New-York tribune., 1918-09-29
Outraged World
Will Demand That
Germans Pay Cash
A. Barton Hepburn Says
No One Will Give Enemy
Credit After the War

A. Barton Hepburn, chairman OIL the
advisory board of the Chase National
Bank and onetime Controller of the
Currency, in discussion of after-the-
war problems in the current issue OF
"Thc Chase" the banks monthly publ
cation, expresses the conviction that
there will be no economic league OF
nations against Germany after the war.
There will be no need of such govern
nent action, he declares, for the hatred
the Germans have inspired will curtail
trade with them and make their foreign
commerce a matter of very slow growth.
Germany will get no indemnlties,'
says Mr.. Hepburn, land she will have
to struggle along under her mountain
Gus debt with her own resources. at
the outbreak of the war her debt was
SLICE, ZOO, 600. To-day it is approXi-
mately $4,000, 100000. Her currency
is very much deprecated and would be
still more so if subjected to the test OF
a world barometer. 1t is sustained |
somewhat by being limited to her own
country. Germany has very large
amount OF gold at present, which, how
ever, may be reduced by indemnities.
1t is none too large-indeed, not large
enouph-to stabilize her greatly inflated
currency. She can, of course, use gold
in purchases abroad, and would, to the
extent she is able to do so, without dis
home. 1t looks as though her relations
with the outside world would be prac-
tically on cash basis for some time
after the war"
Germany Will Need Credit
After asking the question whether the
credit of Germany and that of her
citizens and corporate industries is
good. Mr.. Hepburn adds:
"She cannot make a move in foreign
trade without credit in countries where
she gets raw material. In the last
year in which statistics are available,
it appears that SO per cent of Ger
many's imports were industrial raw
materials and partly manufactured
goods. In other words, S1,450,0 100000
worth of goods were imported for use
i'll her manufacturing establishments.
Only II per cent OF her imports were
from middle Europe. The balance
came from countries who cannot afford
to extend credit, or whose animus will
probably prevent their extending
credit after the war. Could such
credit be safely extended to German
individuals and firms? 1t would have
to be renewed in one form or another
for a long ptriod."
Discussing the effects Of peace on
American industries, Mr.. Hepburn
calls attention to the fact that the per-
sonal consumption Of goods will be
diminished throughout the world and
when the demands for goods on the
part of the governments cease, the
business outlook will not be reassur-
ing.
when peace comes the work in all
plants making guns, munitions, or cs-
sentially war goods of any kind will
stop. The labor thus engaged will be
thrown out Of. employment and at
time when the high cost of living will
cancel all contracts for the manufact.
ure Of war material, as they have a
right to do. The manufacturers will,
by the terms of their contracts, have
claim upon the government because
Of sucn cancellations. They will have
claim not only by the terms of their
bargain with the government, but NOR
ally. and equitably as we'll. Claims
against the government are proven
blally slow in adjustment In order to
prevent such manufacturing concerns
from going into bankruptcy and in or
der to enable them to shift their line
Of manufacturing and seek new mar
kets, in order to prevent the non-em-
ployment Of labor at a crucial time,
and IN order to prevent q general bust
ness cataclysm, The government should
now prepare for that eventuality
which is sure to come, and be prepared
speedily to adjust all contracts"
In conclusion, Mr.. Hepburn declares
that in the light of this wars expert
ence there should. be. revision of our
tariff laws, our economic laws, espe-
cialy with reference TO credit, cur
rency and banking, and our laws with
reference to transportation both on
land and sea. In other words,
he, believes the great problems in
volved in advancing civilization, in
volvlng mans material wants and
human rights, will call for reexamina-
ton and readjustment.