The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-07-19
The British War Loan Of 5000, Ooo,-
900 is the Most Remarkable
in the History Of the
World.
TERMS ARE ATTRACTIVE
Our Uncertain Relations With Ger
many Causes Feverishness In
the Stock Market-Peace
Door stiT Open.

!
| NEW YORK, July 1.-THE world is
becoming accustomed to great events
and CORRESPONDENCE great transactions
in financial affairs. The largest f1nan-
cial operation in history has just been
completed. and its effect upon this
market, the only free market of i'm
portance for the time being, proved
full placing Of the $4,000 900, 900 ~
per cent British loan will go down in
to history as the most remarkable
financial achievement on record. The
previous British loan was $1,750,000.-
900, making total of S4.750, 100000
since the war began. During III.
same period Germany has issued
loans amounting to $3,500.C00,00o.
The total amount Of loans issued by
all the allies Is estimated at 100000
100000, while the total issued 10y all
belligerents Is placed at about &c.,
000,000000. These are figures almost
beyond human comprehension. Con.
sidering size and circumstances, the
British loan was subscribed with re,
markable promptness, much more
promptly than has been the expert.
ence Of other nations.
g. '. lille the terms were attractive.
the net results show that in the neu-
trail markets British credit is on "
per cent basis, compared with Ger
many's credit on per cent basis.
AS to how long the belligerents can
stand such terrific financial strai l.,
no safe predictions can be made.
D,1yp, 10
trent, but the facts are difficult to OBJ
tain. So far as British credit is con-
|cerned, it has suffered least impair-
lpairment Great Britain is not only
financing her own war, but also to $.
large extent that OF her allies. Her
resources are enormous, and up TO
date have proved quite equal to the
lstupendous strain. On account Of her
position in the worlds affairs, Brit
/, Iain's financial abilities are Of gu
preme interest. No suitable compari-
son is possible. except that Of the
Napoleonic wars century ago. Since
then Great Britain's population has
Itrebled, while her wealth has increas-
ed ten fold, and It is estimated this
war will cost about 5 per cent of her
total wealth compared with nearly one
third during the Napoleonic war
Great Britain has enormous invest
ments abroad, estimated at 100000
100000, which provide her with \
handsome revenue. To this must be
ADDED the profits upon her foreign
commerce, the largest in the world;
upon her shipping, representing near
" onehalf the worlds tonnage; and
upon her domestic industries, all OF
which are highly developed. If 1t be
I 7 NyyI
success in this war would ultimately
depend upon financial resources, tho
outlook for Germany is anything but
encouraging.
The effect of the British loan upon
this market was strikingly small. AS
soon as its completion was announced,
security prices here began to rally,
showing that the decline of the two
previous weeks had been mainly due
to preparations for this loan. 1t is
estimated that foreign sales on this
account did not aggregate more than
500 OOO, 900 at the outside, which
would make the total return of our
securities since the opening of the
stock exchange less than $500, 900, 900.
II we include the selling which begin
when war became imminent, 1t is safe
to say that the total return Of Amer
tican securities on this account during
the last twelve months has been uu-
der s500,O00,O00; an amount easily
absorbed by gradual liquidation, but
which would have been tremendously
| exceeded if the exchanges had not
| been closed to prevent panic. The un,
willingness Of wealthy holders on tho
| other side to part with their Ameri-
can investments is exceedingly pro-
nounced and there is no doubt that
considerable proportion Of the secur-
titles which have been sent to this
side are held here for safe keeping,
or as collateral against foreign loans.
The foreign exchange situation
promises to gradually right itself.
Both our import and export trades ara
still badly deranged. Imports Of lux.
uries and many necessities are nee.
essarily curtailed through lack OF
production abroad: while many of our
staple exports have been seriously IT.
terrupted, not only with 1.-The belliger-
ents, but also with neutral countries
whose purchasing abilities have been
;lessened by the war. The excess of
exports, however, continues because
of the outward movement OF food
stuffs and munitions Of war. Orders
for munitions received months ago
are now being filed. and within the
next few weeks there will be a much
larger outward movement, accompal'-
led also by shipments on account of
the new crops 1t is quite certain that
the next six months will witness ar
other heavy excess of exports; pos
sibly as large If not larger than dur-
ing the first six months Of the current
year. This means a further expansion
of foreign obligations on this side
international bookkeeping accounts
have become much deranged, but 4
solution Of the problem through nat
ural means is now in sight. Britain's
orodif stands high in spite of the