The Western news. [volume] (Libby, Mont.) 1933-current, 1935-05-23
SEEN and HEARD
around the
National Capital
BY CARTER FIELD@

Neutrality-suspicious. 1t can be told
who started the depression and why!
1t was Australia, many months be-
fore our stock market crash, and the
why Is that change In fashions
played hob with Australla's exports OF
wool, for the simple reason that wom-
en- stopped wearing 80 many woollen
garments and men began wearing
lighter clothes.
Whereupon, nearly every one 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 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 II
there had been no Australia. but Is
highly Illuminating telescope view OF
the world situation reduced to an
oo,ff,, ,,n,yorotnvda h1o fnrr1u1o
1t is particularly appropriate ut the
moment In view Of the hubbub up over
the alleged statement OF President
Roosevelt that foreign trade Is thing
of the past, to which Senator 4. II.
yandenberg paid SO much attention
In the senate.
1t is also appropriate with Italy
and Poland just having restricted Inn
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 we'll In advance of
the beginning Of the depression here.
| The date Of this beginning In Amer
lea Is holly disputed, but most econ
omists agree that the stock market
crash Of Octobe., 1929. was merely
a. - Try
which was already we'll under way be-
fore most business men-eyen those
engaged In the industries hardest hit
appreciated 1t. Nearly every one
thought 1t was just temporary dip
In the production curve. They had
heard cries OF Wolf Wolff" 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 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 a
| pebble rolling downhill. For the dry
| Ing up OF motor manufacturing. with
| It's cutting down OF buying from steel
| plants, tire factories, battery makers.
upholstery weavers. ETC.. was we'll un-
der way by July, 1929 three months
| before the stock market dive. ?
| What brings-au this up for consid-
| Grafton In Washington at the moment
Is that several very important per-
sons, some from europe and some
| from other parts Of the world. inclnd-
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 stnlemate.
| Nearly every one agrees that II
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
ura1ly the visitors with one accord
| say that the United States is the ma
| ton to start 1t. The British say that
we should reduce our tariff on tex
tiles. whereupon they would buy more
| OF our cotton. etc. That gets a loud
laugh, though with no mlrth, In New
England. not to mention North Caro-
| lima But It illustrates the difficulty
OF applying self starter!
Old Problem Up Again
The old long and short haul rail-
road rate controversy Is due for an
other airing This nls-ihe@ 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 one OF the restrlc-
| lions In the present Law which has
irked the railroads considerably.
This Is the provision that II a
/ through rate Is made. which happens
| to be less than the rate for part Of
| the same distance, the cheaper through