New-York tribune., 1919-07-25

American industry faces an over
production of goods that will blight
the nations prosperity unless Europe is
supplied with credit to buy and pay
for our surplus output, in the opinion
of James S. Alexander, president Of
the National Bank of Commerce in
New York
"Our industries are committed to an
output greater in many respects than
our own domestic trade alone will con-
sume," Mr.. Alexander declares in a
discussion of the foreign credit situa-
tion in "The Commerce Monthly"
"Unless Europe is enabled to repur-
chase the surp1uses," he concludes,
1--WE will be left with them on our
hands, and we will have the picture
on one hand of Europe suffering physi-
cally for need of them and on the
other hand of American industries in
curing great losses simply because
they are unable to get their goods to
market" Mr.. Alexander is mem ber
of the recently organized committee
of bankers to work out ways and
means for retinancing Europe.
Would Allocate Supplies
The banker advocates the ALLEGATION
Of American supplies and the CO.
ordination of the demand for them
arising from the various European
countries under giant plan. And
unless comprehensive scheme is
adopted for organizing American credit
for this purpose he believes there
are grave times ahead both for this
country and for Europe. Confidence
is expressed by the banker in the
ability of the country to rise to the
situation both financially and in the
matter of production, pointing out that
it is not a question of whether we are
able to do so, but rather question
of how we shall go about transmitting
out ability to aid Europe into the
most effective form of constructive ac-
complishment.
"Great as this problem Is, its solu-
ton" says Mr.. Alexander, SHOULD not
be undertaken by governmental means.
1t should be carried out with private
capital, not government funds. Never
theless, the necessary measures should
be organized and administered on
semi-public basis and along lines that
will have the support and the ap
proval Of the government Of the United
thority, however, of whatever plan is
adopted must como from widespread
public cooperation rather than from
government auspices. The time is
past for the United States government
to finance our allies in Europe as it
did throughout our participation in
the war. There are plenty OF domestic
problems pressing for attention to
engross the full fiscal policy and
activities of the government.
Would Remove Political Control
81 say that there should be this re-
moval from political control because
of my faith in the ability of American
business men Of many and various in
terests to work together for great
common end when conditions require
it. If there Is not this working to-
gether existing unsettled business
conditions in Europe will grow worse
and will inevitably extend to the
the selfish point of view of American
interest, If from no other, this organi-
zation In our dealings with Europe is
necessary in order to conserve Amer
ica's markets and avert possible in
dustrial DEPRESSION"
In any programme for refnancing
Europe steps must be taken, the
banker declares, to safeguard tho
American investor who will be called
upon to shoulder large portion of
the burden of providing the funds.
"The peoples of Europe represent diff
ferent degrees of credit risks" the
banker points out, and, therefore, if
there was not an organized control
of American credit the stronger coun-
tries would be able to crowd the
weaker countries out Of our money
markets, or else the weaker would be
forced to pay cxorbitant rates.
"They might be able to do this for