The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-01-22
Our New Financial Power.

Our New Financial Power.
Record breaking figures are reported
for the countrys foreign trade in De
cember. The International money mar
ket is showing the increasing ascen-
dency OF American finance. Prepare
ions for the dissolution of the so-called
gold export pool formed last autumn
are under way. The British Treasury
has taken charge Of new security pro
motions in London and has absolutely
forbidden the provision OF capital 70
borrowers outside the British Empire.
There is a close relation between all
hese facts which show how fast we
have travelled in few months to re-
coyery from the shock of the outbreak
Of the European war and what prog
ress we have made toward an economic
emlnence that seemed only little while
40 too remote even TO dream about
No wonder foreign exchange has
turned sharply against all the rest OF
The world and in favor OF the United
states. Even while we were rehsbili-
tating ourselves in international conf
dence as debt paying nation by pro-
seeding TO arrange for gold shipments
% discharge current balances against
rs abroad, the worldwide demand for
Goods and commodities which we could
best supply was taking care auto
uatically OF the settlement Of our for
cign indebtedness. The improvement
and enlargement OF our financial and
commercial facilities by the establish
lnent OF the Federal Reserve banking
system and the evidence of the funda-
mental soundness and stability of
American enterprise and American val
ues which was afforded by the resump-
ton Of our open security market with
out disaster increased foreign conf
dence in the safety of dealings with
us, and we have to-day a prospect Of
unprecedented trade, Industrial and
financial expansion.
December exports reached the fourth
largest total for any month in the coun-
rvs history. The December balance Of
exports was larger by s17,ooo0oo than
any previous export excess for Deem
Der. This balance, almost 1882 900, 900,
was, moreover, about $50, 100000 great
er than the November export balance,
and unless all signs fail the value OF
our January export trade over the value
Of imports is likely b. be s175,0O0,0 900
at the least.
When there Is taken into considera-
ZION the autumn gold shipments and the
reduction already effected In our Gus
tomary expenditures abroad for the bills
OF travellers and In other ways, it Is a
very reasonable estimate that since the
start OF the war we have been Great
ing foreign credits at the rate of $780,
100000 month, and the ratio Is in
creasng. Judging from present 6nan.
cial and commercial currents the ac-
emulation OF billion dollar credit
balance within year from the start Of
the war looks like an unwarrantably
conservative conjecture,
As result Of the matters noted our
bankers to-day have such control OF
The foreign exchanges that they could
force gold to come here from foreign
financial centres or compel them TO
resort 10 preventive measures. Under
these circumstances the dissolution OF
the gold export pool is formality but
Il ought 10 be no less obvious that
American finance is not going to make
my such unwise use Of It's new power
n. would he involved in the disturbance
NJ strained monetary positions in other
coRtries through a raid on their gold
foundations. On the contrary our
bankers recognize that the only terms
on which we can keep the economic
power 10 which We have attained Is by
nm intelligent use of 1t for the greatest
possible international benefit.
Great Britain's formal refusal through
The Treasury announcement to provide
capital during the war to countries out.
side the British Empire is in so many
words declaration Of the necessity
which confronts the United States to
do what It can In supplying funds for
International employment in the pur-