Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-04-03
PARBURG URGES
NATIONAL TRUST
Bunker Says 1t Would Pro-
fect Investors in World
Finance
HUGE SUMS ARE DUE U. S.
Remittances Must Be Facili-
tated, He Tells Foreign
Relations Council
HUGE SUMS ARE DUE U. S.

Ncv York. April s.--Creation OF
arlr~e investment trust, organized on
country-wide basis" to protect American
! investors in absorption OF foreign gov
ernment funds issued to meet the va
v,o,,s countries obligations 70 the 'Uniteo
states was urged in an address mere
I siast night by Paul NJ. Wareurs' New
J, York banker. Such a trust, he ss'u'
would aftord small investors protect'oh
IN fha same manner as savings oafNS
ana insurance companies which spread
,beir Investments over a widely diVersl-
fied field. -,
Mr.. warburg spoke at meeting OIL
the Council on Foreign Relations cal'eu
~ disc,ss .'inve stment OF American
ran,tai abroad" other addresses were
made by Pierce C. Williams, coInlneIc' c'as
attache at Paris of the Department OIL
iCormerce John ]. Arnold, OF Chicaso'
ana q q. I.onsdale, of st. Louis
Task Before Financiers
Mr.. warburg said: .s ,o-
ssThe balance in our faVor eNs red
VA n will remain to be squared
srsyv vear. unless, indeed. we. con'eIli-
Mats that the peace settlement VIII pro-
,,ias so, a cancellation of the approx
,rsfelv ten billion dollars advanced W
!. h. 10 nations associated with US IN lne
common struggle. Personally, 90 not
tsI,.ve that a cancellation Of this sort
viii be nroposed, but believe we shouia
ha nrepared for some years TO come "
facilitate the remittance to us OF tne
approximately $500. 100000 which VIII De
due the United States on account Oh III
t<rest on its foreign loans
@Relief of this kind could be orousht
about by a scheme somewhat on the
Iins. of funding operations" he said
.rThat IA to say, the debtors should oe
permitted to pay the creditors not IN
ra al. hut by the sale of additional long
term bonds.
att Is conceivable that Congress might
authorize the Treasury TO accept sucn
foreign government bonds In lieu or
cash. the United States In turn raising
the corresponding amounts for the pay
fnent of it's coupons either by borrowing
in the market or by taxation. or py
offering these foreign bonds to the Amer
lean people.
Suggests Great Trust
II believe that it would be very op-
perfume for us to consider whether Gre
alton OF a large investment trust would
not render a very timely service. Such
trust, organized on a country-Wlde
basis, might offer the twofold advan-
tags OF bridging the interval necessary
for the better understanding and fur
ther development Of foreign propositions
and for the creation Of better mar
ket. and, secondly. would enable the
small investor to buy the obligations Of
such an Investment trust, representing
{ diversined holdings closely examined by
the most competent people and guar
Anteed by very substantial paid-in
capital stock"
Asserting It would be hard to raise
ssths huge capital required to finance
Americas share of the reconstruction of
Europe" Mr.. Williams said he did not
uphold ''the conventional idea of in
vesting American capital in France"
what I contemplate" he said, "is a
relatively small amount of private in
ycstinE in French governmental, munich
pal, public utility and gilt-edged indus
trial securities by Americans who have
had experience in investing their capital
and vast amount Of investing in the
stock of Uncle Sam, world banker. by
irnumerable small and new investors"
Mr.. Arnold, who asserted 'it Is not
desirable that any one nation should be
in q position TO dominate world
3 finance" suggested European credit
could best be stabilized through con-
soiidAtion of the war debts of the va
rious powers concerned"