15. New York's present dominance temporary.— Since the war commenced the United States has grad ually changed from a debtor to a creditor nation, prin cipally owing to the fact that vast exports of muni tions, etc., have been made to belligerent countries, thus creating an abnormal trade balance in her favor. With this shifting of international balances, large amounts of gold have been received from debtor na tions, a considerable volume of American securities held abroad have been absorbed by the New York market and large loans made to the belligerent na tions, as well as to Canada and other countries of the American continents.
Owing to the position the United States then had as a wealthy neutral nation, far removed from the scene of conflict, a wide demand also developed for dollar exchange and dollar credits, not only in the United States but in foreign countries. In other words, the abnormal conditions induced by the war called upon New York to take the position of international bank ers heretofore played almost exclusively by London. This role was assumed by New York, not so much by her own volition as by force of circumstances. Will these war time opportunities, when peace is declared, be sufficient to retain for New York the position which London with all her advantages took centuries to ac quire? Before New York can do this to any great extent the United States must learn to think interna tionally and not provincially. It must increase its foreign trade tremendously and revise its navigation and alien labor laws and its tariff, all with a due re gard to the comity of nations ; sound permanent bank ing and currency systems, removed from legislative tinkering must also be established, and finally foreign hanks should be encouraged to establish branches in New York and other centers without unnecessary re strictions as to the business they may undertake.
On good authority the opinion is often given that the financial center of the world will always remain in Europe, if only for geographical and national reasons, but there is need and room for another strong financial center in addition to London and it would always be desirable that such an alternative should not be lo cated in Europe, as the present European crisis has amply demonstrated.
16. New York's York is already the financial center of the new world; she should strengthen and broaden her claim to this position and, as a coadjutor, relieve and assist London in her great responsibility as the world center. In the reconstruc tion that must follow the close of the war, Great Brit ain and the United States will undoubtedly play a great part and London and New York will find it more and more necessary to cooperate in the perform ance of their several functions.
New York will doubtless benefit permanently from the advantages and experience gained during the war. Great Britain will profit also from the intimate inter course with France, Italy and Russia, likely to result from the war which will undoubtedly tend to reestab lish, if not strengthen, London in her former position. Great Britain has financed her allies generously thru the war and will not only have these large amounts re funded to her in due course but will receive collateral advantages which should more than offset the business lost to New York.