TO GEORGE W. LANE
Washington, January 30, 1919
MY DEAR GEORGE,— … The one thing that bothers us here is the problem of unemployment. We have not, of course, had time to turn around and develop any plan for reconstruction. Our whole war machine went to pieces in a night. Everybody who was doing war work dropped his job with the thought of Paris in his mind, with the result that everything has come down with a crash, in the way of production, but nothing in the way of wages or living costs. Wages cannot go down until the cost of living does, and production won't increase while people believe prices will be lower later on. I to-day proposed to Secretary Glass that he enter upon a campaign to promote production, (1) by seeing what the Government could buy, (2) by seeing what the industries would take as a bottom price, (3) by getting the Food Administration at work to reduce prices. Perhaps it may do some good. …
I have always thought the President was right in going across, and I believe that he will pull through a League of Nations. When I get a copy of it I will send you my speech on this subject, which is rather loose but is a plea for dreams.
Ned is going West to. work for Doheny in some oil field, starting at the bottom. I rather think this is right, but of course he won't stay as a laborer very long. The boy is fine and gay, and did splendid work, and is anxious to get into the game and make money. Just where he gets this desire for making money I don't know. Certainly I never had it. But he was telling me the other day of his hope that by forty he would have made enough money to retire. I told him you were the only fellow I ever knew who had actually retired, and you had only done it half way. He will report at Los Angeles, but I expect he will get up to see you as soon as he can. He has a remarkable affection for California, considering he has seen so little of it, and so has Nancy. They both regard it as the golden land where all things smile, and people have hearts. I have not attempted to cure them of their illusion.
Do write me a good, long letter, for I am always eager to hear from you.
F. K. L.
To George W. Lane
Washington, May 1, [1919]
MY DEAR GEORGE,—Well, what do you think of the Italian situation? I think the President right, that Fiume should not go to Italy. Certainly she has no moral claim, for by the Pact of London, Fiume was to go to Croatia. Orlando says that he is answering the call of the Italians in exile. Let them stay in exile, I say. They went into a foreign land to make money and now they wish to annex the land they are visiting, to the home country. How would we like it if the Chinese swamped San Francisco and then asked to be annexed to China? This is carrying the Fiume idea to its ultimate, a ridiculous ultimate, of course, as most ultimates are.
Whether he [President Wilson] gave out the statement as to the break too early, and without the consent of England and France, of course I don't know. Quite like him to do it if he thought the thing had hung long enough, and that Italy was too damn predatory. And she does seem to be. The New Idea seems to have less real hold in Italy—at least among the governing class—than in any other European country. Her present position will postpone peace. This will cause us trouble over the extra session of Congress for our appropriations will run out. And perhaps in England it may give a chance for labor troubles to rise. It will postpone the return of good times to this country. But ultimately Italy will have to come through. If economic pressure were put upon her she would be compelled to yield at once, for she depends on England and ourselves for all the coal she uses, and on us chiefly for her wheat. Of course this form of coercion will not be resorted to. She might think more kindly if she were given an extended credit, say of two hundred million dollars. But the people being aroused now over what they think is a matter of principle—loyalty to their compatriots in Fiume—they may not be able to compromise. Lord Reading rather fears that this is the situation and that it might have been avoided if the President had not issued his statement when he did. However, I have no doubt that the President will have his way. He nearly always does. Surely the God that once was the Kaiser's is now his.
To be the First President of the League of Nations is to be the crowning glory of his life. I believe in the League—as an effort. It will not cure, but it is a serious effort to get at the disease. It is a hopeful effort, too, for it makes moral standards, standards of conduct between nations which will bring conventional pressure to bear on the side of peace, to offset the old convention of rushing into war to satisfy hurt feelings. Sooner or later there will come disarmament—the pistol will be taken away and the streets will be safer.
The boy is having a tough time in his oil work. It is so dirty! But I hope he sticks out until he proves himself. I hear that the Dutch Shell people have bought out Cowdray in Mexico, and now are trying to get Doheny's lands. They bestride the earth, and as soon as their activities are known generally, this country will look upon the Standard Oil as the American champion in a big international fight.
… Well, dear old chap, I know that I could add nothing to your cure if I were there but I am not content to be so far away from you. … F. K. L.