The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-01-12

MI. Gibson.
Local papers. despite the late hon,
When the result was made known ran
| extras
'''ssseesessssssssss sssssssssssssssss..
washington that In the month Of Decsr,.
oe, ene money value Of our exports wa
q. ieast sll0,o0O.0o0 greater than the money
vaiue OF our imports for that month
nen all of the reports are received "a
asnlngton 1t will probably be- found
enat our excess foreign trade for the
s,na 10 month was between $4,000. 600 and
S.1v,o'V'VV II this Is to be taken as indi-
-, 1o,- vi what our foreign trade will be
IN 1915, we should accumulate favo,.-
able trade balance of s1.250.OOo.
Changes in Financing
record of our foreign trade oe .,,s
Kind serves in part to explain what ths
new conditions which the railroads ar,
racing really are and also some of the
uhusuai-in one or two instances nm
observation-disclosures which has baen
Gnu is now In progress. few days
ago an international banking house
when has long had intimate relations
VIII WIN the Bank of France withdrew
.s,ooo,ooo IN gold bars from the gov
eminent depository In this CITY and de-
posted the gold with a national bank.
mere 1t will lie to the credit of rho
hank or France, possibly for a long
time, presumably for safe keepine for
there Is no danger of it's capture on ths
nlgh seas nor is there any need for paw
ment of the very high assurance rates
Wnlch are exacted if gold is to be
shipped. The gold belongs to the Bank
of France. but it remains in tho Tinted
States
In ADDITION to this, there are good
reasons for believing that very heavy
credits are being established in New
York In favor of bankers and others In
foreign lands who to some extent nm
douDtedly represent their own govern
ments. Every day deposits OF very large
checks and drafts which reflect pay
inents to American industries for com
modities that are exported are deposite 4
IN banks of this city. Presumably tina
is true or other large financial centers.
one erect or the war will undoubtedly
become vfsibly demonstrated through
the purchase by American industries of
large additional plants or the building
or new ones. because additional facil-
tiles are needed by some Of the large
industries If they are to take advantage
of the opportunities which are CON
stantly offered to them.
Ailus1on has already been made in
this column to the loans to national
governments which have been made by
bankers OF the United States recently
and especially one of $15,OOO,OOO to Ar
gentina. But for the war and the
changed conditions which 1t has created
there would have been no record of
this Kind. This financing seems to be an
initial step in the direction of very
great financing by the United states of
the obligations Of foreign nations.
The End of the Pool
In the days of the stress and peril
which the sudden outbreak of the Eu-
ropean war caused in the United States,
syndicate Of bankers, including prac-
tically all Of the national banks of the
United States subscribed to a gold pool
of $100, 100000, each institution con-
tributing its proportionate share. This
fund was raised for the purpose of en-
ablfng American merchants or manu-
facturers who owed money on current
account, chiefly in England, when the
war began to obtain the means by which
they could make payment. Nobody knew.
how long 1t would be necessary to util-
lie this money or how long 1t would
last. But now at the beginning of the
new year, only about three months after
the pool was organized, fntimatiens are
strong that 1t is to be speedily dis
solved. 1t has served it's purpose and
there Is no further need of it.
Undoubtedly 1t was due. at least in
directly, to the changed conditions &C.
casfoned by the war that the house Of
William r. Grace & Co. became per-
suaded that now Is the expedient time
to execute contracts for the construction
of three steamship. each of 10000 tons
burden. which will be added to their
South American feet, and which will
utilize the Panama canal The opening
Of the canal itself made this a reasona-
BILE proposition. but the certainty of
greatly increased trade between Pacific
ports of South America and the United
States, principally on account of the
war, probably accounts for the execution
of these contracts at this time.
As It Is in Canada
What is regarded as the best expIa-
nation of prevailing conditions in Cam
ada, especially those which represent
the railroad situation, Is one which has
Just been made by Sir William Van
Horne, who has been for a few days
making one of his rather infrequent
visits to New York. Sir Williams ex-
PLANTATION Is regarded as showing that
the condition in Canada Is temporary
because 1t is due to purely artificial
causes. No one can speak with higher
authority of the railroad situation In
Canada than Sir William Van Horn. His
position as chairman Of the board OF
directors of the Canadian Pacific Rail-
way company and his long experience
with railroad affairs In Canada are
spoken of here as fully qualifying him
to speak with authority.
The sudden and really artificial causes
for decrease in earnings are the taking
over Of the steamships operated by the
Canadian Pacific on both oceans by the
British government for the purpose OF
utilizing them in the war and the fall
ing on In land transportation which has
involved great decrease in immigra-
tion and land settlement This explains
In great measure the Canadian busi-
ness situation. These artificial embar-
easements will. in Sir williams opin-
lon, be speedily overcome 90 that there
should be great Improvement in Can
adian business life the nrst six months
Of the year 1918.
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