The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-14
US. RIGHT,
PAISH, EUROPE
MUST GET BUSY
Financier Blames Govern
ments for Their Heavy
Expenses.
Z. S. BANKERS LAUDED
Did All Possible, and More
Than Expected, to Ease
Situation.
U. S. BANKERS LAUDED
Special CabI, 70 THE NEW YORK HERALD.
Copyright, 1920, By THE NEW YORK HEEALD.

Special Cable TO THE NEW YORK HERALD.
Copyright, 1920, By THE NEW YORK HEEALp.
New York Herald Bureau.
London, Nov. -.
A remarkable agreement with Amer!-
can ideas for the reconstruction of
Europe came this week from Sir
George Paish. one OF the most promi
nent of British financial experts
America, he said was right. Europe
must be put back to work.
AT the same time he called attention
TO the fact that the budgets Of most
continental countries are ten times
greater than before the war, while IN
England 1t Is five times greater. He
declared that not only must the Gov
ernments reduce their expenditures
but they must turn the people and
the Government employees from IN
productive 10 productive tasks.
Sir George spoke at a meeting of the
Institute of Directors at Cannon street
otel gathering OF men influential in
every British Industrial and banking
heartily applauded.
THE situation Ia what was expected
by those persons who had details before
them at the close Of the war. but 1t has
been longer developing than they ex-
pected.' he said. Now one OF the real
actors of the danger of the situation is
hat few persons understand the real
predicament and the measures necessary
10 be taken 10 get out of it. One Is al
most in despair lest these steps be not
taken In time
world Commerce Broken Down.
THE British pound sterling IL at a
discount of 80 per cent. while American
gold is at parity. The French franc e
Il 20 per cent discount. the = IaN 3
So. the German mas ps ths s,iss--ask
uble 90 ana Pollen and Arsr~las. lasYp<
IS &c lal, 4epreriatea. having prsctffRiiy
no Va ua. IL fact we hnvc alr1oK lost
sight ~ Tho situation yhrysir m atsss4
romm, nas brokers acsr The only
medium. d trade barter. because the
credit sysL4ais OF the world are prac-
tically valucIess
British bankers already have borne
4 gigantic load. The breakdown would
Rave come earlier but for London. 1t is
Londol > tfe .s Ftanii e. lmae
many Rod o0nditioaa 81 plv8It
perfect sescri8sois
Dur the Tar see ruprilcs yar.a
credi,s issia. Trance. EslElprl 8nH
italy na He cnn n Inc I'D 81
our string America uvDiy stepped Il. 49,.
supplied no less than 10000. 100000 to
enable US 10 carry on the work. With
the end OF the war. however. II was no
longer possible for America TO continue
this. and since the summer OF last year.
when the American Government with
drew support, exchanges and imports or
the European nations. including our
selves. have been financed IN the usual
way.
american bankers did all that Il was
possible TO do-nore than was expected
of them--and during a single twelve
months supplied s4O00.0O0.O00 above
the normal credit. while British bank
ers supplied $4,000. 100000
Optimism of q. y. Bankers.
THE American bankers went on. de-
spite the situation. feeling that recovery
was certain ultimately
but the recovery has not vet coma.
end Il Is no longer possible for American
bankers 70 go on expending credit any
more than Il II possible for British
bankers TO DO Il Europe stu requires
enormous credits unless the machinery
OF commerce Is 20 break down She stili
needs to buy vast quantities OF goods
from America We viii have difficulty
paying for them unless America will ac-
cert securities.
II have noticed that the Frorch news
papers are critical Of the British Gov.
eminent policy but DO not believe the
French people realize all we are doing.
Why is the Continent unable 10 pay II.
way? You have only 20 look at the con-
tinental budgets IN order 10 got an an
swer.
They arc ten times what they wer.
before the war. Not only do they alb
sorb the money OF those particular coun.
tries but the Governments keep from
production large number OF pe-opls
who ought 10 be producing. The cont.
mental countries arc stiii issuing notes
literally. and during the last twelve
months Germany doubled her nots cir
culation.
one Cause OF Rising Prices.
This means rising prices and aise
that no real pressure Is put on the peo-
ole % rroduce
Great Rr'tain's own expenditures are
ti.soo mo 900 as agains, 100000. oet
before the war.
"Subsidies ought 70 be cut OF because
not only 90 they increase the brdget
but they mask the real situation from
the reonio. Military and naval expen-
ditures ought 20 be reduced according 70
the present condition Of things we
must cut the coat according to the clo.h.
Throughout Europe we must provide
the machinery necessary for a resunp-
ton OF production. but Il must be pro-
duced from credit. and the question y,
Where is that credit corning frou17 We
have already begun 10 tackle tho task.
why Is America unwilling 70 lend
this money! The answer IL that the
American pcorie a. a whole are en-
tremely dissatisfied with the peace
treaty. America requires q new treaty.
we will have % 50 a long ways 20
nect them m their demand n may
como to the question OF q world bond
guaranteed by all tho important nations
In order to rescue credit and a derendent
commerce.. n that comes the world must
be IA order
| Additional Cable News will
4 r. (e.1 - D. e