The Washington herald., 1915-03-01
Time to Start the Wheels.

Had President wilson reserved his famous cx-
preston Psychological depression" which he used
nearly year ago to describe what was at the time
generally recognized as deplorably real condition
he could apply it to the industrial situation today
and there would be few to question the accuracy
of his analysis About all that is left of the de-
preston that followed the enactment of the Under
wood tariff law is psychological, since the war has
had the effect in measure of repeating that law
lor at least minimizing the disaster which II
threatened. That is say, the European conf1ic,
has saved markets from being flooded with the
products OF foreign labor. admitted free of duty
or with the duty greatly reduced
Before the outbreak of the war, enormously
increased imports had turned substantial bal
ance OF trade in favor of this country into a
larger balance against it; and in spite OF this
our customs revenues were reduced that a
deficit in the governments finances was plainly
visible ahead.
The war has restored our balance of trade and
turned our debts abroad into credit, at the same
time but slightly reducing already inadequate
national revenues. 1t has increased tremendously
the demand abroad not only for foodstuffs. but
Tor variety of manufactures; and has cut off
the stream OF products, manufactured by cheap
European labor. that were driving the products OF
our own factories out OF market and
with all its able-bod men in uniform, had every.
thing to buy and little to sell
Today the business interests OF this country
contemplate enormous credits abroad, bring
ing foreign exchange down to the lowest figure in
generation and turning back in a steady stream
the gold sent to Canada soon after the war
began 10 maintain credit with Great Britain.
1t may reasonably be expected that our exports
will increase rather than diminish and that before
the year is shall have unprecedented
balance of trade in our favor. With ample funds
available for every legitimate enterprise and with
the prospect OF growing market for the products
OF our industry, there appear no sound reasons
why the brakes should not be taken off and the
unemployed put to work. The curtailmcnt Of our
needs at home deprived men of employment and
further reduced capacity for consumption.
With fundamental conditions vastly i'm
proved there is but little for the hesitation
of capital to set the mills and factories going on
full time putting money in circulation and restor-
ing the buying and consuming capacity OF the
whole people. Overproduction is scarcely pos
sibility to be feared with this country in sold
out condition and increasing foreign demand
a reasonable expectation. Unless therefore, it is
haunting lear that the seas may not be kept
open to commerce that is holding our industrial
chieftans back, the influence that is keeping the
handspring clogged and the wheels revolving
sluggshly must be purely psychological. There is
nothing else that is tangible to keep in the dol
drums. But the allies have control of the and
there are no indications that they will renquish it,
in spite Of war zones and submarines. And also it
must be remembered that once Our exports to Eu-
rope cease the end OF the war is in sight.
There may be real depression in the United
States Treasury, but when industry is humming
again that condition need worry only those in
charge OF the government.