Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-09-09
LEADER In FINANCE
Congressman Stevenson Wins Re.
markable Distinction.
PILOTS GREAT BILL THROUGH HOUSE

| important mSdsuTo tVfsV4eo W ostss~'
Up and Take Care of international
Credit in Such way az to stimu.
late Business In the United States.
Hon. w. F. Stevenson representative
in congress from the. Fifth district OF
South Carolina seems to be dropping
into the dominating legislative stride
on the floor of the national house Of
representatives that he achieved in
the state legislature and held as long
as he continued q member of that
body. ;,
/ Previous to the world war, Great
Britain and Germany were the only
two nations which had international
banking systems anything like ade-
auate to the requirements Of. inter-
national trade. Great Britain, of
course, coming/ first and Germany
second, with such nations as the
United States relying upon one or the
otf ,emed to best suit the particu-
la. transaction involved. - 4
1t is conceded all over the world that
the Regional Reserve banking system
Of the United States which first began
to get into operation in the fall Of 1914
saved the situation for America in the
world war, and not only for America;
but for the Allies. Except for this
banking systera Germany would have
won the war. t
But whilefhe Regional Reserve bank
ing system was quite adequate for
domestic purposes and while under
normal conditions it would have
eventually proved adequate for inter-,
national purposes 1t was far from
adequate to the unthinkable inter-
national financial situation in which
the world finds itself at the beginning
OF the great reconstruction period now
upon us.
Both Great Britain and Germany
have fallen to the rear in matters f..
nancial and America Is now further
to the front than she has ever been;
but still America is without the fl
nancial machinery necessary to make
the best use of her unlimited resources
and the construction Of this machinery
is the problem with which congress is
now wrestling.
All of, the European countries arc
confronted with the need for credit
the same need which confronted the
south at the close OF, the Civil War
They all have tho potettiaf RESOURCES
just as the south had in heraability TO
produce cotton; but no money avail
able for making use of those resources.
The need is for credit and credit from
America, the only country potentially
able to supply that credit Credit
machinery involves more or less risk,
in this case risk far to heavy to be
incurred by private individuals or even
by such financial corporations as now
exist.
The committee on banking>and cur
rency of which Mr.. Stevenson Is q
member; but which is dominated by
Republicans, had worked out plan
under which 1t is proposed to allow
such National banks, members Of the
Regional Reserve system, as desire to
do so, to subscribe as much as 8 per
cent. of their capital stock TO big cor
porations that will undertake the f.
nancing of foreign industries of various
kinds. The plan worked QUIT Is satis-'
factory to the committee; but from
the nature of the problem, too COM
plicated for the comprehension even
of the average congressman, 1t was
necessary to have the matter explained
on the floor by some onef who would
be able to answer any question that
might be asked and this duty, by
agreement Of the whole committee,
was delegated to Mr.. Stevenson. How
well he did it is attested by the fact
that the bill passed almost without
question.
The main part of the explanation Is
comprehended in Mr.. Stevenson's
replies to questions Of Representa-
tive Reavis, q Republican leader from
Nebraska, as follows:
Mr.. Reavis: "Will the gentleman
yield?"
Mr.. Stevenson: YES"
Mr.. Reavis: The position Of the
gentleman, take it, Is that with Eu-
rope in it's present condition it would
be impossible for them to buy and
pay for our products" <..sa
Gives an Illustration.
Mr.. Stevenson: That is the situa-
ton. l will give the gentleman an
example. Take a cotton mill In Bel
gium just rehabilitated. That great
corporation was eminently successful
before the war devastated the coun-
try. 1t took all of their resources, alb
solutely to the limit, to get ready to
begin and erect a splendid plant,
which has a potential future, but it
has been unable to buy the cotton.
What will 1t do? 1t can issue bonds
to the bank in Savansah that handles
the bills of exchange for cotton, but
for the men handling these bonds it
is too big a proposition. But If you
have bills of Exchange, corporations
that can give credit for that purpose,
with an agency over there to finance
and carry it on, they can investigate