The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1922-02-01
FINANCING THE WORLD

Il That the United States section OF the lntel
i American high commission should announce II
opinion that there is too much gold in this countr
will occasion no surprise. For many months
has been apparent to fnanciers and economist
that the enormous hoard Of gold in the Unite
States has only served to make the internationa
exchange situation worse and that it would b
much better for this country, as well as for tn
world at large, if the surplus gold now held here
| far in excess of currency needs could be dis
tributed among foreign nations.
! The American section makes some very del
mite recommendations on this point. 1t says tina
it would be to Americas interests 'that this gol
should be utilized in foreign channels" and tina
"the method of redistribution should be through
loans for reproductive enterprise and by specifi
gold loans to countries which are in position t
undertake the reorganization of their currencie
on gold basis"
1t is quite evident that sentiment in the bust
ness world will support this view of the situation
It is also obvious that American capital stand
ready to make loans abroad with view to assist
ing in the resuscitation of productive enterprise
and that gold loans to nations capable OF reorgan
izing their currencies can be arranged But be
fore this can be done guarantees of good faitl
must be given by the borrowers. The lenders mus
have assurances that their assistance will not bt
in vain
Delay in a permanent settlement of the repara
tons question is the greatest factor in prevent
ing the establishment of stability in the fisca
affairs of foreign countries, and until that stability
is achieved there can be no general distribution
of the surplus gold now held by the United States
But the PREPARATIONS problem is not the only OBJ
stacle. Another is the disposition in some coun
tries to maintain excessive armed forces which
impose upon their governments and peoples taxa
ton burdens which will not leave margin fol-
financial recovery. Why should America lenC
her gold to nations which are spending more thar
their current revenue in ornaments?
Russia needs American gold and American en-
terprise, but she will get neither so long as the
Russian people remain under the domination Of
the bolshevk regime which guarantees the safety
of neither person nor property, and where there
is no respect for property rights. Germany needs
financial help, but until her fiscal affairs have
been reduced to semblance of stability and hel
reparations payments are guaranteed she neeo
not look to the United States for help. There is
a call for financial assistance from France, but
her politicians discourage favorable response by
insisting upon maintaining ornaments far in eX-
cess of her requirements, thereby making it i'm
possible for her to make interest payments on the
sum which she already owes the United States.
In short, America has more gold than she
needs, and more than is good for her, interests
Europe needs the stitp1tts and Ameficalis wiifing
to supply it. BIT FuroRf PtfndS IN Ptf own light h
by declining to meet the reasonable conditions
under which this assistance may BIZ extended .iThe
greatest stumbling block in the way of financial
reimbursement of the war stricken countries is the
mistaken policies of their statesmen. Thus the
issued by the American section may
well be studied with thoughtful care by those who
are planning the Forthcoming economic conference
at Genoa.
Statesmen who represent peoples who desire
and need the financial assistance of America can
forward interests of their respective countries
by being more amendable to the plans put for
ward by the United States for the limitation of
and for reducing the possibilities Of
war Nothing will conduce to stability more than
a reduction of the burdens of war taxation and
stability is the thing most required to induce
America to extend private and governmental help
Of financial character to foreign countries.
Influential politicians of Europe who continue
to talk of war and advocate war preparations are
thus denying to their people the aid of the United
States Crafty red Russians who hope to
enter the Genoa conference with a view to tempt
ing American gold to their country, while they
adhere to their communistic form of government
are plotting in vain, for help from this country
will be extended only for productive industry and
until Russia devotes herself in good faith to pro-
luction her wiles will prove fruitless.
The proposition is a simple one. Europe can
AXE it or leave It. If she will cooperate and trans
ate her professions into deeds, America stands
'eady to lend her assistance. But America has
10 gold to throw into foreign war preparations.