The Raymer enterprise., 1923-06-21
A REAL PLAN
FOR WORLD HELP
Fred |. Kent Of American Bankers
Association Initiates Move to
GrappIe With Problem.
SUGGESTS TERMS OF U. S. AID
Proposes European Economic Aares
ments-esttsr World susInsss Tor
America In Return for credIts
and Partial Debt Cancellation

sno Partial Debt Canceilation.
Agreements BY Europe to make. In
exchange for American financial help
economic reforms that win insure
prontable international business for
tne United States. 10 the basis Of
pan Tor world rehabilitation worked
out BY Fred l. Kent. chairman Of the
commerce and Marine Commission Of
me American Bankers Association
MI. Kent, IS = delegate Of the associa.
uon. recently laid this plan before the
meeting Of the International Chamber
OF Commerce At Rome. He pointed
out that the United States has no
right to attempt to dictate to Europe,
out that when II comes to loaninr
our money We have right to demand
satisfactory Agreements before 70 do
co." He continued:
How America Can Come In
"A America has not the right to
demand that the budgets Of European
countries be brought into order. that
imitation be stopped. and that mutual
understandings between the Allies and
Germany be developed. these matters
can be approached only on the basis
OF what America has that she can give
to Europe in exchange for agreements
which she believes, II carried ont,
would result In increasing the trade
and commerce Of the United States In
srficient volume to Justify such &C.
tion
From the standpoint of America
the two questions Of primary impor
lance are. what .xation will be neces
sary to meet the requirements Of our
government. and, second. What income
viii be left to the American people
after the payment Of taxes. II the
Allied debts are paid in full the peo.
pls Of the United States will not have
to meet Liberty bonds outstanding
against them through taxation. II the
buying power Of Europe 10 not restored
the total national income Of the peo.
pie Of the United States will be less
than otherwise. II . portion Of the
Allied debts can be cancelled IN ex.
change for agreements which viii
promptly place European countries on
sound economic basis, the restora.
tion Of the buying power Of Europe
will be greatly accelerated. and the
total national income Of America will
be Increased"
An Improvement IN foreign msfkets
for American products ID an essential
element in Mr.. Kent's plan. He says:
If. after deducting taxes necessary
to cover the portion Of the Allied debts
cancelled, the increase In the total
national income Of America Is greater
because Of the greater buying power
Of Europe brought about BY means Of
such cancellation. the people Of the
United States would be the richer.
There would seem no doubt but that
everyone would vote for cancellation
II II would assure greater national net
income. with economic peace and
greater happiness for al peoples.
"The real question. therefore, IL
whether It would be possible to 90
operate with European governments
along such lines that. In exchange for
cancellation Of portion Of the Allied
Indebtedness to the United States
they will give agreements aiming to
correct those things In their coun.
.ries at present economically unsound
II Is not conceivable how mere can
collation. could be anything but harm
full, unless accompanied BY economic
read1ustment all along the line.
further. agreements along the
lines mentioned could not be made
effective unless the whole reparations
tangle 10 settled. At the same time
therefore. that negotiations are being
carried on In connection with any
possible trading Of the portion Of the
Allied Indebtedness against agree
ments that viii lay Z better founda
ton for progress toward prosperity
In Europe, positive agreements musi
BE- made between the Allies and Ger
many IN connection with reparatlon.
that can and will be lived up to.
A Loan 70 Germany
"A loan to Germany Of sufhcleni
size to restore her economic sItua
ton and enable her to make progres:
toward paying reparations. and which
came ahead Of reparations. with .
stabilized Europe. would be abso
lutely good. and II made at the re-
quest and for the benefit Of the
European Allied countries, II could
undoubtedly be placed In America.
"The constant friction which hai
existed between Germany and the
Allies because Of the reparatIons
would be eliminated. Confidence
would be restored 70 the peoples Of
Europe. whose badly shaken morale
u probably the greatest obstacle tp
the way Of accomplishment Of those