Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-01-04
NATIONS LEAGUE TO
ASSURE PAYMENTS
Sir George Paish Comes to
America as Spokesman
for Project.
U S. SHARE NINE BILLIONS
Bear Interest at 4 Per Cent, Be
Free From Taxation and
Rcdeemable in az Years.
INV Universal service.l


NEW YORK Jan. 3--The total
amount OF tho proposed international
bonl Issue for the rehabilitation Of
Europe Is $4,000. 600 600. /, was stated
today by Sir George pa.sh. the emil
mont British fnancicr and economist.
who has come to the United States "a
spokesman for the protect
The Issue would be tioAted under the
authority OF the league OF nations and
DO guaranteed collectively by the ma
lions Joined In the league. The Amer
ican dollar would bc the par basis Of
the bonds. which would bear interest al
@4per cent. DC tree from taxat.on IN all
two years.
Refund E1ixtIng War Debts.
or the tota! $i5.UU0,0U0, 900 would be
devoted to the retund!ns OF existing
S3.vuo.OOu.u0D and Whatever additional
amount might be apportioned to her
Great Britain. sir George said today,
Honid be Wiling 70 take 5000. eQu.o0V
of her debt to the uni,ed States.
Sir George also Expressed the belief
that one or the hrst results ot the no.
sation OF this great loan would be the
advance OF sterling exchange to $45V
was no. by the way, VINO hrst pre-
die,ed that sterling would drop TO 81
sonas issued with the backing OF the
security and would incre4se iatner
than decrease In value. In fact. he
thinks they would come to be regard
ed az preferable TO gold as a medium
of exchange In setting forth the al GU
ment. n favor Of the plan, Sir George
All wnnt 10 Sell.
~1,et me put Il this way. You want
oshsS want t 10 sell pT sheIre ss dsa
not yet In p9siiien to supply them
;heir goods. Wha. are those nations GO
Ing to do with them, Some nations
wa, 90 se9as aG n Yeed g ss
curities would have 10 be arranged Ia
all these countries.
but this Is my own solution-that this
problem Is the special FUNCTION OF the
league Of nations Ia to take care OF Of
world intsr1sts against Individual IN;
TO Hnd the solution. Were there 10 be
breakdown OF International credit
have goods TO sell and those who wish
10 buy them. 1t Is essential TO pre-
terest OF everybody and the league OF
nations can prevent that breakdown"
Would Pool Credits.
by pooling credits, by arranging to
supply the things the producing coun-
tries iced and TO pay for those things
securities. that those co.etrIes Will
kn .ss to ;,, be sound" $50, - ,o.,
issue?"
international currency. IL seems to
me, would mean a greater Imitation
than we could contemplate; bond
issue would DO the way out"
Would such plan make the United
States hold the money bag?"
Supplies ou whes sh gazing hn5 se a t0s
which she cannot sell unless tho goods
are paid for by credit In securities
1t viii enable the American people to
cell their supplies and to have no fear
OF nations guarantee that payment?''
Yes, have those payments in
eeurse m egnssenE sssb soaa of
sue. you must consider Europe as a
growing concern. When you lave a
Imagination to see that that house ei is
going to be productive when finished.
Europe Is under reconstruction and
that 1t is going to be a self-support-
ing community"
Element OF Risk.
what about the element OF risk
the risk Of failure OF those eountries?''
France will be completely recon.
strueted out of the funds that would
pe thus provided This assumes that
construct Europe. THEN YOU would
have a business in running order-a
business completely renovated"
What amount would the United
STATES be expected to contribute?"
100000 sterling, or $4,000. 600 900.
n ~ eeo billion hounds sterling. or SIS
purpose Of paying existing war debts.
United States OF the 5000 900 ooo. 900 war saT
bonds.
an" r rhe nnowWe would probably need s1o.-
oeo.ooo.Ooo TO- restart and restock Eu-
rope and build up the devastated dis
tflcts rsoI France, Belgium. Austria
done at once We cannot expect much
from Germany ut present She will
pay her indemnlties very slowly II
Will take her long time
What maturity would be p,accd on
tho league or nations bonds?"
Free From Taxation.
They would be rcdecmabIe IN fortv-
cwo years. They would DO free from
taxation In all countries and should
oear rate of interest OF only 1 per
fund. Behind the bonds would be ,bs
collective guarantee OF all the nations
so far as the United States is con-
your revenues. The guarantee would
OF high quality"
How much would the United States
THAT would be for the countries -
arrange among themselves. think
Ereat Britain would be very wiilin q
70 guarantee interest and principal on
CONTINUED on Page Two.)
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