New Britain herald., 1919-06-28

are there as yet any signs of re- l pentance on which to build anew. For l many years to come German progress ] Will be handicapped by an intense l foreign prejudice created by her own 1 interruptions and barbaric conduct.
 under such circumstances recon l structoh Will be slow, and many Ger ] mans Will doubtless seek to retrieve 1 thelr fortunes in happier lands.
 | Financing Our Export Trade.
 The handling of our foreign trade
 IS rapidly becoming an acute finan- clai pFoplem ot national importance. | Tn MAY our exports amounted to 1 6OG,O00,OOO and imports s329,OOO,- ooO an excess in the former of s277- 100000. During the eleven months ending May our exports were s6.3OS.- 100000, or half a billion above the record, while our imports were S2,-
 8O2,OOO,OOO, also the highest record
 ed But the excess of exports for
 these eleven months amounted to s3,-
 5O5, 100000, or $754, 100000 more
 than year ago. The question is @1ow will this growing excess of ex-
 ports be offset? Europe is poor.
 having neither goods nor gold to of
 fer i'll exchange, being also heavily
 in debt to other nations For a
 year at least she will not be a ble to
 pay for simple necessities; and she
 can only buy on credit. Already we
 have loaned many billions abroad;
 and for the preservation of Europe
 as well as for our own best interests
 we must furnish the needed financial
 help as far as we can without self
 injury. Estimates as to the future
 needs of the depleted nations vary
 from s1.5Oo, ,OOO, ,ooO to $4,OOO, 100000;
 the lower figure covering the neces-
 sities for a year or so, the larger
 sum being for longer periods. Our
 bankers haveealready been in con-
 ference with the authorities at Wash
 ington as to the best form of help,
 and in due season some definite plans will be announced. Of course, the
 best aid that we can offer is that
 which will facilitate the resumption
 of work, trade and traffic in. all of
 the wOrn-torn countries, Allies and
 enemies alike. None of them can
 buy indefinitely without selling, and
 for this reason alone it will be ill.,
 advised for us to impose restrictions
 upon imports which would tend to
 lessen our own exports. In this con-
 nection, the resumption of gold ex-
 ports upon a more extensive scale is
 of more than passing interest. Since
 the embargo was removed about
 $40, 100000 has been actually shipped
 abroad, the bulk of it going to South
 American points. In addition to this
 $30,000,0OO has been engaged for
 shipment to Japan; while this week
 licenses for the eXportation of gold
 to the amount of $200,O0O,000 have
 been issued by the Federal Reserve
 Board, chiefly in favor of South Am
 erica and Great Britain, although
 Japan is said to have received a sub
 stantial credit. The licenses for ship
 ment do not necessarily mean that
 gold will be shipped, the willingness
 of this government to deliver the
 precious metal being usually con-
 sidered sufficient for all purposes.
 There is no doubt that release of a
 moderate portion of our ample stock
 of gold for foreign use will be a wise and conservative move, relieving the tension in foreign markets which would otherwise be transferred here. Money Market Limitations.
 The home money market is facing an unusual series of demands. There is a huge harvest which has just be- gun that will have to be financed at inflated values. General business promises to be active as a result of l unprecedented farm profits. Peace will stim ulate many lines of industry. Our government will continue to be the largest single factor in the money market for some time to come, and while it's necessities are on the wane they will nevertheless tend to stiffen rates. There are also urgent de- mands for long deferred private en- terprises, for new developm rents, for real estate operations, etc. July dis bursements aggregating over $314,- 0O0,000 are already provided for. Un- less all signs fail the commercial world is entering a new period of great activity, partly owing to the necessity of repairing war losses and partly because of the inevitable de- velopment of national resources on a l large scale. There is also the demand for money from abroad just referred to. In many respects New York oc- 1 cupies the position of world leader l ship in finance, which it is quite sure 1 to maintain until London regains it's | former position. Even then we shall 1 be able to retain the bulk of gains 1 made in the war and probably still 1 further enhance them. At the mo- m ent we arc much favored by the ] fact that New York is practically the only free gold market in the world.
 More Sober Business Outlook
 i Speculation has sobered down ] somewhat and the blind optimism by l which it was driven two weeks ago l has materially moderated. At the l moment there are many conflicting in 1 fiuences. Opinion varies considerably ! as to the effect of signing the peace , treaty. In some quarters the belief is 1 that it has already been amply dis l counted: in others it is held that the ] resumption of business between Ger l many and other countries will be ben