The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-08
ELEVEN NATIONS
GOING INTO DEBT
TO KEEP ARMED
Brussels Conference De-
mands Reduction of Arma-
ments to Stop Waste.
BLAME PUT ON PUBLIC
Governmental Extrava-
gance Response to Pres
sure, Financiers Find.
AID OF LEAGUE SOUGHT
international Credit System
Recommended - Trade Re-
strictions. Scored.
AID OF LEAGUE SOUGHT
Ru ,he Asaoc,ntea Prasa.

By the Associated Press.
BRUSSELS Oct. THE international
Financial Conference to-day adopted
the committee report on
finance. An initial step toward
the organization Of an international
credit system and an international
house and a permanent or
ganism for collecting and distributing
about the financial sitne-
tions of the different countries are
the first tangible results Of the work
OF the conference.
The full conference in adopting these
Recommendations at the same time
the hope that the forthcom-
ing assembly of the League Of Ma
tions will take up the question OF the
reduction OF armaments. Meantime,
however, the council of the league VIII!
endeavor to obtain results by direct
appeals to the different countries.
The much discussed question OF
tax on capital was left to the discre-
ton Of the various countries without
the conference making any recom-
mendation. The conferences recon-
nended that each country make ef-
forts to stop extravaganza and waste.
The conference resolution says:
Three out OF every four countries
re presented in this conference and
eleven out of twelve European coua-
tries anticipate deficit the present
year"
Advises National Thrift.
The committee on pubic finance III ita
report saws: Public opinion Us largely
responsible for nearly every Govern
rsnt being pressed to incur fresh ex~
pendtures. largely on palhatives tnat
aggravate the very evils against whicn
they are directed"
The committee concludes that nrst OF
all public opinion must be WORKED upon,
attention being dre wn to the fact that
a. reduction In prices and restoration OF
progperity Is dependent upon Increased
production, which finds serious OBJ
stacle IN the continual excess OF Gov
srnment expenditure over revenue me
rcport saws on pn average 20 per cent
of national revenues still are being
sneut upon arna mcnts md preparations
fer war. sdding: "The conference dc
sires to affirm Win the greatest eni-
phse,s that the world cannot afford this
expenditure"
Remedies proposed by the committee
are restriction OF the ordinary current
to an amount that can DC
covered by ordinary revenues. reduce
all expenditures on arma rnents as FAR
as COMPATIBLE with preservation or the
national security abandon all unproduc-
tive extraordinary expenditures and re-
strict even the extraordinary productive
expenditure to the lowest possible
amount"
Condemn. below Cost Sales.
The report condemns artificial cheap
enins OF bread. coal and other commodi-
lies by ceiling below cost ut Government
exrerse. and rlso Subsidies 10 The un-
ern-,'oved. which n savs "demoralizes i,-
stcad OF ercou-a eing Industry end the
N, ints-an OF railway fares. postal
rites and other things on brs's In
sufviria-t 10 cover the ccat Of the service.
F'resh taxation. the committee holds.
rnnsf be resortod tosn preference to loans
snd Other si'bfe~fuges to meet deficits.
THE rornrittec finally relIs upon the pub
lie itself 10 begin solution OF the prob
!err by practising r'gid economy IL pro
poses that the secreta riat OF the confer
ence continue regularly collecting state
n,ents OF the finances OF the countries of
tho world for the education of the public.
Credit Proposals Considered.
The lnter-credits committee considers
worthy Of study with the assistance OF
experts. the proposal for the extension
on an international basis Of 4 system
g.. rsn
IL added that "such extension would
be valuable In many cases because Il
would facilitate commerce with cour-
tries where the political and social con-
ditions often arouse exaggerated nppre-
tors,on on tho part Of exporters 4"
THE committee aiso gave attention 10
,ho subject OF credit, whereby raw ma
terials throughout the processes OF
transformation would serve as security
for advances either by the banker or
exporter. the product OF the sale OF tho
manufn ctured article going first TO the
repayment OF the credit.
'Rea lizrt,cu Of this system" says the
resolution, has met with serious OBJ
ST. cles IN many countries by rec son OF
the rbsence OF legisiation adeluatelv
the exporter during tho stages
OF import. manufacture. reexport ana
sale"
League Cooperation Sought.
Arcng ,he other questions IN which
,hc coran'ttcc considers prorre3s NIGH
no Effected With ~dvsntave are standard
,z,tIor of M d'~ercnt laws on bll's OF
exchange and bills OF iad'rg. rec'proc'tv
IN conditions 10 which the branches O.
foreign bsrks are subject IN the dirfe-
art cornt~fes ors'deration OF the clsirr'