The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-08-08

New York, August 7.-(Special) Sub
stantially identical in point of time with
the anniversary of the closing of the
New York stock exchange three years
ago, ]. P. Morgan, speaking on August
for the syndicate Of which he was the
manager, announced that the loan OF
s10o, 100000 which the Dominion of Can
ada sought in the New York market mad
been absorbed so that there was moth
ing left for the syndicate to carry. me
incident, trifling as $100,00o,000 seem In
comparison with some other financing
since August 1914, served nevertheless
to demonstrate the amazing change
which has taken place in the relation
of the United states with other nations
from the financing point of view.
In fact. while there have been many
interesting articles published since Au-
gust l that told in brief the story of the
three years war, nevertheless there has
been trifing or merely incidental allu-
sion to the part the American bankers
have taken In aiding the allies and III
bringing the United States within three
years to the acknowledged position of
the world, for the time being at least.
Three years ago at meeting in Mr..
Morgan's office it was decided to rec
ommend to the governors of the stock
exchange that they order the doors Of
the exchange to be closed. The United
States and especially New York were
at that time in highly dangerous cha
otto condition. Exchange had mounted
to such a figure as to make it practi-
cally impossible for those who owed
money abroad to secure the exchange
through which to make payments. The
first imperative necessity was that due
to the situation in which New York city
found itself For the city owed large
amounts of money to the citizens abroad
who had purchased New York bonds but
1t was impossible for the city to secure
excepting at ruinous cost, exchange
with which to meet these obligations.
Mr.. Morgan, thereupon, Immediately
after the stock exchange was closed ac-
copied new responsibility of the kind
which, had his father been living, he
with his customary courage, would have
assumed. The call upon ]. P. Morgan
who had succeeded his father only three
years earlier, for leadership in highly
difficult piece Of financing was the first
thorities in finance and banking recog-
nized him as fully qualified to serve in
a time of dangerous crisis as his father
in other years had done
Under Mr.. Morgans leadership $780,
100000 in gold was speedily secured from
the banks and the bankers of New York
city and its vicinity and this was so
utilized as Immediately to put an end
to the grave danger of protest of New
York city obligations. and thereby ruin
of it's credit All of this gold has come
back.
That achievement was Immediately
followed by another under Mr. Morgan's
leadership. Merchants and importers OF
the United States were in debt for goods
bought in Europe or for credits estab-
lished In London to an amount estimated
to be as high as soc. O0o, 900. These mer-
chants and importers possessed resources
vastly in excess of $2oo,ooo,o0o but they
were unable to obtain the exchange with
which they could make payment of their
obligations to London and to other
places across the sea
Mr.. Morgan thereupon undertook to
organize a syndicate composed of Amer
lean bankers with intent to secure in
that way sloOoo0,0o0 in gold to be shipped
to Ottawa, Can, where 1t would be I'M
der control of the Bank of England. The
American banks responded speedily to
this appeal The gold was secured 1t
was placed in proper hands in Ottawa
1t provided the American merchants and
importers with the means whereby they
could obtain the exchange so that within
short time these Obligations were fully
met All of this gold has also come
back.
BY November l the only indebtedness
the United States owed to London and
Europe was that represented by Amer
lean securities. of which an amount es-
timated to be as high as 5000, 900, 900 was
held by foreign industries.
These two transactions were really Of
swift and complete influence in estab-
fishing confidence in the United States
and were the first steps along the part