The Birmingham age-herald., 1915-07-25

atole man of finance in New York. Probably none of the great bankers of the United States, who is not per suaded that some part of this loan will so De utilized as to facilitate payments In the United States for the supplies N hich Great Britain is purchasing here. Nor is there any doubt that a considerable portion of the actual cash with which Great Britain Is meeting It's subscriptions on account of the war loan has been secured through a sale of American securities
 MT. Davison possesses master mind so far as the whole subject of Amer iean securities. both those which are lodged in the United States-meaning tfose which are recognized in the se- eprities market-and those which are in the hands of foreign investors. He was one of those who were present al some of the conferences last fall when the attempt was under way to discover what the aggregate of American se- eutities held by foreign investors Is II vas due in part to his counsel that this difficult matter involving much de- tall work was put into the hands of a committee of which l.. r. Loree was the chairman Through the labors per fti meu under the supervising eye of Mr. Loree it was at last established that the aggregate amount of American securities. chiefly railroad, which were helo abroad. not including investments in American realty properties. mort rages and the like was considerably less than s3,000, 0O0,00
 This estimate confirmed one which MT. Davidson had already made. for he vas one of those who did not believe that the aggregate of American se- curities held abroad was as large as some of the estimates made it.
 The house of ]. P Morgan X Co. has Teen occupied greatly with receiving imports of gold from Ottawa. and 1t was under the leadership of this house that in the early fall of last year gold, approximately s1O0 100000 in all. was sent from New York to Ottawa While 1t was not with any intent so to speak act in London as to disarm the criti- cism which has been aimed against the Morgan house as the agent of Great Britain in the purchase of supplies that Mr. Davidson went to London, yet there is the question of abundant and req snnable facilities by means of which tLese enormous purchases can be paid Tor There was also the question of exchange. The leaders of the foreign exchange market a few days ago were able to report that the dollar is the only money issued by any of the na- tions of the world which is now at par with gold. At the time the statement was made, Russian money was at a depreciation of 25 per cent and a report from London this morning tells of fur ther depreciation. Italian money was at depreciation of about IS per cent; even the pound sterling was at a de- preciation. It was deemed inevitable even before Mir. Davidson sailed, that tEore be some arrangement however h;rhlv artificial It might be, which would prevent utter demoralization of the exchange market. That great mas ter of foreign exchange Max May. who in one year handled s2.0O0, 100000 Of it was quoted as having said that if tine exchange markets broke down completely 1t was inevitable that the consequences would be about as dis astrous to the allies to Germany and Austria.
 Tn the spring. shortly after Mir Da- vison returned from his first visit to London, he was quoted by an intimate friend as having said that whatever the other preparations for war may have been in the British kingdom the financial. prestige and power of Great Britain were being admirably con served and handled in a manner which matches. if it does not surpass, any achievements of the great financiers of the past The financial strength, re- vealed to Mir. Davison as 1t was last winter, would be. he thought, rlvealed to the world in the course of a few months. The event has Justified that prediction, and 1t was with the an-