Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-20
PAYMENTS |NGO[D
SUSTAIN CREDIT
American Obligations Abroad
Are Well Taken Care
of lust Now.
INVESTMENT MARKETS
LOOK MORE FAVORABLE
Stock Exchange Houses Loosening
Up in Bond Dealings-Trade
Reports Favorable.
BY W. s. COUSINS.

NEW YORK, September 19.-Since
the beginning of the great European
war, with its attendant disasters in the
foreign financial markets, with its
morator1a and It's closed EXCHANGES
one OF the most important question.
asitatlng Europe was whether the
United States would be able to, NEE
It's foreign obligations by gold pay
ments should our creditors SO demand
without doubt the fact that American
securities have always been prompt
~ redeemed in gold has added great.
ly to their attractiveness among
thrifty foreign investors, who have
purchased billions of dollars worth OF
such securities. The chaotic condi-
lions that exist at present have fur
nished one of the hardest tests that
american a. ana finance has ever had
lem has been to furnish, ane
furnish freely, all the gold need.
ed to repay our creditors in Eu
rope. 1t should also be recalled that
Tor SIX months prior to the declaration
aratfon for that terrific conf1agration
the great banks of continental Europe
mad been heavily boarding American
gold; even from st. Petersburg came
urgent calls for our yellow metal
the great question has been answer
lea Will pay every obligation in shin
ing gold. and, in fact, has already be-
gun the process of shipping the pre-.
cious metal to foreign shores There
VIII henceforth be no necessity for
anxiety in Europe as to our ability to
pay our debts in gold, for we are doing
that at no great inconvenience or trou-
BILE.
The significance of the gold ship
ments will be fully appreciated in Eu
will be strengthened. Great as is oul
supply of gold. we naturally do not
want to see any more OIL 1T so ou1
than we can help, but in sending ou
gold as We now are we are adopting
the surest way of keeping as much a.
possible of our gold.
Convincing to Europe.
The shipments now being made ant
those which will follow them cannon
fail to convince Europe that we d.
mean to pay all our debts in gold
Once that fact is sufficiently borne IL
on the holders of our obligations on
the other side they will become in.
legations in the comfortable assurances
that If gold is wanted for them lat
er they can get it.
Theoretically, every one wants gold
for every dept. Practically. very few
debts are paid in gold SO long as there
is no doubt that gold could be had
Until now there has been some doub1
abroad among those holding maturing
American obligations whether they
could get gold for them. There will
no longer be room for that doubt
The mere fact that we are sending
gold out will greatly lessen the prob
able European demand for our gold
Apart from the investment demand II
this country for the one, two and three
year obligations bearing 6 per cent
interest which New York city has pu
out, it is considered probable that Lon.
don will be inclined to invest a con
siderable amount in these issues.
With discounts being made there only
a little above 3 per cent, a 6 per cent
Investment in New York city ohliga-
lions looks very attractive provided
the English holders could convert then
into gold If gold were needed And
here again the fact that the maturing
obligations are being met in gold viii
greatly increase the willingness OF
London to take these obligations.
stock exchange houses have let down
bars as far as trading in bonds is
concerned, and if the relaxation of the
rule against buying or selling below
the closing price July 80 last works
we'll in the case of bonds it will prob
ably be extended to stocks, and then
the stock exchange will soon reopen
it's doors.