The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-24
Famous Economists Agree
Other World ParIeys
Are Necessary.
TARIFF SLASH is URGED
Dr.. irving Fisher Suggests
Cancellation of All
Obligations.
Copyright. 1881. by United Press

disarmament and cancellation of
World war debts must be considered
by future world conferences. two
internationally recognized econnists
agreed today while disagreeing on
results of the world economic con-
ference just concluded in London.
DR.. Irving Fisher. Yale university
finance expert. hailed the London
conference as "a great success" It
is, however, merely a first step
toward restoring world business
stability, he said
Colonel Leonard P. Ayres of
Cleveland said "the outcome of the
world conference is disappointing.
but not disheartening." He added
that "the more fundamental prob
lens relating to reparations, gov
ernmental debts, tariffs and trade
barriers will have to be considered
in future conferences.
Fishers comment added that
what most is needed is a reduction
IN the American tariff, and a re-
duction in the debt owed to the
United States by the Allies on con-
d1tion the Allies correspondence re-
duce Germany's reparations bill"
Other world needs he listed as
world disarmament, and other as
sllranceS of world peace, including
membership Of the United States in
the world court and the league of
nations"
Flshers statement in brief:
regard the London conference
as a great success. It has added tn
The one-year moratorium the asslr-
ance OF renewal of existing short
term loans, and so has laid the
foundation for long term loans.
Banks Might Collapse
Without these necessary stems
there might have been an immedi-
ate collapse of German banking
industry and government. Such a
crash would have had serious roper
cuSSlons in all other industrial ma
lions, including the United States
Ii would have meant a further Ioss
OF business confidence, which. added
10 the present morbid distrust and
lear, surely would have deenened
the depression. '''1N'
Now, however, as soon as the
long-term loans are assured VIC
may expect a great restoration of
commence, so much needed for CON
Clnulng the recovery which lust has
SHOWN signs of beginning in the
CnlCeo states. I believe, however.
mat IN order to get the best results
ilucn more will need to be done.
Inc debt burden of Germany
las oeen increased since the Young
pan was adopted. Although the
oeot has been reduced in terms of
money, 1t has been increased. in
terms of goods. This because of the
Ial IN prices. In other words. the
rise In the value of money. More
over the raised tariffs also have
increased the difficulties of Ger
InahyS paying her debts.
Driven to Borrow
In the final analysis, interna-
tlonal debts must be paid in goods
Yet the very nations which insist
on Germany's paying reparations
ana on the allies paying inter-allied
debts, raised tariff obstacles against
such payment. This fact, among
others, has driven Germany to bor-
row. She really has been paving
creditor countries by borrowing of
them. The United States virtually
Is the chief creditor nation of Ger
many, since what Germany owes
other countries is owed in turn. bv
them, to the United States.
What is most needed is a reduc-
ton in the American tariff and a
reduction in the debt owed to the
united States by the allies, said re-
duction to be made on condition
that the allies correspondingIv will
reduce Germany's reparation bin
The one-year moratorium of all
lnter-governmentaI debt has in eff
fect accomplished this on a small
scale. 1t can be accomplished on
a larger scale by increasing the
moratorium to two, five or fiftv
years-the more the better, not only
for Germany, but also for the
United States and all concerned.
But the most STRAIGHTFORWARD
way would be to cancel intereoy-
ernmental debts outright. This would
create good will as business asset
in foreign trade and for it would
save us from unnecessary political
ENGAGEMENTS which, unfortunately.
these debts now inevitably are caus-
ing and will continue to cause as
long as they exist, even if greatly
reduced or postponed.
U. S. to Recover
"Of course, the United States I'LL
tlmately can and will recover from
this depression, in spite of all tar
ifs, debt and foreign bankruptcies
and revolutions. But we will re-
cover the faster and the farther the
more fully we get rid of the tariffs
and debts, restore confidence, restore
the price level and restore its sta
bility"
Colonel Ayres' statement asserted:
THE outcome of the London con-
ference is disappointing, but not
disheartening. Since the close Of
/ the war representatives NJ tha -,
tons involved have met in a long
series Of conferences dealing with
the economic consequence of that
struggle, and doubtless they will meet
in many more. Each time some
progress is made. This time. only
superficial and immediate matters
were considered. The more funda-
mental ones relating to PREPARATIONS.
to governmental debts and to tariffs