The Birmingham age-herald., 1916-06-23
THOMAS W. LAMONT 5 A ' s FINANCIAL PRECEDENTS CONE Notable Article Written on Effects of War and Amer
 ica's Opportunity THREE INSTANCES
 OF GREAT CHANGES Even the Things Which Have Been Accepted as Automatic in
 Finances Have Been
 Shattered
By HOLLAND

By HOLLAND
 1 New York, June 22.-(Special )-In the July number of Harper's Magazine will ! appear an article by Thomas w. La mont, the title of which is 'Financial | illusions of the War" In view of the | fact that MT. Lamont, as one of the partners in the house of J. P. Morgan &, Co., has had especial opportunities for saihlng information respecting the finan- cia' conditions in Europe, the article is | sure to be carefully read and may oc- casion good deal of discussion. Noth- l Ing contained the article can be pre- stunned to give publicity to any informa- ton confidentially received, but this in- formation, together with facts not gen. orally known and yet not concealed, glves value to the article especially to the United States, in view of the fact | that it is fairly to be inferred from MT. Lamonts statements that he and those associated with him are persuaded that the United States must face, and if pos sible accept, very great responsibilities at the close of the European war With the exception of an occasional ad- dress by Frank A. Vanderlip, president of the National City bank, and other addresses made by some of the expert authorities upon special subjects asso- ciated with the war; MT. Lamonts article IS the only one that has been written by man of high authority since the Euro- pean war began which deals with mo- mentous subjects that are the offspring of the conflict.
 There are three kinds of financial llu- sions to which MT. Lamont calls atten- tlon The European war, he says, has shattered theories, negatived axioms and broken down principles which were ac- cepted as having been thoroughly and permanently demonstrated as correct. Occasionally men who have handled large affairs have paused long enough to say that not the least striking of the many impressive phenomena occasioned by the European war is the shattering of long and well established precedents, not only military and naval operations, but also in finance.
 THEY WERE ILLUSIONS
 Now, in the view of MT. Lamont, cer- tain firmly tablished opinions were illu- sorry, having no value when applied to the new conditions created suddenly and with volcanic intensity after the Euro pean war began. For instance, until the declaration of war and in fact until some weeks had passed after the war had
  the United States, but in the nations across the sea, was that there could be no war unless the great international bankers nodded their heads and permit ted it. They were believed to hold the purse strings and if they declined to make loans then the hands of those who contemplated military action were para lyzed.
 AS TT WAS IN 1911
 As if to confirm this view there was what was called the Moroccan incident in 1911, which, 1t was believed, was to be used by the Kaiser for the purpose of declaring war against France But It turned out to be after all a peaceful incident, because the German bankers informed the Kaiser that Ger many was unable to finance great war.
 So it was presumed that in August, 1914, advice of like character might persuade the Kaiser again to postpone warlike purposes, if he had any. But he swept aside all the precedents. He did not consult the German bankers and the great war began without the slightest heed to financial conditions, at least, so far as they were represented as prevail ing by international bankers.
 There has long been entertained an-