The Birmingham age-herald., 1917-08-30

New York, August 2s.-(Special.) Whether or not our allies who are now purchasing various supplies in the United States in enormous quantities will be gratified if the government at Washing ton fixes the prices at which American commodities are to be sold, is a question which must be determined before decision upon this matter is reached. For one of the reasons why high prices for commodi- ties of all kinds have been established and tendency to an increase in prices has been noticed is to be found in the im- perative pressure which the representa- tives of the allies who are now in the United States have brought to bear upon manufacturers and others so that they can secure their supplies and get them as rapidly as possible.
 Upon excellent authority it can be re- ported that there are now in the United States several thousand representatives of Great Britain and of France, as well as many other representatives of other allied nations, earnestly seeking to se- cure commodities, although some of them are occupied with inspection of commodl- ties already purchased. There is there fore, intense competition in American markets between representatives Of other nations who are here for the purpose or buying American products Some of them are willing to offer bonuses in addition to high prices they are ready to pay if they can thereby secure at as early day as possible the articles of which they stand in need. Suppose the government should fix the price American industries charge for the commodities sold to the allies or to the neutral. Would such action pre- vent the payment of bonuses? The best judges are of the opinion that 1t would De almost impossible to establish fixed prices so that thereby competition from the al lies who are now in the American mar kets will be ended.
 Probably within the next 10 weeks American bankers will sell or discount British notes to the aggregate or $lo0,oeo,- . O00 The transaction will be in the nature of an endless chain, for some of the notes which are discounted late in the fall Will be utilized to liquidate notes aggregating S15O ,0O0 a week sold earlier in the fali' These bonds, however, will not reflect the enormous purchases which the represen- tatives of the allied nations are now mak- ing in the United States. They represent purely banking operations and the avid ity with which the first issues have been accepted by banks is good proof Of the plentifulness of money as well as the sense of security.
 On excellent authority 1t is reported that representatives of Great Britain wno are now in the United States are pur- chasing commodities, the aggregate money value of which each week Is from SIS. .oOo oO0 to s20OOO,OO0. The money, by means of which payment for these com modities will be made, will be obtained by loans made by the government of the United States We lend England and other nations the money with which they buy the commodities in the American market
 There is a difference between trans actions of this kind and the one which characterized the entrance of Japan Into the American money market at the time of the war with Russia. Japan needed munitions of war and supplies or varl- ous kinds and found the most available