The New York herald., 1921-01-04

In the struggle. These ceased several
months after the armistice. except Tor
commitments already made. Ihey
should not nov be resumed, either di-
rectly or indirectly. The recent Brus-
sells conference. composed OF experts
from many European countries ana
from other nations, itself expressed the
onInion that further credits should not
Be accorded directly by Governments.
I do not believe that they should 90
accorded indirectly.
"Exports OF domestic products nave
not declined since the armistice- oh tns
contrary they have greatly increasea''
From an aggregate value before the
war OF less than $2,50e 0Oo,ooo ana OF
about $4,000. 100000 the last year ol
Lostillt.es, they rose in the calenoar
YEAR 1918 10 more than $1,000. 600, 600,
ana this figure will probably be e1-
cecded for the las, calendar year.
Europe Handicapped.
For the first eleven months Of last
calendar year we exported more tnan
S7.5OO.OOO 600 worth Of domestic mer-
chandise. These have besa largely pri-
vatelv financed The difficulty IN the
way OF still larger exports does not seem
to lie SO much in the lack or iihahciti
ability here as in Europe's lack OF means
energies and the services which sne rem
ders have not vet reached point where
they balance the value Of commodities
taken from this nation and her ability
to furnish for additional exports securi-
ties which business men would reel Just-
fled in taking is restrlcfed
sThe exnerfs of the Brussels confer
ence reported that one of the CHIEF oo-
stacles TO the granting Of credits Is the
l. t,.ts of
cienr securities for ultimate rsp1yment
Until this obstacle gs rerpoted il is diff
cult TO see how Materially larger ex-
ports to Europe fare to be made even
IL exporters, aiSed or unaided by Gov
ernment fina<ce, stand ready to do
Their part ut Is remarkable that Eu-
rope IS .Able to make an effective de-
.nHnd for as large a volume OF our goods
ss she is making. It is graXtying evl-
dence of her recovery ana progress
snward full production and sounder
financial conditions.
ssJTnder the law If the activities OF
the corporation were resumed no direct
advances could be made to producers,
and II they could be they would not ac-
complish the objects in view. They would
not create demand for our products.
They could be made only TO exporters or
10 banks engaged In Financing exports,
ana II taer fllO N Sprls iflf1s'~+'f -A4Aftt-
lstt exnorUs they would probably mo-
hssvs tie effect apparently 0loss desired
81 A,ss.stngisl'y Increasing these 81 aSsl-
ccltural cC4nmoditles. AlreaGy- Win
eha larger yoinuic Of exports wnicn ha-
rSne y tsEiuc from Us, she - ,xeFc isIng
n 1ri0a II .aking = smaller volume
af SONG OF opr principal agricultural
PRODUCTS, suai as meats, presumably
because sire herself has become more
tsssxgely self-sufficient or is again pro-
viding herself with supplies from dis
tant countries which, with the opening
up Of shipping since the armistice, have
once more found-their place in the mar
kets of the world.
TT is highly probable that the most
immediate and conspicuous effect of the
resumption OF the corporations activ
tiles would be an effort on the part of
exporters to shift the financing of their
operations from ordinary commercial
channels to the Government. This
would be unfortunate. 1t would continue
the Government as an active factor in.
ordinary business operations. If activ
tiles of any considerable magnitude re-
suited they would necessitate the inn
position of additional taxes or further
borrowing, either through the War
Finance Corporation or by the Treasury.
In either case new burdens would be
laid upon all the people. Further bor-
rowing would in all likelihood tap the
very sources which might otherwise be
available for private operations or which
the Treasury is now compelled to reach
10 meet current obligations of the Gov
srnnlent."