The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-09-11
LARGEST SINGLE
DEPOSIT EVER MADE .
WAS BRITISH LOAN
Within Few Hours After
Subscription Lists Closed
Money Deposited
INVOLVED QUARTER
MILLION DOLLARS
Other Large Payments of Gold Have
Been Transferred Without
Affecting Money
Market
By HOLLAND

New York, September 10-(Special)
subscription to the $3.50, 100000 loan to
Great Britain. the house of j. P. Nor
gan & Co. received substantially all of
this amount and placed it to the credit
of Great Britain. So far as the clearing
house authorities remember this is the
largest single deposit ever made in the
United States and possibly the largest
ever made anywhere. Yet were it not for
the fact that announcement was made of
Morgan & Co., the public would not have
realized or even suspected that a fl
nancial transaction of this magnitude
had been completed.
Within the past 20 years, heavy pay
ments have been made by the United
States to the credit of other nations.
The first important transaction of that
kind was the payment of $40, 900 in
gold to Spain in accordance with the
terms of the treaty of peace. Had $40,
100000 of gold been actually transferred
from the United States to Paris where
the payment was made, the effect upon
the money market must have been ap-
preciable. James Stillman, however, en-
tered into arrangement with the govern
ment whereby the transfer of this pay
ment to Paris was made without the
money market. Mr.. Stillman undoubt-
eddy utilized foreign exchange for that
purpose.
Again, when in the administration of
Theodore Roosevelt it became necessary
to pay France about $4,000, 900 on ac-
count of our purchase for $40, 000. 900 of
all the French interest in the Panama
fully and by such utilization of foreign
exchange as to cause not the slightest
effect upon the money market. George
w. Perkins, after the payment was
made spoke of it as having been one
of the most successful transfers of large
amounts of money without appreciable
effect Of which he had any knowledge.
But these were small amounts in COM
parison with the sum deposited with j..
P. Morgan & Co.
American subscribers to the English
loan of $250,00O,O00 have paid their sub
SCIlPlOHS, linus tIdUllI5 y. MOTSdn az
Co. to notify Great Britain that the
credit which that government asked has
been established and is now available
for the purposes for which it secured it.
Notwithstanding the heavy payment,
aggregating $25OOOo.o00. no one who was
not informed of the details of the trans
action would have had any suspicion
that piece of financing Of this magni-
tude had been completed. The only EVIL
dence of it was that furnished by the
record made by the New York Clearing
House association on the day after this
subscription had closed.
OF course, the transaction was per-
fected through the utilization of credit.
1t stands as probably the greatest piece
of financing involving credit in which
the United States ever participated. 1t
reflects the very high art and sceince
of modern financing. 1t is evidence of
the part which credit plays in all bust
ness and financing transactions.
What actually happened in all prob
ability was this: The banks and others
who subscribed to this loan sent their
checks in payment of their subscriptions
to j. p. Morgan & Co. Very likely not
dollar In actual cash was used in this
transaction. These checks represented
credit and it was as representative of
the credit that it passed through the
New York clearing house.
THE HIGHEST RECORD
The axChaupas in tha NaW Vorl c1aa r.