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cont...
SOBERING EFFECT
The loss of such money must have a sobering effect, and luxury trades, in particular, may budget on less reckless spending. But the downward trend of commodity prices generally is not so much the effect as the cause of the break in speculative stock-trading. If New York, under the lead of the Federal Reserve Board, can check the fall at a level of stock prices reflecting the profits likely at a commodity price level corresponding with that of Western Europe, the world may well be better off as a result of the slump. Its occurrence shows that old David Ricardo of London (1812) knew more than Senator Owen. No monetary system, he said, is panic proof. But a wise handling of the crisis may enhance the prestige of the Federal Reserve System and give Americans a reasoned faith in their financiers such as they could not have in the days before 1913. More important for the world at large is the question whether America will draw the lesson that she cannot prosper alone. Edward Filene predicts that within five or ten years the United States will be a low tariff country, ready to negotiate reciprocal reductions of duties to enlarge the outlets for her manufactures.
GENERAL ADVANTAGES
If so, the broader basis of prosperity that this policy can provide will be to the advantage of America, Britain and America's customers alike. Britain has a hand in all trade and all trade brings mutual benefit to the parties. If it did not, men would not engage in it. There is one consolation for W.A. in the falling commodity prices the slump has advertised. If we know how to admit their operation here, through all our knotted restrictions on trade, they must benefit gold-mining. Ore with a lower content will pay the lowered expense of treatment. On the other hand any reduction of American costs makes her traders more formidable rivals in selling foodstuffs to Asia where, with easy sea access from our wheatlands near the coast, we should stand to profit by every step towards prosperity.
https://trove.nla.gov.au/newspaper/article/85141129