South Bend news-times., 1920-01-25

The nation has maN little prog
ress in extending foreign credits
The fact is, the general attitude to-
ward credits IS slowly changing
Hoover's first-hand knowledge has
been instrumental in modifying es-
Inmates Of Europe's need, and do
nestle credit needs are more keenly
appreciated than heretofore. Some
warrant exists for believing that
a vetitable money famine may de-
velop. if only for a limited period
Of time. The government has re-
moved al doubt as TO it's particiI a
tion in the extension OF ordinary
commercial credit. II will not par
ticipate.
But the outstanding fact is the
steady growth of conviction that
Europe must agree TO put all loans
strictly on business basis, prove
her entire solvency, reduce the ele-
ment of risk TO a minimum so that
foreign securities may appeal TO the
average American investor. and ex-
pect no gratuities. Bankers insist
that France and Italy i'm particular
must strengthen their finances in
CrcasinE taxes until these meet eX-
penditures. and provide for the re-
tirement of debt American business
men feel that sections of the pop
ulaticn of western Europe must
spend less and work more if they
eNl ect financial aid. Belgium has
mat all requirements. and the re-
cent $25.oO0.000 loan TO Belgium
was floated in q single day
The trend in foreign exchange
continues strongly downward. sug-
gesting new low points i'm the near
future. Bills received from the ex-
port OF cotton. wheat. copper and
other commodities have flooded the
market. Bankers are seeking TO
improve their position by releasing
a part of their funds CONCEALED in
exchange. The existing money
stringency in general likewise has
depressing influence. Happily. the
call for an international conference
holds forth some prospect of con-
certed action on the problem OF eX-
change.
The function of the conference
viii be TO determine where the chief
emphasis belongs and to secure the
most effective distribution and use
of such credit as is available. 1t is
almost certain that total credits ex-
tended during the next few years
VIII be much less than has been pop
ularly SUPPOSED. Tho conference. it
is hoped. viii supply that element
of leadership. that agreement upon
a coherent program, and that will
lingness to assume responsibility
which has been so conspicuously
lacking.
The money market is distinguish
ed by it's tightness. Predictions
differ widely as TO It's future course.
Some observers foresee marked re-
Taxation within another month, con-
tinuing over the between-s session
period Of activity in city and coun-
Try. One eminent authority declares
that 'the natural tendency of a cur
tailment 70 speculative expansion is
TO ease the strain on credit. and
while money rates during 1920 can
not be expected to return TO the
old or normal levels yet relatively
the money rate should be lower
than in the closing months OF
1919"
Money has been slow 30 develop
the easier trend that usually fol-
lows completion Of the January
payments. and limited supplies with
sharp discrimination as TO loans.
under promptings Of the federal re-
serve board, and very firm interest
rates may be expected for an i'm
definite period.
The women Of spain are generally