New-York tribune., 1919-09-18
Europe Solvent,
But Needs Our
Help, Says Sabin
U. S. Cooperation Essential
i'll Reviving Industries
Abroad, So Nations Can
Meet Their Obligations

With adequate American coopera-
ton, the established countries of Eu-
rope will without question be able to
revive their Industries and normal
trade conditions, thereby providing
staple basis for credit, according to
Charles II. Sabin. president of the
Guaranty Trust Company.
at is certain" the banker adds, in a
foreword to booklet on "Thc Sol
vency of the Allies" which the Guar
anty Trust Company has prepared,
that American banking institutions
cannot handle the credit demands pre-
sented without cooperation. Such CO.
operation must be accorded by our
producers. BY team-p!ay among these
important factors in the situation
Europe can be put on its. feet fnan-
cially and industrially, and this coun-
try can be placed in position Of
unchalenged leadership in the busi-
ness affairs Of the world.
This country is facing is greatest
opportunity and its greatest obligation,
and if the sacrifices which have been
made in the war are not to be in vain
we must rise TO meet that opportunity
and that obligation fully"
The bookl-t, which stresses the ia
ton, deals specifically with Great Brit
ian, France, Belgium and Italy, After
asserting that The present resources
and producing power of the four prin-
cipal European Allies are ample to en-
able them not only to meet all war OBJ
legations but to regain their normal
position in the words business as We'll,
the booklet says in part:
The larger portion Of the war debt
of the Allies is internal. The ability
TO meet an internal debt is purely d
fiscal problem, because there are no
additions or subtractions to the ma
tiona. wealth, and the payment of in-
terest on the debt implies the taxation
ing paid to present holders OF the
bonds, which affects only partial re-
distribution of the national wealth
The problem of meeting external debts
is of vital significance to the national
wealth Of the country"
Although Great Britain spent more
than any other nation in the war. s.
per cent of the debt accumulated is
internal, and large share Of the ex-
penditures will be taken care of by
taxes. Regarding Britain's external
debt the booklet says:
"The interest and amortization OF
which is owed abroad. will amount tc
approximately $3.50, 100000. AS an off
set, the interest due Great Britain or
advances made to allies and dominions
amounts approximately to one and
three -tenths times the total intercs,
on the external debt. Payment in the
main will have to be made in the form,
of commodities or service, which in
international trade accounts contrib
utes to the credit or export side of the
ledger. Chief among these counter
balancing items in\the case Of Britain
have been the returns from invest
ments abroad and the receipts OF
British owned ocean carriers. 1t is
ments before the war 5. ounted TO Sl9,-
mate $14 10000 900. Broadly speaking
then, the returns from foreign invest
ments that may be relied upon in bal
ancing the international account have
been reduced by about onefourth dur
ing the war. Nevertheless, the remain
ing foreign investments exceed the eX.
ternal debt by about $4,000, 100000. anC
the yield from these investments al
normal rates would not only pay the
interest on that debt but also leave
q large margin to England's credit.
France, too, though staggering undel
large internal debt will be able
amply to take care of her external OBJ
legation, according to the booklet, which
states that of the total debt about 50,
1855, 100000 is external. AS offsets tt
the external debt there are French in.
vestments abroad estimated at IS 100,
100000. The peace budget Of France
will require approximately 100000
! 600 or 17.000,0 100000 francs, which i: