The Birmingham age-herald., 1915-05-21
UNITED STATES ID ABSORB SOME OF
 FRENCH SECURITIES Federal Reserve Banks Ex- pected Soon to Do Redis-
 counting on Large Scale | NATIONS FINANCES r REMARKABLY STRONG Close of the Fiscal Year Next Month Will Show Most Stupendous
 Figures in Nations History
ny HOLLAND

Now York. May o0.-(Special) )-Probably !. P. Morgan and some who are associated with him were prepared for the infor- nation which came from France few
 days ago that financial cooperation be- tween France and Great Britain inVolVihe inc discounting by Great Britain of as IIIuUn s-.-------~o0, resented by French treasury bonds had been effected There was intimation last winter, shortly afSer some who went from the United States to London and Paris for the purpose of holding conferences with British treasury officials and with leading bankers of Paris. returned to the United States that cooperation upon the broadest conceivable scale would set forth the intimate relations that have been es- tablished between the allies. All of the allies were then and are now seeking Tn United States large supplies In order to facilitate the payment for these sup
 plies. the allied nations are utilizing their
 credit. Great Britains credit facilities
 are much greater than any in this coun- try, but the leading bankers of the United
 States realize these can be utilized in ! CO., operation with France and with Rus sia so as to be made available for se- curing payment for supplies bought in the United States and without compelling
 heavy imports of gold from the allied na- tons to this country.
 | It was also intmated last winter that the United States would fully cooperate and in such manner as not to impair its
 neutral obligations. but solely for the purpose of facilitating payments for sup plies bought in the United States.
 It is only recently that there begins to
 be understanding of the magnitude of the resources of the United States. Some in- timatons have come to the financial dis trict that the governing authorities in Germany have no Illusions about the mag nitude of our financial resources and the
 marvelously healthy condition which pre-
 vails throughout the United States far
 as trade, commerce and finance are con-
 cerned. It was said last winter that
 sometime in the spring 1t was probable
 that rediscounting upon a very great scale and of a kind which the federal reserve system could easily make pos- sible is likely to take place. Presumably the cooperation between the English treasury and the Bank of France which will be represented by French treasury bonds aggregating $500, GOO 600. discounted
 
 a few weeks reflected in our own banking movements For the paper of France which England will discount will very likely be sent to the United States and here rediscounted so that France will be for the time being amply supplied with funds with which she can pay for com modities bought in this country
 Some have been disposed. if not to criti- cize, at least to call attention to the sit nation in which fhp national banks are now Hlaced. One who was formerly prominent in public life and whose speciality was our banking system and our financial and fiscal relation to 1t, is reported recently to have said that the federal reserve system Is a failure. that there were too many reserve banks in fact. Ii too many, for one great bank would be sufficient This criticism was apparently based upon the fact that the federal reserve banks have done very little business in the way of rediseounts. let it is said by some of those who are familiar with the system-and it was re- gently clearly intimated by Benjamin Strong Jr., governor of the federal re- serve bank in New York district-that the very great rediscounting facilities of the federal reserve banks will be demon strated much sooner than many persons think possible. The people need not won- der If, by and by. an enormous rediscount business representing not speculation, but reasonable trade demands, is the occupa- tion of the federal reserve banks.
 The Closing Fiscal Year
 There remain five weeks of the present fiscal year, In July it will be possible to report an Unprecedented record which the United States has made in the fiscal yea 1 which began on July l. 1914. At the end of June, the stupendous strength of the | in, will be demonstrated and then the mind | naturally will turn back to August and | September the second and third months . of the present fiscal year. and there win be recollection of the chaos and darkness