Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-04-06
THE AMERICAN SECURITIES ARE
GILT-EDGED.
From Yesterdays washington Post

GILT-EDGED.
From yesterdays Washington Post
1t is quite won understood that
linanciers and investment brokers
who receive bonuses and commits
sions through placement Of foreign
loans are naturally very desirous Of
finding purchasers for such securi-
ties.
lt rs also an effective public per-
suader in new purchases IL former
issues of such securities can be made
to advance in price Immediately pre-
cccing thc Offering TO the public Of
subsequent issues.
SO far as the financial agents Of
the allies can prepare the way for
tho launching OF new issue Of Brit
ish and French bonds upon the mar
kots of this country ii has been care
fully arranged upon the usual lines
OF such transactions, but it is advis-
aOlc, very advisable, for American
capitalists, American investors, to
heed facts rather more than financial
prospeciuses issued or TO be issued
for the very purpose Of facilitating
sales
While this very week financial
Authorities Ia this country usually
reliable have issued statements as to
British expenditures at this time be-
ing at the rate OF $1,000, O,000,0 600 per
annum and tho French expenditures
at The rate Of $4,000, ,00O0 per
annum, it has been well known by
those keeping watch Of such financial
affairs that for many months they
have been at far greater rate in the
cage Of each country
III American capitalists and inves-
tors arc TO be asked to buy the se-
curities OF any nation they are en-
titled to, and should have. the actual
facts. Yesterday in the house OF
commons Chancellor Of the Ex-
cheQucr McKcnna stated that while
tho British debt at the beginning Of
the war was Approximately S3,5OO,-
100000. yet at this time it has
reached tho enormous amount OF
$1l 700. 100000. and that IL the war
lasts another year Great Britain will
spend in that time S9,125.O00, 900
additional.
lie stated that Great Britain is
spending $25,OOO,O00 daily for war
purposes, and in this statement the
chancellor simply confirms the state
ments OF Premier Asquith and Lloyd
George made three months ago.
twenty-five million dollars day
means $75O,000, 600 for every 80
days. and it results in the more than
$9 0,00O,O0O per annum, as the
chancellor states, and that IS S4,-
0O0, ,OoO. 900. or so per cent, greater
than given in the financial statement
issued this month in the United
states
Tic statement as to Frances
spending but St.4000O0.000 per
annum IS equally erroneous. and The
error Is in the same direction.
France Is spending according to
data chat may be regarded as official,
Nlly 100000 day. nearly
$500. 100000 2 month or S6,0OO-
600. 000 per annum, and the debt OF
France to start with at the begin
ming of the war was nearly double
that OF Great Britain.
The interest alone on the British
dobt today Is close TO $500, 100000
per annum, and II the war lasts am
other year IL viii be very noarly
double that amount. and while
Rudyard kipling's suggestion that
tho people, finding themselves un-
able 70 pay. win repudiate their
natural debt cannot be accepted By
any person who knows the British
people. yet Great Britain rich as she
was when the war started. is billions
OF dollars poorer today than then
and viii grow poorer and less able
to pay with every day the war lasts
Great Britain and France have
mohilized American securities and
desire to obtain loans upon them or
to sell them.
Our capitalists and investors can
find no better Investments no better
collateral than these securities. Brit
ish and French securities arc subject
to all the uncertainties Of the war.