Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-06-24
By ". q. NICHOLAS.

NEW YORK. June 22.-The developments
of the week furnish further proof Of the
statement made repeatedly In these dis-
patches that the great banking interests
are In friendly conspiracy to prevent none
tary stringency as far as les In their
power. They are doing all they can TO
make provision for every business require
ment, not only In Wall street but through
out the country at large.
The successful placing of the $50.OOO.0oo
Pennsylvania loan in Paris Ia striking
and practical illustration In point. The
Pennsylvania had to have the money, ana
by reason of Its ability to borrow aproso
it not only relieves the home market OF sne
responsibility of providing the FUNDS, on.
It shifts the burden so as to leave American
capital to that amount free for other puf
poses. Not only that. but the transactloh
has wonderfully tonic enecs on conn-
dence Wall street figures that this rem
sylvania stroke of financiering makes
direct difference IN the New York money
market of S1O0, coo, GOO, plus the sentimental
effect Of impressively proving the stlenstn
of American credit abroad. There Is NOT
much force to the latter point, however, as
American credits in the old world nave
been indisputably good for many years. !.
is grateful, though. to our nnanclai pr,ao
that France should at length have given
highest official recognition of the stand'ng
of American railroad securities ana opeheo
It's Golfers to Uncle Sam. To that enIene
the incident OF maK1NS d plk AOdA AZ
is nattering tribute. Hereafter no marker
in the world will be closed against US wheh
we want to reach and borrow money:
That is all very fine from DEBTOR
standpoint but the incident and the 1ublia-
ton attendant thereon calls attention to the
fact that the United states mas not naue
good the frequent proclamations tnat II
had permanently taken rank as creator
or lending nation. 1t was only rev years
a9o that great ado was made over ouf
PARTICIPATION In foreign loan. ana Whhin
the last two or three years American money
had gone somewhat into Russian any
Japanese loans. One of the things wei
known in banking quarters Is that most Oh
these securities have been SOLD pack 70 I1u-
ropeans, and at the same time eAtfao.
binary efforts have been MADE 10 eAteuU
and enlarge the field of foreign invest
ments in the stocks and bonds OF American
railroads and industrials. More than tha..
the device has been revived OF oofroWine
money on large scale IN Lonoon oy a.
change through London and having them
carried there instead of on this SIDE.
Legitimate Development
II is a pleasing fact that the great bulk
Of money which is being borrowed in coios-
sal aggregate at home and a broad is going
into substantial things-into the legitimate
extensions of business. permanent Improve
nents and the healthful development OK
natural resources Hundreds Of millions OF
dollars in money are being turned nl.o
business blocks and residences In our large
cities, other hundreds OF mllllons are oeis
invested in mines of every description anu
in their proper and legitimate development.
railroads are still going ahead, mereasns
their facilities for the handling OF business
pressing upon them, and there ~ w
seen on every hand amazing trade expah
sion All this takes money and credit, ana
&C the whole nation has been unoer nlHh
pressure of material prosperity and pros.
tbat we should be reaching out for dollars
wherever they can be found lying Idle or
seeking profitable employment. America
having expanded IN business way up ~
the limit of its own avaiiaole casn; ~ Iiu ~
narforca look elsewhere for the sinews OF
war to carry on its business. Next to hav-
Ing money of your own is the ability TO
borrow.