Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1915-09-09
B. g. Forbes, the Great Finan.
cial Expert, Says They May
Accomplish This By Tax
ing American Securi.
ties Held in Those
> Countries

DcSuu 10 uuduClduS.
The United States Is to be calles,
upon to do some buttressing.
But the credit of even the strcng-
est European nations has been SO
over strained that no issue Of for,
eign government bonds, 1 understand
Will now be accepted here.
I learn from the highest sources
that Great Britain will not be able to
borrow here except on the pledge OF
American securities as collateral
/ am told however that hundreds
OF millions Of dollars, can be had from
the leading financial interests here
as soon as arrange ments can be com
pleted for jdepos lting the necessary
American bonds and stocks.
England and }Irance still own prcb
ably upward Of s2OOOOO0,OOO Of Am
erican securit es.
But the ha! .ders, knowing that these
investments are today the best in the
world, are not willing to sell.
The prof lem which the British and
also perh' aps the French government,
must. sol We is:
HOW can the owners Of these Amer.
ican - ,curities be induced either to
sell t. lem outright or lend them to
the T government
Money VIII Be Modified.
This subject Is exercising study
nd should have done so long before
iow.
! The heavyweight flnanciers who are
- comm. from England and France to
New York in week or two will con-
slider the whole International f1nan-
cial situation.
The best opinion here Is that the
allies will find themselves compell-
ed to mobolize their financial re-
sources just as they have modified
their munition manufacturing re-
sources,
Munitions have been mobolized.
Money will he mobolized, first PROB
ably, by a tax on American securities
held in these countries.
IF looks, after all, as II gold, not
steel, will. decide the duration anu
the result Of the war.
Paul NJ. Warburg, discussing Euro
mean finances with me several months
ago, said:
It is the last s5OO,Ooo,OOo that will
tell"
Every belligerent is approaching
the stage Of forced loans, but whetil'
or such desperate action will be taken
depends upon the length Of the strus-
gle.
As a preliminary and perhaps as
substitute. it is expected by interest
ed fnanciers here that England and
France will seek to corral hundreds
of millions of American bonds and
stocks by imposing a prohibitive tax
on all holders who do not either lend
them to the government or market
them.
Urgent Action Needed.
II would not aStonish insiders II
gigantic amounts were raised here by
the allies OH American securities
The need for action daily becomes
more urgent.
John Bull, however, moves Slowly
He is floundering as badly over tinan'
cial problems US he did over munition
problems. But when he does act he
is expected tn act drastically.
Sterling exchange again fell to a
new low price yesterday. A pound in
London could he bought In this cOun
try yesterday for S4.6O The normal
worth of pound sterling Is fully
S4.S81-2.
English currency, in other weeks
has deprecated, as compared with
American money. ) percent. thus
gravely injuring 1t as the standard
money for carrying on international
commerce.
Today the American dollar is stan
dard.
Everybody prefers Amberican secur-
tiles and American dollars, as these
are today the most valuable and the
most dependable.
America has become general pro-
WIDER for the world at large.
Two Billion Export Year.
Therefore, the world wants dollars
to meet the bills run up here.