Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-26
ECONOMIC TANGLE
CALLSFOR STRONG
j. s. MEN ABROAD
American Delegation, lnclud-
ing Experts, Considered
Weak on That Point.
DOMINATED BY IRON
WILL OF THE PRESIDENT
Debt Situation Of All Europe Is
Desperate, Gables Correspond
ent in Paris.
BY JOHN F.. BASS


Chicago Daily News. Copyright, 1919.
PARIS, January 24.-The news from
America concerning the probable ap-
pointment of a republican representa-
tive on the peace delegation here finds
as yet no confirmation.
The American peace delegation is
not considered a strong one Presi-
dent Wilson dominates 1t with his
iron will. and the members themselves
are often in the dark concerning the
policy to be adopted.
In general, the peace contingent, in
Guiding the experts, are considered
up to the present weak In practical
economics The immediate and press
ing problems of the different nations
of the entente are economic in
character.
Pressure Planned at Home.
Great pressure will undoubtedly be
brought on our Representatives to in
duce America to join in the economic
reorganization of Europe by lending
our credit to it, assuming portion
of the war debt and financing new
governments.
This may come in the form of
proposal for a bank of the league of
nations, which would take over all
the war debts by issuing securities
guaranteed by the allies and the
United States. AS the financial stand
ing of the United States government
is practically the only one in the alli-
ance which is unquestionabiy solvent,
the plan would result in America pay
ing the greatest portion of the war
debt.
The total war debt of the entente
and the United States would be $780,,
900, 900, 900.
Moreover the hopes of France have
been raised by some injudicious utter
ances Of Americans occupying quasi
public positions to expect that we
will wipe out the enormous debt which
she will owe America when the accounts
are settled.
Able q. s. Men Wanted.
In view Of the importance which
economic questions will play In the
peace settlement and in the postwar
situation in Europe it is hoped that
America will soon have at the peace
conference body of our ablest finan-
cial men.
The debt situation of all the Eu-
ropean countries is desperate. For
example the debt of France prior to
the war was $4,000, 900, 600 Provisions
for pensions now pending in the
chamber of deputies will require in
terest on $6,00O,000,0oO The restora-
quire Immediately $4,000, 000, 900. The
interest charged on the debt would be
on $44,000,000.000. This charge whom
refunded at the interest rates likely
to arise will amount to from $780,
100000 to $4,000, 100000.
Big French Budget.
Prior to the war the cost Of govern
ment was about $1,000. 900. 900. The
100000. The total capital value Of
France, including land, is in the neigh
borhood Of $50. o0o, 900. 600. The total in
come of every kind was about 81, 000,-
100000 prior to the war.
One Of the most trying situations of
the government is that the issue of
paper money has been raised from
s., 900, 000, 900 to $4,000, 000, 600 This is
secured by the deposit Of $4,000, 900, 900
in short-time treasury notes. This in
prices. When normal international
trade relations are resumed this in
crease would produce depreciation of
the currency through the foreign ex-
change and consequent hampering in
foreign trade
During the war the income Of the
French government has been raised
from $1,000, 000, 900 to $500. 900, 900.
Tax Raising Hazardous.
The principal difficulty is that the
popular unrest in Europe makes the
raising Of taxation extremely hazardous
for the governments. The hopes of the
peoples are now centered on the peace
conference, through which 1t is gener-
ally hoped that the difficulties win be
solved.
The labor classes in all countries ex-
pect that the league Of nations will re-
lieve their heavy burden of obligatory
service and ornaments
. l have not yet found any public men
IT. the European governments who be-
lieve that the European countries can
for the present be materially relieved of
large armies and nayies.
Confederation With Power.
This most serious situation would re-
quire a league of nations amounting to
a confederation with sufficient power to
give national security. Yet none of the
government plans for league of ma
tions seem to answer the requirements,
and II the conference does not develop
more radical plans it Is likely that the
league of nations will assume an unirn-