The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-04-27
BY SIR GEORGE PAISH

grown even more threatening and mt
lost. The experts who drafted the
Brussels report are not responsible
for this. The responsibility lies
rather with the statesmen who imag'
ined that economics were subservient
to politics and did not realize tina.
economic actualities can neither be
misunderstood or Intentionally ig.
nored without disaster.
/ The resolutions now being drafted
by the exports at Genoa are more
complete than those of the Brussels
conference, but they, too, will be in
effective unless all the causes Of
danger are taken into account and
squarely faced. 1t is useless for a
physician to prescribe for influenza,
admirable as the prescription may be,
when the patient is suffering from
pneumonia.
Work Not wasted.
The work of the present conference
will not be wasted. Sooner or later
all the actualities will have to be
taken into account, and when they
are the resolutions they are now
drafting will form an important part
of the complete plan of adjustment.
Cannot responsible statesmen yet
be persuaded to allow all the causes
of the present danger to be fully con-
sidered by this Genoa conference so
that fresh delay may be obviated and
the world preserved from incalcula-
BILE distress and suffering? Neither
| the causes nor the extent of the dam
ger in which the world stands is
difficult to grasp while the remedy is
obvious.
The war almost completely shat
tered the productive power OF Europe
as we'll as the selling and therefore
the purchasing power Of the entire
world. Moreover, the politics Aof the
nations since the war has not only
hampered the work of rebuilding, re-
organization and readjustment. but
has enhanced the mischief OF the war
by causing a still greater loss of pro-
ductive capacity and selling and buy
ing power until at the present mo-
ment the trade of the world is but
fraction of that of previous days.
Need Great, Production Small.
Hence millions are dying OF starva-
ton and tens Of millions are suffering
privation. Never was the need OF food
and clothing and shelter greater than
1t is to-day. while never was produc-
ton so small in proportion to popula-
ton, and never was 1T so difficult to
sell what is produced.
With starvation and privation in
one part of the world food Is being
deliberately burned In another. With
vast multitudes inadequately clothed
the production of both raw and
manufactured textile goods has been
greatly curtaiied because Of the diff
Guilty to sell even the reduced guam
tity. Not only. has the war, coupled
with the war policies Of the nations
shattered the productive power and
left many nations with no goods to
sell in exchange for other goods. but
they have injured the power Of ma
lions to buy and sell on credit.
Prior to the war II the nations
needed to buy what they could not pay
for Immediately they rarely had diff
Guilty buying on credit granted either
for a short or long term, but mainly
for long periods. The war and events
siSce have caused the nations Of Eu-
rive MS a whole TO borrow so largely
from other countries and at the same
time to become so impoverished that
in spite of their need they now find
that they practically have exhausted
their power TO buy even on credit.
Nor is that the whole mischief. The
nations which before the war gave the
largest credits to the other nations OF
Europe needing to buy on credit
instead now need to obtain foreign
credit themselves. Thus instead of
Europe being able to supply herself
with all the credit needed and to give
credit TO outside nations as well, all
the great nations OF Europe other than
Great Britain have become borrowers
There is not one to lend.
Available Credit Less.
The need for credits is greater, but
even the amount of credit annually
available before the war has disap-
peared. Thus Europe's productive
powers have been greatly reduced, her
need TO buy is greater, her power to
pay in goods Is less and her credits
are almost exhausted. A large percen-
tage Of the people OF Europe are thus
threatened with extinction and the
peoples OF the entire world with being
reduced to a state Of unprecedented
poverty.
The situation would not be so tragic
we're IL not that the nations outside
OF the Continent OF Europe other than
the British nation are normally bor-
rowers, not lenders, and although they
possess this time considerable ability
to lend they are not much disposed to
grant Europe the additional credit she
needs in order to regain her produc-