The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-08-07
NEW YORK BANKER. 4 !
URGES EXPANSION

stsss5assss
Referring to the critical HSsH{jso
situation existing in Europe to1ry.
Charles H. Sabin. presidential 4He
Guaranty Trust company OF NFw
York, made the following statsHsHnt:
Il have been deeply impre1ds1.s5y
the recurring reports which ,S1EnX to
, US daily from authoritative sources
concerning the critical conditten OF
Europe's financial affairs.ssSsiTl9sy
sharply drive home the -les1oni mt
this country must act quickly, tnot-0n-
ly to save business situation ine0shtr
countries, but also in its UNnssta-
terest. because of the extent to which
we are involved in their affairs, and
the absolute dependence OF our pros
perity upon their rehabilitation. Syn-
less the United States can. find fok-
cign markets for its present tigh}y
stimulated production there will 10
| evitably be a. business recession hi
this country.
We have u a large sense the Wei
fare OF the whole world in our keep
ing today, and upon the wisdom and
farsightedness which we show fU disc
charging this obligation will depend.
in large measure. not only the Pros
gress OF other nations. but our oru1
future as we'll / do not .meaps,to
speak as an alarmist in the situation.
because / believe absolutely that. Ia R
the established countries OF Europe
are given the cooperation which. We
are able to give at this time,- there
will be no question OF their making
good upon their obligations afsdajusti-
| flying any credit or consideration
which we may extend TO them; hut
| the fact is that we over here are
/ 'fiddling while Roman burns
! The need OF European countries Ii
immediate and every days delay
makes their situation more dififcfait.
Their pressing needs are for food, raw
| materials, coal and machinery. These
can only be supplied to them through
! extension Of credit on our part AZ
, they have neither the gold nor the
/ goods with which to make jmmSdta te
| payment Food for the hungry and
work for the idle must be provided
If they are to maintain stable political
conditions and begin product3on.
These bald facts are obvious 70 AL
, who have studied the situation. hut /
failure to appreciate their bearing
upon our own affairs has .apnaranaly
/. delayed action on our parts =,
| TT Is Ger tain that American bank -
ing institutions cannot handle the
credit demands presented wath0ut IN
operation. Such cooperation must
be accorded by our governnssnG our
manufacturers and producers By
! team play between these important
factors in the situation. Earopes gan
be put on its feet financially nd do
dustrially and this county, Wfakrbes
placed in q position Of unchAl1en1Ad
| leadership in the business affafr3fof
the world. The amounts'Sinyossedl
are far too large for any ot4rcr- naeth-
Cd OF handling. ssses III
Just what form this co-ops1atfon
should take is q matterssc f s1Aeiails
which can be worked ,out- N ,Nn6h n
mon conference, but there Nre ssetA4s
steps which It seems to me can IN
taken Immediately and shO4f6rnOt ~ 1
delayed. Recognizing the i1npcT1Anca
OF the problem presented t0.ksnee1ban
business interests the last- @conkkxs1l
appropriated one billion d0lAfsk for
! the extension OF American Ybfelkm5
| trade, and placed the amount at tho
disposal Of the war finance corpora
OF the restrictions placed upest Athes
use OF this fund have made IN 16xAn-
sive employment A.Yhes
restrictions which limit th3 amoUhEa
| Of these loans and specifyst lS4t tK4y
can be made only through AAIi&tfHAn
corporations and upon their efyf0fse- a
ment throw the whole crediG 6NfAen
| upon our home institutions, witch
is not fair to them and mak2s tkem
hesitate to take advantage OF thu
! offer In my judgment ttie law
should permit the extension q1 &fSdit
to foreign buyers in good standing.
with the endorsement. " need BE. OF
foreign banks and foreign Iovefn-
J ments, and our government should
! assume whatever credit, risk b ln-F
volved in the situation, which should
be negligible. .rs :'ss a's. ~
"As there is the twofold pprpVp9 81
, meeting the crying needs ,of. Eufy&seS!
+, and this Ii In the interest 10 bur
people az a whole and OF Etlrpre ~
, a whole. 1t seems to me to ~ &k6A-
ton In which government r4pun6iptl-
/ ity must be assumed and govetnHkn&s
leadership. with the co-opsxatnk oz
our financial and business inatiSGtlohss
must take up the burden tn ne. gans
erAl interest M. "a ss s2
/ This IL time when All thcuyh65
Of profts. particularly exorbitfRf htorss
nts, represented In either eomy
/ prices or interest charges. sht0 hs M
forgotten. and the simnles u1&3 a&fAA
OF tho situation faced. OtE NStkeAt4s
single duty now II to reaebt1 s511S
world to normal conditiopS v. 4 M
are able 70 do our part prQi14
bringing that about. the 4ua
profits will be cared tor IA M f(HIass u
opportunity and The 9reax 4 N
tion In ~ history. ana AZ x8Gy = Ind
dces which have been MI II
war are not to ~ IN vnlns.
rise to meet thenl T. aSnS g.
II our people generally an M Il ~