The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-24
EXTENDING FOREIGN
CREDIT ADVOCATED
Best Way to Meet Present EX-
change Situation. Declares
C.. NJ. Muchnic.
FRANCE MAKES PROGRESS
Spanish Social and Industrial
Conditions Are Greatly
Unsettled.

q. NJ. Muchnic manager Of the FOR
sfen gales department of the American
Locomotive Company, who has Just re-
turned from a business tour of western
Europe, declared yesterday that the best
way that American manufacturers could
meet the present exchange situation ana
continue to do advantageous business
with European customers was 10 uullze
their maximum credit in this country
and extend that credit to their clients
on the other side OF the water Mr..
Muchpio reported that in addition to
the order for fifty locomotives for the
Parts-Orleans Railway, which the COM
pAny had announced that he had re-
ueived, he was given also an order TOT
4%n Pacific type locomotives for the
chemjns de Fer de Province de Santa
Re, q French railway company operat-
ing in the Argentine. Those engines. he
said. were 20 be the duplicates OF TWEEN
~ others which were ordered last year
and would be completed in the company's
plants during the first three months OF
next year
"The general situation in France Mr..
Muchnic said, 81 found very much inn
proved since my visit last year. While
there Is a decided slackening in many
Enthusiastically textiles and automo-
biies--the labor situation is all that
could be expected considering what
France has been through during five
years of war.
"The working people as we'll as the
business men have every confidence in
their Government. which makes for in
dustrial and business stability and
sugurs well for the future.
UnsettIement In spain.
sSr1.. na.;o1 ,,a ;,a,,tr;oI conditions
N Spain / found quite unsettled, and
likely to remain so until after the gem
eral elections to take place this month.
The controversy over an increase In
railway freight and passenger rates APP
pears to be the principal political issue
In the campaign The railway service
in Spain is very much disorganized, due
to lack of locomotives and cars. The
cost of railway operation in that coun-
try has risen during the war and since
to such an extent as to cause severe
losses in operation. As all railways in
Spain are privately owned. the COM
panies found themselves unable to ac-
quire necessary equipment to give salts
factory service.
"A bill proposing substantial in
creases in rates, favored by the Govern
ment, was submitted TO the Cortes early
this year. After most futile discussions
II failed of enactment. and the Govern
ment dissolved the Chamber and called
for new elections. In the meantime n
royal decree was issued lending the
funds with which to purchase
equipment. such advances to be repaid
to the Government in twenty annual in
stalments bearing interest at the rate
Of per cent II is not probable that
the railways will take fun ADVANTAGE
OF this offer until assured of substantial
Increases i'm rates 20 permit earnings
enough to pay back the advances the
Government offers.
"The financial conditions in Spain are
on the other hand. very sound and there
is no scarcity Of funds. The high cost
Of the dollar in Spain. France and
other countries initiates very effectively
against our making sales abroad. 1t is
a very serious handicap in our foreign
the full import of which is
not yet grasped By our business men
and manufacturers.