New Britain herald., 1919-05-24
}Henry Cleus ] Weekly Lefter
Especial to the Herald.)

particularly pleased were those favor ing the return of the railroads to their owners Mr. Wilson, during the remainder of his term, will doubtless pursue a conservative policy, doing what he can to aid reconstruction, and not initiate new or strikinc meas ures that would invite conflict with republican congress which he can not control. The new session prom ises to see considerable necessary legislation accomplished, and little new important business There may be a great deal of factional contro- versy especially on conduct of the war. and because of an approachine presidential campaign, but much of this will be for political purposes. There is much room for tax reform and economy, though slight signs of either at present.
 Gcrmany'S Outlook.
 Germany shies hard at the peace treaty Some slight modif1cations may be allowed, and despite delay she will sign it. Protests are useless and will not be seriously considered coming from a nation that would have enforced infinitely harsher terms had the Allies been the vanQuished parties. The sooner Germany ac- quiesces the sooner will the barriers against her be removed and her in dustries allowed to resume. Very considerable quantities of raw mate rals will promptly cross the German borders, though no very extensive commerce can be expected until 1 quieter political and industrial con- ditions are restored German facto- 1 ries have not been injured as in France and Belgium; but her losses l in skilled labor have been great, coal 1 and iron will be less accessible and 1 her supplies of many raw materials are of course com pletely exhausted. Months will be required before indus 1 trial Germany can secure fair l start, or export goods to any impor- 1 tant extent
 Break in Foreign Exchange. Foreign exchange again made sen l sational declines, particularly francs and lire, which touched low records 1 This is accounted for by the abnormal l conditions of foreign trade and the l huge disparity between exports and l imports. The necessity for averting ! a crisis by some concerted action led to efforts toward formation of a pow l erful banking pool with which to stabilize foreign exchange and assist
 
 | Europe, which must continue for ! some time to come. The conditions i of our export trade are strikingly ) abnormal. The total of exports for April was $71 5,00O.OOO an increase 1 of S100,000, 900 over the previous high ! record. It was also $110, 100000 1 above the previous month. Compared l with the same month last year, they l were S214, 100000 larger. These fig 1 ures left an excess of exports over l imports of $442,000,0OO in April. against $221, 1,000,000 a year ago. For ] the ten months of the fiscal year ex- | ports were S5,705, 100000, an in crease of S812, 2,000,0 900 over 1918. and imports reached only s2.474, 900, 900, | an increase of SIP, 2,0O0,000. These i figures left an excess of exports for the ten months of S3231, 100000, | against S2,531 100000 last year No 1 wonder the exchange market is de- 1 moralized Such abnormal conditions l require unusual precautionary treat ment. Foreign indebtedness Is grow ! ing at a emendous rate; and if in order to place Europe upon it's feet. further credits are to he granted they must be placed under the control of l skilled banking experts. Fortunately
 
 1 giving foreign credits, and applicants are now coming to domestic bank l CTS who are better judges than any 1 government officials Europe needs ! and must have the food and raw ma- 1 terialS which we have to spare; and the soundest way of securing pay ment is to encourage industrial re- | ha bilitatio so that we may receive payment in commodities rather than in instruments of credit which only postpone settlement.'
 Monetary Conditions.
 Somewhat easier conditions at present exist in tho money market, 1 owing mainly to a favorable bank ing position and relief of pressure in cidental to floating of the Liberty loan. The government, however, is by no means out of the money mar yet. Federal expenses continue upon ans enormous scale and there is little
 indication of early retrenchment. | Heavy taxes and continuous borrow ing in the form of short term Treas ury certificates are expected for an 1 other year, at least. This means heavy demands upon the banks. To 1 pressure from this quarter must be added the probability of great indus ! trial and business activity. Our crops will require very unusual sums for their handling. New enterprises and i urgent foreign borrowing will also 1 have to be satisfied. When all these unprecedented and extraordinary re- ouirements are considered, also that price imitation diminishes banking power, if will be recognized that easy money is not likely to be permanent and that later on funds will command 1 good rates and may be less abundant than now.
 \ Brilliant Future.
 Daspite som ezyI7at 1eSSened activity,