The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1920-02-11

THE OPINION OF OTHERS.
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FINANCIAL TIMIDITY.

we have too many goods for our own use, and that
foreign buyers have too little money to relieve US
of them The alternatives are that we should con-
sumo more than is good for us, that foreign buy
ers should go without what they ought to have to
keep themselves in health. The crisis in the ex-
changes of currencies is different from the ind
gestion of securities which troubled few years
ago. Our goods are digestible enough, just
securities were, and only little time was necessary
to show their solid worth. An indigestion of goods
l. more serious, for it threatens economic and
industrial crisis. We are already consuming above
a normal amount of everything. Our extravagant
Indulgence has already occasioned remark. When
our friendly competitors in the worlds markets
Tightening their belts and increasing their eff
cency we are making future troubles for ourselves
by unduly reducing our productive capacity and
increasing consumption. If there were a me-
thod of selling all that have in of normal
wants. and of producing what the world is suffer-
ing fpr, that would be like walking downstairs in
stead of jumping off the roof. That is the differ
ence between defation in economic manneE and
reaching the same result by construction of credit
to sound borrowers who will devote the funds to
taking the weight of excess goods off our market.
ConSluer Cae feducClon OIL Cne cfeQlC lor export
ing foodstufs by the aid of Government credit.
Even so conservative force in official life
Senator Glass when Secretary of the Treasury ia
vored allowing $3.50, 100000, reduced later by
small fraction in consideration of similar grants
from other sources But Representative Kitchen
c5cc:s for political reasons to allowing even $780,
u00,OO0- What are political considerations worth
when the cable reports that ''the whole of Europe
is being pressed toward starvation and run?" Is
i. in interest that our best customers should be
starved? Can it be possible that it is beneficial to
cur producers of foodstus that their prices should
shrink in the of hogs at Chicago, instead of
icing exported? What will happen ito prices of
farmers products generally when the Grain Corpor-
alton is lquidated, according to the bill Senator
Grohna reported yesterday? The proposal is that
the profit of S5O,O0O,OO0 shall be returned to the
Treasury. Americans should blush to pocket such
profits when there are larger profits in cash and
humanity to be made by using at least those profits
for exporting more foodstuffs. Consider further
that the Edge bill, specially provided for relieving
our banks from the burden of financing EXPORTS
has not yet been of any considerable help. Even
the rules for operating under that bill not yet
ready. Even the action of our Federal Reserve is
not operative as intended. 1t was intended to re-
duce the finance paper in the Reserve banks, and
the idea is good one. But the discounts against
Liberties last week were $1,457, 100000, against
$1,3S60OO,Cc0 week ago and $1,357, 100000
year ago. All other discounts are smaller, while
bank clearings are larger and redscounts are lar
ger The national debt has already been reduced by
S1,000O0O,00O, and that was necessary consider
ing sermon to other Governments. But it is
open to question whether there is unalloyed bene-
fit in that.
The cable provides contrasts by which we may be
able to Judge whether our policy is braver or wiser
than that of those whose conditions are more dis
turbing than Consider the collapse in cot
ton market and bold front put on the situation
by the British COZ. umers of cotton. The bold
British take this time to establish a gold standard
for India, while of Senators on the same
day reopens the Irritation with bimetalism. The
vigor of British banking attests a conviction in
ganking principles which we profess, but hardly
practice England believes that now is the time
to be liberal with the right sort of credit. We hear
nothing about alarm in London over call money
rates. England is selling on credit to the weaker
nations Of Europe the goods which are bought for
cash in dollars, at premium, and is less worried
by the balance of trade against her than we by
too large balance in our favor. There will come
time when England will profit by her boldness just
as now we are paying the penalty of excess of
ton. The world of trade lies at feet, and we
are faint-hearted.-Ne York Times.
The DEPARTMENT of Justice has arrested I'M to