The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-02-11
u. S. Attitude On
Genoa Meet Unsettled
Americas Response to. Invi-
tation May Be Determined
on Last Minute Develop
mentS

mentS
Washington. Feb. 1-American
response TO the invitation OF m"
Allied Supreme Council TO bc rep
resented Il. th.- Genoa economic
conference viii probably be an
nounced Friday. il was said today
at the White House. At the same
time i, was stated officially that
tho delay j.: framing the American
reply had not been occasioned by
any connection with legislation
for the funding OF the debt OF the
foreign nations TO this country.
No indication Of the nature OF
the American governments re-
sponsc 20 the invitation was given
today but the belief has been "N-
pressed in official circles that the
attendanc. OF delegates actually
representing the t:;i;eG St2teS II
Genoa. i> differentiated from TN
Official Observers might be dcp"n-
den, upon the scope of tn" pro
posed discussions. IN this cQnnec-
ton il Was suggested in some
quarters that last ninite develop
la"ntS might determine this coun-
try'S attitude.
Matters likely TO be discussed at
the Genoa conference We're review
; cd extensively tonight by tho Fed
cral Reserve Board in its mon; hly
,.ullctin for February in which il
covered a broad field OF European
:: economic problems such as German
Preparations. the existing fiscal al
fairs OF the war nations. the gold
standard and exchange stabiliZa-
; tion.
According to the board Russian
and German questions are "practi-
! cally inevitable clements in the
existing European economic situa-
ton The issues at stake on these
ointS, however. the board declared
We're political in The broad sense
rather than economic and for this
reason the belief was advanced that
any plan adopted affecting the re-
| habilitation of Russia, Germany,
Austria and Southeastern Europe
generally would not be very likely
TO succeed because OF the natural
+: limitations 70 which it would be
! subject.
! Importance Of the Preparations
] questions TO European conditions
! was stressed by the board which
called attention 20 the unsatis-
/ factory position in which the
! questions had been left.
] Within the past month on
more" the board said. 1t has been
| 'contended more positively than
ever before that the PREPARATIONS
problem is an almost inevitable
=! clement in any discussion which
aims TO develop a general solution
Of Europena questions at hreg.'
Considering the best way for
( Germany 10 settle With France
/ during the next few years. the
board discussed a possible eXten-
sion Of the method provided m the
! WieSbadcn agreement. under which
payments would be made in Kind
in lieu Of cash. but added that
payments in kind will not, how
ever. ultimately solve the French
situction. because OF the large
! French public debt
x fundamental issue TO be dealt
with at Genoa. the board asserted.
would undoubtedly be the restora-
ton OF the gold standard or some
plan for the stabiliZation Of eX-
I change. No program for European
| currency reform however. has any
chance of success. the board con-
tended. until some sort OF an
! international agreement makes
i possible the balancing OF budgets
and the cessation OF Dfiation
through the elimination OF expen-
ditureS in excess OF the ability OF
the governments TO pay.
Any permanent rehabilitation OF
credit and currency systems. ac-
I cording 10 the best opinion, the
board continued. would necessitate
a return 10 Il gold basis but many
/; complex problems would first have
10 be solved in connection with
rcparations payments. with domeS-
tic and foreign indebtedness and
with the effect Of national policies
upon the amount and direction OF
current eXpeditureS.
The issues involved" the board
said. "necessita,ed far-reachins IN
! tcrcst adjustments that are likely
10 he the subject OF prolonged ne
gotiat;ons E.xtra-territorlal inter-
terence with power to raise money
or spend il is rightly regarded as
an interference with the sover-
eighty OF a state. and can only
DC justified in extreme cases