Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-10-20
CLEWS Comment
ON ALLEDL0AN
IS ENCOURAGING

Henry Clews, the New York banker
thus comments on the half-billion dol
lar loan negotiated in the United
States by the Allies
Placing OF the Allies loan Of $500
900 900 in New York must be regarded
as the greatest transaction and the
greatest success in financial history
For the time being it gives New York
unqualified primacy in the worlds mo,
ney market; and. though London will
undoubtedly regain its leadership after
the war the importance OF New York
as a financial center has been perma-
nently advanced TO a close second {:
the strer|th and position OF Euro
pean financial centers having mean
time been Correspondingly diminish
ed. Henceforth London and New
York will be the controlling factors in
the worlds money markets. Should
they ever choose to work together, as
in the present instance, they will prove
irresistible More likely, however, they
will prove keen though friendly rivals
in the coming struggle for the world 8
markets; for without support OF the
bankers, our merchants and manufac.
turers cannot secure the coveted
trade, after which the United States
as we'll as the United Kingdom is
going in search with all its power
and capabilities.
The most important immediate ef-
feet OF the loan was very positive
relief in the sterling exchange situa-
ton, which had reached a stage that
was rapidly making. international trad
ing impossible Now that exchange
is nearer normal conditions, the cur
rents OF foreign trade should run with
more smoothness. The season is open.
ing when the food-tide Of exports be-
gins. Shipments of grain, cotton and
other natural products will continue to
run on a heavy scale for several
months to come. Europe needs our
big surplus; and fortunately we have
plenty to spare. Indeed We must sell.
for If our farmers do not find a good
market for this surplus, the result
here would be disaster and discomfort.
This, loan is, therefore, quite as much
a benefit to ourselves as to the Allies.
Our exports are also being stimulated
as every one knows by heavy ship.
ments, OF war materials; so that in
view of continued small imports the
outlook is for a continued huge ex.
cess of,export3 running at the rate OF
about 500 ZOO. 900 to $150,000,000 per
month. Some experts already calcu'
late that il the war continues, the sur.
plus when the fiscal year ends will
have reached anywhere from $780,
000, 900 to $500, 900, 900. Continued
small imports due to Europe's limited
ability to sell, are a problem that time
alone will solve. Our customs revenue
is, being sharply reduced, and the
treasury deficit is growing, with in;
creasing expenditures for prepared.
ness" ahead. Some new form of taxa,
ton will be inevitable. Very little ad;
ditional can be raised from the tariff
for the reason that an advance in
duties would, still further restrict inn
ports, and tend to diminish rather
than increase customs revenue. The
sugar duties which now provide $780,
O00, 900 of revenue ought to be retain.
ed; because If cut off the consumer
would probably not receive any of the
Small duties on tea and
coffee would bring considerable rev.
enue and would also be but slightly
felt by the consumer, if at all Very
revenue could be deriy.
ed from stamp taxes. one OF the most
and least Objectionable forms
Of: taxation, Present war stamp taxes
will possibly hesretained."