The Birmingham age-herald., 1917-09-04

New York, Septemb CT 3.-(Special )-The hesitation and doubt which are now char
 acteristic of the securities market and which also prevail among business men was spoken of this morning as somewhat similar to the anxiety which business and especially the large corporations ex- pressed after the government began its prosecution of various large corporations, because it was alleged they were or ganized and operated in violation of the sherman law. Business men did not know whether they were acting within the law or not; corporations which had been ad- vised by able counsel that their organiza
 tions and operations were not in viola ton of the law were nevertheless com pelled to face charges brought by the government There followed period of depression and anxiety and business men who were known to be actuated by the
 desire to conform to strictest business in- tegrity were compelled to mark time.
 Now business and especially the securi- ties market is in a frame of mind some what sialilar to that which prevailed after the large corporations were prosecuted by the government. There is this diff
 
 prosecution nor accusation that it is act ing in violation of the Sherman law.
 Business men do not know what to rely upon. They cannot as yet take the full
 measure of the effect of price fixing and governmental control of large industrial
 plants. This Is regarded as undoubtedly explaining the stagnation which charac- terizes the securities market. as of course 1t explains the closing of some of tbe exchanges in which products of the soil were dealt in But good readjustment is sure to follow.
 Nevertheless, the leaders in the busi- ness world are persuaded that the stu
 pendous imitation that is now in prog ress--which Is not dangerous infation- will inevitably speed up business to its
 utmost capacity The Washington au- thorities are now of the opinion that 1t will cost the United States in this first year a little under $2O, ,00O coo, 600 to meet all the expenses entailed by the war and by the customary activities of the govern ment. Of this amount $7,oo0. 100000 is rep resented by investment, for the govern ment Is to invest that amount of money
 in loans made to the allies.
 Attention was called this morning to the fact that the interest upon these loans
 will amount to many hundred million dolrs lars and that there is no doubt of it's
 prompt payment.
 The $13,000, 100000 which represents the amount the government will have to pay exclusive of loans to the allies, to meet the expenses of the year will, of course, compel very great readJustment of busi- ness conditions. If the war should con- tinue another year in all probability the government would be compelled to se- cure from the people $2o,0o0ooo,o 900 more
 The government must look to the Amer ican people because it cannot borrow money anywhere else, since the nations of the world are approaching the money markets of the United States for loans. Secretary McAdoo estimates that the yearly production of all kinds in the Uni- ted States, together with the yearly in come, aggregates $50, 100000. Therefore, should the war continue into 1919 the cost of it to the government, including loans to the allies should be $40, ,000, ,00O yet there would still be left s6o,0 ,000,0oo representing the money value of produc- ton and of income for those two years. The government at Washington Is planning all sorts of expedients and wise methods by means of which it can secure these funds through borrowing from the people, In addition to the new liberty loan Congress may authorize unique method of saving, beneficial both to the government and to the people The plan 1 is a simple one. Any man who has 5 in his pocket or possibly as small sum as l s1 will he able to use this money to buy bond which he can obtain at the post office and other places These bonds will probably bear interest at the rate of 5 per cent and the best judges are certain | that if an offer of that kind were to be made as many as $2o0o,ooo,0oo of bonds would be purchased by the people in the course of few months.
 | Some have wondered how proposi- 1 tion of this kind wotld affect the postal l savings banks and the state savings banks. In the past fiscal year the saw ings of the people have accumulated more rapidly and in large amounts than I ever before in a single year. Postal
 savings banks report large gains. The savings banks of the state of New York 1 gained nearly $120,ooo,0o0 in the 12 months ending July over the preceding year. They have resources considerably in ex- 1 cess of the first liberty loan and it would have been possible. although, of course. 1 impracticable. to have marketed the en- l tire liberty loan with the savings bank deposits of New York state. The depos- ltors increased their accounts with the l savings banks in a single year by nearly so9, 100000, There is. however, no real l apprehension lest an offer by the gov ernment to sell bonds through the post
 offices or other axencies in ~ small