The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1919-12-24
(By The Associated Press.).

(By The Associated Press.)
New York, Dec. 23.-Three factors
in the Generalization of foreign ex-
change, Ineligible to the average
man, rise above the complexities of
old-timers in Wall street.
These are: ~ Allied and other
nations of the world owe the United
States approximately SIS 5000, 0O0, 900;
(2OAmerican manufacturers hest
tate, owing to peace treaty uncertain
ty, to accept big advance foreign or
ders;
(3) England's virtual suspension of
gold exports outside the British col
onies is repulsing American trade.
Present Situation Very Hopeful.
"Just why the British pound sterl-
ing, normally worth $4.8665 in Ameri-
can gold, should have declined so
much since the wal ended, and what
it all means is an obscure question"
said a New York financial expert.
"The present situation, Sir George
Paish's apprehensions nothwithstand-
ing, is by no means hopeless. Pro-
phecies of a breakdown of credit are
not well founded.
america, the storehouse of the
world AMI now the worlds banker, is
in the same position England was in
after the Napoleonic and American CT
vii wars. She bought the cheap Sc
curities of impoverished nations in q
most prodigious manner and thereby
laid the foundation for her future
wealth. We must do likewise and do
it within the next two or thee years
by which time these abnormal condi-
tions will have passed.
with pound sterling Is per cent or
more below par England can sell to
the United States at a great advan-
tage because we must add the abnor-
NAL rate of exchange to the goods to
get into foreign markets. Premier
Lloyd George recently declared, when
sterling was selling at a discount of
Is per cent, that the discount really
represented a protective tariff of Is
per cent on goods manufactured in
England. Certainly it is helping to
keep American goods out of that
country.
U. S. Must Buy Foreign Securities
"The only remedy for this condition
is for the United States to buy for
cign securities and extend long time
credit for merchandise. We are in a
strong economic position. The ma
tions of Europe must have cur cotton
and wheat and, since they are SO
heavily indebted to us and we must
extend them many mor millions to
put them IN their feet what is the diff
ference whether we buy their bonds
or send them our merchandise?
Everyone in Wall street knows
that if the Peace Treaty had been
signed in Washington an Information
al Exchange Committee would have
been organized long before now to es-
tablish exchange and bring about 9TH
er necessary readjustments. Never
during the darkest days Of the war,
when the Germans were almost at
Paris, did British and French ex-
change go to where it is now The
British, during the war, by a system
of credits with the United States, had
sterling 'pegged' to $4.52.
"The tension over and gold exports
curtailed there was nothing to KEEP
it that close to parity. Indeed, unles;
the United States loosens its purse
strings there are London financial ex-
perts who say the pound sterling will
drop as low as $3.50. That would b<
a calamity. It would be a two-edgeG
sword injuring both England and the
United States.
Europe Like Man on Death Verge"
Europe is like u man on the verge
Of de4th due to starvation. When yor
find such an unfortunate you feed hin
gradually until the stomach become.
accustomed to digesting food. Nov
our aim has been all along to stuff
Europe NTH all kinds Of American
products We have piled up a trad,
balance .c@ .ording to former Secretar,
of Commerce Redfeld, aggregatinf
$4,000,000,OOo a year. Europe's Il
: nancial system, like the starved hu
man stomach, has been unable to as
simulate it. Consequently, we thu
contributed to the decentralization O
foreign exchange, and, incidentally
by imitation help to lower the purchas
ing power Of our own dollar.
; when you consider, as Mr.. Red
field points out, that $4,000,000,0O 0
represents American dollars at pa.
and must be paid by those who owe
, in deprecated currencies, making j
|, the equivalent Of 5000, O00, 900, til,
result cannot be nealthful to futur,
American trade and commerce. For
eign buyers are going into .mors ia
vorable markets"
j.. H~->~l> NaaaAR Ase->