Evening star., 1920-01-03
CAPITAL CONFIDENT
Of NATIONS SP0WER
} IN READJUSTMENT
Looks Forward to Economic
! and Political Settlement
! in 1920 Forecast.

Washington looks forward to the
future. not without some solicitude
for the coming months. but with Il
deep underlying confidence in the ca
pacity of the country to carry on
through the period of readjustment
still ahead.
Nevertheless "delirious prosperity
is phrase on many lips these days.
No one here begrudgeS the country It's
present prosperity. but some are wor-
ried about the extreme aspects of
that prosperity. particularly the wave
of extravagant speculation that mas
swept over the land If Congress. wall
street and the people generally heed
the current warnings, however, re-
SponSible officials here have no Tears
for the future. They hold that the
nations economic problems. great as
they are, are far less pressing thafi
those of any other eX-belligerent rms
country has no shattered towns to re-
build: no empty Golfers to refll. On
The contrary, she has the plants, the
raw materials, the workmen, the
ships and the orders.
Its Own Special Viewpoint.
In this general outlook on the fu-
ture. the National Capital has its own
very special point of view. 10 De
sure Washington shares with wall
street the realization that, league Oh
nations or no league of nations. TINS
ture is hitched up with that OF Eu-
rope as never before and needs only
a credit harness to make that team
work effective. Officials here. now
ever have the opportunity ana lncii-
nation to take special interest IN
such matters as the fate of the peace
treaty and its bearings on the gen
eral situation. in the new approach
TO tariff legislation which is mani
Testing itself even among sucn @ olu-
fashioned protectionists as boleS rem
rose. and in budget reform rallroads
and taxation as these figure IN pend
ing and prospective legislation. me!
are also talking politics here perhaps
more than anywhere eise' anu ~
dering what effect the Impending
presidential campaign Will haNe VIZ
the general situation.
America and Europe.
The problem. so far as America is
concerned, resolves itself into saus-
fying Europe's immediate needs ror raw
materials, machinery and credit-aDoHe
all for credit 1t is now definitely
established that the United states gov
ernment is no longer going to play Ihe
part of Santa Claus to the stricken Eu-
mas stockings with loans, except so Tar
ss may be needed to meet their emer-
gency food requirements
The almost universal feeling here is
that it is up to private agencies, par
ticularly the exporters themselves, TO
handle the situation. They are the
people whose plants must be run. whose
goods must be sold and whose bills and
dividends must alike be paid. They are
the ones who must be brought to
realization of the gravity OF this PROP
lem. must go out and seek markets
abroad, must reduce prices at home and
abroad to a reasonable level, and ere
ate, or cooperate in creating. means
of financing export business"
The Edge bill, recently passed by
both Hoses of Congress and signsd
by the President, gives them precisely
that opportunity.
Exports and Credits.
Export business. however,. is. even
under the most favorable Conditions,
not expected to continue its present
swollen course. Two reasons are ad-
vanced for this by officials here. Our
enormous export balance must be
curtailed. because the present expan-
sion of credit cannot continue. and
when Europe's demands are satisfied
a falling off is bound to ensue.
Washington regards this problem
of credits as two-fold-to provide
credits for Europe and to regulate
credits at home The latter is the
function more especially of the Fed
eral Reserve Board. With the Treas
ury out of the market. and the neces-
sity for low and discriminatory rates
in order to float the huge govern
Inent loans no longer a factor. the
board plans TO exercise this function
with greater effectiveness during the
coming year than it has been able
to do during the past year. at least
until recently.