The Bridgeport times and evening farmer., 1919-11-08
SEES THE WORLD FACING
 BANKRUPTCY
If United States Does Not Assist Europe in Recon struction and Restoring Order, Warburg Sees America Engulfed.

Reserve Board disembarked from
 the Nieuw Amsterdam this week after
 a two months tour of England, HoI- land. France, Switzerland and Ger many. As the result Of his observa- tions, he declared that the world must clear it's balance sheet of fctt- tious assets as far and as fast as It can to escape ruin. Our budgets must be readjusted before 1t will be pos sthle to stabilize the foreign exchange, Mir Warburg stated, and this will not be possible until the extraordinary expenditure connected with the liqui- dalton of the war Is over.
 He avowed that the United States
 must assist the other nations of the world in restoring themselves or the whole world will fall into bankruptcy 1 or communism. He urged the Senate to ratify the Treaty of Peace without delay, stating that 1t would give a foundation. even if ca defective one.'' l for the movement to combat the 1 baneful influences at work.
 Few people realize how littIe we 1 know in the United States about the ! intimate developments going on at l the present time in the various parts 1 of Europe and, conversely, how inn ] possible it is in Europe to follow
 
 1 country is so taken up with its own 1 troubles that neither time nor space 1 permit to observe or report more l than, at best, rough outline of the i events. Before venturtng to express 1 very specific views, after an absence l of three months, one feels, therefore
 8, very natural and keen desire to | read up and post oneself about what | has been said and done in the United
 States during that period. However, ] 1t may be timely to state some gen
 eral thoughts and impressions.
 l s"One cannot spend two months in 1 Europe without being deeply impress l ed with the fact that the war has 1 opened wide the dykes <once protect | ing our old form of society and that 1 the unIoosened currents, still uncon- trolled, are raging over areas far be- yond the boundaries of the countries directly involved in the war. Nobody can forte1 at this time what the 1 worlds picture will be when ultimate 1y the floods will subside How far
 It will remain submerged or be able to emerge will not be the result. however, of an automatic process. AS !t was the will of men that broke
 the dykes-dykes, 1t Is true, that had grown too weak and that attemped
 NO
 narrow compound-so it will be the
 will of men that will deter
 mine the final outcome The les son that one brings home from Flu l rope is, therefore, that we must not stand by idly with folded hands while the world is drowning, but that it is our duty, and within our power, to
 arrest movement which, if un-
 checked and permitted to run into ex-
 tremes will engulf US alI
 United States Must Help.
 There are many who, disgusted and d1sheartened, believe that we in
 the United States of America should ! wash our hands of Europe and leave
 It to her to straighten out her own affairs. It is too late for that By the decisive part we played in decid- ing the war and the peace, We have
 assumed normal responsibility ] which we now cannot shirk, and even were we inclined to do so, we could no more free ourselves from the , neshes that now link us to Europe For the future course of the world } will be influenced very materially by l economic forces, and these forces we l largely control, as, inversely, to a Ger. l tain extent they control us. In orde, to survive, Europe needs our products and requires them largely on credit and 1t Is our moral duty to furnish these goods While our self interest i.
 involved in this, Europe's dilemma is so much more acute than ours, tha 1t places in our hands the key to the situation, but at the same time tho responsibility of using 1t wisely.
 5 The present problem is not a sim . pie one; 1t is the upshot of many in. 7 fuences and conditions varying in de 3 gree in the several countries affected t but there are two fundamental evil
 common to all which must be eradi ? cated if world bankruptcy or com r munism are to be avoided. These art : the continuous increase of prices ) and decrease of production.' Price! | must continue to rise as long as tn, t leading countries spend every veal g billions more than they collect iron l taxation and other regular revenue:
 covering the resulting deficiencies by g issuing additional currency, Treasury g l bills and other Government obliga = tions As long as this 'waterins f process is indulged in the value O. capital must further decline, and i g , persisted in long enough it must enc e in something like the Russian o1 . stro-Hungarian conditions, where - the savings of the past invested il 0 1 money and securities have been prac = tica1ly wiped out.
 a While to some extent the presen
 1 labor unrest is psychological and il
 certain aspects, as far as it disregard
 the public interest, may be consid
 l cred destructive and immoral, ther,
 1 cannot be any doubt but that as Ions
 | as the rise in prices continues, 1abo
 1 will have to fight for and be entitled
 1 to increased wages. On the othe = 1 hand 1t is obvious that a higher seal. f of wages is in itself a factor makin. - for 8 further increase in prices. Thi S unfortunate reaction cannot be avoid |. i ed upti1 the prime driving force ha- I been eliminated; which is the persist q 1 ent depreciation of capital by the con = tinuous issue of Government securi = ties and currency for the purpose o d covering deficiei1ces caused by ex e cessive current expenditures. Pro
 longed disregard of sound economi
 l principles will wreck business enter
 i prises as well as Governments.
 = employ at the Lake Torpedo com u pany died suddenly yesterday after e noon at o'clock, as result of hear