Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-05-31
ASSISTANCE ABROAD
To Be PRED|CATED
ON RELIEF At HOME.
BY ROBERT r. SMALL
Ueased Wire Service to The Journal.
lCnnYriphf 1921 \


Q-eased Wire Service to The Journal.)
Copyright, 1929
| WASHINGTON, May 28.-In all of
the important financial negotiations
| which have marked the weekend in
Washington, President Harding has
shown a determinat ton that any as
sistance extended to foreign nations
shall be predicated upon the quickest
relief possible to the suffering agri-
cultural interests of the United
States.
The wheat growers of the great
northwestern granaries, the cotton
planters of the south, the corn plains
states and tillers, of the soil in gen
eral are foremost in the presidents
| mind at the moment, and he believes
that Americas vast money resources
properly placed can bring prosperity
| once more to the rural districts.
Mr.. Harding is convinced, with
many other economists, that general
prosperity in the United States comes
| first of all from the soil. When the
farmer is in straitcned circumstances
business lags the country over. The
president has himself declared there
is no short cut to prosperity. A
profitable outlet must be found for
Americas great food and cotton
crops. The domestic demand will not
suffice.
The average American farmer, not
much of an internationalist a few
years ago, has learned what Presi-
dent Harding has been stating this
week that America cannot live in
majestic isolation, but is an integral
part of an interdependent system of
nations. Is
President Harding believes that
business "deflation" has been car
rfed to the point where there can
| check reins which have functioned
through the medium of the federal
reserve banks. He believes there
can be a modification of the restric-
lions which a year or so ago were
put on to curb the speculative ten
dency which kept prices at a high
level and to force a liquidation of
stocks held for exhorbitant profits.
Approve Proposal
He believes. first of all, that the
government is justified in APPROX
ing a proposal of the so-called in
corporations and agencies formed to
foster the export trade of the United
States through the extension of long
term credits to the European coun-
tries in sore need of foodstuffs and
raw materials. These foreign export
concerns, organized under the Edge
act, have not been successful thus
far through want of sufficient CAPT
tai. The conferences in Washington
the last fe wdays with the most pow
erful banking interests of the coun-
try have had help for these concerns
in mind.
In consulting with the financiers,
President Harding has had to face
number of problems which have had
their difficult sides, politically as we'll
as economincally. The big. bankers,
II. sabin, of the Guaranty Trust
company, and c. E. Mitchell, of the
National City bank, of New York,
have not hesitated to ask the presl-
dent if it would be possible for the
| tegrity of certain nations DESTROYS of
obtaining American loans.
The president just as frankly told
| the bankers he felt that such a guar
antee was impossible. There is no
had a suggestion of Article X about
| it--that ghost of the repudiated
League of Nations which seems so
difficult to down.
1t was agreed at the White House
conferences that the United States
| is the only nation in the world cap
| able of putting the world on its feet;
| capable of making the necessary
| monetary arrangements to bring in
ternational exchange once more to a
| nearly normal basis. Gold continues
| to pour into the United States, and
| other nations have no means to buy
| it back, or to buy credits against it.
Frozen credits in the United
States are giving way to frozen
! cash" which should be employed in
| trade in motion.
Can Make Loans
The big bankers, with the help of
| modified rules, or modification OF
| the law which requires federal re-
| serve banks to charge double interest
after their specified reserves are
called upon, say they will have the
necessary resources to float immense
loans for foreign governments, but
| they would like for the United
| States government to guarantee that
| the present order in Europe will be
| maintained. This assurance the pres
! ident could not give them, 1t is said,
but it may be in the end the bank
ers will be satisfied with the pres
| ence of an American representative
| taking part" in the deliberations of
| the allied supreme council, as Am
|
supreme council has powers far
greater than the council Of the
League of Nations, of which the
present administration will have no
part. The supreme council at pres
ent is engaged in absolutely regulat-
| ing the affairs of Europe, and so far
as an agency can do so, is guaran-
teeing the stability of the govern
ments.
President Harding is DESTROYS that
any help extended to foreign nations
shall have for it's first purpose the
moving of Americas surplus food
crops and the rehabilitation of our
all but suspended export trade. To
| this end the bankers are working.
The problems in the way of making
the necessary arrangements are very
| complex. Even Germany is looking to
the United States TOR financial plan.
1t was learned that in one foreign
loan recently negotiated In this
country a good part of the money
was spent in Argentina for wheat.
| 1t was explained that this money
afterward came back to the United
States to pay for manufactured goods
bought by South America. Mr.. Har-
ding wants the benefit of Americas
loans to be more direct to the farm
er in the future.