Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-31

creme law and the probabilities are
that Congress will pass 1t this Win.
ter. 1t will permit group of Ameri.
can purchasers to get together ami
agree on a price at which they will
buy abroad. 1t is really the legali2a-
ton OF collective buying. When the
Sherman law was passed no such con
tingency was thought of. But this is
only one of many instances in which
American business has found it neces,
sary TO develop new methods of meet
ing obstacles abroad.
The gratifying increase in export
trade has stimulated American bust.
ness to look for more markets through,
| out the world, The Department of
Commerce has become a ma or insti
tuition in WaShincton--second to none
in Importance 1t is investigations the
opportunities for American trade all
the time. and by an elaborate syste.I
of information gathering is placing the
necessary data before American bust
ness men.
On the financial side America has
been aided tremendously by the eX.
istence OF large supplies of capital.
/ The Government again has stepped
! into the situation. not by any specific
regulations concerning the methods by
which this surplus capital shall be
employed. but by certain implied re-
struCtions that have had the desired
! influence.
| Check on German Loans.
| The flotation of loans in Germany.
| for example, has been guided by the
close line of communication existing
between S. Parker Gilbert, agent
general of reparatiOns in Berlin. and
the American Treasury. MIR. Gilbert
was formerly an UnderSecretarv of
the Treasury here and is a close friend
of Secretary Mellon and.siS in touch
with American bankers generally;
but the view he expressed i'm his
memorandum warni. German states
and municipalities not TO borrow ex.
ceSsively is merely an expression of
what Germany's own prudent ba mixers,
like DR.. Schacht, head of the Reichs.
hank. havN all along been saying.
For the moment. therefore there has
been a stoppage of capital outgo to
Germany for "unproductive" pur.
poses; but this in no way has influ.
enced the flow of capital to other parts
OF the world. And when American
dollars go to the Far East or the
countries which were neutral during
the war. there is a feeling of Satisfac.
ton here that these dollars will ulti-
mately come hack in the form of pur-
chaseS of American goods and sur
pluses.
The big outstanding fact is that
America has learned in the last 10
years TO produce economically and TO
outbid other producers in world mar.
kets. Quantity production has he.
come fact in many lines. The prob
lem is how to distribute the large
surplus left after our production takes
care OF domestic requirements.
An important factor is the question
of ocean freight rates. which depends
upon the policy Of the Government
toward the merchant marine. Whether
the present feet OF Government YES
sells is maintained and replaced BY
new ones or whether the Government
lends money, under the so-calied Hur.
ley plan. at low rate of interest TO
the railroads or to private operators
generally, so as to establish n private.
ly-owned American merchant marine.
the fact il that whatever Is done will
have bearing on the subject OF ocean
freight rates as an element in the
competition against foreign prices.
Tariffs and War Debts
Very little talk has been heard in
the las; six months In Government
circles about revision of the war debt
agreements. There has been much
more agitation really about the pro
tective tariff Again the argument
mas been advanced that IL the Euro
pean countries are to pay America
their war debts they must do so
through goods purchased by the
United States. and that these pur.
chases cannot increase materially
until the tariff wall comes down.
In other words. IL in being reiterated
that America cannot expect much
money from Europe on the war debts
unless the tariff is revised consider.
ably. But men like President Coolidge
and other staiwart proieciionisiS
would rather See "A postponement OF
war debit payments than To disturb
the tariff structure They feel that high
wages at home are depe ndent upon
keeping up certain level 0f prices
assured by the tariff wall, and That
greater disturbance would follow
revision Of the tariff than could pos
sibly he made up in money Dement'S
through war debt payments Also.
there IL the fact that the amount OF
money in the next 10 years. under
the gradually increasing scale of pay
compared TO the billions 81 dollars In
VOWED In the American iaflH slthc
tnre.
The agitation for revision III the
tariff. however. viii continue during
1923. and while IL II conceded. even
In protectioHist quarters, that many
parts of the tariff law are insauttnbie.
there il fear that II the sublert
were opened up ST all IL would mean
! too much disturbance.
Politics and Business.
This brings us 10 discussion Of
s,olltics as IL affects business. Should
here he an oysrtUrn of administration
nj the Democrats come into power,
IL ~ generally predicted that some
revision Of the tafiff will he under
, taken. bui here again the pressure OF
American business, even on Demo
cratic administration. mas always
| been very strong. aud II IN not con
/ siered likely that any radical re-
yision Of the tafiff you'd he attempted
4, seems TO he taken for granted
| hers this, Gov. Smith will he The Demo
| cratic nominee. Reports from bush
| ness men ~ 10 Gov. Smiths attitude
! toward economic questions tend ia
vary. His views Oh water power are
not Felished by the public uttilty IN
| dustFV and this to some extent toiuts
ths attitude Of other business groups.
! Bot on the otner hand, there IN the
statement attributed 10 prominent
! Democrats who are engaged In busi
| nass in New York. that the New YORK;
| fi0segnor nae always gotten along
/ well With the business interests of ths
Empire state.
! EfTed ~ Coolidge Statement.
As tor the IlapubtcDn situation.
there IL 40 doubt lhat The statement
! issued by President Coolidge an Al
| gust s. nat be dl1 not ehooss 10 run.
had 40 unsettiing effect "A ths Time.
The fact lbat IL Was made very early
however has given on opp0fi unity 10
discount its effects and business men