New-York tribune., 1920-01-15
Failure to Ratifv
Treaty Hits Trade,
Alexander Asserts
Secretary of Commerce Saws
Government Cannot Pro-
vide Foreign Credits; Buy
European Securities

Failure of the United States to ratify
,ne peace treaty and enter into the
league of nations, Secretary of Com =
merce Alexander declared Yesterday, IS
aelaylng the investment of American
capl1ai IN European securities. and
therepy holding up the progress OF our
lorelgn trade across the Atlantic.
Inc new Secretary of Commerce was
the principal speaker at a luncheon
conference held by the American Manu-
featuring Export Association to CON
slder the question of financing Europe
and incidentally our OWN foreign trade
With the countries of Europe. Sir
George Palsh. British economist, and
eugene Meyer Jr., managing director
OF the War Finance Corporation, which
IS aiding American industry to finance
foreign trade, were the other speakers.
NO immaculate solution of the Euro
pean credit problem is in sight. de-
clared Mr.. Alexander He as we'll as
the other speakers made the point that
such financial aid must come largely
through the investment of the savings
OF the American public in foreign Sc
curties.
Ihe government cannot add to the
heavy burden of taxation" he said, "to
give large assistance to other coun-
a
purely business basis
Sir George Paish and Mr.. Meyer dis
agreed over the amount of aid that
should be extended to Europe. The
Srltlsh economist painted a gloomy pic
ture of reconstruction in Europe, and
said that food. credits, raw materials
and even manufactured products from
America were necessary to the social
political and economic restoration Of
Europe. "You have been told recently
he said, that the food situation in
Europe is not very serious. I would
ask you to note, and I challenge denial
that the food products in Europe during
the war, according to governmental fig
ures, had declined 40 per cent Without
your food we shall be starved. Are you
prepared to grant the credits to enable
US to buy your food and avoid starva-
ton and anarchy" ?"
Europe is not bankrupt" he added
She intends to pay for everything she
buys of you, but she must have goods"
He called attention to the need of loco
motives. which had been run out" dur
ing the war. new machinery of all kinds
and all sorts Of manufactures, includ-
ing clothing. The impression has got
only raw materials. In fact. we need
everything.' He expressed a hope that
America would not press England for
shipments of manufactured cotton
goods, because these were badly needed
in England and Continental Europe
Mr.. Meyer took issue with Sir George
upon the amount of goods that should
go from America to Europe. when
Sir George Paish speaks Of sending
Americas surplus TO Europe" he said
81 should like TO see that surplus tabu-
lated. Every one knows we have q
shortage Of most goods in our own
country. However, l can report that
the War Finance Corporation recently
aided in the financing OF large order
Of locomotives for Poland and is in
terested in more orders for engines to
come from other parts Of Europe. We
also have under consideration other
railway equipment for Europe"
Mr. Meyer agreed that American in
vestors should buy more European Sc
curities, but he warned his hearers that
they must be sound. There are limits
to the safeness and so"rdness Of
credit" he said, "although we have
done with credit during the last few
wears what we believed impossible. The
time has come, though. to use credit
with more discretion than during the
war"
He explained that the War Finance
Corporation has $1,000 100000 TO use in
aiding American manufacturers TO
finance foreign trade. but said that in
all cases it was the policy OF the cor
poration TO Get industry and banks 10
aid in this rnancinr