Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-10-09

quarter dollar, Is quoted now at little
less than eight and one half cents.
The Austrian kroner, worth eighteen
or twenty cents in American money
before the war, is now valued on mar
kets here at less than two cents. The
German mark, worth around twenty
cents or little more normally, is
worth less than a nickel in American
money.
Forced to Pay Heavy Premium
Foreign firms that come into the
American market to buy must therefore
pay n heavy premium in their money
for our goods. The German mark is
still worth twenty cents in Germany,
but instead of five German marks being
required TO buy dollars worth of
American commodities the German pur =
chaser in the American market must
now spend twenty. Hc can't do it and
sell at a profit in Germany, for there
a mark is still a mark, and worth
twenty cents.
One instance came to my notice, Z"
said Doctor King, "where a Belgian
fiian had an opportunity to sell some
machinery to firm in Mexico. The
Belgian house tried to buy the ma :
chinery in the United States. It also
got bids from German firm. 1t found
that it could purchase the machinery it
needed in Germany at net cost of 90
per cent of the American bid.
France and Belgium would like. for
sentimental reasons, to fill their orders
in the United States. They are forced
to go to Germany for their goods in =
stead, because they cannot pay the prc =
vailing rate of American exchange.
Canada is experiencing a tremendous
stimulation of business because OF j
per cent difference in the rate of cS-
change.
I'm the matter of probable changes
in the cost of living in tie United
States. this inability to export food :
stuifs because of high rates Of exchange
VIII have its effect on food prices here.
Food prices probably are at their apex
and from now on will come down.
Not so in clothing, however. Deal
crs are unlikely to get all the heavy
weight clothing they ordered from the
manufacturers for this season, and will
be fortunate if they get all the light
weight clothing they have ordered fol
next spring. The one ray of hope that
L see is the chance that the British
VIII auction some of their wool hold
ings in the Boston wool market.
The demand for boots and shoes is
| SO great tnaC there can be no possible
decrease in prices this year, even il
export is cut off.
Building Materials Remain High
Building materials certainly will
remain dear for year at least. For
est production is now only go per cent of
normal, due in part to labor conditions.
There is no question that steel prices
would be driven up if we could expot
steel products. The steel strike prob
ably will create a steel shortage fS,
domestic use, which will keep prices
from going down.
'"Fhis country will have to wait fol
imports from abroad to bring our prices
back to normal. We. are the great
creditor nation of the earth. We mus
bring in goods; gold will not answer.
Every county on earth is short OF
commodities of all sorts; but every
country is shorter than we are. They
must bring up their own domestic sup.
ply before they are able to export tc
us. If we could get machinery tC
them, they could soon send manufac
tured products to us.
''It is not difficult to make a prett,
good diagnosis of the high cost of liv-
ing Goods have been destroyed
I 800, 900 n-producers--have beer
killed countless others have beer
manned production is low. We are
going to have high prices until foreign
production has been restored