The Appeal. [volume] (Saint Paul, Minn. ;) 1889-19??, 1915-06-05
AID BELC|ANS ON
A BUSINESS BASIS
Elaborate Financial system
Cots the Best Results.
ORGANIZED BY AMERICANS.

UkGANIZEu By AMERICANS.
Commission Will Have Provided Food
stuffs to the Value OF $65,ooo,ooo by
Middle Of Ausust-Profit Made In
Cheap eread-BeIeians Have Done a
/ Lot Of Work Themselves.
London.-The American commission
for relief in Belgium will have provid-
ed foodstufs 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 $5,000,OOO and from
other quarters Of the. world approx
mately the same total. The great bulk
Of the food supplies, representing the
remaining $55,oOO,0OO, 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 Is 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 $780,
100000 before the next harvest. The
rise in the price Of foodstuffs increased
the necessary amount to $65,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
t1Onal bank notes were so scarce that
many communes were printing paper
issues Of their own. 81 Il
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 were turned into gold it
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 meth.
cd for effecting the exchange Of these
local currency obligations into gold.
Negotiations were 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
in 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
it's organization, which has come to be
the lifeblood Of the structure. It has
induced many we'll to do Belgians to
pledge their credit for moneys handed
over to the commission in gold, which
In turn is paid to them in Belgium in
paper. The commission also has ad-
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 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 were 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 up
practically the whole population was
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, al
Of the people still able to pay for theil
food were made self dependent, and
the appeals Of the commission for char
table contributions were reduced tt
those made on behalf Of the absolutely
destitute