The Glenwood post., 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 Agree
ments-Better World Business for
America In Return for Credits
and Partial Debt Cancellation.


and Partial Debt Cancellation.
Agreements by Europe to make, in
exchange for American financial helD,
economic reforms that will insure
profitable international business for
the United States, is the basis of .
plan for world rehabilitation worked
out by Fred 1. Kent, chairman Of the
Commerce and Marine Commission OF
the American Bankers Association
Mr.. Kent, as delegate Of the associs-
ton, recently laid this plan before the
meeting Of the International Chamber
Of Commerce at Rome. He pointed
out that the United States has ne
right to attempt to dictate to Europe,
but that when It comes to loaning
our money we have right to demand
satisfactory agreements before we do
So" He continued:
How America Can Come In
"As America las 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 Ameri has that she can give
to Europe In exchange for agreements
which she believes, II carried out,
would result in increasing the trade
and commerce of the United States in
sufficient volume to justify such ac-
ton.
From the standpoint Of America
the two questions OF primary impor-
tance are. what .xation will be neces-
sary to meet the requirements of our
government, and, second what income
will be left to the American people
after the payment Of taxes. II the
Allied debts are paid in full the peo-
pie Of the United States will not have
to meet Liberty bonds outstanding
against them through taxation. II the
buying power Of Europe is not restored
the total national income of the peo-
pie Of the United States will be less
than otherwise. If portion Of the
Allied debts can be cancelled in ex-
change for agreements which will
promptly place European countries ON
a sound economic basis. the restora-
ton of the buying power Of Europe
will be greatly accelerated. and the
total national income Of America will
be increased"
An improvement In foreign markets
for American products is 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
If it would assure greater national net
income. with economic peace and
greater happiness for all peoples.
THE real question. therefore, IL
whether 1t would be possible to CO
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-
tries at present economically unsound.
1t is not conceivable how mere can
collation. could be anything but harm
full. unless accompanied by economic
readjustment all along the line.
Further, agreements along the
lines mentioned could not be made
effective unless the whole reparations
tangle Is 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 will lay better founda.
tion for progress toward prosperity
In Europe, positive agreements must
be made between the Allies and Ger.
many In connection with reparations
that can and will be lived up to.
A Loan to Germany
"A loan to Germany of sufficient
size to restore her economic situa.
tion and enable her to make progress
toward paying reparations. and which
came ahead Of reparations, with q
stabilized Europe, would be abso-
lutely good. and II made at the re-
quest and for the benefit Of the
European Allied countries, It could
undoubtedly be placed In America.
THE constant friction which has
existed between Germany and the
Allies because Of the reparations
would be eliminated. Confidence
would be restored to the peoples of
Europe, whose badly shaken morale
is probably the greatest obstacle in
the way OF accomplishment of those
things necessary for stability.
mo force exists in the American
Government which would permit ne.
gotiations such As those outlined. But
the American Congress Is the servant
Of the American people when the peo.
pie choose to make It 80. 1t is con.