The American signatories of the memorial for an International Conference
received last week a frank and chilling reply from Mr. Glass, the retiring Secretary of the Treasury. Mr. Glass said that the United States Government could not make any more loans to foreign States. Europe must adopt " sound fiscal policies," abstain from issuing further State loans, and free finance and trade from State control. The Treasury feared that the proposed Conference would inspire Europe with the false hope of inducing the United States Government to assume her burdens. Mr. Glass said that, if European States wanted to redress the exchanges, they must export gold as America had done—advice which, though well meant, reminds us of a rich man telling a beggar how to practise thrift. Indeed, Mr. Glass went on to admit that Europe could not safely export the gold which was the only basis of her inflated currency. In declaring that Europe should resume her industrial activity, he omitted to say how she could buy the raw materials required unless she were given credit. That, indeed, is the essence of the memorial which he virtually rejected.
Previous page
