The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1921-04-28
AMERICAN LABOR AND THE
EUROPEAN DEBT


statesmen and economists have beer
devoting considerable time to devils
ing ways and means to secure nav
ment Of Europe's debt to America. i
has frequently been urged that Amer
lea give to Europe the opportunity to
pay by providing a market here fol
European goods. The contention is
that the American market is the only
one IN which Europe may sell he1
commodities for cash. From a phil
anthropic and self-sacrifcing stand
point, this plan would be beyond crit
icism, but let US see how feasible it
would be from a sound business
standpoint.
In the first place, America ad-
vanced the money to Europe, and
European countries are now justly
Indebted to America in that sum. By
shipping commodities to the United
States, Europe would be receiving
cash in return. This cash would be
applied by Europe toward the pay
ment of her debt to America. In
other words, the United States would
be receiving back in payment of her
debt, American cash paid to Europe
for products sent here. True, our
country would then have the goods
and the cash. But the character of
goods sent here by European coun-
tries is a big factor in determining
the advisability and soundness of
such a plan. 1t is an undeniable fact
that the chief products of European
countries are similar to those pro-
duced here. In fact, American IN
dustrial prosperity Is dependent upon
and mainly supported by the manu-
facture and production of the same
classes of commodities as Europe pro-
duces. What then will America do
with the output of her farms anc
factories? For every million dollars
worth of competitive products which
America buys from Europe, there Will
be a million dollars worth of the
same products manufactured here
that would be without market II
is easily seen therefore, that while
such a plan would be creating a cash
market for European goods, 1t would
at the same time be throwing Amer
lean labor out of employment by de-
privine it of a market for its output.
American labor would therefore be
paying Europe's debt to America by
sacrificing itself on the altar Of IN
employment. Americas greatest boast
is her ability to provide her own. Our
productive capacity is greater than
that of any other nation. Likewise
our powers of consumption. The
wheels of supply and demand must be
kept turning in order that our coun-
try may be kept in a prosperous and
sound state. Our statesmen have been
too forgetful of the old adage, Char
ity begins at home" If there is any
philanthropic feeling to enter into
the question of the payment of
Europe's debt to America, let US not
make American labor act the part of
the philanthropist. There are numer-
Gus other ways for this debt to be
paid without sacrificing that all-im-
portant bulwark of our greatness
domestic labor and industry.
In q determining matters of this
character, it is not a question of
whether the country can do it, but
whether the procedure would be in
accordance with the proper economic
principles which experience has
taught US to follow. 1t is not only
governments duty to regulate the
political affairs of the nation, but also
to protect the interests of its bust
ness enterprises, and to do all in its
power to foster the development and
maintenance of its industries.
If European standards of labor and
living were on a level with those of
America, we could then consider the
lowering of Tariff bars and allowing
open and fair competition to decide
who shall enjoy the benefits of the
American market. However, the
standards of living and labor in
Europe are so much lower than they
are here in America that to ask
American labor to compete with them
even in our own markets, is to sound
the death knell of American labor and
industry. The Government must
either Protect its domestic business
bye prohibiting the indiscriminate
dumping of foreign products here,
through proper Tariff regulation, or
it must allow Europe to flood our
markets with the products of its
cheap labor and thereby strangle the
industries of America. 1t does not
require a Solomon to decide which of
these two courses is the right one
American Economist.
C.SH. Gustafson, chairman OF the
Committee of IT," and recently
elected president of the U. S. Grain
Growers, Inc, the organization re-
suIting from the plan of the Com
-