The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1919-09-30
RELIEVE GOODS SHOULD
BE SENT TO EUROPE
Argued One World Part Can
Not Be Stable Until
Europe Settles Down
(By United Press.)

ing banking houses Of Wall street.
To ascertain the attitude Of fnan-
oiaf men towards Europe's situation
a number Of financial men were asked
tor their opinions regarding Euro
pean trade. The opinion was unani-
NOUS that goods should be sent to Eu-
rope on longtime credit, until
enough goods are produced on the
other side of the Atlantic to even up
trade balances.
Financial men deny that an en-
barge on goods going to Europe
would reduce prices In the United
States, though they agree that Ameri-
cost Of living in Europe. They con-
tend that prices will not drop here
until they have come down in the
most important European countries,
regardless OF the surplus supplies
which would pile up here il an en-
barge were placed.
Proof e Assertion.
As proof of their assertions, the
Wall street economists point to the
sugar, for example, enormous quanti-
ties Of which are ready to be shipped.
Some goods are already in ships,
which cannot be sailed. Exporters
who have bought these goods for
shipment are simply holding onto
them.
On the other hand, it is pointed out
that conditions cannot become per-
manently stable in one part Of the
world until Europe Is settled. Ship
! me1stB of food and materials to Eu-
rope which4will enable that continent
2 to re-establish normal living condi-
tons, ordinarily less expensive than
those Of America, will result In an in
fiux OF goods to America at reduced
rates. This would bring American
costs down permanently.
Advantages of Credit.
= Bankers also point out the advant-
hse OF buying credit in Europe at"
this time when America would re-
oeive enormous prices for goods. The
credit would remain credit, since Eu-
rope has no god to pay. until it is
paid back in goods manufactured in
Europe. These goods would be sold to
Americans at much reduced prices, ii
European conditions become normal
and stabilized, and American capital
would benefit by the drop.
So confident are some bankers of
the advantage Of putting Europe on
its feet that they propose an enor-
nous combination to be made up of
all the larger financial institutions
of America. This organization could
finance all countries according to
their needs, and could see that the
smaller nations get on their feet.
At Normal Rates.
The leaders Of this plan say that
under competitive system, credit for
the larger and stronger countries
would be furnished by the stronger
banks in America, at normal rates of
interest. Weaker countries, being less
secure Investments, would be forced
to pay high rates which they cannot
afford. In addition they would prob
ably have to go to weaker banks. This
arrangement would be bad for both
debtors and creditors, it is held, and
might cause an unstable condition of
the money market for some time.
That Wall street and other New
York financial interests are not
doubtful Of Europe's ability to come
back" is shown by the way bankers
are preparing to lend credit. Many
are specializing in foreign exchange
while the dollar buys so many French
francs or German marks, placing the
money on deposit in Paris or Berlin
at interest, and waiting until Eu-
ropes money climbs nearer normal,
when prospects are considered good
by many for doubling on the specula-
ton.
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