The New York herald., 1921-02-20
Economics Makes Hardng's Foreign Policy Difficult

DA1xNu1N
fess the danger Of such a maneuvre seems
to me real and grave.
II is obvious, however that If Great Britain
and the United States agreed to Joint can
collation. of the debts owned them by Con-
tinental nations exclusive of Germany, in
sisting at the same time upon the similar
cancellation by France of sums owed her by
Continental nations, notably Italy and Bel
gium, the British and American govern
ments would be in position to make certain
recommendations which might contribute to
bring about economic peace in Europe.
Such conditions would be: The reduction
of the German reparations total as have
indicated the reduction of the Army Of Oc-
cupation in Germany and the rapid evacua-
-tion of most if not all of German territory
following the completion of German dis
armament A new occupation thereafter
would be permitted only if Germany rearmee
or failed to comply with the reparations
terms which would Enthusiastically be within
her powers.
All such arrangements could be made at
some international economic conference
called by President Harding in which the
United States would necessarily be repre-
sented. But such a conference need have no
relation whatever to the League of Nations
which constituted the main stock and trade
of the league as created at Paris and the
chief obstacle in the way Of American ap-
proval of that league.
America FlatIy Votes to
Stay Out of Europe's Disputes
But laying aside all questions of various
policies there is one fact which it seems to
me must be fully appreciated by the Ameri-
Nl,o
fairly clearly demonstrated that our country
is determined to stay out of all European
political disputes, ethnic, military or ma
tional. The public voted against defending
foreign frontiers guaranteeing existing
political conditions. The decision was un-
mistakable and the meaning has not been
misunderstood by the politicians or by the
members of the Senate and the House of
Representatives. So far policy of "isola-
ton" was disclosed to be desired.
The events of the last few months how
ever, have clearly demonstrated that while
it may be possible to avoid political entangle-
ments it is totally impossible to escape
economic complications. We are suffering
to-day in our own industries and in our own
factories and farms from. the closing of the
European markets. We shall continue to
suffer II the markets remain closed. More
over, since Europe owes us $11 000, 900, 900 in
loans and $4,000, 900 900 in credits, we have
an enormous stake involved in the European
game. This stake equals the sum total of
the costs OF the war to us, aside from our
foreign loans.
Unless economic order be restored on the
European Continent shall lose all of the
$4,000 000 and what is of more imme
date importance, we shall lose the markets
in which alone we can dispose of our own
surplus production of materials and
foodstuffs, as well as of certain manufac-
tured articles, of which automobiles and
farm machinery are striking examples. To
raise the tariff now may protect our own
markets from foreign manufactures, but it
will not assist in the disposal of our own
surplus, and it will automatically stop the
payment Of the sums Europe owes us on
the various loans.
Sooner or later we shall have TO sit into
some economic association of nations, if only
a conference without power or permanence,
to join with all the other nations in some
combined effort to restore the economic
stability of the world The alternative is not
merely the loss of what we have lent or
risked in Europe, but that danger which
must follow the persistence of anarchy in
Europe and the closing of all European mar
l<ets to our products