Pine Bluff daily graphic., 1920-02-13
HOUSTON LOOKS FOR EUROPE 70 SETTLE FINANCE PR02[ EMS Declares Pr sent Advances Being Made by Indirect
 Methods POSITION OF THE &
 TREASURY STRONG Nothing in Situation to be Regarded as Extremely Grave, Secretary
 of the Treasury
 Says

"ashlhgtoh, Feb. 12.-Confidence
 that Europe's monetary problems will
 be settled satisfactorily was ex- pressed today by Secretary oHuston Tn review of the international fir- ancial situation.
 Ihls country is constantly fur nlshlng Europe capital with which to reconstruct the economic life of nations there, said MT. Housto. ex- blaming that advances are being made m the same way that Europe aided this country in time of distress Tn the past, not by government loans so much as by indirect methods, such as private loans. sale of surplus army equipment, and the absorption of hlgh grade investment securities of 1ered in markets here by European mat Europe had received etaoin39 holders. The secretary estimated that Europe had received approxi- mately $4,000, 100000 from this coun- try since the armistice was signed.
 The position of the United States treasury was said by the secretary to be verw strong and on Monday the last issues of "loan" certificates of indebtedness, about $6O,OOO,oOO will De redeemed leaving no outstanding floating loan in the sense of short term certificates requiring to be re- funded at maturity. Tax certificat- ed outstanding amounts to $2,935,- 949,0OO all of which will be paid by forthcoming income and profits taxes
 Altogether, Secretary oHuston de- cllned to agree with the pessimistic view of some public men who fore saw financial crash and asserted that while there were many difficult ties still to be overcome, there was nothing in the situation to be regard ed as extremely grave.
 HOusOn, Statement.
 Secretary Houston's staement fol- lows in part:
 "The rapid reduction of govern ment expenditures and realization of the surplus stock accumulated for war purposes have been important factors in making possible the re- duction of the floating debt and the gross debt of the government in the past. five months. The result of the elimination of loan certificates and the great reduction in the floating debt and gross debt have both been contributed to by the application to the payment of loan certificates of an important part of the balance in the general fund, which it had been necessary to retain at high figure as long as the loan certificates were outstanding in order to provide for these frequent maturities, and which it was possible to reduce greatly in connection with their retirement.
 Although the treasury will, of course, be obliged to borrow from time to time to meet the current de- ficit (which in January amounted to les than $93,00O,00O) in the intervals between income and profit tax in- stallment payments, and the current of the war finance cor Doration, the fact that the treasury has no uncovered maturities is of immense importance. So long as the treasury had certificates of indebted ness maturing in very large amounts and on dates when it could only pro- vide the funds to meet them by bor- rowing fresh funds, it's position night under certain circumstances nave became embarrassing (althoughI t never did) and it was consequently | for the federal reserve board to exert any effective control ,ver credit.
 "The position of the treasury to- lay and the future of the market for he outstanding issues of Liberty ponds and Victory notes is very bright. The whole color of the pie ure would, of course, be changed if congress- should embark upon new vnoprdif,Yr ny, 1or ThaJ whole problem today is that of giv- ng the people time and vii to save apital sufficient to enable them to ,bsorb that part of the war issues which is still owned or loaned upon " banks and as we'll the flood of securities which are being pressed lpon our markets from foreign sour es in consequence to the extreme depression in European exchanges.
 European Outlook.
 "In that connection, it is interest ng to observe that the impression n this country at the present time esult of heavy selling of such se- : ources. This, as Secretary Glass dlu HI uIS ouHudi AcpO1ts IS OuC VI he processes which is stimulated by { he very position of the exchange 1hich it lends to correct. By absorb ng these high grade investment se- urities the American people are fur ishing the capital to Europe at a ime of Europe's need and are giv- ng help in just hte way that Europe1 elded America in the period of lmerica's growth and of her own { lonetary troubles.
 "In the days of the infancy of the epublic, in the days of our civil war nd of the period of reconstruction fter the civil war, of the monetary anics which we suffered at frequent intervals until the establishment of UT federal reserve system, Ameri- an suffered greatly for lack of cred t and capital and because of her de- reciated currency and, later her in lastic currency. In those days Flu ope came to Americas aid, not byI loans. not with any com 9ehensive plan, but by the invest
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