The Detroit times., 1915-11-05
u. s. Part In Financing
Conflict Is Still
Very Small
EXCHANGE STILL
is UNSETTLED
Need of Capital at
Home Interferes With
World Banking

~ JOHN N. ookIsoN
NEW YORK. Nov. SIN thu
words of the department Of com
msrce. the United States IL "only
ON the fringe Of the world Of inter
national flnance." The part We have
taken. up to the present. In financ
Ing England. France. Italy. the Ar
| gentine, Canada and Switzerland Il
. minor one.
We are experimenting with for
eign loans. As yet We owe vastly
more abroad than 10 owed TO us. bu,
Il win not be for lack OF urging Il
We do not reverse our position be
fore the war is ended. In normal
years. our tourists In Europe spend
as much as we recently advanced
to the governments Of Great Britain
and France. That half-billion loan
shows - . mere drop when set
alongside the census bureaus ng'
ures Of wealth In the United States
In 1912.
Sir George Paish. the British
financial authority best known In
this country. says that the wealth
OF the United Kingdom, In 1914. was
SIS 5,00O, ,000. 900. Our census bureau
said that In 1912 we owned $685.
o00, ZOO. 900 Of wealth; the figure
must now be close to 100000. .o00.-
900. So. for every $500 Of national
wealth we have loaned England and
France 81.
II We are to accept the worlds in
vftation to become It's banker. We
must do better than that: and de-
velopments during the last few days
scum to suggest that the old masters
OF the hnanciai game in London are
plotting to intrigue US.
The average American who could
grasp tho argument for making the
Anglo French loan said, when Its
details were all settled:
Now that's fixed! Exchange
rates win be stabilized; our manu-
facturers and merchants win no
longer have to accept British sov.
ereigns Of uncertain value; trade
With Europe WIN 6ow smoothly. Let
~, therefore. resume our search for
Investments at home"
At the same moment. our rain.
roads came forward with the most
hopeful exhibit Of net earnings since
1900. Business has actually been
better with them. and the ecouo.
mics Of operation which they have
effected IN the last nve years help
sd 10 make . good showing. OF
course. the roads had . purpose
they wanted money for long-delay.
cd ext1Asions and improvements, for
refuhding note issues put out ct op-
cressivs rates. for reasonable guar.
antseo ef THAR flnancial future.
Hut something went wrongi WITH
h ne last 10 days the English
pond lroppd IN value asain-fsom
eASe - el.e1. Tho half.billion loan
he's not stabilized exchange rates.
and now fresh negotiations are on
Locking 70 the sstablishmsnt here Of
further enormous credits for the al.
lie6 nations.
h isn't our bankers Who ars hesi-
tat1ng sbout taking up the role Of
world banker. They know that bet
ter returns can b secured on loans
20 foreign governments Just now
than TO Amsricr- railroads But II
n the average money owner who II
holding back. And his reasons are
plain. "a
We hsvs great wealth. 10 b. sure,
but We have no suoh vast bulk OF
Il IN liquid form - England. FOR IN.
stance. normally has available FOR
investment In any part Of the world
We have great need for capital IN
our 90 states - witness the grow.
ing hunger Of the railroads. Also
the average American II really neu
tral and looks with dispassionats
eye upon the very desperate nature
Of the Allies task.
What seems 70 b In immediate
prospect 10 m extension of banking
credit TO Great Britain, with Eng
Hand sending over the sort OF collat
eral she used to demand OF rs. Blu
II England prefers to keep the col
lateral and force another insecure,
loan she can again use the threa
| Of demoralised exchange conditions
| ~Uncle Sam. World Banker" How
long VIII II be before we get use'