N. E. P.

If campaign promises can be taken to have any save an opportunist meaning, the Democratic victory of November 8 should presage a downward revision of tariff rates. With such a possibility in mind, Dr. Benjamin Anderson has stated in the latest issue of the Chase Economic Bulletin that "the great international conference for the reduction of tariffs which the new administration is expected to call is going to work a radical change in this whole American picture, and the whole world picture." An equitable balance of trade has always been the basis of satisfactory commercial relations, and, according to Dr. Anderson, it is high time that the suicidal policy of the past decade be ended.

Dr. Anderson declares further that this country in no way produces more than it can consume when production in every branch of industry is roughly proportional to the needs of the community. Under present conditions of heedless individual overproduction, however, a foreign market is necessary to restore the balance. Yet despite this fact, exorbitant tariff rates were passed in 1922 and 1930, with the result that in order for Europe to buy American goods, there have been a series of increasing foreign loans. Now that these loans have ecased trade is at a standstill, and while the tariffs remain, Europe cannot expert enough to establish credit. Perhaps nowhere is this more obvious than in the recent Von Papen manifeate to the effect that German war debts can only be paid through an exchange of goods.

There has been much variation of opinion as to the advisability of the forthcoming conference. But, as Dr. Anderson points out, the effect of a rate reduction in just one country would go far to reestablish confidence and lubricate the wheels of trade. Perhaps the writer is a trifle optimistic; universal benefit can come only through universal understanding and sacrifice. Certainly the most encouraging single factor of the problem, however, is that the average business man has seen the lesson of the past three years and the fatal consequences of the slogan "high tariffs mean high wages." Before international confidence must come individual understanding of the forces involved.