The Bridgeport times and evening farmer. (Bridgeport, Conn.) 1918-1924, 1920-07-17

would otherwise have been willing to
do, and moreover, dear money has
had the effect of depreciating the very
securities which the Government de-
sires to sell for the purpose of re1iev-
ing the situation.
1.-THE last nine months have wit
messed an enormous number of in
dustria1 fotations Sin the London
market. These have been quickly
absorbed by people who have acquir
ed new wealth during the war. By
reason of the large amount recently
left on the hands of underwriters in
recent issues, it would appear that
the public appetite has for the time
being, been satisfied. 1t is possible
that this apathy may pass away, but
doubtless it is partly due to uncer-
tainty concerning the Governme nt's
action in regard to the war-wealth
tax, which is still the chief concern
of the business world. At one time
it was thought that this tax had been
abandoned, but that does not appear
to be the case, although public opinion
against it is continuously growing.
Taking the situation in general,
the position of Great Britain cannot
be regarded as unfavorable, although
the fact that sterling expressed in
United States currency shows a de-
probation of more than 300 may be
taken as an indication that the credit
of Great Britain is severely impaired.
But people who are well acquainted
with the actual economic position,
and the reasons for the present level
of exchange, are, of course, aware of
the cause. 1t is not that Great Brit
ain is not prepared to pay its debt
to the United States, for it possesses
plenty of assets, but it does not, I'M
fortunately, possess any tangible
sets which can be removed from
Great Britain to the United States. It
is, therefore, necessary to wait until
such time as she can export or render
services in sufficient quantities to
produce a trade balance in her favor.
at should not be overlooked that
the balance of trade between Europe
and certain other countries, notably
the United States and Argentina, is
decidedly unbalanced in favor Of the
latter countries. 1t is not in the in
teresb> of these countries that 1t
should remain so permanently, or
even for a protracted period, because
the purchasing power of Europe in
those countries is going to be curtail
ed by such a condition of affairs.
THE war has made the United
States SO great creditor country to
Europe that she must now give her
| debtors an opportunity to pay her by
the only means possible to them.
This can be achieved only by export
ing goods and rendering services. For
this purpose, it is not necessary for
Europe to export to the United States
alone, but she must export to- all
other countries, and in particular
countries that the United States p1ze
chases from For instance, by n -
of European countries exportin %
the East in excess of her j rts
from the East, and at the SAL time
by am excess Of American imports
| from the East over her exports in
the same direction, the balance of in
debtedness by Europe to the United
States could eventually be liquidated
For the purpose of adjusting the
| trade balance, it does not matter
whether Great Britain, Germany,
France, and Italy export in larger
quantities one than the other, as the
balance of trade Of the latter coun-
| tries all favor Great Britain, and these
| exports will relatively at the same
time, not only adjust the trade bal
| ance between Great Britain and the
United States, but they will bring
! about an adjustment between those
countries and Great Britain"