The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-01-30
GLASS AGAIN ENTERS
VETO TO GOVERNMENT
FINANCE FOR ALLIES
AID MUST COME VIA
PRIVATE INITIATION
For Removal of Governmental
Control In the Channels
of Business

WASHINGTON, Ian. @9.--Thc United
States treasury does not look with faN"r
upCn certain features OF The proposeu
international conference. recently called
by a Cutcrlc Of nationally known hnau-
clcrN and ruumvrrlnI leaders IN an "t-
fort to lead tho world out Of the tNan-
clal and commercial chaos INTO which II
was dragged lay the war.
Secretary Glass declared tonight III n
letter to a committee Of thu Chamber
Of Commerce Of the CnIcd States which
had sought -"N"rnuT"nt expression on
the meeting that such Il conference
vIvC hopes doomed t. dlSapPnint OF
further government loan!A With Il
note ~ some tinHlity. Mr.. Glass set
forth the governments policy with re-
Spcct to furnishing CREDITS stating ihat
tn" treasury IS opposed 10 government
control over foreign trade and finances
and even NOR" opposed to private con-
trol. 1t ~ convinced that The CT"dltS
required tor tn" cc"nomlc restoration
must come through private channels. In
this respect, this government fears the
proposed conference would mean L"
many Europeans that the United states
was about To shoulder more OF their
burdens. Mr.. Glass explained.
No world-wide Plan.
The situation facing Europe. tn"
treasury secretary said was one to be
solved by the activity of those nations
and their nationals. and not for settle
ment by any Worldwide plan such as
the proposed International conferences
contemplate.
Prom the moment OF the cessation
Of hostlities. MIR Glass added the
treasury OF the United States has pur-
sued n policy OF looking toward the
normal economic conditions, the re-
moval OF government controls and IN
references and the restoration of indl'
vidual initiative and free competition
in business. The treasury, long since.
with the cooperation Of the federal re-
serve board, has removed tho EMBARGO
on the export OF gold, thus enabling
American citizens. and. indeed, the ma
they find credit here, TO hnance their
purchases throughout the world IN
cash
Refused to Ship Gold.
Rightly or wrongly. u different pol
ICY has been pursued III Europe. Euro.
pean governments have maintained.
since the cessation OF hostilitics' EN-
barGoes upon the export Of gold. The
rcctification of the exchanges now ad-
verse to Europe lies primarily in the
hands OF European governments. The
normal method of meeting an adverse
Internal tional balance is To ship gold.
The refusal to ship gold prevents the
rectifiCation OF an adverse exchange.
Tho American people should not, IN
my opinion. be called upon To finance.
and would not In my opinion respond 10
a demand that they finance the require
mcnts OF Europe insofar as they result
from the failure to take these neCes-
sary steps for the rehabilitation OF OF
situation Is to be found not in the man
ufacture. Of bank credit in the United
States for the movement OF exports.
Mr Glass asserted. This process al
ready has proceeded too far. The rem:
edy lies in the actual movement OF
goods, OF investment securities and in
~ VII 40 ono Va fIFL ri lis hRn
Need working Capital.
What the European nations need now
Mr.. Glass explained. Is working capl-
tai rather than go much bank credit.
IF the peoples and governments. of
Europe live with in their incomes, in
crease their production aS much as pos
siblc. and limit their imports TO actual
necessities, foreign credits TO cover All
verse balances would most proba bly, b.
supplied by private investors and tho
demand to resort To such impraCticablC
methods as government loans and bank
credits would cease
There is no more logical or practical
step towards solving their own recon-
struction problems thnu for IN" allies
to give to their indemnity Ca'mS
against Germany by reducing those
claims to n dCtermlnHtC amount when
Germany may be reasonably expected 10
pay, and then for Germany tO issue OBJ
free to work out. This would increase
Germany's capacity TO pay. restore con-
fidence and improve the trade and com
merce Of the world. The maintenance OF
claims which cannot be paid caused
apprehension and serves no useful pur-
pose"
The American government has dons
ell that II believes advisable and prac-
ticable to aid Europe. Mr.. Glass SAID.
He pointed out that since the armistice
was signed. the treasury has made di-
rect cash advances Of $@,GS0.OSl.O0o to
the allied governments, Il has made
available $736.4Sl. 900 TO those govern
ments through the purchase OF lhc,r
currencics in covering our expenditures
In Europe, II has sold through the army
and navy approximately S6S5,o0o. 600 IA
supplies on credit. and has extended
approximately Sl0n. n.0OO.000 IN rclicf.
In addition. he explained, there has
been allowed TO nCcru" unpaid interest
aggregating S324,2ll.00Q.
THE WEATHER.
WASHINGTON, Jan. 2s.-ForecAst:
ohio-Fair Friday; Saturday fair and