The Birmingham age-herald., 1915-09-10
BANKERS WERE NOT GREATLY CONCERNED OVER ARABIC ISSUE When Two Nations Want to Remain Friendly Way is
 Always Found MIR. HARDING'S VIEWS
 ARE OFTEN CITED Recent Birmingham Speech Was Of- ficial Act of Calling Attention
 to Americas Stupendous
 Resources
By HOLLAND

By HOLLAND
 New York, September 9.-tSpecialo When the strain occasioned by the Arabic incident was so great some few weeks ago that the apprehension prevailed that 1t might be followed by a break in the relations between the United States and Germany it was observed by those who were in close touch with international bankers that they did not seem to be 90 greatly concerned over the situation as possibly the administration at Washing ton was. They paid little heed to the ef- feet of the torpedoing of the Arabic upon the quotations in the stock exchange.
 Of course, some anxiety lest the situa- tion become very serious, if not danger ous, was felt. but it seemed to be not a very great anxiety Conversations since relief came with some of these leaders make inevitable the surmise that they either possessed confidential information which gave them some assurance or else they knew-as international bankers do sometimes know things of which the puo- lie las no knowledge-what the real feei- ing in Germany was and is. One Of the bankers said this morning that when two nations or even two indlvlduais are equally anxious to escape hostilities a way Is usually to be found whereby dif- fcrenccs of opinion can be composed. It has been for sometime the view of in ternational bankers. or most of them, that those who are in authority in Ger many do not desire any other relation with the United States than a friendly one On the other hand there Is no doubt ...xt.~ lI- tain friendly relations with Germany. If both Germany and the United States are of this disposition, then, in the view of international bankers a way is pos sible by which serious difficulty can be removed.
 Respect for Financial Power
 That is one of the reasons why there appeared to be less anxiety in important financial circles not associated with the stock exchange than at Washington, and in many parts of the United States re- specting the effect of the Arabic incl dent Apparently some of the interna- tonal bankers are persuaded that, While Germany does not fear the United States from the point of view of actual war or hostilties, the leaders in Germany have 2 the greatest respect for the stupendous financial power of the United States Had there been a break In relations, this finan- cial power could have been utilized as effectively as though the United States possessed d great army and a powerful navy
 Presumably the federal reserve board at Washington either shared in this view of the leading international bankers or else by private communication knew what the view was. It is impossible to escape the inference that the federal re- serve board did have knowledge of this kind. if there Is as careful reading on the part of the public as there has been in some of the banking offices of the ad- dress which was delivered by w. P. G. Harding of the federal reserve board at Birmingham two weeks ago.
 Although MT. Harding used his figures to empha size the capacity of the banks or the south in cooperation with the federal reserve system to protect the cotton plant CTS, nevertheless the figures themselves do tell the story of our resources and tell it as Germany understands 1t. MT. Harding called attention to the fact that the banking reserves of the United States are enormous. being in excess of H,000,- 100000 beyond legal requirements. That represents a loaning power such as the United States never possessed and could not year ago have dreamed of pos- sessing until many years had passed. Mir Harding also stated that the gold now held in the United States is in excess of $2,0Oc OO0.0G0, and that Is more than tho amount of gold held by any two other countries combined. Furthermore, he al luded to the fact that there will be a visible trade balance a considerable part of which will be an actual trade balance of not less than sl.0Oo.coo,ooo, which it will be possible for the government authori- ties to report early in January of next year.
 It needs, no spy system to carry in- formation to Germany of these resources and there is no doubt that the leading Germans not only entertain full respect for power of that kind, but have had admiration for the manner in which the