Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-18
CITY TO SUBSCRIBE FOR
LARGE BLOCK OF BONDS
Local Bankers Receive Many In
Guirics About Public Participa-
ton in War Loan.
INDOORS" s5oo.ooo, 900 CREDIT
President i'airfnx Harrison, OF
Sout! crn Railway, Joins Promi-
neat Americans in Statement APP
proving Loan to Allies.

nv local b:mkc'" from residents Of
richmond and vicinity asking for In
f'rmat"u as TO participation by the
public in til" $4,000 900 Franco Brit
ish lonn. led leading bankers Yesterday
to predict that local investors will alb
sorb promptly the bonds that WILL be
offered for sale by Richmond in:tItu-
tons.
The fact that tho big loan was $780,
100000 ovcrsubsCribed. baEKers point
out. indicates the general feeling that
the credit viii prove popular in every
section OF the country. In Richmond
the bonds arc already on sale ut as At
tho per cent interest rate which an
plies TO these securities tho bonds arc
practically 1-2 per cent invest
mcnt. ORDERS for the bonds are being
filed by every bank i'm the city
FAIRFAN HARRISON JOINS
IN ENDORSEMENT OF LOAN
President Fairfax Harrison. of the
southern Hallway Company, Joined a
group of acknowledgements men last
night in signing n statement analyaing
the peculiar conditions which obtain in
this country ut present and which
make tho creation of the S5oo.O00.00O
credit extremely opportune from the
standpoint Of tho United States
The statement is signed by Daniel
Catlin. st. Louis, Mo-; Joseph II. Choate,
New York: Charles w. Eliot Cam
bridge. Mass: iioward Elliott. Boston:
Fairfax Harrison. Washington; Henry
l.. HiEginsor Boston: James J. Hill,
st. Paul, MINI: II. Il. Ledyard. De-
troit; Robert 7. Lincoln. Washington:
Franklin n. Locke. Buffalo: Seth Low,
New York: T.. i. Ripley, Chicago:
Theodore ~ Vail. Iyndonvillc. Vt, and
Henry Walters. Baltimore.
GIVE: REASONS WHY
LOAN Is .OPp0RTU NE:
The text of the statement follows:
NV. i,IS
toned to extend credits upon n large
scale. TO foreign countries, and many
people do not understand what such
credits mean TO the maintenance and
extension of our agricultural and COM
mercial interests. Each one of us who
signs this statement has been asked so
many times to express his opinion on
the subject that We have decided, in
this way, to place before the American
people our understanding Of the plain
facts in connection with the loan OF
$500. 900 to Great Britain and
France.
During normal times Great Britain
and France purcaas" from US every
year about s75o.0oo. 900 in farm prod
ucts and other commodities and we
buy heavily from them. Ordinarily the
payments by one country To the other
arc accomplished without the shipment
OF coin, the Indebtedness of one cuun-
try going to offset that of the other;
ing small balance, is coNc"ed by gold
shipments or otherwise.
Now. owing to the war, our pur-
chases from Great Britain and France
1uur two chief customers) have fallen
off. and their purchases from us have
Increased enormously. Thus, the total
trade balance III our favo: for the year
ended last June was over 81 900, 000, 900,
! of which Sa47, 100000. or over Ss per
| cent. WAS represented by the trade
balance against these two countries.
1t Is clearly impossible for these coun-
tries to continue to meet these heavy
balances through the ordinary chan
nels of international exchange. Such
heavy shipments OF gold as would be
required, for instance are not only
difficult, but in these days unwise to
undertake. Moreover. this country al
ready holds a stock OF gold larger than
it's imm cdiate uses require.
AMERICA MUST FINANCE
FAVORABLE TRADE MOVEMENT
America must. therefore. find So
luton OF the problem of financing for
time this favorable trade movement
! or else run tho risk of losing II 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 favorab bic terms the grain and
| other commodities they require. If
| these two great nations are obi ed
materially to decrease their purcha Ses
| from us. the rosult may he lower prices
| for our farm products. and less work
for our factories.
In other words. if we want these
countries to continue as our best Gus
| toners, and thus to bring increasing
! substance 10 our communities. we mus,
allow them to settle by some system
| of deferred payments for the comm obi
| tics they buy from us.
/ Il,
amount, is only two-thirds OF these
nations normal purchases from us each
year. is simply system of deferred
| payments. In other words, we are
| lending to Grca; Britain and France
! $500, 600. so that they may purchase
! from us things that we want to sell to
! them.
| NOT ONE DOLLAR WILL
LEAVE UNITED STATES
To the United States this loan means:
| FIRST. That not one dollar of the
] money loaned will leave our shores
Second. That every dollar will go.
directly or indirectly. to some Amer
| lean farmer working man. merchant
or manufactures, in cash payment for
| ioodstuffs. clothing. raw material. Ia
| Dor. and manufactured products that
tho English and French people need
! Third. That there Will be established
| IN this country commercial credit
/ Just as important 10 us as to England
! and France. because il will he used to
| increase our trade and permit the out
! flow OF our surplus products.
Fourth That this country recor-
| nizes that. In order 70 further Ameri-
| can trade, il must become n creditor
! nation giving credit to any solvent
and friendly nation that may he en-
| titled to 1t.
TWO RICHEST NATIONS
ARE SECURITY For LOAN
The security for this loan is the in
come and property of the two richest
nations OF Europe. The combined
wealth OF England and France is cs-
timnted at Sl35, 900. 00O. 000-a7O times
tho amount of this loan. The population
OF both countries is almost 5000. 900.
fhe proposed loan is practically the
only external obligation of tho two
nations: such n loan being, as We view
H. Il hrst claim upon the revenues and
"ealth OF tho nations issuing It,