The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1915-05-27

III IOOuSluuS 10 TIC fdlue VI hbDHl pbOf
100000 for the Belgian people by the
OF August. Charitable contri-
buttons from America will have
amounted to about 100000 and from
other quarters of the world approx
mately the same total. The great bulk
of the food supplies, representing the
remaining $55,oo0,000, is being provid-
ed indirectly by the Belgian people
themselves.
This is made possible by the elab-
crate financial machinery set up 10y the
commission, enabling the Belgians to
utilize their W energies and re-
sources. Fully rs per cen 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, 1t was est
mated that the total imports required
to keep the population of Belgium alive
would amount In value to about $780,
000,000 before the next harvest. The
rise In the price of foodstuffs increased
the necessary amount to $65,O00,0O0.
The greatest problem in this connec-
ton was involved In the fact that food
stuffs sold I'm Belgium to those who
still had were paid for in
paper. The entire metallic currency
disappeared early In the war, and ma
tional bank notes were SO scarce that
many communes were printing paper
issues Of their own.
This paper money had no value out
side Of Belgium, and in any event TO
have exported 1t would have denuded
the country of currency. But unless
this money were turned into gold 1t
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 a 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 a 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 u of paper money which
1t received from the sale of foodstuffs
The belligerent nations agreed to this
after long negotiations, and there was
thus set up a 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 o.
its organization, which has come to b.
the lifeblood of the structure. 1t ha'
induced many well to do Belgians t
pledge their credit for moneys handed
over to the commission in gold, which
In turn Is paid to them in Belgium II
paper. The commission also has ad
vanced money to the communal gov
ernments, taking their obligation
therefor, and by pledging these obliga
tions abroad has obtained further re
sources. The communes have been en-
abled In this manner to procure none.
to pay communal officers, to maintain
the schools and keep up municipa
works, thus enabling the Belgians +
carry on the details of civil govern
ment and saving the country from tn
danger of anarchic conditions.
One phase of these operations aros
In connection with a number of Be
gian concerns, which, while they ha'
abroad, had exhausted thei
local In payment of work
men or In disbursements to depositors
A form of hardship had grown u
through the inability of such concern
to make good their obligations to tn
public, and persons who had believe
themselves well to do were being fore
ed to the bread lines through inabilit
to draw money due them.
Through the operations OF the con
mission these concerns were enable
to hand oyer In London and Ne
York funds they possessed abroad, an
the commission I'm turn delivered p'
per money received from the sale
food. Thus the cycle of credit was r.
established, and many thousands
persons were saved from the brea
line.
Before this machinery was set I
practically the whole population ws
? dependent on the worlds charity, p
per money being Of no avail. TT
initial appeals OF the commissio
therefore, were made on behalf of Il
100000 of people. With the succe'
Of these financial efforts, however, q
Of the people still able to pay for the
food were made self dependent, al
the appeals Of the commission for cha
table contributions were reduced
those made on behalf Of the absolute
destitute.
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