The Birmingham age-herald., 1915-04-03

mony of the kind which has been received
 from both of these men is pointed to in
 the financial district as containing very
 gratifying hints. Mir Forgan speaks in
 general terms, saying that although trade
 has not worked back to normal conditions.
 yet the outlook is very cheering. MT.
 Douglas has recently spoken more in de-
 tail. Que bit of information contained in what he has said served to correct a
 miseonception which has prevailed here, although it was due doubtless to advice
 which has been given by industrial and commercial leaders in the south to the
 farmers and planters of that section. MT. Douglas says that the crops of the south are of greater diversity than is the case
 in any other part of the union. This is not in accord with the view which has | hitherto prevailed, but Mir. Douglas knows i of what he speaks. North of the Potomac and the Ohio the view has commonly been held that the southern states are chiefly, almost exclusively, occupied in cultivat- l ing cotton. That view seemed to be con- l firined by recent counsel given by W. P. 1 G. Harding of the federal reserve board,
 whose business associations have always l been with the south. Mir. Harding re-
 
 what to curtail their cotton planting this year and in place of that to cultivate l other crops. MT. Douglas says that the l south already produces about one-half of the Indian corn harvested in all the coun- try It produces more vegetables and 1 fruits and at time, too. when these are marketable at the highest prices than are ] harvested elsewhere in the union, and it produces nearly one-third of the beef cat tie and of the hogs.
 | He sees abundant harvests and of a greatly diversified character in the south i ern states and he believes that our har- 1 vests of wheat this year will be the largest
 ever garnered. If the present promise is 1 fulfilled at harvest time the wheat crop | of next summer and early autumn should i, be considerably in excess of a billion | bushels
 Influences of this kind justify MT. Doug- | las in setting forth in detail what MT. For
 gan had said in a general way-nameiy. 1 that the business outlook is now very en- couraging. Some Net Saving Records
 l On the day that announcement was made that the national banks of which Frank A. Vanderlip is president and James Stillman is chairman of the board
 of directors now has deposits of s3o2,O 2,O00,- OO0 which are net deposits, and gross de- | posits of s25ooo.Oco, there was published statement of another institution which operates under a charter of the state of 1 New York. showing that it has deposits of $260,000,0 ,000 round numbers Two insti- tutions in New York, one state and
 the other a national bank, now have de- posits of approximately s570, ,000,000
 The gain in the deposits of these insti- tutions is explained in part by the plac- ing in them for the credit of other na- tions of large amounts of money. That.
 however, does not fully explain this condi- f tc f4ffa ir, cla aacui which prevails in domestic business. These figures explain why American bankers are now able to make loans to foreign na- tions disguised for the sake of neutrality under another name and called credits. | They explain why, if 1t be necessary. cred its approxmating $5o0.000,000 can be es- tablisher here although recently there have been some indications that those at home who have money to invest are be- ginning to find some American securities to offer temptation to them. In one of the cable dispatches from Lon don a day or two ago 1t was reported that J. P. Morgan received at his house in London, shortly after his recent ar rival, some who represented the British treasury and the bankers of London, and that there were held the first of the conferences from which it is expected agreements will be reached for the estab- lishment of great credits in favor of Eng land in the United States. l It did not escape notice that in Lon don. as in New York, the great financial authorities called upon MT. Morgan. They went to his house, and while there may have been no special significance in this yet the fact did not fail to remind many persons that in other times when peril and even panic prevailed American bank CTS Spontaneously and voluntarily assem- bled in the Morgan offices. When the black cloud of the last days of July last year gathered suddenly over the United States, and particularly over New York, l and when there was apprehension that the securities market might be wrecked, 1 i. was to the offices of Mir. Morgan that | bankers and representatives of the ex- changes went, and were in consultation l with him, he sitting at the head of the | table. It was MT. Morgan and some of his associates, especially Mir. Davison. who l were called instantly into conference by | the representatives of the administration l at Washington What had become the custom here in | 1 times of emergency seems to have set an example which was cordially initiated in 1 London MT. Morgan went to London thoroughly informed respecting financial 1 con mercial and export conditions in the | United States. He knew as well as any | one, and better than most what the total, | reckoned in dollars. of the purchases of American commodities now under way and presumably to be continued during | the rest of the calendar year Is. One of MT. Davidson's friends spoke to l him incidentally recently of the fact that the United States had begun to export | capital. But the export of capital, in | MT. Davidson's opinion, is trivial in com parison with the magnitude of the cap- | ital that we are now importing. It is so l great as almost to stagger the imagina- | tion. Of these facts, MT. Morgan had l comprehensive and detailed knowledge |
 when he went to London, and Is, there
 fore, regarded highly qualified to per- feet arrangements which will provide | credits in any amount, matter how