The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1921-02-28
HARDING PLANS
GERMAN CREDIT
OF ONE BILLION
Alien Property Secur.
tiles To Be Util-
lied.
By DAVID LAWRENCE.
(Special tn The Arpusl

Washington, Feb. 28.-President-
elect Harding has given his tenta-
tive approval to what may amount
to a billion dollar credit to Ger
many and thus enable the people
Of Central Europe to buy American
goods and products Of which they
are in serious need.
The plan as outlined to M.
Harding by New York bankers
contemplates the use Of the securi-
ties held in the United States by
the alien property custodian in
behalf of German citizens. This
is estimated to amount to at least
$400, ,000,0 900, because the remainder
of what the alien property custod-
ian has really belongs to citizens
of Austria, Poland and Czecho-
Slovakia, and under an amendment
to the Trading With the Enemy
act passed by congress the proper
ty of these citizens must be re-
turned to them when they claim it..
1t is possible. of course, with
four hundred million dollars placed
as assets in a single corporation
to raise other funds for credit pur-
poses either through Americans or
Germans interested in the financing
Of a huge export project Of this
kind but inquiry here discloses the
fact that if the proponents of the
idea had the notion that a billion
dollars of securities were available
for the German credit, such is not
the case.
Broadly speaking, the approval
by Mr.. Harding Of the plan does
not altogether assure its adoption
for an act of congress will be re.
quired before the alien property
custodian can release any of the
securities or property which il
now holds. All the cash belonging
to Germans is in the United States
treasury and by law cannot be in.
vested in anything else but Lib.
erty bonds. t
German Pact.
| The plan, moreover, would re
! ouire an agreement with the Ger
man government whereby th'
owners Of the property would per
NIT the Berlin government to US
the securities in the United State
as a basis of credit and would re
nounce all claims against the Amer
ican government in connection
with the new enterprise.
1t cannot be said that bankin,
opinion is altogether unanimous
as to the wisdom of the scheme fo
some authorities claim it would b
wiser to turn back the four hun
dred million dollars to the rea
owners and let the Germans d.
with it as the please, the theor.
being that the Germans will per
haps find the most effective wa.
to invest their own securities 81
that trade will be revived. Their
is also the suggestion that If tn
German owners get their asset
back they may be in a position u
borrow funds wherewith to pa,
American firms to whom they al
ready owe large sums of none
and stimulate trade that way be
fore engaging in new purchases.
While American merchants ar
eager for foreign markets, the
are obviously not anxious to SCI
to customers that have not or vii
not pay. The whole question a
to what shall be done with the Ger
man property in the United State
can be settled alone by congress
The office of the alien propert
custodian is simply a huge trus
company which has held the good
for disposition by congress. 1t
probable that the next secretar
Of state, Mr.. Hughes, will weav
the matter into the commercia
treaty between the United State
and Germany whereby it is intend
; ed to dispose of all questions be
tween the United States and Gel
many growing out Of the war will
out taking over any of the obligs
| 0f VnrCai1laQ