Norwich bulletin., 1919-07-19
ECONOMIC EFFECT OF PEACE TREATY PROVISIONS

The economic effect of the vario,is provisions of the peace treaty upon international trade and the possihleex- tent to which it's operatien may de termine future commercial and ip- dustrial relations between the nations : involved are discussed in the current issue of American Goods and Foreign Markets, by the Guaranty Trust Com pany of New York. It says:
 'sThe several peace. treaties shave economic implications which will re- The mere affixing of the of1icial. seals and the ratification by the several nations which is. expected to follow do not automatically usher in the new and the utilization of the extra treaty forces which are abroad in the world that will deternaine the future devel- opment of nations, and so the course of industry and commerce,
 .s1n it's main features. however. the treaty is explicit enough. and unless other forces, not comprehended in it's various clauses. change the aspect of the world, it is perhaps possible to state in general and qualified. terms some of the outstanding features, of the present economic international situation. and to. indicate the main .tablishment of the new trade rela tions,"
 wealth and corresponding increase
 
 many in the position of new nation, attended by. the difficulties naturally met in establishing a, position in world. trade for the first time Pre- dieting. the adoption of new trade saXs:.
 'Germany loses much of her. coal and iron in. the settlement. Although freed of the cost of maintaining an immense military and naval estab lishment. she must nevertheless pay, not alone her debts to her own peo- rple-which she may presently decide to repudiate, though of course without using the word-but also the iHdemn- ity imposed by the allies. She is stripped of her colonies. and merchant marine and likewise of much of the commercial and industrial establish ment she has built up in. other coun must resume operations almost at the beginning, and carry on her trade un- der the double handicap of a tre- rnendous external debt and a vast loss ernment cannot be expected to eoun- tenance the trade practices of the past, which, whatever they offered in the way of immediate wealth to her the great mass of her people,
 Concerning the future trade policy of France. the review forecasts as follows:
 To-day France faces a new regime, as different from the old as a bee from a. butterfly. The restorat ton. of Alsace and Lorraine and the control of the. coal of the Sarre Valley give her an opportunity for industrial ex pansion in the sense in which that term, is usually used in this country. She lost, moreover. so great a pro- portion of her skilled workers that she will be forced to adopt changed methods of production-those which, fortunately enough. are best applied to the heavier industries. Thus it is not surprising to see the French plan ming to txrn out an automobile almost on a par = first cost and in opera tion expense with the cheap and pop ular American makes. Compare such a product with the types of motor with which we associate France to- day. and the changed outlook of the nation is made graphic.
 There is another force making for the development in France of an ex- portable surplus of a magnitude hith- erto undreamed of. The great exter- l nal debt can be paid, in the last an- aIysis, only in goods. Great changes will have to be made in the govern 1 ments fiscal policy. and future de- pendence and the future budgets of the country will almost surely be if nanced with greater weight laid upon taxation than upon bond issues