New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-10
Investors Holding OF.

points are intermingled.
Investors Holding OF.
"Throuchout the world investors have
feeling that they can do better with
their money by holding il for some
time. All see that money in the near
future is bound 10 become considerably
dearer. This is Illustrated by the fact
that there wasn't any frantic rush over
the last British loan, while in the case
of Italy Italian bankers were landed
with almost the whole Of the recent in
ternal loan Of only S40,000,000.
Now. whatevS amount the British
government raises at the moment II is
certain that they have 10 raise vastly
greater amounts before the war Is nm
ished. Possibly they could now raise,
say, half billion dollars in England at
per cent. But this would not 20 lar
and il would tend to increase the rate
Of interest Of successive and neces-
sarily larger loans.
ION the other hand, as the matter
stands. il would be possible for them
10 raise a billion and half dollars
IN America al between 3 and per
cent in the next few months. The ma
ioritv Of British bankers and number
Of leading ministers favor this, their
argument being that paying TINS hlgn
rate OF interest would be cheapest IN
The long run, because money is certain
10 attain fearful price after the war
+ ended This argument controverts
thar Of their opponents, who state that
200 great a burden is being LAID upon
Iosterity.
"Momentarily, the question is IN
allowance because an agreement upon
the interest question has not been
reached, although It must ne within
the next four weeks.
America Would Solve Problem.
But the entrance Of America would
solve this ncint. Without doubt JOINT
meeting wo ] Immediately take place
between the financial representatives
Of the interested powers for the pur-
pose Of arranging financial co-opera-
tioi., and il is widG-y discussed to-day
where such a meeting might be held,
and whether America would send spe-
ciai representatives. or whether Amer
lean bankers in Europe, who are al
ready closely entwined IN previous dis
cussions, would be delegated to repre-
seat America.
n this were to take place then the
financial problems Of the present quad
rur.e alliance would be greatly simpll-
heG As matters stand. America has
no aualms about advancing any money
required 10 Britain.
About the other three Allies she is
not so enthusiastic as regards their
powers of repayment. But England
cannot bear the entire financial burden
forever. For instance, Italy came into
war prepared TO continue for SIX
months, and before entering, she had
definite assurances of support from
Britain and France. In fact, the
Italian Ambassador 10 Paris reached
Rome with these in his pocket before
war was declared.
"This makes Italy safe as far as the
war charges are concerned for some
time. But apart from this she has
certain international engagements ma
turing this year which must be met
and Chancellor Of the EXchequer Nc
Kenna has visited the Continent this
week for the purpose OF arranging pay
ment of these obligations. They will
he met, but inevitably they must en-
tail severe burden upon the Allies
credit.
"To realize the financial burden Of
this war il is necessary to bear in mind
that it is costing France one and one
third billion francs monthly. which is
the exact amount Of the record budget
Of 1918 which brought political crisis
But if America entered the strug-
gle to become joint guarantee for Italy
then many worries would disappear,
while questions now embarrassing the
entrance Of Rumania, which can put
10000 men into the field, but whose
terms have so far proved inconvenient
20 the Allies, would be Immediately
solved. The entire financial arrange
ments could be placed on wide, per
manent basis. which would render them
less exigent TO all concerned, and there
would he no question then but that the
Allies would be able TO hold out in
definitely.
America is able 10 do this without
firing shot. All fnanciers here re-
nlize this, although a very strong body
of British opinion is opposed 70 Amer
ica taking part, despite the fact that
their burdens thereby would be light
sned, on the ground that such course
would not merely probably destroy the
entire systerS Of Belgian relief. but
also render the lot of British prisoners
in Germany, already hard despite Am
bsssador Gerard's efforts, absolutely
unendurable."