The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1919-09-21

I ment has been put off Indefinitely be-
cause of the unsettled condition Of the
exchanges"
| Senator Edge. in explanation of his bill
for the creation of corporations to finance
foreign purchases of American goods,
which was passed by the Senate on Sep
| TENDER by a viva voce vote, said in
part as follows:
To-day we well know that the rate OF
exchange is practically prohibitive for
| further American expectation until some
thing is done to correct the situation.
| This bill is designed to contribute in that
direction, and l think. in a few words,
! l can explain how it will. In yester-
| days papers I notced-and all senator's
have probably read similar articles-that
| the rate of exchange in France toI an
American dollar was francs and frac-
ton; mother words one dollar and sixty
odd cents for an American dollar
Frenchman as a practical illustration,
! if he bought consignment OF c2'tch
| frol the south, American selling price
being 100000. would be compelled to
pay S.eo0OO0 under the present rate or
exchange for the consignment of cotton.
So it goes in the case of other commodi-
ties In Italy the rate of exchange is
even greater.
MUST IMPORT GOLD
"There are only three ways of which
have heard by which that situation can
be stabilized or an effort be- made to
stabilize it. One is by the Importation
of gold That, however, is practically
impossible under present conditions
ABROAD, as we must all recognize. An
other is the importation Of their goods
and the report of the department Of COM
merce for the last month demonstrates
that the importation of foreign goods Is
now ascending, while the eSportation OF
our goods is going down, as it natufaily
will under the present rate ot exchanse'
They bought from us very literally Tor
few months after the war because OF
necessity, they had to buy our goods,
and it made little difference what the
price was; they had to have our supplies;
but as conditions become more normal
il is perfectly obvious that they are not
going to pay 81 80 for dollars worth
of American products, whatever tney
may be.
THE third method by which to stabilize
exchange is by purchasing their secur-
tiles. The importation of gold. the gath
ering of imports and the purchasing OF
| their securities are the three methoos
| Indicated This bill is designed to take
over their securities, which the COTTON
man or the manufacturer OF asricu'turai
kmachinery or the manufacturer OF some
other commodity will take in exchange
for his goods He himself cannot finance
the transaction, but he goes to the oank
in the natural, orderly way and the
hank finances it. In taking the securi-
| ties over we are equaiizing matters anu
thus not adding to the great credit pal
| ance now in our favor, when. OF course
entirely regulates exchange. 1t is per-
fectly simple business proposition.
| "Our banks at the present time are
not in a position to finance foreign safes,
and it is necessary, in the WISDOM ana
judgment of the Secretary Of the treas
ury and of the federal reserve ooafo
| that we supplement the banking system
| in this carefully protected manner .,,"I
that our business men may have Iuii
opportunity to sell their commodities, ana
| so that labor may be continuously en-
Moved and bring about, as nearly as
| POSSIBLE a 100 per cent production Inat
| is the entire object of the bill.
In his statement of September 7, Thom-
as w. Lamont, member of the firm OF ).
d MORGAN e. Co, a staunch republican,
who served as financial advisor to the
American commission to negotiate peace'
| said in part:
"The whole world is crying for peace.
for a chance to renew its norman ne
and work, and America by constant m
action, refuses to grant her cohsen'
! the settlements necessary. Since II pc
came evident to the world Of commerce
| that the action of the United States SEN
ate might nullify the treaty. there mas
been an alarming fall in the rates Oh i"i
eign exchange. For this no remeoy can
be had as long as the delay continues
at washington to plan for the extension
of foreign credits, so necessary TO mann
tain. It is hard to conceive the attituoe
| of mind that insists upon such calamltous
fumbling with the most critical situa-
ton that the world has ever seen. Inc
only explanation is that there is sun
almost incredible NEUTRALITY-SUSPICIOUS. DOM
| of the treaty provisions themselves anu
the manner in which the affairs OF the
world await Americas assent to peace
The Wall Street Journal in its issue OF
Sentember 10 says: Undoubtedly the last
named factor (holding up of the ratihca-
ton of the peace treaty. has done more
damage to the cotton trade than can De
estimated. Exporters had expected tnat
long before this our late enemies woNla
he taking plenty of our cotton even un-
der the possible restrictive regulations OF
their respective governments. Now with
the ratification of the treaty or an amend
ed treaty apparently some way OIL, anu
with the various credit and shipping ar
rangements to be perfected, Shippers
cannot see any large amount OF ootton
going to the central Europeoh
this year"
Judge Gary. chairman Of the board OF
the Steel corporation, in his recent speech
| before the American Bar assoclatlon'
| made a powerful plea for restoring nor
NAL trade relations with Europe, ana
the number of prominent business men
who have publicly expressed similar views
;s too numerous to even enumerate. The
/ quotations that have been given are
typical of those that can be found In al
most every issue of any financial Jour-
nal. To again quote Mr.. Lamont: i, IN
| common, l believe, with the country az
large. have become greatly disturbed at
the continued uncertainty and delay
delay which in my judgment is alreauy
RESPONSIBLE for rendering social and In
dustrial conditions in both Europe and
| America distinctly worse" II Mr. La
mont's opinion is correct. it seems strange
| that business men generally have not
| followed the lead and inaugurated cam
paign to secure an early passage OF the
peace treaty, with its consequent re-
vival NJ trade and betterment OF condi-