Evening star., 1922-05-16

war debts and %reparatlonsg he SAl0
that the British people are determined
moment
HE frankly told the business men
how imperative II Is that "you and
we, the great Anglo-Saxon people of
the world, should not only stand to-
gether, but work together with the
greatest possible harmony for the, re.
alone the reconstruction Of Europe
which, whether we like it or not,
has been placed upon Anglo-Saxon
shoulders. but the whole peace of the
world depends on US. and is our nat
urai heritage, and we must assume
the burden and face our responsible
operation of America and Great
Britain there can be no permanent
peace In the world for It's people,"
Savings Greatly Needed.
I'VE cannot, under any considera-
ttpn," he said. continue to spend in
the present lavish way on administra-
tton or public services, and 1t is the
prime duty of all those engaged in
industry and commerce to not only
suggest to the administrators Of their
ingsscan be made, but to imperatively
Insist on those savings and see that
they are actually put into operation
/, while most people are In agree
ment that money should be spent on
education, the prime necessity in
every country Is to- feed and clothe
ing up. and to look after their health
and then educate them, and In this
way alone can the Industrial and
commercial productive capacity of a
country be maintained.
I'm normal times you and /. as pru-
dent men of business. would have
kept on reserve substantial amounts
to meet the fall which we knew was
inevitable in the value of our stocks
These reserves have been absorbed
by taxation, but the worst feature OF
the situation Is that whereas the
value of these stocks has now dis
appeared. the liability to taxation
against the values on which they
were, based still remains, and what
was intended to be tax on income
has now become O tax on capital
with disastrous results to many well
established and we'll managed con-
Germs in all the European countries.
"One Of the most disastrous fea-
lures about this situation is the fact
that many of the smaller concerns
seem fated to disappear, and they
were, after all, most excellent train
ing ground for industrial and COM
mercial men.
Will Pay All Debts.
1.-THE external debt owing by the
United Kingdom was entirely in
CURED by the United Kingdom in
financing France and Italy during
the war. There is an absolute de-
termination of the British people
to pay the whole amounts they
owe at the earliest possible mo-
ment, but I will not hide from yot,
the fart fhQf fhic 10 Sc L.
the resources and the courage Of the
British people to the very utmost.
There is only one way in which the
worlds debts and the reparation
money can be paid. and that is by
vast and continuous efforts on the
part Of the people of the country who
nave to pay, and a great Increase in
productive capacity per head of popu-
lation.
1t is highly detrimental to the
world as a whole that the standard
OF living by coercion Of this kind in
any one or more countries should be
reduced to SO low a point that it
ducing goods through low rates of
wages at cost which would funda-
mentally injure the export trade and
the well-being Of other countries.
There has been too great an ef-
fort to throw off the anxieties and
the strain Of the war by excessive
recreation and gayety, and this has
been detrimental to the productive
work which should result from the
individual.
Zone Of the great difficulties in the
way of free trading today is the ques-
ton Of exchange.
Ways to Improve Exchange.
There is no royal road to sudden
Improvement In exchange, 1t depends in
the first instance entirely upon pro-
ductive and honest work. In the Sec
ond instance on the faith and integrity
of each individual nation. No confer
ences Of any kind will adjust the ex-
changes of the world! l am Of the
strong conviction that the less politi-
attempts to adjust the exchange the
sooner We are likely to reach safe and
steady basis on which we can trade.
II am able to report to you many dis
tinct and hopeful signs in Europe. and
particularly in Great Britain. of real
highly placed trade unionists in Eng
land have come to realize that the
policy of advising their members to dc
the least possible amount Of work for
the maximum wage which they could
squeeze out Of the public is funda-
driving trade away from the country
The other great advance toward real
production Of goods at a price at which
they can be sold Is the fact that the
trades unionist has now realized that
to use his funds for political purposes
namely, a combination Of unions to
menace the life OF the community, has
proven to be q total economic failure
There has been a considerable fall
in the wholesale prices throughout
Europe. Unfortunately, retail prices
have not fallen as rapidly In
with the wholesale figures
Unemployment stin Serious.
Unemployment is still very general
erea,sss 81 ali pishfRs IS sh
owing to the fact that we manufac-
tured on such large scale during the
war that the adjustment between oul
trade and that OF other countries mus
still take some time. There are still
in Great Britain. The consequences
Of unemployment and the economic
conditions created by the war have
caused in every European country
panic legislation by the government
concerned. which has very frequsntl,
Of these tariffs are now in operation
with disastrous results. They have
not cured the unemployment question
at all; in fact, they have rather &C.
centuated 1t, and public opinion is
now swinging around gradually tc
the removal Of all possible barriers
in, the realization that in this way
alone can the ordinary channels OF
trade be successfully opened ant
steady employment found for the peo.
pie.
"There have, as you know, beer
many, conferences In Europe, the
most satisfactory result Of which ha.
probably been that the statesmen OF
know one another personally. They
have also held out some hope for re.
adjustment from time to time, which
has carried the people of the various
oil fhroNoh ~ "a o,,r,