The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-21

cient surplus to extend its power each year. to
wrest little more terri h5ory from darkness and
to give its benefits to more millions of weaker
races. For four years lis surplus has been utll-
lied elsewhere, and it nnay even be true that
some of the stored-up energy has been expended
But, generally speaking, the productive power OF
the world has not been impaired. If work were to
start tomorrow in every factory where it was
carried on previous to tine war; the surplus would
again be produced.
The minds of ordinarily men were so occupied
during the war with the daily problems which the
war brought with it thai they had little time for
taking stock of the general world situation. The
state of the ledger was of little interest. The
main thing was to fulfill the contract. During
the let-down which fol bowed the armistice, men
began to figure up their status The knowledge
of the extent to which the surplus had been ex-
hausted spread in gradually widening circles
through the world bringing astonishment and
panic to the unthinkin.g, and causing grave con-
Germ even to wiser men,.
It was only few weeks ago that this know
ledge reached it's widest diffusion and affected
the equanimty of the greatest number of people.
1t so happened, therefore, that the most compel
ent observers had discounted the dangers of the
situation by the time that comprehension OF it
had become widely spread. AS these trained OBJ
servers reckoned up the worlds resources they
invariably reached the, conclusions that the pro-
ductive power of the world had not been i'm
paired as their authoritative view became more
widely known and her judgment was accepted
by men in positions of leadership, pessimism
gradually subsidized. This probably accounts for
the fact that the excitement of the last week or
two has had little arspreciable depressing effect
ture of goods and their sale here and abroad.
This is said, of course, without any attempt
to belittle the seriousness of the present situa-
tion or to gloss over the difficulties which must
be met and overcome before normality in trade
relations, and particularly in foreign trade rela-
tons, may be expected 1t so happens that the
United States being in position to supply so
many of the worlds needs during the war, had to
extend credit to the purchasers of those materials
until the normal exchange relations had been en-
tirely disrupted. To place Europe again in pro-
duction, and so to continue our own prosperity
requires further extension of credit. The sOlv-
ency of Europe being granted, the problem for
the American banker, manufacturer and exporter
shrinks from an economic problem into one of
finance that is, it is question of deciding upon
the terms upon which credit may be most advan-
tageousy supplied
On both sides of the Atlantic the situation is
identical in this respect-that settlements cannot
be made until production has been resumed on
the fullest possible scale. Europe cannot produce
until food and materials, machinery and fuel
necessary to her production have been secured
from the United States, the most available source
| of supply. Those needs cannot be supplied unless
our production is kept at the highest possible
level. Production is the fundamental of the prob
lem, and unless production is maintained and in
creased, here and abroad reforms will be useless,
and all the attention devoted to panaceas will be
so much energy diverted from the real crux of
the situation, and much a sin against civiliza-
ton. In truth, the world has choice. AS be-
tween optimism and disaster the course is already
decided