The Washington herald., 1921-03-25

It may seem rather q oroad-state-
ment to the average man Who has
given little thought TO the question
of unemployment In this country to
say that a good part Of IL is directly
traceable to the foretsn trade situa-
ton or that the solution Of this
problem lies In the overcoming Of
the depreciated- value of the ex-
change by American exporters. lt
is more than . mere coincidence that
as the exnosters of the United States
are reporting a heavy falling of in
their business. refusal of foreign
consienees to accept goods shipped,
and liability to obtain new orders.
there is also reported a steadily
growing percentage Of unemploy-
ment here.
Figures lately issued by the De-
partment of Labor show that the
number. of idle workmen in this
country has grown to almost
$500. 900. A large proportion of this
represents a decrease In demard
abroad for products turned out by
American factories, not because
these products are not needed. but
because there are no adequate means
for financing their sale.
With the exchange situation al
most prohibitive from the viewpoint
Of foreign buyers Of our goods. the
overproduction of goods in this
country has resulted in natural
slowing down Of industry and a con-
seauent increase In the percentage
cf unemployment. The greatest in
crease in the number of idle work
ers has naturally occurred in GER
tain lines of industry which depend
for their prosperity i'm rCrmal times
on the sale abroad of surplus prod
ucts such as textile products. ma
chinery. electrical goods. cement AMI
packing and food proGucts. As sales
abroad have fallen of, SO too has
employment for working people here
fallen of.
Prosperity Vs. Exchange Situation.
The prosperity of the United
States in normal times has always
depended upon the sale abroad of
surplus production, yet because of
the war and the enormous demand
that was created in foreign markets
for products during this period, the
man who -ow hunting for work
to support htMself and his family
probably doesn't reason that the
abnormal exchange rates and con-
sequent difficulty of Americas over
seas customers in making arrange
ments for long-term credits TO
finance their purchases here are re-
sponsible for his troub'es-thst is TO
say. at least a good part of them.
But even more important than this
is the fact that his problems are
likely to continue unless a solution
of the exchange situation or a way
in which il can be overcome is
found.
The Only Solution
II is automatic today that as our
foreign trade 'prospers, SO will the
country prosper. Without prosperity
here. the workers will be without
jobs. 1t has been many years since
the United States was a salf CON
tained country. Our resources are
so vast and the neCds of other parts
Of the world such that. producing
more than VIC ourselves consume
there is bound to be a flow of food
stuffs. raw materials and manufac-
tured goods from our farms, mines
ana mills, 10 consumers ONtISSdS
The war taught our farmers TO plant
larger areas and to produce in
creased crops. Our industrial estab-
lishments were expanded to point
heretofore deemed impossible. Pro-
duction all along the line was stimu-
lated to the utmost We cannot go
back without consequences OF the
utmost seriousness, widespread and
long-continued. The way to meet
this situation is to sell abroad the
foodstuffs. coal. oil. copper. cotton.
wool, lumber and manufactured
goods of every description which
We cannot use here. The only way
to sell that surplus is to make II
possible for the foreign merchants
and manufacturers to buy it. They
are anxious to do this IL satisfac-
tory terms of payment can be ar
ranged.
Dire Need for Credit.
II is impossible. of course, to de-
wise any satisfactory scheme OF
bringing exchange back to normal
Immediately for the purpose OF
stimulating foreign trade. Ex-
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