The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-03
PREDICT GREATEST
PROSPERITY OF U. S.
National city Bank Points Out,
However. That Business
Must Face Reaction.
COUNTRY NOT EXHAUSTED
Return to Prc-war Prices and
Wages in Near Future Is
Improbable.
COUNTRY NOT EXHAUSTED


r.,,,...,s Of a ncriod OF unparelleled
A.,.h,
'F]Si".'E ''' '' "
tinted states, accorulhg 10 me monthly
circular OF the National Guy BANK
The war has not impaired the re-
| sources OF the country, the circular !
declares ITS productive capacity In all /
Ines Is greater than ever ana the /
excrtiouS winch our people nave been /
called u9on TO make in the war nave |
tecn Calculated TO awaken and stimu-
ate their powers.
That the United states is not in |
state of exhaustion Is especially empha- |
SIZED by the hahk ON the contrary,
II points out, ut is looking TO the future
with ambition and confidence, eager to
| As regards the reimbursement of busi-
-eSs and industry, the bank ia very
optimistic. although It points out that
mere are some undesirable conditions
which must be suuarelv faced THE
energies Of the whole world for four
years have been largely devoted to the
war. to the neglect OF normal develop
ment and all avoidable expenditures The
reaction from this must come Accounts
from all over Europe show that sun
niles OF all commodities are depleted
and prices high. Moderate and gradual
reductions are To be expected. and in
snre lines "A r,onstdera bic reimbursement
has been accomplished but return TO
,-s.u.,r rrica aud waco condi,i,n,. In
the near future is very inprobab BILE
The Indications are that wages and
prices are going to stay I'D. for "A time
AZ least. all over the world. which !
VIII do 1nucn TO simplify the situation
n every country. The general state of
credit expansion all over the world will
sustain and naturally cause a higher
lsyel of nrices than nrevailed bafore
he war. and there will NOT he tho
same pressure TO lower wages and pric.s
IN his country that there v,onjd he
II the level was falling in other enpn-
tries"
, - -
Se'
Foreign loans and the state OF for
e'sn exchange is one of the most i'm
roTtant problems with which the United
states will have to contend, according
10 the banks letter. 1t is highly i'm
portant' it says, that the position of
the United States in foreign exchanges
snail he more generally understood
than 1t is, as it is certain to have a
direct effect upon all our foreign trade.
At the moment number of the ex-
changes are against this country, due
20 special and temporary courses, but
" - Oe''alh mat as soon as trade
again the situation will lie greatly re-
verS.d"
There will be a balance Of payments
in our favor of about $500. 600 600
annually from other countries as n result
Q. the war But, the bank asks how
do we expect TO take paymentr' Under
ordinary conditions, the letter saws in
irrational trade nearly settles itself or
temporary BORROWINGS are mazda nv
lankers to settle the difference
at Is evident" it il declared. that
our foreign debtors cannot make their
rayments to this country in gold be-
cause not enough gold Is produced in the
world outside of this country 10 do Ii :
furthermore, we do not want any part
of It paid in gold because the effect
would be TO raise the level Of prices in
this country. Neither do We want to
take payment by the importation Of for
eign goods.
This IL very real situation, and this
country must meet it intelligently or II
Viii find exchange rates running against
this county everywhere in the world
and so heavily that they will put a checl;
upon exports. AT the present time. -or
Instance, there Is premium in Paris
Upon New YORK drafts OF about per
cent.
Export Orders Necessary.
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10 we. ~. io.e at ms ,IiI!e W
nv enpo;. .d ,, 10, ouI mus no ,l' Zee
.'e 'apac's ioi P,ouu0'ioI. mas oeeli Az
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IN ieStt' vases nre hleH, ana 81 Is
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a'e :" ms" 20 e',s.Il .. ~,
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"n IAese 'reu,.S CARRIED ny '''e ilNest'nk
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