New-York tribune., 1922-10-06

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would be expedited" NSs'a'oA
IN explanation Of Great pr;A.,,u
aoairSy ,ny to pay Mr.. McKenna aaid. :
Ihe interest On the foreirr
ues hsid IN England, coming from all
countries IN the world, gives Enylara
tne power TO exchange foreirn cmrran.
cies Tor dollars. This interest tn n,,t
!. III ahother way, is tantamount tn 4
sxportante surplus. Various estimate
nave peen made of the amount Of these
nolalngs, but feel certain thev are
more than $4,000, ,000, ,Ooo.n
Mobilization cf these securities bv ~
government, as during the war, M
Mckenna said, was not necessarv -
MAKE the dollars realized on the In.
terest received by British citizens
asaiiapie to the government. In effect
england was always in a nosition tn
obtain dollars in the foreign EXCHANGE
market, the exportable surplus arisino
from her foreign holdings enabling her
TO draw upon the productive power of
otner nations. Mr.. McKenna, in com
meneing upon the recent movement of
goid from England for the approach
ing interest payment, said that paw.
ments on the debt probably would in.
variaoly be made gold, which would be
obtained by British exports to rold.
producing countries.
German Payments Limited
"A large exportable surplus is only
obtainable when nation gives credit !;
SAID Mr.. McKenna. "If Germany is al
ways to sell for cash her whole sur-
plus production, she cannot build un
large surplus Of this kind. That is
why am convinced that, while Ger
many after an interval can pay some
thlng' that amount will not be large
Asked as to the outlook for an Amer
ican loan to Germany, Mr.. McKenna
oeciared this could hardly come before
stablization of the mark had been ac-
complished.
III Germany gets a moratorium long
enough to stabilize the mark" said the
former British Chancellor of the Ex-
chequer, "and If Germany paws to the
Raparations Commission the foreign
balances she now owns, she will
require foreign loan to enable
her to finance her external trade. I'm
der these conditions her credit will be
good and she should be able to obtain
sufficient loans on an ordinary com
mercial basis to enable her to finance
her foreign trade,
Mr.. McKenna was unwilling to rive
an opinion as to whether the rensra-
tions problem would be settled at The
approaching conference abroad, but
said that it's ultimate settlement on
rationa! basis was assured.
Regarding the American attitude
soward treatment Of international in
debtedness, Mr.. McKenna said that he
had observed a tremendous change in
public opinion here as reported to him
by the bankers and as Judged by the
tone of press comment. AS to the de-
STABILITY, suggested by Fred I. Kent.
chairman of the commission on com
merce and marine, that America should
be represented officially on the Repara-
tion Commission, he said:
~ feel very strongly that the British
want the United States to take an oar
in the boat. The nations of the world
face a pretty difficult task. I am not
censuring the present American policy
because it is policy that my own
country endeavored to adopt. We
called it splendid isolation and for a
time after the war it was popular.
Splendid isolation is a dream, as will
quickly be discovered when it lis OBJ
served how unwilling the country en-
joying splendid isolation is to be ig-
nored.
America has interests all over the
world, her citizens are everywhere,
she has considerable shipping and a
very large foreign trade. She has re-
sponsibilities as we'll as interests. I
believe her experience will be just the
same as ours in England, that is, that
the policy Of splendid isolation doesn't
work" s* q ''fs '4,r@s
A request for the London bankers
views on the American tariff brought
about a somewhat more cautious re-
sponse than to other questions, coupled
with the statement that he did not de-
sire to be interpreted as saying any
thing that might be controversially
understood.
"The immediate effect Of the tariff"
Mr.. McKenna said, "will probably be to
reduce considerably the imports Of the
United States, with corresponding
reaction on exports. To some extent
this effect should be mitigated by
rise in prices here, enabling competitor
countries to leap the barrier"
MIR. Mckenna said that he was not