The New York herald., 1920-01-30
U. S. WON'T LOAN
TO AID EUROPE,
GLASS ASSERTS
Government to Go No Further
in Extending Credits Abroad,
He Says.
CAN'T CANCEL OBLIGATIONS
European Nations Must Solve Own
Problems, His Message to the
Chamber of Commerce.
CAN'T CANCEL OBLIGATIONS

WASHINGTON, D. C, ThurSday.-The
United States Treasury does not look with
favor upon certain features Of the pro-
posed international conference. recently
called by coterie Of nationally known
financiers and commercial leaders in an
effort to lead the world out OF the finan-
cial and commercial chaos into which II
was dragged by the war.
Secretary Glass declared tonight in a
letter to committee Of the Chamber Of
Commerce of the United States, which had
sought a government expression on the
meeting, that such conference would
serve "to cause confusion and revive hopes
doomed to disappointment, OF further gov
ernment loans"
With a note Of some finality Mr.. Glass
set forth the governments policy with re-
the Treasury us opposed to government
control over foreign trade and finance. and
even more opposed to private control. IT
is convinced that the credits required for
the economic restoration must come
through private channels" In this respect
this government fears the proposed confer
ence would mean many Europeans would
a ssume that the United States was about
to shoulder moro of their burdens, Mr.
Glass explained.
Must Understand Limits.
'If the Chamber OF Commerce OF the
United States considers it advisable and
desirable to designate representatives to
attend an unofficial conference" Mr.. Glass
said, 'the Treasury Department does not
cffcr objection. provided the scope and
character and limitations of such con-
ference, as well as the impossibility OF
United States government action, are
clearly understood.
But there are numerous suggestions
contained in tho memorial sent broadcast
by the leaders which are clearly not ap-
propriate for consideration, such as can
collation. of some. or any, obligations OF
foreign governments held by the United
States, or even the deferring of obligations
Of foreign governments to liens created in
favor of loans hereafter made for recon
struction purposes
Mr.. Glass directs attention to differences
which he discovered in the formal call for
the conference as issued here and In
several foreign countries. The memorials
circulated in Europe, Mr.. Glass said. ap-
parently advocated further government
financial assistance and requested the re-
sentatives to those international meetings
which thus would accord 1t an official
character. This, however was omitted
from the document circulated in the United
States and made public in New York on
January II.
Europe Must Solve Problem.
The situation facing Europe, the Treas
ury Secretary said. was one to be solved
by the activity of those nations and their
nationals and was not for settlement by
any world wide plan, such as the proposed
international conferences contemplate.
From the moment of the cessation OF
hostilities," Mr. Glass added. 'the Treas
ury of the United States has pursued a
policy of looking toward the restoration as
promptly as possible of normal economic
conditions. the removal OF government
control and interferences and the restora-
ton of individual initiative and free COM
petition in business. The Treasury long
since. with the cooperation of the Federal
Reserve Board, removed the embargo on
the export of gold, thus enabling Ameri-
can citizens and, indeed, the nations OF
the world, to the extent that they find
credit here, to finance their purchases
throughout the world in cash.
Right or wrongly, different policy has
been pursued in Europe. European gov
ernments since the cessation OF hostilities.
have maintained embargoes upon the ex-
port of gold. The ratification of the ex-
changes now adverse to Europe lies pri-
marily in the hands of European govern
monts. The normal method of meeting an
adverse international balance Us to ship
gold. The refusal to ship gold prevents the
rectification of an adverse exchange. The
need of gold embargoes lies in the ex-
pended currency and credit structure OF
Europe. Relief would be found in disar-
mament, resumption Of industrial life and
activity and the imposition of adequate do
nestle loans.
"rhe American people should not, In my
opinion be called upon to finance, and
would not in my opinion. respond to a
demand that they finance, the require
ments OF Europe in so far as they result
from the failure TO take these necessary
steps for tho rehabilitation OF credit"
Mr.. Glass characterized as "impractic-
able" international bond issues. guarantees
and international measures for stabiliza-
tion of exchange, which were to be taken
up at the conference. Such plans never
would prove workable. he declared, so
long as there exist inequalities in taxation
and differences in the fiscal policies OF the
Continued on Page Two. Col. Two.)