credit in the United States
| by means of transactions which in no way
| violate the spirit of the communication
which was recently made by the ad-
ministration at Washington to Mr. Nor
| gan.
There Must be Great Financing
| 1t is becoming more and more evident
| that the bellAgerent and some of the neu-
| trail nations are counting upon the United
| States, both while the war lasts and aft
| erward, for assistance, especially of a
| financial character. Mr.. Eldridge in his
| address speaks with enthusiasm of the
advantage for the United States which
was gained when the federal reserve ,sys-
i tenn, by one of those strange condolences
which have characterized many incidents
4 of the war days, was established shortly
/ after the European war began. Mr.. Ell
bridge asserts that the federal reserve
act marks the greatest step forward which
this country has ever made in its financial
advancement. 1t is one of the greatest
constructive measures, ne says, that Con-
gress has given since the federal Con-
l Eress was established. This federal re-
| serve act will facilitate the grasping of
| the opportunity which the United states
now has for financing the present needs
of much Of the rest Of the world 1t is
tbs belief Of the leaders OF hnance that