Evening star., 1926-04-10
BACKGROUND OF EVENTS
BY PAUL J.. COLLINS.

Chicherin, foreign minister of the
Soviet republic, has issued 5000
word warning to the effect that
| Americas millions of dollars in
| loans and investments may dominate
the world; hence the proletariat is
worried.
Even worse than Chicherin's is the
alarm of Trotsky. for he writes books
and makes tive-hour discourses eX-
planning the terrorS of American
loans which are "subjugating the
world
That is their justification. there
fore. for Russia's refusal to join a
disarmament conference.
The late William r. Stead. emf
nent British Journalist. expressed
the same idea. % years ago. in u
book, The AmericaniZation of the
World" He based his review, not
on accumulated dollars. but on initi-
ative, efficiency and enterprise, but
his book reused only wrath in Eng
land.
In Il recent number of Current
History appeared an article by Mr..
Trotsky. arguing that Russia should
be considered especially attractive
to American bankers and investors,
but in Russia he talks differently,
| from sovietistic repudia ton of former
debts which will draw American
credit Russiaward.
y =; X
Russia is not alone i'll picturing the
United States as swollen with wealth,
a world usurer, a "bloated bond
holder Many Europeans have
pointed fingers of scorn at our al
legged selfishness and purse pride. and
| demanded that, because of our ultra
prosperity, we cancel the billions
which Europe owes us.
Even Americans are prone to fancy
| that we profited Unfortunately from
war conditions. and TO picture the un-
| imaginable wealth represented by our
| holding in the Treasury two-thirds of
all the worlds gold. and. seeking
eagerly for opportunities. lend hun
| dreds of millions of idle money abroad,
! because there is no need for ii in
America. They are protesting that
our international bankers" are so
! eager to invest their millions abroad
that they lose their sense of patriot
| ism, and overlook obligations to
| finance home industries and enter
| prises.
1t is not possible that both of such
| self elf-contradictory contentious can be
correct: what are the answers?
| In the March issue of the Barker s
| Monthly. appears an article by Mr..
George l.. Roberts, vice president of
the National City Bank of New York,
| in which he analyses war profits"
/, and the existing European loans. He
says:
'Inasmuch as prices have gone up
all over the world. without creating a
general state of prosperity, that par
ticular count in the indictment Tvs.
the United Statesl is not we'll sup
ported. The producers of the goods
which were sold at high prices paid
the production costs on the same
ba sis. and whatever profits they real.
lied were diluted in purchasing power
at the same rate. There isno instance
in the worlds history of any people S
getting rich by mere depreciation of
the money by which values were
measured.
A champion of labor replies that
high cost Of production is the retlec-
ton of higher wages, which means a
better equalized or more generous dis
tribution of wealth among the pro-
ducers, even though it does not enrich
the whole people, but in a measure
I6IluS IO Ildht tue NaEC-CtiL IlCt IlCHcI
and the employer poorer.
\
Banker Roberts continues:
The profits made In business in the
country during the war were not all
made on export goods. and TO the ex-
tent that they were made on goods of
home consumption they were made
at the expense of our own people and
cannot be counted as increasing the
net wealth of our country at the ex-
pense of Europe. Moreover these
profits, to a great extent. never ex-
listed except temporarily on paper
While business was being done on
rising market book profits made a
large showing, but when the slump
came heavy losses were incurred, wip-
ing out the paper gains. -
''The grand total of corporations of
every kind reporting TO the Bureau of
Internal Revenue for 1921 was $780,
397 of which 171,279 reported net
earnings aggregating s4,336 O47, ,s13,
upon which the Federal taxes were
SOL ,575, ,432, leaving a net of S3.643,-
472 1881. The aggregate deficit of the
remaining companies was $3,S78,219,-
l34."
Mr.. Roberts shows that farm in
vestments lost 25.7 per cent in that
year u922), and he continues: