The Washington times., 1922-06-24
ApSssssssa B BUSINESS AND FINANCE g5sEs
MONEY TRADE
That $4,000, 100000 Debt.
|will Europe Pay III
Ia Foolish Proposition.
Pay OFF, Banker Would
Say.
~ GEORGE w. HINAfAN.

CHICAGO. June 24.-A Chicago
banker says in an interview cabled
from Paris. that the American people
are getting accustomed 70 the idea
Of conceling Europe's s1o,0oo.00o.-
AZ this gentieman has an intarna-
tional reputation for financial saga
city and sober business sense, his
suggestion cannot be passed over
lightly. He 10 no propagandist. but
a hard-headed and patriotic Imam
cier, 30 his words are well worth
consideripg. Let us apply them.
The banker In question Ii the Gus.
todian OF nearly $2oo, 900. 900 In de-
posits--that Ii. $2o0.0o0,000 OF the
liquid wealth OF the people. In p
way. the United States Treasury as
part OF the Unked States Govern
rnent ID custodian OF some 100000.
100000 worth of Americas liquid
weaith--real estate not counted.
Now, from a business viewpoint,
how has the United States Treasury
acted as custodian3. In the matter
OF the 1000, 900 900 lent TO Europe.
the Government took the people o
money into the Treasury and hand
ed it over 70 the European nations.
II received In return the promises Of
these nations TO pay back the loans.
The promissory notes were given by
England. France. Italy and others In
due form. They now are In the
Treasury at Washington.
~ y Tho Prophition.
The proposition is that the Treas
ury destroy those notes, forgive the
debt they represent, and 80 present
as a gift 10 the debtor nations Of
Europe $4,000, 900 900 Of the Ameri.
can peoples money.
The gift would amount TO, about
one-tenth OF the American peoples
LIQUID capital--the capital they used
IN their daily business to move their
Industries and their owners to H.
nancing their enterprise and develop
ment, to occupy their workers and
build UP the nations welfare for the
future. Such a uss OF taxpayers'
money 10 not chronicled in financial
history. Anything like Il has never
before been imagined. But that u
not the point. 10 II businesslikef
the moral right OF the Government
the peoples money. to do thisf
-
must be answered.
Now, suppose that. ss.the powers
Of Europe went In their dire distress
to the United States Treasury, half
FR dozen large business corporations
had come to the Chicago banker.
Suppose that, by foreign competi-
tion. they had been driven until they
stood with their backs to the wall. !"
Suppose they had called for loans
to save them lest they perish--loans
amounting to4one-tenth Of the liquid
capital at the bankers disposal, to
one-tenth OF nearly $500. .000. 900 70
almost 320, 200 900 in all.
Suppose that these big business
corporations had got the $40 900. :
0e0. given their promise TO pay. und.
with the money. had triumphed over
their rivals and occupied their bust
ness field alone. And suppose that.
after their victory. they had come
TO the banker. pleaded their loss In
the conflict as their excuse for not
paying their loan, had declined to
consider payment In future. had
called for n cancellation Of the debt
~ their just due, and had even
tried to negotiate q fresh loan after
callously attempting to repudiate
the old one. r.
What would the banker do? WHAT
would he had done. as custodian Of
other peoples money? Would he
have cancelled the loan7 He would
not Would he have written off $780,.
000, 900 loss at the expense Of the
bank? He would not.