The Birmingham age-herald., 1915-03-29

arsenal with machinery with which i'm plements of war can be manufactured The aggregate money involved in this contract is somewhat in excess of s2,000,- GOO. China, however, apparently desires in other ways to perfect her military prepara ations
 As there seems to be some foundation for the rumor that Argentina is prepar- ing to negotiate loan in the United States and as 1t is the South American nation which more than any other, on that continent will receive substantial benefit through the demand which will be made upon her for wheat and meat, the infer ence is strong that Argentina may be contemplating also considerable increase of her armament. Yet Chile is now pre- pairing extensive fortifcations and would be in a position to be greatly benefited financially by the war if she were able to meet in full the demands upon her for nitrate. Her failure to do so is due to the risk which is involved in shipping ni- trates. One of these two nations pre- sumaby is now seeking in the United States to place a large order for military equipment of some kind.
 It is in part due to the demands which are now made upon us by nations which are not beligerent that fairly good infor- nation is obtained respecting the finan- cial aid which England is giving to na- tions which are presumably in sympathy with the allies, although at present not acting with them.
 Inevitable Current of Gold
 For the first time in the history of the United States, gold is coming from abroad in large amounts and in response to an economic law which is inevitable in it's operations. It is thought in the financial district that this movement will continue, unless checked by highly artificial meth ndc huf 1atr q $50,0oo,0oo may have been received in this country Always before this time specie has come to the United States because we stood in need of 1t, excepting when oc- casionally comparatively small amounts were imported for special purposes As far back as the day when Robert Morris brought from France nearly $300,000 in specie at critical time in the revolu- tionary war, specie has come to the United States in large amounts because we stood in need of it. Sixteen years ago we received $100, ,000 in gold because we had urgent use for it and because England was willing to let the gold go. In the late fall of 1907 we imported about s100, ,00o,00o in gold, England facili- tating that movement because the cur rency panic of October justified England In assisting us in resuming normal condi- tions.
 Now gold is flowing in not because it
 
 rate of exchange makes this movement imperative. It is coming to almost re- luctant banks. Bankers speak of the movement as one which will tend to strengthen our position as a leader at this time in the money markets of the world. There is not a leading banker in the financial district who does not feel that it would be better if other nations found a more convenient way to meet their obligations than by sending gold. They need the gold and we do not. In Great Britain the estimate is made that the United States now has in all nearly $2,000000,0O0 in gold, an amount of the metal which in part explains the strength which we are revealing. It cannot be said that the vast amount of gold, ap- proximating s200 000,000 which the United States sent abroad last August was re- luctantly parted with. Our bankers were glad that they were able in that way to facilitate the return of confidence in the United States. But 1t is accurate to say that it is with some reluctance that our bankers are now receiving gold in view of the fact that we do not need it while other nations do. Nevertheless, the best authorities say that England does not stand in need of great amounts of gold for she has other wealth with which