Evening star., 1923-10-05
Can Europe Hold Together?
XXH-(The LAST Americas Stand in Europe
by JOHN r. SINCLAIR

goods. for only by admitting such
her debt to ,us-e We must admit the
goods and accept theS eSconsequsnces :.
Europe is trying hard to cut down
her buying 'front.' The United States.
aso se ass. n s is
purchased 332.0o0.o0o pouhds Of beef
from US and a little less than 1900, 900
IN 1922. Europe purchased 1928, ,000,-.
o00 pounds of bacon in 1919. but only
pened? The American live stock in
dustry became utterly demoralfxed
ana the valve of our live stock
dropped in.thisatime $3.s11, ,000, 900. :
woftd Markets Bound Up.
Let us take the case OF the small
grain farmer, he who raises wheat,
oats. barley, rye and fax. Although
the American small grain farmer
sends abroad only about one-tenth
of his total crop. the price in America
is determined by the, price paid in
the world market. A ascent drop
abroad in, all cereal prices in 1924.
by reason Of the further dwfndling Of
European purchasing power, would
result in less Of $1,100. .000, 900 to the
American small grain farmer. - =
want to make this point especially
clear Under such a financial sink
ing neither Europe nor America is be-
loss is heavy and impressive, still to
Europe the loss, based on American
prices. is even more disastrous, for
her purchasing power is contracting
faster than the American values are
dropping. 1t is a situation where
both creditor and debtor nation suffer
rom the same malady. but not to the
same degree. -
The inference is, therefore, clear
that if a policy undertaken by the
United States results in further de-
creasing the purchasing power Of Eu-
rope in such a way that our national
income shrinks more than the amount
Of interest received by US. say, $780,
100000 q year, the nation as whole
would lose more than it gained by
vantage Is gained if taxes are cut
100000 a year and the national
income paying such taxes Is reduced
two or three times $600.000,000 a year?
In other words IL the present
American situation has been caused
in great measure by these two fac
tors of Europes fast decreasing pur-
chasing power and, from Europe's s
standpoint, Americas fast increasing
prices, how much more serious would
the problem be in increasing still
further goods-value losses by adding
this further mountain of debt of from
500 to 1000 millions year to be paid,
as we have already shown is the
excess of goods sold over. goods pur-
chased from us?
/ Exports Of United states Fall.
In 1920 the total export and i'm
port business Of the United States
totaled s13.s42.ooo. 900; it went down
TO $40, 0,I70,eoO, eco in 1921, and dwindled
to s6.s7s. .0e0,0 in 1922. The record
| for 1929 is expected to be worse.
Business lis slowing down. Farm
ers and live stock men have as a
result been ruined by the hundreds
of thousands--foreclosu bank
ruptcies, suicides. The disease of
Europe has spread to America. The
manufacturer will be next to suffer.
He cannot keep UP on the present
level with the world market slipping
away.
Production is low now, but it will
continue to get lower and lower
until, forced by stern necessity,
America will call worlds economic
| conference. which will pot adjourn
until reparations. war debts, military
expenses and the trade barriers of
| the world are readjusted. We have
much to lose, but great deal more
to gain. 8. Z
tions that Europe needssft is not
court of arbitration, either. 1t is an
| econofaic United States of Europe
that she needs and must, have.
Cut away tariff barriers. cut away
| military expenses, cut away the inn
possible debt charges, restore the
| wrecked international machine for
| trade and good will, and the average
man in the world. now so discour-
aged, would feel the effects immedi-
iately. That. to me, is the all-impor-
tant next step.
I cannot close this series of arti-
| ,cles without saying word to that
American who believes We ought tc
! leave European affairs alone and lei
| her work out her own problems
! True, we can probably readjust our
selves and after a generation Of in
| tense hardship and terrible suffering
/ place a Chinese tariff wall about our
] selves so high and so powerful thai
hunger and poverty of Europe. the
i culture storehouse Of the last thou
sand years. As a self-contained eco
| nomic unit we could probably live
after the readjustment period was
| over, But do we want TO do it:
| Can we turn our back -on Europe
! now when she Is in danger of losing
| her economic life? Are we going tc
quit. or are, we going to translate
| into action the abstract things calico
| Justice and good will? It seems to
/ me we must do the only thing to do
| and that is to help keep the fires OF
civilization burning. We must not
| let them die. We cannot play the
| part Of the selfish rich man. Let us
| accept the call, proud of the fact that
! It is ours to receive; rekindle the fires
/ Of hope and courage everywhere b5
showing by our own example that II
| is better TO cure than to injure, better
| to love than to hate, better to CO.
operate than to fight, better TO give
| than to receive.
! (The End.)
| downright. 1923. in United States and Grea
Britain by North American Newspaper
Alliance. All rights feserved.)