The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. TUESDAY, JUNE 19, 1923. THE DRIVING FORCE

Southland Times, Issue 18971, 19 June 1923, Page 4

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. TUESDAY, JUNE 19, 1923. THE DRIVING FORCE

Noticeable changes in the attitude of the United States to European problems have come chiefly from economic causes, and one of the illustrations of this driving force was given in the cable message which re-' cently disclosed that the balance of trade is now turning against the republic. Two things have contributed to this and to America’s discomfort: the high tariff wall, and Europe’s slow recovery. Added to these we have the fact that the United States is unable to ship capital abroad fast enough. The first five months of this year have shown that the United States for the first time since pre-war days is importing faster than she is exporting, the adverse balance being 137,000,060 dollars. This has taken place in spite of the high tariff, and it is accompanied by an importation of gold amounting to 91,241,000 dollars. The Americans cannot maintain their export trade if the

world is not in a position to buy, and Europe is one of the vital factors. It is therefore becoming increasingly necessary for the United States to assist in the recovery of the war-worn nations and to find investments abroad for her capital. When capital goes abroad, however, it loads the Government with responsibilities which make the old doctrine of isolation impossible. The United States has been pouring out capital in vast quantities these last two years, but the principal increase has been in Latin America, where American money is operating in places where European capital before found many investments. Recently thp Federal Reserve Bulletin published figures dealing with the despatch of American capital abroad and the following comparisons are interesting:—

This movement of capital is not enough to correct the position, and shortly the effects of Britain's operations in connection with her War Debt refunding will accentuate the position. The adverse balance of trade is a symptom. It reveals the effect of the high tariff wall on exports, and if this downward movement in outward trade continues the fact will be used against the Republicans in the coming elections, when the protective duties will be one of the principal issues. Americ-a is going into the world markets to a greater extent than ever in her own interests, and she is, therefore, going to play a bigger part in affairs from which previously she kept aloof. The economic forces are driving her into world politics and isolation is already impossible.

1910. 1921. 1922. dollars. dollars. dollars. 000’s 000’s 000‘s Latin America 38,900 194,500 246,690 Canada and Newfoundland .. 201,200 189,000 254,000 U.S. Possessions 16,000 25,000 41,000 Europe, Asia, and Australia 320,200 217,300 327,600 576,300 625,800 869,800