New-York tribune., 1920-08-16

vestors now seems to be for relative
ly long term bonds bearing high
coupon rate of interest. 1t Is not
within the bounds Of likelihood that
France will be able to borrow on more
advantageous terms than Switzerland
and Belgium, whose securities were
offered on about an per cent basis,
with additional attractions. Probably
the new French bond, provided
loan is arranged, will carry an ex-
change or redemption feature. The
question already has been raised as to
whether or not France will have to
place collateral behind new loan.
The same query was brought up in
connection with the AngloFrench ex-
pertinent in 1915. France and Great
Britain were, however, able to get
S500,OO0,0O0 merely on their joint and
several promises to repay the advances.
There were many skeptics at that time
as to the wisdom Of making such o
loan. Now the date of maturity is ap-
preaching, and all the bondholders
feel confident that the debt to them
will be completely discharged.
Political complications in Europe,
particularly significant rift between
Great Britain and France, would make
poor setting for new French ap-
peal to American investors for funds.
Friends of France may we'll hope that
the atmosphere will clear before the
proposed bond Offering is made.
Instead Of financing Europe's needs
comprehensively, as was so strongly
urged by H. P. Dawson and others in
the spring of 1919, American investors
are helping the Old World on piece
meal schedule. The loans are of
course not in proportion to the need,
and this situation is one of the causes
of the industrial recession through
which the country is now passing. The
hopes of the export houses especially
have failed of realization, and there
has been in recent weeks a substantial
cutting down Of the organizations Of
exporters.
In commenting on this condition, in
a pamphlet he has just issued,
Otto H. Kahn attributes the failure
of American capital to do more for
Europe to the lack Of "wisely di-
rected governmental encouragement,
the countenance and confidence of
rightly informed and guided public
opinion and freedom from hampering
and damaging legislation" On the
more technical side, he explains that
the present tax system has destroyed
the, investment market in so far as it
appealed to persons of large wealth.
Mr.. Kahn, though regretting that
some of Americas postwar opportuni-
ties are "no longer recoverable" as
serts many others remain" He feels
the need in this country of an
Economic General Staff with we'll
matured plans prepared and ready for
occasions as they arise"
The banker, in developing this idea,
says: "The natural leadership in
these vastly important matters be-
longs to the Secretary of Commerce.
That Cabinet position is gaining
greater Importance all the time, and
the right man in that place could
render genuinely important and high
ly beneficial national service.
"ln the peaceful but strenuous COM
mercial strife which will follow the
settlement of the World War in arms,
that nation will win the prize on the
most abundant and best remunerated
employment for its people and the
greatest progress and prosperity
which will know best how to adjust it's
affairs in such manner as to strike the
right balance between, on the one hand.
the requirements of economics, the
promotion of trade and the stimulation
of enterprise and, on the other hand
the dictates Of social Justice and the
welfare and contentment of the masseg
of the people"