Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-03
The Security Of the Loan.

production long since passed into history.
Exchange Of individuals and Of nations
are now conducted by credits"
The Security Of the Loan.
The October circular of the National
City Bank Of New York says:
After all Is said that may be as to
the Importance Of the credit, there Is
the question as to the security Of the
loan. Individuals are not expected to
make bad Investment for the general
good.
"If they were not engaged in great
war nobody would raise any question
about the credit Of Great Britain or
France. but the increase of indebted
| formidable. The war waste is bad
enough as it is. but it Is made to ap-
pear much worse by the loose calcula-
lions which are current. A common
expenditures Of the governments. a
liberal estimate Of the loss of produce
ton and destruction Of property and all
are vast Implications in this.
THE real backset chargeable to the
war will be measured by the value OF
the property which was in existence
at the beginning of the war and has
limb. There Is q great waste Of cur
| rent production. but, aside from failure
to make good wear and tear. this does
not make the world worse of than 1t
ton or failure to make progress. The
payment of the debts will not involve a
second destruction of wealth; destruc-
ton lends with the war. The capital
the payment Of interest or principal
will be passed on undiminished into the
channels of trade and be available for
the employment of labor and the up
hnf1djnor Of ho f1y ho
as though there were no debt. There
is great mystery about the burden of
debt, but the truth Is that the real OBJ
jections to debt lie against the misuse,
or waste, of funds when 1t was Gre
ated. The debt itself consumes moth
Ing.
"As soon as the war is over industry
and progress will begin anew, and all
Not one dollar can be taken away from
the future or the present and given to
the past. The armies are not being
fed or clothed from next years crops
or supplied with ammunition by next
years labor.
The recuperative powers Of all the
peoples will be found to be surprisingly
great. The stimulus Of new conditions
changes in methods Of production which
will increase the effectiveness of the
people are likely to be rapid. There
fore, the ability of all the countries to
bear taxation and discharge their in
debtedness will steadily increase when
the war Is over. The burdens Of the Brit
ish people after the Napoleonic wars,
which were much greater, relatively.
than those likely to result from this
war. were rapidly lightened by the de-
velopment of industry and their in
creasing powers of production, and this
is the hopeful prospect for all countries
after this war. Industry advances by
geometrical progression. one invention
leading to another. and one line Of in
dustry helping another.
The body Of the population in all of
the countries. on both sides Of the I'M
happy struggle, are people of debt
paying character. The desire to pay
their debts is bred in them, is a part of
them, and they are not going to sud-
denly change their character. There
may be differences among them over
the kind of taxation to be employed,
but there are the best of reasons for
believing that the debts will be cared
for.
Moreover, although this loan is with
out special security. or any agreement
as to priority, it stands in a class by
itself as special loan, negotiated in
friendly country, and again 1t is safe to
say that no one Of the contending ma
lions would allow such a loan to be
dishonored."
Financial Notes.
The streets are filled with rumors Of
steel consultations. officials of the
Youngstown. Ohio, Sheet and Tube
Company declared positively that they
were not considering any consolida-
ton. They discredit the report that
Lackawanna Steel. Pickands. Mather &
Co.. Cambria and their own company
are on the eve of amalgamation.
The average price of twenty-five rail- |
road bonds has advanced a point from
the low level of August.
The Southern Railway Company Is
reported to be benefiting by the better
conditions in the south. The compare
tive loss Of revenues in August was a
little over $4,000, as compared with
$493.584 in July and $4S8,840 in June.
Winchester Arms shares are worth,
in the market, about $4,000 a share.
Atchison promises to show material
improvement during the present fiscal
year. The first two months Of the
year. July and August, were nearly
record months. Excellent passenger
earnings, due largely to the expeditions.
and large freight traffic. crops, etc,
have greatly aided the old reliable