Free trader-journal. (Ottawa, Ill.) 1916-1920, 1920-01-08
DOLLARS RISE
FELT IN TRADE:
Disarrangcmcnt Of Exchange
Makes Fore'gn Commerce
Balances incXaot Sum.
RATES FAR F.3IM GOLD PR
situat on Affects Cnly Europe. and
Is Small fastcr in N1t,or's for
ei1a 1usines- JlJ Gains
From GGuth America.

Washington Tie apparent increase
in American imports trom Ehfup'ah
countries in recens month, l. more
apparent than reat according t. l'r.
Philip Il Kennedy. director Of the iI-
reau of fore IN and domestic c"'L-
meret. Becaust most OF he imports
received from European countries,
W here the AmeriCau dollar c"nmaud0
large premium, are valued hy the
custom house authorities al the par
OF exchange rather than AT the go
ing rate in the exchange maf6et ma
ports from those countries are fuitgu
ut considerably more Han heir actual
worth IN the official Statements is
sued by the department Of commerce.
Decor Kennedy explains this siiuA-
ton as follows:
Situation Explained
"The situation results from TIE
close association of collecting duties
and collecting statistics. lJtiabie
value for assessing I'd yaIorrm duties
is the foreign value converted into
American dollars TIE conversion IS
made normally at par according Z"
statement based on the gold content
OF various cons prepared quarterly
bv the director Of ght mint and pro-
clnimed hy the secretary Of the treas
ury. When an invoice IS made out IN
focal currency circulating IN DE eN-
porring country below par as COM
raresl with the standard gold eurreh-
cv Of that country the consul ceri-
hes the percentage Of depreela non.
sad when The shipment is entered
here the foreign value is corresponds .
nigIv reduced This method worked
Nell prior Ia the world war and >tilI /.
works well in the case of Italy. Ia
that country the paper IRA is admit
tedly worth Tess than the gold IRA
sud our con>uls can accordingly r"r- .
lifv as to the percentage Of deprecia- F.
Lion. In France and Great Britain on .
the other hand paper money X sun +
legally ut par with gold. although 'he .
difficulties Of etTectine conversion are
serlous
This was the situation w to the .
middle If This month. when the pros
i.et,, amended ,le consular reZula- F
t.ons 80 AZ to permit consul, - GER I.
tfy to lie exchange rate betWeea the .
local currency and the American dol .
far Az soon ns this regulation comes
{nto etfpct---that iS rs soon ~ The IN .
vuices that are noW being certified by
our couSus come up for entr}--tiie +
statistical NNIu"s reported VIII be The /.
actual vaiur Of foreign moneys aS !
shown By ;hc prevailing exchange .
lute. Euf FOR the past he values re- /
corded for many foreign countries
have been roo high hN the difference
between the ctrrcn exchange rates
and the par value OF foreign coins.
Affects statiatics.
1T may he Of interest to Indicate
how far the valuation affected status
lies for thp last few AonthS, III he
grand totals The nnccurarN is not
large. although 1t does eXaegerate
somewhat the apparent increase in
imports and cor.e9pondingiy II I'M
aerStatps the export trade balance.
DAG big gains in Imports for Stpjrm-
her. which have aroused 50 much pub
lie continent. nave been in the main
frun non European cothtrle". and are
accordingly not affected By the car
.,,,,,.,, s.itt,.tinn ''t,. tn{1l ,,.4 n for