The Washington herald., 1919-04-22
GREATER SUMS
NEEDED BY U. S.
Holland Sayt Liberty Loan
Issue VIII Pave Way
for Fuure.

We shall continue t. think in terms
of billions not only when our crops
are referred TO but also the new
financing which Is to be taken up inn
ruedistely after the treaty Of peace u
signed. fer which preparations are
already urder way IL the people alb
! sorb the lean. as the Secretary OF the
Treasury. Mfr. Glass. and the COVER
nor OF the New York Federal Reserve
Bank. BENJAMIN Strong. and Leopold
Frederick. Who Is now recognized as
one of the leaders in thought and
4 practice of American finance. believe
ethst IL will pc thus absorbed. II never
theIess will prove to be. compara-
tivelv speaking. almost n tribe when
the larger financing is under way.
Our banking and financial leaders
are firmly o. the opinion that imfI1e-
diately after the peace treaty IS rati-
fed the absorbing questions ana
really the primary impulse whicn
when developed may establish sat
isfactory sodety Of nations viii De
based upon the handling Of economic
and financial problems. II these are
well handled then gradually but surely
order and peace will be restored upon
the continent of Europe and perhaps
ultimately in fussis. while prosperity
will he abundaJ IT in. the United states.
New Issues Planned.
IL the people buy four billion FIVE
hundred millions of Victory notes. as
II is presumed they will do, that
amount will be & little less than half
Of another item lggrezating ten bill
lions which will be brought before
the United States for a consideration
by and by. Plan. for this undertake
ing are already Jnder consideration.
but II is deemed ~ those who have
the plans in contemplation that II Is
not expedient at resent, or at least
until the Victory Ian Is absorbed. to
make these plans public.
!. Immediately after the armistice was
sSigned a report was made in this col
umn OF the view tken by some of
the men of financial influence and au-
thoTity respecting Our trade relations
with European countries. and incl
dentaily with South America, as soon
as treaty of peace Ia. signed. Some
Of these men had reson to know
that Europe would maxi speedy ap-
proach to the United Suites if credit
could be secured for tn purpose o.
buying raw materials aId manufac-
tured commodities with which to re-
store the industries that were deVas-
tate by war.
Much Informal discussion has taken
place since the day OF the aTmistice
among the men Of finance and busi-
ness leaders and especially amonE
those who have acted as agents fos
Europe in the purchase Of supplies il
The United States. Gradually the
vague view which was at frs taken
has crystallized. so to speak. into a
plan by means OF which Europe can
not only buy in the United States. but
can secure funds with which 10 pay
tor these purchases.
: Early in the winter n statement was
kmads that IL we wanted TO securc
Jrts European trade We must pnt our
n elves in position TO make IL possible
BIO paS FOR u bv one or possibly tw1
methods One Of these methods l.
the buying hy the United States OF
srtw material and commodities IL,
tarSe amounts in other parts Of the
world But " was early seen that our
purchases Of this kind. excepting in
abe care Df South America. would do
little to offsct purchases which Europc
desired TO make in the United states
Payment W sold iS out of the Aues-
ton. partly. because the United States
of the entirN amount of available golC
in the world Therefore there re-
maius only ole "th"~ wsr. nnd that
is the purchase by the people OF the
United States. by the banks and by
large private investors OF European
securities
Hint from Europe.
Rut ftSis almost absurd to ex-
pect that the American people
would. unless there was excellent
aid given. make heavy investments
in foreign securities. This is some
thing which our people have never
done. The banks have lent some
millions to Japan and accepted Jap
aEese bonds as sec1rity. but the
, United states has never been an in
Vsstor IN the securities of other ma
tons. Not until the government at
Washington began to offer govern
ment bonds TO the public. did the
majority of the plain people Of the
United States begin to invest some
part OF their income or savings in
bonds.
There remained then the adyis-
ability of taking n hint from Eu-
rope. Leopold Frederick. who has
gained fine recognition for the skill
and ability with which he estab-
IiShCd dollar exchange in Chilli AMI
VINO has =iven careful study TO n
nanciaI conditions Of all kinds.
frankly says that/we can learn from
Europe. particularly from London.
and also from Belgium. Germany
and switzerland a method by means
of which the movement of foreign
securities towards investors in the
lfufted States can he easily and for
all VINO are interested prontably ac-