The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-24
MONEY CRISIS UP
T0PARLIAMENT
Next Session Must Solve Prob
lem Affecting the Com
mercial World.
PRODUCTION is URGED
Radicals Favor PenaliZing
Wealth of Every Sort in
National Levy.
PRODUCTION IS URGED
Special Cable Despatch 10 THE Sun.
Copyright, 1919; all rights reserved.

LONDON. Oct a3 The meeting Of
the British Parliament after its long
recess is an event of worldwide i'm
portance from the economic stand.
point Although in inner banking cir
cles plans are going forward for ex-
British finance, involving not only
these islands but the whole CONNER
cially related world
The one thing which stands out
above all else is the new psychological
turn of the British, greatly panied to
see the pound sterling at so great a
discount. There is no expression of
jealousy of the United States or of any
other country on account Of the inter-
national trade they have built up;
there Is instead a feeling that Great
Britain needs a drastic self-adminis-
tered tonic to put her back in her old
position of leadership and strength.
How this is to be administered is the
question.
Many different factors account for the
present state OF affairs which is RESPONSE
bankruptcy, especially by labor lead
ers. These leaders discuss the billion
and a half dollar deficit piled up by the
Government since spring and OF the forty
billion dollar debt, involving huge in
terest. They want something done i'm
msdiately. but they have no concrete
plan to offer. Meanwhile the outflow of
paper money continues 10 finance the
Government deficit and sterling exchange
suffers accordingly.
Foreign Trade Handicapped.
The establishment OF pre-war conti-
mental business has been possible only on
a meagre scale. because the British ma
tion itself must first get on a proper
economic basis before II can go ahead
with extensive foreign trade plans, but
once the question of home finance is set
tied dexterous and comprehensive move
ments will be made to restore Great
Britains pre-war trade status.
In fact, nearly all Europe is pausing
for Great Britain to straighten out her
private AFFAIRS and so the issues up to
the present Parliament are far reaching.
The public Is clamoring for the conflsca-
tion OF all war fortunes and the immedi-
ate curtailment OF Government expendi-
lures explanatory statements of the
Governments policy on these points are
expected this week.
The economists, as 4 rule, frown on
the plan to confiscate war fortunes; they
contend that most of this money has
been turned into capital for useful in
dustry and to penalize such fortunes now
would injure business. Arthur Samuel,
NJ. p. criticising the plan. shows that
only $3.50, 900, 900 could be recovered
which is not worth considering when
contrasted with the years expenditures
OF seven billion dollars
There is, however. complete unanim-
| ity on the reduction of national ex-
penses by the cancellation of contracts
under which large quantities of war mu-
! nitions still are being needlessly manu-
| featured II is curious commentary
on the state OF the British mind that
the French lottery loan for $1,000, 600,
900 has evoked praise here for the In
ventors of the scheme formerly such a
scheme would have been laughed down
| In England. The French plan is more
| than a premium bond issue the loan
| carries no interest whatever and there
will be novel terms that will attract a
new sort OF clientele II amounts to a
popular wager with the principal guar
| anteed.
French Lottery Approved.
That the British should approve such
| scheme instead of making sport of II
-. a n