Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-04-13
Balancing Of National
Budgets Discussed
at Genoa Conference


brium in national budgets, If the
European situation is to be stabil-
lied, formed the most important sub
ject of discussion at the meeting to-
day of the sub commission on finance,
at which Sir Robert Stevens Horne,
the chairman. proposed an internal
tional conference of the great banks
issuing currency. including the
American reserve banks.
The commission decided to make
the London experts report the basis
OF its deliberations and to appoint
another sub committee to examine
exchange, with a second SUBJ commit
tee to study credits, the commission
itself devoting its labors to the ques-
ton of currency.
Dr. Andreas Hermes, the German
minister of finance. created some
commotion by abiding to the uqes-
ton of reparations. He declared that
the Germans had examined the Lon
don report and were in accord on
many points, but wished to empha-
size that Germany would find ex-
trcme difficulty in establishing
equilibrium in her budget while
obliged to support heavy payments
externally. Germany, he promised.
will bring in practical suggestions
later.
A report was current in conference
circles that the German chancellor.
Dr. Wirth, would return to Berlin
within a few days, concerned over
internal conditions in that country
and apparently depressed over the
situation at Genoa.
On the other hand. Christian Ra-
kovsky. premier of Ukraine, depict
ed the Russian financial situation in
rosy colors, and seized the oppor-
tunity to alludc TO disarmament,
which the Russians are contending
should have n place on the agenda.
He wanted the world to know that
the Russian budget was in very fa-
vorable condition as six seventies of
| the expenses were covered by ordi-
nary revenue, and only the remaining
seventh was met by the issue of pa
| per currency.
/ Russia has already disarmed. but
all will be useless until the great
masses Of gold. which really belong to
/ ii
| Iy instead of being concentrated in the
| hands of a few nations"
Emil Gluckstadt. Danish delegate.
who was member of the commission
which investigated the financial situa-
| ton in Austria. urged the imperative
necessity to returning rapidly to the
! gold standard as the real basis of
world currency, and thus bring about
equilibrium in the budgets. He en-
phasized the necessary of adopting
special measures to restore credit in
countries like Germany, Austria and
Hungary.
! The question as to which sub-com
mission should discuss the question of
finances connected with the reconstruc-
| ton of the devastated provinces of
France and Belgium arose. and Chair
man Horne ruled that it should he
taken up by the subcommittee on
crSdit.
| Sir Robert outlined the great goal of
the conference as:
First. to establish an agreement on
the financial programs of all govern
I, ments:
Second to achieve the financial equi-
librium of the budgets Of all states;
and
Third. tho establishment of the gold
standard as an effective monetary
unit.
The Russian and German delegates
announced that they hoped tomorrow
to submit definite suggestions based
on the report OF the London experts.
The days developments showed dis
tinct progress in the serious applica-
tion and study of the economic prob
| lens Of Europe
In the meantime the plans on which
| Russia would be permitted to reenter
| the commity Of nations on the basis
Of social order prevalent in The remain
| der of the world is now suuarcly be-
a.. fore the Eolshcvk delegates.
Premier Facta Of Italy, president Of
| the conference loft tonight for Milan.
where he will confer with King Victor
! Emmanuel.