Evening star., 1932-12-25
BY EDWARD NJ. HOUSE.

article especial sign fcance.
BY EDWARD NJ. HOUSE.
(Reprinted by the North American News.
paper Alliance from the January issue Of
Foreign Afairs.)
"HE aim of the Democratic admin
istration which assumes Office on
March will be to liquidate the
i war-to liquidate it finally. so
that world confidence may be
restored, world trade freed OF its
shackles, and the minds and energies
of statesmen everywhere turned to new
and constructive purposes
Three Republican administrations
have failed to do this. Their refusal
to face economic problems realistically
and their parochial attituGe in lnterna-
tional political questions have made the
present task extremely difficult Indeed,
it is no eXaggeration to say that the
policies of the Harding, Coolidge and
Hoover administrations, inspired by the
selfish and unco-operative attitude
which the Republican party adopted
because of their implacable hatred CT
Woodrow Wilson. must be held in large
measure responsible for the continual
tion of the war psychology. the frus-
tration of all attempts at thoroughgo-
ing economic rehabilitation through in
ternational action, and the sense of in
security now prevailing in every quar-
ter of the world. To restore mems
confidence in the ability of govern
ments to govern is the first task of our
times. It must be the first task Of the
Roosevelt administration.
Spirit of Roosevelt.
Before I proceed to enumerate some
of the specific matters which will have
to be dealt with in any attempt to
liquidate the war; let me speak of the
general spirit which Mr.. Roosevelt S
public statements authorize US to be-
lieve will guide him while he is Presi-
dent. AS he remarked in closing his
article in Foreign Affairs in July,
1929 TT is the spirit, sir, which mat
ters." I think that in Office Mr.. Roose-
welt will be equitable and resclute, in
his dealings alike with his fellow citi-
zens and with foreign governments
He will learn as he goes along. not
seek to impose preconce1ved solutions.
H, revealed something of his philoso-
ply in a moGest little talk at PCugh-
keepsie on election eve. "A man comes
to wisdom in MANY years of public life. y
h remarked. He knows well that
when the light Of favor shines upon
him, it comes not, CT necessity, that he
himself Is important. Favor ccmcs be-
cause, for brief moment in the great
SPACE of human change and progress
some general human purpose finds in
him a satisfactory embodiment. To be
the means through which the ideals
and hopej of the American people may
find greater realization calls fer the
best in any man: I seek to be only the
humble emblem of this restoration"
7; must not be forgotten that Mr..
Roosevelt was member of Woodrow
Wilson's official family and came un-
der the spell of that courageous and
ideaiistic leader. Early in his term
ample of his courage. his common
sense and, as 1t proved, his foresight
A dispute arose with Great Britain
over the Interpretation of a treaty re-
garding the tolls to be charged on ves-
sells passing through the Panama Canal
When, after careful study. the Presi-
dent came to believe that the American
Interpretation was wrong, he did not
hesitate to reverse the policy of the
previous administration. although he
himself had indossed it in 1912. In
the face of hostile public sentiment,
and undeterred by lack of support in
Congress, he adopted and successfully
maintained the position that this ccun-
try could not afford to have its integ-
ritv questioned. His action gave Europe
belief in his courage and fairness
which was to stand him and the United
States in good stead in later years of
stress
It is in this sort of spirit. I believe,
that President-elect Roosevelt will pro-
ceed to the decisions necessary to
final liquidation of the war-decisions
no less momentous than those which
n,-@r
ton the chief problems involved and
try to forecast how I think the next
administration is apt to view them.
American Tariff Problem.
The American tariff problem is very
generally misunderstood today because
it has completely changed since the
World War Before 1914 we were
debtor country, paying interest and
amortization to foreign creditors on the
moneys they had lent us to exploit our
and expand our industries. Every year
We supplied our foreign creditors with
large volume of dollars, which they
used to buy goods here. We had con-
sequently, a so-called Favorable bal
ance of trade: that is to say, we ex-
ported more than we imported. Coun-
tries similarly placed were Russia,
BRAZIL, 1IlQld, f1dlll ana AIudlGIIldld-
debtor countries like ourselves, giving
creditors. Countries with so-called
'unfavorable balance Of trade" were
Great Britain, France. the Netherlands
countries which, like individual capital
lists, could afford to consume more than
they produced with their own labor
The World War made us creditor
country. 1t increased our buying power
and reduced the buying power of our
former creditors present debtors
In this changed situation the logic
would call for a reversal Of the bal
hnce of trade. This could come about
in one of two ways. 1t could come
about in good way-through larger
return to the United States in goods
and services or in a bad way-through
decrease in exports. The way chosen
would depend primarily on our tariff
policy. In 1919 and 1920 many careful
observers recognized the dangers CT
raising our tariff Even the Republican
platform of 1920 admitted that there
was such a thing as the problem of
the international balances" and stated
that, in view of uncertainty regarding
this point, the party could not say what
It would do in 1921: Twenty years be-
speech, had foreseen the necessity OF
shift of policy, saying: "A system
which provides mutual exchange of
commodities Is manifestly essential to
ehe continued and healthy growth of
our export trade. We must not repose
In fancied security that We can forever
sell everything and buy little or moth
Ing"
But all evidences of new spirit in
the Republican party disappeared when
the landslide of 1920 brought Warren
G. Harding to the presidency. l have
never heard 1t alleged that Mr.. Hard
ing was an economist. He had an "af-
lection for the tariff as a political is
sue," and he settled this question, like
others, in terms of his affections The
result was the Fordney-M McCumber bill