Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-25
US. IMPORTERS
FIGURE B|GPR0F|TS
=. INBUY|NG ABROAD
Depreciation of Currency
Promises Fat Returns.
Presidents Order.

NEW YORK. Deccmbo~ 2g-Ameri-
can importers now purchasing goods
IN England. France ard Italy for ship
ment to the United States are waxing
TAT as result of the depreciation of
the pound sterling. the franc and
ira. according 70 stories now going
the rounds of the New York whole
sale district
The only fly in the ointment" for
the American buyers abroad is the
isct that by Il presidential order sew
erai weeks ago. United States consuls
are required to keep tai on big pur-
masses ascertain the selling price and
saoie these facts to the United States
customs authorities. Then by fgur-
ing the rate Of exchange on the date
~ purchase, the government is en-
DIED to set proper value upon the
goods for the collection ON import
duties. A court of claims passes upon
What are alleged to be unfair APP
The situation is said to be some
what like this: An American buying
pound sterling say. on December IL.
Eesded to pay in American money
oniX 1885 for British currency nor
many worth about si.S.. Now he
goes to a factory in Nottingham.
england. to buy laces and there. al
though prices, Of course. are higher
nan before the war. he pays for them
,h's deprecated British money and
sh'ps the laces to the United states.
Where. by reason of the imitation of
the american dollar they are retaiIed
'rr from 100 to $50 per cent above
pre-war prices
Wore Than Ever for n Dollar.
The same importer, on the same
9a.e. We VIII say. goes to France. In
Han dollars for francs. NormaiIv
there are SIS = francs to the dollar.
our now he finds one Yankee ..simo-
ieon will buy 11.52 francs over so
Der cent more than before the war.
fhe price of silks has gone IN bu, he
goes to Lyon and there. with his de.
pfeclated French money he buys more
man ne has ever bought before at
,pargain prices. The silks reach
NeW YORK where they are sold to the
tail price. re-
Next this importer visits Italy.
&heIe he finds the Ira 5.1s,< Of
Which, like the franc before the war.
So II De bought for one American
eoliar; now at vas; discount III
fact. he receives 1917 lire for one
american dollar. and, well financed.
goes 10 Naples. where he neeofiatas
the purchase of tapestries costing. of
-sIis more than in 1914. but in
.SdiIty cheaper when purchased with
the present Italian currency.
Effects Strange Changes.
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 ah;litv
10 pay. the deprecated money is IF,
lect-ng some strange changes A din
her which. before the war. in Paris
could pc had for a nominal sum, now
costs from 20 to 30 francs.
American manufacturers mean
while. who desire to sell their nrod-
ncts abroad are demanding paymen,
IN american dollars at par. Recently
ihe belgian government. il is said.
Housht twenty American locomotives.
LOT winch payment instead Of being in
Belgian money was demanded i'm
american dollars, thus adding from
- TO 70 per cent to the manufactur-
er normal profit. Naturally this
diScourages foreign Luying.
Cancelled Advanced Orders.
on the other hand. big America
The turn of political affairs abroad
due TO delay over the peace treaty
IS reported Practically to have can
ceied all foreign advance orders Such
orders. calling for delivery in three
SIX or nine months, are said to be
Practically non-ex stent in the loco
motive trade. Similar conditions ex
: list in other indl stries. That is WHY
american manufacturers have been
saying: II the peace treaty Is not
room signed 1t will mean the COM
plste loss of our foreign trade"
There are committees of the most
prominent United States bankers and
business men. representing the Amer
lean Bankers Association the United
states Chamber of Commerce and the
international trade conference who
have been at work on this problem
Of foreign exchange for months. and
who Will be ready to remedy the pres
ent situation as soon as the peace
treaty becomes a fact for the Ameri-
can nation.
Treaty Rejection a Jin1.
TT is noticeable thing" said one
Wall street banker. that foreign ex-
change has had it's most precipitous
and serious decline since the rejection
of the peace treaty by the Senate
This month it has reached the lowest
figure on record. Wholly apart from
the league of nations, neither the
American manufacturer nor the in
weston is going to put millions into
foreign investments until they know
more of what Washington's political
relations with Europe are going to be-
Meanwhile England in the past
eleven months. despite the handicap
of labor. currency and formida ble
prices, recouped itself to the extent
of reducing her imports by $47S.000,-
900 and is otherwise strengthening
her economic position. Her exports
for thu same period have been Sl,7S7.-
H00, O03 Our own October figures show
PORTS in the ten months trade with
nd mn