The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-10-05
NEED Of DIFFERENT
METHODS IS SHOWN
WORLD HAS NEVER BEFORE HAD
TO DEAL WITH SIMILAR
SITUATION.
SUNS FINANCE. REVIEW
COURAGEOUS ACTION NEEDED TO
READJUsT FINANCIAL WORLD.
LONDON, AS MONEY GEN.
TER, WEAK.
SUNS FINANCE REVIEW

NV" W n, w. ne Cbh W
morrow in it's review of the financial
situation will say:
| There Is need of a different treat
ment of financial and business ques-
tions than that which they have re-
ceived recently from the treasury de-
partment. There has to be recos-
nized first that the world has never
had to deal before with such ter
rife factor of economic arrangement
as the present war in Europe. Pre-
cisely when the most stupendous con-
fiict in history broke out the world
had advanced to an unprecedented
stage Of economic completely as a re-
suit of which there exists more
perfect equipment than ever to cope
with so vast an emergency. but as
result of which also the disrupting ef-
fects OF the war on all economic re-
{ lations are more destructive.
The second fact which has to be
kept In mind is that If the commercial
and financial equilibrium is to be re-
stored in our own country due regard
must be paid to the tremendous dis
turbance of business already wrought
and to the necessity of consulting
such teachings Of experience as may
apply to the present situation in en-
deavoring to facilitate the wide re-
adjustments which the war has made
iieCcsSdTy. ACtIOIl must pe Couid8c-
Gus. but as remote as possible from
that recklessness which would only
invite disaster.
1t seems likely that Mr.. McAdoo,
in his recent efforts to compeI q
ladical banking departure from these
prudent courses which circumstances
require was rejecting the embarrass-
ment which Washington has felt
under the inordinate pressure OF the
Southern cotton. growers to have the
government do something extraordi-
nary for the relief the South, which
is threatened with a heavy loss Of
money on this years cotton crop.
There can be only approval for the
resistance which the government has
thus far offered to pestilential projects
proposed in behalf OF cotton. but
there can. be only regret that the
Southern clamor seems to have in
duced Mr.. McAdoo to seek to d.
vert pressure from the government to
the countrys banking community.
We venture to say that wherever
there is an opportunity in the United
States today for a banker to make a
loan in order to enable both to be
done he will only be too glad to grant
the accommodation asked.
Much as American finance can do
to right the foreign exchanges, as 1t
has done and Is doing, it cannot do
everything A burden of RESPONSE
biliiy lies on the London money mar
ket, the worlds central money mar
ket The bill OF exchange on London
has been the worlds accepted medium
for the international transfer of funds
in and through all financial centers.
and 1t begins to look very much as
though London were not living up to
it's responsibility or doing Its duty FOR
bills of exchange on London are
! hardly to be had.
! Something besides the war has gone
wrong with British finance, and the
worlds primary money market Is not
manifesting those qualities OF re-
sourcefulness and courage which 1t
should demonstrate II 1t is going to
live UP to the motto which British
trade and industry are said to have
adopted for the war-"business as
usual"
At the wide disparity which OBJ
tains between our present high rates
for money and the present relative
cheap ness Of funds in London, we
would ordinarily expect to have cred
its forced upon US from abroad. Ger
tainiy we should expect to see Lon
don assisting our money market, in
stead of subjecting 1t TO difficult
cofnpulsions. and the exigencies of
the war do not explain London's
financial policy today.
Great Britain is by far the largest
holder OF American1 securities. 1t is
going to be of great benefit to Great
Britain If hel investors are able to
find a compare lively satisfactory mar
ket here for the American securities
they own. 1t is not going to be pos
sible for us to supply such mar
ket without the aid OF international
credit instruments to finance the
transfer OF our securities back to
us.