The Washington herald., 1920-01-25
SEEK OPINIONS
ON REVIVINC TRADE

RcPfeocntatiNe men OF America,
Great Britain. Holland, Switzerland.
Denmark. Norway and Sweden have
sent to their respective countries,
to the reparation commission and
the United States Chamber of Com
merce a joint appeal for an inter-
national economic conference for
the purpose Of examining the situ-
alton In Europe. and TO recommend
upon the basis of authentic infor-
nation what action in the various
countries is advisable among the
peoples interested IN, reviving and
maintaining international COM
merce." After reviewing the eco
nomic situation briefly. the memo
rardum makes the following obser-
vations:
II. The greater part of the funds
must necessarily be supplied by
those countries where the trade bal
ance and the exchanges are favor
able.
''2. Long-term foreign credit, such
as is here contemplated. is only de-
sirable insofar as IL is absolutely
4
processes. Ii is, not a substitute for
those efforts and sacrifices on the
part of each country by which they
can solve their internal problem. 1t
Is only by the real economic condi-
tions pressing severely. as they
must, on the individual that equilib-
rum can be restored.
"S. For this reason, and also be-
cause of the great demands on cap
ital for their own internal purposes
in the lending countries themselves,
the credit supplied should be re-
duced to the minimum absolutely
necessary.
q. Assistance should, as far as
possible. be given in the form which
leaves national and international
trade free from the restrictive con-
troll of governments.
''5. Any scheme should encourage
to the greatest extent possible the
supply of credit and the develop
ment of trade through normal chan
nels.
&c. Insofar as il proves possible
TO issue loans to the public in the
lending countries, these loans must
be on such terms as will attract the
real savings of the individual: other
I "lrt luhdllOu "OulO De increased
''7. The borrowing countries would
have TO provide the best obtain
able security. For this purpose it
should be agreed that:
"a Such loans should rank in
front of all other Indebtedness
whatsoever. whether internal debt.
reparation payment. or interallied
governmental debt
"b. Special security should be set
aside by the borrowing countries
as a guarantee for the payment of
interest and amortization, the char
acter of such security varying per-
haps from country to country, but
including in the case of Germany
and the new states the assignment
of import and export duties paya-
BILE on a gold basis, and in the
case of states entitled to receipts
from Germany, a first charge on
such receipts"
The idea of this conference is
said TO have originated in the Euro
pean neutral countries and the pres
ent prospect is that it will be held
in March. probably at The Hague
Meanwhile J. w. Alexander, the new
secretary OF commerce, has taken
the position that any UNDERTAKING
of the reconstruction of Europe
must recognize the necessity of
carefully protecting American in
terests. He declared that the only
solution or the credit problem is
the sale OF European securities to
American investors and that the Sc
curlties must be unQuestionable.
He declared further that these
credits must be utilized for increas-
ing essential production in European
countries, and that this will make
security for future credits even
more secure and will pave the way
for steady investment of American
capital in foreign countries"