New-York tribune., 1922-10-05
Association Passes Res
olution Calling for Meet.
ing of s'Best Brains'' to
Devise a Readiustment
Preparations Chief
Stumbling Block
Germany Cannot Shift
Burden Upon Nations
That Won War, Is View

Continued disruption of conditions
essential to the normal prosecution of
world trade is inevitable pending an
adjustment Of international debts, in
Guiding French, Italian and other OBJ
legations, as we'll as the German repa-
rations bill, to amounts within the
ability of these nations to pay, the
American Bankers Association was in
formed yesterday as the theme Of war
indebtedness was further expounded
at its convention.
The dislocation, moreover. was pic
tured as almost certain to become
more aggravated as efforts were made
either to enforce or make payment be-
yond these capacities, strictly limited
by the cessation of special wartime
demand and the effectiveness of peace
time competition.
The Right Hon. Reginald McKcnna,
presenting the British viewpoint AMI
receiving an ovation comparable to that
accorded Thomas w. Lamont on Tues
Day, with many hundreds unable to get
IN the convention room, was ably Sec
onded in his declarations to this effect
by FRED |. Kent, chairman of the com
mission on commerce and marine of the
association, who saw more reason for
cancelilng inter Allied indebtedness
however, than for lessening out Of char
lty the demands upon Germany.
Ihere was suggestion of the ad
vantage to the United States in aiding
european settlement by partial debt
forgiveness in other speeches and in
creasing cognizance that the time was
close at hand, if not already here. for
active American participation in the
affairs of Europe.
Message From Harding
The American responsibility in this
cocnnectlon, particularly the responsi.
%lity of the banker and business man
was stressed not only from the mate.
rial but from the moral standpoint. A
message from President Harding to the
convention, read by the chairman as
the morning session opened, eongratu.
lated the bankers on the way in which
they had lived up to their responsible.
ties IN the past and urgently invited
them to full share in obligations
arising in "a like aggregation of the
social sense, the ethical ideal, the
gence, in order to promote the true
welfare of men individually and in
communities"
"1t has long been my observation, -
said President Harding, "that the lead
ership of the banking forces in the
local community is ever effective and
devoted to community welfare. and the
same helpful relationship must be
maintained throughout the nation and
in the nations outside relations"
Conditions Sound, Says Mellon
A second message from the Admin
istration, from Secretary of the Treas
ury Andrew w. Mellon, expressed
bankers in bringing the country
through the difficult period of post
war adjustment.
"It has been the fixed policy of this
government since the war;" said Secre-
tary Mellon, mot only to balance it's
budget at the end of each fiscal year,
but to provide for the gradual liquida-
tion and funding of the war debt. In
order to avoid spectacular refunding
operations. disturbing the country, the
Treasury has offered at convenient IN
tervals during the last eighteen
months, short term notes which were
used to retire Victory notes and other
early maturing obligations.
"Thc response with which these Of.
ferings have been met on the part Oh
the banks and the investing pubic has
been reassuring, both as regards the
Treasury's plans for the refundlng OF
the early. maturing debt and also as
regards the soundness OF conditions IN
the country at large.
at leads me to believe that a
foundation has been laid for an early
and healthful revival OF business along
normal lines"
Conference Is Urged
The closest approach to specific: ac-
tion on the international debt problem
so far recorded at the convention came
in the adoption by the national BANK
divisionfin the afternoon OF resoiu-
tion. which read:
Whereas, The liquidation OF inter
national war obligations and the res
toration of the economic order OF the
world depend upon profitable produc-
tion; and
Whereas, the production of new
wealth, the only permanent, pasls o1
world recuperation, is dependent upon
the uninterrupted flow Of products and
material everywhere, be it
Resolved, That efforts to restore
normal international world relation
Continued ON page nine,