The Birmingham age-herald., 1917-11-06


 When the history of the brilliantly suc- cessful floating of the second liberty loan is written the services of Benjamin Strong, Jr., governor of the federal re- serve bank in New York city, will ln- evitably have conspicuous place. Not only are men of finance and prominent bankers already speaking in admiration, even enthusiasm, of the service given by Governor Strong, but also of the wise counsel and the directing suggestions which characterize his relation to this second loan. Not only by reason of his position as governor of the federal re- serve bank of New York, but also be- cause of the intense concentration or energy, oversight and of every means whereby the loan could be successfully placed and the New York district meet in full the sum which it was hoped to be raised here, Governor Strong con tributed greatly to the gratifying re- suit.
 At the same time he was also asso- ciated with money concentration which in other days might have been spoken of as a fine representation of the money power or the so-called money trust. Within his office was constituted a money committees" whose object was carefully to protect the money market and especially to see to it that the proper needs of merchants, manufactur- CTS and others for whom loans were necessary should be fully met.
 This money committee, small in num- Der. yet as a whole represented the great banking institutions of New York city. It made call upon the banks for CO operation in the arranging Of what was called an emergency fund the az gregate of which was to be $500, 100000. For the banks to pledge themselves at this time to make loans to merchants and others which in the aggregate might amount to $300,0o0,00o was spoken or as an extraordinary undertaking in view Of the fact that the banks were expected to lend their credit in vast amounts to those who were ready to buy liberty bonds but did not have funds imme- diately available or that purpose.
 
 resulted in unification of the banks of New York city whereby pledges were quickly secured of money support exceeding in amount any that the banks had pledged themselves to furnish in the past. and even in times of panic. For as much as $500, 900 the banks became unified. In a statement issued a few days after the loan. subscriptions were ended. Governor Strong said that the banks acted as a unit so far as this purpose was concerned.
 l Governor Strong and those who were associated with him were not persuaded that conditions were such in the finan- cial world as actually to compel the banks of New York to unify themselves for the purpose of protecting legitimate bus.ness at the time the people were subscribing for the s5.o0o 0o0,00o loan to the federal government. Nevertheless, lest there might be some apprehension on the part of business men that the enormous advances to the government which were to. be made in the form of a second liberty loan might for time seriously cripple the money market and make it difficult for men of business to fsecure reasonable accommodations from l their banks, it was deemed expedient so i to act that the business world and the 1 leaders of industry and others who were relying upon commercial assistance from the banks should have absolute confi- dence in the ability of the banks to pro- | tect them Therefore announcement was made that substantially every bank 1 in New York had in cooperation per- l fected as single unit under the direc- tion of a so-called money committee
 whereby as much as $3O0.oOo0oO could be
 made instantly available for reasonable commercial banking purposes.
 1 That this assurance was of great avail 1 is evident from the fact stated by
 Governor Strong that only a part Of the amount pledged by the banks was called for in the form of loans by the regular and responsible customers of the bank. 1 Governor Strong stated further that had the amount needed been found to be in excess of the $500, 100000 pledged. then the banks would have come forward, still acting in cooperation. and pledged such further sum as was needed.
 The brilliant success which followed this method of furnishing assurance tc business interests that they would be protected by the banks and be provided | with all the accommodations they wers
 entitled to, is one of the best illuutSa-