The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-09-30
Banking Situation
Is Very Encouraging
BY HOLLAND

New York, September 29.-(SpeclaI)
The comptroller of the currency, John
Shelton Williams, must have fingered
few moments over the reading of the
latest report of the largest of American
banks which is also one Of the largest
in the world, for none like it has been
heretofore placed in his hands. 1t is the
institution which James Stillman about
Is years ago entered as president al
though he had as he once said little or no
banking experience. His real vocation
was that of cotton merchant. When
Mr. Stllman became president of this
institution it's deposits were not much
in excess of 100000 900. In a little over
a quarter of century the institution
has forged ahead so greatly that its lat
est report to Mr.. Williams shows re-
sources of little under $1,000 100000. If
the rate of increase is maintained, as
it doubtless will be, it is not unlikely that
the next report to the comptroller OF
the currency will show that the insttu-
ton has passed the billion dollar mark
in its resources.
Mr.. Williams will undoubtedly discover
in these figures indications in plenty OF
the wonderful advance of the national
banks, especially since he became comp
troler of. the currency. or course, the
enormous financial activities which the
war occasioned will. in part explain
growth of our national banks which, in
the case of a few of them, make it pos
sible to compare them favorably with
several of the larger banks of London.
Incidentally an announcement new in
! character came from Washington on the
| day when the report was published that
this national bank was within easy dis
lance of billion dollars in resources.
From Washington it was announced that
| the treasury department had retired and
paid off an amount of Liberty Bonds
hinl IN ha 70 a
matched the resources reported by this
institution. Apparently some of our al
| lies which borrowed from the federal gov
eminent funds, approximately $1,000,
are beginning to make payment on &C
count. In fact, the Washington authors
/ ties report that Great Britain has al
ready repaid $30,000,000 on account of the
debt which she owes the United States
government, and which is represented by
demand notes. The amount Is, compare
lively speaking, small, but the report Is
gratifying because it suggests that Great
| Britain, France and possibly little
later Italy, are contemplating repayment
of these loans as rapidly as possible.
| WHEN LOANS ARE PAID
| 1t may be that the government will re-
gard it as the best plan to permit grad
ual payment of these loans instead of
| adopting plan heretofore recommended
of funding these loans into longtime
bond issue.
Even France is approaching the
| American market for the purpose OF per-
fecting means by which loans which
were made several years ago to the
| French cities of Marseiles, Lyons and
Bordeaux may be cared for. These, how
ever were not loans made to the French
| government. but to the municipalities.
They were easily absorbed in this coun-
! try, but the time is now near at hand
when they must be paid off or renewed
Therefore, there is likely to be large
issue of refunding bonds with which the
earlier loans can be taken up. The prob
abilities are that the bonds which were
absorbed when Marselles. Bordeaux and
| Lyons needed American help will In con-
| siderable measure be exchanged for the
new issue of bonds.
A BILLION IN RESOURCES
The fact that one American bank is
now In possession of billion dollars IN
resources tends to confirm the prevail
ing belief that there is speedily to be
financing upon a large scale. Some OF
, it will reflect the needs Of American man.
ufacturers and of those WHO are under
taking to aid other countries In purchas-
| ing commodities in the United States.
One of these pieces of financing. it may
be, will be announced as having been
completed within day or two after the
arrival in the United States of King
Albert Of Belgium. In fact, the thought
has been sometimes expressed in words
that possibly the visit of the King to this
4 country may be partly due to the needs
of Belgium for financial assistance. For
King Albert has said for, publication that
he comes to the United States not entire
lily that he may get rest and recreation
of which he is much in need. but also
for business purposes. !
This Belgium loan will serve greatly to
aid the Belgian people in rebuilding their
industries. King Albert has said that
whatever assistance Of this kind the
United States gives to Belgium will not
only be cordially welcome, but will be
placed upon the basis of absolute secur-
ity, for the time is not distant when Bel
GUM will be able to begin repayments
of loans
Sometimes the statement has been
made that the delay which has been oc-
casioned by the discussions In the SEN
ate upon the league Of nations covenant
and the treaty of peace has seriously at
fected highly important financial propo-
lsitions which have been under consid-
leration. Probably there is some truth in
the statement. But the almost amazing
condition of the national banks, the COM
parative ease with which large financ
ing has recently been achieved. and the
certainty that other large financing is
under way and will be completed what
ever may happen in the Senate, caused
some doubt to prevail with regard to the
accuracy of the assertion that the ac-
l.