New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-18
HALF BILLION
LOAN TO BRITAIN
EXPECTED SOON
Continued Drop in Ameri-
can Exchange Causing
Uneasiness Abroad.
URGED BY PRESS
TO BORROW NOW
u. S. Exports Nearing Two Bill
ion Mark, Says British Expert,
but Credit Must Be Given.
fRY Cable 10 The Tribune |


lbs Gable to The Tribune.
London, Aug. 17.-Every indication
points strongly toward Great Britain's
obtaining a big American loan, prob
ably exceeding s5OO.O0O,OOo. The con-
tinucd drop in American exchange has
been causing uneasiness, and British
bankers expect that government action
will be taken within a very short time.
The question Of American dollar
credits has been thoroughly gone into
by the government and by bankers.
This would shut off the great amount
of paper coming here, settlements be
ing made on the dollar basis in Amer
lea. Unless action is taken immedi-
ately it is freely forecasted the pound
sterling will soon drop to $3.50.
"The Daily Mail" in its money arti-
Gle says: That the government has
long had in its mind the possibility OF
the issue of a war loan abroad-which
means in the United States, for in what
other country could the government
borrow was indicated in a war loan
prospectus. In that document there
was definite mention of the possibility
of issues made abroad The officials
seem to be long time in arranging
such an issue, which, in the opinion OF
practical financiers in this city, has
now become impcratively necessary. 1t
is not that we want money for general
purposes; it is that we want means OF
paying in the United States for the
huge amounts of foodstuffs and mu
nitions that we have been buying there
and which we are about to buy there in
heavily increased volume. A loan OF,
say, fl00,000,000 in the United States
would work wonders.
Calls 1t Dangerous Delay.
at is the opinion Of high financial
authorities in this city that the govern
ment is playing dangerously with the
situation. After month of warning
there is no indication even yet that the
government is doing anything. Early
in the war it was arranged that in the
likely event of any exchange difficulty
arising bankers of this country and the
United States should come to an agree
ment for rectifying the situation. The
time for carrying this out is long over
due, and yet the bankers have not been
asked to do anything"
Sir George Psish, editor Of "The
Statist," an authority on international
credit, gave to the Associated Press
to-day statement concerning the
present exchange situation and propo-
sails for rectfying it by establishing
n large credit in the United States.
He said:
"The fall in American exchange on
London to a discount of about 4 per
cent is due simply to the great pur-
chases of American products by the
peoples of Europe. In normal years
Europe pays the United States for
goods purchased largely by means of
sums spent in Europe by American
tourists. This year there have, natu-
rally, been few tourists from the
United States, and Europe's means of
paying for a normal amount OF goods
bought from the United States have
therefore been greatly reduced.
Growth in American Exports.
Moreover. Europe this year is buy
ing from the United States much
greater quantities of goods than
normally, American exports to all the
world in June having been 10 per
cent greater than normally, while her
imports from the rest of the world
were smaller than usual. Thus, the
trade balance in favor Of the United
States is quite exceptional.
For the si% months ending with
June Americas imports were reduced
some $4,000 900. Her exports ex-
banded s654,O00, 900. Her tourist ex-
penditures, which normally are at
least 5000, 100000 a year, were practi-
cally nothing. Thus, America had a
balance in her favor amounting to in
the neighborhood of $500 100000 more
than she had in the first six months
of 1914.
Last year, however, she was bor-
rowing money from Britain and Eu-
rope, whereas this year she has been
buying securities back from Europe.
After allowing for all outgoings, the
VIZ ut OdldllNC III ANfOi VI NAAN FAihNA
can people in the first half of 1915
was nearly 500, 100000, and they took
payment Of this vast sum in about
l20,0O0,000 in gold and the balance In
securities and credits.
May Reach a Billion.
But in the June half of the year
Americas exports were much smaller
than they will be in the December
half of the year, and in the next six
months to Christmas the balance of
exports over imports in favor of the
United States, after making allowance
for all outgoings, for interest and SER
vice. probably will be one thousand
million dollars; it conceivably may
reach still greater figure.
The amount of exports from the
United States in the current half year
depends upon the American people