The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-12-24

low tho lead OF tho securities which
represent the ownership OF these
great national enterprises. The agree-
ment on the reduction Of naval ar
mnmentr. the settlement OF the Paci-
fic question, more hoperut signs OF
peace In Ireland ana tho completion
OF our first budget certainly furnish
an encouraging array OF favorable
items.
The strong technical position OF the
market has made II responsive to
these Influences. There h. only a
moderate line OF speculative holdings
In stocks and there are M present
few signs OF increasing thcm. The
sale last week Of S55. 600. zoo Of
twenty year New York city bonds on
a high basis in indicative OF the state
OF mind that now governs invest
mcnt capital Prom the standpoint
Of the country's business future. there
"a little basis for encouragement In
this transaction. Instead Of seokirg
industrial employment, capital II bid
ding eagerly FOR tax exemption securi-
ties. This Is "a reaction from this un-
scientific taxation policy imposed by
International Debts
During tho past few weeks there
has been a renewal Of the discussion
Of the matter OF debt cancellation az
a requisite to the working out Of the
present difficult internationi finan-
cia situation. This does not mean
only the cancellation OF tho debts OF
the European countries to America,
but also the interviewer system Of in
~debtedness % these countries 20 each
other. Whether or not a basis % ad-
hustment can he arrived al, the re-
ncwai Of the discussion has already
had an effect upon i~nternatloni OK
change. and. considered IN connection
with the debt Of tho funding hill
which has for n long time been In nro-
cess % elaboration In congressional
committees has assumed immediate
and practical Importance.
Prominent bankers and economists
who have given a great deal % time
and attention To- the study OF this
problem are firmly convinced that
a form OF settlement hat would be-
little more han n recognition Of tho
obligation would not only facilitate
the reconstruction Of business and H.
nancial matters In Europe. but also
contribute to our own economic re-
adjustment, Theoretically the debt
may be divided into two portions. that
which IL due from countries Ike
Great Britain and France. which will
AZ least ultimately be In n position
to pay, n that which 81 due from
those who are struggling Tor their
very existence, whose boundaries and
destinics are dependent upon the re-
suit Of deliberations OF councils and
commissions at strategic centors.
But a. should NOT be forgotten that
practically all OF great Britain's debt
10 US was acquired. not through the
direct benefit Of funds turned over 90
her by US. hut rather rs tho indorFer
for the other nations which were hcr
land our allies In the war. There
was a time during the progress ~
tho conflict that the United States
authorities were unwilling 20 make
any advances to some Of tho Euro
pehn countries as to whose position
and war methods, They wcro uuad-
vised unieas Auch advance were i'm
dorscd and approved by the British
authorities.
This finally developed into n system
~ making the advances Co Great Bri-
ain with the understanding that that
country would make an equivalent
loan 20 the other allies Grcnt Bri-
tnln's debt 20 us g. practically the
same as her, claims on the allies. and
the effect u The debt cancellation
would he simply 10 wlpc OF both
sides ~ Britain's ledger.