The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1922-01-04
.SENATO.ROWEN
HAS NEW PLAN
Advocates That European
Federal Reserve Bank
Be Founded

WASHINGTON, Jan. 4.-The
establishment Of q European fed
eral reserve bank providing a gold
secured currency and linked In.
separately with. the American re-
serve system from which IL would
draw It's resources and reserves,
was advocated today by. Senator
Owen, Democrat. Oklahoma, as a
basic move towards restoration OF
stable economic conditions
throughout the world. s8
In an extensive. speech in the
senate in which he dealt COM
prehensively with post war CON
dition, the Oklahoma senator sug.
gested in connection with the
proposed reserve bank. the follow.
ing proposals for American aid in
world rehabilitation:
"1-That we should postpone tho
final payment Of the world war
debt In the United States by ex-
tending the payment over fitty
years; that we should moi for ten
years coliec an u al Chns under.
tff sin KIM; and 4 x = Il, Z,
~ That tT aTtspglns die pay
l;tnent % fliirop d sbt tp the Unit;
ed States i've should tend time
to Europe necessary to- enable
them to re adjust their affairs and
regain their productive power and
that we should not for ten years
demand Of themithe payment OF
interest duo but allow 1t TO merge
with the principle.
Y "3-Web should sput the interest
rate at % ercents Of Europe's debt
to the United States =
Mr.. Owen at the same time sub
mitted a bill to amend the feder.
al reserve account 80 that estab-
lishment OF the foreign banks
would be possible. r He proposed
that the European bank should be
owned by the reserve system Of
the United States and that from
the 12 banks here itishould draw
total OF $500, 10000 in gold as
a reserve /, This. he claimed, would
in no way impair the reserves or
resources of the American institu.
tons yet It would enable the for
eign banks to issue $2,5o0, 900 900
in. notes backed up BY, gold as we'll
as 100 percent commodity bills.
Secured currency Isl the sorest
need Of European trade at pres
ent. the Oklahoma senator declar.
ed, adding that the United States
provide such gold backing for the
issue, this would do+much toward
reyiving the productive power OF
the whole world. He asserted that
only through restoring the produc-
tive machinery OF aEurpoe could
there be safe and sane economic
conditions.
"The ono great outstanding fac.
tor breaking down Confidence and
destroying the validity and desir-
ability Of contracts in Europe"
tho senator continued, SIS the
violent initiation of currency
through the printing press. In
some countries Of Europe people
have been compelled to abandon,
the making OF contracts In terms
OF currency and have had to re.
sort to the clumsy system Of bar
ter-so many bushels or potatoes
for so many bushels OF corn or
coal: .' q
How can manufacturers contract
goods for future delivery in terms.
of marks when the mark at the
time Of future payment threatens
a high percentage Of loss? How.
can merchants b1ys and sell safe.
~ in terms of marks or other de-
preciated currency when such
units stretch from one value TO.
another without notice? M
"The outstanding. factor that re.
tards restoration OF European in.
dustry and commerce. then is the,
lack Of old,seucTed currency,
This, the United States is able 10,
provide the means for supplying
a currency secured by gold, re-
deemable in gold and Z secured at,
the same time by 1nerchantahle.
commodities that In themselves
open and renew. the ways Of
trade
IA WA
- n Il. . / T. A L