The sun., 1919-08-22
FALL IN EXCHANGE
DEPRESSES BRITAIN
Increases Indebtedness and In
lures Trade With the
United States.
Special Cable Despatch TO The sun.
COPYRIGHT, 1919. all rights reserved.


in the exchange rate of the pound ster-
ling has had an extremely depressing
effect upon English business men. They
feel Inundated over this unprecedented
fall of their proud sovereign. They feel
however, that within a few months they
will be able to restore the reputation OF
the pound sterling and force the ex-
change rate back to what II has been
during the past Ave years.
The Westminster Gazette asks British
business men to face the situation and
to realize fully what the recent drop In
the exchange rate means.
Every fall in the value of the pound
increases our indebtedness to the United
States" says the paper. Automatically
II shuts down trade with our most i'm
portant customer, and makes 1t much
harder for US to establish footing OF
equality which Is the foundation of all
sound trading.
Many quick remedies have been sug-
gested, one of which has been aban-
doned or rather exhausted. 1t was to
create Government credits in America.
The other remedy was to arrest the de-
cline by prohibiting or restricting i'm
ports from America. Both are equally
futile and will in the long run increase
the mischief.
Remedies Suggested.
The true remedies are, first. produce
more. Make every effort to restore ship
ping to it's pre-war efficiency. Clear the
lines OF transport which are now shock
ingly blocked. The state of American
exchange is a useful danger signal 1t
shows how we are falling in the task of
demobilizing industry and what dangers
lie ahead II failures continue. The pur-
1 ~ ND N
remain the chief outward sign of our
return to prosperity. or of our failure to
return tc It. To restore the exchange
rate should be our greatest aim from this
time forw ard"
In discussing the economic situation
in England the Erentn9 journal to-
day emphasizes the fact that as long
as troops are kept operating in various
| theatres Of war. aided by the costly
naval establishment. there is no OPP
portunity to economiZe in great way.
This Journal declares the world war is
| still going on. with hostilities raging
from the Gulf of Finland to the Black
Sea and from Siberia to Poland,
without counting Americas punitive
expedition into Mexico. The question
is asked: How can the Government
ask the people to work harder when
! treasure is being poured out in these
distant campaigns?
Rail shipments Barred.
Owing 10 the congestion in British
railway yards the Beard OF Trade of
London has issued an order directing
that no goods imported into England
or intended for export shall be carried
by rail between points which can be
! served by coaStwise vessels. This or
! der will seriously affect all shipments
from the United States. 1t will mean
increased expense and serious delay.
Schedules of traffic prepared by vari-
Gus transport committees will list all
! freight affected by the new order. Until
this list. is published it Is impossible to
state exactly what items will be affected
but It is safe to say that the bulk OF
heavy American freight will be subject
to eoastwise carriage
The difference between freights and
charges for coastwise carriage will be
refunded by the railway executive COM
mittee of England, and application for
refunds must be lodged within three
months. Traders are urged to facilitate
the new movement by applying for forms
at least ten DAYS before the goods are
ready for shipment. The congestion Il
so great that it will require 5000 extra
| cars to clear the present accumulation
One OF the causes OF the congestion Is
that England has no exports, while i'm.
ports continue to increase. with the re.
| suit that all cars are being used to car.
ny goods inland. All storage houses ar,
nlled with war materials which canno,
be moved Immediately.