The Washington herald., 1919-08-24
BY JOHN LLOYD BALDERSTON.
Copyright. 1919, by the Mcclure
Newspaper Syndicate))

newspaper SyuulCdIc-JJ
Europe is looking across the At
lantic at US with hope that is turn
ing to fear, evaporation turning to
despair. Fear and despair are gain
ing the upper hand as the people
across the seas are being brought
to believe that the United States
will not guarantee the settlement.
will not pledge herself to enforce
peace, will not or cannot effectively
help in the real construction Of the
PROSTATE continent where the war
was fought out.
We were the anchor that was to
hold fast the ship of civilization till
the storm had passed. So Europe
thought Of US, and now she Is begin
ming to believe that the anchor will
not hold From many sources this
has been made clear to US: every
European mail brings fresh evidence
that doubt as to our sincerity, our
purposes. our ability to fulfill the
tasks other peoples have pressed upon
Us, IS growing rapidly.
Europe Is worried about the Ameri-
can attitude towards the peace and
our part in world politics Eminent
statesmen in Paris and London fore
see dire results all over the continent
il the Senate ftIy turns down the
treaty. This would be the signal. it is
thought broad. for every little nation
in the Near ESast to repudiate the au-
thority OF the Versailles document,
and set forth IN arms to grab what it
wants. How greatly the interests OF
Germany would be served by the fail
IRE Of the peace dictated by the al
lies to stand will be discussed below.
Situation Here Alarms.
But recent trade and financial de-
velopements in this country worry
Europe much more than the uncer-
tainties Of the treaty and the league
Of nations
Great Britain, since the armistice.
has felt herself able if she can COM
pose her labor troubles to live through
the present crisis and emerge solvent.
1t is sober truth to say that every
other country in Europe has felt for
the past year that the only hope OF
financial and political stability lay
in the United States. Europe has now
discovered that we, too, have our own
war troubles; that food scarcity has
sent up prices so high that the gov
ernment has had to interfere; that
so far from our cpital being unlimited.
our banks and Wall street are in
trouble because they cannot hnd
enough money to finance the pressing
peace necessities of America.
The last blow is the hardest OF all
to Europe. Every country across the
Atlantic, big and little. old and new.
is lined up at Wall streets window
with applications for loans aggrega-
ting tens Of billions. AL look to Amer
ica for the capital that will enable
them to pull through.
And Wall street has banged down
the paying teller's window. The loans
are not refused. but the world borrow
ers are told that the time is not pro
rrious. TO Americans startling
breaks in foreign exchange cause
r.asy.u- comment. and a few business
.r-L worry because they fear that at
tho prevailing rates foreign countries
IT, 70 unable to pay for American
-,,IS. To Europe. the dry figures
rra- appear daily on the financial
r--e= mean poi=nant tragedy, per
.-..r- IN certain countries complete
r,..-oric ruin with Heaven knows
r..t Russ an-Iike chaos to follow.
Wall Streets Position.
Wall streets position is clear
enough. have Just discussed the
position with a great international
banker. LAYING before him some OF the
data sent me from Europe. What
can we do?" he said. The exchanges
re breaking indeed. It is true that
II The pound comes to be worth four
dollars or less. il the franc sinks to
A lime and the lire even lower. Eng
land and France and Itaty cannot
buy our goods. But exchange u
H-5a L3y
nothing 10 sell us. and they want only
to buy. They can not pay with goods
for they are not producing goods,
and their gold is only a fraction OF
what they owe US now"
They want TO paw for the goods
they buy by arranging further enor-
nous loans" I suggested.
But what about the security -
asked the banker. is it good business
to say, to a man. Lend me more
money. or I cannot pay you the inter-
est on what I already own you2' If
we furnish these credits, il simply
means that America will supply goods
against promises to pay backed up
bv no assets excepting a vague faith
that at some time in the future the
broken down wheels Of industry will
turn again"
ought you to look at it as purely
commercial transaction" asked
These people have been ground to
pieces in our war: we suffered least,
and they think we ought to make
il possible for them to survive It
is a cry of Save US or we perish
@Cannot Take the Risk
The banker leaned back in his chair
and nodded thoughtfully. That's
the way I should like to look at it."
he said. But as a banker can't
Nobody in Wall street can. We are
trustees Of the money of the Ameri-
can people. II the American people
want to risk their money for reasons
Of pity or duty or because they think
it to their interest that Europe should
survive, let them say so. But at pre-
sent Wall street cannot pour capital
into risky foreign obligations while
safe and sound business at home is
cIamoring for money and offering
good interest rates.
7 can only see one way out. Let
the government issue bonds for Eu
ropean credits, and explain to the
public that duty and gratitude demand
subscriptfon. II some billions Of such
bonds are taken, imitation here will
be worse and prices will go up higher.
But we shall be sharing the burden
with Europe. pulling them through
over there, and in the long run our
l philanthropy would pay. For We can
knot fford to see half Of the world
peoples who in normal times are our
good customers sink into rim Only