The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-10-29
EUROPE MUST
START WORK
ON WAR DEBT
Slow Action Of Foreign Pow
ers in Fixing Indemnity
Delays Prosperity Amer
lea Restless.
FOREIGN TRADE HURT
BY MARK SULLIVAN

representative of British bankers who
is holding informal conferences with
American bankers and with American
officials looking to the possibility OF
an international institution similar to
what is known as the Tor Meulen bank
plan, for the direct or indirect stabil-
izing of exchange. Probably 1T Is the
presence of this agent that is respon-
sible in part for the constantly re-
curing talk about the coming Wash
ington conference taking up financial
matters"
No such relation actually exists.
There is no intention of taking up IL
nancial matters at the coming arma-
ment conference. The two things are
wholly seperate. The present financ-
ial proposal from England is aimed
primarily to interest American bank
ers and business men rather than the
American government.
Business Waits on Exchange.
1t is true that our system of statu-
tory control of national banks through
the federal reserve system together
with our present policy of maintain
ing an informal contact on the part
of the government with any foreign
enterprise into which our private
bankers may enter, makes 1t neces-
sary for such a proposal as the pres
ent one to come ultimately to the no
tice of the federal government.
The proposal appeals to US FAVOR
ably. Our import and export business
is directly dependent to a great de-
gree on the stabilizing OF exchange and
our domestic propriety is ultimately
dependent upon it.
In fact. the progressive breakdown
of international trade is the most con-
spicuous single factor in the INDUS
trial depression from which America
now suffers.
America Must Take Part
In a speech which the controller OF
the currency, Mr.. Crissinger. made
before the New York State Bankers
association as long ago as last June,
he said in speaking of similar pro-
posal, 81 may frankly state my belier
that the efficacy of international CO.
operative measures to deal with these
matters must in large measure depend
on the hearty participation of the
United States.
my present views have been forced
upon me by study and observation OF
the whole link of financial and eco.
nomic developments and of the essen
tial unity of the worlds business fab
rie People who want to feel gener
Gus may urge US TO this kind of co
operation on the ground that we will
be helping others. | do not need thai
Injunction. | can urge this in all sin
cerity from the entirely selfish motive
of helping ourselves. But I realize
that in helping ourselves we also are
helping others"
Exchange is Indication
While America has this friendly
and helpful attitude toward any and
every sound proposal for restoring
normal conditions in international
trade, it is also true that there are
certain fundamental factors that can
not be escaped. International ex
change is merely barometer. 1t re
fleets causes, but is not in itself {
cause.
BY a closer analogy, international
exchange is like spirit level tha
measures the relative height of the
amount of work and business beins
done in different countries. You cal
no more cure fundamental causes BY
attempting to stabilize exchange thai
you can cure a fever by tamperins
with the figures on the thermometer
The fundamental causes of Europe!
inability to buy from US, of fluctuation.
of Europeans currency, and of tht
paralysis of international trade, lie il
the improper courses now being pur
sued by several European govern
ments The faulty things which thes'
European governments are doing arr
these: They are printing a steadil.
increasing quantity of paper currency
they are spending large sums on main
tanning armies and they are failing t.
keep their expenditure within thei
income.
Salvation From Within.
There is nothing more obvious II
the world than the fact that Americ;
cannot prevent these European govern
ments from doing these things Onl,
the governments themselves can d.
that. Until the governments at faul
are willing to take the necessary step
towards sound business, any help tha
America can give and any interest tha
America can take can only be largel
academic.
complete list of the causes o
paralysis in international trade woul
include one more factor, namely, tn
failure of the European allies to fl
the amount of the German reparation
at a sum which the business men o
the world will see is reasonable ais
long as the real amount of the GermaI
reparations remains unfixed. this fac
tor will have an adverse effect upo
international trade in a multitude @
ways.
Reparations Plan Poor.
This factor also is one which tn
United States cannot cure. 1t can onl
be cured by action on the part of tn
European allies in taking up once NOR
the subject of German reparations an
fixing them in the way they ought t
have been fixed in the beginning.
Meantime, Americas prosperit
must continue to suffer from cause
over which we have no control.
is true there is an alternative col
stantly urged by many. That alterns
tive is to go backward a certain di.
tance from our present isolation fror
European affairs, re-enter the repars
tions commission and take upon oul
Continued on Page Fourteen)