The Washington times., 1920-01-04
IS BILLION LOAN
ASKED BY PA|SH
international Issue to Be Float
ed Under Authority Of
League. f
tcontinusd from First Page,

tcontinued from First Psse.)
curities that those countries will
know to be sound"
by International currency or bond
issuer'
sInternationaI currency, Il seems
to me. would mean q greater inna-
ton than we could contemplate. A
bond issue would be the way out"
would such a plan make the
United States hold the money bakr
TT would mean paying America for
supplies which she has TO sell and
which she cannot sell unless the goods
are paid for by credit In securities
which will be, the nnest In the world.
II will enable the American people
| 10 sell their supplies and TO have no
fear as TO payment"
Gssrasteel ~ League.
"And your plan is TO have the league
OF nations guarantee That payme1tr
eyes. have those psyments interns-
tionaiiy guaranteed; but. OF qeurse. in
considering SUCK bond issue. you
must consider Europe a. grow ne
concern. when you have house. up-
der construction. you need imaxina-
ton TO see that that house ID going to
be productive when finished. Europe
is under reconstruction, and you must
have the lima Kination to see that IL IL
going to be q self-supporting com
munity."
"What about the element of risk
tho risk OF failure of these coun-
trtesT'
"France may be In your mind.
France will be completely recon.
structed out of the funds that would
be thus provided. This assumes that
the credit would be big enough to
reconstruct Europe. Then you would
have a business In running Orders
business completely renovated
what amount would the United
States be expected to contributeT
.sThe total sum required 10 seven bill
lion pounds sterling, or $35.0Oo.OOO.-
900. Three billion pounds sterling,
or SIS, ,000. 900. 900. would be required
for the purpose OF paying exisuLg
debts. That would mean refund
to the United States OF the $s'ooo,-
600, 900 war debt-turning II into
league of nations bonds.
Need Ten Billions.
Then we would probably need
SIC, 900. .o00. 900 to restart and restock
Europe and build up the devastated
districts of France. Belgium, Austria,
etc. That reconstruction needs to be
done at once. We cannot expect much
from Gemany at present She will
pay her indemnities very slowly. 1t
will take her long time
What maturity would be placed on
the league of nations bonds?'
They would be redeemable In
forty-two years They would be free
from taxation in all countries, ard
should bear a rate of interest OF only
4 per cent, with ! per cent for a sink
ing fund. Behind the bonds would be
the collective guarantee of all the ma
tions So far as the United States Is
concerned. they would be a charge
against your revenues. The guaran-
tee would make them an. interna-
tional security of high quality"
How much would the United States
be expected to put in7"
THAT would be for the countries to
arrange among themselves. ! think
Great Britain would be very willing
to guarantee interest and principal
on $1,000, ,0000,0 at once. That is
Just about the amount of Great
Britain's debt to the United States"
where would you find the market
for.these bondsT'
These bonds would sell in every
country"
It was suggested that the bonds
would put the world off gold basis.
supplenentaI to Gold.
NO" said Sir George, these bonds
would be- supplemental to gold. Their
par basis would be the American gold
dollar. They would be payable In
American gold dollars. I think they
would find a market everywhere. for
they would be better than gold"
do you think they would depre-
ciate in value as Liberty bonds have?"
On the contrary. think they
would rise in value"
"will the pound sterling be en-
hanced in value by the issue OF these
bonds?
IF this plan Of mine Is realized"
was the reply, pound sterling will go
back to $3.50 or above"
Reverting to the rehabilitation of
Europe, Sir George said:
Unless something Is done the
world is in danger of complete
breakdown. Something must be done
to enable you to sell and us to buy"
Have you proposed your bonding
plain in financial circles in Europe?"
Yes, and 1t has been very well re-
ceiyed. And IL Is essential that Ger
many should have credit like anybody
else. because Germany must help in
the work of rehabilitation. Europe Is
at present at the point of collapse"
Here As Citizen.
Sir George explained that he is
here not as the representative of the
British government, but as a private
Individual and the agent Of the Fight
the Famine Council and the Vienna
Emergency Relief Fund. He said he
had come here to get the American
point of view and IL possible to bring
about the creation of a committee
that would cooperate with those two
N ON tiOns