The Birmingham age-herald., 1913-08-20

whose offices were in New York and who
visited many parts of the grain growing
regions returned to this city and con-
fessed that they could not find words 10
express their sense of the magnitude OF
the wheat crop which at the time was ripe
and ready for harvest. It was a record
crop, not since that day equalled. Other
crops which we're bountiful and were har-
vested coincidently in time with the re-
viving activities that began in 1897 pro-
vided the United States with means with
which to pay off considerable portion ct
Its European obligations. There was stim-
ulus due to the Spanish war, and the
demands of England for some of the ma
terfal needed for carrying on the war in
South Africa also greatly stimulated
trade.
We Owed Three Billions
The estimate which was generally ac-
eepted in the last year of the past century
and the first of the present of the aggre-
gate sum representing the debt we owed
to Europe on fixed obligations was about
So coo, 100000 Furthermore, 1t was esti-
mated that in the latter part of McKin-
ley's first administration and In the first
year of his second, including the begin
ming of Roosevelts administration, we
paid off about s1,00O00o,o0 900. If this esti-
mate were not an under statement we
were still a debtor nation, so far as Eu-
rope was concerned, by as much as S2,O0o,
100000
Therefore, taking Sir George Paishs es-
innate as a basis for comparison, we must
have run heavily into debt in the past
12 years, so that now we are a debtor
nation so far as Europe is concerned by
about 5000 100000.
The interest and dividends upon these
obligations, estimating them to average
per cent, must be in the neighborhood of
$3.50 600 600. That large sum Will go far
toward offsetting the favorable and visible
international trade balance which is esti-
mated to be about s65o,0o0,0oo.
Great Britain the Chief Creditor
While there are no details furnished by
Sir George Palsh by which 1t can be
learned exactly where these obligations
are now held, yet there can be no douot
that the greater part of them are in the
hands of citizens of Great Britain.
France, relatively speaking is not a very
large creditor of the United States
The figures serve to explain why 1t is
that Great Britain, with apparent and Wis
ihle trade balance against her. neverthe-
less receives each year funds in SO great
amount that the kingdom is constantly
accommodating new capital for investment.
The. United States must be paying 10
Great Britain a very large sum every
year in the form of interest and dividends
upon American securities in which Brit
ish capital is invested. In addition, we
pay chiefly to Great Britain very large
sums which steamships flying the British
flag charge for carrying our expectations
to Great Britain and elsewhere. The sim
gle item of insurance Is heavy. And there
arc other invisible and unrecorded pay
ments made to Great Britain, so that the
aggregate of payments must go far TO-
ward completely offsetting the great trade
balance which the record of exports and
imports reports in favor of the United
States A few years ago, when the visible
trade balance in favor of the United
States was about 500.0Oo0o0. one of the
leading international bankers said to the
present writer that it was fortunate for
this country that so large a trade bal
ance had been secured. since it would
probably leave about $100,000000 to the
good. His estimate was that 1t would
require at least $4,000 900 to pay interest
and dividends upon American securities in
which the capital of Great Britain and
the continent of Europe had been in
vested, and also to pay freight charges
and insurance and other incidental obi
cations.
A Creditor Nation
Many Americans have contemplated