The sun., 1919-04-28
Basis for the Advance.

chiefly in four ways.
First, by the knowledge that an i'm
mense volume OF lucrative business will
be released by the signing of the peace
compact. This movement will be inter-
national In scope and bring to the
United States the benefits growing out
OF definite quickening OF foreign trade
Second. by the promise Of n harvest
which at this season was never as en-
couragfng as IL Is to-day. A record
crop OF winter wheat IL apparently as
sured as well as the most valuable
total yield OF farm products ever re-
ported. This showing has tremendous
significance. for the people OF the United
states never have suffered from serious
depression in year OF bumper crops.
Third, indications that the interna-
tonal trade balance at the close OF the
fiscal year In June will cross the s3-
600 600 600 mark. thus putting the world
enormously in our debt II will take
wears for the European nations to ad-
lust their Indebtedness to US, and. until
hey are able to do SO, the United States
aust exercise a controlling influence in
world trade.
Fourth. the favorable turn to war
financing as indicated by the encourage
ing response to the. Victory Loan offer
ing and the knowledge that this would
be the last OF the great popular war
issues
The broadening OF the investment in
1uiry as reflected by the increased alb
sorption OF seasoned securities for
income account emphasizes the need Of
relieving the railroads as soon as pos
sible from the trying position in which
hey are as a consequence OF Govern
nent control and the chaos of war. The
'redit OF these companies must be
= I'd a,1T1 he Ind,
safeguarded, before the country can en-
'arge materially Its foreign investments
There can be no lasting prosperity
IN this country so long as the integrity
~ $4,000. 0Oo, 600 OF railroad securities
he imperilled. Congress ought to be per-
n.tted to deal with this situation with
1ut delay. as the embarrassment has
become serious and the time is not far
distant when the immense volume Of
merchandise traffic developed In years
If bumper harvests will have to be
handled.
After the position of the railroads
has been safeguarded and the future
Of American shipping adequately pro-
vided for II will be necessary for the
markets to absorb the immense amount
of State. municipal and corporation
'oans that have been held in allegiance
ever since the Capital Issues Committee
imposed its restrictions on issuing bank
ers. The problem OF extending our for
eign trade Is bound up with the ques-
ton OF creating strong market in the
United States for the kind of securities
that the European countries have to
offer In exchange for American food
stuffs. material and merchandise. The
100 corporations formed under the pro-
visions OF the webb act will be seri-
ously hampered in their effort to push
American trade In foreign fields unless
abundant credits be placed at the COM
mand of foreign buyers. SO long as II
takes more francs and shillings 10 equal
a dollar the American seller will be at a
serious disadvantage In obtaining foot
hold in foreign markets. This Is be-
cause the abnormally high rate prevail
ing for New York exchange at London.
Paris and other foreign centres has
made It very costly for the foreigner
to purchase New York exchange with
which to remit in settlement of his In
debtedness to the American merchant.