Evening star., 1921-12-14

because Of the lower evcn#uee value
OF his products and partly lecaIse OF
unliguidatcd Indebtedness. Until the
1a"ciasHlS power OF ihe farmer I'M
proves i, VIII. of course. he iGie 10
LOOK for any rapid OF SaIstantia! mn
provcincnt in domestic ira;le.
i think. hnWcVr:. ruas ffr Uui-
lcoi, fn- the farmers is more iope-
fGi. They h@ve. 80 'io;lJt beer ncite-
htcd through tn" activities Of t.ie
"a ar .'i.i:,ace 'urpora;ina. which.
although il c::Enos make direct loans
tc individuals. is rcdiscnuntin- Ea!rrr
for banks which. i.cause OF louS
maturity. is not eligible for redis-
cou.t viii the fcdcial reserve hanks
While tlc agricultural situa ION Is Il,
nrosi important factor in our do
:restic trade. rhcr- are o;her things;
which must be :::i;nu into account.
Gnuse of High rr.ts.
The G-.iiue IL prices "f Eia:iu-
factareti goods has rot been as greet
as the = Irt!llate in Etiu- Of r.%
materials and the i.'ai' price :ilae<
does not snow q drop :ofr' S.junu AZ
TO that of tne "hol"sa'" "racs ia"cN.
This indicates that manu- .:t";fi3'ifS
costs have not declined i, rrnpo; tIun
to primary production "osts, aud .hat
the costs Of dis rihut;on ana If de-
ing business are d..p-ogot. ionately
high.
depends mainly upon ;h- price "i
iarrn products. but in manufacturing
industries la Dor costs are rot aiwa, s
Immediately related TO tht cost Of
the raw material used in ti.oSe in
dusiri-s nor. indeed. to the l,ric. %
the finished product. Other inpGr.
tant clements Gt cost ar" taN"S
freight rates. rents and fuel. Tn"
federal government must n"c-SSar! ::
raise large revenues in order /" meet
obligations incurred as a r"su'' -.
the ar, and our system of ii alton
is designed "a levy the highs; r;I;..si
on large inco'nes
This taxa,i3 can De oSndp,'. ts;"-
gether "r in part by iny-siili: :. s-;tt'
and municipal bonds. which are s"nlr:
from the income taA. and th. 2t.'i Y al
municipalities to sen heir obl;eatpn.
more readily hecause ~ his fact has
had Il Il ndency 10 Increase he V"'"tf'
Of IL. ir indrht r,iursa ''onseGuen.iy ~
local taxation has increased materially.
and unless the issue Of 'aN-eNemp' OBJ
are likely to be serious.
Cooperating roSts-of The railrondS 2ri.
much :bove normal ard transE'"r.a on
rates hay. been incrras. Il IS aa ct9S'''.
Rents are high because OF in", aas e
taxes. higher upk."p cos : "a; he =
adequate supply "f 1'ous+s "rriS:"n"d
by the reduced bIi!,iin. oDsI' :i,.is DR.
ing the past f"'tr "r dve Gears.
'Fuel is high. '!'l" partly '"-incr@a" q
taXrs. higher costs Of product .an and
ncreaS. d costs nf transportation and
distribution.
THE ,estor..:i;, % norm:l con n.i'j,as
in agr!cli.u:. commerce and iad'ia'iy
depends TO great extent upon tht -
duction D: these essential items "f "N-
penSa.
Much dcnrrllS al:o upon the results
of the conference for lirnita:io,. "f
armamen. NO." being held in this City
This conference is he most important
which has eyer been held in this our-
try and if the program sul'm tied hr
the Secretary "f state is adopted il
will have profound effect rnon the
fnaurr3 nf ti,r world. ~ fact. .h- itro-
ceedincs OF the conference up I" this
time and liz" Proposed treaty between
The Four .r'at powers which central
the Pacific arr accepted as harbnssrS
- peace :,rd have had already S;abi.
liZine effect; The notable advance ia
sterling exchange. which began will
The assembling Of the conference, is
moi Z mere coincidence.
when great nations enter into cDnl-
petition with each other in the extern
sion of huge naval and military eStab-
iiShmen,S lhc large SUMS ncceSSarT
for these additions and maintenance
must be met by taxation in SOME fora
or other. Money expended for arnla-
ment is devoted to pon-producIive and
destructive purposes. These Surns re-
leased for constructive or productive
use in the creation of new wealth will
stimulate the revival of business ac-
tivity.
THE position of the United States
with respect to world affairs has en-
tirely changed since 1914. Up to tina:
time we were debtor nation. When
the war broke out in Europe the
United States was a debtor on the
worlds balance sheet to the extent
of probably four billion dollars. rep-
reSenting amounts due on current ac-
count plus foreign investments in this
country. Now we are creditor ma
ton in a large amount. Besides the
sum of ten billion dollars advanced by
the United States to nations asso-
ciated with US in the war. there is a
result of private trade transactions.
which has been variously estimated
from billion and half to three and
one-half billion dollars"
Mr.. DeFrees. in brief address.
pointed out the value of chamber of
commerce work in America. He said
that the growing tendency for men
and women to get together in cham
Der of commerce meetings and dis
cuss impartially public questions
would have a growing influence in
the legislative halls of the country.
The annual meeting of the Wash
ington chamber has been announced
for January 10. when ten directors
will be chosen and a president and
two vice presidents elected.
Sidney West. chairman of the men,
three new members had been elected
to the organization during the last
month.