The Washington herald., 1915-10-18
LOAN TO ALLIES
big AID TOU. 5.
Noted Financiets and Public
Men Explain A, B, c Of
Mammoth Deal.
ISSUE SIGNED STATEMENT
ISSUE SIGNED STATEMENT
Declare Aid to England and France
Is Absolutely Necessary to
Prosperity Of This Nation.

New York. October 1L-In view OF the
Misunderstanding that has been caused
and purposes Of the Angio-French loan
brief and lucid statement OF the cir
cumstences that have made the loan
necessary no less TO the United States
than TO Great Britain and France has
been issued above the signature Of
number OF distinguished business and
professional men whose high standing
and undoubted patriotism should be
SUFFICIENT assurance to all who have
hitherto harbored doubts as to the pro-
priety or the security Of the Transaction.
The signatories OF the statement are
Fairfax Harrison. OF Washington, d. C.,
president Of the Southern Railway; Jo-
seph H. Choate. James J. Hill. E. p.
Ripley. president OF the Santa Fe Rail-
way; Charles W. Eliot president en-
eritus of Harvard: Howard Elliott, pres
ident of the Northern Pacific Railway;
Theodore n, Veil. president Of Ameri-
can Telegraph and Telephone Company,
Western Union Telegraph Company and
New York Telegraph Company; Seth
Low, former president of Columbia Uni
versity and former mayor of New York;
Daniel Catlin. of st. Louis: Henry L Hig-
ginson. banker and capitalist; II. b
Ledyard, chairman OF the board Of d.
rectors, Michigan Central Railway: Rob-
srt r Lincoln, former Secretary of War,
and former president Of the Pullman
Company: Franklin d. Locke, of Buffalo,
N Y. and Henry walters, director Of
United States Steel and other corpora
tions.
The statement is as follows:
what Loan Means.
This country has not been accus-
toned to extend credits, upon large
scale. to foreign countries. and many
people do not understand what such cred
its mean to the maintenance and extern
sion Of our agricultural and commercial
interests. Each one of us who signs this
statement has been asked so many times
to express his opinion on the subject
that we have decided, IN this way, to
place before the American people our
understanding OF the plain facts in con-
nection with the loan Of five hundred
million dollars to Great Britain and
France
During normal times Great Britain
and France purchase from US. every
year, about s75OOO0.oO0 In farm products
and other commodities, and We buy
heavily from them. Ordinarily the pay
ments by one country to the other are
accomplished without the shipment OF
COIN the indebtedness of one country 60 /,
Ing to offset that of the other; and the
difference, usually constituting a small
balance, is covered by gold shipments or
otherwise.
Now. owing to the war. our pur-
chases from Great Britain and France
Jour two chief customers) have fallen
of. and their purchases from US have
Increased enormously. Thus. the total
trade balance in our favor for the year
ended last June was over 81 900. ooOe 600. of
which s947 600 or over IS per cent. was
represented by the trade balance against
these two countries. 1t is clearly impos-
sIbIe for these countries to continue to
meet these heavy balances through the
ordinary channels OF International ex-
change. Such heavy shipments Of gold.
as would be required for instance. are
net only difficuIt. but IN these days I'M
wise to undertake. Moreover. this coun-
try already holds a stock OF gold larger
than its immediate uses require.
America must, therefore, find solu-
ton OF the problem OF financing for a
time this favorable trade movement; or
else run the risk OF losing a large part
of its export business: for the United
States appears to be by no means tine
only country in the world where Great
Britain and France can buy. on favor
able terms, the grain and other commod-
tiles they require. II these two great
nations are obliged materially to de-
crease their purchases from US. the re-
suit may be lower prices for our farm
products. and less work for our facto-
rieE.
In other words. II we want these
countries to continue as our best custo-
mers and thus to bring increasing sub
stance to our communities. We must al
low them to settle by some system of
deferred payments for the commodities
they buy from Us.
How U. S. BENEFITS.
This loan therefore which. in total
amount. is only two-thirds of these ma
lions normal purchases from US each
year. is simply a system Of deferred pay
ments. In other words. we are lending
TO Great Britain and France $500. 900. 900.
50 that they may purchase from US
things that we want to sell them.
TO the United States this loan means:
/. That not one dollar OF the money
loaned will leave our shores
go. That every dollar will go, directly
or Indirectly. TO some American farmer.
working man. merchant. or amnufac-
turer. in cash payment for food stuffs,
raw material, labor. and manu-