The Washington times., 1919-11-20
Boersianer's
Comment
on Business
BY BoERsIANER

BY B0ERsIANER-
With exchange on London yesterday
leading the way to hitherto unfath-
omed reaches, and with call money re-
newals as extortionate as ever. stocks
inevitably continued to be sold; more
forced liquidation, more short selling.
But why should credit eurtailment
be confined to the stock market? Are
the Federal Reserve Banks cotferees
unaware OF the expansion ic other
branches Of finance and commerce?
In practically ever primary corn-
modify the trading-or speculation. IL
you will-has been notoriously In
tense and extensive.
From everything that the land
yields to the land itself the turnover
a1d transfer have absorbed colossal
Credits. From the Middle West. to-
the Pacific coast the buying and SELL
ing Of land have involved a tremen-r
deus amount of money advanced BY
country banks, mostly private. The
settlement day for these transactions
falls in March. The Federal Reserve
Poard may be interested in ascertain
Ing the vast sums-the egregious
credits-tied up in this business.
Grsss anA PrejsAieial.
Then there are the foodstuffs and
the cotton markets. Why should
these be also favored against the
drastic pressure on the stock, ex-
changes and issuing house? There 10
something provincially gross and
in making the financial
thoroughfares of New Yofk and Chi
cago the scapegoats for the fscaIIy
oppressive policy of q Government
board abruptly grioped by ultra con-
gervatism. A
Y Probably the credit amputators did
not foresee the foreign exchange
market of the present: had no ideal
Of the involuntary aid they would
have from this source. Now tina;
they have 1t. the inference is fair.
they do not like 1t. Such coadtust-
ment cannot be desirable. since 1t is
deeply serious.
The, foreign exchange market has
touched level where almost any :
thing Of q catastrophe nature might
happen to It and In it. Strong fac
tors which had supported certain
rates-and In so supporting fncreas-
ing their holding 1argely-may be
impelled to liquidate at any time and
thereby bear so much more heavily
on q weak and overburdened market.
The absorptive power here decreases
In the inverse ratio Of the enhancing
offerings. Should an avalanche of
bills come to market In the current
conditions. disorder would turn TO
uncomfortable chaos. From now on,
every point down In foreign exchange
Invites apprehensive liquidation from
heretofore stanch holders Of foreign
credits.
Subtle PrepaganAa.
At the same time, with a sort Of
pre-ordination, the subtle propaganda
for the forgiveness Of European gov
eminent debts is recurrent AS the
situation abroad looks recurrently
desperate more is heard of the scheme
to have the United States Government
remit the foreign obligations.
From the outset, the movement has
been patiently concerted, tentative in
insinuating at the start. 1t Is become
more and more. frank. AT the cotton
congress in New Orleans, the British
representative advocated the plan. In
Chicago, last week, q prominent mem
Der Of the House of Commons favored
1t earnestly.
And now Herbert Govett, also of
the British Parliament, urges Presi-
dent Wilson to announce that the
United States should take a. sponge
and wipe out the whole of the in
debtedness to 1t of all the allies. in
cluding Great Britain, ifG5eat Britain
will do the same and treat its debts
from the allies as part of war ex-
penditures.
Wealth Less Than Ours.
Their sufferings during the war"
declares Mf. Govett "were much
greater than ours, and their wealth
when the war began was much less
than ours. France has also to face
the loss entailed upon her by the
chaotic condition of Russia, in which
so many milliards of French money
have been sunk.
1T will not be good for our future
relations with our European allies
for the charge on the debt to Eng
land to be an annually recurring OBJ
stacle to budget equilibrium. We be-
live that this country can afford to
write off the sums which we lent to
them during the war, that this should
long ago have been done. and that
the sooner it is done the better; while
in doing likewise, the United States
will by that much more facilitate res
toration."
By a singlar inadvertence Mr..
Govett forgot to mention that the
clean slate would help foreign ex-
change. Many things have already
been done to stiffen foreign exchange.
including Mr.. Glass kindly remission
OF the interest on what the European
governments owe the American Gov
ernment; which, by the meanly sus-
picious, might be regard as the
preliminary step toward what Mr..
Govett zealously recommends.
But nothing. thus far, OF an un-
fundamental or Of an eleemosynary
character has availed.