Evening star., 1920-02-08
'ECO|SM RULESU..S.
IS VIEW OF FRENCH
Americas "Disinterested-
ness" and Financial Policy
Abroad Stirs Critics.
BY PAUL SCOTT MOWRER.
(Cnbleernm to The Stnr and Chicago
Daily News. Copyright, 192O)

PARIS. February 7.-One of those
unfortunate reactions which some
times lead to grave international mis-
understandings is arising as the re-
suit of Americas supposed policy OF
Observation-Disclosures" toward the Euro
pean allies. Coming after the Senate'f
refusal to ratify the treaty of Yer
Ssilles, the Carter Glass letter oppos-
| ing an international conference fol-
the purpose of ameliorating the al
lies deprecated exchange has con-
vinced all classes here that the con-
Germs of the United States at the
present time are dictated by a mar
| row spirit of egoism.
1t is generally believed that while
| the European nations have impov-
erished themselves the United States
has enormously enriched itself
through the war. There is no popu-
lar comprehension of the real recon
struction difficulties under which the
United States is now laboring. Peo-
pie here imagine that while they are
struggling against the phantom OF
financial ruin the people Of America
are basking selfshly in the golden
glow OF enormous war profits made
at the expense of the allies.
Interpretation of Letter.
Whatever the right or wrong of the
American policy may be, some OBJ
servers here feel that a serious effort
should be made to explain to Europe
the real motives of this policy, so tina,
the growing legend of our careless
egoism may be destroyed while it is
still young. The Glass letter is inter
preted here to mean that the United
states will conclude no official ar
rangement regarding exchange, that
IT Will urge private capital to be pru-
will favor the resumption of interna-
tlonai payments in gold. Commenting
on this letter. La Liberte says:
The United States will not save Eu-
rope from the economic ruin which
threatens. 1t has told US so frankly
The Secretary of the Treasury has
made it known that no pecuniary aid
viii be accorded by the government to
the allies. who will have to get along
alone. 1t is true that the central
powers will not be treated better, and
that Austria must bargain dollar by
dollar for the credits without which
she may die Of hunger after March /.
what is the reason of this detach-
ment! First, 1t is the disillusion of
the 1dealists. who are unable to pardon
the old world for not having sufficient
ly submitted to the plan they wanted
to impose on it. In the second place il
Is the egoistic prudence Of the finan-
cters. who with eyes fixed on the ex-
change quotations. apprehend the
bankruptcy Of the European states
and have no fear of themselves suf-
fering therefrom."
Attacks Glass; Theory,
Edmond Thery, the well known
French economist, writing a leading
article in LIE Matin, particularly at
tacks Mr.. Glass idea of the resump-
ton OF gold payments. He asserts
that while the European belliEerents
are financially exhausted, the United
states. Japan and the neutral nations
Quadrupled their gold reserves during
the war. He estimates that of the
81. 900. 100000 francs 100000 600, ,o00)
OF coined gold now supposed to exist
In the world. the United States banks
900 francs $3,598. .600. .O00) as against
1896, 900. 900 francs ($779. .ooo, ,00o) in
1914. To this. he says. should be
added in computing Americas in
creased wealth the credits advanced
to the allies and the large numbers
Of securities which have passed into
American hands during and since the
war. He concludes:
III freedom OF expectation Of the
yellow metal were restored to the
belligerent European states as Mr.
Glass advises. then all the gold re-
naming in these states would be
swallowed by the banks of the cred
itor nations, and after q momentary
probation would become still worse
An authoritative statement OF the
Industrial, financial and commercial
problems with which the United
States is now wrestling would per-
haps do much to correct the bad i'm
preston which is being created
abroad.