Norwich bulletin., 1920-02-28
AGRICULTURE ON BASIC INDUSTRY

depends however, up the receipt of coinpensation by those whose capital and labor are used. Ordinarily they would So compensated by the inpor- tation Of things from Europe is either unable to produce these things at ali, or her production is so out of pro. portion to the things which she ob- tains from us as to leave huge bal ance for which compensation must be made in gold.
 Extraordinary Balance.
 'This balance has now become so large as to upset completely the CT dinary bases upon winch eX0langes are made with the result that tile American dollar is at a premium ill Great Britain, France, Belsl lam, Italy, and other countries which equire ald. In other words, the prices. those coun- tries have to pay for American conn rooditles are increased by the amount CT the premium, a circumstance which tends to increase the size of the pal anee and, therefore, the prea1ian on the dollar It also tends to reduce the amount of purchases made ill this country by Europe and, accordingly to delay the resumption of business there.
 If those countries had gold to off, set America s ba lance of goods the
 
 but we sholp4d be flooded with gold, Of 1 which We nave n-9ce than enough now for carrying on the buslness of the country. urther additions to our stock of gold would tend to raise prices and bring la the-r train the evils attendant upon imitation. '"Eo rectiiy thIs situation America must provide credits here for Europe. ! practice tnIs means that we must cake E.uropes prom -ses to pay and sell them to Americans who have i money to invest.
 These promises to pay would be either in the form of securities issued i by European governments. national or municipal, or by European corpora | tions 70 be sold directly to American investors or tiey would be in the form ! of new securities issued by American i corporations which held the original : European securities as collateral The proceeds would be used to compensate i American capital and labor for the f goods produced and sent to Europe Thus, Amerlcans with money to in i vest would be assisting Europe to rehalbiiitate herself and at the same time would be keeping the produc tive machinery of their own country go4ng If this is the best way in which we can aid (and such is the opinion of the closest and most competent ob- servers of the problem) the extension of assistance to Europe depends upon : Americas $ capacity to absorb for eign securities quite as much as it does upon her ability to produce the things which Europe needs.
 ''The. extent to which a people car absorb securities depends upon the amount of money they have available for investment and upon the amount Of credit which they command by reason of the lourishing condition oi their economic life and the prospects of it's greater development. How haurishimg the general condition is may be inferred from the condition o1 the great basic industries-agricul tGre, min 'ng, manufacturing ana ansportation-and of these agricuI- ture is fundamentally important.
 By this industry the primary nee6 of man is served and therefore the state of all other rises or falls with it A large percentage of the cost O. hor, and 40 per cent. of the wages O. production in every industry is for Ia Ebor is expended for food. Therefore any change in the condition of thu farming industry is immediately re. fected in every other industry. Il every country it is barometer O prosperity"