Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1922-03-11
WOULD REFORM
FINANCE, PLAN
is PROPOS
Sound Currency Assn. Takes
Note of Violent Fluctua-
tions' in Exchange

LONDON. Mar. IA plan of fin
ancial reform has ben prepared by the
executive committee Of the Sound Cur
rency Association Of Great Britain and
sent to the Chancellor Of the EXchcquer
for consideration ut the proposed INFER
national economic conference at Genoa.
rhe committee asserts that violent
fluctuations in the rate of exchange be-
tween. countries are among the principal
causes Of the present world wide de-
preston of trade and that these fluc-
tuations are partly due To- the d-,organ-
ization and deprecated condition Of the
currencies Of various countries.
Ii asserts that excessive government
expenditure and ill-regulated budgets
contribute To the disorganization of cx-
change.
To meet this situation. the commit
tee proposes the Following methods:
A decision on the funding or adjust
ment of inter Ally war debts and Ger
man reparations.
Drastic economy in administration
with view to reducing taxation and
the cost If production and thereby stim-
ulate trade. is.
Restoration Of an equilibrium in the
sbuktts the
out the civilized world.
Removal of all artificial barriers 10
the free interchange Of commodities be-
tween nations.
As q first step toward re-establishing
the par of exchange between gold
standard countries. the committee adj
vocates the gradual contraction of paper
currency in all countries where there il
an excess.
The committee admits that il Is not
easy 10 decide how best to reduce the
redundant currency but suggests that
one method would be 10 convert the ex-
cess into funded debt.
When par of exchange has been res
tored. il says that prohibition Of tho
export or melting Of gold coin should
be removed.
Some European countries. says the
committee. probably will not he able to
restore their paper currency 10 its pre-
war parity and q fresh parity may have
10 be established: but il is declared To
be certain that currency system has
cd on gold must he adopted by all coun-
tries interested in the re-cstablishment
Of the general trade of Europe"
Loans and credits TO all countries
should he based only on their own prac-
teal recognition Of the imperative need
of reform. saws the British financiers.
The committee adds that only thru
united effort on the part of all coun-
tries to follow these principles If sound
finance are trade and industry likely 10
revive. The committee asserts that fin
aucial machinery exists in London. New
York and elsewhere sufficient 10 pro-
vide the necessary credits where the
security Is sound Continuing the
committee declared:
The United Kingdom should aim at
the early restoration of the old equiv
nlcnrs between The pound sterling and
1o3 IA grains of standard gold. Such
restoration would tend To give stahili-
~ To prices and encourage countries
with still more deprecated currency -
take the necessary steps 10 stabilize
them in relation to gold and 81 cause
tbe gradual return Of steadiness III IN
fernational trade.
THE resumption of gold specie pay
mepis in this country would Immcdi1teiS
have n beneficial affect on British ma
,ional credit. An improvement III natl"h-
nj credit. An Improvement IN national
credit which would enable this country
m refund the national debt would save
the state many millions year IN inter
est charges.
Other countries having dcprcciate'i
currencies are invited by the committee
70 organize sound currency associations
with which the British association would
he willing 10 affiliate.