The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-02
LONDONS OUTL OOK FOR 1922
OPTIMISTIC, WTTHPROVISIONs
Greater Financial CO.. Operation Indicated, But
u. S. Aloofness Checks Confidence

after the prolonged strain of war.
and the question Of whether some
Of the other countries become bank
rupt or not will undoubtedly de-
pend upon whether the United
states co-operates in any general
plan of assistance.
America as Banker,
Moreover, in this connection it Is
pointed out by many in the London
money market that a peculiar re-
sponsibility rests upon the United
states IL only by reason Of the fact
that the war has secured to her
the position of being the worlds
creditor and also the holder Of half
the worlds supplies of gold. AS
Stunning that the position had been
reversed, and that as result OF
the three years neutrality this gold
was held in London and the favor
able credit balance was on our side.
there is no doubt that, subject to
wise conditions. London would have
duly fulfilled her role as banker
to the world. That role. however.
has for the moment passed int
Americas hands. and the point
which London makes Of that cir
cumstanCe is this. America is, Of
course, the hest judge as TO the
use She makes of the present op-
portunity, but should it so happen
that she virtually sbstains from
financing in any important degree
the recuperation of Europe. then,
of course. the great economic prob
lem arising from the upheaval OF
trade following the war must 70
that extent be complicated through
the fact of gold. the great basis
of credit, both international as we'll
as local, having drifted to a quar-
ter from which its power to fertii-
lie trade activities throughout the
world has become impaired.
Nor must the question OF the
enect of inter-allied Indebtedness
upon international politics be left
out OF consideration. The city's
views upon that matter can be stat
ed very briefly and tersely. 1t is
considered that not moment
should be lost in getting the debt
from ourselves to you put on a
business-like basis. with regard to
all the other countries il is quite
hopeless for America or Britain to
expect one farthing for many a
year to come. Whether under those
circumstances the policy adopted
should be one of forgiveness or
prolonged deferment must be left
to the judgment of each creditor,
but those same creditors will GER
tainly do we'll to put out of their
minds at once any idea of full re-
payment within the lifetime of the
present generation.
Finally, the city is moderately
hopeful with regard 10 the interna
tional political outlook on the
grounds that the Pacific treaty, IL
passed, should prevent the possibil-
ity of any troubles arising in that
connection. which it is felt that II
the economic troubles which have
followed on the war do not con-
stitute bond for common action
on the part of the stronger powers.
such as Britain and America, il
speaks badly not only for the re-
sources. but for the moral standing
of postwar civilization. In any
event the return to general pros
pcrity must be very slow. but the
city believes that the quickest and
safest route lies along the lines of
coordinate effort in the immediate
future to aid some of the distressed
countries of Europe.
Concerning THE monetary and
trade outlook (for the two things