The Washington herald., 1920-12-08
Foreign Credits

THE statement from the American Farm Bu-
reau Federation that the extension of credit
to Germany and other European countries
will be strongly advocated by organized agricul-
ture throughout the country is indication that
even that class OF population most prone to
believe in our national sef-shficiency and in the
virtues of isolation has to realize that the
slogan America First" is not complete and
sufficient definition of Americas foreign policy.
The spokesman of the Farm Bureau Federation
says that abundant evidence is accumulating to
prove that the opening Of foreign markets is the
real key to the solution of our present economic
Ills and objection to extension of credit to for
eign countries to permit them to buy such of our
products as they badly need is becoming less every
day. The statement argues that mere banking
arrangements to facilitate the transmission of goods
are insufficient and that real money or credit is
needed Government loans are advocated on the
ground that the government is better able to pro-
tect its interests abroad than private enterprise
and It might be justified in taking risks which pri-
vate concerns would hesitate to accept
There IS no question that European countries
are badly in need of the credit with which to pur-
chase our raw materials and our food supplies Ii
is only by the working up and re-export OF these
raw materials that they hope again set going
the engines Of their economic life. We are pos
sessed of vast surpluses tn. own back upon the
economic situation of own. The suggestion,
however, that loans for this purpose should be
given by the government is of doubtful value.
Governments, IN fact, cannot protect their
loans as well as private individuals There is no
court to which governments appeal, except a
battleship Private individuals granting information
al credits, on the other hand, have an appeal to
the vital necessity of other private individuals
maintain their financial standing in the world, and
they have appeal to the of the different
countries for the enforcement of their contracts.
For our government to take special securities,
such railways custom houses, would inject US
into political relationships of impossible nature
whereas merchants and bankers can take such
securities. In fact, the whole question of the re-
payment OF the SIo,oeoooo.ooo have already
advanced is yet going to become political and
international question of the first order, and we
should not add to its complexity by its further
tension.
When to the question OF how private
loans to be stimulated by which the economic
systems of the world can again be started to re-
volve, do back to the fact that the gov
ernment must lend to the merchants, bankers, land
farmers some friendly assistance The government
should proceed through them, and not directly it.
self. If support is given to merchants, they will
take their own securities. They will make that
fine discrimination between the reliability of in
dIviduals in credit matters that no government can
make. They will pledge their credit as a
background to the credit of individuals abroad
The problem is. in reality to evolve system
by which, through friendly cooperation of our
government with our bankers, with our chambers
of commerce, with farmers associations, we
can again start the streams of credit upon which
the commodities OF the world can again be set in
motion
1t is interesting to see that the one dominant
thought in all this agitation is the realization that
this nation has isolation. Continued thought on
this situation will bring the vast farming, working
and business communities of the United States TO
realization that they cannot undertake the risks
involved in any program such indicated unless
there is to be guaranty OF peace and that this
can be accomplished only by the entry of the
United States into proper participation in its
preservation ..aaaEixM