The Birmingham age-herald., 1920-11-12
THREE OR FOUR BILLIONS

THREE OR FOUR BILLIONS A recent estimate made by the Chase
 National bank, presumably with the
 approveL even assistance, of A. Bar
 ton Hepburn, fixes the amount of pri-
 Nate loans on credits now outstanding
 in connection with the foreign trade of
 the United States considerably over $3 OOO 000,0 ,0O0 John McHugh, who is
 vice president of one of the larger New
 York banks and who perfected the plan
 for a foreign trade financing corpo 'a-
 tion, fixes the amount of loans and
 credits of this kind at about $4,000, 000 coo. Whether the amounts be $3,000,-
 6O0 900 or $4,000, 900, 900, it is so large
 that it cannot reasonably be increased i ry the methods which are now in use. The foreign trade can be chiefly added through longtime credits handled by
 ar investment corporation.
 Until these estimates were made few persons realize the enormity of the pri- vate indebtedness to the United states
 which has been created by our foreign
 trade This is consideration which
 will probably receive earnest attention by the informal commission which Representative Fess, who is chairman iof the national republican congression- al committee, asserts will be speedily organized to prepare a report dpon which Congress may act when it is
 considering revision.
 For the rapid increase in imports is likely to be continued until at 'ast
 there may be danger these forei yn-
 made commodities will seriously im- pair our domestic markets. Some lave said that full encouragement should be given to imports, because only in that way can Europe and some other na- IiOniAata tbair iDdp an fN the United States. But that indebted - ness cannot be liquidaated in this way until there comes great shift in the relation of our exports to our imports and this may take some years, to re- port when a tariff bill will start rom the basis of the need of securing larger customs that our tax laws can be re- vised and also the need of the protec- ton of American industry and the em- ployment of American labor at the American scale of wages. Mir. re ss goes on to say that the seductive ai gu- ment that European imports must Tot be impeded because it is needed in that way for Europe to find the means by which her debt to the United Staies can be liquidated, should not lead to disruption of American business encsr- prises
 One factor in the revision of our | tariff law of which MT. Fess has
 knowledge, but Of which he does not speak, was a factor which did not exist
 when the present tariff was en1cred.
 At that time all or nearly all of ihe representatives from the southern
 states favored the low tariff bill hich was enacted into law. Now it IS cer- i tain that many of the represents tives
 from the south will give cordial sup 1 pert to any revenue bill which provides
 adequate protection, especially for the l products of the south. These repre- 1 sentatives will follow the leadership | of Governor Parker of Louisiana and
 of President Kirby of Austin, Texas,
 who were of influence in organizing
 recently the southern league for se-
 curing from Congress adequate TO- tection. especially for southern ind1s-
 tries and products.