The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-01
URGES US. ADJ
EUROPEAN CREDITS
c. ii. Sabin Says Government
Should Cooperate With
American Banks.
MUST ACT, AND QUICKLY
United States Is Trustee for
World, Welfare Of Which
Is in Balance.
MUST ACT, AND QUICKLY

Cooperation by the Government with
American banking institutions in han
ding credits for European companies
was urged yesterday by Charles H
Sabin, president Of the Guaranty Trust
Company. who declared that the pros
perity OF the world was in the keeping of
the United States and that its welfare.
ae well our own. depended on the wis
dom with which the situation should be
net and handled After referring TO
daily reports OF the critical condition Of
European financial Affairs. Mr.. Sabin
said:
They sharply drive home the lesson
that this country must act. and act
quickly. not only to save the business
situation IN ether countries but also IN
its own interest because of the extent 10
which we are involved in their affairs
and the absolute dependence Of our pros
perity on their rehabilitation. Unless
the United States can ind foreign mar
kets for its present highly stimulated
production there will inevitably be a bus
mess recession in this country.
1T is certain that American bank
ing institutions cannot handle the credit
demands presented without cooperation.
Such cooperation must be accorded by
our Government. our manufacturers and
producera BY team play between these
important factors IN the situation
Europe can be put on its feet financially
and industrially and this country viii
be placed In q position Of unchallenged
leadership In the business affairs OF the
world The amounts involved are far
too large for any other method OF hand
ling.
aust what form this cooperation
should take is q matter Of detail which
can be worked out ine common confer
ences. but it seems TO me there are some
steps which should be taken ir1ne-
diately and should not be delayed"
After recounting the provisions Of the
bin passed by the last Congress placing
81 .oeO. 0De. 200 at the disposal o. the
War Finance Corporation for the extern
sion Of American foreign trade. Mr..
Sabin said:
in ny Judgment this law sho1ld per
nit the extension of credit to foreign
buyers in good standing with the IN
dorsement. II need be. of foreign banks
and foreign Governments. and our Gov
eminent should assume whatever credit
risk Is Involved in the situation. which
should be negligible.
LAS there Is the twofold purpose of
promoting American trade and Of meet
inE the crying needs OF Europe. and this
In the interest OF our people as n wlIoi=
and Europe as a whole. II seems to me
to be a situation in which Government
responsibility must be assumed and Gov
eminent leadership. with the cooperation
OF our financial and business institutions,
must take I'D the burden in the general
interest
There IL also a large fund stu avail
able for food provision which should be
used as rapidly as possible for the pre-
vention OF famine and the restoration
OF normal health and working conditions
in the war swept countries.
This is a time when all thought OF
profits particularly exorbitAnt profits.
represented either in commodity prices
or interest charges should be forgotten
and the simple necessities Of the situA-
ton faced. Our first and single duty
now is 10 restore the world 70 normal
conditions II we are able TO do our
part properly In bringing that about the
question Of profits viii be cared for IN
the future.
This country is facing the greatest
opportunity and the greatest obligation
In its history, and f the sacrifices which
have been made in the wRr are not 10
be IN vain we must rise TO meet them.
I am sure that II our people generally
and our Representatives al Washington
could have the appreciation Of the sit
uation which has been forced on Us by
those who have studied II first hand in
our interest there could be no delay IN
meeting T..