New-York tribune., 1920-01-14
issued can be ascertained only from

issued can be ascertained only from
experience"
In explaining the relation Of Amer
lea as the main creditor nation to the
proposed financing plan, Sir George as
serted: 1f Europe were to purchase
States in 1920 as she did in 1919, and
were unable to expand her sale of
goods to the American people, the
amount Of securities which America
alone would require in payment for her
surplus would be $4,500,000,000 in the
coming year.
IA very considerable expansion in
Americas imports from Europe may,
however, be looked for, and Americas
surplus for 1920, to be settled in So
curities, should be much smaller than
Europe will be able to create in a
single year an equilibrium between
what she needs to buy and what she is
able to sell, and any comprehensive
plan that is devised to take care Of the
situation must provide for the contin-
uance for several years of Americas
ability to sell much larger quantity
Of her products than the amount OF
foreign products she Is able or willing
TO DQy from OCher natlOnS.
consequently, the amount Of credit
facilities to be arranged for must allow
for the continuance Of an American
surplus Of exports over imports for
several years, and must also allow for
the continuance Of a surplus of exports
over imports by the other countries of
the world which supply Europe with
food and raw material.
IT Exror+ Cr;s;s caor
CLEARLY America cannot much
surplus of exports by means of bank
ers' credits, and some method of financ-
ing it by means of loans raised from
American investors must be found with
out delay. The question that now
needs to be answered is What kind of
securities will American farmers,
planters. manufacturers and others be
prepared to accept in exchange for the
5s ss and goods ha they Sssrs aad
Congress of the United States are evil
IDENTIFY no longer willing to finance
Americas surplus exports, and some
other method of financing Americas
surplus exports than American govern
snent seems to be essential.
"A complete breakdown Of the ex-
changes will mean that American farm
eIS, planters ana uaHu!acIuIeIS VIII
be left with vast quantities Of produce
and goods upon their hands. and that
Europe, deprived of American food and
material will be destroyed by starva-
tion and anarchy"
End Here, Says Vanderlip
"The United States dissipated it's
own ability to grant credits" Frank
A. Vanderlip told the council. owe
have blown our own credit situation
to a point where we are no longer
able to. grant any credits.
"I proposed nine months ago that
the Europeen nations would have to
offer securities underlying their great
mass of debt. These nations must first
balance their budgets before any great
credits can be advanced,
81 believe it is possible we may, face
breakdown of exchange to which the
present collapse is no comparison"
Mr.. Vanderlip said that, of course,
action to relieve starving European
nations was imperative, but COM
mented on the fact that these nations
had shown little disposition to de-
crease their expenditures after the
war.
Benefit in Combine Shown
In urging credits for Europe, Sena-
Tor Edge, aurhOr or the export nnance
act. said regarding the prospects of
action under that law:
"The possibilities under the new act
should be especially attractive to con-
Germs and interests operating under
the so-called Webb law, which permits
combinations for export business, with
out subjection to the operations of the
antitrust laws. For instance, a group
of cotton producers combines to sell
heavy consignments to Europe, under
the new act they also may combine to
finance their own export operations.
~ am opposed to the further extern
sion Of government credit to Europe,
but l do believe that it is the duty
of the American government to encour-
age the American producer and ex-
porter and to help the American busi-
ness man help himself, so that he can
take advantage of the great foreign
markets and be paid for his goods.
l believe it is the duty of the govern
ment to provide the vehicle through
which America can do business abroad
and that is just what this export
finance act is designed to do"
A. C. Pearson, Of "The Dry Goods
Economist" also spoke.