New-York tribune., 1919-07-09
Bankers to Lay Plans for
Meeting Europe's Finan'
cial Needs Before the
President at Early Date
Czechs Get Big Credit
Advance of S6.30O.OOO Is
Made OH 9O.Day Bankers
Acceptances; Other Loans

President Wilson will be asked to
confer on the financial needs of Eu-
rope with Americas leading tinancier,.
who desire to meet the Chief Execu-
tive as soon as he will be able to sec
them.
The committee which will be select
ed as spokesman for the bankers. It is
expected. will lay before Mr.. Wilson
the tentative plan sor coordinating the
nations lending resources through "A
nation wide, privately owned organiza-
tion. which is developing under the
leadership of Henry p. Dawson, Of j.
+. Morgan e. Co., but the bankers are
not irrevocably committed TO any def
mite technique for handling the situa-
tion. Mr. Dawson from the outset has
insisted that the moral support of the
American government must be sought
in any plan for aiding Europe. The
inanciers feel that the President him
self has very concrete views on the
subject, which has been thoroughly
investigated by his economic advisers
at Washington. Thomas w. Lamont
and the other leading financial ad-
vsers Of the President on financial
matters left with the Presidential
party for Washington last night.
Preliminary Advances Arranged
Meantime, before general system
for handling the problem of financing
Europe as Il whole is worked out, I'm
portant preliminary financing. amount
ing in the aggrcgatc 70 perhaps $780,
100000. is impending.
A cOnsortium Of Czecho- -Slovakian
banks, it was officially ascertalned yes
terday, has borrowed $6,300,000 here
on nnety-day banker acceptances. The
syndicate of American banks which
advanced the money consists OF the
Chase National Bank. the Guaranty
Trust Company and the Central Union
Trust Company.
The loan, the first foreign advance
made to the new country which has
been carved out Of the former Austro-
Hungarian Empire, is to finance the
purchase of cotton in this country II
signalizes the entry of the United
States, which emerged from the war
great creditor nation, into fields it
never before entered. In the ante
bellum days the financial needs Of Bo-
hemia were taken care of almost en-
tirely in Germany.
The first block Of acceptances, which
the Federal Reserve Board has ruled
will be eligible for rediscount at the
Reserve banks. marks only a begin
ming. !. is merely a starting point.
and is designed to set the spindles OF
the new nation in motion. Czecho-
Slovakia needs. according TO bankers
associated with the syndicate here. at
least from S2O,OOO.OOO to $25,OOO,0O.
The loan to the Czech banks is guar
antced by the government. II was
pending for many weeks, and bankers
here declined to 90 ahead until the
peace treaty was signed and the exact
status of Czecho- -Slovakia was deter
mined.
The borrowing consortium consists
of the Trade Bank Of Prague. the Bo-
hemian Industrial Bank. the Prague
Credit Bank, the Central Bank of
Czech Savings Banks, the Moravian
Union Agricultural and Industrial
Bank. the Bohemian Bank and the
Agrarian Bank in Prague. II was con-
sidercd likely in banking circles that
this temporary loan, which is made TO
meet current needs. would be refund
ed into comparatively longtime is
sue.