Arizona republican., 1922-03-02

the same as other states. 1t is a
natural reaction owing TO the abnor-
NAL expansion brought about by the
war.
"The economic problems are not all
in manufacturing and merchandising.
We have changed in our methods OF
living in many ways. For example,
our farmers alone are using 2,5O0.0
automobiles. 1t requires for their
nnaintenance-tha is, for tires, gaso-
line and general pkeep-about $500
year. which is total OF Sl,2oO, ,OVO,- :
600. This figure OF expense equals
approximately the total amount re-
ceived by farmers for the entire lJzV
wheat crop of 100000 bushels at
sl.5O per bushel. This shows that
there are new problems to solve on
the farm as well as in the factory.
II am optimistic as to the future.
We have many foreign and domestic
problems which affect the farm and
factory, and they seem harder TO
work out now than they did a few
years ago on account OF the unusual
period of prosperity which we have
had. However, I firmly believe that
there are no hard times" coming.
It's only the soft times" going.
Arizona Has Part
"Your state is destined TO play an
important part in our country's de-
velopment. Your resources are un-
limited. 1 attended the annual, din
ner of the Los Angeles chamber OF
commerce last week and heard the
new president, Mr.. F'redericks, en-
Enthusiastically discuss the Colorado
river power and irrigation project,
which your people are so interested
in. and which, If completed. Will ac-
complish wonders for your state.
Your concrete roads are solving your
transportation problems. With plen-
ty of water TO irrigate, thousands OF
acres of fine land, and your prices OF
farm products gradually increasing
and your copper mines starting 70
operate, YOU have many reasons 70 pe
optimistic.
"Our daily papers are publishing
many columns Of foreign news and
the public is becoming informed on
daily world events. Manufacturers
and farmers who has surplus goods
to sell that cannot be absorbed In our
domestic market are today familiar
with rates of exchange in European
countries and living In hopes for the
past year that an improvement might
develop that would enable them 70
sell their surplus products.
while many of us are optimistic
as to business conditions in the
United States, the thinking men OF
the country who are studying condl :
tions from an international stand
point, realize that until European
conditions have improved, we cannot
expect American business TO become
normal.
War Debts
"Our associates IN the war owe US
ten billions OF dollars. OF Wnlcn
Great Britain owes one-hah. While
/ am in favor of our war debt pc
ing paid in full believe that OUTSIDE
of the amount Great Britain owes US:
we will never receive one dollar OF
the principal or interest from the
other nations. France. Belgium aho
Italy owe Great Britain ten billions
of dollars. without including interest
and Great Britain is not taking Sc
riousiy the question Of collecting the
debt; in fact she is willing now 70
discuss the question of cancellation,
IL ali the nations interested would
meet for that purpose, which l pre-
sumo would include the United
States. Great Britain knows the true
conditions OF Europe and RECOGNIZES
the fact that the chances for Europe
paying her war debts, even with Ger
many paying the indemnity in full' II
very remote. Even Great Britaln,
which is the one outstanding country
that is slowly getting her house IN
order. has unusual conditions con-
fronting her.
Before the war she was 3. creditor
nation to the extent of IS billion ooi
lars. and she drew from her lnNes.
ments abroad an interest of 5000, ,0eO-
600 million dollars annually. All tnls
was spent in Great Britain. II went
one way or another toward the pay
ment of labor. 1t is now mostly dis-
sipated. Great Britain saved annual
lv before the war $4,000. .oOO.oOO ana
invested this abroad or in her owl
country, which led TO increase OF nsl
exports and development OF her IN
dustries. 1t viii require many years
before she win be in her FORMER
strong position.
Frances revenue is less than one
half of her government expenditures
Italy is in a similar position. These
countries and others in Europe are
issuing paper currency to meet thelI
every day needs to maintain their
standing armies Of 100000 of which
France and Italy have 1,25O,OOO.
Must Pay
The reparations commission has
recently declared that Germany can
pay the indemnity due the allies
! France insists that the payments be
made in gold and materials under the
Wiesbaden agreement, which pro
vides for the delivering of goods dur,
ing a term OF years to the devastated
| region of France. Great Britain Is
! fearful that IL Germany should paw 3
large part or the debt in goods, there
/ would be an influx OF German pro-
I ducts that would materially affect
! their industries at home, as we'll as
| her foreign markets.
! The disarmament conference al