Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-05-28
VITAL TO MILL WORKERS,
BUT THEY DON'T KNOW 1T
Until the Financial Issues Of the War
Are Settled Unemployment VIII Con-
tfnue Here and Elsewhere

Are Settled Unemployment VIII Con-
tinue Here and Elsewhere
TT WOULD be a mistake for any one to
i assume that only the fnanciers are in
terestcd in the questions discussed by Prcsi-
dent Harding and a group Of New York and
Pittsburgh bankers in Washington this week.
Every unemployed textile worker, every
man engaged in the building trades, every
working man and woman, whatever his or
her occupation, and every farmer will be
affected by the wisdom Of the decisions
reached.
This is because the prosperity Of the
United States Is dependent in large meas
ure on the prosperity Of the rest Of the
world.
Men are idle here today because the Ger
man reparations question has not been
finally settled. Business in all parts of the
world is waiting until it is known definitely
just how Germany is to pay and just how
much she is to turn over to the allied ma
tions.
When that is known the world will know
on what it can depend for the next few
years: France and Great Britain can go
ahead with their taxation plans, and busi-
ness. informed on what burdens will be in
ficted on it, can adjust itself to definite
conditions. Then the slow process of re-
covery from the effects Of the war can begin,
because the uncertainty will have been re-
moved.
But Europe cannot buy on the old scale
this year because she has not the money.
Mr.. Burleson former Postmaster General.
who has been in Berlin in the interest Of
the cotton growers Of the South, has reported
that Germany eau buy only about 25 per
cent Of her normal purchases of cotton be-
cause, on account of the impoverished state
Of Europe, she can find a market for only
about 25 per cent Of her normal amount Of
cotton manufactures. France and Great
Britain and Belgium and Italy are finding
themselves confronted by the same condi-
tions. The consuming power of the world
must be restored before the producing power
can be rehabilitated.
Now, the conference Of the bankers with
the President was over the best way for the
United States to assist itself by assisting
Europe. The President Secretary Mellon
and Secretary Hoover have let II be known
that they are opposed to the floating Of any
foreign loans in the United States the pro-
ceeds of which are not spent in the United
States. The bankers are opposed to any
such restriction on the use of the money
which they may lend abroad. They insist
that the United States will be benefited in
the long run just as much by money spent
abroad as by money spent here.
The proceeds of two recent loans, one to
Denmark and one to Belgium, have been
spent in other countries The Belgians
bought foodstuffs in Argentine, where they
could get them more cheaply than in the
United States, and the Danes bought loco
motives in Germany at lower price than
they could get them here. With American
money, mind you
The farmers are particularly grieved by
the purchase Of foodstuhfs in Argentina.
ha m n pictr moi ish to
the farmers. It's mind is on the political as
well as on the economic effect of its financial
policy. The mind of the bankers Is only on
the economic effect. They insist that eco
nomcally it Is the wisest possible course to
| co operate to the extent of our ability In re-
storing the producing power not only of
the allied countries, but of Germany. Unless
Germany can begin to produce large
scale she will not be able to pay the rcpara-
ton bonds that she is to issue, and the
nations to which she is to make reparation
are selfshly interested in the opening of her
factories and in the profitable sale Of their
products.
However wide the disagreement may be
over the use to which the proceeds of for
cign loans are to be put. there is likely to
be general consent that the bankers Of this
country must not provide money for the
budget necessities of the foreign Govern
ments. American gold must not De USED 10
pay for foreign armamcnts. Governmental
economies must be practiced and the taxation
systems revised in such n way as to enable
the Governments to pay their own way.
John Hays Hammond, speaking in this
city yesterday before the American Cotton
Manufacturers Association, expressed the
view of the President rather than that of
the bankers. He recognizes as clearly as
| the bankers that the settlement of the claims
against Germany must precede the resump
ton Of industrial activity, but he insists that
the money borrowed here must be spent here,
and that it must be spent for what he calls
| industrial reconstruction" and not for
| building merchant marine to compete with
| our own and not for military purposes of
any kind, and not in a way to enable our
foreign competitors to intrench themselves
| in markets to which we are seeking access,
| and not to enable our rivals to obtain a
monopoly of raw materials
1t is rcassuring to know that the prcsi-
! dent is seeking advice from the financial
experts of the nation. The question before
| him is of such gravity that he seems to
desire all the light he can get before he
| makes n final decision. He and his Cabinet
do not disagree with the bankers on the ends
to be sought. What disagreement there is
arises over the best means to accomplish
| those ends. Until they are accomplished the
re employment Of the idle workers in this
city and elsewhere will not proceed very