Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1922-01-26

Trust Company of New York City,
one of the largest and most import
ant banking concerns in the world.
He is a student of international Geo.
Monies as well as being thoroughly
familiar with internal economics and
the financial and industrial situation
in the United States What he has
to say of tariffs and similar questions
comes from his view point as an econ
onist and banker and not from the
viewpoint of politician.
| While an economic depression pre-
walls throughout the world, as the in
evitable aftermath of the most de-
! structive of all wars, America can
no more hope to solve its domestic
economic problems alone than the
world can reasonably expect to cure
its nnultifarious economic ills by some
magic panacea In the final analysis
were drawn into the European strug-
| gle because Of the economic interde-
pendence Of all civilized nations; and
the only possible way we can fully
recover from the effects of war is by
international economic cooperation.
Our complete realization of that dom
inant fact is the paramount need of
the hour in this country.
| 40 o,,o
rate abroad until there is more eff
cacious cooperation at home. 1t is a
case Of better teamwork within and
without. 1t is futile, for instance, for
one branch of the government to en-
deavor to facilitate the granting of
credits for prospective foreign buyers
of our raw materials when another
branch of our government insists on
making it impossible for those buyers
to pay us their debts and liquidate the
credits they obtain here. While the
extent to which the War Finance Cor
| poration can aid American and for
eign interests in its commendable eff
forts to supplement private sources
| OF credit III promoting our foreign
trade may be Questionable view of
the abnormal world situation and it's
colossal demands, its services must
unavoidably be negatived to consid-
cradle degree by the enactment of a
permanent high tariff act
Consider Tariff
Consideration should be given to
the effect of high tariff not only up
on particular interests, but upon the
welfare of the country as a whole. We
should not lose sight of the difference
between conditions when the Payne
Aldrlch law was enacted. The effect
of the adoption of high protective
tariff today may be quite unlike the
effect Of the adoption of the PAYNE
Aldrich law and similar measures
passed before the war.
Prior to the war, the United States
was debtor nation and COMPARE
lively little thought was given to the
effect of protective tariff on our ex-
\ port trade. Today, an altogether diff
ferent situation obtains and the adop-
ton of tariff law, with rates high
enough to interfere seriously with our
export trade is destined to caase Sc
rIuos injury TO our numerical and in
-dustrial life.
1t is estimated, that prior to the
war, European capital was invested
IN American securities to the approx
innate amount of zs6,000,0 100000. The
payments of interest and dividends
on this capital after deducting the
amount owed to citizens of the Unit
ed States on account OF their FOREIGN
investments, required the annual re-
n1lttance abroad of between SITS. 900.
oOO,0O0 and 225,000,000. Other paw
ments, such as expenditures of Ameri-
can tourists, remittances by imni-
grants, freight, insurance. etc.
brought the total up to about $500
0oO,OO0. In order that these payments
might be met. it was necessary that
our merchandise exports should ey-
ceed our imports by Approximately
the same amount. And, in fact. the
average excess of exports over i'm
ports for the years 1911 to 1914. in
elusive, amounted to approximately
$550,000,O00.
Status Reversed
Our pre-war status has been com
pleteiy reversed. From 1915 to 1917.
inclusive, the demand of European
nations for goods was so great that at
the time of our entrance into the war
our Indebtedness to European in
Vestors has been more than balanced
by the excess of our exports over i'm
ports. After we entered the war we
loaned approximately $4,000. 900 900
TO the Allies, but up to the present
time they have not been able TO nav
even the accumulated interest there
on. In addition to this amount. we
nave put billions more at the DISMISSAL
OF Europe through the repurcbase of
large quantities of American sac,,r;-
ties held there and by large private
investments in foreign currency and