El Paso herald. (El Paso, Tex.) 1901-1931, 1920-02-28

Z with a somewhat grim smile"
The Chronicle sharply scores presi-
dent Wilson and declares his original
note was scarcely less than vio-
lence."
port and exchange by means Of which
I its products would be conveyed where
l they are most wanted.
Third, the inability OF Europe to
purchase Its usual supplies from over
What are we going TO do about It?
How Can They Work.
To say to these people, Get back
] to worki" is the bltterest and most
! un1eelinE Of insults, for work they
I can not. There is no work, excepting
] agriculture, and agriculture alone
! wiz not keep alive half the people
I now living in Europe. A bankrupt
Z industrial state, whose money viii
I BUY no outside raw materials is
D doomed unless its former and perhaps
Z future customers get together and
Z save Il. that any American layman
Z can understand.
Europe Is in debt 70 the amount Of
I about four hundred billion dollars.
3 This includes preWar loans, war loans
and postwar loans, and paper money.
Before the war there were about
four billion dollars in gold IN the
state banks in Europe and the total
I amount OF gold, including that in cir
I culation. approached six billion dol
I lars. Much OF this has gone 10 Amer
]
I ness OF Europe at present IS not much
more than I percent OF the total
Where the Pinch Comes.
It Is impossible for any European
nation, excepting possibly Britain, 70
I pay out OF taxes the interest on their
5 debt and at the same time carry on
normal state expenses and set aside
sinking funds Yet. unless this IS
Europe not pay its debts but she
must have further loans II she Is TO
get the imports that are essential TO
resume economic life But these loans
not pay this. Already the Currencies
Of all European countries excepting
England have broken down badly.
Is there no hopper I asked The
banker who told me this.
Yes my informant emphaticaily
pronounced a new international
currency bank should be formed 70
issue notes, not against gold cover
real security. These notes should be
standardized with the American doll
lar OF equal value with the dollar,
and be Issued against lands, railways,
fees Of this bank which should be
opened in every country.
How II Would Work.
aAu governments should use this
international dollar TO pay for i'm
ports from America and from one
another, and a. cover for their
note issues, 4 they stfn desire to
put out their own money. Ne In
tereEt need be paid on these notes,
hut a comparatively small yearly
sinking fund can be supplied
Every country would be thus At
once provided with the necessary
credit, AID need not issue fur
But what are you going to do" ]
asked with the deprecated paper
money and loans already issued =
Every country" he replied. must
permit an international commission
nominated by the league Of nations
% read1ust Its loans and paper money.
This commission would order each
country 70 repay its Interior loans by
further issue Of its own paper and
repay its exterior loans by the inter
national dollar. OF course, the enor-
nous Increase % interior paper money
loans VIII still more reduce the value
OF the marx, kronen, franc and Ira,
tut this can not be helped The paper
money may be almost worthless. but
the var loans viii no longer exist
Replacing Old Notes.
The international commission viii
then order each country TO replace its
old notes by the new dollar or by
al q tremendous discount Germany,
for Instance, might issue It's new mark
against 10 old marks. Austria its new
kronen against 10 old kronen. France
-
but when this was done, the mark,
the kronen and the franc would be
worth their proper proportion OF the
international dollar and the buying
value Of the national currencies would
be placed on sound basis.
-Heroic ana terrible a. this
remedy VIII be, since II viii i'm
powerful everybody on the conti-
ucuts u n the only way. Every
oody will keep at least something
really OF rniue, even though u
may be one twentieth Of his uomi-
nal capital today, and no country
seed be further impoverished b.
terrible taxation.
Real estate, factories and railways
would at first be mortgaged as secu-
rites for the international dollar, and
these could afterward be taxed suffi-
GENTLY TO provide the necessary in
tcrnll income for current expenses
and remember that under this system
war loans no longer exist"
"A very pretty scheme I said,
'ands n one who has seen the
terrible misery on the Continent
yea viii not suApeet me Of flip
pnncy or lack OF sympathy 81 ]
suggest that what your scheme
really means "a that America, and
20 a small extent England, viii
have TO finance not only their re-
cent allies but their enemies ~
1t is true" N. Won offenheim re-
II-eQs mat LLa il4LlAllNe must come
from you But Il Is only superficially
irle TO say that you are the creditor
countries and that We owe you money
end that, therefore, carrying out the
scheme represents a sacrifice on your
part. No merchant can get loans al
the bank simply by presenting vast
Quantities OF commercial paper. i
ths- paper is bad.
Arhe European paper that you
Americans hold IL worthless un-
less you do uH the prudent mer-
Chant does and help your debtors
10 get over their present difficult
ties.
What Is your position IN America
soday2 More than three fourths OF
your trade is with Europe; the other
quarter goes 10 South America and
the east
where We sGet on
do you think you can survive as
an Industrial country II all your i'm
ports 20 Europe stop Certain Of
your business men seem to take the
view that Europe may go under, but
that they will continue 70 thrive
What business firm can live II its
al Cd