Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1919-07-15
SAYS ALLIES MUST
GET MORE MONEY
U. S. Action Necessary to Pro-
tect Billions Already
Lent

Washington, July 15.-The United
States must lend the Allied Nations
approximately $4,000, 100000 addi-
tional to recover the $4,000, ,000,0 900
loaned those nations during the war,
in the opinion of Charles II. Boyn-
ton, New York financial expert. 1t
was learned that he has submitted
to the treasury officials mem
orandum in an effort to convince
them of the necessity of a definite
governmental policy with respect TO
foreign investments to promote such
investments among the people of
the United States Ito prevent fin
ancial cataclysm resulting from ex-
listing conditions in Europe"
Mr. Boynton is endeavoring to
convince Secretary Glass and other
officials of the Treasury Department
of the necessity for some such plan
as that urged by J. z. Morgan.
Henry p. Dawson. Frank A. Van
| derlip and other bankers. whose
ideas are being embodied in a bill
prepared by Senator Edge, of New
Jersey. Mr.. Glass and the Federal
Reserve board are opposed to the
plan. Senators Knox, Borah and
other opponents of the League of
Nations have charged that big bank
OiS "OiV SNIPOt tiit = NilS i<SeibuS bS-
cause of their interest in the pro-
posed foreign credits pool.
BOynton Outlines Plan
The Allied Indebtedness can most
quickly be overcome, Mr.. Boynton
says, by American absorption of for
eign securities. A memorandum
prepared by him for the treasury
, follows:
Last spring 1 was brought into
touch with a movement in New
York designated to undertake the
education of American investors in
reference to foreign securities. 1t
was realized by all financial insti-
tutions that the ability to rehabili-
tate Europe financially was to de-
pend largely upon the rapidity with
which financial and bond distribut-
ing institutions could pass on to
ultimate American investors the Sc
curities which would issue to ac-
complish the financing referred to.
II had returned from Russia,
where L had seen the institution of
bolshevism and what it had done
to property rights. / was impressed
with the possibility that the form
fof disease might spread into other
portions of Europe and that invest
ment in foreign securities would be
most difficult problem to handle,
unless there were some form of as
surance that the investments so
made would have the support of our
Government and the protection
which the United States alone could
give.
These facts seem to me irrrefut-
able:
First. Europe owes the United
J States about $4,000, 100000.
Second. In order to recover
that Indebtedness it will be neces-
sary to extend still further credits
perhaps $4,000. 100000 more.
Third. The method by which
this heavy Indebtedness can be most
quickly overcome is by the absorp-
ton of foreign securities by Ameri-
can investors.
Education Is Urged
Fourth. The American investor
has not yet been educated to pur-
chase of such securities. Up to this
time the most extensive foreign in
vestments have been made in Mexico
and Russia. The experiences there
have not been conducive to further
investment in foreign lands unless
some form of protection and as
surance of government support Is
given.
Fifth. Therefore II seems es-
sential and fundamental that before
rehabilitation of Europe financial
ly can be made, n firm foreign policy
must be adopted by this Government
which will lend itself to "A support
of all legitimate American enter
prise and investment abroad.
Sixth, Until this is done II
would seem to me that effort nj
foreign trade expansion and absorn-
tion of foreign securities must be n
long process. The vital necessity of
financing Europe TO prevent a
cataclysm Is admitted by their fin-
ancial experts. and should II not be
accomplished n League of Nations
| would seem to be without vaIue