The Bridgeport times and evening farmer., 1919-07-25

Topss needs of credit and cOmmod- ities on the same hand and to pool Americas resources to meet them is a plan suggested by James s. Alex onder, President of the National Bank of Commerce of New York, for rehabilitating European countries and enabling them to reconstruct their war-stricken industries.
 MT. Alexander is a member of a committee recently formed here to investigate methods for supplying Europe with American money and goods during the reconstruction period. This committee was formed upon the suggestion of Henry P. Davison and is headed by J. P. Nor gan as cahirman.
 "A pool of Europe's needs should be met by a pool of America's re- sources,'' asserts MT. Alexander. That is, America's resources should be applied to Europe's needs through ton. with extensive powers Of CO., ordination. This may sound like an ideal plan stated in sweeping terms but I think it's details can be worked out in practical concrete form.
 There seems to be no existing ma chInery adequate to do so. There fore. a special instrumentality must be set mp probably in the form of g great credit corporation with capital enough to handle transa ctions of size that would be involved in transac tLons representing not merely the business of individual concerns but the combined requirements of na- tions.
 "A necessary step would seem to be that surveys be made of the com modify moods nf tha nations of En- rope. that is, an estimate of how much copper, steel, cotton, wheat and ether supplies would be required for Belgium and also for the other need full countries.
 .'The supplies available in America are great but they arc not so great as to meet unlimited and unbalanced demands. Therefore there should be A tudlcious rationinE of our comrlod- ities. there is the que Zion of estab- fishing adequate credits in thls coun- try to be considered. The necessary credits will be great, so that they must be carried to the investing pub lie of the whole country in the form of bonds or debentures.
 "Because of the deferred maturities of these debentures, the banks are not to be expected to absorb them. There will have to be an appeal to the general public on the grounds of a safe and lucrative investment and for the sake of humanity" Mir. Alex ander pointed out that this would be a means of maintaining the business prosperity and integrity of America and of protecting Americans from unsound investments in Europan se- curities.
 The security behind these deben- ,1,, I ,J of government bonds in point of safety" MT. Alexander said. They must be based on everything in the way of collateral that Europe is able to offer. The individual European buyer must be prepared to give d general mortgage upon his entire as- Hets. His loan should be further endorsed by a consortium of banks in his own country, reinforced where possible by governm guarantees. Thus every debenture sold to an American investor would have behind it equal security consisting of the pool of all the collateral of weak concerns or nations individually by the Ameri- can investor; neither would the strong be allowed to monopolize the benefits
 MT. Alexander declared that suf- fcient credits must be extended to meet the full requirements either of Europe a whole, of the nations of Europe. or of the individual indus tries. The full needs of Europe must be ascertained and met, he said and this would make imperative an eco homie survey of it's requirements. Credits supplied should be made available not to the nations of Eu- rope as such he added, but to the specific interests within the nations. properly co-ordinated, that is. to in oustries, manufacturers, transporta- ton lines and even to municipalities requiring funds for reconstruction.
 To put his plan into operation. MT. Alexander said, there would have to be this scientific survey of Europe's needs" willingness Of individual in terests in Europe to coordinate their demands to furnish satisfactory col lateral and to pay American rates rather than European rates on loans made by the proposed American cor poration.
 From the American point of view he said. 'this plan is predicat- ed on the willingness of American producers and manufacturers to CO., ordinate their selling plans, forming commodity groups and permit the allcation of their products to places and in amounts according to need. Another factor is the willingness Of the American public to buy the de- bentures at reasonable rate of in- terest. Still another is the co-opera- ton required on the part of Ameri- can banks to subordinate their tn- vestment opportunities to the gen. eral situation and not attempt to skim the cream of European invest ments, which they might be well able to do on account of their close con- nections abroad.
 Without this proposed organization, said MT. Alexander. American tnves- tors would have thrust upon them many issues of varying values. some ''~sed on the best collateral and some
 collateral Of very uncertain valus, l. plan, he pointed out, would be means to protect the American peo- pie from unsound investments in Eu- ropean securities. T believe that un- less some broadminded scheme of this sort Is adopted there are grave times ahead.