New-York tribune., 1920-01-15

ACs LIZ -
I just debt is converted into a spirit Of
despair and revolt.
| ut is also true that amongst the
whose economic condition is exceed
ingly grave, and which will have to
reach the limits of their taxing
powers. 1t appears therefore to the
undersigned, that the. position of these
countries, too, should be examined
from the same point Of view Of keeping
taxation within the power of endur-
ance, and within scope that will not
be conducive to financial chaos and
social unrest.
when once the expenditure of the
various European countries has been
brought within their taxable capacity
(Which should be rrst condition of
granting them further assistance) and
when the burdens Of Indebtedness, as
between the different nations, have
ben brought within the limits of en-
durance, the problem arises as to how
these countries are to be furnished
with the working capital necessary for
them to purchase the imports required
for restarting the circle of exchange,
to restore their productivity, and to
freOrENnt4e lnelf CufrenCleS.
World Interests at Stake
"The signateries submit that, while
much can be done through normal
banking channels, the working capital
needed is too large in amount and is
required too quickly for such channels
to be adequate. They are of opinion
therefore that more comprehensive
scheme is necessary. 1t is not ques-
ton Of affording aid only to single
country, or even single group OF
countries which were allied in the war
Tho interests Of the whole of Europe
and indeed of the whole world are at
stake.
at is not our intention to suggest in
detail the method by which such in
ternAtonal cooperation in the grant
of credit may be secured. But we allow
ourselves the following observations:
"U) The greater part of the funds
must necessarily be supplied BY
those countries where the trade bal
ahce and the exchanges are favorable.
"{a) Long term foreign credit,
such as is here contemplated, is only
desirable in so far as it is absolutely
necessary to restore productive
processes. 1t is not substitute for
those efforts and sacrifices on the
they can solve their internal prob
lens. 1t is only by the real economic
! conditions pressing severely, as they
, must, on the individual that eQuillb-
rum can be restored.
a "(3) For this reason, and also be-
{ cause of the great demands on capital
for their own internal purposes in
{ the lending countries, themselves,
the credit supplied should be reduced
, to the minimum absolutely necessary.
e "(4) Assistance should as far as
: possible be given in a form which
leaves national and international
trade free from the restrictive con-
{ troll of governments.
, "(5) Any scheme should encourage
f to the greatest extent possible the
supply Of credit and the development
9 of trade through normal channels.
8 "(6) In so far as it proves possi-
: the lending countries, these loans
8 tract the real savings of the in
S dividual; otherwise imitation would
be increased.
Fl "(7) The borrowing countries
would have to provide the best OBJ
tainable security. For this purpose
it should be agreed that:
i "(a) Such loans should rank in
i front of ali other Indebtedness
q whatsoever, whether internal debt,
O j reparation payments or intef-Ailie,
e governmental debt
n "(b) Special security should be
: set aside by the borrowing countries
0 as a guarantee for the payment of
III interest and amortization, the char
h acter of such security varying per-
Il haps from country to country, but
~. ~
and the new states the assignment
Of import and export duties payable
d on gold basis, and in the case of
r states entitled to receipts from Ger
:, many first charge on such rnceipts
:, 1.-THE outlook at present is dark. N
: greater task is before US now than t
! devise means by which some measure q
hopefulness will reenter the minds O
: the masses. The resstablishment of
!. ! willingness to work and to save, Of in
i centives to the highes, individual e1
y fort and of opportunities for every on
e to enjoy a reasonable share of tn
e fruit Of his exertions must be the all
u toward which the best minds in a
Il countries should cooperate. Only If "
J. recognize that the time has now com
n when all countries must help one ar
4 other can we hope to bring about an a,
e mosphere in which we can look forwar
J. to the restoration Of normal condition
l, and to the end of our present evils.
e I'm conclusion, the signatories desif
q to reiterate their conviction as to tn
3 very grave urgency of these question
y in point of time. Every month whic
It passes will sggravate the problem an
e render it's eventual solution increasing
It ly difficult. All the information at thei
n disposal cunvinces them that very crit
n ical days for Europe are now irnminer
It and that no time must be ,oss II catas
!. trophies are to be averted.
q Because of cable delays the names b
e the French signers have not yet bee
: received in New York. The BIRTHS
It signers include.
d Sir Richard vassar Smith, Bart
a chairman Of Lloyds Bank: Lord Inch