The Western news. [volume] (Libby, Mont.) 1933-current, 1937-01-28

to the seine OF war did not fly the
American flag, that it carried no
American citizens, and was not in
sured by an American underwrit-
er.
He admits that copper, steel and
manganese are in definitely more
warlike category than foodstuffs,
but is not certain as to whether he
would ban them.
So that the advocates of an embar-
go against imports of any sort from
any belligerent nation would seem
TO be a long ways out in front of the
procession for the moment at least.
As Economists See 1t
Economists in the Department of
Commerce, however, point out that
nation engaged In really inn
portant war would not be able to
produce any considerable amount of
goods for export anyhow. 1t would
be too busy producing supplies for
its own fighting forces. A huge
percentage of its ordinary produc-
ing men would be called to the col
ors, its working women, both from
factory and farm, to plants produc-
ing supplies needed for the army
and navy.
Then there are other develop
,ments, aside from these obvious
ones. For example, Italy did not
have to strain very much, in mill
tary way, in her Ethiopian war. But
she was obliged to stop the export
crops-lemons. That is the reason
the price of lemons in the United
States was so much higher than
last year.
One of the few exceptions is wine.
It may be recalled that the French
had piled up an enormous amount
of wine by the close of the World
war. They thought they could sell
huge quantities of it, at high prices,
in the United States. In the excite
ment of war they had overlooked
the fact that the United States was
to try the prohibition experiment
every one here thought perma-
notwithstanding in January, 1920,
and that wartime prohibition would
| be effective until that date.
This almost, forgotten-so far as
| the United States is concerned-fac-
| tor was one of the causes of bitter
ness on the part of the French about
| the war debt. How could they
pay us If we wouldn't take their
products?
So, altogether, the idea OF banning
| imports from nation at war is
| likely to be more of thumbing
OF the nose rather than real eco
nomic threat.
Worry Over Strike
Win, lose or draw, the c. l. O..
war with General Motors is giving
considerable distress to those opti-
mists among President Roosevelt's
| advisers who had counted on mag
nificent increases in federal tax
revenues as a. result of improved
business conditions.
1t is working as a two-edged
sword, looping off corporation earn
ings, not only of the motor COM
| panies, but of every company that
sells things to everybody affected,
and also boosting the unemployment
relief expenditures that the govern
ment will make.
| Estimates of 200, 900 men out of
work, made by the representatives
of the motor companies here. are
regarded as very conservative It
is not only the men actually work
ing~in the motor plants, nor even
those employed in factories making
| parts, plate glass, etc. The attempt
by c. /. o. to cut off the supplies
of the automobile manufacturers is
hitting number of other industries.
For instance, 1t is hitting build
4 ing construction by cutting down
the supply of plate glass, the chief
object of which was to hamstring
the motor makers. Henry Ford is
reported to be about to use laminat-
ed window glass, so real is the
shortage of the glass normally used.
This particular hamssri..g, OF
course, hits not only General Mo
tors, at which it was aimed, but all
the other auto manufacturers as
WELL
Hits Revenue
So that actually. on part of the
loss to all these big corporations.
the government is actually taking
more than half of the loss of profits
considerably more than half. if
one reflects that before the divi-
dends are paid out the government
takes Is per cent of the net earnings
of the corporations This Is per
cent loss of revenue will apply to
all corporation losses of earnings
due to strikes, tie-ups or whatnot.
| But it is on the individual in
comes that the loss will be highest.
Due to the new tax on undistributed
earnings, corporations, as evil
denced last month, are making ev-
cry effort to pay out all net earn
ings to stockholders. So that aft
err taking is per cent Of the net
loss due to the strikes, the govern
ment will then lose big slice oil
:. 4