Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-16


ressing Springfield, Mass. audience as b.
foreign countries and thus diminishe!
our export trade.
Experience Is cited.
But If any more answers are needed
| to this theory there is that of actua
| practical experience. I have already
observed that we have increased oul
| imports during the last seven and hall
years under the present tariff act. BY
| over $1,675y 100000 annually, or to ar
| amount at least 80 per cent above pre-.
war average after allowing for the
higher prices. The exports of five lead.
| ing manufacturing nations of Europe
to the United States have increased 7;
per cent since 1918, whereas the sale:
of these same nations to the rest of Tho
world have increased only 70 per cent
Certainly that does not indicate any
great destruction of their ability to sci
us something despite our tariff. Ir
short, there is no practical force in thu
tective tariff and a growing foreign
trade. We have both today.
spoke a few minutes ago of loan.
which our citizens make to foreign
countries. 1t is an essential part of the
sound expansion of our foreign trade
| that we should interest ourselves il
the development of backward or crippled
countries by means of loans from oul
| surplus capital. They bring blessing;
both to the lender and the borrower
When we make a loan abroad The
amount of that loan is not ordinarily
exported in gold, but in goods or serv.
ices, either directly or indirectly Mos
of them ind their way out of our coun.
try in the form of farm products, Of
machinery, plant equipment and sup.
plies purchased of us.
We receive the first benefit in markets
for our farmers and for the making OF
these goods, and that gives additional
employment to our people. The ,bor-
rowever receives the second benefit be-
| cause the INSTALLATION of American
machinery and equipment, whether II
be railways, power plants, harvesting
machinery or typewriterS, brings great
err productivity to the receiving coun-
try. It's prosperity is thus increased
and the whole world trade benefits
Some of this new industrializatinl
abroad may result in occasional com.
petition with items here and there ir
our export trade, but the broad, gen.
eral results of world betterment are a:
have stated them. If foreign loans
are applied to constructive develop.
ment in foreign lands and If they arr
provided from capital beyond thai
which we require for our own needs
then they are necessarily beneficial.
Argument Is Denied.
Two assertions have been made ir
connection with our war debts and for
eign trade that merit a word. The
| first. is the one referred to before
that tariff prevents the imports of goods
necessary to repay interest and capital
| upon these loans, and the second i:
that these payments must be ultimate
iy made in goods and that these goods
will some day replace the output OF
our factories and reduce the employ.
ment OF our workmen. This latter
| argument has been vigorously put for
ward as a reason for canceling OH
war debts. deny its practical validity
The whole of the weight which ]
have applied to the fallacy that the
| protective tariff ruins our export trade
applies equally to this matter. AS
have said, the tariff can effect but a
small percentage of the buying power
Of foreign countries. In the end il
probably increases imports, because BY
increasing our domestic prosperity II
enables US to buy far more goods OF
the raw material. tropical and luxury
type. All the facts I have stated
| showed the increased buying power OF
foreign countries. apply equally to their
| ability to pay loans and interest. The
| $500, 900, 900 annually due us upon war
| debt settlements represents today less
than 5 per cent of the present total
annual buying power of foreign coun-
tries for our goods and other purposes
OF this 5 per cent, four-fifths would
be paid through inViSibleS as duty-free
| goods and only per cent at the largest
computation in competitive goods. A
hard, practical fact enters here also
which Is that their buying power from
, us Is constantly increasing. The fact
Is the increase in our tourist expencli-
/ ture alone in Europe since the war
would enable them to take care of the
| entire amount of their annual paw
ments on these debts. The increase
alone in our imported goods since 1922
would pay the whole amount three
| times over. And the polyangular course
Of trade which have mentioned does
| not require that these transactions be
directed with any nation.
Denies War Profit.
| While I am on this subject OF oul
| war debt should like to call attention
to another current Misrepresentation
That Is the statement that we made q
! profit from the World War and thai
these debts were wrung from the blooc
of other countries. This is, absolutely
! untrue. While certain individuals MAY
have pronted, as a whole this country
! was a great loser by the war. WI
| emerged from it with the loss of life
| of our sons, with the depleted health
OF others, with q huge debt increased
taxes, inflated currency, inflated agri
culture, useless factories, with short
| age Of housing and other facilities fol
| the very basis of living, with suspended
! public works and inadequate communi.
cations, demoraliZed railways and count.
less other national losses which viii
continue for generation.
| The increase In wealth and prosperity
in the United States has come since the
war-not during that time. 1t Is due
to the Woodworking character and in
creastng efficiency of our people anC
to sound Government policies. And IL
the largest measure the adoption anc
application of these policies were dut
to that great son of New England
Calvin Coolidge.
| This great prosperity, this great in,
crease in wealth has been one of TIT
| greatest blessings that has ever com.
| to the world. 1t has enabled us from
our reservoir of wealth to contribute
| the force of our capital to the recon.