The Birmingham age-herald., 1919-02-24
VARYING VALUE
 OF PRESENT DOLLAR
By HOLLAND


 New York, February 25-CSpecial) While dollar has value of about 60 cents when it is used to purchase food or necessaries of life, on the other hand it has value of considerably more than 100 cents when it is employed in payment of certain stocks and bonds. For one of the peculiar phases of the present-day situation is well demon strated by the fact that food and nec- essaries of life are still quoted at very high prices. while excellent securities whose inherent value is not far fram par and in some cases above par can be bought at a price many points below par. This peculiar situation, which com l ment was made this morning by one of the leaders who has had long eXperi- | ence in the financial district, may have | some influence when the stupendous l financing involving at least $12,0O0 0O0,0 900 l is under way during the months of the spring. It is impossible to trace in detail the effect of this anomalous condition, but it's influence is already to some ex- ! tent felt Nevertheless the government at Washington is now preparing to aid Americans who have capital in purchas- 1 ing the securities which are soon to be issued by corporations municipalities and private concerns, especially in Bel gium, Italy and some other of the na- I recognizing something which was often the subject of tentative comment in 1918. For men who are leaders in financial -af- fairs, MT. Vanderlip, for instance, and other bankers not so well known as he | but able men, often spoke of the neces- lsity that there be investment of Ameri- l can capital in private securities issued in other lands than our own. The amount of the securities which will be offered lin the American market is likely to be livery large, involving hundreds of mil llions, perhaps a billion. Should there be lheavy investment of American capital in. these securities that will go as far as possible toward diminishing the indebted ness foreign nations owe to us, or at least serve as partial set off for that indebtedness of Europe to the United States.
 Another set off is to be established as soon as possible after the treaty of peace has been ratified. The intimations are good that work of this kind will con stitute some part of the labor which has lbeen committed to Thomas w. Lamont of j.. P. Morgan & Co. and his associate, MT. Strauss They are now in Paris. semi officially representing the United Estates in financial matters, because they were asked by Secretary Glass to under take this mission.
 Presumably considerable part of their
 
 Limited States owes to Europe on account of the war. This does not include the debt which commerce represents, but the actual charges against the United States for services performed particu- Ilarly by Great Britain and France We shall have to pay very large sum. chiefly to Great Britain on account of her charge for transporting our troops lin her own ships across the water. An iother item in the expense account is the Hist of munitions which Great Britain Iturned over to the United States after the American soldiers began to debark in France.
 ] So also France has now very large
 charge against the United States for
 railroad services incurred in transpor- tation of our armies; also for the use of motors and for providing munitions of
 war which were vital to the progress of the American army in France. Other large items will be included in the gen. eral statement Probably we shall have
 to pay considerably in excess of $100
 for the transportation of each soldier who was carried across the sea in Eng fish ships. | Already an estimate has been made
 of the amount of these obligations
 which rest upon us. It is very large Some say the total amounts to more
 than $5O0,O0O,0 900. Whatever the ag- ! gregate may De It Will serve to OHSet some of the obligations which Europe
 owes to the United States in the form
 of loans and credit.
 Now the government at Washington, through the department of commerce
 and the treasury, has set on foot a movement whereby authorative in-
 formation can be obtained respecting the character of securities of European
 origin, not national but private or mu- nicipal, which will be offered in the United States In order to do this it ' will be essential to appoint competent men who. after investigation. will be
 able to report to the Washington au- ! thorities what the character of the off, . fered securities is. <
 After this is done then application
 can be made to the Washington au- 3 thorities for information upon which
 can be based action which investors
 will be glad to take with respect to
 foreign securities.
 Another feature now recognized by
 the government which is associated . with the marketing upon large scale [ in the United States of foreign securi-
 ties is the undoubted fact that if this
 be done it will facilitate the increase i of foreign trade. It will be impossible
 for European countries to pay in cash