The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1921-06-17
CREDIT MEN MEETING
National Association At
San Francisco
MUST INVEST ABROAD
Plea Made BY Los Angeles Bank
er and Authority lnterna-
tionaI Finances
ASSOCIATED Press Dispatchl

San FRANCISCO, GAL. June l0-AueI-
deans must make permanent invest
ments abroad to help foreign nations
pay their debts to the United States.
Henry M. Robinson, Los Angeles
banker and recognized as one OF the
for most authorities in international
finances, declared in an address here
today at the convention OF the Nat
ional Association OF Credit Men.
IF We invest our money abroad
and, with the Investments aid in
building up the productivity Of the
debtor nations, there will be no need
for foreign debt cancellations, MIR.
Robinson said. Investments should
be made in actual physical property,
or in the securities OF the other ma
tons, he added.
III we are the partners OF other ma
tons In their enterprises, through the
investment of our surplus gold abroad,
the suspicious Of international bit
terness will disappear, and in carrying
out this duty Of enlightened selfish
ness, We will create organizations and
establish a personnel that will act In
accordance with the attitude, practi-
ces, traditions and prejudices OF the
nations with which we deal" he con-
tinued.
Feeling On Part Debtor To Creditor
81 do not have to point out 20
credit men. there is a psychological
feeling on the part of debtor to
creditor which tends toward the de-
velopment of animosities and one of
the results Of the transfer to us OF the
power that lieT in the hand OF cred
itor nation has created an animosity
and a bitterness toward us on the
part of other nations which is in ex
cess Of our just deserts, even though
we admit that, because OF our rigid
ity and ineXperieEce we are somewhat
lacking in an ability to understand
the problems Of other nationals.
at is therefore most desirable that
we so conduct ourselves that we-may
greatly modify this feeling Of dislike
and animosity. This is particularly
necessary II we are to continue in
commercial 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 product
ion but from lack Of proper Internal
tional distribution of goods and the
disorganiZation Of exchange. He then
told how movements of war goods had
outstanding. creditor nation OF the
world.
Economic conditions have forced
us into economic entanglements, and
since political movements follow eco
nomic movements, our cherished
aloofness from foreign entanglements
Is gone" he said. This shift in the
position of nations has placed us in
a position which at first appeared ex-
traordinary advantageous, but we are
most inconsistent in our attitude to-
ward the problems with which our new
position has brough us face to face.
I'VE are acquiring additional gold
from our less fortunate neighbors, we
establish, protective tariffs and even
embargoes against an influx OF goods
from the nations in our debt; we are
endeavoring' to maintain an even in
crease our exports and carry them in
our own ships. Is it not obvious that
all these things cannot be successful
ly continued by one nation at one and
the same time?
ITO maintain reasonable prosperity
we are most anxious to give employ
ment to our people and to use all
our facilities for production. Neither
can be done unless we can dispose OF
our express prduct for the nations
with whom we trade can pay for what
they get only by what we take from
them and the amount we take must
at least be equal to what we sell, or
tu6 DuyluS pOWGT VI Cu0 uSUtOT udllOH
stops. Even a continuance of an
equal exchange of goods makes no
provision for the payment Of the loans
which we have already made.
Insofar as our imports are less
than our exports, scome method OF
establishing a balance must be set up,
for we cannot long continue the
present practice of making additional
current loans to pay for this deficit.
Current loaning is unwise,( both from
a national and international stand
point and we are discussing without
going forward very fast, the creation
of the Foreign Trade Financing Cor
poration through which long term
credits may be established. But
neither current loaning nor the pro-.
posed financing corporation will COM
pletely solve the problem and this
fact leads us to the inevitable con-
cIusicn that we must make permanent
Investments abroad"
Mr.. Robinson said that II Amer
leans invest abroad to help build up
productivity of foreign nations there
will be no need for readjustments
of foreign loans suggested recently
by Andre Tardieu, former premier OF
France. IT,.