Imperial Valley press. (El Centro, Calif.) 1907-current, 1923-01-27
PREPARATIONS AND ECONOMICS
By ROGER VI, BABSON

First, let realize, that the coming to
this country Of Stanley Baldwin, British Chan
cellor Of the Exchequer, Montague c. Norman,
Governor Of Bank of England and their associates
from the greatest empire in the world with hats in
hand and begging for mercy is one of the greatest
events in our financial history For centuries Great
Britain has been the worlds greatest creditor and all
nations, including our own, have owed the British
Empire billions of dollars.
The war turned the financial world upside down.
Certain great nations like Germany emerged bank
rupt France the worlds greatest investment nation
emerged q debtor; while England, to whom everyone
came for advice now comes to Washington for help.
Truly this is the most dramatic economic and financial
event in the history of our nation 1t also emphasizes
the fact that we have great financial responsibility as
well great opportunity. Therefore, it is with this
thought in mind that we must make our decisions.
This whole question Of reparation, is bound up
with sypathes, politics, and national feeling. Owing
to the latter, without doubt, great many people in
our country synpatlze with Germany, and many
Others through their love for Ireland hate England
Frank study of the situation however, should
vince any disnterested party that Germany IN the
position of burglar who attempted colossal steal but
caught and defeated IN his plans Irrespective of
the question of furnishing this burglar all must admit
that he should make amends for the goods which he
partly got away with and destroyed France, there
fore, should not be criticized for insisting that Ger
many restore, far possible the property which
destroyed and damaged in her attempt to burglar
lie. Livery dsnterested party must admit that this is
reasonable. France is asking of Germany only what
any one OF us would ask OF neghbor who attempted
the same thing IN our community
The reason that France has recently lost sympa-
thv in her negotiations with Germany is due to the
fact that she going her problem in the wrong way
Frances difficulty is that she is Inconsistent She
vents certain economic law appIy TO her but
wants to suspend it in the of Germany. Perhaps
this is more or less true of all the allies, especially
when they say that they cannot afford to their in
debtedness the United States. Yet when looks
at the statistics he finds that England France, Italy
and all the allies combined the United States only
about ten billion dollars while they are demanding OF
Germany alone Preparations of thirty billion dol
lars! Of if Germany can pay any such amounts
as France demands there is absolutely no doubt but
that England France and the rest OF them can very
easily smaller amount TO the united 0LaleS
President Harding and his Cabinet, and all others who
have looked into the matter evidently appreciate this
situation.
Up to the present time England IS the only one of
the allies who has made an honest attempt to return
any money to U.s. England is paying interest on It's IN
debtedness while the other countries have sent
tically nothing 1t is true that England has commits
sion here today pleading mercy but we should be far
with England and recognize that she has made her pay
ments thus far accordance with her agreements AS
to what we will eventually do with these foreign debts
cannot be foretod at the present time Certainly 1t
would be useless to cancel them today and nave these
European nations go on another great spree or speo
our money playing military poker Ii, however these
nations would repent of their SINS dls6and ther arm
les and live honestly and decenty believe the united
States would be glad cancel the Indebtedness or 90
anything else which would truly help. On the surface
the difficulty with Europe IS financial; put stats
cal study shows very clearly that the real trouble with
Europe is spiritual. Before We or any other country
can help Europe the European nations must change
their purposes, motives, and attitude toward COO and
Until this time comes I cannot advise anyone to
for the bare necessities of life Europe has surplus
which it can use either to maintain armies or pay IN
teres on its Indebtedness but it has not surplus enough
to do both Europe is good deal like the steamboat
on the Mississippi which Abraham Lincoln used to tell
about. The boiler capacity was enough TO 6lo" me
whistle or the boat but not enough to DO both
When the whistle blew the boat had to stop. AT the
nresent time Europe seems to desire to whistle rather
than run Until Europe changes its desires and puts
its energies ON running instead Of whisting wise IN
yestors will not hold European securities On the other
hand believe that when Europe quits squabbEng ana
+O O produce,
opean securities will be perfectly good This Is true
not only as the money owed by Europe to the nde-
nendent investors of this country but also applies
ia the ten billion dollars which owed to the United
States because these debts all combined are less than
France clairas Germany alone is able to pay to her
This is why foreign exchanges are SO little DIS
turbed and business continues to be good Even the
oercbing of French troops into Germany seems to al
feet our markets very little, The BabsonGhart now
above the KY line indicates that general business
tgnde at , per cent above normal which is very good
for the time OF year, From the head lines in the
napers one would think Europe is going to smash,
and England into bankruptcy. Do not fear-when
# will come back very rapidly. In the meantime,