The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-03-07

tary expenditures or in unbalanced bud
gets in the bolstering up of inflated cur
rencies are n double loss to the world.
They are not only a loss in that they
add nothing TO the increased productiv-
lty-to the consuming power of the
world. but they are a loss in that they
entail the pOstponement of those meas
urcs which arc vital for the economic re
Mobilization of the world
This viewpoint on which President
Harding and his cabinet are in unani-
nous agreement is in reality a sequel to
the failure of the Washington arms con
ference to do anything on land arma-
ments 1t is protested that the move is
made in defense of Americas economic
situation. That is true but the whole
economic problem in Europe is so inter
related to the question Of expenditures
for large standing armies that the
United States is taking its own protcc-
tive measures and precautions so that
American money will not assist imitation
but will lend to reduce its scope.
Work Through State Department.
The department of state is the agency
through which the administration hopes
from time to time to function on this
question. Just the other day a signifi-
cant statement was issued calling upon
American bankers to be more careful
about committing themselves to foreign
loans. Most of the larger banking syn
dicatcs. the White House SAYS. have
been playing bali with the American
government and submitting the loan
proposals i'm advance so that the depart
ment of state could express objections
if il desired. But certain banking
groups. the names of which for the pres
emit are withheld. have not been coop
Grating Certain foreign bonds have
been offered ut attractive interest rates
off 4
ica'S own interest rates. particularly in
government rcfunding operations have
gone for what is known as non-repro-
ductive purposes.
There have been loans on the other
hand like the recent Belgian loan OF
S2J. 100000 which was of the type that
the United States likes to encourage.
The money was lent to n group of Bel
giah manufacturers Who bought rttNv Fna
terials from the United States and paid
for it with the money that has been bor-
rowed here. The raw materials were
manufactured i'm Belgium into railway
equipment which went to Roumania.
American investors applied their money
usefully. and the Itoumanian railways
50 vital TO the upbuildiug of central
Europe were directly benefited.
But when a foreign group. especially
municipality or governments seeks
bills 10 munition contractors that the
type of loan does not. in the opinion of
our officials. help to build up Europe.
The United States admits that it can
not require bankers to consult it nor
will the department of state pass upon
the merits of foreign loans as a bust
ness proposition or assume any respon-
sibility whatever in connection with the
loan proposition, but the government
here does believe that lin view of the
possible national interests involved, it
should have the opportunity of saying
to the underwriters concerned. should
il appear advisable to do SO, that there
is or is not objection to any particular
issue.
Benefit Both Parties.
Americas powers in the rcconStruc-
tinn era of the world are to hc exercised
for the economic benefit of this country
as well as Europe and while il is denied
that there is any connection between the
policy Just enunciated and Europe's re
luctance to pay interest on her $4,000
100000 war debt to the United States,
the two are inevitably related. The
constant warning to Europe that sound
finance alone viii deserve American CO.
operation is expected to bring results.
slow moving as some of the foreign ma
tions may be to grasp the fact that
America is really trying to help Europe
help herself.