The Lexington progress. (Lexington, Tenn.) 1884-current, 1921-12-02

sole explanation offered by the i'm
partial historian of the future.
Reconstruction Policies Contracted.
It is extremely interesting to con-
trast the readjustment methods and
policies pursued by the United States
and other nations following the defeat
of the peace treaty-which led
straight to industrial disaster-with
those other and different methods and
policies Of reconstruction which the
friends Of early treaty ratification
strongly favored. In the light of such
comparison and contrast the average
citizen will best be able to judge
whether the adoption of the later re-
adjustment policies would have safe
guarded the nation against the ex-
isting panic conditions chiefly created
by the former.
What wGs the position Of the Amer
lean nation in the middle Of 1919, near
which time the treaty, at all hazards,
should have been ratified? We had
104,000,000 population; national
wealth of $275,000, 000, 900; an inter-
national commerce of more than $751;
600 900 900; $SO79, O00, 900 of gold, or
one-third of the world supply; for
eign commerce of Of $500 900 900,
of which $4,000, 900 900 was with Eu-
rope; favorable foreign trade bal
ance of $4,000, 900, 900; a great mer-
chant marine "a foreign debt in our
favor Of more than 100000 900.
We furnished the world the chief sup
ply of foodstuffs and raw materials.
We had unsurpassed productive pow
er in agriculture, minerals, forests
and manufacturers. Our annual saw
ings exceeded $4,000, 900, 900. We
were great creditor nation-the
worlds banker.
United States as Leader.
The United States had become the
recognized leader of the world, p0lit-
ically, financially commercially i'm
dustriously and morally. Her credit
and financial structure was sound and
secure. Prosperity existed among
every class of persons and Of business.
There was market for every prod
uct and job for every person. The
world was prosperous in 1919. This
nations productive capacity, instead
of being impaired as result of the
war had expanded from $35, 900 ,O00,-
0U0 in 1918 until the annual commod-
ityity output exceeded domestic needs
by Is to 20 per cent. We had no in
flation of currency and no seriously
hurtful initiation Of credit. Our COM
modoty price level was near the world
price level as fixed, not by inflated
currency values, but rather by the
great war demand for commodity sup
plies. The government met one-third
of its expenditures during the war
from taxes levied mainly on war prof
its. The war cost had not made dent
in our economic situation.
Our postwar problems Of readjust-
ment were fewer and far less grave
than those of other countries. We had
the task, during 1919, of demobiliz-
ing our army and fitting the men
back to civil employment, which was
admirably performed. Other prob
lens were the repeal Of war legisla-
tion and the removal of war regula-
tions and restrictions from business,
the contraction of credit initiation, the
curbing of profiteering, so as to les
sen the high cost of living, the pre-
vention of wild speculation, gradual
and cautious deflation of prices over
period of years as the world produc-
tion increased, disarmament and re-
duction and readjustment of war tax
es, and the maintenances of our for
eign trade, so as to continue the full
activities of American industry and
the regular employment of American
labor. This last and biggest question
of keeping open the foreign markets
was irrepressible.
Reconstruction Problems of Europe.
What were the reconstruction con-
ditions and problems of other parts of
the world in the middle of 1919? Eu-
rope emerged from the war with to-
tai loss of men aggregating over g.
900, 900, not including double the num-
Der of cripples and manned survivors.
The was cost approached $175,000,-
900 900, not to mention the vast de-
struction of physical properties,
which in France alone was estimated
at $4,000, 100000. The gold standard
had been supplanted by paper curren-
cies throughout Europe. Immense
credit initiation existed. A mountain
of war debt had been piled up. Eu-
ropes wealth had been greatly depict
ed and her current production severe
ly curtailed. She was without food or
raw materials. The adverse exchange
situation was growing serious. Avail
able capital was at low ebb. Trade
and financial relations between the
various European states had been sew
cred. There were many unstable de
facto, and other governments recent
ly created by the 100000 people
newly liberated by the war and the
Versailles treaty. Serious boundary
disputes were brewing in different To-
calities. Europe was torn widely
apart with respect to commerce. fl
nance and communication. A number
of old governments had been destroy
ed, while some surviving ones lay
PROSTATE. Finance, commerce and in
was almost at standstill, and all Eu-
was almost as stndstill, and all Er-
rope was thereby threatened with
great political and economic instabil-
| ity. She was still an armed camp
the treaty delay not having yet per-
mitted the disarmament Of her armies
and the return Of the soldiers to in
dustrial pursuits. Disease was in
flicting serious losses among many
peoples.
II is most important at every stage
after 1918 to keep an eye on the new
and old nations Of central and east
ern Europe-such as Austria, Hun
gary. Jugo- Slayia. Poland. Czecho-