The Washington times., 1919-07-02

How could the league Of nations
undertake the economic control
of the planet? The following
article is offered as q suggestion
toward q possible plan for such
control. We shall view the funda-
mental facts and illustrate their
bearing on the problem.
1.-Two facts Of the old order
are fundamental. First, that within
the nation itself the tendency Of
financial control is toward its
largest centralized banking insti-
tutions; either a Government bank
or a closely allied group Of private
hnanciers. Second, in the world
as a whole the same eentralizing
tendency is operative. AS Ameri-
can credit Is under control of New
York interests, so, before the war,
world credit was controlled in
London-the British pound ster-
ling was the standard of exchange
for the worlds trade.
In the nation this tendency led
to the alignment Of the speculative
against the productive forces,
creating a class that dealt solely
in exchange and a class that dealt
in products. In the world, this
tendency led to the setting up Of
q speculative nation as against the
productive nations.
The meaning Of such a situation
for world peace is not affected by
the fact that now the United States
has become the creditor nation Of
the world. BY reason Of the trade
fluctuations caused by the war our
country has accumulated the
larger part Of the worlds gold, has
gained control of the worlds credit,
and can hardly avoid, If old con-
ditions are TO remain, becoming
the worlds banker.
The possession Of this gold un-
der the present financial order of
the world makes it imperative
that our fnanciers force it into
all sorts Of channels where inter-
est may be earned, and this forced
financial activity contains posi-
bilites Of international misunder-
standing impossible to exaggerate.
To boast, therefore, the United
States good fortune is simply to
state the United States opportun-
ity to become the Spectator ma
ton Of the world and a potent
source Of world disturbance, as
Great Britain's financial monop-
oily has been. Moreover, our hay
ing achieved the position Of fnan-
cal arbiter Of the world would
seem to impose upon us the duty
Of attempting correction of hith-
erto accepted though mistaken
practices.
Two methods of reform are open
TO Us, one beginning at the bot
tom and one beginning at the top.
The latter is the more orderly
way, the former is being tried in
Russia II our reform should be-
gin at the top it will require a
social vision and an altruistic fer
vor Of a sincerity and intensity
which is wholly inconsistent with
selfish shrewdness.
2-The wealth OF the world
neither consists in nor is adequate
~ represented by the money of the
world. Gold itself is not a valu-
able commodity. 1t is no more
wealth than hat checks are hats.
But 1t can be so manipulated, as
the sign Of wealth, as to give its
owners or controllers the whip
hand over the credit which pro-
ducers Of real wealth require.
When money itself becomes an
article Of commerce to be bought
or sold before real wealth can be
moved or exchanged, the usurers
and spectators are thereby per-
mitted to lay a tax on production.
The hold which the controllers Of
money are able to maintain on
productive forces is seen to be
more powerful when it is remem-
Dered that though money is sup