The Washington times., 1919-09-17
Boersianer's
Comment
on Business
D ROERsTANER.


OF projects TO aid Europe and to pre-
tect the already existing American
credits abroad, there Is no end. All
manner OF loans are proposed; loans
to enable Europe to buy Americas
supplies; loans which viii allow Eu-
rope to buy these supplies and 10 taks
care OF maturitles and interest for the
next three years, and finally Ioans-ff
you please-not only to continue i'm
ports from the United States and to
meet interest. but to finance all the
war debts.
The last-named borrowing were not
trihe; over s150,0OO 0O0.0O are In
volved: a possible undertaking which
might satiate the ambition Of even q
middle Western bond fioater.
This idea OF financing. from break
fast foods TO what she owes, may
sound like bad and huge Jest 70 the
laymep, but Il is serious seriously
proposed and discussed.
Since last November there has been
talk OF an international loan. Mr..
Yanderiip proposes a sum large
enough to put Europe on her economic
feet. He suggests a ffteen-year In
ternational bond. 1-15th OF which q
TO be amOrtized yearly Every nation
Is to pledge q first lien on customs
revenue to meet interest and amor
tizatiOn requirements. II any coun-
try defaults others are TO make up the
deficiency and hold the debt against
the delinquent. There Is to be q saf-
pcent impOst on imports to meet these
charges.
Something OF the kind was evolved
long ago by the Pereiers brothers IN
France; part Of 10 was realized in the
credit mobfiier-Of hectic memory.
Anyhow the plan would hardly meet
the exigeneies q this generation. Ths
life OF the mortgage Is too briefs
amortization too near and too exigehes
Mortgaging customs revenue were a
proceeding undignifed for America
and Great Britain; 10 surely would
wound the amour propre Of France.
and probably OF Holland and the Sean
dinavfan countries. Yet Mr.. Wander
lips idea is benign and workable,
compared to some other interuationa
loans entertained IN certain bank
Quarters; loans that are to transfer
the obligations Of the state in their
present form to the individual in q
form which win tighten the burden
Of the state for say ten years, but
actually increase the debts Of the state
ultimately.
a difficult AFFAIR; at best and smallest
IL is complicated. But what is nov
proposed IL both gigantic and iRhnitH :
" complicated. It asks. among oth8f
things. ideal political solidarity, like
minded sentiment, Uniform economies,
harmonious tariffs, an uncompetitiFa
foreign trade, thrift and Industry IN
All countries: demands equable credit
and prestige and an idealistic faith
among the co-borroWers and CO.
lenders.
Mr.. wilson's politieal-or IL e. mar
tial-league OF nations is simple ana
perfectly feasible In comparison -
these international loans.
The war mas bred megIomaniAs
meglomania useful. harmless and
harmful OF the last named. q Is TO
be feared are the Utopian emanation5
Of an international accommodation
to cover the enormous war debts. It
would seem that the greatest danger
which threatens is the chasm which
lies between appearance and reality.
between reality and what some OF the
Would-be -saytors OF nations believe
70 TO be. II everybody saw the chagm
and made up their minds that it must
be bridged IL may be done sanelY.
The peril is that, not fOFeseeinS u
clearly and steadily, and deluded by
AllpOesAulC sCuEuEss SOME MaLAQN8
may fall into the abyss. Perhaps az
equal risk is that in ignorance OF
the real conditions Of economic pros
perity nations may, when the dangers
are too close to be ignored, embrace
any papaces which may be nearest
at hand in a vain hope that il may
work a miracle.
Many are deceived by appearances
OF prosperity. Never has there been
50 much money" about; great elasss8
Of the population either are. or at
least feel that they are, better or
than they have ever been; profits in
most trade are abOunding; deposits in
the banks go up by leaps and bounds:
there is every symptom Of feverish
prosperity which accompanies rapidly
rising prices. Yet all the time the
upward movement continues; the in
articulate pOssessors Of fixed in
comes" the clerks and other people
OF genteel occupations are slowly
ground between the upper and neither
millstones OF taxation and high
prices, and the whole economic fabric
becomes more and more uncertain.