Evening star., 1934-01-14
BY FRANK H. SIMONDS.

which followed the Presidents
reference to war debts in his an
nual message that certain men,
bers of Congress, at least, are
planning to press for coercion or re-
prisal against defaulting debtors. The
principal method advocated is an en-
barge upon exports to us from nations
which have declined to pay; sugges-
tions are not lacking that the same
measure be directed against those who
have made only token" payments. And
Of course, the popular method for action
j. that of excluding the wines and
liquors of the defaulting nations.
The trouble with all this sort OF
thing--and the difficulty at the root OF
the whole debt question-is that those
debtor nations which have either COM
pletely or for all practical purposes
actually repudiated debt payments are
our best customers in Europe. In the
aggregate they buy from us annually
from two to three times as much as
we buy from them. Thus they have
In their hands weapon to use against
us of fatal character, If we 60 in for
coercion or reprisal.
The figures in this respect are
Illuminating. In 1881 France, Britain,
Belgium and Italy bought American
goods to the extent of 1925, 900,
whereas we imported from the four
together but 1886, 1000 900. On balance,
therefore, they took $3.50 100000 from
us in excess of what We took from
them. Last year the figures were
$3.50, 100000 and s287 600, 900, respec-
lively, or an excess of S293,000, 900 of
purchases on their side.
To take the example of France and
Belgium, which have defaulted outright
on the last three due dates and against
whom popular opinion is now being
chiefly directed: In 1891 France
bought from us to the amount of $780,
o00, 900 and We bought from her to the
tune Of $92.00O,000. Last year the fig
.nd ooo Thus N the st
che French bought $94,0OO,00O more
from us than we did from them, and
in the second, $40.000,000. In the Bel
$30.000,000 in 1881 and $18,000,00 in
1882.
Retaliation Expected.
It must be self-evident. then. that if
Congress sets out to punish France
or Belgium, or both, for debt default
by raising obstacles to French and Bel
gian imports, both will retaliate. In
each case we shall stand to lose vastly
more than these two nations. To as
sumo the extreme case, we shall lose
$104 ,000. 900 in French trade TO cut off
$64. 4.000, 900 of French goods from our
1882. On the basis of 1881 statistics
our net loss would be s94,000,000.
This is the fallacy of the whole re-
yApic I Dc 1Ir f14 l.
surdity of the buy American" cam
paign. Today governments have gen.
orally taken the matter of foreign trade
In their own hands. Under the quota
system they are so managing that their
imports from any other nation shall be
balanced by the purchases of this ma
ton from them. And that means that
II we are to keep our present level of
sales to our debtor nations we must be
prepared to take almost 10000, 900
more of their goods this year than last
Recent criticism of the Roosevelt
course in bargaining to sell more apples
to France in return for taking more
French wines is therefore just so much
nonsense. In fact the President drove
q shrewd bargain, because he persuaded
France to take more of our goods in re-
turn for selling us wines, whereas
French policy would require us to take
enough wines to make up the present
difference between their sales to us and
our purchases from them.
If the present drive toward economic
nationalism and elf-containment is
carried to its logical conclusion the
moment Is coming when nations will
get down to the basis of barter pure
and simple. Purchases as between ma
tions will be arranged by governments
and on strict basis of parity. And SO
far as our trade relations with the
debtor nations are concerned, that
means we shall have to sell about half
Is much or buy twice as much, taking
the averages of recent years.
Europe Has Last Word.
II follows, therefore, that far from
Our being in a position to bring pres
sure upon France and Belgium. or
Britain and Italy for that matter, they
can always have the last word. OF
course if the United States without re-
gard to cost. wishes to enter into trade
war with debtor nations and to put up
. tariff wall amounting to an embargo,
without regard to the costs. the plan is
possible. But the price of that per-
fornance is obvious.
The world is, too, having an inter-
osting Illustration of the meaning of
such tactics in the case of Germany.
Because of the treatment of the Jews
BY the Hitler regime an unofficial boy
colt Of German goods is going on in
many countries, and particularly in
Britain and the United States. The
effect Of this boycott is, of course, to
reduce the sale Of German goods