The New York herald., 1922-04-06
u. S. and Britain Will Have
Paralyzing Preponderance
of Mobile Wealth.
CAN SHAPE WORLD POLICY
Plans for Reducing Armies,
Balancing Budgets and
i Restoring Trade.
Special Gable to THE NEw York HERALD
Copyright, 1899. By THE NEw YORK HERALD


Special Cable to THE NEw YORK HERALD.
Copyright, 1899. BIZ THE NEw YORK HERALD.
New York Herald Bureau,
London, April 5.
On the eve of the Genoa conference
Great Britain has made the first open
diplomatic move toward a new en-
tente-an Anglo-American under
standing based upon a common eco
nomic conception of the worlds fu-
ture. That is the Interpretation placed
upon Great Britain's note to the AL
lies, warning them that she reserves
the right to collect the interest on war
debts owing her. In diplomatic quar-
ters it is taken as showing how Prime
Minister Lloyd George and his closest
advisers view Americas final decision
not to participate at Genoa.
According to information given to
THE NEW YORK HERALD correspondent
of this Lloyd Georgian policy, the
Genoa conference becomes subsidiary
to these developments, while any otEer
international alignment sinks into the
background.
The United States and Great Brit
ain, within definite number of
months-a very few months-will be-
come the worlds only two creditor
nations. In the language of post
war diplomacy, or at least in the sense
used in the present instance. an en-
tente means a common economic con-
ception of tha tworfd's future SO guid-
ing American and British policies as
to make a formal alliance unneces-
sary. These two nations will possess
a paralyzing prcponderance of the
worlds mobile wealth, without which
fighting ships and fighting armies
are useless.
Points World Prosperity.
The policy they will press. as en-
bodied in the results OF the Washington
conference and the records of Congress
and Parliament will be the reduction OF
armed forces. the balancing OF income
with expenditure, the defiation OF cur
try, saving and taxing back TO nor
malcy" Furthermore, Great Britain's
reminder to the Allies Is not based upon
any hands across the sea" sentiment
but upon the hard, cold fact that the
American Commission authorized to take
up the funding of allied loans will deal
first with Great Britain.
Great Britain Is ready for the deal.
1t expects to fund the entire $4,000
900 900 debt to the United States in
bonds, with a definite and fair rate of
interest and definite and fair sinking
fund, adequate provision for which will
be made in the British budget for the
next and ensuing years.
Those bonds will be marketable in any
place in the world In effect, they will
wipe out Great Britains debt to the
United States.
Referring to the British rate of ex-
change on New York. as compared with
any other allied rate. one authority de-
clared to-day that It was the truest
measure OF the potentiality OF any other
debtor country settling its obligations
and entering the creditor class with
Great Britain and the United States.
Hence 1t was that the officials OF the
Treasury here to-day insisted that the
memorandum to the Allies was not a
demand for interest payment but a
warning that payment could b. de-
manded when the three year interest
postponement expires on April 15
Therefore Mr.. Lloyd George will 20
10 Genoa with two powerful weapons in
his hands. The first, that no real &C.
onomic reconstruction Is possible in
Europe without the United States and
the United States has laid down defi-
mite conditions which Grent Britain has
accepted In practice as well as promise.
with the United States absent from
Genoa Mr.. Lloyd George probably can
play the necessity Of American .coopera-
tion harder than he could were America
represented. wherefore his disappoint-
ment over Americas refusal is not keen.
His second weapon Is that no real
economic restoration OF Europe Is pos
sible without tho cooperation OF Great
Britain herself, and Great Britain also
may lay down conditions. The forecast
of this policy is based upon growing
tendency here to believe that the
United States is right in refusing TO
come in. after the Cannes stipuiations
were fixed. although that belief has 10
struggle through the natural first teel-
ing OF disappointment. In that President
Harding would not help Mr.. Lloyd
Georges conference In Genoa, after Mr..
Lloyd George had so Handsomely helped
Mr.. Harding's conference in Washing
ton.
American Refusal saIutary.
1t il now felt In official circles here
that Americas refusal has had n salu-
lnry effect upon the prc-Genoa corfer-
ence atmosphere. and Mr.. Lloyd George
is not likely to miss any chance to flavor
the atmosphere of the conference itself
with the same salubrious western air.
Those discussing the probable procc-
durc to-day emphasized the belief tina,
Mr.. Lloyd George has no intention OF
lringing any OF the nations participat-
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