The Washington herald., 1920-07-25

London, July 24.-Peace and or
der in Europe today. If not in Amer
lea, too, depend upon the mainte-
nance of good relations between
England and the United States and
upon the readjustment of world H.
nance, Festus ]. Wade, g. Louis
banker, and chairman of the COM
mittee of FIVE representing the
American Bankers Association, said
before sailing for home.
Speaking OF the necessity of sta
bilizing exchange, Mr.. Wade de-
clared that unless manufacturing
industries and commercial establish
ments as well as financial institu-
tions aid by the government will
take rapid steps to bring about an
equilibrium of foreign exchange be-
tween the United States and Europe.
our Industries will suffer severely"
Mr.. Wade impressed as all Amer
leans are who investigate European
conditions today declared that to
those who love civilization and it's
CT ntinued advancement it is more
than evident that friendly co-opera-
tion is necessary between Britain
and the United States. 1t would
take years to restore the damage
uChE DN WAT anu any man, re-
gsrdless of his position in life, who
makes any move or suggestion to
bring about Misunderstanding is do
ing an irreparable injury to all ma
tions. l notice that we have some
foreign travellers in the United
States who advise our people that
Great Britain is not friendly to the
United States. Such gentlemen
should be run out of our country
because by the damage they do they
might be called gentlemen Bolshe-
visits"
When your correspondent put di-
rect questions as to whether the
United States ought to cancel Euro
pean debts, he answered:
We ought not to cancel any part
of our debt unless European coun-
tries put exchange back nearer a
normal level" He added that our
people were '1iving in a birds para
disc" by thinking that because the
dollar is at a premium everything
is all right.
There is no way Great Britain
and America could help Europe as
much as by restoring the value of
exchange" he said, England and
the United States began six months
ago to debate and contract the tre-
mendous expansion created by the
war, but the widest dreamer never
could imaging that the expansion of
the worlds debts could reach $780,
000, 900, 900. While IT is commenda-
BILE on the part of England and the
United States to endeavor to de-
fate-and imitation must cease - 1
apprehend they are doing it too
rapidly and that in creating con-
traction, they being the richest ma
tlons, naturally make it a heavy
burden for the weaker nations to
carry.
You will be told by political
economists that credit must be reg
ulated by supply and demand and
that the value of exchange depends
upon this law. That is true in all
ordinary times and under ordinary
conditions. But we in the United
States have the supply, and Europe
has all the demand If through our
action we depreciate the value of
European currency we correspond
lar and thus force other nations to
buy elsewhere than in the United
States The answer to economists
who tell you that the law of supply
and demand must regulate the value
OF credits, and that it cannot be
done in any other way is the fact
that during the war the govern
nents of England, France and the
United States did regulate the SELL
ing price of foreign exchange, keep
ing the pound at $50 and AIS.
IF this could be done during that
critical period II ought now to be
in modified form for some
three to fve years. to aid the weak
er countries of Europe and strength
en- the financial situation in our
country. ! recognize that to do
this II would cost US 100000, 900
and more per annum. but IL the
selling price Of sterling and francs