The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-09
Indirect but Timely Help for Cen.
trail Europe.

Short of direct credit TO Germany,
which would be the most efficacious
way Of setting to rights the muddled
economics Of Europe, the indirect
financial help to Central Europe
through American loans to neutrals
such as Switzerland, Denmark, Swe-
den and Norway contributes under
present circumstances to keep Cont
mental commerce in some semblance of
animation pending general plan for
European finance.
The United States consul at Zurich,
Switzerland, mirrors the general con-
dition of European neutrals when he
sets forth in survey that 203 Swiss
Industries had profits in 1918 of 1916
per cent. on the average, compared
with S.2S per cent. in 1913. All the
European neutrals are undoubtedly
creditor nations on paper at least. If
they were able to balance accounts
with foreign countries they would
show a substantial margin on the
favorable side of the ledger.
No nation of the Old World could
to-day claim even solvency, much less
surplus, If it were compelled to
liquidate all It's assets. In this sense
every country is In the same boat as
the European neutrals. But Switzer-
land, Denmark and the other coun-
tries surrounding Germany are the
victims of another sort of creditors
embarrassment which we and other
creditor countries separated from Eu-
rope do not experience. This consists
of a plethora of accounts Of Central
European customers unable at this
moment to make good no matter how
solvent they may be. The decline in the
German mark has paralyzed them.
This country and the allied nations
were able ut the armistice to settle
accounts with the neutrals and to re-
duce the premium on neutral ex-
changes. The Central Powers, with
whom the neutrals could not escape
trading during the war, were not able
to duplicate this action. To-day neu-
trail exchanges are low in the London
and New York markets hut high in
Berlin. The neutrals need money
here to make purchases, but their ac-
counts in Germany, realizable only in
marks, could not be converted into
negotiable funds without loss.
The position Of these neutral Pow
ers demonstrates how impossible It is
to disengage one country from an
other when considering the financial
status of the. European continent. A
direct loan to one Is an indirect loan
to all, and this Is true to n certain
extent even In considering the effect
Of credits to countries like France and
Belgium, thereby enabling them to
defer at least for a time their indem-
nifty collections from Germany.
But the neutrals are In closer and
more practical working contact with
Central Europe, factor which should
not be considered losing proposition
in the long run simply because 1t Is
now. With the ultimate revival of
Europe it will be n tremendous asset,
just as 1t was the very life of these
neutral countries before the war.
Aside from credits to France. Bel
GUM and Poland. loans to countries
surrounding Germany have included
S25,00O,0Q0 to Sweden. S2O,00O,;S5J to
Norway. S5,Ooo00o to Christiania.
S25,000.000 to Denmark, $15. 10000 to
the city of Copenhagen, S55, 000. 900 to
Switzerland. $6,O00,OO0 to the city of
Zurich, and the most recent loan of
S6,000,000 to the city Of Bern, Swift
zerland, arranged by the Sneyer firm
in all total of $157, 600, 900 in cred
its planted like financial fortresses ut
the doorways TO the Continent.
Tho Girl Ggousc r,aI-a tLn;.. s.-.---,