South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-12-25
SAY j. s. MUST
BUY SECURITIES
Of EUROPEANS
Extension of Long Time Credit
Necessary to Put For
eign Exchange on a
Solid Basis.

NEW YORK. Dec. 23-Three fac
tors in the decentralization OF for
eign exchange. ineligible TO the av-
erage man. rise above the complex
flies Of the present situation. ac-
COrding 60 old-timers in Wall street
These are:
/. Allied and other nation OF the
world owe the United states APP
proximately $4,000. 600 900
2. American manufacturers hest
tate. owing 10 peace treaty Uncer-
tainty. 20 accept big advance for
eign orders.
3. England's virtual suspension
OF gold exports outside the British
colonies is repulsing American trade.
Just why the British pound ster-
ling normally worth S48665 IN
American gold should have declined
so much since the war ended. and
what Il all means is an obscure ques-
ton" said a New York financial ex-
pert The present situation, Sir
George Paish's apprehensions not
withstanding, IS By no means hope
less Prophecies OF a breakdown
OF credit are not well founded.
Must Buy Securities.
America. the storehouse Of tho
world and now the worlds banker.
IS in the same position England was
I'm after the NapoleOnic and Ameri-
can Civil wars She bought the
the cheap securities OF impoverished
nations in q most prodigious man
ner and thereby laid the foundation
for her future wealth. We must do
likewise and do il within the next
two or three years by which time
these abnormal conditions will have
passed.
with pound sterling % percent
or more below par England can
sell TO the United States at a great
advantage. We can sell American
goods abroad only at a great dis
advantage because we must add the
abnormal rate of exchange 10 the
goods 10 get into foreign markets.
Premier Lloyd George recently de
clared when sterling was selling at
q discount OF 10 percent. that the
discount really represented n pro
tective tariff Of Is percent on goods
manufactured in England. Certainly
II is helping TO keep American goods
out OF that country
Remedy for Condition.
THE only remedy for this cOndi-
Ion is for the United States to buy
securities and extend longtime cred
IL for merchandise We are in
strong economic position. The ma
lions of Europe must have our
cotton and wheat and since they
are so heavily indebted TO us and
we must extend them many more
millions TO put them on their feet
what is the difference whether We
buy their bonds or send them our
merchandise?
Everyone in Wall street knows
that il the peace treaty had been
sigped in Washington an Interna-
iiOna1 Exchange committee would
have been organized long before now
30 stabilize exchange and bring
about other necessary establishments.
Never during the darkest days of
The war. when the Germans were
Almost at Paris, did British and
French exchange go 10 where IL is
now The British. during the war,
by a system OF credits with the Unit
I'd States. had sterling 'pegged' 10
l452.
4 Two-Edge sword
The tension over and gold ex-
ports curtailed there was nothing to
keep Il that close 10 parity Indeed.
hnless the United States loosens its
purse strings there arc London finan-
kial experts who say the pound ster-
hing will drop as low as $3.50 That
would be a calamity. It would be a
te'o-edged sword injuring both Eng
land and the United States.
Europe is like a man on the
verge OF death due 20 starvation.
when YOU Ind such an unfortunate
you feed him gradually until the
stomach becomes accustomed TO di-
costing food Now our aim has
been all along 10 stuff Europe with
ali kinds OF American products. We
have piled Up n trade balance. ac-
rording to former Secretary of Com
merce, Redfeld. sggrcEaung $4,000
Doc. 900 a year Europe's financial
system. like the starved human
stomach. has been unable 90 assimi-
late IT, Consequently. we thus CON
tribute 20 the decentralization of Tor
eign exchange and. incidentally. 10y
lnhation help 10 lower the purchasing
power OF our own dollar
when YOU consider. as Mr. Red
Held points out. that $4,000. 600 900
represents American dollars al par
and must be paid 10y those who owe
Il In deprecated currenCieS making
Il the equivalent OF S5.O00.OO0.O00.
The result ..qnuOt be healthfuI t0 fu-
ture American trade and commerce.
Foreign buyers are going into more
favorable markets"
TO THE STOCKHOLDERS or THE