The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-11-09
In Defense
by GEN. HUGH S. JOHNSON

nALLAs, Tex. Nov. 9-In recent critical
- article on the State Department. with snec;aI
ieierehce TO agricultural export markets eaid Gov
'iie economic side, our foreign policy is failure
win their usual liberalism the Scripps-Howard
papers puollShed the article adding editorial ooro
ments and cartoons. l have not seen Oh of r.
puC' In general they were derogatorv in essence tn
the statements quoted "
- one editorial remarked I'VE think it unfair"
In support of the charge of "nfairnesso II cited .
rise in exports between 1882 and 1924 from 81 81,
100000 to S2,132O0000O and rise in imports fron,
Sl5Z2OOOOO0 to S1655 O0O The editorial asserted
also In the first eight months of this year they
have approached closer to a healthy balance This
record doesn't look like failure"
Inc answer is that this record" isn't "he record
oy winch TO measure the success or failure of eco
honlic poHcy II there is anything unfair" in the
premises, II Is this particular use of figures
In the first place was talking especially of aori
cultural foreign trade but let that pass for a
moment.
1892 a pound sterling. for example when turned
INTO our money was $3.50 We devalued the dol
lar IN 1888 and during that year. the EXCHANGE rate
rose so that the average for the year was 81 70 In
1884 the rate rose to above s48o Other foreign cur
rencies rose similarly
Now that ledgerdemain doesn't provide anv more
POUNDS sterling IN England francs in France to
buy our wheat cotton 1t doesn't increase our
actual exports by one ounce but it increase the
inquire of export on paper 1t is device to raise
PAANS" "a
that is all it is
But the success of our foreign economic nolicv ia
not measured by this partial balance showing foreign
trade IN merchandise only, but by our total balance
OF trade The latter perfectly shocking record amply
suStains my assertion of failure
For the four depression years, 1930-l933 our
favorable balance of total trade was 81 1853 100000
For 1884, unfavorable balance was 1910 900 O0O
and for the first six months of the eight 1885 months
during which this editorial says we got even more
healthy it 1902 900 in the red In year and
half We lost more than gained in four preced-
ing depression years. Does that look like failure?
Our share of the worlds total export trade was
1873 cent in 1929 1928 per cent in 1892 and per
cent in 1934the lowest since 1913 and loss of rela-
tive position since 1929 Of 40 per cent? That is the
true test of success failure in international
petition
CEITING down to the real criticism made
~ agricultural exports: In the cotton wear 1929
we exported 8419000 bales; in 1884 1884 900 bales:
IN 1885, 100000 bales-a rapidly vanishing trade
We used to export as much as 900 bushels OF
wheat and flour Even in 1892, exported 81 900 900
bushels of wheat
In the year ending June 30 1885 we exported only
100000 bushels and we imported 100000 bushels
We are losing this business and losing these mar
kets Dollar devaluation is massive forgiveness Of
Europes debts to us both public and privte. We
losing our position a creditor nation and
rent fiscal transactions actually in debtor posi-
ton now 1t is guleess and daily destruction of
international strength
How any could designate as unfair"
criticism that foreign economic policy which has
produced those results is a failure, is beyond me I
wonder if it is not the editorial and the cartoons
which unfair"
Copyright. 1885. by United Feature Syndicate Incl