The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-11-23


Montana. 1t is a reflex OF a condition
that is becoming acute throughout the
United States. With any general re-
vival of industrial activity, the press.
ure by employers to man their plants
will doubtless result in wage level.
that now seem fantastic. Now l am
not complaining about this prospect
I am only calling attention to the facts
we must face. The restriction of i'm
migration in the eyes of its chief ad-
vocates has for its chief advantage the
fact that it will raise the wages an,
the standards of living for the Lowest
and most hard pressed group in ou
social system. The claim is thorough
ly well founded. 1t will not only raise
wages. but will automatically and di-
rectly raise the cost of living for every
article in which manual labor is even
a trifling factor. Indirectly of course
it will raise the cost of living through
out the whole economic structure.
international Debts.
Il have discussed these factors be-
cause they are inextricably tied into
the question of international debts and
the policy we Should. pursue in deal
ing with our governments loan to the
allies during the war The principal
thus loaned was roundly $4,000, 900.
Great Britain got "A billions, France
g billions. Italy say a billion and Bel
GUM a third of a billion. The rest
was in smaller amounts to varied al
lies. With the accumulated interest
they stand today at nearly II billion
dollars, or just about half of our ma
as to our right legally and morally to
collect those debts. They were made
possible by the sacrifice of untold mill
lions of Americans, who went without
meat, sugar, white bread, heat and
clothing in their sacrifices to make up
the funds which they turned over I'M
stintly to our associates in the war.
whether the debts due us by our
allies can be paid, and whether it is
desirable that they should be collected.
is another question. Congress has ap-
pointed a commission to arrange for
repayment with interest in a term of
20 years Great Britain, which a few
months ago started a discussion with
the idea of getting us to cancel the
world debt, has changed front COM
pletely The most notable event of
the recent convention of the American
Bankers association in New York was
the address by the Right Honorable
40 nj fha
great London Joint City & Midland
bank, which stands among the fore
most financial institutions of the
world. Undoubtedly his speech re-
fleets British official opinion. He de-
clared that Britain was able to pay her
debt to America and stood ready to
satisfy this country in that respect.
Britain can pay, he says, because it
still has foreign securities which it
can liquidate to pay its bonds to Am
erica AS regards France and Italy
and the smaller European states, he
calculates that their ability to pay is
limited to the small amount
of foreign securities which they can
still liquidate to apply on payment to
America The total is Insignificant.
As regards Germany's ability to pay
the indemnities of 80 billion dollars
charged against her by the allies, he
the case practically hopeless.
How Debts May Be Paid.
There are two ways in which in
ternational debts can be paid. One is
by consignment of gold. There is no
where enough gold in the world to
meet fraction of these international
debts The bulk of it is already in
America. As a matter of fact we
have too much gold now We would !
be better off if it were distributed in
part throughout Europe as a basis for |
the rehabilitation of European finance (
and industry. Only one course is open
for us to collect the debt That is by |
receiving merchandise. In view of the /
facts that our economic policy today |
rests upon the exclusion of foreign !
and the granting of a
domestic monopoly in trade to our
own manufacturers, it is difficult to
see where we shall get in that direc-
ton. To receive 400 million dollars
more annually as imports from Europe
to cancel the current interest on our
loans would dislocate our whole eco
nomic scheme.
"Since we can not be paid in gold
and we will not be paid in merchan-
disc. what is left? Simply this: We
must leave our principal stand as
foreign investment. The interest L
thereon, instead of being brought back
to America either in the form of gold
or merchandise, must be reinvested
within the debtor countries on speci-
fc securities. We will follow then the
practice of creditors the wide world
over. who leave their interest to COM
pound. This will not refund the Lib
erty bonds held by our people. 1t will
not relieve us from raising by taxation
The amounts necessary to pay the cur
rent interest due on those bonds. 1t