The Washington herald., 1920-02-12
PRIVATE AID
FOR EUROPE
Foreign Situation Must Be
Relieved by Private
Capital.
TEMPORARY TRUCE
TEMPORARY TT
Money Need Not Necessar.
lily Be Taken From
Country.

a very great extent to put Europe
on its feet. and consequently put
foreign exchange on a more stable
basis than 1t is at the present time.
This is the opinion of Acting Sec
retary Edwin F. Sweet, of the De-
partment of Commerce. who said
that this would only be reciprocal
ing the aid which the Europeans
have in the past given this country
by lending money with which our
developed.
THE conditions now existing in
Europe so far as the exchange is
concerned will not get any better
for a time, and may even be eX-
pected to get worse" said Mr..
Sweet. THE government cannot ad-
vance any large amounts of money.
and therefore the brunt must fall
on individuals who have money to
invest" he added.
The money could be loaned for
the rehabilitation of industries af-
fected by the war and for new de-
velopments, and the money would
not have to leave the country, Mr..
Sweet pointed out. The Edge law
providing for the organization of
banking corporations for dealing in
foreign trade provides the means.
A corps of Investigators would be
sent out by such a corporation. and
find out the safe investments for
the Americans to put their money
into.
AS the Europeans need the prod
ucts of the United States, the money
would not have to actually be sent
out of the country, but would be
left on deposit here for the foreign
Industries to pay for the materials
they need. In this way the indus
tries of the United States would
have an outlet in Europe for their
products, and there would not be
any trouble over the foreign ex-
change rates. The loans would be
in American dollars and the pay
ments in the same.
This method would knock out OF
the path the most serious stumbling
block to the development of AmerI-
can trade in Europe at this time.
And it is a serious stumbling block.
as American exporters are finding
out more and more every day as the
demands fall off.
"Our manufacturing enterprises
and our railroads were built to a
very large extent with European
capital" Mr.. Sweet said. These Eu-
ropeans did not send their money
over here as charity. but strictly as
business proposition In the belief
that it was a good investment.
During the war this debt was
paid off by the shipment of large
amounts of the commodities which
the United States had and which
the Europeans needed, and fulfilled
that. faith which the lenders have
in the industries in this country.
The industries and railroads in
Europe are now in need of money
with which to carry on development
work and to rebuild those destroyed
during the war.
"It is much the same as in the
case of a man in business here" he
said. Take. for instance. the owner
of a saw mill. The mill is destroyed
by fire. including machinery. But
the owner has the land and a stock
of logs to begin over again. He is
reliable and a bank believes it to be
a good investment and lends the
money to rebuild. 1t helps him out
of the rut.
why not take the same position
with regard to Europe" Mr.. Sweet
pointed out Let individuals,
through proper channels. come for
ward with their money, and put it in
European development. Have faith
in them during these trying times,
as they had faith in the United
States during the years of its de-
velopment."
Such a method of helping Europe
cannot but react to the credit of the
United States. 1t will provide a
proper field for investment for those
having money to invest. and in the
end will keep American Industries
busy and people at work. and at
the same time overcome that fear of
buying products from the United
States under the present rates of
exchange due to the fact that they
will cost two and sometimes three
times more than under the normal
basis of the exchange.
There is no getting away from
the fact that the present condi-
'tions are interfering with the trade
with the Europeans. as reports arc
constantly coming in that ships are
sailing with only partial cargoes.
For the United States to develop
organizations through which indi-
viduaIs may invest in foreign in
.dustries will aid it very strongly in
holding it's position in the interna-
tional commercial field.
AS an instance of this there came
into foreign trade channels last
night a dispatch from Rumania
that IL the United States was pre-
pared to extend a long credit to
that country the American mer-
chants would receive nearly all of
the business of that country.
The Rumanians are in need of
all kinds of merchandise, accord
ing to the report. but most OF all
they need rolling stock and equip
ment. However. the report pointed
out that the only way to get this
business was on a basis of credit
extending over from three to five
years on Rumanian treasury notes
payable in dollars. other countries
already are out for this tIsde, and
the report pointed out that just
recently the Italian and English
had sold shoes and clothing to the
Rumanians payable in per cent
treasury bonds payable in three
years. At any rate the amount sold
was only a small portion of the
Rumanian needs.
Representations have been made
to the Rumanian prime minister
that that country in order to re-
ceive aid must treat foreign capi-
tai favorably. and 1t is understood
that he received IT in a favorable
light.
NEW ENGLAND TELEPHONE.