Evening star., 1920-01-30
GLASS
ANNOUNCES LIMIT
T0WORLD CREDITS
Warns That Further Govern
ment Aid to Europe Should
Not Be Expected.

| ttICIit HIU " EUi WV SIIOuIO
Not Be Expected.
A warning that there is limit to
the financial aid which the United
States may be expected to extend to
Europe was sounded by Secretary
Glass of the Treasury last night in
letter to the United States Chamber of
Commerce committee, which had asked
an expression from the government on
a proposed international conference on
the financial situation Of the world
due to the war.
Mr.. Glass said plainly that the gov
ernment did not look with favor upon
certain features of the proposed con-
ference, and added he feared that such
a conference would cause confusion
and revive hopes of further govern
ment loans, which would be doomed to
disappointment. He said that he was
convinced that further aid must come
| through private and not government
| channels, and that the European peo-
Piles must make an effort to help them
selves.
Suggests "UnOmciaI'' Conference.
| 'If the Chamber of Commerce of the
United States considers 1t advisable
and desirable to designate representa-
| tives to attend an unofficial confer
ence," Mr.. Glass said, "the Treasury
Department does not offer objection,
1
| limitations OF such conference, as
well as the impossibility of United
| States government action, are clearly
understood. But there are numerous
suggestions contained in the memo
rial sent broadcast by the leaders
which are clearly not appropriate for
| consideration, such as cancellation of
some or any obligations of foreign
States, or even the deferring of obli-
cations of foreign governments to
| liens created in favor of loans here
after made for reconstruction pur-
poses."
| Situation Facing Europe.
The situation facing Europe, the
| Treasury Secretary said, was one. to
be solved by the activity of those ma
tions and their nationals and not for
settlement by any worldwide plan
such as the proposed international
conferences contemplated.
From the moment of the cessation
Of hostilities." Mr. Glass added, "the
Treasury of the United States has
pursued a policy of looking toward
the restoration as promptly as possi-
| bic OF normal economic conditions, the
removal of governmental controls and
| interferences and the restoration of
| individual initiative and free compe-
| tition in business. The Treasury long
since, with the cooperation of the
Federal Reserve Board, removed the
embargo on the export of gold, thus
| enabling American citizens and, in
deed, the nations of the world to the
extent that they find credit here to
| finance their purchases throughout
the world in cash.
| Different Policy in Europe.
| Rightly or wrongly, a different
policy has been pursued in Europe.
tained since the cessation of hostili-
ties embargoes upon the export Of
gold. The rectification of the ex-
| change, now adverse to Europe, lies
primarily in the hands of European
governments. The normal method of
meeting an adverse international bal
ance is to ship gold. The refusal to
ship gold prevents the rectification of
an adverse exchange. The need of
gold embargoes lies in the expanded
rope. Relief would be found in dis
armament, resumption Of industrial
life and activity and the imposition of
adequate taxes and the issue of ade-
quate domestic loans.
1 "The American people should not, in
sImy opinion. be called upon to finance,
and would not in my opinion respond
to demand that they finance. the re-
quirements of Europe in so far as
they result from the failure to take
tation of credit"
| Relative to the solution of the ex-
change puzzle, Mr.. Glass warned that
this country could not continue to
extend credits on sufficient scale to
cover the present swollen trade bal
ances while paying cash (gold and
silver) to Latin American and far
eastern traders. What the European
nations need now. Mr.. Glass explained,
IS working capital rather than SO
much bank credit" Then. as a solu-
tton for the intricate situation, Mr..
tGIaSS offers the fOllOwinp.
IF the people and governments of
Europe live within their incomes.
increase thei rproduction as much
as possible and limit their i'm
credits to cover adverse balances
would most probably be supplied by
private investors and the demand to
resort to such impracticable methods
as government loans and bank credits
would cease.
| There is no more logical or prac-
tical step toward solving their own
reconstruction problems than for the
| allies to give value to their indemnity
claims against Germany by reducing
these claims to a determinate amount
which Germany may reasonably be
expected to pay. The maintnance OF
claims which cannot be paid causes
apprehension and serves no useful
purpose"
Total OF Cash Advances.
| Since the signing Of the armistice.
Mr.. Glass pointed out, the Treasury
has made direct cash advances OF
$2,3S0.891, 900 to the allied govern
ments> and in addition has made avail
able $736,4S1.000 to those govern
nnents. and in addition has made avail
currencies in covering United States
expenditures in Europe. Besides the
United States has sold on credit ap-
iproximately s5,00o.000 in supplies
and has extended approximately $780,
0OO, 900 in relief, as vel las allowing to
accrue 900 in unpaid interest
| on loans.
s325, 900, 900 DUE US.
FROM EUROPE ON LOANS