New-York tribune., 1922-01-23
Put /. S. Gold
Tow Ork kAbrOat}
Experts Advise
Hoover Board Would Boil
slcr Exchange by Rcdis-
iributing 1t and Invest
ing i'll Foreign Channels
New Reparation Basis
tiN Amount Germany Can
Ray and Cut Big Land
Armies. Commission Saws

e. ASHlNGTON, Jan. 2.-The lrn;tcd
states tccls it TO be to its own in
'crest that The surplus stocks Of co1d
III nc country should be rcdistrihntcd 4
ana utilized through investment in
.o'o 81 ch"Nncls, according to a state
iuehl on the effect Of exchanges ON
,"'er-American commerce made nuhl,c
70 nlght oN the United States section
or the lntcr-American High Commits.
sion. ~0'''''''o .
ne statement expressed the views
ol inc Hmcrican section. of which Sec
rotary lioovcr is chairman. ON tho in
0crNatlonal exchange section.
IN TINS country, the statement do.
claTed, the situation was unfortunate
because the h,gh premium on Amcri
can o.change has attracted the gold
now OF the world. resulting in over
STOCKING beyond currency needs and n
Hu'P'1s earning no interest and scrv-
ing no useful purpose.
rom an economic Dolpt Of Wow p,
INC statement said. "thc method nf
uNi'zation is BY the investment al
capita! abroad. The method or reds.
'r'bution should be through loans fo,
reproductive enterprise and bv sne-
enc gold loans to countries which arc
III a position to undertake the rc
organizations Of their currcncics on :,
Eold basis. The United States scc.
a'on regards 1t as mutually desirable
and profitable that capital Investments
S"ould be made III the other American
''pupl1'S where national credit rests
Squarcly on stability in the social
order" ''e'"
Responsibility for the disordcrcd
world exchange situation was st-
tr'putcd by the statement to disloca
tons still existing in the whole inter
national economic structure and thc
arrangements of the international price
structure. The exchange situation
the American section asserted, would
improve as the worlds economic re-
coVery. especially in Europe. goes on,
and particularly as price distortions
disappear.
"A review of Europes situation. "
the statement said. "draNs us to the
inevitable conclusion that there can bc
no stablzation of exchange upon any
footing until there is cessation of
imitation in the principal Continental
states. Imitation is the result of uu-
balanced budgets, which themselves are
the result Of the necessarily cXpcnd
lures upon reconstruction, the unset
tied situation of German rcparations,
the maintenance of land armamcnts,
and increasing debts.''
New Keparations Basis
Discussing the bearing Of Germany 5
way bill on the situation, tho statement
said:
''The German government is not
meeting its reparation obligations by
taxation, while other countries arc un-
able TO mobilize enough taxable re
sources to cover their expenditures for
reconstruction, for military forces and
other purposes. There can be no hope
of stability in the worlds exchange
until, in the first place, German repair
alton payments have been put upon a
basis not only securing a definite flow
or economic strength into the just Ia X
Of rehabilitatlng the devastated coun-
tries, but also calculated to be within
tho practical power of the German peo-
pie to pay. Furthermore, it is neces-
sary for economic stability that land
armament on the Continent of Europe
should be reduced. Armies in many
states are of such size as to neccssitatc
continuing imitation either through cur
rency or short time bills. The eco
nomc loss in productivity of the ma
tioNs is not measured alone by the
number Of men under arms, but by the
spirit that surrounds the entire situa-
iio,, "