The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-03-01

country's potential enemies. AS
an alternative. they advocated
colonial expansion. If Germany
had been ready to buy more as
we'll as to sell more goods broad,
the need to send away a large
portion of the national surplus
permanently would not have
VeXed it.
It's additional exports would
have been paid for in additional
imports, and the account would
have been balanced. True the
reciprocal payments in kind
would have been difficult to en-
gineer. They would have involved
some redistribution OF the ma
tional income, because under the
existing distribution the domestic
market could not have absorbed
large additional volume of COM
modities.
The redistribution might have
brought complaint from the priv
legged, but it would probably have
Wv AoIC0 S1CdJCI GN1lo. 4NCNC1 01O
a country more wildly drop the
substance for the shadow.
TREDITOR countries under
~ normal conditions tend to
have "unfavorable" balances of
trade. Before the war Great
Britain, France, Germany, the
Netherlands and Switzerland had
unfavorable balances. They we're
rich creditor countries, with cap
ital invested all over the world.
This capital returned payments to
them in goods-paymentS of in
terest and principal. 1t was an
important factor in giving them
an excess of imports over ex-
ports.
Orthodox economic theory holds
that an unfavorable trade bal
ance, when it comes from pay
ments on successful foreign in
vestmentS, should not hurt a
country. Paradoxically, however,
all countries in that position try
to escape from it as soon as they
can. They strive to offset the
rising flood of imports with ris-
ing flood of exports.
Germany before the war had
an import balance, and also in
creasing domestic production. 1t
had more goods than its own peo-
pie could buy, and needed a con-
tinually growing export market
as safety-valve. 1t seemed that
the only way to keep its factory
wheels turning was to restore the
export market. The wealth it
could not consume at home had
necessarily to be transformed into
capital for export; and Germary's
natural desire to put that capital
where it would be safe explains
much recent history.
Germany was not alone in cher
ishing the desire to sell without
receiving payment Immediately,
to export as much as possible and
import as little as possible. to
lend and seek reimbursement in
world power rather than in goods.
The nations with whom it fought,
including the United States, we're
possessed of the some illusion that
it is possible endlessly to sell
without buying. Where they &C
copied unfavorable balances of
trade they did so unwillingly, and
did everything possible to get out
of it.
Most nations still cherish the
illusion that wealth comes from
selling without buying; and the
notion can do us as much harm
in the future as it has in the past.
A NEIGHBORHOOD of trade
N with actual goods eX-
changed, not goods for promises
to be collected on later at any
cost-here, admittedly is situa-
ton far from present realities;
but it is worth considering. In
our pioneer neighborhoods the
idea worked. And the civilized
world as whole today is still, by
any measure you choose to apply,
in a pioneer or primitive condi-
ton, or worse.
In all civilized lands today we
stand appalled, by the tragic non
sense of misery and want in the
midst of tremendous world stocks
of essential goods. Science has
given us control over nature far
beVond the widest imaginings of