The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-29
MORE THRIFT NEEDED.
TwOfoId Remedy for an Increasing
Shortage Of Commodities.

To THE New YORK HERALD: A. Bar
ton Hepburn's statement to the effect
that the world is facing an increasing
shortage of commodities is undoubtedly
true.
The economic situation is alarming.
The supply of commodities is much be-
low the worlds requirements, but on the
other hand the supply is much in excess
of the purchasing capacity, with the re-
suit that the production of all raw and
manufactured materials is decreasing,
and 1t Is believed by those best informed
that condition will soon obtain where
the consequent shortage will produce
alarming results.
So far as I can learn no one of the
various Governments has appreciated
the above fact or taken any steps for
its correction. The remedy, as l see It,
is twofold:
For those countries which have de-
stroyed their accumulated wealth in the
late war. to reduce the scale of living.
This can be effected by prohibiting the
manufacture and Importation of all lux
uries, thereby directing the efforts of
the people to the production of useful
things in greater quantity. cutting off
all extraordinary expenses of all kinds.
governmental and domestic.
For those countries whose wealth has
been increased, the prohibition of all ex-
ports of manufactured goods and raw
material in excess of the amounts ex-
IN he a n
all Government, expenses of whatever
kind.
1t is a well known fact that the high
cost of living in the United States is
due, first, to the great demand for labor
for the production of raw and manu-
featured goods for export this demand
increasing the cost of labor and increas-
ing the cost of commodities here.
1t is a further fact, as exemplified by
the balance of trade of $1,000, 600, 900 in
favor of the United States. that the
major portion of the goods exported
have been exchanged, for paper credits.
The consequential effect of this has been
to increase the wealth of the United
States and decrease the purchasing
power of the dollar.
Further, the export demand not only
for commodities but for credit has de-
creased the credit available to American
producers and manufacturers and in
creased the interest rate.
1t is of course not to be disputed
that international trade under ordinary
conditions is beneficial, but under the
extraordinary conditions which now ex-
list it may be seriously doubted whether
an international trade which consists in
giving potential commodities for non
potential credits is Of benefit to the coun-
try which holds the balance of credit.
The practical effect of international
trade so far as the United States is con-
cerned in the last four years has been
to increase enormously the cost of liv-
ing of the people of the United States
without materially benefiting the people
IF the countries to whom the goods were
exported.
l. is manifest that the whole world
and pc glad to pay for them in paper,
and further, will not reduce their scale
of living or increase their production of
material commodities so long as they
can obtain them on the present terms.
The case of American expectation of
coal is shining example of what inter-
national trade costs the United States.
The United States is paying about four
times it's prior war cost for coal, be-
sides facing shortage. without the people
as whole beneflting by the trade. the
benefit such as has accrued being wholly
for the profit of an exceedingly few'com-
panies and individuals.
1t seems remarkable that in this ad-
vanced age-perhaps 1 am wrong in call
ing it acknowledgements should have
so many selfish traders and so few in
telligent economists.
GEORGE HuLARD BENJAMIN.
New YORK, November 81.