New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-14
Fridoy, April rs, 1917.

necessary to enable them to pur-
chase in this market without diff
Guilty everything which we can sup
ply that may be needed to carry the
war to successful conclusion
Also. it is sound business, for our eX-
port trade will thereby be stimulated
TO the advantage Of the whole coun-
try. We should not be niggardly IN
extending financial aid to Great
Britain and France and other coun-
tries with which we are now aligned
in the great conflict, but it is doubt
full if any such sum rs S3,0OO,OOO,-
600 will be required for that pur-
nose. Certainly it will not all be
needed in the near future. 1t would
take a long time to utilize so much
as that, and there is the possibility
that meantime the war will come to
an end. Moreover, there is another
phase of the matter which has been
overlooked on this side. 1t is pre-
sented by THE London Statist," in
the issue of March "a. 1t says:
Already the suggestion appears
to have been put forward by mem
Der Of the Federal Reserve Board to
the effect that a huge loan should be
granted by the United States gov
ernment to the Allies, and no doubt
much useful assistance could be rem
dered along those lines. At the
same time we shall do well to re-
member that, just as we regard our
own advances to Allies and domin-
ions as a temporary matter and
apart from ordinary war eXpendl-
ture. so in still greater degree
must it be remembered that, sooner
or later We should be called upon to
repay the States any credits granted,
while even in the mean time the an
nual interest charge, with its effect
on exchange, would have to be borne
in mind. In saying this We do not
for moment desire to minimize the
Importance of America as tinan-
cial ally in the war, for We regard
that possibility as of the highest
value. both during and after the
conflict. The point VIC would empha-
size is that readiness on the part of
A lender tends sometimes to enCour-
age extravaganza on the part of the
borrower. We have recognized that
fact when VIC have ourselves been
the lenders. but We must not forget
it when the conditions are reversed.
The recent hanging back on the part
Of America in the matter of grant
ing loans, together with Teutonic
submarine activities, was at least
useful in enforcing much-needed
! economy at home, and it would be a
pity if there were to be any curbing
of the exercise of that virtue,
whether by the government or the
private individual"
No doubt exists that this country
can raise all the money it may need
for war purposes. On the other
hand, the terms on which the money
can he raised will bear a direct rela-
ton to the size Of the governments
programme. There is danger that
by going too fast those terms may
be less favorable than need be for
the raising Of all the funds which
arc required.
The general level Of commodity
prices continues to rise at an alarm
ing rate. Though there have re-
Gently been numerous reports indi-
eating that forward buying was pro-
/ ceeding on a more cautious scale
there is no reflection Of such con-
+ dition in the course of prices. If
anything, the upward pace has been
accelerated, with no sign of resist
ance to further rise in evidence
Each group represented in "Dun's'
,ndeX number was substantially
higher on April / than a month be
fore, the combined figure being the
highest in modern times and 81 per
cent above the pre-war level. Food.
stuffs are GA per cent higher thar
they were year ago, and are still
mounting rapidly. Unless some
thing should intervene to check the
movement, the nigh cost of living
may soon become a much more acute
/ problem than it has been at any time
in the past. The figures strongly
emphasize the need of NATIONWIDE,
economy, especially in view of the
possibility Of short crops the coming
season.