The Washington herald., 1920-01-23
STABILITY NEED
OF COMMERCE
Paul M. Warburg Addresses
Pan American Conference
On Financial Conditions
MANY QUESTIONS UP
Senator Mccormick Pre-
sents Budget Plan as
Essential.
MANY QUESTIONS UP

ADDRESSING the delegates to the Pan
american Financial Conference at
yesterday afternoons session, Pau. NJ.
arourg, former member of the Fed
eral Reserve Board. declared the
world will not enjoy stab-e standards
OF currency and credit until II again
reaches the point where approximately
the same ISlnciples of banking and
nnance are observed as prevailed be-
fore the war.
Mr.. Warburg chose for his address
the topic, Fiscal and currency stand
ards as the future measure OF the
credit Of nations"
Unless government credits and
commercial conditions are stabilized"
MI. Warburg said, I'VE could not
stabilize exchanges even if an aid.-
uonal billion dollars of gold were
poured into the world: We must de-
vote our energies to breaking psices
oy increased industry. production and
thrift, and only through these means
VIII We be able to develop our trade
relations"
Many Subjects Treated
During yesterdays conference the
questions of exchange. budgets. i'm
ports and export taxes and stand
disguised by the speakers. Ricardo
Necfno. minister of finance of Uru-
quay. who presided, was introduced
Secretary Carter Glass.
senator Medill Mccormick. speak
ing on the budget system. declared
prudence must be mingled with
courage in the organization of ex-
changes and credits and in hus-
banding the national wealth.
There can be no social progress
In the modern state" he said, "un-
less 1t be founded upon frugal, up
right and efficient public admin
istration."
The report of the transportation
committee was read but action was
deferred until it could be trans
lated into Spanish.
The report dealt with the sub
ject under four heads-maritime
commerce. railroads. postal regula-
tions apd cable and wireless COM
munications.
Broad Study Urged.
The committee. concluding its
ocean transport recommendations.
urged that the International High
Commission appoint a commission,
to study the questions involved and
submit recommendation to the vari-
Gus governments.
In connection with railroad trans
port. the committee called upon the
governments involved to prepare a
comprehensive plan to link the small
subsidiary roads to the main trunk
systems of the continent, to stan
dardiZe freight and passenger rates.
promote the construction of branch
nj
cilires in their own countries for the
purpose of running their own trains.
onew transcontinental system cross
ing South America from east to west
was recommended and comprehen-
sive system of highways was declared
Indispensable
All delegates from countries not
now in the Postal Union were urged
to enter postal conventions and dele
gates were urged to advocate a par
GELS post convention with an indem-
nifty for nondelivery.
Invited to Boston.
At the afternoon session Mayor
Peters, of Boston. delivered an in
vitation to the delegates to visit
that city.
DIR. Virgilio Rodriguez Beteta. of
the Guatemalan delegation, de-
clared that the two things which
had influenced the Latin-American
countries in their warm feeling to-
ward the United States had been
the sympathy in their struggle for
independence and the spirit of
solidarity which gave rise to the
Pan American conferences
DIR. Florencio Aragon Etchart. of
Uruguay, made a comprehensive out
line of import and export taxes as
a means of securing revenue and the
adoption of a gold standard He de-
cIared that exchange rates had lit
tie effect on Cruguayan currency. as
the people of the country realiz1d
that it was fully and perfectly guar
anteed by the reserve.
DIR. Zuberbuhler declared exten-
Sion of foreign trade should be on a
permanent and stable basis, as sound
commercial ties can exist only when
the buyer and seller fully under
stand each others needs. which un-
Outstanding can come only by daily
intercourse.
There is no greater stimulus to
foreign trade" he said, than the
influx of foreign capital" and in
stanced the trade between Argen-
tina and Great Britain, saying that
the latter counry had made invest
ments in South America exceeding
SOC, ,O00, 900 pounds and that these
investments have become wholly
identified with the economic life of
Argentina
Victor v. Robles of the Chilean
delegation. addressed the congress
on the productivity and commercial
possibilities of Chile.