Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-04

view. They would not create demand
for our products. They could be
made only to exporters or to banks
engaged in financing exports and If.
they did In some measure stimulate
exports they would probably not have
the effect apparently most desired of
substantially increasing those of ag-
ricultural commodities. Already.
with the larger volume Of exports
which Europe is taking from US,
she Is exercising her option. such as
meats, presumably because she her
self has become more largely self
sufficient or is again providing her
self with supplies from distant coun-
tries which, with the opening up Of
shipping since the armistice, have
once more found their place in the
markets OF the world.
1t is highly probable that the most
immediate and conspicuous effect of
the resumption Of the corporations
activities would be an effort on the
part of exporters to shift the financing
OF their operations from ordinary
commercial channels to the govern
ment. This would be unfortunate. 1t
would continue the government as an
active factor in ordinary business ops
erations. If activities OF any consid-
cradle magnitude resulted they would
necessitate the imposition of addition
al taxes or further borrowing. either
through the War Finance Corpora
ton or by the treasury. In either case
new burdens would be laid upon all
the people. Further borrowing would
in all likelihood tap the very sources
which might otherwise be available
for private operations or whether the
treasury Is now compelled to reach to
meet current obligations of the gov
eminent. There is no question that
the borrowing of the government
should be limited to the minimum re-
Quirements and that the government
should not be called upon further to
finance private business at public ex-
pense. To the extent that Europe is
able to furnish additional securities.
private financial institutions here will
doubtless find means of giving the
necessary accommodation. The way
has been opened for added Legitimate
efforts TO promote foreign trade. FL
nancial agencies in aid of exports, pri-
vately financed. have already been
planned to operate under the act APP
proved Dec. "a, 1919, authorizing the
organization of banking corporations
to do foreign banking business. One
corporation has been organized in the
south and a second of larger scope is
in course of development. These agen-
cies may be expected to act as prompt
1y and as literally and helpfuIly as
sound business conditions will permit.
Through reliance on such enterprises,
rather than through government in
tervention, may we expect to secure a
return to stable business relations.
For many months there has been a de-
mand that war agencies should be
abolished and that there should be less
government interference with bust
ness. l have sympathized with this
view, and believe that it is applicable
to foreign trade as we'll as to domestic
business. I am Of the opinion that
now, more than two years after the
armistice. the nation should resume
it's usual business methods and return
to it's reliance on the initiative, intel
ligence and ability of its business
| leaders and financial institutions.
We shall not witness an immediate
satisfactory adjustment of domes tic
and international trade relations. The
burdens Of war are not lifted when the
! fighting ceases. One sad thing about
! war is that it leaves behind 1t a leg
acy of economic ills and of suffering
from which there is no escape Con
ditions. however, are improving botf
here and abroad. The difficulties with
which we are now confronted are OF
small consequence in comparison with
those which we have met and over
come. Fuller res toration awaits the
adoption of constructive measures OF
| large consequence; the secure estab
lishment of just peace in the world
| the cessation of fighting everywhere
| the more complete resumption in Eu
rope Of the normal courses of industry
the return Of her people to soundel
| fiscal and banking policies. and the
breaking down within her borders Of
harmful restrictions.
|