Evening star., 1922-05-21
Blind Curse Of Nationalisn
Holds Europe, Says Ndnderlip

while European state men got their
breath and prepared take hold of
reconstruction problems earnestly,
had to. be found. With his incom-
parable adroitness, Mr.. Lloyd George
found 1t.
He put into the agreement for The
Hague commissions, a temporary pact
of peace under WHICH for few
months all nations are~b1nding them :
selves to respect de facto borders and
promise to refrain from invasion.
This is scrap of paper. although
very large scrap of paper. It un-
doubtedly has moral value and Is an
achievement for the British premier
The foregoing outlines the political
accomplishments of the conference.
The remainder Of it's work was done
by the financial. economic and trans
portation sections. The reports pre-
sented are admirable statements OF
sound principles.
Atmosphere Of Insincerity.
Going back Of those reports to the
process verbal of many Of the meet
ings of the various sections, held be-
fore they evolved them, one finds an
atmosphere of insincerity. disposi-
tion to accept general statements of
principle, but at the same time hold
ing reservations as to actually adopt
formulated hardly worthy Of the
panegyric of Sir Lamar Worthing-
ton Evans when he compared the
financial resolutions to the Justinia
code. .r.-
There are two positive measures
worked out. One Is for holding a
conference Of central banks in Lon
don and the other for the creation
of an international corporation, par
ticipated in by seven nations, having
designed to undertake constructive
work in the backward eastern Eu-
ropean countries.
Both these enterprises have some
sound reasons to recommend them.
Neither is particularly promising of
early results.
Gold Stock Dangerous.
bank program is to induce the United
States to cooperate in its discount
and gold policy to help Europe re-
gain currency stability.
I have heretofore pointed out the
asngsT BANK of cpeasa the bod be Re-
serves of 10000 banks in too close
relation with European central
banks. The European central banks
present varying degrees of insol-
reaching an effective working en-
tente.
am convinced our huge gold stock
presents a dangerous invitation to
imitation in the United States. and di-
version of a portion Of that gold
ize European currencies would be
not only extremely useful to all par
ties, but tends to avoid the danger
of period Of wild imitation in Amer
lea
Proposes q. 8. Backing.
The methods of cooperation should
not be such as to involve in alien
ante ole fC q nf ha
American banking system. There
should be considered a plan for Great
ing an institution with a great gold
capital, formed for the special purpose
of cooperation with European central
banks in their effort to stabilize cur
rency.
There is no need Of actual exporta-
ton. of gold to Europe. The gold
itself may much better remain in
America. All that is necessary is
in a position to clear obligations be-
tween themselves through American
gold funds, just as the federal reserve
banks clear mutual obligations
through the gold fund deposited at
Washington.
Great Problem Untouched.
So much for what happened at Genoa.
What Is now now likely to happen in
nomie u1dee reconstruetion s @ s has not IT. been Been
grappled with at Genoa. The confer
ence was prohibited from taking up
essentials. through which alone the
solution of Europe's difficulties can be
reached. e..
These essentials are: First, read
justment of the German indemnity in
a form possible for the German nation
to bear: second, reduction of arma-
ments so that by lessening military
expenditures there will be some hope of
balancing budgets in certain countries,
while at the same time by such re-
duction of military forces the extreme
danger of aggressive military policies
and ambitious desires of European
hegemony will become less dangerous
Boundaries Are UnsOund.
Third-Readjustmen and definite
fixing of boundaries so that the fu-
ture may promise some practical Sc
curity. There are now boundaries
ethnically. economically or geograph-
ically unsound. 1t is impossible to
draw a map of Europe so as to make
true ethnic boundaries. One might
as well try to draw a line across a
checkerboard which would range all
the white squares on one side and all
the black squares on the other. Eth
mic boundaries being impossible of