The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-11-15
FOREIGN POLICY
S|DETRACKED BY
LOCAL CONDITIONS
Republicans Will Find House,
Cleaning Job an Easy One,
But Raising of Revenue VIII
Present Serious Problem.
RY DAVID LAWRENCE,
Especial Correspondent of The News
Scimitar,)

Scimitar.)
WASHINGTON, Nov. 15.-Busl-
/ ness conditions throughout the
United States are more a subject OF
discussion among government OH
Gals nowadays than questions OF Ior-
eign policy or national politics. me
passing of the election has brought
back to some extent the nonpartisan
viewpoint which prevailed during the
war. Me mare not so likely to ex-
press opinions that reflect on the
opposite politicallparty. There Is the
beginning here Of real apprecla-
ton Of the big problems ahead.
For instance, much talk has been
i heard about repeating the excess
/ profits tax. Congress will probably
do something about it in due time,
but the interesting question is belng
asked whether the drop In prices
as well as profits will not actually
reduce the revenues that have here
tofore been expected from the excess
/ profits taxes. Some observers have
II gone so far as to suggest that for
L all practical purposes the business
Il situation will before long have re-
pealed the excess profits tax.
On the other hand the federal re-
serve board which stepped in last
spring and began restricting credit
| is getting to be as much topic OF
controversy as the league of nations.
Defenders Of the federal reserve
board insist, for example, that the
country is witnessing a readjustment
without money panic and that the
board has been fully justified in its
action by current developments in
4 the economic field.
~ There has been much talk about
!, the export market in it's relation to
the political situation abroad, and
\ while 1t is quite usual to hear 1t said
4 that the bottom has dropped out OF
II the export market, nevertheless, the
il last reports issued by \the depart
ment of commerce indicates a gain
i in both exports and imports. The
Il exact analysis of export trade in
II commodities has not been made and
Il there seems to be no doubt that
H some lines of business have suffered
H from the inability of foreign coun-
i tries to raise the necessary credit to
4 finance American exports. On the
4 whole, the national capital on bust
H ness conditions throughout the coun-
H try reveals continued disinclina-
Il ton on the part of the consumer to
j buy Stocks have therefore piled up
Il in many businesses. Manufacturers
Il who have had orders cancelled are,
L however, using the opportunity to
H cut down labor overhead and to weed
out inefficient help.
II It seems to be generally expected
/ that the first of January will wit
/ ness a marked change. With stocks
i running low, the feeling seems to be
/ that buying by the merchant will
have to begin, and that the consumer
1 will also find it necessary to join in
4 the buying procession, In some lines,
i like building, a change is not ex-
/ pected until spring. The decrease in
1 lumber prices and in the cost OF
H other materials is such as to war
i rant the belief hereabouts that the
/ American people will begin to solve
i their housing problem as soon as the
/ dimunition of the winter snow per-
/ mits the carpenters to begin work.
ii Another reason for optimism in
II Washington, however, is the certain
H ty that European markets will come
II back to America just as soon as fl
nancial stability is accomplished.
II Everybody seems agreed that Europe
II needs American goods and needs
il them desperately and that the re-
i financing of Europe will bring full
production to American factories
again. Yet there is very little said
here about governmental aid to cred
81 it operations in Europe. The Euro
II pean countries themselves adopted a
resolution at the international finan-
cling conference, at Brussels looking
with disfavor on the extension OF
more loans by governments. Yet
II that conference did make several
suggestions for the betterment OF
trade by new credit plans.
With the election out of the way,
.fGt 2sE.I Va. IL s.,sr i 30
take a more active part in interna-
@stional credit operations even in adj
n Vance of the new administration.
The cutting down of governmental
expenditures viii probably be agi-
tated during the coming session OF
ii congress, but as Republican Leader
Mondell once told the writer, it is
one thing to talk about cutting down
appropriations and it is quite an
II other thing to face the people of
states and cities who suffer from the
II cut in the amount of money spent in
their immediate environment.
Another thing with the high cost
II of living many government employees
II who originally got their Jobs through
political influence haven't been espe-
cially enthusiastic about staying in
the government employ when at
tractive positions are available in the
business world. The Republicans
will find the house cleaning job they
have been promising the country a
II very easy task in many respects. but
the hard part of that will be to get
competent persons to come to Wash
ington replace those who are every
day resigning to enter the business
or professional world at higher sal
aries than the government has beer
able to afford.
Many of the government depart
ments have already given evidence
of their ability to cut down their pay
rolls but when all is said and done
official Washington isn't expecting
that the amounts saved by dismiss
ing employees will compare with the
big amounts that will have to be
raised to pay the interest on bond
issues and other obligations of the
4 government. With the excess profits
tax falling off in revenue and with
i liquor taxes naturally diminished
the question of how the money Is 60
ing to be raised is puZzling every
body. 1t is seriously advanced by
some officials that taxes will go III
instead of down unless the tax bur
den is distributed over more years
than was originally planned. Some
Il of the experts say this may tempo.
rarily ease the load, but that in the
long run the plan will not prove eco
nomlcal. Briefly, now that the elec-
ton is over, Washington is changing
from the political to the economic
s phases of reconstruction.
-, Copyright, 1920, by David Law
rence.)
Il ppEAK IT'D MEETTNc