The times., 1899-01-19
EURoPE's DEBT TO AMERICA.
What Expansion Means When Re
duccd to Figures.
tFrom the New York Wogld.)


London. Jan. l4.-it the moment the great
banking houses OF London are confronted with
an unprecedented state Of affairs Europe more
particularly Berlin Is Americas debtor to an
enormous amount. What the precise figures are
neither the RotIschds nor the governor Of the
Bank of England would venture to specify when
the World correspondent called upon them to-
day. one and all agreed, however in putting it
down at no less than ea1000,G00 (SljO,0o1 0c1. }
This circumstance is unprecedented in iIun-
ciIl history. Europe finds herself for the first
time in debt to another continent. The topic
is The only discussed in European finan-
cial circles, from the establishments OF the
Rothschlds in Vienna, Berlin and Paris to the
Bank OF England
At the same time the eminent heads Of the
financial houses who control Europe's purse
strings are in way concerned at the novel
position in which they are placed. Had it been
brought about eighteen months ago they might
have been alarmed. Any abnormal disturbance
with the financial equilibrium ot the world is the
one object they set themselves TO avoid.
.,merica's circumstances very cxtraordi-
nary at the present time When the Spanish
American broke out" declared Lord Roth
schild's representative to the World correspond
cnt, mo one could have forctold the enormous
outburst OF enterprise in the States the un-
precedented expansion OF trade which followed
upon Americas victory Her harvests, Of course,
have been very good but the present state Of
affairs is most remarkable. You STE tile United
States, self-supporting country, exports
enormously, but imports very little. The consc-
qucncc is her relations TO the rest o: thc world
those OF creditor toward debtor. The bus-
ness of the world is carried on by means Of
capital in actual circulation. and this now, prsc-
tcally to the extent OF at least $50 go, is
the property of the United States. There is no
reason to suppose this will stop long As Amer
icas policy Of expansion continues. Take Cuba,
ior example: Americas trade with that island
has always been good. But Just Imagine what
the industrial value will be- When America has
had its hand for 4 few years in the Philippines
the same thing will happen, but on smaller
scale. The result must be that with America :
increased activity in commercial industry the bal
ancc to her credit in the genera! trade account
OF the world ill go growing and growing
and EurOpc'S indebtedness to her viii dccpen pro-
pOrtonably."
''What IS to become OF Europc's credit
'.Thcsc things adjust themselves. Ii America
is in need OF money she will recall it. and vice
versa. Then, again, Americas prosperity reacts
on her 1t hcme. For example, the value OF dil-
monds exported in New York in IS9s Was three
times what it in thu previous year oi 1897.
and due entirely 10 Americas prosperity"
At the Bank OF England the opinion held Of
Americas commercial prosperity even bright
or. Samuel Stewart Gladstone, deputy governor
OF the Bank oi England, very emphatic:
You zee America stands no nonsense IRON
trades unions, which hamper enterprise so much
over here. 1t strikes me the American workman is
smarter man altogether; he Is more engenious,
@clf-rcliant, pushtul Moreover, his aotivtic, are
not crampcd by societies which tell him how
many hours he j. TO work.
~ 4 matter OF fact. Americas prosperity and
her outstanding account with Europe dale fTth-
cr back than the termination of the spanish
American war though it was that OF course,
which gave it such remarkable impetus. Apart
from the harvcsts, look at the receipts Of the
american railways for the last five year~-and
railway receipts are, after all, in modern times
the true index OF the condition Of trade-and you
will see the totals have been jumping up stead
ily. \ nation Is like 4 private firm; il business
develops it means bigger profits. bigger credit to
other people. Hence it is have Europc's
present Indebtedness to the United States.
British confidence in American securities and
industries has undergone remarkable growth
in recent years, notwithstanding the fact that
the product ctiveness II Europe as a whole has been
ON The increase"