GERMANY: Capital Wanted

Alanson B. Houghton, U. S. Ambassador to the Republic of Germany, arrived in Washington to consult U. S. Secretary of State Charles E. Hughes on developments in Germany due to the adoption of the Experts' Plan.

Referring to development now possible in the Reich, Mr. Houghton said:

"America's immediate interest in Germany's acceptance of the Dawes arrangement lies in the fact that the $200 million loan, in which our capital is to participate so heavily, is probably the best-guaranteed loan in the history of international finance. That is the case because the entire resources of the German Nation are pledged as collateral. American capital has an even wider interest in the adoption of the Dawes report and in what is bound to be its beneficent aftermath. That interest is that there now will open up for American investment in Germany a practically unlimited field of opportunity.

"Germany is striving for the capital requisite for its development in almost every conceivable direction. It can be invested at extraordinarily attractive rates of interest, compared with the returns obtainable in the United States. In many respects, Germany today resembles one of our Western states in the days before Eastern and foreign capital came into them.

"It is altogether probable that British capital will be found ready to join American money in the pacific penetration of Germany. If it ensues, it is my private opinion that the cause of European peace—and that means world peace—will be effectively enhanced."

Asked if he thought Germany would act honestly in discharging her obligations under the Experts' Plan, the Ambassador retorted:

"I have the firmest conviction it will do so. Germany will keep the faith. It at length has a practical inducement to do so, for its responsible men hitherto have felt that Germany has been asked to fulfill impossible conditions. America's part in bringing them about, which is freely acknowledged throughout Germany, is not the least of its reasons for making a sincere and earnest effort to carry out the Dawes plan in letter and in spirit."