The Washington herald., 1915-08-31
Treasure Coming from Abroad.

One interesting and important phase of the
world war is graphically illustrated by the arrival
in New York of another shipment from England
of gold and securities valued at $45ooo.ooo. in
creasing the total consignments coming, to what
is now the worlds financial capital by way of
Canada since the war began to sum estimated at
$I72, 100000 In the early days of the great con-
hict American hnanciers found it necessary to
send to Canada $ooooo,ooo in gold in order to
maintain credit abroad and facilitate the transac-
ton of business with the nations that were our
heavy creditors and that had need of their out
standing assets for the purchase of supplies.
In the first year of war, however, the score has
been changed tremendously in favor. The
gold which was sent to Canada is back in our
vaults and a great deal more that was in posses
sion of the warning countries year ago; our
financial markets have assimilatcd large guam
titles of American securities and are prepared to
take more. .. ..- -..
With the English pound sterling now calling
for but $4.62 in United States money, some 23
cents to the pound below parity and the lowest
rate of exchange ever recorded, Great Britain has
set about rebuilding her credit upon which she
has made such enormous demands in the past by
war purchases 1t was her purchases, of course,
which were chiefly responsible for changing in a
States into one of billion dollars in its favor.
But England intends to- buy more. Huge ship
ments of gold and securities furnish the most con-
vincing proof of her ability to pay for what she
gets, and these are to be followed by visits to
New York of British and French hnanciers for
the purpose doubt of arranging for the dis
position of the securities and the details of the
new credit.
The exchange rate was not affected by the
latest shipment of gold and securities, news OF
which had doubtless been discounted. With all
Europe at war the dollar is king, and so long as
the financial advantage remains SO pronouncedly
with the United States that advantage will be
accurately reflected in low quotations for ex-
change. 1t is vitality important to Great Britain
to maintain her credit in the United States. and
in doing so she is giving remarkable illustra-
ton of her wonderful resources and ability quickly
to draw upon them in prosecuting the financial
campaign that many persons believe will in the
end determine the course of the war. 1t is i'm
portant to American industries, too, that the pur
chasing power of the nations which control the
seas shall be maintained so that in those markets
our surplus products may be proftably disposed
of, especially in view of the fact that in recent
years enterprise and expansion have Jagged in the
United States and the purchasing power of the
American people has been eurtaed.
So long as the continues Great Britain
and France must buy heavily of the United States
and as yet there is no indication of decline in
their ability in this respect American securities
are still held in large quantities abroad and
these markets are now prepared to absorb in
any reasonable amount that may be offered,
without disturbance, because they will ultimately
be paid for in the surplus products of our facto-
ries and fields. The drain upon the allies treas
uries is heavy but there is sign of approaching
exhaustion of their credit in this country, and
share in the war must for some time continue to
be the reaping of the profits.