Evening star., 1921-11-29
!. S. TO JOIN HANDS
|. IN WORLD STEP TO
STEADY EXCHANGE
Most important Financial
Move Made by Allies Since
the Armistice.
SUCCESS HOLDS KEY
TO BUSINESS REVIVAL
Conference to Be Held Abroad Soon
for Investigating Entire
Situation.


for Investigating Entire
Situation.
By DAVID LAWRENCE.
America has decided to join hands
! with the other powers of the world in
an effort to stabilize international
exchange.
The United States government has
accepted the invitation Of the allied
governments to be represented At a
conference to be held abroad in the
near future, at which the whole ques-
tion Of exchange will be examined.
This is the most important step in
! the direction of financial readjust-
| ment which has been taken since the
armistice. II successful. the move
ment may have far-reaching effect
upon the revival of business in
America and particularly In the
restoration Of markets for the sale Of
American agricultural and manufac-
tured products.
| Effort Over Long Period.
For long time there has been a
persistent effort on the part of Eu-
ropean countries to elicit Americas
interest in an international financial
conference. There has even been a
suggestion that the question OF the
war debts Of the allies might be dis
| cussed at the armament conference
at Washington, but this idea has
been abandoned.
The movement to reconstruct the
worlds finances will be slow and
evolutionary one and will not be con-
| fined to a single conference. but to a
series Of meetings which may take the
better part Of year. The whole thing
Is the outgrowth Of the recommenda-
| tions made at the last international
conference at Brussels. but it now has
F! the moral support of the United States
government. which means that more
results will be accomplished.
VIII BE Observers.
Just who the American representa-
tives will be Is not known. but un-
doubtsdly yin be some banker or
bankers Of profnfnesS<. They willsbe
stat the nature OF observers and wiz not
be authorized to conclude any agree-
ments binding the United States. but
will explore the whole neld and bring
back to this country recommendations
which might be laid before American
| bankers In a series OF conferences
such as President Harding held at
| the White House last spring. When
there is agreement among American
| pursued there probably will be a
| final conference In Washington. at
| which the whole fiscal situation, OF the
| world will be reviewed and definite
plans laid for financing. the trade OF
| the globe. -
Americas part in the, deliberations
will hardly be passive. even though
| her delegates will not have the power
to commit this country to any ded-
mite plan Of action. The Harding ad-
ministration intends to throw the full
weight of Its influence on the side OF
| been urged for many months by lead
| ing bankers as we'll as by such in
fuential organizations as the United
| states Chamber of Commerce. So vital
has the question of international
finance become that men like Frank
i shall Field & Company. who have
!! fust returned from Europe, are in
| sistinR that chaos will follow II
America doesn't save the financial sit
uation abroad.
CableSrams Tell Of Decision.
Along this line cablegrams from
Paris today tell Of the decision Of the
reparations commission to appoint a
committee Of bankers and experts in
international. exchange to devise
means for preventing q shock to ex-
change rates whenever Germany
! pays or fails to pay her regular repa-
ration payments. Although the
United States doesn't receive any rep
aration money. nevertheless this
country Is deeply interested in inter-
/ national exchange and, therefore,
America will have her observers at
| the conference. to be held in Paris
! month, which is described in the
! Paris press dispatches.
! granted that the Harding admins
| tration has embarked upon policy
| Of cooperation with other govern
! ments not merely for the reduction
| of armament burdens and the settle
/ ment Of such political matters as dis
| turh the peace of the far east, but
i financial questions which. have been
hanging in the air ever since the war
! ended and which admittedly have
done more to disturb business condi-
tions everywhere than any other
single factor.
The drop in exchange has prevented
America from selling her goods abroad.
All sorts Of artificial measures to re-
fieye exchange have been suggested, but
! the tendency now is to avoid expert
mental measures and go to the root
| of the trouble. The theory upon which
! the next conference will proceed, it Is
Suggested by persons familiar with the
administration view. is best expressed
| in the recommendations OF the Brus-
f: sells conference itself, which said:
! Reeoxnises General Improvement.
| '.The conference recognises that any
general improvement in the situation
requires considerable period Of time,
| and that, in present circumstances it
! Is not possible for certain countries to
| restore their economic activity with
out assistance from abroad. This as
i sistance il required for periods which
| exceed the normal term of commercial
[! operations.
..rhis assistance. however. can only
! be effectively accorded to countries
| which are prepared to cooperate with
! one another in the restoration of eco
| nomic life, and to make every effort
to bring about within their own from
| tiers the sincere collaboration Of all
groups Of citizens and to secure con-
| ditions which give to work and thrift
| liberty to produce their full results.
."The conference does not believe that
apart from the particular decisions die
nted by national interests or by. con.
siderations Of humanity. credits should
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