The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-05-28
no sTABILIZE FINANCE.

The Presidents message to congress was sat |
isfactory as a whole To the business community
the remarks that particularly pleased were those
favoring the return of the railroads to their own
ers, says Henry CIews, in his weekly report.
Mr.. Wilson, during the remainder of his term,
will doubtless pursue a conservative policy, do
ing what he can to aid reconstruction, and not
initiate new or striking measures that would in
vite conflict with a republican congress which
he cannot control. The new session promises to
see considerable necessary legislation accomp-
lished, and little new important business. There
may be a great deal of fractional controversy,
especially on conduct of the war, and because of
an approaching presidential campaign, but much
of this will be for political purposes. There is
much room for tax reform and economy, though
slight signs of either at present.
Germany SHES hard at the peace treaty. Some
slight notifications may be allowed. and de-
spite delay she will sign it. Protests are useless
and will not be seriously considered, coming from
a nation that would have enforced infinitely
harsher terms had the allies been the vanquished
parties. The sooner Germany acquiesces the
sooner will the barrier against her be removed
and her industries allowed to resume Very con-
siderable quantities of raw materials will prompt
ly cross the German borders, though no very
tensive commerce can be expected until quieter
political and industrial conditions are restored.
German factories have not been injured in
France and Belgium; but her losses in skilled
labor have been great, coal and iron will be less
accessible. and her supplies of many raw ma
terials are of course completely exhausted.
Months will be required before industrial Ger
many can secure a fair start, or export goods to
any important extent.
Foreign exchange again made sensational de-
clines, particularly francs and lire, which
touched low records This is accounted for by
the abnormal conditions of foreign trade and the
huge disparity between exports and imports.
The necessity for averting crisis by con-
certed action led to efforts toward formation of
powerful banking pool with which to stabilize
foreign exchange and assist in financing our
enormous exports to Europe, which must con-
tinue for some time to come. The conditions of
our export trade are strikingly abnormal. The
total of exports for April was $715000,00O, an
increase of 500, 100000 over the previous high
record. 1t was also $110,000,000 above the prev
ious month. Compared with the same month
last year, they were $214, 900, 900 larger. These
figures left an excess of exports over imports of
$442, 100000 in April, against $221,000000 a
year ago. For the ten months of the fiscal year
100000 over 1918, and imports reached only ST.
474, 00O,0 900, an increase of $112, 100000 These
figures left an excess of exports for the ten
months of 1921 900, 000 against So, 531 900, 900
last year. No wonder the exchange market is
demoralized. Such abnormal conditions require
unusual precautionary treatment Foreign in
debtedness is growing at tremendous rate and
if in order to place Europe upon its feet further
credits to be granted, they must be placed
under the control of skilled banking experts.
Fortunately our government has shut down upon
giving foreign credits, and applicants now
coming to domestic bankers, who better
judges than any government officials. Europe
needs and must have the food and raw materials
which have to spare; and the soundest way
of securing payment is to encourage industrial
rehabilitation, so that we may receive payment
in commodities rather than in instruments of
credit, which only postpone settlement.
The league covenant informs that Hedjaz
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