The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1929-08-16

ations Plan and an epoch-making
international Bank Plan, today one
of the principal contracting parties
openly before the whole wrold, de-
nounces the plan of its own crea-
ton. A month ago the United
States had virtually agreed to a
plan to stabilize the British Nedit
market; today it raises the re-dis-
count rate to SO, a move which
will hav ethe immediate effect of
drawing further hordes of gold
from Great Britain and of endan-
gering that country's already
shakey financial structure. A
month ago all the talk was of peace
and naval reduction. The Premier
of Great Britain himself was TO
come here to arrange the details.
The governments of both countries
by postponing construction of GER
tain war vessels were seemingly
giving concrete evidence of their
sincerity. But today, naval and mil
itary circles in Washington pro-
claim triumphantly that the danger
of a naval holiday is passed, that
there is to be no disarmament par
ley.
VAST CHANGE
IN MONTH
These seemingly contradictory
events are mentioned here to show
how misleading and inadequate il
the information regularly disheC
out to the people of all lands. Flo,
surely the short space of a month
is hardly sufficient to account TO.
this vast upset of governmental
policy. The events are outlined her
to- shake the easy confidence o
the average citizen in the doing
of his representatives in the re
port of their doings by the Bi
Business controlled press. The {
vents themselves, intricate as the
may appear, are really not diff
cult to interpret. Only the props
ganda and the disguise thrown oN
err them by political and pres
makes them appear involved. III
fact is that everyone who runs ma
read-if only h ewere not kept
: busy reading the carefully dishe
! out hokum.
! AMERICA
WORLDS BANK
!; The outstanding fact of the pre-
: ent day is that the United Stat
since the world war has replace
Great Britain in her position
the worlds greatest economic poV
err. Specifically this means that
merica has become the large
creditor nation, the banker of t
world.
r The key to the present intern
- tiOnal situation is the growth
- American surplus capital-mont
The latest figures show that {
Q United States is unable to reinv'
: within her own borders even t
= interest on the huge foreign
debtedness now being regulal
returned into her Golfers. This
1acJ uuuUCr O1lC'
The same statistics prove Il
the South American market
American surplus funds, while
tentially a very large one, cam
a. continue to expand as rapidly
3 the next decade as it has in
past. The population of the So
at American republics is relativ
n.' small. Many of them moreo
have nearly reached their borrt
p ing limit. It is further revea
sv. that Europe-still the great
;e- market for American SURF
money-cannot continue to abs
future loans at the same rate {
IL has done in the past. Furtt
more, the United States has rep
,~o ed Great Britain as the chief lie
a re err even TO England's own color
!: 3 and dominions. But still the we;
he of America continues to pile u
= . and money must find its leve,
1a9 Mace for investment, metnoc
earning profits. This sthe KEY
IN the present international sltuat
al This same situation, in less
his gravated form, has character
al the whole post war period. AT
IN present time it is the fact W
: explains the huge speculations
ov. the New York stock exchange
h;Ie Funds unable to find profit
she or as profitable investment IN
,ar- Iular business is sent in huge
! to the stock exchange. Recently
,,rn president of the Stock Excn'
p himself, Mr.. E. II. H. Simmons
orv mitted that it was the surplu
,gb. funds which accounted for
Yrs wave of speculation. Mr.. Slml
nod predicted that it would cont
I;ca and with some minor setbacK'
ber prediction has proved true.
,ven DISCOUNT RATES
PLAY HAVOC
N Now for fact number two:
ouer The postwar period has like
She been characterized by the 81
.em- policy of the American banke
dominate the international bal
L