The Rock Island Argus and daily union., 1922-02-22
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to food American markets and hurt
American industries, the tendency
would be to forego payment and
keep American industries going.
But there is line between two
extremes-a line below which
America cannot go and yet give
ample protection to American in
dlstries, or above which it is still
possible for Europe to find a mar
ket for her commodities in the
United States It's the difference
between a prohibitive tariff and a
competitive tariff It's hard line
to find, but economists never have
easy tasks anyway.
The effect of the statements by
former Minister Loucheur Of
France and Ambassador Ricci of
Italy will be to crystalline opinion
on the necessity of taking into con-
sideration the foreign debt phase
Of the tariff question. The United
States Chamber of Commerce and
many foreign trade organizations
have been saying the same thing
as the French and Italian spokes-
men and have been urging caution
in handling the tariff, an influence
which has been responsible for the
successive delays encountered by
the high protectionists advocates in
the last year. If it had not been
for the foreign trade question the
Republican party would long ago
have passed an old-fashioned tariff
The great game of excuses and
pretexts, political and economic,
for non-payment of the American
debt has begun. The American Of
! fensive has hardly been started,
though Senator Medill Mccormick
of Illinois recently gave Europe a
surprise by putting through the
senate without any difficulty what
soever a resolution inquiring how
European governments were spend
! ing their money. Europe took Of
fense at that-the French press is
still saying harsh things about M.
McCormick's query. But when the
American funding commission
starts work, it will ask more per-
tinent questions and tell Europe
some fore facts about the origin OF
| the ten billions which were lent
during the war. In the first place,
America wants to know why SO
much is being spent on land arma-
ment and why some of that fund
/ could not be used to pay interest
and principal on the allied war
debt. France says she needs the
army because Germany will not
pay. America and Great Brit ain
| probably will be compelled in the
! end to draw from Germany such
definite assurances with respect to
the amount she can pay as to make
unnecessary the maintenance Of
large military forces on the con-
| feet that the American government
fact that the American governme II
didn't take the ten billions out OF
| surplus fund or a rich treasury
but borrowed it from twenty-seven
million persons, men, women and
children-has yet to be explained
| to the European financiers. The
American government cannot CAL
eel without the consent Of virtually
! the entire electorate which besid es
losing on it's original investment
would have to be taxed further tC
pay interest or principal on Tho
Liberty loans themselves. Such q
course isn't for a moment consid-
cred here.
In answer to the French and
Italian pessimism, the tendency II
official circles is to tell Europe no
! to be so disconsolate about it's OWL
! future and to point out what re,
! markable progress has already
been made in reconstruction. The
recovery of Europe is in many re
/ spects greater than was anticipat
ed. In such circumstances instea(
of imagining that 25 years hence
/ Europe will be bankrupt the Amer
lean debt commission will proceed
on the theory that Europe is strong
enough and resourcefuI enough Il
pay her debts if she is given time
and that no doubt will be granted