The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-06-13
PRESENT FINANCIAL
POSITION OF EUROPE

! Discussing the present financial
position of Europe, American goods
and foreign markets. the semi
monthly review of export trade con-
ditions of the Guaranty Trust com
pany of New york, says, in it's current
| issue.
There has recently been comment
intended to show that the demorallza-
ton caused by four and one-half years
of war was more widespread and more
profound than we had known, ana
that European countries were re-
covering their stability and their pro-
! ductivity more slowly than mlSnt
have been expected. Such view rams
to take into consideration the ire
InendoGs nature Of the burden as
sumed by the allied nations when they
set out 10 win the war, nor does it
remember that the changed economic
conditions which The war has
brought about mean remouldins or
the whole financial structure oil
| Europe
Until the foundations have been
laid the work that has already been
1 done will not clearly show itself. And
until the foundations have been laid
also, it will he impossible for the
manufacturers and merchants TO
make their plans for the future. The
!
4 being attacked and solved.
| only few days ago the dis
patches brought word of the new and
more exactng taxation schemes of
both the French and Italian govern
ments, Upon this news there was an
immediate improvement in the en-
tchange situation with regard to both
countries. The boldness of those who
! proposed and adopted these new laws
! indicates not only the strength of the
governments which they represent,
but also the popular understanding Of
/ The seriousness of the situation, and
the willingness TO shoulder the re-
spensibility for the only measures
which can save 1t.
Travellers returning from Europe
! bring word that the situation in
general is slowly improving For In
stance. travel conditions, while siill
| far from normal. are much better
!, than they were only a month or two
ago, Trains are more numerous, and
4 the schedules are more closely 10.
As the time for the actual signing Of
/ the peace treaty draws near, the
! proving. Their problems are being
defined. and the natural human op-
| timism Is asserting itself"
! Resumption in Europe of produc-
| ton on the pre-war scale will not
/ serve to drive the United States from
! lis position as one OF the leading eX-
Fort saatip1s. fire .ree&psv Ya$'g:. =
| However abnormal may be the
| present sale abroad Of the goods OF
I the United states il is an abnorm alitv
which will probably continue for some
! little time. md readiustment. when 1t
I does come will not restore nre-war
Too Il fr,ES
which the war has brought about will
not he elaborated by resumption OF
/ fufl-scale production by the industries
/ OF Europe, A large American export
trade Is a definite md continuing
4 factor in the worlds affairs"
| Concerning the present great pre-
! ponderance Of exports over imports,
land the probable reversal of the
| figures through extensive American
investment In foreign securities. the
review says.
! TT is quite possible. that. what with
/ fhe great payments already due US,
and the increasing flow of goods re-
sulting from our investments. the
imports Of the United States would
ultimately be greater than the exports.
unless tariff barrier were placed to
make It better, from a financial point
OF view, to re-invest the earning of our
! investments in the countries of their
lorlgin rather than To accept payment
/ in goods.
Barring such a possibility. the pre-
| nonderance Of imports over exports
could not hut be regarded as an evil
| dence ~ strength. rather than weak
ness u would mean shat this
| country had achieved the position oc-
cupied hy Great Britain before the
| war Shirs from all parts of the
globe carried goods 10 the British
| Isles. returning with products whose
| value totaied far less. The tt!frcreslce
OF course, was made UP in dividend
payments and were the return on
capita invested by the British over
| ons period Of years.
|