The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-11-22

pastor Refreshments were serNeu.
did not commit the government to Il
guarantee of ii.
But when the President arrived it was
discovered thta he was completely alb
sorbed in the League of Nations cove
nant and the treaty of peace, being anX-
ions that the Senate should as soon as
Practicable SO act as to make ratification
certain. The President could not be ex-
pected to give attention to any other
subject Therefore the Dawson plan was
temporarily laid aside awaiting the mo-
ment when the President could give at
tention to other matters than the SEN
ate's relation to the League of Nations
covenant and the treaty of peace.
WHEN THE TREATY is RATIFIED
When the treaty is ratified by the SEN
ate then an Immediate attempt VIII he
made to secure the approval of the gov
eminent for the Dawson plan or for any
plan which contains the element of prac-
ticability whereby Europe can be re-
lieved, the dangers now associated with
foreign exchange situation eliminated,
and our international trade be restored
to normal conditions.
Mr.. Davidsons plan In Its general fea-
lures is so easy of comprehension that IT
will he necessary to do no more than to
report it's chief or fundamental features.
III Involves the ESTABLISHMENT OF an VI
ganization, the stockholders of which will
be representative citizens of every part
of the United States. To eliminate all
suspicious that it might become a ia
vored instrument of the banks whereby
they could gain undue profits Mr.. David
sor would have the banks proportionate
ownership of the stock not in excess of
% per cent. All of the rest of the stoca
should be in the ownership of those who
of American commerce and International
trade ard it is regarded as desirable that
the farmers of the country, who are now
owners Of so marv millions of Liberty
bonds, should also be well represented in
the stock ownership.
WHAT THE CAPITAL SHOULD DO
II matters not especially what the first
capitalization of the organization should
be. Mr.. Dawson has sometimes spoken
tentatively of 1000, 900. although per-
haps 800, 900 900 might be better origi-
mai capitalization. Then perfected it will
become a national institution, for it will
be in the ownership of representatives
of lal that is making now for American
progress
To illustrate the method of operation
1t may be worth while to take the case
lof cotton planter in the south. He re-
ceives letter from a manufacturer of
b'Htiic SCuuS III I-OlduQ WILL WiiOfii pei
haps before the war he had dealings
that were satisfactory. This manufac-
turer is anxious to get cotton so that he
can operate his factories. He therefore
asks the cotton planter if he will sell
so many hundred bales of cotton and
wait for his pay The Polish manufac-
turer is not in position to pay imme-
diately. He must wait until he has spun
the cotton fibre into cloth and sold the
cloth Than wi tho tins
ceived he pays his obligation to the
southern planter
But the planter is unable to carry
transaction of that kind. Therefore under
| the Dawson plan he would be able to go
Ito the corporation and put before the Of
| Ulcers of the corporation the request
| which he has received from Poland. Hav-
| ing made satisfactory examination. the
corporation would say to the planter.
1--WE will grant so per cent credit on this
| transaction If you will take 20 per cent.
| The planter accepts this proposition. The
credit thus furnished the Polish manu-
! facturer of cotton goods receives his
raw cotton, the planter gets his pay Inn
mediately, and the corporation can wait
until the manufacturer of Poland is able
to liquidate the obligations.
| So also if an Italian manufacturer
needs coal he could in the day secure
the necessary credits. If an automobile
| manufacturer or locomotive manufac-
turer needed credit in order to perfect
the sale of his. commodities abroad. he
could in like manner secure it. and so
IAN along the whole line OF American In
dustrial life. The corporation might is
sue in time debentures which would have
ready sale. In time it might increase
its capital American resources are sur
ficient for any reasonable demand for
lcapital of this kind. In fact, 1t might
be worth while to create new corpora
ton similarly equipped to furnish credit
| This in brief detail explains the main
| features Of the Dawson plan. 1t might
be necessary for the corporation to
maintain its existence for 10 years or
longer When Europe is normal then
/ no longer would there be the necessity
| for corporation of this kind.
| AS soon, therefore as the Senate turns
| to other matters. having finished with
the treaty of peace and the League OF Ma
lions covenant. the so-caiied Dawson
| plan will be revived, although it will be
| in some measure dependent upon the for
NAL approval and moral sponsorship OF
1 the federal government.
I(Copyright. 1919, by the Mcclure News
paper syndicate)