Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-06-25
SOME JOB FOR THE SECRETARY


SOME JOB FOR THE SECRETARY
II will be filling rather large or
der to give Secretary Mellon what he
asks, but this should be done unless
someone has good reasons promptly
advanced for not doing il. The need
of immediate and definite treatment
Of the loan situation is not confined
70 those who are afraid II the Gov
eminent presses it's claims those for
eign countries can't pay what they
have borrowed Of private individuals
or concerns. No interest is being re-
ceived On the ten billions loaned and
II Is proposed TO leave il with the
secretary of the treasury TO say when
the loans shall be paid and how long
the interest may be deferred The
President urges passage OF the meas
ure empowering the secretary TO do
this. II would seem that this is a
matter which should receive the
careful consideration of the cabinet
if not Of Congress. On the other
hand it is a matter in which the de-
cision Of the secretary Of the treas
ury would be expected TO be final.
Should the secretary be given the
authority asked for in the DISPOSE
ton Of these loans II is safe 10 say
that he will take counsel, as he
should, with the President and the
secretary of state. We have conf
dence that the President knew what
he was about when he made the rec
ommendation.
The assistant secretary Of the
treasury, Mr.. Wadsworth. speaking
before the Harvard alumni this week
had this to say Of the loan situation:
We hold obligations of the foreign
nations under three different catego-
ries; money advanced under author
ity of the Liberty Loan Acts; notes
received in connection with relief
operations and notes received for the
sale Of surplus war supplies. These
debts cannot be dealt with piece
meal One thing can be definitely
stated, namely that there is no plan
today for dealing with these debts
and further that broader authority is
needed before any comprehensive
plan can be developed and carried
through.
THE President has signifed his
intention Of asking that broader au-
thority be given to the Secretary Of
the Treasury by Act of Congress.
When such an Act Is passed, the con-
ditions which then exist in Interna-
tional Finance and the condition of
each nation which owes us money
must be taken into account.
In the past century three great
factors have entered into the deveI-
opment of civilization-steam, steel
and credit. All of these factors were
applied to their maximum capacity in
the Great War. We know today the
damage that was done by the pro-
ings and to property on land and sea.
We do not know by any means the
damage that has been wrought to the
organization of civilization by the ex-
cessive use of credit.
AN extraordinary system Of credit.
delicately balanced throughout the
world. has been built up in compar-
atively modern days. 1t was used
and abused to such an extent in the
carrying on of the war that we now
face an entirely new situation, pro-
foundiy affecting world trade and in
ternational relationships. In part or
wholly, sections of the world are cut
off by the breakdown Of their credit
machinery.
The extent Of the property loss and
consequent suffering caused by this
destruction of the credit machinery
cannot be measured in any exact
forms. The ultimate effects can
not predict.
Under the stimulus of war great
debts have been built up between ma
tons: they too were only possible
because of our credit system. A sys-
tenn built for the business operations
of peace finds itself struggling with
this aftermath of the War. The
checks and balance of foreign ex-
change would never have permitted
the development of any such un-
balanced position as we now face
The United States is in the unique
position Of owing no nation and hold
ing claims against nearly every ma
ton. A great and yet a dangerous
power.
we deal with an entirely new set
Of conditions in International FL
nance as do business men in many
business questions Of today. There is
little precedent from the past to
guide us in the future. Steam and
steel are being put to work in peace
full pursuits. Credit we have not yet
put to work as before the war and
that IL today one Of Americas great
problems"
When lower rates on the railroads