The Birmingham age-herald., 1915-12-03
Has S4,000,OOO,OOO Invested In South America As
 Yet Untouched
DOMESTIC LOANS
 BEING DRAWN UPON
St. Louis Offers S10O, 900 for Demo- cratic Convention Which Would Probably Prove Big Induce
 ment to Republicans
Ry HOLLAND

| New York December 2.-(Special) )-In- cluded in the estimate of the aggregate wealth of Great Britain which was made ! by the chancellor of the exchequer few i days ago, who named $130, 100000 as an ap- proximately correct estimate of that wealth, are undoubtedly the investments
 made by England in South America. Of these investments the American bankers who visited London last spring were in formed. England opened her books for the inspection of these bankers, presum- ably for the purpose of making it clear l that England possesses abundant wealth and resources to meet any conceivable cost which the war may entail
 In the spring, some of those who were 1 in that way informed told their friends in New York soon after their return that, accustomed as they were in their voca- tion as bankers to big figures, neverthe- less those which were put before them l in London were simply staggering.
 good many persons wonder why, if
 England and France possess the resources | which they are reported to possess, they should find it necessary to appeal to the United States for loans and for the estab-
 lshment of credits involving millions.
 But it is not generally understood in this country that England and France are
 not only taking care Of their own needs,
 but are also giving assistance in large amounts to other nations who are of friendly disposition toward the allies. 1 This morning, after there was confirma- | tion of the report that Great Britain has 1 $4,000, GOO invested in South America, the 1 question was put to a man of finance, Why does not England avail herself of some of her investments in foreign lands? l The answer was that it seems to be the policy of England to rely entirely, for the present at least, upon the resources which lie in the securities in which investment has been made for domestic purposes. 1 She is also, as is France relying upon l the income not only from her investments
 in domestic properties, but also the income
 received from investments in foreign | lands and in foreign loans. The time may
 come if the war should be prolonged when
 England may be compelled to turn to the ! securities themselves which represent her 1 investments in other lands. But the opinion here is that it will be a long time before England is driven to that extreme. | The recent loan and the credits which
 have been and are yet to be secured are | regarded as the easiest and most conven- | tent method of means of which England and France, and also Russia may pro- cure the funds for which there is imme- diate need. This need arises from the 1 fact that almost all of the payments on account of purchases in the United States are immediate payments.
 .tI, | CTS from France who is now in the United States for the purpose of looking at the commodities manufactured in this coun- l try to see if they will be available for the upbuilding of French industries spoke l plainly, saying that France hopes that | there will be reciprocal buying, the United States purchasing heavily of French commodities, so that in this way | the payments may be made fairly well to balance
 While France is not now maintaining a highly profitable trade with the United States, nevertheless there have been au- thoritative disclosures which prove that England is receiving from the United States many millions which will to con- siderable extent offset her imports from this country, although it may be by roundabout and indirect methods. For high authority reports that careful in- vestigation discloses that the United States is now paying about $500 100000 in 1 freight charges, the larger part of which 1 goes to Great Britain, for it is paid for I freight which is carried upon vessels car rying the English flag. An estimate rap | idly made fixes the amount we pay to | the Investors in foreign lands who hold American securities at about $50,0O0, 900 a year. This, of course, is guesswork, but it is certain that the amount is very large. If it be approximately correct, Then a tn ha amount we pay for freight and payments ! on account of incidental matters it is pre- sumed that our yearly outgo in excess of I recognized imports that the custom
 houses report is $400,00OOO0. Not much
 money has been expended the past year through travellers letters of credit, and | that Is so much gained, since the esti- | mate commonly made for three or four years prior to 1914 was that American travellers took out of the country and de- posted in various ways in Europe about $200, 100000 a year.
 fairly large figure must therefore be set off against our apparent trade bal | ance. although with this deduction it is
 not improbable that it will amount to N- | 000,000,000 for the year 1915.
 The Convention Cities
 Nathan Frank. at one time a repre- 1 sentative in Congress from one of the
 St. Louis districts, is now in Washington, having been authorized to lay before
 those who are speedily to represent the democratic organization ar a meeting in Washington the pledge of St. Louis that
 that city will contribute $100O0O to meet the expenses which would be entailed
 were the democratic national convention
 Of next spring to be held in that city. Those in New York who had knowledge of the communication Mir. Frank is to
 make to the democratic committee look upon the proposition as a most generous one in view of the fact that the demo- cratic convention of next spring is likely 1 to be mere formality, at least so far l as the nomination for President is con | cerne0. For there is now no doubt that ] President Wilson will be nominated by exclamation. But were the republican na- tional convention to be held at St. Louis a suhscriution of $100.0O0 might be worth Ntile. For it is the common understand ing that at the republican convention is i likely to be somewhat protracted in view | of the fact that the delegates will be in the dark respecting the nominee when they meet Many of the politicians won- der if the republican nominee will not thrcrgh the nomination, justify the col- loquialism, "a dark horse" protract- l ed convention, together with the excite ment occasioned by the alignment of can- dldatcs and the strategy by which at last the successful candidate is named. are of advantage to the city which holds the convention. Some think that St. Louis might be good place for the republican convention in view of the fact that H.