The Chattanooga news. [volume] (Chattanooga, Tenn.) 1891-1939, 1919-09-02
EUROPE NEEDS
FINANCIAL AID
| .'mer Chancellor Of Ex.
Chequer McKenna Makes
Plea for Industries.
LOOKS TO IT, S. FOR HELP
Explains In Detail What Must
Be Done for Salvation Of
Stricken Countries.
fRY Floyd MACGRIFF,

London, Sept. 1.-The need of n
comprehensive and minute survey OF
all disturbed finances OF Industrial
requirments in which United States
banking interests abe best situated
to take the initiative Is set out in an
exclusive interview today with Regi-
Maid McKenna, former chancellor OF
the exchecquer in the British cabinet
and now chairman of the board Of d.
rectors of the London Joint City and
Midland bank, the worlds largest A.
nancial institution. Mr.. McKenna ex-
planned how, unless some European
countries are supplied with tools of
production on long time, deferred
payments, they will soon be in a
position where they cannot obtain
the goods from the United States
that are sorely needed on this side OF
the Atlantic for rehabilitation.
Other European countries, Mr.. Nc
Kenna went on to say. whose credits
are similarly vanishing, may have
the machinery for production but
they cannot get back upon their in
dustrial feet without immediate sup
plies of raw materials from the
United States on two or three years
credits.
Cause Delay.
''If nothing is done" said Mr.. Nc
Kenna, Europe will be greatly de-
layed while, at the same time the
United States will lose countries
among her export customers"
"Great Britain Is in no position to
carry Europe's financial load" de-
clared the flnanciar, but the United
States is able to do that. America
should realize that in making capital
investments or advances she should
not expect anything besides the in
terest for ten years. Great Britain ad-
vanced capital to parts of the world,
including vast sums for the con-
struction Of American railroads and
then awaited slow returns upon the
investments. But II Great Britain
now extends credits or materials for
consumption it simply means that we
have to reborrow the same from the
United States, = making our load
heavier. There should be a survey of
each county's needs separately by
experts, to determine the amount of
capital required for locomotives, tools,
machinery and building materials to
enable them to get production under
full headway."
Survey Of Europe.
Replying to a question whether n
survey Of Europe with subsequent
advances Of capital by the United
States should be undertaken by the
government or private interests, the
former chancellor said:
II see no necessity for the govern
ment handling the matter. Private
interests are capable Of doing 1t and
the ultimate profits should furnish
sufficient incentive"
Asked whether Anglo American
banks should Join hands in such an
enterprise, Mr.. McKenna replied:
"Since America will pay the piper,
America should call the tune"
Mr.. McKenna was then asked how
much capital outlay would be re-
quired for raw materials and to build
up production by manufacturing
plants all over Europe. His reply
was: Much less than generally
supposed-much less"
Necessary Food.
Asked to what extent II would be
advisable to extend capital for food,
he answered: "All that is necessary
in starving countries"
Mr. McKenna said that Poland has
plants for production. but no cotton
for the textile industries. The Poles
are hungry, he added, but they have
sufficient supplies to enable the
country to go ahead and quickly to
make repayments on loans within a
couple of years. But such nations
will not recuperate until they are
helped, the banker thinks.
"All countries must work hard,
produce bountifully and make for
eign loans mostly to stae off heavier
taxation" Mr.. McKenna explained
that the needs of the different coun-
tries vary. In Serbia there is enough
food, but machinery is needed He
suggested that the survey would
show precisely the requirments of