New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-11-09
European Bankers
Take Issue With
Views Of Warburo
=
Belgian. on International
Trade Conference Tour.
Says Governments SeeEvil
of Fiat Money Situation
Sfaf Correspor de~cs

Sfdf Co-respon de~cs
KANSAS CITY. Mo, Nov S.-Spokes.
men for the western European nations
who are participating in the Interna-
tiona! Trade Conference tour to-day
took issue with the suggestion made by
Paul NJ. Warhurg this week. on his re-
urn from abroad. that the Old World
was moving toward insolvency.
The former vice governor Of the Fed
eral Reserve Board especially criticized
che habit of the European governments
of watering" their currency by issuing
pat money to meet the excess of ex-
YeNditures over revenue. Delegates
from abroad declared their govern
meNts were conscious of the evil. and
had drawn up programs to correct it.
NJ. Florimond Hankar. chairman Of
The Bel-ian mission and one of the
foremost tnanciers of that country.
when shown report of Mr.. Warburgs
statement to-day by The Tribune
correspondent, said what the American
banker had said was for the most
par: inapplicabe to Belgium. "Mr.
Warburg speaks Of the orgy of ex-
;ravagsnce in Europe said the Bel
Ean banker, "but I can assure YOU
there is, broadly speaking no ex-
traVagance in my country TIE people
q Belgium were additionally frugal
savers, and this Is particularly true in
.neso critical days of readjustment.
Out Of our population Of seven and one
IA millions, three and one half
millions have savings bank accounts.
Money Coming From Germans
As for watering Of currency, we
haNe issued no new paper currency in
Belgium since we reganed control of
our country. In considering our cur
r,7Ne. = uation you must remember
chat S6 900 600, 900 is now in circu a.
ioa and ;hat the Germans will pay
IL francs for every mark outstanding
IS soon as they are alb e. That consti-
1Ntes an important item on our credit
side.
AS for meeting our very high ex-
pendltures, we could easily greatly in
crease our taxes, which have always
been especially low in Belgium We
are working hard in Belgium, and shall
he abie TO meet all our obligations. We
never undertake any without being
Ger ain that we can repay them.
The Continental nations at this
itirerant conference have estimated
he need for credit in the United
Statcs in 1920 at 81 500 600 coo. Bel
GUM mas asked for s1O0,00O.o00 France
about $500 000 coo and Italy between
100000 600 and s7oO,o0O.0OO
For Italy. Senior luigi of the Ital-
.an mission. said Italy is country
hat never contracted q debt in the
war without making arrangements to
cay both the principal and the inter
est through taxation.
at is absurd 20 think Of Italy as
heading toward insolvency." he said.
"Of course our government is per-
fectly aware of the need of rehabili-
-ating her currency, and has drawn up
program for so doing. which. am
sure. will be put into effect im-nedi-
stely after the coming elections. We
purpose to levy capital tax in order
shat we may retire all the naper money
outstanding which is not indispensable
10 the carrying out of the normal
transactions of commerce.
No Extravaganza in Italy
There is no extravaganza whatso-
ever In ItaiV Before the var orr