The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-12-03
BY DAVID LAWRENCE.
Especial Despatch to The Reformer.)
Copyright 1920.

Copyright 1920.
WASHINGTON, Dec. 3.-The heart
of the government is warm, but the hand
ON the government purse is cold. Unless
some plan is evolved that helps out every
class-consumers as we'll as producers, |
manufacturers as well as farmers, whole |
salers and retailers, importers and export
ers-there will be no extension of aid to
the agricultmrists or any other single
group. And thus far nobody in the gov
eminent has heard of any plan so all
embracing. Should anyone think OF a
solution it would be given careful eonsid-
Grafton by the cabinet.
1t NAV be painful news and unwelcome
tidings, but the camor of the senators and
representatives from farm states for re-
lief to the farmer win get nowhere IN the
executive branch of the government. To
the suggestions that the war finance board
be revived or to the proposals that eX-
Dorting corporations be loaned money 10
finance exports, most government officials
make this answer
First, the present laws permit the eX-
p tension of credits for exports only when
II Is iupossible for them to be financed in
any other way. And the government asks
how it happens that the exports OF the
United States, according to official tg-
ures. are running higher than they ever
have before in American history, higher
even than during the war. namely IN the
neighborhood of eight billions of dollars
for 1920, and are increasing. Last year
the exports were seven and ninP-tenths
billions and in 1913 they were six billions
as compared with a pre-war figure OF
two and three-tenths billions. Certainly
the government is not lOaning any money
to finance exports. Where are the export |
ers getting the money?
Second. how is it that after all the hue
and cry about a tight money market and !
contraction of credit and restrictions by |
the federal reserve board that the banks |
of the United States have actually ex |
banded their credit facilities in recent |
months? 1t is true that loans for specula- |
tive purposes have been successfully |
fr6wrled upon. but the figures to which |
officials point show that the accOmmOda- |
tions of all our banks whereby industry |
and commerce are financed have been in
creased by between three and four billions
of dollars.
Third, American export trade. which
is being financed privately a present,
has shown phenomenal increases in par
ticular commodities over pre-war condi-
tions. For instance, where bTeadstuffs
were exported to the amount of only
$165, 100000 and cotton S610,0O0.000 in
1914 and meats and dairy products S146,
100000 in the same year, making total
agricultural export of something over a
billion dollars out of the grand export
total of two and three-tenths billions. the
situation in 1919 was radically different.
Breadstuffs alone have mounted to 1920
100000, out of which wheat is S357,-
100000. Cotton has reached the record
total of one and One-tenth billions. while
meat and dairy products have also passed
the billion mark, making the total agri-
cultural exports something like four bill
lion out of a grand export total of seven
and nine-tenths billions. The statistics
for 1920 show that all these commodities
are running about the same
So officials naturally wonder why they
are asked to provide relief. Is there any
certainty, they inquire, that Europe can
take any more of our exports? Further
more; the imports of goods bought by
America and all other payments made to
Europe show that we give Europe about
four billion dollars less than we receive.
As long as the difference between imports
and exports stays at the tremendous
total of four billions the balance of trade
in our favor, it is reasoned, viii keep the
rates of exchange very low and European
credit cGrrespOndingly in bad shape. In
-eideHtaHF, without any suggestion of par
tisanShip, some officials ask frankly how
ministration VIII help the situation. They
ask how the difference between exports
and imports can be reduced if it is pro-
posed to keep European goods out of
American markets.
This much is certain: No tariff bill
that is intended by the Republicans to
raise four billions of revenue Will be an
proved by the Democratic administration. II
for there seems to be a determination to l.
stick to the present fiscal policy and leave I
II to the Republicans to take the response
blllty of reducing imports and engaging
In tariff war with Europe Such views
are being expressed not by the free trad Il
ers, but by the ayowed protectionists in |
the government men who have been re
sponsible for such protective duties as
have been imposed and who have fought
at every turn the idea of free trade They II
may be called moderate protectionists.
II Is admitted that protection for GER
tain commodities will probably be decided
upon by the Republicans, but the belief
eHlsts that ina the day OF a general tariff re
vision affecting all classes of goods in the
same way that tariff measures of yore
were made has passed and gone
The government, is -studying- the eco
nomlc situation to the exclusion almost
of other considerations. The pleas for
relief are pitiful, but so long as the power
rests with the present administration it
will not authorize loans to farm organiza-
lions or individuals without the authority
to do the same for persons engaged in
-OtheF feFms-6f Tr0Pk-some thing that-iS |
so admittedly difficult as to be regarded
as impossible, Maybe the new admins
tration win think differently about it, but
the outgoing officials, even in burying
their political theories wonder just how
any all-embracing relief plan could be
effective and at the same time keep the
government already strained finances in-I
tact.