Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-07
n. Y. is BAROMETER
FOR PARIS CHANGE.
Bank OF France Cashier, Says
Initiative Comes From Out
side His Country
URGES BIG CUT IN IMPORTS
BY the Associated Press


Paris. Feb. THE Paris market ha!
little or nothing to do with the Huctua
tions of exchange quotations and the
upward trend of the dollar and sterling
according to Julien La Ferrier, cashier
of the Bank of France, whose name ap-
pears on every Bank Of France note
that goes to make up its circulation Of
IS, 900 ,000, 900 francs.
THE initiative always comes from
New York or London,' he said yester-
day.
THE cause for the rise in the dollar
and in sterling is simple and dates back
to March 10, 1910, In the nonrenewal
of credits advanced by the American nd
English treasures to the French Gov :
crnment during the war. the latter in
turn handing the credits to the Bank of
France, which managed to obtain dol
lars at a rate little over five francs,
stabilizing exchange at 5.45.
THE withdrawal of credits threw dol
lars into the open market and the trade
balance running against France caused
the gradual rise which was inevitable
and to be foreseen when the credits
were not renewed.
Speculation, although it may be in
strumental to a certain extent in the
rise. has comparatively little to do
with it.
1.-THE main reason for the sudden
jump in the price of the dollar, can be
laid to the fact that on certain days
American banks have large bills upon
France which call for payments of large
sums which must be realized at once.
This creates a stampede for dollars in
French circles in order that the bills
may be paid. Paris merely follows the
New York market.
1.-THE Bank of France Is helpless to
assist in the betterment of the situa-
ton in France unless credits similar to
those granted during the war are again
allowed. Such credits, however, afford
merely temporary relief. Permanent
must come from the intensif
cation of production and exports and
the ruthless restriction of imports
London, Feb. 7.-(By A. P.)-More
attention is attracted to the
exchange situation than to the demand
for the extradition Of Germans ac-
cused of war crimes.
Some newspapers say that the sus-
pension of imports Of cotton is IAN ex-
,ellent example, which it may be hoped
,ther traders will follow" Elswehere
It is regarded as a dangerous remedy.
ind fear is expressed that its cost will
eventually fall on British consumers.
Some newspapers remark that there
ire many things imported from America
hat could easily be dispensed with tenn
such as preserved fruits, vege
ables, chocolates, golf balls and motor
'ars, which have figured conspicuously
n recent imports.
The doctrine calling for increased
preached. The papers say
hat public and private expenditures, If
Unchecked, must lead to financial dis
ster.
The movement of foreign exchange
vas generally more favorable yesterday.
The movement was based on the grow
ng belief that combined action would
&c taken shortly. Several plans for
uch action have been suggested in |
nancial circles.
The one most favored, the plan be-
ieved to have been discussed at the
ecent governmental conference, is for |
he government banks of the world to
orm central committee, sitting |
ermanently IN London, with repre-
entatives of each bank as members and
he formation Of an international cur
ency committee backed by the credit
t the government banks to settle inter-
ational commitments.
1t is pointed out that this plan would
e likely to meet with a great deal of
pposition, bcause the banks here are
eriving profits from the speculative
Derations of exchange dealers