The Calhoun chronicle. [volume] (Grantsville, W. Va.) 1883-1984, 1920-02-19
HOUSTON SEES NO.
DANCER OF CRASH
Absorption Here of High Grade
Foreign Securities Furnishes
Credit for Reconstruction.
HOW EUROPE AIDED U. S.
Last Of Floating Loan Retired-Treas-
ury in Strong Position, but Secre-
tary Warns against Extrava-
gance by Congress.

gance by Congress.
Washington.-Confidence that Eu-
ropes monetary problems will be set
tied satisfactorily was eXressed by
Secretary Houston in review of the
international financial situation.
This country is constantly furnish
ing Europe capital with which to re-
construct the economic life of nations
there, said Mr.. Houston, explaining
that advances are being made in the
same way that Europe aided this cOun-
try in time of depression in the past
not by government loans so much as
by indirect methods, such as private
loans, sale of surplus army equip
ment and the absorption of high grade
investment securities offered i'm mar
kets here by European holders. The
secretary estimated that Europe had
received approximately $4,000 100000
from this country since the armistice
was signed.
The position of the United States
Treasury was said by the secretary to
be very strong, the redeeming of the
last issue of loan" certificates of in
debtedness, about sGO,OOO,OOO leaving
no outstanding floating loan in the
sense of short term certificates re-
quiring to be refunded at maturity.
Tax certificates outstanding amount to
$2,935, ,949,500, all of which will be
paid by forthcoming income and profits
taxes
Altogether, Secretary Houston de-
clined to agree with the pessimistic
view of some public men, who forecast
financial crash, and asserted that
while there were many difficulties still
TO be overcome, there was nothing in
the situation TO be regarded as ex-
tremely grave
The rapid reduction of government
expenditure and realization of the sur
plus stocks accumulated for war pur-
poses have been important factors i'm
making possible the reduction of the
floating debt and the gross debt of the
government in the last five months. he
said
The position of the treasury at pres
ent and the future of the market for
the outstanding issues of Liberty
bonds and Victory notes are very
bright The whole color of the pic
ture would, of course, be changed if
Congress should embark upon new ex-
pendtiures on a large scale.
In that connection it is interesting
to observe that the depression i'm high
grade investment securities in this
country at the present time Is. to n
very important extent, the result of
heavy selling Of such securities i'm our
markets from foreign sources. This,
as Secretary Glass said i'm his annual
report, is one of the processes which
is stimulated by the very position Of
the exchanges which it tends TO cor
rect BY absorbing these high grade
investment securities the American
people are furnishing capital to Eu-
rope at time of EurOpe's need and
are giving this help i'm just the way
that Europe helped America in the
period of Americas growth and of her
own monetary troubles
In the days Of the infancy of the
Republic, i'm the days of our Civil war
and of the period of reconstruction
after the Civil War Of the monetary
panics which we suffered at frequent
intervals until the establishment of
our Federal Reserve system America
suffered greatly for lack of capfta1 ond
credit and because of her depreciated
currency, ana later her inelastic cur
rency. In those days Europe came to
Americas aid, not by government
loans, not with any comprehensive
plan, but by the investment of private
capital upon attractive terms i'm Amer