The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1919-07-13

FOREIGN LOANS
TO Be SPLIT UP
Business to Aid Bankers in
Floating Relief Fund,
Says Holland.

may Dc mat INC H1cu VI AhAo-S~'
the bankers and the Industrial leaders
who met in conference at Chicago the
other evening had already heard that
there seemed to be some disposition on
the part Of organizations which repre-
ssnted the farmers 10 object seriously
to the proposition that the American
banks. in cooperation with private
bankers and Industrial leaders. perfect
a plan whereby the needs Of Europe
for material. equipment supplies ana
food can be financed. For an intima-
ton has come to New York that some
of the leaders Of farmers organiza-
tions are disposed to object TO any
plan Of this kind.
At the Chicago private conference
the second which has been held WITHIN
a few days-severaI of the foremost
Industrial leaders of the United states
were present These men had oeen
asked to take part in the conference
For II is not the purpose to conflne tne
Dlen of financing the needs OF europe
10 The American banks and to the
private bankers. The scope or the
plsrf is much wider II 1t is, perfected
in accordance with the view OF those
who are undertaking to work out the
plan then il will include not only
banks and bankers. but many. II not
all o, our leading industries, fnnuen-
tial business forces. men or commerce
end those who are planning a vast ex-
tension OF our foreign trade
II il were confined to the banks
and bankers, then the plan would be
more easily perfected. For we have
already had experience since the Eu-
ropean war began of the facility. the
speed and the thoroughness with
which the American bankers, acung
in Cooperation. have achieved great
results This was done when Eng
land and France. acting jointly. came
To the United States for the purpose
of securing a loan amounting TO Sop.-
Ooo0co. The telegraph Immediately was
rut to work, and as result some
OF the influential bankers perfected
an organization within Few days
whereby the United States. not the
government. but private interests. alb
sorbed that loan of SO0.om.eoO.
Already reference has been made
in this column to the swiftness and
thoroughness with which the Amer
lean bankers. acting in cooperation
few weeks after the beginning OF
the war. secured s2oo 10000 in gold
This VA. sent to Ottawa, and from
the moment Il was done. we over
came the serious difficulties which
we're accustomed by the outbreak OF
the war and our lack of preparation
Many Loans Made.
In this way many loans have been
made since 1914 by the banks acting
in co-operation. The latest was the
doafing here of the loan to Sweden
Of s25 10000 and today the bonds
which represent that loan are mostly
in the hands of the public. There tney
will be held until the date of payment
and held as a permanent investment
But the estimate is that Europe needs
in the present year at least s5,oooUp'-
600. AS much more is likely to be
needed next year. and presumably TOT
two or three years more.
II would not be practicable. although
il might be successful. IL the banks
were relied upon to finance this enor-
mons amount But there Is another
mint of view which is taken by Mr..
Dawson and others who are per-
fecting the plan, and that Is that J.
will be the better part il our indus
trial leaders. our leading exporters
and men of commerce and our great
merchants are so associated with the
plan as to secure perfect co-ordina-
ton Of all American resources Al
ready some of the industrial leaders
have upon their own initiative per-
fected plans whereby the worlds
needs may be financed. at least so
far as their own business Is concern
ed: that is to say, the United States
Steel Corporation will perfect plans
whereby the export of the products
OF that corporation may be well fin
anced so that purchasers in other
markets than our own will be able to
secure long time credit with which
they will be able to pay for the
commodities they buy.
Plan to Clear Business.
II the plan now under considera-
ton is perfected then the central
body which will represent this ma
tion-wide coordination will receive
applications from other nations for
American commodities and some of
them will be submitted to the Steel
Corporation. some of them to other
corporations. very much as J. P.
Morgan & Co. when acting as tho
agents Of Great Britain for the pur-
chase Of American commodities
searched throughout the land for
the best place in which to put these
orders. In that way the work of
buying shipping and the subsequent
payment was facilitated and the ag-
=reRate amount which these trans
actions represented is understood to
have been considerably in excess of
a S.o000oo.O0o. although that is only
an estimate. the house of Morgan
receiving for this service only one
per cent commission. no more.
When the farmers understand the
purpose which is behind this plan,
they will realize that il is not
money making. a Shylock-like I'M
dertaking representing the greed OF
American bankers. but a vast
scheme OF coordination. which will
be of as much value to the farmers
as to anyone else, for it will facili-
tate the purchase of and payment
for agricultural commodities such
as food and cotton and it is not the
expectation that anything more
than a reasonable return for the
services OF the bankers and the
others who are members of this CO.
ordinated body is looked for. For
If there were excessive charges for
services of this kind. that would be
sure to defeat the plan.