Every evening, Wilmington daily commercial., 1920-01-30
OSCAR 7. CROSBY
SPEAKS ABLY ON
WORLD FINANCES
Addresses the Chamber of Com
merce Res pectine Political and
Economic Problems.
TAKES PEssIMIsTIc VIEW

Addressing $50 members Of the Cham
ber Of Commerce, at its annual meeting
Last night, Oscar L. Crosby, former
Assistant Secretary OF the United States
Treasury. srpkc interestingly for one
and onc-half hours on Political and
Economical Problems OF international
Finance"
Mr.. Crosby said the world has paid for
the war; the world pays its debt every
night-its debt OF labor-and it receives
every day It's pay in food and clothing and
housing and transportation. War is a great
cxtravagance but the world, as whole
cannot borrow To cover its wastefuluess.
Groups may borrow from each other
food, clothing. Steel coal or any other
material things. In such case the replace
ment may be required of the next genera
ton of the borrowing group, and this
gives substance to the statement that so
far as that group Is concerned the war
is not vet paid, for. But the wheat and
the steel and the dynamite which went
from US to the Allies on credit account
had already been bought from Mother
Nature and paid for in the only credit
sac rccoCnizes-the brain and the Drawn OF
her children. Within its own member
shin the group the government, seizes
a part of its needs from its members.
That is taxation. The account between
government and citizen Is closed. But
no process has yet been discovered by
which this financial conscrlption on
large scale can be accomplished IN the
haste of war participation. So govern
ments ask their citizens to furnish wheat
and steel and wool and coal beyond
the amounts that have been seized and on
condition that at future fixed date these |
articles or their supposed equivalents shall
be returned to the lenders or their child |
rem. But the things thus lent arg parts |
of the wealth produced from day to day |
the producers work, and live and die. |
The account with nature is closed The |
internal national debt remains. 1t must |
he settled later by seizlng wheat and coal |
and wool from one citizen and trans
ferring it to another. The total sum OF |
wealth then existing Will not be thus |
increased or decreased.
He thought the world has not only |
paid for the war. but it possesses today |
a larger plant, both grIcultural and |
manufacturing than it had in 1914 |
Plant additions in England and France
and Italy are perhaps equal to plant de-
struction In the devastated districts. |
III the vast augmentation IN the United |
States ard South America be taken into
account, the total of new construction is
doubtless greater In productive value than
the construction losses In France and
Belgium. The shipping record shows
the worlds recuperatIve power. Two
wears ago we wondered whether any tom
mage would be left. Already the menacing
efficiency has been substantially covered,
and we must look for An excess of shipping
il all nations continue to strive for enough
shirs To take care of our own commerce"
Mr.. Crosby said the chief item of loss
not already covered directly or indirectly
is to be found in the depreciation of rail-
way material This figure, standing
alone. would doubtless be impressive,
but when compared with the worlds
fixed capital and annual production OF
wealth is insignificant. An unparall led
mass of things desired by man springs
into view when we survey the land from
Hudson's Bay to Patagonia En- gland
is striking her place. France, Belgium,
Italy are falling IN line. Russia Is self
supporting, and it would not be surprising
If she became respectable member OF
the family of nations within two years.
Her legitimate debts to other governments
and foreign individuals Will be recognized,
thus bringing about an immense allevia-
ton of certain national balance sheets.
He stated the most Serious economic loss
now to be confronted Is that due TO new
political conditions created by the Peace
Treaty New World countries are able to |
meet all governmental obligations by |
taxation, heavy when compared with pre-
gar standards. but not unbearahle. Old
World countries, except japan and prob
ably China. are confronted by budget
difficulties requiring taxation and fresh
Internal loans, both pushed to alarming
extent. Foreign indebtedness presents
problems differing materially from those
involved In inter nal debts. Those whose
business it has been to study the SIT uation
OF our debtors among allied governments
are convinced thst they viii be unable
10 meet for several wears at least the annual
interest charge of half a billion dollars
now due US Ii IS assumed that Great
Britain viii defer her interest claims against
France, Italy and other debtors. Based on
these premises and exceptions as 10 fam
ine, it MAY be said that no European
government need borrow externally un-
less If engages in war or trade. Should
governments attempt to borrow for re-
should be discouraged. The American.
public should contemplate only negligi-
bv small demands of European govern
ments for loans III our market.
Mr. Crosby said it has been proposed by
many influential persons IN Europe and
= few In the United States that there
should be a general cancellation among
allied governments OF all loans contracted
for war purposes. No such process is
likely to meet public approval here if
set forth markedly and unconditional. No
such process was contemplated when
xt-