Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-04-12
PLANS SUGGESTED
BY SENATOR SMITH
To HELP BUSINESS

Lower interest rates for farmers,
restoration of pre-war railroad wages
and decreased transportation charges,
and an adjustment of the demand on
Germany for reparation were sug-
gested by Former Senator Hoke
Smith in an interview Saturday
night as likely remedies for restor-
alton of normal economics in the
United States.
Senator Smith has been in Atlanta
several days on legal business. He
will return Sunday night to Wash
ington, where a number of pressing
legal matters await his attention.
Il can only undertake to discuss
a few aspects of the economic situa-
tion," said the former senior sena-
tor from Georgia. las far as con-
ditions in Georgia are concerned, it
cannot be too strongly emphasized
that nothing will take care of the
cotton situation with the large car
ry-over, unless the present crop is
unprecedentedly curtailed. Anything
like normal crop, added to the car
ry-over, will put, L fear, our immedi-
ate section in a position where it will
be difficult to recover in several
years"
Senator Smith made the following
further observations:
The war broke down trade routes,
and wiped out many industrial
plants in Europe; sacrificed mil
lions of lives, and wasted billions
of dollars. While it was going on
the increased demand for war sup
plies furnished markets for agricul-
tural and manufactured products, and
carried prices temporarily to high
figures. With the cessation of pur-
chases for war purposes, and the
completion of contracts for war pur-
poses, which lasted even after the
war was over, the collapse came.
Looking for remedies, three things
naturally suggest themselves. We
need a broadening of credits, and to
accomplish this it is essential that
the rates for discounts charged by
the reserve banks be reduced. This
will reduce the rates of interest, and
encourage investments.
"Our entire transportation system
in the United States is in a democrat
lied condition. The rates of freight
are so high that many commodities
cannot be carried to places Of con-
sumption, because, with a fair price
to the producer, and the cost of
er is put out of the market as a pNr-
chaser. The cost of labor, the
amounts required to be paid to en-
ployes on transportation companies
which the pay to the employees will
was greatly increased during the war
There must be an adjustment between
the railroads and their employees by
reach approximately pre-war figures
and the charges for transportation
be brought down by the transporta-
ton companies to approximately pre-
war prices; This is absolutely es-
sentia1 to restoration Of normal
economic conditions in the United
States.
"An adjustment of the demand on
Germany for reparation is ssential
to the re-entry of Germany and cen
trail Europe into anything like nor
NAL conditions, and the restoration of
these purchasing markets for our
raw materials. Of course, Germany
ought to pay every dollar that she
can pay, but to seek to obtain a sum
which would break down industry in
Germany would have the effect OF
lessening the amount actually paid
rather than to increase it. 1 am
especially opposed to the export tax
of -. per cent which the PREPARATION
plan puts on Germany. [ feel sure
that our southern agencies will be
into central Europe. \They will re-
ceive the cordial support of the wal
finance corporation, and of all the
governmental agencies of Washing
ton City. I was very much pleased
at the attitude taken both by Mr.
Meyer, Secretary Hoover, and the
president in our conference last week
They wish to help-of course we
must help ourselves"