Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-10-26
SAYS WORLD IS
BEING REDUCED
To BANKRUPTCY
BY ITS LEADERS
People Should Insist That
Statesmen Change Their
Political and Economic
Policies, Says Briton,
STRONGEST NATIONS
ABROAD FACE RUIN
Change of Policy That VIII
Avert Catastrophe To-
ward Which the World Is
Moving, Is Needed,

WdIu WIllCIl lIl6 WUIlu 10
Moving, Is Needed,
New York, Oct. 25.-Insistence by
the people Of all nations that
statesmen change their political
and economic policies is the only
means of averting an approaching
world catastrophe. Sir George
Paish, English economist and for
mer advisor to the British treasury,
said tonight in an address pre-
pared for the thirteenth annual
convention of the American Manu-
facturers Export association.
"The statesmen of all nations"
he declared, "are engaged in n
common effort to prevent the ma
tons from meeting their obliga-
tom to each other and thus reduc-
ing the whole world to bankruptcy.
Already the policy of the states
men of Europe is fast bringing the
strongest nations of Europe to
ruin and before long the states
men Of the other nations OF the
world, If permitted to do so, will
bring their countries into similar
condition.
Disastrous Consequences.
"It is therefore of the greatest
possible moment that the business
men and peoples of all nations
should seek to understand and to
realize the disastrous consequences
that must ensue from the present
policies of those responsible for ma
tional and international affairs.
and should insist upon such change
Of policy that will avert the catas
trophe towards which the entire
world now is moving with eyer-in-
creaslng rapidlty."
Sir George charged that the
United Stntes was contributing to
the general economic chaos by its
new tariff law and by refusing to
accept payment for any of the OBJ
! legations due her in any medium
Of exchange other than gold. De-
claring that he was not criticising
! the United States, which, he said,
! bad done during the war, 'and un-
/
ilized nations could expect Of her,
/ he said:
"A creditor cannot refuse to take
payment of its debts in the goods
or services which tho debtor ma
tions can supply directly or indi-
rectly, and therefore the endeayor
OF the American government 10
prevent the import OF goods and
produce by erecting tariff or 9TH
er barriers for the purpose of
| keeping out the goods of other ma
tions is action which l am con-
vinced neither they nor the Ameri-
can people have fully considered. =
Placing Gold i'm Treasury.
He said the American govern
ment, by placing gold in the treas
ury instead of in the banks. where
IL would be available for trade pre-
vented "the natural beneficial ef-
feet of gold exports"
The gold he said, "might just as
well be consigned back to the reefs
from which it was extracted" The
American tariff policy, he added,
did not differ from the action Of
/ the European nations in erecting
tariff barriers to the import of
goods from the nations indebted
to them either for towns or for
reparations.
/ "BungIcd Their Tasks"
! Sir George said that the men
responsible for the settlement of
/ international financial and econo-
mic problems had bungled their
/ tasks and that it was up to the
D 10 eft
the problems for themselves.
! Turning to postwar conditions.
| Sir George showed that the debts
then created contributed to destroy
| productive power, reduce selling
and buying power. The borrowing
nations. he said, We're forced to
buy more than before the war and
were not able to sell as much.
The present situation is compli-
Gated, he said by the disappearance
| of the Russian market and tho
practical disappearance of Ger
many as a factor in reconstruction
because of the enormous repara-
tions debt fixed on her. Another
dangerous factor, he declared, was
the fact that nations to whom
money is owed refuse to accept
payment in the goods of the bor-
rowing nations.
ain the debtor nations,' Sir
George said, 81 do not include
Great Britain. Great Britain is
still the greatest creditor nation in
the world.
"The suggestion has been made
with regard to Great Britain, which
owes to the United States govern
ment a debt of about thousand
millions sterling, that payment
should be made in the present for
eign investments of Great Britain
not inter-allied securities. but iu
pre-war securities.
! "This could be done. Great Bri-
tain could give to the United
( States in payment of her debt 4
thousand millions sterling of Cana.
dian, Argentine, Australian, Indian
South African, or other securities
and the debt could be paid off.
Would Not Solve Problem.
"But this would not solve thu
problem. 1t would definitely de,
liver Great Britain from its obliga,
tions, but il would not make an,
essential change in the situation.
America does not need to pur,
chase the products of the countrie,
in which Great Britain placed /,
much OF her 'pre-war savings, an,
more than she needs the produc,
Of Great Britain, indeed she need
them less. The same situation 4
equally true of Argentine,
ut is clear that whatever meth
cd is adopted Of repaying the deh
of Great Britain to America. IL,
difficulties will remain until Amer
lea is willing to accept paynnen
either in goods or services en- ~,