The Birmingham age-herald., 1917-09-07

New York September 6-(Special.)-Be- tween mid-June and September the American people have paid for 5000, ,oOo,ooo of liberty bonds. The Secretary ot the
 Treasury, MT. McAdoo, In speaking or
 these payments, said that much of them reflected utilization of credit. While that statement is regarded by bankers as correct, nevertheless sooner or later the actual cash reflected by these cred l its must either be paid into the federal treasury or paid out of it.
 What is regarded as a striking fea-
 ture of the placing of this loan outside of the rapidity with which 1t was sub scribed Is the fact that 1t occasioned not a visible ripple In the money market, although it did undoubtedly affect bank ing operations Nevertheless at the time l this loan was under subscription our bankers lent Canada $1o0,0O00oo and the Canadian offering was rapidly absorbed by banks and by investment. So also by means of private banking operations, short time British notes issued weekly, aggregating each week $15,0oo,0oo and to aggregate s75o0oo,oOO were discounted by American bankers. Furthermore they marketed large loan Issued by New York city and on the day or the 1lnai payment to the first liberty loan SoUoo'ooo, represented by one-year notes issued py a railroad company, were sold almost upon the instant. Perhaps one reason for this rapid sale as well as the easy marketing of other notes and loans is to be found in the attractive terms But | this. bankers say does no more than prove that there are ample funds ea- gerly awaiting investment provided the rates are favorable and the issue of se- curities is~ for short time.
 In the statement issued by Charles M Schwab president of the Bethehem Steel company, in which he gives clear and what are spoken of as satisfactory reasons for new financing, whereby the i company can secure millions Of fresh capital there occurs one paragraph to which attention has been frequently called. Mir Schwab intimates that one of the reasons why the securing or fresh capital is imperative is to be found Tn the large payments the company IS com nelled to make and will hereafter be obliged to make on account of federal taxes. In other words this corporation
 is now paving or will soon be obliged to
 pay so many millions to the government in the form of taxes that it is neces- sary to secure new capital. It may De that this will be the experience of some other corporations, so that the payment of very heavy war taxes Will De rep resented by increased capitalization or increased bond obligations Issued by va
 rious corporations.
 Rankers. while commenting upon the case with which the .s20oo,Coo,oo0 ho- ertv lean was absorbed by the Amer ;can neople are accustomed to call att tention to the fact that the federal gov ernroant was compelled to pay out the an+,ra amount before the final subscrlp- tions were turned in. This was made necessary because 1t was vital that the aues who have been making very heavy purchases in the American market should he supplied with the funds by means i of which payment could be made.
 | One of the best authorities reports that the purchases by Great Britain alone 1 in inc American market aggregate nearly 500 Oo0. GOO a week. And it is presumed | that the aggregate of all the purchases n,ada by the allies in the American market will in the first six months of | the present fiscal year require advances l from the federal government, including those already made of about $4.O00 900, 900. | The high price which silver is now commanding in the market will undoubt- l edly considerably swell the money value 1 of the precious metal mined in the United States in the year ending on De- l cenlber 31 Assuming that our mines are producing approximately as much gold as they did in 1916 then the money value l of gold and silver mined in the United States in 1917 is estimated at not far from $1500O0,00o.
 l Again California leads in the produc- 1 ton of gold due undoubtedly to the fact
 that science has shown how to secure gold from mines which formerly were deemed of no commercial value because
 | the levels were too deep. California s gold was of the value of prestige over Colorado, although at one time it was
 thought that Colorados gold 9ssnai sn ! that year would be in excess oI 1NHt oD- tained from California. AlasF staRss I a good third with an output of l6 aCae. | The money value of gold min, . in lale
 is officially announced to have i.el-
 50O nO6 in rot1nd ullmhars Tbesa .i rls