Evening journal., 1920-02-06
WOULD Lend
EUROPE MONEY
FOR FOOD and
raw MATERIAL
Continued from First Page.

be a billion dollars spent on any flnan-
cial rehabilitation.
This is the first move necessary 10
help the exchange rates recover. The
present decline in exchange tends now
to halt our exports. II is conceivable
the halt might occur very sharply. To
a considerable extent ships are now go
ing TO Europe without fun cargoes.
Last year we exported eight billion
dollars worth Of goods and the trade
balance in our favor was four billions.
In pre-war days a trade balance OF
s6OO,OOO,OOO for us was about the top
figure. These figures Indicate that IL
The halting OF our exports goes far
enough II will result in a jar that will
pile up cotton, agricultural products.
and 10 some extent manufactured
goods | do not believe such a situation
would result In any serious unemplOy-
ment for us. There might be some
thrown out Of work while a process Of
readjustment went on. but very little
hardship would follow. Our consum-
ing capacity Is greatly In excess Of our
present consumption.
1t is rather physlOlogically that we
should feel a continuation Of the pres
ent decline in exchange. The situation
we now face means the people on The
other side are unable 10 pay for what
they Wtally need and their economic
life has become disorgs nlzed. Economic
dlsorganizatiOn in Europe must have
an unfavOrable infu nee on our own
affairs. II over there political disor-
ders occurred they would affect our
thoughts here Just as we have quite
a cOnsid rable public opinion sympa-
thetic 10 Russia so might there be
body sympathetic TO any political dis
orders in Europe. An increase In radl-
cal thought in America would be en-
gendsre by radical political move
ments in Europe The present situa-
tion is creating idleness and buuner
among the Europeans and those are the
principal factors in developing political
unrest.
There is no cure you can take out Of
a patent medicine bottle. The cnre Is
for Europe to produce more so that Eu-
hope can pay for what u must i'm
port. But it is hardly TO the point to
insist that Europe must go TO work and
stop at that.
certainly, Europe must work, but II
must have something 10 work on ana
raw materials to work with. and In the
meantime IL must have food to support
the people. Just now the people OF
Austria and other Central European
countries are exhausted and dying OF
starvation.
Il doubt the wisdom OF our govern
ment granting more credits TO Europe.
Al the same time the credits that are
needed must run for too long term TO
make Il feasible for banks 10 make the
grants. Besides, our banks have ex-
handed their credit facilities for do
nestle requirements to quite as hlgh |
a point as is safe. That means that the |
credit should come from our invest
nent funds which have been largely dis
sippated in the past by our flotations |
n new companies. We have demands /
FOR domestic promotions and for such |
work as rehabilitating our railroads /
which are now in need OF 100000 cars.
we can at the same time
assist Europe We can expand our
ending ability very much by economy
md stopping the present craze for ex-
.ravagance.'
THE present situation was evident
year ago. But the people who made the
,eace treaty paid no attention to eco /
ionic data. They did not understand
he complicated theory Of modern in
lustry. They had not taken into COZ
liberation the fact that the population
u Europe under the influence Of an in
lustrial age had grown to far larger
numbers than Europe's fields can feed.
BUT with Il all we can save Europe. we
an dSit II we stop our wild extrava-
-ance, comprehend the seriousness OF
he situation and decide II is time for
IS 10 help our neighbors. Then we
hall have the world at our feet in
-ratltude."