Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-06-26
ECONOMY URGED
UPON ENGLISH BY
LONDON BANKER
Necessity to Meet Financial
Problems Growing Out Of
War Pointed Out in Inter-
esting Letter to Press,

London. juno ia prominent
London banker In a Ions letter TO the
press, pleads for "a great national
wave OF public and private economy
IN England. such a campaign he
urges * necessary TO enable The ma
ton to meet successfully the financial
problems before IL In connection with
the war These problems are two-fold
first the raising OF sufficient inter-
nal loans tu meet the colossal war
expenditures, and second, the adjust
ment of the external balance sheet,
in other words, the payment Of other
nations for the enormous purchases
which England and her allies are
making and must make from them.
The trade balance" against Eng
land for the present year Is estimated
10y the writer at well over $4,000, 0Q0.-
GOO, This balance" he SAYS, VIII
have 20 be provided either by hor-
rowing largely In America, course
TO which there are serious difficulties
and objections, or by selling sufficient
American securities 10 cover the de-
sclt, or by sending gold. Any Of these
methods Is likely 10 prove difficult
business. but the necessity OF adopt
ing some way out is shown by the
rate OF exchange between the United
states and various European coun-
tries.
AS the balance ~ Indebtedness
grows. SO the exchange rates grow
more unfavorahle TO the country con-
cernod. ana so do It's imports cost
more ana more. For this reason, Rus
STA IL at this moment paying nearly
80 per cent over the normal price for
all her imports, Germany over 49,,
Austria 20 per cent italy 10 per cent,
France about 3 per cent, and Great
Britain about ! = per cent
Heavy Strain on Reserve.
so long as we export gold as free
" as the exchanges warrant IT, they
cannot, of course, go much more
against u.s. But il is necessary to rec
ognize that the maintenance of our
free gold market will certainly in-
volve a heavy strain on our gold RE
serve We are the only market left
from which gold can he obtained, and
While most of the gold newly-mined
comes here. we are Obliged owing to
| the pressure of our own and our al
! Hes imports to let much go. \ good
many millions have been exported In
the last two or three months, and
the flow continues. IL Is Of very great
4 importance to London as the worlds
financial center not only that our
I gold reserve should remain secure,
/ hut that We should not have to ahan-
/ don our traditional role as the
| worlds free gold market But the
more we import the greater our in-
/ dehtedness and the more difficult do
+ these two tasks become.
IN
to tho paramount necessity to oui
country pf economy such economy az
VI being practiced today by the Ger
/ man people we import nearly 300,-
000, 600 pounds worth year of food
about the same amount of raw mat
/ terials. and nearly 0,000,0 pounds
! OF manufactured articles. Evep
pounds worth Of food wasted. OF
meat petrol, rubber. tobacco, or any
other article which we can eeonomize
I unnecessarily consumed means a
pounds worth more import and d
pound more In the bill against us
+ We should import only absolute ne
/ ccssities and produce everything ir
1 this country that We possibly can. To
import what Is supcriluous means &c
reduce by so much the money avail
/ able for government loans, contrib
utes BY 50 much to the difficulty Of
/ keeping our gold reserve and system
I Of credit intact, and makes II BY so
much more expensive To obtain our
( vital supplies of munitions aud raw
materials,
Consumption Ia Increase.
'It must be remembered that ow'
ing 70 changed war conditions there
4 liz q great risk of our consumption