The Birmingham age-herald., 1915-05-25

ents may easily be overcome. If the federal reserve banks do not rediscount French notes there is not the slightest doubt that the banking facilities of the United States are now sufficient for utilizing these notes in way to make them available and that, too. without re- course to the federal reserve banks. The time has not yet come for describing in detail some of the highly perfected meth eds adopted by American bankers by means of which they have been able to lend money in large amounts, indirectly a. least, to other nations which are bel ligerent The manner in which the two gold pools were perfected early in the fall of last year is certainly to be de- scribed by historians of the future, ac- cording to excellent opinions here, as a perfect demonstration of American finan- ciai skill, and very delicate handling of a great proposition. So, also, the man. ner in which American bankers have facilitated the approaches of Canada to the United States for the purpose of se- curing funds is an illustration of won- derful perfection of modern financial machinery in case there be abundant credit or resources behind it. Should France Undertake to pay for her pur- chases In. this country through utilisa- tior of her recent issue of $500, 900, ,000 GOO of notes. American financiers will, ac- cording to the best opinion here, work out a plan by which this can be accom- ptished.
 The Question of Acceptances
 There is authority upon finance in New York, certainly none whose depart ment Is the great field of foreign ex- change, who does not now feel free to say that by and by and not many months hence the business world in the United at xxrin rno1i iya sources which the utilization of accept anees makes available. It is a field. as stated this morning by man who han dles more than sl00. GOO of foreign ex- change year. which we have hitherto neglected. He added that it is the per- feet development of this department of credit which has served Great Britain so well In securing and maintaining not only world trade. but pre-eminence as the money power of the world How great the demand for accommodations of this kind it was recently proved by the experience of one of the great state chartered banks of New York which was able to report that it had accepted about $54000,000 of bills and had found that these acceptances created an instant market all over the United States for these bills. Yet it Is only recently that the state of New York by legislative act permitted the state charatered banks to accept bills. Occasionally, when in in- formal discussion the leaders of foreign exchange and those who are handling great lines of acceptances fix their atten- tion upon this subject. is is said that ultimately the utilization of bank credit in the form of acceptances will unques- tionably lead to such modification of our federal reserve system as will authorize the organization of a unified bank, which Is only a polite method of naming great central bank.~/ There appears to be little or no disagreement among the great authorities that the time Is not distant when the unified bank will be found to be necessary and the people without much dissent will accept it.