The Washington times., 1922-08-03

leading part in the reconstruct
According to the Bankers Mag
azine, of New York. which has
asked the question as to the sd-
visibility of loaning American cap
ttal in Europe, bankers generally
approve the plan whereby our
money Is put into Europe at fair
return, but conservative policy
is advocated.
Benjamin M. Anderson, jr., econ.
omist for the Chase National Bank,
says:
THE world cannot afford to
waste capital and the United States
cannot afford to send their capital
abroad recklessly or imprudently.
None the less, 1t is important that
we should make such investments
OF capital in Europe as will really
do Europe good. Any large scale
policy Of loans to Europe in the
future should be made part OF .
comprehensive plan, which will in
volve drastic reforms in currency
and public finance on the conti-
nent Of Europe as we'll as a ra-
uonal settlement of the German
reparations question and the re-
.
among the states of Europe. II
American investors and bankers, in
providing new funds for Europe.
can be instrumental in aiding Eu-
rope to accomplish these reforms,
and IL further they can retain CON-
troll over the new funds lent in
such a way as to make sure that
they are really used for necessary
purposes, then. new money lent by
the United States to Europe will
be productive Of enormous good"
Henry NJ. Robinson, president of
the First National Bank, Los Angeles,
Cal, says:
Reasonable investments Of Ameri-
can funds in foreign countries, re-
strtcted to private loans made by
Americans to private concerns in
foreign countries, would appear to be
the logical and desirable course for the
United States to follow at the present
moment. It does not seem wise tn
extend any immediate further credits
to European governments. The great
need is the balancing Of budgets SO
that governmental expenditures are
held within governmental income.
The extension of further credits to
European governments will simply
mental expenditures and receipts. Il
In obvious that properly safeguarded
Investments in foreign countries are
desirable II the United States has
sufficient supplies of credit to make
such investments and at the same
time take care of all legitimate de-
mands for investment funds arising
In the United States"
George s. Mumford, president Of
the Commonwealth Trust Company.
of Boston, says:
There is no question that grant
ing OF commercial credits and ex-
ploitation Of foreign business fields
by our merchants and capitalists Is
what really absorbs the chief bulk of
our capital that goes abroad, and
this certainly can be dangerously
overdone. It does withdraw good
money from home uses, but II may
within reasonable limits be used
safely and profitably in foreign
fields, profitably both as an invest.
ment and as creating new uses and
demands for American products; but
this may well be carried SO far as to
defeat its own ends and weaken the
capital resources at home. Right
here is the real point Of delicate ad.
tustment."
Francis H. Sisson, vice president
of the Guaranty Trust Company,
says:
The point which needs emphasis
is that Americans with capital to en.
ploy should be encouraged to study
carefully the fields which are open
70 them and to invest with discrimi.
mating foresight. In this matter,
their best interests and those Of the
country as whole are In harmony"
e. d. Hubert, president Mer-
chants Loan and Trust Company,
Chicago, says:
81 am very strongly Of the opinion
that we should continue to make
loans in Europe and not endeavor
TO conserve our capital for home de-
mand. I believe the future pros.
perity Of this country depends large.
ly on the prosperity of Europe. We
are now world bankers whether we
want to be or not. and we must meet
our responsibilities as usch."
r. o. Wetmore, president First Ma.
donal Bank, Chicago, says:
ut would seem to me that for our
own sake we must lend amounts to
Europe sufficient to put 1t in work.
Ing condition again. The problem
appears to me to be much the same
as In the case Of a temporarily in.
solvent business concern, to which
creditors lend money to enable II to
reorganize and start afresh. This js
often good business, not merely for
the debtor but also for the creditor.