The Washington herald., 1919-02-27
LEND TO ALLIES,
BANKER URGES
Holland Repeats Argu-
ments of Dwight W. Nor
row Favoring Credits.

II was a different message "uiSh
Dwight W. Morrow brought to repre-
sentatives of almost all Of the trust
Institutions of the United States a
few days ago from that which the
senior partner of the house of J. r
Morgan & Co., OF which Mr.. MORROW
is a member. brought to the Ameri-
can bankers little over three years
ago. Then England and France were
seeking Jointly as nations, loan from
American bankers, the aggregate or
which was to be SS00,Ooo,00o. No Sc
curity was to be behind this loan eX-
cepting the good faith, the resources
and the credit of the nations. The
proposition was without any prece-
dent in this country. In fact, the
United States had never sought to
borrow from any other nation money
in large or small amounts.
For a little while some hesitation
about receiving favorably this prOpo-
sition was made manifest, but it end
ed when ]. P. Morgon appeared be-
fore representative bankers and Said
that in his view the proposed loan
was in every way commendable and
that he felt that the American Bank
ers' Syndicate should not hesitate a
moment about accepting the propo-
sition. After these few words were
spoken all doubt disappeared and an
an American banking syndicate un-
derHrote the proposed loan of $780,
oo0.O0O to Great Britain and France
Jointly. Now Mr. Morrow, soon after
his return from France and from his
former association with Gen. PERISH
ing, appears before representatives OF
the American trust institutions for
purpose of telling them the truth with
reference to the contemplated new
Government loan. which may be 81
o0o.OO00oo or more.
Warned of Difficulty.
Mr. Morrow did not mince words.
nor was there any suggestion of flat
teTy in what he said. He told these
bankers that il was undoubtedly TO be
a severe strain upon them iw they
were adequately to assist in the float
ing OF this new loan. 1t would be a
hard pull for various reasons. In the
first place, the patriotic sentiment. or
what he called the war sentiment.
which was an inspiration TO the
American people to subscribe ana
oVeTsubSCribe for each one Of the four
liberty loans that were flOated dur
inE the war would not now be avail
able. because the war Is over II
would be. therefore, a matter Of duty
for the American bankers to make
certain the success of this loan, no
matter what the terms contained in
the Offering may he
Mr.. Morrow spoke as one well quail
fed to speak when he said that no
matter whether the loan be for as
much as S1.O0O.O coo 600 OT even $1,000
10000 that amount would hardly be-
gin to compare with the financial
burdens which the people of Great
Britain have willingly accepted and
about which they have said almost
nothing. CertainIy, to use Mr.. Nor
rows words. England has not boasted
about her stupendous financial
achievement II England could do all
that she has done and do il uneom-
plsinin=ly. no good reason could be
given why the United States cannot
do all that the government now asks
in the way Of providing funds which
are needed in order to take up what
remains of the responsibilities of the
war
Mr.. Morrow has been made familiar
with the English situation. We had
accurate information respecting the
amount Of the resources which Great
Britain possesses. This information
was given to him contidentially some
few years ago. II was sufficient to
convince him that whatever the ex-
penses might be. due to the prose-
cutiOn of the war. nevertheless Great
Britain was in position. without
strsining her credit, to meet these ex-
penses. She was also in position to
aA
bankers and also a very large line
OF credits from the American govern
ment. Great as the resources Of Eng
land are they are far less than the
resources Of the United States. al
though of a very different kind. Hers
are in great measure made I'D of in
vestments which her people have
made in the securities issued by her
colonies and also by other nations
Ours, excepting for tho temporary
aud unusual resources. which are IL
lustrated by our credit. is extended
TO foreign nations. and by our enor-
NOUS supply Of gold. OnC-third the to-
tai gold supply Of the world. are nat
ursl Resources. many Of which lie in
One comment which Mr.. Morrow's
the earth awaiting development.
remark caused was based upon what
seemed to be the clear intimation BY
Mr.. Morrow that the banks of the
United States will probably have to
assume the greater part Of the burden
which will be created when the next
loan is offered by the government,
That has been for sometime the view
OF men who are giving much time to
this subject and are competent to give
good opinion. Ultimately, although
gradually. the loan may he absorbed
IN the greater part by the American
people.
Finance Question Looms.
One feature of Mr.. Morrow's ad-
dress confirms the opinion that next
in Importance to the determination of
the peace treaties and their ratifica-
ton stands the financial situation.
ss~adually there will come to all peo-
pie good understanding Of the unpre-
cedented magnitude of this aftermath
OF the war. The great leaders i'm
hnance are already talking about it.
Even from Germany comes a sugges-
ton which was made by the able
PRESIDENT Won Gwinner, of the I'm
perial Deutscher Bank. that there be
Su summoned as soon as possible into
international conference the abIest
financial leaders of the world for the
purpose Of re-establishing the finan-
cial balance of the world. He even
goes so far as to suggest that there
be an international agreement under
which each country will pledge an
annual pro rata sum to the United
states and upon that basis the
United States could extend credits TO
the world. +.
This plan may be impractica BILE but