The Birmingham age-herald., 1923-11-19
FOREIGN AFFAIRd
 DISTURB MARKE I
Political Conditions In Europa And MeIIon's Proposal To
 Keep Matters Uncertain
By WALTER B. BROWN

(JCaScd W1rG 10 Ine AKe-HcraId)
 NEW YORK, Nov. 1S.--Two impor. Htant events of counter influence haveE developed during the week. One had been the virtual demoralization of the exchanges and the other Secre- tary Mellon's proposition for red1c- >tion of taxation. Undoubtedly, the fall in foreign exchange reflects the disturbed political conditions abroad with their attendant possibilities Sterling may be feeling the influence. of combination of circumstances while the continental exchanges have fallen in sympathy. In so far as tn decline is to be accounted for by theI purchase of cotton bills. it is a ia l vorable development, and, although there has been considerable of ths' to correspond to the heavy purchased of cotton for British account, it byI no means tells the whole story. ThereI is a belief in many influential quar-I ters that capital is seeking asylum in this country pending the British elections, which may bring the laborI party into power in addition toI this there are ominous forebodines sI as to what might happen if there isl actually rupture of the allies. Wei have virtually given up speculating g| as to what may come out of theI European maelstrom, for everything that has happened thus far has beenI far different from anything that| could have been foreseen. ! There are many on tnIs side of the water who feel that we shouldl take an active part in restoring the European equilibrium, but when vel come right down to 1t, what is there 4l,, flo0 1af %l. we have tried to do, that is to get all the parties interested to sit down around a table and agree upon what could and what could not be done, has fallen flat. We over here have been encouraged to believe that this would lead to definite results, having in mind the success of the arms con- ference, which at the outset seemed impossible of results. So far as Ger many is concerned, she has no case she is bankrupt economically and morally. She should be treated as a bankrupt and a receiver appointed to salvage whatever can be saved from the wreck. France stubbornly refuses to accept promises and in- sists only on performances. From this viewpoint one may grant the logic of her position.
 As against this Great Britain is IdClHS the immediate problem or wholesale unemployment, due to the loss of her continental markets, the immediate relief from which is of greater importance than the question of reparations The key to the prob lem could be found if Germany could be brought to realizing sense of her moral obligations and undertake the sacrifice which payment of repar- ations would entail. In her endeavor to avoid this. she has brought upon herself far greater suffering than If she had gone manfully to work at the outset and had accepted her de- feat.
 Mr.. Mellon's proposal for reduc- tion in taxes has had a strong popu- lar appeal. There would have been no doubt about Congress seizing it greeily if the bonus proposition were not in the way. Mir. Mellon has pointed out that there cannot be 8. reduction in taxes and the grant of bonus to the ex-seryice men at the same time.
 Mir. Mellon is one. of the ahlest financiers in the country and enjoys public confidence to an unlimited degree, and it is quite within the range of possibility that his ideas will prevail.