Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-11
GOLD BASIS SOUGHT
in EUROPES MONEY
Conference to Work Out Plan
Expected to Be Held Be-
fore End Of Month.

by Cable 10 The Star ana Nsw YORK World.
PARIS, July 10.-An informal con-
ference between the leading bankers
ahd financial experts of the world Is
expected to take place In Europe be-
fore the end of the month. It's object
is to place all European currencies
back on a solid gold basis.
The problem of France will come
first, to be followed, or perhaps con-
ssidered with that CT Belgium and
Italy, Then Poland, Rumania, Hun
gary and Austria win be taken up.
The nucleus of the conference is al
ready existent at Cape Antilles, where
Montagu Norman, governor of the
Bank of England; Benjamin Strong,
president of the New York Federal Re-
serve Bank, and Parker Gilbert, agent
general of reparations, have been
since yesterday, considering the gen.
eral problem of a banking pool to In
clude all international debts and
transfers.
Experts on Sterilization.
Mr.. Gilbert, as reported recently,
was called into the conference as an
expert on sterilization on account OF
his intimate knowledge of the stabiliz-
ing OF the German mark. According
10 this correspondents information,
the bankers propose to create an IN,
fernational clearing house, which viii
in itself solve the transfer problem.
They propose to create a super-govern.
mental financial structure that Will
remove the question of Sterilization
and transfer it from local political in
iiuence.
The opposition shown in the past few
DAYS in the French Chamber OF Depu-
g ties to ratification of the washington
agreement unless q transfer clause Is
contained in It and similar difficulties
which are expected to arise over the
agreement with Great Britain, which
FINANCE Minister Gaillaux is going to
start negotiating when he reaches
London tomorrow, have emphasized
the necessity of the removal or the
question of international transfers
from the plane of ordinary commercial
transactions.
THE conference as such will not gath
or about any one table, but both Sec
rotary of the Treasury Melon, VINO IS
due in France next week, ana freSi-
dent Schacht of the Reiehsbank VIII
NOT remain foreign to the conference
despite denials of any interest by potn.
Would Extend Dawes Plan.
THE conference is now in the stage
xUbere the Dawes plan was about the
time the German mark went to pieces
IN the Autumn of 1928. SIX monIhS
later the Dawes plan, created as an
1rinoyation in finance, was settled upon
as a point of action for all european
finance, The present plan is 70 en-
large the Dawes plan TO cover eIie
whole field of international transfer,
and as the Dawes plan had as us prHl-
cinal object the sterilization OF the
s,,srk which it succeeded in producing,
+he new conference will be to launch
fhe idea of an international clearing
hnuse bv which all currencies VIII De
made as stable as is Germany a
present. 80 ,,c;ro
budgets-is already reahzeo OF n ,.1,st
/ ,.eslized. What is required now most
~ ali ia international confidence Inc
French finance ministry is aware Oh
sba General purposes Of the plan ana
tbis morning M. sCaillaux IN MS
snaach to the Chamber, in which ne
crested a majority of the votes from
fbe opposition to his side, said:
ssF "The credits we are discussing WIN
moi proye a rope around our nectSs'
am no imbecile and am not g0ins 70
negotiate a credit when Will Hie ~
away. I know what happeheu -
Belgium"
~ Not seeking UACEC1y A1OcsAASs
sRale;um lost $120, 00O. 900 trying to
support it's falling franc on Inc
Rourse. The Chamber was nnau y.
.,at Going abroad merely for loans,
Int that negotiations for credits are
another matter. M. Caillaux could
when Herr Schacht launched the
,antemark in Germany he likewise
ra,1ld not tell the German people
what he knew about the forthcoming
Dawes plan, but he knew that ms
rentemark would not have lasted SIX
months on gold basis the DaWes
Man had not Immediately followed.
II roillaux is in somewhat the same
position.
THE international clearing house
has for its purpose the taking over
as a basis of credits German depen-
fures on railroads and industries un-
der the Dawes plan and with these
the paying of international oDhga-
tions to all Germany's creditors
principally, of course, to those TO
whom war reparations are coming.
As France has 81 per cent of all
s-eparations, the establishment OF
this clearing house pool will immedi-
afeiy relieve her of all necessity to
make payments abroad. The bank
ing pool win make payments for
France.
Useful for 20 Years.
The Dawes plan was figured out by
experts who created it as being chief
" useful for the next 20 years. The
new international clearing house is
designed to pull all Europe through
the same period. Germany accepted
the original Dawes plan to get
france out of the Ruhr. France is
expected to accept the new one to
save its franc and others are expected
to follow.
This Summers conference is to-
settle the general principles OF the
question of percentages due the
banking groups for handling the bust.
ness on the principle of transfers be-
tween banks in any local clearing
house and If the idea proves feasible,
particularly if Germany is found to
Be strong enough financially to per-
NIT the issue of 100000 to 10000
900 gold mark debentures due on the,
registrations account, the idea IS ex-3
pected to be launched with the same
Worldwide publicity as the Dawes.
plan was, ending finally in q confer
ence in which the interested govern
naents will be represented, all agree
) ing to the conditions of participation