Evening star., 1920-11-23
ASK HARD|NG'S AID
ON GERMAN CREDIT
Bankers Want Millions Held
by Property Custodian for
New Trade Plan.
BY DAVID LAWRENCE.

Leading bankers have asked Presi-
dent-elect Harding for a conference
as soon as he returns from Panama
SO that his views may be obtained on
the formation of a banking syndicate
whereby s4oo, 200, 900 of German capi-
tai and securities now held by the
alien property custodian shall become
available as basis Of credit in In
ternational trade.
The plan to utilize the German Sc
curities Is also before the Wilson ad-
min1stration. which Is studying the
!egai points involved. But the under
taklng is SO far-reaching in import
exchange that New York bankers are
eager to know how Senator Harding
looks at the matter, so that there will
pc smooth sailing ahead in the event
thaL a start Is made before March 4.
me securities were originally held
by Germans resident in the United
states or American corporations and
business houses in which the ma
1orlty OF the stock was German
owned These Securities have been
a, neio IN trust during the war. and
along with other German property,
thelr disposition has been left to
Congress.
President Awaits Final Pence.
PRESIDENT Wilson has declined to
recommend the return of the prop
erty until America signed a peace
treaty with Germany and said treaty
was ratlhed by the Senate. One Of
lhe chleI argumnts against the Knox
resolution for a separate peace was
tnat II did not bind Germany. and
.nat only Oy separate agreement or
lIeaty with Germany could an under
standing be reached concerning such
Huesiohs as German property in the
Cniteo St1tes or claims growing out
OF the sinking of the Lusita
out the depression in export trade
ana the general condition of Ameri-
can businesses which depend very
largely for their existence on their
ability to sell goods overseas is a part
or the present movement to establish
a new basis Of credit. Foreign trade
mas been adversely affected not be-
cause OF a surplus of goods abroad,
out because of the absence of money
or credit wherewith to pay for Ameri-
can goods. The movement to create
a credit for German purchases is be-
neved by its authors to be the best
way to start the BAN rolling toward
better conditions in the exchange
market generally.
Considerable pressure is being
brought to bear upon the Wilson ad-
ministration to approve the plan ir-
respective of what the ultimate fate
OF the peace treaty may be. Mr.. Will
sons determination during the last
session of Congress was to insist upon
the ratification of the treaty before
taking up all other questions with
Germany growing out of the war.
Think Plan In workable.
Some Of those who favor the build
ing of an American syndicate believe
the German securities could be in
vested legally by the United States
government in such corporation as
is permitted by the Edge law. and
that the right still exists to invest
German securities in any way that
the American government-the trustee
sees fit. Others think a wiser plan
would be to obtain the permission of
the German owners of the securities,
is already assured, because by such a
scheme Germany would be able to'buy
at once needed comm odities.".
Just what England and France
might say about the establishment OF
such a credit in favor of Germany
raw materials that France. for ex-
ample. may be anxious to get, but is
Unable to do SO without similar credit
arrangements. fs hard to say. The
American government, however. is
free to discriminate in favor Of Ger
in any way that may seem desirable
at the moment.
Since the defeat of the peace treaty
the association with the allied gov
ernmef1ts has suffered more or less
and the tendency among exporters
BILE without thought OF war hatred.
The expected GOODNESS in trade rela-
tfons, a symptom OF which was the
agitation against the purchase of
German toys, has not developed. and
England and France are trading with
Germany.
America has been handicapped in a
resumption of trade by the defeat of
the peace treaty. but the moyem ent of
the, New York bankers to establish a
basis of credit for German purchases
is believed to be the first step toward
a general renewal of trade relations
with Germany.
It is estimated that il the s4oo. .oo0.-
900 Of securities owned by the Ger
mans and held at present by the alien
property custodian are invested in the
new syndicate basis of credit
amounting. to approximately two bill
lion dollars may be established
German companies or corporations
approved by the German government
would be enabled to buy goods with
that credit and the hope Of the organ
izers Of the syndicate is that large
quantities Of American goods NAV as
a consequences promptly find a mar
ket in central Europe.
Although Senator Harding has not
yet replied to the request for q con-
ference. his close friends represent
him as ready to discuss the whole sit
uation carefully and to give such as-
surances as may be posi- BILE under the
circumstances to forward the plan for
a betteFment of trade relations with
Europe.
Copyright 192O.)
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