AMERICAS DUTY.

Taranaki Daily News, 8 December 1921, Page 8

AMERICAS DUTY.

PRESIDENT’S MESSAGE. PROBLEMS OF THE DAY. AMERICA MEANS TO HELP. By Telegraph.—Press Assn. —Copyright. New York, Dec. 6. The President’s message 'to Congress says: “Indeed we would be unworthy of our best traditions if we were unmindful of the social, moral and political conditions which are not of direct concern to us, but which do appeal to our human sympathies and are of pressing interest to people not blessed with our national good fortune. It is not my purpose to bring you a programme of world restoration. In the main such a programme must be worked out by the nations more directly concerned. They must themselves turn to heroic remedies for the menacing conditions whereunder they are struggling. Then we can help, and we mean to help. We shall do so unselfishly, because there is compensation in the consciousness pf so assisting, because commerce interchanges in trade are possibly only when the nations of all continents are reported to be in stable order and normal relationship. “In the main the contribution of this Republic to restore normality in the world must come through the initiative of the executive branch of the Government, but the best intentions and most carefully considered purposes would fail utterly if the sanction and co oper ion of Congress is not cheerfully accorded.” x FOREIGN DEBTS. President. Harding urged the prompt passage of the Foreign Debt Refunding Bill. He said the denunciation of commercial treaties ordered under the Jones Shipping Act would bring chaos to trade relationships. He urged the early completion of the Tariff Bill and asked for Presidential authority to fix variable tariff duties with the .assistance of the United States Tariff Commission. He recom-

mended the American valuation plan for offsetting the inequalities of exchange rates. Referring to the Disarmament Conference, he said the progress made was most gratifying and the accomplishment of their hopes was not improbable. The President also suggested the creation of an Industrial Court with judicial power to (leal with labor disputes affecting public interests. Referring to foreign debts, the President said that, with the head of the executive branch, the Government held it important to deal with them. They were hindered by urgent readjustments among debtors for themselves. He thought it was fair for Congress to assume that the executive branch would not adopt, a major policy conflicting with the purpose of Congress in authorising loans that would be heipiul to the United States and would improve the condition of debtors, if by funding the settlement of defaulted interest may be negotiated. The President declared that the denouncement of commercial treaties, as recommended by the Jones Shipping Act, would involve America in chaos in trade relationships and indescribable confusion in the already disordered commercial world. A TARIFF BILL. He strongly urged the early completion, of a permanent Tariff Bill, which was needed to stabilise home industries and make more definite trade relations abroad. The Bill was vital to the preservation of many of their industries and again came as a reminder that they must not be unmindful of the world conditions. They could not dwell in industrial and commercial exclusicft and at the same time do the just thing in aiding the world reconstruction and readjustment. They did not seek selfish aloofness and could not profit by it. They recognised the necessity of buying wherever they sold. Permanency of trade lay in acceptable exchange. In their pursuit of markets they must give as well as receive. Yet it was not to be argued that they need destroy themselves to be helpful to others. “With all my heart,” said the President, “I wish for restoration \to peoples blighted by the awful world war, but the process of restoration does not lie in our acceptance of like conditions.” He-hoped a .way would be found to make

the tariff flexible, so that the rates could be made adjustable to meet changing conditions. Pointing out. the danger of American valuation if brought, to the level of her own production costs, making tariffs prohibitive, President Harding, in the course of his speech, suggested Congress should authorise proclaiming American valuation under prescribed conditions on any given list of articles imported. Much had been said about, a protective policy for America I making it impossible for her debtors to discharge their obligations. This contention was not now pressing. He added: “If we must choose between people in idleness pressing for payment of indebtedness, or people resuming normal ways of employment and carrying credit, let us choose the latter.” President Harding urged encouragement of a co-operative marketing programme, TH> ALLIED DEBTS. £ HOW CAN AMERICA BE PAID? Washington, Dec. 5. The session of the Congress opening today is likely to have some bearing on the : Conference. To begin with the Refunding Bill and I Allied debts will be considered. The position is this, that the Allies borrowed money on note of hand through their plenipotentiaries and now the time has come to put the business on a better footing. The interest alone amounts to millions daily, so Congress has its work cut out to arrange a theory, on paper, by which ‘ the money may be collected. Whether it will he converted into practice is another matter. The Americans themselves are frankly puzzled what method can he employed. Not long ago the Governor of the Bank of England met a gathering of the biggest American bankers to discuss the problem. “All right,” said the English, “we will ship you £100,000,000 in gold. It is very inconvenient, but we will do it.” “For heaven’s sake don’t,” the Americans replied, “we are choking with gold.” “Weil we will send you over £100,000,000 worth of manufactured articles,” but the reply from the Americans was the same. “Well then we will go out and buy 400 million on the American Exchange. It will depress the pound sterling to two dollars, but we will do it to satisfy you.” Again the American financiers begged the Englishman to do no such thing or they would be ruined. No way could be found to pay the debts and now on top of this situation President Harding is'proposing, in January, to suggest to Congress that the United States grant an enormous s'libsidy to the American merchant marine‘to enable it to compete chiefly with British shipping. As for 100 years a great part of British debts has been paid through her carrying trade, even in this the Americans will be cutting their own throats.