Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-02-07
MORATORIUM FOR
WORLD IS NEEDED
Equitable Trust President
Asks Breathing Space
for the Nations
CITES CASE OF FRANCE
Says America Can ''Lessen
Bump" by Creating Long
4 Term Credits
By the Associated Pres,

a Paris, Feb. I'm advocating the tenn
porsry suspension of liquidation by the
governments to one another which would
mean an international moratorium be-
tween the governments in order to give
the nations breathing time. Alvin w.
Krech, president of the Equitable Trust
Company, of New York. who has been
studying the financial situation In Eu-
4 rope, said.
"The Independence of the nations OF
the world after this unparalleled cata-
I<clysm must be obvious, and therefore
the situation in France, the center OF
the conflict. Is of vital interest to us.
The enormous imitation here of the cur
rcncy has created a temporary and
purely fictitious plethora of money. and
while the rates for money are quotably
low, all food and commodity prices are
welinigh prohbitive. This is concident
with the severest restriction of COM
nercial credit.
Frances Liabilities
"Neglecting for the time the indebted
ness of Franco TO her allies-offset 10
some extent by the deferred colieOtibly
obligations Of Belgium, Russia. the
Balkans and Others held by her in
vestors--we find on the liability side
of the ledger the cost of reconstruc-
ton, the return of her monetary cir
culation to an approximately normal
basis, the resumption Of her coal and
Iron production and the development of
Industries in the restored provinces, the
rc-esta blshment of her merchant
marine, raw materials of all sorts, food
etuffs, and lastly, the transformation
and regrouping of her vast military
establishment into contented Industrial
rommunities. This transformation Is
susceptible Of accomplishment with less
friction by her than in any other OF the
belligerent countries
~ ION the asset side of the ledger the
Item of first Importance Is the matter OF
German indemnity it's amount and the
terms of payment, and the method Of its
distribution to the individual clamants.
The>flrst item is in the hands of the
Peace Commission and the last Is the
subject of pending national legislation.
1t will be a matter of months before
sither is definitely determined
"The present relations between the
dollar and the franc are obscured tenn
porarily by the general prohibition on
the Importation OF all commodities and
the artificial restrictions placed by the
governments upon exchange.
No Embargoes, L. S. Platform
THE official representatives of the
United States stand squarely upon the
Platform of no embargoes' and no re-
strictions respecting neutral and inter
Allieu countries and the rationing of
raw materials in the Central Powers af-
ter the indemnity terms have been de-
termined. They are convinced that the
sooner the lid Is lifted the sooner will
the nations affected be able to resume
their normal activity. Indeed. they are
urging that all embargoes affecting the
Near East and the eastern Medi:erran-
can shall be lifted forthwith.
THE French and British Governments
have accumulated considerable reserves
Of raw materials and manufactured
goods for wa purposes which will .suf-
fee for their present needs, and will
suffice long enough to allow Tor a re-
adjustment OF conditions and new values.
. America must therefore look to and pre-
pare for a readjustment of prices before
| her Allies will discuss freedom of con-
troi and regulation in trade.
THAT is, we may as we'll recognize
the situation in which we are placed and
take the bump. We can make q cush-
4on to lessen the shock or the bump by
America creating long-term commercial
credits and in the creation, through the
| aid of American banks and investors, of
| dollar credits running over term of
. years based on security of undoubted
value"