New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03
Harding Signs
Peace; Early
Trade Revival
fcontlnaad from page one)


to boom. The Republicans, accepting
the Democratic statement that q site
OF technical war was retarding pros
/ perity, insisted that the blame rested
on the Democrats and particularly Mr.
wilson, because of his veto OF the
peace resolution. Mr.. Harding prom
lsed again and again, in his campaign
speeches. that he would have passed
and sign a resolution establishing
| peace.
Foresee Revival of Trade
There is strong hope here, therefore,
that certain amount of optimism will
be injected into the business men and
manufacturers Of the country by the
fact that the state of technical war is
! ended. The belief of Administration
officials for some time has been that
! If only little start could be made in
the direction of speeding up business
recovery would become an automatic
process. Confidence and optimism, il
| has been thought, were the elements
chiefly needed.
| In paving the way fer this step
towards normally the Administration
has made several important moves.
The chief underlying idea of the con-
ferences between the President, Sec
rotary Of the Treasury Mellon and
! Secretary of Commerce Hoover with
| bankers from all over the country, was
( aid in financing exports. Up to that
time the finance corporations designed
to assist exports by extending credits
had not received sufficient support
Z ~. -,
cess. Promises to help them were OBJ
tanned from the bankers by the Presi-
dent. More sensational developments
at the conferences along other lines
prevented this, the original idea under
| lying the call for the meeting, from
being given the publicity it would
otherwise have received.
1t is obvious that if Germany can
now buy what she would like to have
! from this country tremendous i'm
petus would be givenyto business of all
| kinds. If she were only able to buy
the cotton that the South believes she
wants, the result would be immediate.
| The Southern planters would begin
paying off their notes to the banks,
| frozen credits of this character would
be released, and the storekeepers all
! through the South would begin delug-
ing New York and other jobbing and
wholesale centers with orders. If Ger
many should buy only a comparatively
small quantity of wheat, that move
ment would probably have similar
effect on the great wheat belt of the
Middle West.
There is no doubt about Germany's
desires. The only doubt is about her
ability to pay for what she wants. The
President, in the course of his study
and conferences on this problem, made
it clear to the public, as we'll as the
international bankers, that he re-
garded exports as Of such vital con-
sequence to this country's prosperity
that he would oppose the granting of
credits ahroad-or, in other words, the
sale of foreign bonds here-for any
except two purposes. These We're the
refunding of debts and the financing Of
exports Of American goods.
Market for German Bonds Here
With the signing of the peace reso-
luton, also, comes the stronger pos
sibility of the sale in this country of
German reparation bonds. AS these
will be the property of the Allies, par
ticularly France and Belgium, they
purposes-to obtain American dollars
with which to cancel the debts of those
countries to the United States, Or with
view to making purchases of goods
here for export to France and Bel
GUM. Either plan would meet the
conditions which President Harding
has laid down with regard to foreign
credits He has publicly signifed his
Willingness and desire that Allied
bonds should be sold to American in
vestors in large enough amounts
eventually to discharge the $4,000 00O,-
600 of Allied debt to the United States
government. While there has been no
Expression from the Administration as
to the possible sale of German repara-
ton bonds this might easily be the
next step.
One official here pointed out to-day
that if the Allied governments selling
the German Bonds should guarantee
payment of their principal and interest
it would bring the separations bonds
Immediately within the scope of the
plan already laid down by the .Presi--
dent and within the authorization Of
the bill sent to Congress by Secretary
Mellon with the Presidents approval.
The net effect Of this whole opera
ton would be to make American in
yestors the creditors of the German
government instead of the French and
Belgian governments. But the cash
nut UP by the American investors
would be used by this government to
redeem Liberty Bonds. None of it
would be permitted to go out OF the
country.
May Have Double Guaranty
1t is entirely possible that German
reparations bonds may be sold in this
country with the guaranty of both
France-or Belgium-and the United
States.
The property in, this country of Ger
man citizens seized during the war by
the Alien Property Custodian and still
held by that branch of the government
will not be affected by the restoration
of peace, since the resolution specifi-
cally states that it is to be held until
all claims of Americans against the
German government arising out of the
war, and more especially during the
period of American neutrality, have
been satisfied. This would include
such claims as those incident to the
sinking of the Lusitania. Count Won
Bernstortf was negotiating with Secre-
tary Lansing with view to settling
these claims, the German government
having indicated a willingness to pay