The Washington herald., 1922-02-26

II >ENSA 1AOAoNyPC
pity that the. conviction 10 forced
on US that had we acted with
promptitude and intelligence in our
own interest. this recovery today
would be still farther perfected. 1t
10 q pity that one Is forced to be-
lieve that had the American genius
for organization been granted free
hand in the measures of restoration
In Europe, backed by the enormous
natural resources of this country,
administered by the trained bus
iness intelligence of people
trained to large affairs. that there
would have been no Industrial col
lapse throughout the world, such as
has written its dark trail Of dis
tress and disaster.
Tt is discouraginE that the
political restrictions of q great
democracy could not be lifted until
that people had experienced two
years Of individual suffering that
brought home to them the COM
,mercial and Industrial unity of a
whole world 1t is a pity that a
democracy whose administrative
policies must be based on the pub
lie opinions of a majority should
require so long a period of educa-
ton before that public opinion can
be crystallized in action.
How Farms Were Hit.
TT Is nevertheless a compensa-
tion that the social structure of a
free people, operating thus to make
their action less direct, and often
less effective. does even at the same
time inspire an initiative and re-
sourcefulness in its individual citi-
gems which makes for fnal accom-
plishment.
For Instance. 1 conceive that
you agree with me that, by apply
Ing the sound sense of an enliRh-
tened banker in treating the az
fairs Of embarrassed debtors, we
could have injected our aid into
Europe with material resources
that would have shortened the road
10 recovery, without any more en-
tanglement than must exist be-
tween customer and client. You
VIII agree with me that when this
leadership and this aid, not forth
coming. failed to prevent the in
dustrial and financial prostration
OF Europe, that its most certain
and most paralyzing effect fell on
American agriculture dependent
on Its surplus production. When
under the pressure Of surplus sup
plies the American farm price fell
below a parity with the price in
dex of those things which the agri-
cultural industry must buy, then
we had situation which neces-
- " ~
Of many industries that manufac-
ture for the farm.
Lack of Balance Menace.
"As long as this condition main
tained, we could not hope for
healthy Industrial life at home.
Any process of defation which put
an unusual burden of price depreci-
alton on one industry, as against
another, could mot help but be a
symptom of economic lack of bal
ance which would react unfayor-
ably on all industry. This lack of
balance-was a very real menace to
the American farm, and existed
without question up to recent
weeks. You will agree with me
then, that perhaps the short cut
to the re-establishment of healthy
revival of trade at home would be
the restoration of a proper relation
between farm prices and the COM
modify value index.
Six weeks ago this was the world
situation: On the American farm a
great surplus of grain production.
selling in the market. under the
pressure of its own supplies. at less
than the cost of production, and
far out Of balance with the prices
of those things the farmer had to
buy. Across the seas. in Russia a
famine. partly economic and partly
climatic. threatening the total ex-
tinction of 100000 of human be-
ings. whose lives could be preserved
by the unstable surplus burden
ing the American farm. I conceive
that 1t would have been a grave
disaster had individualistic America
found no way to bridge between
these two extremes.
Gap Was Bridged.
"Communistic Russia had failed
utterly, even in the preservation of
the bare existence. Individualistic
America, with. its so-called capital
istic practices. preserving its peo-
pie on the highest general standard
Of living in the world, must ignore
both the humanitarian impulse and
its own selfish interests running
parallel with It; or II must md a
way to bridge the gap. In Decem-
ber, the American Congress acted
with promptitude and generosity,
appropriating s2o,ooo.oo0 for the
purchase of American corn and
seed for these misled unfortunates
OF Russia.
'The American in whose hands |
was placed the administration of
those purchases and shipments,
used that gift to secure from the
rulers Of Soviet, Russia an almost
equal appropriation from their own
depleted treasury. In December
and early January large purchases
Of American grain were made for
shipment to Russia =, remember
hitherto the largest exporter Of |
grain in the list of world raisers.
Day Of Recovery.
That day began the recovery Of
the American farm. World condi-l
tions had been steadily rrowinp
better, under the common fmpulse
Of man, everywhere, to work and
to produce. On that foundation,
the accent. startling to the werld. |
that q country hitherto a Great
reservoir Of food reserves nust |
draw upon the sources az xupplv ar.
dfnarfly its keenest co-..tt.o-