The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-08-15
The New British Loan.

No more wonderful illustration of the
change which three years Of Republican
rule have brought to the country could
be cited than the fact that one-half of
the recent issue of British bonds was
allotted to New York, and was promptly
subscribed there almost as soon as the
books were opened. The reason why the
bonds were allotted to New York in
stead Of all being fioated in the London
market was that It was hoped by plac-
ing portion OF the loan in New York
to secure in this manner some more gold
from the United States.
The tremendous balance Of trade In
years shows that we have become one Of
the leading creditor nations of the
world. There are millions due this
country in Europe, which could be with
drawn at any time, sending gold i'm
ports up to a very high figure. and
draining Europe OF its surplus supply.
At present. however the interest rates
for money are so low and the supply
on hand in this country so great that II
actually earns mors abroad than here.
The ease of the money market and the
heavy supply available made 1t q simple
matter to float the British loan in New
York. 1t Is altogether likely. however.
that to pay for the British bonds It will
not be necessary to export any gold at
ALL The balance due this country abroad
Is much more than sufficient to meet
the demand, without any expectation.
In any event, however, the exporta-
ton of gold for such q purpose will
hardly create a ripple on the financial
sea. If gold goes abroad now, It goes
to the credit of American investors. not
in settlement OF trade balances against
us. 1t will return as soon as interest
rates advance in this country above the
standard Of the European markets; and
the balance of trade In our favor, and
consequently the debt which Europe
owes to this country, is constantly
growing larger.
During Mr.. Cleveland's last admins
tration the situation was precisely re-
versed. The export OF gold was a
menace TO the financial world In this
country When the Cleveland bond is
rue WAS vnada 20 ranafr tha aaa.tarnto.
In the national revenue caused by the
failure OF the Wilson tariff law TO raise
enough to meet the governments ex-
penses. and by the Democratic threat OF
free silver. 1t was made one of the con-
ditions that the syndicate which fioated
the loan should bring In foreign gold
enough to pay for the bonds. and should
prevent the expectation of gold for a
fixed period. The Bank of England then
Viewed the situation with eauanimity.
1t knew that IL could withdraw gold
from the United States at any time
when 1t was actually needed.
Now IL IS the United States which has
the gold and the credits abroad with
which 10 draw more to the country
when II is needed. New York Is the
financial center. not London. and the
United States Is rapidly becoming chief
among the creditor nations. The chang
ed outlook OF the United states ON the
world within the past four years IL the
most startling ever recorded in history.
and the matter OF the British loan IL
but one OF the minor incidents OF a.
A delegation OF eolored men called on
Mr.. Bryan while he was In Chicago re-
Gently and assured him that they would
support him Whether the conversa.
ton drifted to the matter OF ne
gro dlsfranehisement in North Carolina
Is not reported