Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-22
Private Remittances Helpful.

Italy will be greater than ever.
Private Remittances Helpful.
90 The remittances, of Americans to
relatives and friends in Europe will
doubtless be far in excess of the sums
thus sent in the past. since there will
be large demands on the generosity of
the more fortunate knsmen of the
new world. This. too. will tend to re-
store the equilibrium in the trade bal
ance.
co In the matter Of payments to
Europe on account Of services, as. for in
stance. freights and marine insurance
on American goods. it is hardly possible
that the net outgo will be as great as
before the war, since we are now less
dependent on foreign ships and on for
eign marine insurance companies. We
cannot. therefore, look in this direction
for any compromising factor in the
trade balance.
OF all these possible solutions. that of
large-scale investments in European en-
terprise seems the most practical. A
feasible method of financing purchases
of machinery and equipment as we'll as
raw materials for Industrial plants dam
aged by the war would be for American
manufacturers or producers furnishing
these commodities TO arrange with their
bankers or investment brokers to take
in payment the bonds or preferred stock
of the concerns. Or 1t might be financed
on much larger scale in some such man.
ner as the following: A syndicate Of iron
and steel manufacturers in Belgium. for
instance. might pledge their joint re-
sources or credit as security for loans
from syndicate of Belgian banks.
The bonds or notes covering these loans
might then be sold to a syndicate of
American bankers. who would probably
find a good market in the United States
for securities of such high character.
Heavy Buying Before Long.
Some satisfactory arrangement for
financing the needs of Europe will
doubtless be found. This means that it
Is only a question of time before Europe
will resume heavy buying of number
Of raw materials and many staple lines
of manufactured goods. such as iron
and steel products of various sorts. ma
chine tools. factory equipment and per-
haps steel rails. locomotives and ears
The importations of most lines of manu-
featured goods not urgently required for
the physical reconstruction of damaged
factories and railroads will probably be
deferred for considerable period.
The war. it is clear; has changed. at
least temporarily. the character. extent
and direction of our foreign trade
While it has freed us from Indebtedness
to Europe. it has made us more de-
pendent on other parts of the world for
supplies of foodstuffs and many i'm
portant raw materials. This dependence
increases as our population grows, as
our manufacturing industries = become
larger and more diversified and as the
costs Of interior transportation in the
United States become higher. In addi-
ton we shall find it necessary to re-
ceive interest payments on foreign in
vestments and on loans to foreign gov
efnments largely In the form of food
stuffs. raw materials and semi and
wholly manufactured goods. This will
tend to facilitate Importation and to
make US more largely dependent on
other countries than we now are Our
proud boast Of economic self sufflciency
can be made with less assurance now
than formerly.