Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-26
FRENCH BANK HEAD
RESTORED CREDIT
Retiring Governor of Ma
tionaI Bank Reorganized
Country's Financial System.
BY JOHN p. SINCLAIR.

BY JOHN r. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, September 26.-The
resignation of Emile Moreau, governor
Of the Bank of France. to accept the
presidency of one Of the largest pri-
vate banks in his country, follows
closely the resignation of Roy A. Young
of the Federal Reserve Board to accept
the far more financially attractive po-
sition Of governor of the Federal Re-
serve Bank of Boston.
But Mr. Young continues an execu-
tive of the Federal Reserve System Zone
Of the veterans of the system, too,
while M. Moreau retires from govern
nlent banking to enter the much more
lucrative private field.
M Moreau entered the Bank of
France when the franc was on the
skids. Initiation was rampant. Finan-
cial anarchy stared the French nation
in the face. 1t looked as If another
European country's currency had gone
bad.
Then Premier Poincare selected NJ.
Moreau to take over the banking mess
and see what could be done. The
premier agreed to back him up with
full government support.
Emile Moreau set to work, surveyed
the uSlQ, anu Q6ClQSQ btldI the franc
should be stabilized at $50 cents. He
opposed the orthodox method, ala
Bank OF England, to bring back the
franc to its pre-war level of about
20 cents.
He laid his plans well. A large for
eign loan was arranged by ]. P. Morgan
& Co. to back up this program, and
the plan was carried through. NJ
Moreau never flinched. He was criti-
cized, challenged, "cussed" and dis
cussed
But the plan worked. The Bank of
France was reorganized, French in
dustr1es prospered and French unem-
ployment since then has been virtually
So NJ. Moreau retired in triumph. with
81 ,920, 100000 In gold in the vaults of
the Bank of France, the largest gold
reserve in the world next to that Of
the United States.
Clement Moret, first assistant gov
ernor Of the Bank of France, in taking
over the relns Is expected to continue
the Moreau policies which have made
France the second most powerful ma
ton, financially, in the world.
AT the coming New York conference
OF world banking officials, France viii
be represented. II at all, by M. Moret.
long the close associate of the re-
Clr1ng governor.
Gold Standard.
The conclusion of Gov. Jones. head of
the division of finance and investment
OF the United States Department of
Commerce, that the principal reason
Tor the sharp decline In commodity
prices throughout the world Is due to 4
widespread shift from the gold ex-
cnange standard to the gold standard"
enQul0 be passed on to the League of
Nations Economic Committee which
Is just beginning its study of the causes
Of world depression.
Mr. Jones does not see any funda-
mental weakness in the structure of
industry, but he does see that Inter
national credit imitation Is one of the
principal underlying reasons" for nreS.
ent world depression.
international balances Of payments
are now being settled more largely IN
actual gold since fresh supplies of
goid exchange have declined In volume
cue 70 lessened foreign lending and in
Vesslng' said Mr.. Jones. with the
export Of gold, credit has to he re-
str1cted Ia the countries whose stocks
sre none too large. With the credit
restricted, prices decline"
There you have it In a nutshell
Unoouoteoly, international credit in
1Aton TOOK place from 1922 to the
summer OF 1929. And the widesnread
use OF the gold exchange standard had
much TO do with it.
Inc new scramble for gold itself. SUM-
Piementeo by the decision of India fo
swing from silver to gold basis. was
the nnal straw that broke the cameI,s
back.
Conversion Opposed.
1ne gold delegation Of the Financial
Committee Of the League of Nations. on
the other hand, discourages in its re-
port the conversion of gold exchange
into gold standard currencies.
George z. Roberts, National City
Bank economist, who leaves soon to
take part in further conferences of the
gold delegation in Geneva in November,
said the report Of his committee favored
the retirement of gold coinage and also
OF gold certificates. which are merely
warehouse receipts for gold. The COM
n1ttee advocated the extended use of
cnecks, wire transfers and credit facili-
Should It be found desirable TO cut
down the legal gold reserve against cur
rency issue, It would be necessary for
an nations to act In unison. No nation,
no matter how powerful, can help the
SITUATION by acting alone.
30 the gold question is pushing itself
INTO nrst-page news again.
Sees Danger Point.
Few foreign visitors receive such ac-
claim as given George Russell, known as
"AE," philosopher and poet, upon his
arrival from Ireland this week.
This Irish visitor Is different. He
does not deal in platitudes. A student
of American life, he Is greatly alarmed
at figures which show that 1000, 900
persons have left American farms since
1920, that 100000 acres have gone
out Of cultivation and that 89, 900 farms
have been abandoned.
Let such a trend continue and an
other generation will see 80 per cent of
the American population living in cities
and only 10 per cent in the country" he
said. And that, in my opinion, Is a
real danger point to American civiliza-
ton"
"AE" was an obscure bookkeeper when
Sir Horace Plunkett discovered him.
These two men, through rural cooper
alton, virtually regenerated Irish agri-
culture IN one generation.
Not only Is George Russell an expert
on rural economics, but he is a poet Of
rare charm, an essayist Of skill and a
painter and sculptor Of parts.
"AE" has learned the art OF living.
(Copyright, 1880, by North American News
paper Alliance)
pAw CITY, ETTTUpEC