The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-09-14

AS matter of fact, the debt is
larger than this-perhapS so per
cent larger. The government has
guaranteed the bonds of the Pub
Il Utility Institute and of the
Credit Consortium, which along
with certain other deferred pay
mentS makes the debt at least 152
billion lire.
Will any American buy Italian
bonds? Even if they could be sold
here? Will American producers ex-
tend credit? Italy is in arrears
right now on her current settle
mentS in London. Her bonds are
down in London and New York. She
owes us $2,O42,OOO,OOO, plus some in
terest which she has waived aside
Ethiopia Buying Small
What Of Ethiopia? Last year we
sold her goods which equal the price
of about 40 Ford cars. She buys a
small amount of gray cotton sheet
ing, little petroleum and little
else from us. She has a single bank
with capital about the same as that
of a bank in a single prosperous
American village. She has neither
money, gold, goods nor credit to
buy anything.
But even if the trade were there
we could not get any important
part of it. Because even if we were
foolish enough to lend Italy money,
we can not under existing law. The
Johnson act makes it unlawful for
any one in America to buy or sell
the bonds of any foreign govern
ment issued after the passage of
the act, if that nation is in de-
fault on the principal or interest
of any sum due the American gov
eminent. The Attorney General
has held this applies to Italy.
Then there is the recently passed
neutrality act which prohibits
the sale of munitions to any for
eign government engaged in war.
Under all these circumstances
it is entirely probable that, when
the declaration of war comes, our
trade will actually be injured.
Because Italy can buy only GER
tain amount of goods abroad.
And she will buy from nations
which will sell munitions.
There is a phase to this ap-
preaching struggle, however, in
which we have a stake, though it
is difficult to see what we can do
about it. Our biggest export pro-
duct is cotton. That export trade
has suffered these last two years
because of the artificial rise in
price produced by the AAA.
Cotton In Picture.
Three of the largest importers of
our cotton are England, Italy and
Japan. All have for some years
been eager to emancipate them
selves from their dependency on
American cotton. But with Amer
ica's new policy of driving up the
price, these nations have intensi-
fed their drive for their own cot
ton supplies England has pressed
cotton culture in the Sudan and
Egypt Italy and Japan have turned
to Ethiopia.
Only last year the Japanese
Ethiopian Co. was formed and
treaty made between Japan and
Ethiopia under which Japanese
would be admitted to grow cotton.
How large that venture is no one
can say. But MusSolini has among
his detectives the establishment of
an extensive cotton industry in
Ethiopia, where, he feels, the eli
matte and atmospheric conditions
of our semi-tropical South are du-
plicated.
If he succeeds, if the japanese
succeed, if England succeeds in the
Sudan and Egypt, what will become
of our Southern cotton surplus?
We can see it in the worlds markets
only by competing in price and
never by pegging the price at arti-
fetal levels. Mussolini's success in
Ethiopia does, therefore, pose a prob
lem for us which wise statesman
ship will begin to think about now.