The Washington times., 1922-07-21
PARLEY
FLAT FAILURE,
SAYS RUSSELL
Only Americas Surplus Gold
viii Revive Europe, Declares
Noted Economist.
By CHARLES EDWARD RUSSELL
Copyright. is3a. by Cosmopolitan News
Service.l .-


service.l 81. .
LONDON, July 2l.-The far-fsmed
international conference at the
Hague by which Euroepe was to win
economic salvation Is dead or dying
and the economists are hoping that
when the poor thing is decently IN
TERED nobody will again try to save
Europe by word of mouth.
II does no good: II only opens an
close view OF the
abyss. -..
British propaganda in America
will probably figure out In some IN
genious way that France is to oiams
for the collapse at the Hague. You
may have noticed lately that France
Is blamed for everything that soes
wrong, from cyclones to boils. IL
happens in this case that the favorife
indoor British sport OF cursinS
France won't jibe with the facts.
whether real or faxed. France had
no more to do with the bust up At
the Hague than Siam. The real
trouble was that the thing wasn't
workable. II couldn't be done. IL
was like calling q meeting OF the
ladies' sewing society when the mouse
was on fire. II Europe ever was 10
be saved by conversation II must
have been a long time ago. You
can't save 1t that way now.
U. 8. Is Involved.
On the other hand, the probable
consequences of not saving II make
economists vince and shtver. In
the United States we have the per-
fectly grand idea that this Is none
OF our concern--iet the old thing go
to the Junk pile, we should worry:
This is a pleasing frame of mind and
conducive to the best enjoyment OF
jazz and golf, but Il Isn't good bust
ness Judgment.
II Europe goes down in a crash II
will break more crockery In the
United States than ever was broken
before. People who think that we
live on ourselves like tribe In the
stone age, should try 20 think again:
There's a thousand ties, wires ana
nerves that bend toward Europe
commercially. where sixty years ago
there was hardly one. This fact jars
the good old theories of the back.
woods statesmen, but the fact Is the
prosperity Of Europe is the pros
perity of the United States.
That being the case the outlook In
Europe Is a little too ugly for COM
placent ease of the mind anywhere.
And, as It gets sharper. economists
are more and more reminded that II
American fina ncial leaders possessed
wisdom and foresight there would
not have been this trouble.
Not much is said here about this
in public because the fashion now
is to avoid anything that looks like
criticism Of America. but privately
they roast to a frazzle the over
rated financial geniuses OF Wall
Street.
When the war was over. II was
obvious that the first thing the
world needed was to get Europe on
its feet. and begin to produce and
consume.
To do that capably, there was one
place where surplus liquid capital
might be found. That was in the
United States. The rest OF the world
was as dry as a bone. The first
three years Of the war we diligently
applied ourselves 10 the great work
Of skinning our European brother
in his time Of distress and we did a
neat and artistic job Of II. We col
lected all the gold in the world and
so much more than was needed that
II stuck from the cracks.
AS soon as we quit killing one an
other the surplus gold should have
begun to flow back TO Europe In the
shape Of easy commercial loans to
help resume production and con.
sumption.
Cash Held Back.
Instead Of that course being fol.
lowed, from the wisdom Of American
financial magnates. II was decided
that Europe should not have a cent
and Wall Street turned loose their
surplus upon local promotions.
In the existing conditions, this
turned ou. TO be the worst use that
could be made Of the surplus gold.
Thousands Of enterprises were
started in American cities. Most OF
them added only to local pride and
the sum Of the worlds troubles.
They heaped up capital that Europe
needed and they Increased general
mass production for-which there was
no market until Europe recovered.
Meantime Europe Is still fiat on
her back. Every country is prac-
tically bankrupt. As long as that 10
the case, she will not consume the
normal quantity Of American sur.
plus products and the revival Of
business in America will be tom.
porary. We can't grow fat while
Europe grows lean.
II Is not too late still for American
capital to pull Europe up to the
mark, but the tasks would be much
harder, and would take much longer
than It would have, II started three