Grand Forks herald., 1917-03-01

Will dll uer treasure OF SOlO comes
into the war against Germany, she
allies. regardless of anything she may
do as q fighting force. If she stays
out. as now, with broken relations
with Germany. she will be an equally
potent support to U.S. Americas wealth
and financial aid mean everything to
the allies"
That was the opinion expressed to-
day by Hartley Withers, the financial
expert who succeeded Sir George
Paish as editor Of The Economist in
reply to a question as to what part
America was likely to play from the
financial viewpoint in the near future
in the worlds war. Mr.. Withers, who
has Travelled extensively in America,
did not hesitate to say that Ameri-
can sympathy, turned into golden
support, would assure driving the war
to victorious end for the allies. With
America out of the struggle. the al
appreciable financhl, laid until the
end. but there Would always be the
grave problem Of adjusting interna-
tional finances. What was needed to
push the war to a successful conclu-
sion was money, and that America
has as the richest nation in the world.
Must Turn to America IL in Need.
what Great Britain has just done
in the matter of the immense war
loan running up we'll beyond $780,
100000, shows to the world that Brit
ain Is financially solid.' said Mr..
Withers. THAT loan means the sup
port of all classes Of Britons in the
financing of the war. But beyond the
loan is the necessity of having a mar
ket where Britain will be able to
turn should her finances become
strained. We can run the war for
months on the money Britons have
put into the loan, but we must main
tain the stability of foreign exchange
and 1t is to America we have to turn
for it.
If America withheld her financial
support from Great Britain, we would
have difficulty in keeping exchange
up. With America back of us, British
credit is inexhaustible. That Is what
1t means to have America on our side
OF the fight. Our money relations with
America since the beginning of the
war have always been difficult to
maintain without market disturbances,
because there has been so much Eng
land has had to buy from the United
States and requiring SO great an out
ward flow of gold to do it. We had
to establish the necessary credits with
America, and that involved for months
exporting gold there. besides the SELL
Ing Of American securities that were
held in Britain, and in short turning
the whole trend Of financial advant-
age over to America.
America quickly became the rich
est financial power in the world. AZ
ter Britain had for months been buy
ing supplies in prodigious quantities.,
America found herself with too much
gold. The paradoxical eventuality
came Of America having more money
than she knew what to do with, and
she started sending it back to Eng
land on loan at high percentage
rates. When Britain had sent some
Of gold to America It
began to trickle back to us to earn
interest for American bankers. All this
shifting Of gold, first from her to
America, then back again, would
not, been for the underlying feeling
In America that at bottom Great
Britain was financially stable and
that there was nothing to make any
one worry.
Just before America broke off re-
!ations with Germany we had in our
banks huge quantity of American
gold earning interest. but within q
few days after President Wilson's ac-
tion in breaking of with Germany
American bankers began to call for
1t. There has been a flow of gold back
to America since, and it has made
some OF our bankers bit uneasy,
But 1t Is only a temporary thing and
there 10 no doubt that in a very short
time there will be a satisfactory set
t!ement Of the whole financial ruff1e.
British Operations In this Country.
The British has sold back to
America approximately $4,000, 900, 900
OF American railroad and other se-
curittes that were held here. She has
noated loans in America agEregatine
$1000.000,000. Britain also has placed
her credit back OF her allies. Even
with all this strain she is financially
sound. and America knows 1t. Ameri-
ca will back Britain to the end OF
the war, for America has cast the die
against Germany, no matter whether
the breach Of relations goes no furtil-
or than now. Amorican fiuaneferu
will see that Britain and her allies
lack for nothing they need, and the
war may 30 along on q credit Basis
indefinitely. =
America did not mead convincing
~ TO Brttain's Anancial soIidity. b,it
Il she did our big $500, 900, 900 loai,
lit Will run over that an, told
was enough to DO Il. And while the
support Of the loan was general. run.
ming 70 Al classsG. Is must be aaid n
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