Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-07
PA|SH IS GLOOMY I
ON WORLD future
Bottom Has Dropped Out, Is
Pessimistio View of Brit
ish Financier
U. s. HELP NEEDED, HE SAYS

'The bottom has dropped out Of ths
world-there's no venturing the exterf
to which the pound sterling may con :
tinue to decline on the exchange, :"
Sir George Pnish, adviser to Tho Rr;t.
ish chancellor of the excheouer ana
treasury during the war, expressed tbis
pessimistic view of the international
financial outlook today. He will par.
ticipnte in a discussion, "what Furono
Expects of America" at a meeting ~
the American Academy Of Political and
Social Science Mt Witherspoon Hall to.
night.
| He said there was nothing surpris;n,
about the unprecedented decline in ~
exchange rate of the English pound
Last year. he said. america sold
| five and a quarter billion dollars worth
of products to Europe and bought bncL
only three quarters of billion leaving
four and one half billions to be settled
in securities"
Advocates League Nations Bond
"Oply prompt CO. operative measures
of all the nations. including the United
States. can save the present situation .
he said. He then advanced his solu
ton to the international problem
through a League of Nations bond,
through which the Supreme Economic
Council of the league could extend long.
tenn credit ito the investors OF ali
Countries
"All nations should realize the dan.
ger of the present situation, and should
be willing to pledge their credit in order
to prevent the threatened complete
breakdown Of credit Of commerce and
of trade.
"It is necessary to issue long term
loan to the investors of all countries,
including America. 1t is the business
of the League of Nations to do it.
"The moneys of the loan would be
under control of the supreme economic
council and the reparation COMMITTEES
of the league. The United States would
only do its part. 1t would only sell It's
surplus products for good bonds of the
League of Nations.
No Bottom to Exchange Rate
"The United States will not be able
to sell its surplus without taking pay.
ment in securities. The reason the eI-
change is breaking is due to the fact
ing to take payment for their surplus
products in available securities, and
that is why Il is necessary to create a
bond in which they would have COM
plete confidence.
Every nation would have to indorse
the League of Nations bond issue.
"Theres no bottom to the exchange
rate-the bottom has fallen out of the
world. America will not be able to sell
her wheat, her cotton, her pork products
or her manufactured goods until some
kind of security. is created which the
American people and the others of the
world will take in exchange for their
products.
Call Meeting of League
"A special meeting of the League Of
Nations should be called together to
the present dangerous situation
at the earliest moment possible. and
should take whatever measures are de-
manded to rectify present conditions.
'The League should stand behind the
exchange situation and provide what.
ever exchange is needed to enable the
people of all countries 10 buy the things
they need"
Asked il America would not be asked
to contribute very largely to the League
of Nations bond, Sir George said:
"As Europe needs to buy, at pres.
ent, the provision of exchange by Amer
lean example would place money in
Europe at the disposal of the Supreme
Economic Council.''
He said that, ultimately, the United
States would be forced to ratify the
eague as an economic necessity.