Evening star., 1920-05-22
PLAN TOMA|NTA|N
U.S.EXPORT TRADE
Senator Owen Suggests Buy
ing of European Securities,
Under Safeguards.

UIlueI SdIeYudTuS.
The export trade of this country,
which is now threatened because of
the financial situation abroad. can be
maintained to the benefit of American
, producers as well as to the consumers
abroad who need the goods by the
sale of English. French. Italian. Ger
man and other European securities
in this country under proper safe
guards set up by the government. ac
cordng to Senator Owen of Oklaho
ma ranking democratic member of
the Senate banking and currency COM
mittee.
The sale of these foreign securities
here, he said, a a fair rate OF interest
10 American investors. will enable
American exporters 10 finance fur
ther exports. Unless such credits
are extended by means of the sale of
European securities to the American
public he declared. the export trade
of the United States Will be cut on
to the extent of about $4,000, 900 600 d
year. that amount being about the
present rate of excess of American
exports over imports.
Plea for Suffering Humanity.
suffering humanity in Europe
needs the surplus of American pro-
duction with which to put the work
ling millions of Europe back to work"
+, said the Oklahoma senator.
ITO extend such credits should not
be regarded merely as an act of hu-
manity or charity, but as matter of
enlightened self-interest.
| The productive power of Europe
remains and the people of Europe can
repay every dollar with fair interest
! which may be loaned TO pay for ma
terial for productive purposes.
| The government of the United
States is not expected as n govern
| ment to tax the people of the United
States in order to make these loans.
and no Intelligent American ever
| thought of doing so. The America n
people will not be taxed on European
| loans These loans merely represent
commodities sold at war prices to be
repaid with interest.
| But under proper condition Eng
| lish French. Italian, German. Aus
! trian and other securities of Europe
could be sold to the investing public
| of the United States al a fair rate of
! interest, and thereby enable our ex-
exports.
Il say Europe is not bankrupt. When
i France sells to her own citizens her
own bonds the wealth of France is
neither added to or taken from.
France is reacting now and will steadily
grow better.
Il favor opening the doors for the
! sale to the American investing public
/ of British. French. Italian. Germa n
and Austrian securities in order to
| offset the balance of trade due to our
| present excess exports. AS an eco
nomic fact America is obliged TO ex-
tend these credits or cut off the for
| eign trade until Europe reacts from
the dislocations of war.
Talk of Loans Misunderstood.
! There is much misunderstanding g
| about the loans to Europe. partly
! due to appeals to charity, such as that
| made by Mr. Dawson. The effect
! of such appeals is to break down
! European credit precisely as an at
| tempt is now being made to break
down American credit for the benefit
| of those no have credits for sale in
! the United States and in Europe.
| The Tniued states government
| should provide a mechanism by which
, to safeguard and market European
| securities in order TO provide the
| credits and enable Europe to buy
American commodities until Europe is
! in good running condition again.
! Europe lent billions of dollars to
the United States after our great war
! for reconstruction purposes and for
building American railways and We
: paid it all back with interest and
| discounts and comm ssiOns. and with
/ large merchants profits besides. Eu-
| rope can and will do the same thing.
| They are intelligent, Industrious, good
i people. and under democratic gov
ernment will show the same great
development in productive power
which America has shown Edward A.
Filene of Boston is entitled to great
| credit for his efforts to bring order
| out of chaos through the American
/ Chamber of Commerce and the In
| ternational Chamber of Commerce
! along these lines.
These efforts. however. are merely
| persuasive: it will require the CO.
! operation of government to bring the
| needs of the people of Europe in con-
| crete form before the American in
vesting public. The United States
government is better qualified than
| any other power in the United States
to protect the investors in the United
States who might buy foreign securi-
ties. Great Britain does this. and the
United States ought to protect its
own investors. which it can do with
out any cost.
Efforts Not Appreciated.
| "Mr. Filene's efforts were not suffi-
GENTLY appreciated by the admins
ration of the Treasury Department
and did not result in any concrete
matter Of bringing European secur-
tiles properly safeguarded before the
American investing public The rep
reSentativeS of European business
men returned to Europe disappoint-
ed They We're the finest body of
business men in the world. represent
ing Great Britain, France. Belgium.
Italy and so forth. What is needed
, is a concrete method authorized by
law and worked out in detail to bring
European securities before the Amer
lean investing public, which can abb
sorb all that is necessary of these
securities to supply the needs of
Europe and, what is equally impor-
tant, keep alive our export trade
which has been ruined under the
stupidity of American miSmanage-
ment.
THE total banking power of the
world was fifteen billions in 1890,
while the American banking power
of 1920 alone amounts to forty-eight
billions.
The American people have the
power. The American people have