The Birmingham age-herald., 1924-09-06

ueai udQ been cut anu urlcu. ME. ASo mont implied that it was up to Ger many to offer satisfactory terms before his firm would become interested.
 A. little later heard gossip that there might be keen competition among lead ing American international bankers fol floating the loan here.
 It was pointed out that Mortimer L Schiff, of Kuhn, Loeb z Co.,, had ar. Shryer, head of Shryer St Co.,. who have very influential affiliations in Germany was also on the spot. &
 It Is probably safeto assume, however that all the leading banking firms and institutions in the nited States will be included in the syndicate. The chances are, too, that Morgan & Co. will head the list, seeing that Mir. Morgon hal twice been called in to discuss the prospects for raising funds for Ger. many in this market.
 The issue here may exceed $100, ,000, ,000 Secretary Mellon said to me in Paris; "As an investor would have no hesita- ton in buying the new German bonds I The isues will be unique. It is not only . first lien on Gerniany's custom re- ceipts and other receipts, but is a mort gage on Germany's resuorces. Com
 
 hind it, the loan is'dextremely small Not only SO but all the parties to the Dawes agreement will be interested in seeing that the terms of the loan are fully carried out. "I hear that the rate will be per cent" remarked, interrogatively. "The rate will be generous" MT. Mellon re- piled.
 -ts It may be significant of what is tc come in the way of American loans to European borrowers that Paris, Berlin and London have been overrun by American banking leaders during re- cent weeks. In addition to representa- tives of the three international banking houses already mentioned, Europe has been or Is still being visited by such bankers as J. P. Morgan, Charles 10 Mitchell, president of the National City Bank of New Jersey; Paul M, Warburg formerly of Kuhn, Leob, 6 Co.,, and now head of the International Accept ance bank;. William C.TPotter, head o1 the Guaranty Trust company, of New York; Seward ProsseTy head Of the Bankers Trust company of New York; George F. Baker, IT,, son of the veteran New York banker and philanthropist; Alvin W. Krech, head of the Equitable Trust company; Otto H. Kahn, of Kuhn. Loeb 6 Co.,; Herbert Fleischhacker, head of the Anglo and London Paris National bank, of San Francisco, as well as the principal partners of Yari- GUS investment houses. =. 3. The amount of American money loaned to European governments is ex- pected to be exceeded by loans to strong enterprises in various European countries, particularly in Germany. The opportunities for what might be called speculative Investments" in Germany are described as extraordinarily attrac- tive. Austria, too, is recovering encour- agingly. In Europe one hears a lot about the progress made by Czechoslo- vakia.
 Meanwhile British bankers, one hears, have been very active in seizing finan- cial opportunities in different European countries and in other parts of the world. British bankers are not afraid to take risks where the possibilities for great profits are good. They know inti- mately the conditions existing in every part of the world, for the home outlet for capital being limited, they must needs turn to foreign fields for the em- pioymeqt of their funds.
 American bankers. on the other hand, have always had abundant room for investing capital in our own young country with its matchless resources. both developed and undeveloped. Now, however, that we have so much of the worlds liquid capital that interest rates in New York have fallen far below those ruling in London and in other European centers, our bankers arc anx- ious to find promising investments else- where.
 
 Unfortunately, 1t can't be said that our bankers have shown sound judg- ment in some of the foreign loans they have fostered. The consequence Is that American investors think twice before putting their money into foreign obliga- tions.
 Even so, all signs are that we are on 1he eve of an unprecedented outflow of American capital to foreign fields.
 GENERAL SANBORN WEEDS R.Ada nf Harn Af GhinflIv Rid0a Ie