The Bridgeport evening farmer., 1915-10-19
ANGLO-FRENCH LOAN.


 A statement in : regard to the $500. 900 Anglo-French loan has been issued by a number of eminent American citizens, setting forth their convictions that the loan is not only sound investment, but essentially beneficial to the commercial welfare of the United States.
 The statement foIIows:
 This country has not been accus- toned to eUtend credits, upon a large scale, to foreign countries, and many people do not understand what such credits mean to the maintenance and commercial interests. Each one of us who signs this statement has been asked so many times toh express his opinion on the subject that we have. decided, in this way. to place before the American people our understand ing of the plain facts in connection with the loan of $500, 1000 to Great Britain and France
 During normal ines, Great Britain and France purchase from us, every year, about $75O, O,O0o.OOO in farm pro- ducts and other commodities, and we buy heavily from, them. Ordinarily the payments by one country % the other are accomplished without the shipment of coin, the indebtedness of one country going to offset that of the
 
 constituting a small baIance. fs4 COW cred by gold shipments otherwise.
 Now owing to the war, our pur- enaSess from Great Britain and France eour two chief customers) have fallen off, and their purchases from us have increased enormously. Thus, the total trade balance in our favor for the year ended last June was over one billion dollars; of which $947, 900. .000 or over S6 per cent, was represented Al. ~ two countries It is clearly impossi- b1e for these countries to continue to meet these heavy balances through The ordinary channels of international excf1anse. Such heavy shipments of gold as would be required, for in stance, are not only difficult. but in these days unwise to undertakes Moreover, this country already holds d stock of gold larger than its imme- diate uses require
 America must, therefore. find a so- luton of the problem of financing for a time this favorable trade move 1tnent; orsselse run the risk of losing a large part of its export business; for the United States appears to be by no means the only country in the world where Great Britain and France cAn buy, on favorable terms. the grain. and other commodities they require. If these two great nations are obliged materially to decrease their purchases from us, the result may be lower prices for our farm products and less work for our factories.
 In other words, if we want these countries to continue as our best cus- toners and thus to bring increasing substance to our communities, we must allow them to settle by some system of deferred payments for the Commodities they buy from us.
 This loan therefore which, in total amount, is only two-thirds Of these nations normal purchases from us each year, is simply a system of de- ferred payments. Tn other words. i've are lending to Great Britain and France five hundred million dollars, so that they may purchase from us things that we want to sell to them-
 To the United States this loan means:
 l. That not one dollar of the money loaned will leave our shores;
 2. That every dollar will go, di- rectIy or indirectly. to some American farmer, working man, merchant, or manufactures, in cash payment for foodstufTs, clothing, raw material, la the English and French people need;
 8. That there will be established in this country a commercial credit just as important to to England and France because it will be used to in crease our trade and permit the out flow of our surplus products;
 A. That this country finally recog- nizes that. in order to further Ameri- can trade, it must become a creditor nation, giving credit to any solvent and friendly nation that may be en- titled to it.
 The security for this loan is the income and property of the two rich est nations in Europe. The combined wealth of England and France is esti- mated at $135. .000, ,00O. .o00-270 times Rf1e amount of this loan. The popul- ation of4the two countries is almost 100 600, 0o0. The proposed loan is practically the only external ob1iga- fion of the two nations; such a, loan bedng( as we view it, a. first claim upon the revenues and wealth of the nations issuing it.
 The total internal debt or the two nations is considerably under $2o,- oOO, ,000, 900, and is less than one years income of the people of these two nations. This loan will increase their indebtedness only 21k per cent.
 Having thus no question as to the fundamental safety and prompt pay nnent of this loan, we have each sub scrfbed to it; believing, moreover, that every American citizen who partici- p&tag in the loan win be contrtbut-