The Greeneville daily sun. (Greeneville, Tenn.) 1918-1920, 1919-10-04
Bankers View of
Europe's Future

NEW YORK, Oct. 4.--(By United
Press. )-That Europe's dilapidated
finances should be bolstered up as a
business proposition, good for the
American people, rather than as an
act of charity, is the consensus of
opinion among leading banking houses
of Wall Street.
To ascertain the attitude of finan-
cial men towards Europe's situation,
a number of financial men were asked
fo rtheir opinions regarding European
trade. The opinion was unanimous
that goods should be sent to Europe
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 American
prices are soaring because of the cost
of living in Europe. They contend
that prices will not drop here until
they have come down IN the most i'm
portant European countries, regard
less of the surplus supplies which
would pile up here i fan embargo
were placed.
AS proof Of their assertions, the
Wall Street economists point to the
embargo in certain goods, such as
sugar, for example, enormous guam
titles of which are ready to be ship
ped. Some goods are already in ships,
which cannot be sailed Exporters
who have bought these goods for ship
ment are simply holding onto them.
On the other hand, it is pointed
out that conditions cannot become
permanently stable in one part of the
world until Europe is settled. Ship
ments of food and materials to Eu-
rope which will enable that continent
to re-establish normal living condi-
tions, ordinarily less expensive than
those of America, will result in an
influx of goods to America at reduced
rates. This would bring American
costs down permanently.
Bankers also point out the advant-
age of buying credit in Europe at
this time when America would re-
ceive enormous prices for goods. The
credit would remain credit, since Eu-
rope has no gold to pay, until it is
paid back in goods manufactured in
Europe. These goods would be sold
to Americans at much reduced prices
if 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.
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
Weaker countries, being less
secure investments, would be forced
to pay high rates which they cannot
acord. 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 doubt
full of Europe's ability to "come back''
is shown by the way bankers are pre-
pairing to lend credit. Many ere spec
ulating 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 Europc's money
climbs nearer normal, when prospects
are considered good by many for
doubling of the speculation.
LONDON.-"If | had to begin life