Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-15
MANY PROBLEMS
MET BY EXPORTERS
European Dilemma Generally
Believed to Have Been
Greatly Exaggerated
QUESTION OF CREDITS

While the new year is but few weeks
old. exporters are experiencing as many
handicaps as if not more than, they met
in 1919, which will always be looked
twelve months in the country's history.
A great many of the problems which
confronted the foreign trade last year
remain unsolved The more import
ant of these is the seriously adverse ex-
change, which is greatly hahdicapping
trade with some of our best foreign
customers
This is now supplemented by the
cloudy political and financial out'ook. IN
Europe and doubt as TO the position
which the United States will take IN
Strengthening out the poStw war at
fairs of the world. The serious con-
dition of war ridden Europe mas been
pictured rather gloomily by Sir George
Paish in recent addresses at different
banquets. A great many are OF the
opinion that Sir George has overdrawn
bis picture and perhaps exaggerated the
European dilemma. This idea has grown
since the frank statement made by MIR.
Hoover.
Regardless of the diversity of opinion
of these accented experts, the fact re.
mains that Europe is sorely in need of
money and raw materials. 1t SINNERS
down to q question of credits and how
these credits will be arranged. Sir
George asserts Europe's needs in the
next ten years will approximate $40,
00O, 600. He likewise pointed out that
ann further break down in the foreign
exchange will bring a situation little
short of a world calamity.
Those who believe that the fall in the
exchanges with certain European coun-
tries must bring about collapse OF our
export trade with these nations have not
been backward in spreading their mes
sage. In truth, there are already rea-
sous for believing they have overdone
it, and the real situation, as MIR. Hoover
points out, is not quite as blacK as IL
has been painted.
As the Philadelphia Commercial
Museum says in reviewing the foreign
trade situation:
"New financial machinery has been
provided. for example, which makes it
possible to extend credit and trade to
worthy but temporarily financially en-
barrassed foreign customers. This
credit making machinery mas not been
designed TO provide any sudden spec
tacularly large credits to Europe, nor
is anything Of the kind to be expected
or desired. As the weeks and months 60
by, however. it will be surprising II
every desirable result is not accom-
plished and the foundation laid for Il
largo and lasting foreign trade growth
commensurate with the size. wealth and
population of the country.
nal-, t1n ION TpE n no q
situation more directly, there are GER
tain other aspects of the situation which
give much encouragement. In the first
place the huge November exports tes-
tfy to the suspicion that exports to
Europe are being affected to much less
extent by the exchange depreciation
than was generally expected. 1t is in :
creasingly evident that Europe must
have certain goods now in spite of the
temporary hardship of an adverse OK
change.
''On the other hand, should the food
need of Europe decline with the passing
of the current winter the exchange
market will soon be relieved of bills
totaling TO large amounts, with con
sequent encouragement to recovery.
Moreover, any tendency toward further
depreciation should bring into play ad
ditional counteracting forces. 1t must
not be overlooked. for instance, that
England, France and other European
countries hold extensive investments ir
South America and elsewhere. Should
there be any further decline in the ex-
change with these countries, it may be
found advisable to transfer such in.
vestments to American ownership. 4
movement of this kind would do much
to remedy the adverse condition