The Dominion MONDAY, MARCH 7, 1921. POLITICAL CHANGE IN AMERICA

Dominion, Volume 14, Issue 138, 7 March 1921, Page 4

The Dominion MONDAY, MARCH 7, 1921. POLITICAL CHANGE IN AMERICA

The one fact which stands out clearly as Mk. Warren G. Harding assumes the office of President of the United States is that there never was a time when other countries had a greater interest in the determination and application or the policy of a new President. It is not a question of these countries looking in a. spirit of dependence to the United (States. The position is rather one of mutual interdependence. The deadlock over foreign policy which arose during President Wilson’s later leadership haiy been exceedingly costly to the United States as well as to the rest of the world, and the interests of its own people demand that the American Government should shape and give effect to a policy taking due account of the necessity of international co-operation and so assist ft to establish the conditions most favourable to the restoration of peace and to the progress of peaceful reconstruction throughout the world. The magnitude of the responsibilities devolving on the new American Government is only equalled by the guardedly non-com-mittal attitude in which MR. Harding and his chief supporters have approached these responsibilities. Torrents of talk during the late campaign and in subsequent months have left the world almost completely in the dark regarding the policy the new' American Administration will adopt in dealing with the great and urgent questions which await its attention. The case, no doubt, is one in which a rem must be set on expectations. Mb. Harding himself has shown a distinct tendency to be governed by considerations of immediate expediency, and there is little enough ground for a belief that his Administration will make full use of the exceptional opportunity for constructive statesmanship by which jt is undoubtedly confronted. Even in these circumstances the disclosure of its Dolicv programme will be awaited with a great deal of interest. To-day’s cablegrams detail a list of policy items which need early attention, but the question which overshadows all others is that of devising some practicable alternative to the ratification of the Treaty of Versailles. A separate peace between the United States, and Germany is now presumably inevitable,, but this does not exclude the possibility of action -which will modify the isolation of the United States from the nations which have constituted the League of Nations. While America thus far has refused to incur responsibilities or obligsifrions under the League Covenant, the logic of circumstances appears to be driving her into an understanding and relationship with the League which can hardly stop short of at least qualified membership. Already, in connection with the controversy over the Yap mandate, there is talk of an American plenipotentiary attending the next meeting of the League. Council, and it seems manifest that, the United States is and will be in an anomalous position until it finds means of regularising its relationship, with the .international authority it is no longer able to ignore. One thing which may be assumed confidently in regard to the peace programme of the Republican Administration is that President. Harding will make no move until he is assured of adequate support and particularly of the approval by a two-thirds majority in the Senate of whatever peace-plans he mav formulate. It has been suggested that when he is assured of the necessary support from the Senate Mr. Harding will appoint a commission to proceed to Europe charged with the duty of arriving at an understanding with the European Powers. While tho treatment by the Republican Administration of the peace problem, and the definition of its attitude towards the League of Nations, will determine the outlook in regard to many questions of international scope, there are other aspects of American policy which vitally concern the rest of the world. This is notably true of the tariff and other measures, some of them already in legislative form, which aim at as far as possible preserving to America the extraordinarily advantageous commercial position she attained during the war and in a measure, still holds. There are fairly widespread demands in the, United States for still higher and more comprehensive tariff protection than is already provided, and also for the protection of American interests by discriminatory measures against foreign shipping and in other ways. In dealing with such demands, the Republican Administration will be faced Uy many knotty problems, and it is not surprising that in his references to the tariff in his inauguration speech Mr. Hardim; was almost as cautiously non-com-mittal as in what he has said at different times about the peace issue. Considering his political antecedents. less significance perhans attaches to his observation that American standards require that higher production costs should be reflected in a tariff on imports than to his further statement that such a tariff must be “adjusted to the new order” and that “America cani.ot.sell where she does not buy.” Tho returns of United States trade during the war and post-war period bear .witness to the enterprise with which the American pooplf seized upon an exceptional opportunity, hint in their

later developments these returns illustrate the fact that an unduly narrow policy of self-interest defeats its own purpose. America's trading balance ,||ill shows a heavy excess of export®, but this excess declined considerably last year as compared with tho preceding year, and for months past American exporters have been complaining of the difficulty of finding an outlet for their goods. Trade depression and unemployment are at present widespread in the United States in spite of the exceptional advantages it has enjoyed in recent years. It does not seem to be in doubt that America has contributed to this state of affairs by its restrictions on import trade and by withholding the measures of temporary financial assistance it might very well have extended to countries less fortunately placed. At a longer view it may be argued that a country as well endowed as the United States with cheap power and with its industries as highly organised has no need of tariff qc other protection except as a safeguard against spasmodic interference with its industries. On the other hand every measure of restriction must tend to limit its foreign markets and tho total volume of international trade. These questions of commercial policy are, of course, intimately connected with the larger questions of foreign policy which must b'e brought to a comparatively early decision now that the new American Government is installed. The chief danger in sight at'.present is that the Harding Administration may regard all questions of international scops—those of trade and finance as well as tho greater problems of world-peace—with an eye tpo narrowly directed to the protection and advancement of American interests, and so may shape measures which in the end will work out badly for America as well as for the rest of the world. It will be an agreeable surprise if apprehensions of this kind are in the main falsified.