The New York herald., 1922-04-04

broken from It's moorfn8Ss II IS drlIt-
ing helplessly One of the first things
to attend to at the Genoa conference
is the question OF restoring exchanges.
We must have a sound basis to pro-
ceed upon. In this country wonders
have been achieved in this respect
think, because OF a very sound policy
not a popular policy-and, great
credit Is due the Lord OF the Prtvy
Seal (Austen Chamberlain) and the
present Chancellor of the Exchecuer
(Sir Robert 8. Horne) for pursuing
under great difficulties that sound
policy.
4 you must before trade can be fully
restored, be able to establish every
where the convertibility into gold. or
4 its equivalent, the convertibility into
the LIQUID assets lodged in the banks
Of the country, maintaining a free gold
market. That will involve the devalu-
alton of the currency, but the world
cannot wait until currency is restored
to power. What matters is, the stand
ardization at a figure which can be
maintained.
Tn relation to that, one Of the first
things is to induce nations to balance
their budgets. Until they do that new
issues will debase currency and ex-
changes will grow wilder and wilder.
That is a matter upon which. undoubt-
edly. pressure can be exercised in the
great international conference.
i Russia 10 Come Up.
should be real peace between nations.
| a.. ha
financier and the merchant will be un-
nerved. This leads me to perhaps the
most controversial part OF the issues to
come before the Genoa conference.
That is peace III Russia and with Rus
sia l am approaching a subject where
Legitimate prejudices perhaps cloud
reason. The doctrine, the demeanor
and the actions of the Bolsheviki un-
doubtedly have been of a character
that has excited just anger and made
it exceedingly difficult for US to exer-
else calm judgment when we deal with
problems relating to the country over
which they rule.
"Mr. Pitt was confronted with ex-
actly the same problem over u hum
dred years ago. The French Revolu-
ton was provoked by intolerable
wrongs. leading to the widest ex-
cessos. which created bitter and fierce
resentment In this country He had
to consider the problem of whether 1t
was possible to make peace with the
men who had been responsible. He
first endeavored to make peace with
the French revolutionaries in 1896. In
1897 he made second attempt: and
failure was due to the French dele
gates making an impossible claim in
Belgium.
pitt all those years had a good
many 'diehards' in his Cabinet
(cries Of Hear! Hear! with Lady As
tor heartily joining). / believe the
most brilliant member OF the Cabinet
took some very extreme views OF the
subject. but, despite that very great
difficulty with which he had to deal,
Pitt put forward his proposals. and 1T
was only the folly of the French revo-
lutionists themselves which was re-
sponsible for the consequences. Pitt
realized that unless peace was made
with the French revolutionists there
would be no peace for many a devas-
tating year-and there was not, for
eighteen years afterward.
i II am not certain the condition of
things is very much better. Until
pc ace is established don't believe we
are going to restore trade, business
and employment. Until you have peace
over the whole of Europe, until the
establishment of peace in the whole
OF Europe, there will be constant
element OF disturbance
i Earope Needs Russia.
There are constant rumors Of great
armies being built up, OF hordes OF
savage revolutipnaries ready to burst
upon Europe and reduce the country
to the same terrible condition OF de-
famation and famine and pestilence as
Russia. All this is an impenetraoie
tangle. Whether these rumors are
true. or whether invention. whether
accurate or exaggerated. cannot tell:
but this l know: that in trade and
business rumors are facts. There's an
other thing. for instance--the fact that
! those great revolutionary armies exist
produces some justification for the
huge armies Of other countries, for the
existence of this enormous Red army
I In Russia has led US to believe no
country in Europe could reduce its
forces. These armies will not be re-
4 duced until there is peace In Europe.
i Another great reason is that Eu-
rope needs what Russia can supply
Before the war q quarter of the ex-
ported wheat came from Russia. mil
4 lions of tons OF barley and rye and
other necessary things. tons or man
ganese, two-thirds of the fats required
by Europe and half OF the timber i'm
ported by the United Kingdom came
from there In fact. Russia is the
largest undeveloped continent in the
world. It needs capital: but won't get
it until 1t has peace internal as well as
external.
Russia Must Keep ObtiRa tions.
Germany cannot pay reparations.
or at least the fun demands. until
Russia Is restored What are the con-
dltions OF peace laid down at Cannes?
In substance they mean that Russia
must recognize all the conditions i'm
posed upon and accepted by civilized
communities as a test OF fitness for
entering the comfy OF nations. She
must recognize her national obliga-
tionse The country that repudiates
Its obligations because 1t changes it's
government is the country we cannot
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