Evening star., 1915-09-19
Marketing of Immense Crops
Depends on Stabi|izing
of Exchange.
INVESTORS OF u. S. ABLE
TO CARE FOR A BILLION
Cousins Writes of Chances of Retain.
ing Trade Gained Through
the War.

in it's history has the Cnlted Sta'eS
commanded the position of hnanclai
pre-eminence among the nations OF the
world as that which is accorded this
country today. Certainly the nnanclal
commission representing Great Britain
and France, which is now eagerly
seeking to enlist our financial re-
sources for the furtherance of trade
relationships between America anu
Europe, is unique experience ana
marks a very important epoch in Amer
lean financial history. Though IL IS
too early to comment in full upon the
plans to be presented by the European
financiers, it is now evident that their
sole purpose in making this visit is to
arrange for loan estimated at from
one-haf billion to one billion dollars.
This being the case, it is important TO
consider a few fundamental facts, en-
tirely from the American standpoint.
In the first place, it should be re-
membered that this commission is not
an official governmental organ. put
merely a representative of the banking
and commercial interests of the coun-
tries from which they come. Further
more, their dealings in this country
are not with our government, but with
the representatives of private capltal,
trade and industry. In this capacity
they are therefore at liberty to make
such terms as they may, and those who
grant concessions or guarantee trans
actions must do SO at their own risk.
Further. the whole subject should be
treated in the light of its benefit to
American trade and commerce and not
as an aid to belligerent nation. 1t
should therefore be stipulated that
whatever loans or advances are made
to the foreign representatives must be
in the nature OF commercial credits.
,tTI IL n he
tries to secure our goods: but. more
important from our standpoint, will en-
able American business to secure pay
ment for these goods. This will auto
matically solve the foreign exchange
problem, because it will provide the
facilities for financing the ever-increas-
ing commodity export trade, leaving
only the munitions to be paid for with
British gold.
Views of J. ]. Hill.
This has been the strong point ad
vanced by such leaders of American
industry as James ]. Hill While in
New York this week Mr. Hill made the
following significant comment: "The
maintenance of a stable rate of for
eign exchange, which can be done only
by the establishment in this country of
very large credit account for Great Brit
ain, to be drawn against for the pur-
chase of foodstuffs, is of far more i'm
portance to the United States than to
England. 1t is not too much to say
that on this the prosperity of the
American farmer depends. A careful
estimate shows that the total require
ments of the continent of Europe for
the coming year will be about 550,000,-
900 bushels of wheat. The United
States will have not less than 375,000.-
900 to sell of it's big crop. The supply
of Canada for export will be fully 115,-
bushels Argentine
100, ,000, 900. The lowest estimate of the
total marketable supply from this con-
tinent. therefore. will be 6o0,OOO,O00
bushels, or 100000 bushels in excess
of the total demand.
These conditions. growing out of
facts that are not subject to change,
show that the problems growing out of
International exchange concern the
United States as intimately as they do
the nations that are at var. 1t is most
essential to the prosperity of our peo-
pie that our wheat should get to mar
ket and find purchaser. And if the
sale of our wheat does not go forward
steadily to the purchaser, the latter
will certainly turn elsewhere: especially
If a more favorable rate of exchange
gives him greater advantage IN an
other market than ours.
"A credit of half billion dollars Sc
cured by English consols and French
rentes should be arranged for in New
York city American securities cannot
be exacted, both because the amount of
them held abroad is not unlimited, and
because they are in the hands of pri-
vate owners. The big job of feeding
the world must be backed by the credit
of the world; and the circumstances s
are surer that we cannot exact unrea-
sonable terms or refuse to do our share
of making the transaction possible
without sacrificing at least large por-
tion of our market and forcing prices
down to point that Will mean dis
tress instead of prosperity to our asrf-
cultural interest.