The Birmingham age-herald., 1919-03-03
ENORMOUS MONEY
 MOVEMENT BEGINS
By HOLLAND

New York, March 2.-Every day dis- closure is made of new financial move ments that are of magnitude or that point to the readjustment of International financial conditions which were estab- lished during the war. These all fore cast movement. in the aggregate enor- nous, which will be under way in the course of the next six or eight months They also mean the release to the banks of large amounts of money. A day or two ago there began a return movement to Europe of securities which were sent here by Europe in order to protect loans ly with banking and financial institu- tions.
 When this federal government granted credits and made loans to foreign nations they received from England and France and Belgium in acknowledgement of these loans. notes, payable upon de- mand. That was the only visible security which our government has for the repay ment of these loans. It is the expecta- tion of those in authority that in course of time these demand notes will be ex- changed for long time bonds. Very likely negotiations of this kind are among the responsibilities which are upon Thomas w. Lamont, who is now in Europe at the request of President Wilson, nominal ly to act as q financial adviser, really no doubt to act as the agent or the ne- gotiator on the part of the United States in certain very large transactions. When these demand notes have been converted into longtime bonds the United States treasury will have in it's possession an aggregate of $10.0O0. 100000 represented by bonds. to bear an agreed upon rate of interest, and that have long life be- fore maturity comes
 However, there are at present no trans actions involving any change in the financial relations of the treasury de- partment and the nations of Europe which have been borrowing billions from the United States.
 On the other hand the American bank CTS who have loaned many hundred mill lions to Europe are beginning now to realize upon these transactions For in- stance, France has borrowed a large amount of money in the United States at one time or another the loans be- ing represented by short-time notes and behind them being collateral security. Some of these issues of notes are now maturing. An issue of the short-time notes of Great Britain matured ~on Feb ruary l, and these have been for the most part converted in the United States as a permanent investment.
 SENDING SECURITIES BACK
 Recently there has been visible evil dence of the return to France of vast amount of securities which France sent to the United States and which were used as collateral to protect loans made in this country. For many persons saw the packing of the securities in boxes. and the hauling of them through Wall street. One of the trust institutions of New York. which carried in its vaults for one or two years securities which were placed in the United States for. the pur- pose of protecting loans, is now sending them back. The loans have been paid, although there are other and very large loans which remain to be paid not in- cluding those which have been made by the treasury department and authorized CT collateral securities will be packed in iron-bound boxes and sent across the sea.
 As many as % boxes of good size were required to pack and send back to France few days ago securities which are no longer needed because loans had been paid. If 1t were gold that was thus packed. careful guards would be placed over the boxes. the boxes would be sent to the steamships under guard, and would be placed in steamship vaults and watch would be kept over them until de- livered to the authorized persons abroad Moreover the gold would be so packed as to prevent abrasion. Excessive care Is not necessary when securities are packed From time to time many boxes containing gilt edge securities will be sent back to France or to England thus in- djcating that the loans which these se- curities were pledged to protect have been paid.
 Opportunity is furnished by the return of securities to France or to England to gain some idea of the magnitude of the resources of those two nations and of the manner in which, before the war began. they invested their yearly in-