The Washington herald., 1921-06-21
LAMONT BELIEVES
GERMAN DECISION
WILL AID AMERICA
Financier Sees Business
Squirt Result of Rep
aration Agreement.
WOULD AID EUROPE
Marks Pivotal Point in Eu-
ropes Economic Status,
He Declares.

The probable effects on American
business Of the German reparaton
payments are outlined In the cur
rent number Of the Nations Busi-
nesz hx Thomas W. Lamont, OF J.
p, Morgan and Company. who was
financial and economic advisor to
the American peace delegation at
Paris.
'-Germany's acceptance Of the
reparations terms marked a pivotai
point in the economic status of Eu-
rope, and 1t is my belief that I'M
proyement will before long become
manifest in the worlds economic
condition" says Mr.. Lamont.
For America there can be only
ona result of Germany's acceptance.
II will mean in the long run stimu-
lus to manufacture, better markets
for our farm products and SOUND
and increasing prosperity in ootn
foreign and domestic trade.
Mr.. Lamont has just returned
from Paris, where his counsel was
sought frequently in the plans for
the settlement of the question OF
reparations.
Can't Tell Specifically.
None but a soothsayer, says MT
Lamont. in the interview ir the Ma
tion's Business, can tell speclncally
and in detail what the effect of-the
payments will be here. But II Is
perfectly obvious" he adds, that
in order to meet her reparatlon
payments, Germany must speed up
her manufactures and keep down
her cost of production Now on
all those articles of manufacture In
which Germany Is a specialist. and
In which we Americans are not ex-
perts. such increased efficiency on
Germanv's part will be Of value. not
only to her. but also to us. because
those particular articles which we
import from Germany We shall be
able to secure at lower prices
"On certain other articles of
manufacture Germany's competition
will undoubtedly prove severe.
They will beat US out in certain
directions just as Americas manu-
facturers beat out the world In
many other directions But what Is
there to Iepine over in that fact:
Certainly we do not want the whole
of the worlds trade. Live and let
live is the only decent motto to
follow.
In this country there has been
altogether too much of a disposi-
tion to believe that our goal must
be to sell everything and to buy
nothing. 1t is a very stale thing
to say, but certainly il we are to
be a world force we must learn the
lesson that we must be buyers as
well as sellers, Upon a grand scale.
IL the present unwieldy trade bal
ance in our favor were to continue
indefinitely we should be- very badly
off. In line with this idea we must
remember that we don't get very
far il. in all the foreign loans that
we make. we specify that the bor-
rover shall spend in this country
the very particular dollars that he
borrowed. To tie down the bor-
rover in that way will be. not to
help, but to injure ourselves. 1t
must be obvious after a little
thought that with the worlds bal
ance of trade so heavily in our
favor today all the dollars that We
lend abroad will, whether We
specify is or not, come to be spent
In this country Therefore. to
specify that any particular Euro
pean borrower shall spend the pro-
ceeds Of his borrowing in this coun-
try in purchasing some commodity
that he can buy more cheaply else
where Is short-sighted and foolish.
On the contrary. if we let that bor-
rover buy in the markets of the
world where he can buy cheapest
the people from whom he buys are
certain to Surn around and expend
the proceeds OF his purchases in
America. spending those proceeds in
order to pay for commodities which
America, in turn. can furnish more
cheaply than any other country.
Europe on Mend.
Europe L. distinctly on the mend.
A partner of mine, Dwight Nor
row. who was recently in France,
has just completed study
of industrial and trade conditions
there. and he found that marked
progress had been made in the last
twelve months. The reparations
settlement ought to tend still fur
ther to improve conditions, not only
in France but on the continent gen.
orally. The decision of the BRAND
cabinet to accept the plan laid out
at London was attacked bitterly by
certain elements in French public
life who, l think, failed to realize
that one great value of Brands
prudent course at London was to
command the instant and warm
support of the British and Ameri-
can publics.
Two great CLOUDS had for months
been hanging over the people of
Europe. One of them was dispeIled
by the united States governments
that il intends to
take part in the allied councils di-
rected towards the restoration of
peace
The other cloud wag dispelIed
when Germany accepted the ulti-
matum on reparations. A sane
Germany could not do otherwise.
For months-ever since the treaty
of Versailles was signed-Germany
had been saying that she could not
pay because she had not wherewith
to pay. She had complained bitterly
that the allied powers made no
thorough attempt to ascertain he'
capacity to pay. or rather her in j..
ca opacity. Under the London plar,
sure means are provided
for Informing the allies week tyi
week Of Germany's capacity. II it
falls below present estimates the |
allies will be the first. to their sor-
row. to learn the fact. Upon them |
will rest-the responsibility of de-
teFmining the situation. They may
be obliged to report to their govern
ments that Germany is an orange |
squeezed dry. I do not believe il,
but they may.