Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-10-08
PR0POSESSYSTEM
Of INTERNATIONAL
CREDIT AND THRIFT
Financial Conference at
Brussels Favors Reduction
of Armaments.

| VI ~ bJCAlBbStskSs
BRUISES. October (by the As
ISOLATED Press).-The international
financial conference today adopted
unanimously the report on public
finance, which contains the results of
the work of the past two weeks by
the conference A first step toward
| the organization of an international
credit system and an international
! clearing house and a permanent or
ganism for collecting and distribut-
| ing information about the financial
situations of the different countries
| are the tangible results of the con-
ference.
The full conference expressed the
hope that the forthcoming assembly
of the league of nations will take up
the question of the reduction of
ornaments. Meantime. however, the
council of the league will endeavor
to obtain results by direct appeals
to the different countries.
The much discussed question of
tax on capital was left to the dis
cretion of the various countries with
out recommendation. The conference
recommended that each country make
efforts to stop extravaganza and
waste.
The conference resolution says:
Three out of every four countries
represented in this conference and
eleven out of twelve European coun-
tries anticipate a deficit the present
year"
The committee on public finance. in
it's report, concludes that first of all
public opinion must be worked upon.
attention being drawn to the fact
that a reduction in prices and restora-
ton of prosperity is dependent upon
increased production which finds
serious obstacle in the continental
excess of government expenditure
over revenue. The report says on an
average 20 per cent of national rev.
enues still are being spent upon arm
aments and preparations for war.
Remedies proposed by the commit
tee are restriction of the ordinary
current expenditures to an amount that
can be covered by ordinary revenues. re-
duce all expenditures on ornaments
as far as compatible with preserva-
ton of the national security. aban-
don all reproductive extraordinary
expenditures and restrict even the cx-
itraordinary productive expenditure to
the lowest possible amount
Condemns DilutinE Products.
The report condemns artificial
cheapening of bread. coal and other
government expense and also sub
sides to the unemployed, which. it
says, "demoralizes instead of encour-
ages industry" and the maintenance
of railway fares, postal rates and
other things on a basis insufficient
to cover the cost of the service.
Fresh taxation, the committee
holds. must be resorted to in prefer
ence to loans and other subterfuges to
meet deficits. The committee finally
calls upon the public itself to begin
solution of the problem by practice
ing rigid economy.
The conference unanimously adopted
all the reports of the committees and
adjourned until tomorrow afternoon at
1870 o'clock. when Gustave Ador. the
presiding officer. will submit a report
on the work of the conference which
will be sent to the league OF nations,
and by it be distributed to all the diff
ferent states.
The conference will also submit to
the league a proposition of several of
the delegates for the organization by
the league of a permanent financial
organism at the leagues headquarters
in Geneva. The inter-credits commit
tee considers worthy of study, with
the assistance of experts. the proposal
for "the extension on an international
basis of a system guaranteeing credits
for exports" 1t is added that "such
extension would be valuable in many
cases because it would facilitate COM
merce with countries where the politi-
cal and social conditions often arouse
exaggerated apprehension on the part
of exporters"
Subject Of Credit.
The committee also gave attention
to the subject of credit, whereby raw
materials throughout the processes of
transformation would serve as security
for advances either by the banker or
exporter, the product of the sale of
the manufactured article going first to
the repayment of the credit.
Realization of this system" says
the resolution, has met with serious
obstacles in many countries by reason
of the absence of legislation adequate
ly protecting the exporter during the
stages of import, manufacture, re-eX-
port and sale.
1.-THE committee recommends that
the council of the league draw at
tention of the various governments
to this question and that 1t intrust
to q committee OF legal and business
experts the task Of proposing legisla-
! the end in view in each of the coun-
tries Interested"
Among the other questions in which
| the committee considers progress
| Standardization of the different laws
on bills of exchange and bills Of lad
ing. reciprocity. in conditions to
| which the branches of foreign banks
are Subject III Tue ulISTeHl countries.
consideration of the claims of bear
! ers' securities. the coupons of which
are unpaid, measures to insure the pro-
lection of thrift and an information
agreement on the subject of lost,
stolen or destroyed securities.
! The resolution concludes: I'm the
course of the deliberations the COM
| mittee was constantly impressed with
the fact that all. or nearly all, the
proposals submitted to it require up
| to certain point the Intervention of
the league of nations. The committee
| unanimously associates itself with
| this tendency. 1t considers it most
important to extend to the financial
| program the international co-opera-
ton which the league inaugurated
| ject of improving the general situa-
ton and maintaining the peace of the
world"