Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-03-08
CLEAR CUT STATEMENT
OF EUROPEAN PROBLEMS
More Economics, Less Politics
Seen as NeCessity-Sound
Money Required.

The problem of European rehabili-
tation is set forth in simple and
clear-cut terms in a statement of the
general principles involved, prepared
for the Journal OF the American
Bankers Association by B. M. Ander-
son, Jr., an economist OF national
reputation, who has devoted particu-
lar study to Americas interest in the
foreign situation. Mr.. Anderson
schedules these main principles as
follows:
1. Free play of private enter
prise is the great hope of the flu
ture. This means, on the one
hand, that governments should
Withdraw as rapidly as possible
from the practice of bread SUBJ
sides, unemployment doles, pub
lie operation and control of in
dustry, and the like. 1t means,
on the other hand, that many
governments must perform far
better than they have been per-
forming what is perhaps the
greatest economic function of
government = the provision OF
sound money as 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 a realistic summing up of as
sets and liabilities.
8. Patchwork solutions deal
Ing with only one or two ele-
ments of the problem are unlikely
to be successful. just because
reparations and InteraIlied debts,
public finance, currency re-
form and so on are really tied
together, it is necessary that we
should undertake to accomplish
all of them in one comprehensive
plan if we are to accomplish
much in connection with any of
them.
A Comprehensive Plan
4. A comprehensive plan
should undertake to accomplish
the following things:
(a) The restoration of the moneys
of continental Europe to a gold basis
Since this. obviously cannot be done
for most of the former belligerents
at the old gold pars, it is necessary
that newer and much lower gold pars
should be established, at which gold
redemption can be speedily begun
and certainly maintained In the
case of those currencies whose values
have approached the vanishing
point, even more drastic measures
may be necessary.
(b) Public finances must be re
formed by such drastic increases in
taxes and such radical reductions in
expenditures as will enable the gov
ernments to pay their way without
further increase in domestic debt
Floating debts should be funded into
long time issues.
(c) A workable adjustment of the
reparations problem based on eco
nomic realities is essential.
Cd Artificial trade barriers must
be greatly modified.
(e) The governments of Great Brit
ain and the United States, in consid
Grafton of radical reforms on the
continent of Europe, can well afford
to reduce greatly or even cancel the
debts of their continental allies.
60 The bankers of the United
States, Great Britain, Japan and per
haps other non-European countries
in consideration of financial reforms
in continental Europe, should, ant
doubtless would, be ready to place
with the investors Of their countries
substantial blocks of continental Sc
curities to provide necessary work
ing capital, to facilitate the inancia
and currency reftrms and to assist
in industrial revival on the continent
of Europe, taking great pains that nc
part of the new loans be used fol
non-essential purposes.