The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1922-01-24
Takes Issue
With Ideas
of Mr.. DYE
NJ AMATEUR ECONOMIST

Tho Star on January ~ print
Ell q letter usking uade with
South America and falling Va To
forget about Europe.
certainly agree with Mr.. Dye.
the writer. that n Erea; orpor.
tunlty exists In South America
but do not believe that Il will
be easy for the United Stats 10
develop this opportunity at pres.
emit or. n We do Try 10 profit
by ,his opportunity. that we can
forgct about Europe for . min
uta
suppos~ that Seattle bankers
were TO make y loan 10 . com
pAny In nrsxti OF Sts. oco. eco. 10
build railroads. what would hap
psnr II the brazilian company
was 60 buy the materials for
tbs railroad on . competitive
market II would probably Use
German goods
The Is million dcfiar credit
would rass from Brazil 10 Ger
many. whnrs on tho next rrpa,
ration payment II would DO
handed over 10 England. Eng
land would then pass IL hack
TO the U. s. an interest on her
debt TO us.
Suppose an American goes 10
Braxil and buys q million dol.
lars worth OF coffee. Beonuss
OF cheaper prio~s In Germany
tho million goes there To pay
for manufactured goods. where
IL IL passed TO England or
France. who In turn passes II
back 10 the Y. 4. as payment
on th@lr inter~~, debt 10 un
A. long AZ the exchange rate
fayors tho U. r.. an II does at
present IL viii b cheaper for
the world 10 buy from Europe
than u will be to buy in the
u. -. and the exchange will be
greatly In our favor az long as
the European countries have 10
pay US large sums In interest
and principal. unless we buy
lots more than we sell TO them.
II the above reasoning IA cor.
rect, Y. 8. investments In South
America viii greatly help Ger.
many and other European coun.
tries 20 build up business and
commerce. with 4. A., which in
turn viii help Germany 20 pay
her indemnity and help France
and England to Ray their interest
TO us. But don't believe that
II assures a market for Amer.
lean goods.
Mr.. AarcoHscn, In the Satur-
day Evening Post OF January
I'll. gives US the following fig
ures an TO labor costs In tho
u. s., England and Germany.
These costs were furnished by a
firm operating drug factories in
New York. London and Ham
burg. The same kind Of labor
that costs sit per week in New
York costs six dollars in London
and only ono dollar In Hamburg.
As long M costs are much
higher In the u. Il. than they
are IN Europe we will find
European goods barring the way
In tho farthest corner OF the
world when we try to market
our products.
Another reason why We can
not at present build up a great
trade with &. A. In our lack of
any recognized foreign policies.
Tho truth is that VIC don't
know enough about world eco
Monies 10 keep our politicians
from balllng up everything
every four years
We spend rs billion dollars
and 100000 lives and more To
prove to the world that we are
for tho right and are willing 10
fight for the right. and a Har.
vey comes along and tells the
world that we were fighting
from fear and not because of
principle. and the trouble In that
some Of us nearly believe 1t our.
selves. IL we doubt ourselves.
how can the world have any
confidence In us7
The first thing for us to do
" TO settle our merchant ma,
rine question. then to settle our
tariff question. and then to de-
termine what Is the wlsest
policy TO follow as regards the
collection OF our debts. When
lheso questions are settled we
have good chance TO build up
he world trade that we should
nave