The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-06-04
j. s. MUST HELP
EUROPE, SAYS
BOOTH
ReParations Money AvaiIabIe
Nowhere But in America,
Banker Asserts.
BY w. s. COUSINS.
(Copyright. 1923. by Cosmopolitan
Navva SaFvical

suggested that does not TALL directly
into the lap of America for solu.
ton" This is the crux Of the
European situation as viewed today
bv Willis HI Booth, New York
banker and president Of the Inter
national Chamber Of Commerce.
Booth has just returned from an
extensive visit to the countries Of
Europe, during which he has come
In contact with leaders of finance
4 and business In foreign countries
as well as their administration
heads. He was favorahly impressed
with the general progress being
to pre-War conditions, but sees a
number OF obstacles in the pathway
Of complete abilitation, lad
nninistratiye obstacles, he FASTENED
TO explain. saEs'.
Look to u. S. for Money.
The settlement Of the European
tangle," said Booth, will have a
tremendous effect on America.
Many Of the questions connected
with German Preparations, the
amount. the security. the protection
Of frontiers, ara comparatively easy
TO answer; and are gradually coming
to an agreeable basis, but every
thing, Of course. hangs on the Inn
pOrtant question: Where In the
money for financing reparations
payments coming fromT European
statesmen and business leaders re-
ply: From America
- - Ia fO
- pass along the question to the
American people. If, In their judg-
Enent, the countries OF Europe can
provide suitable guaranty for q
roparation loan, both as to security
Of principal and political stability,
the loan will be considered-and that
r. the beginning and the end of the
problem. =
Effect Of Loan Hero.
An to the effect OF large repara-
S1on loan upon American industry,
Booth said:
"of course, every dollar Of Ameri-
On investment money that Is placed
into an international loan will by
rust that amount reduce the funds
otherwise available for investment
In American industry and business.
But we as a people have an excess Of
gold, and produce and secrete much
wealth each year. The question for
US to settle, therefore, is this: Look
ing at the matter from every stand
point, will 1t be wise and profitable
Tor us to divert our funds from home
enterprises to this great interna-
tional project2
There can be no question but that
the rehabilitation Of Europe would
aid the restoration of the American
foreign trade, but here In an inn
portant point: It il folly to con-
slider a reparation loan which does
not guarantee the peace of the world
for longer period than the matur-
ity of that loan. It will be impossi-
bic to sell an investor a thirty-year
European bond If there is the slight
est possibility Of another European
outbreak within twenty years, or
even twenty-five years.
Political Problems.
What greatly complicates the
European situation today is that
most. of the countries on the other
side have not only an economic
problem but q political problem as
well. With territories thrown into
new alignments, administrative
problems are extremely vexing and
cannot be solved overnight. Some
Of the nations have been attempting
to do bv law what only can be &C.
compAshed through slow and tedious
economic processes. Fixing ex--
change rates by law and grinding
out ppaer money by the bale is
hardly the proper remedy for the
economic maladies from which con-
tinental Europe is suffering today"
Booth heartily favors the methods
adopted for rehabilitation Of Austria.
THE Austrian loan," he said, ''is
the most important step that has
yet been taken for the economic
stability of the war-torn countries.
The loan will bear the Endorsement
of many OF the stable European
countries and in my opinion will
prove to be an excellent transac-
ton, both for tho country to be
benefited by It and the investors
who purchase a share Of 1t. It will
probably be followed by similar
loans to other Of the European
countries who are willing to follow
the same course as Austria; that is.
to place their affairs entirely in
the hands Of those who are striving
earnestly to aid them"
Buying Power Low.
Commenting on foreign trade
conditions at the present time, par
ticularly as revealed in the March
and April import and export state
ments Of the Department OF Com
merce. Booth pointed out that the
falling off in exports is a striking
evidence Of the reduced buying
power Of the European people
For the moment" said he, grain
and cotton shipments are low, but
the movement of these products
will, In all probability, be on a
larger scale later in the year. If
not, the worst that can happen to
us is to lose little of our gold
Of which we have too much any
way.
"A great part of our imports
have been in the form of materials
used in manufacturing. Because Of
foreign exchange conditions and
the subsequent high purchasing
power Of the American dollar, we
have been able to buy these mate
rails at a profit in the foreign mar
kets. When things look cheap to us
we will naturally buy them,
whether in home or foreign
: markets"
Mr.. Booth emphatically declared
that neither Europe nor America
could produce all Of the commodi-
ties necessary to their comfort
and pleasure and therefore they are
linked together in the necessity for