New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-25
Washington crossing the rally this country
UNSAFE INVESTMENT
Allied Loan Also Unnecessary from
American Viewpoint.
To .bc Editor Of The Tribune.

To the Editor Of The Tribune.
Sir: I read with establishment your edi-
.orial in to-day's issue, "The Allied Credit
Necessity" and cannot understand that the
New York Tribune, usually sound on hnanela'
matters. should De in favor Of loan 20 the
Allies Of one thousand million dollars
According TO the latest estimates there are
still held in England and France approx.
imatelv three thousand million dollars Of
American securities. Why is II that the Eng
lish investors will not part with these ana
invest their money in English government
bonds. which would bring them from TO II
per cent more income than their American
securities earn? The reason is that 'he''
American securities are the only investments
Of undoubted soundness they hold ana lne'
are loath 10 part with them. why lneH'
should the American public buy these EAs'
lish government securities as an lhVesIinen'
IL the same securities, plus patriotism are
not good enough for the English investors.
Let the English government put spees'
tax of per cent on American securities
owned in England, and within month We
would be exporting large quantities Of gov
to straighten out the balances against U.s.
To say that England would stop buying
supplies here is simply case Of BLUM "n"
other country is equipped TO furnish war sup
niles. which are a matter of life and cean
TO England? Where else can they buy taen
cotton? As far as wheat IS concerned ''s'
now give the preference to their eo'On',.'
Canada. India and Australia. They mlsa'
also buy some wheat in the Argenllhe ~
public. but certainly not on credit as Wv
minimum rate Of interest there IS az pre'eN'
about 70 per cent Do you think for a ME
ute that IL the Dardanelles were forced Eng
land would buy even a single busnei OF "n'-,
in this country, as long as there was p0'"'
for export left in Russia?
1t is simply sophistry to say that S0VV'v'y
eco borrowed in this country and spent n','
i, not the same as a loan of S5OO'OOV'oVV e''.
Does this not make $5O0,000,OOO aVAilsOe
England. 70 spend wherever she pesssy
which otherwise would have TO be sent WV
here to pay for suppliesg ,,s
The war has lasted now over one year 80
in this time the rate of interest "h'." -.
English government is forced 70 pay
doubled. The war is surely going to isN
other year and the estimated expenses ~.
the English government for this year
SO. 600 900 900. To estimate the interest "a. -.
year from now at per cent IS conscs'~"s
as is also the price of IS per cent lo' tam
per cent allied government bond = year '''
now g.. this
The bankers who are trying 70 h0Aa
thousand million dollar loan WIZ ".;Illou
commission OF at least twenty-five M, n.,,
dollars and they are certainly not the On,
who will hold the bonds when the ine'''A''
decline comes. II. uho
II the manufacturers of war ms'eris sns,.h
make enormous profits, want 70 taEe - n.
bonds in payment, let them do So ou. mar.
wife the American investing public 70 a
ticipate in this loan is little sny
criminal. EhNh'i
New York, Sept II, 1918.