The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-01
Exports Hit Highest Monthly
Record, While Imports
F; Are Low.
EXCHANGE MAY BE WORSE
National City Bank, Discuss
ing Situation, Secs Causes
for Anxiety.

.ocsnion OF the National City Bank as
suppressed In Its monthly bulletin on ESQ.,
nonie conditions. with continued big
incnthly advance IN the excess Oh Amer
ban exports compared with imports, the
hlsA mark OF s7,f2s. 0oo. 300 trade bal
aaee IN Amsricss favor was recorded
rcr the fiscal year ended on June 30. the
b1retin points out The bank, however.
ts confident that with proper care those
conditions ultimately VIII work out IA
vurably for all concerned
- The foreign situation becomes more
critical as time passes" the bulletin says
This country's exports IN June reached
the enormous sum OF ss-s.oeaO0o. ex-
,oeeding ny over 100000 Nes the high
previous months record Imports were
scnfy S298. 600 600, leaving n trade bal
saDce Of Ss25. 600. 900 to be settled IN some
way, nobody knows Just how.
The big balance for June carried the
balance for the nscRl year beyond the
estimates Exports for ire year ended
June 80 aggregated s7,22s, 0o0, 600, a.
compared with $S.s30. 900. 900 In the 1lscal
year 1918. ana imports Aggregated
st1,oes, 900, 900 The trade balance for
thu year as officially reported was s4.-
IFS. Doc, o0A but as the oficial statistics
stfn treat Uver as a money metal and
nct merchandise, the net exports OF
silver, valued At s222. 200. 900. should be
ADDED.
''Tbe exchange situation r. not un-
likely 10 he worse before 4 IL better.
The saarnen's strike the Atlantic
coast ~ this country held I'D shipments
IN yvty and diminished the offerings Of
foreign bills, hut that is over now.
Europe is getting into shape to use raw
materials. hut the foreign exchange
market Is not IN condition to take bills
on an Increased scale or even at the
rate % recent Inonths- II they are Of
sfered IN such amounts rates viii inevi-
tally fall and continue TO fall until ex-
ports are checked or some arrange
.rnsnts are made for converting the bills
tnto long time obligations.
: Reports are current that foreign
orders are being cancelled rs a result
81 the threatening situation and II Ia
cifhcult TO see how any one can take
the risk which attaches to transactions
70 be closed. Sir George PAish is quoted
an saying in London that sterling ex-
change may go 10 -. II would not
sssT 5-STi tt.s-Fz E-..css .e--za.= S=-..s Sss-s,
anto balance or the heavy discount IN
ouced American tnveznent in British
securities. There are. OF course, SIN
considerable holdings OF American Sc
ourities IN England and II would Bee.n
that present exchange rates in conjunc-
tion with the rise Of the New York
security market would bring them out
2. Must Give Europe Time.
=; 20 IT In idle to talk OF helping this
situation with ordinary eoInEnere.isi
credits The trade situation cannot
right itself In six months or even a
Yoar. Time must be allowed for Europe
10 Eet Its industries into operation and
liouidate these Obligations with its own
exports. Furthermore. every proposal
which conterplRtes use Of the Federal
reserve banks should be condemned
This Is not their kind of business ana
az nigh time to stop expanding these
nanks 10 take care of every new demand
Investment capital should be found
Finally, we must expect TO admit
me products Of our dsbtors'to our mar
kets- II VIII be folly 10 make loans
which can never be paid except IN their
products and then deliberately close orIr
markets 10 thetr products We have NOT
yet as a people RssimnAted the idea that
fpreign trade is fundamentally an ex-
change Of commodities and services As
In domestic trade
1T lis not altogether cleRr which side
most Interested in stAbilizing the ex-
changes. II nothing is done ana Amer
loan exports curtaDed. prices viii fan
rapidly In this country Some peonle
think this would be beneficial The COST
OF living would come down. The problem
81 Imitation would be solved This would
! be the firH country In the world TO get
hack To G normal basis but the effects
would nut be altogether agreeable In
duBtry would be disorsznized by such a
sudden loss OF markets. We would be
thrown back on our own resources and
n would be some time before the dornes-
tic market would furnish employment 10
AZ the wage eRrners- We would have a
lo2 of production at n time whan great
need for II exists.
On the other hand Europe cannot get
Eipng without our cotton, grain, rnents,
copper and other raw materials. With
OUT them people viii stRrve, industry
VIII atngnRte and social chaos will 70
muir
The truth In that the situation IA
injurious to both sides and II ought 70
be remedied by intelligent public spir-
tied action The United States In not
only interested in correcting the Hitu-
alton. but is bettsr able than any other
country TO DO IT. II II fails TO meet the
emergency IT win be difficult TO make
any other explanation than that we DO
not as yet recognize the responsible lities
that properly belong 70 our position IN
world AFFAIRS or know how TO act ma
1tonally for the protection OF our in
psrest8-
Foreign Trade Convention
'For the purpose Of awakening q gen.
sra interest IN the trade situation and
spreading information on the subject
the Chamber OF Commerce Of the United
States has arranged an international
c0nferenoe. which IL 10 be opened at
Atlantic City on October g. Invitations
were sent TO q number OF European
governments proposing that they appoint
members 10 q Joint commercial comma
sion 10 attend the conference and make
tour Of the country as the guests OF
the chamber and Rfiilisted local bodies
The subject OF discussion viii be the part
which this country can play in the rehA-
bilitation Of Europe. Formal acceptance
o. the invitation has been received from
the governments Of Great Britain, Bel
GUM, France and Italy. which assures
Huccess 10 the enterprise The Bacrotar-y
" the chamber has gone abroad 10 com
piete arrangements
This promises TO be a notable event,
and should accomplish much IN aiding
our people 10 q fun comprehension of
their relations 10 the world situation
Considerations related 10 Government
financing, having regard for obligations
arising from the Fifth and Victory loans
and future borrowings from the banks
have influenced tho Federal reserve nu-
flOritief aRainat an advance NJ (iiaur,ffrf