The sun., 1915-10-18
WHAT BIG FOREIGN LOAN
MEANS TO u.s.. EXPLAINED
Joseph H. Choate and Thirteen Other Sgners Tell Of
Necessity for Extending Credit to. Maintain Trade
Money to Remain in This Country.

Joseph II. Choate has made public
the appended statement explaining
what. in the opinion of himself and
thirteen others who signed the docu-
mcnt. tho Anglo French loan means to
the United States.
The statement sets forth that the
security Is absolute and that the United
states is lending Great Britain and
France s50o,00o.0O0 &c those countries
may purchase from us things that we
want to sell to them. The loan means
that not one dollar of the money will
leave Uncle Sans shores: that some
Americans. directly or indirectly. will
come into possession Of tnc money in
cash payment for goods sold. that u
commercial credit will he established
IN this country which will he used in
increasing our trade and permit the
outflow Of our surplus products. and
that this country finally recognizes that
in order TO further American trade II
must become IA creditor nation.
Those who signed the statement were
Daniel Catlin, 81. Louis Joseph II.
Choate. New York charles W. Eliot.
Cambridge. Mass. Howard Elliott. Bos-
ton: Fairfax Harrison. Washington. ID.
C.. Henry l.. Higginson. Boston; James
j. hin. ~. Paul. MINI. II. Il. Ledyard.
Detroit: Robert 7. Lincoln, WasHing-
ton. d. c.. Franklin u. Locke. Bufralo ;
Seth Low, New York Il. T.. Ripley,
Chicago; Theodore y. Vail Lyndonvilc
VT; Henry Walters. Baltimore.
Text of statement.
The statement In fun is as follows:
This country has not been aCcus-
toned to extend credits. upon a large
scale. to foreign countries and many
people do no; understand what such
credits mean to the maintenance and
extension OF our agricultural and COM
mercial 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 Amer
ican people our understanding of the
plain facts in connection with the loan
OF S50o,0o0,o 900 to Great Britain and
France.
During normal times Great Britain
and France purchase from MS. every
year. about s75V.0O0,000 in farm
products and other commodities. and
we b,ly heavily from them. fdiuarly
the payments by one country to the
other are accomplished without the
shipment of coin. the Indebtedness of
one country going 10 offset that of the
other and the difference. usually con-
stituting \ small balance. is covered
by gold shipments or otherwise.
Now owing to the war. our pur-
chases from Great Britain and France,
our two chief customers have fallen
off. and their purchases from us
have increased enormously. Thus. the
total trade balance in our favor tor
the year ended last June was over one
billion dollars: OF which S9i7,00O.0oo.
or over So per cent. was represented
l,.ln .af nsf th.c.a
two countries 1t is clearly impossible
for these countries to continu. to meet
these heavy balances through the ordi-
nary channels OF Internal ionai en-
change. Such heavy shipments of gold
as would be required, for instance. are
not only difficult. but in these days
unwise to undertake. Moreover. this
country already holds a stock of gold
larger than it's immediate uses re-
Qulre.
Money TO Remain Here.
| America must. therefore. find "A so-
luton of tie problem of financing for
! a time this favorable trade movement.
or else run tine risk ot losing a large
part OF its export business for the
United States appears 10 NE Icy no
/ means the only country in the world
where Great Britain and France can
buy, on favorable terms, the grain
/ and other commodities they reauir".
' Ir these two great nations are Obliged
/ materially to decrease their purchases
/ from us. the result may he lower prices
! for our farm products, and less work
for our factories
/ In other words. II VIC want these
, countries to continue as olr best Gus
! toners and thus To bring increasing
substance to our communities, "" must
81 l.Rs no Sts-tt IN
3 OF deferred payments for the COM
I inodiiics they buy from us.