The Birmingham age-herald., 1917-09-15

NSM IOlk, oCptSilloSl AF.-NSPSS~---/ A number of reasons are given to ex- plain the real enthusiasm with which some of the leading bankers of the United States are preparing to coop crate with the Secretary of the Treas ury, MT. McAdoo, in floating the second liberty loan First of all is the strong impression that the second loan will be so speedily floated as to demonstrate the ability and willingness of the Amer ican people to lend their money to the government to the end that war may be successfully carried on.
 The bankers believe that the new loan vii, absorb the $5,000,O00 authorized by Congress at the time the Legislation necessary for floating the first liberty loan was adopted. That means that the amount soon to be offered to the Amer ican people will be $3,OO0,00OOOO and pre- sumably the Secretary will be able to fix the rate of interest at per cent.
 The bankers say that this 5000, 100000 of per cent bonds (for the first $2,oOo,- COG, 600 will automatically have the bene- fit of the advance from 37s per cent to per cent) will be recognized the world over as the finest security ever issued by any government. It will stand first among government obligations of the world It will reflect higher credit than England or France now possesses and the English consois in their palm fest days were not as attractive as this liberty loan presumably will be-
 Another reason for the enthusiasm of the bankers is the belief that many men of large means will be tempted to in vest considerable part of their capi- tai in these bonds, although they will be subject to certain forms of taxation, like the inheritance tax. There Is no security, state, municipal or national. bearing per cent interest which can give higher standing than this loan will possess. Some part of the enthu- siasm which the bankers reveal as they talk of the pending loan is due to con viction that after the war is ended the market quotations for these bonds will be at least and possibly points above par, and that. too no matter how many more billions may be borrowed from the American people
 Another reason given for the interest and confidence the bankers reveal when discussing this contemplated loan is to be found in the reports they have received from all partseof the country upon which they have based estimates of the money value of the harvests of this year. None of them places the figure at less than SIP, GOO, ,OOO 0O0. Some say that the aggre- gate may equal the figure named some years ago by James J. Hill as the amount of money the American harvest should bring in. s15,0OO,0O0,000
 considerable part of this money will represent payment by the allies to the people of the United States. The allies are borrowing money here in enormous amount and will continue to obtain ad- vances. They will utilize all of it in paying for American commodities which they need Therefore, the money which represents part of the payment for the crops will be money which the American people have themselves, through the government at Washington, advanced to the allies This Is now so well under
 
 the bankers believe that it will stimu- late greatly the disposition of the farm CTS to invest some portion of their earnings this year in the second liberty loan If the plans of the campaign which is to undertake the selling of these bonds work out well the bankers believe that great majority of the farmers of the United States will re- spond not hesitatingly. but willingly. to the offers that are made to them of these bonds.
 This morning one of the best author ities in the financial district called at tention to the latest statement from Washington which reported the fact that for the first time in our history the North American continent and it might, have been said the American hemisphere has sold more in single year to the United States than Great Britain and Europe ever did. more both in money value and also in the propor- donate part of our imports from the rest of the world
 Canada and Cuba have furnished an enormous increase in our international trade and so has South America. The banker in referring to this said that this condition will continue for sometime after the war. Many have surmised that Great Britain and France will pay no small part of their indebtedness to