New-York tribune., 1919-12-27
"The 1920 Issue
Production As Affected by the Rate
of Exchange

TO the Editor of The Tribune.
Sir: The editorial entitled "The 1920
Issue brings before your readers
question of vital Importance to the
welfare of our country.
Production must be maintained so
that the capital invested in our great
industries may continue to furnish en-
ployment for the millions who depend
upon such employment for their liyeli-
hood. But we must have markets in
which to sell this production.
Already some industries are faced
with the possibility of having to cur
tail production and release thousands
OF people from employment because the
markets for their products are dwin-
ding. The unfavorable position of for
eign exchange, as compared with our
own, has brought about this critical
condition.
Prior to the war, when exchange was
normal, and during the war, through
necessity, we had a great market
abroad for our proaucts To-day,
when European currency is so much
deprecated rs compared with our own
and production is increasing in Euro
pean countries, the European buyers
cannot afford TO come to this country
for their supplies. Those supplies
which European buyers cannot obtain
at home they must now go without or
try to obtain from their European
neighbors, the currency Of whose eoun-
tries is more nearly at par with that
of the purchaser.
1t is utterly out of the question to
expect European buyers to purchase
large quantities Of goods from us for
which, based on the present rates of
exchange as compared with the normal
rate, they will have to pay us at the
rate of anywhere from $50 to $l5 for
each 81 worth of goods, as would be the
case, for example, with the buyers of
Italy or Poland
Ii we are to retain our European
markets, wherein to sell the products
of our country, we must grant to Euro
pean buyers long-term dollar credits
with which to buy our goods.
If you held a mortgage on my house
and the mortgage was becoming due,
and through force of circumstances
had been incapacitated from work for
five years, and so was unable to earn
the money with which to pay my loan,
and | came to you and said, "Here,
now, am we'll again. / owe you $4,000
on my house. l have salary which
will pay me 700 q year and it will
cost me $4,000 a year to live; extend
my mortgage one year, so that I can
pay you. What good Is it to you to
take my house, unless you want to
break me and lose your own money? The
value of my house has deprecated to
only $4,000" Would you not extend the
credit?
This is what the business men of
friendly Europe are asking of us to-
day. They do not come to US begging
they do not have to-but they are
coming to us with a raightforward
business proposition, asking us to ex-
tend their loans and to grant them
'o"S NiSui'o' "ith "HiSH tney CAN op-
tain the necessary supplies to feed and
clothe the peoples Of their countries
and reestablish their industries, so
that they can pay us back the money
which they owe us.
This proposition should appeal to
any fairminded American whether he
be merchant, a banker, manu-
facturer or laborer; for it will bring
back to us, if accepted. the money
which we have loaned; it will keep our
factories going and our laboring men
in employment, and it will give our
friends in Europe fair chance.
HIRAM BARNEY.
New York. Dec. "a, 1919.