The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-07-25

ties on the ono hand and 10 pool Amer
| caS resources 10 meet them IL plan
suggested ny james S. Alexander. pres
Adcnt Of the National Bank Of Commerce"
! Of New York. for rchabiItatInE Euro
pcan countries and enabling them 10 re-
construct their war stricken Industries
Mr.. Alexander is member OF a COM
mittee recently formed here 10 invcSti-
gaze methods for supplying Europe with
American money and goods during M"
| reconstruction pcrlod This committee
was formed upon the suggestion or
Henry +. Dawson and is headed by J. T.
Morgan rs chairman.
a pool OF EurNp"'s needs should he
met by a pool Of Americas resources
asserts Mr.. Alexander. That is. Amer
lcaS resources should he applied 10
| Europc's needs through a great. central
| lied credit urganiZa tion with extensive
! powers Of coordination. This may
! sound like an !deal plan stated in sweep
! ny terms but think ITS details can pc
worked out IN practical. concrete FORM
There seems to be no existing ma
| Chlnery adequate IL do so. Therefore Il
special instrumcntality must DO set up
! probably IN the form OF Il great credit
| corporation with canial enough To han
die TRANSACTIONS representing not merely
| the business OF individual concerns but
the combined requirements of nations.
"A necessary step would seem 10 b"
that surveys be made OF the commodity
needs Of the nations Of Europe. that is
an estimate of how much copper, steel.
cotton wheat and other supplies would
hr required for Belgium and also for the
other necdrul countries.
The supplies avallahlc IN America
arc great but they are not 50 great as 70
meet unlimited and unbalanced de-
mandS. Therefore there should hc a Ju-
dcious rationing OF our commodities
among the nations requiring them, IN
accordance with their needs.
In addition TO thus ratiOnInG and AL
location Of commodities, there ~ III"
question Of establishing adequat" cred
it's In this country TO hc considered RI"
necessary credits Will b" Erca'. :" that
they must j." carried 10 tho investing
public of the whole country in tho form
Of bonds or dcbcnturcS.
Because of the deferred maturiti"s
Of these Gcbcntur"s. the banks arc not
TO he expected 10 absorb them. Their"
Will TO be an appeal I" tn" general pub
lie onNhe grounds Of n safe and luCra-
tive investment and for tho sake Of hG-
mainly" Mr.. Alexander pointed "ut
that this would b. thu means Of main
| tanning tho business prosperity and in
tcgrity of America and nf protecting
Americans from uusound investments IN
European securities.
The securities behind these dcbcn-
lures should make them almost equal -
government bonds IN point Of safety.
Mr. Alexander said They must b."
based on everything IN the Way Of co.'s
lateral hat EurUp" = abb" ~ offer Tn"
individual European buyer must be pre-
pared to give u general mUrlEaC" upon
his entire assets. His loan should h.
further endorsed by II consortIum Of
banks ir his own country. reinforced
whrr" possible by cnNcrnm"ntal guar
antccS. Thus every dch"hturc sold 10
am American investor would have he
hind II equal security consisting of
pool Of all tho collateral supplied by
Europe There would b" no direct loans
against the collateral Of weak concerns
or nations individually by the American
investor: neither would tho strong be
allowed To moaopolrZa the bcncfIts."
Mr.. Alexander declared that Suff,-
cient credits must be extended To me";
the full requirements either OF EMror"
as q whole. of the nations Of Europe. or
Of the individual industries Tho full
needs Of Europe must be- asccrtained and
mot. he said, and this would make I'M
pCratlve an economic survey OF IT'S 70
quirements. Credits supplied should b.
made available not To tho nations or
Europe as such. h" added. but 70 IN"
specific interests within the nations.
properly co-ordinatcd. that -. 20 indus
tries manufacturers. transportation
lines and even to municipalities rcqulr-
Irg funds for reconstruction.
To put his plan into operation. Mt.
Alexander said there would have to h."
this scientific survey Of Europe :
needs" Willingness OF individual inter
, csts in Europe 10 coordinate their de-
mands. 10 FURNISH satisfactory Colla'"-
cral and 20 pay American rates rather
! than European rates on loans mad" b.
! the proposed American corporation.
From the American point OF Wow,
! No SAID. this plan - prcdrrat"d on IN"
willingness of American producers ami
manufacturers To coordinate thor soil
! ing planS. forming commodity groups
and permit tho ALLEGATION nf their prod
ur;s to places and IN amounts Accord
ing TO need Another factor IS tho will
irgncss Of tho American public ~ buy
! tho dchcntur"s at r"aSonaNl" RAJ" "i
. interest StIll ap";h"r Is tn: co-"r"ra-
. ton required on IN" part OF Am"rCan
, banks tn Subordnat" their investment
: oppOrtunilIcS m the general situation
: and not attempt to skim IN" cream IT
! European Investments. which they might
I pc VOL abb" - Il" on account OF IN" r
clos" connections abroad.
! Without has proposed orGanizaiom'
said Mr. Alexander. American investors
. would have ihTdSt upon thcm many -
, sucs of VARYING values. som" based a..
: Tho host collateral and som" on co|iai
oral Of very uncertain Value. HlS plan,
: he nrinrrd out would b" means -
. rrntc,t III" American people FROM m
: sound Investments in European S''nr =
rlcs. IL believe 'ha' unless broad
minded scheme Of Tins sort IS adopted
! ,hcrr arr grave times ahead.
"SolutIon of tho problem ~ SUPPLY
Ing r.uropoan needs should not be under
taken by governmental means. sad
: Mr. Nc>andcr 1T should b" carried
lout with private capital not govern
ucnt funds Nevertheless. IN" necessary
measures should br organized and al
ministcred on s"rnr-publc basis AMI
along lines that will have III" support
ard approval nf tho government Of IN"
I-uitcd States The lmC - past Tor IN"
iI'rt,rd states government /" finance our
allie. N Europe as It did throughout
rur participation IN 'hc war. 'h"re are
,.l,,,y or dnmcSiIt problems Tor affN0-