New-York tribune., 1919-01-23

proposal was sound, but that it might
p.ove exceedingly dangerous in prac-
ticc. If we lived in a world in which
permanent Harmony and perfect bal
anccs in trade among nations existed,
he said, the clearing house plan OF
settling accounts would be admirable.
But" he continued, with due re-
spect to the contemplated league OF
nations, in case of war the nation
which got possession of the storehousc
of gold would have tremendous ad-
vantage. Moreover, the proposed plan
might make international arrangements
too easy, and thus lead to hazardous
ovcreXDanslon."
Would Set Markets Free
In the domestic readjustmcnt, Mr..
McGarrah would set free all the COM
modify markets, including wheat, and
would have Congress make up the dif-
ference to the farmer between the
open market price and the guaranteed
price of $226 bushcl for 1919. Re-
gardng the American position in the
worlds gold market, he advocated the
outflow of all gold not needed in this
country.
In his address Mr.. Maddox urged
continuation of credit extensions to
nations of Europe which are debtors
of the United States. .
"The great question now" Mr.. Mad
doX declared, "is how we car con-
tMue to maintain or increase our for.
eign business, with q credit balance of
approximately $500,OUO 900 in annual
interest due to start with, an amount
nearly equal to the balance of our
freign trade four years ago. How can
we be paid for the goods we hope to
export in the future? 1t would be un-
wise to add to our already large stock
of gold. There are some articles
which we now import which we could
use in increasing quantities, but there
is little hope that this increase will
keep pace with our ability to increase
our own export products.
Foreign Investment Suggested
cone Of the plans suggested is for
this country to continue to buy the
obligations of our debtor countries un-
til our people are educated to buy di-
rect foreign governments securities or
the securities of we'll established in
dustrial enterprises in other parts OF
the world If we expect to increase
or even maintain our foreign business
it is absolutely essential to grant these
credits in some form, and we must be-
gin at once some plan to absorb these
securitlel.'
The speaker indicated that we are on
the crest of world wide imitation, but
the very fact that it is world wide is
& favorable feature, as it Will enable
prices and wages to be reduced more
gradually. Mr.. Maddox said further
that no one expects prices and wages
to be maintained at the artificial level
to which they were raised by the wars
demands, now that the war is over, but
much depends upon the promptness and
fairness with which the government
settles the contracts for labor and sup
plies to which it was committed at the
time the war ended.
Return of Railroads Advocated
Regarding the railroads, Mr.. Maddox
added:
"The operation of the railroads by
the government may have been a war
necessity, but the service has not now
improved. 1t is a general impression
among business men in every section
that these railroads should be returned
to their owners under proper conGl-
tions. With an estimated loss in op-
Grafton during the last year of $780,
100000, it cannot be claimed that they
have been operated more economically.
1.-THE future of the merchant marine,
to my mind, is the most vital question
to be solved during the coming year.
The small amount Of tonnage under the
American flag before the war was q
disgrace to this country. 1t remained
e1r +lo of tN crr,r haS < ~
our pathetic dependence on foreign
bottoms and to start the construction
Of q creditable fleet
"There has been great awakening
throughout the country as to the i'm
portance of ships, and the man now in
Omaha is as much impressed with the
necessity of large merchant marine
as a resident of California or the
Carolinas."