The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-05-15
FRANCE THE #ORLDS BiNKER.
ConditioRs Nhirh Give IIer an Annual
Cresin balance % ss1O. OOO. OOO.

From NOots's Mdggsins.
There was a time when many persons
believed that New York was d.stined
soon 10 be the worlds financial centre
This Nas during the boom period u 1870
1901. Foreign trade was largely in our
favor. For the fiscal year ended June -
1901. the favorable balance amounted
to soai 900. coo
But A. We received very htt!. cash
In settlement thereof the claim was set
up that We were lending the balance 10
foreign capitalists and bankers. The
boast was made that the United state.
was changing from a debtor 20 a creditor
nation
Alas for human hopes and dreamsl
Two weeks after the panic of NAY . 4
wus discovered that American bankers
we're borrowing immense sums abroad
We have been borrowing other immense
sums since then a. the end ~ ig0a We
owed 900 90 600 10 Europe
All this time France was steadily forR-
ing ahead in the race for supremacy.
IL Is true that her general business pros
but nevertheless sha seemed 20 have
more money 20 show for what business
she did Whatever trouble she expert
enced was on accOunt Of lending too much
money o. other countries.
These different conditions naturally
suggest the question why 10 ~ that "A
country like France, which pRoduce.
practically no gold. has 40 much of il to
lend. while the nited states. which has
produced such vast quantities ~ the metal
Is thus forced TO borrow Il from outsiders
in order 10 avert serious financial disturb
anCe.
The orthodox answer 10 this question
ID that the prosperity u France IL mainly
due Ia the thrift o. her people, who~a
great aim In life IL when they have four
cents 60 save two.
But this answer contains only a small
part 81 the truth. The whole truth
would show that In it, dealings with
the outside world France a. a natton
practisea the same thrift that mas "a
prUspsrod the indiy dual Frenchman
Paris y tho Mecca Of foreigners
They come from all parts VI the world
10 enjoy life IN tho great mstropolis
and the yearly income from this source
alone approximate t00O 10000. Along
with this item ths earnings of French
NAFAAAllHA ou Nltu ulNNaNluaula m the
securities and properties u other coun-
tries amount 10 $50. GO 90 a year
On the other side Of tho account l. an
adverse balance q trade which in iGJ5
amounted 10 $4,000 90 Deduct this
OutgO from her income 70 $500 90 COO
and u leaves Frame with SJ3O nnO Don
20 the good. There b no other country
IN tho world that can make such a showing
IN IL dealings with other countries: and
here h the whols secret Of her wonder
ful prosperity. TINS is how she has
become the worlds banker.
Instead d getting an income Of SaOO.
00O.OO from iOroim tourists the United
States pays out az least ti50 600 600 FOR
The Expenses Of American tourists abroad
Again. instead u drawing $3.50 200 .O0O
yearly from foreign investments this
country pays out $40 ono .uQ 10 for
eian investors In our securities and
Properties A third factor v the army
u aliens who fioCk here from an narts
n the world 10 hoard up money. which
they take hack n their own countries.
tho drain costs % tl00 an 900 more
Add ei00.o00l noO more which We nav
Tor cream lreiNhts IN foreign vou-ejs
Deduct our yearly income of tlo0. 90 an
Tor favorable trade balance. and n ir.vSr
q yearly deficit % ~ 900 900.