The Barre daily times. (Barre, Vt.) 1897-1959, 1922-03-11
FINANCIAL REFORM PLANNED.
Plan Sent to Chancellor of Exchequei
for Consideration.

London. March IA plan OF finan
eial reform las been prepared BY the
executive committee of the Sound Cur
rency association of Great Britain and
sent ITO the chancellor of the exchequei
for consideration at the proposed in.
ternational economic conference at
Genoa.
The committee asserts that violent
fluctuations in the rate Of exchange
between countries are among the prin-
cipal causes Of the present world wide
depression of trade and that these
fluctuations are partly due to the dis
organization and deprecated condition
of the curreneies of various countries.
1t asserts that excessive government
expenditures and ill-regulated budgets
contribute to the Reorganization of
exchange.
To meet this situation. the commit
tee proposes the following methods:
A decision on the funding or adjust
ment of inter allied war debts and Ger
man reparations.
Drastic economy in administration
with view to reducing taxation and
the cost of production and thereby
stimulate trade.
Restoration Of an equilibrium in the
budgets of the various countries
throughout the civilized world
Removal of all artificial barriers to
the free interchange Of commodities
between nations.
As first step toward re-establishing
the par of exchange between gold
standard countries, the committee adj
vocates the gradual contraction of pa
per currency in all countries where
there is an excess.
The committee admits that it is not
easy to decide how best to reduce the
redundant currency, but suggests that
one method would be to convert the
excess into funded debt.
When par of exchange has been re-
stored, it says that prohibition of the
export or melting of gold coin should
be removed.
Some European countries, says the
committee, probably will not be able
to restore their paper currency TO its
pre-war parity and fresh parity may
have to be established; but it is de-
clared to be certain that "a currency
system based on gold must be adopted
by all countries interested in the re-
establishment of the general trade of
Europe"
Loans and credits TO all countries !
should he based only on their own
practical recognition OF the imperative
need of reform, say the British finan-
ciers.
The committee adds that only
through united effort on the part of
all countries to follow these principles |
of sound finance are trade and industry
likely TO reyive.Ihe committee asserts
that financial machinery exists in Lon
don. New York and elsewhere sufii-
Gent to provide the necessary credits
where the security is sound. CoBtinu
ing the committee declared:
"The United Kingdom should aim at
the early restoration of the old equiv
alents between the pound sterling and
1917 grains of standard gold. Such
restoration would tend TO give sta
bility TO prices and encourage coiin-
tries with still more deprecated cur !
rency TO take the necessary steps to
stabilize them in relation TO gold and I
so cause the gradual return of steadi
ness in international trade.
"The resumption of gold specie pay
ments in this country would immedi- .
Htely have beneficial affect on British
credit. An improvement in
national credit which would enable this
country to refund the national debt
would save the state many millions |,
year in interest charges"
Other countries having deprecated !
are invited by the commit J
Tee 10 organize sound currency 1850
'iations. with which the British asso- /,
station would be willing 10 affiliate.