New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-18
EVERY DOLLAR
OF ALLIES LOAN
TO STAY IN U. 5.
How S5OO,OOO,00O VIII
Benefit America, Explain
ed by Leading Men.
IMMENSE TRADE
TO BE RETAINED
Security Praised In Statement
Saying Merchants VIII Get
Big Share Of Money.


Saying Merchants VIII Get
Big Share of Money.
statement Of the real Gaming ~
the Anglo-French S50O.O0O.oOO loan.
pointing out the various ways IN which
it is to the benefit OF the United STATE,
wa issued yesterday, signed by men
foremost IN financial, legal and AGA
demio activities in the United States.
Each Of these men. the statement said.
had personally subscribed to the loan.
Tho men whose signatures were on
the paper were Daniel Catlin, Of 81.
Louis; Joseph II. Choate, Of New York;
Charles W. Eliot. Of Cambridge. Mass;
Howard Elliott. Boston; Fairfax -rri-
son. Washington; Henry /. Higginson.
Boston; James J. Hill, st. Paul; n. 3.
Ledysrd, Detroit; Robert T. Lincoln.
Washington; Franklin D. Locke. Buff
falo; Seth Low. New York; F. p Rip
ley, Chicago; Theodore y. Vail, Lyn-
donville, W.. and Henry Walters, Bal
timore. Their statement in full was:
Credit Extends Commerce.
This country has not been accu5-
toned TO extend credits upon a largo
scale 10 foreign countrie-. and many
people do not understand what such
credits mean TO the maintenance and
extension Of our agricultural and COM
mercial interests. Each one of US who
signs this statement has been asked so
many times 10 express his 0piui on
the subject that we have decided in
this way 10 place before the American
people our understanding of the plain
facts in connection with the loan Of
SJOO,OO0000 to Great Britain and
France.
During normal times Great Britain
and France purchase from US every
year about S750,000,0OO in farm prod
ucts and other commodities. and wa
buy heavily from them. Ordinarily
the payments by one country 20 the
other are accomplished without the
shipment of coin, the indebtedness Of
ole country going TO Offset that Of tho
other. and the difference, usually con-
shutting a small balance, is covered
by gold shipments or otherwise.
iIdut bdidhAt S'sNVNsUbOsVbU.
"Now, owing to the war, our pur-
chases from Great Britain and France -
our two chief customers have fallen
Off, and their purchases from US have
increased enormously. Thus, the total
trade balance in our favor for the year
ended last June was over 81 600, 100000,
Of which S947 100000, or over Sc per
/ cent was represented by the trade bal
I - .-s- l..
/ clearly impossible for these countries
to continue to meet these heavy bal
nnces through the ordinary channels Of
international exchange. Such heavy
shipments Of gold as would be required,
Tor instance, are not only diiiicIlt but
in these days unwise 70 undertake.
Moreover, this country already holds a
stock of gold larger than It's immediate
uses require.
America must therefore find solu-
tion of the problem of financing for a
time this favorable trade movement or
else run the risk of losing large part
of its export business, for the United
States appears to be by no means the
only country in the world where Great
Britain and France can buy on favor
able terms the grain and other commOdi-
ties they require. II these two great
nations are obliged materially 70 de-
crease their purchases from us the re-
suit may be lower prices for our farm
products and less work for our fac
tories.
Deferred Payments Necessary.
an other words. if we want these
countries TO continue as our best Gus
toners and thus to bring Increasing
substance TO our communities, we must
allow them TO settle by some system Of
deferred payments for the commodities
they buy from US.
"This loan, therefore, which, in total
amount, is only two-thirds Of these ma
tons normal purchases from US each
year, is simply a system Of deferred
payments. In other words, we are lend
ing 70 Great Britain and France $780,
100000, 80 that they may purchase from
US things that we want TO sell to them.
Lean All Spent Here.
ITO the United States this loan
means:
THAT not one dollar Of tho money
/ loaned will leave our shores.
That every dollar will 90. directly
or indirectly, to some American farmer,
workingman, merchant or manufacturer
in cash payment for foodstuhs. cloth
ing, raw material. labor and manufact--
ured products that the English and
French people need
THAT there will be established in
this country commercial credit JUST
as important 70 us as 70 England and
France because il will be used 70 in
crease our trade and permit the outflow
Of our surplus products.
THAT this country finally recognizes
that. in order TO further American
trade. il must become a creditor nation,
giving credit 20 any solvent and friend
~ nation that may be entitled 20 IT,
Secured Two Ilundredfold.
THE security for this loan is the in
come and property of the two richest
nations OF Europe. The combined
wealth OF England and France is est
mated at sl35, 100000 1000, 215 times the
amount Of this loan. The population OF
the two countries is almost l0O,OOo'O0V'
The proposed loan Is practically the
only external obligation Of the two ma
tons, such loan being. as we view II,
a first claim upon the revenues and
wealth of the nations issuing u.
THE total internal debt Of the two
nations is considerably under S-O.uoO'-
600 600. and IS less than one years m
come % the people OF these two ma
tions. This loan Will increase the'r
indebtedness only pa per cent.
Having thus no question as 70 the
fundamental safety and prompt pay
r,ent of this loan, we have each sub