Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-09-14
American Business Conditions

(WashinGtOn POst
I A most interesting interview has
been given out by Sir Arthur Balfour,
president of the associated chambers
! Of commerce of Great Britain. giving
/ his views of the United states after
I n four weeks visit in which he met
! leading business men and flnanCiers
I over a large area of this country. Sir
Arthur said he would not change
England'S position for Americas al
present, and that Fundamentally tho
British situation was much Soundcr
, than the American. lie mentioned
the high cost of living in this coun-
try. and referred TO the high wages
paid in the building trades. lie looks
for n fair internal trade in the Tn
itcd states for the next eighteen
months After that" he said, Il
think they will so through three or
four depressed years, which will he
the only method Of rcestablishing the
economic situation and getting them
back TO n competitive basis.
THE cost of living and the cost of
production in America are so high,
said Sir Arthur. that | am certain
that. except in a few selected articles.
We can compete with them for the
export trade of the world
1t is true that the cost Of living
anu t+f ''s~t VI t'i'NNAN 'ApAA g. = 'i'S7i'
in the United states. 1t may be that
Sir Arthur Balfour is a true prophet
and that there will he 4 business de-
preston in this country. No one can
Cainsay the fact that wages in the
building trades are too high and
should come down. Americans. how
ever. will not aGree that Enaland's
position is better than Americas,
when the unemployment figures in
Britain. as given in the London
Times on August %. are 1.21l, 900.
and growing larger again. There is
no unemployment in the United
states except possibly a few build
ing trades workers who have been
receiving from SO to $25 a day for
eight hours work and whose eXaC-
tons have caused building entcrpris
IS to Slacken down somewhat. But
this is excessive prosperity, not lack
of it, and the remedy is soon applied.
1t is when Sir Arthur Balfour goes
further in his interview that he de-
stroys the value of his statements.
He SAYS:
Undoubtedly. the whole situation
has been very much aggravated by
the Fcrdncy tariff. | am told that
the farmers, as a result Of the Ford
ney tariff, will pay sS00,000,000 more
for their machinery and general farm
requirements. This already is Caus-
ing a very great unrest among them.
particularly as it is coming at a time
when the price of wheat is falling
rapidly"
Sir Arthur added that the Fordney
tariff was restricting trade between
the United States and foreign Coun-
tyies, thereby affording Britain
chance TO compete.
i. nHl that tl1D NrnSi1opi Of tho
associated chambers of commerce of
Britain should be so ignorant of the
Fordney tariff. The American farm
crs have not lost sS00,000,0O0 or any
other amount because of the tariff
Sir Arthur Balfour should know that
farm implements and all parts of
farm implements are on the free list
Therefore the farmers did not pay
out a cent in duties. The total out
put of farm implements and machin-
cry in the United States last year
was $20o,00O,O00 less than the sum
which Sir Arthur says was paid by
the farmers.
Why did not Sir Arthur look over
Britain's exports of farm implements
and machinery? He would have
found that such articles were not
exported to the United States at any
time, before or after the Fordney
tariff went into effect, but that, on
the contrary, American farm imp1e-
ments and machinery were imported
by the British colonies, practically to
the exclusion of British-made arti-
cles. lie should have inquired into
the prices of farm implements and
machinery in this country. lie would
nave found that the peak prices in
these, as i'll most other articles, were
IN 1919. before the Fordney tariff was
enacted, and that the prices now,
under the Fordney tariff, are lower
than they have been at any time
since the war.
AS for the trade of the world, the
United States is doing very well, de-
spite the theory of Sir Arthur that
the Fordney tariff restricts trade.
The United States is selling and buy
ing more from foreign nations than
ever before in peace times. The