Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-06
process in the manner suggested, It Will
be rendering valuable service all

be rendering valuable service all
around.
What to do with reference to the ques-
ton Of foreign Indebtedness, the methods
to be employed in its payment and the
outlook for complete cancellation Of our
obligations abroad without the sacrifice
of too much gold Is a question that has
been absorbing the bulk Of the attention
of leading foreign exchange experts and
bankers in the United States. Many con-
and various plans were suggested.
Our bankers do not feel that the actual
payment in gold of obligations abroad
would be desirable If the operation
caused such a drain on the domestic
gold supply as seriously to impair the
present ability to maintain specie pay
ments through the further narrowing Of
the underlying gold stock in the United
States. The question is in their minds
what is the actual amount OF financial
obligations abroad calling for or demand
ing the transfer Of gold to foreign
countries An effort Is being made by
clearing house authorities as to what the
total amount Of these calls for gold prob
ably is at the present time. Estimates
will, of course. be approximate only.
United States in Debt.
The situation now is that the United
States is considerably in debt to foreign
countries, owing to obligations incur
red preparatory to the shipment of food
products drawn from this years output.
The shipment of these products will re-
suit. it is supposed. in creating bal
ance abroad that would obviate our TAX
ing gold If We could arrange to tide over
the intervening period pending the time
when the usual demand for American
products has to be satisfied. How long
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depends entirely upon the ability of for
eign countries to resume their purchases
Of American products. 1t has already
been stated by English authorities that
there will be little or no demand for
American cotton in Great Britain during
such as grain are hampered in their
movements owing to the difficulty of get
ting satisfactory arrangements for pay
ment abroad. and owing also to the fact
that England particularly appears to be
temporarily will supplied with foodstuffs
for use during the pending struggle. 1t is
probable that these foodstuffs will soon
need to be supplemented. although exact
Iy how soon large purchases will be made
is in doubt just as in the case of cotton.
Hard to Obtain Capital.
A sidelight on how difficult it has been
to obtain capital on new security issues
ever since the outbreak of the European
war. except at extremely high rates. is
shown by the returns covering new fl
nancing for August, which indicate a
total of only $50 500. This is the
poorest monthly showing in years, and
COMPARES with ST., III, 500 in August a
year ago. Moreover. sums employed to
pay off maturing obligations and to re-
fund different issues are represented as
usual in the total. Bearing on this point,
for example, the September maturities
will amount to 12,O8S, 600: those for Au
gust were s35.945IO00. and those for July
SIG, IL. O0O. 1t is estimated that matur-
ing railroad securities by the end of 1SLo
Will approximate 5O,eo0o0O.
The railroads last month announced
S15,921, 900 in new bonds. notes and
stocks, as against $4O.410,o0o d year ago,
The Industrial total was $l4. 196.j01 as
against $31 .O86OO year ago.
The following table compiled by the
Journal of Commerce Classics the past
months financing (actual issues and
gives comparisons with year ago:
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