The Washington herald., 1919-07-21
ALLY INDUSTRIES
LOOKING TO !. S.
Holland Says Wilson VIII
Be Asked to Assure
Help for Europe.

Among the multitudinous ques-
tions which President Wilson will
be called upon to consider from
this time until after the crops are
harvested, Is the plan for syndicat-
ing the resources of the United
States in such manner as material
ly and IL possible sufficiently to
aid Great Britain and the rest or
Europe in restoring industry. es-
tablishing normal financial condt-
tions and quickening the produc-
tive capacity of the world.
The plan. which is still vague, at
least respecting its details, evil
IDENTIFY must receive governmental
sponsorship. possibly governmental
aid and moral support. Therefore.
as speedily as possible. those who
are putting this plan into such
form that 1t can be understanding
ly discussed will ask President
Wilson to consider 1t and to make
any suggestions which he may
deem advisable proviled he ap-
proves the plan. The President is
well aware that the world Is turn
ing to the United States as the
sreat reservoir of credit, of new
capital and of supplies.
Undoubtedly during some Of the
consultations in Paris while the
treaty Of peace was under considera-
tion he received much information
from Thomas w. lamont. The fact
that the President was in consulta-
ton with Mr.. Lamont several times
on the return passage Of the George
washington and the further fact
that Mr. Lamont made haste to go
to Washington as soon as the steam
er arrived. SO that he could make
report to the President justifies the
inference that President Wilson pos
sessus abundant and authoritative
Information respecting world finance
ing. Therefore, 1t is presumed he
will be all tie more ready to listen
TO the representative men who have
this great national syndicate under
conside ration.
What Great Britain Must Do.
All the Information which come s
from the other side of the Atlantic
Justifies the belief that the nations
of Europe are awaiting American
financial aid so that. thus fortified.
they may be able to place in the
American market their orders for
commodities which will include al
most everything that is produced
in this country.
1t is asserted in the financial dis
trict that London still retains pre-
eminence as the worlds greatest ex-
change market. For that reason Great
Britain must, incidentally at least.
first cooperate with the United States
in an attempt to bring exchange con-
ditions as nearly to the normal point
as possible. Nevertheless Great Brit
ain has a financial proposition for con-
sideration greater than any which she
has ever undertaken to solve, except
ing those which were of domestic
character in the days OF the war.
Great Britain owes the United States
approximately 1900 10000 Almost all
OF this debt is represented by notes
which are held in the Treasury De-
partment.
1t was a common remark at the time
Great Britain was receiving the loans
from the United States Treasury that
these. notes which she gave In recogn--
ton OFT the debt We're really nothing
more than demand notes. The United
States might, II pushed to an ex-
nave pdFh VA
these notes at any time. OF course.
the demand could not have been COM
piled with. Theoretically the refusal
thene demand notes would have been
bankruptcy.
In Embarrassing Position.
What should be done with these
demand notes was not a pressing
question as long as the war lasted.
Now. however. Great Britain finds
herself in a position somewhat SINH
lar to that in which she was placed
at the termination of the Boer war.
She had then a very heavy floa ting
debt This was dissurbinE.sscredit,
interfering somewhat with trade. and
its effects were indirectly felt in the
United States. Not until Great BRIT
ain funded that war debt were nor
NAL conditions restored.
So 1t will be now. These s4.oo0, 900. 900.
approximately. OF demand notes which
are held in the United States Treas
ury must be funded in some way.
Information is brought to this coun-
try by American financiers who have
recently returned from Europe that
the prevailing feeling in London is
that these demand notes must be
funded into bonds that Will have a
long time to run That seems to be
the view taken at Washington as
well as by our leading men of finance
II this be done, then a long step
will have been taken in the direc-
ton of stabilizing exchange. When
that is accomplished it is inevitable
that foreign demands for United
States commodities will reach the
American markets and there will he
an unparalleled movement of COM
merce from the United States across
the seas.
It is estimated that from $780,
100000 to $700.000.0o0 will be paid
yearly to the United States, to the