The Barre daily times. (Barre, Vt.) 1897-1959, 1920-01-22
pRoDtcTIoN AND DEFLATIoN
Are the Agencies Needed to Help the
United States.

OH+tCu DtatN'f
The two developments affecting in
ternational trade and finance the past
week had no direct connection. The
partial lifting Of the blockade OF soviet
Russia was not known when the mem
erandum looking toward the financial
relief OF Europe signed by a distn-
gllished group of international imam
ciers, economists and public men, was
published. This memorandum, coming
from countries presumed to have lend
ing capacity and addressed TO countries
presumed to require credits for their
rehabilitation, stated forcibly the prin-
ciples on which help could be give,.,
and suggested that an international
conference on the acute problem Of the
worlds economic revival be held IN
March, preferably at The Hague
The tone Of the memorandum was
excellent. One Of its chief merits was
readiness to face the facts. II declared
that nations which wish to borrow on
long credit from the lending markets
must first show their purpose OF helping
themselves, by raising the maximum
possible in revenue from taxes, and by
avoiding recourse to further paper
money expansion as a means Of paying
public expenses. The requisite money
for the loans must be raised from pri-
vate investors; and to attract such
funds. the terms of the loans must be
inviting, the security the best obtain
able, including, when unavoidable, the
assignment Of export and import du-
ties, and the loans must rank above all
other indebtedness, not excepting IN
IDENTITIES mo country, however, IS
deserving OF credit, nor can it be con-
sidered solvent debtor, whose obliga
lions we may treat as items of actual
value in formulating plans, that viii
not or cannot bring current expenditure
within receipts from taxation and other
regular income. This principle must be
clearly brought home to peoples OF all
countries; it will be impossible other
wise to arouse them from dream OF
false hopes and illusions to recognition
OF hard facts"
At the same time, there is frank
recognition OF one of the most discour-
aging factors of the situation abroad
THE outlook at present Is dark. No
greater task is before US now than to
devise means by which some measure
Of hopefulness will enter the minds OF
the masses. establishment OF
willingness to work and save. Of ineen-
tives to highest individual effort and
opportunities for everyone to ENJOY
reasonable share OF the fruit of his ex-
ertions must be the aim toward which
the best minds in all countries should
cooperate Only ii we recognize that
the time has come when all countries
must help one another, can we hope to
bring about an atmosphere in which We
can look forward TO restoration of nor
NAL conditions and the end Of our pres
ent evils.
While this applies particularly to
Europe. where years of terrible misfor-
tune have probably deprived millions OF
the incentive to work and save, il also
has some application to America This
is thrift week As one commentator
puts 1t, there should be this year %
thrift weeks" instead of enc,
BY the partial opening of soviet Rus.
sia to trade an important step forward
Is taken. although the earlier economic
results will probably be Disappointing
owing to the worthlessness Of the ruble
in exchange, the comparatively low pro
duction of the territory which the Lee
nine government controls and the APP
parent hopelessness OF any immediate
extension of credits TO Russian pur-
chasers. Already the great difficulty
encountered by the western and central
European countries in securing private
credits in America has seriously retard-
ed European revival; but OF all coun-
tries abroad Russia is the worst oil Tor
credit in the international money marts,
In fact, Russia has no credit whatever
Trade promises to be IN the torn OF
barter for some time To come, for the
supply of gold in the former Russian
empire must be very small. Russians
will be able TO import to any extent
only as against stores OF grain or OIL OF
hides and skins of which Mere may be
something of an accumulation for ex-
port. Even this, however, will be bene-
fetal TO the world outside Russia. II
the last barrier of military front
can be broken down by international
commerce. production will increase and
the world will have more of goods with
a substantial value TO live on IN place
of the fictitious wealth created by m
hation.
Our own immediate problem il seen
more and more clearly to be the della
ton Of values. Prices of commodities
continue to rise. there being again last
week in the commodity market four
times more price increases than recess.
sions. Prices are rising in England, as
thew are here. Print cloth last week
reached % cents at Fall River. The
ecuntry's money in circulation increased
last month by over S30,O00O00. Retail
aud wholesale trade has become excep-
tionally active for so soon after New
Years. Few buyers are disposed to
wait for lower prices. Supplies cannot
be brought forward fast enough to ere
ate surplus Everywhere eNtrava-
gancc is reported among people with
any money. In the West heavy com
r,itments in land purchases at very
high prices are so common that apprc.
hension grows as To the consequences
of the defation process sure to come.
The situation is seen III its true rela
lions by most economists and imam
ciers. and a few of them arc beginning
TO speak plainly The imitation = so
enormous and SO intricate in its bear
ings, however. that the problem eli con-
Portable economic reconstruction may
prove as impossible a. the problem Of
political reconstruction proved to Inc
peace negotiators al Versailles. fhe
measures thus far taken by our federal
reserve, board in raising reserve bank
rates on government securities have IN
doubtedly had an effect n shaking
down" the stock market IN the u
stock trading days thus far this yea
....I 49, 10 la.--ll-an