The New York herald., 1920-01-15
SIR GEORGE PA|SH
TOLD EUROPE MUST
CURBEXPEcTAT|ONS
Must Shake Off Delusion of
Unlimited Resources Here,
Says E. Meyer, Jr.

SIR George Paish. British financial ex-
rert. told the American Manufacturers
Export Association at their monthly lunch
con at the Hotel Pennsylvania yesterday
he believed the United States would supply
enormous credits to England. and that ne
hoped investors in this country would place
their money freely in foreign investments.
Eugene Meyer Jr. managing director of
the War Finance Corporation, following
Sir George. said:--
II feel that the people Of Europe haveI
y I such reliance on us. a reliance which
: met SO bountifully during the war. that
they are dcluded into the idea that this
is country Of unlimited resources of
material. money and credit. When Sir
George Paish 'naaks OF our surplus goods
would like 70 see them tahulated There
Is a shortage cf almost everything in the
world that we produce in this country to-
day. And thousand million dollars from
the War Finance Corporation Is very
limited amount compared to the cxtraordi-
nary pictures OF the needs OF Europe as
pictured by Sir George.
Credit, gentlemen, Is a little like some
drugs. 1t Is the most healing thing in
the world in the hands OF people who know
Its healing powers and its dangers, but It
can become the most denoraIizing agency
in the world We could afford to take
risks during the war that we must cease
taking now. We must look forward to the
time when our balance OF trade will be
balanced in other ways than by peper.
Urges sound Business Basis.
ut takes moro than lenders to do busi-
ness. 1t takes borrowers. and they must
come to this country with propositions
that can be found acceptable and sound.
Whatever cur sympathcs may De. be-
lieve that it is .-ore in tho interests Of
the borrowing countries TO consider these
things, except where 1t Is a question Of
pure relief, on a sound business basis. II
fear that We are placing too much reliance
on that magic word credit"
Sir George Paish referred to the fact
that before the war the United States
was a debto- nation to the extent of some
81 600 100000 and that at the end Of the
war that debt was not only paid. but
So 900. 600 COO stood to the credit Of the
United States.
THE question now is,'' he said. what
action you are going to take in the future
You have come out OF the war a. great
trading nation. and hope you will stay
there. Whether you do or not depends
upon yourselves. The world needs all
your goods: all your production. In fact.
at the present time ii needs them SO much
that one reason I came here was to ascer-
tain whether you were prepared to so on
supplying those needs.
without your food We will be starved
Are you prepared TO grant us the credits
to enable us to buy your food and avoid
starvation and anarchy? If you will pro-
vide the raw material and the manufac-
lures to help US get back our productive
power, then you may look forward to the
maintenance of this great foreign trade
OF yours for all time.
sir George said that. apart from Aus
tria, he was not here to ask for gifts. He
did plead for the relief Of Vienna. saying
that the body of Austria had been en-
tirely cut away from its head.
Say Gifts Are Not Wanted.
'I am here 20 tell YOU that we do not
want your gifts" ne said. I'VE shall be
ready and able to pay for everything you
send us. There is no doubt about tina I.
What we Want you TO do Is TO send US
your food. your raw material, your manu-
factures. for we need them all and can't
get straight without them"
Sir George especially urged that credit
be given in order that the transportation
systems of Europe may be rebuilt. He
expressed the belief that there would be
nothing TO fear IL American investors AMI
manufacturers realized that the issue at
stake Is not one OF mere investment but
of the preservation OF civilization; that ii
meant the credits would be used, not for
destruction, but for the rebuilding of the
world, and that the total gain to America
in tho matter of trade supremacy would
be incalculable.
Joshua W. Alexander. Secretary of Com
merce, who also spoke upheld Mr.. Meyer
in urging that credits be given on al
sound business basis. He declared that
the world political situation made any
policy difficult TO carry out and said that
the first thing which should be done was
the immediate ratification of the peace
treaty. In his speech on THE Needs OF
American Export Trade" Mr. Alexander
gave a statistical summary of the present
trade standing between the United states
and the principal foreign countries. He
said IL was impossible to overlook the
fact that iho crux of the whole financial
and trade standing of the United States
lay in Europe and that future trade bal
ances depended upon how the European
situation is worked out.
w l.. Saunders, president OF the Amer
ican Manufacturers Export Association,
presided at the luncheon. Those at the
guest tabo besides Mr.. Saunders and the
speakers were William G. Redfield, G. II.
Jennings, j. Herbert Case. Shepard Nor
gan and William A. Prendergast.
--------------------