The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-22

well our bankers will obtain more and
more control over the International
money market. Nevertheless the financial
community has been put on notice that
we can hardly afford TO have the prog
ress of the war curtail our trade nor
allow trade to langulsh for lack OF
banking assistance which we can rem
der to our foreign customers.
We need the big export balances
which have been aCcruin To take care
Of our securities maturing abroad to
absorb the foreign liquidation of Amer
lean Investments II to provide the
means for financing win
other neutral countries rs well as with
belligerents. What the latest fall in
exchange did was to combine with vari-
ous matters to furnish a reminder Of
the ever widening strain which the war
has inflicted and of the wisdom Of
exercising caution in respect to it and
on account Of II.
An interesting contribution to thought
In this connection was made by Mr..
Lloyd George. the Chancellor OF the
E~xchequer. In his address to the Erit-
isll House of Commons last Monday.
His speech was devoted TO an anal sis
OF the financial aspects Of the war and
the point Of chief concern to US was his
return to the subject OF British for
eigu Investments as for
financing the war. The ohsession of the
British Treasury in this respect ls OF
much Importance.
Foreign sales OF Our securities.
For war purposes something like
state socialism has been established IN
the United Kingdom. but the Asqulth
Ministry exhibited before the war many
socislistic proclivities. The EXchequer
has taken charge OF all British financial
basin -. II has put war financing IN
the footing OF an extraordinary cNpcri-
ment. in that the credit of the Govern
ment has been hypothecated In order
to underwrite British credit Of every
sort 10 the last degree OF private raini-
tication. Such a responsibility for
credit as the Exchequer has assumed
will compel it 20 adopt any means to
make credit good, and Lloyd George
has in almost so many words told the
British investor that he must regard
his investments as az the disposal OF
he Government to meet British ohli-
cations incurred In the war ard in
consequence OF IL.
Some three months ago the Chan
Cellor OF the EXchequer drew up a fiaun-
cial balance sheet In which he made a
particular item of the huge British in
vestinent abroad az a guarantee Of
funds for the prosecution Of the war.
Last week he said that Great Britain
could finance the war for Ave wears out
OF tho proceeds OF these foreign invest
ments.
Now IL has been estimated thai 500
600. 000. 600 would approximate the total
Of British capital supplied to other cpuu-
tries and that about S3.5un.0 0u. 600 Of
this is American investment. 1t is more
than doubtful If there is a market for
any vt Great Rritain's foreign invest
ments except for it, American secur.-
tiss. II Is hardly doubtful that The Chan
cellur OF the ENcnoquer is prepared 20
resort to measures t. force these Amer
lea securities to sale &c that becomes
necessary TO enable Great Britain 20
maintain its credit as. for example. iu
meeting the debit balances represented
10y the discount at which the pound
sterling IS quoted in New York
There is no question that European
investors generally are most Reluctant
TO part with their American securities.
They mus, seem to them to he tho hcs'
things. the only things of real va.le
tha, they have 10 rely upon after the
war. Nevertheless we csuuut be the
purveyor Of goods and credits to the
rest OF the world without payment and
In the end we are going TO be paid IN
securities.
There is no reason why delusion
should persist on this score. merely he
cause foreign liquidation OF our sccur-
tiles is only a tricklinG low SO far. II
ia altogether fortunate that Europe has
these things OF value. acceptable 20 MS.
with which il can settle It's OBLIGATIONS
here. II is enormously to our benefit
TO take back our stocks and bonds at
relatively low prices IN payment for
commodities sold or capital lent ut rel
atively high prices. stu u securities
are coming home and iu order 20 make
them come home Great Britain and other
be'liCcrents whose citizens have Amer
lean Investments can compel their re-
turn through taxation II automatic
processes do not suffice.