New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-21

pathies in this war and differing inan-
cial ideas approve heartily of this loan,
as they appreciate the reasons why we
should make II. On it's face. it is a
grant of credit 10 Europe. In reality
it is a new use, compelled by circum-
stances, of the cash and credit of this
country to avert disaster from our
most important industries and to pro-
mote our own prosperity. It's greatest
benefits are to come to the people of
the United States.
Cites Wheat as an Example.
Take the case of our wheat as an
example. Reliable estimates of the
wheat crop of the world and of the
probable demand show that England
will require about 100000, 900 bushels
for next year, France S5,000000. and
Italy 100000, total of 100000, 600
bushels. The common assumption that
they must come to US Tor this on our
own terms betrays ignorance of the
situation. The same estimates show
that Canada Will have q surplus for
sale this season OF 10000, 900 bushels,
Argentina 100000 900. Australia co.
100000 and india 100000 or a total
of Ala 100000 bushels. Their demand
could be satisfied without taking a
bushcl from us.
Exports are paid for on the basis of
the pound sterling. With Canada, Aus
tralia and India, London exchange is
at par. A pound will buy its face value
of wheat. But when exchange went re-
Gently to $3.50 for the pound that
meant a difference of over nine cents
a bushel II it should go to 81, as it
might if nothing is done to stabilize
exchange, it would mean about 20 cents
a bushel on wheat. Either the Euro
pean buyer would have to pay that
much more in our market by the de-
probation of exchange or our farmers
would have to take that much less.
Since Europe has opened the other
sources of supply mentioned it is not
difficult TO see that we should be left
with our crop on our hands.
Would BE Disaster to Farmers.
Eve require about 55O,OOO,000 bush
els for home consumption and seed.
That would leave US a surplus of nearly
$4,000, 600 bushels. The total worlds
demand outside of England, France and
Germany is not to exceed l50,000,00O
bushels. If it was all bought here, we
should still have to carry over 100000
600 bushels. Add that amount TO next
year's surplus, and even if we cut our
wheat production in two it would re-
quire two or three years to work off
the surplus.
Meantime, such a condition would
mean ruin to this country. The price
of this unstable surplus would FIX
the price of the whole crop. Wheat
would be sold below the cost of produc-
ton, and our farm interest be involved
in disaster from which it could not re-
cover for many years.
"And precisely the same is true in
different degrees of our cotton, meat
products and provisions generally.
Zone who looks only at the plain
facts will see that the grant of this
credit for the purpose stated is lar less
an accommodation TO the countries thar
ask il than an act of necessity for
the United States. 1t is part Of the
most familiar business policy. When
a merchant who has been buying for
years for cash finds it necessary to ask
for line of credit, ii is granted glad
ly. This Is done not as personal
favor, but as a matter of sound bust
ness policy. II it were not, mercantile
business would pass through per-
petual crisis.
Money Will Stay Here.
at is hard to understand the people
who talk about taking money out Of
the country 1t is of the essence of
the plan that money shall stay in this
country. The goods will go out; the
money will stay here and be used 70
pay for the goods in the localities
where they were bought and where the
money already is, and the only money
that moves at all will come this way
in the payment Of interest and the
eventual repayment Of principal.
"The loan cannot encroaeh upon our
neutrality in either fact or feeling. In
deed, some of the great German fnan-
cial houses in this country are in favor
of il, since they understand its terms
and purposes. There are millions OF
persons OF German stock on the farms
- 49,. .ountry ap1 avary opa will