The Washington herald., 1919-06-25

RESTORE EUROPE
IS U. S. PROBLEM
Now Face Gigantic Task to
Finance Prostrate Nations,
Says Holland.

1T is indeed a gigantic, probably
unprecedented financial problem.
which the United States is now called
upon to solve. are the words in which
with emphatic terseness the Federal
Reserve Board at Washington speaks
Of the relations which the United
States must bear to Europe. IL we are
to lift those nations from their pros
peace and prosperity.
This statement has been read and
re-read by many of the leaders In this
city who saw that while it is true
from one point of view. nevertheless.
Il would have been more accurate II
the Federal Reserve Board had omit
ted the word probably" with which
II qualified the word unprecedented" 4"
No record hitherto made, at least
none which is now available in this
city for study. tells a story of financ-
ing comparable with that which the
United States must undertake and
complete if Europe is to be saved.
Some have turned to the records of
our Civil War. only to find that al
though the Secretary of the Treasury.
Governor Chase. was greatly embar-
rassed at the beginning because the
credit of the United States was at
that time far below par. nevertheless
he was able. almost alone. to work
out the problems and in that way to
secure even the billions that were
needed by the government.
England worked Out Problem.
Secretary Chase had behind him the
truly marvellous resources of the
United States. or that part OF the
country which stood faithful to the
Union. He knew. for he had been
Informed by David A. Wells and other
experts. that our resources were am
pie even if the war were continued
ten years or more to provide funds
that were needed for the support of
the armies and navy.
England. the record shows. worked
out the financial problems which rep
resented the South African war. al
though the money markets Of the
world were not upon a normal basis
until England's men of finance did
solve the problem. They worked II
out in about four years. The record
of the times which followed the col
lapse Of the first Napoleon shows con-
ditions somewhat similar. though very
remotely similar. to those which pre-
vailed in Europe after the armistice
was signed last November. But the
problems were easily solved.
Therefore. it is reasonable to as
sumo. in the view of some of the
leaders in finance and industry, that
the conditions which now exist and
the financial problems which must
he solved IN order TO meet and relieve
the conditions do not represent a
probab bly, unprecedented financial
problem. but one which is. on the
other hand unprecedented both ab-
solutely and relatively
There are other matters OF very
~reat Importance which now concer l
the banks. the financial leaders and
'Nen the government. Snd these will
"r"vail confidently with the so-called
gigantic" undertaking on the part
Of the people of the United States
Of the work of restoring Europe
For instance, some of the financial
leaders point to the intimations
which have come from Washington
that the Secretary of the Treasury
must speedily make new apepals
for fuAtIs with which to replenish
the Treasury Department There will
be need of some billions. 1t is thought
doubtful that Secretary Glass will
ask the people again to subscribe
as they have for five loans He may
he compelled to do this. but the
chances are that such obligations of
the government as will represent new
loans will be fioated by the banks
and by other means in such manner
that the public may gradually alb
sorb them
Then again. the United States is
to he called UpoE to furnish financial