Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-07
NORMAN TO TALK
FOREIGN CREDITS
Price Reduction on All Com
moditieS Also Held Aim
of Capital Visit.
BY CONSTANTINE BROWN.

The visit of Montagu Norman, gov
ernor Of the Bank of England, at the
present moment of political and eco
nomie unrest III Europe, cannot be con-
sidered mere Easter holiday. Mr.. Nor
man. it Is stated in reliable quarters,
has come here to discuss with Ameri-
can financial leaders many questions,
especially those Of foreign credits and
Of price reduction of all commodities.
Regarding the matter of foreign loans
the situation is as fellows. The French
and British governments have finally
come to an understanding whereby the
French have agreed to stop drawing
gold from England. In exchange, the
British treasury has undertaken to con-
slider favorably the question CT the
French gold deposited in England dur
ing the war and has also agreed to sup
port the French foreign loan policy.
-~ French Provide Loans.
The French, to great extent, have
replaced Great Britain as providers of
foreign countries with loans, the inter-
national loan market having shifted in
the last two or three years from London
to Paris. So far the French have been
dealing mostly with their allies, but they
are now prepared to deal with all ma
TONS in need Of loans.
The French government, however, is
reluctant TO go into this matter OF inter-
matte nal loans Single-handed and has
asked the British TO join it and par
r.clpate, as much as they can afford, in
any international loan the French may
negotiate. The reason Tor this Is not
that France needs Great Britains finan-
cia. support, but that investments are
likely to be safer If several important
countries participate in granting in
ternstionaI loans.
The British are considering this pro-
posal favorably, and Mr.. Norman will
discuss in Washington the matter Of
Americas eventual participation with
Great Britain IN Frances foreign loan
policy. The entire question Of foreign
credits will be considered by Secretary
of Treasury Andrew ". Mellon, Eugene
Meyer, governor of the Federal Reserve
Board, and others.
May Propose Wage Cut.
The question of reducing the price of
manufactured products and of labor is
matter which will fall on unsympa-
thetic ears in Washington. There is a
tendency in Europe to reduce the price
of all commodities, including labor. The
first move in that direction was made
by Germany and is being followed now
by France, Italy and other continental
states. The underlying idea Is that the
price Of raw materials has gone down
considerably in the last three years,
but the price of manufactured products
has not kept pace. This was caused
arti1cially by keeping up the cost Of
production
Great Britain, under the Labor adj
ministration, has been endeavoring to
maintain the wages Of those who were
employed In the British industry. This
policy apparently has been a failure,
and the British government is now re-
| luctantly considering the possibility Of
making some substantial cuts in the
wages of her laboring classes. British
| governmental circles believe that the
/ British workers would probably accept
such cuts more readily IL similar re-
auctions were made i'll the United
States.
| Mr.. Norman has been asked by the
| British government to discuss this mat
| ter with the American authorities, al
/ though it is well known in Great Brit
ain that President Hoover and the en-
tire administration are strongly against
any cuts in wages which might lower
| the standard of living of the American
! working class.
/ Mr.. Norman is the guest of Rear Ad-
miral Cary T.. Grayson, whose hospi-
tality he accepted in preference to thai
of Mr.. Mellon in order to give his visit
strictly private character.
Copyright, 1917