Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-22

Henry C1ews-The situation at Paris
and Weimar and the question whether
the German representatives will or
will not sign the peace treaty in the
slightly amended form which has
| been offered to them still constitutes
| tho central and overshadowing ques-
| ton of international business and
finance. Eventually the Germans must
accept the terms which are offered
to them, even though there may be
an interval of hesitation or refusal be-
fore the inevitable is reached. Mean
time this protracting of the discus
sion is naturally source OF some
anxiety to business and finance. That
such anxiety is regarded only tempo
rary is, however, indicated by the
active efforts now on foot for arrang-
ing the peaceful financing OF our e1-
port trade upon a grand scale.
Foreign financial conditions have thus
become the dominant factor in our Sc
curities market. How to finance our ex-
port trade on some sound basis Is mucn
more than an export problem: II IN
wolves the question how much money
shall be allotted to domestic financing
and to the support of speculative opera
lions at home. This situation came
to a point last week with the estabiisn.
ment Of a rate for call money which at
one ClIne reached 10 per cent, dHi VIZ
the recognition on the part Of both fed
eral officials and local bankers that the
time had come for some action which
would be conclusive. This feeling has
given rise to the establishment of COM
mittees and the calling of conferences
designed to produce some definite re-
suit within a comparatively short time.
The result. whatever it may be. will ex-
ert the utmost influence upon general
market conditions. It is to be expected
that we shall not succeed in financing
the export trade upon the very high
Is also to be expected that we shall show
both the good sense and consideration
for the needs of European industry
which will provide for reasonable accom-
modations to foreigners.
The desirability Of providing mod
erately for the financing Of our ex-
port trade. and at the same time of
absorbing some very attractive Sc
curities by the exercise of little
thrift, ought to be obvious to inves-
tors who have been as well trained as
ours have been during the course of
the war. We do not want commodity
prices to go much higher than they
are at present, yet they Will certainly
do so If we continue to spend our saw
ings in making a demand for goods
which Europe is at the same time try
ing to buy. Particularly will this be
true II we insist on getting paid In
gold for the balance that is due us:
Since the gold embargo was taken off
We have lost some yellow metal al
though hardly enough to offset our
recent gains from domestic produc-
ton and importations. Prices are ris-
ing both here and in England. as the
current index numbers show, and the
eed for saving is again emphasized
both by high rates for money and
good returns on investments. unusual
values for stocks and real estate and
demands for funds for foreign financ-
ing. All influences seem to combine
to urge upon the individual the desir-
ability Of thrift and the careful In
vestment of his funds in some Of the
forms now so numerous that cannot
help paying him good returns.
]. S. Bache & Co.-Congress Is be-
stirring itself for an official inquiry
into the administrations management
Of the Mexican situation for the last
nine years, and the Wall Street Jour
nails suggestion Is that the inquiry
start with present conditions and
work backward. In the immediate
foreground is the recent scurry across
returned after soaring off the bandits.
This has aroused CarranZa to make a
newspaper protest against invasion.
1t Is interesting to consider what
would have been our position under
the league of nations. in its present
immature shape, III case OF SuCn an IN
cident or expedition. Would we have
had to wait for submission of our
grievance to the league, meantime al
lowing Americans on this side to be
killed of by the stray bullets of the
contending factions, or, acting with
out consultation, If we had done ex-
actly what was done, would we stand
as disgraced members Of the league,
subject to heavy penalty?
1t is possible that a league of ma