Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-01-30
Continued From Page ~

ternational conferences contem-
plate.
What L. $. Has Done.
From the moment of the cessa-
ton of hostilities," Mr. Glass added,
the treasury of the United States
has pursued a policy of looking to-
wards the restoration as promptly
as possible of normal economic
conditions, the removal of govern
mental controls and interferences
and the restoration of individual
| initiative and free competition IN
business. The treasury long since,
with the cooperation of the feder-
al reserve board removed the en-
| barge on the export of gold thus
enabling American citizens and, in
deed, the nations of the world, to
the extent that they find credit
here, to finance their purchases
throughout the world in cash.
| Rightly or wrongly, a different
| policy has been pursued in Europe.
| European governments have main
tanned, since the cessation of hostli-
tiles, embargoes upon the export of
gold. The rectification of the eX-
! changes now adverse TO Europe lies
principally in the hands of Euro
| pean governments. The normal
method of meeting an adverse in
ternational balance, is TO ship gold.
The refusal to ship gold prevents
! the rectification of an adverse eX-
change. The need of gold empar-
goes lies in the expanded currency
| and credit structure of Europe.
| Relief would be found n disarma-
ment, resumption of industrial life
and activity and the imposition nf
adequate taxes and the issue q.
IL dequate domestic loans
Shouldn't Look To America.
1.-The American people should
not, in, my opinion, be called upon
to finance, and would not, in my
opi1ion, respond to a demand thAt
they finance the requirements Of
J urope insofar as they result from
the failure to take these necessary
steps for the rehabilitation of
credit"
Mr.. Glass characterized as 'im-
practicable international bond is
sues, guarantees and international
measures for sterilization of ex-
lchange which were to be taken up
lat the conference. Such plans
never would prove workable, he
| believed, so long as there exist in
leaualities in taxation and differ
ences in the fiscal policies of the
countries involved. When these
inequalities and differences no
longer exist, reasons for the inter-
national measures also will have
Vanished he asserted.
| 1t would be folly and I'M
lthinkable" to call upon tile Amerl-
can people to remedy the present
inequalities in exchange. These
Inequalities, means for alienation
of which formed one of the princi-
pal bases for the conference, We're
born of q policy of taxation less
drastic in the European nations
than here, Mr.. Glass said.
THE remedy for the situation Is
to be found, not in the manufac-
ture of bank credit in the United
States for the movement of ex-
ports" Mr.. Glass asserted. This
process already has proceeded too
lfar. The remedy lies in the actual
movement of goods. of investment
securities, and, in default of goods
fr securities. then in gold from
Europe; and in order that such
securities may be absorbed by in
lvestors, our people must consume
Hess; must work and save
The Exchange Puzzle.
Relative to the solution of the
Exchange puzzle, Mr.. Glass warned
that this country could not con-
tinue to extend credits on suffi-
cient scale to cover the present
swollen trade balances while pay
ing cash (gold and silver) to Latin
American and Far Eastern traders.
What the European nations need
now, Mr.. Glass explained, is work
ling capital rather than so much
hank credit" Then, as a solution
for the intricate situation--and
With which It is mentioned incl
Identally the proposed conference
would be able to do nothing more
than discuss-Mr. Glass offers the
following:
'Tf the peoples and governments
tof Europe live within their in
comes. increase their production as
tmuch as possible, and limit their
imports to actual necessities, for
| eign credits to cover adverse bal
lances would most probably be sup
lplied by private investors and the
demand to resort to such imprac-
| ticable methods as government
lloans and bank credits would cease.
There is no more logical or
practical step towards solving their
Town reconstruction problems than
for the allies to give value to their
Indemnity claims against Germany
| by reducing those claims to de-
Terminate amount which Germany
may be reasonably expected to pay,
land then for Germany to issue OBJ
Legations for such amount and be
iset free to work it out. This would
increase Germany's capacity to
pay, restore confidence and inn
Grove the trade and commerce of
1.-THE world. The maintenance Of
Iclaims which cannot be paid causes
apprehension and serves no useful
purpose.
| Cash Advances and Credits. !
| 1.-THE American government has
Idone all that it believed advisable
and practicable TO aid Europe" Mr..
EGlass said. He pointed out that
since the armistice was signed the
II easury has made direct cash adj
vances of $2,3S0, 1871 600 to the al
HE'D governments; it has made
available $736, $4,000 to those
governments through the purchase
of their. currencies in covering our
expenditures in Europe; it has sold
Through the army and navy APP
lproximately s6S5,000 in supplies on
credit and has extended approx
nately 100000 in relief. In ad-
dition, he explained. there has been
allowed to accrue unpaid interest
aggregating $324,211,000.