The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1915-04-16
A WISE WORD OF CAUTION.

~ EcENT Offering BY American
TX bankers OF French govern
- msnt bonds 10 the amount Of
s5o.oOo. 600 and German government
notes 20 the amcanf Of $40. geo. 900 is
expected 10 b followed very shortly
by the f~losation In this country Of a
RBsslan loan Of a50.0oo. ooo. a Brit
Iish loan 81 perhaps ti00. goo. 0o9 and
By smaller loans to various other for
Ieisn tstes Prior - last week France
lhad arranged FOR an American credit
Of smaller amount than her latest
borrowing, n Russia has already
obtained tss. 100000 IN this country
ON bank acceptanccs. In addition.
neutral couniyses like Norway. swe-
den. switzerland and Argentina. as
well a. a number OF Canadian mu-
inequalities. have been Obliged to surn
10 the United tates TO nnd a market
Tor susbtntial blocks OF their secur-
titles.
The Boston Commercial Bulletin.
one OF the best Informed Of all our
financial journals. thinks that We
must NOS be too quick. however, TO
Jump 10 the conclusion that the phe-
nomena In question signify that the
worlds financial center Is destined to
be permanently transferred from
London to New York. VITA an enor-
NOUS conflict upon ia haHds. Europe
is Obliged 20 establish credit and buy
munitions Of war and raw materials
for industry wherever obtalnaBIc. and
the United States Is the only country
az peace where they are obtainanie
on anything like an adequate scale.
II the war therefore. lus,s as long as
the more peasimistic believe Il will
last, this country will have built up
foreign credits which viii give u q
more commanding position Than u
has hitherto occupied in the field OF
international finance. but Il N alto.
geiher too soon to predict hat New
York will suppiant London In that
isphere. The latter metropolis ha'
been too long In the game and hai
brought her banking and finanoia
machinery up TO too great a degre'
OF power and efficiency. backed Up a
II Is with a vast commercial prestige
TO allow herself to be easily reIegateS
20 a place u secondary importance
Gratifying as the position which W
now hold in the field Of i%nternationa
banking and m undoubsedll
Ia. Il IL attended by this danger. tina
we should count upon IL AZ a perma
hent thing and shape our entire bust
ness structure accordingly. But Eu
rope cannot continue 10 augment ne
Indebtedness 10 US Indefinitely. on
the contrary, sooner or later she vii
endeayor 10 uquidate a. and although
lthe payment OF "a debt Ia rnrel'
Viewed with apprehension By an indi
yiduaL Il may we'll crcate disturb
ance between nations In view of IN.
fact that international debts are u
quidated for the most part In com
moditios. In other words. when IN
tlme comes Tor Europe 10 pay Il
debt to America the payment In al
probability win result In some meaf
ure Of reversal In h relative size .
our import and export trade u thu
%eausc more or less anxiety 20 ihps
who shaped their business affairs 2
the assumption thai such o revers9
was OF the question. Even
Europe should attempt the imposs'
Bile feat Of paying hef debts % kmei
iea In gold, the ultimate result woul
be the same. for the influx Of hun
quantities Of the yellow metal woul
cause nn advance In prices that Woui
speedily check exports ana gre3sl
rtimalate Imports.
The moral which the Commcrcii
nuiietin would drive home n thu
while certain classes n individual.
viii make big profits on The preset
war, precisely as such profits has
lbeen made on past wars. neither IN
nor any other neutral country vi
. prosper permanently on tho losses an
. the misery Of half Of civliizad ms'
hind. TO he sure. we are under :
4 obliration q the rcat OF mankind
4 allow their troubles 20 paralyze OF
Initiative nor 10 refrain from takiI
oth''v advantage of our business o.
F"H 'aities. but We should not forg