The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-10-07
lob OF PAYING
FOR THE WAR
Belief of It's Impossibility
Has No Foundation
in History
RISE TO EMERGENCY
Rebound From Prosperity
Will BE Greater Prosperity
Than Ever Before

los ANGELES, oct. 6.--lIope Of
ruropc's complete economic recon-
,ructlon. judged by the lessons OF
hlstory. was expressed here today
hy Alexander u. Noyes. financial
EDITOR Of the New YORK Times, in
a. address before the convention of
,he American Bankers association.
nh judgments OF financicrs and
a,bcr business mon who have been
n,cdicfinE "a ruined Europe" or a
abankrup, world" he said, were dis
, ,ortea and not only mtsrcad eco
noris history but misunderstood
"a. human element I'm economic
b ,,,... ..as and ignored certain facts
3 in Eu ...-.1 finance OF this very
year
The country and it's banking in
tcrcgts know now, and very much to
their cost" said Mr.. Noyes, how
completely the whole situation was
,isiudrod in 1919. an Illusion based
On the assumption that there was
M limit To the rise OF prices, and
,hat an enormously increased trade
With Europe, Asia and South Amer
ica could be continued indefinitely
on the basis OF those prices and OF
A prepagtprous initiation of credit at
American banks. But II the bust
ness community was totally wrong
IN, IT'S view OF the worlds outlook
when every one was optimistic two
Years ago, how can we be sure that
the almost unqualified pcssimism
that has prevailed more recently has
ANY better justification The
tpeakcr said such ill-judgment is
characterized by absence both of
historical perspective and insight
into the forces which make for eCo-
nomic progress.
Despite the fact that Germany
and Austria have been notorious
sinners in their unprecedented
paper currency initiation, indicating
apparent economic chaos, the
speaker pointed out that the United
States France and other countries
had passed through similar postwar
experiences and had recovered,
Fnllacy of Paper Money.
1T Is strong perversity which
has blinded so many people to the
fact that these very states of ours
now IN the American union" de-
clarcd the speaker. were almost
the first Of all to try the paper ex.
pertinent OF Germany and Poland
and to repudiate the paper when il
had sunk to nothing. We know
their subsequent history under the
sound money and the sound govern
ment of the American constitution
The 10000, ,000,0 900 francs OF paper
money issued by revolutionary
France was entirely rcpudiated, yet
France under the sound money gov
years afterward. became the mos
powerful and prosperous nation OF
Europe The real wealth of a ma
ton lies In its natural resources and
the energy OF its people. A natior
can not be economically ruined 81
long as II continues to possess thes,
resources but the facts do not prov,
that a gvernment can resort to re
pldlatiou without forfeiting is right
10, govern and thcy do not in th'
least set a pattern whose imitation
great European nations such as Eng
land, France and italy could con
Sder."
. Does anyone seriously suppose.
he asked that II n sponge wer'
passed over the paper obligation
OF revolutionary Russia--nominuil,
and II the present gloup of fanatic
" Moscow We're replaced by a san
and intelligent governm ant, Russit
would no. be one OF the great eco
nomic powers of the modern world 4?
Restoration of Credit.
Mr.. Moves said that the vital ques
pon today Is the rcadjustment. tn
7hahiiitation and the economic re
construction of those half doze'
european nations on whom fell tn
tull shock and strain OF four year,
conflict" He said that no NOR
difficult and battling problem ha
heen presented in at least a centur
oui that the restoration Of nations
credit, the resumption of gold pay
ments and the bringing Of intcrna
uonal exchange to normal hasi
are possible Of achievement. Judge