New-York tribune. [volume], January 04, 1920, Page 6, Image 6

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Europe Needs
35 Billions,
Paish Declares
Pooling Credit of League
of Nations9 Members Is
British Expert's Plan
to Prevent Breakdown
International Bond Issue
England to Guarantee Five
Billion, Sir George Says;
To Abandon Gold Basis
T
British Deny
Rumor of Loan
The British Mission here made
public last night a cable message
from the British Treasury deny?
ing that Sir George Paish is ne?
gotiating a large American loan
far Great Britain. In part, it
lid:
"The British Treasury wishes
it to be known that the rumor has
ipt the slightest foundation ; that
Sir George Paish is not in Amer?
ica in any official capacity, and
?does not represent the British
Treasury., The proposal de
scribed in the rumor is diametri?
cally opposed to the policy of the
British Treasury, which will not
borrow a single dollar from the
United States for the purpose of
loaning in Europe."
To make Europe, the sick man of the
?rid, well agaix>\ will require $35,000,
6,000, according.to Sir George Paish,
?ading British financial writer, who ?
came to the United States last week to
tell the story of the.Old World's needs.
"My own solution," Sir George said
to interviewers in the smoking room at
the Hotel Plaza yesterday, "is simply
this. It is a very difficult problem, but
a problem which it is the special func?
tion of the proposed league of nations
to deal with. It is the duty of the
league to take care of all the world.
And, as this is a world problem, it is
up to the league of nations to find a
solution.
"If there were a complete breakdown
of credit, such as is threatened, every
country would suffer. It is therefore
essential to prevent a breakdown in
the interest of everybody and the
league of nations can prevent that
breakdown by pooling the credit of its
members.
$5,000,000,000 from Britain
"The total sum needed to do the job,
not only of restarting and restocking
Europe, but also of reconstructing the
devastated areas, would be, according to
my calculations, $35,000,000,000. Of
this $15,000,000,000 would be used for
refunding the existing foreign war debt
of Europe. Another $10,000,000,000
would be needed to restart and restock
Europe, and still another $10,000,000,000
to reconstruct the devastated areas'.
This work of reconstruction needs to
be done at once. And the money from
Germany in the form of reparation will
come slowly over a long period of
years. These payments could bo used
to help liquidate the new debt created
by an international bond issue.
"The proposed international bond is
Bue should be, in my opinion, free of
taxes in all countries and should bear
interest at the rate of 4 per cent, with
1 per cent laid aside each year for
sinking purposes, so that the debt could
b? oaid off in forty-two years. As far
as Europe is concerned, the obligations
ought to be secured by a first lien oh
all revenues."
Asked how much of the obligations
the United States government ought.tc
assume, Sir George said that that would
necessarily be a matter of negotiation
but that he thought Great Britair
would be willing to guarantee $5,000,
000,000 of the international bonds, i
sum about equal to her indebtedness
to the United States Treasury at pres?
ent.
"The purpose in mind," the forme*
editor of "The Status," who is now t
contributor to "The Globe," of London
said, "is to arrange to supply raw ma
terials and food to Europe and to ar
range the kind of securities which thi
sellers know to be good. Interna
tional currency is objectionable, be
cause it would mean more inflation.
"Through an international bond is
sue America would be assured paymen
for her surplus in a security whicl
would be the very finest in the world
The object of the issue would be t<
make Europe a going concern again
Europe is under construction or re
_. _
construction now, and one roast have
the imagination to see that when ehe
ia fully constructed she w.ill become a
self-supporting community once more.
Would End Gold Basi?
"The market- for the bonds would be
in every country which has a ? surplus
to selb International balances could
be settled in these bonds, instead of
in gold, although -this substitution
would have to he voluntary."
"Would not this take the world off
a gold basis?" was asked.
"Only temporarily,'* was the- reply,
"or more strictly -speaking, the inter?
national bonds would be supplementary
to gold. The bonds for some purposes
would be better than gold because they
would bear 4 per cent interest. The
bonds should be dollar bonds payable
at maturity in gold.'?
"Would not such a large issue'bring
about a premium n gold and a de?
preciation in ?the market value of the
bonds?" was the next inquJ>y.
"No, I think not.'VSir George replied.
"I would anticipate a premium on the
bonds, instead of a discount."'
The Briton then explained that he
felt that only, such a comprehensive
plan as he proposes will stop the de?
moralization of "exchange rates on Eu?
rope. Some months ago he? predicted"
that the pound sterling would drop to<
$4, when the rate was better than $4.25.
Subsequently the-Value of the pound'
dropped as low as $3.66.
"Po you expect the pound to dcr
prec?ate still further or do you share
the view of some British bankens that
the pound will be worth $4.60 before
the end of 1920?"?aiy interviewer in?
quired.
Credit Breakdown Danger.
"If the plan of mine," he answered,
"is adopted, sterling will go back.
? Rut unless something is done there is
danger of a complete breakdown of
credit. ! There is no reason to believe
the bottom has been reached."
From various Continental sources in?
timations came -all through 1919 that
it would be desirable to pool the credit
? of the ? world, but American bankers
took the view that that would mean
passing the, money bag to America, as?
serting that this country would merge
its financial strength with the financial
weakness of Europe,
Sir George said he did not think
that criticism was wholly aound, for
without America's participation in
Buch a scheme there would b?"? great
economic collapse, in which ultimately
the United States would share.
In order to dissipate the sensational
report that Sir George had come over
to this country with authority to make
a $13,000,000,000 loan for Great Bri?
tain, he explained that his mission
had no official standing, and tbir>V'he
had come over primarily to1'erilist
American sympathy in ce3rtain philan?
thropic relief work in Central-Europe.
In 1914. Sir George came to this
country on behalf of the British
treasury, but this time the veteran
editor comes as a private citizen; ?'?' He
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left last night for Washington, where
he will seek to sound out the opinion
of government officials in the matter
of. European aid.
"I am not here," said Sir George,
at the outset of the interview, "with
'any definite plan for a loan. I am
here in part to ascertain the Ameri?
can point of view... Europe does depend
tb seme extent on what you will do.
"I have been commissioned by two
bodies to come to this country, by t?ie
Fight the Famine Council, a British*
body studying European and world
conditions with a view to overcoming
the world danger that may result from
the economic distress in Europe, and
also by the Vienna Emergency Relief
Fund. Both are private, non-partisan
organizations.
Fight the Famine Council
"Regarding the Fight the Famine
Council, I was hoping that you would
organize a council in the United States
for the purpose of raising benevolent
funds to help where acute distress is
apparent and to work out plans for
relieving the economic distress.
"Lord Parmoor, one of the lords of
:the Privy Council, is chairman of the
Fight the Famine Council, which con?
sists ,of the leading men of all beliefs
of England.
"Regarding,, the Vienna Emergency
Relief .Fund, Vienna is starving. Im?
mediate measures of relief are essen- I
? ' ' ??
tial. We cannot see women and children
starving without trying to help them.
The general committee consists of the
Right Hon. F. Huth Jackson, a director
of the Bank of England,, and the com?
mittee consists of such men as Field
Marshal the Earl Haig, General the
Lord Home, Lieutenant the Earl
Kavan, Major General Maurice, the
Right Hon. H. H. Asquitb, the Right.
Hon. Robert Cecil, Viscount Curzon,
Lord Eustis Percey, Major Lionel de
Rothschild, and the bank for the fund
is the Bank of England. .1 am hoping
that you will establish a Vienna em-er
gency relief fund in this country, but
if you do not. I shall be glad to receive
subscriptions." *
Asked what progress Europe was now
making toward getting on its feet
economically, Sir George said that
things are gradually resuming, but very
slowly, although Great Britain and Bel?
gium are getting back better than the
rest of the former belligerents. ? ,
Provision of credit, he said, is the
starting"point in the movement toward
the normal. "Europe needs," he said,
"all the surplus of all the world."
The British Treasury announced
through J. P. Morgan & Co., its fiscal
agents in the United States, that it is
not seeking a loan such as Sir George
Paish advocates and that Sir George
does riot represent the British Treas?
ury
Jess Willard Exonerated
Of Wood Profiteering
Nine of 71 Cords Taken From
Ex-Champion's F?arm Given
to the Needy
KANSAS CITY, Mo., Jan. 3.?JeBS
Willard, former heavyweight champion,
Was cleared of charges of profiteering
in the sale of cord wood, and was dis?
charged by United States Commissioner
Claflin, in Kansas City, to-day. No
witnesses for the defense were heard.
It had been charged that .Willard had
violated provisions of the Lever act
in charging excessive price for cord
wood cut from his farm near Topeka,
Kan.
Witnesses for the government testi?
fied that Willard had at first set a price
of $5 a cord "in the stump" for the
wood, but when told that was too high
had directed the Topeka City Commis?
sioners to "go ahead and take the
wood anyway. Witnesses quoted Wil?
lard as telling them if needy persons
sveTe found who could not pay for the
wood, to deliver it anyhow. It was
brought out at the hearing nine of the
seventy-one cords from the Willard
tarm Were given away.
James E. Wilson, a member of the
Topeka Fair Price Commission, test?-.
fled "Willard hasnt received any pay
and we dont know yet how much he will
get." Willard himself did not take the
stand.
"Soov??ttir" Fight in Court
Philadelphia Councilmen Face
Suit Over Desk "Grab"
Special Correepondmee
PHILADELPHIA, Jan. 8.?Bartley J. \
Doyle, a publisher in th? Bonne Build?
ing, filed a suit in equity' to-day
against members of the retiring city
councils to restrain them from taking;
their desks and . chairs from council
chambers as souvenirs.
The desire to take the councilmanic
furniture was expressed following an
attempt by the outgoing councilmen to
give themselves a dinner at the city's
expense. The dinner plan was vetoed
by Mayor Smith and subsequently de?
feated by vote on a motion to override
the veto. ?
Several of the councilmen said they
would make every effort to get the
coveted desks and some were of the
opinion that Mr. Doyle would not carry
out his announced intention. ? His ac
tion to-day promises a fight in court ?
if any of the councilmen persist.in try- '
ing to carry out their plans?.
Many Visit Accused Doctor? |
Sudden "HU" Developed by
t- Curiosity in Death Case |
LOUISrVILLE, Ky., Jan. 8.?The axe 1
rest of Dr. Christopher G. Sehott, leeal .
physician, a week ago on a charge of
killing Miss Elizabeth Ford Griffith,
his seventeen-year-old office assistant, ?
has brought throngs of "ill" patients
to the doctor's office. ?
Every day many curions persons, in- *
sisting they have symptoms of some 'A
disease or other, have come, bent on "
getting: sight of the physician who it ?
now out on $8,000 bail pending a grand *
jury hearing set for January 9.
R.SIMPS0N&G0..ENG. ^
143 West 42d St, ??___?_T
Broadway, *or. 67th St., Manhattan
800 P?lton . St., Brooklyn.
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59
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Silk Suits
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Pola Coats
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9
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"The Blue Bird Campaign for Happiness" starts tomorrow, January 5? 1920. Help, epread thec&eoct ??Keen
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