The sun., 1919-07-11

EUROPE HAS NEED :
! OF $2,OOO,OOO,OOO
Students Of Financial Affairs
Abroad Say Sum Will Be
Wanted During Year.
NO HEAVY CALL ON q. s..
Germany Will Require at Once
NO HEAVY CALL ON q. s.
Germany Will Require at Once
$5OO,OOO,OOO to Get Back
In World Trade.

Europe's financial needs during the
coming twelve months win be ip the
neighborhood Of 5000, 900, in the
opinion Of persons recently returned
from Paris after having looked thor
ougfly into the financial situation on the
other side of the Atlantic. OF that
amount. II is declared. Germany will
need $500. 100000 and need II immedi-
ntely II she is TO get into any kind Of
shape for manufacturing which she must
do to get once more into world trade.
The consensus OF opinion OF these men
IL that things in Europe, especially In
France, are not as black as they have
been painted.
OF the total amount Of money which
the war devastated countries on the
European continent will need, 1t Is not
expected that any tremendous proper
ton will fall TO the United States to
supply. II Is pointed out that Australia.
Japan and even England. not to men
ton the South American countries. par
tcuiarly Argentina, where Germany Is
Known to have vast property interests.
are In positions to extend liberal credits
to those nations Where Germany will
get the money which she needs imme'
dlately Is SO far an unsolved problem.
The German Government Is known TO
have made Representations to the Peace
Conference on several occasions durins
the last three months with a view OF
obtaining loans from the United States
OF other allies, but the Peace Conference
refused \steadfastly to take up the ques-
ton until peace should have been
brought about and the war ended, tecn-
nically as well as actually. 49,.
90 FAR as loans TO Germany from
America was concerned. It was declared
that nothing might be expected from the
United States Government along that
line. The United states Government has
gone out of the loan business for gooo
and any funds which Germany or any
other nation may obtain here must be
obtained from private bankers. In that
connection it was learned that the people
[ of the European nations which are In
debted to this country are opposed UNI
alterably to any suggestion looking to-
ward cancellations of their obligations.
II was reported by those who have just
returned from Paris that the French
people were furious when they were in
formed Of statements made before q
committee of Congress to the effect that
they would welcome cancellation OF their
obligations here. 1t was pointed out
that they might be willing to accept a
reduction Of interest rates perhaps OF
an arrangement of payment Of interest
which might dribble along over the COM
ing lean period. but as far as cancella-
ton Of their obligations were concerned
they are represented as insulted by the
proposal.
While France finds herself In very
bad position, it is believed that she will
have returned to a basis. at least semi
normal, within the next two years. Con-
ditions as regard labor and raw mate:
rails are such that 1t would be impossi-
bic for any vast amount of reconstruc-
ton work to be carried on successfully
IN less time. With rnorss than 400. 600 OF
her houses destroyed, one-seventh OF her
area devastated, her greatly depleted
man power and utter exhaustion Of her
supplies makes the problem very diff:
cult indeed.
That England and France will go bach
into business with Germany very soon I.
the opinion of those who have been II
close touch with the situation. The rati
fcation by the German Assembly OF tn,
peace treaty on Wednesday operated au
tomaticaily 20 llft the blockade agains
trade with that country, and II Is ex
pected that very soon business relation,
between Germany and other European
countries will assume an aspect will
some semblance Of normal ut least Al
far as America Is concerned. trading will
Germany is technically prohibited unit
the peace treaty shall have been ratiflet
by the United States Senate. while III,
ratification by the German Assembl,
lifts the blockade, the trading with th'
enemy act In this country prohibits an.
trading with Germany until the wa
shall be technically ended. Announce
fnent made In Washington by Presiden
Wilson. however, indicated that the en-
forcement OF that act would be left en-
tirely to the discretion of the officials
and that trade with Germany might b
resumed at almost any time.
The question as to how Germany vii
BE- able to float a loan in America ha
been raised and a prominent banke
yesterday expressed the opinion that h
believed that Germany would have n
dlfflculty in selling her securities through
her former banking connections her
and that those interests would be abb
TO put out the loan among people o
German origin or descent in this coun
try 1t was learned that not NOR
than s5,0O000o of American securitie
are in Germany and that they ar
being disposed OF rapidly to provld
funds for necessary reconstruction. whlc
allays, to some extent, the story tina
German interests were unloading vas
amounts of American stocks and bond
which they have had tied up since III
war hogan.
with England and France, Il was de
clared, the situation as regards labo
Is not 80 bad as has been reported
Instead OF encoura cling emigration fror
these countries, as their Government
have been reported as doing It is sal
that they are considering seriously tn
placing of restrictions on emigration 1
an effort to conserve the much needle
man power of those countries Their
are no serious political disturbances 1
England or France 1t was declared.