New Britain herald., 1922-01-04
Senator Owen Advocates Giving
 Bankrupt Europe Half Century
 Time In Which To Pay Her Debt
Likewise Suggests Euro pean Federal Reserve Bank Linked With Ameri- can Reserve System.

Washington, Jan. 4.-The establish ment Of a European federal reserve | bank providing a gold secured cur rency and linked inseparably with the American reserve system from which | it would draw it's resources and se- serves, was advocated today by Sem ator Owen, democrat, Oklahoma, as a | basic move towards restoration of stable economic conditions through out the world.
 In an extensive speech in the sen ate in which he dealt prehensively with post war conditions, he suggested | in connection with the proposed re- serve bank the following proposals for American aid in world rehabilitation
 Postponcmcnt of Debt That we should postpone the 1 final payment of the world war debt In the United States by extending the payment over 50 years; that we should not for ten years collect any amount under the sinking fund.
 '2-That in arranging the payment of Europe's debt to the United States we should extend time to Europe ne- cessary to enable them to readjust their affairs and regain their produc- tive power and that we should not for ten years demand of them the pay ment of interest due but allow it to merge with the principal.
 Rate of Interest
 "3-That we should put the interest rate at three per cent of Europe's $ bo JTpit lot
 He at the same time submitted to the senate bill to amend the federal reserve act so that establishment of | foreign banks would be possible. He hoped that the European bank should be owned by the reserve system of the United States and that from the 12 | banks here it should draw a total of $500, 0,000,000 in gold as reserve. This, he claimed, would in no way impair the reserves or sources of the Amer ican institutions, would enable foreign banks to issue o,00o,000 in notes backed up by gold as 100 per cent commodity bills
 Standard Currency
 Secured currency is the sorest need of European trade at present, he de- clared, adding that if the United States provided such gold backed medium of circulation and then de- layed collection of money due it, from the demoralized countries, it would do much toward reviving the production power of the whole world. He asserted that only through restoring the pro- ductive machinery of Europe could there be safe and sane economic con- ditions.
 "The one great outstanding factor breaking down confidence and de- stroying the validity and desirability of contracts in Europe" he continued, lis the violent imitation of currency through the printing press. In some countries of Europe people have been compelled to abandon the making of contracts in terms of currency and have had to resort to the clumsy sys- tenn of barter-so many bushels of po- Itatoes for so many bushels of corn or coal.
 Manufacturers Worries
 How the manufacturers contract goods for future delivery in terms of marks when the mark at the time of future payment threatens a high per centage of loss? How can merchants buy and sell in terms of marks or other appreciated currency when such units stretch from one value to another without notice?
 "The outstanding factor that re- tards restoration of European indus try and commerce then is the lack of gold secured currency. Thus, he United States is able to provide the means of supplying currency secur- ed by gold. redeemable in gold and secured at the same time by merchant able commodities that in themselves open and renew the ways of trade"