Imperial Valley press. (El Centro, Calif.) 1907-current, 1921-06-15
INVEST
NOT LOAN
MONEY IN
EUROPE:
Financial Authority Tells
Credit Men What Country
Must Do to Restore Nor
NAL Economic Conditions.

SAN FRANCISCO, June l5.-Amer
leans must make permanent invest
ments abroad to help foreign nations
pay their debts to the United States,
Henry NJ. Robinson. Los Angeles
banker and recognized as one of the
foremost authorities in international
finances, declared in an address here
today at the convention of the Nation
al Association of Credit Men.
"lf we invest our money abroad and
with the investments, aid i'll building
up the productivity of the debtor IA
tons, there will be no need for foreign
debt cancellation" Mr. Robinson said.
investments should be made in actual
physical property or in the securities
Of the otier nations, he added
''If we arc the partners Of other na-
lions ~ ;neir enterprises, through TIE
tmti Of our surplus gold abroad,
the suspic ons of international bitter
ness Will disappear, and in carry ing
out this duty of enlightened sclishrtHs
we will create organizations and es-
tablish a personnel that will act in
accordance with the attitude, practic-
es, traditions and prejudces of the
nations with which we DEAL he con
tinued.
Il do not have to point out to credit
men there is psychological feeling on
the part Of a debtor to Z creditor which
|tends toward the development of ami
mosities and one of the results of The
transfer to US of the power thai lies
in the hand of a creditor nation has
created an animositv and bitter
ness toward us on the part of Other
nations which is in excess Of our iust
deserts, even though " admit that,
because of our rigidity and inoXDor-
fence we are somewhat LAYING in an
ability to understand the problems of
other nationals.
1T is therefore most desirable that
we so conduct ourselves that we may
greatly modify this feeling of dislike
and animosity. This is particularly
necessary if we are to CONTINUE in COM
mercial relations with the rest of the
world"
Mr.. Robinson pointed out that the
difficulties faced by the nations re-
suit not from the want Of production
but from lack of PROP international
distribution of goods and the d!Sor-
ganization of exchange. He then told
how movements of war goods had
made America, for the first time, tho
outstanding creditor nation of the
world.
Economic conditions have Iorccd
us into economic cntanglemcnts, and
since political movements follow eco
monte movements, our cherished aio3:-
ness from foreign eAtanglement5 IS
gone" he said. "This shift in the pc
sition of nations has placed US in a
position which at first appeared OK
traordinarily advantageous, but we
are most inconsistent in our attitude
toward the problems with which our
new position has brought US face to
face.
eve are acquiring additional gold
from our less fortunC>< neighbors, we
are establishing, or endeavoring to
establish, protective tariffs and ever
embargoes against an influx of goods
from the nations in our debt; we arc
endeavoring to maintain and even M
crease our exports and carry them II
our own ships. Is it not obvious thai
all these things cannot successfully b
continued by one nation at once anc
the same time?
ITO maintain reasonable property
we are most anxious to give employ
ment to our people and to use all oal
facilities for production. Neither car
be done unless we can dispose of oul
excess productions for the nation witt
whom we trade can pay for what the!
egt only by what we take from then
and the amount we take must at icas
be equal to what we sell, or the Guy
ing power of the debtor nation stops
Even a continuance of an equal eX
change of goods makes no provisio'
for the payment of the loans which
we have already made"