The Birmingham age-herald., 1915-03-19
Russia's Heavy Purchases

There is no way of estimating accurate ly what the aggregate amount of Rus sia S purchases in the United States since the war began, reckoned by dollars, lss but the total is very large. Sometimes We hear offhand estimates of xlooO00,ooo as the amount of money Russia has all ressdy expended here for war supplies It is commonly believer in the financial district that if the allies force the Dar- daneles and secure uninterrupted pas sage between the Black sea and the Aeg- can, this strait will be as free to the na- tions of the world for commerce as is the Mediterranean itself. It is also surmised that this will greatly increase not only the commerce between the United States and Russia. but also the investment of American Capital in Russia for the estab- lishment of industries. possibly for agri- culture, and certainly for the greatly needed expansion of the Russian railway systems. In fact, large as is Russia s commerce with the United States, or more accurately from the United States, now, that will be, comparatively speaking, of small importance if the opportunities which Russia win offer to the United States after the war prove equal to the general view now of what these oppor- tunites will be-
 Mir. Schwab and others who within the past three or four years have visited Russia are persuaded that the empire in it's natural resources can be compared with the United States. Therefore, as soon as peace comes there will open to Russia an opportunity for industrial az ricultural and mineral development simi- lar to the opportunity which opened to the United States after the reconstruc- tion period of our civil war. Russia, the men of finance say, will be compelled to do what the United States found it neces- sary to do immediately after the civil war We began to borrow funds in large amounts not only for the purpose of ex- banding the old railroads and construct ing new ones, but also for exploiting our mines and developing our natural re- sources. At one time we borrowed upon the security of bond and mortgage many millions for the development of our real estate. Now the time has come when we are in position gradually, but surely, to absorb all tine securities which are held in other parts of the world and which represent American property and in addi- tion to furnish capital to other nations There will be strong disposition to fur nish Russia with capital of that kind. This is partly due to the fact that men of affairs in our financial district are persuaded that Russia is now entering upon new era. The old Russia is pass inS away. Industry of all kinds is to be encouraged by the government and stim- ulated by capital obtained partly in France, partly in England and partly In the United States So, also in the finan- cial district the conviction is strong that Russia has no political designs beyond her western boundary, realizing that her empire is enormous enough in area to furnish all the opportunities, provided capital and skillful direction are secured, which are needed to it's upbuilding.
 It will probably be made clear by April that not only internationsl fsla5scRig for Russia. but for other nations is now well established in the United States. And it is spoken of as a most encourage ing symptom that the denomination of exchange in terms of dollars, or what is called dollar exchange, has now gone so far as to make it certain that the United States, through it's large financial centers is to become the banking center and the money market of the world at least until after peace is restored. Dollar exchange will considerably facilitate our rela tions with Russia. While we are. speaking technically, exporting capital in large amounts-as was done recently when Switzerland financed loan of $15.- 000,000 here--yet the indifference of the United States to the tendency to bring gold into this country is explained by the fact that the capital which we have lent to other nations for the most part remains here, and is used in the payment of the commodities these nations purchase in the United States.