The Washington herald., 1917-07-31
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the country's Best Newspapers.

When the attention of one of those
who have been Identified with very
large financing, especially since the
war began, was called to the report
from Washington, which stated that
there may be needed as much as $17,-
100000 to meet the expenses en-
tailed by the government in the fiscal
year which will end June 30, 1918, he
turned to a statement made by ]. =.
Morgan and company announcing that
Canada will place in the United States
a loan bearing approximately six per
cent interest and aggregating $1OO,OO0,-
900. This announcement was made on
the same day that Congress learned
that 81, ,000, 100000 must be paid by the
United States in the next twelve
months. The life OF this Canadian
loan is to be two years, but IL it
should be deemed expedient 1t un-
doubtedly can be renewed. This man
of finance regarded this international
! transaction as a sufficient answer to
those who are apprehensive lest the
United States should be rapidly get
ting into deep water. or should be
placing burdens upon the people which
they are unable to bear.
For II there were reasonable appre-
hension of this kind a small grouD
of bankers in New ork could not
have been persuaded to buy the Can
adian notes. A 100000, 900, it is true,
is a small amount in comparison with
$1,000. 100000. but it is sufficiently large
to demonstrate that those who are
leaders in the world OF finance are not
alarmed at the great figures presented
to Congress of the cost entailed by
our first years experience in the war,
although the figures are said to have
alarmed the Senate
The men of finance have been look
ing into the future, presumably with
the expectation that possibly as much
as 80 per cent Of the expenses en-
tailed by the war will be met by the
issutng of bonds. which will have
so many years to run that a part
OF the interest and all of the princi-
pal will be paid by the generations
which will succeed the one of today
This view into the future permits
some understanding of the magni-
tude of the resources of the United
States. not only as they are today,
but as they will be when there Is
excellent development Of them In
the future. Many of these resources
are almost untouched. They await
exploitation by capital and they rep
rcseut all departments of human ac-
tivity OF a material kind.
1t Is commonly believed by those
who have looked into the future that
| the population OF the United States
from twenty-five to thirty years
hence will be shown by the census
taker to be not far from a hundred
and nftv millions. For the most part
Of this population. or that proportion
Of II which is represented by men,
will be engaged in productive indus
try. 1t will furnish the material
by meaFs of which our agricultural
Industry will be vastly increased.
Not long before his death James J.
Hill said that the farmers of the
United States should be producing
crops which would bring to them at
| least SIS, 900, 10000 a year. He thought
that this would be done in time. but
1t would entail highly scientific farm
ing. diversified crops and adequate
transportation and distribution and
many farmers. Furthermore. it would
make inevitable the opening up to
l
land not yet approached by the farm
ers. Some OF 1t is to be made ready
for cultivation by irrigation. All of
it will ultimately be developed. This
is one of the resources Of the future
upon which the generations that are
to come will reasonably rely for means
wherewith to pay part of the inter-
est and all the principal upon the
debt incurred by the war expenses of
the United States.
At one time there was apprehen.
sion lest as a producer OF gold the
United States had already reached its
| highest possible peak, but recent eX-
perience in California and highly per-
feCted scientific methods of mining and
| extracting the ore in other parts of
the United States, as well as the GER
tainty OF Increase by and by in the
yearly production of gold in Alaska
have caused a change OF opinion so
that it is now believed that the years
are many before gold production in
the United States will fall each year
| below 100000. Recently the United
states gained pre-eminence as a silver
producer and that pre-eminence is sure
| TO be maintained for a long time. The
[ copper men are not only bringing
| from the bowels of the earth. in some
cases from great depths. many mill
lion pounds of copper, but they are
| confident that the years are not dis
tant when Alaska's resources in cop
per will contribute greatly to the
United States supply. Furthermore.
American capital is already invested
in large amounts in copper production
in South America and there is to
| be increased investment of American
capital in South American copper
properties. In fact, wonderful as has
been the recent development Of Amer
lean mineral properties, the presump-
tion is that resources not yet touch
ed are to be developed and to add
many millions to our yearly increase
| in wealth.
The recent development of hydro
electric power, especially that with
which James B. Duke is identified,
points to vast increase in this power
producing energy, not only in the
South but in all parts of the country
| where water power may be at reason
able cost converted into electric en-
ergy. The rows, so to speak, of COT
ton goods manufacturing plants in
the South, which are operated by
hydro-electric energy inevitably point
to a great increase in manufacture Oh
this kind. The American steel in
| dustry. enormous as that now has be-
come, Is to be perhaps the master in
| dustry of the world for the leaders in
that Industry have learned how to
approach and command the markets
of the world. The oil industry is from
one point of view almost at its be-
ginning for the opportunities for profit
making returns are increasing and
there are now in course Of perfecting