New-York tribune., 1918-04-18

the past year with the sensational
advances recorded on the Berlin
Boerse, with the conclusion that
this comparison shows that "the
American people are now obliged to
bleed and pay and to see the riches
disappearing which they amassed
during the world war" All that
the comparison really shows is one
of the effects of Germany's policy
of financing war by unlimited in
fation.
The "Vossische Zeitung's" article
is, of course, merely propaganda
for the war loan now being foated
by bankrupt Germany, but it is
nevertheless interesting when con-
trasted with the real German opin-
ion Of Americas financial strength,
as told by dispatches from Euro
pean neutral centres. In Norway,
in Sweden and in Switzerland
agents working for German prin-
cipals are reported to be buying
American money on a wholesale
scale. This buying has been so
heavy, it is stated, that the markets
have been cleared of American
coins and bills. In the opinion of
foreign exchange expert consulted
yesterday, such purchases could
only be for investment. He sug-
gested that Germans, having lost
confidence in their own country's
money, were buying the only thing
available that they could be sure of
after the war-American money.
The, slump in the cotton market
seems to have been definitely
checked, though in the opinion of
some observers it is likely that
prices will probably work lower. The
statistical position tends to support
this view, for it is apparent that
there is little or no prospect of a
shortage of the staple. Theodore H.
Price, a trade authority, in the cur
rent issue of Commerce and FL
nance" estimates the carryover into
the next cotton year at 2,935,867
bales. Moreover, the propects for
the new crop appear to be excellent.
Mr.. Price says:
Despite the bravado of Southern
holders who proclaim that they will
keep their cotton rather than accept
less than thirty cents a pound for
it, we are inclined to believe that
prices must go to point at which
spinners will feel justified in stock
ing up against next seasons con-
sumption. In the determination Of
this price the manufacturers will no
doubt be guided by the prospects of
the crop now being planted and the
possibilities of peace. If the world
shall come to believe in a crop of
14,000,000 bales next year and there
is no definite indication that the war
will be ended during the present
year, the pending liquidation of spot
cotton may carry prices as far be-
low as they have been above the
level of intrinsic and fair value.
We say pending liquidation" be-
cause it hardly seems reasonable to
assume that the maladjustment Gre
ated by a years Misrepresentation
of the facts and boarding of the
supply can be cured in four days by
decline of four cents a pound.
Reactions will, of course, occur, but
the hallucination that has led many
to believe in an unending and eternal
advance has passed. Primarily it's
passing was due to the announce
ment from Washington that the
President and his war council we're
seriously discussing the adoption Of
measures that would restrain the
runaway market in cotton goods.
This announcement came just after
a committee of cotton manufacturers
had been for a second time in con-
ference with the War Industries
Board and was regarded as con-
AAMoIoEy VI tHc report tnaL the IN
dustry and the trade had been put
upon notice that a way would be
r speedily found to regulate them if
!. they did not regulate themselves.
No definite statement of the method
d that would be followed or the prices
I that are considered equitable has as
= yet been issued, but those who were
: at the conference seem to think that
n the government means business and
p that through it's power to COM
: mandeer factories and withhold fuel
1t is abundantly able to enforce its
s demands. AS bearing out this view
1t is significant that the cotton man
I ufacturing business, except where it
{ is engaged in the production of cot
: ton bags, is not included in the list
!. OF preferred or essential industries.