Phillips County herald., 1923-03-15
CLEAR CUT STATEMENT
OF EUROPEAN PROBLEMS
More Economics, Less Politics
Seen as Necessity-Sound
Money Required.

Money Required.
The problem Of European rehabil.
tatlon is set forth in simple an
clear-cut terms in a statement OF tn
general principles involved, prepare
Tor the Journal Of the American
Bankers Association by B. M. Ande,
son, Jr.. an economist of nationa
'eputation, who has devoted particu
ar study to Americas interest in tn
foreign situation. Mr.. Andersen
schedules these main principles q
follows:
1. Free play Of private enter.
prise 10 the great hope Of the fu-
ture. This means, on tho one
hand, that governments should
withdraw a. rapidly as possible
from the practice Of bread sub.
sidies, unemployment doles, pub.
lie operation and control Of In
dustry, and the like. It means,
on the other hand, that many
governments must perform far
better than they have been per.
forming what ls perhaps the
greatest economic function Of
government = the provision OF
sound money a. a basis for safe
business.
2. Economic considerations
must be given priority over politi.
cal considerations, and steps to.
ward rehabilitation must be based
on . realistic summing up Of as.
sets and liabilities.
3. Patchwork solutions deal.
Ing with only one or two ele.
ments Of the problem are unlikely
to be successful. Just because
reparations and interallied debts,
public finance, currency re.
form and 90 on are really tied
together, Il Is necessary that we
should undertake to accomplish
all Of them In one comprehensive
plan u we are to accomplish
much In connection with any Of
them.
A Comprehensive Plan
4. A comprehensive plan
should undertake to accomplish
the following thinss:
(a) he restoration OF the money.
II con ,-aental Europe to u gold basis
Since this obviously cannot be don,
or most Of the former belligerentl
1t the old gold pars. It il necessar,
hat newer and much lower gold par,
'hOuld be established. at which go,t
redemption can be speedily begui
md certainly maintained. In th,
.asc OF those currencies whose value,
iave approached the vanishing
,oInt. even more drastic measure,
nay be necessary.
(b) Public finances must be re
ormed by such drastic increases II
axes and such radical reductions Il
expenditures as will enable the gov
,rnmcnts to pay their way without
urther increase In domestic debt
floating debts should be funded into
ons time issues.
(c) A workable adjustment OF the
problem based ON eco
ionic realities Is essential.
(d) Artificial trade barriers mus
,e greatly modified.
(e) The governments Of Great Brit
lin and the United States. In consid
sration Of radical reforms on ths
Of Europe. can well affort
o reduce greatly or even cancel th,
lebts Of their continental ailies.
% The bankers OF the United
States. Great Britain. Japan and per
laps other non.European countries
n consideration OF financial reform,
n continental Europe. should. ant
doubtless would. be ready to place
With the investors Of their countriei
blocks Of continental se
'uritIes 10 provide necessary work
nE capital. to facilitate the hnancia
md currency reforms and to assisl
n Industrial revival on the continent
4 Europe. taking great pains that nc
,art OF the new loans be used fol
purposes.