Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1910-05-24
FRANCE THE WORLDS BANKER.
Conditions Which Give Her an Annual
Credit Balance of $730,0OO.0OO.

There was a time when many per-
sons believed that New York was des-
tined soon to be the worlds financial
centre. This was during the boom
period Of 19OO-19O1. Foreign trade was
largely in our favor. For the fiscal
year ended June 80, 1901, for favorable
balance amounted to $664.OOO.OOO.
But as we received very little cash
in settlement thereof the claim was set
up that we were lending the balance to
foreign capitalists and bankers. The
boast was made that the United States
was changing from a debtor to a cred
itor nation.
Alas for human hopes and dreams!
Two weeks after the panic Of May 9, 1t
was discovered that American bankers
were borrowing immense sums abroad.
We have been borrowing other i'm
mense sums since then. At the end OF
1906, we owed $500, 100000 to Europe.
All this time France was steadily
forging ahead in the race for suprem-
acy. 1t Is true that her general bust
ness prospects did not seem to be as
good as ours, but nevertheless she
seemed to nave more money to show
for what business she did. Whatever
trouble she experienced was on ac-
count of lending too much money to
other countries.
These different conditions naturally
suggest the question why It Is that
country like France, which produces
practically no gold, has so much of 1t
to lend, while the United States,
which has produced such vast guam
titles of tine metal, is thus forced to
borrow 1t from outsiders in order to
avert serious financial disturbance.
The orthodox answer to this question
is that the prosperity Of France Is
mainly due to the thrift Of her people,
whose great aim in life Is when they
have four cents to save two.
But this answer contains only
small part Of the truth. The whole
truth would show that in its dealings
with the outside world France as a
nation practises the same thrift that
has so prospered the individual
Frenchman.
Paris is the Mecca of foreigners.
They come from all parts OF the world
to enjoy life in the great metropolis,
and the yearly income from this source
alone approximates $600,00O,OOO. Along
with this item the earnings OF French
capitalists on their investments in the
securities and properties Of other
countries amount to $25O,OOO,0OO
year
On the other side Of the account Is
an adverse balance Of trade which in
1907 amounted to $120,000,000, Deduct
this outgo from her income Of $780,
900, 900 and 1t leaves France with $780,
600, 900 to the good. There Is no other
country in the world that can make
such a showing in its dealings with
other countries; and here Is the whole
secret of her wonderful prosperity.
This is how she has become the
worlds banker.
Instead Of getting an income Of $780,
100000 from foreign tourists the
United States pays out at least $150,-
900, 900 for the expenses Of American
tourists abroad Again, instead OF
drawing $250,000,000 yearly from for
eisn investments this country pays out
$500, 100000 to foreign investors in our
securities and properties. A third fac
tor Is the army Of aliens who flock here
from all parts Of the world to hoard
up money, which they take back to
their own countries; this drain costs
us $500 000, 900 more. Add $1OO.OOO.0OO
more which we pay for ocean freights
in foreign vessels. Deduct our yearly
income of $50O,OOO.000 for favorable
trade balances. and II leaves yearly
deficit of $3.50, 900. O.000-Moody's Maga-
zine