The Hardin tribune-herald. [volume] (Hardin, Mont.) 1925-1973, 1935-05-24
SEEN..sHEARD
around the
National Capital

around the
| National Capital
sy CARTER rIE1D.
Washington.-Now It can be told
who started the depression and whyI
1t was Australia, many months be-
Tore our stock market crash, and the
why Is that q change in fashions
played hob with Australia's exports Of
wool, for the simple reason that wom-
en- stopped wearing 20 many woollen
garments and men began wearing
lighter clothes.
Whereupon, nearly every n in
Australia being "poor," and the bal
ance Of trade against Australia reach
Ing frightening proportions, Australia
clamped on drastic restrictions against
Imports, especially leveled against au-
tomobiles and trucks.
Which, added to the fact that up to
then Australia had been the largest
single purchaser Of American-made
automobiles and trucks, knocked over
the first card Of a distressingly long
pile, and each successive falling card
knocked over the next one.
All Of which, Of course, is not really
intended to convince anyone that Aus
tralia really started the depression,
or that the present impasse on world
trade would not have resulted If
there had been no Australia, but is a
highly Illuminating telescope view of
the world situation reduced to an
easily understandable formula.
1t is particularly appropriate at the
moment in view of the hubbub up over
the alleged statement of President
Roosevelt that foreign trade is a thing
Of the past, to which Senator A. 81.
V~andenberg paid SO much attention
in the senate.
It is also appropriate with Italy
and Poland just having restricted i'm
ports Of American automobiles, ma
chinery and many other products to
one-fourth Of the 1884 figures.
Look at the Record
Without attempting to place Aus
tralia in the prisoners dock, there
fore, let's look, at the record. The big
commonwealth "down UNDER made
these restrictions well in advance Of
the beginning of the depression here.
The date of this beginning. in Amer
lea is holly disputed, but most o
Umists agree that the stock market
crash Of Octobe., 1929, was merely
the result of a collapse in business,
which was already well under way be-
fore most business men-even those
engaged in the industries hardest hit
appreciated 1t. Nearly every n
thought it was just q temporary dip
in the production curve. They had
heard cries of wolff Wolff" a dozen
times before during the Coolidge ad-
ministration, but had seen business
march on to higher levels later, with
stock market prices continually climb
ing as a result.
But when Australia stopped buying
American motors and trucks the ava
lanche started, though no one thought
for the time that 1t was more than q
pebble rolling downhill. For the dry
ing up of motor manufacturing. with
its cutting down of buying from steel
plants, tire factories, battery makers,
upholstery weavers, ETC., was we'll I'M
der way by July, 1929, three months
before the stock market dive.
What brings all this up for consid-
Grafton In Washington at the moment
IL that several very important per-
sons, some from Europe and some
from other parts Of the world, includ-
ing Australia have been in our midst
for the last few days, and have been
trying to figure out how to end the
present international trade stalemate.
Nearly every one agrees that If
some nation would just start the up
ward push, as some think Australia
started the downward drive, the world
could work out Of the present dol
drums. But how to get started? Nat
urally the visitors with one accord
say that the United States is the ma
ton to start 1t. The British say that
we should reduce u tariff on tex
tiles, w%hereupon they would buy more
of our cotton, etc. That gets a. loud
laugh, though with no mirth, In New
England, not to mention North Caro-
lima. But 1t illustrates the difficulty
of applying a self starter!
Old Problem Up Again
The old long and short haul rail-
road rate controversy is due for an
other airing. This TIM the subject
will be brought up In an effort to help
the struggling railroads. Chairman
Rayburn, of the house interstate and
foreign commerce committee. proposes
to try to remove n Of the restric.
tons In the present law which has
irked the railroads considerably.
This Is the provision that II a
through rate is made. which happens