The Washington herald., 1919-02-12
BELGIANS SEEK
so MILLION LOAN
Business Men and Banks
Combine to Borrow for
Reconstruction.

When Japan found it imperative
that she place large orders In the
United States for various commodi-
ties which were needed by that na-
toh at the time OF her war with
Russia, her representatives found
mat American banks were ready to
subscribe for a large issue of the
bonds OF Japan. The money obtained
In this way did not go to Japan. It
remained in the United States. 1t
was drawn against so that payments
could be made for the commodities
Japan bought here. American banks
lent to Japan the money which Japan
expended in this country and held
Tho bonds as security. The arrange
mcnt was satisfactory to both par
ues to the bargain.
This, however. is not the way in
which Belgium seeks aid in the res
toratioh of her industrial properties.
Not the Belgian government, as was
the case with that of Japan. but in
dustrial leaders in Belgium have
united in association with banking
authorities there in attempting to per
feet an arrangement with the bankers
of New York whereby S5O,OOO.OOO can
be made available. the money to be
used chiefly. if not entirely, in restor-
ing the devastated industries OF Bel
giUm.
Amount Will BE Big Aid.
Fifty million dollars will not do
much more than to begin to repair the
dana SC-that. at least, is the opinion
of the experts; but it will aid in do
ing that and the expenditure of this
money will be i'm fact the first step
IN the restoring of Belgium as a great
industrial community.
The arrangement has been perfected,
or is about to be perfected. and it IS
a significant one from several points
OF view. The first comment which
the publication Of this news occasioned
I'm the financial district was this: Much
has been said about greatly eXag-
Eorated expectations on the part OF
american industries as to the extent
OF the commodities which our allies
viii be compelled to buy in the TniteG
States tn order to restore normal in
dusiriai conditions. Some have gone
81 fer ns TO say that almost every one
OF our allies will be in position so TO
finance her own needs as to make 1t
unnecessary Tor her TO buy to a great
extent commodities in the Uniteu
Stats.
Reports have come from Europe that
III" dcEasted portions of Belgium and
Northern France are in such condition
that no amount OF money will make
tE0m available for Industry or agri-
culture. mt least until many years
hH'" passed
Looking for Exports.
''.r own industrial leaders are
mo-" artInC however. under the as
sumption that with the end OF the
var orders from the United States
Government. Industrial plants viii
b. N position speedily to manufac-
Jur'- great amounts Of commodities
o. which foreign nations are in
r''d. especially our allies. There
t"r"- the presumption is strong that
or EXPORT trade Will continue large
f.T ruGuv yaars and that there viii
D"~T favorablo balance Of trade
ar~nH.'rI- TO l1gdTeGs Of millions
SysT- -~4H
N,gEln- q. uuitH. however. was
leaned r.-p,rt.r- this outlook un-
81 al .I-- r h..u-." known that
~ NuE b..,'-r- had practically
c9r.pls;ed EotlaJIou@ whereby
tr.. viii establish q credit in favor
or Bo'aiur. Industrial leaders to the
eaf,U- Of fifty wlllr"n dollars. Our
bankers -r, m ;n 'avo ben all tho
more rrgGv To- -raut acconmoda-
tons ut that kind hecsuse thev are
EIad To tuvrIItat. International trade
with Belgium. rIr~ viii serve 10
I.dntaln and increase our exports.
only the First.
Tr tIIs arrangement is perfected. as
undoubtedly il will be in few days.
then the chances are that it viii be
followed 10y others ~ like character.
There are IntimltionS that industrial
leaders IN Franco have already tcnta-
tvrtv approached the United States
WIKI intent 10 secure a large credit
possibly larger than the one Belgium
ts ru r-c.iv,-aud to use the accom-
modItion thus obtained in the up
Uuildn- OF the devastated conditions
81 France
inquiry in the financial district jus
.fUrs rha impression that Great Brit
am rrrH -...I mo- accommodation of
his ku.L. -.f last AT present Belgium.
France 1uG TaIv will b. round within
f.v l1"u.HS 10 have obtained from
-rrv7fo -.UrC"s. not from the govern
mont 0f tho United states. ample cred
IFS whrc. ar" to ho used exclusively
U hJidu- ra7 industries which have
2""u fmnpircd by reason Of the war.
What hanks Arc Doing.
Aw'r.caU bark= have already as
rlm.d vow lar=" obligations in or
i"r bat our allies might bo aided
m" first oc thNro was tho loan OF
nalf "a billion dollars IN England and
Franc" jointly. Other private ac-
.umW0dHuons have been made and
presumably many more will follow.
Nevertheless, the American banks are
Tst now greatly occupied with i'm
'ortan. pieces of financing. some un-
lrr way. some contemplated. For in
stance. the American banking syndi-
ute OF which J. p. Morgan and Com
onny ar" the leaders is offering $50
5000 of tWeuty-ycar. = per cent bonds
sEued by Great Britain. The syndi-
.-.o mas already taken care Of many
millions and when thes- thirty mil
ions OF bonds are sold they viii con-
E.rt int" long term iSsu" tho Init
g. Kingdom notes which maturcd in
-c6TUaTy
The bankeIS of New York and
'uicago through syndicate opera
IONS hay" recently underwritten
100000 Of Southern Railway