Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-06
How The War Affects Us,
XIv-Export Credits,
By Frederic J. Haskin.

How are we to finance the vast foreign
trade which through unforeseen chance
suddenly seems to be ours for the taking?
London. Paris. and more recently Berlin.
have directed international credit and a.
nance SO long and so successfully that
we have not had to concern ourselves
with the study Of this business. London
has not only financed her own wonderful
commerce. but has performed similar
service for the greater part of our trade
with other nations. Now London is far
100 keenly interested in affairs at home
TO be OF much moment in the interna-
tfonal money and credit market Bills
upon London and Paris must make way
ior bills upon New York, and the dollar
uraft must be negotiable on as favorable
Tor pounds sterling
RMS matter of reorganizing the interna-
tional exchanges of the world with New
York instead of London as the con-
nsoiiing center u.s.. however. only one
tremendous business which must come
TO US, possessors of the worlds one great
peaceful market. Another element of
equal Importance is what is to be the
nature of the export credits which our
manufacturers aand exporters must meet
what are the present foreign credits and
VIII inc present system be seriously af-
lected by the war? 1t might be said here
mat 1t will be one of the responsibilities
oi our nnanc1ers to undertake the giants
TASK OF Keeping the money markets of
the neutral world as nearly as possible
upon an even. normal course In order
10 fulfill this responsibility we will not
nave single copper of capital to waste
upon Europe's wild bacchanaI of de-
struction. Europe has lighted her own
confagration. and she must pay for it.
foremost in the interest of the United
states, as 1t prepares to bend its energies
to the task of conserving the strength
and ability to progress of the neutral
world. Is South America. Ever since the
famous cruise of our battle fleet around
cape Horn our neighhors of the south
have meant more to us and we to them
Whatever the reason for this cruise. our
fleet carried no menace in South Ameri-
can waters. while in the warm inter-
charge of courtesies along the route our
officers fairly outshone the bright tradi-
tons of navy diplomacy. 1t is the two
Americas. then, which must benefit the
most from the events of this beginning
of new world era.
Since then the successful adjustment
of our affair with Mexico and the actual
opening of the canal have brought North
and South America closer together in
both moral and physical senses.
What will be the credit systems of
South America as affected by this pres
ent war? The
Effect of War South American
on Credit System. Countries in
need of capital from the more fully de-
ye!oped nations of the world wherewith
to make steady provision for the growth
which their great resources promise
They. like ourselves. until the last day
OF July, were looking forward to many
decades of prosperous development as
debtor nations. For the opening OF their
mines. the building of their railways. the
development of their water powers, the
construction and equipment of their rae
tories and for the improvement OF thelr
harbors, their cities. their farms and
their various means for internal commu-
nication. the republics of South America
must depend in great part upon the
Willingness of foreign capital to seek in
vestmenu With them.
Heretofore. this necessary sinew of in
creased production and general progress
has been supplied by England. France.
Germany and financiers OF other old