Evening star., 1919-03-23
Great Task of Collecting for Americas Goods

than hundred. have arranged loan
Of $4,000. 900 with New York bankers
The bankers Of Belgium have pledged
their resources and the money will
be given to them and by them, in
turn. lent to Belgium manufacturers.
"Notes will be renewed threeStimes,,
at the end of nine ty-day periods. and
meanwhile raw American materials
will have been turned into Belgian
manufacturers and sold to customers
and paid for by the customers. There
will be profits for Belgian capital and
wages for Belgian labor and a meas
SELF
This process, in the main. will be
followed by other countries, by Great
Britain, France and Italy. provided.
Of course, the United States, through
its banks. will supply the money, on
time, with which purchases can be
made. SO the United States will pro-
duce the goods. at profit, sell the
goods and obtain interest on such
sums as may be advanced for the
payment of the goods.
The resources of the banks in Eu-
rope (and Mr.. Harding says they are
the most highly organized banks in
the WORLDLY will be security for the
loans negotiated in this country. AL
ready, the United States Is a creditor
nation, which means that other ma
tlons owe it money and they will owe
lt great deal more money by the
time they again are on solid finan-
cIal and industrial basis.
one of the clearest thinkers in
America and. at the same time, one
of the most easily understood writers
in America. is George e. Roberts, the
New York banker. He Says that since
August. 1914, Great Britain has been
paying for her extraordinary pur-
chases In this country, first. by SELL
Ing her holdings or American securi-
ties; second. by borrowing here in the
open market: and, finally, by means
OF loans granted by the United States
government"
Europe owned four billions of Amer
lcan stocks and bonds. Three-fourths
OF them were sent back to this coun-
try and sold The money so obtained
was spent here for food, ammunition
and so on. Our allies" Carter Glass.
Secretary of the Treasury, said.
fduu fdoueht for us nearly three years be-
For nearly that period Of time the
United safes profited tremendously. in
a commercial and industrial sense. by
the european war Our foreign trade
showed balance in our favor Of
eleven and half billion dollars We
IN gold from debtor nations"
In round numbers there IL ten hill
non gold dollars in the world. A third
or an the gold money In existence is
IN tne bank and treasury vaults Of the
united states. So much gold. indeed
Is In the possession OF this country
that its sum has occaeioned uneasi-
ness In many quarters. Now. IL one
man IN town had all tho money Of
that town no one could do busin e IS
with him on cash basis. The same
hindrance to business occurs between
nations when one of the nations has
portion of the gold supply.
Great Britain has about 100000. 600
Of gold. France has $60O.00o, 900. The
United States, as was stated, has three
billions. Gold is the basis OF credit. Be
hind the money of Great Britain and
France Is the gold that those two ma
tions possess. The stocks of gold.
then, that they have cannot In safety
be lessened. And having no gold to
spend, they must buy in this country.
III they buy. on credit
Heretofore" Mr.. Roberts said, talk
ing about Great Britain, "she had Inn
portant charges against us for the
services Of her shipping, but We are
building a great fleet Of ships for the
avowed purpose of reducing those
charges.
Heretofore she has had a large in
come from interest and dividends on
American securities, but we haSe
bought back most of these securities
and established q balance against her
In this account
How, then. Is England to pay the