Evening star., 1927-10-22
US. PEACE POWER
SEEN|N FINANCE
Of MANY NATIONS
Loan to Poland InSureS 1t
Against Trouble With
Soviet and Germany.
AMERICAN CONTROL
OF CREDIT is GUIDE
Influence on Russia Cited in Ber-
Inns Seeking Aid in Big
Steel Project.
nv PAIL SCOTT MOWRER.

~ News. Copyright, 1877.
PARIS, October 22.-Various events
in the lest few days illustrate no"
tha United States is using It's vast
financial uower in the interest OF
reace and stability and international
solidarity throughout Europe.
American influence over European
countries does not take the form or Of
fcial diplomatic intervention out 1t
ia nevertheless unmistakable. Inc
h,asis of the system is the ability anu
willinpness of the American people 10
buy foreign bonds.
Tbe limited States is today the
worlds greatest reservoir OF credlt,
and no considerable international
financing can be done without Amerl-
can aid. By opening and shutting the
sl11ices of this reservoir with reSpect
to any particular country, the Unileo
States can affect not only that coun-
try's immediate prosperity but ITS po'
litical destinies as well. The American
State Department and the big Amer
lean banks work together in eXcnang-
ing information and viewpoints. Inc
Government maintains the rlgnt 70
veto foreign loans in the interests OF
protection of American investors.
Heads of Banks Confer.
The heads of the British, French,
German and American national banks
meet periodically to discuss questions
of common interest. In these con-
ferences the United States has the
most influence, because it has the
most money, and Great Britain is next
in influence and money. Usually wnat
the British and American bankers TO-
gether agree upon is ultimately uone.
Thus. the international stabiilzatlon
loan TO Poland, issued in New YORK
and London and ohter centers a rev
davs ago. was a political event ei
great Importance. Poland's moral ana
financial credit long has been at low
ehh Many people we're even founu
saving that the new state was
anomalous and could not continue 70
exist. Germany talked OF revising ner
eastern frontiers at Poland 2 expense.
Tithuania maintained and still main.
tairs . Estate of war" against Poland,
and Poland's great neighbor, SOVIET
Russia. was openly hostile. However,
following the Locarno pact and espe-
ciaIlv Great Britain's break with Rus.
s,a fhe general attitude toward Poland
became more confident. The present
loan is the result. 1t is a symDol 0.
the confidence that Great Britain ana
the United States and other govern
r,ents feel in Poland's 8. future.
II will be difficult, henceforth, for
the Germans, the Russians and the
Iithuanians to think about over'run-
ming Poland. The moral and hnanclal
supDort of the United States ana
Great Britain are now squarely De-
hind Poland and will doubtless con-
tinue there 80 long as Poland shows
herself worthy of it by wise and moo
crate policies. Accurate lnrornatioh
as to this point seems assured py Ihe
sppointment of Charles Dewey OF chi
capo as financial advisor" to the
pai;sb government. After President
pilsudski. Mr.. Dewey will doubtless
ha for the time being. the most pow
erful man in Poland, just as anotner
american, s. Parker Gilbert, head OF
the Dawes commission, is one or the
most powerful men in Germany.
Direct Interest In Plan.
TbA United States has a direct IN
+arast in the Dawes plan for the re-
coverv of costs in the Rhlneland occu'
nation and for war damages from Ger s.
many, but even greater is the niui,
rect interest in satisfactory seheia :,i a.,
TQnaT9f1OnS ScIIlChAOhS
eliminate international disturbances
Tbe adoption of the Dawes plan en-
ahled Germany to recover her pros
noritv bv drawing enormously on
American credit. But whenever Ger
many tends to abuse this privilege
restraints begin to come into piay'
Tbe new Prussian state loan Oh
$40 900 900 was vetoed by the AMER
can State Department until a cause
was inserted assuring the prlorlty Ol
Dawes plan payments. ana M: H
bert has just precipltated soIneInA1s ne.
like a political crisis in Germany py
ca1Iinp attention to the ddnger that
the governments projected expenol.
fures for salary increases and new
schools might, by unbalanclng the
budget, endanger the Dawes Pay'
ments.
While neither directly represents
the American Government, the pres,
ence of Mr.. Gilbert in Berlin ana OF
Mr.. Dewey in Warsaw is a remark,
able attestation OF the strength OF
american influence in Europe today
II. &. Also Influences Russia.
Our financial powers are also in
nuencing Russias future. The
Soviets are in dire need Of money
Their currency, while nomlnaily
stable, is threatened by new imitation
The number of banknotes in circula'
ton in Russia increased In the last
wear and a half from twelve hundred
million to nearly sixteen hundred mil
lion rubles. The banks show credit
imitation and of a total OF 5000. 0Oe
workers there are more than million
unemployed in Russia
Germany is Russia's ally. Germany
last year advanced the Soviets credits
of SIS, 900 900 partly, 1t is TO be feared
with the proceeds OF American loanI
10 Germany. Since the British breal
with the Soviets and the recall OF tn
Soviet Ambassador from Paris, th'
Russians have been particularly cage
10 get more money from the only pos
sibIe source, namely Germany. Blu
the Germans are reluctant unless tn
American banks will also aid. There i
now a project for a new $4,000, 90
credit to the Soviets, OF which Ger
many will take three-fourths and tn
United states one-fourth. The inter
ested American bankers are Dillon
Pead. The proceeds would be used t
buiId steel mills in South Russia, tn
materials being all purchased in Ger
many. 1t is probable the State Depart
ment will veto this loan so far as w
ore concerned because it is out OF lin
With our Russian policy.