The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-07-26
SOME FINANCIAL
INTERPRETATIONS
!;
American Finaneiers Wondering
How Some Of the HeIIiserents
Are Going to Pay for
War Supplies.
RUN INTO THE BILLIONS
Mexican and German Relations
Cause Stocks to FIuctuate-
Changed Daily Conditions
Expected.

NEW YORK, July 24.--How will
some of the belligerents pay for the
enormous war supplies bought In the
United States? This is the problem
of the future in American financial
Icircles. Orders thus far received al
ready aggregate over one billion dol
liars, and hundreds Of millions more
!are practically sure to follow; FOR
peace is not yet in sight. and the war
has by no means reached it's greatest
intensity. Prognosticctions ere futile;
yet it is more than probable that the
problem of financing the war has nor
reached the real crisis or test, and an
| increasing waste of lifo and property
must be expected as the struggle
igrows in bitterness and destructive
ness. 1t goes without saying that
some of the warning nations who are
directly or Indirectly purchasing war
materials here can not pay cash to
any extent, because they are evidently
spending several times their national
savings in prosecution of the war.
Treasury notes can only be used to d
limited extent, and long term credit
obligations will he the onl. basis on
because an indefinite period mist
elapse before Europe can again send
JUS sufficient merchandise or gold to
even approximately balance our ex-
ports. Gold we do not absolutely
need. and Europe cannot spare It III
large enough amounts. Thus far,
Europe has returned US between four
ito five hundred millions of our secur-
titles; but European Indebtedness to
American manufacturers will increase
on an enormous scale during the next
six months, and the foreign exchange
situation will be one demanding the
highest skill and resourcefulness for
solution. Foreign holders, especially
British, seem unwilling to part with
their American investments. 1t would
seem, however, as If partial solution
will be the sendtng back to this COM
try of still larger portion of their
holdings in America. The Canadian
$45, 100000 5 FER cent loan, which will
probably be promptly subscribed, will
also help the situation
The United States is the only i'm.
portant nation in the world that Is
now accommodating capital from Us
ivestment market In the world, since
all the great powers OF Europe are
pouring their savings and energies in
ito the wretched melting pot of war
There are no indications, however, AZ
yet, Of American disposition to bug
foreign government bonds with any
freedom. A fair amount might be
absorbed by institutions and trust
funds here. especially II terms were
made still more attractive; but the
amount would be relatively small when
compared with the many billions al
ready issued abroad. II. then. Ameri
lean manufacturers are to continue ac.
lcepting munition contracts, some very
extensive credits will have to be ar
ranged for by American bankers; and
these credits or short term obliga.
Itions, whatever they may be, will
Eventually have to be extended OF
turned into fixed debt in some form
lit is well, therefore, to keep in mind
as to what would be the effect Of this
Immense macs of foreign credits upoT1
American finances. especially in view