Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-02-22
PRE-WAR FINANCE
BASIS ESSENTIAL.


WASHINGTON. Feb. - Dol. The
nations ablest financiers. Weighing
the effect on world conditions. Of
'ae preelpliate slump In foreign cX.
change values. rapidly are coming
10 agreement upon the point that
the world will not enjoy fairly sta
BILE standards OF currency and credit
until II returns to the observance
VI approximately the same pr.aoi-
Pies OF banking and finance as pre-.
vailed before the war. This y.ew
u not predlcated upon the assumn-
ton by any means that ante.bcilum
exchange PARTIES Will Ae re.eainh-
lished. Government financial ca
perts. In truth. believe that mum.
her at European countries never vail
regain their previous exchange lav.
els. Europe's power TO reduce the
terrible shrinkage In IT, money stan
dards. experts declare. hinges upon
the ability 10 produce and save.
Whatever the level recovered. Euro
pean nations. according to the con
sentative View Of men NJ the helm
In the capital. will find II to their
vital interest To fasten their stan.
dards 10 q definite gold relation and
re-establlsh stable exchanges, fluc-
tuating between maximum and
mlnimum OF gold parties.
Because Of the great Jump IN prices
OF commodities the world over. some
adhere 10 the view that there will
not be- gold enough % serve as a
basis for the worlds financial struc.
turf. Answering this contention.
government financial experts toda,
stressed the fact that the more per.
feet the machinery Of credit. tho
more insignificant becomes the ne
eessity OF settling IN actual gold.
These experts showed how II Is pos
aible 10 satisfy adverse balances In
many other ways than In gold pay.
nents where national credit. indus.
trial enterprise and banking sys.
tens are established upon a sound
basis.
The confident prediction Is made
nj the Treasury Department that the
sterilization Of xechnuges with the
existing gold supply may be under.
taken u government credits and
commercial conditions are stabiliK.
ed The point was made that even
with an additional $1,000, 900, 600
In gold poured into the world. ex.
changes could not be- stabilized nm.
less government credits and CONNER.
eial conditions are stabilized.
Plainly In the midst Of the pres.
ent-day economic labyrinth. business
men have had brought home with
great force the idea that the people
nFe liying In an era where prOduc-
ton OF money and credit has lncreas-
ed and production Of goods greatly
decreased. The answer TO the ere.
I'LL dilemma. experts say. IL less
credit and money aud more goods.
Government officials especially
eharfed with the duty Of safeguard.
In gihe nations purse siringl are
seriously disturbed over the wave OF
bstravagance that grips not only the
american people. bat the people %
every country. The fluctuations
downward OF foreign exchange values
ihey view nefyously a. reports from
American diplomats abroad come
slaiiy telling OF the defiance OF Eu.
hope 10 appeals 10 20 n work aud
70 produce moro and consume less.
These reports from abroad are from
trusted advisers Of the government
They are indeed Illuminating. az 70.
fieciing the Ehiiless and iDdolent
attitude ~ millions OF able-bodied
men who might be- contributing "a
q solution Of the present financial
problems ~ their own countries
When Europe kno'fs OF N.
spending spree and lis idle CLASSES
have expended their suddenly got.
ten wealth, that part OF the world
will Bet hack 10 work from neres
siiy. but ~ much 81 officials hero
would like 90 see IL. they do not
lock Tor any return 10 normal pfo
duciiye output. through moral rua.
sion exercised On BE- Idle laboflna
CLASSES
The first effective step In com
batting decrease M production. m,
rise in prices and the fnii ~ ey
changes. esperis say. viii b. thi
adoption BY foreign governments %
rirld policy ~ preventing furihoi
issue Of government securities ani
money for the purpose 81 GOVERNS
current deficiencies The nation
failing 10 take this step soon are be
iIsyed 10 be- headed for bankrupt,
cad social an deconomic disruption