The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-01-16
TAKING STOCK

TTudenl MERCHANTS always take IHt enough u OF W0H
business to take stock, to see what they have on hand in the way
Of assets, to see what their liabilities are, so that they may pro-
coed intelligently and with a clear understanding OF what they
arc doing. Nations should do the same thing. This has been
done for the nations by a leading New York banking institution,
and its findings overturn a good many prophecies. Prophecies
arc seldom dependable. Wise politicians are in the habit OF
riding over a section Of the country before every general election
and on their return telling oracuarly just how the people are
going to vote. If the guess is wrong the prophet and the prophecy
are forgotten. Before the war ended prophets told us that as
soon as peace arrived wages would go down, production would
slacken and a period Of depression would follow. This has
not been true. The worlds business in 1919 amounted to
$0OO0.OO0OO, and of this the United States did eleven billions,
which was four billions more than the year 1914. The predicted
tall of prices did not come, and does not appear to be anywhere
IN sight. The prophets were wrong again.
The war was enormously wasteful and has lett the world not
exactly bankrupt but much in debt. Even the strongest nations
ate crippled. England has no money to pay the interest now due
on the money we lent her, and with England making default we
need not look to any other debtor country tor any princpal or
interest on what they owe us. Uncle Sam was trimmed good
and proper.
For four and a half years the world consumed and destroyed
more than il produced. 1t has been estimated that the direct loss
caused by the war was $lS600Oo00O, and the indirect loss by
stoppage Of production was $15~l,O0OO,Ooo, totaling $3"!Wo-
100000. As a result the leading nations are staggering unoer a
load Of national debt. The national debt OF Great Britain Is -
y crn az her national wealth-nearly one-haf. She is not pro-
ducing wealth and her money, if she has any, is below par. Russia
national debt is 65 per cent OF her national wealth. inc NUS,
sa IS one OF the richest nations on the globe. Inc national
debt az France is IS per cent of her national wealth, and Italy
owes so per cent Of her national wealth. Austria Hungary owes
90 per cent of her national wealth and Germany 81 per cent In In
this category the United States occupies an envlanle poSiuon WIN
4 national debt amounting to only 10 per cent OF her natonai
wealth, and this is being reduced because America is producing
and exporting wealth. The balance of trade in our favor mounts
up into the billions annually, which is encouraging IT we can &c.
na;d for our goods. When a nation like England makes deiau'
we have a right to become suspicious OF other creditors less aole
TO nav. 1t would be poor business for US to keep on producing
and exporting to customers who cannot pay.
And they cannot. They frankly tell us So and also tat
Unless we furnish them more money and more raw material tney
can never paw. The world is in a bad Tx financially. America
r.n produce finished wealth, food and clothing, while Europe can
orly enhance the value of raw material by manufacturing 1t and
converting it into the finished product. Europe mas laooF dnu
machinery but no raw material and no food nor money 10 pay
l.hor These things we are called upon to furnish, ana II IS gong
~ be a heart-breaking task. We will fail IN 1t II we az NOT con,
serve our forces and stop wasting. Last year LABOR uouoes 10 70.
Iabor 100000 and cost capital $l2OOOOW, while they cost 'e
country in decreased production 100000. This is bad business
ssneciaIIv at a time when the world is depending on produGuo"
u s.v society from destruction. 1t is wise and well ir III III Nc,
t;ore m nause and take stock and see where they s1a,u' e
ssanle of this most favored OF countries should realize una inc!
~ IN cents on every dollar of their national wealth "nen we
5dd this to debts owing by states, cities, counties' CoFPoldtons
"a ;,d;v;duals. it NAV be found that the whole world 5 mSoNe"
that it owes more than 1t owns
THE onlv salvation lies in the production OF wealth ana ever!
rerov should be exercised to the fullest extent IN producing no"
ne soil. from the mine, from the mill and factory, IRON 'e iar"
the Garden and the truck patch, from the tlocks ana heroS an nj,
iror every source where wealth may be obtained Inc ora
no.rdate an the sweat Of thy face thou shalt earn my Oteau
i confronting the world as never before, and ooth indNloud'S a'
nst;ons should realize it and go to work with a WILL