When the war opened England was in the strongest position of any of the Allies. She was the greatest creditor nation in the world. That is, she was able to purchase goods from foreign countries on easier terms than her associates. Russia and Italy were debtor nations and had to borrow even before the war in order to balance their foreign accounts. So these members of the Entente had to be assisted in making purchases abroad. England was able for a long time to keep up her exchange rate in New York. This was done by the shipment of gold and by inducing the holders of American securities in England to sell or lend such securities to their government. England was forced to act as the agent of other Powers who were fighting with her. Until the United States came in, it was the greatest industrial arsenal among the Allies. Large imports were naturally a feature of this policy. The United States soon began to feel the result of the changes in international credit. Exports almost doubled between 1912 and 1917, the figures being in millions, $2,399,000,000 and $6,231,000,000, respectively. Another side of the United States trade account to the world is indicated by the following classified list of loans to January, 1917: "Between August 1, 1914, and December 31, 1916, the loans raised in the United States by foreign countries were estimated to reach $2,325,900,000, of which $175,000,000 had been repaid. The net indebtedness on January 1, 1917, was therefore $2,150,900,000. The loans may be classified geographically as follows: Europe $1,893,400,000 Canada 270,500,000 Latin America 157,000,000 China 5,000,000 -------------- Total foreign loans $2,325,900,000 Less amount paid, estimated 175,000,000 -------------- Net foreign indebtedness $2,150,900,000 "The loans of the belligerent countries which were floated in the United States up to the close of 1916 are divided as follows: Great Britain $908,400,000 France 695,000,000 Russia 160,000,000 Germany 45,000,000[1] Canada 270,500,000 -------------- Total $2,078,900,000[2] [1] Estimated. [2] Nearly $1,900,000,000 of this constituted war loans. NEW PACE IN WAR FINANCE