The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-07-18

The economic effect of the various
provisions of the peace treaty upon
International trade and the possible
extent 70 which lis operation may de.
termtnn future commercial and in
dustrial relations between the nations
involved are discussed in the current
issue OF American Goods and For
eign Markets - the semi-m onthly re-
view Ct foreign trade relations issued
by the Guaranty Trust Company of
New York The bulletin says, in part:
The several peace treaties have
economic implications which will re-
auire many years to become clear.
! The mere EffiXing of the official seals.
and the ratification by the several ma
tons which is expected TO follow do
not automatically usher in the new
era It is the execution of the treaty
, and the utilization Of the extra-treaty
forces which are abroad in the world
that win determine the future devel-
I opment OF nations, and so the course
OF industry and commerce.
/ In its main features, however, the
! treaty is explicit enough and unless
j other forces. not comprehended In
. its various clauses. change the aspect
! of the world, 1t is perhaps possible
/ 20 state in general and qualified terms
some of the outstanding features OF
the present economic international
situation, and to indicate the main
factors which may operate In the
establishment of the new trade rela-
tons"
Reduction OF Germany's mineral
wealth and a corresponding increase
In the wealth OF France leave Ger
many in the position OF new nation
attended by the difficulties naturally
,ot f,, .zto i,g to{ss ia
trade for the first time, Predicting
the adoption Of new trade policies bS
Germany. the bulletin says.
Germany loses much Of her Goa
and iron In the settlement. Although
freed Of the cost OF maintaining an i'm
menae military and naval establish
ment, she must nevertheless pay, moi
alone her debts to her own people
which she may presently decide tc
rrpudtttte. thought OF course ithoaf
using the word~-but also the indem.
nifty imposed by the allies, She is
stripped OF her colonies and merchant
marines and likewise of much Of tbs
commercial and Industrial establish
inent she has built up in other coun.
tries In the past generation. Sht
must resume operations almost a
The beginning, and carry. on her trade
under the doubts handicap Of tire
n endous external debt and vast los,
of prestige Moreover, her new gov
crnmert cannot be expected to coun
tenance the trade practices OF tn.
past which, whatever they offered ir
the way OF Immediate wealth to hel
business men. were a huredn upor
the great mass OF her people"
Concerning the future trade policy
7 OF France. the review forecasts a.
follows:
To-day France faces a. new regime
5 different from the old as a bee
from a butterfly. The restoration oil
Alsaoe and Lorraine and the con.
troll of the coal Of the Sarre vale,
give her an opportunity for Industrial
| expansion 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 viii be forced to adopt changed
methods OF production--those which,
| fortunately enough, are best applied
! 10 the heavier Industries Thus, II is
! not surprising 10 see the French plan
4 ming to turn out an automobile al
most on a par in first cost and in
| operation expense with the cheap and
| popular American makes. Compare
| such a product with the types OF
motor with which we associate France
today, and the changed outlook of
, the nation IL made graphic.
There Is another force making for
the development in France OF an ex-
portable surplus of magnitude
/ hitherto undreamed OF. The great
external debt can be paid. in the last
analysis. only in goods. Great
changes will have to he made in the
governments fiscal policy. and future
dependence and the future budgets
of the country will almost surely be
financed with greater weight laid up
on taxation than upon bond issues"
Separated from the scene OF the
deciding struggle by half the cir
conference Of the earth, ii is never
theless true that Of all the chief belli.
serents Japan energies with the
greatest proportional increase of
power and prestige, and the best pros
rect for immediate material gain
Half century ago. Japan was an
Isolated and unimportant little coun-
try, over populated. and ekeing out
bare agrarian existence with little
or no contact with the world.
To-day she stands accepted as one
OF the great powers of the earth. Her
Industrial capacity has been doubled