The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1917-07-13

TH HB financial resources of the
Allies have been selected as the
- subject of this article because
the recent statement OF the Federal
Reserve Board in regard to the pur-
chase Of foreign loans by our banks
mas been misunderstood by many as
= reflection on the credit OF the bor-
rowing governments
This is not the case. but the result
nevertheless has been q slight decline
IN the market price Of the Allied OBJ
Ilgations already held here. an aband-
onment OF all efforts to doat further
aoans in this country. and cessation
in the demand for many OF the things
that the Entente Powers were previ"
ously buying OF US
By many 1t seems to bs assumed
that we have determined to deny
aurther credit TO the Alliea and as
this policy. If persisted In. may have
portentOus consequences for US and
for civilization. II IS most important
that we should understand the ques-
tlsns involved IN all their aspects
Should the German overtures for
peace be rejected. as seems probable.
and the war go on for another two
ears. the final issue will be largely
.,rpendent upon the financial support
lat shall be accorded to Great
britain and her Allies in this country
IL we are content that a trtum-
plant Germany should menace thG
worlds peace and our own tndepend'
enca until we are drawn int the mex
war for the protection of our Ma
tional life and the preservation O
international law. then We may b
consistent. though short-sighted. II
insisting upon a C o, D. policy In ou
further dealings with Great Britain
and her Allies.
II on the other hand. We valu
the Government under which we liV
and desire TO preserve for our pos
tertty the opportunities that IL af
fords. then we must do what we ca
with the money power that we nov
possess to protect 1t from the ambi
TONS of those
Whose game is empires ana who's
stakes are thrones
whose table earth. whose dice ar
human bones"
rhe only way in which we can 81
this money power is by iendin
ana while most weli-informed {
nvteTs are entirely confident thl
sucu loans TO almost any amour
would be good. the public general
are in doubt concerning the adj
quacy of the resources that are D,
hind them.
II is TO dissipate that doubt tn
this article is written.
In dealing with the subject an e
fort will be made to avoid owe
weighing the discussion with fgur
or statistics. In almost his last pu
lie utterance the late Pierpont Mo
gan said that he had more rega
for character than for wealth as
basis of credit, and Il is in the lig
of this statement that the right
the Allied Powers TO ask and reject
credit from Us will be chiefly CO
sIdered.
While what is called the Nation
wealth" OF a borrowing communi
should not be wholly disregarded
determining the value of it's oblig
tons. IL is to r. remembered that I
revenue TO be we'd from this veal
Is almost entI dependent upon I
character, industry. and resourcefr
ness of the people who possess
The National wealth OF the Unit
States is to-day estimated at abe
two hundred and hfty billions d,
lars. In 1850 It was estimated at or
seven billions. This is an incres
II about thirty-six hundred per ce
In the same interval our populati
has Increased fr~m f1.lsl,sTs to abe