The New York herald., 1922-04-16
GENOA CALLS FOR
GOLD STANDARD
Unofficial Statement Of
Plan Includes C0Opera-
tion of Banks.
STABILIZING CURRENCY
International Agreement to
Stop Competition in Amas-
sing Gold Reserves.
FIT EXPENSE TO REVENUE
FIT EXPENSE TO REVENUE
Fix Gold Value Of Monetary
Units, Effective in Free
Market.


Restoration of an effective gold mon
etary standard and the strict balanc-
ing OF budgets without resort to the
issuance of surplus paper currency
or bank credits are understood TO be
among the important recommendations
being examined by the financial sub
commission of the economic confer
ence.
The plan under consideration. while
not yet given out for publication off,
cially, is understood to include the fol-
lowing recommendations
The essential requisite for the eco
nomic reconstruction of Europe is the
achievement by each country OF stability
in the value OF its currency. The banks.
especially those authorized to issue cur
rency. should be free from political pres
sure. Countries lacking such a bank
should establish one. A permanent as
sociation for cooperation among the CEN
tral banks, even outside Of Europe.
should coordinate their policy without
hampering their freedom.
An early meeting of representatives
of central banks is suggested In order to
carry out this recommendation. il Is
stood 70 recommend that all European
currencies be based upon common
standard. agreeing at present to adopt
gold as the only common standard. An
international monetary convention aim
ing at control of the power Of gold,
which might otherwise result from
simultaneous competitive efforts of a
number OF countries to secure metallic
reserves. also is suggested.
Plans To Avoid Imitation.
The following proposals are suggested
.or submission for the consideration OF
the proposed meeting CT representatives
OF central banks
The governments declare the restora-
ton of an effective gold standard Is
their ultimate object. Each Government
In order to gain effective control OF its
currency must meet its annual cxpendi-
ture without resorting to the creation or
paper money or bank credits. As soon
as economic circumstances permit the
governments must determine and fix the
gold value OF their respective monetary
units, which must be made effective In
the free market
Governments must issue additional
paper money only against equal addi-
tions to their reserves of approved assets
at gold centers. The monetary conven-
tion thus would be based on gold ex@
change standard. Each country would
be responsible TO the convention. for
maintaining the international value OF
it's currency at par. but would be left
entirely free TO devise and apply means
for doing this, whether through regula-
ton of credit BY the central banks or
otherwise.
Russians Have Concrete Plan.
The Russians have presented concrete
financial proposals in which they say
they are IN perfect accord with the Allies
over the urgent necessity of establishing
a monetary basis in all countries, put
ting an end to "feudalism" which they
declare Is reigning especially in the
matter Of exchanges.
The Russians also agree TO the ne
cessity for each country to balance its
own budget, curtailing paper currency
and reducing expenses. especially those
for armaments which they declare in
some countries are the chief cause of
deficits.
The Soviet delegates in their proposals.
urge an Anglo-American accord In order
TO establish a permanent purchasing
power for their currency. which the
Russians declare should become the
basis for other European currences.
They insist upon the necessity of grant
ing credits or loans OF gold to states
whose financial conditions are bad. They
give as an example the American Fed
eral Rserve banks. which they say
might put part of their gold reserve at
the disposal Of central banks Of countries
needing Il. doing this by lending gold or
by opening special credits.
The Russians also propose an nterna-
tional monetary convention whose object
would be TO fix a stable ratio between
the currencies OF the various states.
They conclude their proposals by empha-
sizing Russia's urgent need OF loan in
order to stabilize its currency.