The Birmingham age-herald., 1915-02-20

CTS of the United States and those oi
 London, and to some extent France arc
 now anxious to provide the means by
 which we as creditor nation on current
 accounts can receive prompt pay for the
 commodities we have been selling to other
 nations.
 One remark commonly made is that the
 situation today is an extraordinary and
 even unprecedented reversal from inter-
 national conditions In August and Sep
 tember of last year. We W re debtors
 upon current account, to England pre-
 sumably. for not less than s.10 .o00, and
 cur creditors across the sea, having great
 need of money and at the time no facili-
 ties for extending credit, demanded pay nent. Payment was made partly through
 the spontaneous and voluntary co -oper-
 ation of American banks and partly
 through the sudden and very great in- crease in the export of American commo- dities.
 What Must be Done
 When exports are aggregating, as they are now doing. $l50, ,000. 600 a month i'll ex- cess of imports and when the promise is excellent, us it now is, that these heavy exports will be continued, then it is es- sential that the nations that are buying so heavily of us, and especially the bellig- erent nations. shall be in q position, first to fortify their holdings of gold and sec ond, to provide other means by which payment of their American obligations can be made
 The evidences are plentiful that Henry r. Davison is speedily to be recognized again, as he was recognized four years ago, as one of the great constructive forces of the United States. For there seems to be no doubt that a ten tatiVn ara ngempnt was recently made while MT Davison was in London where by if the exigency arose a credit should be established in New York against which England can draw so that means can be provided for payment of her obligations on current account in the United States without parting with any of her gold.
 When MT. Davison sailed for London, in mid-fall of last year, it was the im- Dression of those who are in close rela ticn with him that he was then per sGaded that the balance of trade would soon set heavily fin favor of the United States, so heavily that some arrange ment would necessarily be entailed by which payment could be made to Ameri- gan creditors without disturbing the inn oortant financial situation which had been established in London both by the Eng fish government and by the banks. MT. Davison apparently saw farther ahead, and witt speedier vision than many others did, for there is reason to suspect that not until his arrival in London was there good understanding of the fact that in all probability by mid winter the trade rela- ions between the United States and Eng and would be so enormously in favor of he United States as to be visibly demon- strated by the quotations for foreign ex- change. MT. Davison, and others pre- were anxious that Great Britain ,bpi1ld Ina ha hx 6p- hands made upon her for gold. The )nly way such embarrassment could be ivoded would be through the establish nent of a sufficient credit in the United States against which England could lraw.
 There has never been any official an- of what took place in the dis ,ussions between MT. Davison and the financial authorities of Great Britain both governmental and banking, but the inti- nations have been strong that a tenta- tive agreement was reached providing that in case the course of exchange jus flied It then the American bankers would pc prepared to provide a sufficient credit n New York against which England could lraw
 Apparently that condition is either at hand or near at hand A credit of this kind could be established here both for rT6bl bTlldll, TTdIce ana f(uSSla. V cry likely indirectly, the enormous under takings of which the public knows noth- ng which are now in progress in Rou- mania will also be reflected in these credit England may assist Rou- mania in meeting her great American ob-
 gations.
 In some way, Americans who have sold md who are now selling heavily to bellig- srent and neutral nations must be paid in accordance with the terms of the con tracts. It is not improbable that one of the methods England will adopt and very likely France, will be the sale of Amer can securities. The best judgment in the financial district is that we are now in position, or soon will be, to receive at east S1000, ,000,000 worth of our securities n Europe and to pay for them in the ex- ports of our commodities. Cotton would play large part in transactions of this Kind. It seems to be a very strong m- pression in the financial district that the amount of the American se- ,urities may be that are sold by Eng and and France we shall pay for them through our exports.
 careful financing. It does tend to strengthen the belief of those who are now asserting that today the United States is the great money center of the world and even after the war is end ed is likely to maintain some portion of ho " un hax