The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-01
TRADE With RUSSIA
LOOMS Big TO KAHN
America Should Keep Eyes
OH Land Lest She Be Fore
closed. He Says.
NO FAVOR FOR SOVIET
England and United States
Hurt by German Levy,
Is His Logic.
RETURNS FROM EUROPE
Recommends Aid to Farmer
and Export Trade as Result
Of Observations.
RETURNS FROM EUROPE

OTTO Fl. Kahn arrived from Europe
yesterday by the Olympic and Issued
tho following statement:
Tho matter and tho manner OF the
repsrations to BIO met by Germany is
something which directly anecfs US
J,,a.ess Germany is permitted and d.
rected to discharge her obligations 70
tho Allies, mainly In furnishing raw
materials ana services, as far as she
% capable OF doing so. it IS manifest
tina. she can only meet the huge bur-
den imposed on her by corresponds
ingly huge expansion OF her export
trade. And such expansion. to the
extent that it is feasible. can only DC
effected at the expense OF the trace
OF the leading industrial nations. J. Q.
primarily. America and England.
..of course, Germany must make
atonement to the utmost OF her abiity.
but the whole treatment OF the repara-
ton question at the peace conference III
Paris and at the various conferences
since has been based on either pro-
found economic fallacy or on unwilling
ness to look unpalatable facts in the
face. or on considerations OF domestic
political expediency.
Comparing my European impressions
this year with those Of last year, what
has struck me as perhaps the most IN
teresting and significant development Is
First. that the theories of Bol6hev1sm
are wholly discredited and have ceased
to be a contagious influence and an arti-
Gle OF faith with all but small frac-
ton of the bona fide working people OF
Europe; secondly. that the eyes OF the
industrial nations OF Europe are on Rus
STA as the new land Of unlimited possi-
bilities and, thirdly. that there seems 10
be almost universal recognition, even IN
strongly antagonistc quarters. that for the
commercial penetration and the proper
economic ordering and development Of
regenerated, or to be regenerated, RUS
sia the active cooperation of Germany Is
requisite and essential. owing to her
contiguity and her knowledge OF Rus
sian ways and qualities and conditions.
England and France Active.
ENGLAND and France are alive to that
situation. and their financial and indus
trial leaders are astir. especially those
Of England. with traditional enterprise,
skill and foresight. American coopera-
ton would be welcome at this time. 1t
would appear TO me that this situation
rhouid receive the careful and prompt
attention OF American industry ana
finance. lest by standing aloof too long
we may find ourselves foreclosed from
desirable opportunities when the proper
time arrives.
.This suggestion is, Of course. entirely
apart from the political or moral ques-
ton Of according any recognition to the
Soviet Government until and unless 1t be
sanctioned by unnlistakable action
through the free vote Of the Russian
people"
America looms so large as an actual,
and still more a potential, factor In
world affairs that her domestic affairs
form an appropriate subject for discus
sion In even so cursory survey oil
world matters. Our own house must oe
In order before we can be effective in
those affairs abroad which are Of con-
Germ to us.
1T was inevitable that the artificially
stimulated boom period of the war years
and the period Immediately following
should be succeeded by drastic and
painful process of rcadjustment to nor
NAL conditions. though 1t need not have
been az drastic and painful as II was
and, indeed, still is. At any rate 1t seems
10 mo the time has come when we should
rouse ourselves out OF our slough of in
dustrial despond. And I believe we AN
do so IL we make determined effcrt
and pull together and follow that road
which Is marked by the signpost OF
economic soundness.
what Kahn Says We Need.
Some OF the signposts are:
I'D A wise taxation policy-after
all. the total sum required to be raised
by taxation for our governmental needs.
while vast In comparison with ante
war years. Is relatively light in COM
parison with what II is In the principal
countries OF Europe. as proportlonate
10 our wealth and population and theirs.
Tho burden OF taxation. direct and
indirect, resting on the man of small
or moderate means I'm America is many
time lighter than Il is in any Of the
leading countries of Europe. That is
as IL should be. and no revision of taxa
ton would or should be considered by
Congress which would relieve the we'll
20 do al the expense OF the masses Of
the people.
III our system OF taxation has been.
as undoubtedly IL has a strongly
intensifying factor In bringing about the
present situation or bnginess collapse
and unemployment and In retardlng re-
covcry, the reason is not so much the
total size of our tax bill--though that.
OF course, was extravagantly swollen
ahS must and VIII be greatly reduced
but the fact that taxation was dumped
on the back OF business and capital most
clumsily and crudely We cannot have
a return TO normal business conditions
we cannot have vigorous enterprise until
he shall have corrected tho most gla-ing
at least, among the faults OF cur pregcnt
system OF raising revenue.
y. wise credit and loan policy
There has been too much Willingness In
certain financial quarters to promote
enterprises, to float securities for pub-
lie salo and to facilitate business expnn-
sion when prices were nbnornaliy high
and @ policy OF caution and restriction
was Indicated. The concomtant OF that
attitude was insufficient willingness or
ability to grant loans and credits when
the danger flag OF unduly swollen prices
had disappeared.
in times liko the present tho at,i-
tidc OF those who are In charge OF the
business OF loans and credits should be
ono or active encouragement and of
ready Willingness within the limits OF
prudence and capacity. to extend ade-
auatc facilities 70 borrowers for lcclt-
mate reeds AT homo and abroad.
"tsl 4 w.sn tgrlff pollcy---Our Gov
erntnert. during the war and for some
Time aftor extended hugo loans "a IN.
.opean Governments venture TO .h.nt.
WITH unduc and unnecessary layishness.
Private loans and CREDITS have l,lte-
wfve boon extended 20 foreign npplI-