The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1916-08-12

New York, August 11--one of the
leading financial authorities of Great
Britain stated few days ago that pos
sibly England would not import as
much from the United States in the
year 1916 as she did in the fiscal year
which ended on June 80 last. In any
event, however, her imports from the
United States must be large, he assert
ed, and, as It would not be expedient
to spare much more gold, these must
be paid for in securities which the
United States seems abundantly able
to absorbe and willing to take.
| Whether or not England buys as
many commodities in the United States
within the next IL months as she did
in the past year there are some indica-
tons that she is in negotiation, per-
haps in the preliminary steps. with a
view of securing in the United States a
large credit. The use to which this
credit will be put are undoubtedly pay
ments for commodities bought in the
United States.
Securities to Pay For Purchases
There is a vague report that IL this
credit is negotiated il will be done up
on the same highly artificial basis of
which the recent loan of approximate
ly $1OO,O0O,OOO to France is an exam
ple--namely, by side deposit of Sc
curities upon which an American bank
will issue its own notes.
1t appears to be established already
that the large credit to France is to be
used solely to pay for commodities
that France will continue to buy in
this country For It seems to be the
common opinion that the unparalleled
trade balance in favor of the United
States, considerably in excess of 81
600, 100000, has already been paid;
therefore the French loan and the con-
English loan have been and
are to be made solely for the purpose
of paying for commodities which are
to be bought or delivered or both,
within the next IL months.
Imports Value Increases
In the financial district careful study
has been given to the official state
ment made in Washington of the total
value of the exports which represent
the international trade of the united
States for the - months which ended
on June 30. One of the first comments
made after a study of these figures is
based upon the increase of imports
The money value of this increase, as
with the previous record,
made in the fiscal year which ended on
June 30, 1915, is somewhat in excess
o. $5OO,OOO,OO
Some have argued that this clearly
points 10 an earnest effort which will
be made by the nations now engaged
in war to dump upon the United States
vast amounts of commodities after the
war is ended. But the best judgment
is that this increase of imports is a
favorable feature. Much of the in
crease represents commodities of
which American manufacturers are
in need and which, from that point of
view, are considered as raw material
They make it possible for the manu-
lecturers to fill their orders. The fact
that nearly 20 per cent of these COM
comes in free under the tariff |
Is of no special consequence The
are needed and the great |
art of them are of a kind which the
United States does not produce.
BY and by, when there is renewed
-ariff discussion. II may be claimed
hat II there were adequate protection |
as, for instance, in the instance OF
potash and dyestuffs-the United
States would produce thes commodi-
lies. That. however, is regarded as
not to the point in the consideration
Of our foreign trade for the fiscal year
Just ended.
Imports Should Balance Exports
1t also is said that an increase of
imports makes 1t all the easier for
'ther nations to liquidate their trade
balances created in favor of the Unit
ID States. And 1t is sometime said
hat ideal International trade condi-
ions will not be established until i'm
ports substantially pay for exports