Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-15

Mr.. Baruch. LAS to the present situa-
ton, I shall choose as my text the
passage from the author of the great
classic The Wealth of Nations which
at one time, and not so very long ago
at that, was almost anathema in the
eyes OF what some had come to regard
as the modern school of economic
thought. Gone and forgotten is many
q so-called modern economist, while
some of the tenets laid down by Adam
smith are still sound and instructive.
three things are required to raise
nation from the slough of dependency
end to make it happy:
Peace, easy taxes and tolerable adj
mlAlstratlon of justice. Have we these
lhree factors, which apparently are pre-
requisites to a nations happiness?
Treaties Not End of War.
"Ofncially peace was declared almost
IS years ago, but the world Is still suf-
terlng from that vast tragedy that
overlook 1t in 1914 and which ostensi-
bly, ended in 1913 But we have dis
covered that signatures to treaties of
peace do not end wars. We have dis
covered that vast emotional and physi-
cal commissions can be composed only
magic wand that can be waved where
by, with the restoration of peace, there
a restoration of conditions as they
were before the war. 1t is a new sit
uatiof we are called upon to face and
one that requires new energy but old
virtues for its solution-virtues of un-
derstandlng, of consideration, of dill
gence, OF thrift and of honor.
Franc and Germany are in con-
CfQT1f ~ nnta oil
protection against the other, and both
probably need it. I am rather hopeful
that they will get it. The forthcoming
return visit to Berlin of the French
premier, Laval, and the minister of
foreign affairs, BRAND, may well result
in some sort of understanding being
reached between the two neighbors,
which, if genuine, equitable and mutu-
ally acceptable, may result in bringing
the United States had the unique OPP
portunity Of accomplishing Is years
ago. We missed this unusual oppor-
tunity! Such an agreement between
France and Germany would go a long
way toward dissipating the prevailing
pessirl.sr. of which indeed this coun-
try, nay, the whole world, has an over
supply.
which, after all, must come out of the
toll and sweat of all. The basis for
levying taxes must be fair and well
within the capacity of the nation, if
those charged with guiding its destinies
are in earnest about the welfare and
happiness of those whom they are
called upon to lead.
Restudy Of Tariff Laws.
1--WE might to advantage, restudy our
existing tariff laws and, with the as
Surance of continued peace, this should
enable us and our neighDorS to effect
the necessary readjustment in our eco
nonnic structures, thereby starting the
world on the road to better days.
Another factor, the Importance of
which many are inclined to underesti-
mate, but which is very essential to
the economic stability of country, is
at least a tolerable administration of
justice, upon the maintenance of which
genuine rehabilitation largely depends.
1--WE seem to forget that constitu-
tional government is on trial, indicted
because of its inability to finance its
requirements. Deficit Of $1,000, 100000
is staring us in the face. How do we
expect to meet it?
1.-THE repeal of the prohibition amend
ment and the consequent restoration
of the respect for law end order may
not provide a complete solution, but
should go a long way toward greatly
reducing the threatened deficit DO
not know the extent to which the State
is being robbed by prohibition-esti-
mates run from $500,000,000 to as
much as $4,000, 900, O00-but few will
deny that the Nation is being deprived
of a substantial source of revenue at
a time when it could make the best
use of it,
How about cancellation of inter-
governmental debts, which many seem
to regard as a panacea for all existing
ills of mankind?" Mr.. Baruch was
asked.
Not until we put our own financial
house in order" was the reply. only
then shall we be able to listen to and
examine the pleas for the remission OF
debts. We must bear in mind that
these receipts have become an integral
part of our Nations financial structure.
IF you forego these payments some one
has to make up the deficiency.
Promised Blessings Lacking.
"The placing of India on gold basis
has not, In my opinion, resulted in the
blessings which its sponsors had an
ticipated. Is 1t not somewhat pre-
sumptuous for us to undertake to
CHaIlBe TdQlCdALy bAlc Sb1tuS Va
who have for centuries, measured their
values by silver? We ought to restudy
the artif1ciality introduced by it which
will restore the purchasing power of
those hundreds of millions, at least to
some degree"
The interview would be incomplete,
| II no mention were made of Russia, the
most talked-of and the most widely
advertised place in the world today.
"a De- -
the end of her financial tether. How
ever, I fail to share in the apprehen-
sions which seem to prevail rather
generally over Russia becoming a
menace to our so-called capitalistic
system.
IF the experiment fails, it may well
turn out a tragedy to country with
100000 people whose sufferings we
cannot forget and whose future is
partly our trust. If, on the other hand,
the experiment succeeds, Russia will
SLOWLY and mathoMically drift into the