The Indianapolis times., 1935-11-09
In Defense
by GEN. HUGH S. JOHNSON.

nALLAS, Tex, Nov 9-In a recent critico,
article on the State Department. with special
teieiehce 10 agricultural export markets said CON
'i0 eoohonllc side, our foreign policy is a failure
With their usual liberalism. the Scrnns- Eou,or4
papers puohShed the article, adding editorial COM
HlehIS and cartoons have not seen all of them
out. III general, they were derogatory in oceenco -
tne statements quoted
One editorial remarked Eve think il ,nfairn
IN support OF the charge of "unfairness" it cited
rise IN exports between 1882 and 1884 from 81 Gil
~ @ 20 OoOOOO and rise in imports from
SzzOOOOOO to 81 655 900 000 The editorial asserted
also, In the first eight months of this wear thew
nave approached closer to a healthy balance This
record doesn't look like failure"
The answer is that this record" isn't "the record"
by which to measure the success or failure of eco
nomic policy. If there is anything unfair" in the
premises, 1t is this particular use of figures
In the first place talking especially of agri-
cultural foreign trade but let that pass for a
moment.
IN 1882 pound sterling for example when turned
l. into our money $3.50 We devalued the dol
lar IN 1888 and during that year. the exchange rate
rose so that the for the year was s4 32 In
1894 the rate rose to above s480 Other foreign cur
rencieS similarly.
Now that ledgerdemain doesn't provide any more
pounds sterling in England francs in France to
buy our wheat or cotton. 1t doesn't increase our
actual exports by ounce, but it does increase the
hgure OF export on paper. 1t is a device to raise
prices of such products to American consumers and
that is all it is.
But the success of our foreign economic policy is
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, 1930-1933 our
favorable balance of total trade was 1853 100000.
For 1884, unfavorable balance 1910 000 900,
and for the first months of the eight 1885 months
during which this editorial says got even more
healthy, it 1902 900 900 in the red In year and
a half we lost more than We 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 II per cent in 1892 and 95 per
cent in 1934-the lowest since 1918 and loss of rea
tive position since 1929 of 40 per cent! That is the
true test of success failure in international COM
petition
" agricultural exports: In the cotton wear 1899
we exported 0,419000 bales; in 1884 1884 600 bales
in 1885, 100000 bales-a rapidly vanishing trade
We used to export much 200 900 900 bushels of
wheat and flour Even in 1892 exported 81 900 600
bushels of wheat.
In the year ending June 30 1895 we exported only
100000 bushels and imported II 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 are
losing our position a creditor nation and on cur
rent fiscal transactions actually in debtor posi-
ton now. 1t Is guileeSs and daily destruction Of
international strength
How any man could designate as unfair" a
criticism that foreign economic policy which has
produced those results is failure, is beyond me.
wonder if it is the editorial and the cartoons
which unfair"
Copyright 1885, by Unite d Feature Syndicate. IncJ