Evening star., 1920-12-02
FARMERS DEMAND
FORU.S. FINANCING
WILL Be REJECTED
Any Federal Action Must Be
for Benefit of All and Not
Single Class.
GOVERNMENT OFFICIALS
HAVE TAKEN FIRM STAND
Present Volume of Exports Cited
as Administration Studies
Economic Situation.
BY DAVID LAwRENcE.
BY DAVID LAwRENCE.

Economic Situation.
BY DAVID LAwRENcE.
The heart of the government is
warm, but the hand on the govern
ment purse is cold.
Unless some plan is evolved that
helps out every class-consumers as
well as producers. manufacturers as
well as farmers, wholesalers and re-
tailers. importers and exporters. there
will be no extension of aid to the agri-
culturists or any other single group
Thus far, nobody in the government
has heard of any plan so all-embrac-
ing. Should any one think of solu-
ton, 1T will receive careful consid-
GRAFTON by the cabinet
1t may be painful news and un-
welcome tidings, but the clamor of
the senators and representatives from
farm states for relief to the farmer
viii get nowhere in the executive
branch of the government.
Answer to Suggestions.
To the suggestions that the War
Finance Board be revived or to the
proposals that exporting corporations
be loaned money to finance exports,
huoSt government OUlcIdIS make
answer:
First, the present laws permit the
extension of credits for exports only
when 1T is impossible 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 figures, are rum
ming higher than they ever have be-
fore in American history, higher even
than during the war, namely, in the
neighborhood of eight billions of dol
lars for 1920. and are increasing Last
year the exports were seven and
nine-tenth billions, and in 1918 they
were six billions, as compared with
pre-war figure of two and three
tenths billions. Certainly the gov
srnment isn't loaning any money to
finance exports. Where are the ex-
porters getting the money?
Credit Facilities Expanded.
Secondly, how it is that after all
the hue and cry about tight money
market and contraction of credit and
restrictions by the federal reserve
board, the banks of the United States
have actually expanded their credit
iacftitiss in recent months? 1t is
true that loans for speculative pur-
I'cses have been successfully frowned
upon. but the figures to which off,
cials point show that the accom-
lnodatiOns of all our banks whereby
INDUSTRY and commerce is financed
nave been increased by three to four
billions of dollars -
Third, American export trade. which
Is being financed privately at pres
ent, has shown phenomenal increases
In particular commodities over pre-
war conditions. For instance. where
preadstuns We're exported to the
amount of only 1850 900, and cot
ton to $4,000, 000 in 1914. and meats
and dairy products SAG, 200, 900 in the
same year. making a total agricul-
turai export of something over
billion dollars out of the grand en-
port 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 1851, ,0e0, ,000. 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
agricultural exports something like
four billions out of a grand export
lions. The statistics for 1920 show
that all these commodities are run
ming about the same.
Balance of Trade.
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
the difference between imports and
exports stays at the treme ndous total
of four billions, the balance of trade
in our favor, 1t is reasoned, viii keep
the rates of exchange very low and,
European credit correspondingly in
bad shape.
Incidentally, without any suggestion of
partisanship some officials ask frankly
how a tariff wall erected by the repub-
lican administration will help the situa-
ton. They ask how the difference be-
tween exports and imports can be re-
tiuced. il it is proposed to keep Euro
pean goods out of American markets.
This much is certain: no tariff bill
shat is intended by the republicans to
raise four billions of revenue will be
approved by the democratic adn1inistra-
ton, for there seems to be a determina-
ton to stick to the present fiscal policy
end leave il to the republicans to take
the responsibility of reducing imports
and engaging in a tariff war with Eu-
rope.
Such views are being expressed. not
by the freetraders. but by the avowed
protectionists in the government men
who have been responsible for such pro-
tcctive duties as have been imposed and
who have fought at every turn the idea
of free trade. They may be called
moderate protectIonists.
Passing Of Old Method.
it is admitted that protection for
Will probably he
decided upon by the republicans but
the belief exists in many quarters
that the day of 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
economic 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 organizations
or individuals without the authority
10 do the same for persons engaged
in other forms of work. something
that is SO admittedly difficult as 10
be regarded as impossible
Maybe the new administration will
think differently about it. but the
outgoing officials, even in buryinr
their political theories, wonder iust
how any all-embracing relief plan
could be effective and at the same
time keep the governments already
strained finances intact.