The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-01-06

" He financial resources of the
Allies nave been selected as the
Il subject of thus article because
the recent statement OF the Federal
Reserve Board in regard to the pur-
chase of foreign loans by our banks
has been misunderstood by many as
d reflection on the credit Of the bor-
rowing governments
This is not the case. but the result
nevertheless has been slight decline
in the market price of the Allied OBJ
legations already held here, an aband-
onment of all efforts to Goat further
loans in this country. and a cessation
tn the demand for many of the things
that the Entente Powers were prsvI-
ousIy buying of US.
Ky many 1t seems to be assumed
that we have determined to deny
further credit to the Allies. and as
this pulley. II persisted In. may have
port-ntous consequences for US and
for civilization. it Is most important
that we should understand the uues-
TONS involved In all their aspects.
should the German overtures for
peace be rejected. as seems probable,
and the war go on for another two
years. the final issue will be largely
dependent upon the financial support
that shall be accorded 10 Great
britain and her Allies in this country.
IT we are cnutent that a trium-
plant Germany should menace the
worlds peace and our own independ-
ence until we are drawn into the next
war for the protection of our Ma
tIOnaI life and the preservation of
international law. then we may be
Consistent though short-sighted. In
Insisting upon a C. o. d. policy in our
further dealings with Great Britain
and her Allies.
II. on the other hand. we value
the Government under which we live
ana desire to preserve for our pos
Ierity the opportunities that 1t af-
lords then we must do what we can
with the money power that we now
possess to protect it from the ambi-
tious of those
Whose game Is empires and whose
stakes are thrones.
Whose table earth. whose dice ara
human bones"
ert this money power is by lending
II. and while most well-Informsd IL
nanciers are entirely confident that
such loans to almost any amount
would be good. the public generally
are In doubt concerning the ade-
auacy of the resources that are be-
hind them
1t Is to dIssipate that doubt that
this article is written.
In dealing with the subject An eff
fort will be made to avoid over
weighing the discussion with figure,
or statistics In almost his last pub
lie utterance the late Pierpont MOr
gan SAID that he had more regarC
for cha raster than for wealth
basis of credit. and 1t is In the ligh
of this statement that the right o
the Allied Powers TO ask and recetv,
credit from US will be chiefly con
siosrsd.
while what is called the "Eationa
wealth of a borrowing communit!
should not be wholly disregarded ii
determining the value OF its obliga
,tons IL IS to be remembered that tn,
rsvenue 10 be derived from this wealth
Ia almost entirely dependent upon tn,
character Industry. and -esourceful
ness. of the people who possess II
The National wealth of the United
States Is to-day estimated at abou
,1xo hundred and nifty billions of dol
lars In 1850 II was estimated at only
.aven Billions TINS is an increa -
Of about thirty-si> hundred per cent
II, the Same interval our population
h.. Increased from 23.lsl.s7e 70 atou