The Washington herald., 1920-10-23
BY WARREN G. HARDING.

AT no stage in its history has
human society been SO well organ
lied to maintain itself and care for
its units. human and social, under
a terrific strain, as in this epoch.
1T is only a short year ago since
We were being told that unless the
world gets back to the serious busi-
ness of production and saving.
everything is going to the bow
vows.
We'll. in that short year the
world has very largely got back to
production and saving. The do
mestic production and foreign trade
Of Great Britain, France. ItaIy.
Germany and our own country all
prove this.
THE war added hugely to the
wealth and also TO the debt of our
country. At the end we were still
far better postured than any other
great state, and our Recovery ought
to have been at a pace far out
stripping theirs.
The fact that in the months of
July and August, 1920, our national
expenditures exceeded the national
receipts by s125,OO0,000 is the con-
elusive testimony of an ineptness
and incapaCity for administration
that, had it been paralleled in coun
tries less fortunately situated than
our own, would have meant the
bankruptcy of their civilization.
Increasing Deficit.
We are starting on the new fs-
car year with deficit accumulats
ing at such a rate that, IL contin-
ued, will add $3.50. 100000 to our
national debt this year.
American governmental business
in the period since we entered the
war has been. think we may fairly
say. the worst managed govern
mental business outside Russia, Ger
many and Austria Hungary.
The Democratic nominee. who is
pledged to pursue the policies of the
present administration, has been GO
ing up and down the land promis-
ing reduction of taxation. How
does he propose to reduce taxes at
time when the government debt,
already above $4,000, 100000, is in
Creasing at a rate not far from
S1,00O,O00.00O year? The Demo-
cratic administration is leaving un-
done the things that are possible
and promising to do the things that
are utterly Impossible.
Fostering of Industries.
The war taught us how impor-
tant it is to foster certain indus
tries that are essential to the ma
tion. Inevitably, as other countries
face the necessity of exporting more
than they import to restore their
trade balance, they will endeavor to
undersell us in our own markets
and it will be necessary for us to
return to the Republican policy of
protection, wisely adjusted. to meet
these particular conditions.
we must encourage agriculture.
because that is the basis of all in
dustrial life. The number of farms
in America is not increasing fast
enough to keep the country on a
self sustaining basis. Therefore, we
have need through reclamation and
development to increase the rate at
which we are opening new farms.
Our nation must continue a large
importer and in order that the bal
ance of trade shall not be dis
astrously against us we must seek
to export to new foreign markets.
To that end there must be new
commercial treaties and interna-
tional trade agreements.
Instead of suspicion and hostility
which in recent years have marked
the relations between autocratic gov
ernment and business, we must in
troduce a spirit of mutual interest.
of understanding, and of Willingness
to cooperate.
ut is true. of course, that special
favors to particular businesses are
always to be avoided; but it is
equally true that special antagonism
CONTINUED ON PAGE FOUR.