Every evening, Wilmington daily commercial., 1919-12-24
U.S., WORLD BANKER
MUST EXTEND MORE
CREDIT TO EUROPE
Britishcr Explains Causes of De
rnoralization of Foreign Ex-
changes Now so Con
spicuous.
TREATY DELAY BLAMED
Iv Ax.s,c,.,x, Press co Every Evrsnfns

BY Associated Press 20 Evury svsnfTN
New York, Dec. 23.-Threc factors IN
the decentralization Of foreign exchange,
intelligible TO the average man, rise above
the complexities of the present situation,
according to old-t timers 10 Wall street.
These are: % Allied and other nations
of the world owe the United States ap-
proxinatelv Sl5,000, 100000.
~ American manufacturers hesitate,
owing 10 peace treaty uncertainty. to
accent big advance foreign orders,
l3) England S virtual suspension OF gold
exports outside the British colonies Is re-
pulsing Amori'pu trade.
Just WHY b British pound sterling,
normally woTtn 81 $500 IN American gold,
, should have declined so much since the
war ended, and what it all means Is an
obscure question said a New York
financial expert. The present situation,
SIR George Paish's apprchcnsions not
withstanding, is by no means hopeless
Prophecies of 3 breakdown OF cfcoit he
not well founded.
America, the storehotrs OF the world
and now the world banker, Is IN the same
Dosition England was In after the Napole-
ionlc and American Civil wars. She bought
he cheap securities OF Impoverished ma
tlons in a most prodigious manner and
thereby laid the foundation for her fururc
wealth. We must do likewise and do It
within the next two or three years by which
time these abnormal conditions Will havc
passed.
more below par England can sell 70 the
United States 1T great advaniagc- We
can sell American goods abroad only at
disadvantage because We must add the
abnormal rate Of exchange 70 the goods 70
get into foreign markets Premier Lloyd
George recently declared, when stcring
was selling at 4 discount Of 10 pcr cent.
mat the discount really represented
protective tariff Of Is per cent on goods
manufactured in England. Certainty I
Is helping 70 keep American goods out
of that country
The onlv remedy for thls condition IS
for The United States 10 buy foreign Sc
clrities and extend long tune credit for
merchandise We are in a strong economic
POSITION. The nations Of Europe must have
our cotton and wheat and. since they arc
50 heavily indebted 10 US and we must
extend them many more millions 10 put
them on their feet what is the difference
whether we huv their bonds or send them
our merchandise
"Fycryonc IN Wall street knows that #
The Deacc Treaty had bccn signed II
Washington sn international t.Nchangc
Committee would have been organized
long before nov TO stabilize exchange and
bring about other Necessary ready tTncntS
Never during the darkest days of The war
when the Germans were almost st Paris,
did British snd French exchange 80 70
where IL is now. The British, during the
war. bv system of CREDITS with the United
states, had sterling 'pegged 70 S4.52-
The tension over the gold exports CTR
tailed there was nothing - keep IL that
close TO parity. Indeed, unless the nited
~tstcs looeens its purse strings there arc
London financial experts who say the
pound sterling viii drop Is loV s. $40.
That would be 3 calamity 1t would be
tuo-edged sword iniurIng both England
and the United States,
Europe Is like man on the verge q
death due to starvation. When yau md
such 40 unfortunate you feed him gTadu--
ally until tie stomach becomes accustomed
% dlgesting food. Now our aim has been
all along 70 stuff Europe with all kinds
# American products. We have piled up
8 trade balance, according to former
secretary Of Commerce Rcdfeld sFgre-
eating S4.0O0000.O00 9 wear Europes
financial system. like the starved human
stomach, has been unable 10 assimIlate
a. Consequently, we thus contribute to
the characterization Of foreign exchange
md. incidentally, by imitation help 70
lower the purchasing power Of our own
dollar
When vou consider. as Mr. Redheld
POINTS out, that 81 600 OO0. 900 represents
American dollars at par and must DC
rald BY those who owe II IN deprecisted
currencies, making it the equivalent Of
5000 900 900, the result cannot be
healthful 10 future American trade and
-ommerce foreign buyers are going into
more favorable markets