The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1919-08-31
Prosperity With Complications
What We Call the High Cost of Livingstone
and Possible Remedies

| ended June 30. establishes a new
| record. not only for the United
States but for all countries, The ex;
cess OF exports over imports was
more than N,l0O, 600 eco. also a rec
ord. and the Increase OF exports
over those during 1918 was approx
! imately 81 800. 600, 900. whereas, i'm
ports In the fiscal year just closed
exceeded those OF 1918 by only
&l50.000, 900, As compared with the
normal fiscal year OF 1914, imports
last year were greater by only
l,l00, 100000, and exports by about
$4,000, 100000,
It is noteworthy that our imports
from Europe In 1914 amounted to
1896, 100000, as contrasted with
only s372.95O, 900 in 1919. while our
exports TO Europe in 1914 totaled in
value sl,4S6,40O,OOO. and In 1919
aggregated tt.63I.S00.000. Yet, un
der normal conditions. trade with
European countries makes up about
one half OF all this countrys for
eiEn commerce.
Those figures fairly staggcr The
unthinking naturally see In such a
presentment an ideal condition. Yet
that is error. To the student OF
world econOmics-and we must all
learn to think In world economies
they are ErRvely theatentng. Inter-
national commerce cannot long re-
main so Une-sidcd without bringing
disaster.
We should like, as one writer
points out, TO always have a trade
balance in our favor But We want
# 10 he a relatively small balance.
II IL Just as essn risial that we buy
goods from Europe as IL Is that
Europe buy from us. There are but
three ways In which a trade balance
can be settled, J. e.
by means OF goods or service. by
the shipment of gold, or by securi-
ties or other instruments OF value.
II IL entirely manifest that Eu-
rope cannot % on indefinitely set
Ting its enormous trade balance with
us either In gold ar securities. II Is
Just as apparent that we cannot 70
on supplying the total needs Of Eu-
rope from . our workshops and
farms Initiating Europe's credit
would hut result In 4 corresponding
Increase In commodity prices. Dis
astcr would surely follow, IL Is TO |
our interest that Europe get into ]
production ns speedily as possible [
FOR not otherwise can readiust- |
ment and stahillzlng OF values be Sc
cured. Decreased production Is one 1
fundamental cause OF high prices
The Initiation Of Credit.
This brings us 10 very vital |
cause of present excessive values 1
The initiation ~ credit Is world wide /
Coming coincident with an enorm- /
Gus decrease I'm production the re-
suit ~ inevitable. The dollar and .
the pound and the mark and the
tranc-have all deprecated In value.
at precisely that time when world
production OF commodities has also
decreased. In such circumstances
high prices are as natural as a bright
sun In MONDAY sky
Figures are not necessary TO prove
the initiation 0f credits abroad That
is one ~ those facts that require no
proof. 10 Is evident and admitted
hv all. hut the initiation is proper.
ton't"ly just ~ great In our own
country. | quote.
4 recent statement hv Secretary
Glass shows that expenditures OF
the government from the begin
ming ~ the war to June 30. 1919.
were something moro than ga2.-
600 900 600 - which % pa- cent
was raised hy 'aVHs and the balance
by horruwlra But not an the war
taxes levied In the last fiscal year
had been paid. so when the ac-
counts are finally cast up 10 will ,
probably be found that nearly one
third n the war cost was met by
taxation. Probably that Is tho
Nuriic1 bic limit though az the be-
ginning ~ tho war a good many ] q
theorists saw no difficulty ln rafs- n
.nE half ,r more NJ the war costs
'r taxation. J. is doubtful thatas q
much as Hu'-'r.-I 20 .hu cast of | z
q four year struggle. with our 1