Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-06-14
HARDING EFFECTS
AGREEMENT WITH
BANKERS ON LOANS
BY DAVID LAWRENCE
(Leased Wire Service to The JournaI.)
Copyright, 1929

-
(Leased Wire Service to The Journall
Copyright, 1929
WASHINGTON, June 11.-Presi-
dent Harding feels that the admins
tration has passed the first mile
stone in the journeys Of understand
! ing and good feeling to be travelled
by the government and private bust
ness. The president announced that
the government here had received
satisfactory assurances from every
group of international bankers to
the effect that the latter would glad
! ly cooperate with the government
in the matter of financing enter
prises for foreign peoples.
| This is really a new departure for
our government in neace-time though
European governments have always
worked in close and intimate rela-
tionship with private industry and
business. From April, 1917, the
United States government did all
! the lending of money to foreign gov
ernments and peoples. Prior to that
time, when America was neutral, the
big banking institutions Of this
country lent large sums to Great
Britain and France and though the
German sympathizers did all in their
power to prevent the floating of
such loans calling them unneutral
acts, the United States government
nevertheless didn't interfere in the
slightest, giving neither encourage
iment nor support to the loans.
Now, however. the Harding admin
, istration has decided to become an
active participant in the situation
for entirely different reasons. The
political aspect of foreign loans has
disappeared and at present it is en-
tlrely question of world economics
| and particularly matter of domes-
tic protection against the uninter-
rupted flow of American. capital to
| foreign countries at attractive rates
of interest.
Mr.. Harding and the cabinet has
no legal power to interfere with the
floating of any loan in peace-times,
But the exercise of moral Influence
| by 1.-The government can be made an
important factor. If the administra-
ton were to issue public statement
| letting the American people know
that a certain loan was not to the
best interests of our domestic bust
ness situation; the banking houses
endeavoring to float such a loan
would run up against an Indifferent
lot of people and the loan would
| be doomed
To Bankers Interests
So it is just as much to the inter
| est OF the bankers as the govern
ment that there should be co-opera
ton. No loans, therefore, will bt
| floated to which the government dis
approves. 1t was made quite clear a
| the White House that this doesn'
mean the beginning Of a government,
guarantee of private loans. Nor doe.
1t mean that the government regard.
! every proposition offered by the in
| ternational bankers as a good invest
| ment. The public will have to judge
Tor itself the merits Of each loan
| But it does mean that every loan is.
| sued will have had in advance thu
| tacit approval of the government IL
the sense that the Harding admin
1stration will have been given the op
| portunlty to express an objection arc
thus kill the loan if it deems thu
| project against the interest of the
| people as a whole.
In this way the government will
| keep track of all loans or enterprise.
which may in any way take fund.
out of the United States. The Har
ding administration feels that for
eign governments borrowing none!
| here ought to agree that the sum!
received shall be used indirectly t.
pay off private obligations to Amer
| lea or to finance American expor
| trade.
In other words, as President Har
ding himself explained to friends thu
other day, no single measure Of re
lief is contemplated by the govern
ment in guiding the country back tt
| normally, but the whole situat ton
national and International, is being
| surveyed and no phase of it like in
ternational banking is being per
phase. Thus the government hope
| to bring about an era of understand
ing all around for the ultimate bet
| terment of business conditions. There
was considerable qualification at the
| White House over the assurance:
| given by the international banker:
that they would cooperate.
Another Conference
1t was indeed inevitable at thu
| start that they would. For the power
of the government to prevent foreign
! loans from being successfully floateC
| is a most practical reason for will
ing co-opera ton on the part of thu
| bankers with the government.
Meanwhile more conferences are t
be held with western bankers to ge
the viewpoint of other sections o:
| the country besides the east. The
| treasury and federal reserve boart
have representative out west nov
who are Investigating the financia
situation and making a list of bank
ers and business men who should b,
invited to the Washington meetings
The prospect is that during the sum
mer months, the Harding administra
ton will be taking a good deal O
| counsel and the only discouragins
factor In the whole situation is tn
fact that congress has not yet gotteI
down to brass tacks either on tn
tariff or taxation. 1t isn't that con
gress is 1oafing for the same con
| grossional speed is being maintained
as usual but the two subjects-tarif
and taxation-are much too big t.
be disposed Of "by July L." as 81
many optimistic Republicans prom
Used in campaign days. Nobody will
be grudge the time used. however
if the results are satisfactory.
$3.50 will bring you The Tri-week-
1v Journal and The Progressive
Farmer one full year, total of 2o6
|