New-York tribune., 1919-05-31
Predicts Drop
To 81 a Pou nd in
English Exchange
Support Here for the Pound
Will Lead TO Removal
of Embargoes en- United
States Goods
Ne4o York Tribune
Special Gable Serrtcs

4
Special Cable Servics
Copyright. 1919. New York Tribune Inc.)
LONDON, May 30.--Trade and ex-
change worry not only the powerful
business men who are the backbone of
Great Britain but the government,
safely through this transition period.
Moreton Frewen, leading economist,
war expenditures in Europe cease next
year exchange will settle down at OF
about 81 to the poud@
Sir Auckland Geddes considers ex-
change a. dominant factor and his in
tention is TO remove or make restric-
tons according to their effect upon
dollar exchange. Anything done in
America to maintain British exchange
will result in the removal of restric-
tions upon American goods.
Nothing has so aroused British bust
ness interests as the announcement
that America had taken over the 600,-
600 tons of German shipping seized
in her ports Having declared many
times it had nothing to gain in the war,
Americas seizure cf these ships has
produced an exceedingly bad impress
sion, as we'll as aroused the intense
jealousy Of the British where their
mercantile prestige is concerned.
Heavy Shipping Losses
It is pointed out that Great Britain
lost 7,63S,o2O tons of shipping, against
Americas 341, ,512 gross tons, and it is
argued that the German interned tom
mage should be allocated on the basis
of tonnage lost
From a creditor Great Britain has
become a debtor nation to America
during the war, her export trade
shrinking gravely while the imports
reached colossal figures However
cptimistically the British try to view
the future industrially and financially,
when they turn to the sea and pict-
ure American shipping becoming pre-
dominant it produces most gloomy
impression.
Recent questions in Parliament re-
garding trade restrictions and the allo-
cation OF German tonnage to America
are indicative of the temper of the
members, but they have failed to dis
close the widespread discomfort and
dissatisfaction. Ten thousand ex-sol-
diers parading through London streets
and bearing banners reading eve want
employment, not government doles,"
came into contact with the police when
they tried to march to Parliament
This demonstration was serious
enough, but when the same day the
secretary of the Police Union apollo
gized to the organized workers for hav-
ing been compelled to carry out the
government orders proof was furnished
of the gravity of the whole industrial
and social situation. Over a million
are drawing unemployment allowances
from the government.
Here is the governments problem
1t is placing restrictions upon the i'm
portation of certain goods in the hope
of reducing Britain's indebtedness and
protecting and encouraging British in
dustry, but British consumers com
plain of the price. 1t puts tariff on
certain articles and Immediately the
consumer protests, America intimates
that retaliatory measures are likely
and the British producer sees the for
eign markets closing against him
Policy a Mystery
The governments permanent policy
thus far is mystery, though there
are indications that when it is an
nounced next September it Will be in
the form of protection. Frankly the
British are worried by American and
japanese import restrictions, which
please no one and in a measure alarm.
The British have never faced a sim
ilar situation, not even after Water
loo, for then there was no American
and japanese competition and the
working classes were unorganizcd
To-day labor is so powerful that it
is able to demand an increase in
wages commensurate to the enhanced
cost of living. Even now few realize
how hard Britain has been hit by the
war. and are failing to appreciate that
a country under modern war conditions
can win but still be little better off
than a loser. 1t was the belief during
the war that the sacrifices of the
Allies were relatively the same, and
that therefore after peace they would
stand in the same relative positions,
but this fallacy is becoming more and
more apparent.
America has all the best of 1t to-
day. Britain is the strongest of the
out of the woods