The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1924-08-27
Dawes Pact Will
Revive Trade
PLAN TO BRING FINANCIAL
STERILIZATION OF
GERMANY.

low the sterilization of the European
economic situation which is expecter
under the operation Of the Dawes
plan, according to Alan G. Goldsmith,
chief Of the European division of the
department of commerce. Mr.. Gold
smith was one of the experts associ-
ated with the Dawes commission at
the London conference.
"The adoption of the Dawes report
by the London conference has meant
the conclusion of perhaps the great
est effort since the war to bring about
financial sterilization in Germany and
economic reorganization in Europe as
WHOLE" said Mr.. Goldsmith.
European Imports to Increase
"The sterilization of the European
economic situation will result in re-
vival in world trade, in which our
country is bound to have it's share.
According to recent estimates, the
actual quantity of merchandise now
entering into international trade is
around only 80 per cent of prewar
figures. This slowness of business
conditions which has persisted five
years after the conclusion of the war
is chiefly caused by the lowered stan
dards Of production and consumption
over a large part of eastern and CEN
trail European economic derange-
ment which has been awaiting a set
Element of political problems. Nat
urally, European business stability
will have as a result increased i'm
ports of European goods. This will
bring with it sharper competition ir
outlying markets, but at the same
time raising of the consuming power
Of the entire world, particularly the
disturbed areas of Europe and the
increased demands for goods will
cause a general rise in the standard
cost of living all over the world.
South American Trade to Grow
Europe now takes one-half of the
United States one-third of all goods
imported for our domestic consump-
ton. Leaving out the broader aspects
Of the problem, it is only reasonable
to believe that we could not help but
benefit by an improvement in our best
market area which consumes so great
volume Of our goods in proportion
to those it ships to US. The COM
petitive factor has been, perhaps,
overemphasized when it is considered
in the light of possibilities for trade
increases in such markets are a re-
Election Of the increased buying ability
of European populations. If Brazilian
coffee can be shipped to Europe III
prewar volume, sales of automobiles,
machinery and textile products to
Brazil should be stimulated. Similar
ly, if Europe can consume increased
quantities of Chilean nitrates, Am
erican manufacturers and exporters
should get their share of the increased
business resulting from the higher
purchasing power in Chile.
"a revival of business in Europe
will naturally stimulate American ex-
ports of cotton, grain, meat products,
petroleum, copper, lumber and many
other staple commodities. The steady
flow of these products into European
trade channels is strong guaranty
for world peace.
Naturally, changes cannot occur
overnight, and it will take time for
the situation to readjust itself. 1t
must also be assumed that economic
developments are allowed to progress
without political or other interference.
In the long run, however, economic
stability in Europe brings with it
enlargement of world prosperity and
a rise in living standards in all coun-
tries. 1t means, furthermore, the
restoration of market upon which
millions of our producers depend"