The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-02-20

Which He Ships to the Unite.
States, Where, Because Of inflatio,
Of American Dollar. He Reaps Ri,
Profit.
American importers now purchasin,
goods In England, France and Ital,
for shipment to the United States, arc
waxing fat as a result of the depreci
alton of the pound sterling, the franc
and Ira. according, to stories now 90
Ing the rounds of the New York whole
sale district. si.'
The only Fly m the ointment" fol
the American buyers abroad is the
fact that. by presidential order sew.
eral weeks ago. United States consuls
are required to keep tab on big pur.
.chases, ascertain the selling price and
cable these facts to the United States
customs authorities. Then, by fgur
ing the rate Of exchange on the date
Of purchase. the government is enabled
to set proper value upon the goods
for the con action Of import duties. A
court OF claims passes upon what are
alleged to be unfair appraisals.
How II 10 Done.
The situation is said to be somewhat
like this:
An American buying pound sterling
say. on December IL, needed to pay in
American money only 1896 for British
currency normally worth about $4.S7.
Now he goes to factory in Noting
ham, England. to buy laces, and there,
although prices Of course are higher
than before the war. he pays for them
In this deprecated money and makes
handsome" profit. Then he ships
the laces to the United States, where
by reason Of the Imitation of the Amer
lean dollar, they are retailed for from
100 to $50 per cent above prewar
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
5.1Sh francs to the dollar, but now he
finds one Yankee "simoleon" will buy
11.52 francs, about 60 per cent more
than before the war. The price of
silks has gone up, but he goes to Ly-
ons. 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. 5.1Sh of
which, like the franc. could be bought |
FOR one American dollar. now at a vast |
discount. In fact, he receives 13.47 |
ira for one American dollar and, we'll |
financed, he goes to Naples. where he
regulates the purchase of tapestries
costing, Of course. more than in 1914,
tut in reality cheaper when purchased /
With the present Italian currency.
The same financial conditions exist
III over Europe, and In the former
'entral empires. Of course. they are
epOrted much worse. In the allied
however, where there Is ma
ional stability and greater ability to
'ay, the deprecated money is effect
ng some strange changes. A dinner
which. before the war, in Paris could
% had for q nominal cupo noun oocto |
rom 20 to so francs.
American manufacturers, mean
'hile. who desire to sell their products
broad, are demanding payment In
merican dollars at par. Recently the
'elgian government. 1t Is said, bought
0 American locomotives, for which
ayment, instead of being in BELGIAN
loney, was demanded in American
ollars, thus adding from 10 to 20 per
ant to the manufacturers normal
rofit. Naturally this discourages for.
gn buying.
Cancels Big Orders.
On the other hand. big American
connective concern. apprehensive of
e turn of political affairs abroad,
lie to delay over the peace treaty; is
ported practically to have cancelled
foreign advance orders. Such or
RS, calling for delivery In three. six
nine months, are said to be prac-
,ally nonresident in the locomotive ,.
ade. Similar conditions exist in 9th.
industries. That is why American
have been saying: If
e peace treaty is not soon signed It :,
II mean the complete loss of our !,
reign trade" !
There are committees of the most
ointment United States bankers and
siness men, representing the Ameri. Y
q Bankers association, the United
ates Chamber of Commerce and the
ternational trade conference, who q
We been at work on this problem of n
'eign exchange for months, and who 8
Il be ready to remedy the present a
uation as soon as the peace treaty a
comes a fact for the American ma. o
n. u