Evening star., 1919-08-03
CREDIT
SERIOUS PROBLEM
U. S. Exporters Not Yet Able
to Overcome Difficulties in
Exchange Situation.
POSITION IS SPECULATIVE

Problems which must be solvedrhe-
fore resumption of trade with Ger
many on a normal basis is to be ex-
pected are discussed in American
Goods and Foreign Markets. the semi.
monthly review of foreign trade con-
ditions issued by the Guaranty Trust
Company of New York.
Discussions with American ex-
porters." says the Review. regarding
the possibilities of doing business In
Germany. at the present time disclose
the fact that not only the extension
of credit, ranging from six monthshto
one or two years, is involved. butthat
the hAal guarantee of payment is
usually expressed in marks, not--in
dollars.
'This is due to the fact that oths
German government has imposed re.
strictions on the export of marks
(capitaD In order to stabilize the rate
a deal the American merchant would
be taking a speculative position In
regard to the value of the mark, at
the end of the period specified. 81
Difficulty Not Yet Overcome
"This same exchange situation has
already been very carefully corsad-
cred in regard to the proposed financ.
ing of exports to several of the Euro
pean countries where exchange has
been subject to the control of their
respective governments on accou,pt.of
its instability. Naturally, American
manufacturers wish to transact buei.
ness on the basis of American dollars,
or on the basis of a foreign exchange,
L. - t4t f,,ttt frr ry-tQ
can be made. thus insurlng the dollar
amount which would be available,
This difficulty has not yet been over.
come to the satisfaction of the export
field" ~.
The various forms of credit and
the functions of the investment mar
ket in the readjustment are brought
out and the Review then continAesi
'It is not impossible. that with the
arguments which may be brought
forward as to the Importance to the
world of a speedy restoration OF
Germany to her place among the ma
tions, this whole series of objections
may be successfully met and liberal
credit supplied for the immediate
needs of industrial Germany. Even
so. it must be evident that sufficient
credit could not be supplied to keep
very great length of time. unless
Germany be allowed to sell at.1east
q part Of her product in this market
Pre-war Conditions. 20
rIn pre-war days her sales here
were not much under $500, ,000, 900 an.
nually. The United States. in tqact
was one of her best markets. and ths
balance of trade in favor of the.Unit.
ed States was to some extent ffdui-
dated by payments of royalties and
dividends. Germany will not for
long time receive royalties or .divi-
dends from this country. We could
not supply credit on a scale sufficient
to allow her to continue to buy pvei
a long period. The only remaining
course Is to buy her goods.
Potash and dyes were the LEADERS
among German sales to us BEFORE
1914, but Germany is in effect specifi-
cally forbidden to sell either of these
products to US at the present stime.
The great bulk of the remaining asales
was made up of small manufactured
cotton. silks, hosiery. textiles oral
tBorts. cutlery, chinaware, toys and
similar articles. such as are used lby
the ultimate consumer for his per.
| sonal comfort and convenience. 1T ID
here that the concern of the citizen
as such. becomes evident"
The publication gives brief sum.
maries of conditions In the leading
countries in which American products
are in demand.