Political Partisanship Cannot Injure Mutual Interests of Great Continents Declares Klein

The following article on "Why We Are Interested in Europe's Business Health" was written especially for the Crimson by Dr. Julius Klein, Assistant Secretary of Commerce.

Paradoxical as it may seem, as our economic strength increases we grow more and more concerned with the economic health of Europe. The older continent may no longer hold the undisputed political leadership of the world. Its teeming populations and the intelligent and technical skill of its business leaders and artisans are, nevertheless, still of prime importance to Americans.

Much has been written on the subject of the recovery of Europe since the War. Many events in the present international arena, moreover, emphasize the fact that the progress of Europe is still the world's major economic problem.

Terrible Experience

Fifteen years ago that continent launched upon a terrible experience. Much ink has been spilt over the military and political phases of the great conflict. Only now are we beginning to realize what a shock was given to Europe's well ordered life apart from the battlefield. That she is recovering is a source of gratification to us. It is Europe that takes almost half of all the goods we sell, besides sending us a third of all we buy. Asia sends us another third. But Europe is always easily first as buyer of our products. She is not only our best customer, but our principal rival in the markets of the world. Moreover, every step toward stability and general betterment on her part strengthens the demand of her peoples for the raw materials and the luxury products of the "newer" lands (newer economically) of Latin America and the Far East. This demand is steadily making the Latin Americans and the Asiatics richer and more avid of the good things of life, of the comforts so many of which we can supply so readily and profitably. Consequently, every acceleration of European demand for the raw materials, exotic fruits, luxuries, and semiluxuries, produced by these far-off lands, will react directly upon the latter's buying power and desire for American specialities.

Without attempting to enter into what has been called the explosive zone of fire in connection with tariff policies. It is quite evident that some good patriots are fearful lest the proposed European economic union on the one hand and the increasing industrialization of the United States with resulting protective tariffs on the other, will bring about obstructions to the flow of goods between Europe and this country. To this fear, the reply is that, during the post-war decade, a period marked by unusual activity in readjustments of this sort throughout the world, the foreign commerce of nearly every major trading nation, both exports and imports, has been steadily increasing. Last year for instance, we shipped our goods abroad in larger quantities than ever before. We also bought in foreign markets more heavily than in any preceding year in our history. For the fourth time in succession our total trade with foreign countries exceeded a value of nine billion dollars.

Attention to Trade Barriers

True, the deliberations of the International Economic Conference at Geneva in 1927 were focused largely upon this question of trade barriers and numerous obstacles (including a good many quite apart from tariff levels) were revealed. But one wonders sometimes whether their real significance is not at times exaggerated, whether the amazing adjustability or fluidity of modern commerce does not in large part circumvent such barriers within a short time after their establishment.

But there is another phase to this question which reaches beyond Europe herself and extends to her colonies, dependencies and other outlying provinces. The trade of these lands is European since the economic wealth of the regions in question and its distribution are controlled from that continent. We import essential raw materials for our industries from these European dependencies mostly without tariff charges.

Hostility to Europe

One still hears a good deal, though gratifyingly less, as time goes on, about the hostility of Europe to the United States. It is even intimated from time to time that this alleged hostility affects trade between the two continents. If this were true, we would recognize this bad feeling in the reduction of the sale of American wares, which are readily identified as such by markings and general appearances--our motor cars, safety razors, electrical devices, typewriters and similar finished manufactures which, sold as they are under trade names, are conspicuously American. Has Europe allowed her supposed enmity to limit her purchase of these?

Trends in world trade during the past four years and particularly the past year and a half prove that there has been no falling off in European demands for these commodities. In fact there has been a decided expansion. Ten of these general commodities, of the type indicated, were sold to Europe in 1913 to the total of some $72,000,000 worth. Last year the value was $293,000,000--an increase in sixteen years of more than 300 per cent. Even though a part (perhaps 60 per cent) is chargeable to price increases, there is obviously a greater increased volume in this traffic; and it shows nosign whatsoever of abatement. The fact is that the currents of commerce are largely diverted, speeded up or retarded, by forces that have very little to do with international political emotions.

America Decisive Factor

No matter what may be the form under which the future "United States of Europe" emerges--if it does materialize--the United States of America will al-ways remain a decisive factor in Europe's trade, as a supplier of manufactured goods and as a source of capital for the development of her resources. The older continent for her part will no doubt continue to be the most profitable market for our wares.

Speedier trans-Atlantic service by air and water will work wondrous, though as yet unpredictable, changes in the future. We may be sure, however, that customers, one of the other, the "Unite States of Europe" and the United State of America will always have mutual interests that are beyond the power of political partisanship to injure in any permanent way