Grand Forks herald., 1919-12-24
MONEY MARKET
CHANGE MAKES
IMPORTERS RICH
On Big Purchases Reduc.
ton is Made For the
Rate Of Exchange.

~SSsSsS~eS
ton is Made For the
Rate of Exchange.
New York. Dec. 24.-American i'm |
porters now purchasing goods in
England. France and italy for ship |
ment to the United States. are wax |
Ing fat as result Of the depreciation
OF the pound sterling, the franc and
]ira, according TO stories now going /,
the rounds OF the New York whole |
sale district
The only "ny in the ointment" FOR
the American buyers abroad is the
fact that. by presidential order sew
eral. weeks ago, United States consuls
sre required, to keep tab on big pur
ch4ses ascertain the selling price and
cable these facts to the United States
ing the rate Of exchange on the date.
Of purchase, the government 10 en-
ablcd to set 4 proper value upon the
goods for the collection Of import
duties. A court Of claims passes upon
what are alleged to be unfair ap-
Traisals.
How it Works.
The situation is said 10 be so,re-
what like this: An American buying
pound sterling say, on December IL,
needed to pay in american money
only S3.GS for British currency norm
ni:y worth about s4.S7. Now he goes
to a factory In Nottingham. Eng. to
bay ia.ces and there, although prices
of course arc higher than before the
war, hc pays for them in this depse-
cis,terl Rritish money and makes a
handsome" profit. Then lie ships the
]aces To the United states where, by
reason Of the imitation OF the Aneri-
can dollar, they are retailed for from
100 to $50 per cent above pre--war
prices
Tho sam. importer. on the saIno
date. We will say. goes to France. In
Paris he has exchanged his American
dollars Tor francs. Normally there
are SIS rs francs to the dollar. but
now he finds one Yankee ''simoleon"
will buy ll.52 francs. about 60 per
price of silks has gone up but he goes
to Lyons and there, with his depreci-
ated French money. he buys more
than he has ever bought before at
'bargain" prices. The silks reach
New York, where they are sold to the
consumer at double their former re-
tail price.
IHc same IN 1t8ly
Next this importer visits Italy.
where he finds the lira, 5.18 1-8. of
which like the franc before the war
could be bought for one American
dollar, now at vast discount. In
fact, he receives 13.47 lira for one
American dollar and, we'll financed.
goes to Naples. where he negotiates
the purchase of tapestries costing, OF
course, more than in 1914. but in re-
ality cheaper when purchased with
the present italian currency.
The same financial conditions exist
all over Europe and in the former
central empires, Of course. they are
reported much worse. In the Allied
countries however, where there is
national stability and greater ability
to pay, the deprecated money is ef-
fecting some strange changes. A din
ner which, before the war, in Paris
could be had for a nominal sum. now
costs from 20 to SO francs.
American manufacturers. mean
while, who desire to sell their pro-
ducts abroad are demanding paymfnt
in American dollars at par. Recently
the Belgian government. it is said.
bought twenty American locom olives,
for which payment instead of being in
Belgian money was demanded in
American dollars, thus adding from
Is to 20 per cent to the manufactur-
er's normal profit Naturally this dis
courages foreign buying.
Cancel Orders.
On the other hand, big American
locomotive concern, apprehensive OF
the turn of political affairs abroad due
to delay over the peace treaty, is re-
ported practically to have cancelled
all foreign advance orders. Such or
ders calling for delivery in three, six
or nine months. are said to be prac-
tically non-existent in the locomotive
trade. Similar conditions exist in
other Industries. That is why Ameri-
can manufacturers have been saying:
''If the peace treaty Is not soon signed
it will mean the complete loss Of our
foreign trade"
There are committees Of the most
prominent United States bankers and
business men. representing the Ameri-
can i;.nk.rs' association, the United
St.,i':s t,as:ber OF commerce and the
International Trade Conference who
l!IiTr &ci:l y, work or this problem
ot fa:eign exchange for months and
wiI viii he ready to remedy the
present situation as soon as the peace
treaty becomes fact for the Ameri
can I.ation.
st is noticeable thing" said on.
Wall street banker, that foreign ex
change has had Its most precipitou!
AND S'al!OuS decline since the reJectlOT
OF tilo peace treaty by the senate
This month it has reached the loves
figure on record. Wholly apart fro1l
tlla League OF Nations neither tn,
American manufacturer nor the in
vcstor Is going to put millions int:
foreign Investments until they know
more Of what Was!ingson's politica
relations with Europe are going to bc
Meanwhile, ErEiand, in tnc pas
IL months. Dr. r." the handicap 0
labor, currcDr !taiInittLble price
recoupcd ;ts; + ~ extent Of re
ducing her ra3&.:s by s478,o00, 90
and is otherwise strengthen ening he
economic position. Her exports TO
the same period have been s1.7Y7,
OO0. 200. Our own October figure
show that the United States exces
OF exports, in the ten months trad
with England, was $4,000, 90
Erca.er than the year before"
NJ v3y1N pTYRYIN SAwAsrrT