The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-12-03
No One-CIaSS Aid to
Be Extended By the
Federal Reserve Bdnk.
BY DAVID LAWRENCE
Copyright by The IntelligenceD


Washington, Dec. 2.--The heart OF tho
government is warm but the hand on
the government purse iS cold. Unless
some plan is evolved that hslps OUT
every claSS--ConSumcrS rs well as pro-
duccrs. manufacturers as well as taEin-
ers, VIII, IeSalerS and retailers. importers
and exporters. there VIII D. no extension
OF aid 10 the asriculturists or any other
single group. And thus Jar NOBODY IN
the government has neaIu "t any bp;HE p;an
OF a solution. il will be given carefui
consideration by the cabinet.
II may be PAINFUL news and unwe!-
Come ttdirSs, bur the clamor OF the sen
atorS and representatives from tarrl
states for relief 20 thr farmer VIII Set
nowhere in the executive branch or the
government. To the suggestions that
the war finance board b. revived OF 10
the proposals that exporting corpora
tions be loaned money 1" nnance eN-
ports. most government officials MAKE
this answer:
TIA Answer
FIRST, the present laws permit the eN-
tension for credits only when II Is I'M
possible for them To De financed in any
other way. And the government asks
how It happens that the exports OF inc
United States according to onic!al
figures are running higher than they
ever have before in Amertcan history.
higher even than during the war. name
~ in the netEhoorhood OF esht oIuonS
OF dollars for 1920. and are increasing;
Last year the exports were seven and
uine-cenths billions and in 1918 they
were six billions as compared with pre-
war figure OF two and threc-tenths olt-
lions. Certainly tho government :sn
lnaning any money to finance exports.
Where are the exporters getting the
money?
Loans Expanded
Second. how il It that after all the
hue and cry about tight money market
and contraction OF credit and restric-
tiors BY the Federal Reserve bcard that
the hanks Of the United States have
actually expanded their credit facilities
in recent months: IL is true that loans
tor speculative purposes have been
trowned upon but the figures 70 which
officials point show that the accomoda-
tons OF all our banks whereby industry
and commerce Is financed have been IN
creased by between three and four bill
lions Of dollars.
Export Trade
Third, export trade which ia beinS
financed privately at present has shown
phenominal increases in particular com
moditieS over prc-wa: conditions For
instance, where breadstuffs were export
I'D to the amout Of only Sl65,o00.O00 and
cotton S6l0.O00.000 in 1914 and meats
and dairy products $146. 5000 In the
same year. making total Agricultural
export OF something over billion dol
and three tenthS 6illtns. the situation In
1919 was radically different. Bread
s;ufrs alone have mounted to $s20,000.-
900 out OF which wheat Is $S57.OO0.O0O:
Cotton has reached the record total OF
one and one-tenth billions, while meat
and dairy products nave also passed the
billion mark. making the total agricul-
tural exports something like four billion
cut Of 4 grand export total Of seven and
nInc-,cnthS billions The statistics for
1920 show that all these commodities
are running about the Sauc.
European crsdtt
So officials naturally wonder why they
are asked TO provide ruet. Is there any
"Crtainty, they inquiry, that Europe can
lake any more OF our exports: Further
more the imports Of goods bought, by
Europe show that We give Europe about
four billion dollars less than We receive
As long as the difference between the
imports and exports stays at the tre-
mepdouS total Of four billions the bal
Ancc OF trade IN our favor. II - reason
I'd, will keep tho ratio OF exchange very
iOw and European credit corresponding
~ in bad shape. Incidentally, without
any suggestion Of partIsanShlp, some Of
details ask frankly how tariff wall
arectcd by the Republican adminstra-
ton will help tho situation. They ask
how the difference between exports and
IMPORTS could hc reduced II It is pro-
posed 70 keep European goods out OF
American markets.
This fnuch Is certain, no tariff bill
hat is Intended by the Republicans to
ralSC -FOUR billions or revenue Will De ap-
nroved by the Democratic adminiStra-
lion. for there seems to be Il determna
lion 10 stick to the present fiscal policy
md leave II to the Republicans TO take
The responsibility Of reducing imports
md engaging in a tariff war with
Europe. Such views are being expressed
not by tho frCe-tradcrs but by the
vowed prutectionists in III" government
men who have been responsible for such
protective duties as have been imposed
md who have fought at every turn the
,dea OF fre., trade. They may y" called
moderate protectionistS. II is admitted
hat protection for certain commodities
viii probably be decided upon by the
Republicans. but the belief exists that
he day OF a general tariff revision at
tccting all classes of goods in the same
way that tariff measures Of yore were
made has passed and gone.
Conditions Studied
Tho government Is Stcadying the eco
n"n!C situation 70 the exclusion almost
- other considerations. The pleas for
relief are pltiful. but so long as the
ROVER rests with the present admins
ration. II will not authorize loans to
farm organizations or individuals with
nut the authority to do the same for
persons engaged in other forms Of work
something that ~ so admittedly diff
"ult as - be regarded as impossible
Maybe the new administration viii think
differently about II but the outgoin z
theories wonder just how any all-em-
bracing relief plan could be effective and
1t the some time keep the governments =
llready strained finances intact.
IgIsI nLS nnI