Cottonwood chronicle. [volume] (Cottonwood, Idaho) 1917-current, 1923-06-01
A REAL PLAN
FOR WORLD HELP
Fred ]. Kent Of American Bankers
Association Initiates Move to
Grapple 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.


profitable International business for
the United States. is the basis OF a
plan for world rehabilitation worked
out by Fred l. Kent chairman OF the
Commerce and Marine Commission Of
the American Bankers Association.
Mr.. Kent, as delegate of the assocja-
ton, 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,
but that when It comes to loaninr
our money we have a right to demand
satisfactory agreements before we do
So" He continued:
How America Can Come In
AS America has not the right to
demand that the budgets of European
countries be brought into order, that
initiation 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 out.
would result In increasing the trade
and commerce Of the United States in
sufficient volume to justify such &C,
ton.
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
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. II portion of the
Allied debts can be cancelled In ex.
change for agreements which will
promptly place European countries ON
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:
III, 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 1t would assure greater national net
income, with economic peace and
greater happiness for all peoples.
1.-The real question, therefore, IL
whether It would be possible to CO
operate with European governments
along such lines that, in exchange fol
cancellation OF portion OF the Allied
indebtedness to the United States
they will give agreements aiming te
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 thu
fines mentioned could not be made
effective unless the whole reparationi
tangle Is settled. At the same time
therefore. that negotiations are being
carried on in connection with any
possible trading Of the portion OF tn,
Allied indebtedness against agree
ments that will lay better founda
ton for progress toward prosperity
in Europe, positive agreements mus
be made between the Allies and Ger
many in connection with reparation,
that can and will be lived up to.
A Loan to Germany
"A loan to Germany OF suf1cien
size to restore her economic situa
ton and enable her to make progress.
toward paying reparations, and which
came ahead Of Preparations, with ,
stabilized Europe, would be abso
lutely good, and II made at the re
quest and for the benefit of tn,
European Allied countries. 1t coult
undoubtedly be placed in America.
THE constant friction which hal
existed between Germany and tn,
Allies because OF the reparation
would be eliminated. Confidenc,
would be restored to the peoples O
Europe. whose badly shaken moral,
is probably the greatest obstacle Il
the way Of accomplishment of thos,
things necessary for stability.
mo force exists in the American
Government which would permit ne
gotiations such as those outlined. Blu
the American Congress Is the servan
Of the American people when the PEG
pie choose to make it so. 1t Is con
ceivable that the effect Of an aroused
public opinion over cooperation with
European nations to restore the busl
ness of the world would cause thu
members of the new American Con
gress so to express themselves ~ 4
warrant the Administration In under
taking negotiations subject to late,
80 8<>o ffor hv OouCrona