New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-16

other countries, is held up by British
critic. as the surest proof Of Germanys
bankruptcy. II such test were true, not
only Russian currency, about which 1t
is not worth talking, but the currency
OF France, Italy-nay, as the Scandi-
navian exchange shows, even the Brit
ish currency is deprecated. This ar
gument could be pressed much further.
In August, 1914, S American dollars
had to be paid for the English SOW
ereign, the value OF which Is but az
dollars. What is the explanation? Was
America bankrupt? Was her currency
deprecated Was she suffering from
infation7 Nothing of the sort. What
did happen was this: At that time
America had to make heavy payments
in England and France. She could not
send goods and she could not send gold,
for communications were interrupted.
As she wanted to act the part of the
honest debtor, her merchants strove
madly 10 get hold Of sterling and franc
assets in the allied countries, with the
object Of liquidating their debts,
though their own assets were withheld
from them through the moratorium.
Nothing to Pay Out.
The commercial relations between
Germany and oversee countries are cut
at present. Germany cannot send goods
TO the United States, except by subma-
rines. She cannot get imports. Hap
pily for her. she is not indebted to
them. Her interned ships. it is true,
cost a certain amount Of money. Some
goods were bought in this country.
which had TO be paid for by Germany,
though they could not be shipped. The
marooned Germans get some support
from home. German loans have been
subscribed over here, and from time 10
time interest is due on them. Some pri-
vate credits have been opened for Ger
man firms; they have 20 be paid back
when they fall due. The regular obli-
cations Of Germany in this country
can scarcely average few million dol
lars. On the other hand, there are
quite considerable assets. There arc
German concerns in this country which
return payments regularly. Even now
a considerable amount OF American Sc
curities is held in Germany, paying
handsome dividends. Dividends from
South America are transmitted via the
United States. American residents IN
Germany get their remittances, pro-
vided the British government does not
intercept them. German charities, the
Red Cross and the Jewish charities
have transmitted large sums. Germans
living in this country have sent sup
port TO their relatives. Large sums go
20 Austria from the Austrian emil
grants they have been estimated at
SJU.UOU,UuO 10 ScUsVuviVuvs A"J 'SN"i'
ties have been sold, loans have been
subscribed. For notwithstanding all
efforts. the British censor cannot stop
the wireless. Broadly speaking, there
is not the slightest doubt that the bal
ance Of payments in America is IN
favor Of the Central Powers. The de-
mand for marks for direct American
consumption ought TO be much larger
than the demand for dollars for direct
German consumption. II that is the
case the mark ought to be at pre-
MUM. As it is, the mark is depre-
ciated. Four marks can be bought with
e5 cents in normal times; to-day they
can be had for 70 cents. Is that not
proof that America objects to marks
on account OF their heavy deprecla-
tom That is not the explanation.
America would not mind bit, whether
marks are deprecated or not, provided
she can pay her obligations in Ger
many with those marks.
IT GermdHy "hs nearly No
by the blockade as the Allies pretend
her to be no large demand for dollars
could exist, either directly or indi-
rectly. There would be no exports from
America to Germany and there could
be no important demand in Germany
for dollars. The dollar market in Ber-
lin and the mark market in New York
would be merely nominal markets, as
far as direct transactions are con-
cerned. That, no doubt, is true to some
degree. Transactions in marks in New
York are small. That Is one reason
why fluctuations are violent.
Through the Blockade
hloctade "a not cOmpl etc