The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1915-06-02
AID BELGlAIlS ON
A BUSINESS BASIS
Elaborate Financial System
Gets the Best Results.
ORGANIZED BY AMERICANS.

stuffs to the Value OF $65000,000 BY
Middle Of August-Profit Made In
Cheap Bread-Belsians Have Done
Lot Of Work Themselves.
London.-The American commission
for relief in Belgium will have provld-
ed foodstuffs to the value of about $685.
100000 for the Belgian people by the
middle of August. Charitable contri-
buttons from America will have
amounted to about s5,OOO,00O and from
other quarters of the world approx
mately the same total The great bulk
of the food supplies. representing the
remaining S55OOO,O00, is being provid-
ed Indirectly by the Belgian people
themselves.
This Is made possible by the elab-
crate financial machinery set up by the
commission, enabling the Belgians to
utilize their own energies and re-
sources. Fully as per cent of the Bel
gian people are being supplied with
food by the commission without re-
course to charity. One result of the
commissions operations is that bread
is now cheaper in Belgium than in
London.
When the commission was formed
last October. under the craftsmanship
of Herbert Clark Hoover. it was esti-
mated that the total imports required
to keep the population of Belgium alive
would amount in value to about SJ0,-
100000 before the next harvest. The
rise in the price of foodstuifs increased
the necessary amount to SGJ.OOO,OOO.
The greatest problem in this connec-
ton was involved in the fact that food
stuffs sold in Belgium to those who
still had resources were paid for in
paper. The entire metallic currency
disappeared early in the war. and ma
tional bank notes were so scarce that
issues of their own.
This paper money had no value out
side of Belgium, and in any event to
have exported it would have denuded
the country of currency. But unless
this money We're turned into gold 1t
would be necessary for the commits
sion to find in the outside world an
amount of money which was out of
the question. At the outset. therefore,
the commission began to devise Il meth
cd for effecting the exchange of these
local currency obligations into gold.
Negotiations We're opened with the
belligerent governments for permission
to set up form of exchange whereby
persons or institutions abroad owing
money in Belgium should turn over to
the commission the amount due in
sterling or dollars. The commission
undertook to pay their debts for them
i'm Belgium out of paper money which
it received from the sale of foodstuffs.
The belligerent nations agreed to this
after long negotiations. and there was
thus set up form of exchange. The
commission is today the only institu-
ton which is doing a systematic bank
/ ing business across enemy lines.
! BY degrees the commission has ex-
/ tended this exchange department of
its organization, which has come to be
, the lifeblood of the structure. 1t has
induced many well to do Belgians to
pledge their credit for moneys handed
over to the commission in gold, which
Z in turn is paid to them in Belgium In
! paper. The commission also has adj
vanced money to the communal gov
ernments, taking their obligations
therefor, and by pledging these obliga-
| lions abroad has obtained further re-
sources. The communes have been en-
| abled In this manner to procure money
! to pay communal officers, to maintain
the schools and keep up municipal
works, thus enabling the Belgians to
carry on the details Of civil govern
ment and saving the country from the
danger of anarchic conditions.
One phase of these operations arose
In connection with a number of Bel
gian concerns, which, while they had
resources abroad, had exhausted their
local resources In payment Of work
men or In disbursements to depositOrs'
A form of hardship had grown up
through the inability of such concerns
to make good their obligations to the
public. and persons who had believed
themselves well to do were being fore
ed to the bread lines through inability
to draw money due them.
Through the operations Of the com
mission these concerns We're enabled
to hand over In London and New
York funds they possessed abroad, and
the commission in turn delivered pa
per money received from the sale OF
food. Thus the cycle of credit was re
established, and many thousands OF
persons were saved from the bread
line.
Before this machinery was set uI
practically the whole population wal
dependent on the worlds charity, pa
per money being of no avail. The
initial appeals Of the commission
therefore, were made on behalf of the
100000 of people. With the success
Of these financial efforts however. nj