The Washington times., 1918-12-16
THE COST OF LIVING

BANKERS . in London Paris and Berlin and even in the the
SPAIN you ind merchant bankers who understand mer
with merchandising principles The European merchant
banker does not look upon commodity collateral as soe
produce sufficient proceeds qudate the borrowers oo
lateral to the Extent THAT the nf will qudae the obi
CATION when the commodity reaches its final destination
that commodity collateral is only good for what il will
whether the commodities have reached their destination
the place of consumption.
r " Of the utmost Importance e to the PUBLIC that the
help production and to assist in carrying commodities from
the lowest possible of interest Three per cent
per annqm would be ample interest charge on the part
against commodity collateral
The Bank of England. the Bank of France and the
have always endeavored to maintain low OF interest
for the movement of commodities and for the benefits OF
London herself the supreme clearing Of
the worlds commerce by of the fact that her me-
recognize economic principle that Of interest
makes for national welfare in domestic well nterns-
The Bank Of France, the great monument Napoleon
made for himself has recognized the principle that the
is entitled to the same rate of interest the who bor-
Collateral
borrower provides sueent collateral for
the law of averages that losses sustained small
loans proportion less than losses sustained large
becomes that anything thesmal borower given the
full benefit of the law of be entitled to bo
at lower rate than the large borrower
count OF the smaller risk attached to the smaller loan
The Reichersbank made II possible for the development
Of pumber of large industries not only Germany but
in Other parts Gf the World recognizing and applying the
ing great can be accomplished That Just as the farmer must
put seed under ground long before he expect
his IN 50 Of s1d
due the helping hand extended by the Rechersban
and the policy Of the that any number Of com
ehgthen human life through helping hand extended to
various medicinal research problems (GVe the devil his
due)
banker the idea of helping develop industry
speculative and far from sound banking that in
abroad account of the lack of vision of the American
banker who oy deals in presents and in futures
When the American dollar selling the bargain
of European neutral banks 66c the dollar.
leading American bankers and those ntrusted
stand that the American 1O0-cent dollar selling 66c
worked advantage whole to the people of the
energy and effort convince government officials we'll
international bankers that it loss to the United
"Pay the reply received from
leading bank official in the United States and 1t
determined TO pay and made fight to have
the dollar brought back to We happy that
American dollar should be worth 100 everywhere and
that should not be permitted to sell under its value in
any country.
If the American people send their dollar Spain buy
100 of Spanish products and the Spanish bank
pays only 66c for that American dollar It means that the
because after ALL the merchant engaged in nterna
tonal commerce does not settle an eTehange loss himself
pays the bill and he has paid hundreds of millions of
dollars other such bills due to the depreciation of the
American in foreign countries in the last few
We wish to state In the positive that II
possible remedy this situation and it only because
the economic principle was not recognized that was not
femedicd.