Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-11-29
NORRIS DEMANDS
ALLIED DEBT PLAN
Federal Reserve Bank Governor
Says v. S. Should Fix
Policy at Once
E U RRoPE is UPSET

2 announce. it's policy regarding the i'm.
mense debts owed il by the allied ma
! tons. lieorg" W. Norris, governor Of
{ the Federal Reserve Bank of Phlla.
deIphia, today told members Of the
Bnndsm"n : lHb in the Hotel Adclpha.
Various European Governments are
!, struggling with political and economic
difficulties, compared to which our
troubles are summer holiday Mr..
Norris said.
while our people will differ as to
Just what ought 20 be done. there will
probably be a pretty general agreement
thar We ought not 10 press, harass or
emOaraSs such II our late Allies ms are
our present debtors. but what they need
10 know for the balancing of their gov
crnmcntal budgets and for the making
Of their general financial plans is what
We are willing 10 do about it, and we
ought 70 give them q statement on this
subject st as early date as possible
Mfr. Norris urged the ipmortancc of
tho most careful study ofg tho financial
situation by all the financial interests
u 'Ho country. America T. exports.
which reached S0o5. .0Ou. 900 in June Of
1912, dropped 10 S63O. 900 600 I'm June.
700. and 20 $40 900, 900 In june Of
this year.
"a large volume OF exports" 10
said, 'is an essential requisite ot real
and substantial prosperity in this
country, not only for our industries but
tor our great agricultural population
We cannot have this large volume Of
exports unless the people If the world
can ship Us goods IN return, and can
afford 10 settle the large balance OF
trade IN our favor. witch will always
. exist. no matter how great our imports
may be.
These conditions compel US 70 be
Interested in our tariff policy, in the
s'ahilizatlon OF political and industrial
conditions in Europe, in the adjust
Tnent Of the Indebtedness Of European
governments 70 the Government Of the
: United States. and 70 the restoration ~
something Ike normalcy in exchange
rates. European stocks Of gold have
been depleted almost 70 the point Of
al irredur'bie rllnlmune Practically
| speaking, there is no gold left in Eu-
rope, except, one, the metallic reserve
W the great banks of issue; two, hoard.
: od gold, little more Of which can be
e dragged from It's hiding places; and,
= three. an unknown amount Of Russian
e gold some OF which may yet find its
way 20 this country.
1t is therefore manifest that it Is
n going to be difficult for Europe TO settle
i ordinary trade balances with US, even
. with The help Of continuing American
investments in foreign securities. For
= them 10 not only settle In gold these
= trade balances, but also pay us any
I. th!ng like ten billions Of governmental
II indebted edness, Is utterly out Of the Ques-
!, ton. It is beyond the bounds OF poss! =
q b!lity, and should not for q moment be
: considered by any intelligent man. It
, IS capable OF mathematical demOnstTa :
p: ton that there !s nothing like enough
' gold In the world 70 do Il. II is q
;, serious question whether they can be
r allowed or encouraged 70 export 20 US q
. sufficient amount OF goods 10 balance
b their imports from us. without serious
g, results 70 our American industries
, For them 10 export sufficient amounts
y: Of goods to not only balance their I'M
ports but 10 discharge their governmen.
: Jnl obl!ga tions, would spell ruin 70 most
y OF our industries.
= what, then. ought re do about
Il these foreign debts? can ask that
d question, but I am not prepared tc
answer r. Congress has passed bu
creating q commission Of five, author
izlnE that commission tsUbjcCt TO th'
Il approral Of the Presid"nt> n refund
III or convert and 20 extend Obligations Of
n any foreign government, and receive
Is bonds and obligations Of any foreign
le Govprnment in substitution for the
l. bonds and obligations Of such foreIg Igr
- Governments now held. II is expressly
ot provided. however, that this Act shall
III nor BE- construed 20 authorize tho eN'
change Of bonds or obligations Of any
y tore lgn Government for thorc of any
sg other foreign Government, or the car
" collation. Of any part OF such indebted
se ness except through payment. thiuh
J. thar II is rNgrettablo thai tbc n"Gotta'
n tions on this subject should have beer
put in th" hands OF a commission. in
u stead Of being intrusted 10 the Secretary
y of the Treasury, and it is still moro re.
grettable that the commissions hand:
should have been tied by n restriction
such rs this.
1--WE should remember that all these
' foreign obligations represent money
loaned after we went into the var, and
most OF IL when the supplying Of food
y and munitions was all that W" were
y prepared TO do; that rono OF this money
= wont ou' Of the country, hut was oil
= paid out for supplies boGgt: here; that
J, the transaction amounted 70 our GoY.
Id erument pevtng our citizens for sJDrl"'
8 furnished 70 our Allies, those Allie.
agreeing 10 repay these advances to "u;
y Government a. some time IN the futur"
N II those countries had said at tina,
N tin1h "ws must have these things, ant
(. We nave no money 10 pay for them, OU'
il you viii furnish +hero 70 uFe wc vii
he keep on fighting until YOU are ready e
OF com" in, would We not willingly have
~ made Ourselves parties 10 thai arrange
Vi ment? The Indebtedness, therefore
~ stanG~ on Il very l.ff"rcD' 0lauo from
p an ordinary lOHu 20 dobI"r W hn has
contracted the loan 'or liz own cIcm
siv" benefit, and IN Il" course Of ar
ds ordinary commercial transaction. Ir
n the case or Grca, Britain. there - az
no additional equity which should not b'
20 overlooked. 4 part fGrcat Britain
= Indebtedness 70 us practically represent,
20 supplies which they bought her" for tn,
n benefit If France and Italy, and whilt
~ Great Britaiu owes Iz approximately
four and quarter billions, Trance arc
5c ItaIy "w" her nWroyuuH'"'r Jour and a
w. half hiIIj"r.-. T'">" gro far'e " 3tru ",
~, shoGd n,,p IN m.ud Wgon N, r"u,tde
y Or ,u.rY., this S.'latt"N.
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