Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-05
.EUROPE'S OIL GRAB
ONLY Pure BUNK
Attention to Abuse Of Credit and
Trade Acceptances Called by
Charles s. CaIweIl

|
"All this recent talk about Europe
gaining control Of the principal output
Of the worlds supply of oil is largely
bunk" said a member of well known
brokerage and banking house yesterday.
Those who advance such statements,
he said, and back them up with figures.
manage to overlook one important fact.
and that is, while European countries
and by that Great Britain is princi-
pally .meant---have been busy of late in
creasing their control Of oil territory,
representatives Of the United States
have not been asleep. ...s
He then called attention TO an inter-
view with ii. l.. Frueauff, head of the
marketing department of II. L. Doherty
d Co.. who has just returned from a
| trip of investigation to England, Bel
GUM, France and other European coun- =
tries, of which the following paragraph
is a part. and which goes to confirm the
above statement made by the broker:
80 far as competition is concerned.
II is true that they are talking in Eng
land about the development of the oil
resources Of the British possessions. but
1t must be borne in mind that American
concerns are not asleep and are at work
wherever oil is found. in Asia, Africa,
South America, as we'll as in our own
country. 1t is well recognized in Eng
land, for instance. that they must turn
to America for leadership in the oil
business. When England wants ex-
perts, biologists, technical men of all
sorts, she comes to us. 1t is noticeable.
too, that In the British fiotations of oil
properties, there is very apt to be an
American interest. a refinery. or some-
thing OF that sort connected with the
proposition.
A banker, interested in oil develop
ment. when asked his opinion on the
matter said that so far as he could
see most OF the figures quoted to show
Europe's supremacy in oil are wrong,
as very frequently territory is con-
| founded with output. Territory in the
proper place, he said. may mean a good
deal. but in other places may not mean
much. Take. for instance. he said. a
territory of some $4,000. 200 acres along
the Caribbean sea. which is leased or
owned outright by an English con :
trolled corporation. Up to the present.
he said, II any considerable quantity
known publicly.
| There Is no question, he added. that
the rearrangement of territory, espe
cially in the far East. as q result. of
the war, has given Great Britain a
hrmer hid on the best producing fields
there, especially in Persia, Mesopo
tamia and later in the Bakufield, but
she was practically. IL not actually. in
control OF these sources of supply be-
fore the war.
Chas: $. Calwell. president, of the
Corn exchange National Bank. calls
attention in the May number of Tbe
Corn Exchange, the banks monthly
paper, to the abuse Of credit through the
abuse of trade acceptances, which are
being used for accommodation purposes
where no actual shipment of merchan
disc has occurred. ..,
AS these acceptances run at most for
only Linety days, the abuse would seem
to lie more in the frequent renewal of
such acceptances, an abuse to which he
also directs attention.
| These practices are against the fun :
damental principles of the Federal Re :
serve act, and may account in large
degree for the present strained condi j.
tion of credit all over the country. atten
tion to which was directed in this COL
umn yesterday. According to the Corn
Exchange, the practice is especially in
vogue in the West.
The most serious cbarso hro,,.h. =,
the Corn Excba anye IN tb;s oonnon,io, " 4,
that "unfortunatelv there s.an,s ~ ho 20
no odeouatc safcguard ogoinS, ,h;s
evil"
The Corn Exchange says:
,o, me use Oh 1ne trade acceptance is
eehs upuseu. Inc legitimate purpose
iJi mhien IL was INTENDED Is not being
auhelcu Io' its opponents nave always
tohienueu .Se t1at IL would lead to over
Irauihs' @ unu 70 certain extent this
esli mas materiaiized' Renewals OF ac-
teplances is qutle common practice.
acceptahces, are also bclng used for ac-
coillhoaatloh purposes where no ship
nent OF merchandise Is involved. The
conui,I1h appears TO Do especially pro-
noun' GU III tne Nes'' lroul "hlch Sec
aneiurS ;"a :, r,onn inatano anu ina. oEertraa-
.s f.on ns ae tL;a nnanceu Ny tue
Wv ,''' IL onis ;oa" oi remit
at.at -. ot hnanciai
~ ,;ssS oi.Sn 'ne i'elh cl aC
-, 60. h't .,
~ ls 81, ''Aen ii'h po'n SUES Vi the
s..I A.. ,
~ !" qua'e 'rue 'naC uns'rupulous
pe'eonS nIs. .ne eraue ."rCeptante
,otbods of raising funds or d;scharo;ns
~mttnouH ~ Vi 'd,TTthns I'M lunus UT u'schassths
oplleatious' me pfeseht sidue oi rue
ihonrs nl"' NV nas uuuouoNuIE IN
creased thc Pfa..mS on tne parL VI suGn
unscI epIlous ,to ~ "ous. Ime
use or the acceptance, JntOrtnnately,