The Washington herald., 1921-05-22

= Is painfully slow. Events are moving forward
eonstructiveiy and il is generally believed that the
closing months OF this year will witness real revival
II is generally conceded that the worst of the depres
sion has been passed, although all hope OF speedy
recovery has been given up.
Germans Offer First Payment
The fact that the Germans have offered to pay
first nsallment Of Isooooooo gold marks on the in
demniy seems to show the intent Of the Berlin gov
ernment to comply with the reparaton terms This is
exceedingly satisfactory, although just how they will
meet the full payment Of I.ooooooooo marks which is
due at the close Of this month is not yet clear The
financial methods of Germany will be watched with
keen interest from this time Some observers be-
lieve that there may be great in the rapid
and cfectua settlement of this indemnity there
after the Franco Prussian war
1t should not be forgotten however that even if
the Germans successfully meet the first payments the
whole problem is not solved. The reparation plan
provides for three series OF bonds letered A, and c.
The latter series consists of S2ooooooooo gold marks
and these to be issued to the reparaton commits
sion 10 be held until is clear that the German gov
ernment meet the payment the other series.
Payment OF the interest these bonds is to be pro-
ydcd for by tax Of rs per cent German exports,
plus certain other minor The question is will
this IS export be sufficient these
interest paymcntss The whole matter upon the
size OF the German export trade The annual amount
which must be collected presupposes annual export
trade valued at nearly S6ooooooooo II It is remem-
bered that the total trade of the United States
has rarely exceeded S8oooooo,ooo it will be realized
that Germany must do tremendous foreign business
Are the allies willing to permit Germany to do this
amount Of trade? ..-..r -
= Foreign Trade Problems .t
During the week there occurred in New York an
important meeting Of the Association of Manufactur-
efs.in WHICH foreign ambassadors and diplomats took
an important part The one dominant note running
through the speeches that of warning. against
excessive tariff barriers in this country Ambassad
Jusserand declared that: "A high tariff will close
american market for French goods at the same time
lessening the French. demand for American goods
II is not credit that France wants so much
as markets Tor her goods, and America should be one
of them -. - ''
= There is curious lack of coherent policy in the
contemplated action of Congress regarding foreor
uade Durmg the week the House Appropriation
Committee indicated favorable report on the request
o the Secretary of Commerce for $5ooooo additional
appropriation for the stimulation of foreop trad. A.
'ne same time the Ways and Means Committee is
contemplating the enactment of drastic measures of
tarn revision which in their extreme FORM at least
are certainly calculated decrease OUR forc;on co
merce american industry come first in the con-
eisuon oil congress, but if it believes that the pro-
motion OF foreign trade is sufficient Importance to
receive increased appropriations il sbouId also ,I;,
tne truth OF the statement that 1--WE cannot sell where
we do not buy" l..,..
81 Railway Wage Reduction.
most constructive step towards business recov-
cry was taken this week when the Railroad Labor
Board announced a policy looking towards the re-
duction Of railway wages. The amount of this re-
duction will not be announced until about June but
II is understood that it will at least II per
cent Such change will undoubtedly enable the roads
to fair income from their investment and may
justify some reduction in railroad rates. This is one
OF the most important steps in readjustrg not only
transportation but all the complex business interests
with which il is interviewer
Prices Still Declining
The Department OF Labor announced during the
week that its Wholesale price index number for all