, 1921-12-07
THE EcoNoMIc CONFERENCE.

Dispatches out of Washington of recent days carry
much more glowing ideas of an economic confer
ence" than is shared by conservative officials con-
cerned in the affairs of the present administration. 1t
is esen difficult to discover official authority for the
statement that the United States will initiate or par
teipat largely in any such conference, unless plans
are developed, which now may be considered simply
~ embryo, subsequent to the present conference on
limitation of ornaments.
Some confusion of mind may exist among writers
With respect to the conference of bankers relative to
the exchange situation which is to occur shortly in
Europe. This is hte only economic conference" of
which anyone has any knowledge and which has been
called for a limited purpose. The transactions Incl
dent to the payment of PREPARATIONS by Germany have
been the hugest in the history Of mankind; and as
the payments are made in the currency of the coun-
tries receiving them, naturally violent fluctuations &C.
cur, more especially in France, Italy and Belgium,
every time the reparations money is distributed. With
n view to stabilizing exchange as much as possible it
has been decided that representatives of the banks Of
issue Of England, France, Italy, Belgium, and posi-
bly, other countries, shall meet in Europe and address
themselves solely to the task of improving exchange
conditions as far as possible.
This is the only purpose of the proposed confer
snce, nor can the ~conferees do much more than make
such representations as they may please to the repa-
rations commission, which, of COURSE, is at liberty to
accept or reject them. Nevertheless, 1t is evident that
the question of monetary exchange, resting as it does
upon an unequal exchange of goods between the va
rcUs countries, involves very many fundamental con-
siderations. and the discussion could be carried to
almost any limit. But so far no proposal has been
made except that relative to this meeting of bankers
and for the specific purpose already stated.
The United States has no official concern with repa-
rations and it would appear that a broader program
would have to be presented IL this country is to par
ticipate to any extent in an economic conference"
While it is true that the United States inevitably
must be concerned with any great movement intended
to improve world conditions, it is of paramount i'm
portance that our government shall first be empowered
to set its domestic house in order. The first step
naturally will be the creation by congress of the
world war foreign debt commission provided for in
the administration bill which already has passed the
house and awaits action in the senate.
Various foreign countries with which we were as
socated in the war now owe the United States some
thing over $40, 900, 900, 900, or an amount represent
ing a per capita indebtedness to the citizens of the
United States of about 500.
While doubtless our debtors would be delighted if
America should cancel part or the whole of this debt,
no intimation that such procedure is desired ever has
been made, officially or otherwise. It may be need
less to say that at present no suggestion of such can
collation. would be received favorably by either the
administration or the American people, despite the
impression, which may be regarded as a practical GER
tainty, that some of our foreign debtors will be I'M
able ever to meet their obligation In full.
If there is to be an economic conference of world
scope it would be desirable from every aspect; but
since We are practically the only solvent nation in the
group of larger powers and the only one able to be
of real use in any plan for betterment of world fnan-
cial and economical conditions it would be a wise plan
to get our own economical situation in better shape
before We devoted much time to revising and read
justing the affairs of the world.