The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-03-24

nnTAINED on RUIN IS NEAR,
SAYS EXPERT.
by o. K. DAVIS,
Secretary, Naticnal Foreign trace
Council.
EDITORS Ncte-O. X. Davis, secretary
OF the National Trade Council mas re-
turned recently from South America
where he made an extensive survey OF
the nossibilities for trade expansion.
The situation there is similar to the
tsiuat,on n many other lands. MIR. Davis
ha. combined his Information from
world Investigations and the result he
has mt tersely in the following ar
ticle.
The prosperity Of the people OF the
United States depends Fundamentally
upon the ability Of our manufactures
and other producers to sell substantl-
ally all their product. 1t Is the SAFE
of the last 20 per cent which deter-
mines the profit for the whole opera
ton. Only as our producers sell SUD-
stantially all they produce. can tney
occupy their plants approximate luii
time and thus give steady remuhera'
tive empl oymcnt to labor rms ap.
'~e-
as to industrial.
As a result Of plant expansion DUR
ing the war. the productive capacity
~ the United states is far in excess
81 the requirements of the domestic
market. Either the surplus must be
sold in foreign markets or production
must he cutrailed. There is no other
alternative. If the surplus Is thus
sold, we shall have occupation. activ-
fty. prosperity and satisfaction. II 1t
is not sold, it will net be produced and
we shall have unemployment, stagna-
ton, and disaster at home.
am inclined to believe that up
wards of Is per cent of the goods
which the United States il capable OF
producing could new be sold abroad
with immense benefit to every Amer
ican whose labor and machinery would
contribute to the production OF the
goods. 1t certainly seems reasonably
clear that foreign trade must take
over that last 20 per cent OF our pro-
ductive capacity. on the sale OF which
the prosperity of American industry
and agriculture depends. 1t will not
be sufficient for us to- export as much
AZ we exported in 1913; we are already
doing more than that. The foreign
trade of the United States. both ex-
ports and imports. has been larger In
volume in 1921 than 1t was in 1913. Yet
in spite Of this fact. we are every
where greeted with pesstmistic state
ments that our foreign trade has cci-
lapsed and that our commercial isoia-
ton ia now becoming complete. The
truth of the matter Is that the pro-
ductivc capacity of the United staes
has been 80 grealv increased since 1919
that cur formal normal exports are
not nearly enough to enable our FAC
tories and farms to operate probably
at full capacity.
In order to sell our surplus in fore
etgn markets, which Is absolutely vita
tc, our domestic prosperity. we mus
make corresponding purchases abroad
Imports must pay for exports: trade
both visible and invisible must bal
ance. What then can we purchase: II
Is obvious that. for the security ane
welfare of our own agriculture and IN
dustry. cur purchases In foreign mar
kets must consist. as far as possible
Of raw materials and merchandise
which do no tcompete with our owl
: products. But the quantity O. non
competitive material and merchandise
which can safely be imported IN TN
United States at the present time II
definitely limited and cannot equal tn
volume of our own products which
we believe. 1t is necessary to sci
abroad, II, therefore. we are to avota
Industrial stagnation at home, W.
must try to maintain steady excess
Ct visible exports over visible imports
until such time as the increased pow
err of consumption OF the United state
enables us to assimflate the excess 0
visible imports which our position a
a creditor nation makes inevitably
sooner or later.
This present excess Of visible export
over visible imports cannot be ltqut
dated by gold importation--there is no
sufficient gold available outside OF tn
United Statesmen would 1t help Amer
lean agricultural or industry II sue
importation could be made. bel;ev
this liquidation can be accomplishe
safely and probably only by the i'm
portation CT securities: that Ia by tn
sale OF foreign securities to America
investors.
This method would not only main
tain the current trade balance. ana
tend to prevent further distorticn
the exchange, II would also have
beneficial eject upon the present es
change Of situation by reducing til
huge excess OF EXP 'rts built mp durin
the last SIX years. which excess 10, Il
self. q prime factor In producing th
present disparity Of exchange.
American investment in 1oreign q
,uPities % tho mest practical and o.
fecsive uSethod Of dealing with the cs,1
rent sitvation that has been sugges