Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-10-20
CLEWS Comment
ON ALLIEDlOAN
IS ENCOURAGING

| ttc0TN Nle"S, Tic NC" lOIh udHhcI
| thus comments on the half-billion dol
lar loan negotiated in the United
States by the Allies:
Placing OF the Allies loan OF $500,
OO0, 900 in New York must be regarded
as the greatest transaction and the
greatest success In financial history
For the time being it gives New York
unqualified primacy in the worlds mo
ney market; and, though London will
undoubtedly regain its leadership after
the war, the importance Of New York
as a financial center has been perma
nently advanced to a close second ;
the strerEth and position Of Euro
pean financial centers having mean
time been eorrespondingly diminish
ed Henceforth London and New
York will be the controlling factors in
the worlds money markets. Should
they ever choose to work together, as
in the present instance, they will prove
irresistible More likely, however, they
will prove keen though friendly rivals
in the coming struggle for the world s
markets. for without support OF the
bankers, our merchants and manufac-
turers cannot secure the coveted
trade. after which the United States
as well as the United Kingdom Is
going in search with all its power
and capabilities.
The most important immediate ef-
feet Of the loan was a very positive
relief in the sterling exchange situa.
ton, which had reached a stage that
was rapidly making international trad
ing impossible. Now that exchange
Is nearer normal conditions, the cur
rents OF foreign trade should run with
more smoothness. The season Is open
ing when the food-tide OF exports be-
gins. Shipments Of grain, cotton and
other natural products will continue to
run on a heavy scale for several
months to come. Europe needs our
big surplus; and fortunately we have
plenty to spare. Indeed We must sell,
for II our farmers do not find good
market for this surplus, the result
This loan is, therefore, quite as much
a benefit to ourselves as to the Allies
Our exports are also being stimulated
as every one knows by heavy ship
ments of war materials; so that in
view of continued small imports the
outlook Is for q continued huge ex-
cess of exports running at the rate of
about 500, 100000 to. $50. 600, 900 per
month. Some experts already calcu-
late that IL the war continues, the sur
plus when the fiscal year ends will
have reached anywhere from 81 300
10000 to $500, 100000 Continued
small imports due to Europe's limited
ability to sell. are D problem that time
alone wilIsolves Our customs revenue
IL being sharply reduced, and I the
treasury deficit Is growing, with in.
creasing expenditures for prepared.
ness" ahead. Some new form of taxa.
ton will be inevitable. Very little adj
ditional can be raised from the tariff
for the reason that an advance in
duties would still further restrict i'm.
ports, and tend to diminish rather
than increase customs revenue. The
sugar duties which now provide $780,
000, 900 of revenue ought to be retain
ed; because If cut off the consumer
would probably not receive any of the
Small duties on tea and
coffee would bring considerable rev.
enue and would also be but slightly
felt by the consumer, if at all. Very
revenue could be deriv'
ed from stamp taxes. one of the most
efficient and least Objectionable forms
Of taxation Present war stamp taxes
viii possibly be retained"