The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-12-14
RESTORAT ION0F
EUROPE MAY
HURT us.
Manufacturer Will Probably
Suffer, Bank Economist
Foresees.
Nv MERRYLE STANLEY
RTJKEYSER.

RUhEHSNNs
(Copyrighte. 1929, by Star Company ana
Distributed by Cosmopolitan News
Service.
NEW YORK, Dec. IA. Unless
Europe can return to, the ways OF
peace, permanent deterioration OF
the standard of living Of the inhabi-
tants of the Old World seems In
evitable.
Moreover, without a period OF.
substantial productivity. which de-
ponds upon peace. Europe VIII have
difficulty in meeting its large bond
ed indebtedness and other 1ixeo
charges, including PREPARATIONS.
The ebb of European economic
maladies affects different American
industries differently. Europe's trou-
HES tend to curtail it's capacity to
h1Iv wheat. livestock, agricultural
machinery, cotton, copper, leather
and fertilizer in the American mar
ket. Europe is buyer OF raw
materials here, but is not even IN
good times an especially slgnl1lcant
purchaser of manufactured goods.
absorbing not more than I per cent
of the output OF our plants.
In manufactured goods Europe Is
orr competitor rather than our
customer. Some leaders of finance
believe that a sudden restoration
Of full prosperity in Europe would
cause q shock to the American
business structure and result In
q slump in certain lines.
DIR. b. M. Anderson, jr.. econo-
mist of the Chase National Bank,
attempts to lift the curtain which
obscures knowledge or the future'
saying:
to full productivity, involving
great increase in the volume OF
goods produced and consumed IN
the world. we may, / think, look
forward to generally lower prices or
goods, in terms of gold, than now
obtain. This may be accompanied
by even higher prices of many farm
products and raw materials, but the
level of prices of manufactured
goods will probably go lower.
"This would involve q shifting OF
our industries. Those lines of manu-
featuring production, in particular,
which use great deal Of labor In
comparison with the capitals which
they employ, will probably be obliged
to give up part Of their labor and TO
contract their operations. Labor, re-
leased in the United States from
some lines of manufacturing, will
shift back to agriculture to- the
building trade, to copper mining and
/ to other lines which will be stinulat-
| ed by the restoration of Europe or
by a lower level of costs. The change
| will make for permanently bal
anced industrial situation"
What, If, on. the other hand, con
ditionA continue to deteriorate in,
stead DE to improve?
Then the United States and other
parts of the world will have to shift
their productive forces, reducing the
output over a period Of years Of GER
tain farm products and other raw
materials and heightening the pro-
| duction of manufactured goods.
The American farmer and miner
| would gain more directly from a Eu.
ropean revival than the manufactur.
err, who would be affected indirectly
in SO far as the purchasing power OF
| farmers and extractors would be en-.
HANGED.
Meantime, instead of sitting back
naively waiting for the politicians OF
Europe to determine the course of
future events, American business
| ought to intensity its efforts to in
crease sales of goods in South and
Central America, our natural mar
kets, and the Orient.