The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-12-18
Nations Must Join Hands ::
To Avert a Trade Debacle
Resuscitation of Commerce, Alienation of
Want, Depend Upon Exchange Stabiliza-
ton, Holds London Chronicle

AS events develop there seems
always to be drawing a little nearer
some sort of crisis in the worlds
affairs. and the agitation that goes
on-polit!cians, economists. imam
ciers, capitalists. labor leaders, and
revolutionists all chorusing ther
own special remedies for the COM
mon plight-suggests nothing so
much as birds huttering aimlessly
and noisily in an entangling net"
This net In which the world is en-
tangled. says the Br fish Investors
Chronicle, is the credit system. II
has become a hindrance rather than
help to modern international in
tercourse because IL contained no
provision for the contingency OF
world war That fact" continues
the Chronicle. was so obvious that
many held, before the event,
world-wsr to be impossible, be-
cause the collapse OF credit would
promptly stop IT. Nevertheless, the
impossible occurred, and the antici-
pated Intervention OF the outraged
system did not follow for the reason
that in the heat Of combat the sys-
TEN was deliberately set aside. II
a commonplace that during the
four years Of war economic cOnsid-
erations went by the board. They
did so Of necessity. A man cannot
lob Fnl Of
strength while clutching his money
/ bags. But the consequences OF that
throw away have now to be faced.
The view is often expressed that our
credit system is on the brink Of
collapse. 1t would be more correct
to say that II collapsed in 1914"
Calls system Ruined.
1t is the Cp.n on OF this writer
that the world must get down TO
fundamentals IL any good result is
to be achieved. He says in this con-
nection: our system is in ruins,
so completely broken down that the
I United States. now the wcalthiest
country in the world. is industrially
the most hapless OF all. as meas
ured by the number Of its unem-
rloyed Anomalies and paradoxes
stare at US from every corner Of the
earth. the paradox Dr. Nassen has
been dilating upon. for example
grain rotting in Argentina for want
Of consumers, millions starving in
Russia for want OF grain, and the
ships which might transport the
grain laid up for want Of freights-
No tlnkering with the net will alter
such tragic absurdities.
This restoration OF world-credit
A.. l.
clearly II is not the problem OF any
enc country or nation. 1t is equally
the problem OF all countries wheth-
CT their credit stands high, like the
United States. or in the depths. like
Russia The problem turns upon
restoring such an equality of credit
as will promote the freest possible
interchange Of the worlds goods
and services so that the shortage
caused by the war may be mitigated
by celebrity and movement, and pro-
duction stimulated by the ready
market. Cnanimity OF action to-
wards that common end is the OBJ
vious goal; yet what are the ma
lions doing. Each is pursuing its
own policy OF internal initiation or
deflation as seems good in the eyes
Of its government, thereby widening
I the gulf that yawns between one
and another to the prejudice OF
trading intercourse. while almost
all are bdsy erecting tariff walls TO
the still further detrimcnt OF the
essential freedom Of exchange. II is
as II the nations Of the world. con
fronted by the necessity Of joining
hands and pooling efforts in order
to avert a common danger. were
possessed Of a devil driving them TO
the separatist courses that lead
straight to destruction.
Urges New StabiII1stIon.
Very slowly this broad concop-
tion Of the situation seems to be
gaining recognition. The pro-
rounccment on trade depression is
sued by the Federation OF British
Industries suggests that this coun-
try has been pressing a policy OF
dchation too vigorously. and even
proposes that the government
should borrow in order to remit
some norton OF tho existing taxa
tin. In America Mr.. Hoover. and
others who count. are showing an
appreciation OF the dilemma their
country is faced with by the attain
ment OF credit status so high that
| few countries can afford TO trade
! with IL The point is thus being
recognized that the sterilization Of
| credit which is essential 10 the
resuscitation OF world trading. is
not a matter OF the Impoverished
nations one and all straining W to
the level OF the wealthy few, but OF
the wealthy few also moving towards
the level OF the Impoverished. The
domestic consequences OF moving
down may be awkward for the coun-
tries concerned. but II anything like
working equilibrium Is TO be at
tained the gap that has TO be bridced
is enormous. and Il seem. futile to
suppose that Il can or Will be bridred
by operations from one side only.
] THE practicsl upshot ~ this view