The Birmingham age-herald., 1915-02-26

so much based upon the fear that the blockade might prove more efIectual and
 destroy for a time the great market we have established across the sea but il was based upon anxiety lest the blockade should lead to the destruction of Ameri-
 can ships and the loss of American lives lntimations which came from Washing ton seemed to strengthen this apprehen- sion. For while the administration ap- pears to have no doubt that diplomacy can adequately handle the situation, neverthe- less no one can tell what American public opinion would be if an American ship were destroyed and American citizens lost their lives.
 The English Point of View The reply which came from London to the informal question cabled by New York bankers to London, referred to a few lines above. is regarded there Is convincing proof that Great Britain feels abundantly competent to control the financial situation. at least so to control it that it will not impair her war-making efficiency. Yet ther@ ap- pear to be no Illusions in London re- specting the present and to some ex-
 tent, the future effect in the United
 States of the financial emergencies. created by the war For instance some of the highest authorities in London
 
 bills are being drawn upon New York and these are bills which would cer- tainly have been drawn upon London had there been no war. These bills are payable in terms of dollars instead of pounds sterling, or. in other words, they are so-called dollar exchange. Some of the ablest authorities of London are willing to say, and do say, that once dollar exchange is established to any n hn oh lat ( xr~t1 t~A permanent form of exchange.
 While Great Britain does admit that her financial prestige Is impaired, yet in the financial district it is an opion- ion commonly held that England is not neglecting her industries and that she conremplates an early and very great revival of them after the war is ended.
 Much has been said about the pur- pose of Great Britain to starve Ger many into defeat. and the meaning ~f this is generally regarded to be that England expects more and more to de- priye Germany of food. That, however is not the exclusive view of leaders in the financial district. There is another, form of starvation which England unJ doubtedly contemplates and it is one which is not in violation of the princi- pies of international law. In London, there has prevailed for several weeks a suspicion. not yet a confirmed opin- ion, that Germany is beginning to feel financial pressure and that this pres sure, if continued, will cause serious embarrassment to the German govern ment. Germany has no way of securing outside financial assistance unless she obtains it from the United States. That her bankers have made tentative ap- breaches to American bankers to share in government loan is believed to be fact. Here and here alone can Ger many obtain any financial assistance. If she does not obtain it here it will be due solely to busineess and banking reasons.
 On the other hand, England, through her foreign investments, possesses enormous resources even if Germany's indebtedness to her is left out of the consideration. These resources, supple mented by great economies which the English people are skilfully practicing. will. it Is believed, not only make Eng land financially foot free, no matter how long the war lasts, but will enable her to. assist her allies Our bankers learn that in London there was not the slightest disposition to protest against the actions of the British government investment of any English capital for the present other than in English securities or English indus tries. It is probably due to the perfect of her financial strength and her ability to meet any emergency that the bankers of London do not ap- pear to be particularly concerned about the prevalent low rates of exchange They look upon that as an incident which can. when the time comes, be met.
 In England, there appears to be some of the fact that econo- mics which on the whole are stupend- ous are now in progress 1n the United States. These are Illustrated by the great increase in savings bank deposits and by the very large accumulation of capital Of course. these economies ex- plain to some extent the relative leth- argy of American domestic business. They are, however, together with our new banking facilities making it pos- sible for the United States to loan money in large amounts to other na- tions as they have done and will con tinue to do with Canada. They are now and considering several other propositions, including one which. 1 If it is perfected. will give to one of | the nations which is now In need of 1! funds assistance aggregating several mill af,l1