Evening star., 1921-07-03
FINANCIAL PROBLEM
BATTLES EXPERTS
Proposed Tariff Threatens Check to Pay
ment of Foreign Debts Owed to
United States.

United States, and the Importance OF
any means that will aid in restoring
the purchasing power of foreign
countries in need of the materials
produced in the United States may
be clearly grasped from these figures.
The United States today has an ex-
portable surplus of coal. copper. cot
ton. iron and steel, petroleum. meats.
wheat, wool. corn. hides and leather,
lead. zinc. phosphates and other
products.
There seems little doubt that these
surpluses and lack of markets here
and abroad have had to do with
depression in price levels in this
country. This. together with a cur
tailment of credits here. has made
money more scarce and has raised
it's purchasing power.
On the other hand, if the foreign
purchasing increases in this country
it seems Inevitable that the price
levels will become higher again than
they are now. The people of the
country are clamoring for lower price
levels. But at the same time there is
a demand for better business, for more
credits, etc. yet it does not seem pos
sible to have lower prices and more
business.
Golden Flow TO This Country.
The flow of gold to the United States
has not ceased. Reports of large ship
ments from England and France have
been received within the last few days.
One international banking concern in
New York announced that two ship
ments. totaling s1,490. 900, were on the
way.
During the war the United States
switched suddenly from being a debtor
nation TO a creditor nation on vast
scale. There are billions; of dollars
owed to Americans in addition to the
billions loaned by this government to
foreign governments. 1t is natural
that this country should desire tha;
these loans be liquidated. But. on the
other hand. it is realized that liqui-
dation at this time would curtail still
further the purchasing power of the
foreigners. and what then would be-
come of American export trade?
Eject of New Tariff.
There is one way in which Euro
pean nations can hope to pay their
debts to this country-through the
shipment of goods here, produced by
the debtor nations. And now comes
the new protective tariff bill. design
ed TO erect a wall Of protection around
the industries of the United States and
to keep many of the goods produced
by the foreigners out of this country.
This threatens another check upon
the payment of the foreign debts. In
cidentally. this is one of the causes of
the bitter controversies over items in
the tariff bill which have developed
during the consideration of the meas
ure in the ways and means committee
of the House. There is a very con-
siderable element which desires to
give the Europeans an opportunity to
pay their debts. and also an element
which is anxious not to "wobble" the
boat at this juncture, and put stop.
through retaliatory measures on the
part Of foreign nations. to American
export trade.
The entire financial problem, with
it's overlapping interests. is one that
so far has proved too tough for solu-
ton But there Is a growing belief
that an adjustment will come in time.
In the meantime every effort is be-
ing made not to bring about further
complicationS