Evening journal., 1919-12-06
JEAN, JOHN And
TONY OWE SAM
They've Got to Have Work or
They Can't Pay.
He Has to Extend Credit or
They Can't Get Work.
Ry FREDERICK NJ. KERRY.

NEW YORK, Dec. b.-WIy s"V"'1
the man out at Browns Crosslns OF
Linoleum City worry about the depre-
citation Of foreign currency as nc
told he should worry! ,.,
What Is the matter with the French
franc, anyway. that the bottom nus
dropped out OF IFS purchasing power
In simple everyday language sNeps
clear Of all lechnicalities, the secohu
question NAV be answered in this way !;
Assume France and the United states
10 be two persons trading win essu
other Call France Jean ana uie
United states SAN" Jean Is horriDly
in debt to sam sam has been selllhs
things to lean and our bills to Jean
have so piled up that he is up against
u 10 nay them off. Jean's been having
hard luck. too, and accidents ana al
that. out OF every dollar Jean earns
he has 20 nay of 80 cents TO sam the
result is OF course, 20 Jean that for an
practical purposes a dollar IS oniy
worth 80 cents 10 him because nan OF
every dollar he earns belongs TO sam
This is not the exact figure, OF course
IL is merely an illustration.
But unless Jean can keep steady
iob and work hard he can't pay m
back. And the place where Jean WORKS
tEurope) is in very bad repair, ana the
mach h'nery he Is using needs fixing up
and lot OF his tools are broken and
besides Jean Isn't in very good he 'lth'
and he's missed a lot OF time due 10
the war.
Jean can't go on working unless
somebody puts up some more money
TO fx his workshop iEurOpel and mend
the broken tools and help him get well
and make up for lost time. II some
body doesn't put up that money, then
Jean will be unable 10 pay back the
% cents out OF each dOllar he Is max
ing now. and Sam will never get his
money back.
What is true OF Jean Is slightly
less true Of John England and Is more
true OF Tony (Italy) and still more
true OF other fellows over there.
The fact IS that Europe has borrow
ed and borrowed against her future
productivity to such an extent that the
paper money issued by the govern
ments TO represent these loans Is grow
ing less and less In value. And because
Il Is growing less valuable, II takes
more Of Il to buy things in the United
states and The more that is bought
from the United States the less mer-
chants in the United states are inclined
to take theSFrench franc and the Ital-
ian lire and even the British pound
sterling. because they are likely 20 be
less and less valuable. Result: for
elgn trade is stopping and Is likely to
stop altogether. And II This happens,
Europe may never be able 10 pay US,
and the industrial situation In the
United States may be very badly af-
fected indeed. because OF the stoppage
OF the outlet for American products.
Sam has got 10 finance Jean-has got
to lend him still more money! lot
more-if Jean Is to get on his feet and
pay back sam all the back debts.
The United States has sold 10 Europe
In the short space OF ten fonths $685.
10000 worth more Of merchandise than
It got back But that Is only part. To
this huge total must be added an export
banance of 50 490 963.969 accumulated
during 1918, 1917 and 1915.
The net result is that we have sent
abroad nearly thirteen billion dollars
worth OF merchandise more than we
have got back. In a period Of 46 months.
No nation ever before had such a
one-sided balance OF .rade. These gi-
gantic shipments of Europe We're Offset
during the war. and In early part Of his
year by credits granted by the U. s.
government TO European government.
In June, however, such credits ceased
entirely. There was some break in the
exchange rates European money de-
clined In value measured in American
dollars) in March, but It was IN June
that the great break began, which car
rled English sterling down below s4.06.
French francs down to $50 francs TO
the dollar and italian lire down TO
1886 10 the dollar