Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-23
SAYS EUROPE
STORM CENTER
OF FINANCES
Two Big Problems Must Be
Solved Before World Is
Stabilized.
REVIEW OF SITUATION

WASHINGTON. Jan 25.--i he nations
of Europe must be forced to 4 frank
recognition of economic fundamentals pc
fore world rehabilitation eau success
fully be effected and the financial ex-'
change of nations be stabilized That Is
the conclusion of the United states see
ton of the Inter American High Com
mission. Of which Herbert Hoover, Sec
rotary of Commerce is chairman
In a statement authorized by the see
ton which palpably Is the Work oL MI
Hoover. two major problems are pre-
scented upon whose solution the much uS-
sired restoration awaits.
First. German reparation payments
must be placed on q basis calculated
to be within the power Of the German
people to pay
Second, the armies of Europe must
be reduced to permit the nations 10
balance their budgets by discontlnu-
ing imitation.
The huuug of the American section
reached as the result of recent meetings
aroused considerable interest in Wash
ington tonight. because Of the speeula-
ton regarding the possibility OF Amerl-
can participation in the international
economic conference at Genoa, March 5.
Although the statement cannot be re
garded as a direct reply to the recent
speech Of Premier Lloyd George the md
RAYMOND Poincare, the new French
premier, had announced Frances policy
the payment Of German separations in
full and in keeping with the terms OF
the treaty Of Versailles.
L. 5. VIEW OF
EUROPEAN AFFAIRS.
The position Of Mr.. Hoover and his as
sociates is taken here as an indication
of the official governmental view on the
IL If .r fvb bn-
fore the Genoa meeting or should be
brought up if the conference is to be sue
cessfuI. It is significantly the American
idea that nothing can be accomplished II
reparations and land armameuts are not
to be ignored or treated perfunctUrIly TO
serve some European political purpose
Call recently went for meeting Of
the Inter-AInericau High Commission to
discuss the exchange situation as it ar
fected the United States and the coun-
tries of Latin America and the United
States section convened to size up the
problems The conclusions as outlined In
the statement show exchange problems IN
the Western Hemisphere is SO bound up
with the situation in Europe that little Of
genuine importance can be accomplished
unless the continental countries of Europe
stood willing to clean house.
ANY consideration Of the effect Of eX-
change on the trade Of the American re-
public Is involved in the quest on Of
exchange stability tetween Europe and
the Western Hemisphere. said the state
nent Of the American section. so long
as the European vortex Of the economic
triangle remains unstable. the establish
ment Of stability in inter American e1-
change will be attended with difficulty.
REAL SITUATION
IN EUROPE.
"a review Of Europe's situatlon-the
weak disturbed and unstable storm center
in international trade and 6nance-draws
/ us to the inevitable conclusion that there
can be no sterilization Of exchange upon
any footing until there is cessation Of
imitation in the principal continental
states. Initiation is the result of nm
balanced budgets. which themselves are
the result Of the necessity expenditures
uDon reconsr ruction, the unsettled sttua
ton Of German reparafions, the maiute-
nance Of land ornaments. and increasing
debts The dist ributing forces are indeed
prdeominantly European and while e.
rope has made great progress in agricuI-
tural. industrial, social and political sta
bility since the war, the fiscal situation
continues 10 disrupt exchange with great
severity.
THE German government IS not meet
Ing us EPDdTtL4OA Otl-E it4hiAo ~
taxation: while other countries are IN
able TO mobilize enough taxable re
sources to cover their expenditures for
reconstruction. for military forces and
other purposes. There can be no hope
Of stability In the worlds exchange
until, in the first place, German repara-
ton payments have been put upon a
basis not only securing a definite flow
Of economic strength into the Just task
Of rehabilitating the devastated countries
but also calculated to he within the pr2c-
ticaI power Of the German people to pay
Furthermore. it Is necessary for economic
stability that land armanents on the con-
tinent Of Europe should be reduced.
Armies in many States are Of such size
as to necessitate continuing imitation,
either through currency or short time
bills
EFFECT OF
WASHINGTON CONFERENCE.
The situation in Russia and eastern
Europe has also a bearing upon the prob
lem. The total extinction Of economic
productivity in Russia from an export
and import point Of view seriously de
ranges the economy Of western Europe.
THE Washington conference on tho
limitation Of naval armament is a definite
and positive step in the only path that
leads to commercial stability and its eff
feet has already been felt in the ex-
changes Of the world"
Steps for the prevention of violent ex-
change fluctuations between the United
States and Latin America countries can
be taken the statement says. through the
redistribution of the enormous gold re-
serve piled up in the United States The
method suggested is by looms for re
productive enterprises and by specific
cold hams countries which T-r In
position to undertake the reorganization
Of their curreucies on gold basis
Copyright, 1922, by Public Ledger Com