The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-08-28

that the cotton. when It is picked and
baled, will show up quite as well as wheat
and corn.
The news comes ftcm New England
that the mill men have succeeded in
working off their oversupply Of textiles
and that industry in that quarter is look
ing distinctly better. The cotton mills OF
New England were probably as hard hit
as any industries Of the country by the
dull period which seems 10 be passing,
and confidence there Is an omen of some
Importance In summing up the business
and industrial situation. Mil men are
reported 10 be looking for a good fall and
winter business. and evidently they ex-
pect to get cotton at less than 16 cents
when the time comes for laying in new
supplies for the winter spinnings.
Traffic Conditions Improve.
The traffic situation is no worse and in
many respects IS better than a month
ago The railroad are doing a vast
amount Of business. While the rate trob-
bles are still far from settlement, the
crops must be moved 10 market. and re-
ports from all parts of the country are 10
I
all their available facilities and I'm many
cases have orders out for more. Business
men are gradually coming around TO the
conclusion that the rate problem can be
left to settle itself as between the gov
eminent and the traffic managers. and
Industry and trade need not be much az
fected thereby.
Elements Of the business problem which
have given most concern during the sum
mer months are not yet eliminated The
nation still has large balances to pay TO
Europe in the way Of trade. freights.
travellers expenses. and other items.
which In the past have been adjusted by
excess Of export trade. But for many
months we have had no excess Of export
trade and have increased our imports FAR
ahead OF exports, so that for the present
calendar year the drain for European
settlements has been constant and on
the Increase.
Economic Question Involved.
All this might come out right II the
crop margins were a little larger. No
doubt now exists that the agricultural
production in he United States Will be
equal to the home demand. but will there
be enough 20 send abroad 20 meet our
obligations there2 This question cannot
now be answered II wheat, corn. and
cotton is 20 go over sea to Europe II must
80 az lower prices than have prevailed.
in other words must be brought down 20
the export basis. II the necessary ex-
port is 10 take place 20 adjust the Euro
pean balances the cost OF living at home
cannot be much reduced II we do not
settle with Europe by sending our prod \
ucts there the cost OF living may be re-
duced 1T home. but the paying OF the
foreign balances would shake industry
and trade 10 their foundations during the
balance Of the year
Men have been asking n a readiusf-
ment Of trade relations between this
country and Europe is pending The
idea has been advanced many times IN /
past months that the home market has /
reached proportions where It must con-
sumo the agricultural product with little |
or no excess for export Meanwhile the 1
demand for foreign materials increases !
and must be paid for. not in a balance OF /
trade but IN cold cash.
The situation sums Itself up to about 4
this. II The export trade Is 70 be main |
tanned. the cost Of living at home cannot |
be reduced. II the cost OF living at home 4
is reduced. so far as food products are /
concerned, the European balances must
be met by other means than selling com /
modides abroad and America viii cease
10 be the great creditor nation it has been /
for the last half century.
Becomes n Disturbance.
This proposition Is the really disturb
ing element in the financial equation. the
solution OF which does not appear by the
application OF the usual formula.
The high cost Of living. clothing, and
the luxuries OF life have for more than
a year now depleted the margins between
the average mans income and expenses.
AS basis Of prosperity, il Is important
that this margin should be increased. II
Is probably true that the savings Of the
people OF this country have been and are
in jeopardy as this margin between earn
lngs and expenses grows less. Il calls for
larger income or greater economy or
both
Should the peculiar relation between the
trade Of this country and Europe main
tain and should the high cost OF living
continue. there viii be immediate need
N this country OF a drastic change
In the type OF living. The average family
before long must spend less or starve.
The nation seems perilously near the
parting Of the ways between the free Hv-
ng OF the past and more restricted ex-
Silence, entirely foreign 10 our traditions
and mode Of thinking An impartial view
81 the situation seems to suggest that
he time OF simple living has come, and
hat IT will force itself upon our people
With startling and terrific force in the
Years Immediately TO come.
Extravaganza IS probably a harsh term
% apply to the type Of living Of the aver
lge American, but II is certain that he
las been and Is spending too much. The
nance for riches is coming to be more and
more one Of close economy rather than one
4 increased income. and IL looks now as
hough TO the plain man. the awakening
must come within few years and that
he type Of living must take a lower grade
n this country.
AppIief 10 Washington,
Probably good many Washingtonians,
or example, could adopt the simple life,
ave money. acquire a competence. and
I've happier than they do now. but such
course, II Immediately and quickly TAX ..
n, would be a terrific Jar to most Of US.
md yet IL is a question whether some
hing like it will not be forced upon US
ow confronting the nation
If the pruning knife could be wisely ap- !
lied 10 the living expenses OF the aver