The Washington herald., 1917-01-14
Strength of Great Britain.

Strength of Great Britain.
Fourth: Resources of Great Britain
and France.-It would seem almost un-
necessary. frightfu! as is the daily cost
to them Of the present war, to debate
the resources OF these great nations. II
we stop TO think of i for moment, we
shall realize that countries which en-
gage chiefly in agriculture cannot in
these modern days. carry on an extern
sive foreign war for a long period. The
secret OF strength lies in the ability OF
nation to maintsin its army largely
through the export Of its manufactures.
And II is startling TO note that. in spite
OF their stupendous mobilization OF men
and industries. Great Britain's exports
to the United States alone gained So
Oc0,OoO in 1916 as compared with 1915.
and Frances sales to us increased S25.-
10000. While carrying on a gigantic
war, these countries are still able to
keep up their profitable foreign trade
The income of the people OF Great Brit
ain and Ireland Cquitc aside from any
aid which the colonies misht render) is
estimated at over $1,000 nOl 600 annu-
ally; that OF France at something over
SO, 900, coo, 900. Our total loans to these
nations aggregate little over s.. 80. .0OO. 900,
II as much as that. But assume that
America found 1t wise to extend a total
credit OF IS, 900. O00.o 900 with interest at not
below per cent. Then the total annual
interest charge Of. say $3.50 900. 900. would
be only a little over one-half Of l per
cent of the annual income OF these two
people. Vet the power OF the govern
ments to tax their people for admins
tration and interest is shown by the fact
that the government income of Great
Britain alone is figured for this year at
s.. 500. 100000, a sum forty times as large
as the entire annual interest upon Great
Britain's and Frances total debt TO US
today.
Nations Safe Risk.
The brief data that l have just given
ought to be sufficient to indicate the
safety OF any external obligation of these
countries. For, as has been many times
pointed out, the external debt of a coun-
try like Great Britain is, in effect, a first
mortgage upon her wealth and resources.
This principle has been repeatedly recog-
nized. We must also recognize that we
cannot measure the earning power of a
country in precisely the same way that
We can prove the earning power OF a
railroad, or of private corporation In
extending credit to countries such as
the great European nations, We are bound
to consider the character Of the people
sentiment. If you please-but more cor
recty good will. Statistical proofs of the
solvency Of these countries based on their
tangible wealth and revenue. are inter
esting and important; but they are really
Insignificant as compared with the in
calculable value Of the good will of the
British and the French people all over
the commercial world. 1t must be clear
that the people of these countries will
stop at no sacrifice TO keep intact the
greatest Of all commercial assets. Excel
lent testimony was given on this point
over a century ago by that most German
OF Germans, Frederick the Great, who
said: Among all the nations ef Europe
the English nation is the wealthiest. Its
trade embraces the globe. Its capital is
incredibly large. its resources are al
most ine3ha austible."
That, mind you, was one hundred years
ago. when Englsnd's resources, as com
pared with today's, were Insignificant
should Encourage Trade.
Fifth-The Necessity for Prudence
Nothing can be more commendable
at time when business is expanding
rapidly, than to urge caution upon
both our banks and private investors.
The aim of every prudent banker is
to maintain his institution in sound
and liquid condition. to be prepared
for unforeseen contingencies. Such a
policy is invariably the mark of every
sound bank and banker. But IL is also
q daty Of the wise banker to encosr-