Palatka daily news. [volume] (Palatka, Fla.) 1919-1994, 1922-05-18
Financier Says All of the
4. Central Banks Are
InSolvent
CAUTIONS AMERICANS
Should Not Permit Fed
eral Reserve to Be
Drawn In
iBy Associated Press)


trail banks in Europe are today "in
varying degrees of insolvency."
Frank A. Vanderlip, New York bank
er, declared in a cabled review of the
Genoa conference sent to the annual
convention of the Chamber of Com
merce of the United States. The
plan for conference at London of
such banks therefore promises little
or no immediate result, he added, and
their proposed cooperation in the So
luton of Europe's financial difficult
ties would be difficult to realize"
Describing the Genoa conference as
"a clinic" which was circumscribed
in the type of diseases" which it
might discuss, Mr.. Vanderlip recon-
mended that the United States enter
the proposed London financial meet
ing, but only with an understanding
that "our federal reserve system be
kept free from alien commitments"
He commended the Washington gov
ernment for the attitude it has main
tained toward Europe and said the
chamber should refrain from embar-
RAISING it by suggestions.
"Officially the conference was not
permitted eevn to examine the more
serious Diseases" Mr.. Vanderlip said.
Nevertheless, unofficially their ma
ture has come to be more clearly un-
derstood.
Excessive ReparatiOns Claims.
The diseases of fantastically ex-
cessive reparation claims; of exces-
sive military expenditures causing in
evitable unbalanced budgets; of
boundary lines that outrage economic
and clinical principles; of interest
and governmental debts so vast as
to destroy the hope of solvency-I
these diseases could not be officially |
studied and diagnosed. The disease
of the economic isolation of Russia,
having population equaling nearly
one-tenth of the world, has been ex-
haustively studied only to be referred
to further study by The Hague COM
"Owing to the prohibition on dis
cussing more important subjects; the
immediate economic significance Of
Russia has been absurdly emphasiz-
I'd. Under the most favorable agree
ment conceivable with Russia that
country would not be able to make
any important contribution to Eu-
rope for several years. An agree
nent with Russia when obtained will
ror a long time only furnish an op-
,ortunity to send goods on credit.
little or no Russian production can
,e returned in exchange for several
years. Il
"The financial resolutions adopted I
ire sound, but for the present unnec- L
.ssarily ineffective. They declare q
he stability of currency value a I
eouisite for economic reconstruc-
ion. That is impossible of accom- @
,lishment while budget deficits per- t
list. Balanced budgets must await S
educed military expenditures. Dis d
rmament could not be discussed a
.ere, but must be before budgets can t
% balanced. Therefore, reduced $
Military expenditures are pre-
emisite to stabilizing currency. a
american participation in the r
,ondon conference is highly desir- v
BILE. but it is important, however 7
hat we should not involve the Gus $
odv Of our bank reserve in commit q
,ents to stabilize European curren- G
los believe that America should Q
,udv a plan for segregating some I
{ its gold stock to help Europe sta q
ifize her curreneies after budgets IS