New-York tribune., 1917-12-21
Exchanges World
Over Are Swinging
Against the Dollar
Export Restrictions Due to War
Cut Down l.. S. Trade
Balances

the restriction Of exports ana olhcI
trade hindrauces due 20 government
regulations have begun to cut rapidly
into this country's favorable balances
OF trade with the rest Of the world
Exchanges are swinging seriously
against the dollar all over the world
according 20 an article in The December
issue Of "The Americas" because such
a large part of our exports are now on
the basis Of war credits TO the Allies
while the amount Of exporting on the
basis OF cash commerce with neutrals
falls considerably below normal.
Various expedieuts to change this
situation are being considered. To
quote from "Thc Americas:
owing to the abnormal situation IN
our financial connections with certain
countries, the exchange has brought
the dollar to such q discount that there
has been every reason why persons IN
those countries TO which We owe money
should decide not TO try TO collect cash
at all, but should invest, for time at
least, in our securities, the depressed
dollar and the low prices OF securities
being conjunction Of circumstances
favoring such a procedure, which, Of
course. at once acts TO adjust the eX-
changes. But with some other parts Of
the world IL is not TO be expected that
the people we owe will take securities
in payment. They are not IN the habit
of investing. and are not attracted by
such opportunities. As this is ma
tional affair, caused by our present ne
cessity Of concentrating our productive
energies on furnishing war materials
to the fighting lines, and by our re-
strction Of expectations for se;eral
military reasons, while it is absolutely
necessary TO import raw materials, !;
has been suggested that our govern
ment might arrange with groups Of
banks in the countries from which We
import in excess of our exports TO
them for credits sufficient 70 carry
the balances of trade over the war
period. The importance Of the financial
situation that is developing is recog-
uized, here and in Europe, as is shown
by the many propositions advanced for
new international currency arrange
ments."
Government Expected to Act
"If any sound arrangement can be
mad for adjusting things so that we
may 80 on exporting and importing
with only the military or special re-
strictions 70 interfere with natural
trade developments. it will probably be
TO the advantage Of the country. But II
we do not arrange for buying our eX-
cess OF imports on credit, and any IN
ternationa fiscal arrangement except
silver would amount 20 that. we VIII
probably have to do what England did,
and restrict imports along the line OF
cutting down our purchases or lux
urious articles for personal use, or OF
reducing the importation Of materials
used in nom essential industry. or even
of prohibiting the purchase abroad OF
articles of comparative necessity Tor
which articles made here can be sub
stituted."
The government is expected 70 take
measures shortly 10 restrict imports
along the lines suggested. II has full
power. and is already regulating I'M
portations of certain raw materials. 1t
is not restricting the importation Of
these. most of which are materials
needed in even larger quantity than
now being obtained, but Is supervising
their Importation so that IL can direct
what supply there is into the chan
nals most essential TO the production
of war munitions and articles Of pro-
dent necessity.
By proclamation the President may
q, any time put the importation Of
Inquiries and non-essential imports
Upou a license or restrict them. as
England did in 1916 when the develop
ment Of trade balances against her
caused the British government TO put
q tariff duty on a list OF articles, fol-
lowed by restriction and prohibition
OF others, till now almost all imports
into Great Britain require at least
some Official license for admission. Eng
land has restricted certain imports
also for the purpose of conserving
limited carrying capacity Of ships
going through the war zone.
Problem Resembles England's
The exercise of restriction upon i'm
ports" says The Americas SIS ser
ious undertaking. requiring the utmost
knowledge Of our commercial and poll
tical connections in their ramifca-
tions. We will DO well 70 80 back over
what England's experiences were and
profit by mistakes she made in the first
months of her restrictive programme.
We will find our own situation very
much resembling England. We need
our export connections. Il We 20 about
shutting OF our importations without
a very careful survey OF things We will
find that the countries whose trade is
hurt will retaliate against our exports.
L must be remembered that England
hrst restrictions were received by this
country In anything but a friendly
spirit by some exporters, and retala-
tory action by Congress wss demanded
in some quarters Not only such "A re-
sui, may lie anticipated, but we will
have 10 exercise great care when we
shut OUT the most obvious luXuries, or
else we will deliver a hurtful blow at
the industrial organization Of our
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