The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1920-02-19
Absorption Here Of High Grade
Foreign Securities Furnishes
Credit for Reconstruction.
HOW EUROPE AIDED U. S.
last Of Floating Lean Retired--Treas
ury in Strong Position, but Seers.
tary Warns against EStravs
sanes BY Congress

washIngton.-Confldence that hu-
ropes monetary problems will be set
tied satisfactorily wis eNrcssed hy
Secretary Houston In a review OF the
International financial situation
This country is constantly furnish
ing Europe capital with which 30 re-
construct the economic life of nations
there, said Mr.. Houston. explaining
that advances are being made In the
same way that Europe aided this COM
try In time OF depression In the pasi--
not by government loans SO much as
by indirect methods, such as private
loans, sale OF surplus army equip.
ment and the absorption of high grade
Investment securities offered In mar
kets here by European holders. The
secretary estimated that Europe had
received approximately A,o0o,NoooO
from this country since the armistlee
was signed.
The position of the United Stntes
Treasury was said by the secretary 20
be very strong. the redeemlng OF the
last issue OF "lonn" certificates Of In
dehtedness, about s600o0,oo1, leaving
no outstanding floating loan Ia the
sense of short term certificates re
quirlng 10 be refunded at maturity.
Tax certificates outstanding amount 10
81, ,935, ,9i9. 800, all of which viii be
paid by forthcoming income and profits
taxes
Altogether, Secretary Houston de-
clined TO agree with the pessimistic
view of some public men, who forecast
n financial crash, and asserted that
while there were many difficulties stu
to be overcome. there was nothing In
the situation 20 be regarded as ex.
tremely grave.
The rapid reduction of goyernmsnt
expenditure aud realization OF the sur.
plus stocks accumulated for war pur-
poses have been important factors in
making possible the reduction OF the
floating debt and the gross debt Of the
government IN the last five months, Ne
said.
The position OF the treasury nt pres
ent and the future of the market for
the outstanding issues OF Liberty
bonds aud Victory notes are very
bright. The whole color OF the pic.
ture would. OF course, be changed n
Congress should embark upon new eNs
pendtlures on large scale.
In that connection Il is interesting
TO observe that the depression IN high
grade investment securities IN this
country nj the present time Is. 10 a
very important extent, the result Of
heavy selling Of such securities IN our
markets from foreign sources This
MS Secretary Glass said In his annual
report, Is one of the processes which
Is stimulated 10y the very position Of
the exchanges which it tends 20 cor
rect. by absorbing these high grade
investment securities the American
people are furnishing capital to Eu.
rope al time OF Europes need and
are giving this help In just the way
that Europe helped America In the
period OF Americas growth and Of her
own monetary troubles.
In the days OF the infancy OF the
Republic, In the days Of our Civil War
and OF the period of reconstruction
after the Ciyil War. OF the monetary
panlcs which we suffered ut frequent
intervals until the establishment of
our Federal Reserve system, America
suffered greatly for lack Of capital and
credit and because Of her deprecated
currency. and later her inelastic cur-
rency. In those days Europe came TO
Americas aid. not by government
loans, not with any comprehensive
plan, but by the investment OF private
capital upon attractive terms in Amer,
lean enterprises.
am confident hat the solution 81
Europc's problems viii be found by the
wszlnm and courage OF European
statesmen in facing the monetary dIHi.
culiirs Imposed upon them by Ihe great
war aud hy the enlightened. sympa-
theiIc and friendly cooperation u rHc
business men and vorEueu of Amer
sea and luranp