The Omaha morning bee., 1924-08-17
us. Gold Policy
EuropeanFact
Reparation Settlement and
French Budget Other I'm
derlying Factors.

Copyright, 1924.1
Londan. Aug. 16.-1t some times
happens that features OF Importance
in any particular situation are also
the points upon which immediate fn-
terest is most intent. But, perhaps.
it would be true to say that more
tention is focused are of an Incl
dental or transitory character. and
that the forces which matter in the
long run are working beneath the
surface of public notice.
At the present time, the three most
important underlying factors deter
mining European prospects probabl
are:
fa) The reparation settlement and
what logically follows from it.
tb) The French budget.
(c) The gold policy of the Federal
Reserve board of the United States.
Settlement Important.
The importance of the first step In
the German settlement upon the lines
at present being agreed is that 1t
makes also possible a long sequence
of quite different steps of great mo-
ment. 1t will have its own immed.
late value in relieving the extraord-
mary money stringency in Germany.
A settlement of the peace treaty OBJ
legations over a reasonable period of
years, unlocks the door to the pros
pect of monetary stability, This
leads at once to the possibility of get
ting rid of imitation arising because
of governmental difficulties. This
again leads to a sufficient prospect
OF stability of credit and currency to
enable an expansion Of credit facili-
ties, rec from real danger, to accom-
pany industrial development.
The next series of consequences is
that there will be introduced into the
public and commercial economy of
other nations, particularly France,
known and settled elements In re-
lation to Germany in place of vain
hopes, political promises and make
believe. In other words, the unknown
or uncertain factors in budgetary re-
ceipts are reduced in number.
10 estdDlSn government liiidfict
still further on facts and not fancies
some more definite understanding
about interallied debts is required.
When the program of reparations is
fixed the program OF international OBJ
legation will also be susceptible of
firm negotiation, and one more item
will be transferred from the realm
of contingency TO the realm OF fact.
The French Budget.
In the framing of the French bud.
get, unconscious self.deception will no
longer be possible. The idea of con-
tingent receipts from Germany must
be replaced by a definite program
which no prudent finance minister
could transcend. The credit of France
In relation to overhanging obligations
can be placed on a definite basis. The
recently evinced disposition of the
French TO tax themselves adequately
will be put TO the true test. Certain
II is that at last the French provincial
peasant is awake to the fact that the
franc Is no longer a franc, in the
sense to which he has been pathet-
ically clinging. and that a very con-
siderable part of his past savings
has actually gone and has been de-
voted that unemployment which be-
sets other countries. in maintaining
a larger standing army than others
can afford. and in restoring devastat-
ed areas at costs far beyond the COM
merciai necessities OF the case. IL
may be that when the true level OF
the frone Is fully laid bare by remov-
ing all the adventltious wrappers of
current circumstances. some stabiliza-
ton process may be possible. So far
as Italy Is concerned. satisfaction at
her new success with her national
budget is qualified by some doubt as
to her political stability. In Austria.
despite unfortunate escapades with the
franc, the rehabilitation of national