The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-12-23
OWEN SEES
HOW TO PUT
Cash right
Senator Would Establish
American Reserve Bank
in Europe
ny ROBERT l.. OWEN
United States senator PROM
oklahoma


oklahoma
WASHINGTON. Doc. ss.--Intcr.
national exchange can he corrected
Before the war fluctuations OF ex.
chanEe corrected itself when "
reached the gold shipping point
This remedy is not available now
because European countries have not
gold and their production is below
normal
The balance OF trade In our favor.
which means commodity balances. Is
very small factor but the depre.
citation Of European currency Ia the
overwhelming controlling factor.
This j. perfectly obvious and is made
manifest by the published exchange
rates.
can see clearly remedy for this
condition in Europe.
The European people arc not
bankrupt. Their material indus
trial and moral values remain In
spite OF the embarrassment OF Euro. l
pesn governments and deprecated I
currency and bonds.
BONDS OFFSET
LIABALITIE>
But the European people own .
these bonds and currency as assets 4
offsetting the government liabilities. /
Their productive power remains. I
What they need Is q sound currency
a
merchants can predicate their con
tracts A sound currency can be
given them.
For example. German currency.
~ present 100 billions Of marks
worth is OF a cent apiece. Is worth
IN gold $3.50. 900. 900.
Researches Of the paper money
ISSUES Of Germany or OF any other
European government. the federal
reserve bank system could be cx.
tended by establishing In Europe a
$500. Goo 900 gold taken from cur
surplus Idle gold in America and
having the federal reserve hank
issue federal reserve notes with n
gold reserve Of Is per cent. hacked
with short-time bills Endorsed by re-
xponsibte banks and secured by
staple marketable commodities up 10
100 per cent OF such notes.
TWO BILLION IN
GOLD CURRENCY
This would provide Europe with
a possible $4,000. 900. 900 Of gold cur
rcncy. The United States could
further strengthen this bank by
providing that the European coun.
tries should pay the interest on the
ohitsations due the United States
into this hank 70 be used In further
financing Europe and supplying this
currency.
These notes could be made re.
deeuahle IN gold only when redemp-
ton In gold was called for by the
member hanks permitted 10 transact
business with this federal reserve
bank.
Cresharn's law would no, apply
to such special gold dollar currency 4
because there would be no real com.
petition between this currency and
the deprecated pounds. francs. lire.
marks or roubles. The manufaetur.
ers and merchants OF Europe imme-
diateiy would be given a sound
medium OF exchange.
European industry would spring
info new life 70 the very great ad-
vantage OF Europe and America.
Europe would be assisted IN a rapid
restoration Of its productive powers
and be able TO repay America In due
season every dollar that Europe owes
and without any impairment OF self
respect Of European nations.
LOW INTEREST
RATE POSSIBLE
I think America should be willing
to make a lower rate OF interest on
the amount due by Europe than ths
high rates at present prevailing. In
two years the normal rate OF inter.
est on credits VIII undoubtedly come
hack 20 where IL was before the war
approximately per cent
And the United States would be
tustified In agreeing that the in