Newark leader. ([Newark, Ohio]) 1917-1946, 1923-02-09
WAR DEBTS AND THE OUTLOOK

The business outlook is uncertain
because each wage Garner in Europe
and America is paying little each
payday for the war. Payment on this
account cuts down the amount which
can be spent for food, clothing, fuel,
and the other essential products OF
the Industrious activity of the people.
Healthy purchasing power for these
essentialsis the only permanent stlm-
ulus to industrial activity.
The principal nations must pay on
the instalment plan debt totallng
we'll on to $300,O00,000,O00. The per
capita Indebtedness ranges from
about 1925 in the case OF United
States up to more than $1,000 IN the
case of France. Merely to keep even
with the interest payments each per
son is subject to a checkoff of $9.72
year in the case of the United
States, of $33.26 in the case of Eng
land, and of over $50 in the case OF
France. AS these figures are based
on total population, including men,
women and children, it is apparent
that the natural consumers unit, the
family of five, must meet payments
running up from $45 in the United
States to over $3.50 in France.
In this country the result is be-
coming clear. Increased industrial
activity cannot bring both adequate
wages and the profits which are con-
sidered the mark Of good business.
Wages have never been far enough
from the lowest subsistence level to
afford leeway for further checkoff
to pay interest and principal of these
enormous loans.
Present European conditions espe-
cially affects the economic position of
our farmers. The two leading world
authorities on food distribution esti-
mate that during the year ending in
August, 1923, there will be surplus
of wheat above all requirements OF
from 112,000,000 to 120,000,000 bush
els. But it should be noted that these
authorities are not this year basing
their estimates of imports upon the
normal requirments of the several
nations, but are placing the require
ments at what they consider the diff
ferent countries will be able to pur-
chase.
Herbert Hoover, secretary of COM
merce, recently expressed the opinion
that there would be great diminu-
ton of exports of farm products,
principally wheat, to Germany. By
Sept. /, he said, Germany must i'm
port some 100000 tons of food
stuffs, worth approximately $780,
100000, or face a serious food short
age. Thb problem remains, he de-
clared, whether Germany can finance
the credits necessary to obtain these
imports.
The result of the war may be ex-
pressed as more money to bondhold-
ers and less for the purchase of food,
clothing and shelter. If the majority
Of the workers in the United States,
France, England, Germany and their
sphel es of influence can be forced to
work long hours for a starvation
wage, the value of the various ma
tional debts will stand and bank
ruptcy will be avoided. But labor
has no interest in avoiding such
bankruptcy. From the point of view
of the worker there is only one toler-
able solution, and that is a declara-
ton that the promise to pay for the
war on the instalment plan was Sc
cured by certain dealers under false
Lretrr.es, and that the consequent
debt is not a just debt and cannot be
collected either in interest or in prin-
cipal.