The New York herald., 1922-10-06
MKENNA SUGGESTS
INVESTORS BUY DEBT
Former Chancellor in In
terview Gives Ideas OH
! World Questions.
ADMIRES OUR BANKERS
Thinks Great Britain Would
Want America Active
on Reparations.
DOUBTFUL OF ISOLATION
Recalls Own Country's 'Unsuc-
cessful Attempt to Remain
AloOf' From Others.

Reginald McKenna, former Chancel-
who spoke before the American Bank
ers' convention on Wednesday, was
interviewed on world finances yester-
DAY in his apartments at the Hotel
Commodore.
The English banker answered freely
many questions on a wide range of
subjects and said he had been tre-
mendously impressed by the immense
success of the bankers convention. He
thought that the thousands of bankers
he had seen at the convention are a
credit to America.
Mr.. McKenna also commented on
the fact that he noticed great ad-
vancement of public opinion and press
comment in this country since he was
here last year.
"RecnIIs Splendid Isolation
Answering a question on what he
thought of an American slogan No
entagling alliances" Mr.. McKenna said: :
Il have no criticism of the policy Of
the people of the United States, since It
is policy that my own country en-
deavored to adopt for a long time. We
called 1t splendid isolation and for a
time 1t was a very popular slogan. We
found 1t only dream, however, and it
Is shown to be only a dream when one
observes how unwilling the country that
enjoys isolation is to be ignored.
America has interests all over the
world. Her citizens are everywhere.
She has considerable shipping and q
large foreign trade and has responsible
ties as we'll as interests. / believe your
experience in the United States will be
just the same as ours in England. that
the policy of splendid isolation does not
work"
Mr.. McKenna was asked to explain
some of the more intricate passages of
his recent speech before the convention.
particularly on how Great Britain in
tended to pay her debt to the United
States, and about the source of gold
| being shipped to this country to meet
interest payments. He said the gold
was from gold producing countries such
as South Africa, and had been paid for
by the export of English goods.
Always Can Obtain Dollars.
Mr. McKenna showed that Great
| oWneu dL ledSl SE,UUOtUuO,uVu
and perhaps s3,OOO.OOO, 900 of foreign
securities even now. and that she car
buy dollars with the interest on these
investments. That is one advantage oi
being a creditor nation. he said.
A large eXportable surplus is only 90
tainable when a nation gives credit
continued Mr.. McKenna and il Ger.
many is always to sell her whole g r.
plus production for cash she cannot
build up a large surplus of this kind
He thought Germany should pay some
reparations but that a conference
should ascertain just what is her eX-
portable surplus. Mr. McKenna said
he feared those who expect that she
can afford to make a large payment
will be disappointed.
Mr.. McKenna was unwilling t. give
an opinion on whether the reparati r
problem would be settled at the ap.
preaching conference abroad but said
It's ultimate settlement on a rationa
basis was assured and the settlement
would mean the stabilization of tn,
foreign exchange market. He believed
that Great Britain would welcome tn,