The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-01-09
By DAVID LAWRENCE


Bonds Against business Assets.
By DAVID LAWRENCE.
Especial Despatch to The Reformer)
Copyright 1921.
WASHI%GTON. Jan. 9.-Ec3uomic
reconstruction in Europe cannot come too
soon to please the United States govern
ment ana while the issuance of an invita-
ton to America to attend the big economic
conference to be held in Genoa, Italy. inns
plies very little at this time, nevertheless,
opinion is crystalizinS that the real plan
for world relief must como ont Of French
and British diplomacy
Prime Minister Lloyd Georges empha-
sis on the necessity Of Europe helping it
self without depending too much on
America i looked upon here a. Il direct
SEQUEL Of the Washington conference. The
British representatives here have not
failed to keep the prime minister posted
ou tire official view Of the American gov
crnment and 1T is significant that in the
very first speech he has made 10 the SUI
prone council he has recognized the prae-
teal aspect OF Americas position and
urged the French and other continental
nations to get together on 4 European
plan that viii merit outside support.
The British government was told in
formally not very long ago by Secretary
"
eCoR8mic reconstruction apart, of course.
from the vital question of reduced Mill
tary and naval ornaments.
Hoover's Views.
Mr.. Hoover expressed his views orally
at first and then summarized them i'm
writing for the British as follows:
Economic recovery of tho states i'm
eastern and southwestern Enron" fand
consequently a considerable fraction of
our own and Of world c0mmerce) il de
pendent upon each state erecting:
ID \ balance in taxation and c&
penditurc.
~ Currency reorganization and sta
go Wise control Of their exports and
imports.
90 Credits for reproductive pur-
poses.
1T is hopeless to expect that private
capital viii extend credits for exports to
these states upon any systematic basis
until the first three have been complied
with Furthermore. attempts TO secure
these three vital reforms by action through
various governments foreign II them Ii~lis
being wrecked on rocks Of conflicting pc
lTIcal objective Of such governments.
Ter MuIen Plan Would Help.
The Ter Mullen plan proposes to faciii-
tate credits for exports by the ordinary
processes Of business free from political
action. when these three primary reforms
have been enacted. This should act a.
a great pressure to secure tile reforms and.
if accomplished, * at once nine-teuths Of
the battle for rehabilitation of credits and
commerce with these states.
= have the feeling. however, that
something more is needed than export
credits To these countries if the three pri-
mary reforms are to be accomplished.
that is. some assistance must needs be
found to these states in credit for pur-
pose directly of currency reform. / have
already suggested in another place that
some action might be taken by the great
banks Of issue of the principal countries
looking to formulation Of Il plan to facili-
tate solution of this portion of the plob-
lem; thus again keeping away from pOiir-
ical action in the economic and financial
affairs OF each Of these states. Such
plan in no way replaces the Ter Muien
plan as the two plans would supplement
each ether.
Il may say also that l believe as vital
rs ali such steps are ttO which the Ter
Mullen plan would be an admirable con-
brought about some financial sterilization
in Germany all aOther European states
viii be adversely affected despite every eff
fort implied in amy of these ideas
The Ter Mullen plan TO which Mr..
Hoover refers was evolved ut the last in
ternational financial conference at B2us-
sells and embraced the listing of all avail
able assets of the business men of each
country and the issuance by governments
of certain bonds against those assets
which would be in the nature of a colgat-
cral or guarantee eff payment for pur-
chases made in foreigu~c3untries.
Germany and Russia Barred.
The plan does not apply either to Ger
many or Russia. The difficulty of includ-
ing Germany is that her assets are more
or less pledged as PREPARATIONS To France
Similarly. on account Of the chaotic con-
dition of Russian politics and the I'M
Willingness of the powers t. deal with the
Bolshevlk government, trade with Russia
has been Mt Il standstill.
The viewpoint here. however is closer
to that held By the British than the
French. When Mr.. lloyd George saws
that politically he is no more sympathetic
with Germany than ne was during the
war but that the amount Germany can
pay is not a sentimental but practical
question bis ideas find ready echo in
American official circles. The French and
british have developed strained relations
on this point and until the Washington
conference produced 4 deadlock on the
submarine issue the disposition was to
take more or less Indifferent view to-
ward the French British split The drift
lately has been to support the British
contention that economic I'ecGnstr uction
can never be accomplished through pulit-
zeal detectives but through material ex-
animation of the economic facts i'm the
whole situation.