New-York tribune., 1919-03-29
l.. Can Crush
BOIsI,evisn With
Loans, Banker Says
Social Unrest. Perkins A.
scri- Can Be Stayed by
Providing Nations With
Funds for Reconstruction

Americas financial leaders have if
IN their power to crush the threat Of
worldwide Bolshcvism if only they will
turn their efforts toward furnishing
disrupted Europe with the means for
establishing industry, James H.
Perkins, executive manager of the
National City Bank, recently lieutcn-
ant colonel in the United States army
of occupation, told the members of the
Bond Club of New York at luncheon
yesterday at the Bankers Club.
"Perhaps one of the greatest threats
that exists to us, as we'll as to the
rest of the world to-dav." he said. "is
the social unrest-the Bolshevik move
mcnt, and the rest of it, The Bolshevik
movement is largely possible in those
countries because of their industrial
condition. If Germany, if Austria, and
If Russia. believe, could be put in
position to put their men TO work
could be in position where their men
Know where their next meal would
o'', tiliHh tHc DOISnoN1k threat
would vanish very quickly from these
countries, and when that is assured
you have Immediately got rid of one
OF the greatest difficulties of doino
business with them.
Must Reestablish Industry
"Therefore what we have oot to do
IN some way or other is to see TO il
that those men have the means, those
countries have the means for reestab-
fishing their industrv."
Colonel Perkins was talking on "An
international Viewpoint with Reference
to Americas Participation in Financing
World Commerce." and he drew 81 pict
ure which showed Americas investors
furnishing the funds for financing
great portion Of the worlds trade in
the future.
Nothing can be done in the way of
foreign trade or foreign investments"
he said. until we have done something
IN the way of foreign finance We are
IN the position of holding a large part
of the wealth of the world. Now all
the emphasis that ! have heard placed
on foreign trade since | have come
home has been the question of selling
TO europe how we should 20 about it,
think that it is II fundamental fact
That we cannot go on selling to Europe
unless we provide some way whereby
Europe can pay for what we sell her
There arc three methods of pay
ing; one, to pay by gold which it out
Of the qucstion-shc hasn't got the
gold; another. to pay by imports into
this country from Europe, and the
ihlrd, 20 pay by our giving credits. and
giving long time credits, TO Europe 40
TINT she can rccstablish herself.
Trade Can't BE Oncsidcd
Purely from selfish point Of view.
purely TO increase our own export
trade, | believe it is incumbent on US
TO take up the question Of importing
into this country everything that we
can take from Europe If We do not
import from Europe VIC cannot export
10 Europe beyond II certain amount;
one thing has got to balance the other
TO a large extent, and, further than
that, we have got TO advance them
very large and very long credits
eventually.
Colonel Perkins expressed the opin-
ION that the balance Of trade will be
in favor of the United States for at
least five years.
"Now. they owe US Europe owes
u.s., he said, "in the eighborhood Of
$4,000, 600 600 to-day. We have bought
back from Europe our own securities
that before the war were taking to
them every year probably $250,0O0 900
in interest Those are now on this
ly $3.50, 900 900 income year. That is
interest alone Europe has lost during
the war the possession of approximate
We are the bank as it we're; those
a fixed charge that is right out of them
to start with. In addition to that, the
depletion Of raw matcrnls is such that
they must call upon us The balance
of trade. as | see it, must be in our
favor for at least five years to come.
extent we are going TO do bust
are the fellows that we are going TO
do business with. 1t is not credit
statement that Will look very we'll to
the ordinary banker in his own busi-
ness. A manufacturing concern with
condition Of that kind would not be
looked upon with favor, and ! think
there is very strong feeling through
out the United States that Europe is
busted outft-that we are prosper
Gus, that we will just build fence
about them and let them get along
as best they can.
Must Buy Securities
There is one thing will have to
tell you. 1t is vital. 1t does not make
any difference what their situation is
how bad it seems to be, we are 90
ing to finance Europe to a very large
ness with Europe to large ex-
tent, and we are going to start right
in educating our people to that idea.
The only way in which we can do bust
ness with them is for our country to
become educated to the idea that we
viii buy European securities, when, Is
and If they are properly set up. We
have got to make a good security for
you gentlemen to put out, and you
have got to help make it.
For anybody in this country to say
that we can enjoy continued prosper
ity with from four to five hundred
million people in what has been ap-
proximately the centre Of civilization
of the world living in a condition Of
want or a condition of anarchy, a CON
ditlon of unrest, is absurd. Colonel
Perkins declared.
Resolutions were adopted by the
Bond Club yesterday pledgin the or
ganization's undivided attention and
encrglets toward making success of
tho flotation of the forthcoming Vic
tory Liberty Loan.