Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-11-14
FNANCIERS STRIVE
TOAD DIPLOMATS
Wprld Economic Leaders on
Secret Missions to End
EK Depression.
~ CONSTANTINE BROWN.


WhnA diplomats are struggling al
Ge&eva 10 find q satisfactory solution
wit2ing up the Iabors of the prepare
tor disarmament Conference, interna.
tiotAl financial experts are working
VITA equal eagernesS to solve the greai
problem of the world economic de-
preston.
The international political situation
and the economics depression are linked
toeether. Diplomats say that If the
political situation could be cleared ur
economic recovery would follow i'm
mediately, while economists maintain
that If q readjustment Of the worlds
gold distribution and improved trade
conditions could be brought about the
political tension would relax. In any
case, leading diplomats of the main
world powers and their leading finan-
cial lights are working hard to bring
about q relaxation Of the present tense
situation before the end of this year.
Financial Experts Work Secretly.
While the diplomats who have met
ut Geneva are working under the public
eye. their actions / eng reported daily
in the press, the actions of the financial
experts are shrouded by the greatest
secrecy. The results of their activity
will be made public only when and II
their mission is successful.
For this reason European govern
ments have chosen as their emissaries
men who, although recognized author
tiles in their own countries, are at
present no longer In an ofncial position.
DR.. Hjalmar Schacht, former. presi-
dent OF the Reichsbank, who came to
the United States four weeks ago; Count
Giuseppe Volpi, former Italian minister
of finance, and recognized financial
wizard Of Italy; Sir Josiah Stamp, who
is expected in this country shortly, are
all private individuals who have come
or are coming to this country on pure
" private business
Naturally, they are received as dis
tinguished foreigners by President
Hoover, Secretary Of State Henry l..
Stimson and Secretary Of Treasury An
drew w. Mellon 1t is very unlikely
that thew do not touch in their con-
yersation with these high officieis ups n
anv of the very important interna-
tional matters they have come here to
discuss. but all the same their CONVEX
sations with American leading private
individuals" are duly reported TO the
proper quarters.
DR.. Schacht's Visit Successful
DIR. Schacht's visit to America has
been undoubtedly successful. He has
come here to put before the proper
e,.tl,orities indirectly. and before the
American people directly, the question
Of the terrific burdens of the Young
ulan payments. His public statement
and private conversation have had the
desired effect Of preparing the Amer
ican public and European public opin-
ion for the fact that Germany sooner
or later will have to suspend the repair.
alton payments He has been frank ana
clear and the result of his vislt VIII pc
that the public In this country ana IN
Europe viii not be taken unaware WIlen
the German government announces
that it is no longer In position 10
continue the payments due under the
Count Volpi's visit is not as platonic
m that of DR.. Schacht. italy Is In q
yerv difficult economic situation. Trade
depression Is increasing and with II
acknowledgements and restlesSness. Italy
q badly in need of financial support.
some six weeks ago she was discussing
the question of a loan with her poten-
tial enemy. France. The negotlauons
have failed, however. for politieal rea-
sons. About three weeks ago the 1tal-
fans approached an American group OF
bankers with the view OF obtaining
loan of about $100,O00OO0. American
bankers visited Premier Mussolini in
Rome and had, 1t is said, successfus
conversation with him.
Success Depends on Geneva.
Then, Count volpi, who is the head
Of number of important italian COM
panies closely connected with American
finance, decided to come to the United
states, allegedly to discuss with the in
terested bankers the question OF further
development of these companies in
italy. According to usually well in-
formed sources, however Count Volpi
will discuss unofiicially the question OF
q loan to the Italian government.
Whether he VIII succeed or not depends
largely on the Geneva developments.
The attitude there will determine
whather they are as peacefully inclined
as II Duce states in his private CONVEX
sations With American and British dip
lomats.
While italian and German financiers
are visiting the United States, George
Federal Reserve Bank, is visiting Eu-
rope. He is at present in England, and
will proceed from there to Berlin and
Paris to discuss with the heads Of the
Banque de France and the Reichsbank
the question of distribution of gold in
the world. AS a result of the world
economic situation, the United States
and France possess today a large sur
plus of gold, while other countries, like
Germany and Italy. do not have enough
to meet their actual requirements.
VIII Discuss Gold Credits.
Mr.. Harrison will discuss with the
president OF the Banque de France the
possibility of the United States and
France cooperating in giving gold
credits to countries which need them
and could use them in an economic
manner. This term economic manner"
implies that such credits, II given,
should not be used for any wasteful
purpose, such as expenditure on arma-
inents. but or purely constructive
things
Although the situation in Europe con-
tinues to be uncertain and threatening,
il Is hoped in well informed quarters
here that this double action Of diplo-
mats and financiers viii succeed in the
eEd In restoring what is described now
as . hopeless situation.
fCopyright Ie30)