Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-10-16
Pac,'s Rejection, Declares
Economist, Cause of Eu-
ropes Chaotic Condition.
Hy Cur1leII Iinli,

By CorieII Hull.
Ek-Rcproscnt atiyo In Congrvas. Au.
thor % the lncomss. Tax. and Fed
trtl Inheritance Tax la~H The
Measure to Stabilize the Value OF
Liberty Bonds, Etc. Etc.
The great world war VIII afford 4,
rnittui tonic OF discussion through
mont OF the policies pursucd by PEG
pi"H mud governments In dealing wish
no postwar problems OF roconst ruc-
ZION. however. has become 4 matter
Of pressing Importance. In viow Of
mo extremely unsatisfactory nature
~ tho recent and present world po-
i iiusai' T Tnaneini and economic oondi
countries and In those countries par
uGipntinS In tho war, which wee
hclped economically NOR. than They
seeking tho causes Of the grrat and
sudden transition from condition
OF general rrosoprlty at the tiinc the
urinis.icv WAS signed TO one Of M
Custrinl depression and paralysis
eighteen months Ia three years later.
This state o. anxious Inquiry exists
throughout America today.
. Nniucs Decline sIUDI0. 800, TOO.
The most ignorant person viii re-
call with certainty that. following
IN" nrHlftc" ana untii after M" de-
American bankers, business mon. aud
economists everywhere directed at
.'ntiun 10 tho great actunl .tui po-
t'ht''ti surpIlcS col iDpdStnns. raw .n.t-
,crials and manufactures Ia the
United states to their extreme acur-
city I'm other countries. to Ia. de-
mand that would b. made On Ameri-
can industry Tor nm indefinite tine
70 al in tho rcConstructiJn an! ic-
habiii,auon Of Europe. L. the dire
nncd or that part Of tho WORT tur
n'l the products AMI services Amer
! 'oa could spare: and those noted
economic authorities uuuuaiiHcGly
prwietod and proclaimed :; period OF
heri,! for tho American people. II
wax only after the defeat uf the
treaty. and Europe. as II result. was
rccn to ho slipping further towards
political aud economic DISASTER that
t'csc men hurric0!y modified their
Ni-ws
Ink the past months, the .aluo o.
farm products suffered sudden and
violent slump Of 60 nor cent. that
near SGoo0OV persons are out OF c,n-
p!p:rirnt. and that many moro VIII
D. IN "A similar Plight ~ March, 1917;
thst our foreign trade HAS declined
- '+50e. 100000 during the Grst eight
.lunihs OF 1921; that our great uier-
chRnt mar Inc Is Idle; That thu Mum
per OF commercial failures Ia vastly
ihfEe.thiiIS over those .! post years:
that factories and minea are Largely
smut down or running ON pirt'n! time:
that = Slump III c"n!IrOdItY aud occur
ny values 81 near siGUO0,00G.9up has
l'--- tHp"r!-RC.d and jaIt IN DrI.f.
the nntIon has suffered loss.s from
the prcaent Industrial panic az grcat
''s thos" III any other three pan!.S in
ita entire history. Tn. aver.ur
american citizen knows. and feels lE;.
elects or these physical facts and
conditions, whttcvu. lie may read or
hear to the contrary.
No DisruSSion of Economic Phase.
The singular fact rill he recalled
that IN" opponents of treaty ra-!a-
cation. Instead OF considering the ef-
fects OF treaty failure upon the fu-
70, ut Aryi ~ Ef.,,
30 vital to the welfare OF tho masses.
avoided any discussion Of that phase.
In pitching their night on raciIi and
religious grounds and prutud!ccs, and
on the doctrine OF "political !SO!l-
ton" they found themselves obliged.
In order To carry out their controlling
all hazards, To couple the l!octrine u
economic Isolation" with that OF
political isolation"
Republics leaders, were thus en-
ablcd 10 ignore the vital problem OF
the economic welfare OF every Amer
ictn citizen, and TO d!5uisS .hc sub
jcct by procla.in!ng the false doe
trinr that Americas sole concern was
for her home industry and domestic
cc"nincrce. and that her people could
hss i've ana pro"'HT Tba within md md
aside the subject Of our foreign IL
nance and commerce with con-
inrii-ed: What cares America TOR
foreign trade relations. or any o,h"r
Kind Of foreign rclations,' Ameri-
can business facts ANA conditions
nov can no longer b" ignored.
United states nv Lender 81 the World.
The United states had become the
recognized lender OF the world. po-
litically. financially, commercially,
inhustr:nliy and morally. Her credit
and financial structure was sound and
secure. Prosperity existed among
every class Of persons and Of bust
ncrs. There was "a market for every
product and "A job for every person.
The world was prosperous In 1919.
r 'fhis nations productive capacity in
Stead OF being impaired uA result
81 the war. had expanded. from $780,
00,Goo,o00 in 1918. until the annual
commodity output exceeded domestic
needs 10y 10 or 20 per cent. We had
no imitation OF currency ana no
seriously hurtfui Imitation of credit
our commodity price level wIs near
the world price level AZ fixed. not by
inflated currency values but rather by
;hc great war demand for commodity
supplies. The government met one
third OF its expenditures during Tia"
war from taxes levied mainly on war
:. pr"ilt". The war cost had not made
a dent in our economic situation.
our postwar problems OF rcadjust-
,t we're fever and far less grave
man those OF other Countries ~.
had the task during 1919. of de-
mobi!i@inE our army ana fitting the
men BACK IN own employment, which
was admirably performed Other
problems were the ropcnI of 49,
legislation and the removal OF war
regulations and restrictions from
business. tho contraction Of credit in
Nation. the curb!nG OF proiitccrInr so
AZ to lessen the high cost of living
the prevention or wild spccuiation
Eradua! and cautious don;ttiou OF
. prices over period Of years as the
world production increased, disart,u-
n"nt and reduction and rcadjustn.nt
OF war taxes, and the maintenances
OF our foreign trade so as to con-
tinue the full activities OF American
industry ana the regular employment
OF American labor. This last and
biggest question of Keeping open our
n ri. 4 IL