The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-02
Hopeful Signs Of the Times.

ging financial and business conditions
than the aspects which the published
tables of foreign exchange market
quotations are assuming. Formerly as
Il matter Of financial routine money
market reports always quoted the
price of the pound sterling. the frame
and the relchsmark. This was be.
cause we were always owing money
in those measures of value. and drafts
on London. Paris and Berlin were
good to settle our debts anywhere In
the world. 1t was always possible to
obtain price here for other none
tary units, but only on application to
dealers in foreign exchange.
Now as matter Of course and
necessity the prices OF rubles AMI
mireis, Of pesos and drnchmas, of
forms and guilders, of taels. yen AMI
rupees are getting regularly into print
This is because the whole world Is
owing us money and wants to owe us
more. Drafts on New York have be-
come the medium for settling inter-
national balances. The good Amerl-
can dollar was never in such high
favor as now.
A debtor nation we have been called
because perhaps five billion dollars OF
our securities have been lodged in
foreign hands by gradual accumula-
ton in the last generation or 80. What
does that signify? Europe. our chief
creditor according to this manner of
reckoning, has shown no disposition
to call in its funds through the urgent
liquidation Of American investments
since the early days of the panic at
tending the wars outbreak.
A flow Of our securities back to our
shores has been going on and contin-
ues. but 1t is a trickling stream COM
pared with the apprehensive antici-
pa tons of six months ago. The for
eign holders Of our stocks, bonds and
corporate notes evince increasing re-
luctance to part with them.
II the Europeans who have money
invested in the United States would
only return more freely the securities
which represent the investment, the
foreign exchanges, which are too
much in our favor, would be to some
extent corrected.
Wall Street has been raising its
bid for securities without attracting
any propcrtionate increase Of foreign
offerings. As result In order 10
enable belligerent and neutral nations
in their present difficulties to make
temporary settlements of the obliga-
lions incurred in the purchase OF
American goods and commodities and
90 on buying. our bankers have had
to set about doing things which fur
I nish evidence that our debtor status Is
more or less of a misnomer. We are
/ the richest nation in the world. In
/ the war crisis abroad we are just
| finding out what this means. We are
/ learning that we have facilities, both
old and new. for making our vast re
sources of capital available for the
worlds uses and far more available
! for our own requirements than they
have ever been. Our bankers under
the compulsion of circumstances arc
learning how to employ these facili
ties In world as well as in domesti,
a.. Is hr ~
lions are now being effected as the IN
dertaking to place with American in
vestors SJ0,OOO.uUU of one year > pei
cent. French Urea ury bonds and VIII!
the French loan, which Is only th'
successor of more experimental trans
actions. will he followed by still Larger
undertakings in the foreign field.
Washington no longer stands as M
obstacle in the way of financial enter
prise. which means the maintenance,
of American trade in the world mar
kets, with It's corolary Of stimulatin:
influences for domestic business ex
pansion. We have all been learnin.
in this war, and politics too has beer
receiving an education. Among othe
things 1t has come to perceive tina
trade follows the loan. and from thu
new attitude of Washington 1t cal
be inferred that public subscription
will not be lacking for the foreign
Government securities which on
bankers contract to take au,
distribute.
Germany before the war was on
of the great debtor nations Of tn
world. At the same time it was Al
investor in all lands and the export
OF German capital were identical witt
the marvellous spread of Germany
foreign commerce. For the first tim
in our history we are proceeding T.
establish real foreign trade in tn
only way that foreign trade can b
permanently made and kept
The credit which we will give othe
lands. the capital we will supply, vii
assure US of steady markets to whlc
we have hitherto never had NOR
| r.. H..