The Washington herald., 1922-10-04
Convention Leaders Con-
slider Nonpolitical
Undertaking.
HAS TACIT SUPPORT
OF ADMINISTRATION
Reduction of Debts to
America to Be Held
AS Inducement.

A gigantic nonpolitical undertake
ing designed to effect economic
stability in Europe. is in the max
ing among great business and finan-
cial interests in this country.
The movement has the tacit sup
port of the administration. IL not
actually proceeding at the informal
suggestion of government spokes-
men.
The initial steps are now taking
place at the convention OF the
American Bankers Association in
New York, where the views Of the
nations leading financIers are being
expounded on the question with a
view to effecting eventually a def
mite basis of procedure.
1t is known that administration
leaders believe the Initiative should
be taken by business interests. in
order that the plan ultimately
evolved may not be construed as a
political step.
Basis of Proposal.
While thus far the movement has
not taken such tangible shape as
to permit of a definite outline. the
basic principles upon which il would
be worked out are taking form.
First. it would comprehend the
formation of an American commis-
sion Of bankers and business men
which would formulate a program
and set it forth before the world
as an American plan, much as Sec
retary Hughes advanced his pro-
gram for limiting naval armament.
Second, IL would comprehend the
reduction of some OF the allied
debts to the United States. provided
there was definite action by the
allied powers toward adjusting
their budgets and reparations
claims and reducing land arma-
ments.
Third. IT would require assur-
ances from the German government
in the matter of meeting the ad-
justed reparations payments
The plan would comprehend a
complete overhauling of the present
system practiced by various Euro
pean countries in the matter of cur
rency issues. This effected. the way
would be cleared for the extension
of loans by the great American n
banks TO countries needing assist
ance.
see Grave situation.
No effort is made now 10 conceal
the gravity of the situation in Eu-
rope. The Near East blOw-up is
regarded as having the likelihood
of early settlement But the indus
trial chaos. going from bad to
worse. is potential menace to civ
ilization itself. authorities declare.
For that reason a means of assist
ance must be arrived at and soon,
they say.
The announcement by Thomas
Lamont. Of J. p. Morgan and Com
pany in New York. that business
brains must examine the European
situation with an eye to suggesting
reduction if not cancellation of
some of the debts. was held here
to be the judgment of Morgan in
favor of abandoning the idea that
the allied debt could be collected in
full. Since il is the first time the
great financiers have come out into
the open on the point. il is herald
eO mere as strong 1eeler TO test
out public sentiment.
The thought prevails among some
administration spokesman that if
the American people can be brought
[ to realize the seriousness of the
European situation, they will as
patriotically subscribe to measures
for terminating this menace as they
did to finance the war.
clue to how the financial interests
of the country, backed by the gov
ernment. will proceed to afford
financial relief to Europe