New-York tribune., 1919-07-21

menu III tnlS country m the ANGLO
French loan negotiations IN the
spring of 1916. He has long been
recognized us an authority on inter-
national finances and has written
ertensively on the subject.
Ncw York Tribune
European Bureau
Copyright. 1919. New York Tribune Inc)
LONDON, July 19.-Sir George Paish
says that British credit cannot recover
until conditions permit lifting the en-
bargo on the export Of gold and Brit
ain will be able to offer to pay every
thing in gold. The difference between
the present and pre-war situation is
that prior to the war Great Britain was
constantly lending large sums to for
eign nations, whereas to-day she has
great foreign debt. Because of the
necessity of giving additional credit
to the Continent and also buying large
quantities of food and cotton, Sir
George thinks that exchange may con-
tinue to fall, reaching 81 within a few
days
ut is of the very greatest impor-
tance not only that the British should
appreciate but that the world should
understand that the peace treaty has
done nothing whatever to strengthen
the financial position" he said to-day.
France and Italy had been induced to
base their entire calculations and hopes
upon the payment Of large sum by
the enemy countries, and no provision
Whatever has been made to deal with
the situation that now exists and will
continue to exist in France, Italy and
other continental nations until those
sums are received.
Much Money Owed
"inasmuch as Germany's power to
pay large sums imm mediately is gener-
ally admitted to be doubtful, the con-
Nhental nations are face to face with
position where they already owe
great sums Of money to foreign coun-
Fes for goods bought during the war
sho also with the need to continue the
purchase of large part of their food
ana raw material for a considerable
PERIOD on credit. This is the explana-
"on Tor the continued depreciation in
continental EXCHANGES.
Inc Paris rate upon London At
parity Of about 1925 francs for
'ne sovereign has now risen to nearly
o. francs discount, nearly 20 per cent,
"nne the Italian rate, normally about
4ozzo lire for the sovereign, is as
aign as 1855 lire, or discount of
90 less than 80 per cent"
discussing the question OF the steps
ascessary to strengthen exchange, Sir
'eorge says there is slight I'm
''osement in me proportion Of i'm
s''ts over exports, but the country
'''' hardiy ig paying its way. He
.4''catea substantial reduction in
.'s'gnt rates, as "the diminution in
.s'gnt rates will reduce the value of
''''sn lmportg, as these values are
.~epiated after Including the cost Of
's'sof 10 the point Of arrival"
Production Must Grow
AVsFything depends upon the CO.
'Ssfat'on Of manufacturer and work
A'h 70 increase the amount Of produc-
n'n' Sir George regards the gen
's' international financial outlook
~" great pessimism America stands
'ose just as much as any other
''h'ry by collapse Of European
ss''s; consequently it 10 necessary for
."sr'es 70 lend Europe the fullest
ahaneial assistance.
sir George considers collapss Of
"'fid credit not only possible but I'm
n:nent.
gee only one way out" he declared
ana tnst Ia by capital leviss. both na-
s'hai and International have made
"s suggestion that America and Enu-