The Birmingham age-herald., 1915-07-28
Man of Cautious Speech Is Amazed at Magnitude of
 the Grain Crops
HIS TRIP TO EUROPE
 JUST BEFORE WAR
Went to Make Loans and Found ai That Time That Financiers Were Preparing for Try
 ing Times
Dy HOLLAND

New York, July 6.-(Special.) Ut was a l very different story which Newman Erb
 narrated in a communication sent by him
 from South Dakota a day or two ago
 from the one which he told not quite a year ago. Now Mr. Erb speaks of abun- dant prosperity and the promise of even
 greater things. A year ago he was much concerned, looking into the future if not with dispair, at least with the greatest
 anxiety He was among those who in the early summer of last year had good evi- dence that the world was on the eve of
 outbreak of war sudden, perhaps, so far
 as the public was concerned but expect
 ed for a long time, at least for two years,
 by the great authorities in finance in | Great Britain and upon the continent of ! Europe.
 i When Mr. Erb returned, fortunately just
 before the war began, he spoke briefly of | his adventures in Europe and of his conclusions which were based upon them. He had some large financing in view in
 connection with his railroad systems
 which he hopes ultimately to develop into
 one great north and south line with a
 northern terminal at the Canadian boun- dary, with Minneapolis and St Louis
 as the chief central points, and the Gulf of Mexico the southern terminal This is the project which was conceived by the late Edwin Hawley. There has al- ways been strong suspicion that it was at first mapped out by the late c. P. Hunt ington, under whom MT Hawley received his railroad training
 In order to perfect the system it has
 been necessary for MT. Erb to seek finan-
 cial aid in Europe. He went abroad early in the spring of last year contemplating the successful negotiations of a loan con-
 siderable in amount. If the money were obtained it was to be used in expanding and improving his railroad system Pre- cisely what he had in mind he did not re- veal to anyone excepting, perhaps. those who were associated with him in this un- dertaking.
 MT. Erb encountered a strange state of things in the financial marts of Europe. The atmosphere was one of doubt and I anxiety Explanation was made to him that the financial condition was not at all
 satisfactory, partly because the heavy hoardinS which even in France began with the outbreak of the Balkan war two years earlier was in great measure maintained, although that war was terminated This explanation did not seem fully to meet
 the case. MT. Erb discovered that the 1 men Of finance of Europe were not look Ing so much over their shoulders as they were straight ahead Apparently they had received intimations or at least in- ferred, that trouble was brewing and that [ 1t was not improbable that the outbreak of war in comparison with which that of the Balkans was trivial was more than possible. This did not mean that the men of finance were taking the same view that many of the statesmen of Europe did that war was at sometime inevita able, but the coming of it might be long de- layed possibly until Russia, three years later refused to renew her commercial treaties with Germany. The shadow of ! impending war was already heavy. For that reason the bankers of Europe were not disposed to enter into any negotiations | involving loans of large amounts and of
 long time. They would only consider very short-time transactions. Mir Erb was therefore compeleld to return to the United
 States without having succeeded in, his
 purpose of financing a considerab ble Ioa n | In the interests of his railroad project. IL seemed to him that the United States ! might be involved not in actual hostilities
 but In very serious financial and commer- clal emergencies on account of the war l in Europe. When he held this view just | after his return from Europe, the war 1 had begun and chaos prevailed in the
 money markets of the world. The New 1 York stock exchange had shut it's doors. 1 International trade was substantially sus- 1 pended. England was clamoring for in-
 mediate payment of debts due upon open l accounts, and the city of New York was l in dire straits because 1t seemed impos-
 sible to obtain, except at a cost which
 was prohibtive, the necessary means by
 which the short-tme notes of New York l about to become due, which were held