The Birmingham age-herald., 1922-01-02

The detachment Of the united States from the economic involve- ments of Europe is shown by the fact that the suspension of the Banca Italiana di sconto had hardly any ef- feet here except as it compelled the Italian Discount and Trust company of New York to close it's doors, pend ing definite news from the Banca di Sconto, with which in the course of large credit. The deposits of the New Cork concern are about $12,000,000, and those of the Italian bank stood at 3.5S,745,227 lire. according to it's Statement of May last. It's paid-up capital was 3l5,000, ,000 lire, and it had 4 reserve of ssoOO,OO0 lire. Marconi of wireless fame was it's president and it had 150 Italian branches and offices in Paris, Marseilles, Baree- Iona, Constantinople, Tiflis, Tunis, Massowah. Rio de Janeiro. Santos, Sdo Paulo and many other foreign cities. The Italian government has declared a moratorium applicable only to the debts of the Banca di Sconto. It is not, as was at first reported. mora torium, which applies to all debts due in Italy, and it's purpose appears to have been to camouflage the bank 8 embarrassment by legalizing it's sus- pension.
 The affair would seem to resolve It. 1,ls~jnto a highly speculative episode but as Calculating the lire even at :. ts presently Appreciated value of 4.30 centsl the liabilities involved ex- ceed s1e0, 1000, it is not to be light ly regarded.
 Every one realizes that at some time not far distant the fools para disc of paper money in which Europe is now living, will be wiped out and we shall be fortunate indeed if no repercussion of its collapse is felt in this country. The French national debt, is now about BPS, 1000, ,000. 900 francs, stood at about 2S,000,0 ,000,00o francs before the war, and has been increased by 146,oo0, ,Oo0.0 900 francs since the armistice. The German bank statement of December 22 shows further increase of about 6,000,000- ,iUO in the paper marks outstanding. the total being now 109,000, 00e,0 Austria has trillions of paper crowns in circulation that are almost worth less. and In Russia the situation Is even worse. for the soviet govern ment admits having issued 11,152, o00, ooo.00o paper rubles In the last four years.
 Paper Obligations
 To hope that this mass of paper obligations can ever be redeemed at their theoretical value in gold is fat nous and foolish. Sooner or later they must be scaled down or formally lepudiated. and 1t remains to be seen what the result will be in this coun- try. The best opinion Is that since t is generally realized here that many European governments are practically bankrupt confession of insolvency is discounted and the effect will be negligible.
 But 1t is just as well that we should not be over confident, for 1t Is quite possible that European deflation, when it comes. will develop sporadic cages of financial weakness here sim- .sr to the suspension of the Italian Discount and Trust company in New York.
 By being prepared for such occur rences. we shall protect ourselves. and this word of caution Is written Because the attitude of France in re- fusing to accede to the proposals made at Washington for limiting the
  Hilary vessels is creating a somewhat difficult situation when taken in con Function with Germany's announce nlent that she cannot and will not tlake any further reparation pay scents after meeting the installment due on January 15 She claims 10 axe paid the equivalent of 100000 100000 gold marks, equal to 47,000, rD0.000 gold dollars. during the year 1921, and Insists that this is all she can 70 for the present The total of the payments chronicled in the American s newspapers is. however. much less than the sum mentioned.
 The spread of Ghandi's ''non-co-op- crative" movement in India. a serious uprising of the natives In Egypt that the English had to suppress by the a,se of arms. an anarchistic outbreak ia Portugal and Lenine's boast that ihe Russian Red army of 1,500,0 ,0a0 men will be largely increased by next summer that it may contest with the .imperialistic entente for the domi- nation of the eastern world complete The Transatlantic picture which has for Its gruesome background the story taat the starving peasants of the yolga have become cannibals and are rating the flesh of their companions as they die.
 Holiday Sales Lnrge
 Turning from this gloomy portray Al. which repeat is exhibited only in a spirit of caution, it is pleasant