The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-10-27
MORGAN'S TRIP
ACROSS ATLANTIC
BY HOLLAND

New York, October 26.-(Speciall
When j. p Morgan departed for Europe
some weeks ago his friends reported that
ne was 10 resume his annual acrosS-the
sea vacations, these having been suspend
ed while the war. was in progress. New
ertheless the surmise became strong that
Mr.. Morgan would find it convenient
10 combine with his recreation certain
business propositions which might, il
accepted, serve for the correction of the
foreign exchange situation.
Like his father, Mr.. Morgan is mas
TER of foreign exchange and it would
not be an reinstatement to say ihat he
mas peeh greatly concerned about the ex-
lstlnS foreign exchange situation, believ-
ing that if a method could be found
whereby it could<be relieved then Amer
lcan export trade, certain pieces of i'm :
portant financing and other considera-
ton of which bankers have knowledge.
would be placed in better condition than
they are at present.
Furthermore, Mr.. Morgan is one of
those who believes according to the
statements of his friends, that with
the termination of European war there
should also come an end of direct loans
made by the American government In
favor of our allies. He has been con
WINGED that credit extended by banks,
by industrial corporations and possibly
by men of capital, should hereafter take
the place of The aid which during war
days was furnished by the government
itself. He has no doubt that the Amer
lean people as whole are fully able to
meet reasonable requests for aid of this
,, kind.
Within a few days the evidence has
been plentiful that Mr.. Morgan has not
confined his vacation in Europe to rest
or to social enjoyment. For there seems
to be no doubt that he has been in con-
sultation with leading men of finance
of Great Britain. This association has
resulted in an undertaking to float in
the United States s250000,00o, represented
by negotiable securities of two kinds
enc being notes whose life is for three
years and the other being those which
have 10 years to run. The interest rate
nominated in these negotiable securities
| is fixed at 51a per cent. The income from
the bonds will be larger than this rate
for they are to be marketed Vat such
price below par as will cause them tc
yield, upon the notes about 81 per cent
and upon the bonds little over pei
cent
MIR. MORGAN'S LEADERSHIP
| 1t is in part due to Mr.. Morgans lead
ership that both the interest and the
| principal are to be paid in dollars and
not in the English pound sterling. Fur
! thermore, payments are to be made il
| New York city and there are to be M
| deductions on account of British taxes.
| Evidently, Mr.. Morgan has convinced
| his friends in Great Britain that if the
terms of the loan are satisfactory Their
there will be little difficulty in per
suading the American people to absort
| these issues. If upon a three or foul
weeks drive the people can, oversubscribt
, to loan for our own government
amounting to billions, then there be M
doubt that they are abundant4y quail
/ fled so far as funds are concerned t.
absorb British securities of this kline
especially as behind the mstand the
resources and faith of Great Britain an6
the income received from them will make
| the investment tempting.
WHAT THE TEST WILL SHOW
| Mr. Morgan and his associates in thu
! firm of which he is the head, apparently
had little difficulty in bringing into thu
underwriting syndicate American bank:
| and bankers who. as a whole, represent
| the entire United States All that wa:
necessary was to tell these bankers Nwha
! the proposition involved and to reques
the INTO become members of the under
writer's syndicate. Apparently none de
| clired Therefore, from Boston and thu
east across the country to San Fran
/ cisco and as far south as New Orleans
| membership in the syndicate has beer
secured Undoubtedly the banks and
bankers of the United States would BIZ
glad to absorb for themselves these Sc