The Birmingham age-herald., 1920-04-19
coon TIME TO PAY DEBTS


 I have not time for discussion of the ,auses and general effects of credit ex- pansion, but I do wish to say that while in terms of commodities the purchasing power of the dollar is far less than it was 1 in pre-war days, there has been no de- | cline in it's debt-paying power While one cannot buy with the S200 which he re- ceives for bale of cotton today as much | food and clothing or as much gasoline as could have, been exchanged for $loo a few years ago, you can still pay off s2O0 of indebtedness with the proceeds. There has never been a time within the memory of the present generation so fa- vorable for the payment of debts as the present, and I would strongly advise those of you who have money in the bank or surplus of salable crops and have at the same time some indebted ness which is not pressing not to yield to the temptation to buy something which you do not need but on the other hand to avail yourselves of the extremely fla vorable conditions which now exist and liauidate or reduce your old indebted ness.
 A year ago we were still in the midst of period of hesitation and uncertainty which followed the armistice. Adequate oo can transportation was not available, for transports were being used in bring ing back the 100000 soldiers who had been the great cotton using countries of Flu rope were financially exhausted and 1t was realized that if the normal amount Of cotton was to be sent abroad. not only was the transportation problem to be solved but the still greater problem of credit facilities The total value of our exports during the year 1919 ex- ceeded imports by more than $i,0O0. 1000. Of this amount about sl, 750. .000,000 wal taken care of out of advances made by the United States treasury as author ized by wartime legislation. The remain der has been financed in various ways. It is probable in many cases that pay n ent has been accepted by exporters in the form of European bank credits, for not until quite recently has there been any movement of gold from Eu- rope to America since 1916. and the im- ports thus far have been compara lively small in amount and totally inadequate for the financing of Europe's large ad- verse trade balance. Our own banking statistics would indicate that very sub stantial credits have been given by banks in this country to manufacturers and exporters who have sent gods to Eu- rope.
 From August 1, 1919, to April 2. 1920. total exports of cotton from the United States amounted to 5.1S4.Sz2 bales, of which 2S72,312 bales went to Great Brit I0. other countries. This compares with to- tai exports for the entire season ls1S-l9 of 3514269 and for the entire season 1917-18 of B. 356 142 bales. The cotton pro- ducer is vitally interested in the con- tinuation of exports. at least in the present volume.
 ABILITY TO SAVE CREDITS
 There is no question as to the need for cotton, but whether or not this need will develop into an economic demand de- bends upon the ability of consumers on the other side to pay in cash or failing that, to secure credits. It is difficult to secure accurate information as to conditions in Euroupe reports are flicting The complications which have within the last few days arisen between France and Germany are disturbing fac tors as is the situation in Russia. Never theiess. when everything is considered it seems likely that the economic posi- ton of Europe as whole is better than it was year ago. Great Britain appears to be making rapid headway to- ward regainng it's old-time position in world commerce and finance, and the marked advance IT. sterling which has taken place in the last 60 days is both an indication that this is true and an assurance that the progress made will be sustained. Goods can be exported to Great Britain more readily with sterling at a discount of Is per cent than when the rase of discount was 8 per cent Ths productive capacity of France and Belgium has increased during the past F months. although the depreciation in the exchanges of both these countries