Republican farmer., 1919-06-20
TRADE SITUATION IN MAY SHOWED BIG ClMPROVEMENT


 | ment in domestic and foreign in- dustrial and trade conditions, and this stabilizatfon Is daily gaining strength, according to The Export American Industries, official organ | of the National Associati ton of Manu- lecturers. The removal of war re- strictions, including the abolition of | biacklists, Is being strongly felt by American exporters and streams of inquiries are coming from all the trade centers of the world for quo- | tations on every variety of raw and manufa cured materials. The move ment by the banks to extend foreign loans without government assurances and the developments of wider markets for long term credit docu ments indicates that the upward turn in normal commercial activity has been reached.
 The signing of the peace treaty will do much toward allaying the remaining uncertainty of the finan- cial and trade situation. It will mean In effect that reconstruction is to be- gin in earnest. The world of com merce Is most eager to put the war and its havoc behind it and to settle down to the task of rehabilitation. All of the nations expecting indemni
 ties from Gtrmany are making ex- ltHSlN6 plaHS IdnC6 SSpeCldIly IS absolutely counting on the huge enemy indemnity to set her industrial wheels in motion again, and she ex- poets the banks of the United States to provide the necessary gold against the German promise to pay. to under take her rehabilitation.
 Financing Foreign Trade.
 The financing of foreign trade Is a subject that is occupying a large share of the attention of American business at the present time. Not only is it necessary to assist the business man of America in his foreign trade enterprises; it is also very essential to fix a policy of ex- tending credit to the war stricken countries of Europe. It is evident that it is no longer the part of the government to make further ad- vances for this purpose. The war is over and extension of credit by the government, being purely a war measure should no longer be resort ed to. Return to normal conditions can best be hastened by leaving the question of foreign finance in the hands of the banks. whose province 1t is to manage such affairs. France indeed, has expressed her opinion that the financing of her reconstruc- ton needs should be handled by private organization of American bankers who can deal directly with the French fnanciers and manu- lecturers.
 More Foreign Trade Companies.
 The establishment of foreign trad ing corporations in the United States still goes on. Within the last few weeks two more have been formed, one primarily for trading in South A and stimulating commerce in the Levant. The latter company, spon- sored by the Tobacco Products Cor poration and including many of the largest merchandising firms in the country, plans a widespread organ ization which promises to be modern replica of the famous Hud- son Bay Company, embracing not only an extensive business organiza- tion in the United States but a ship line of its own and a caravan trade in the Near East regions.
 The recognition by the allies of the Kolchak government in Russia will undoubtedly tend to stabilize Russian affairs, political, industrial and financial. Russia is in desperate need of outside assistance and her work of reconstruction cannot be car ried on without foreign aid. Official allied recognition will enable the Russian government to borrow money from the allies and will make 1t possible for private business to go into Russia, backed by the govern mental guaranty. She needs every thing in the way of manufactured products. To the natural question as to how she is to pay for these products, the reply is that she will establish credits through the sale of foodstuffs, flax, various mineral prod ucts abundant in Ru~Jia and lumber, which was her principal export in pre-war times. Even a reasonably stable government will enable Rus sian business men to contrive suf- fcient commercial machinery to ex- port these raw materials. Potential ly, Russia is one of the greatest pro- ducing countries in the world and the world should try to make 1t easy for her to realize her possi- bilities. Her political and commercial rehabilitation means the opening up of great new market for foreign trade and one of which the United States should be quick to take ad- vantage.
 Great Britain Hard Hit.
 British labor difficulties have sori- ously hampered manufacturers and British trade Is not regafning it's lost ground as rapidly 1t could wish. The British factories need work badly and are suffering from American competition to a great extent The re- construction labor policies of the government and the extreme labor unrest have put up production costs to the point where 1t is almost inn possible to meet American competi- ton. Just recently several largt iron and steel orders from France and Belgium were lost to England and placed in the United States. Even in her colonial trade Great Britain will be forced to change her business methods If she is to conquer Ameri- can competition.
 An item of trade interest is the waning of Japan's war time trade boom. She Is no longer exporting on the large scale of the war period hut is ,-aa,arninR her farmer