The Powder River County examiner and the Broadus independent., 1922-01-06

uItufeS OF american TOURISTS, remit.
tances by immigrants. freight, insur-
! ance. etc. brought the total up tc
about $s0o.o00.o00. In order that these
payments might be met. was neces.
| sary that our merchandise exports
should exceed our imports by approxi-
natesy the same amount. And, in fact.
| the average excess Of exports ever i'm
ports for the years 1911 to 1914, inclu-
sive. the demand of European nations
| for goods was SO great that at the
| time Of cur entrance into the war our
Indebtedness to European INVESTORS has
been more than balanced ty the ex-
cess Of our exports over IMPORTS. After
| we entered the war We loaned approx
mately $4,000, ,0oO. 900 to the Allies, but
up tc the present tine they have not
been able to pay even the accumulate ed
interest thereon. In addition to tn 3
amount, we have put billions more at
the disposal of Europe through the re-
purchase OF large quantities OF Ameri-
can securities held there and by large
private investments In foreign cur
rency and dollar bonds. as well as
short-tcrm export credits.
The United states has thus become
the leading creditor nation. and as
SOoV as governments StCe pre-.
pared to pay interest on their indebt-
edness. we shall be entitled tc receive
more than $500 Ne0 900 annual interest
payments from abroad. While this
amount he offset in considerable de-
gree by tourists expenditures, freights.
insurance. etc. the balance Is bound
to be in our afvor. even though no
part Of the principal is paid. \ change
;,, h., r.1a >f 20.
imports or the reinvestmene abroad of
large capital sums must be expected if
Europe's debt to US is to be lqudated.
While il is true that the date Cf such
liquidation may be temporarily post
poned through the extension Of credits
and the adoption of similar devices. it
is. nevertheless, true that the debt
must be paid eventually IN gods, or
not at all.
1t is, Ct course, important that the
highest possible volume of eAport trade
should be maintained if we are to
have normal production in our mines
and fact"I'i.s and on our farms. and if
we are net to re forced to scrap part
of our new productive equipment. But
an increase in imports does not neces
state Il corresponding decrease in ex-
ports. 1t is entirely possible that the
present relation between exports and
imports may he reversed withc ut in any
way decreasing he volume of exports.
We can buy more without selling less
and thereby email ,e our Eurcnean debt
ors TO nav off their ohIga ions with
,u, crippling oUr industries or de-
creasinG our national wealth in order
Ia do SO. \ study of the development
countries Will show this tc be true.
During the las; few years we have
increased our production Of many COM
molities far beyond our own capacity
to consume and We have been develop
ing foreign markets, especially in La
tin America to absorb this surplus.
From such markets We import many
articles, SOME of which are not pro-
iuced III this country. II WE now limit
the Importance of tGos. goods by high
tariffs We should do irreparahle harm
10 our export trade By preventing the
fire. exchange of those commodities
which our customers have 70 offer IN
payment fer what they purchas. from
us.
The business sta1Gation If to-day is
NOT due. as some advocates of high
protective duties assert. 10 "A flood of
foreign goods competing with the pro-
duce Of Our own fields and factories.
Moreover. in large part our imports
aro non-competitiSe goods, and 1t is
III Industries represented by Scme Of
these. such as coffee and rub.r. in
which stagnation IS most nlunoUnccd
at the presnt time. Although it is es-
t!ma;ed that our export trade cOnsti-
tutes but about 10 per cent of the to-
tai rale OF the tcunry, il is commonly
looked upon as the outlet for our sur
Plus productive capacity nf agricul-
ture. transportation, and manufacture
and as a stabilzer of business. \
healthy and prosperous foreign trade
has become Of increased Importance TO
Il great many Of our citizens. 1t is
consequently Of serious domestic con-
cern.
While it is possible. that Il high pre-
tective tariff on some articles may be
prorsr there is surely nothing in our
economic situation which justiti.s the
adoption Of Il general tariff policy
tha: WILL in effect, erect q barrier
around our ports and isclnt. us COM
mercial!y.
tt would seem I. be equally illogical
for congress to endeayor to reduce the
oner"us taxation. which is handicap
pin" business, If il continues TO spend
the taxpayers money extravagantly
1t should be rsmhemhercd that gov
eminent expenditures for 1929 ex-
ceeded those from 1871 to 1865. inclu-
sive, period Of II years, Further
more, It is Imperative for the taxpay-
ers OF the country seriously tc. consider
the fact that obligations arising out
of the recent and earlier wars, together
with the current expenses Of the war
and navy departments, constituted a2.S
per cen, Of the fetal appropriate ns for
1890.
Congress las appropriated for the
and al establishments for
the fiscal year la2l.2 the sum of $685.
s37.9s9. If we take these epprnpria-
tions as fairly representative OF our
annual military and naval expenditure
In the future it will be seen that, |
while Germany is paying s2S, ,OOO, ,OOo,- ,
600 as interest ana amortization of her |
present rpOass finrS -