The Birmingham age-herald., 1920-04-16
CONSIDER STRIKE
 ONLY TEMPORARY
By HOLLAND

ny HOLLAND
 New York, April 15.-(Special )--what- ever the demoralizing effect of the so- called outlaw strike of switchmen and other railroad employees will be felt in business and in transportation acrYvitlss, it is the opinion of some of the railroad managers and some of the leaders in the financial district that the demoralization VIII be only temporary, and that the whole episode will serve to show that if there be any disposition among a large class of employees to establish anything like bolshevism it will speedily be dis covered that the great public is. to be reckoned with.
 financial district by any apprehension that the strike will seriously impair the present disposition to make heavy invest ment in securities especially in bonds and notes, provided only the terms are tempting. Already it is demonstrated that for the moment at least New York is the international money power of the world. Whether it will maintain that po- sition or not depends upon future devel- opments, although there appears to be no apprehension in England that London is to be permanently deprived of her po- sition as the money center of the world Already that city is showing that it has great financial strength since it is caus- ing to be sent to the United States by installments gold in large amounts which may ultimately reach as high as s2Oo.- 900, 900.
 One reason why New York, which, of course, is symbolic of the United States, is at present the greatest international money market is discovered in the Sact that many of the nations are seking financial aid in New York hoping to market here securities some of which would havea long time to run. while others would be payable after three or four years. These nations are willing to accept any interest rate which may be found necessary to exact Tn order to market their securities in the United States.
 SEVE NPER CENT RATE
 The fact that the Pennsylvania Railroad Company and the New York Central have marketed within a few days notes aggre- gating about SS6, COG which bear per cent interest is accepted as proving that for a considerable length of time per cent will be the standard or minimum rate. When it was announced early in the week that the treasury department at Washington is to borrow of the banks funds at the rate of or little in ex- cess of per cent, then the remavx was commonly made that the SecretarS oa
 
 which lies behind the mark Seting of the Pennsylvania Railroad notes on per cent basis.
 It was intimated this morning that quite a number of our railroad com panies will be speedy forced to enter the money market in order to secure leans. Recognizing that this demand is to come informal, conference between the bankers have taken place, so that if pos sible there may be an understanding re- specting the rates which will be exacted of the railroad companies which seek loans, but those credit and standing do rot compare with those of the Pennsyf- vania Company. There seems to be a disposition to establish, even in the case of the less fortunate railroads, stand ard rate of per cent, but this probably will involve the paying of considerably larger commissions to the underwriters than the Pennsylvania Railroad Com | pany was called upon to pay. Therefore, | it may be that before the railroads se- 1 cure the many millions which are inn | paratively needed for equipment and im- provements, they will have to pay not only per cent interest, but a large com lrnisson to to the underwriting syndi- cate. Yet they must have the money whatever the cost.
 l PROMISE OF THE SPRING ] The promise is excellent that large amounts of money available for invest ment will come out in the spring because not only railroad companies, but other enterprises will make rempting offers for the sake of securing money. Some of those who have looked into the matter say that the savings of the American people are in the aggregate enormous l They are steadily increasing. The story of the savings banks increase in deposits l is suffcnt to justify the belief that there are other increases, not recorded in the saving banks book which now amount to an enormous sum of money.