The Birmingham age-herald., 1920-06-28
Daily Financial Gossip
BY HOLLAND.

New York, June 27.-(SpeciaL)-Th
 administration at Washington, which
 will begin on March 4, and inciden-
 tally the Congress which will be elect
 ed in November of that year. will prob
 ably perfect, if it be necessary to do
 that, the arrangements which are un-
 derstood to have been already made,
 whereby the demand notes in the fed
 eral treasury. representing obligations
 of our allies. will be converted into
 longtime bonds. It is to be a trans
 action of extraordinary magnitude.
 without any precedent For in addi-
 tion to the funding of our govern-
 ments credit advances to the allies into
 long time bonds, so also the unpaid in-
 terest must be added to this refunding
 operation, and also the interest which
 will fall due within the next three
 years.
 The transaction is undoubtedly to
 have an important influence in our in- teTnational trade. Sooner or later our exports will fall below our imports. All
 of the experts say that this is not to be regretted, but instead should be well ccmed, for it will go far to restoring normal international trade relations. Some have thought that the reports which will come from Washington some time in July, which will tell of our in- ternational trade for the fiscal year. which will end on June 30, will show
 rapid and heavy falling off in our exports, and such increase in our im- ports that it may be possible in a year
 from now to report that Europe and the rest of the world are selling and sending to the United States commodi- ties of greater amount and of greater money value than the American prod ucts which we sell to other countries. Some of those who have given careful study to the subject, however, are con vinced that our exports will exceed our imports until the end of the year 1928. In giving the reasons for this view, they say that the funding of the in debtedness our allies owe to us will make it inevitable that unt-- 1928 the commodities exported by us will be largely in excess of our imports.
 Many times wonder has been ex- pressed at the magnitude of our ex- ports, especially to Europe and how these exports have been paid for There is no doubt, however that for the next year or two, as for the past year. our | exports to Europe will be financed l AIIOuSn tue tAltHSlOH Ol pIlNdle 1 credit. It is not governmental credit, ! but is partly bankers credit. Very likely the Steel Corporation extends credit or the International Harvester
 or the Standard Oil Corporations. It is 1 certain that bankers and exporters are 1 discovering the means whereby they can carry their foreign customers.
 1 However, eventually there is to be
 an overturn of our trade balance. II 1 may not come while the next adminis- | trs ion is in power. All indications arc | that it will come before the year 1880 l Tie new swing in that direction has 1 all eady begun. It began in 1919. The reports which will come from Wash 1 inston in July of our internatonV 1 trade in the present fiscal year will un-
 doubtedly show that the impulse which 1 will ultimately lead to an excess o1 1 imports over exports have continued l in the present fiscal year. This sub l iect may appear to the public as some
 what dry. technical and uninterestng