The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-25
GIGANTIC POOL
URGED HERETO
SUPPLY EUROPE
American Property Safe
guarded i'm Plan Outlined
by J. S. Alexander.
NATIONS SHARE CREDITS
Private Capital Loaned by
Public to Buy Goods for
Export.

Europe can be rehabilitatei and
American prosperity fafeguarded by
n plan to pool Europes needs of credit
and commodities and also 10 pool
Americas resources to meet them, the
whole TO be accomplished by a great
credit corporation OF private capital
free from Government control and po-
litical domination.
This Is the heart OF the rehabilita
ton and protection plan outlined yes
terday by James S. Alexander, presi-
dent Of the National Bank OF Com
merce and a member of the commit
tee recently formed here, upon the
suggestion of Henry p. Dawson. to
investigate workable methods for sup
plying Europe with American cash
and goods during the grave recon-
struction period. The committee is
headed by J. p. Morgan.
Mr.. Alexander believes he has de-
vised a practical workable plan which
will restore European industry and finan-
cisl stability while protecting the
American public in its loans to Europe.
He notes, in the first place. that ade-
auate protection for American investors
ia an essential factor II continued CO
operation with war stricken nations is
10 be had Credit and commodities must
come from America, which has ample
resources to meet the demand, however
vast Eurcpes requirements may be
therefore as Mr. Alexander views the
gigantic problem, the main question is
how the job can be most efficiently done.
scmi-PubIic Basis Thought.
He comprehends that the time for aid
b. Government compulson is past and
that great as the problem is it must
be worked out with private capital
strongly organized. The necessary
measures. he holds should have semi
public basis and should be along lines
that will have the support of the Gov
eminent of the United States, but the
actual power and authority OF whatever
plan is adopted must come from wide
spread public cooperation rather than
from Government auspices.
THE time IS past" said Mr.. Alex
ander, for the United States Govern
ment to finance our Allies in Europe as
It did throughout our participation in
the war. There are plenty Of domestic
problems pressing for attention to en-
gross the full fiscal policy and activities
OF the Government. ! say that there
should be this removal from political
control because Of my faith in the ability
of American business men of many and
various interests to work together for
great common end when conditions
require II. II there is not this working
together, existing unsettled business con-
ditions in Europe will grow worse and
will inevitably extend to the United
States as we'll
Therefore from the selfish point OF
view OF American interest. II from no
other, this organization in our dealings
with Europe is necessary to conserve
Americas markets and avert possible in
dustrial depression
After pointing out that the United
States has the necessary supplies to
meet the needs of Europe, that crops are
booming and industry geared UP 10 n
degree OF productivity never before at
tanned, that the United States is the
only nation from which Europe can
draw the succor needed, Mr.. Alexander
proceeded to develop his plan:
There may, be mentioned two general
methods to be followed in marketing
these American goods. One you'd be
the unrestricted, competitive method of
normal times. where each individual In
dustry and business man had TO fight
for his markets and the strongest won.
Tho other method is that OF orgadza
ton, where the total market for the
United States, in respect to all nations
and all commodities would ba submitted
to analysis and ALLEGATION FOR the
common good. l feel definitely that
this second method must be followed
under existing circumstances for at least
a short period of years. until such time
as worldwide conditions work them
selves back more nearly to normal This
method should be followed to conserve
the commercial interests Of the nation as
= whole.
Credit Risks for Europe.
Granting that Europe is to carry on
her purchases with us on a credit basis.
let US consider exactly what this means.
The peoples OF Europe represent differ
ent degrees of credit risks. 1t would be
safer 10 lend money in some countries
than in others Therefore, II there were
not an organized control or American
credit the stronger countries would be
able to crowd the weaker countries out
Of our money markets or else the weaker
would be forced to pay eXorbitant rates
They might be able TO do this for a
time. but they would have to conduct
their business with US on such ruinous
basis that in the long run it would I'M
doubtedly mean financial disaster 10
them, and by that very fact tnapcia
loss 10 American investors. who would
he placed in the position Of having
loared their money to bankrupt nations.
From the point OF view OF American
self-interest, therefore, and Ignoring all
claims OF humanity, there must be an
eauallzing OF credit opportunity ns be-
tween the strong nations and the weak
Again. the commodities which Europe
must come to America 10 get are many
food products, Industrial metals. tex
tiles, &C. Some are more profitable to
produce and sell than others. Some
would enjoy a greater immediate demand
than others. The stronger commodities
n,ould naturally tend. therefore. to crowd