The Birmingham age-herald., 1916-05-16
New Haven Bonds FlOated in France Are Example
 of the Process
SOLD TO THE FRENCH
 BUT NINE YEARS AGO
New American Financiers Have Ar ranged to Take Practically All Back for, Investors
 Here
By HOLLAND

By HOLLAND
 New York, May 15.-(Special) )-Just before J. P. Morgan was quitting the steamship upon which he returned from Europe a few weeks ago. he said in most informal way and in response to question, that so far as he could see, they were handling the securities situa ton very well over there, and it seemed to him that they might continued to do so without in any way affecting the mar ket
 Men of experience in the financial dis triet interpreted this apparently casual remark as meaning that Mr. Morgan was thoroughly satisfied with the security sit uation as he found it in London and in Paris and if he were satisfied then it was likely that there would be occasion ally incidental proof that his satisfaction justified his cooperation with the au thorities across the sea in the mobilizing and handling of securities. Predictions of this kind are thought to have been veri- fled within few days, for it is no longer a matter of surmise, but one of actual knowledge, that many securities which represent American railroads or indus tries have been and are being utilized by highly artificial, but honorable, financing, sc that our international relations may be. from the financial point of view. un- impaired, and two, at least, of the bellig- erent nations may find needed accommo- dations in the form of available credit in the United States.
 In 1907, one of the minor executive of ficers of the New Haven Railroad com pany took passage 70 Europe, having been constituted the guardian. of $27,- 9S5 900 worth of New Haven railroad bonds. The bonds were deposited in the pursers safe. There had been some de- lay in the printing of them since it was necessary to issue them in denominations of francs. Much formality characterized the delivery and acceptance of these bonds by the bankers of Paris, although they were regarded as an exceptionally good investment The transaction took place in the heyday of the New Haven railroads apparent prosperity, and the ability of President Mellen to market so large an issue of bonds as this in France was often referred to as good evidence of the high credit which the New Haven railroad possessed.
 THE NEW PURPOSE
 NO one COulu nave dreamed when Clle French bankers bought these bonds that nine years later they would be the basis of a transaction between France and the United States whereby ultimately all of the bonds will be absorbed by Amer ican investors. The ease and consum- mate skill with which this transaction has been consummated are regarded as one of the best of the evidences that the really great financiers on each side of fl,A .ot@ ll- cessfully the new and extraordinary prob lems of international financing that have been occasoned by the European war.
 The Boston News bureau reports that within two weeks about s15,000,000 of this issue have come back to the United States. They have been redeemed with dollar bonds and these have been mar keted through New York and Boston bankers Of itself the amount is trifling ir comparison with the aggregate of American securities which. before the war in Europe, were held abroad. But the fundamental principles which this transaction represents is undoubtedly to be the same, for the most part, in all the transactions wherepy England and France are put in position to meet their obligations in the United States while, on the other hand, American investors are silently without an apparent ripple upon the security or money market, absorb ms these evidences of indebtedness and so greatly absorbing them that should the war continue another year the United States will probably have taken back all of them. In that way, the country will convert foreign indebtedness into a form of domestic loan or investment and it will be possible to announce that no longer is the United States a debtor nation
 Again. the Boston News bureau reports that an issue of New York telephone bonds in the aggregate GOO was marketed in London some six years ago. Now. within few days, considera ble part of these bonds has been returned to the United States and has readily been absorbed by investors.
 Transactions of this kind and presum- ably others now under way or contem- plated are regarded as representing in