The Washington herald., 1914-09-24
COMMERCE AND FINANCE

the convention; prominent speakers VIII
| take part and doubtless discussion
will follow on this subject.
The entertainment program 50 far ar
ranged will include a trip down the his
toric James River and q visit to James
! town, the site Of the landing OF the FIRST
English settlers. on America Three
steamboats, have been chartered for this
occasion.
The principai musical event. among
others, is a musicale to be given at the
City Auditorium Wednesday night The
following artists have been engaged:
Alma Gluck, soprano; Antonio Scott,
barytone; Zimbalist, violinist.
The governors ball and reception will
be given on Tuesday night in one Of
the large armories, possibly that OF the
Richmond Laght Infantry Blues the sec
ond Oldest command of its kind in the
United States Henry Stuart, governor Of
Virginia, viii bead the receiving line.
Foreign View Before War.
A banker who returned short time
ago from a long tour on the Continent
Immediately after his arrival wrote to
President Wilson. giving a review OF the
situation as he found IT then.
The following extracts from his letter
refer to conferences and interviews held
before the conflict of nations was be-
heYed to be pending. His interviews
which were prior to the war, were held
with leading banks and bankers of Ger
many, England, France and Belgium. In
his letter he said:
The attitude was one OF. unqualified
hostility. based upon
cd Poor earnings by our best-managed
railroads, and the uncompromising posi-
ton taken by the Interstate Commerce
Commission, in the matter Of advances In
rates where so greatly needed.
go Apparently misplaced confidence in
the integrity of some American direc-
torates and arrangements.
90 Disgust resulting from losses in
successive investment issues and the
fiotation of supposedly sound securities
AS a result OF the European bankers
lesses, he refused to further invest or
permit his clients 10 do So.
THE serious feature of all this is the,
withdrawal of European participation in
providing adequate funds for the proper
development and maintenance Of the rail-
roads and Industrial properties.
This feeling is not due in any sense
to Europe's own present trouble and
prospective financial needs: all of my
visits and interviews having taken place
prior to any expectation of the appalling
strife, now unfortunately engaging most
Of them.
ITO sum up their antagonism. the best
banking and business interests there, fail
to understand why America does not
provide:
Il. Sufficient earning capacity to place
her railroads on a prosperous footing.
and for the creation OF a surplus for
lean years:
''2. A single authority to eliminate con-
fiicts between State and national COM
missions, with their attendant confusion
in rates;
% A definite announcement, when a.
suit of inquiry is instituted, as to when
a decision will be rendered.
Please understand, Mr.. President, that
this letter is not sent in any spirit of
carping criticism, but rather because am
encouraged by what you have already
accomplished in this matter, to bring
these criticisms of our European friends
most respectfully to your attention and
as emphasizing the necessity for a con-
tinuation of your efforts until the de-
sired ends shall be attained.
From our own points of view one
need for the rehabilitation
of American railroad credit, is the COM
ing maturity of, say $1,000, 900 900 in short
term securities, all Of which must be
furnished by America, in the absence of
European participation. We must also |
bear in mind. the very large amount of
municipal and industrial maturities, a
proportion of which is held
abroad and will not be renewed by them"
Wars Huge Cost. :
THE duration of the European war"
remarked a prominent banker. will be |
determined by money. Before the war !
started money conditions all over Eu- |
rope were bad. I cannot see how it can !
be ong-drawn-out war, with the people |
beginning to feel pinch Of pow |
erty. About the time the warning ma
tons begin to make their estimates for |
large loans to continue the conflict, the |
bankers, with the support of the people |
who are unable to stand the burden long |
er, will step in and take hand. There |
is no way of telling what this war is |
costing Europe. I have seen estimates |
of $50, 600 900 a day. which would be at the |
rate of SIS 250, 900 a year, but this Is |
but one item. A great item can be found |
in the loss Of labor and its productive |
and consuming capacity. Let US say
that 5000 900 men have been thrown out
Of work as a result of the war, and
that their average wage was 800 per
year. The value Of the output OF each
United States Steel employe is g, 500 an
nually. Say that the ratio in Europe is
Z, 900. and you would find that the pro-
1uctive capacity Of these 100000 men
out of employment would amount to S10,-
)00, 00O, 900 annually. Destruction of prop
perty. waste, deterioration, and disrup-
ion of corporate organizations will add
more than 81 ,0OO, 900, 900 to the loss IL the
war is continued for twelve months.
When the time comes the banker will
have some very convincing arguments
to place before the war lords who are
eading their respective countries to sure
financial and commercial destruction"
Until the sterling exchange rate can