The Washington times., 1919-08-26
Boersianer's
Comment
on Business
By RoFRsIANFR.

BY BOERSLAEER.
The pressure OF facts which might
become depressives may force Con-
gress to pass an imperative bill or
two. A decrease Of $3.50, 200. 900 in
July exports-compared to the for
eign sales in June-is q warning
which the figures for August will
doubly emphasize.
Overseas trade IS something that
will not wait on the pleasure OF any
body, least Of all on the shilly-shally-
ing OF politicians. In normal times a
nations OutWardbound business is
important enough to give captains Of
industry concern. Now, today, 1t Is
percentage OF difference between
prosperity and the reverse Is ineom-
parably higher than in a pre-bellum
period. Ordinarily, in this country, a
decrease or increase OF 10 per cent
in commerce spells a boom or sub
normal condition-represen mostly
BY exports. At present the difference
Is quite 20 per cent
Unfortunately, too much thought a
given TO personal fences In Washing
ton as the general elections approach.
Debated measures are considered and
voted on not-so much per Sc az how
electors may regard the subject and
the vote.
Customarily national legislators DO
not bring a redundancy OF wisdom to
a purely economic question. In pre-
nomination sessions the limited wis
dom is alloyed BY expedieney.
These mean remarks aIlude es-
pecially to discussions OF what should
be done in the way Of financing Eu-
rope that Americas foreign trade
may not collapse. With succeeding
days schemes multiply-now that
economists as well as business men
are disturbed
OF the many proposals heard In
and out of Washington two have ar
rested the attention Of the informed
element One is III. p. Davison's. Hii
is a strong plan, unanimously ap-
proved by the knowing-whtch does
not necessarily include those who re-
jected it on prejudicial grounds. The
other is the Edge bill. which could
be greatly strengthened by incor-
porating into it a few OF Mr.. DaYi-
sons telling ideas.
The Edge measure proposes many
$4,000, 900 corporations to finance Eu-
rope instead Of Mr.. DavisOn's $1,000
600, 600; the former provides for Fed
eral supervision sans Federal partici-
patton and guarantee, while the lat
ter asks a 25 per cent participation
with a guarantee that is the more
fortified in that the Government
personal claim is subordinated. Mr..
Edges bill challenges further debate
because IL empowers the Federal re-
serve board 20 revoke as well as to
refuse charters.
In view of some of the recent
moves OF the Federal reserve board
implicit and explicit-investors would
much prefer to have the Govern
ment's guarantee to the Govern
ment's supervision in the persons of
the Federal reserve board members.
The Governments supervisory ability
or isability-may be good or bad
il is a contingency. But the Govern
ment's guarantee is incontestab1e,
and, being so. is a standing indemni-
fication Of whatever mistakes of
omission ar commission the Federal
reserve board would make.
In its purport, however. the Edge
bill, with its allowance Of numberless
corporations, is feasible. With some
changes il can be made to do what the
Dawson plan could have done, un-
questionably, with one comprehensive
corporation.