The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-10-18
Paper Given Last Night For
Publication By Thomas B.
McAdams. Of This City
NO MONEY WILL LEAVE
UNCLE SANS SHORES
Commercial Credit Established
in This Country to Be Used
in Increasing Trade-Secur-
ity Absolute

ThouzaA.B. McAdAms wce-presi-
dent and cashier OF the American Ma
ttonal Bank. last night made public
the appended statement explaining
what, In the opinion OF thirteen who
sdgned the document, the Anglo
French loan means TO the United
States.
The statement sets forth that the
security Is absolute and that the
United 6fAkes b lending Great Brit
ain and France $500. 100000 so that
that countries may purchase from Va
things that No want to sell them. Tho
loan means that not ono dollar OF the
money will leave Uncle Sans shores;
that soma American. directly or mol
rectly, will como into possession 0,
the money in cash payment for goods
sold; THAI a commercial credit Will
be esta biished in this country that VIII
he used in increasing our trade ana
permit the outflow of our surplus
products and that this country recos-
ntzes that in order to further Aneri-
can trade It must become creditor
nation.
This country has not been accustomed
TO extend credits. upon b large scale,
TO foreign countries. and many people
do not understand what such credits
mean to the maintenance and extension
OF our agricultural and commercial IN
terests Each one OF us who signs this
statement has been asked 80 many
times to express his opinion on tho
subject that we have decided In this
way to place before the American peo-
pie our understanding on the plain
facts In connection with in the loan of
Ave hundred million dollars to Great
Britain and France.
During normal times Great Britain
and France purchase from US every
year about seven hundred and ffffy mil
lion dollars in farm products and other
commodities and We buy heavily from
them Ordinarily the payments by one
country to the other are accomplished
without the shipment OF coin. the In
dehtedness OF one country going to
Offset that of the other. and the dit
ference, usually constituting small
balance IL covered by gold shipments
or otherwise
Now. owing to the war. our pur-
chases from Great Britain and France
yaur two chief customersl have fallen
Off, and their purchases from us have
Increased enormously. Thus the total
trade balance in our favor for the year
ended last June was over one billion
dollars. OF which $4,000. 600. or over
Sc per cent was represented by the
trade balance against these two coun-
tries. It is clearly impossible for these
countries to continue to meet these
heavy balances through the ordinary
channels of international exchange.
Such heavy shipments OF gold. as would
be required for instance, are not only
dificult. but In these days unwise to
undertake. Moreover. this country al
ready holds stock Of gold larger
than Its immediate uses require,
America must therefore find a solu-
tion OF the problem OF financing for
% vr.~v Ant
or else run the risk Of losing large
part Of Its export business. for the
United States appears to be by no
means the only country In the world
where Great Britain and France can
buy on favorable terms. the grain and
other commodities they require. II
these two great nations are obliged
materially to decrease their purchae es
from US. the result may be lower prices
for our farm products. and less work
for our factories.
In other words, X We want these coun-
tries to continue A. our best customers
and thus to bring Increasing substance
to our communities we must allow them
to settle by some system Of deferred
payments for the commodities they buy
from w.
This loan therefore, which Ia total
amount. IL only two-thirds Of these ma
lions normal purchatss from M each
year IL simply q syAtem Of deferred
payments. In other words. We are lend
Ing TO Great Britain and France hve
hundred million dollars, 30 that they
may purchase from us things that we
want TO sell them.
To the United States this loan
means:
l. That not one dollar OF vle money
loaned will leave our shores:
e. That every dollar will go. direct
~ or indirectly. to some American
farmer. working man, merchant, or
manufacturer, in each payment for
foodstuffs. clothing labor. and manu-
featured products that the English and
French people need
3. That there will be established in
this country commercial credit Just
a. important to us as to England and
France because 1t will be used to in
crease our trade and permit the out
flow OF our surplus products.
a. That this country finally recoE-
rizes that. In order to further Amerl-
can trad conn. "A creditor
.ntion. giving credit TO any solvent
and friendly ..at.on may be entitled to
it. The security for this loan is tho
income and property OF the two ricl-
est nations of Europe The combined
wealth of England and France is esti-
mated at one and thirty-five billion
dollars, two hundred and seventy
times the amount OF this loan. The
population of the two countries Is al
most one hundred millions The pro-
posed loan Is practically the only cx-
ternai obligation OF the two nations;
such a loan being. as we view it,
hrst claim upon the revenues and
wealth OF the nations issuing It,
The total internal debt OF the two
nations 10 considerably under twenty
billions of dollars and, 10 less than one
fContinu~d on Third PAee.l