Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-03-17
WEDNESDAY,. MARCH IL leo
NOT OUT OF THE WOQDs.


secretary of the treasury, William
G. McAdoo, that no panic came 70
the country while he was at the
head of the treasury department.
was an indirect way of claiming
credit for the abundance Of war
time money and the freedom from
financial disturbances during the
war. But the aspirant for the
presidency who relies upon his
record in this respect oVerlooks
the fact that it was only the war
that saved this nation from serious
and prolonged depression which
was setting in as the result of leg
islation under the Wilson admin
istration. Had it not been for the
sudden need of the world for the
products of this country and the
shutting off of the competition in
home markets through importa-
tions which the WilSon-Under-
wood tariff had started in floods,
there would have been a long pc
Rod of industrial and financial dis
tress here.
If Mr.. McAdoo will look at the
files of newspapers just before the
kaiser had a brainstorm, there will
loom before the man who thinks
that he kept away financial ills,
pictures of the bread lines and of
people sleeping on park benches,
He would probably not call that
condition of panic.
All this was directly following
enactment of the Wilsor-Under-
wood tariff law in october, 1913.
Imports of foreign merchandise
began to increase and exports of
American merchandise began to
decrease with the result that the
balance of trade turned against the
United States at the rate of $685.
100000 a month and was rapidly
increasing. Gold was going out Of
the country at a rapid rate. Am
erican mills were closing. -Four
million men were in the bread lines
or following soup carts in New
York and other large cities. Men
were without places to sleep and
occupied benches in city parks.
The outbreak of the war shut off
importations of foreign goods and
created for the United states an
export market unprecedented in
the history Of the world.
Mr. McAdoo may think that he
is entitled TO tho credit of the
great prosperity of the country,
because he caused initiation of the
currency and managed the cam
paign for sale of Liberty bonds.
That campaign was ably conducted
under his direction, it is admitted
but it was the people who so freely
responded by supplying the nation
with funds and lending their credit
They are now bearing the burden
and many are feeling the financial
reaction that results from going
beyond their personal ability.
The buyers of bonds are not real
izing the hopes that were created
by assurances that the securities
would soon bring back par value
invested. Those who must sell are
at the mercy of conditions which
are far from satisfactory. Finan-
cial circles are holding a pretty
tight grip upon wealth, waiting to
see what will happen now that the
federal reserve board is beginning
to take up the slack of wartime
initiation.
If there shall be a great financia
reversion it will be natural re
action from the policies pursued
by Mr., McAdoo while he was sec
rotary of the treasury 1t il
acknowledged by practically ever!
financial expert in the Unite
States that we have had period o
extraordinary initiation as a resul
of the management of the fedora
reserve system and the method
bursued in the flotation of tn
Liberty bonds. Now that the fed
eral reserve board has undertake
to check the initiation and to brin
about some measure Of deflatiol
people feel an eXcusable uncer
tainty regarding the future.
If there is any respect in whic
Mr.. McAdoo can claim credit 70
Industrial prosperity in the Unite
States, it is only to the extent tina
he was responsible for initiation
He cannot claim credit for the re
suits of that initiation without ais
accepting responsibility for an
adverse conditions that may resul
from deflation.
Congressman Frank w. Monde
of wyoming, republican leader c
the house, is emphatic in his oppo
sition to the fiscal theories of Nj
McAdoo. Secretary McAdoo i:
more than any other man, respon
sible for the present situation, Nj
Mondell charges, "for he it wa
who planned the financial pro
gram of the war; he it was VIII
insisted upon the reduction of gov
eminent income while government
expenditures were at their maxi
mum" As to the McAdoo propose
to reduce taxes and issue NOR
bonds, the congressman asserts tina
no large issue of bonds could b
floated now at less than per cent
and If attempted earlier issue
would be sent down below so.
Mr. McAdoo may consider tina
by getting out of the treasury be
fore reaction could come and ais
by passing to others the railwa.
default, rapidly growing when h
quit. he has retained glory ant
beuueathed to others the gloom
Int the American people are no
f;Laiv IN ignore cause IL effect b,