New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-01-04
Difficulties with Currency
Credit and Exchange
Work for Peace.
A SLOW RECOVERY
IN TRADE PROBABLE
Great Britain Has Met Drain OF
Gold and Maintained Her
Exports Well
BN FRANCIS ". HlRSI.
Idiior Of Tho Economist. Lemon.

editor Of Tho Economist Lsnson
London. Dec. 27.-To write an ade-
quate financial and economic revie"
Of this by far the most disastrous
year in the modern history Of Eu-
rope would. Of course. be Al impos-
siole task. Only q few Impressions
cen he recorded i'm response 20 the
request Of the editor OF The New
York Tribune. How complete the
disaster will be and how many of
the belligerent nations will be sol
vent in the sense Of being able to
60 on paying interest upon theV
war debts after the contest depend
entirely upon the date at which
peace is concluded. As write, for
tie first time since the war began
fifteen months ago there energies
4 possibility. and in The opinion Of
some, probability, Of an early
peace.
From all accounts. the interna!
situation in Germany and in Aus
tria. and the sul'erines Of the popu-
lations. have induced an utter wearl-
ness Of war which the governments
can no longer ignore. One may say
generally. without fear Of contradic-
ton. that the atmosphere at home
and abroad is becoming more and
more favorable TO peace, and that
the task Of diplomacy, though still
very difficult, is no longer hopeless.
( Individual longings for peace are
assisted by the financial situation
and by difficulties of credit. currency
and exchange, which become more
formidable month by month as
prices and war costs rise.
Since last Christmas We have
seen our expenditure rise from less
than two to nearly five millions a
. day. We have seen the exchanges,
which first favored Great Britain.
turn against us; we have seen a
serious depreciation in the currencies
OF France and italy, and fall of
more than 90 per cent in the exter-
nal value of the Russian rUblc.
On the other hand. the seas are open
to US and closed TO the enemy. Our
exports. though inadequate, have so
far been wonderfully well main
tained, despite the enlistment Of
three millions Of the best workers
/ il the country. We have had mag
nifcent support from the colonies.
The rise in prices has been serl-
Gus, but the cost Of living has in
volved so far little or no privation
among the working classes as a
whole. owing TO the higher wages
and the mobilization of female and
child labor. There is practically no
unemployment, although, certain
amount Of machinery is standing
idle through shortage Of labor. The
Lancashire cotton trade is dull, but
nearly all the staple industries Of
the country have more orders than
they can execute. Our chief COM
mercial difficulties spring from want
Of shipping, congestion on the rail
ways or i'm the ports, and from un-
favorable exchanges with New York,
Holland. Scandinavia and Spain.
So far the drain on gold has been
mot as well as could he expected, but
London will certainly need more sup
plies from the great gold boards IN
Paris and Petrograd. There was a
remarkable rise last month in the
price of silver, which is explained
bv the demand for a silver currency,
resulting from suspicion Of small
PAPER money. This only applies in
England to the ten shilling notes.
Workingmen dislike these, as they
get crumpled up and lost. So our
mint has been working day and night
&C. supply silver currency, which, of
course. is a profitable business for
4lo cr,,.crnp1pp+