The Birmingham age-herald., 1919-06-27
GREAT PROBLEM OF
 FINANCING EUROPE
By HOLLAND.

By HOLLAND.
 New York, June 26-(Special.)- 'It is indeed gigantic, probably unprecedented financial problem" which thg United States is now called upon to solve, are the words in which with emphatic terseness the federal reserve board at Washington speaks of the relations which the United States must bear to Europe, if we are to lift these nations from their pros trate condition and restore industry, peace and prosperity.
 This statement has been read and reread by many of the leaders in this city who say that while it is true from one point of view, nevertheless, it would have been more accurate if the federal reserve board had omitted the word probably" with which it qualified the word "unprece- dented." No record hitherto made, at least none which is now available in this city for study, tells a story of financing comparable with that which the United States must undertake and complete II Europe is to be saved> Some have turned to the records of our civil war, Nonly to find that although the Secretary of the Treasury Governor Chase was greatly embarrassed at the beginnng because the credit of the United States was at that time far below par, nevertheless he was abe almost alone, to work out the prob lems and in that way to secure even the billions that were needed by the govern ment.
 Secretary Chase had behind him the tru- ly marvellous resources of the United States or that part of the country which stood faithful to the union. He knew, for he had been informed by David A. Wells and other experts, that our re- sources were ample even if the war were continued for 10 years or more, to provide funds that were needed for the support of the armies and navy.
 England the record shows, worked out the financial problems which represented the South African war although the mon- ey markets of the world were not upon normal basis, until Englands men of finance did solve the problem. They worked it out in about four years. The record of the times which followed the collapse of the first Napoleon shows con- ditions somewhat similar, though very remotely similar, to those which prevailed I in Europe after the armistice was signed last November. But the problems were easily solved.
 Therefore, it is reasonable to assume. ! in view of some of the leaders in finance and industry that the conditions which inow exist and the financial problem which must be solved sn order to meet and re- 1 heve the conditions do not represent a probably unprecedented financial problem 1 but which is, on the other hand unprece- dented both absolutely and relatively. OTHER PROBLEMS
 | There are now other matters of very great importance which now concern the | |. ,ia al 1aod nd government. And these will prevail CO., incidently with the so-called gigantic undertaking on the part of the people or | the United States of the work of restor- | ing Europe.
 | For instance, some of the financial leaders point to the intimations which have come from Washington that the Secretary of the Treasury must speedily make new appeals for funds with which to replenish the treasury de- partment There will be need of some billions It Is thought doubtful that Secretary Glass will ask the people again to sub scribe as they have Tor l five loans. He may be compelled to do this, but the chances are that such l obligations of the government as Will represent new loans. will be floated by | the banks and by other means in such manner that the public may gradually | absorb them.
 l Then again. the United States Is to | be called upon to furnish financial aid 1 to some, perhaps all, of the South American nations It is regarded as 1 imperative that this be done. if we are 1 to take advantage of the opportunity l to command the greater part or the ln- | ternational trade which South America 1 will have.
 Then too, neutral nations expect tc come here. as Sweden has within few | days done. The ease and speed witr l which the loan to Sweden of S25.O0O,Oot was absorbed will stimulate other neu' tral nations which are now contem' plating approaching the American mar ket The United States is also to par ticipate in the new Chinese loan. There is the railroad question and the rela, tion of the United States government to it. It involves many millions.
 Nevertheless, the European situation land the opportunity which is now our' for such unexampled service as will 1T the course of a few years restore Europe is said to be justly spoken of by the federal reserve board as represent' ing a gigantic financial problem. l MIR. DAvISON'S PLAN
 | Great minds are equal to great oc' ' casions and it is frequent comment her'
 that there never was presented plar
 of the magnitude of the impressive sim
 plicity and of the far-reaching scope
 such as characterize the still rather vague. not yet in details completed plan now advocated by MT. Daviscn for thu mobilizing of all the United States il
 such a maner as to bring assured relie to Europe.
 If adopted and put into practice, i
 will represent the most gigantic piece
 of national cooperation and co-or dination of which there is any recort in the worlds history Yet the plai
 has all of the simplicity which il characteristic of the greater industria
 and. banking organizations. It rep resents great corporation with some
 thing like legality behind it. for th'
 government is expected in@ an appro lpriate way to assist and to foster th' undertaking It also represents th' massive abilityaof the United States sl to coordinate its financial and indus ltrial resources as to make it certaiI that the nation will not only maintain ton, but it will also increase our ex ports. thereby assuring our position al a world power. This will undoubtedl
 mean the speeding up of our industrie to their capacity, full employment O labor with satisfactory wages an
 world markets for our surplus produc ton as well as increased developmen
 of our agricultural and mineral re 1 sources Should the plan be adopted and be found to work satisfactorily, will identify MT Davison as one of tn
 worlds greatest constructive financiers