The Birmingham age-herald., 1917-10-16

Morgan'S brief statement to the liberty loan committee and Frank A. Vanderlip's words of monition and also encourage ment which a considerable company of bankers and so-called captains of indus try heard, were the two most important communications intended for the public that were made in the closing days of last week. Both of these communications were made upon the same day. They have occasioned a great deal of com- ment and in the case of MT. Vanderlip's warning perhaps a little perplexity
 Mir. Morgan so seldom speaks for the public ear that he Is frequently spoken of as exemplifying in his own business career the policy adopted by his father. The senior Morgan rarely spoke unless there were emergencies that justified the saying of a few words by him and he never made any utterance that could not be comprised in a brief paragraph.
 The present head of the firm of J. F. Morgan 6 Co, felt justified at the time the Anglo French loan of $500, 100000 was under consideration in saying a few words which were directed solely to the hearing of bankers of the United States. For the banks were expected so to CO., operate and, within the limits of this great loan, so to coordinate that it would be possible for them to underwrite it, although it was the largest loan at that time ever contemplated by the federal government or by American bankers, and although there was no security be- hind 1t except the resources and good faith of France and England.
 There seemed to be for time little partially to the fact that there was no collateral security behind the loan and partially to the fact that American bank CTS as whole were unfamiliar with a proposition of that kind. They have learned very much since that time. MT. Morgan in a few words stated to the bankers that in his opinion the loan was not only an expedient one for the United States to make, but was also abso- lutely safe The principal and interest would be paid according to the terms. for the stupendous resources of Great Britain and France were pledged by the faith and word of those two nations to meet the obligations as they became due. That brief statement by MT. Morgan was sufficient. The American bankers underwrote this first of the great loans and paved the way for that larger atti- tude toward foreign loans which Con gress and the federal government have assumed.
 That there was last week some anxiety lest the new offering of liberty bonds should not be subscribed in full within the time limit, was probably the reason why MT. Morgan thought it an opportune moment to express his opinion in respect | to this loaI. to the liberty loan commit | tee. In fact, he stated that there was some feeling of pessimism caused by the declining securities market. He was sure that this feeling was not justified, no matter what tho course of the securi- 1 ties market may be. The quotations for securities, depreciating as they seem to be from day to day, nevertheless should l be withou. any Influence so far as SUD- scr.rtl.ns to the secoAd liberty loan IS concerned. MT. Morgan declared that t.ie loan is to te success, although ', at l tain she full subscriptions much hard < work remains to be done. One sentence | in his statement sounds exactly as though 1t was his father, who had made 1t, for MT. Morgan said that What the security market does within the next month or two will be of small impor- tance year from now. whereas, on the other hand, whether the war is won or lost is matter of supreme importance ! It was said by member of the liberty loan committee that no work however great, which Is done by any individual member of the New York liberty loan
 committee or any other committee will be so Influential in persuading the great
 body Of the American people to subscribe
 most of them in small individual amounts, to the second liberty loan as
 will be these few words which MT. Nor
 gan spoke to the bankers and others who are members of the liberty loar
 committee.
 Upon several occasions in the pas
 Frank S. vanderlip has felt Justified 1T
 sounding note of warning in the hope
 that the bankers. leaders of industr,
 and the American public might heed 1t
 His first important message of this kint
 was delivered at . meeting in Whining