The sun., 1919-05-24
EUROPE MUST FIX
HER CREDIT NEEDS
Henry p. Dawson Describes
Job Of Foreign Governments
After Signing Treaty.
CAN DEPEND ON AMERICA
Lowers Estimate of European
Experimentation Only
Prepare Now.

Henry p. Dawson. who was ut the
offices OF J. p Morgan q Co. yesterdav
Tor the first time in many months, de-
CARED that the first task Of European
governments, following the conclusion
OF peace, will be the formulation OF
credit needs. but America will be unable
TO extend any aid until the European
oudset be completed. Mr. Dawson said
mat several weeks ago he had though,
advisable to bring a definite financial
plan back from Europe, but found II i'm
possible to deal with the subject in the
large way that the needs require. Never
theless he said that he had revised down.
ward his earlier estimate Of total Euro
pean needs and that America would be
able to supply all aid required.
Practically every bank head and finan-
cier or importance In this city called Ia
see Mr. Dawson yesterday. but he was
Obliged to tell them that in regard to
Foreign Investments all that could be
done In the immediate future ia to pre-
pare. coordinate and arrange to deal
with the great needs as a whole as soon
as European Governments should get
around to the task of assembling the
financial data
Every country In Europe" said Mr..
DAWSON, with no moro than one or
two exceptions, needs credit. Europe
must be considered as an entity. Con-
trary to the impression that seems to
have obtained in banking circles I have
no definite plan. The Governments on
tne other side FIRST must form their
plans and then we will consider them,
Up to the present time the countries
themselves have no plan and have had
no opportunity to formulate one, as they
are busy with the stress of peace nero-
tlatfons. In fact they are devotinr ali
their time and effort to the cons,nnma-
ton of peace.
The first thing that will be taken up
after the conclusion OF peace Is credits.
Inc needs are heavy. but not 30 heavy
as 1 thought they would be a month
ago and not 50 heavy that they cannot
be provided for in full here There
must be intelligent cooperation and ade-
quate consideration
While abroad I had several talks
with representatives of neutral Govern
ments and i gathered the impression OF
a fine spirit and desire to cooperate
with America to the fullest possible ex-
tent. The neutrals are as much inter
ested as any beliigerent in the restora-
tion OF normal conditions. as they pro-
vide market places In fact I have oh
served that all OF the Governments are
trying to get out of the banking bust
ness ana back to normal conditions,
BANKERS cannot be selfish, but they
must coordinate their efforts and con-
eader the interests of America as a
whole. There will undoubtedly be a
series OF banking conferences, but the
tone OF these meetings must be co.
ordination and preparation.
1T Is mistake to assume that we
have to rebuild Europe. That Is only
matter of bricks and mortar The big.
gest item In the reconstruction OF E,I
rope Is labor, and the payment for
labor services is n matter for bankers
abroad to solve with local or domes site
credit. America will have TO send SUP.
plies. Russia cannot be taken into con.
sideration until she has a stable govern
ment and one that can restore order"
Questioned about the possibility OF
Government steps to stabilize the ex.
changes, which have slumped so badly
Mr.. Dawson said that he knew of nc
international plan to support franc and
| sterling exchange. He said also that
the League of Nations would have moth
ing to do with the financial side Of re-
storing Europe to normal.
Mr.. Dawson added that he thought
| that there would be no information com.
rhittee TO control the extension of credit
to Europeans, but that a central financial
body may be established here. That
subject will be considered at the forth
coming banking conferences