The New York herald., 1922-10-06
Says Her Pride and Honor
Are Best Collateral to
Assure Payment.
BLOW FALLS ON FRANCE
Banker Expects Americans to
Have Great Opportunities in
Foreign Investments.


the topic of an address delivered at
the meeting of the trust company di-
vision of the American bankers con-
vention yesterday afternon by Alvin
w. Krech, president Of the Equitable
Trust Company of New York. Mr..
Krech said:
"The question uppermost in my
mind is. how long is impoverished
Europe going to continue to take our
goods, keeping in mind besides that
our impoverished foreign customers
will practically be forbidden the ap-
proach Of the American market by the
erection of our tariff wall.
There is nothing more fatal for any
country than to have on its hands an
unexportable surplus--whether that sur
plus consists of commodities or credits
some of.our friends to the contrary not
withstanding.
Surely, on purely practical and sell
fish grounds, we are vitally interested in
the restoration of European solvency
and in the maintenance of her capacity
to take from our abundance. It is our
plain duty to- accelerate the process of
her rehabilitation.
''The two great rocks which bar the
have been made the main theme OF
this convention.
Respecting reparations Mr. McKenna
In his very able and scholarly analysis
yesterday made two practical sugges-
tions: First, that the immediate repara-
tions demand be limited to what Ger
manys present foreign investments and
balances may produce. Second. that she
be given a breathing space for a few
years, and thereafter pay whatever her
exportable balance may produce.
France the Hardest Hit"
mo one can find fault with Mr.. Nc
Kenna's clear and logical conclusions
truth - facts - expediency - all these
point the way. But the inevitable de-
nouement falls with a heavy hand upon
France. France has spent up to now
90, 0o0 600 900 of francs on the rehabili-
tation of her devastated regions, and the
deficit of her general budget amounts ia
upward of 1000, 100000 francs.
Leaving aside what Germany has
already paid In kind and in cash, the
reparation obligation has taken the
following form:
"Total-1s2.OOO.O 100000 gold marks
divided as follows:
Twelve billions series A bonds with
per cent. interest and per cent. amor
tization.
"Thirty-eight billions series 3 bonds
with like rate of interest and amorti-
cation.
"Eighty-two billions series c bonds.
t'Brftfsh Pride Is Collateral"
1.-The funding negotiations with Great
Britain will take place, probably. in
November. However willing or able
Great Britain may be to meet her obliga-
ton, we may we'll find 1t inexpedient to
accept her payment in strict accordance
with the terms of the funding bill.
Speaking Of the British Indebtedness
to the United States. Mr.. McKenna tells
us that Great Britain is prepared 10
honor her Bond in full. Gentlemen
British pride and British honor have
always been the finest collateral In the
world. cloud applause.)
~Poor Time for This Question"
discussing this subject before the Ameri-
can Economic Society. and 1 have since
seen no reason to change my views.
said then: The moment is Ill chosen to
bring the question of the cancellation of
the debt In so uncompYomising a manner
before our people. Economically speak
ing, we are at present a vey much har-
assed people
Therefore, l propose that we should
take leaf out Of Secretary Hughes's
book and declare a holiday OF ten years
for our Continental Allies. during which
the debt would be considered as nom
existent. After the ten years have
elapsed the question Of the cancellation
should be taken up again.
"'After all. 1t will be granted that in
1881 things may look quite different from
what they are now. Our debtors are
hardy people, who have weathered NOR,
tran one storm. and ten years should
witness great changes for the better in
their affairs. But the point Is not so
much to wait ten years In the hope that
our Allies may be in a position to pay
easuy their debt; my proposition is no.
a veiled mora torium. / conceived II N
the hope that, ten years hence, condi-
tions both in this country and abroad
will have prepared better terrain for
the discussion of the problem
"Better Things Ahead"
In closing Mr. Krech said the future
holds for the American investor count
less attractive opportunities which. IS
time goes on. he cannot afford TO
neglect. 'if once Europe gets together
or safe, sane and practical lines.
THAT such n movement Is going on
on the Continent" he continued, "ls
without question. There are innumer
able instances where these silent forces
constructive. friendly, cooperative
are actively at work. A loan to Austriil
guara nteed by her former enemies: Ger
man treasury notes assumed by British
ard Dutch banks; n French group and a
German CUP coming together In m
effort to effectuate on n practical basis
the reparators In kind; the Soviet Gov
crf-r'c recogr izing the vested right
OF British corporation; Austrian banks
reestahlshi1g their branches In the sue
cession states, are facts which show that
Europe Is fast coming back to her
Sc ses.
From the cultural point OF view.
America refuses to turn her back on the
nations which have shared with her
their art and their learning. America $
soul, so full still of the poetry. the
songs. the legends OF the old countries.
can never give up her yearning for the
European shores America must keep.
will keep. faith with Europe, but Europe