Evening star., 1920-04-03
GOVERNMENT TO HELP
WIN FOREIGN TRADE
Edge Act Brings Elaborate Ma.
chinery Into Service-The Move
ment of Gold.

From April Circular OF the National Oty Bank
Action by the Federal Reserve
Board in announcing regulations fol-
under the provisions of the Edge act
to promote foreign trade and finan-
cial transactions based upon long
term credits to foreign customers OF
American firms will make available
elaborate machinery for pushing
American trade abroad. This develop
ment, with the pronounced recovery
in sterling exchange. is of signin-
canoe in its bearing upon foreign
trade affairs. Notwithstanding the
hindrance of adverse exchange rates
the story of merchandise exports IN
February was remarkable. that month
showing the highest export volume
ever reported for the period. with q
total Of $646.00O, 900 as against $5s5.
600. 900 in the same month OF 1919.
For the first eight months OF the
present fiscal year. total exports OF
$5.231. 100000 showed a gain OF $S49.
nearly 5000. 600. 900 more than the ex-
port totals for the full fiscal year OF
1915-1916. February's merchandise
imports of $467.000.000 was also new
high record for that month. showing
a gain for the year of $232,0eO.Ooo ano
being only slightly below the record
import level touched in January. The
margin of exports over imports. how
ever, in February was only $4,000.
900, as compared with $349.0oo.0Oo in
the same month of 1919.
The Gold Movement.
The governments figures touching
the outward gold movement are also
very striking, showing a net loss for
this country in February of $3S.633,-
So1, most Of the gold going to Argen..
tina and China. This brings the total
loss on our export gold movement for
the first eight months of the present
fiscal year up to $319,462,061. as
against a loss Of only $S,096.518 in the
corresponding months last year. Sucn
a huge gold loss for a country having
merchandise export balance for the
first eight months Of this fiscal year
amounting to $1,996.0o0,000 is quite
extraordinary. being explained. OF
course, by the exceptional movement
to South America and the east, In
the course of time 1t may be partia1iy
Offset by the inflow of South; African
gold and the large remittances In
connection with the paying on Octo-
ber 15 Of the $500.0oo,ooo Anglo
Franch loan.
IT is apparent, however. that Eu.
rope cannot afford to make hugo goio
remittances to this country at time
when she is compelled to provide fol
prodigious outlays for the restorataon
of her crippled industries. On sa sne
other hand, it is becoming each DAY
more apparent that genuine hnancia
regeneration Is well under way abroad
especially in Great Britain, as Is fnd1.
Gated by the growth of her expor,
trade and the rise In London exchange
in this country.
without; Dssturbanee.
PAYMENT last month to the govern.
ment of nearly $1,000, ,0o0.0 900 for In
come and excess profit taxes, togetnei
with theadjustment OF the immense
Indebtedness growing OUT it,nnt ot .ne in. nm.
due disturbance in the money markee
The combined account. however. rep
resented probably the heaviest aggre:
gate March payments ever maze 1ne
put the, federal reserve system 70 an
other severe test. Rates LOT ootn e.
poration and mercantile accommoua
ton ruled very firm. the credit strnir
being materially increased by; the
large volume of business done at ar
exceptionally high price lever. Tnefe
was further forced HQufdanon J: OF
stock exchange loans and banks ksn,
orally found It necessary. to curtai
advances to borrowers engaged. ir
speculative operations. II Is apparent
also that the large withdrawale o.
export gold were an important factor
in weakening the reserve basis. OF the
federal reserve system at time swher
the country's financial resources were
subjected to particularly acute
strain.
The American people are building
houses as fast as possible, 50 as to IN
sure having a placeto lay their heads
New building operations In February
alone exceeded $112.600,O00. this tota-
=
the same month last year. The situa'
tion in this respect is quite extraordi,
nary, for the country Is still short Of
dwellings,, tbs deficiency In the United
States being even more acute than N
England. where 1t has been estimated
that 500, 900 new structures are needed
to shelter the population. Several
large building projects have been held
in abeyance by the high cost OF build.
ing and the dimculty of procuring
sufficient labor.
Railroads to Spend 9000, ,00osSO0.
Now that the railroads have been
returned to ownership control. the
people are demanding that they shall
be fairly dealt with and that the
roads shall be given high enough
rates to enable them to provide the
service which the country requires
Under the provisions of the railroad
law, q $300.000.00 fund has been es
tabiished to make loans to the ran
roads during the next two years. these
loans to be repaid in five years at
per cent. Inasmuch as the roads need
to expend this year twice that sum
or $500, 100000, the question arise.
whether they will be able to marke,
their new securities with the invest
ing public High-grade Industrial cor
nnrations of large earnings are pay
Ing from to 9 per cent for new CAPT.
tai while the railroads are not per.
mifted TO earn more than 6 per cent
on the total valuation Of their proper
ties.