The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-12-30
Financial Center of Gravity
Has Shifted From London
to New York
YEAR BEGAN IN FEAR;
CLOSES In CONFIDENCE
Whole World Debtor to Amer
lea, Due to Abundant f1ar-
vests and Great Demands
From Warning Nations

New York. Dec. 24,-Iu com a~htfus
upon the situation in this country got
long ago the Statist % London tooS
occasion 10 say that changes in SeuJ5-
mept and changes in economic cefAia-
lions in the United state, ip the las
few months ha - been 50 remarka sc
as to partale Of the miraculous
While This may seem cXtraya giant tp
g casual observer the accuracy of the
chara etetizatiuu viii not he question
ed seriously by persons familiar vita
the status OK affairs following tht
outbreak Of nc war abroad, and
WITH he leading developments NJ
1913. practically ad If which have
tended 20 a transfer al the tinan>iai
center ot gravity from Europe o.
America.
II IS Impossible. Of course to sever
the link Of connecting influences. anil
for A proper appreciation Of the inn
portaui events and the striking
changes of the last few months ore
must go q little further back shan
January last Consider then The
situation that prevailed II the lat
summer and autumn Of 19l !. Ea9t~
nous selling and violent declines IN
securities on rumors II the war closed
the bourses at Montreal Toronto and
Madrid on July -; those or Vienna
budapest Brussels, Antwerp. Eerlin.
Milan and Rome succlImb bed the sue
5ceeding say. aud Tarls, Fctrograj and
All south American countries followed
;oH Iuly IN.
London QUITS tho t.sme
london snd New York alone as eH.
sreat financial eeaters were open fg1
the transaction Of btisiuerS At the
close OF that day. London faIlea Ia
open On the mornlnS of july amt
New york which had %ithstoea til"
liquidation Of 81 the world for s@yerst
days was forced 70 eiose--the last Il
1.-THE great markets 10 do so---in order
~ avoid cataelysm. Billions af
securities pledged for billions Of loans
we're ~ once deprived OF a market
land became for the time 50 naIh
waste paper. The Bank OF England
advanced It's minimum discount 10 10
per cent and tho international nnan-
cial structure collapsed
Payments We're suspended here, and
exchange advanced To seven i3 the
pound sterling depreciatiug The dol
I lar to an extent never before know.
ocean transportation was inter-
ro-ted Al . time that Europe Nas
thronged with Americans and the
country owed upward Of $500, 600 00a
ION current account abroad. including
nearly Sl00, ooo 600 duo by the city Il
New y urk and it was almost impos-
Sibte 70 ship merchandise or create
exchange Exports for August. 1914,
were but $4,000 600 While inlpotts
We're q So COCO creating de0it
balance OF s.0.o00. o0U against AS
Some bankers We're in favor Of de
iferring gold payments TO Europe, hat
wiser eounsels prevailed. \ gold po4l
Iof Sluo,00o,o00 was formed 10 take
care OF exchange and a fund of $780,
aGa.eoo was subscribed to assist the
movement of cotton. Aldrich-Vr
land money 10 the affTuunt OF s3st-
ASS, GOO was put in circulation. and the
local banks took out clearing house
loan certificates 10 the amount #
S2o2 900 900
tlanereenc, Measures Effective,
Emergency measures proved ctfec-
i've IN aVerting general cataciysm
and slowly the situation adjusted it,
self to altered conditions England
obtained the mastery Of the seas aud
heavy exports OF grain and general
merchandise enabled MS TO reduce or
foreign Indebtedness The debit mai
snce of $50, 000.oo0 on foreign trade
lin August gave way to credit ba al nee
of s13l.S63.o7T in December the frs,
Of long series of record breaking ex-
ports. Foreign exchange improved
and its betterment was facilitated by
an extension of credits TO France and
Russia. and other European md South
American countries. Firally on De
cember =. 1914. the Stock Exchange
resumed business timidly under the
restriction of minimum prices. after
suspension of nearly four and half
months.
Despite an Improvement which
seemed u considerable Improvement
lat the time, there was much uneer-
ia inty regarding he future at the COM
,meneement of the present war
Impossible Comes 10 Pas
II anyone had suggested AT the out
set Of 1918 that the ensuing months
would he marked hv an rra 80 mar.