Gilpin observer., 1917-04-05
HOW FAR CAN WE cor

With state of war uron this
country, and with congress soon to
assemble to determine what pro-
vision, physically and financially
shall be, made to do whatever it may
be determined this county shall un-
dertake, estimates Of what apprcpri-
alton should be authorized by con-
gress vary from $1,000, 900, 900 up to
5000, 900, 900. This would. of course,
be merely beginning, fer no one
imagines, with war undertaken in
earnest, as it will have to be under
taken if entered into at all in an
active way, that anything like even
the larger of the amounts mentioned
would suffice for longer than a few
months. Then arises an inquiry as
to how far we could go in financing
a war.
When the Civil war was over it
was found that this country had
debt Of close Of $4,000 900 900. That
was more than fifty years ago. Since
then we have grown to be one of the
richest countries in the world, if in
deed since the European war broke
out, with the billicrs of debt these
countries have been piling up. we
have now today become the richest of
all nations. If we could create
debt of $4,000, 100000 fifty years ago,
how many times that much could we
ing it off as rapidly as We have raid
the Civil war obligations?
Under cur old banking system it
was considered that a reserve fund
of four times it's amount Under the
new system that ratio is raised to
about six to one. Then take our gold
stock alone, which at this time is
about $4,000, 900. 900, and we should
be able to finance war in which the
nation becomes vitally interested up
to not less than 100000, 900 900. This
does not touch any of the other re-
sources, open or hidden, CT the coun-
try and by no means represents the
limit of our financing credit.
What have we already done in the
way of war financing since 1914? Up
to March 1 we had financed foreign
loans to the extent of about $2,OOO,-
100000, and in addition bankers of
this country had loaned in the Len
don market. independent of war loans
approximately $1OO,OOO,OOO. OF the
war leans about $3.50. 900 have
been paid or refunded, leaving for
eign nations indebted to US ON obli-
gaticns contracted since 1914 of about
$2,4OOOo0 ,000.. Has any individual in
this country felt the strain of this
financing? Not in the least.
Great Britain owes In this country
$1.131, 10000 France $3.50. 500 900;
Russia, $123,5OO 900; Italy, s25,O0O.-
900; Canada, $2S7.725, 900; New
Foundland. $5,OOO,OOO; Germany, 1O.-
900, 900; Argentine, $S1,SOO. 900: other
Latin American countries s10S.97O.-
900; China, $s,OOOOOO, and neutral
countries of Europe, about $23, ,500,-
900. Every cent of this enormous
balance of debt incurred by what is
regarded by foremost bankers as ade-
quate security. There, therefore, is
nothing for us to worry abcut as to
the stability of the loans, and we are
left to consider only cur ability to
finance our own operations.
II we could successfully handle an
Indebtedness Of s3,000.OOO 900 fifty
years ago, when our national wealth
was but few billions of dollars.
there is no reason to doubt our abil-
ity now to finance ourselves to more
than ten times the amount OF the
Civil war debt and not feel the strain
as much, when cur present national
wealth is estimated as close to $780,
OOO.O0O,O 900. Therefore. if we have
not the army at hand for immediate
use in the war, we have. in addition
to the third best navy in the world,
financial resources that put all the
other countries engaged in the ter
uible strife abroad into The shade.
with the possible exception of Great
Britain alone. In the way of finan-
cial assistance, the United States can
| be depended on to go great way
, Cincinnati Enquirer.