The New York herald., 1922-05-04
Plenary Session Told Z. S.
Could Help Without Be-
coming Involved.
TWO REPORTS ADOPTED
Another Farley on Finances to
Be Held in LOndOn-One on
Transport in Paris.

bhNoA' way NASSCcldteu HTeSS -
All the leaders voiced satisfaction at
to-day's plenary session of the eco
nomic conference. which adopted the
reports of the financial and transport
commissions, believing that it en-
bodied the Inauguration Of far reach-
ing efforts to improve the finances of
Europe. The financial code at Genoa
has been written, declared Sir Laming
financial commission. and he believed
it would prove as important as the
historic Justinian Civil Code, the basis
of world Jurisprudence.
the issue Of paper money, fixing parity
with gold, economizing in the use of
gold and coordination of gold. The
United States. said the chairman. with
almost half the worlds gold. could
join in the future study Of the prob
lens without involving itself In po-
litical difficulties, and could help Eu-
rope as well as herself.
sion were Signor Schanzer, Italy;
Schulthess. Switzerland; M. Picard,
France; M. Tchitcherin, Russia, and
DIR. Rathenau, Germany.
Russia for Reservations.
NJ. Tchitcherin alluded to the rights
of Communism and declared that 1t
was impossible for the Russian Gov
ernment to renounce it's control over
exchange operations, despite the fact
that the financial report characterized
this control as michievous. He said
Russia must insist upon reservations
as the report carried provisions con-
cerning the League OF Nations, wnicn
Russia did not recognize.
The financial report like the memo
randum of the Powers to the Russians
emphasizes that assistance to disorgan
lied countries should take the form OF
private not governmental credits NJ
| Tchitchcrn insisted on Government
| loans. and in this indorsed the views OF
VI. Rakovsky, who had publicly declared
that the Soviet as the Russian Govern
ment expected loan from the Powers.
In conclusion NJ. Tchitcherin. voiced
the conviction that it was only by eco-
non,ic collaboration Of two worlds whose
policy Is based on different economic
systems that mankind could move
toward reconstruction and peace.
Rathennu Voices Warming.
DR.. Rathenau declared that from the
Genoa conference the world not only ex-
pected theses and theories but hoped
that the representatives of the great ma
tions would give evidence OF energetic
efficacious and immediate cooperation
with respect to economic and social
needs of great urgency. He voiced a
warning that ten million people were
Without work, and something must be
done for them.
The disarmament question bobbed up
again when DR.. Rathenau said the
worlds trade must be doubled before
conditions could be bettered, but that
this could not be done while the nations
were jumping at each others throats.
Tchitcherin also brought up the issue
by saying in a plea for disarmament
"Only by a policy of peace can the ma
tions balance their budget
Both the financial and transport re-
ports provided for international confer.
ences to continue the work OF European
reconstruction begun here. The finan-
cial conference Is to embrace the banks
of issue of the various nations and the
hope was expressed that the Federal
Reserve Bank OF the United States
would be represented in it, This con-
ference will be held in London. while
the transportation conference for the
reha bilitation Of the European railways
will take place in Paris.
Plans to Prevent Tax Dodgins.
To prevent the fight of capital from
national boundaries in avoidance of tax
stion the financial report suggests that
the League OF Nations study measures
for international cooperation to stop tas
evasion.
Senior Gomez of Portugal In alludine
to the fight of capital declared that at
II was one of the chief reasons for the
world wide speculation and for the fall
in exchange rates, IL would be advisable
to invite the United States to cooperate
in the measures for dealing with thi:
problem. He held that as the United
states was not a member of the League
OF Nations. action by the league with.
out American cooperation would be In.
effective.
Besides the London conference. the
financial report recommended the hold
ing Of another international fnancia
convention to study the question OF the
adoption of a gold standard. Its mair
purpose would be to centralze and CO.
ordinate the demand for gold go as tc
avoid wide fluctuations In the purchas.
ing power OF gold and to devise some
means OF economizing its use by main.
tanning reserves I'm che form of foreign
balances such as a gold exchange stand
ard or an international clearing system
Speaking on behalf of the financial
commissions recommendations VI. Pi.
card. Deputy Governor of the Bank oil
France, said they we're of two kinds
| First. to resume the general prin.
ciples underlying national fnancia
systems. and. second. to inaugurate tenn.
| porary measures necessitated by the
existing situation.
| The general principles OF the commits
slon's recommendations NJ. Picard said
! included the adjustment Of expenditures
to revenue. the fulfillment OF contracts
and the payment OF debts in currency
that was not continually depreciating
The practical measures. ne added. com
prised the inquiry by banks into means
Of stsbilizing currencics. and he proposed
the formation Of an international con-