The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-06-13
Plans Through the War
Finance Corporation to
Encourage Bankers.
FOREIGN CREDITS.
To Lend Money to Amer
lean Exporters Who in
Turn Will Finance Buy
ers Abroad.

Washington. June l2.-Treasury de-
partment officials today stated that the
government is planning. through the
war finance corporation and through
encouragement gwen b r s
through out the country to aid in An
ancing the rehabilitation Of Europe
The position taken by the govern
ment officials is that the United States
Is now creditor nation to the extent
of $4,000, 200. 600 that Europe has no
money to resume peace time enter
prises. and that credits for food and
raw materials must be arranged II
Europe is to be set upon its feet. II
was also pointed out that the balance
OF trade in favor OF the United States
which was $500 .o00.o 900 before the
war. has been increased very heavily.
=. The statement was made that the
government plans to give aid In addi-
ton to the $1,000 coo, 900 which the
war financial corporation still has IN
its power 10 loan. The disposal OF
this amount Is. however. restricted
largely 10 purposes which may be
riassed as cleaning up the war ex-
penses~
Before taking definite action on the
plan, the treasury department will
await the return OF Eugene Meyer.
ir.. managing director OF the war
Europe Mr.. Never Is gathering data
and trying to see just how the war
finance corporation can assist in the
reha bilitation.
The government II vitality in
terested in seeing that the require
ments OF Europe are financed" said r.
c, Leffingwel. assistant secretary of
the treasury today" This In partly
because the United States Is a large
creditor of Europe and partly because
II has an interest In the general situa-
ton of the world
Il think the picture OF Europe Ia
made to look unduly somhre. The
situation IL bad now, but I do NOT
think that is the view to take Of the
future. The situation Is being held
practically in allegiance pending de-
eision as to the peace treaty. But
when political questions are out OF the
pie OF Europe will be directed to
practical problems instead OF political
ones.
Means must be found to provide
credits so that they may obtain food
and raw materials. The war finance
corporation Is planning to lend money
to American exporters who IN turn
will finance their buyers abroad.
The war finance corporation has
$3.50. 900. 900 of stock which it can
sell. II also has quick assets and 1t
can sell bonds.
The departments policy Is to en-
courage our bankers IN every way
possible to give condition and sup
port to foreign credits"
The statements that the govern
ment il planning to aid the financial
Rehabilitation OF Europe is in line
with the views expressed by J. Pier
pont Morgan and other bankers who
testified at the senate hearing We'd
nesday. At this hearing Mr.. Morgan
said:
Americans can only sell to Europe
II they can get paid for what they
sell. and that payment has got to be
arranged for until Europeans can pro-
duce. There has got to be time ar
ranged between the time Europeans
begin to produce and the time they
begin to send goods over here. That
has to be arranged with the bank
Ing interests all over the country"