The Washington herald., 1915-10-03

Inc current issue OF the monthly
bulletin of the National City Bank of
New York is devoted to the Anglo
French loan. showing clearly the great
| importance of the transaction to the
! commercial and Industrial interests of
this country.
! Opposition on the ground that the
banking situation will be seriously
weakened by subscriptions to the loan
is not worthy of serious comment"
says this bulletin.
1T is evident that this country has
another and different interest in this
loan from that of lender. 1t Is in
terested as country with $2.7Oo.-
100000 worth of goods to sell abroad
in providing the credits by which the
balances may be settled and by which
Il stable basis for the entire trace
may be maintained.
Zone Sided Trade.''
1t is held by some people that our
trade will go on somehow because. as
they say. the purchases must be made.
But one sided trade cannot go on
without the help of credit.
The Importance of the situation
naturally is more readily comprehend
ed in those sections of the country
which are directly interested in the
export trade, but it is needless to say
that whatever concerns their prosper
ity is of moment to the entire coun-
try. large credit can only be pro-
vided by the participa ton of all sec
tions''
Discussing the security of the loan
the bank SAYS: IF they were not en-
gagged in a great war nobody would
raise any question about the credit of
Great Britain or France. but the in
crease of Indebtedness on account Of
the war looks very formidable. The
war waste is bad enough as ii is, but
1t is made to appear much worse by
the loose calculations which are cur
rent.
The real backset chargeable to
the war will be measured by the value
of the property which was in exist
'ence at the beginning Of the war and
has been destroyed and the loss of
life and limb. There is great waste
OF current production. but aside from
failure to make good wear and tear
this does not make the world worse
off than 1t was before: il signifies
present privation or failure to make
progress. The payment of the debts
will not involve n second destruction
of wealth: destruction ends with the
war.
Expenses Out of Taxation.
THE British government has taken
step which carries it beyond any
other in providing for the expenses of
the war out of taxation. The first in
creascs were made last fall, when the
taxes upon incomes of the highest
class were raised to 25 per cent and
taxes were raised upon tea and beer
Ii has been known that a new sched-
ule of both internal and customs
duties was in preparation and it was
submitted to Parliament a few days
ago by the Chancellor of the Ex-
chequer
The rate upon the highest class of
incomes is raised to "a per cent. and
the limit of exemption for incomes is
lowered from $500 to $3.50
The total revenues of the British
government for the next full fiscal
year. "n the basis of the budget now
proposed, are estimated by the Chan
cellOr of the ExChequer at about
81 ,935. 0O0. 600. at which the increase
over the revenues of the fiscal year
1913-l914 would he about $3.50. 900. 900.
AT this rate the war taxes would
carry $4,000, 900 600 Of new indebted
ness at per cent The Chancellor of
the Exchequer estimates that the total
British debt March 81. 1915. will be
s11 900 600. 900. of which $500. 600 900
will be new debt since the war began.
After March 81 next. therefore. these
revenues Will he sufficient. at the
Chancellor's estimate. to pay the in
terest on 800. 900. 600 of additional
debt at ; per cent.
Foreign Investments Great.
The foreign investments cf the
British people are larger than those
of any other people. and scattered all
over the world. At this time ii is prac-
tically impossible for them to realize
upon any of these except those in the
United States. They are. however. a
source of large income.