The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-13
Other Forms Of Lending.

One OF the traditional WAYS to offset
large debit balances accruing In for
eign trade IL to get the creditor country
to absorb securities OF the debtor coun-
try. There has been talk OF arranging
n large or small British exterior loan
for fiotation in this country. despite the
difficulties which politics may lnterpose
and despite the provincialism which has
kept American investors from putting
any of their capital into foreign Sc
curities In the past. The fact that they
would now be buying into a war offers
another obstacle. but there Is every like
lihood that a substantial aggregate OF
funds will be forthcoming for the alb
sorption OF some kind OF British or
French public securities. perhaps Treas
ury notes running for a short term of
years. In this respect war munition
contractors could he Of great service
to the United States by agreeing to take
part payment IN some form OF foreign
obligation. They would increase 10y
that much the buying power OF the
our normal export staples and they
would tend TO promote an increase OF
orders for war supplies,
\ suggestion has been made that
something could he readily lone in the
way OF n provision Of bank credit Ia
two or three times the OF gold
which the borrowing u tries might be
able to deposit here. Operations Of the
sort have been conducted In London for
the AMI OF France II could be imi-
tated on this side. In all the discus
sions In dvanc of the present ~negotia-
tions the tendency OF banking talk has
been 10 favor "A secured a
Credit to a total OF many hundreds
OF millions OF dollars appears to he
easily pr~ocurable II Great Britain and
France car obtain. for collateral pur-
poses. satisfactory amounts OF American
and other foreign securities which have
bulked so large as items in their national
balanc sheets. Good South American
securities as we'll as securities OF other
lands outside the belligerent zone would
seem to be excellent collateral under
the circumstances in addition to such
Of our own securities as might he avail
able. The trade ties which American
business and banking are trying to make
with various countries would be
strengthened II their securities began
to make their introduction here through
the means of loans negotiated upon
them.
Opinion in the last few days seemed
to be that no one line of action would
be followed for "a correction az the de-
ranged foreign exchange market. Nor
COulu Any OPPOSITION lie 10 OPERATIONS
| which concluded "A composite OF various
lines OF action. Each OF these would
open up branches for further extension
of credit and contribute toward the es.
Establishment OF a real internationa
money market of many departments.
That the international financial nego'
tiattons will be followed with the closest
kind OF attention goes without saying
Very much OF vital concern to our pros
perity depends upon them, and when II
appears that satisfactory undertaking.
have been agreed upon 1t In a reasonable
conjecture that both general business
and the stock market will make an op'
timistic response. The underlying condi
tions OF our normal prosperity supper
such an inference. Nothing more mag
nifcent than last weeks crop report witt
its promise of bumper yields OF wheat
corn and oats and all the so-called minol
crops in proportion has ever been pub
lished at this season. August pig iro
production made a new high record ano
the steel industry Is working at capacity
Railroad earnings rave more thar
turned the cornell and heightened op
Grating efficiency promises better re
suits dn net revenues than have beef
seen for a long time past. Last. bu
not least, more gold was imported las
week to strengthen the foundations o
the credit structure which can be raise,
for the support OF general business ex
mansion.