Evening star., 1921-05-09
ECONOMIC REASONS
BEHIND j. S. ACTION
Desire to Restore Business
Seen in Decision to En-
ter Allied Councils.
BY DAVID AWR.:\tE.

BY DAVID LAW RENEE.
Americas decision to enter tn" allied
councils and to use her moral support
TO compel satisfactory adjustment
of the German rcparation controversy
is as much based upon economic rea-
SonS--a desire to bring about
revival of business in the United
States-as upon anything political.
The ripples of complaint which have
emanated from those on Capitol Hin
who are inclined to see European
AFFAIRS from the political angle. par
iicuiariy as something consistent or
inconsistent with campaign speeches.
nave talled to swerVe the executive
brdnch OF the government from its
detrrmInation to bring about an era
or business prosperity Irrespective Of
now the formula affects the purely
political side of things here.
Ihe commonly reported statement
that Secretaries Charles Evans Hughes
ana Herbert Hoover are Influencing
the policy of President Harding is
only partially correct. There are
Others IN the cabinet who feel that
the big thing before the Harding
today is the revival
OF busineSS-the return to nnrmalcv.
~ the cabinet as TO whether the in
NiiatioH of tn" allies to Join in their
councils should J." accepted, the point
was how a"CepiInr" or rejection
would affect the future of American
business.
heiiancc on German Payments.
otflcials recognize that until the
mes nave a satisfactory adjustment
or the reparatiOn owed them by Gers
htI ~
make satisfactory payments on the
money they owe the United States.
our government refuses formally to
recognize the relationship and will
not consider any transference of the
foreign debt from the allies to the
Dacks OF the Germans. but neverthe-
less the Washington government is
not ignoring the relationship of Ger
manEs payments to the capacity of
the allies to pay America
me harding administration consid-
cred seriously the embarrassing po-
sition IN which America would be
placed if she declined to use her
moral force alongside the allies when
iermanT made her proposal to me-
dlate. If the United States had taken
a position which the allies believed
was encouraging the Germans to
eVade their obligations it might have
resulted in sentiment among the
allied governments to the effect that
America had cOrrespondingly pre-
vented the allies from meeting their
Obligations. To collect from the al
hes, IN other words. it was necessary
for America to help the allies get
their money from Germany.
Economic Considerations.
Such. in brief. is the Harding policy.
ana whether or not it pleas..s the ire
conciiabie" element is something that
has been by force of circumstance made
a secondary consideration President
Harding. naturally. wanted the complete
support of mis- party, but in cases of
division he must rely upon public opin-
ION The feeling in executive quarters
is that the country is back of Mr.. Hard
ing in his efforts to bring about a re-
turn Of normal business conditions He
Is Stll as iusstent as ever that the
course OF our government will be so
carefully steercd that involvement in
European political tangles will be avoid
ed. But against those who claim that
the participation in allied councils is :.
step toward the entry of the United
States into the league of nations the
answer is made that for the present the
Harding administration is looking at
things purely from an economic basis
To reduce taxes for instance. there must
be more revenue availa bic from more
sources. To make American people bet
ter able to pay their taxes they must
be IN position to make money. To
make money they must have, besides
their domestic markets. place to sell
their goods abroad
To sell profitably they must put
their products within the reach of the
foreign purchaser. Until International
exchange is stabilized. would-be Eu-
ropean purchasers cannot buy. That's
the cycle of present day economies
and the Harding administration is
trying by every means possible to
bring about a stabiliZation of inter
national exchange. which, il is ex-
pected. would be followed by the re-
vival Of export trade and the reopen
ing of American factories that now
are shut down.
sound business Policy.
Tn. Harding administration be-
lieves that the policy of making the
Germans pay their debt is good busi-
ness policy for America. that tn. as
sistance given the allies by sitting
in their councils prevents any ex-
cuse that America herself is prevent
ing the allies from paying the Sl0,-
900 00O. 600 they owe the United States
Sound business Dolicy-nOt campaign
politics-is back of the Harding
policy. and that's why Mr.. Hughes. IN
th- Department OF State. and Mr.
Hoover, in the Department of Com
,uerce. who are most concerned with
foreign trade. are considered the
chief Influences in the situation. but
behind them is the practically unani-
NOUS sentiment of the cabinct-the
Secretary of the Treasury. who feels
that business will be revived when
European questions are settled: the
Vice President, who in Il public
speech said the prosperity of America
was dependent to large extent on
the settlement of international ques-
tons; the Secretary of Agriculture
who wants to see foreign markets for
,he farmers produce. and so on all
along the line. It's business and no
party politics.