New-York tribune., 1922-04-24
of Financial Ex-
perts Urges a " orld
Council! Of Bankers to
Make Policy Effective
Loans Advocated
For Weak Nations
Curb on Tax Evaders l.
Declared Essential If
Budgets Are TO Balance
By Arthur S. Draper


l
GENOA, April 23.-The first def
mite steps proposed by the Genoa
conference toward the economic re
construction Of Europe are embodied
in a series of recommendations made
public tonight by the Financial
Commission after three weeks study
Of the measures which must be
adopted TO cure Europe's money ills.
The commission, made up OF lead
ing economists and bankers from al
countries. offers g program for re
building the worlds finances, but adj
mits frankly that no scheme for
stabilizing the purchasing power Of
the monetary unit can be fully et-
fective without coordination -
policy between Europe and the
United States"
five Suggestions Offered
Among the principal suggestions
made for reforms in currency end e1-
change are:
Banks Of issue should be freed
from all political pressure or ,nau-
cnce. Where TO banks OF issue ex-
i5t they should be established.
Ali European currencies should be
placed on gold basis
In certain countries where IL -
impossible to balance the national
budget et once external losns
should BE- foated. This refers pay
ticolar.y 20 Germany, Poland ana
Austria.
Al a suitable tine an international
convention should pa adopted "t>
centlalize and coordinate the oe-
mand for gold SO as to avoid wide
fluctuations in the purchasing power
Of gold
4 meeting Of representative cer-
tral banks should be held w;thou,
delay TO give practical effect 70
recomm 81 dations made at Genoa on
credits. The United States Federal
Reserve Bank would be asked 20 seu1
delegates.
The financial commission then set:
forth the principal matters TO be COY.
sidered By tho meeting Of banks O
issue when they begin consideration 0;
the problem of stabiizing exchange
rates. One point made is shat in FIX
ing the gold value OF monetary unit
it Will not be necessary TO make 1t cor
respond with the prewar value of trs-
unit. Another point is that gold bullion
is not necessarily the only reserve for
maintenance Of currency AZ its gold
value
Tax Evasion Problem
The omrGssion proposes that the
League of Netiona consider ways Of IN
ternational cooperation ITO rre7enc
tax evasion"
Discussing exchange rates. the com
mission asserts that "all artificial cor
troll of operation of exchange rates Is
futile and mischievous and should be
abolished at the earliest possible no
ment."
Taking up currency problems, th-
commission says that the time for in
fiation has passed, bat that in the
process of going from imitation TO de
fation II may be necessary for some
countries "to have assistance from
abroad"
The industry OF Europe cannot hore
for q permanent return to prosperity -
says the commits sion, $50 long as ii has
TO bear either directly, in the form %
taxation, or indirectly, in the form oe
imitation Of currency. the most insidi-
ous and Objectionable of all forms cf
taxation, q burden of government cy-
penditure which is beyond its cspsc.
ity."
Adoption Is Predicted
The recommendations OF the COM
mission will be submitted to the full
conference at its next plenary session.
and II is generally believed that they
will De adopted. IN conference circles
1t was said tonight that the powers
mean business. and on the lines LAID
down by the financial commission viii
call an early meeting Of representa-
tives of the principal banks. Such
gathering, it is suggested, may De held
this summer III London.
Sir Robert Stevenson Horne. Chan
cellor Of the British Exchequcr and
chairman of the financial commission.
believes that the recommendations
fore shadow real progress toward stabil.
lzation of world finances