Evening star., 1930-12-08
U. S, STUDIES PLAN
TO RELOAN FOREIGN
PAYMENTS ON DEBT
New York Banker Proposes
Use of Such Income to
Stimulate Trade.
NATIONS WOULD SPEND
ADVANCES IN AMERICA
Non-Partisan Commission to Ex-
plore Idea Is Favored by
It's Author.
BY CONSTANTINE BROWN.

A plan for the appointment of a nom
partian commission to investigate pre-
vaiIing conditions to determine how re-
payments of both principal and interest
Of governmental debts due this country
could be best utilized to worldwide ad-
vantage is being studied by the Depart
mentS of State, Treasury and Commerce.
The plan was suggested to President
Hoover by S. r. Bertron, president of
Bertron, Griscom & Co., New York. Mr..
Bertron personally presented the long
report to the President, who is said to
have been favorably impressed by it and
then passed it to the department heads.
The commission suggested by the New
York banker could, without causing en-
barraSsment to the nations involved,
advise that the amounts due us be re-
loaned to the debtors for a period of
years at a low rate of interest, to be
used for the purchase in this country
Of such raw materials and manufactured
goods as the respective European
countries could use best.
Payments Involved.
A somewhat similar arrangement
might also be made with Germany OF
the latters payments to her creditors,
more than half is paid to France, which
would be easily prevailed upon to agree,
because it would, be to her advantage
to adhere to a plan similar to that
which may be agreed upon between the
United States and her debtor nations
1t Is reliably reported that the con-
versations between George L. Harrison,
governor of the Federal Reserve Bank
of New York, and Clement Moret, gov
ernor of the Bank of France, ran along
similar lines. Both men agreed that,
while it is inadvisable at the present
moment to facilitate state loans which
way not be used for economic purposes,
1t Is highly advisable to devise a scheme
whereby France and the United States.
two countries which possess large guam
titles of gold, could facilitate economic
credits to relieve the present economic
depression.
Mr.. Bertron's argument is that the
present palliative measures taken by the
United States and European govern
ments 70 deal with the crisis must be
replaced by something more concrete
The economic crisis, which many regard
as being due to overproduction, is in-
duced by underconsumption. Overpro-
ducticn Is the result and not the Cause
OF the present economic unsettlen1ent.
Buying Power in Slump.
A large part of the world is too poor
TO maintain a proper standard of liv-
ing, with the result that the depression
has assumed Worldwide aspect.
Europe, overburdened with debts, has
the greatest difficulty in providing gold
with which to make payments on its OBJ
legations. To find gold for these pay
ments wiz be exceedingly difficult and
In many cases impossible. As matters
stand at present, it Is more than prob
able that Germany will take advantage
OF moratorium. Other debtor nations
would approve of such an action pro-
vided, that they can secure from Amer
lea a similar postponement They will
appeal to this country to grant them a
corresponding abatement, Mr. Bertron
states, and, II we refuse, we will be con-
fronted with a serious situation of gloom
and insecurity throughout the world.
What is most needed to bring about
. revival OF business is, above all, a re-
ytval of hope and confidence in the
future. BY releasing to the debtor ma
tons the gold they are paying us and
France every year, business will be stirn-
ulated all over the world.
Foreign Loans Curbed.
For the time being the New York and
Paris money markets are virtually
closed to foreign borrowers because
bankers in the United States as well as
in France are not convinced that the
money loaned viii not be spent on
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