The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-21

cised over promoters. as well as th'
probable lack of public support fol
non approved issues, which made ths
treasury rulings effective.
In January, 1915, 1t was stated fha'
the treasury would not in ordiaar,
cases insist upon the foregoing re-
strictions for the renewal of treasury
bills or short term instruments OF
foreign or colonial governments OF
municipal corporations or other IN
dertakings held in England.
The British treasury undoubtedly
found valuable principles In the rul'
inEs of the priorit board to guide II
in determining the relative niece fs't>
of corporate financing.
Government Help,
In the British house OF con.mons
last summer, Bonar Law stated that
apart from the sums advanced under
schemes for the restoration of credli
at the commencement of the war
the total advances out of votes OF
parliament to private concerns. by
way of loans repayable in cash since
the outbreak of the war. amounted
to approximately forty-six million
pounds sterling OF which twenty
seven ard a half million pounds ster-
ling had been repaid, lie stated that
he was not aawre OF any losses 20
the state in connection with these
transactions.
II would seem that refunding has
In the main proceeded In the regular
way, and that the British government
has assumed no control over the re-
funding OF short instruments or OF
maturing municipal mortgages. This
would seem TO Indicate that other
refunding operations have been ur'
der the control OF the treasury, II
may be that some retunding has h.-en
of rather forced nature. and that
the government has advanced money
to certain companies SO that they
have been under the necessity OF re-
funding. Evidence IL lacking, now
ever, that such methods have been
used to any very considerable extent.
Our Three. Billion Dollar Bank.
Fortunately, the United States Is
better prepared than ever In its his
tory for the tremendous and constant
" increasing financial strain which
the war has put upon this country.
Within - last decade we have &C
quired flexible currency facilities. a
strong, centralized banking system.
and more than one-third of the world 3
entire supply OF gold coin and bui-
lion--the basis OF world credit.
Within four years the Federal Re
serve bank has acquired resources In
excess OF 100000. 900. and deposits
aggregating more than 81 500, 000. 600.
II he's become the largest banking in
stitution IN the world And on this
bank. perhaps, the winning OF the
war depends more than on any other
one financial force.
Through the amendment of the fed
eral reserve act. which has permitted
the expansion OF our credit on an
elastic yet sound basis, much of the
recent vast growth in American in
dustry, commerce. and finance has
been made possible. To this fact,
chiefly. may be attributed our ability
TO foat loans for the helligerent pow
ers prior to our entrance into the war.
by the absorption OF their bonds. and
our ability TO repurchase American
securities held abroad, to the approx
mate total OF 1900. 600 900.
Despite these repurchasex and the
lending OF large sums OF money tc
other countries, and the total of s3,-
4s3, geo 900 loaned by the United
States government to the allies up &c
December 30 last, we have been ab'c
to more than successfully finance on
bustn esa and our share of the war
For example. individual deposits In ali
banks, national, state. savings and
trust companies, increased from si7.-
745, $4,000 In 1919 to approximately
s16, 90. eco 900 on thu correspondents
date of 1917.
An oven better conception of cur
vast financial resources may be gath
cred from recent estimate which n II
our national income for 1917 at $780,.
ooe. 100000. r. practicing conserva-
ton and true thrift-~but not parsi-
mony--these great resources should
be ample to meet the wars burdens
The tremendous increase In our
production. and especially In the value
of our products, has necessitated ar
increase of money in circulation from
ss.3s3,73s,ooo on July /. 1919, TO ap.