Evening star., 1933-05-07

good soldier fighting for the currencies
Of Central Europe.
All Englishmen recognize that despite
a certain amount of advantage brought
about by the fall Of the pound the pres
tige OF London and its money market
has been irreparably damaged by this
event, and that it has had the effect of
greatly increasing the difficulties of in
ternatlonal trade, putting another seri-
Gus obstacle in the path Of world re-
covery.
Makes Commerce Impossible.
Americas abandonment of gold and
subsequent refusal to recognize the
rights Of creditors under the gold clause
IN contracts are certain to have much
more devastating effect owing to the
very different conditions under which
these things have happened.
To refer to Mr.. Aldrich once more,
he says the result of devaluing the dol
lar, from the standpoint Of volume of
credit and the revival of gold prices
throughout the world in the future,
would be ''demoralizing in the extreme"
As every one knows. credit and con-
f1dence are absolutely essential to the
conduct of business anywhere. even in
the most primitive communities. The
American people have always taken q
flrm stand on the sanction of con-
tracts This insiStence of theirs has
been absolutely right from a purely
business viewpoint and without any
question Of moral standards.
II business agreements are to be va
rlable at the pleasure of either party
when events make 1t inconvenient to
carry them out, industry and commerce
along modern lines become simply i'm
possible and the world is doomed to a
general lowering of its standard of life
and perhaps even to Widespread famine.
For this reason American insistence
on the sanctity of war debts, which has
been SO criticized in Continental Eu-
rope, has always seemed to me abso-
lutely sound. 1t may be that circum-
stances have made it necessary for
debtors TO ask for reconsideration Of
sums involved. but America has been
absolutely right in insisting that any
such revision be a matter of agreement
between debtor and creditor.
This insistence on the sanctity Of
contracts seems now more than ever
necessary. Without it there can be no
hopes OF reconstruction, and the ex-
ample OF the greatest and richest people
In the world in varying contracts by
It's own decision has made the prospects
OF the World Economic Conference i'm
AHSoSAA obAy lAlOiC CUcCuIe.
Held Desperate Expedient.
We all had hoped that in this con-
Terence American leadership would be
above all useful and forceful in bring
ing the world back to economic sanity.
II this can be done there is the posi-
bility OF an immense increase in pros
perity well distributed throughout all
classes.
No country has ever had such a
chance as America has now of confer
ring immense benefits upon all human
lty by setting 1t to work TO produce and
consume the huge quantities of goods
and comforts that modern productive
capacity makes possible for all of us.
We have had good reason to hope
that America was going to make full
use OF this wonderful chance to take
the lead at turning point In world
history. 1t was said recently by Sec
retary Of State Hull that America had
been one of the leaders of economic
natlonalism and that now. when every
nation, as a result, finds itself fiat on
its back economically. 1t is high time
bility involves leadership in the opposite
direction.
These were hopeful words and gave
us good cheer for the success of the
conference. Since then America not
only has abandoned the gold standard.
but has refused to recognize the gold
clause in debt contracts.
And so We come back to the conclu-
sion that America has determined to
produce state of affairs SO economi-
cally impossible that the World Con-
ference must get busy and do some
thing quickly. 1t seems a desperate
expedient. but we can only hope it may
be successful
Copyright. 1899. bv North American News
paper Alliance, Inc.l