ECONOMIC DISORDER.

Taranaki Daily News, 20 May 1922, Page 5

ECONOMIC DISORDER.

THE TANGLE IN EUROPE. NATIONS BEYOND SOLVENCY. By Telegrap’-..—Press Assn—Copyright. Washington, May 18. Air. Frank Vanderlip, the New York banker who is holding a watching brief at the Genoa Conference for the United States financial interests, cabled the Chamber of Commerce: “The conference is a clinic rather than a conference. It exposes a variety ol social diseases, such as fantastically excessive reparations claims, excessive military expenditures, causing inevitable unbalanced Budgets, boundary lines that are an outrage on economical and ethical principles, Government debts so vast as to destroy hope of solvency, and the disease of the economic isolation .of Russia.

“The United States should study a plan for segregating a part of its gold reserve to stabilise European currencies after the Budgets are balanced, but must avoid involving the United States bank reserve.

“The discussion of the more important subjects is prohibited. The economic significance of Russia ia absurdly emphasised, and unless strong statesmen can compel a more reasonable attitude on the part of France, the situation in Germany will be critical. Royalist plots abound, and increasing prices promise social hardships which may result in revolutionary outbreaks.”

Air. Vanderslip reviews the International significance of the actions of the conference, and concludes: “The attitude of the United States Government with respect to Europe is so eminently wise that I feel like trusting the administration fully. We had better not embarrass it with suggestions.”

The majority of the ’speakers as ths Chamber of Commerce Conference opposed the economic recognition of Russia, and asserted that the settlement of German reparations would restore world business.