The Birmingham age-herald., 1918-12-13
HANDLING OF
 DOLLAR EXCHANGE
Ry HOLLAND

By HOLLAND
 New York, December 12.-(Special) Since the war in Europe began more and more has there been recognition of the importance of the services which have characterized the relation of Leopold Frederick to the foreign exchange mar ket and especially to the development | of so-called dollar exchange" To many persons foreign exchange and especially dollar exchange suggest nothing more than dry and to the public uninterestng, minor details associated with world trade. Mr. Frederick, however, has ability so 1 to handle and speak of this question as to make it of immediate interest sug- gestng the highly important relations which foreign exchange and dollar eX-. [ change bear to the prosperity or the cuntry. MT. Frederick is not only l director of the American Smelling and Refining company, but is associated Tn important executive capacity with the I Chili Copper company and the Braden Copper company It may be that In his handling of foreign exchange and es- 1 pecially in his creation of the dollar
  i has not dealt in exchange to the ex- tent of so many millions as did, until his recent retirement, another foreign eX-' ] change authority through whose hands passed much the greater part of foreign | exchange bills which represented our ex- ports of cotton to Europe. But this par ticular service was along accustomed lires It differed from other cotton traps- actions only in the magnitude of the amount these bills represented.
 On the other hand MT. Fredericks re- cent achievement, perhaps the most lm- portant of any identified with his work as an international financier, is repre- scented by the progress he has made in establishing dollar exchange in Chile. He is confident that if our industrial leaders, our legislators and our bankers adopt wise measures, taking heed even or those which prevail in London and adapt ing some features of them to American ir ternational financing, then we may be able to obtain and then to maintain the position of the worlds financial center NOT YET FINANCIAL CENTER
 Many of the bankers and very many of the people have felt a sense of grati-
 
 States is now q creditor nation because the world owes us $S, GOO, 900 and prob ably within a year will owe us $10,OO0,0U CO., this obligation having been created by our advancing of loans and money to our friends across the sea. So stupen- dous a credit is this in our favor that Mir Frederick admits it does create a favorable condition for permanently ob- taining and maintaining position as the money center of the world. But this is not all. For Mir. Frederick points tc the fact that London is still financing to a great extent world trade ana thls is shown by figures which set forth with approximate accuracy the amount or ac' lccptancies outstanding in London agalns' International business and the amount ol acceptances by New York national banks London is far ahead of New York, fol her acceptances against outstanding Tn ternational business recently reachee s50e. .OO0, GOO, whereas New York accept aLces amount to a little over S20o.o .opoo.
 When the day comes when It VIII DC possible to report that American accept arces of foreign trade corporations anc foreign agencies are as great as or ever | greater than those of London then w 1 may be certain that in associatlon Wit' the billions of debts which other ma tions owe to us we may be able, Ii ther be prudence, foresight and far-seeini | banking management lo *eoiiAiAo fl
 position of the worlds money center What that will mean to the United state no man can now fully imagine, since tn effect upon American industrial, agrlcui it tural and financial life will De stupen deus Mfr. Frederick states that 1t VII mean for one thing the establishment O dollar exchange so-called all over th world so that it will be possible TOT TOT eign merchants manufacturers ana th makers of raw material as well as Amer ican exporters to secure as favorapi terms and as low discount rates as thos (which characterize the London discoun market
 A CONFLICT OF VIEWS
 Although Mir. Frederick is of so hig authority that what he says will com mand careful attention both here and l London nevertheless the view which h