Greenwood daily commonwealth. (Greenwood, Miss.) 1919-1926, 1919-12-24
DEPRECIATION OF
FOREIGN PAPER
American Importers Now Buying
Goods In England, France and Italy
For Shipment To United States.
Associated Press

NEW YORK, Dec. 24-American
importers now purchasing goods in
England, France and Italy for ship
ment to the United States, are wax
ing fat as a result of the depreciation
of the pound sterling, franc and Ira,
according to stories now going the
rounds of the New York wholesale dis
trict.
The only "fly in the ointment" for
the American buyers abroad is the
fact that, by Presidential order sew
eral weeks ago, United States con-
suls are required to keep tab on big
purchases, ascertain the selling price
and cable these facts to the United
figuring the rate of exchange on the
date of purchase, the government is
enabled to set proper value upon the
goods for the collection of import du-
ties. A Court of Claims passes upon
what are alleged to be unfair apprai-
sails.
The situation is said to be some
what like this: An American buying
pound sterling say, on December IL,
needed to pay in American money on
ly 1886 for British currency normal
ly worth about $4.S7. Now he goes
to factory in Nottingham, Eng, to
buy laces and there, although prices
of course are higher than before the
lD
ciated British money and makes a.
handsome" profit. Then he ships the
laces to the United States where, by
reason of the initiation of the Ameri-
100 to $50 per cent, above pre-war
prices.
The same importer, on the same
date, we will say, goes to France. In
Paris he has exchanged his American
dollars for francs. Normally there
are 5.18 1-8 francs to the dollar but
now he finds one yankee "simoleon"
will buy 11.25 francs over 100 per cent
more than before the war. The price
of silks has gone up but he goes to
Lyons and there with his deprecated
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 retail price.
Next this importer visits Italy
where he finds the Ira, 5.1S 1-S of
which like the franc before the war
could be bought for one American dol
lar, now at vast discount. In fact,
he receives 13.47 Ira for one Ameri-
can dollar and, we'll financed, goes to
Naples where he negotiates the pur-
chase of tapestries costing, of course
more than in 1914 but in reality chea-
per 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 ma
tional stability and greater ability to
pay, the deprecated money is effect
ing some strange changes. A dinner
which, before the war, in Paris could
be had for a nominal sum, now costs
from 20 to 60 francs.
American manufacturers, mean
while, who desire to sell their pro-
ducts abroad are demanding payment
in American dollars at par. Recently
the Belgian government, it is said,
bought twenty American locomotives,
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
ccurages foreign buying.