, 1921-06-18
PROFIT ABOVE PATRIOTISM.

Somebody ought to call a convention of the inter-
national bankers of the United States and point out
a few plan duties and obligations incumbent upon
them which they are disregarding. At the same time
impress upon them that exploitation of their own
country in the interest of some other country is not
regarded as Americanism of approved character. This
group OF fnanciers, commanding almost inconceiv-
able resources, were the most Jealous advocates OF
the League of nations and our membership therein
Their motives were not concerned with peace or hui
manitarianism. They were purely financial, with the
world as their field of operation. Their interest in
the welfare of European and Asiatic nations has been
SO pronounced as to excite inquiry as to whether or
not they had any interest at all in a country nearer
home, known as the United States of America, and
particularly needing the undivided interest of every
one enjoying the privileges of citizenship and the
protection Of its flag.
Recently these bankers have undertaken to float in
this country a large European bond issue and it is re-
ported that they are about to assist in floating a huge
loan for Japan These loans are apparently without
restriction as to the purpose for which the money
shall be used, and, therefore the nations borrowing
the same are at full liberty to r=e that money either
to assist their own commercial interests in rivalry
with the United States or to continue their program
of military preparedness, which of course, is also in
imical to the United States. There has been an in
sistent plea that the United States aid in the recon
struction of Europe. 1t is well that the United States
should do this, provided, it first guards its own COM
mercial and industrial interests. The United States
itself, faces a very critical ~situStion today. Many in
dustries have suspended operation; others have cur
tailed their production, and several million men are
out of employment. In some lines of production there
is reported to be now on hand in warehouses from one
to two years normal output, with no apparent imme-
date market for this immense surplus Holders Of
these goods will naturally not go on producing and
they are facing huge losses due to deterioration while
goods are in storage.
In i situation such as this, two things are vitality i'm
portant. First, to stimulate domestic buying; second,
TO find = foreign market for our surplus. A mo-
ment's reflection leads to the thought that the sec
ond remedy viii be the greatest aid to the first. Sales
Of surplus goods abroad will relieve the American
market and start a chain of employment which will
enable Americans to become greater buyers and con-
sumers of goods at prices which will afford a profit
to the producer. 1t is highly important, therefore,
that in all our foreign financial transactions there be
kept IL mil1 primarily the purpose of stimulating for
eiga markets for American products.
There IS every indication that American money has
been used by European nations TO develop CONNER
cial interests in South America. American money
has been loaned indirectly to South American coun-
tries and spent by them in Europe for the purchase
of equipraent which could have been procured in the
United States. Undoubtedly if American money shall
be loaned TO japan by the dotation of her bonds in
this country, a large portion of that money will be
used to pay the expense of the Japanese battleship
which is satagon:stic to the interests of the United
States. These are facts which must be well known to
our International bankers whose fortunes have been
chiefly founded upon the profits they have made in
American finance.
it is easy to understand that at a time when Amer
ioan industry is dat on its back and unable 70 pay o
high rate of intere1t for loans there is a great tempta-
ton for international bankers to loan their funds
abroad IN order 10 secure the commission Of from 5
TO 10 per cent on the sale OF securities. They ought
to be f~arsightcd enough to see, however, that their
superstructure, as well rs their foundation, depends
ity CT the American government to protect them bo.h
at home end sbtcad. II has often bcea sai6 that there
Il No patriotism IN She dollar. That theory gathers