The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-02-06

IiOIaLlOnS OF new companies we 1dNC
great demands for domestic promo
tons and for such work IS rehabili-
tating our railroads, which are now
in need of six hundred thousand cars
Nevertheless. we can at the same time
assist Europe We can expand our
tfcing economy and stopping the pres
ent craze for extravaganza
But our investors are not disposed
to adventure into foreign securities.
They can get very high returns from
domestic securities and they lack I'M
Outstanding and experience in foreign
securities. Such investments as they
have made abroad haven't been alto
gether happy in some instances The
remedy can only come with realtza-
ton by our people Of Europe's ex-
IRENE need: of our own intimate con-
nectfon with European affairs and Of
| the reaction on US of any economic
breakdown in European countries
Up to Financiers.
"In investing our funds to help
Europe's recovery, the idea would net
| be for European governments to float
loans here as they did during the war
| The task is one primarily for finan-
/ ciers. .There should be a consortiun
of bankers, representing the principal
| lending countries. that is, those which
have a surplus of food and raw ma
teriaIs- This council of bankers would
have to study the European industrial
situation and ration such credits as it
could grant 1t would extend credits
with a view TO starting industries and
keeping people from starving. The
credits should be extended only in the
form of food and raw materials The
/ consortium of bankers would sell to
American investors obligations secured
| by a mortgage or other security of
the European factories getting raw
materials and also secured by the
governments of the European country
] accepting the goods from America.
This government guarantee might be
| in the form of a prior lien over all
the outstanding government loans.
The degree of safety OF these OBJ
legations would be high if the credits
granted in Europe were on a compre-
hens.ve scale and left no areas help
less There could be no complete
safety for such investments however
as long as there were great political
districts left in want and the people
in idleness- Want and idleness are
apt to lead to political revolution,
which is communicable disease.
England Has Made start.
while the facts are pessimistic
there are some bright spots. England
has done marvelously in getting her
industries adjusted Belgium roo ha<
vlval IS not sufficient TO warrant op-
timism. In some places only 20 per
cent Of Industrial revival has oc.
Cured. Nevertheless, once a start is
made in helping Europe by the United
states. the situation should become
much brighter. The only possible So
1 luton is in our hands. Russia cannot
give immediate help. She has no raw
] materials on hand and her paralyzed
railway system makes transportation
very difficult. 1t would do no good
for US to cancel the debts Europe owes
US. for what Europe needs is the food
and raw materials we can supply
The present situation was evident
a year ago But the people who made
the treaty paid no attention to eco
nomic data. They did not understa nd
the complicated theory of modern in
dustry. They had not taken into con
sideration the fact that the population
of Europe under the influence of ar
Industrial age had grown to far larger
numbers than Europe's fields can feed
But, with it all. we can save Europe
We can do it if we stop our wild ex
trava gance. comprehend the serious
ness of the situation and decide it i.
time for US to help our neighbors
Then We shall have the world at oul
: feet in gratitude