The Washington herald., 1917-01-14

we are naturally anxious to preserve for
the years after the war.
Further, II, by denying reasonable
credit to our customers. we should con-
tinue to insist upon payment for our goods
In gold, we might conceivably attain the
position anciently held by Spain and
Portugal; we might. to be sure, have a
great superabundance Of gold, but at the
same time arrive at a point where our
exports should have suffered a great de-
clne-a falling OF almost inevitable II we
deliberately discourage our best custom
ers from buying of us. II. on the other
hand, We shall invest reasonable por-
ton OF our resources in credits to cur
customers. we shall put sslutary check
on speculation and infiauorr Further
more, by extending credit We shall, in
effect, be making repayment for our fu-
ture imports. ] think none will venture
TO deny that we shall want large guam
titles of Europe's goods after the war
Many also will concur in the view that
if-with an excess supply Of gold-we run
into a period here Of STedit imitation and
steadily rising prices, Europe viii be slim
ulated to sell in our markets more goods
than we want. 1t must be plain, on the
other hand, that, by holding a large
amount of Europe's pronlises-to-pay,
America will be able to keep a measure
bly, strong control over the whole situa-
ton. just as Great Britain and France
have for years been wont to do. II may
be significant TO note here that the i'm
ports of the United States from Great
Britain in 1916 were s13,ooO,OoO greater than
in 1913.
War Changes America.
Third: Changing America from Debtor
TO Creditor Nstion-The Great commercial
strength for a century past Of Great
Britain, and in only lesser degree OF
France and the command that they have
had over the exchanges OF the world,
have been due (as has already been point
cd ouO not simply 70 the natural re-
sources and successful industries of those
countries, but largely to the fact that
they have been creditor nations. The
world has for generations been paying
them large sums in interest America, on
the other hand. has been borrowing
not a lending-nation. But the war has
brought about great changes and has
hastened the possibility OF even more
This country now, as ii would appear
has the opportunity 10 achieve. probably
by the end OF the war. a complete re'
versal Of its position, and to become &
leading creditor nation. By reason OF
the fact that international trade is nov
upon such a vastly heavier scale than
ever before, we have had the opportun-
Ity Of securing within a brief space oi
three years, a credit position much sim
liar to that which Great Britain and
France took generations in the building
AT any rate, il is not too much to say
that this country has the chance to re-
verse it's international credit position by
ten billions OF dollars: that is, to wipe
out practically fits old debt abroad OF
five or six billion dollars and. in addition
TO hold the sound promises-to-pay OF its
foreign customers to an equal amount
But TO bring about in three or fvt
years such a change. which in normal
times could hardly have been accom-
plished in a half century OF active in
dustry and trade, America must be broad
and farsighted. ! am no better qualified
than anyone else TO preach this doctrine
But the fact itself must be evident: II
America deems il unwise to give her
customers time in which 10 pay their
bills, II she considers them unworthy OF
her credit, II she prefers to have her
prosperity begin to halt and fail then
she must abandon thought Of becoming
the trade and financial market place OF
the world. II is certain that IL we de-
eide that We can get along without tne
worlds trade, we shall find the world
agreeing with US.