Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-12-24
FINANCIAL HAPPENINGS
CALLED UNPARALLELED
French Expert Discusses Present
Conditions in American
Money Market.
CREDITOR OF ALL NATIONS
Greater Importation OF Cold, IL Is
Declared, Would BE Source OF
Trouble. II Not a Positive Danger
for the Country.


for the Country.
From it's exclusive news service in
Paris the international News Service
received to-day the following article
by q. Dcbaronc. the noted French
'inHucal expert. NJ. b"haron. Is rec
ognizcd as one Of T.. leading authori
tics on fnanco. not only in France. but
Throughout Europe. Since the outbreak
Of til" war lac repeatedly has attracted
The attention of American nnancicrs
because Of his siurularly clcar-siyhted
and enlightened articles on the fnnn-
rial status of this country resulting
from tn" world conflict
pi q. DEH\I,ONE.
'c"pyright. 1916. by International
News Service.
The things that ar" happening in
III" American, money market Il, pres
"it are wiihou, parallel ia IN. Nnau.
ciai history ~ the world The United
states has become tho creditor OF all
tn" countries Tiis has occurred in
French hiH,"rv. nut only ,r,dially
tn" transformation spreading over
tnnny years. 1t ha- happened with
lightning rnpidity In America
Hcfor" lii. war tho American mark ct
Vas greatly i'm Europc's debt now IL
* much NOR" 50 tn" creditor and for
some time 10 come this state OF things
VIII b"Com" ac"entu:tcd
II ~ the speed Of this t-arsforna-
ton of American money market con-
dtiouS that has greatly enriched the
country. that has cnuscd = kind Of
"risis. TN TO n",v the UnitoI state.
IA" always needed EuroDcau capital
ana the" existed N" sci Of circum-
"nnc"s "nab.nr IT TO adapt itself
readily to u complete change Of role
from that "f borrower to lender. The
financial habits cf the country have
not been abb. 10 change a. ranid,v az
IN" situation has changed nor have
th"y b"con" adapted to tho u.w con-
"l'lons Hence present evils
WILL ADAPT ITSELF
no THESE CONDITIONS
fu'. by ih' very ra,ur" o. things.
Hin"r'ca Will ad%pt itself to these CON
diilons as most other countries have
Zone m their time" Americans 10 no:
Sc" very cl"afly just Hhat this ad.ptn-
''on 10 III" position OF leader cursiS, q
OF. and That l. what worries them
ih"E imagine that their country is dif-
teFeht from the biz countries ri Flu
roo" But this difference arises SOLELY
from I'll" special conditions in which
America i no" placed. Economic laws
10 not change with longitud. and the
"No!ui Tor %! tho country viii incyitahI,.
i"iiow Upon III" Introduction and de-
Nc!opiHcnt of tho market conditions
~ We want L. know villa. will he the
hnrncIa! tu.ur. OF the United states We
nave only to tax" account OF what has
h"ppened IN Europe IN tie past.
Americans are asking themselves
what. after the war. they Will keen
81 the gold we shall have sent them
They will retain just the quantity ,b.y
WI! need for their own circulation.
th"E VIII keep no more. Not the sole
reason for this il that Il is "A bar
nHrous ana Improbable practice 10
transform ones wealth into gold and
leave 1t IN that form. \ private ner-
son may do this. but a country can
not, because tn" superahundance Of
money tokens resulting from an OK
cess "' gold would SO depress interes.
'"'rS 'hht capital would seek employ
""nt At better terms abroad
ADOPT METHOD
no CONSOLIDATE CREDIT
IT is because Of this fact tina, coun-
'r'"s that are growing rich.-that is.
mat arc every year creditors OF other
nations through their trade balance
ar" compelled to consolidate their
credi,s by buying foreign securities.
Before the war, France had in 10.
francs worth "f foreign securities vet
frchch capitalists are not particularly
chterprising or anxious to place their
money In distant parts. The fact is
II was absolutely necessary for France
10 place her surplus wealth abroad
What Franco has done. The 1-nit.d
states VIII also have TO do
America has reached "A point wher.
= greater importation OF gold wos!d
h"come source Of trouble. if no, A
poSitINc danger for the country
On our market prior to the war
a
almost automatically adjusted through
the lowering of interest rates stinu-
Eating our purchases OF foreign securi-
Ties. At the present moment the
problem cannot be solved so easily
Events are tumbl!ng over one another
and the ordinary factors have no time
TO enter their influence
ONE MEANS TO STOP
INFLATED GOLD IMPORTS
To stop inflated gold imports there
Is only one means. cease to ask Eu-
ropean debtors for cash payments for
what they buy and either open credits
for them or allow them TO pay with
STOCKS. lf this system is not adopted
" the American market is not kent
open more widely to allied loans the
United states either must go on re-
ccivtng gold or cease exporting to Eu-
rope.
j" any case, no matter what their
resources may be. the allies cannot
pay entirely in gold for the enormous
purchases they are making in Ameri-
ca. Formerly Europe was in a similar
position in regard to America. fur
nishing for many years the money ne
ccssary for its development. Now the
roles are reversed. But the guaran-
tees which nations like France and
England are able TO supply do not con-
sist merely OF their productive
strength, hut also OF their acquired
wealth. These guarantees are so