The Bridgeport times and evening farmer., 1919-04-11
W75Ut H Means 70 Be 4 Creditor Nation
From the Current Bulletin of the National City Bank of New York

reported having total of about So00o0oOo of Ger property to dispose of
 Furthermore, United has made loans gregang nearly foreign continuing
 These draw five per cent interest
 Including public and privately charges aggregate over $5oO 100000 per year. Possibly capital both will net nearly that
 The effect of this change in the volume of regular payments running from and to us be o merchandise commodity exports will ply upon financial settlements as in the past ~ to sSOO,oOO,OOO.
 That is allowing that continue to have a balance the before the to-vvi instead of it's being absorbed by counter char charges the entire amount and more will ha"0 to be
 foreign customers, instead of merely giving credit will have property of either by shipment this country title conveyance, settle by means of promises.
 The total production of gold in the world outside of $3OO,- ooOoOo and under the present high costs of production gold stocks which involve reductions elsewhere raise in this country above prices elsewhere, which would be unfavorabe the export trade.
 The result of the situation as described will be a greater demand in for exchange on the United States than in the United States for exchange the United States will be at premium in other tries There will not be enough supply the demand. wanting pay for goods wanting to interest will compete for it.
 'Favorable'' "UnfavorabIe" Exchanges.
 We accustomed that the exchanges are so they are in the sense that the balance coming us but they are not favorable to increasing our ex- ports.
 On contrary, as the balance running O country point where exchange that country a premium influences into play check In other words the laws of trade tend normally correct ate of unbalanced trade maintain equilibrium It is said in teaching physics abhors a which is of describing tendency maintain equilibrium which through all natural law
 When the balances running to country reach the point exchange premium, purchases in country become coSly to the extent of the premium. New York exchange is now commanding premium IF per CanA6a, about England in France, 50 cent in of American goods in these countries must pay price, plus the exchange premium, charges, As the exchange charges discourage the purchase of American 
 On the other the n of a foreign currency 0 the will goods priced cheaper American buyers, and thus tend encourage mportations this country cent. compared with the dollar. American buyer dollars francs finds that the purchasing of his is increased 16 cent
 Or putting it the other French exporter sell United States receiving a credit. sell that credit in Paris to fellow countryman at premium of Is
 he is increase his sales in the United reduce his prices Is and be made whole by the premium exchange
 will be therefore, when trade becomes unbalanced today. natural law tends the and increase the imports of cred country back balance.
 We already that the premium New T inducement foreign holders of n this obviously inducement is open O every of property which be transported this m which a demand
 (Contnued tomorrow