The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-02
planned OF
EUROPE'S CREDIT
WITH AMERICANS
New York Banker Declares
Now Is Time for Such Mer-
ger to Stabilize Business
in Money and Commodities.

NEW YORK, Aug ITO pool Eu-
ropes needs of Credit and commoditles
on the one hand and 10 pool Americas
resources TO meet them is a plan sug-
gesed by James S. Alexander, presl-
dent of the National Bank Of Commerce
Of New York, for r~ehabilltating Euro
pean countries and enabling them to
reconstruct their war-stricken ndus-
tries.
mr. Alexander is a member of a com
mittee recently formed here to mvesti-
gate methods or supplying Europe with
American money and goods during the
construction period, This committee
was formed upon the suggestion OF
Henry p. Dawson and is headed by j.,
+. Morgan as chairman,
"A pool of Europe's needs should be
met by a pool of Americas resources
asserts Mr.. Alexander. That is, Amer
ica's resources should be applied to Eu-
ropes needs through a great, central
lied credit organization, with extern
sive powers Of Coordination, This may
Bound like an ideal plan stated in
sweeping terms, but | think it's details
can be worked out In practical, con-
| crete form.
There seems to be no existing ma
chlnery adequate to do so. Therefore,
q special fundamentally must be set
up probably in the form of a great
credit corporation with capStal enough
to handle transactions Of a size that
would be involved, transactions repre-
senting not merely the business Of
Individual concerns but the combined
| requirements of nations.
"A necessary step would seem to be
that surveys made of the commodity
needs of the nations Of Europe, that Is,
an estimate Of how much copper, steel,
cotton, wheat and other supplies would
be required for Belgium n also for
the other needy countries.
The supplies available in America
are great, but they are not so great as
to meet unlimited and unbalanced de-
mands. Therefore there should be a
%judicious r~ationing of our commodities
among the nations requiring them, in
accordance with their needs.
Distribution of Goods.
I'm addition to this ratIuning ana al
location of commodities, there is the
question Of establishing adequate cred
its In this country to be considered. The
necessary credits will be great. Sc that
they must be carried to the investing
public of the whole country in the form
Of bonds or ~debentures.
Because of the deferred maturities
of these debentures, the banks area not
o be expected to absorb them. There
will nave to be an Appeal to the genera
0'N - NhS VI " oaAS ~ ~
~cratiye investment and for the sake o.
humanity" Mr.. Alexander pointed out
that this would be a means of main.
tanning the business prosperity and in,
tegrity of America and Of protecting
Americans from unsound investments In
European securities.
THE security behind these deben'
lures should make them almost equal t
government, bonds in point of safety
Mr.. Alexander said. "They must b,
based on everything in the way of col
lateral that Europe is able to offer
The individual European buyer must bt
prepared to give a general mortgag,
upon his entire assets. His loan shoul,
be further Endorsed by a consortium 0
banks in his own country, rSinforcet
where possible by governmental guar
antees. Thus every debenture sold t
an American investor would have be
hind 1t equal security consisting of tn
pool of all the collateral of weak con
Germs or nations individually by tn
American investor; neither would tn
strong be allowed to monopolize tn
benefits"
Credit Must Be Had. %
Mr.. Alexander declared that sufficien