The Washington herald., 1921-01-23
GOODS, NOT GOLD,
TO TRIM HUGE
EUROPEAN DEBT
Chase National Bank Of
fetal Declares High
Tariffs Absurd.
OPPOSES CHANGES
A. Barton Hepburn Says He
Sees No Need for Tariff
Readjustment.

There is only one way in which
Europe can ever hope to pay the
United States the billions of dollars
they owe US and that is by sending
US goodsA She cannot send, much
more gold. The only way in which
she can hope to pay off this lebt, or
even to nay interest on II. is by
sending goods to MS. selling them
in oaIr markets and leaving the
money with us"
This is the keynote of an inter
view with A. Barton Hepburn, chair
man of the advisory board of the
Chase National Bank. New York
City, and made public yesterday.
The interview follows:
Il am concerned here with the
problem of Protective Tariff vs.
Revenue Tariff under normal Condi-
tions. A lifelong Republican, |
could offer strong arguments for
protective tariffs under conditions
to which we were accustomed in the
days before the war. But the pres
ent situation makes the old argu-
ments wholly in applicable. We are
faced by the fact that Europe owes
us many billions of dollars, which
she can only pay by shipping goods
to US. European governments owe
our own government approximately
$4,000, 100000. In addition to that
Europe owes private investors in
the United States $1,5OO.OOO,OOO to
$4,000, 100000 in bonds. Over and
above that, Europe owes private
creditors in the United States. in
the form of an unfunded or floating
debt, a sum approaching. II it does
not exceed. $4,000. 900, 900, making a
total debt of Europe to the Unitel
States of not less than S15,5OO, ,OOO,-
900. OF which an appaIlingly large
proportion is in unfunded form
Can't Send Gold.
Il repeat that the only way in
which Europe can ever hope to
pay any considerable part of this
debt is by sending us goods She
cannot send much more gold. The
creation of our great merchant ma
rtne and the expansion of our
American banking activities have
lessened Americas dependence on
Europe for shipping and banking
services, and, at the present mo-
ment, the actual balance of pay
mcnts on shipping is against Eu-
rope, rather than in her favor The
only way in which she can hope to
pay off this debt, or even to pay
interest on it. is. by sending goods
to US, selling them in our markets,
and leaving the money with us.
1T needs little argument to show
tha thigh protective tariffs inter-
fere with the importation of manu-
factured goods from Europe, greatly
increase Europe's difficulties in
meeting her obligations to US, and
greatly lessen the prospects of our
receiving payments from her. 1t is
a policy which is financially sui
cidal If vigorously carried out.
am, therefore, vigorously opposed
to an upward readjustment of our
tariffs at the present time. 1 call
attention to the fact that the plat
form of the Republican party pro-
mulgated at Chicago last summer
took cogniZance of this exceptional
situation and refrained, in view of
this situation, from making any
definite commitment of .te party
to an early general Increase of tar
iff rates. The Platform said. The
uncertain and unsettled conditions
of international balances, the alb
normal economic and trade situa-
ton OF the world. and the impos-
sibility of forecasting accurately
even the near future preclude the
formulation of a definite program
to meet conditions a year hence
Oppose Tariff Revision.
Il do not question that particular
schedules may need modification in
the light of the Developments since
the last tariff law was passed. Some
schedules, by being revised upward,
can be made more productive of
revenue without hampering the i'm
ports from Europe. Other schedules
may be made more productive of
revenue by being lowered in such
way as to permit the freer entry
of certain goods, with the conse-