Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-12-04
90 NnrldlIon luirh ncmndlt. Nn
OUR FINANCIAL DOCTORS
DIFFER.

DIFFER.
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distinct cleavage of opinion is
observable between the two great
groups Of American fiLanciers in
the matter Of further considerable
loans to the Allied Governments.
lhe group led by Messls. j p.
Morgan 4 Company argue apparent
ly along these lines The banks ot
this country have already loaned the
Allies immense sums OF money, ana
must continue these loans for two
reasons. They must continue to
finance the Allies to ultimate victory
in order to cover the sums advanced
them to date, and they must con-
tinue unlimited credit to the Allies
in order to secure the perpetuation
or our present war prosperity,
through continued orders and the
stabilization Of exchange rates. They
hold the influx Of gold to this coun-
try from London and Paris to be
an evil prophet or Initiation and in
stability.
The other, and, perhaps, more
influential group consists OF those
financiers who consider that we
have received from the war every
benefit within its gift to this coun-
try. II is this group that apparent
ly has obtained the ear Of the Federal
Reserve Board, whose warning was
issued ut the beginning Of the week
against ciscounting British treasury
bills and making further unsecured
loans 10 belligerent nations 1t
realizes, apparently, that the cause
of the Allies is lost, that Great Bril-
tain, Russia and France cannot win
the war, and that ii is unwise to send
good money to retrieve what may
perhaps turn out in the end to be
bad money. What we have already
advanced to the Allies will be more
easily repaid after the war is over
il Y not increased by other billions.
This group repudiates the Morgan
theory that the increase of the gold
supply Of this country is an evil in
itself With proper regulation,
such as the financial organization OF
the United States is now in posi-
tion to guarantee, the more gold we
receive the better for the Industrial
development Of the nation a gold
dollar IN the hand, too, is worth
great deal more than a whole bush
full of foreign treasury notes or un-
secured bonds.
This group has a vision, and it is
that Of America first. 1t is looking
ahead 1t can see beyond the period
of q single upheaval of the races to
the day Of reconstruction when it's
hone is that the United States shall
emerge from the dark valleys in
which it has been compelled for these
last eight and twenty months to
walk, into the sunshine OF perma-
nent prosperity, and become the
money market Of the world It ap-
preciateg tie present unbalanced
condition of American industries
II knows that during these years Of
war q very disnroportionate amount
OF capital has been attracted to in
dustrials doomed by war trade, and
away from the railways The re-
suit has been that permanent de-
velopments have been sacrificed to
those that are only temporary. When
the war is over we shall have on our
hands q thousand idle factories
where we should have had a thou
sand miles of lserviceahle roadbed
and track, and every day the war
goes on will add just SO much to the
evils Of this condition.
These financiers can see, too, that
the object OF Great Britain in pur-
chasing from us on credit is nothing
else than to continue London as the
worlds money market. 1t would be
Just as wholesome and profitable for
New York City to become this mar
l1et as it has been for London to en-
Joy its privileges Great Britain is
not going to retire from her posi-
tion OF leadership, however unless
| she is made to, but fortunately we
have the power to compel her retire
ment
The further financing Of the AL
lies means to these men three
things First, draining this country
Of capital necessary to its proper
! and even internal development;
second continuing a war each day Of
which only increases The degree Of
dislocation already hampering our
Industries; and third, Withholding
| the legitimate title or New York to
be the controller OF the money OF
the world. Underlying and predca-
ting all this is the possibility that
with the loss of the war by the All
lies great deal OF the money ad-
! yanced them by American banks
will be lost
The attitude of neither Of these
| grcupt Is based on personal SYM
pathles With one party to the Euro
/ pean struggle or tho other The
Morgan group is apparently out for
what it can get for itself from the
war, while the other group IL att
tempting to get as much from it as
| It can Cor America. AS financial
agents ror the Allies in this country
Messrs. Morgan x Company are re-
Yelling In the clover Of unlimited
commissions, and are not loaning
their own money or credit but that
Of tho American investor They stand
| TO lose nothing and to make hand
/ somely as long as the war goes an
and whichever side wins. Those for
ward looking financiers, however,
who have the welfare OF their coun-
try AZ heart could not be expected
to view the matter in the same light
or TO act along the same lines. Their
! program is one which places the in
terosts If America before those OF