Evening star., 1920-01-02
FAVORS EXTENSIVE
CREDIT FOR EUROPE
big Business" Believes Gov
ernment Should Supple
ment Private Aid.

The attitude of so-called big busi-
ness toward furnishing financial aid
to the rehabilitation of European in
dustry is said to be fairly set out in a
letter written some time ago to Sena-
tor Poindexter by Otto H. Kahn of
New York Mr.. Kahn, of course, is
recognized as an authority in this
country upon finance and business.
The letter is now being circulated by
the committee of American Business
men," headquarters AZ west 34th street.
New York city.
The letter sets out to discuss the
covenant of the league Of nations,
reservations to which are indorsed,
and then proceeds to the next SUBJ
ject, collateral to the treaty ratifica-
Mr.. Kahn says:
"1t has now been demonstrated un-
mistakably and quite irrespective of
the treaty situation that private en-
terprise in America cannot by itself
accomplish the task of providing the
means for Europe's immediate neces-
sites, or, at any rate, that it cannot
accomplish that task as quickly as
needed, for various reasons, among
the principal ones of which Is the fact
that crude and short-sighted taxation
has destroyed the American invest
ment market for the time being.
I'm view of this circumstance, 1t
has become the function of our gov
ernment to take the lead and act
promptly and effectively. not. be it
banks, exports. etc. of their due
share Of exertion and burden. but in
the way of facilitating, supporting
and supplementing such efforts.
Lo@ More in End.
IF we do not provide these credits.
and provide them promptly, we shall
in the end lose far more through the
impairment of trade and trade oppor-
tunities than if the larger portion of
(Which will by no means be the case).
In addition, we shall lost interna-
tional good will which is a. business
asset not to be underestimated. "n'
The total sum required to meet
the need Of the whoIe'of Europe now
and for the next. twelve months is
no more than our expenditures would
have been for thirty days If the
war had lasted but one month longer.
But the call for action on our part
goes far beyond the mere advantage
Of sustaining or fostering American
export trade. Unless we come to the
rescue, and do it quickly, we are fac
ing the prospect of cruel suffering
among the many nations of Europe
during the coming winter, with the
possibility by no means remote of rev.
olutionary uprisings born of hunger
and hopelessness.
Enables Europe to Work.
1.-THE sure and simple preventive
is to enable the European nations to
put their people to work and to
nourish them. No one but America
is in a position to accomplish this
BY cooperation between the govern
ment and private capital we can do it
with ease and without imposing upon
ourselves any sacrifices. II we fail
to do it, we shall not only fail in
what seems to me our manifest duty
from the ethical point of view, but
also in prudence and foresight con-
cerning our own affairs.
What is needed and has been need
ed all along, irrespective of the peace
treaty, to start the process of nor
malizing and stabilizing economic
conditions in Europe, with the re-
sulting relief to the world and bene-
fit to our own institutions, is a def
mite and purposeful lead to that effect
on the part of the administration and
appropriate legislation by Congress.
Private capital will not fail to do it's
share to the full extent of it's capacity
under existing circumstances"
Mr.. Kahn'S views as thus expressed
are in sympathy with the statement
recently made by another distinguish
ed financier, the head of the western
group George NJ. Reynolds of Chica-
go, published in The Star in a dis
patch from a staff correspondent in
that city. They are> known to be
shared by many influential men in
Congress, and it is declared that early
in the coming session the subject will
be given Consideration by Congress.