Evening star., 1924-05-10
by ROGER w. BABSON.

BABSON PARK, Mass, May 10
There is a distinctly better feeling
in Europe today-better than has
existed for four years. The Daw es
committee did a splendid piece of
work and is entitled to the worlds
gratitude. The nations have not yet
formally accepted the report, and
France and Germany may hold out
for minor concessions, but with all
the other nationas behind it. the pros
poets are for acceptance without any
important changes The market
trend of Frances securities indicates
very clearly that she will cooperate.
Entails Loan From United States.
The adoption of the Dawes report
means that the United States will be
called upon to loan large sums
abroad, and indorSe to d certain eX-
tent Germany's obligations. This in
itself is not a bull point. 1t is also
to be remembered that the Dawes
plan will set Europe up in business
again and enable her to compete with
US to much greater extent than at
present. We should not, therefore.
spend all our time helping to get
Europe rehabilitated, only to leave
our own manufacturers and wage
workers to suffer from this very
necessary commercial and economic
readjuStment
Imports into the United States Will
greatly increase and if we are not
prepared for them our own mills and
factories will be shut down corre
spondingly.
Must Boost Production.
To offset this we can increase our
mass production to make up for one
loss in specially manufacturing. Let
H. Lie ;rt c1a
Manufacturing can be divided into
two main groups, viz, % those ar
ticles where labor is the principal
factor, such as wearing apparel,
household furnishings, novelties. etc;
and (2) those articles where capital
is the principal factor, such as struc-
turaI steel products, automobile
agricultural implements, etc. When
Europe gets settled again, we must
expect to lose much of our labor
goods markets. South America will
again get her specialties from Ger
many, France and England and we in
the United States will likewise i'm
port very heavily of such specialties
We, however, should retain our mar
kets for standard high capital cost
products. The United States and Can
ada should retain control of the man
ufacture of such goods. We should
not only supply our own needs, but
those of Europe, South America and
China as well. We should be willing
to lose some of our speciality busi-
ness; but mass production we should
push harder than ever and not yield
on it one inch to any other nation.
Possibilities in China.
mot to any extent can Japan, a
coming manufacturing nation, be
considered as a permanent customer.
Japan comes to us only when she is
obliged to. China, on the other hand,
as a sources of raw materials and
tremendous market for manufactured
goods, has great potential possibili-
ties and a loss of good will would,
from a purely economic point OF
view, be more serious. Incidentally,
let me add that this Japanese ques-
ton is but another illustration of
my statement of some weeks ago,
that there is grave danger of seri-
Gus conflicting interests developing
between the Pacific coast states and
the eastern states. This spread of
interests applies also to the Canadian
provinces. The eastern senators and
representatives voting for this bill
seem to be thoroughly cognizant OF
this danger.
Unfortunately all our recent legis-