New-York tribune., 1919-02-10
British Against
Restoration of
Free Exchanges
Fear Results of Removal of
Regulations Before Gold
Standard Has Been Re-
sumed and Prices Settled
By George w. Glass
NeaD York Tribune
EnrODeGn B1tre11I

european bureau
Copyright. 1912 New York Tribune Inc.j
LONDON, Feb "a vast amount of
mutual trust and understanding will
be required for the effective transfer
of military comradeship into the test
ing period when old commercial rival
ries again will be dominant. Many re-
strictions and emergency expedients,
willingly accepted when all were work
ing for common purpose, still are in
force. British trade has not yet been
freed or allowed to run freely in its
natural channels, and many financial
shackles remain riveted tight. The of
fetal view is that Great Britain's in
terests are being served by their reten-
ton. America is in better position
than this country to return quickly to
the old untrammelled paths.
Speedy revival of competition in the
sweeping reduction of freight rates is
the first indication of the swing back
to the former struggles with America,
better equipped for ocean trade than
ever before. She has achieved or is
approaching something near indepen-
dence upon the seas as a result of the
war shipbuilding programme, and is a
real competitor on the great sea routes.
She never again will have great
freight bill annually against her. and
has changed in other ways the balance
of trade.
This country will welcome unre-
stricted movement of trade, but Great
Britain desires breathing space be-
fore again throwing open her ports to
all the world. The limitation of man.
ufactured imports to actual necessi-
ties will afford an opportunity for
reviving and reorganizing internal in
dustry and check further accumula-
ton Of debts abroad. Partly because
invisible exports from interest in
vestments and freight services have
been severely curtailed, and partly be-
cause the ordinary outward movement
NUT be regulated to internal needs,
there is reluctance to return to free
working exchanges, which probably
would be welcomed at home by your
bankers. This is one of the natural
NOHoSi uSitSco VI luc government pOllCy,
for the result of such freedom might
be seriously embarrassing pending the
adjustment of international indebted
ness the existence of which could
again raise the exchange problem in
an acute form. The time seems still
distant, failing special treatment of
external obligations, when this coun-
try. will return to true gold standard
and face without apprehension, re-
moval of exchange regulations.
Great Britan's debt was built up by
high prices, for which she has nothing
to show as the products purchased
have vanished on the field of battle,
and she is heavily handicapped in re-
paying at material reduction in
prices. This is used as strong argu-
ment against precipitate fall in COM
modify prices despite obvious COM
pensations. While prices remain high
the purchasing power Of the American
dollar in Europe is seriously prejudiced
as was emphasized by Senator Robert
L. Owen, and the United States, in it's
turn, is not getting good value, yet a
heavy flow of cheap British goods into
American markets is not desired
Great Britain is nervous over the effect
of a German indemnity represented by
a flood of commodities destructive of
home industries. and Americas objec-
tlon to payment by the Allies of sums
owing by low valued goods is not less
substantial and actually supports the
British objection to a widespread fall
in prices. To find way around the
opposing forces and preserve a good
understanding will be test of the
craftsmanship of all nations 1t may
we'll be doubted if quick remedy ex-
lists for the load of economic troubles
and much patience is called for. I'm
due haste merely would aggravatc the
situation.