Evening star., 1920-02-14
HARD WORK AND HORSE SENSE
PROGRAM IN FINANCIAL CRISIS
Confessional Committees View Interna-
tional Conditions With Determination to
Stabilize Situation-Outline Course.

do not care to make contracts be-
cause there Is no telling how ex-
change may drop, but once it ha.
reached rock bottom commerce will
adapt itself to the new condition and
business will continue active.
A "ouack" Remedy.
There Is question of an interna-
told the House appropriations conf
mittee something about the scheme.
That is declared to be one of the ''Quack'
remedies that leaders in Congress are
determined that the United States shall
keep free Of. Here are some approximate
debt IL or 10 billions: France. wealth
so billions. in debt 80 billions: Great
Britain, wealth 20 billions. debt 32
or 33 billions. That shows these
countries are on rocks financially.
The United States has 240 billions OF
wealth and 26 billions of debt. That's
the situation that must be faced 1of
any international partnership.
Any international currency must
be a partnership paper. with the
bankrupt nations of Europe part
ners with the United States. Its
value will depend on the wealth or
the countries issuing it. OF course.
have the United States back up its
paper. but the United States never
will or should do anything so fool
ish. say congressional observers.
The United States can do more to
stabilize the financial situation in the
world by maintaining stable currency
in the United States than in dump
ing large amounts OF money 10 pe
squandered in idleness.
Overseas they are living in fools
paradise, especially those countries
that are looking for big war indem.
mites. They propose to take all OF
Germany's rolling stock, all OF Ger
many's ships. all OF Germany ar
teries of commerce. They propose
to require Germany to produce ship
ping by the wholesale and produce
coal by the mountains-all for de-
livery to the allies.
No one but fool or a novice in
finance, the leaders in Congress say,
would overlook the necessity OF hgur-
ing out how Germany can make such
deliveries and at the same time pay
the indemnity required Germany
ought to be required to pay an in
they maintain. but Germany's
ability will depend upon her produc-
tion. If they take away all means OF
production. at the same stroke they
remove the possibility of paying the
indemnity.
Taxes and Expenditures.
None of the nations OF Europe that
have been engaged in the world war
have been levying taxes with anything
like the weight that must be imposed.
France has hardly begun to tax-tak-
ing that nation as an illustration. Yet
France took in only about IL, 500. 900, 600
francs last year. and her total dis
bursements will approximate $780,
600, 900 francs. France nor any of the
other nations can expect help from
outside until each nation makes its
taxes at least equal to its govern
mental expenditures.
AS has been pointed out. the United
States can best help to stabilize world
currency by maintaining her own. By
preserving the gold standard here the
United States sets up a guiding light
in financial gloom for all other nations.
If this nation does not preserve the
integrity Of its obligations. the finan-
cial crash will quake all other nations.
Before the war the United States
was a debtor nation. and Germany.
Great Britain and France were all
creditor nations. Today the situation
money to pay for goods that are badly
needed from the United States. Trade
has been too much one-sided to be
healthy. There is give as we'll as take
in commerce that is economically con-
Quoted.
The United States must buy as much
as possible from Europe. and as far
as possible. where such purchases will
help those countries in stabalizing
their exchange. Europe has not the
money to pay for our goods in cash.
So Europe must be allowed to pay in
what goods she has. per products.