Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-05-20

Henry Clews & Co.'s weekly financial re-
view says:
Peace negotiations drag slowly along, but
naturally balks at the terms imposed, which
are reasonable and not immoderate con-
sdering the enormity of the crimes COM
mitted. .Bolshevism is on the wane, and
after the peace treaty has been actually
signed return to the normal will progress
more rapidly. One of the first steps will
be removal of the embargo against Germany,
which must be an eager buyer of oil, cot
Germany may be small for the simple rea-
son that Germany has little to send; other
ruInors to the contrary. Our foreign trade
as a whole will, however, receive a fresh
impetus through the release of a larger tom
mage for mercantile purposes, even though
big portion will be required for bringing
home our army. On the other hand more
German ships will be released and the
worlds shipping is being augmented by in
tensified building in all parts It the world
the total under construction now being
about 100000 gross tons, of which 5,541,-
900 tons are in the United States and
g, 254 900 tons in the United Kingdom.
Rapid Expansion of Exports
The rate at which our foreign commerce is
expanding is indicated by estimates that
we shall have favorable trade balance OF
So, 900, 000, 900 for the fiscal year ending
June 80. OF course, Europe cannot pay for
this amount in goods or gold. The debt
thus incurred must be adjusted partly l
credits and partly by investments al
etc. How far this debt can be financed
here is one of the future problems The
number Of foreign banks that have opened
branches IN this country and, vice versa,
the number of American institutions that
have opened offices abroad is much larger
than commonly supposed and shows the drift
of preparations. Our financial resources,
however, are sure to be taxed to the ut
most, for home demands will be even more
n oT31
s1deratton. The only remedy will be for
Europe to stop fighting and get busy pro-
ducing those articles which can be ex-
changed for American food and other snro-
duce. Foreign trade is simply barter, and
payment in desirable goods is far more sat
fsfactorry than payment in gold securities
or various forms of credit.
Solve the Railroad Question
Congress will open Monday and its most
important problem after organizing will be
the railroads: The situation of this vast
interest requires immediate attention. 1t
represents about $40, 900, OO0, goo of capital
and approximately one-tenth of our national
wealth. Were it not for the fact that they
are backed by the United States treasury,
is really not the fault of the railroads them
selves or the lack of freight business. Be-
fore the war the drift was seen and when
the stress of mobilization was added their
breakdown was to be expected. The war has
only made their position worse through a
heavy increase of expenses, which raised OPP
Grating costs to the ruinous ratio of almost
90 per cent. In the Year before the war;
under private management, gross earnings
were $S11 900, O0O and net 1000, 900: while
this year, under government management,
the net was only 500, 100000 though gross
mounted to $1,100. 100000.
Taxation and the Money Market
The problem OF taxation will again be
forced upon congress. Government expenses
and losses from var are proving far more
than expected. The treasury is threatened
with outlays almost If not quite heavy
as for the year Just closing. The Victory
Loan is practically spent, and as no more
loans are to be issued, the treasury can