The Birmingham age-herald., 1919-12-28

considerable increase in our imports of foreign-made commodities was observed in the latter part of this year, but it was almost trivial in comparison with the volume of our exports. There remains, therefore, third method and that is the extension of credits This appears to be the only available method if in fact it be available. The ablest bankers and apparently the federal reserve board are of the opinion that it can be made avail able, although to do that will entail the cooperation of the ablest minds in the government and of the ablest men of finance and indusx~ia leadership.
 The Secretary of the Treasury Hr. Glass, has intimated that the extension of credits should be the work of indi- viduals and banks. Not too great a bur den, he says, should be placed upon the banks Those who are conspicuous in industry and commerce should co-~perLte in extending credits. But it is difficult to see how the banks could greatly fa- cilitate the extension of credits. There might come a serious situation for the banks due to the depreciation in the mar ket value of railroad securities and the dumping of foreign securities upon the American market.
 If, therefore, some method can be per fected which would entail the cooper ation between the United States and the
 
 cially Great Britain and France, then there might be issued, strengthened by the guarantee of these nations, so@<- thing which for convenience is called scrip or debentures, or which might be called by any other appropriate name. It woulc be necessary in addition to the scril, thus issued that it have the legal tender quality, although that would apply ex clusveiy to the use of scrip in settling International trade balances. Of course this plan is somewhat vague, and will entail legislation if it be adopted, bu, there appears to be a gradual growth of opinion or surrnise that some effort or this kind may be essential. It seems to be the belief that if it should be adopted much of the danger which turks in the present day situation would be eliminated. It should be eliminated speedily. The crisis is already becoming threatening. and there are associated with it certain possibilities which should be understood by the public, although they are referred to somewhat reluctantly.
 THE FOREIGN EXCHANGES
 It is the prevailing opinion of those competent to judge that should the Eng fish exchange fall as low as 50. then II would be inevitable that Great Britain dump upon the American market vast amount of securities They would be placed here almost upon the auction block What the effect would be upon the American securities market is a fore- cast which the. best of authorities do nor like to make.
 Then, again, if it be impossible to liqut- date the trade balance of more than 2,- 900 900, GOO, which stands in our favor by the use of credits, then it is inevitable that securities almost by the ton be scli to the United States so that in this way scme measure of liquidation could be se- cured But with the dumping upon the American market of a vast mass of se- curities there would inevitably result an effect which the leaders and those who are well informed at Washington do not like to contemplate.
 There is no doubt that England holds a great volume of securities which might be made avaiahA in aiding to liquidate ner proportionate part of the interna- tional trade balance in favor of the United States. But from every point of view it is regarded as the better part for Eng land to retain these securities.
 Whatever is done must be performed speedily The situation promises - bc come acute early in the year 1920. It is something entirely outside the field of partisan politics. for it affects the entire country. The presumption is strong that if the United States is disposed to adopt scme method. similar perhaps to the one already described. which entails co-or din1tfon between the nations and the is suing of joint guarantee with legal tender quality available only for use in