Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-05-02
NEW YORK
FIRST IN FINANCE
Financiers Expect War Will
Shift Money Center of
the World.
PERMANENT WORLD PEACE
THEME OF SPEAKERS
Academy of Political and
Social Science Hears Noted
Thinkers and Experts.

Thinkers and Experts.
Nanderiip president ~ the National
City Bank New York, at today'S seS-
sion of the annual meeting OF the
American Academy of Political and
Social Science. said that the United
States has not yet felt the full finan-
eial effect of The European war lie
presided at the session at which was
discussed Americas financial position
as affected by the war. and Spoke {
briefly before introducing the spea kers
on the program.
MIR. Nanderlip said the inflation Of
note issue and the imitation of credit III
the European countries al war has
acted cushion against the SHOCK
He though, the effect on the financial
situation will eventually oe felt more
seriously tnan it is at present.
The present easy money situation in
the United States. according to T. W.
Lamont. member Of the Morgan
lowed Nr. Nander'ip. was not Que to
excessive Imitation in Europe.
All TO ray just DeOts.
Mr. Lamont spoke of the future OF
finance following the war. He SAID:
I'VE shall see the spectacle OF the
business Non OF all nations paying to
one another their just debts. We shall
see the German merchant keeping his
word sacred to the English and the
Frenc:, to the Turk We shall see
finance standing ready to develop new
enterprises. to find money to till new
fields. 10 help rebuild a broken aud
wreck strewn world.
Mr.. Lamont further said that only time
could tell whether New York would super
sede London as the worlds money CEN
he said. it will probably be many years
before America could become the financial
center. To become so, he added. the
United States must build up new mar
kets. In such development the duration
of the war is bound to be determining
factor The United States must not only
continue to build up it's foreign trade III
order to gain financial supremacy Mr.
Lamont said, but it must continue TO
buy back securities from Europe. and
must become a large lender to other
countries.
At the morning session. at which the
relations OF the United States with Cen
trail and South America were discussed.
IL,
secretary to Germany, spoke briefly, dur
ing which he denied statement made at
last nights session of the academy, that
Germany had protested against the right
of the United States to ship arms to bel
ligerents.
Financial Conditions.
The effect of the war on financial con-
ditions was discussed in many phases.
r.. T<,Ir 'of vnrlr
University said he believed the United
States will have to furnish money and
foodstuffs after the war to help Europe
make quick recovery Dr.. Edwin S.
Mead of the University of Pennsylvania
did not expect a great inflow of immi-
grants after the war as the ablebodied
men would be needed at home The Ques-
ton Of trade expansion, he said, is bound
up with our national defense and he urged
the United Sttaes to look well to the de-
lenses Of the country. A B. Leach. pres
ident Of the Investment Bankers Associa-
ton. said the net result of the war on
this country's finances would be of sub
stantial benefit.
The meeting closed tonight with a dis
cussion of Americas possible contribu-
ton to a constructive peace. Speakers
included August Schvan, former Swedish
diplomat; Oscar S. Strars. former am
bassador to Turkey, and Morris Hiilquit,
~.
inson Of Kings College. England was
read in which he suggested with other
things, that peace be esta blished through
the Intervention OF President Wilson
Sees United States First in Finance,
First place in the field of interna-
tional finance may come to the United
States as a consequence of the Euro
pean war, w Z. q. Harding, member
of the federal reserve board, today told
the American Academy of Political and
Social Science in session here.
To obtain that pre-eminence in in
ternational finance. however, Mr. Hard
ing warned his hearers that the United
States must resist any tendency to-
ward imitation, and a wild temporary
boom, such as history has shown fire.
quently follows the conclusion Of great
wars. He declared that the nation now
was in a commanding position as the
only great world power not involved
in war, and pointed to the fact that
the trade balance has been in favor
OF the United states to the amount Of
$719.000.0O0 for the last nine months
This balance. he predicted might reach
81. 900, 100000 by the end Of 1915.
We We should a,ha, not a,thonsh forget" said Mr.; Il:
passed through no pronounced boom
period since 1907, there is strong ten
dency today toward imitation In this
country as well as in Europe, where
imitation is a necessary result of war
necessarily bring about many readJust-
ments Demand for war material will
cease, and in it's place will spring up
a demand for the commodities Of or
binary trade, and particularly for those
materials used in constructive work
and repairs.
Must BE Watchful.
Great Britain, Germany and France
will use every effort to recover lost
trade and will endeavor to avail them
selves of American markets: our mar
gin Of exports over imports will
shrink, and as war debts are perma-
nently funded. securities will doubtless
be sold by citizens OF countries lately
to their national loans, The volume
Of these sales will be governed partly
by security prices and by trade bal
ances. and the effect upon our money
market will depend upon the provision
We have made in advance to offset or
to finance these purchases.
While We now have in operation a
We must not permit ourselves to be
lulled into false sense of security,
or to feel that We have a license to
disregard well established principles
We must be conservative; we must re-
sist tendency toward imitation, and
we may be sure that by preventing a
wild temporary boom which would GER
tainly result in a collapse later on
this country will be in a far better po-
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