New-York tribune., 1920-01-31
Embargo on Entry of Ameri.
can Luxuries Expected as
the First Step to Sta
bilize the Falling Rates
Had No Hope for Credits
Secretary Class's Letter No
Surprise to London Bank
ers and Treasury Officials
By Frank Getty
Ne1O York Triburs
EUrOpcnu Rur.n,I

q olyr1gnt, 1910. New York Tribune Inc.)
LONDON, Jan. 3O.-England's first
step to rectify the shattered exchange
rate on the pound sterling in New
York is expected to be an embargo
against the importation of American
luNuries, with virtually everything on
the barred list. possibly, except food
and actual necessities. Announcement
of the embargo may be expected soon.
No one can resent such move on
the part of England and it is doubtful
if Americans who desire to see normal
international industrial relations re-
sumed will do so. The measure con-
celvably may be one of series de-
signed to restore a more favorable re-
latlon between the pound and dollar.
Knew L. S. Would Deny Credits
All England has read the letter of
Secretary of the Treasury Glass, in
which he says that the United States
cannot be expected to make further
loans to Europe.
While Great Britain is pondering the
possible result of the American Sec
retary's announcement, an outstanding
feature of the situation has come to
attention which. it seems, ought TO be
emphasized in view of the scare stories
prevalent to-day, and it is ths-a sec
ton Of the British community knew
this crisis was coming.
h.,
not be carried away with the idea
that the reported resentment here
against America is deep rooted or has a
fundamental basis. 1t is stirred up by
the gaseous press, and calm wind
arising from saner reasoning will soon
dispel it.
Secretary GLASS; letter, as has been
said, occasioned no surprise among
London tinancicrs or Treasury officials
here. They had expected yes. antici-
pated-t Whatever may be written
from this side of the "amazement and
indignation' caused by the American
Treasury Secretary's frank statement
merely reflects the yapping of section
of the British press always ready to
selze upon anything to arouse public
OPINION ana produce sensational reading
Chamberlain Foresaw 1t
Austen Chamberlain, Chancellor of
the ENchequer, Will make no statement
on the letter, but he knew that this ex-
preston of view was coming Treasury
oifcla S also were silent, but they ex-
pected nothing different City imam
ciers knew as we'll as Secretary Glass
himself that America could not. if it
wished. assume the burdens of the world
or undertake to finance Europe's re-
qurements."
Just what prompted the initial out
cry begun in 1.-The Daily Express"
" WedNesday, remains mystery, but it
W either inspired by those who
realize England's position and want
to impress upon the public the need
tor the four measures outlined by
Secretary Glass disarmament. re-
sumption of industrial life, adequate
taxation and domestic loans-but dare
not do so openly owing to the difficult
political situation here; or it was
merely the sycophant press making
copy for itself
Mr.. Chamberlain and Sir Auckland
Geddes discussed the situation with
Prem er Lloyd George and Andrew
Bon Law. leader of the House Of
Commons, yesterday. Mr.. Chamber
laln's reticence to call an International
financial conference when first de
itiIlutu WAS pcllCNcU que 10 MIS- aDlllIN
to ioresee Americas refusal to take
part.
Many leading bankers who have been
invited to meet Mr.. Chamberlain early
next week to discuss methods of recti-
lying the sagglng exchange rates on
pound sterling in New York admitted
to-day that they could see little pos
sibility of relief in the proposed inter
national conference, except possibly
closer unity Of action among the Allies
Real Remedy Lies With England
There is no need for Americans to
feel undue sympathy for England in
the situation. Persons here who know
what they are talking about do not
blame America for the attitude she has
taken. They see need serious and
increasing need for rectiiicatlon of
the exchange rate. but they realize
that the real remedy hes with England
alone They will soon take steps, in
tcrnal as we'll as external, to put the
house in order
AS for that section of the COM
munty whose opinion is reflected by
such papers as THE Daily Express" !"
The Evening Globe John Bull" etc,
sympathy for its embarra ssment would
be wasted, for in the same columns in
which the writers complain bitterly of
the rise of the American dollar appear
articles openly rejoicing in the fall of
other European currency in comparison
Wan exchange. in which case the ex-
change quotations to-day showed a con-
tinued rise in Great Britain's favor