The Washington times., 1919-10-23
Boersianer's
Comment
on Business
BY BOERsIANER-

Casual succor does not avail in for
eign exchange. Sterling. francs. lire
and marks have relapsed to the or
ganic weakness of a fortnight ago.
The loan to care for the British ma
turity here, plus a hundred million
and more to round out the carry
over transaction; the prospect of
fresh French borrowing; reports of a
further advance to Italy; Mr.. Glass
helping hand these incidentals. as
they prove to be, are borne down to
swift invisibility by the ccnstitu-
tional weight or a market that calls
for unlimited and indefinite support.
The thus far superficial moves and
schemes to uphold foreign moneys
have also ignored the inexorable
exigency that the currencies of Eu-
rope and America are interdepend-
ent and will be interdependent for a
long time.
1t is recognized by astute and
prescient exchangers-tc take one
aspect of a complicated situation
that French francs cannot advance
IL German marks have no resiliency.
France is Americas heaviest debtor.
The. money hope of France lies in the
German indemnity. If Germany does
not indemnify France cashwise, the
latter loses a quick asset. Germany
can't pay unless she be furnished
the raw material with which to go
to work. There are other contin-
gencies deeply interesting to Amer
leans, who will soon be asked to do
for French individuals what the U.
s. Government did for the French
government. One-the chief of
these-is the election to be held in
France next month.
Election November 16.
Deputies and senators will be elec-
ted November 16. The lower cham
Der (paramcuntly authoritative Leg
islatively) may become syndical, So
cialist, ultra-radical or just radical.
Clemenceau, as national power,
may be deposed or fortified. II the
former-if syndicalism or Socialism
be regnant-France's financial credit
might suffer, although emnity to-
ward Germany would be no doubt
modified.
The effect in this country of such
an issue were extremely interesting:
especially to Secretary Glass, to the
houses that are to be identified with
the Forthcoming French loan, to the
at the International Trade
in Atlantic City, and
lastly, to the careful and discreet
advocates of the idea of easing the
French governments obligations to
the United States Government by par
tai forgiveness.
Secretary Glass permitted an in
definite deferment of interest due
from France and the other allies.
There is to be proposed to American
bankers, at the Industrial Trade
meeting in Atlantic City. that they
guarantee foreign railroad and indus
trial securities to encourage their
purchase in this country with a view
of stabilizing foreign exchange"
Mr.. Glass action was predicated Of
the same purpose. He allowed
$500. 900, 900 of interest payable to
the American Government to be de-
ferred on the hazard of strengthen
ing the moneys of the allied countries
in America-which were not fortified
by fraction by the Difference. What
the million or more American holders
of languishing American railway Sc
curities will think of the proposal to
have their Bankers guarantee foreign
railway securities is easily conjec-
tured. An expression of the collec-
tive thought must not be attempted
.
material.
Means Are Obvious.
There are means of maintaining
foreign exchange so obviously feas-
able-Senator Edges plan, an instance
that Secretary Glass remission and
the Atlantic City proposal challenge
the charge of maladroitness. Lack of
frankness has fed the steadily spawn
ing insinuation of an insidious move
ment to forgive partly, the debts Of
France and her continental allies to
the United States Government Before
Frenchmen themselves hinted the idea
to Mr.. Vanderlip, a legal curiosity
notorious for an hour or two--gener-
ously proposed total forgiveness,
though all the while he was trying
zealously to protect his personal in
terest by trying to protect an adien
enemy corporation.
Barring Great Britain, which would
not accept a debt acquittal, albeit it
accepted the interest remission under
the euphemism of funding OF in
terest." the possible gift would range
from $4,000. 100000 to $4,000 600, 900.
Before making the tidy present, ii
would not be inadvisable to consult
directly the taxpayers of the United
States.
In any event the altruistic feeling
should be repressed until French
voters determine the character Of
their future government. That gov
ernment will be confronted by serious
social and economic difficulties, not
withstanding a war won, the restitu-
ton of Alsace and Lorraine and
Professionally collectable money in
demnity.
DIIDCAII WOMCN tn