The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-12-02

or the recurrent ordinary expenditure.
The conference considers that the re-
lntivc advantages Of the various pos
siblc means of increasing the national
revenue. whether by direct or Indirect
taxation or by Il capital levy Ito be
devoted to the repayment OF debit,
depend upon the special economic
conditions obtaining In zach country,
and that In consequence each coun-
try must decide for itself on the me-
thods which are best suited to its
own Internal economy.
Cessation OF orrowlng
II the above principles are accept
ed and applied, loans will not he re-
qulred for recurrent ordinary expen-
diturc; borrowing for that purpose
must ease. In a number Of coun-
tries, however, although the ordinary
expenditure must at the present time
DO undertaken on capital account.
This applies more especially in the
case OF those countries devastated
during the war. whose reconstruction
charg> 3 cannot posslbly be met from
ordinary receipts. The restoration OF
the devastated areas n OF capital inn
p%ortance for the reestahlishment OF
normal economic conditions; and
loans for this purpose are not only
unavoidable but ~justifiable. But in
view Of the shortage OF capital II will
w AAAAlAhNN " NNAhAA AAAb RAAAiAN >
quired even for this purpose, and only
the most urgent achemes should be
pressed forward Immediately.
Fresh Loans Met Out OF Savings
The means by which loans are rails
ed are no less important than the
purposes Tor which they are destined.
In future the lbana which are required
for urgent capital purposes must be
met out of the real savings Of the
people. But those sav.igs have, rs
II were. been pledged for many years
ahead by the credits created during
she war, and the first step to raising
fresh money must be to fund the UNI
dlgested floating obligations with
which the markets are burdened.
These principles apply both to in
ternal and to external borrowing, and
in regard to the latter we suggest
that IL would be In the general inter-
est for the creditor countries to give
such facilities us may be possible TO
the debtor countries to fund their
'loating obligations ut the earliest
possible date.
In order to enlist public interest II
Is essential to give the greatest pub
liclty possible TO the situation of the
auiblic fiuances of each state.
The conference Is, therefore, OF the
opinion that the work already ac-
complished by the secretariat in IT.
mp hNAN1 hNhAN VI HahAAk AAh'
ahOuld he continued. and II suggests
that the council Of the league OF ma
IONS nhould request all its members
and all the nations represented At this
conference 70 furnish II regularly nor
only with budget estimates and final
budget figures, but also with a h1lt-
yearly account OF actual receipts nnd
expenditure. At the same time
countries should he urged to supply
rs complete information as Is possible
ON the existing system Of taxation,
and amy suggestions which may np-
pear i'm each state to be useful for
the financial education OF the public
opinion of the world.
with tho aid OF the information
thus obtained the league OF nations
would he enabled to prepare PAM
phlets for periodical publication set,
ting out the comparative financlal
position OF the countries Of tho world,
and making clear the various systems
OF taxation ia force.
The conference Is of opinion that
the ntriot application OF the Principles
outlined above Is the necessary con-
ditlon for the re-establiEhment OF
public finances on a sound basis. A
country which does not contrive as
soon as possible to attain tho eXecu-
ton OF these principles il doomed be-
yond hope OF recovery. To enable
governments, however. TO give effect
% these principles, all classes OF the
Community must contribute their
share.
Industry must be so organized aa
to encourage the maYlmum produce
ton on the part OF capital n labor
az by such production aione VIII la
Dor be able 10 obtain those Improved
conditions of life which IL IL the aim
OF every country to secure for lts
people.