The sun., 1919-05-26
How We Can Take Imports In Pay,
ment OF Foreign Debts.

hVht DSSsos
From a reader in Providence, Rhode
Island, comes the following:
THE SUN says. Nobody looking
into the future with clear vision can
fail TO see our imports icsrninx
high
Does not that mean that We must
have low tariff In general7 II Eu-
rope Is to pay Its present Indebtedness
70 us, must not the favorable bal
ance Of trade turn against us7 II We
have some unemployment even while
the balance of trade continues IN our
favor must we not have general un-
employment during the period that
Europe is paying Its debt to us?"
1t Is possible for a nation to have
IN adverse trade balance which need
not cause unemployment Before the
war the United Kingdom was in ex-
actly that position. 1t depends upon
what imports are received and under
what circumstances
1t Is possible also for a nation to
have favorable trade balance in the
commonly accepted term and yet not
have In fact q real balance in its
favor. Before the war we were In ex-
aetly that position.
It is possible. furthermore, for a
nation or for nations to pay debts to
another nation and yet not food II
with goods, not even send It directly
any goods at all.
These are the things which Con
gress legislators will keep in mind
while framing the new tariff sched
ules. II they not only keep in mind
the fundamental principles involved
but put them into the laws there Is NJ
reason why the Old World should no,
pay Its debts to US, and there Is nc
reason why we should be submerged
by fatal flood Of imports during
that debt paying process.
1t is as plain as church on a hill
that II we ourselves do not raise cof
fee, for example, no amount of coffee
imported by US can put our wag'
earners out of their Jobs. The sam,
thing Is true OF tea, Of silks, of rubber
Of thousands of tropical and othe
products that n great and prosperous
people are able to consume. 1t is tru
Of things that we also produce but no
in sufficient quantities to satisfy GU
own needs.
Now, zee how this may work out
The United Kingdom, whatever I
may owe us and for however long. IN
doubtedly will be owed by Brazil ant
other South American countries, b!
the Orient and, In the long run, by al
Its colonies and dependencies. II tn,
United Kingdom must pay US severa
hundred million dollars In q givei
time, while countries of South Amer
lea and the Far East are due to pa.
the United Kingdom, what can harper
in the triangle of international trade
what does happen day in and day out
Is that South America RENTS none,
or goods to us instead of to England
Japan. China, India and Australia d.
the same thing. In such fashIo
while they cancel their debts to tn
United Kingdom at the same tim
they cancel the United Kingdom
debts to us.
To this nation the invisible trad
balance has always been of impor
tance-sometimes of greater impor
tance than the visible trade balance
Important 1t always will be. This /
easily comprehended. Our travellers
for instance, now more than ever, will
20 abroad for long holidays and shor
holidays. They will go by the ten
and hundreds Of thousands Of persons
They will spend on their journeying
hundreds Of millions of dollars
Every time IN American travelle
spends a dollar bill in Europe he will
be assisting the country in which h
spends 1t to strike Its trade balrnc
or pay It's debts to us.
Probably more than ever or fol-
ein born population and our popu
iation recently sprung from foreig
parentage will send financial aid (
their needy relatives across the seq.
II this went over in gold It woul
help to freight many ships. But
will no longer have to go In gold. !
Will simply be credited on the othe
side to Governments and banks an
business houses that have oblIga ton
TO meet in this country.
With all the foreign luxurIes III
American people can afford to buy an
% buy, with all the nv articles ,