The Washington herald., 1918-07-25

Moneys Inerease.
Increase IN gold and paper moneys
In the United States during the four
years of this war has been from <sA&
to s50.ss per capita The increase In
gold during the same period has been
$1,000. 100000 The issues OF Federal
Reserve notes and Of Federal Reserve
banknotes, q currency nonexistent
In 1914, amounted on July. !. ISIS. to
81 ,sss 900 900. There is here. IN gold
Increase plus Federal Reserve notes.
a total expansion Of the currency
amounting to well over 1,ooo,ooo.ooo
within four years.
This Increase in money accounts for
not less than 20 per cent Of the In
crease In cost Of living. Another 40
per cent 70 due to the supplies fur
nished to foreign nations. The re-
naming % per cent Of the increased
living cost 10 therefore due 10 those
speculative factors involved which the
world 10 now identifying with the tc-
tivities Of 'prohteers."
II 10 evident that no more than 70
per cent of the increase In the cost
Of living is due TO the abnormal re-
quirements Of foreign peoples and
NLot W pCI CCuL u obt W AiAAAdNAOAA ~
currency and TO gamblers gains.
Credits Expansion Unkaewn-
This stands as one definite conclu-
sion. But what has been the ex-
pansion Of credits Is not definitely
known.
In 1915 foreign holdings Of Amer
lean securities amounted 70 s.o00. 600.
900 out OF the SIS, 900 10000 reckoned
in 1872 as being the active values
Of the United States. The annual
interest charge at an average OF
per cent was 500. .ooo. 600 of the net
earnings Of the American people. In
addition to that annual Interest
charge. this country had an aver
age yearly expenditure OF moneys
going out Of the country Mat EN-
braced $50 .0oo. 900 laid out by our
tourists in foreign lands; s75. .ooo. .ooI
carrying charges by foreign ship
owners for transportation Of oul
products; s5.o0o.ooo for reinsurance
Of FIRE risks; and from 500. .ooo. 900 4
s15c, 900 900 Of laborers' wages sent q
their relatives beyond our borderi
in all, about $500, ,0oo. 900. Thus. will
the annual 500. 900. 900 interest charges
on our foreign-held securities. thes'
payments which we made abroaC
amounted to $500, 900, 900 OF which /,
yearly average Of 500. 900 900 was paiC
by balance OF trade in natural AMI
manufactured comodities and an av
erage OF 100000 900 annual investmen
by foreigners in American securities
Every year, therefore. We wer'
increasing our permanent obliga
a. A~ al ~ IN,
debtedness entailing annual inter
est charges OF s2o.ooo,ooo. That 4
why all OF our markets were domi
mated by London, Paris. Berlin, Am
sterdam and Antwerp.
Since the war began Europe's ne
cessities have forced the sale q
Americans OF about $4,000. 100000 o
our foreign-held securities: and tn
borrowing OF foreign nations from
our government amount now to Sc.
80. .ooe. 900. OF the private borrowings b!
individuals. firms and corporations II
Europe. Canada and South Americi
there can be no close estimate: bu'
IL must run somewhere betweel
| 81, ,o0o. .o00, 900 and $4,000, ,ooo. 900.
z. 3. Creditor Nation.
The United States now Is a credi
tor instead OF a debtor nation, and
that to an extent equal on the credit
side to an amount not less than it'
previous Indebtedness. We are, then
! freed from European ENHANCEMENT,
in our finance; we are independent
at least, OF Europe's bankers anc
credit mongers: and We are in the DO
sition to free ourselves from our owl
bankers and credit mongers.
We are now an abnormally PROS
porous creditor nation, gathering alb
normal profits for certain classes oi
our population located in special areas
while our entire population Is paying
81 per cent increase in its cost o.
living on account OF imitation o'
money and credits plus the profteer
ing that is practiced upon US.
Must Fight Prohteering.
It may be assumed that we will
continue to do all in cur power {,
eliminate the odious 20 per cent o.
increase that is due to profiteerinC
including all overcharges now prac
ticed for services and commodities
1t may be imagined that a con,
traction Of our money and credits
to something like a volume adequat,
to stabilize prices at their ante-wai
levels would be the natural way u
dispose Of the 40 per cent due TO in.