The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1922-01-05
INTERNATIONAL CO-OPERA-
TION THE NEED OF TODAY

IED OF TODAY
ments might be met, it was necessary
that our merchandise exports should
exceed our imports by approximately
the same amount. And, in fact, the
average excess of exports over i'm
ports for the years 1911 to 1914, in
elusive, amounted to approximately
S550,000,000.
STATUS REVERSED.
Our pre-war status has been COM
pletely reversed. From 1915 to 1917,
inclusive, the demand of European
nations 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 excess of our exports over i'm
ports. After we entered the war we
loaned approximately Sl0,0O0,0OO,-
900 to the Allies, but up to the pres
ent time they have not been able to
pay even the accumulated interest
thereon. In addition to this amount,
we have put billions more at the dis
posal of Europe through the repur-
chase of quantities of American Sc
curities held there and by large pri-
vate investments in foreign currency
and dollar bonds, as we'll 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 re-
ceive more than $780, 900 annual
interest payments from abroad.
While this amount will be Offset in
considerable degree by tourist ex-
penditures, freights, insurance, etc.,
the balance is bound to be in our
favor, even though no part Of the
principal is paid. A change in the
relation of our exports to our i'm
ports or the reinvestment abroad Of
large capital sums must be expected
if Europe's debt to US is to be liqui-
dated. While it is true that the date
of such liquidation may be temporar-
lily postponed through 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.
1t is, of course, important that the
highest possible volume of export
trade should be maintained if we are
to have normal production in ou.
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 i'm
ports does not necessitate a cores
ponding decrease in exports. 1t is en-
tirely possible that the present rela-
ton between exports and imports
may be reversed without in any way
decreasing the volume of exports.
We can buy more without selling less
and thereby enable our European
debtors to pay off their obligations
without Gripping our industries or
decreasing our national wealth in
order to do so. A study of the devel-
opment of foreign trade in many Eu-
ropean 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
pacity to consume and we have been
developing foreign markets especial
ly in Latin-America, to absorb this
surplus. From such markets we I'M
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-
Ireparable harm to our export trade
by preventing the free exchange of
those commodities which our GUS
toners have to offer in payment for
what they purchase from us.
The business stagnation of today is
not due, as some advocates Of high
protective duties assert, to a flood Of
foreign goods competing with the
produce Of our own fields and fac
tories. Moreover, in large part our
imports are non-competitive goods,
and it is in industries represented by
some of these such as coffee and rub
Der, in which stagnation is most pro-
nounced at the present time. Al
though it is estimated that our ex-
port trade constitutes but about 10