The Waterbury Democrat., 1935-09-09


 50 per cent higher. European markets as sellers and we moved in. Wouldn't another. war do the same thing for us?
 Fortunately, the answer is sim pie. It is - NO.
 First let us try to follow this anuswer without reference to any particular war.
 It is difficult for Americans, par ticularly young Americans who dc not know the world of 1913, to remember that in those days this bellicose, bankrupt Europe was rich Gin mOney) and we were not Those purchasing agents who came crowding to our docks with their war orders in 1914, came with CASH IN THEIR HANDS. But now Europe hasn't any cash Her governments are broke.
 Cash Soon Exhausted
 They had cash then. They haven't any now. But even then their cash didn't go far. The French were on J. Pierpont Mor- gan's doorstep the second week of the war, asking for q $l0O,- O00,000 loan. And all of it to be spent right here. How juicy that seemed then! But it was not until 1915 that the borrowing began in good earnest. From then on Eu- rope pand us for almost nothing. She bought from us and gave us her I. o. Us. We still have them.
 In 1915 England. borrowed $250, 900. 900 and 50 did France. The next year England borrowed $56O,O0O.00O; France $10O,000.- 900.
 Before they were through Eng land borrowed over four billion; France, S3,24O. .OOO, ,0O0; Italy, $l,647, 100000. Altogether they got $9.Sl1, 100000. As Will Rogers said, they wrote it on their cuffs and then stopped wear ing shirts. They still owe two billions in interest besides. But all of those billions were spent on fireworks here, went to American manufacturers, put American workmen to work, created busi- ness, wages. profits, prosperity and-BANG.
 But today. just as Europe has no cash, she has no credit. If war were to start tomorrow, let us see if we can follow just what would happen. Obviously a na- ton involved in war would be- come a ready customer in world markets. But what would it use for money? How They Can Pay
 Nations can pay for what they buy with but three things-goods, gold or credit.
 l. Would a nation entering war be able to pay with goods for what she bought from us? Obyi- Ously not. At present foreign trade is enormously curtailed. The reason is our unwillingness tp permit foreign nations to send fin their products to compete with our own. Would we be likely to relax those restrictions because a foreign nation was at war? On the other hand, the nation at war would have actually less to sell us. Because as soon as war starts the nation involved begins to shift its energies, its envestments, its workers into war industries. It at once cuts down its volume of ex- portable surpluses of peace goods, which is the only thing we would be interested in. No warning na- tions could increase their pur- chases from us by paying with goods.
 2. They could buy only with gold or credit. Of one thing we can be certain--no warning nation will relinquish any of its gold save under the most impertous pressure. If any single nation went to war, save France, 1t has not enough gold to get very far. It Italy bought all she requires from Us and paid for it with all her gold, it would equal the re- covery payments of our govern ment for only a single month. If Italy, England France, Russia, Germany and Japan became in- volved they would have between them a gold reserve of nearly five billion dollars. In the event of such a war these countries would have A combined purchasing pow CT capable of aiding us, provided
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