The Bridgeport times and evening farmer., 1919-04-12
What T MeUns 70 Be
 4 Creditor Nation From the Current Bulletin of the National City Bank of New York
tin of the National City Bank of New York

Our government bonds, municipal bonds railway and industrial bends and standard stocks at low be blamed they prefer investments to outside upon higher foreign can be placed here at rates which Europe is disposed re-
 this dsorganized premiums upon New York exchange in foreign markets expect they either reduce exports from this country promote the making of loans here. high premium on Ney York funds will enable fOreign Dor- rower Nigh interest rate to obtain It holds out an indueement to borrow here just foreign of American securities has inducement to sell them to create credits in this market
 Is the Change to Creditor Position Benent
 Calamity?
 This may seem like startling question but some of our readers evidently perplexed the sit uation that they do not know how to interpret it.
 It understood that discussing a permanent situation, not a temporary one.
 temporary of unbalanced trade be led by means of bankers credits; that is to the bankers borrow abroad and turn the proceeds the trade balance turns around how will the bank CTS debt be paid? Bankers cannot mourning debts without prospect of paying them. Even : Moreover whether bankers or governments can create credits countries by vousy depends the creditor countries Thus the present time the ability of bankers Great Brita l. France, GeIgium Italy Germany currencies in relation to the dollar is dependent
 The gist of whole problem is in the international debts must be paid in gold or other trans portao oe property We have here case of such mag nude that gold is of the question, and have nothing consider but imports of goods securities
 Unless country willing receive either in goods securities it plainly has
 Its decision that it $7ould rather keep it's own products than export them those terms. Ex- change goes prohibitory premium exports de- tIad It is idle + rotss4 egainst excbe5 wbich merely trade conditions. They perform function. When individual country cannot pay for purchases in manner acceptable to the seller the time has to buying.
 Is it calamity to country that it is longer obliged export hundred millions products annually pay debts, worth of products on interest account?
 a
 We do not think In changing over from the position of debtor to that of creditor this life with nothing give labor the products labor in direct exchange for everything but who accumulates capital then Is able live in part upon previously
 This situation is difficult to realize because 1t has about suddenly. Under ordinary condi- tions a. generation would have required accomplish the change. It would have about gradually that would have into it. and all ad justments would have been made went along We checked development driven their highest capacity in order this change. We have had balance of trade in four years equal the aggregate of normal years and the result is that permanently established in the creditor position.
 barring similar calamity which would throw upon the of Europe Western Europe obliged to to do not how the position be reversed.
 prospect the principal will be nquidaed Not that debtors will not rapidly increase in wealth. the problem is how they property to the United States which will to receive.
 Their wealth will be in lands, houses machinery equipment. just is They cannot send such property across ocean, created these credits by they be able pay the saE1e and other. willing receive their products?