Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-15
u. S. IS EXPECTED
TOLEAD RECOVERY
Lending of Money Abroad by
American Investors Would
Aid Revival.
BY JOHN L. COOLEY.

Associated Press Financial Writer.
NEW YORK, April 15.--Most of the
international bankers willing to VEN
ture public expression of opinion on
the slippery question of recovery from
the world depression emphasize that
leadership should come from the Unit
ed States.
Because Of our enormous stock of
monetary gold, which has reached the
record total of more than 81 TOO 900. =
600, it is pointed out that poorer ma
lions viii look 10 us to supply their
credit needs. In other words, American
| investors must again be willing to lend
money abroad. Revival of our foreign
trade depends on the ability of other
countries to take our goods and the
money to pay for such purchases will
come in part from America--specifical-
~, the American bond market.
Gold Receipts Heavy.
The United States has been receiving
gold In almost a steady stream for con-
siderably more than a year, and over
a period OF many months shipments
OF the metal from this country has
been virtually non-existent A similar
situation has existed in France, which
has likewise built up an enormous reser-
voir Oh the precious mineral on which
the worlds credit system is based. Very
recently, however, there have been def
mite indications that the golden influx
at Paris had stopped: the last state
ment OF the Bank of France showed
that 100000 francs had been ex-
ported, the first outflow in nearly a
year.
America and France. by virtue Of
their control over so large a proportion
OF the worlds available gold supply.
become the logical capital markets. and
economists believe they must share the
task OF helping financially weaker ma
Tons get back on their economic feet.
50 Tar neither Paris nor New York has
done much foreign financing since well
before the break in the American bull
market. Aside from the Young plan
loan 70 Germany early last Summer
and few short-term credits the in
ternatlonal loan market has been In a
stupor.
Bankers. Of course. are anxiouslv
awaiting symptoms of a revival. but to
some 1t seems that the turn NAV still
be some distance ahead Foreign dol
lar bonds listed here have recovered ap-
preciably from the severe setbacks suf-
Tered In the Summer and Autumn of
1880, when confidence was shaken by
such events as the Hitler victory in
Germany and political disturbances in
Latin America. Nevertheless. the atti
tude of our investors toward foreign
obligations is believed to be still too
lukewarm to guarantee the success of
loans to countries that most need help.
German Financing.
Germany's needs have been met AL
most entirely by short-term financing.
which has reached a total of a billion
and half dollars. 1t would be to her
advantage to consolidate this debt into
long-term borrowing. and it may well
De that German bonds will be among
the first offered when this market Is
deemed ready to resume the lending
which it did so extensively just after
the war.
The Franco-Italian reconciliation
nailed as most constructive deyelop-
ment, may mean, bankers saw. that
Italy will go to Paris for her accommo-
dations. In recent months there have
been persistent reports that Italy was
to seek an international loan. partly ia
New York. but it is now regarded AZ
probable that If such a loan is made.
perhaps later In the year. it will be
floated in Europe, chiefly through
French Bankers.