The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-09-05
NEW BRITISH LOAN
PRESENTS NEW AND
| PECULIAR FEATURES
German Citizens Show
Opposition
MONEY TO BE KEPT
IN UNITED STATES
Comparisons With Expenditure of
Present Conflict With the Civil
War Are More Than
Startling
BY HOLLAND

sioning considerable comment These
peculiar features have sectional aspect
and are referred to as indicating change
Of opinion on the part of American in
vestors For instance, at the time the
Anglo-French loan of $500, 000,0 00 was ne
gotiated the attitude of Chicago toward
that loan created some astonishment and
rot a little disappointment. Chicago
bankers for the most part declined to
participate to any extent in the loan
There was one conspicuous exception.
Whatever be the reason, 1t was alleged
| to have been caused by the apprehension
| lest the opposition of the large body of
| influential German citizens of Chicago to
the participation Of the United States in
| financing of this kind-which it was
known was intended to provide funds
whereby payments could be made for
war material bought in the United States
should be great. However, this may
not have been the real reason. There was
at the time this loan was negotiated
Vague understanding on the part of the
majority of the American people of Its
meaning One man prominent in public
| life went so far as to say that the en-
| tire $500 900, 900 were to be shipped to Eng
| land and to France.
| Notwithstanding the brief statement by
III. p Morgan and the fuller explanation
made by the late James j. Hill that the
money was to be kept in the United
States and was really no more than dis
counting of the joint note of England and
France so that funds could be secured to
pay for purchases of American commodi-
| ties, at first many of the people did not
grasp the full significance of these state
ments.
| Since October of last year, the Amer
lean people have had an excellent object
| lesson. They have learned that our
bankers are competent to finance great
foreign loans upon terms that involve
| absolute security and return excellent
| profits to investors
| The entire Anglo French loan has now
been absorbed and some of it has changed
| hands. If a detailed statement were
made of the first investors in this loan
it would be discovered that many of the
industrial companies which have received
large orders for munitions subscribed lib
orally to it. They were able to do this
| because they were greatly increasing
Itheir SURPRISES. Incidentally it may be
( reported here that the manner in which
the great industries have handled their
surpluses has been very gratifying to
bankers. There has been no disposition
to make heavy extra dividend payments.
The SURPRISES are allowed to increase
and, of course, reflect inherent wealth of
the industrial companies as well as ca
pacity to take care of any situation that
may arise after the close of the Euro
pean war.
NEW ENGLAND AND CHICAGO
New England, on the whole, did very
we'll in supporting the Anglo French loan
made nearly a year ago. There was some
disposition in New England to look ask
ance at the loan because behind it stood
no visible collateral security. Now it is
the understanding that ChicagoS fully ap-
preciating the strength of the Security
and realizing that there was after all
no we'll founded opposition on the part
of citizens of Chicago who were in SYM
pathy with Germany to the marketing of
the loan, has reversed the situation SO
far as New England is concerned Chi
cago institutions have absorbed from four
to five times as many of these British
notes as they did of the security which
represented the Anglo French loan, and
have proportionately done better than
New England
BRITISH AND AMERICAN FINAN
some rather startling figures authorita
lively given by the British chancellor ~
the exchequer have recently been re.
; ported which tell of the financial obIiea-
tions which Great Britain is underta l<ino
IN order TO carry on the war and to aid
her allies
Presumably if the war continues an.
J other year the national debt of Creat
! Britain will amount to 100000 A com.
parlson is sometimes made with the ma
tional debt of the United States entailed
by the expenses of the civil war. Tha,
was somewhat in excess of $1,000 600 O0t
and represented expenditures which GOV.
cred four years. But there is no COM
parison to be made between the colossal
struggle which has involved nearly ali the
nations of Europe and our own struggle
: in the four years of civil war.
Some months ago competent British
authority stated that the yearly income
! of Great Britain was estimated at $40 OOO;.
100000 How heavy the charges entaileo
by the conduct of the war have been is
shown by the statement of the chancello,
, of the exchequer, who estimates that the
income of Great Britain in the year 10I,
will be about $13,00o.OOO.000. Should the
war continue another year, her income
will probably fall to SO, 900 900. Never
, theless Great Britain has colossal re
, sources represented by the securitie.
! which are the visible evidences of htl
loans to other nations. In the financia
: / l9S
Great Britain reach the end of her re-
sources or her borrowing ability befo1.
! the end of the war.
NEW YORK'S NEXT SENATOR
Considerable Misrepresentation exists re-
speeding the method which will be fol
lowed when the senator from New
York state who is to succeed Senate
IO'Gorman-who declined re-election--i,
chosen. The republicans have two prom
, inent candidates for support in the pri
maries. One of them Is Robert Bacon ans
the other Congressman Calder At one
time it was thought probable that til,
leading democratic candidate would be ex
Governor Martin H. Glynn. There is some
doubt about that now.
| Whoever the senator chosen may be
! the procedure of election is as follows
lBy the amendment to the federal consti
tuition. declared in force May 81, 1918, Il
is stated that the Senate of the United
States shall be composed of two senator.
from each state elected by the peopl.
thereof for six years. The New York leg
|islature, in December, 1918. enacted a stat
ute providing that at the general election
next preceding the expiration OF the term
jof the United States senator from New
H York a successor to such Office shall lie
elected by the people for the full term oI
six years. New York's primary law was
enacted to effectuate nominations. Nomi-
nations for candidates for United States