Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-06-21
AMERICA FIRST.


Wall Street bankers have placed
for the Russian Government a credit
Of 50,00O,0000 in this country. not
secured by collateralin the shape OF
good American securities If Russia
should 20 bankrupt the money win
be q total loss.
Under the caption Building Up
the Financial Power of the United
States" the Washington Post says in
its issue of june 10:
The importation of gold into the
UnitedStates continues, and it should
be encouraged.
The gathering by foreign govern
ments OF American securities held
abroad continues, and the purchase
by our own people of those offered
for sale here Is wise and should be
promoted.
The arranging of loans here for
foreign governments when secured
by collaterals of those securities is
sound finance, and we hope that
every dollar OF such securities will
come home through sale or as colla-
tcral.
II may be safe. it may be prudent,
It may be good business to place for
eign government securities here at
very low prices, provided the funds
loaned are expended in this country
in payment of commodities of origin
here and purchased here by foreign
| governments
But beyond that the investors of
the United States cannot with either
safety, prudence or wisdom go, in
view Of the rapid approach to ma
! tional bankruptcy of the belligerent
nations Of Europe. There is much
to indicate that all the American
securities which British and French
governments and nationals hold to-
day will not cover 40 days expendi-
ture Of those two nations.
Great Britain's expenditures are
exceeding $25.000,000 each day and
those of Franco are more than $17,-
! 600 900 each day. showing COM
bined expenditure Of those two ma
tiona of fully $42,000,000 day, and
in 40 days that would amount to up
ward of $1.600.00 900, and there
are not American securities held in
both those countries to that amount.
Reginald McKenna's recent move
for tax Of 2 shillings extra upon
every pound sterling of income
from those securities is positive
proof of tho extreme need of the
British government for such seeuri-
ties
We trust it gets all there are in
Great Britain and that they are
placed in this country; but after
they are so placed. after the govern
ment shall in 30 or 40 or even so
days expend the proceeds Of these se-
curites, then what means Will be
adopted to raise money to carry on
the war?
This country cannot furnish the
funds to carry on the war upon the
financial scale that IS the fashion
there today, and our bankers and
capitalists and our investors should
be very shy Of the paper of the
spendthrft and reckless nations
throughout the world.
Better Keep the money here to de-
yelop this continent, this republic,
than to be lamenting over inabaiity
Of the nations abroad to meet their
obligations.
Better keep our mills, our mines,
our shops, our factories well financed
than to have them looking in vain
for cash spent in paying destroying
armies and navies of Europe.
Better improve, expand and ex-
tend our own transportation facili-
! ties and invest in our railway Sc
! curities than to waste our financial
strength in foreign paper, subject TO
penalties OF war and dangers Of re-
pudiation.