Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-01-02
CREDITS VITAL
ISSUE IN 1920
If Nation Is to Maintain It's
Position Exchange Must
Be Stabilized.

| CHICAGO, Jan. 2-The National City
bank in financial letter issued today
says:
THE new year opens under exception
ally interesting conditions with many
important problems unsOlved. These re-
creation Of large credits for the protec-
uon of American trade abroad, the
movement of foreign exchange rates, the
financing required by indr t-ial and
eign borrowers, and the need Of secur-
ing better cooperation between capital
and labor.
There has never been greater confu-
sion existing at this season touching
a variety of these questions. On tbs
other hand, there exists genuine on
| ability of American producers and mar
ufacturers to extend their trade abroad.
| me country is making progress eau
tiously. Holiday business last month
broke all records with total sales OF
nigh priced merchandise at unprecedented
figures.
ut is also true that the turnover rep
resented by the Christmas business was
greater than ever before since merchan-
disc prices were the highest ever known,
and the so-called luxury buying'-that is
the demand for the best grades of mer-
chandtse-WaS unparalleled Christmas
buyers this season demanded the best
| that the market had to offer and were
content with nothing less.
BIG BALANCE
IN FAVOR OF U. S.
The importance of the foreign ex-
| change problem and its bearing upon
our foreign commerce is demanding more
attention.
The government figures Of exports and
imports during November showed that
our foreign commerce in that month dis
closed the second highest totals on record.
The value of exports at $741 100000, COM
pared with $632 O00, 900 in October, and
$o22, 100000 in November, 1918. I'M
ports of S429 100000 also showed striE-
ing gain comparing with S402 900, 600 in
October and only $251 100000 in Novem-
Der the year before.
Taking the eleven completed months
OF 1919 total exports stani at 81 242 000, 600
and imports at So, 52S, 600 600 leaving an
International trade balance in favor of
the United States of So. ia 100000. These
ngures are very suggestive and mean
that since the. close of 1915 this coun-
try margin Of exports over imports has
reached Sl3,204, 100000 Such a showing
IS unprecedented and explains as moth
ing else can the world wide demand for
american exchange and the exceptionally
hlgn rates which it commands everywhere.
Encouraging as such a huge export
excess is. 1t is clear that we shall Oh
tain relatively little trade unless liberal
credits are given by American manufac-
4 turers, merchants and exporters with
goods to sell. It is absurd to think that
we can trade with Europe on fhe basis
OF cash settlements and make the most
{
American business abroad.
he problem of providing these cred
rs Is by no means easy. since the set.
| Elements must proceed along sound lines
and the amount involved is probably
greater than that represented by any
similar operation undertaken by Amerf-
can bankers The, Edge measure fun
nishes one mode of relief but it is too
early yet to tell Just what ttis assist
ance will amount to.
NATION on BASIS FOR
CONTINUED PROSPERITY
There is the most urgent need for
better cooperation between employer
aud employed. for the indications are
that the productive machinery of this
country VIII be put to its greatest test
this year. The whole world is short Of
American merchandise and docestic de-
mands are so heavy as to force con
sumers to bid against one another.
Some Roadway has been made toward
lowering the price of certain commodI-
ties. but average living expenses are
nearly as large as they ever have been
II the various index figures may be
taken as a trustworthy indication Of ac-
tuaI living conditions.
The figures lately given out by the
department of agriculture show a Yalu-
alton for this seasons crops of more
than fourteen billion dollars This show
ing is unprecedented and indicates that
the american people have greater wealth
than they ever had before and that we
have the basis for continued prosperity.
. ne coming year IS likely 10 be one
of record financing and unless unfore-
seen disasters should be encountered,
a period Of remarkable Industrial ex-
pansion for this country. 1t promises
also to be a year of highly important
legislation.
within five months will come the ma
tional conventions which viii place in
nomination the presidential candidates.
There will also be the third party issue
TO consider, which means that the labor
question Will be the dominant one in
the campaign. The woman suffrage
amendment and the very striking effects
CT national prohibition Will be other in
fluences which will bear watching during
what promises to be a most extraordi-
nary year.
although 1t is impossible to forecast
the movements Immediately ahead, there
are excellent grounds for taking q hope
full view of the longer future which
promises to witness extraordinary. ex-
pansiOn In the United States"