Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1919-06-01

BILE balance of trade is merely the
other side of an increase in our ma
tional money income. The third fear
rests on a yet more fundamental fall
lacy. A general overproduction is i'm
possible. REIMBURSEMENT, rather than
overproduction is our problem-exces-
sive productive capacity in some lines
and interpretation in others. Pro-
| ductiOn and consumption, if rightly
balanced, expand together. Great pro-
j ducers can afford to be great con-
sumers. The remedy proposed by some
! as means Of averting an unfayorable
balance of trade is extensive foreign
Investment, putting foreigners iii funds
with which to purchase our products
This, in any case, would have tenn
porary results only, since it would in
+ crease at compound interest the debt
of the outside world to us. For the
next few years, extensive foreign in
vestn1ents are necessary, but for rea-
sons of different kind. 1t is nee
essary for us to continue lending to
! Europe and sending an exdess of ex-
ports to her, because of her present
weakness and exhaustion, but not be-
cause of our need for market Our
| own domestic market has become a
richer and better market in precise
proportion to our increased producing
power, and to our income from exist
ing foreign investments"
World Short of Cotton.
In discussing the cotton situation
the bank declares that world produc
ton is below what may be regarded
as its normal pre-war average and
that as a result of participation in
the war by all the important cotton
manufacturing countries, stocks of
cotton for civilian consumption cannot
be otherwise than short Although
some time must necessarily lapse be-
fore abnormal conditions adjust them
selves, the bank says, there is every
reason to anticipate a favorable flu
ture both for production of raw cotton
and the manufacture of cotton goods.
Special comment is made regarding
Japan's gain in cotton consumption
which is described as a remarkable
one, and it is pointed out that Japan
has replaced Germany as the third lar
gest cotton consuming country in the
world However, Germany has the
machinery to resume her place is in
Dictated as follows:
Germany had II, $4,000 active spin
dies in 1914. In the number of spindles
as we'll as the consumption of cotton,
she was the third leading nation. SO
far as machinery goes she is prepar-
ed to resume her place as an important
cotton manufacturing country. Russia
had 9,213,000 active spindles in 1913,
France 100000 and Austria-Hungary
1909, 900. Consumption of cotton for
normal civilian uses has been greatly
curtailed in two directions as re-
suit of the war The Central Powers
| did not consume it because they could
| not get it, while British consumption
was somewhat reduced because the
national good judgment demanded cur
| tailment to meet the eXigencies Of the
situation. Not only did Great Britain
curtail her total consumption, but
large part of her spindle capacity as
well as that of the United States was
diverted from civilian to military pur-
poses. The cotton manufacturing IN
dustry expanded in Japan, and, to
lesser degree, in some other countries,
but those countries which before the
war depended on Great Britain and
Germany for their supply of cotton
goods cannot be otherwise than short J"
The turning point in the wool situa-
ton has been passed, the banks re
view declares. On the first of March
half the wool machinery of the coun-
try was idle-'an unparalleled sltua-
ton" but now a marked decrease
in idleness is apparent A reduction IN
the amount of machinery engaged in
government orders, the bank says, in
dicates the beginning of resumption
of normal civilian production and re-
turn of the industry to a peace basis.
Huge Credits Ungranted.
In it's Money Market discussion IN
Commerce Monthly the National Bank
of Commerce in New York points out
that less than $574,0O0000 of credits
authorized for the Allies remains I'M
granted, so that the resumption OF
the financing of trade between this
country and Europe through private
channels is near. A decrease. in the
sales of Liberty Bonds on the Elk
change during the period from April
! Is to May Is, is taken as indicating
that Liberty Bonds are gradually be-
ing absorbed as permanent invest
ments. Now that the Victory Loan IS
over the banks says, the indications
are for moderately lower money rates.
AS to the railroad situation the BANK