Western Carolina Democrat and French Broad hustler. [volume] (Hendersonville, N.C.) 1913-1915, 1915-10-07
AMERICA's UNIQUE POSITION.

AMERICAS UNIQUE POSITION.
"This is the unique situation in
which the almighty American dollar
finds itself today says an exchange.
which adds:
1t is the supreme money standard
of the world, compared with which the
English POUND STERLING is at 5
per cent discount, the French FRANC
German MARK about IL per cent dis
count.
For food automobiles, horses and
! eight months of THIS YEAR, the
warning nations of Europe owe US
ONE BILLION DOLLARS on balance.
To pay the bill, England, acting as
financial agent for herself and all her
allies, has sent US during the last
month, on account, over TWO HUN
/ DRIED MILLION DOLLARS worth of
! gold and our own securities.
The governments of France and
England are urging their citizens to
sell their American investments for
patriotic reasons, and European in
b6SJOTS nave uOu0 So 10 lie 0AIGuL- Ol
$500, 900 900 to $500, 900, 90 within a
year. Compared with the total cur
rent debt to US this is equivalent to
a payment on account of, perhaps, S5
cents on the dollar due us.
The European investor in our secur-
titles who sells now is profting by the
present rate of exchange. Thus, a
British investor owning 100000 worth
- Ananri0n- -osno-I -RO4Ir- -
who sells in New York receives
AMERICAN DOLLARS. These trans
ferred back to England by cable from
$105, 900 to $107,0O0 in English cur
rency, or in France from Sis, 900 to
100000 in French money.
So sound is the present condition
of American finance this very heavy
foreign selling of our best securities.
is being digested here by our own in
vestors easily and at RISING PRICES.
Thrice within a month a British
warship, changed into a treasure ship
and conveyed acros the Atlantic, has
brought from $50, 00O,0 900 to $50, 00O.-
600 in gold and securities to America.
The precious freight has been carried
to New York by special train, preced-
ed by a pilot" and watched by more
armed guards and high railway off,
Gals than attend any monarch-so
much more carefully do men guard
gold than human life.
The largest of these shipments,
EIGHTY MILLION DOLLARS, great
as that sum is, is only a drop in the
bucket of debt which Europe owes us,
and which is increasing SIS, 000, 900 on
balance between sunrise and sunset
Of every working day.
There is another extraordinary fea-
ture in the situation. British mer-
chants have always proudly paid their
bills to Americans in pounds sterling,
which they have always considered
the best money in the world. French
merchants. from both patriotism and
habit have made their price lists in
francs. just as the Germans do in
marks.
American merchants who ordered
goods three to six months ago in Eng
land or France, are now paying for
them with less money than they con-
tracted to pay! This is SO because it
costs from 5 to 20 per cent less IN
AMERICAN DOLLARS to buy the
same amount of foreign money now
than it did six months ago. Thus one
hundred thousand DOLLARS worth
of British pounds sterling at current
rates of exchange cost only $94, 600,
one hundred thousand DOLLARS
worth of francs only $S4, 1000, and one
hundred thousand DOLLARS worth
of marks only $85. 900. Rates have
tgone Of late even lower.
Europe could restore its c~urrencies
to par In New Yerk-noW the para
mount marketplace Of the worldly
sending GOLD to the United States in
sufficient quantity to pay current bills
Europe owes here. That would auto
matically bring the rate Of exchange
back to equilibrium, or normal.
But Europe cannot spare the gold,
and, strange to say, New York bank
ers DO NOT WANT 1T. i
But the entire stock of gold in the
Rank of England and the Bank OF
France, IL transferred to us, would
not quite pay the actual indebtedness
to the United States incurred, on bal
ance, since the wal began. Gold has
Ialmost disappeared from circulation
in France and England and Germany
because the governments are boarding.
it to protect their credit.
Every day that the present condf-
ton continues adds arti1cially to the
cost of supplies which Europe MUST
buy FROM US.
And every day it d~isastrously at
!fects the private citizens of France
and England doing bushes with us,
who are now receiving payment for
their wares in American dollars
WORTH MORE THAN ANY OTHER
STANDARD IN CHRISTENDOM. and
therefore we are able to buy from
them cheaper than ever before. .
The President desires to maintain q
position of strict neutrality; he has
hoo~ -o&3on4 oo5 Iono o11RForfrs - - In