The New York herald., 1922-04-13
BANKS TO BALANCE
WORLDS CURRENCY
international Conference Pro-
posed to Bring Back FL
nancial Equilibrium.
WANT US. PARTICIPATION
Ukrainian Premier Points to
Russia's Disarming and
Budget Reduction.

GENOA, April IL (Associated Press).
The necessity of bringing about equi-
librium in national budgets, if the
European situation is to be stabilized,
formed the most important subject of
discussion at the meeting to-day of
the subcommisson on finance, at
which Sir Robert Stevenson Horne.
the chairman, Chancellor of the Brit
ish Exchequer, proposed a special in
ternational conference of great banks
authorized to issue currency. in order
to study the best means Of attaining
equilibrium of world currency.
Sir Robert especial recommended
that American Federal Reserve banks
should join in the conference, so as to
make it really effective, and he
thought particularly that American
banks should be represented owing to
the great quantity OF gold concen-
trated in the United States.
The commission decided to make the
London experts report the basis of its
deliberations and to appoint another
subcommittee to examine exchange,
with second subcommittee to study
credits. the commission itself devoting
it's labors to the question of currency.
DR.. Andreas Hermes, the German
Minister of Finance, created some COM
motion by alluding to the question OF
lreparations. He declared that the Ger
mans had examined the London report
and were in accord on many points. but
wished to emphasize that Germany
would find extreme difficulty In estab-
fishing equilibrium in her budget while
obliged TO support heavy payments ey-
ternaliy. Germany. he promised. will
bring in practical suggestions later
Russia Agrees to budget Reforms.
! NJ. Rakovsky. soviet Premier of
Ukraine. addressing the subcommission.
eclared that on the principal question
the London experts report corresp 1ndei
with the wishes OF the Soviet Govern
ment. notably as regarded the ne ty
OF ending the issuance OF paper money
He added that the Sov'e. Government
had already made grea. efforts TO bal
ance its finances and that all but about
one-seventh of the deficit in the Soviet
budget had been covered. while the num-
Der of State officials har been reduced
40 per cent.
The prolonged war. said NJ. RalSovsky,
had ruined Russian finances. The Soviet
on January /, 1920. had 5,360.000 SOL
diers under arms. These had been re-
duced on January /. 1922. to 1.45o.0oo.
one-quarter Of that number being on the
frontiers. The military expenditures
had been reduced "a per cent. He
4 e.. les 1ad
but all will be useless until the great
masses Of gold. which really belong to
all countries, shall be distributed fairly
instead ce being concentrated in the
hands of a few nations. No ameliora-
ticn is possible withou. disarmament"
Return to Gold Standard Urged.
Emil Glackstadt. Danish delegate, who
was a member of the commission which
investigated the financial situation In
Austria. urged the imperative necessity
Of returning rapidly to the gold stand
ard as the real basis OF world cur
rency. and thus bring about equilibrium
in the budgets. He emphasized the ne
cessity OF adopting special measures to
restore credit in countries like Ger
many Austria and Hungary.
The question as to which subcommis-
sion should discuss the question or
finances connected with the reconstruc-
tion OF the devastated provinces OF
France and Belgium arose and Chair
man Horne ruled that II should be taken
up by the subcommittee on credit.
Sir Robert outlined the great goal Of
the conference as First, to establish
an agreement on the financial programs
of all Governments second, to achieve
the financial equilibrium OF the budgets
Of ali states. and, third. the establish
ment OF the gold standard as an effec-
tive monetary unit.
The report on financial questions pre-
pared by the Germans and presented by
DR. Rathenau. deals especially with a
plan for the stabilzaton OF exchange
through an international loan. and also
outlines proposal for universal none
iary reform. The German plan consid-
ers the reconstruction Of Russia ndis-
pensable for the successful issue OF any
such reform.
The sub-commission is composed Of
delegates from the five inviting Powers
and one representative from Russia.
Germany. Norway, Serbia. Holland, Lat
via and Switzerland.