Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-05-02
Initiation Of Note Issues and
Credits Has Acted as CuSh-
ion 10 Lessen Shock, De-
cIares F, A, Vandelip,
SITUATION LATER TO
BE SERIOUS, HE THINKS
w. P, G. Harding, of Federal
Reserve Board, Says COndi-
tons Favor Assumption Of
Financial Supremacy,
lay aosalaa ioosaal artalAl lr.aro wlssi

iay uoRHse ioUsakl sFtciAl lEAeEo wisSl
! Philadelphia MAY Frank A.
Vanderlip, president OF the National
City bank, New York, at today's ses-
sion of the annual meeting of the
| American Academy OF Political and
Social Science, said the United, States
has not yet felt the full financial ef-
! feet of the European war. He pre-
sided at the session at which was dis
cussed Americas financial position as
laffected By the war and spoke briefly
before introducing the speakers on
the program.
/ Mr.. Vandernp said the initiation of
I note issues and the initiation of credit
/ in the European countries at war
I has acted as a cushion against the
4 shock. He thought the effect on the
4 financial situation viii eventually be
4 felt more seriously than Il is az pres
ent
Initiation Affects United States Little.
The present easy money situation in
/ the United States, according to T. W.
Lamont, member of the Morgan
banking firm of New York, who fol-
I lowed Mr. Nanderlip. was not due to
excessive initiation in Europe. Mr..
Lamont spoke on the future of fl
nance following the war ,Ie said.
I'VE shall see the spectacle OF the
business men of all nations paying to
one another their just debts. We
shall see the German merchant keep
ing his word sacred to the English
and the French to the Turk We shall
see finance standing ready 20 develop
new enterprises, TO find money to till
new fields, to help rebuild q broken
and wreck-strewn world.
New Nork's Future Uncertain.
MI. Lamont further said that only
time could telr whether New York
would supersede London as the
worlds money center Even with the
wonderful resources, he said, II prob
ably would be many years before
America would become the financial
center. TO become so, he added, the
United States must build up new
markets. In such development the
duration of the war is bound to he a
determining factor. The United States
must not cnly continue 10 build up us
foreign trade in order to gain finan-
cial supremacy, Mr.. Lamont said, but
II must continue to buy back securi-
ties from Europe and must become
large lender to other countries.
Minister 10 Germany Speaks,
At the morning session, at which
the relations of the United States with
Central and South America were dis
cussed, Or, Bernhard Durnberg, for
mer colonial secretary to Germany,
spoke briefly during which he denied
a statement made at last nights ses-
sion of the academy that Germany
had protested AGAINST the right of the
United States to ship arms to bellig-
erents.
First place in the field Of interna-
tional finance may come to the Unit
ed States as a consequence of the Eu-
ropean war, w. z. G. Harding, mem
Der of the federal reserve board. to-
day told the American Academy or
Political and Social Science IN session
here.
To obtain that pre-eminence in in
ternational finance, however, Mr..
Harding warned his hearers that the
United States must resist any tendency
toward initiation and a wild temporary
boom, such as history has shown FREE
mently following the conclusion or
great wars He declared that the ma
ton now was in a commanding posi-
tion as the only great world power not
involved in war, and pointed TO the
fact that the trade balance has been
in favor Of the United States TO the
amount of S7l9,000,000 for the last
nine months This balance, he pre-
dicted. might reach $4,000, 1000, 600 by
the end of 1915.
I'VE should not forget" said Mr..
Harding, that although We have
passed through no pronounced boom
period since 1907 there Is a strong
o
country as well as in Europe. where !
initiation is a necessary result of war
financing Restoration of peace will |
necessarily bring about many read
1ustments. Demand for war mate /
rial will cease, and in its place will |
spring up a demand for the commod- !
tiles OF ordinary trade and partcu- !
larry for those materials used In con- !
work and repairs
while We now have in operation a 4
sound currency and banking system !
We must not permit ourselves to be !
lulled into q false sense of security or
to feel that we have a license to dis |
regard well established principles. wei
must be conservative, we must resist /
a tendency toward initiation, and we
may be sure that by preventing a wild |
boom which would GER
tainly result in a collapse later on, (
this country viii be in far better
position to reap throughout long se-
res of years to come the benefits
which would accrue to it as the only
great world power not engaged in the
war"
Mr.. Harding said that at the out
break of the war it was estimated that
Europe held American securities val
lled AZ NOT less than SG 0On mn nan
and that since that time it has dis
posed of possibly two million shares
Of American stocks and American
bonds valued at $500, ,000, ,00O.
Equal Suffrage Pronounced Success.
Sacramento, Calf. May 1.-Eaual
In California was a pro-
nounced success in a resolution adopt
I'd today by the state senate.