Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1920-03-04
DANGEROUs ECONOMIC PoLICY

DANGEROUS ECONOMIC POLICY
The Republican publicity asso-
citation, through its president, Hon.
Jonathan Bourne, Jr., gave out the
following statement from it's Wash
ington headquarters yesterday.
Some economists argue that
since the United States is now a
creditor nation to the extent of sew
eral billions it will be sound eco
Monies to cooperate with the debt
or nations in restoring an equili-
brium by permitting them to pay
their debts in goods as the best
means of keeping up our exports;
but careful study of the conse-
quences of such a policy will dis
close the dangers certain to be met.
1t is true that we cannot go on in
definitely selling to other nations an
enormous amount of goods in excess
of that which we buy from them in
return. But il is equally true that
American industries cannot suffer a
radical change in our trade relations
without almost disastrous conse-
quences.
although we are producing I con-
siderable surplus which we are ex-
porting to other nations, our indus
tries are working at less than full
capacity. Any considerable falling
OF in American industry would soon
produce large number of unem-
played. The question that con-
fronts the American people-both
employers and employees-is what
shall be done with American labor
IT, III the effort to restore equilibrium
in International trade, American in.
tustries cut down their output and
American consumers buy more large
IL Of commodities produced in for
elgn countries.
During 1919, American exported
gOoos to the value of $4,000, 000. 900
in excess of the value of goods int
ported. II, during 1920. we should
buy more foreign goods and curtail
production of American goods to
such an extent as to eliminate this
favorable balance-that is to say, cut
down American production to the ex-
tent OF $4,000, 900, 900 and buy in
foreign countries to the extent Of an
other $4,000, 900, 900, what is to be-
come of those laborers and capital
lists who have been engaged during
the past year in the production of
that $4,000, 100000 surplus? This
is not an academic question, IL Is en-
tirely practical.
"If America has enjoyed so much
prosperity during the past five years
that 1t can afford to go on an indus
trial vacation and live part OF the
time upon its accumulated resources
then we can face with complacency
the prospect of closing down Of Am
erican mills. But that vacation, IL
taken, will not be vacation of book
keeping only. When we start buy
ing more freely abroad and selling
less extensively a vacation must be
participated in by all men who pro-
duce American raw materials or
manufactured goods. That vacation
will not be taken by professional eco
nomists who make their living by
lecturing in colleges and by writing
books and magazine articles laying
down theoretical principles of eco
monies. Their business will thrive.
But producers, and those engaged in
| transporting and handling goods
will be seriously affected by an in
dustrial vacation.
dustrial activity incident to the war,
the United States may reasonably ex-
pect some reaction, but ii will be
/ the part of wisdom to take every
practical precaution to prevent that
reaction from becoming catastro-
phe. Even though we buy somewhat
| more extensively abroad, we should
guard against that increased buying
becoming an avalanche of foreign
goods dumped upon the American
market. And in thus undertaking
to protect ourselves against an in
undation of importations the only
means approved by time and expert
ence is the imposition of an import
duty which will represent the differ
ence in cost of production here and
abroad. This does not mean a pro-
hibitive tariff, 1t merely means the
imposition of tax which will per-
nit the American producer to contin-
ne operations on an equality with
the foreign producer who pays less
wages and operates longer hours I'M
| der less expensive conditions. We
may permit other nations to pay
| their debts to us in goods we need
and cannot produce, but not in
goods the importation of which
would be reuinous to our own pro-
ducers