The Mena weekly star., 1922-01-05

for the years 1911 to 1914, inclusive, amounted to approximately $550,000,- 900.
 Status Reversed.
 Our pre-war status has been com pletely reversed. From 1915 to 1917, inclusive, the demand of European na- tions for goods was so great that at the time of our entrance into the war our indebtedness to European invest ors has been more than balanced by the excass of our exports over imports. After we entered the war we loaned approximately $l0,000,0 100000 to the allies, but up to the present time they have not been able to pay even the accumulated interest thereon. In ad- dition to this amount, we have put bill lions more at the disposal of Europe thru the repurchase of large quantities of American securities held there and by large private investments in for eign currency and dollar bonds, as well as short-term export credits
 The United States has thus become the leading creditor nation, and as soon as foreign governments are pre- pared to pay interest on their indebt- edness, we shall be entitled to receive more that $500,000, 1000 annual interest payments from abroad. While this amount be offset in considerable de- gree by tourists expenditures, freights, insurance, etc, the balance is bound to be in our favor. even tho no part of the principal is paid. A change in the relation of our exports or the reinvestment abroad of iarge capital sums must be expected k Eur ore's debt to us is to be hquIdated. While it is true that the date of such liquidation may be temporarily post poned thru the extension of credits and the adoption of similar devices, it is nevertheless, true that the debt must be paid eventually in goods, or not at all.
 l. is, of course, important that the highest possible volume of export trade should be maintained if we are to have normal production in our mines and factories and on our farms. and if we are not to be forced to scrap part of our new productive equipment. But an increase in inn ports does not necessitate core spending decrease in exports. It is entirely possible that the present rela- tion between exports and imports may be reversed without in any way de- creasing the volume of exports. We can buy more without selling less and thereby enable our European debtors to pay off their obligations without crippling our industries or decreasing our national wealth in order to do so. A study of the development of foreign trade Tn many European countries will show this to be true.
 To Absorb Surplus.
 During the last few years we have increased our production of many commodities far beyond our own ca- paeity to consume and we have been developing foreign markets, especial " m Latin-America. to absorb this surplus. From such markets we im- port many articles, some of which are not produced in this country. If we now. limit the importation of those goods by high tariffs we should do ir- reparable harm to our export trade by preventing the free exchange of those commodities which our customers nave to offer Tn payment for what they purchase from us.
 The business stagnation of today is not due. as some advocates of high protective duties assert. to flood of foreign goods competing with the produce of our own fields and factories Moreover. in large part our imports are non-competitiHe goods. and it is in industries represented by some of these. such as coffee and rubber. in which staRnation is most pronounced at the present time. Aifho if ie esti- mated that our export trade consti- flutes put about lp per cent of the tofai trade of the country. fl ia commonly looked upon ns the nusles for our es~. pluA productive capacity of arrlcul- lure, transportation. and ruanufEct Nno Az 6 efAtl1xee o4 h.ss.zees 2 hs@lEAs Az4a prospeEeaz for<Exn tr.ds