The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1920-01-26
WE MUST PRODUCE
MORE OR CONSUME
LESS TO PROSPER

Washington, Jan. 23.-Amerlcan
capital will be employed in aiding
Europe to "get back to productive
work." not because of "attractive
rates of interest,"" but to restore nor
NAL conditions and to open markets
sor American export, Governor W. P.
G. Harding, of the federal reserve
board, said today, speaking before
the second Pan-American financial
congress.
eve cannot, however. export things
which we do not have" Governor
Harding said, "and in order to pro-
vide an exportable surplus we must
produce more, or, failing that, con-
sumo less. During the past year we
have witnessed an unprecedented era
of extravaganza in this country; there
has been a continuous rise in prices,
and while the value of our products
expressed in dollars has been greater
than ever before in history, the ply
sical volume Of goods produced was
less than the production of any year
, since 1916. Our domestic demand
has been competing with export de-
mands and the result has been that
prices have been bid upon both by the
foreign and domestic consumers.
"Our people must be aroused to
consciousness that we have been liv-
ing since the close of the war in a
fools paradise and that more; work,
economy and liberal investment in
foreign securities are necessary if we
Gre to make our present apparent
prosperity real and permanent. 1t is
important that the world should get
back to work, and in order to provide
, steady employment for the people of
our own country, even, it is necessary
that there should be sustained de-
cl@2d for products and in order to
maintain. this steady demand, it is ne
ccssary to supply markets abroad
from our surplus production"
American bankers were studying
the situation from a new angle to-
ward world finance he said, and un-
dertaking engagements they would
not have embarked on few years
! ego. American manufacturers were
extending long credits, he added, but
could not do so indefinitely with un-
q pressure on the credit with Am
erican banks and to assure this es-
sential long credit to European buy
! 2c&, "arpeal must be made to Ameri-
can investors"
Governor Harding called attention
20 the new Edge act" providing ma
kchinery for financing these undertak-
iEgs, which, he said, gave exporters,
! producers, manufacturers and Amer
! lean investors the means of co-opera-
'.ion to solve the problem before
! them.
"The basis of world commerce is
an exchange of goods" Governor
Harding said, pointing out that Am
i orican loans must be on terms to per-
NIT the borrowers to repay in pro-
! ducts.
European nations can produce
many things which we either do not
produce at all or cannot produce as
cheaply as they can," he continued,
or it may be they can produce things
needed in South American countries
or in the far east. As American i'm
oorters haye constant dealings with
South American and oriental coun-
5ries, it follows that European cred
its available in China and Japan,
Argentina, Chile, Brazil and other
Latin American nations will be just
as effective in liquidating European
obligations in the United States as
. !irect European credits in New York
would be-"