New-York tribune., 1922-08-25
.CancelAHLoarns
Except British,
Banker. Advises
DR.. B. M. Anderson Tells
Politics Institute II. S.
Should Remit Third of
IL Billions Due Nation
Says Britain Is Solvent
Europe Could Be Revived
by Cooperation With
England, Speaker Says
specsa, Dsspa.on to rhe rrtosr.

England, speaker Says
| Special Dispatch to The Tsibume
WlLLlAMSTOWN, Mass, Aug. 24.-
Cancellation of $500, 900 900 of the
amount owed to the United States by
governments of Continental Europe and
cooperation of America and Great
britain in offering help under certain
conditions were the main points Of an
economic rehabilitation scheme for Eu-
rope advanced at to-day's session Of
the Institute of Politics by Dir. B. M.
Anderson, of the Chase National Bank.
Dr. Anderson's plan does not include
the remission of Great Britain's debt
to the United States. Among those
associated with DR.. Anderson in draw
ing up this plan were Paul D. Cravath
and former Secretary of the Treasury
David F. Houston.
DR.; Anderson puts the amount owed
by Europe at seventeen instead of
eleven billions. The eleven billions are
owed to the American government by
! European governments, but besides this
DR.. Anderson calculates European gov
ernments owe two billions to American
private investors and four billions in
open credits" provided by Ameri-
cans. In the latter category come the
sums employed in the purchase of for
elgn currencies now so deprecated.
Suggests Exacting Reforms Also
"A solution could be found" DR.. And
erson said, eff Great Britain and the
United States, the two great creditors
of Continental Europe and the two
great sources from which Continental
Europe may. expect to draw new cap
ital, would jointly take strong stand,
promising aid but insisting upon re-
forms as an essential condition of such
aid. During the crisis through which
we have just passed we have perfected
in the United States the institution of
the creditors committee as a substi-
tute for the drastic processes of the
bankruptcy court. The creditors of an
embarrassed debtor get together and
work out plan by which his affairs
can be Strengthened out.
"Great Britain and the United States
sitting as creditors committee for
Continental Europe might make the
following proposals for continental Eu-
rope:
~. Public finances are to be straight
ened out by drastic eurtailment of ex-
penditures, including military expendi-
lures, and by drastic increase in taxa
tion. The total expenditures of the
state should be less than the total
revenues of the state. Floating debts
should be funded into long term issues.
80. The fiuctuating redeemable paper
money of continental Europe, which is
the most 'demoralizing single influence
affecting business and production in
Europe should be restored to a gold
basis by resumption of actual gold
payments. Since it is obviously i'm
! possible for the Continental belliger-
ents to resume gold payments at the
prewar PARTIES, new and much lower
gold pars should be established at
which, resumption of specie payments
can be speedily begun and certainly
maintained
| SO. There must be an economic settle
ment of the foreign reparations ques-
tion which Involves q great reduction
in the total amount demanded, total
moratorium on payments for three to
five years Except as foreign Loan
may permit Germany to pay something
on reparations) and fixed gradually
ascending scale of payments for subse-
quent years to be determined and an
nounced now so that there may be no
future uncertainty regarding repara-
ticns.
"a. The elimination Of the numer-
Gus artificial trade barriers which diff
ferent countries Of Europe, fearful Ct
| imports from one another, have estab-
lished.
Britain Can Pay, He Says
'In consideration of these reforms
and only in consideration of these re-
forms the governments of Great Brit
ain and the United States ought to be
willing to cancel the debts of their
continental Allies to them. This does
not involve the cancellation of the
British debt to the United States gov
ernment. With revival in continental
Europe Britain can pay this debt read
lily enough. Britain is solvent cred
itor rather than an embarrassed
debtor"
"The proceeds Of new loans should
be employed only for necessary purposes
that is, for really productive pur-
poses. This does not mean that there
should be a requirement that the
money should be spent in the country
which makes the loan. Selfish re-
strictive policies Of all kinds should be
frowned upon.
"In this connection it may be we'll
to emphasize that if the present tariff
bill under consideration at Washington
is put through it will very largely
neutralize anything that may be done
to help straighten out the worlds
embarrassments."