Evening star., 1924-10-26

Treasury under the Democratic ad-
mnlStration.
Tho economic difficulties since
March, 1921, nave been the exposures
of that debris There was a false
prosperity created after the war. In
f1ation was artiticially encouraged
and there was IL period from 1919 to
the first half of 1920 of extraordi-
nary speculation. When these serious
consequences were recognized there
was a drastic detiatlon and result
ing crash. This took place before
March 1921.
1T was natural that the farmer in
common with thousands of business
nen throughout the country should
believe tnat the inflated price level of
1919 was to be permanent and he
made his plans and purchases accord
.rgly. When the crash came in 1920
ne. with thousands Of merchants and
manufacturers, was caught Ill the DIS
dstrous fall of values.
The farmers loss was more severe
than that of most other business men.
The farmer was caught with his ex-
banded acreage and production at
time when the worlds demand was
unable to absorb his produce.
Could Have Hated Deaation.
His chief point at which the Gov
ernment could have rendered assist
ance in this matter was in preventing
the postwar imitation in 1919. Had
this been done the drop of 1920 would
nave been far less violent.
The Republican admi uiStration on
coming into power Immediately cs-
sayed the difficult task of rcStora-
ton: it organized all it's endeavors
tC that end. The Federal Reserve
rates were lowered from the deilation
rates of the previous administration.
impetus was given to the expansion
Of exports. Credits were provided
through the War Finance Corpora
ton.
The paramount need was the in
crease in consuming power. There
is no prosperity for agriculture in
the impoverishment ~ industry. The
conservation and protection Of the
interests of agriculture depend upon
the consuming power Of the country,
which means stability, the expansion
of trade and the prosperity that re-
suits from full employment. The
Republican administration inherited
serious businss depression and mil
lions of unemployed. The problem of
pioyment was attacked from
every possible angle and was solved.
A protective tariff was provided to
safeguard American standards of liv-
ing. Today there is no unemploy-
ment of consequence.
Backing Waterway Plan.
The Republican administration is
prompting the great project for the
development of the St. Lawrence
waterway in order to facilitate trans
portation from the Great Lakes to the
Atlantic seaboard, and also the pro-
duction of power No single thing
could be more important for the
agricultural interests of the North
'"Shile We have encouraging con-
ditions at home, the Dawes plan has
opened the way to economic recovery
abroad If today there is q new hope
in Europe; if Industrious peoples at
last have the promise of the economic
satisfactions without which there can
be no lasting basis of peace, 1t is due
to the Dawes plan.
with all our efforts to promote
prosperity, there is paramount need
of economy. It underlies every ad-
ministrative reform. 1t is the only
way to reduce taxes. The President
has said that he is for economy; and
after that he is for more economy.
He has proved it. The President has
shown you that the current tax re-
ceipts point to a saving of s6,000,o0O
a day as compared with 1921.
Foreign Policy Explained.
Our (foreign) policy is that of CO.
operation without entanglements or
injurious commitments. 1t is policy
of independence; not of isolation. We
propose to cooperate, as we have CO.
operated in humanitarian endeavors.
We propose to cooperate to promote
the interests of peace. We propose
at the same time that this country
shall not be embroiled in the conflicts
of European political interests. Our
just influence prospers by our detach-
ment from such conflicts"
Secretary Hughes will rest here un-
til tomorrow evening, when he will
leave for Kansas City for his next ad-
dress.