The Star SATURDAY, OCTOBER, 7, 1922. AMERICA AND EUROPE.

Hawera & Normanby Star, Volume XLII, Issue XLII, 7 October 1922, Page 6

The Star

SATURDAY, OCTOBER, 7, 1922. AMERICA AND EUROPE.

Delivered every evening by 6 o'clock in Hawera. Manila/ Nonr.acby, Okaiawa, Eltham, i Mangatoki, Kaponga, Awatuna. Opunake, Otakeho, Manutahi, Alton, HurleyviUe, Patea, Waverley, ■ Mokoia, Rbakamara, Ohacgai, Merjiinere, Fraber Boad, and Ararate. '' .:. p •■ ■, . ■ ;j:

. 4 The address given by Mr. Reginald McKenna before the United States Bankers' Convention set out very clearly the financial condition oiN the European nations, and it appears that his • statements so impressed the I bankers that they came to the concluI sion that the time has arrived when the United States should endeavour to help in. the rehabilitation of Europe. British people are far from satisfied with the callous indifference of the United States Government towards European affairs. It is true^ that the United States did not bring about the war and? N that the people of America ' havo not^had to do with the ' national .suspicions and jealousies which are making thetaslj of reconstruction ,' so difficult. But the United States, j enjoying such immunity, happen to have benefited financially more than \any other Power, and become the one '«editor nation' of the world. The enormous expenditure upon munitions and foodstuffs required for the Allied countries gave the United States a unique opportunity, and, sheltering from the s'c-m for tEree/ years in safety behind the British Navy and the Allied armies, America reaped a harvest .-01 gold. The Americans.deserved credit for tlieir rapid manufacture and export ol goods so urgently' required for the war; then they gave valuable service I by entering the war at a critical time. Kight up to the signing, of the peace treaty the United Statesygave to *.he world most vajjuable assistance. But With'the defeat of the "motion for.ratification of the' treaty came a serioas change, and the United States appear to have returned to their "glorious isolation." A xvery large part of the world's gold is held iiv» America at tire , present time, while "distracted Governments in Europe have to resort to the printing presses for their means, at exchange. Inflation has reached an I unprecedented point, and there is little sound progress apparent. Germany,' for , example, has issued enormous quantities of paper money within the^ last twelve months. The gold remaining in her hands when the war ended was probably insufficient to meet the ordinary commercial requirements. She had to establish credits abroad, to make payments in gold in order to meet the reparations demands, to convert her factories from war to peace service. Her "position has become impossible^ and so is state of several of the other nations. Britain can pay the interest on . her foreign debts, Mr. McKenna says, but none of the other European nations can, meet their obligations. Meantime the United States hold enormous supplies of gold which is lying practically idie. The result is- that Europe is in a state of bankruptcy and commercial chaos; the United States are , experiencing a serious depression in trade because of Europe's impoverished condition. The vQpurse which seem.s most sensible, Vapart from sentimental considerations, is for ■the United States to lend Europe gold and to help the stricken countries to retuyn to a healthy financial condition. A creditor will serve his own interests best by encouraging his debtor to make a great effort to meet his obligations, and America as creditor would surely 4x> wise if she took a greater interest in, her debtors than she is doing and"* helped them on io their feet again. Britain's power to assist Europe is limited because of her huge debt to, America arid the heavy payments which she has to make. It is America's boast that she avoids international entanglements, but she will be unwise if she neglects to act upon the advice of her bankers, whose resolution has been sent ;to the President. Without United [. States assistance, there is little hope of Europe recovering quickly, and evsn with all the help ( that America can give the outlook is far from promising.