The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1920-02-06

| feasible for banks, TO make the
grants. Besides. our banks have
expended their credit facilities for
domestic requirements TO quite as
high point as Is safe. That means the
credit should come from our In
vcstment funds, which have been
largely dinsipafed In the recent past
by our f1otations Of new companies.
We have great demands for domes-
tic promotions and for such work
as rehabiiitating our railroads.
which are now in need OF 100000
cars. Nevertheless, we can Mt the
same time assist Europe. We can
expand our lending ability very
much by practicing economy and
stopping the present craze for ex.
travarancc.
but our investors are not dis
posed to adventure into foreign
securities. They can get very high
returns from domestic securities
and they lack understanding and
experience in foreign securities.
Such investments as they have
made abroad haven't been alto
Fether happy in some instances.
The remedy can only come with a
realization by our people of
Europe's extreme need: OF our own
intimate connection with European
affairs and of the reaction on us
OF any economic breakdown in
European countries.
COUNCIL OF BANKERS
CnuTU n STufnX pDAnu ENg
In investing our funds to help
Europe's recovery the idea would not
be for European governments to
float loans here as they did during
the war. The task liz one primarily
for financiers. There should be a
consortium OF bankers. representing
the principal lending countries. that
is those which have a surplus of food
and raw materials. This council of
bankers would have to study the
European industrial situation and
ration such credits as 1t could grant
1T would extend credits solely
with view to starting industries
and keeping people from starving.
The credits should be extended only
In the form of food and raw mater
ials. The consortium of bankers
would sell TO American investors OBJ
legations secured by mortgage or
other security of the European fac
tories getting raw materials and
also secured by the government of
the European country accepting the
goods from America This govern
ment guarantee might be in the form
of prior lien over all outstanding
government loans.
'"rhe degree OF security OF these
obligations would be high IL the
credits granted to Europe were on a
comprehensive scale and left no
areas helpless. There could be no
complete safety for such invest
ments, however. as long as there
were great political districts left in
want and the people In idleness.
Want and idleness are apt to lead to
political revolution, which is a com.
municable disease.
SAYS SOLUTION is
IN HANDS OF u. s.
The only possible solution is in
our hands. Russia cannot give i'm
mediate help. She has no raw ma
terials on hand and her paralyzed
railway system makes transportation
very difficult. 1t would do no good
for us TO cancel the debts Europe
owes us, for what Europe needs is
the food and raw materials we can
supply.
"The present situation was evident
a year ago. but the people who made
the peace treaty paid no attention
to economic data. They did not un-
derstand the complicated theory of
modern industry. They had not taken
into consideration the fact that the
population of Europe under the In
fluence of an Industrial age had
grown to far larger numbers than
Europe's fields can feed But, with
1t all, we can save Europe. We can
do II II we stop our wild extrava-
gance. comprehend the seriousness
OF the situation and decide 1t is
time for us to help our neighbors.
Then we shall have the world at
large ct our feet In gtRtitude"