The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-19

'Na'H fH FHF
What is the contrast Germany pre-
sents? Accepting the statements NJ
the Imperial Bank Of Germany NJ
their face value. hat institution on
January II held In gold the equivalent
- s523.565.0O0 and on June . It held
s595,0l0.0 600, an increase Of about
81 500, 900. Yet the notes ~ the
Re~ichshank are q now payable In
gold and Germany has made no set
Elements in gold by export except a
few millions which have hcen reported
in Dutch and scandinavian financial
journals to have been sent TO Amster-
dam and Copenhagen. She is credited
with large sales of her holdings Of
American securities. though some
financial Observers believe that she
vailed herself out Of these literally
prior to the outbreak Of the war.
There Is no practical reason why Ger
many, II she owes gold on balance to
the United States. could not ship II
To Holland or Sweden to displace an
equivalent In neutral country coin to
hP sent overseas to New York safe
from levy by British cruisers. IL the
international trade balance does not
stand against her. why are reichs-
marks everywhere at n discount, the
disagio In New York being about "A
per cent? Do not the circumstances
imply beyond question n depreciation
in German currency?
The gold proportion to the total
nots issue NJ the R~eichshank. accord
ing to Its statements. was 43a per
ccn on January II and about AZ pcr
cent OF June .. The pride with which
Germans point to this showing mus,
he tempered when they take into
account the Darlehenskasse or war
loan bank notes outstanding. which
have no gold cover, hut which never
thelcss perform the functions practi-
Cally Of the imperial bark notes. We
need say nothing Of the other wal
note issues. concerning which little
information Is available to an Ameri-
can. There is no official statement
of h notes Of the Dar'ehenskasse
now outstanding. The latest returns
were those Of the "Amerlcan Associa-
tion Of Commerce and Trade I'm Rer-
lin, which gave the total issue on De-
cemher 81 last ut about s132,O OO, 900.
Assuming that these have been re-
duced, let us see how tho gold hold-
lngs and currency issues Of Germany
and the United Kingdom compare. ac-
cording to the latest fun available
reports, using only round figures:
Note Gold PC
issue. cover. gold
Bank Of ENGLAND
notes .-.,,,.,.,. s3st. mn. Oo0 s.ot m 90 y
British Treas notes 21s e"ooO 10000 q e.
Total British . s6l200,oI sac oo0Ooo n
notes |. 329, Ooo.0O ~ 695. 90. 900 a.
War bank notes
estimated. ,,.... 10, 1000 ........
Total German q. 42?,c co,O 600 s595, 200 100 q
There Is probably no escape during
the war from Great Rritain's contin-
uing trade Indebtedness To the United
states. But II the persistent efforts
OF the Allies to break through the
to Constantinople meet
success, to the extent to which Rus
sian grain, petroleum and other prod
ucts a then flow out Of the Black
Sea will England and the Allies she
IL helping to finance he able to reduce
purchases OF like American COM
modities. To the extent to which war
munitions can then seek a quicker
route to Russia will the military prns.
poets OF the Allies he benefited, with
reflex action or their general condi-
tIons Of credit.
II would he premature to saw that
The present unparalleled conditions Of
foreign exchange markets can solve
themselves on strictly economic lines,
l'ut at the homer England is pouring
'ut gold 10 that end as freely az she
X pouring out the lives of her sons on
he battlefield, and It may yet prove
o he true that Rritain's credit Is as
to her foes as an army with
banners. JAMES q. II. UMsTEp.
New York, Juno II. |