The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-09-03
WHY POUND STERLING
w is FAR BELOW PAR

Sir George Paish, editor of "The
statist, an authority on interna-
tional credit, gave to the Associated
Press today u statement concerning
the present exchange situation and
proposals for reetiiying il by establish.
ing large credit in the United States.
He said:
1.-THE tail in American exchange ON
London is due simply TO the great pur.
chascs of American products by the
peoples Of Europe. In normal years
Europe pays the, United States for
goods purchased largely by means of
sums spent in Europe BY American
tourists. This year there haze, natur-
ally, been few tourists from the U.ited
States, AMI Europe 3 means Of paying
Tor normal amount of: goods, bought
from the United States have therefore
been greatly reduced.
Growth In American Exports
Moreover, Europe this year is buy
ing irom the United States much
greater quantities of goods than nor.
mally, American, exports to all the
world in June having been 10 per cent
greater than normally, while her i'm
ports from the rest of the world were
smaller than usual. Thus, the trade
alancC in favor Of the United States
is quite exceptional.
For the six months ending with
June America s imports were re-
ducnd some $ll5,OOO,0OO. Her ex-
ports expanded 1864 100000. Her
tourist expenditures, which normally
are at least 100000 a year, were
practically nothing. Thus, America
had balance in her favor amounting
to in the neighborhood of $900,OOO,O 900
more than she hGd in the first six
months of 1914. "''
Last year, however, she was 1bor-
rowing money from Britain and Eu-
rope, whereas this year she has been
luying securities back from Europe.
After allowing for all Outgoings, the
| trade balance in favor Of the Ameri-
! gan people in the fFst half, Of 1915,
was nearly $70O,O00,00 and they took
payment of this vast sum in about
O,oo0,0O0 in gold and the balance
in securities and credits. ".
May Read A Billion '".'
" But in the June half of the year
America : exports were much smaller
than they will be in the December
half of the year and in the next six
exports over imports in favor of the
United States, after making allowance
for all outgoings, for interest and SER
vice. probably will DO one thousand
million dollars; it conceivably may
reach still greater figure.
"The amount of exports from the
United States in the current h&7. year
depends upon the American people
themselves. If they wish to sell their
goods they will have no difficulty in
doing so.
"pbviously, it is quite impossible
[or Europe to luy upward of $1,000
| Oa0,00O of goods from the United
States in n single year unless the
American people are willing to do what
tn, British people always have done
take payments for goods in securities.
Limit OF American Trade
"American exports will be limited
in the current half year only by the
ability of European and other nations
to pay for goods, first, by shipment
of their own products to the United
States; second, by shipment of gold;
third, by the sale of securities, and,
fourth by means of credits. If the
Americana people are dubious about
giving credit, then it is obvious the
amount of goods they sell must be re-
dr Ccd to the amount foreign nations
,nn pay for by other means.
go None can question the present un
rarallCled opportunity for America to
extend her trade and commerce, as
well as to add to her reputation as a
great money market, and no one who
Knows the American people can doubt
that they will rise to the occasion,
and by granting necessary facilities
sell greater quantity of products
than the ever expected to sell in for
cgn markets. and at the same time
rectify the foreign exchanges"