The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-09-24

New DIRK Olty, n. L E, Depl. TO-
Never in its history has the United
States commanded the position OF fin
ancial pre- cnl;nence among the ma
tons of the world as that which is &C
corded this country to-day. Certain
" the financial commission represent
ing Great Britain and France, which
is now eagerly seeking to enlist our
financial resources for the further
ance of trade relationships between
America and Europe, is unique cx-
perience and marks a very important
epoch in American financial history.
Though it is too early to comment in
full upon the plans to be presented by
the Euproean fnanciers, it is now
evident that their sole purpose in
making this visit is to arrange for a
loan estimated at from one half bill
lion to one billion dollars. This be-
ing the case, it is important to con
slider few fundamental facts, entirely
from the American standpoint.
In the first place, it should be rem
embered that this commission is not
an official governmental organ, but
merely a representative of the banking
and commercial interests of the coun-
tries from which they come Further
more, their dealing in this country are
not with our government, but with the
representatives Of private capital
trade and industry. In this capacity
they are therefore at liberty to make
such terms as they may, and those
who grant concessions or guarantee
transactions must do so at their own
risk. Further, the whole subject
should be treated in the light OF its
benefit to American trade and COM
merce, and not as an aid to belli-
gerent nation. 1t should therefore
be stipulated that whatever loans or
advances are made to the foreign re-
representatives. must be in the nature
Of commercial credits, which will en-
able the European countries to secure
our goods; but, more important from
our standpoint, will enable American
business to secure payment for these
goods. This will automatically solve
the facilities for financing the ever
increasing commodity export trade,
leaving only the munitions to be paid
for with British gold.
This has been the strong point adj
vanced by such leaders of American
=
York this week, Mr.. Hill made the
following significant comment: The
maintenance of stable rate of for
eign exchange, which can be done
only by the establishment in this
country of very large credit account
for Great Britain, to be drawn against
for the purchase of foodstuffs. is Of
far more importance to the United
States than to England. 1t is not too
much to say that on this the prosper
ity Of the American farmer depends.
A careful estimate shows that the to-
tai requirements Of the Continent of
Europe for the coming year will be
about 550,000,000 bushels of wheat,
The United States will have not less
than 375,000,000 to sell of its big
crop. The supply Of Canada for ex-
port will be fully l75,O00,000 bushels,
and of Argentine lO0,000,000 The low
est estimate of the total marketable
supply from this continent, therefore,
will be 650000000 bushels, or 100000
600 bushels in excess of the total de-
mand. These conditions, growing out
of facts that are not subject to change
show that the problems growing out
of international exchange concern the
United States as intimately as they do
the nations that are at war. 1t is most
essential to the prosperity of our peo-
pie that our wheat should get to mar
ket and find purchaser. And if the
sale of our wheat does not go forward
steadily to the purchaser, the latter
will certainly turn elsewhere; cs-
pecially if a more favorable rate Of
11
tage in another market than ours. A
credit of half a billion dollars secur-
ed by English consols mad French
rentes should be arranged for in New
York City. American securities can
not be cxacted, both because the am
cunt of them held abroad is not unlim-
tied, and because they are in the hands
of private owners. The big job OF
feeding the world must be backed by
the credit of the world; and the cir
cumStanceS are surer that we cannot
exact unreasonable terms or refuse to
do Our share of making the transac-
ton possible without sacrificing al
least large portion of our market
and forcing prices down to a point
that will men distress instead of pros
Ierity to our agricultural interests
The same principles apply, though
perhaps less seriously, to all our for,
eign trade. Our cotton, for example
is absolutely necessary to Europe, fol-
the field of supply is limited. The
same is true of such manufacturers as
the warning nations at present wish
to buy. 1t is the farmer who is the
most concerned here, who stands to