The Washington times., 1922-10-09
Bankers and
Foreign Debts
THE forty-eighth annual con-
vention of the American
Bankers Association is ended.


leaders of American finance were
gathered in the worlds financial
center for earnest deliberation upon
the momentous economic issues, do
mestic and foreign, which confront
their native land.
No body of men should be as we'll
qualified as this to give wise coun-
sci in settling such problems. For
to the banker the business man
goes daily and hourly to confess
the deep and secret anxietles that
weigh upon his mind.
All the obstacles, all the real or
imaginary barriers that stand be-
tween us and a renewed prosperity,
are business obstacles, economic
obstacles.
Even the great issue of European
reconstructiOn-so far as 1t con-
Germs us-is in the last analysis the
familiar case of a debtor asking a
creditor to cancel part of his debts
or advance him new funds to put
him on his feet.
This theme of international debt
readjustment held the center of the
convention stage.
1t is a question toward which the
bankers, individually and collec-
lively, must inevitably take a def
mite stand.
The patriotic American banker,
in using his great influence, must
remember that he acts in the ca
pacity of trustee, as guardian or
other peoples money, the thrift OF
twenty million Liberty Bond sub
scribers whose savings the banker
has no right to give away or to
speculate with.
Foreign debts cancelled mean
debts transferred to the millions of
the common people who bought
Liberty Bonds and thus supplied
the money loaned abroad.
New funds sent to Europe will
come from the people, investing
their savings in foreign securities
which our bankers recommend.
The people expect these hard
headed, clear-eyed American busi-
ness men to adjudge this business
situation on business principles.
Regarding the loans we made
to the allies during the war:
Of course, there is no question of
full payment of Great Britain S
debt to us.
Reginald McKenna. Great Brit
aims highest financial authority
and recently chancellor of the ex-
chequer, came across the ocean to
tell us proudly that his country is
going to pay in full; so we will
kindly dismiss that subject from
consideration.
McKenna' S speech should end the
well-meant activities of certain
American bankers, whose excess Of
zeal in behalf of their English
clients is thus gently rebuked by
Great Britain s great chancellor of
the exchequer.
So the English $1,000, 900
nearly half the war debts owed to
us-will be repaid. 1t is only re-
garding the remainder that there
must be negotiation.
Perhaps some European debtors
can pay us all; some, perhaps,
should have more time or debt re-
ductions after they have put their
houses in order and have balanced
their budgets and ceased to main
tain vast armies.
Europe, until she orders her
house, is a subject for charity, not
investment.
Some day-and before long-an
international assembly of business
men, all politics laid aside, is going
to gather in America.
The nations asking financial fa-
vors from us are going to submit
their balance sheets and income ac-
counts, just like other credit seek
ers with whom the banker is fa-
miliar.
These nations are going to be
told in kindly words the conditions
under which we will postpone debt
payments or lend our resources.
Until this meeting and this
skoW-do,Un occurs, no banker has
the data upon Which to commit
himself as to Americas course.