The Belding banner-news. (Belding, Mich.) 1918-1973, 1919-12-24

But few people ever give the mat
ter of Foreign Exchange a second
thought, but at this time it is of ser
ious consideration 10 the United States
and especially 10 European countries.
The Pound Sterling today is worth
three dollars and sixty-seven cents
($S.67l instead OF four dollars and
eighty-six cents t$4.S6); the Franc,
ten cents t$.lOl instead Of nineteen
and four-tenths cents l$.19D; and
the German Mark, two cents ($.02)
instead of twenty-three and a half
cents lS.2S5l.
When English importers place an
order for goods in the United States
of America they have TO pay our pres
emit high prices and then find their
Pound Sterling is worth three dollars
and sixty-seven cents t$S.61) In place
Of four dollors and eighty-six cents
(Sz.S6) or a discount Of approximate
IN 25qs and the French importer has
still more serious problem with which
10 contend as the Franc is only worth
50st of its normal value in our mon
ey, and the discount on the German
Mark is practically prohibitive, it be-
ing at discount Of over 90ed.
When the world war broke out in
1914, il was estimated that foreign
countries held listed States stocks,
bonds. and securities, 10 the amount
Of six billion dollars $4,000, 900 ,000,,
,O0l and upwards upon which the d.
vidend and interest charges amounted
10 about three hundred million dol
lars $500. 900 ,000.00) per year, and
this amount was paid TO foreign coun.
tries either in gold or else in merchan-
disc.
For years the Z. s. A. has sold
more goods abroad than she has pur-
chased so that the actual money has
been kept at home instead of having
TO use it TO pay foreign obligations.
AT the breaking out of hostilities, in
August, 1914, a flood Of American Sc
curities was dumped upon the market
and in such enormus volume that the
stock exchanges had TO close and re-
manned so for many weeks. 1t was
then that our exports began 10 in
crease by leaps and bounds, and as
the conflict continued prices scared
until our exports exceeded our i'm
ports in some years over three bill
lion dollars (SS,000. 000, 000. 00) and
today your Uncle Sam is the worlds
hanker-this position is no longer in
the hands of the old lady of Thread
Needle Street
This country has absorbed practi-
cally all of the six billion dollars &C.,
O00, 900 600. 00) of its securities held
in foreign countries previous to the
war and has extended them credit TO
the extent Of about ten billion dollars
$50 .000. 900. 0O0.00) upon which the
interest is estimated at six hundred
million dollars 5000, 900 600. 00) per
year. or two million dollars $4,000
OO0l per dsy for every working day.
The vital question now is how is this
TO be paid.
The United States has more gold
than any otter four nations on earth
and il is IN impoSSibility for this in
terest charge 70 be paid in gold TO
say nothing Of lisuidating any Of the
principal.
Foreign countries are in urgent
need Of steel, forest products, cotton
and large amounts of other raw ma
terial with which TO rehabilitate its
devastated country and in October
1919. alone. the L. s. Exported two
huSdred sixteen million dollars ($2l6,-
coo. 10000 more goods than it i'm
ported.
We produce a very large surplus of
farm products which Europe must have
aside from its need Of steel, coal and
hundreds Of other items this nation is
exporting, but the method of payment
is worrying the international banker
with the pound Sterling, the Franc,
the Mark. the Lira dropping lower ev-
cry week until il is impossible to tell
when they VIII reach bottom.
In natural resources the United
States has the world beaten, as its
corn. cotton. and many other articles
surpass any other nation on earth and
with all Of its other pottentialties
make this country by far the richest
and most powerful in the world.