New-York tribune., 1922-01-12
ChnseNational Ecoromis,Ad-
dresses "McmOrial to Next
International Economic
Conference" at Genoa
Drastic Currency Reform
Increased Taxes and Cur
tailed Expenses Suggest
ed With Other Points

economist of the Chase National Bank,
made public yesterday. Added inter-
est Is lent to the memorial by the
calling of the Genoa conference in
March, an event following the drafting
Of Mr. Andcrson's proposals.
The memorial presents the following
as the main items in any fundamental
solution Of the foreign exchange prob
,em or tho problem Of trade with Eu-
rope,
81. PUBLIC FINANCES
"(a) Taxes must be greatly increased
and public expenditures greatly dmin-
ished. so that current revenues Will
not only meet current expenditures but
also suffice to permit some amortiza-
ton Of public debt This does not
mean merely that budgets must be
balanced, since the term budget is
often misleading term which omits
major items Of expenditure.
Fund Floating Debts
"(b) Floating debts must DO funded
into long term issues.
"2. CURRENCY.
drastic currency reform Is called
for, aimed at an early restoration Of
actual sold redemption Cor Of redemp-
ion of the local currency in gold ex-
change). In Great Britain a restora-
V'oii " |'e olu SOiu pa Ivy Snou!u De
ooked for. Most Of tho Continental
beligerents, however. will do best to
establish new and much lower, gold
pars. Restoration Of the old gold pars
would involve such heavy increase in
the burden of public debts and such
violent declines in comm odity prices
IS to make it almost Impossible to ac
complish. More is to be gained bv
early restoration of stability than By
aiming at remote and improbable
restoration of the old pars. Fluctuat-
ing paper money is the most serious
single impediment to industrial prog
ress in Europe.
"3. GERMAN INDEMNITY.
"a rational, economic settlement o.
the German indemnity question must
replace the political settlement dictated
to Germany in the spring Of 1921 Ger
many should be made to paw what she
can, but France, Belgium and Great
Britain have nothing to gain by a con-
'inuation Of the present demora iza-
ton OF Germany.
"4. TRADE BARRIERS.
"Irade relations within Eurone must
be made far freer than thew now are
and IN particular taliif barriers among
ne small states Of oastcn Europe must
be moderated very greatly.
To Revive Industry
"5: INDUSTRY AND OUTSIDE CAP
ITAL.
"industry IN Europe must revive. It
can be made to revive, however, if the
rel orms above indicated are accom-
pllshed and If outside help in the
torm OF new capitSl Is obtained IF the
the outside help will be readily forth
coming"
Recognizing the virtual political i'm
possibility Of accomplishing needed
neforms under existing conditions. Mr..
anderson holds that the finance min
sters In Europe appreciate their i'm
portance and that, given outside sun
port, they would be able to accomplish
hem. He suggests that a comprehen-
slve settlement might be worked out
between the governments Of Great
Britain and the United States, together
With the bankers Of Great Britain, the
United States and Japan, as party of
the first part, and the former Continent
tai belligerents as the party of the
second part.
Control over expenditure of the new
funds, Mr.. Anderson says, should not
prevent their free application to pur-
chases in the cheapest markets. He
further dlsclaims any proposal for
cancellation Of the British govern
ment's debt to the United States.
Respecting exchange stabilization
measures, Mr.. Anderson says;
"Schemos for stabillzing the ex-
change rates which do not strike at the
harmful. Exchange can be 'pegeed'
through borrowing in the Amer can
market, SO long as American lenders
will supply unlimited dollars for the
purpose. This was done during the
war and for five months after. the
greater part of the dollars required
being supplied by the United States
Treasury. 1t was necessary during the
war. After the war it did great harm.
Extravagant Expenditures
European moneys, validated by the
pegglng. process, were spent eXtrava-
gantiy tor American products, includ-
ing luxuries, designed chiefly for i'm
mediate consumption. The revival of
European exports was hampered at the
same time that imports to Europe from
the United States were increased
Francs and lire would buy more in the
United States than they would buy at
home. Industrial revival in Europe
upon the United States Treasury was
unendurably great. and it is impossible
to suppose that either the American
government or American banking in
tercsts will again assume It,"
Schemes for an international for
eign exchange bank or for foreign
exchange clearing house Mr. Anderson
rules out on similar grounds. pointing
out that successful functionng of the
bank, on the one hand, would depend
on an unlimited supply of American
dollars and that the clearing house,
on the other hand would not Clear"
measures designed to help the ex-
change problem" the memorial con.
tiMues, may properly be made part,
however, Of the more comprehensive
settlement above outlined. Part of the
proceeds of the new loans made by the
United States might we'll take the
form Of gold to increase the reserves
Of the authorities in Europe issuing
paper money (chiefy central banks),
so as to facilitate their resumption Of
actual specie payments. A specific gold
loan to Great Britain might be in
cluded."
Livestock. MeatA Provisions
Yesterday. Yearago.
prime. 100 lbs $500 s.7s .lo.ooe11s5
D ssc beef