The New York herald., 1921-03-05
HARDING TO TACKLE
VITAL PROBLEMS
Continued from First Page.

| for six months following Government
control. This. with the present heavy
| running expenses OF the Government,
presents difficult problem in finance.
Treasury certificates OF Indebtedness
have been issued in anticipation OF
! major share of the March Is tax pay
lnents. The balance in the general fund
is low. and further temporary financing
must be done Secretary Mellon will
have to make decision in regard to it.
Proposals for refunding the British
and French loans will also be taken
up promptly. Negotiations FOR such
settlements have been practically sus-
pended for several months.
One OF the gravest problems With
which the Administration will be called
on to deal is that OF transportation.
While the railroads are functionng on
peace time basis and transportation
| movement Is easy. many roads-nnd
the list includes a majority of the big
trunk lines-are facing financial diff
Guilty. Whether the transportation act
will furnish the relief expected IS prob
! lematical.
| Foreign Problem Features.
/ The foreign problem which President
Harding will have to deal with may be
divided roughly into three oarts-first,
! the relationship Of the United States to
4 Europe, involving a settlement OF the
/ League of Nations controversy, Russian
| financial interrelations and the question
of mandates second, the relationship OF
! the United States to Japan, including
\ immigration and the Pacific island con-
| troversy, together with the part which
the United States may be expected to
take IN the development of China and
other Asiatic questions third, the re-
lationshp Of the United States to Mex
] leo and Latin America generally.
Connected with the problem OF Amer
ica's relationship to Europe. a relation
which IN q broad way involves the
! whole world consideration will be taken
OF the manner N which the United States
I shall bring about peace with Germany
and It's policy toward Russia. 1t Is gem
orally assumed that failure to bring
about a satisfactory undertaking with
the allied powers over the question OF
mandates and an association Of nations
will be followed by an immediate sug-
| gestion Of q separate peace with Ger
| many.
! The new Administration policy to-
wards Russia will be OF tremendous i'm
/ portancc. II is realized that the situa-
tion II Russia enters into every world
! problem that will come up for settle
ment within the next four years. Not
4 LHS hlisillt5l iHdtIdliOh ild5 bcCI SITGii
as to whether the new Administration
will continue the policy OF Prcsi-
dent Wilson toward Russia or whether
| 1t will adopt new policy of its own. In
any event. the Russian situation must
be taken into consideration in dealing
with the problem in Europe and that IN
Asia.
Mexican Situation.
The Mexican situation offers prob
/ lem that Is unique IN itself. For eight
years the republic south of the Rio
! Grande has been a fostering sore which
| the trcs tment accorded il by the Wilson
Administration appears to have excited
and made more ugly and menacing.
There Is little doubt but this country
/ will have TO take a firm policy toward
Mexico. and il is also an accepted fact
/ that the Harding Administration is pre-
\ pared to adopt such a policy.
I a corollary OF this policy will be a
determination to build up strong navy
in keeping with the wealth, power and
| Importance of the United States. Uni
versal peace and disarmament will be
the ultimate goal OF the new Admins
| tration. but the safety OF the United
| States will not be imperilled by antici-
pating the time when this can be brought
/ about.
The Japanese problem Is one with
| which the new Administration will have
to grappie at the outset. This will be
involved In part in the settlement Of the
| controversy over the Island OF Zap and
will also deal with the immigration
problem, still pending
One OF the most important problems
will be determination of this countr5's
relations with Great Britain. 1t Is
hoped that a rapprochement may be
reached with the British Empire which
will make the English speaking people