The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1921-05-18

New York, May 17-(Special.)--
While none of the financial authorities
who have been asked whether or not
the United States would be willing to
aid in placing in this country large
amount of German bonds was ready to
answer the question off hand, yet al
most without exception they did say
that it would be possible and probably
easy to place at least 5000, 000, 900 of the
German bonds in the hands of American
investors provided certain details were
satisfactorily adjusted.
Within short time American banks
have succeeded in placing $230,o0o,o00
of the joint securities issued by the
Great Northern and by the Northern
Pacific Railroad company. 1t is true
that the greater part of these new Sc
curities were to be utilized in taking
up older securities about to become
due. But nevertheless the transaction
was so successful and in fact so in
stantly successfully as to demonstrate
the ability of American banks and
bankers to handle propositions involv-
ing many millions.
| by American financiers of the ability
| to float securities the aggregate of
which is many millions is found in the
announcement that banking syndi-
cate the leaders in which represent
some of the strongest banking organi-
cations in the United States, has UNI
derwritten $35. 1000, 900 of the 10-year IN
per cent gold bonds issued by the f. l.
DUPONT de Nemours & Co. Undoubtedly
| Wf1
absorbed by the investing public. They
| are looked upon with all the more favor
because they demonstrate that the In
terest of this corporation in the Cen
| eral Motors corporation is to be perma-
nent. That Is to say, no longer will 1T
be possible to carry on such dangerous
| speculation in the stock of this COM
pany as was for time carried on and
was ended when speculative holdings
were taken over by the duPonts last
| fall, ]. P. Morgan & Co. acting as the
bankers.
These and many other transactions
which were of magnitude and when
were successfully achieved prove that
the American bankers possess facilities
for handling very large financial trans
actions. Therefore, it is not question
OF the ability of the United States to
| take over an issue of German repara-
| tation. But there is a question not yet
answered depending upon the good
faith which is behind the bonds, the
adequate Endorsements which they Will
carry the rate Of interest which Is al
lowed adm some other details.
WILL FRANCE INDORSE
THE BONDS?
| Should France indorse German repa-
ration bonds. action of that kind would
infuse excellent credit into the issues
1t seems to be the impression that ulti-
mately German bonds will find their
way to the United States and will be
Endorsed SO favorably and will be so
| tempting as to terms as to secure the
desired market of those bonds In this
country.
Some have said that American In
vestors would long hesitate before De-
ing put into the position OF agents Tor
the collection of the German repara-
| ton. But this view seems to be con-
Hned 10 few persons II the United
States does aid II would give assistance
not only to Germany. but to France
Great Britain, Belgium and Italy. In
addition to this the floating here or
German reparation bonds will certainly
stimulate our trade relations with Ger
many and probably with other nations.
The placing of the German repara-
tion bonds upon a concrete anu ih"i.y
| established basis Is the first step IN
| the re-establishment of international
trade and financial conditions which.
being pursued, will be followed by GER
tain prosperity. The government al
Washington is likely to give its moral
| support to any reasonable plan py
means of which German repatriation
| bonds can be marketed In the united
| states. But this support will be no
more than moral 1t is the American
banks acting in cooperation with our
strongest financial institutions which
must be the exclusive parties to any ne
xotiations which have in view the piac-
ing Of these bonds in the United states.
ANOTHER PIECE OF
/ FINANCING
While negotiations OF this kind are
in progress, II In fact any attempt IS
Imade to negotiate, the government AT