The Birmingham age-herald., 1919-12-28
AMERICANS WHO IMPORT GOODS ARE
 REAPING HARVEST
This Is Essential to Building Up Trade to Proper
 Proportions
By Associated Pres.

By Associated Press
 New York, December N.-American i'm
 porters now purchasing goods in England
 France mad Italy for shipment to .hl United States, are waxing fat as a rel
 suit cf the derreciation of the pounf
 sterling, the franc and lira. according q
 stories now gong the rounds of the New
 York wholesa'e district.
 The only .'fly in the ointment" for tn American buyers abroad is the fact thai by presidential order several weeks agdl United States oonsuls are required tl keep tab on big purchases, ascertain th ! selling price ard cable these facts to tn United States customs authorities. The by figuring the rate of exchange on tn date of purchase, the government is enl able to set a proper value upon the good for the collection of import duties 4 court of claims rasses upon what are al legged to be unfair appraisals.
 The situation is said to be somewha. like this: An American buying pouni sterling say, on December 21, needed tI pay in American money only $366 for Brit ish currency normally worth about SS- Now he goes to a factory in Nottingham England to buy laces and there. althoug prices of course are higher than beforl the war, he pays for them in this deprel ciated British money and makes a hand
 some" profit Then he ships the laces t the United States where, by reason of thl imitation of the American dollar they aJI retailed for from 100 to 150 per cent, abof pre-war prices. The some importer, on the same datA we will say, goes to France. In Paris has exchanged his American dollars sa francs Normally there are 5.1S1s francl to the dollar but now he finds one yanlSe ''simoleon' will buy ii. .52 francs, over z per cent 'more than before the war Tnj price of silks has gone up but he goes tsl Lyons and there with his depreciateH French money, he buys more than he hay ever bought before at bargain prtce.l The silks reacn New York. where thea are sold to the consumer at double tner former retail rrices.
 Next this importer visits Italy, wher he finds the Iira. 5.1Sis of which like ths franc hefore the war could be bought fol one American dollar, now at vast dis count. In fac7, he receives 13.47 lire fol one American collar and, well finance goes to Naples where he negotiates tn purchase of tapestries costing, of course more than in 1914 but in reality cheapei when purchased with the present Italia'l currency.
 The same financial conditions exist a, over Europe ard in the former centra empires, of course, they are reporteI' much worse. Tn the allied countries, how ever. where there is national stability ans greater ability to pay, the deprec1ateli money is effactine some strange change5l A dinner which, before the war in Parll could be had for nominal sum, nov costs from 20 tc 50 francs.
 American manufacturers, meanwhlill who desire tosen their products abrca- are demanding payment in American doH lars atepar. Recently the Belgian gover1l ment. it is saii bought 20 American loceH motives. for which payment instead f| being in Belgtan money was demandeH in American dollars, thus adding from N to 20 Ter cent to the manufacturers nofl nal profit. Naturally this discourages IoA eign buying. ,lI On the other hand, big American iocf | motive concern apprehensive of the tulll of political affairs abroad due to dela over the peace treaty, is reported prafI ticaUv to have cancelled all foreign afi vanoa orders Such orders, calling for al livery is three, six or nine months, alI said 70 be practically non-existent in tiHl locomotive trade. Similar conditions exiN | in other industries That is why Americah manufacturers have been saving; IT II \ peace treaty is not soon signed 1t WIN mean the complete loss of our foreisI l trade"
 The~e are committees of the most pronIl inent United States bankers and busineIl men. Representing the American Banker asso ,istion, the United States ChamoiA | of Commerce and the International Tradp Conference who have been at work di l this rroblem cf foreign exchange M months and who will be ready to remedy | the present situation as soon as the pea TX l treaty becomes 8 fact for the Americ7H nation. W. sIt is a noticeable thing" said one WaI | street tanker, that foreign exchange n1# l had it's most p~ecipitous and serious olA cline since the rejection of the pealf treaty ty the Senate. This month it hfh cached the lowest figure on recoriH Wholly apart from the League of NatiofH neither the American manufacturer nil 1 the investor ie going to put millions infI | foreign investment until they know moIiI | of what Washingtons political relatiollE with Europe are going to be. | Meanwhile, England, in the palE months. despite the handicap or iapc currency and formidable prices recqup M itself to the extent of reducing her iJIa
 norts hy s47s0oO GOO and is otherw1 strengthening her economic position. II exnorrs for the same period have been s' 7s7 ,1o GO Our own October figures snf that the United states excess of exporsli | in inc fen months trade with Engiarhl was ssS5. GOO oo0 greater than the year f.tl ! fore" MI