The Marietta journal. (Marietta, Ga.) 1918-1944, 1922-11-30
Finance and Farming
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(By Martin Amorous.)
CONTINUED from last weekly

Continued from last week.
enhancing is also illustrated by the Eleven Billion
Dollar Loan, made by the United States government to
England, France and other European countries during
the While the of the loan is stated in gold
dollars did not actually deliver them the gold This
amount in gold did not exist in the world did Is
of this amount exist in the United States.
We provided them "credit" or checking account in
our banks through which they settled with merch-
ants for powder, shot, machinery, meat, -four and all
products of agriculture and factories
These debts due and should be paid US, but
these people unable to pay in gold, this amount
is not in existence (there being only eight billion in
the whole world and the people of the United States
have about four billion of that. They cannot pay in
cash. 1t physical impossibity for these countries
to dig that much gold The worlds annual product of
gold is only $50 million dollars Hence it is plain to
see this debt cannot be paid in gold in generation
its immense resources 1876 years accumulate by its
people, three billion in gold Hence, settlement of the
debt be brought about only by FINANCING divided
rate.
President Harding has asked the public to tell him
how collect this debt Mr.. Mitchell Palmer fnan-
cier of Michigan, has submitted answer, plan
of extension for fOrytwO years Europe to pay annual
ly 4G, this amount to include principal and interest
This will require total payment in gold of eigh-
teen billion at the rate of 440 million each year. On
it's face it looks liberal and fair, but in my opinion is
not complete President Harding's question,
it lacks essential element of COLLECTION, name
ly the ability of Europe to pay these annual Install
ments as due The settlement of those debts, with
sound bond issue term Of years would, fixed
basis Of credit be Of great circulating value to the COM
merce of the world But there appears any question
financial disaster not only to Europe, but to the
United States Hence, might be better off to carry
open account than to- close the account with uncol
lectable notes. Under that plan asking Europe
| to pay annually MORE GOLD than the WORLD
produces annually.
1t reasonable to suppose they garner each year
all the gold that the world produces They pay
if will take products instead of gold They get
some gold from other countries by the sale of their
products but they will need to sell 400 million more
of their products than they buy from Our tariff and
other protective ) laws be changed permit the
importation of their products This, in connection with
Mr. Palmers suggestion, will finance the collection of
the European debt without injury to Europe to the
people of the United States.
The wisdom of the administration and the financial
thought of the country separate and apart from their
personal environment must be used with great careful
study to solve this problem to well Europe
/ from economic disaster.
/ In my personal business career often found some
debtors in this European FIX. took in settlement
the principal and knocked off the interest and some
times only part of the principle and again in products;
and each turned out co be good FINANCING. On a
| ten thousand dollar debt once offered 500 in
cash and 500 in five year note refused the PROPOSE
ton and did mighty poor financing, lost it all at the
end of lawsuit, paying big lawyers fee in addition
! (To be Continued)