New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-01-01

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them.
An Economic Errand
Foreshortened
In two years our economic prog
ress has been foreshortened by at
least twenty. In two decades, with
great industry, we might have ar
rived at the point where we find our
selves at the end of 1916, videlicet;
With nearly one-half of the
worlds whole stock Of money gold
in our possession;
With upward of s1,5OO,O00,000 Of
the American railway and industrial
securities on which we had been pay
ing interest to foreign holders re
patristed, or brought home;
With about S2,5OO,OOO,OO0 OF the
Understanding notes Of foreign
governments in our strong boxes,
and
And now, what Of the proceeds!
What have we done with them2 The
man who applies his labor 10 the raw
materials and produces war and
other merchandise for export, the
manufacturer who furnishes the
plant and working capital, the rail-
road that supplies the transporta-
tion-all Of these are paid in money.
Shells made at Pittsburgh are not
exchanged for Union Pacific shares
brought back from London. Wheat
grown In Kansas is not exchanged
for Pennsylvania bonds sold on the
New York Stock Exchange for the
account of France. Wages are not
paid with Anglo-French notes.
Bankers finance the foreign buying
Of me. chandise by importing gold,
by taking loans from foreign gov
ernments and by repurchasing for
eign-held securities, but the mer-
chandise itself is paid for in money
American money. Thus, during
the year 1916 more than $4,000, 000,-
600 Of money or the equivalent
thereof was released in this country
in direct payment for goods pro
duced for export.
There are two kinds Of money.
There is currency or coin, which we
all know by tactile sensations, and
then there Is what might be called
invisible money" which is a deposit
at the bank. You can draw it in
currency if you want it so, but very
little credit in the form Of a bank
deposit is converted into currency.
Mostly one draws checks against it.
If we look at the consolidated ac-
count Of all the national banks Of
the country we see that during the
wear their loans and discounts in
creased more than S1,000,000,0 600.
For all the banking institutions Of
the whole country you should double
that amount, making an increase In
total bank loans during the year OF
somewhat over two billion dollars.
Net imports OF gold-the total
amount Of gold received from abroad
less the amount exported again
were s550,O00,000. There you have
in these two items more than $780,
100000. One cannot earmark such
very large sums. Suffice it to say
that during the year either Of actual
currency or Of invisible money"
more than s3,OOO,OO0,0OO was turned
into the pockets and bank accounts
Of the American people. What did
they do with it7
As TO that, one is obliged TO gen
eralize. You cannot follow that
colossal amount of money through
the interstces Of complex society
Some Of il went into the pockets OF
the people in the form Of wages
Some OF il was disbursed by cor
porations in the form Of dividends
which the investors either spent or
reinvested in war loans and other
things. A great deal OF II went into
new facilities, such as factories, rail
road improvements, extensions OF
plant, etc. Hundreds Of millions OF
dollars have remained in corporation
and private treasures, in the form
Of a surplus fund-very fair insur
ance against unexpected reverses IN
the future. especially at the end OF
the war.
National Saving,
Personal Extravaganza
The conglomerats result was what
you would suppose. 1t was war
prosperity. As nation we saved
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