New-York tribune., 1919-12-10
Complete Breakdown Must
Occur Soon Unless u. S.
Lends Aid Immediately.
Noted Economist Asserts
Tariff Held to Blame
Message to America Says
Effort to Avert Disaster
Is Greatest i'm World

LONDON, Dec. . (By The Associated
Press)-Sir George Paish, editor of
"The London Statist," and we'll known
financial authority, writes in "The
Globe" appealing urgently for Amer
lean commercial and financial co0pera-
ton with Europe.
at is becoming clearly evident" he
says, chat unless the entire problem
is soon dealt with in all its aspects
complete breakdown of credit, of ex-
change, of commerce and of trade must
occur in the not distant future"
The collective effort required to avert
disaster, Sir George asserts, is the
greatest the world has ever been called
upon to make.
THE people of Europe" he writes,
Cannot support themselves without
the continued grant of credit for the
purchase of urgently needed food and
raw materials"
Too Big for Exporters
Referring to Secretary of the Treas
of financing the restoration of Europe
belongs primarily to American ex-
porters, the writer says that this is
much too big for the American ex-
porters to deal with. They cannot 20
beyond the limits Of their own credits,
which have already nearly been reached
The writer holds that the protective
tariff is primarily responsible for Eu-
ropes inability to pay America for
American goods. Those laws. he points
out, are designed to keep out foreign
goods, and only by selling goods to
America can Europe pay for American
goods.
although the question OF tho Ameri-
can tariff and American policy is one
for the American people alone" he
continues, the claims of humanity de-
mand that America in one way or an
other, by banking credit, by private
loans or government loans, should sup
ply Europe with the food and material
the needs in this great emergency"
Payment in Bonds Suggested
"The Globe" says the question will
be raised in the House of Commons to-
morrow why the United States has not
been asked to accept in payment for
amount of securities of the Allies
which Great Britain holds.
This plan," "The Globe" says,
would materially rectify the adverse
exchange. improve British credit and
reduce the cost Of living"
When asked yesterday to comment on
Sir George Paish's statements interna-
tional bankers in New York insisted the
0f
Europe's needs was no nearer solution
than it has been for some time. The
views of an important group in the
banking community were summarized
by banker who said that the situation
could be met only in one of two ways.
First, the United States Government,
it was suggested, might undertake to
make advances of credit to European
governments, and might raise the
money needed by the continued sale of
certificates of indebtedness. This pol
icy, it is recognized, would involve
more imitation, which the Federal Re-
serve Board has expressed opposition
to, and continue the government in the
banking business, contrary to the rec
ommendation of Secretary Glass.
Bonds Are Unattractive
The alternative to the foregoing, it
was asserted, would be downward
revision Of the surtaxes and supertaxes,
with the object of making it attractive
again for men Of large wealth to buy
taxable bonds. At present even bonds
Of exceptionally high yield are wholly
unattractive to the very rich, accord
ing to bond dealers. because most of
the interest is taken by the government
in taxes. AS result the bond dis
tributing houses are compelled to de-
pend more and more on the small
buyer, and, it is said, feel it would be
impossible under existing conditions to
CELL enough European bonds to the pub
lie adequately to meet the colossal
needs of the Old World. Income taxes
might be reduced, it was argued, and