The Birmingham age-herald., 1915-07-10


 tional banker at his London home Only the vaguest hints of the nature of the discussions have been in circulation since Mr. Morgan's return, but these are suf-
 ficient to confirm the impression that he,
 with the London bankers and very likely
 the representatives of the British treas
 ury. discussed the expediency and practi-
 cability of negotiating the credit of Great
 Britain to such an extent as to relieve
 the exchange market
 All of the leading authorities on foreign exchange have been for some time per- suaded that unless the utter collapse of
 the foreign market is prevented, then the probabilities are strong that the war will be brought to a speedier termination
 than the allies believe to be possible. Max May-than whom there is no more quail fled expert in matters pertaining to for eign exchange-has not hesitated to say that the collapse of the exchange market would be a more powerful agent toward speedy termination of the war than guns, mighty armaments or vast armies. MT. May was presumably contemplating the
 possible termination of the war from this cause by the effect upon the allies of the collapse of exchange or of the means fo. payment of the stupendous war material they are now purcha sing. He did not say so but he is quoted by his friends as be- ing of the opinion that it will make but little difference to Germany or Austria how great the demoralization in the ex- change market may be, since these two nations now appear to be able to manu- facture substantially all of the war ma terial they need and to command food supplies and regulate the distribution of them. Therefore Germany and Austria can do what in the days of great emer- gency the Confederate government at Richmond did. They can compel the ac- ceptance of paper representing forced loans, no matter how great the deprecia- tion of that paper as measured by gold may be. The Confederate government maintained itself for four years entirely by it's internal resources, for with the ex-
 ception of comparatively trifiing loans made beyond the Atlantic the Confed- eracy had nothing but home resources upon which to place dependence.
 Vital to the Allies
 MT. Morgan and those with whom he was in conference in London could have been in no doubt about the necessity, if the allies are to maintain their struggle, of protecting foreign exchange or of pro- viding means by which payments for supplies can be obtained. It is observed that only a day or two before an an nouncement came from England that a British loan of not less than S100. 900 had been substantially perfected excepting one or two details the monthly circular of the National City bank contained a clear intmation that Great Britain would approach tfe American money market or would make terms with American bankers by means of which British credit could be so utilized as to correct to some ex- tent, at least, the demoralizaton in the exchange market. As 1t was announced that the proposed British loan is to be un- derwritten by J. P. Morgan & Co.,, or in cooperation with the National City bank and some other international bankers, it 1 is reasonable to assume that President Nanderlip of the National City bank knew ! that the British loan proposition was far advanced.
 There was strong suspicion when in
 mid-June Henry P. Davison took passage 1 for England so quietly that not until a 1 day or two after he sailed was it posi- lively known that he was on his way to 1 London, that he purposed completing ne- gotiations in London for this British loan. | It was the second trip across the ocean
 which MT Davson has made within six
 months. In the fall, just after the visit of Sir George Paish to the United States,
 MT. Davison sailed for England, and, hav- l Ing spent some uays III Lonuon' Nlislsu l Paris. The purpose of this visit has never
 been authoritatively explained. But after 1 Mir Davison's return it was made clear l to his friends that he had been thor oughly informed respecting financial con ditions in England and also in France. He
 was quoted as having spoken of the re- sources of Great Britain as something
 which amazed him, accustomed as he is to l the contemplation of large financial fig
 ures. He appeared to have no doubt of ] the ability of Great Britain to finance her war necessities no matter how great the l amount or how long the war continued.