The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-10-07
FINANCIAL EDITOR NEW YORK TIMES
REVIEWS EUROPES ECONOMIC STATUS
BEFORE AMERICAN BANKERS ASSOCIATION

Los ANGELES, Oct. 6.-IIope of
Elropc's complete economic recon-
'tructon. judged by the lessons of
history, was expressed here today
~ Alexander u. Noyes financial ed
tor Of the New York Times. in an ad-
iress before the convention iof the
American Bankers Association. The
Judgments of finmciers and other bus
ness men who have been predicting
u ruined Europe" or bankrupt
World" he said, were distorted and
lot only misread economic history but
misunderstood the human element in
economic progress and ignored certain
'acts i'm European finance of this
fCry year"
Situation Misiudged i'm 1919
"The country and its banking inter
'sts know now and very much to their
.ost" said Mr.. Noyes. chow complete
' the whole situation was misjudged
n 1919. an Illusion based ON the as.
sumption that there was no limit To
he rise OF prices ana that an en-
Irm0usly increased trade with Europe,
Asia, and South America could he con
inued indefinitely On the basis Of
hose prices and of Il prepostcrous
nflaion of credit at American banks
But if the business community was
.otally wrong in its view of the
worlds outlook when every one was
optimistic two years ago, how can we
20 sure that the almost unqualified
hoc pratafla1
ecently has any better justificationY'
rhe speaker said such. ill-judgment
$ characterized by, absence both OF
historical perspective and insight into
he forces which make for economic
progress.
All Have Same Experience
Despite the fact that Germany and
Austria have been notorious sinners
n their unprecedented paper cur
cency initiation, indicating. apparent
economic chaos, the speaker pointed
)ut that the United States, France and
other coutries had passed through sim
lar postwar exptriences and had re-
covered.
1T is a strong perversty which has
blinded so many people to the fact
hat these very states of ours, now
II the American union declared the
speaker, "were almost the first of al
o try the paper experiment of Ger
many and Poland and to repudiate the
Daper >when it had sunk to nothing
We know their subsequent history
under the sound.money and the sound
government of the American constl
ution. The 40, 900 900, 900 francs of pa
Der money issued by revolutionar!
France was entirely repudiated, ye
France under the sound-money govern
nent Of Napoleon. less than 10 year
ifterward became the most powerful
md prosperous nation Of Europe. Tn
'eal wealth of a nation Its in it
natural resources and the energy o
Is people. A nation can not be eco
1omically ruined so long as it cor
.inues to possess these resources bu
he facts do not prove that a gov
. 4rnment can resort TO repudiatio
without forfeiting its right to COVER
md they do not in the least set
pattern whose imitation great Euro
pean nations such as England, Franc
md Italy could consider
4 Change Began in 1921
A very notable change began
1921, Mr.. Noyes said, when Englan
ook the first steps to gain contr'
If it's wartime currency notes. Til
minimum of S6S ,20O.O OOO pounds on
standing in December 1920. he dc
Jared, had been reduced to s3l6,0OO
200 pounds or nearly Is per cent. TIL
paper money issues of the Bank {
France which in November, 10.
we're 80 500. 100000 francs had been r
luced $500 100000 francs within
months. considering how gradual Il
process of currency contraction a
ways had been in the past, the speal
~ expressed the opinion that 1t
"a very remarkable achievement.
Does anyone seriously suppose