Evening star., 1915-05-30
Accepted as an indication of
Rise in Value of Ameri-
can Dollar.
U. S. NOW TAKES POSITION
OF "CREDITOR NATION"
Pan-American Conference in Wash
ington Viewed as Most Impor-
tant Event in Years.

low quotations for foreign exchange is
>but another method of expressing the
rising value of the American dollar.
With the American equivalent of the
British pound sterling now placed at
S4.76 to $3.50. the rates of foreign ex-
change may be said to be the lowest
that have ever obtained while the
United States was on specie basis.
With the last of the greater Eurnpean
nations drawn into the war, and the
United States the only important COM
mercial nation in which paper currency
is strictly on gold basis, the impor-
tance of financial credit position IN
this country becomes an increasingly
desirable factor for the European bel
Hgerents. and hence the increasing de-
mand for dollars rather than pounds,
francs or marks. For this reason we
have little use for gold at present, and
there is small likelihood of our being
called upon to import any of the yell
low metal for some time to come. Eu-
rope, in fact. is much more in need of
our commodities than our money, and
the nations thereof must ultimately
solve the problems incidental to the
financing of the enormous transactions
that are now going on between our
larger industrial corporations and the
British, French and Russian govern
ments
The sudden changing OF Americas
position from a debtor to creditor
nation has, of course. been due to the
extraordinary expansion OF our ex-
port trade and the contraction Of our
imports since August last. Figures
given out from the Department OF
Commerce show that in August last we
had a balance against us, in connec-
tion with our European trade. of nearly
500 until April /
there have been monthly balances in
our favor aggregating $I60,173.13O and
distributed through the months as fol-
lows: September. s1S,341.722; october.
cember. sl3o.s76.013; January. s145. $780,
s96; Februs-y. s174,sS2.47s; March.
s157.00O.Oo0.
Rated as Important Factor.
This new position in respect to the
International commercial markets is
doubtless the most important factor in
our trade as related to domestic pros
perity. Another factor is the gradual
but steady liquidation of our securities
by European holders who have been
sending back our stocks and bonds
and converting the proceeds into the
necessities of life. Various estimates
have been made as to the amount OF
money thus borrowed" of European
investors D| our TdilFOdu dho LINUS
trial corporations, but the most con-
servative estimates place this at six
billion dollars. While the general
liquidation has been much smaller and
much slower than had been expected. 1t
10 also true that we have been in
stronger position to absorb all the Sc
curities that have been thrown back
on US. Nevertheless, it is said that one
large financial institution alone had
received no less than $40.000.0o0 in
American securities from foreign Gus
toners since the outbreak of the war,
and recent reports have tended to en-
movement. We are thus developing
state Of financial independence in
which we shall not find IL necessary
to seek foreign capital for our invest
ments. and to that extent the war has
proved a blessing in disguise.
Whether we shall be able to continue
on this basis depends to a great extent
upon the thrift and frugality OF our
people and in their being properly In
structed into the necessity OF saving
as we'll as in the most approved meth
DDS OF so doing. In France and Ger
many the instinct to purchase bonds in
small denominations is exhibited very
early in the life of all the people, from
the peasant to the capitalist; but up to
the present time we have failed to cul-
tivate such tendency among our peo-
pie. If we recognized more emphatic
ally how closely our national prosper
ity was related to our Individual THRIFT
and prudence in money matters. and
governed ourselves accordingly. we
should depend much less upon the
thrift and savings of the French peas
ant or the German mechanic. In this
connection be II said that the small in
vestors or outside public" hold more
stocks and bonds than ever before and
that the savings deposits Of our fnan-
cial institutions are at high-water
mark.
Uniting the Americas.
Nfnndar,s oneninp of the mammalian