New-York tribune., 1921-05-27
Leading Financiers VIII
Confer ON Best Course
for Promoting an Early
Return TO Normally
u. S. Export Trade
First Consideration
Concern Expressed Over
Possibility of Use of
Loans Outside of u. s.

WASHINGTON, sMay 26.-A "meet-
ing of best financial minds" has been
lnaugurated by President Harding and
ms advisers as a means of considering
the nations industrial outlook, with
particular reference to the question Of
extending further loans of American
capital to foreign governments.
Some of the most prominent figures
IN American finance and industry al
ready have given the President the
benefit of their judgment on specific
problems affecting the financial world,
and in the near future others are to be
called to the White House to consult
on ways and means to stabilize condi-
tions and hasten "the return to nor
malcy."
The foundation for series of dis
cussions on these subjects was laid at
a White House dinner last night, the
significance and details of which be-
came known to-day for the first time.
With Secretary Mellon of the Treas
ury and Secretary Hoover of the Com
merce Department, the President had
as his guests for the occasion ]. P.
Morgan, Paul Warburg and half
dozen other men of great influence and
power III financial circles, including
James A. Alexander, of the National
Bank of Commerce, and Charles A.
Sabin, of the Guaranty Trust Company,
New York; Governor Benjamin Strong,
New York Federal Reserve Bank; c.
e. Mitchell, National City Bank, New
York; William Kent, of the Bankers
Trust Company, New York, and F. c..
McEldowney, Union Trust Company,
Pittsburgh.
That the financial situation in Eu-
rope must be relieved if American ex-
port trade is to flourish was agreed
upon by those at the dinner.
Bankers Pledge Aid
The resumption of home industries
and the expectation of our surblus
products also were questions gone over
in detail. The bankers present were
unanimous in their pledges of coopera-
tion and desire to do all in their
power to aid They feel that the vital
tasks confronting the country to-day
are the relief of the agricultural situa-
tion and the promotion of exports.
They argued strongly that the surest
way to further exports was to help the
financial situation in Europe.
Whether to encourage further loans
of private American capital to foreign
governments was one of the questions
mcst seriously considered, with most of
the tinanciers arguing that such cx-
tensions of credit presented the most
practicable means to place foreign
finances on a sound basis. This ques-
tion already has received much atten-
ton by the Cabinet.
Some of the visiting bankers. it was
said, expressed concern over the pos
sibility of funds raised in this country
by foreign bond issues being used to
buy the products of other foreign
countries. The belief was advanced
that use of American money in such
manner would result unfavorably to
domestic industry, especially farming.
Loaned Money Would Return
On the other hand, it was pointed out
IN some Administration quarters to-day
that purchase of Argentine wheat by
foreign buyers with money borrowed
in this country, for example, would as
slst that country's business and the
money would eventually find its way
back into the United States in trade
between the two nations.
Administration officials, however. dis
counted reports that American money
was to be used TO any extent in foreign
markets by foreign borrowers. Most of
the funds to be raised here, it was as
serted, would be used to retire or fund
existing government Indebtedness here