The theocrat. [volume] (Zion City [i.e. Zion], Ill.) 1914-1949, 1920-02-07
DESPERATE CONDITION OF FOR
EIGN CREDITS
Secretary Glass Refuses to 0. K. Further
Loans to Europe

Loans TO Europe
DISPATCHES constantly received, both
from New York and abroad, demonstrate
the alarm with which the whole world is
watching the exchange situation. The gov
ernments are seeking some method, no mat
ter how drastic, to stop the rapid decline IN
the value of their moneys.
Great Britain has called a conference OF
all her financial leaders to seek solution
Switzerland is making frantic efforts to
save her clock industries. The leading
jewellers of Berlin have closed their DOORS
refusing to sell diamonds or jewelry of
any kind because the German money is
almost worthless.
New low records for British, French, Bel
gian, Italian and Danish exchange were es-
tablished early this past week. The
pound sterling, regarded for decades I'M
til recently as the basis of exchange, has
sunk to $3.431s, which is AS cents under
its previous minimum. It is now at dis
count of about 20 per cent from the normal
of $4855S
The French franc is at a discount of
about 81 per cent, and Belgian and Italian
renittances are deprecated by about o5 and
Y per cent respectively.
The exchange situation is the engrossing
topic of discussion among bankers every
where, overshadowing all other matters in
the financial markets of the world.
One Of the greatest factors in the decline
of foreign money is the fact that Americas
trade balance against Europe increased by
81 ,435, 41O,566 in 1910 Exports from the
United States were $5,185 ,o80,350 while
imports were only $3.50, 569,784.
One prominent writer says:
Money values of the world are crumb
ling. You can buy German marks for about
a cent apiece-less than twentieth of their
nominal value. Even the British pound
sterling, financial Rock of Gibraltar, is a
poor cripple, limping along at $3.43 a
pound.
Chat loss does not represent the real
loss, for gold in London costs 1l6H sh1l-
lngs an ounce where it used to cost only
IS shillings. For the first time in hun
dred years, gold is at premium in England.
"The pound is actually worth about $500.
Paper money is only nations promise to
pay. When people think nation is not
able to pay, the value of its money drops
like the note of an insolvent individual.
"No wonder the French franc loses OF
per cent of its value. France must pay ev-
cry year twenty billions of francs = four
thousand million dollars - to make up for
1.-The war loss. France has one-third the
! population of this country, less than one
third the wealth. IF the United States
had to pay twelve billions every year, a
thousand million dollars every month, indie
fnitely, what effect would it have on Our
credit?
"The nations Of the world went on a
terrific debauch for five years. Now they
must pay for it.
Russia, with her wild dreamers, seems
to be financially in stronger position than
many other nations Lenine has taken all
the gold in Russia, accommodating it in gov
eminent hands. The endless billions Of
rubles printed by Bolshevism are worth
nothing, but that same Bolshevism has I'm
der lock and key gigantic store Of gold
with which it can do real business.
Reading that news from Russia, you
read also that the United States has shipped
eighty millions of dollars to Prague and
wonder if this country can't wake up, rea-
lie that Christmas is past, and stop play
ing Santa Claus"
Another writer says:
"The United States today is the only
country that is able to pay its debts to other
countries in gold. European nations owe
the United States approximately $15,OOO,-
100000 loaned them during the war. This
they cannot pay in gold, because they have
Mt the metal; they cannot pay at present in
goods, because they have not sufficiently re-
covered from the effects of the war to
produce more than they consume"
A Washington report of January %
stated that Secretary of the Treasury Glass
does not look with favor upon certain fea-
lures of the proposed international confer
ence called by a coterie of fnanciers and
| commercial leaders in an effort to steer the
world away from commercial chaos.
The Secretary says that such a confer
ence would serve ito cause confusion and
revive hopes doomed to disappointment of
further government loans" With note
of fnality he states: "The American gov
eminent has done all that it believes ad-
visable and practicable to aid Europe"
He is convinced that the credits required
for the economic restoration must come
through private agencies. The nations of
Europe, he intimated, were to blame for
MI INOTIcTRTEc