Evening star., 1920-02-22
BY SHELDON 8. CLINE.

y EcENT accumulation of facts
~ and circumstances apparent
ly affords substantial basis
for belief that the long
looked-for and eagerly-hoped-for turn
in the upward trend Of living costs
is at hand or. at most. lies just around
the corner.
AZ month after month went by. fol-
lowing the signing of the armistice,
with the cost of living getting higher
and ever higher. there grew up a
great national fear that the thing
never could be stopped without a dis
astrous industrial and financial panic.
sure to bring widespread suffering
and distress and calculated to make
the condition of the average man
worse instead of better.
ssigns Not Those Of Panic.
But fear that an Industrial and
financial panic would be required to
cure the high-price evil may now
largely be dismissed. The signs that
point to a lower trend in prices are
not the signs of panic. but Of orderly
adjustment cannot be achieved. OF
course. without individual hardships,
and il is probable. even. that there
will be group hardships. But it will
not be a national disaster. The great
body of the people will benefit imme-
diately. and ultimately all will be
benefited
Foremost among the causes making
for lower prices in this country is
Europe's curtaiiment of imports.
When the armistice was signed
Europe found her stocks of goods
of all kinds SO depleted that there
was hardly a necessity Of life or
Industry of which she did not have
pressing need 1t was mainly to the
United States that Europe looked to
supply these pressing needs. for in this
country only was she able to arrange
the necessary credits. From the time
of the signing Of the armistice to the
beginning Of the present year this
government. in one way OF another.
lent financial assistance to the ma
tions Of Europe to the extent of more
than four and a quartefxbillion dol
lars. more than $2.so9004D0o Of which
consisted of direct advances from the
United States Treasury. Z
Bia Againat Each OtAer.
with this enormous credit availa-
bic, the European nations went into
the American markets and bid
against each. other spd Ag3inst do
mestie consumption forI Sneds cf all
descriptions Tho result net only was
q continued inhation of prices. but
In many lines there was serious de-
pletion Of the Supplies fiseded for
home requiremefts.
This period OF abnormal and even
reckless buying. for Europe now has
come approximately TO m end. It
10 ending for two reasons, The first
IL that Europe's most pressing needs
have about been supplied and the
European peoples are coming to
realize that they must begin pro-
duction on their own account. The
second is that the day Of easy and
almost unlimited credit has gone by.
Europe must finance future imports
on a sound commercial basis. and
this means that she will buy with
discrimination and with more regard
to the relation Of prices to values.
European importers from now on
will be looking for bargains. instead
of merely for goods. with price a Sec
ondary consideration.
Character - De Changed.
Not only will the future volume of
Europe's imports be reduced. but
there will be q change in their char
acter which will tend to ease condi-
tions for the consumer in this coun-
try. She will require a smaller pro-
portion Of foodstuffs and articles