Evening star., 1927-11-13
EUROPE. SUSPECTS.
:. AIMS Of AMERICA
Distrust Aroused, in Negotia.
tons Over Payment
OF Debts:
ny GERvILLE REACHE,,


PARIS. November l2.--French pub.
lie opinion largely p. approved :, the
memorand Of S. Packer Gilbert,
agent general of reparations. criti.
cizing Germany for oyerborrowtng.
but one section Of opinion. fearing an
Ameriman hegemony of Europe, ex.
claimed after reflection: -
That's what we may expect one
day: In a few years 1t will be our
turn, when. France has become an
American colony like Germany and
Italy"
This danger, however. is not very
alarming. France, on the contrary,
in the last year has continually
shown her independence, first regard.
ing war debts and customs tariffs, and
also In the recent Morgan 8 per cent
loan conversion operation. Both were
carried out with the greatest courtesy
on both sides. 'f''F =
Question Of Loans.
But It should be known in the
United States that the majority: Of the
French people would much prefer a
kind OF Americanizsti ton OF Europe to
q return to such terrible wars as the
last one. - - J..
The idea Of a federalized Europe
like the United States, the creation OF
one single European market snd a
central issue bank with, = European.
gold currency. Cften has been re.
garded as chimerical. Yet every day
there Is progress in 4his direction.
And America. especially. has the
power of haStening this work. -.
Mr.. Gilbert's controversy with Ger
many and the American bankers con.
vention at Houston opened the whole
worlds eyes on the question OF Ameri.
can loans to Europe.
The situation regarding the Euro.
kean debt to America is about as fol. 1
Vows:
There are 13 war debtors, not in.
cluding Germany and Russia. These 13
have undertaken together to pay ST..
500. .O0a. coo. including taccrued inter i
est. or IL preferable, So annuities
amounting to more than $4,000. 900.
900. ~ - i. Il, ;. ..,s,s yzst, :.
Commercial debts, ;. representing
American Investments in Europe since
the war and up to August. 1877
amount to $s.157 .000. 900. according to
figures compiled by the Department
OF Commerce and the Federal Reserve
bulletin. This money is tnvested---aTd |
this is extremely curtous--almost sole,
ly in bonds. The proportion of bonds
TO stock shares 10 10 to I; and in the
latter. are included many shares Of
preferred stock with limited profit.
How Debts Are Paid. -.
Obviously Europe 10 paying the In.
terests, on her debts with money
loaned by America. tEsn
which are increasing--5pstify spe-
cial organization for recovering debts,
and an American organ Of centraliza:
ton In Europe? - (
Regarding new loans, not only to
Germany. but to ell OF Europe. would
It not be to the American bankers In.
terest, instead Of competing with each
other, to form a single syndicate OK
issue, established on our continent, to
study the real productive purpose OF
portance. and which would give pref.
erence to large International projects
OF European reconstruction and re'.
organization. as for instance the
Dawes plan?
Could. not thu same central organ.
permitting the Federal Treasury to-
aupertntend and facilitate the pay
yBent OF war debts, be the embryo OF
i. future European issue center7
u N3tuFabyp bNW ulEeCtOG% OL 9NEsac MA
establishment would need considerable
f4ct and a thorough knowledge Of
Europe. They ought not to aim at
any kind of hegernony, even Ananciai.
or want to prevent each nation ..from
settling its own need for credit, but
an this condition, would 1t not be
POSSIBLE to succeed In making tbs dit.
ferent national interests OF Europe
one common interest?
:. This week at Geneva some progress
was made toward free trade. Eight.
Aen nations signed q convention form.
tng the first general agreement fix.
states. Unfortunately the United
6tates-doubtless frightened by the
e<bitrage clauses--was not among the
drst signatories. But she has until
next February /, and no longer, to
change her mind. In any case. the
Efforts tend to reduce to the lowest
POSSIBLE figure the number Of reserva.
fions made in customs prohibitions.
.Lainonts Wow. -
These ideas, while scanty at pres
4sit, are not new. Melvin A. Taylor;
retiring president OF the American
Bankers Association, considered them
recently at Houston, and even before
LIST May-they were expounded by
Thomas w. Lamont at the Interna-
tlonal Chamber Of Commerce in the
following form:
lit is not inconceivable that Europe
may some day become a great region
~ free trade, as the United States is
within its own borders. Such a de-
veiopment may take long time IN
coming. On the other hand. IL may
move much more swiftly than we
tHtagine. II 1t does, we shall be able
within a short span OF years 10 wit.
meas q Europe restored, industrious.
stable, peaceful, stronger in every
~cay than ever before. 1t would be
well for the American business man
to: look forward and prepare himself
tA do business with a Et1ronA of fhis