The Bridgeport times and evening farmer., 1919-12-27
ADVISES US. ID
 BUYUPT0 FOREIGN
 SEClj~ITIES NOW

New York. Dec. 27----Three factors in the denloraiization of foreign ex- change, jnteIligIibIe to the average man, rise above the complexities of the present situation, according to old-timeTs in Wall Street.
 These are: (1D-Allied and other nations of the world owe the United States approximately $15,OOO,9 0Oo
 t2D-American manufacturers hesf- tate. owing to peace treaty uncer- tainty, to accept big advance foreign orders.
 t3)-E.ngland's virtual suspension of gold exports outside the British coIonles is repulsing American trade.
 Just why the British pound ster- lIng normally worth $4S665 in American gold, should have declined SO much since the war ended, and what It all means is an obscure ques- tion," said a New York financial eX- pert. The present situation, Sir George Paish's apprehenslons not withstanding, is by nc means hope less. Prophecies of a breakdown of credit are not well founded.
 America, the storehouse of the world and now the worlds banker, :s in the same position England was III dLtFt tIlE Nd IlOtGol-lt anu <aIIttLI- can Civil wars. She bought the cheap securities of impoverished nations in a most prodigious manner and thereby laid the foundation for her future wealth. We must do like wise and do it within the next two or three years by which time these abnormal conditions will have passed.
 With pound sterling p per cent. or more below par England can sell to the United States at a great ad- vantage. We can sell American goods abroad only at a great disadvantage because We must add the abnormal rate of exchange to the goods to get into foreign markets. Premier Lloyd George recently declared when ster- ling was selling at a discount of 15 per cent, that the discount really represented a protective tariff of 13 per cent. on goods manufacturod in England. Certainly it is heIpIng to keep American goods out of that country.
 ''The only remedy for this condi- tion is for the United States to buy foreign securities and extend long time credit for merchandise. We are in a strong economic position. The nations of Europe must have our cotton and wheat and, since they are so neaN1Iy lHQeDIed to us ana We must extend them many more mil lions to put them on their feet what is the difference whether we buy their bonds or send them our mer- chandise?
 Everyone in Wall Street knows that if the Peace Treaty had been signed in Washington an Internation- al Exchange Committee would have been organized long before now to stabilize exchange and bring about other necessary readjustments. Never during the darkest days of the war, when the Germans were almost at Paris, did British and French ex- change go to where it is now. The British, during the war, by a system of credits with the United States, had sterling begged to $4.52.
 "The tension over and gold exports curt2iled there was nothing to keep it that close to parity. Indeed, uu- less the United States loosens its | purse strings there are London fnan- cial experts who say the pound ster- ling will drop as low as $2.5O. That would be q calamity. It would be a i two-edged sword injuring both Eng land and the United States.
 Europe is like a man on the l verge of death due to starvation 1 When you find such an unfortunate 1 you feed him gradually until the i stomach becomes accustomed to di- i gesting food. Now our aim has been 1 along to stuff Europe with all kinds