Republican farmer., 1920-01-30
j. s, CAPITAL TO HELP EUROPE
 GET ON FEET
To Restore Normal Condi- tions and Open
 Markets.

Washington, Jan. 23 - American capital will be employed in aiding Europe "to get back to productive york; not because of attractive rates of interest" but to restore nor nal conditions and to open markets for American export, Governor w. P. G. Harding of the federal reserve board, said today, speaking before the second Pan-American Financial Con- gress.
 "We cannot, however, export things which we do not have" Governor Harding said, "and in order to pro- vide an exportable surplus we must produce more, or, failing in that, consume less.
 .During the last year we have wit messed an unprecedented era of ex travagance in this country; there has been a continuous rise in prices, and while the value of our products ex- pressed in dollars has been greater than ever before in history the physi- cal volume of goods produced was , less than the production of any year since 1916. Our domestic demand has been competing with export de- mands, and the result has been that | prices have been bid up on both the foreign and domestic consumers. "Our people must be aroused to the i consciousness that after all we may 1 be living since the close of the war 1 in a fools paradise and that more 1 work, economy and liberal investm ent 1 in foreign securities are necessary if we wish to make our present appar- ent prosperity real and permanent. It | is important that the world should 1 get back to work, and in order to provide steady employment for the 1 people of our own country even, 1t is 1 necessary that there should be sus- | tained demand for products, and in 1 order to maintain this steady de- mand it is necessary to supply mar l ketS abroad for our surplus pro | duction.''
 | To enable Europe to produce things necessary for its own support, Gov l ernor Harding said, American raw l materials and equipment must be ex- 1 ported and the exchange for Euro | pean products facilitated. American | bankers were studying the situation from a new angle towards world l finance, he said, and undertaking en- | agreements they would not have em- | barkd On a few years ago. American 1 manufacturers were extending long credits, he added, but could not do so indefinitely with undue pressure on I the credit with American banks, and to assure this essential long credit to European buyers, appeal must be made to American investors"
 Governor Harding called attention to the new Edge act" providing ma
 chinery for financing these under takings, which, he said, gave export srs, producers, manufacturers and | American investors the means of CO., operation to solve the problem before them.
 "'The basis of world commerce is
 an exchange of goods" Governor Harding said, pointing out that Amer
 ican loans must be on terms to per.
 init the borrowers to repay in pro- l ducts.
 European nations can produce
 many things which we either do not
 produce at all, or cannot produce as l cheaply as they can,' he continued
 "for it may be they can produce
 things needed in South American
 countries or in the Far East. As American importers have constant
 dealings with South American and
 Oriental countries it follows that
 European credits available in China
 and Japan, Argentine, Chile, Brazi , and other Latin-American nations | Will pc Just as ef1ectlVe Tn nQu1dat1on
 of European obligations in the United
 States as direct European credits iH
 New York would be-
 The speaker pointed out that the
 United States in five years had passed
 from a borrower nation with five bil- lions in outstanding debts to a cred itor with $14,00o,o 100000 on its
 books, and the national debt had risen from one billion to twenty-five
 Exchange rates abroad were far be-
 low normal, he added, and in assum. ing it's new role, the United States
 faced problems which were un- known to the old creditor nations oi 2 antebellum days"
 HARRIMANS GET VESSELS