The Washington herald., 1919-05-30
WORLD FINANCE
DEPENDS ON US.
American Dollars Will Play
Leading Role, Says
Holland.


can be secured for the important
financial problems that are before
us then II is safe to say that no
man can have thought out any plan
of this kind. 1t was in October
Of last year. at the time when
the great campaign for securing
considerably in excess of 100000
900 for the Red Cross fund was in
progress that Mr.. Dawson sailed
for Europe.
He must have had in his mind at
that time the germ of the idea
which is now being worked out.
whereby there may be established
an international Red Cross league,
the membership of which will con-
sist of Red Cross organizations in
all civilized countries. In its way
this plan is as far reaching and
contains as momentous possibilities
as is the plan for the league OF ma
tions which a few weeks after Mr.
Dawson sailed. was under discus
sion at Paris.
What the Red Cross is able to ac-
complish. even in countries where
great difficulties are encountered. is
now demonstrated by the fact that
the seeds sown by the Red Cross
organization in Russia. under the
leadership OF Col. William B.
Thompson. are beginning to give
promise of a harvest which may
make it possible to establish fed
Grated Russia.
Met Financial Leaders.
Naturally. Mr. Dawson. during
his absence. met many of the finan-
cial leaders of Great Britain and of
Europe. for he has had intimate per-
sonal relations with many of them.
Some of these relations were es-
tabIished before the European war
began. Mr.. Dawson was chosen
chairman of the Six Nation Com
mission. which met at Paris two
years before the European war be-
gaa. This. commission was organ
lied for the purpose Of acting in CO.
operation so as to furnish China
with a loan which might be as much
as $3.50, ,000.0 900 and was sure to be
not less than s100.O00.000.
OF course. at that time. Mr.. Dav-
ison was brought into touch with the
foremost men of finance in Great
Britain and Europe. But he all
ready had earlier relations with
them Therefore. in what were per-
haps the darkest days of the war.
certainly the darkest days after Au-
gust 1914. Mr.. Dawson was well
coined in London by a group of able
men of finance who represented
both Great Britain and France.
Counsel which he then gave was
accepted. and led to the first meet
ing in Paris OF representatives of
the entente allies.
He returned to the United States,
well prepared to advocate the loan
10y an American bankers syndicate
Of $500. 900. 900. to Great Britain and
France Jointly. and without any
other security than the good faith
and resources and the credit of
those governments.
Things Mr. Dawson Heard.
While he was in London. the Brit
ish bankers and financiers. as well
as the government financial author
tiles. opened the books for his in
spection. He then learned the
enormity of investme nts Great Brit
ain had made in other lands. He
said. upon his return. that though
somewhat familiar with large fig
ures. the aggregate figures which
were revealed to him at that time.
almost staggered the imagination.
He never doubted from that day
the ability of Great Britain, possi-
bly, in cooperation with France, to
finance all the necessities occa-
stoned by the war, no matter how
great the amount might be. AL
though the United States Steel Cor
poration's business had fallen off
alsrmingly nevertheless. Mr.. Dav-
1son predicted a speedy change and
that change came even more rapidly
than he thought possible Within
year. the steel corporation was
hle to report that it had reached
the high water mark of prosperity
Thus fortified by experience, by
acquaintance and by friendly rela-
tions. to discuss the vital questions
which refer to the worlds financial
and economic rehabilitation. Mr..
Dawson was undoubtedly in ire
Quent consultation with men of f.
nance of our allies.
Finances Up to q. s.
Yet. he returns to the United
States to say that it is impossible
at present to prepare any compre-
henSive plan whereby these vital
financial problems can be solved.
He has. however. no doubt that they
will be solved. and largely by the
United States.
In order to prepare adequate and
comprehensive plans for important
financing. the necessity exists for
establishing a fundamental basis,
representing known and unuues-
tionable conditions: but Mr.. Davi-
son says that a basis of this kind can
not now be established because no.
body knows what the situation in
Europe really is. and what deveI-
opments may take place hereafter.
One reason for this state of mind is
to be found in the fact that all Eu-
rope is waiting for peace to be
permanently established through
the ratification and signing of the
peace treaties
When the peace treaties are form
ally ratified and begin to operate
then the nations will take up the
questions of international and do
nestle finance which involve think
ing in terms of billions and of many
billions and also OF trade relations.
Believes In Cooperation.
Somewhat guardedly. Mr.. Dawson
speaks Of the necessity Of establish
ing policy of cooperation,
whereby various nations of the
world can work in harmony. each
giving and receiving aid. In that
way the worlds financial problem,
now greater than any heretofore re-
corded by history, can be. in Mr..
Davison's opinion, more easily
solved. He thinks cooperation
should be extended so as to include
European neutral nations.
He apparently has in the back of
his head. so to speak, a proposition
liz