The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-11-24
Seek Harding'S Views
On Releasing German
. Capital Now Tied Up
BY DAVID LAWRENCE
Copyright by The IntCliiGenc"

Washington. Nov. 2S.--Lead.nS bank
crS have asked PreSident-c.eC: Harding
tor conference as soon as he returns
from Panama so that his views may be
obtained on the formation OF a banking
syndicate whereby S4oO000.0 900 Of Ger
man capital and securities now held by
the alien property custodian. shall h"-
come available as a basis OF credit n
International trade.
The plan TO utilize the German Srcuri-
ties is also before the Wilson adminiS-
lratiOn which Is studying ~" l"g,!!
points involved. Bat tho undertaking is
20 far-reaching in Importance and has
such vital bearing on international eN-
change that New IUri bankers are eager
20 know how Senator Harding looks at
the matter so that there will b. smooth
, sailing ahead in the event that = start
is made before March T.
The securities were originally held BY
German residents IL the United States
or american corporations and business
houses in which the majority Of the
stock WAS German owned. These S"curi-
Rios have been held in trust during I'll"
war and along with other German prop
erty their disposition has been left. 20
Congress. President WilSUa has de
clincd TO recommend the return OF the
property until America signed I peace
treaty with Germany and said treaty
was ratified by the senate. One Of the
chief arguments against the Knox reSo-
luton for separate peace was that It
n separate agreement or treaty with
Germany could an understanding b.
reached concerning such questions as
German property IN the United States or
claims growing out Of the sinking OF
the LuSitania.
New Basis Of Credit.
But the depression in export trade and
the general condition OF American busi-
nesSeS which dep nd. rCrI largely Tor
their existence on their ability 20 sell
= n ~
Cnt movement 10 establish new basis
Of credit. Foreign trade has br"n adj
Versely affected not because "r Sur-
plus ~ goods abroad out t"'cause Of tne
absence Of money or "r"d:t where with
70 pay for American goods. Til. move
ment to create :. credit tor Grrr>&n pur-
chas"S is believed by its authors to be
the best way TO start the ball rolling to-
ward bct;vr conditions IN N. exchange
market generally.
Considerable pressure Is hr!rg brought
40 bear upon tnv Wilson administration
to approI- the plan Prospective Of what
the uitlm,,;c fate OF the peace may De.
M Wilson's determination during tho
ta$t session OC Congress was to insist
upon the :. tifiCation Of m" treaty b.
.rr, taking up All other questions with
'ierm;,ny grow ing out o: h" war. Some
..: those who favor the building ot an
American SSnd! Go te believe the German
-ccuri;icS could be inv eStCd legally by
the United States government IN SGch
vorpOratiOn as is permitted by the Edge
.aW and that the right Still exists 10 in
SOSt German securities III any way that
khe American gOvernment-the trustee
SEES Cit. Others tfink wiser plan
would be to obtain the permission OF the
German owners Of the securities and IL =
js ~ I'd that t'!s perrlisSIon ii already
assured because by such a. scheme Ger
many would be able 10 buy at once need
ed commodtt!.S.
England and France.
,,.I,., -1aY,. a and HN-lY YFNA1
say about the establishment of such
credit IN favor OF Germany which mISh
tend 10 give Germany raw materials that
France for example may be anxious 10
get but is unable 10 do so without SINH
lar credit arrangements is hard to say.
The American government. however. Is
free 10 discrimina t. in favor oi Germany
or TO establish trade relations in any
mrnt. Since the defeat Of the peace
treaty the association with the allied
government has suffered more or less
and the tendency among exporters had
been 70 get trade wherever possible
without thought OF war hatred. The
expected coolneSS IN trade relations.
symptom OF which was the aetaiion
against the purchase OF German toys.
has not developed. and England and
Franco are trading with Germany.
America has b"en handicapped IN re-
sumption Of trade by the defeat OF the
peace trsaty. but the movement Of the
~
Of credit FOR German purchases iS be-
lieved to be the first step toward 4 gen
oral renewal of trade relations with
Germany.
1t Is estimated that if tnc $500 100000
OF securities owned by the Germans and
held at present by the alien property
custodian are invested in the new synd:-
cate q basis of credit amounting TO ap-
proxirately TWO billion dollars. may. b"
established German companies or cor
poratinns approved by the Germany gov
ernmcnt would Il" enabled TO buy goods
with that credit and thr hope OF the or
Sanizcrs OF the syndicate is that large
Quantities OF American goods rnny as a
Consequence promptly find market in
Central Europe.
Although Senator Harding has not yet
-Gp!tcd 10 the request for = conference
his close friends represent him as ready
20 discuss the whole situation carefully
aud to give such assurances as may be-
possible under the circumstances 10 for
ward the plan for q betterment OF trade
relations with EuropH.