The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-07-09
RUFUS DAWES
FAV0RSL0ANS
TO OLD WORLD
Tells Bankers United States
Should Distribute Credits
10 Other Nations

Duluth, Mimi, July 9.-fP-Rufus
G.. Dawes told the Minnesota Bankers
association in convention here today
that it is the duty of the United
States "to accept the obligation of its
wealth, to distribute throughout the
world the surplus credits at it's dis.
posal, and to do it with dscriminat.
ing Judgment in order that the in
vesting public may not suffer"
I Mr.. Dawes, who was chief Of staff
of the American section Of the Rep.
aration Commissions Experts com.
mittce that drew up what is known
as the "Dawes Plan" suggested this
program also in order that funds SO
released may be devoted to such pur.
poses as would restore the productive
capacity of the world and the pur-
chasing power of consumers.
Serving Own interests
"1n performing this duty we shall
be serving our own interests as we'll
as serving the world" Mr.. Dawes de-
clared. He is brother of Vice
President Dawes. "The part we are
to play in the reconstruction of the
business of the world is the part of
the greater creditor nation, the dis
burser of the credit for the rest of
the world. Other nations have held
this position before US, and without
exception they have met the obliga-
tion of their position by the wise and
free distribution of the credit at
their DISPOSAL. We have profited by
their action"
Mr.. Dawes said that eve might ad-
vance annually 625 million dollars,
which is about what might. under
the most favorable circumstances, be
paid to US under the full settlement
of international Indebtedness.
I'VE might invest this sum in for
eign securities every year for 20
years before we shall attain the posi-
tion held by England before the
war;" he stated. "The department of
commerce estimates that at present,
private investors in the United States
own about four billion dollars of for
eign government bonds and five bill
lion of other foreign bonds, stocks
and real property, and the govern
ment itself owns about IL billion Of
inter-governmental obligations. On
the other hand, the holdings Of for
eign investors in America are esti-
mated at four billion dollars.
Investments Grow
"This indicates the rapid extin-
guishment of our foreign debt and
the growth of our investments abroad.
The movement is large one and of
the greatest advantage to all con-
cerned. But the balances held by US
now are less than those possessed by
England before the war, which were
estimated at 20 billion of pre-war
dollars, the equivalent possibly, all
things considered, of 30 billion dol
lars today. Who will say that was
precarious position? This danger
of the invasion of our markets may
be exaggerated, but due precautions
ought to be taken against all threat
ened dangers"
A consistent American tariff pol
icy must be adopted and in addition
there should be some concerted pol
icy of American manufacturers look
ing to the reduction of costs of pro-
duction and the opening of foreign
markets, and especially of American
bankers in handling the huge volume
of credits that has come under our
control, Mr.. Dawes said.
"lf payment Of debt necessitates
the shipment of goods from the debt
or nation. then it follows that the
loaning of money by the creditor
nation requires the shipment Of goods
from the creditor to the debtor ma
tions, and sets up at the moment Of
greatest strain, commencement
Continued on page three)