Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-12-17
Europe Cant Afford ii
TO GiUe Up U. S. Help
Bankrupt Nations Adopt Slogan Of 'Nothing Without
america" Retutng Report OF abandonment
OF League by Allied PotUerS
BY CLINTON w. GILBERT
StaH CORRESPONDENT Of the Evening Public Ledge

Washington, Dec. II. Nothing
without the United States" according
20 the usually inspired Temps" of
Paris was the policy of the big con-
ference of allied prcmiers just con
cluded in London.
That Is sufficient answer to the
stories that this conference was re
vival Of the Entente, that it was an
abandonment of the league Of nations,
that it settled Fiumc agreeably to Italy
and disagrecably TO Mr.. Wilson.
The truth probably is that more con
sideration for the United States was
shown in London than at any time in
the Peace Conference at Paris. As
the uncertainty of American participa
tion In world affairs has grown the
anxiety to have America participate has
Increased
The 'Temps" puts financial and eco
nomic questions first on the list Of
problems discussed by the premicrs with
Ambassador Davis sitting in unofiicialy,
The financial situation alone is sufficient
reason why Europe will do nothing to
displease either the Democratic Pres
ident or the Republican Senate in the
political controversy that is raging here
over the league of nations.
1t is vital 10 Europe that it shall have
the friendship of the Wilson administra-
tion while it lasts and that it shall
equally enjoy the friendship Of the Re-
publican administration If such m ad-
ministraton succeeds the present one.
IL is for this reason that no allied gov
ernment will express in advance its
views upon reservations. To DO so
would be sure to displcaSe one side
or the other in the cont"cynrsy. And
by merely insisting upon the payment
nf int pgt 70 70 hn 4
during the war America would force
Europe to ruin.
Europe Cannot Pay Interest
The question of the interest on these
loans was one taken up by the Lon
don conference. There is no doubt
that Europe cannot pay the interest on
these loans and there is no doubt also
that if she Is forced to pay it she will
not pay it long and even the principal
will be imperiled
The question of this interest comes
ur because this country has lent the
Allies almost of the so 900 900 200
authorized by Congress. The Allies
cannot longer pay the interest on their
borrowings from the United States by
further borrowing. They cannot pay it
BY the sale of goods in this country
They can only pay it by the shipping
Of gold to this county. And the shin
ping of $500. 900, 900 of gold to this
country in the next year would bring
about the final smash in the foreign
exchange situation. 1t would drain
Europe of a large part of its remaining
gold, leaving Europe's vast issues of
paper with still less basis than they
have now. And the collection of
debt of $500 900 900 annually from
Europe would add just that much to the
strain upon foreign exchange.
The combined influence of imitation
and an adverse balance of trade have
sent the British pound, once the stablest
measure of value in the world down to
1913 in our money. It's normal value
before the war in our money was S4. SO.
And the French franc. more inflated
than the British pound, which was once
worth twenty cents in our money, is
now worth about nine cents. The de-
cline in the value of Allied money,
measured in our own. has been steady.
and experts believe it will go on until
much lower levels than now prevail have
been reached If Europe has to send It's
$500, 900, 900 year, this decline will
be so great as to prccipitate a smash.
Europe Needs More Credit
AS it is Europe is finding difficulties
In buying goods in America. What is
needed is not increasing of the demands
upon Europe, but increasing Of
Europe's credit here. Europe needs to
be able to buy American goods with
American money loaned to her here.
Otherwise she cannot pay for them
Europe is in the position of q debtor
who may be pressed into bankruptcy by
his creditors, or, who by n little le-
niency on the part of his creditors, may
be tided over.
The propoal to defer. for three years.
payment of interest upon the war loans
to Europe is only one form of grant =
ing Europe additional credit. At the