The St. Joseph observer., 1921-07-30


but financial legerdemain, to adjust
these differences, equitably and read
just them with constant exchange
fluctuations.
"Yet this is but a start in the laby-
rinth OF tariff adjustments, if there
is to be a tariff revision. Not only
does Europe owe this government
$40, 900, 100000 on which it cannot
even pay the interest, but European
governments and traders owe Ameri-
can traders and our people in COM
mercial debts and on securities, over
$3,O 900 more.
'It is recognized by everyone that
the bulk of this combined credit, far
greater than was ever carried by any
other one nation, must be paid in
goods and materials. 1t can be paid
in no other way and that means i'm
ports. A high tariff would tend to
prevent, through our own act, the
payment of those debts due US.
Exports and Imports
There is a growing feeling which
may become conviction, that not only
| any increase of exports from the
United States will depend upon an
increase OF imports, but that even to
maintain an equality of exports will
demand this greater proportion Of
imports. On this event the present
credit relations depend; while only
through greatly expanded imports can
credit capacity and credit stability be
expanded.
but even more than this comes the
feeling that Americas own domestic
purchasing power is quite dependent
upon Europe's ability to buy and pay.
Even in foods, the products of the
! farm, Europe has an eager market for
all American surplus, il it can make
it on this exchange. But 1t cannot pay.
"If this surplus can go where 1t is
wanted and needed. the farmers will
have the money to spend. If it has to
| stay as now on the farms and in ele-
vators the farmers will be in their
present financial stress and have to
take reduced price on all their crops.
! What is true-if true-of the farmers
is equally true of all products of the
mills and factories
"It is comprehending this wholly
new American situation, that is giving
! lot of high protectionists pause. 1t
has ranged the financial powers of
the country back of a policy of leave
1t alone 1t is winning converts
among Just the folks"
l--sq First For Disarmament
No one will deny to President Hard
ing any credit which may be due him
for his proposal to call a conference
OF the principal allied and associated
powers on the reduction of arma-
ments. If by the inclusion of China
as one of the comforting powers a
peaceable solution is found for the
/ Far Eastern question there will be
additional cause for congratulation.
This movement by President Hard
ing follows the passage OF the Borah
resolution put through the Senate
and the House by the pressure OF
public opinion, and until the last mo-
ment opposed by the Republicans and
the administration.
The credit for initiating the move
ment for reduction of world arma.
ments. a movement which antedated
/, the Versailles peace conference, be-
! longs to the Democrats.
The first disarmament resolution
was introduced in the House in 191t
appended to the Naval Appropriation
Bill by Representative Hensley
(Dem.) of Missouri. and was in par
as follows:
Upon the conclusion of the war II
Europe or as soon thereafter as 1
may be done. the president Of th'
United States is authorized to invit,
y all. great governments OF the world I,
! send Representatives to a conference
; which shall be charged with the dut!
, OF suggesting an organization, cour
of arbitration, or other body, to whicl
4 disputed questions between nation