,libr>ies47       ,,! ,,pap] ,,moneys   
,,( ,,europe  ,,_! ,,moral ,,&          
,,economic ,,significance    ,by        
,,francis ,w4 ,,hir/    ,,bo/on ,,&     
,,new ,,york ,,h\ghton ,,miffl9         
,,company ,! ,riv]side ,press ,cambridge
 #aibb  ,,copyright1 #aibb1 ,,by ,,!    
,,reg5ts ,,( ,,! ,,univ]sity ,,(        
,,cali=nia  ,,all ,,rights ,,res]v$  ,! 
,riv]side ,press ,,cambridge            
,,massa*usetts ,,pr9t$ ,,9 ,,! ,u4,s4,a4
     ,,b>b>a ,,we9/ock ,,lectures ,,on  
,,! ,,morals ,,( ,,trade  ,?is s]ies w  
conta9 essays by repres5tative s*ol>s & 
m5 ( affairs deal+ ) ! v>i\s phases ( ! 
moral law 9 its be>+ on bus9ess life "u 
! new economic ord]1 fir/ deliv]$ at !  
,univ]sity ( ,cali=nia on ! ,we9/ock    
f\ndation4     ,,! ,,pap] ,,moneys ,,(  
,,europe     ,,_! ,,moral ,,& ,,economic
 ,,significance   ,no m sev]e reflection
 c\ld be pass$ ^u ! moral & political   
capacity ( ! human species ?an ?is3     
,five ?\s& ye>s aft] ! inv5tion ( writ+1
 ?ree ?\s& aft] ! inv5tion ( money1 &   

7ne>ly7 five hundr$ s9ce ! inv5tion (   
pr9t+1 gov]nm5ts all ov] ! _w are       
employ+ ! ?ird inv5tion = ! purpose (   
debas+ ! second2 !reby robb+ millions ( 
innoc5t individuals ( _! prop]ty on a   
scale s ext5sive t previ\s public       
confiscations ( private prop]ty ?r\gh ! 
adult]ation ( money--9 anci5t ,rome1 9  
,irel& "u ,james ! ,second1 9 ,prussia  
dur+ ! ,sev5 ,ye>s' ,w>1 9 ! ,am]ican   
colonies & ! ,unit$ ,/ates1 9 ,portugal1
 9 ,greece1 9 v>i\s republics ( ,c5tral 
& ,s\? ,am]ica1 ev5 ! assignats ( !     
,fr5* ,revolution--seem pigmy frauds 9  
comp>ison ) ! pres5t va/ inundation (   
c\nt]feit pap] money4  ,9 ^! times1 :5 s
 mu* att5tion is giv5 to :at ,i may call
 ! prehi/oric hi/ory ( mank9d1 x w\ld   
ill become me1 a m]e adv5tur] 9         
an?ropology1 to discuss ! orig9 ( money 
or to attempt an explanation ( ! curi\s 
fact t ! art ( co9+ money 0 inv5t$ &    
p]fect$ a ?\s& ye>s be=e ! art ( pr9t+4 
,! co9s /ruck by ! be/ cities ( anci5t  
,greece are a model & a reproa* to our  

mod]n m9ts2 & be+ = ! mo/ "p ( good     
silv]1 !y fulfill$ ! two ma9 functions (
 curr5cy--z a measure ( value & a m$ium 
( ex*ange4  ,silv] 0 well adapt$ = !    
purposes ( curr5cy by its ductility1    
durability1 divisibility1 portability1 &
 value4 ,its value dep5d$ on ?ree ?+s4  
,9 ! fir/ place1 x 0 sc>ce2 9 ! second1 
x 0 mu* 9 dem& = ! arts & manufactures2 
& 9 ! ?ird place1 its intr9sic value 0  
increas$ & /abiliz$ by ! ne$s & dem&s ( 
! m9ts4  ,gold _h simil> qualifications1
 b x 0 too sc>ce & too preci\s until !  
n9ete5? c5tury1 9 ! c\rse ( :i* 7=      
reasons :i* ,i ne$ n ent] ^u "h71 mo/ ( 
! great comm]cial nations adopt$ a gold 
/&>d4 ,copp] possess$ 9 a less degree ! 
qualifications ( gold & silv]1 b x 0 !  
fir/ metal to be co9$ into money 9      
anci5t ,rome4 ,! ,roman z or pondo      
weigh$ a ,roman p\nd ( good copp]1 !re=e
 possess$ ! two pr9cipal attributes (   
good money1 a def9ite weight & a def9ite
 f95ess4 ,x 0 divid$ l our troy p\nd    
into twelve ounces ( good copp]4  ,!    

,engli% ,troyes or ,troy p\nd 0 fir/ us$
 9 ! ,engli% m9t 9 ! "t ( ,h5ry !       
,eigh?4 ,edw>d ! ,fir/'s p\nd /]l+ 0 a  
,t[] p\nd ( silv] ( a def9ite f95ess4   
,*>lemagne's livre 0 a ,troyes#a p\nd ( 
silv] ( def9ite f95ess4 ,! old ,engli%  
,scot* p5ce or p5nies conta9$ orig9ally 
a real p5nyweight ( silv]1 "o tw5tie? ( 
an ounce & "o two hundr$ & =tie? ( a    
p\nd4 ,! fam\s pre-w> ,engli% sov]eign1 
n[ demonetiz$ & misrepres5t$ by !       
depreciat$ pap] p\nd1 0 itself also a   
weight2 b ! tw5ty %ill+s & two hundr$ & 
=ty p5ce :i* ex*ang$ = x 7 tok5 co9s    
dep5d+ = _! value ^u ! gold sov]eign4   
#a ,! ,fair ( ,troyes 9 ,*ampaign 0 at t
 "t frequ5t$       by all ! nations (   
,europe1 & ! weights & measures ( s     
fam\s a m>ket 7 g5]ally kn[n & e/eem$4  
7,adam ,smi?1       ,weal? ( ,nations1  
,book ,i1 *ap1 ,,iv47      ,f ! "t (    
,*>lemagne among ! ,fr5*1 & f t (       
,william ! ,conqu]or among ! ,engli%    
wrote ,adam ,smi? 9 #aggf1     !        
proportion betwe5 ! p\nd1 ! %ill+ & !   

p5ny1 seems     to h be5 uni=mly ! same 
z at pres5t1 ?\gh ! value (     ea* has 
be5 v diff]5t2 = 9 e c\ntry ( ! _w1 ,i  
believe1 ! av>ice & inju/ice ( pr9ces & 
sov]eign /ates1     abus+ ! confid5ce ( 
_! subjects1 h by degrees     dim9i%$ ! 
real quantity ( metal :i* _h be5        
orig9ally     conta9$ 9 _! co9s4 ,!     
,roman z1 9 ! latt] ages ( !            
republic1 0 r$uc$ to ! tw5ty-f\r? "p (  
its orig9al     value1 &1 in/ead (      
weigh+ a p\nd1 came to weigh only half  
an     ounce4 ,! ,engli% p\nd & p5ny    
conta9 at pres5t ab\t a ?ird     only2 !
 ,scots p\nd & p5ny ab\t a ?irty-six?2 &
 !     ,fr5* p\nd & p5ny ab\t a         
sixty-six? "p ( _! orig9al     value4   
,by means ( ^? op]ations1 ! pr9ces &    
sov]eign     /ates :i* p]=m$ !m 7       
enabl$1 9 appe>ance1 to pay     _! debts
 & fulfil _! engagem5ts ) a small]      
quantity (     silv] ?an w\ld o!rwise h 
be5 requisite4 ,x 0 inde$ 9             
appe>ance only2 = _! cr$itors 7 really  
defraud$ ( a     "p ( :at 0 due to !m4  

,all o!r debtors 9 ! /ate 7     all[$ ! 
same privilege1 & might pay ) ! same    
nom9al sum     ( ! new & debas$ co9     
:atev] !y _h borr[$ 9 ! old4     ,su*   
op]ations1 !re=e1 h always prov$        
fav\rable to !     debtor1 & ru9\s to ! 
cr$itor1 & h sometimes produc$ a        
great] & m univ]sal revolution 9 !      
=tunes ( private     p]sons1 ?an c\ld h 
be5 occasion$ by a v great public       
calamity4#b        #b ,weal? ( ,nations1
 ,book ,i1 *ap4 ,,iv4  ,john ,/u>t ,mill
 foll[s 8 ma/] 9 expos+ & d5\nc+ :at he 
calls ?is lea/ cov]t ( all =ms ( knav]y 
:i* consi/s 9 call+ a %ill+ a p\nd4 ,b !
 op9ions ( ,mill1 ! sa9t ( rationalism1 
des]ve & dem& citation z !y br+ u       
directly to our subject4 ,he writes3    
,:5 gold & silv] _h become virtually a  
m$ium ( ex*ange1 by     becom+ ! ?+s =  
:i* p g5]ally sold1 & ) :i*     !y      
g5]ally b\ght1 :atev] !y _h to sell or  
buy2 !     contrivance ( co9+ obvi\sly  
sugge/$ itself4 ,by ?is process     !   
metal 0 divid$ into conv5i5t portions1 (

 any degree (     smallness1 & be>+ a   
recognis$ proportion to "o ano!r2 &     
! tr\ble 0 sav$ ( weigh+ & assay+ at e  
*ange (     possessors1 an inconv5i5ce  
:i* on ! occasion ( small     pur*ases  
w\ld soon h become insupportable4       
,gov]nm5ts f\nd x _! int]e/ to take !   
op]ation into     _! own h&s1 & to      
int]dict all co9+ by private p]sons2    
inde$1 _! gu>antee 0 (t5 ! only "o :i*  
w\ld h     be5 reli$ on1 a reliance     
h[ev] :i* v (t5 x ill     des]v$2       
pr(ligate gov]nm5ts hav+ until a v mod]n
 p]iod     seldom scrupl$1 = ! sake (   
robb+ _! cr$itors1 to conf]     on all  
o!r debtors a lic5ce to rob !irs1 by !  
%all[ &     impud5t artifice ( l[]+ !   
/&>d2 t lea/ cov]t (     all modes (    
knav]y1 :i* consi/s 9 call+ a %ill+ a   
p\nd1     t a debt ( a hundr$ p\nds may 
be cancell$ by ! paym5t (     a hundr$  
%ill+s4 ,x w\ld h be5 z simple a plan1 &
 w\ld     h answ]$ j z well1 to h enact$
 t a hundr$ %\ld     always be int]pret$
 to mean five1 :i* w\ld h effect$ !     

same r$uction 9 all pecuni>y contracts1 
& w\ld n h be5     at all m %ameless4   
,su* /rokes ( policy h n :olly     ceas$
 to be recomm5d$1 b !y h ceas$ to be    
practis$1     except occasionally ?r\gh 
! m$ium ( pap] money1 9 :i*     case !  
"* ( ! transaction1 f ! great] obscurity
     ( ! subject is a little less       
b>efac$4#c        #c ,mill1 ,political  
,economy1 ,book ,,iii1 *ap4 ,,vii4  ,a  
few illu/rations f ! pa/ may help u to a
 critical contemplation ( ! pres5t      
monet>y conditions on ! cont95t (       
,europe1 :i* con/itute fraud & robb]y on
 ! mo/ :olesale scale ev] practis$ by   
gov]nm5ts 7) ! /yle & title (           
democracies67 ^u ! mis]able victims1    
call$ citiz5s1 & suppos$ to be end[$ ) !
 bless+s ( self-det]m9ation4  ,^? :o    
believe t w>1 if n a div9e in/itution1  
is at lea/ an inevitable feature ( human
 society may plead 9 ext5uation ( ?is   
species ( fraud t x is usually ! la/    
desp]ate res\rce ( a gov]nm5t :i* has   
pl$g$ all its taxes & cr$it = w> or     

armam5ts4  ,i rememb] read+ 9 ! ,roman  
hi/orian ,sallu/ ( a f9ancial crisis :i*
 0 end$ by debts contract$ 9 silv] be+  
paid (f 9 copp]--arg5tum re solutum e/4 
,a few ye>s be=e ,adam ,smi? wrote 8    
*apt] on money1 ,fr$]ick ! ,great1 dur+ 
! ,sev5 ,ye>s' ,w>1 resort$ to ! ,jew1  
,ephraim1 :o co9$ t9 silv]3             
,outside noble1 inside slim1            
,outside ,fr$]ick1 inside ,ephraim4  ,b 
,fr$]ick1 wis] & m hone/ ?an our        
,european bellig]5ts1 made x 8 fir/ c>e 
aft] ! peace to re/ore an hone/ silv]   
co9age4  ,a lively example f ,engli%1 or
 r ,iri%1 hi/ory is suppli$ by ,macaulay
 & belongs to ! ye> #afhi4 ,x is "o ( ! 
incid5ts 9 ,james ! ,second's brief &   
luckless gov]nm5t ( ,irel&3      ,x is  
rem>kable t :ile ! ,k+ ,james ,,ii 0    
los+ !     confid5ce & good w ( ! ,iri% 
,commons by fa9tly def5d+     aga9/ !m1 
9 "o qu>t]1 ! in/itution ( prop]ty1 he 0
     himself1 9 ano!r qu>t]1 attack+ t  
in/itution ) a     viol5ce1 if possible 
m reckless ?an !irs4      ,he soon f\nd 

t no money came into 8 ,ex*equ]4 ,!     
cause 0     suffici5tly obvi\s4 ,trade 0
 at an end4 ,float+ capital _h     be5  
)drawn 9 great masses f ! isl&4 ,( !    
fix$     capital mu* _h be5 de/roy$1 & !
 re/ 0 ly+ idle4     ,?\s&s ( ^?        
,prote/ants :o 7 ! mo/ indu/ri\s &      
intellig5t "p ( ! population _h emigrat$
 to ,engl&4     ,?\s&s _h tak5 refuge 9 
! places :i* /ill held out =            
,william & ,m>y4 ,( ! ,roman ,ca?olic   
peasantry1 :o 7 9 !     vigor ( life1 ! 
majority _h enli/$ 9 ! army or _h jo9$  
gangs ( plund]]s4 ,! pov]ty ( ! treasury
 0 ! necess>y     effect ( ! pov]ty ( ! 
c\ntry3 public prosp]ity c\ld be        
re/or$ only by ! re/oration ( private   
prosp]ity2 & private     prosp]ity c\ld 
be re/or$ only by ye>s ( peace &        
security4     ,james 0 absurd en\gh to  
imag9e t !re 0 a m spe$y &              
efficaci\s rem$y4 ,he c\ld1 he conceiv$1
 at once extricate     himself f 8      
f9ancial difficulties by ! simple       
process (     call+ a f>?+ a %ill+4     

,! "r ( co9+ 0 und\bt$ly a fl[] ( !     
pr]ogative2     &1 9 8 view1 ! "r ( co9+
 includ$ ! "r (     debas+ ! co94 ,pots1
 pans1 knock]s ( doors1 pieces (        
ordnance :i* _h long be5 pa/ use1 7     
c>ri$ to ! m9t4 ,9     a %ort "t lumps (
 base metal1 nom9ally wor? ne> a million
     /]l+1 intr9sically wor? ab\t a     
sixtie? "p ( t sum1     7 9 circulation4
 ,a royal edict decl>$ ^! pieces to be  
legal t5d] 9 all cases :atsoev]4 ,a     
mortgage = a ?\s&     p\nds 0 cle>$ (f  
by a bag ( c\nt]s made out ( old        
kettles4 ,! cr$itors :o compla9$ to !   
,c\rt ( ,*anc]y 7     told by ,fitton to
 take _! money & be gone4      ,b ( all 
classes1 ! tradesm5 ( ,dubl91 :o 7      
g5]ally     ,prote/ants1 7 ! greate/    
los]s4 ,at fir/1 ( c\rse1 !y     rais$  
_! dem&s2 b ! magi/rates ( ! city took  
on     !mselves to meet ?is h]etical    
incl9ation by putt+ =? a     t>iff      
regulat+ prices4 ,any man :o belong$ to 
! ca/e n[     dom9ant might walk into a 
%op1 lay on ! c\nt] a bit ( brass       

wor? ?reep5ce1 & c>ry (f goods to !     
value ( half a     gu9ea4 ,legal rem$ies
 7 out ( ! "q4 ,inde$ !     suff]]s     
?\ght !mselves happy if1 by ! sacrifice 
( _!     /ock 9 trade1 !y c\ld r$eem _! 
limbs & _! lives4     ,!re 0 n a bak]'s 
%op 9 ! city r\nd :i* tw5ty or     ?irty
 soldi]s 7 n con/antly pr[l+4 ,"s p]sons
 :o     refus$ ! base money 7 arre/$ by 
troop]s & c>ri$ be=e     ! ,provo/      
,m>%al1 :o curs$ !m1 swore at !m1 lock$ 
!m up     9 d>k cells1 &1 by ?reat5+ to 
hang !m at _! own doors1     soon       
ov]came _! resi/ance4 ,( all ! plagues (
 t "t     none made a deep] or a m la/+ 
impression on ! m9ds ( !     ,prote/ants
 ( ,dubl9 ?an ! plague ( brass money4   
,to !     recollection ( ! confusion &  
mis]y :i* _h be5 produc$ by     ,james' 
co9 mu/ be 9 "p ascrib$ ! /r5u\s        
opposition     :i*1 ?irty-five ye>s     
lat]1 l>ge classes firmly atta*$ to     
! ,h\se ( ,hanov]1 (f]$ to ! gov]nm5t ( 
,george ! ,fir/     9 ! affair ( ,woods'
 ,pat5t4#d        #d ,macaulay1 ,hi/ory 

( ,engl&1 ,i1 *ap4 ,,xii4 ,! ,affair (  
,woods' ,pat5t is celebrat$ 9 ,swift's  
,drapi] lett]s4  ,b pap] money (f]s f> m
 ext5sive facilities to knav]y ?an a    
metallic curr5cy4 ,9 8 ,essays on !     
,monet>y ,hi/ory ( ! ,unit$ ,/ates1#e   
,mr4 ,*>les ,j4 ,bullock has describ$ 9 
suffici5t detail ! c>nival ( fraud &    
corruption :i* att5d$ ! pap] money co9$ 
or r pr9t$ by mo/ ( ! ,am]ican colonies 
9 ! c5tury prec$+ ! ,am]ican            
,revolution4 ,?us1 ab\t ! middle ( !    
eighte5? c5tury1 ! pap] money (         
,massa*usetts fell to an eigh? ( its    
orig9al value4 ,p 7 driv5 to b>t]1 & "o 
writ] obs]v$ t ! morals ( ! p depreciate
 ) ! curr5cy4 ,p>ties 7 divid$ into     
debtors & cr$itors1 & a ,new ,engl&     
writ] 9 #agdi not$3 ,! ,debtor side has 
_h ! asc5dant ev] s9ce anno #agda to !  
almo/ utt] ru9 ( ! c\ntry4#f ,to ?is    
writ] belongs ! cr$it ( disc]n+1 at a "t
 :5 ev5 ,b5jam9 ,frankl9 0 9 error1 t ! 
repeat$ l>ge emissions ( ,pap] ,money 7 
responsible = its depreciation4         

#e ,macmillan1 #aijj4        #f         
,d\glass4  ,n wor? a ,cont95tal is an   
expression :i* br+s u to ! next *apt] 9 
,am]ican exp]i5ce ( inconv]tible pap]   
curr5cies4 ,! s-call$ ,cont95tal money 0
 ! means by :i* ! ,cont95tal ,congress &
 ! individual colonies--too timid to    
tax--endeavor$ to f9ance ! ,revolution>y
 ,w>4 ,by #agha1 a pap] doll> 0 wor?    
less ?an two c5ts 9 specie1 & soon      
aft]w>d x became practically wor?less4#g
 ,robb]y 0 legaliz$2 rogues fl\ri%$2 &  
_! frauds 7 enc\rag$ & protect$ by a    
gov]nm5t ^: policy enabl$ debtors to pay
 _! debts 9 valueless money4 ,we he> (  
cr$itors runn+ away f _! debtors & be+  
paid (f )\t m]cy4 ,/ories 7 told (      
cr$itors 9 ,rhode ,isl& leap+ out ( back
 w9d[s to escape ! att5tions ( _!       
debtors4#h ,9 %ort1 ! law became an     
eng9e ( oppression & de/roy$ ! =tunes ( 
?\s&s :o _h put _! confid5ce 9 x4 ,9 !  
words ( ,breck1 a fri5dly critic1 444 ! 
old debts 7 paid :5 ! pap] money 0 m ?an
 sev5ty to "o 444 wid[s1 orphans & o!rs 

7 paid = money l5t 9 specie ) depreciat$
 pap]4        #g ,bullock1 ,monet>y     
,hi/ory ( ! ,unit$ ,/ates1 *ap4 ,v4     
#h ,ibid41 *ap4 ,v4 ,9 #aghj ,congress  
actually adopt$ a plan to       r$eem   
its pap] issues at "o =tie? ( _! pret5d$
 or       nom9al value4  ,! a/oni%+ ?+  
is t all ?is knav]y 0 devis$1 or w9k$   
at1 n only by l[ class politicians b by 
/atesm5 ( r5[n4 ,! maxim salus populi   
suprema lex 0 reli$ ^u n = ! fir/ or la/
 "t z a suffici5t excuse = a crime f> m 
p]nici\s ?an t ( a private =g]4 ,b we h 
n yet realiz$1 9 our m9ds or 9 our p5al 
codes1 t public vices ought to be puni%$
 at lea/ z vigor\sly z private crimes4  
,t1 ev5 z a desp]ate la/ resort = f9anc+
 w>1 a flood ( pap] money defeats its   
own object 0 conclusively prov$ a few   
ye>s lat] dur+ ! ,fr5* ,revolution4 ,!  
,fr5* assignats h tak5 _! place 9 hi/ory
 z ! classical example ( pap] money made
 wor?less by ov]-issue4 ,aft] _! f9al   
collapse 9 #agif1 ,fr5* f9ance rev]t$   
p]=ce to a metallic basis4 ,s ,mr4      

,hawtrey1 a ,briti% ,treasury (ficial1  
:o has giv5 u rec5tly a lucid &         
suffici5tly detail$ acc\nt ( ?is        
extraord9>y incid5t--extraord9>y b no   
long] s+ul>1 = ! same c\rse ) ! same    
results has be5 pursu$ dur+ & s9ce ! w> 
( #aiad-aiah by ,russia & ,pol&1 & 9 a  
great] or less degree by mo/ ( !        
,european bellig]5ts4  ,! issue ( ,fr5* 
assignats began 9 #aghi because !       
assembly w\ld n vote adequate taxation1 
& ,neck]1 ! m9i/] ( f9ance1 0 unable to 
borr[ en\gh to cov] ! deficit4 ,9 ! two 
ye>s f #aghi to #agia1 ! public rev5ue 0
 #dgj millions1 & ! public exp5ditures1 
#agai millions1 ( livres4 ,! deficit 0  
cov]$ by assignats1 or pap] livres1 be>+
 int]e/1 9 d5om9ations v>y+ f #ajjj to  
#e livres4 ,?us ! assignats may be      
reg>d$ z a float+ debt curr5cy4 ,9      
,novemb]1 #agia1 ! assignats 7 wor? #eb 
p] c5t ( _! face value4 ,9 ,june1 #agib1
 aft] ! decl>ation ( w> on ,au/ria1 !y  
rose to #eg4 ,aft] ! victory ( ,valmy1 9
 ,septemb]1 !y rose to #gb & rema9$ !re 

till ,decemb]4 ,9 ,janu>y1 #agic1 ! k+ 0
 guillot9$1 & w> 0 decl>$ on ,engl&4 ,by
 ,augu/1 aft] viol5t fluctuations1 !    
assignat _h fall5 to #ae p] c5t ( its   
face value4 ,!reaft] ! laws en=c+ !     
acceptance ( assignats 7 /r5g!n$4       
,x became an (f5ce to sell co91 or to   
diff]5tiate betwe5 co9     & assignats 9
 any transaction1 or to refuse paym5t 9 
assignats1 or to negotiate assignats at 
a disc\nt4 ,by a decree (     ! #e? (   
,septemb] ! dea? p5alty itself 0 impos$4
 ,"h 0     a =c$ curr5cy inde$4#i       
#i ,r4 ,g4 ,hawtrey1 ,curr5cy & ,cr$it4 
,longmans ,gre5  ,co41       ,london1   
#aiai4  ,= a few mon?s an artificial    
improvem5t 0 effect$ 9 ! value ( !      
assignat by ^! f]oci\s measures2 b 9    
#agie1 aft] ! ,t]ror1 ! sy/em & ! pap]  
money collaps$4 ,! gold & silv] money1  
:i* _h be5 ho>d$1 return$ to            
circulation4 ,9 ,june1 #agie1 !         
quotation ( ! assignat oscillat$        
viol5tly4 ,on "o day a l\is ( #bd livres
 w\ld buy #dej pap] livres1 on ano!r1   

#ajjj4aj ,pap] notes :i* fluctuat$ s    
viol5tly 7 useless z money4 ,!y c\ld n  
s]ve ei!r z a m$ium ( ex*ange or z a    
measure ( value4 ,c\ntry p express$ _!  
contempt = ! assignats by call+ !m      
l'arg5t de ,p>is4  ,a new curr5cy (     
m&ats 0 tri$1 into :i* assignats 7 made 
conv]tible4 ,x 0 a complete failure4 ,! 
assignats 7 w\nd up 9 #agif1 & 9        
,febru>y1 #agig1 !re 0 a g5]al          
demonetisation ( pap] money4#aa ,!      
hold]s got practically no?+4 ,france    
return$ to h>d ca%1 z ,mexico has done  
rec5tly4 ,9 #aiah1 :5 ,mr4 ,hawtrey     
wrote1 he 0 able to describe ! decl9e & 
full ( ! assignats z an 'almo/ unique'  
in/ance ( ! curr5cy ( a great nation    
fad+ away into no?+4 ,! ,russian pap]   
r\ble has p]=m$ ! same feat s9ce #aiah4 
,s has ! ,poli% m>k4 ,& n[ 7,decemb]1   
#aiba7 ! ,g]man pap] m>k is also fad+   
into no?+ness4#ab ,9 ,au/ria & 9 mo/ ( !
 new /ates ( ,europe1 ! inconv]tible    
pap] legal t5d] curr5cy has lo/ almo/ ! 
:ole ( its value1 9 comp>ison ) ! pre-w>

 co9 :i* x pret5ds to repres5t4         
#aj ,hawtrey1 op4 cit41 *ap4 ,,xv4      
#aa ,a turn :i* ev5 a ,poli% ,*ancellor 
( ! ,ex*equ]       might envy4          
#ab ,9 ! second week ( ,novemb] ! m>k   
fell to #acjj to !       pap] p\nd1     
recov]+ a day or two lat] 7,w$nesday1   
,novemb]       #i7 to #ihj4  ,! real    
diff]5ce betwe5 ! pres5t monet>y        
conditions & ! ,am]ican cont95tals1 or !
 ,fr5* assignats1 is a diff]5ce n ( k9d1
 b ( degree & ext5t4 ,! causes & !      
consequ5ces1 ! motives ( ^? :o "w ! m9t1
 ! ru9 & demoralization ( ! victims1 !  
effects ^u public & private debts &     
cr$it are ! same4 ,b a :ole cont95t     
populat$ by f\r hundr$ millions ( p is  
conc]n$4 ,! comm]cial & moral fabric (  
,european civilization is tott]+4 ,?ree 
ye>s h pass$ s9ce ! w> end$2 b !        
curr5cies & ex*anges ( ,europe are 9 a  
mu* worse condition ?an :5 peace 0 be+  
negotiat$4  ,at ! end ( ,june1 #aiba1 ,i
 walk$ f my (fice 9 ! ,/r& d[n to       
,messrs4 ,h&s  ,co41 :o deal 9 =eign    

money at ,*>+ ,cross4 ,on ! way ,i pass$
 ! %op ( a tailor1 :o _h plac>d$ on 8   
%op w9d[ ! ann\ncem5t t he w\ld give a  
hundr$ ?\s& r\bles to e cu/om] :o b\ght 
a suit ( clo!s f him4 ,he add$ t at !   
pre-w> rate ( ex*ange ! "o hundr$ ?\s&  
r\bles w\ld be wor? t5 ?\s& p\nds4 ,he  
did n add t !y 7 at t "t wor? only two  
%ill+s4#ac ,on arriv+ at my de/9ation1  
,i ask$ to see specim5s ( ! mo/ debas$  
curr5cies & ev5tually laid out t5       
%ill+s1#ad or1 to be exact1 #is_/#aj;d4 
,"h is ! bill3      ,t5 ,g]man m>ks     
co/ me "o %ill+     ,a hundr$ ,au/rian  
cr[ns            co/ me "o & sixp5ce    
,a hundr$ ,poli% m>ks               co/ 
me sixp5ce     ,tw5ty-five ,russian     
7,cz>7#ae       r\bles 7#aiji7          
co/ me sixp5ce     ,two ,italian lire   
co/ me eightp5ce     ,two ,greek dra*mas
                   co/ me eightp5ce     
,two ,r\manian lei                      
co/ me sixp5ce     ,five ,yugoslav      
d9>s#af             co/ me "o %ill+     
,t5 ,cze*oslovakian cr[ns           co/ 

me "o %ill+     ,five ,bulg>ian levas   
co/ me sixp5ce     ,five ,f9ni% m>ks    
co/ me "o %ill+     ,five ,e/honian m>ks
                 co/ me "o %ill+        
,five ,latvian r\bles                   
co/ me sixp5ce        #ac ,a mon? or two
 lat] !y 7 n wor? a %ill+4 ,!           
,russian ,soviet ,gov]nm5t 0 (f]+ two   
hundr$ ?\s&       r\bles = "o pre-w>    
silv] r\ble6        #ad ,two doll>s4    
#ae ,tw5ty-five ,soviet r\bles w\ld h   
be5 de> at a       f>?+4        #af ,on 
?is note is /amp$ #bj ,kruna to indicate
 t five       d9>s ex*ang$ = tw5ty      
,au/rian cr[ns4  ,to %[ t my fri5d1 !   
ex*ange deal]1 made a dec5t pr(it out ( 
?is retail transaction1 ,i quote "s ( 8 
sell+ rates = ! day on :i* he bas$ 8    
*>ges3                                  
,rates (                                
,ex*ange         ,june #bi1 #aiba       
,au/rian pap] cr[ns      #bdjj-bfjj     
= #a     ,f9ni% m>ks                    
#bbj-bdj               = #a     ,g]man  
m>ks                #bfe-bge            

= #a     ,poli% m>ks               #fjjj
 7sell+ rate7    = #a     ,greek dra*mas
               #fb-fe                =  
#a     ,italian lire                    
#gf-gg                = #a     ,r\manian
 lei               #bcj-bej             
= #a  ,! la/ ,i he>d f ,vi5na 0 t !y _h 
be5 v>y+ f t5 ?\s& to fifte5 ?\s& to !  
pap] p\nd6  ,! diff]5ce 9 ! rates       
dep5d$1 ( c\rse1 ^u :e!r ! cu/om] 0 buy+
 or sell+ ! =eign money4 ,if he 0 buy+  
,au/rian notes1 he w\ld get tw5ty-f\r   
hundr$ pap] cr[ns = a p\nd4 ,if he 0    
sell+ !m1 he w\ld receive a p\nd 9      
ex*ange = tw5ty-six hundr$ pap] cr[ns4  
,all ^! pap] notes are call$ aft]1 &    
pr(ess to repres5t1 silv] co9s1 :i* 7   
!mselves be=e ! w>1 tok5s1 & pass$      
curr5t at m ?an _! intr9sic value       
because ( _! relation to gold4  ,?us !  
pre-w> p>ity ( m>ks 0 ab\t tw5ty to !   
gold p\nd2 ( ,au/rian cr[ns1 ab\t       
tw5ty-f\r2 ( francs1 lire1 etc41 ab\t   
tw5ty-five4 ,on ! day ( my pur*ase1     
!re=e1 ! ex*ange value ( ! ,g]man m>k 0 

less ?an "o ?irte5?1 ( ! ,au/rian cr[n  
less ?an "o "o hundr$?1 & ( ! ,poli%    
m>k1 "o two hundr$?1 ( its pre-w> /atus4
 ,b ?is und]e/imates ! depreciation2 = !
 ,briti% p\nd is no long] a gold        
sov]eign1 & ev5 gold has be5            
depreciat$4#ag ,! pap] p\nd 9 ,june1    
#aiba1 01 ,i ?9k1 ab\t ! equival5t (    
twelve pre-w> %ill+s 9 pur*as+ p[]4 ,!  
gold doll>1 :i* w\ld only buy a little m
 ?an f\r %ill+s be=e ! w>1 w\ld buy five
 at ! beg9n+ ( ,decemb]1 #aiba4         
#ag ,to-day1 ,novemb] #cj1 #aiba1 ! pap]
 p\nd is wor? ab\t       f\r fif?s ( a  
gold p\nd4 ,! pur*as+ p[] ( gold--say1  
! gold doll>--is p]haps ab\t two ?irds (
 :at x 0       be=e ! w>4  ,al?\gh an   
inconv]tible pap] curr5cy has no        
intr9sic value1 x c 79 accordance ) !   
quantity !ory ( money7 be ma9ta9$ at a  
fairly /able ratio to gold or           
commodities by an hone/ gov]nm5t if !   
total issue is fix$1 or kept betwe5     
reasonable maximum & m9imum limits4 ,!  
rise ( prices s9ce ! w>1 9 ea* c\ntry   

:]e reliable /ati/ics are available1 has
 be5 9 proportion to ! expansion ( !    
pap] curr5cy1 all[ance be+ made = !     
sc>city ( commodities4 ,( c\rse a decl9e
 9 pur*as+ p[] foll[s an expansion (    
circulation4 ,! /ability ( ! ,briti%    
pap] p\nd s9ce a limit 0 impos$         
illu/rates ! correctness ( ! quantity   
!ory ( money4 ,its increase 9 pur*as+   
p[] 7l t ( ! gold doll>7 dur+ ! fir/    
half ( #aiba is1 ( c\rse1 due to ! fact 
t ! supply ( utilities _h ov]tak5 !     
dem&4  ,at fir/ sight x seems difficult 
to und]/& h[ any gov]nm5t1 h[ev] bad1 c 
delib]ately issue flood ^u flood (      
inconv]tible pap] money1 see+ t its     
pr9t+ op]ations are ru9\s to bo? public 
& private cr$it4 ,to obta9 ! same am\nt 
( rev5ue1 ea* new issue1 ea* new dose1  
has to be mu* l>g] ?an ! prec$+4 ,9 !   
c\rse ( twelve mon?s1 = example1 !      
ex*ange value ( ! ,poli% m>k 0 divid$ by
 t51 t is1 at ! end ( ! p]iod1 t5 times 
z mu* pap] money _h to be pr9t$ z at !  
beg9n+1 to get ! same rev5ue4 ,yet !    

,poli% ,gov]nm5t cont9u$ ^u its c\rse ) 
! approval & support ( ! ,poli% ,diet4  
,! foll[+ quotation is f ! ,w>saw       
correspond5t ( ! ,london ,economi/1 :o  
wrote on ,july #bh1 #aiba3      ,!      
effects ( ! la/ collapse ( ! ex*anges   
are beg9n+ to     make !mselves felt1 & 
! ,diet is already prep>+ fre%     gr\nd
 = new curr5cy inflation4 ,by its la/   
vote ! limit on     ! note circulation  
has be5 increas$ to #aah milli>ds1 & on 
! advances ( ! ,poli% ,national ,bank to
 ! ,gov]nm5t to #aej     milli>ds4      
,! depreciation ( ! ,poli% m>k 9 ,june 0
 foll[$ by a rise     ( prices1 & ?is l$
 imm$iately to a /rike movem5t 9 almo/  
all indu/ries4 ,9 ! ,lodz di/rict       
#dj1jjj workm5 h gone on     /rike1     
dem&+ a wage increase ( #abj p] c5t6 ,! 
manufactur]s decl>e t !y _c raise wages 
by m ?an #bj     p] c5t2 t ev5 "u pres5t
 conditions ! ,poli% textile     indu/ry
 is 9 a mo/ difficult position on !     
=eign m>kets1     especially 9 ,r\mania1
 ! ,baltic ,/ates1 etc4 ,posnania 0     

m5ac$ by an agr>ian /rike1 b a settlem5t
 has be5 rea*$4     ,! /rike ( !        
municipal work]s 9 ,w>saw 0 %ort-liv$4  
,ev]y:]e1 h[ev]1 wages h be5 increas$ by
 m ?an #ej p]     c5t4 ,?is naturally w 
entail a new wave ( ris+ prices1 !      
,gov]nm5t w be oblig$ to d\ble ! sal>ies
 ( its (ficials1     & ! pr9t+ press w  
"w aga9 "u a high] pressure4     ,?is is
 ! vici\s circle r\nd :i* ! c\ntry has  
be5     travell+ = ?ree ye>s4  ,ex uno  
disce omnes4 ,! monet>y policy ( !      
,poli% ,gov]nm5t is m]ely a flagrant    
example ( ! rec5t monet>y hi/ory ( all !
 /ates ( ,europe nor!a/1 s\!a/1 ea/1 ( !
 ,rh9e & ( ! ,alps4 ,!re is only "o real
 rem$y1 ! re/abli%m5t ( complete peace1 
dis>mam5t1 ! abolition ( conscription1 !
 dra/ic r$uction ( bloat$ bureaucracies1
 & a :olesale l[]+ ( t>iffs1 :i* w all[ 
! mis]able & half-/>v$ populations to   
r5ew ! arts ( peace & ! ex*ange ( _!    
agricultural products & manufactures4   
,,app5dix  ,,! ,,brussels ,,conf]5ce#ah 
,if all c\ntries 7 includ$1 a g5]al &   

proportionate r$uction ( ! milit>y &    
naval e/abli%m5ts to "o half ( _! pres5t
 co/ w\ld set free a fund ( probably at 
lea/ #c1jjj1jjj1jjj to #d1jjj1jjj1jjj   
annually = ! pur*ase ( food & useful    
commodities1 = ! /abilization & p>tial  
re/oration ( debas$ pap] curr5cies1 = ! 
paym5t ( debt1 ! removal ( public       
deficits1 ! revival ( cr$it1 & !        
r$uction ( taxes4 ,?us ! road to recov]y
 lies pla9 be=e u4 ,w x be tak5 by !    
/atesm5 to ^: h&s ! peoples h intru/$ _!
 lives & =tunes8        #ah ,tak5 by    
p]mission f an article by ! au?or 9 !   
,saturday ,ev5+ ,po/ ( ,novemb] #ab1    
#aiba4   ,,deficits ,,! ,,rule  ,9 ord] 
to %[ t ?is view is 9 con=mity ) !      
conclusions ( exp]ts1 & ev5 ( (ficials  
delegat$ = ! purpose ( exam9+ _w f9ance 
by ! gov]nm5ts !mselves1 ,i turn to !   
conclusions unanim\sly arriv$ at by !   
,brussels conf]5ce a ye> ago1 aft]      
eighty-six f9ancial exp]ts f ?irty-n9e  
c\ntries _h pres5t$ ! acc\nts & balance 
%eets ( _! respective gov]nm5ts4 ,9 a   

g5]al review ( ! situation !y po9t out t
 ! total ext]nal debt ( ! ,european     
bellig]5ts1 conv]t$ into doll>s at p>1  
am\nts to ab\t #aee milli>d doll>s1     
comp>$ ) ab\t #ag milli>d doll>s 9      
#aiac4 ,!y say t ! gov]nm5t exp5ditures 
( ! ,european bellig]5ts am\nt to betwe5
 #bj & #dj p] c5t ( ! total incomes ( ! 
peoples4 ,!y say emphatically t !       
re/oration ( real peace1 ) dis>mam5t1 is
 ! fir/ condition = ! _w's recov]y4     
,f\r commissions 7 appo9t$4 ,! fir/     
dealt ) public f9ance1 & its resolutions
 7 adopt$ unanim\sly by ! conf]5ce4 ,!  
foll[+ extract f its resolutions des]ves
 att5tion3      ,?irty-n9e nations h 9  
turn plac$ be=e ! ,int]national         
,f9ancial ,conf]5ce a /atem5t ( _!      
f9ancial position4 ,!     exam9ation (  
^! /atem5ts br+s out ! extreme gravity (
     ! g5]al situation ( public f9ance  
?r\gh\t ! _w1 &     p>ticul>ly 9        
,europe4 ,_! import may be summ$ up 9 ! 
/atem5t t ?ree out ( e f\r ( ! c\ntries 
repres5t$     at ?is conf]5ce & elev5   

out ( twelve ( ! ,european     c\ntries 
anticipate a budget deficit 9 ! pres5t  
ye>4 ,public     op9ion is l>gely       
responsible = ?is situation4 ,! close   
connection betwe5 ^! budget deficits & !
 co/ ( liv+1     :i* is caus+ su* suff]+
 & unre/ ?r\gh\t ! _w1 is     f> f be+  
grasp$4 ,ne>ly e gov]nm5t is be+ press$ 
to     incur fre% exp5diture2 l>gely on 
palliatives :i* aggravate !     v evils 
aga9/ :i* !y are direct$4 ,! fir/ /ep is
 to     br+ public op9ion 9 e c\ntry to 
realize ! ess5tial     facts ( !        
situation & p>ticul>ly ! ne$ = re/abli%+
     public f9ances on a s\nd basis z a 
prelim9>y to ! execution     ( ^? social
 re=ms :i* ! _w dem&s4      ,public     
att5tion %\ld be especially drawn to !  
fact t !     r$uction ( prices & !      
re/oration ( prosp]ity is dep5d5t     on
 ! increase ( production1 & t ! cont9ual
 excess (     gov]nm5t exp5diture ov]   
rev5ue repres5t$ by budget deficits     
is "o ( ! mo/ s]i\s ob/acles to su*     
increase (     production1 z x mu/ soon]

 or lat] involve ! foll[+               
consequ5ces3      7a7 ,a fur!r inflation
 ( cr$it & curr5cy4      7b7 ,a fur!r   
depreciation 9 ! pur*as+ p[] ( !        
dome/ic curr5cy1 & a /ill great]        
in/ability ( ! =eign     ex*anges4      
7c7 ,a fur!r rise 9 prices & 9 ! co/ (  
liv+4      ,! c\ntry :i* accepts !      
policy ( budget deficits is tread+     !
 slipp]y pa? :i* leads to g5]al ru92 to 
escape f t     pa? no sacrifice is too  
great4 ,x is !re=e imp]ative t     e    
gov]nm5t %\ld1 z ! fir/ social &        
f9ancial re=m1     on :i* all o!rs      
dep5d3      7a7 ,re/rict its ord9>y     
recurr5t exp5diture1 includ+ !          
s]vice ( ! debt1 to su* an am\nt z c be 
cov]$ by its     ord9>y rev5ue4      7b7
 ,rigidly r$uce all exp5diture on       
armam5ts 9 s f> z su*     r$uction is   
compatible ) ! pres]vation ( national   
security4      7c7 ,ab&on all           
unproductive extraord9>y exp5diture4    
7d7 ,re/rict ev5 productive extraord9>y 
exp5diture to !     l[e/ possible am\nt4

      ,! ,supreme ,c\ncil ( ! ,alli$    
,p[]s 9 its pron\ncem5t on     ! eigh? (
 ,m>* decl>$ t armies %\ld ev]y:]e be   
r$uc$ to a peace foot+2 t armam5ts %\ld 
be limit$ to !     l[e/ possible figure 
compatible ) national security & t     !
 ,league ( ,nations %\ld be invit$ to   
consid]1 z soon z     possible1         
proposals to ?is end4      ,! /atem5ts  
pres5t$ to ! conf]5ce %[ t1 on an       
av]age1 "s #bj p] c5t ( ! national      
exp5diture is /ill     be+ devot$ to !  
ma9t5ance ( armam5ts & ! prep>ations    
= w>4 ,! conf]5ce desires to affirm ) ! 
utmo/ emphasis     t ! _w _c af=d ?is   
exp5diture4 ,only by a frank     policy 
( mutual cop]ation c ! nations hope to  
rega9 _!     old prosp]ity1 & 9 ord] to 
secure t result1 ! :ole     res\rces (  
ea* c\ntry mu/ be devot$ to /rictly     
productive     purposes4      ,!        
conf]5ce accord+ly recomm5ds mo/ e>ne/ly
 to ! ,c\ncil     ( ! ,league ( ,nations
 ! desirability ( conf]r+ at once     ) 
! sev]al gov]nm5ts conc]n$1 ) a view to 

secur+ a     g5]al & agre$ r$uction ( ! 
cru%+ burd5s :i* on _!     exi/+ scale  
armam5ts /ill impose on ! impov]i%$     
peoples     ( ! _w1 sapp+ _! res\rce &  
imp]il+ _! recov]y     f ! ravages ( w>4
 ,! conf]5ce hopes t ! ,assembly (     !
 ,league1 :i* is ab\t to meet1 w take   
en]getic action to     ?is end4  ,!     
above recomm5dations 7 ignor$ by !      
,league ( ,nations & by practically all 
! gov]nm5ts conc]n$4 ,consequ5tly !     
debts & deficits ( mo/ ,european        
c\ntries are l>g] at ! pres5t "t ?an !y 
7 a ye> ago1 & mo/ ( ! pap] curr5cies h 
depreciat$--"s v heavily--dur+ ! la/    
twelve mon?s4   ,,! ,,dang]s ,,(        
,,inflation  ,i turn next to !          
resolutions propos$ by ! second         
commission :i* _h to exam9e problems (  
curr5cy & =eign ex*ange4  ,f its        
resolutions1 :i* also 7 adopt$          
unanim\sly by ! conf]5ce1 ,i extract !  
foll[+3      ,! curr5cies ( all         
bellig]5t & ( _m o!r c\ntries1     ?\gh 
9 greatly v>y+ degrees1 h s9ce ! beg9n+ 

( !     w> be5 exp&$ artificially1      
reg>dless ( ! usual re/ra9ts     ^u su* 
expansion--to :i* we ref] lat]--& )\t   
any     correspond+ increase 9 ! real   
weal? ^u :i* _!     pur*as+ p[] 0 bas$2 
inde$ 9 mo/ cases 9 spite ( a     s]i\s 
r$uction 9 su* weal?4      ,x %\ld be   
cle>ly und]/ood t ?is artificial &      
unre/ra9$ expansion1 or inflation1 z x  
is call$1 ( !     curr5cy or ( ! titles 
to imm$iate pur*as+ p[] does n     & _c 
add to ! total real pur*as+ p[] 9       
exi/5ce1 s     t its effect mu/ be to   
r$uce ! pur*as+ p[] ( ea* unit     ( !  
curr5cy4 ,x is 9 fact a =m ( debas+ !   
curr5cy4      ,! effect ( x has be5 to  
int5sify1 9 t]ms ( ! inflat$            
curr5cies1 ! g5]al rise 9 prices1 s t a 
great] am\nt (     su* curr5cy is ne$$  
to procure ! accu/om$ supply ( goods    
& s]vices4 ,:]e ?is additional curr5cy 0
 procur$ by     fur!r inflation--t is1  
by pr9t+ m pap] money or     creat+ fre%
 cr$it--!re arose :at has be5 call$ a   
vici\s     spiral ( con/antly ris+      

prices & wages & con/antly     increas+ 
inflation1 ) ! result+ disorganization (
 all     bus9ess1 dislocation ( !       
ex*anges1 a progressive increase 9     !
 co/ ( liv+1 & consequ5t labor unre/4   
,x is ( ! utmo/ importance t ! gr[? (   
inflation %\ld     be /opp$2 & ?is1     
al?\gh no d\bt v difficult to d         
imm$iately 9 "s c\ntries1 c\ld quickly  
be accompli%$ by     ab/a9+ f increas+ !
 curr5cy--9 its broade/ s5se1 z         
def9$ above--& by increas+ ! real weal? 
^u :i* su*     curr5cy is bas$4      ,! 
cessation ( increase 9 ! curr5cy %\ld n 
be a*iev$     m]ely by re/rict+ ! issue 
( legal t5d]4 ,su* a /ep1 if            
unaccompani$ by o!r measures1 w\ld be   
apt to aggravate !     situation by     
caus+ a monet>y crisis4 ,x is necess>y  
to attack     ! causes :i* lead to !    
necessity = ! additional curr5cy4       
,! *ief cause 9 mo/ c\ntries is t !     
gov]nm5ts1 f9d+     !mselves unable to  
meet _! exp5ditures out ( rev5ue1 h     
be5 tempt$ to resort to ! artificial    

creation ( fre%     pur*as+ p[]1 ei!r by
 ! direct issue ( additional            
legal-t5d] money or m frequ5tly by      
obta9+--especially f     ! banks (      
issue1 :i* 9 "s cases are unable & 9    
o!rs     unwill+ to refuse !m--cr$its   
:i* mu/ !mselves be     satisfi$ 9      
legal-t5d] money4 ,we say1 !re=e1 t     
gov]nm5ts mu/ limit _! exp5diture to _! 
rev5ue4  ,"h aga9 we h excell5t doctr9es
 & good practical advice f ^! f9ancial  
exp]ts to ! gov]nm5ts :i* appo9t$ !m4 ,b
 ! doctr9es h rema9$ unappli$1 & !      
advice has be5 honor$ 9 ! brea* in/ead (
 9 ! obs]vance4   ,,wise ,,c\nsel       
,,ignor$  ,i pass next to ! resolutions 
propos$ by ! commission on int]national 
trade & adopt$ unanim\sly by ! conf]5ce1
 f :i* ! fir/ two p>agraphs w be quot$3 
,! ,int]national ,f9ancial ,conf]5ce    
affirms t ! fir/     condition = !      
resumption ( int]national trade is !    
re/oration ( real peace1 ! conclusion ( 
! w>s :i* are     /ill be+ wag$ & !     
assur$ ma9t5ance ( peace = !     future4

 ,! cont9uance ( ! atmosph]e ( w> & (   
prep>ations = w> is fatal to !          
developm5t ( t mutual     tru/ :i* is   
ess5tial to ! resumption ( normal trad+ 
relations4 ,! security ( int]nal        
conditions is sc>cely less              
important1 z =eign trade _c prosp] 9 a  
c\ntry ^:     int]nal conditions d n    
inspire confid5ce4 ,! conf]5ce     tru/s
 t ! ,league ( ,nations w lose no       
opportunity to     secure ! full        
re/oration & cont9u$ ma9t5ance ( peace4 
,! ,int]national ,f9ancial ,conf]5ce    
affirms t ! improvem5t     ( ! f9ancial 
position l>gely dep5ds on ! g5]al       
re/oration z soon z possible ( good w   
betwe5 ! v>i\s     nations2 & 9 p>ticul>
 x indorses ! decl>ation ( !            
,supreme ,c\ncil ( ! eigh? ,m>* la/ t ! 
,/ates :i*     h be5 creat$ or enl>g$ z 
a result ( ! w> %\ld at once            
re/abli% full & fri5dly cop]ation &     
arrange = !     unre/rict$ int]*ange (  
commodities 9 ord] t ! ess5tial         
unity ( ,european economic life may n be

 impair$ by ! erection     ( artificial 
economic b>ri]s4  ,"h aga9 !re is a full
 recognition ( ! fact t peace is        
necess>y to ! r5ewal ( prosp]ity1 & t ! 
atmosph]e ( w> prep>ations is fatal to !
 gr[? ( trade4 ,b nei!r ! ,league (     
,nations nor ! ,supreme ,c\ncil1 s f> z 
,i am aw>e1 has made any effective      
response to ^! appeals4  ,f\r?ly &      
la/ly1 ,i come to ! commission on       
int]national cr$its4 ,?is commission    
pass$ a numb] ( resolutions1 all ( :i* 7
 adopt$ unanim\sly by ! conf]5ce2 b x w 
suffice to cite ! fir/ two3      ,!     
conf]5ce recognizes 9 ! fir/ place t !  
difficulties     :i* at pres5t lie 9 !  
way ( int]national cr$it op]ations      
arise almo/ exclusively out ( !         
di/urbance caus$ by ! w>1     & t !     
normal work+ ( f9ancial m>kets _c be    
completely re/abli%$ unless peaceful    
relations are re/or$     betwe5 all     
peoples & ! out/&+ f9ancial que/ions    
result+ f ! w> are made ! subject ( a   
def9ite     settlem5t :i* is put into   

execution4      ,! conf]5ce is1 moreov]1
 ( op9ion t ! revival ( cr$it           
requires z prim>y conditions !          
re/oration ( ord] 9 public     f9ance1 !
 cessation ( inflation1 ! purg+ (       
curr5cies1 &     ! fre$om ( comm]cial   
transactions4 ,! resolutions ( !        
commission on int]national cr$its are   
!re=e bas$ on !     resolutions ( ! o!r 
commissions4  ,my argum5t !n is fully   
endors$ by ! exp]ts at ,brussels4 ,all !
 facts & figures set =? 9 ! volum9\s    
records ( t rem>kable conf]5ce indicate 
! urg5cy ( peace & dis>mam5t4 ,a ye> has
 pass$4  ,! ,brussels recomm5dations h  
be5 ignor$1 & conditions 9 ,europe z    
reg>ds its curr5cies1 debts1 trade &    
cr$it h det]iorat$4 ,! ,naval           
limitations propos$ by ,mr4 ,hughes at  
,wa%+ton1 ev5 if !y are ratifi$1 w give 
practically no relief to ,europe4