Evening star., 1920-02-14
j, s. TRADE WITH
AUSTRALIA HARD
HIT BY EXCHANGE
Slump in British Sterling Is
Turning Business From
America to Europe.
BY THOMAS 5. ANDREWS.
pecial Correspondent Of The Star.

HI THOMAS =. ANDREWS.
Special Correspondent Of The Star.
SYDNEY. Australia, January 20-
For the past fifty years the manu-
facturers of the United States have
been gradually building up a sub.
stantial trade with Australia. 1t has
taken much hard work on the part
of representatives and others to get
a share of the business that former
ly belonged almost entirely to Euro 2
work is being knocked sky-high on
account OF the money exchange be-
tween the two countries.
With the pound note. which under
ordinary times would bring $4S6 in
the states, reduced to $3.50 or there
simply left out in the cold Business
that should be pouring into Ameri-
can houses is being turned to Eu-
rope.
Loss Orders Run Into Millions.
During the past few months. with
the value of the pound dropping
America has lost orders running into
say. but backed by documentary EVIL
dence in the shape of letters and can
cellations by cable.
A big business firm of Sydney. rep
resenting many large companies in
the United States among which may
of Parkersburg. w. Va: Collins q
Co. of New York. axe manufacturers:
Hazel-Atlas Glass Company. Wheel.
ing. w. Va; 1ver johnson Cycle
Works of Fitchburg. Mass; the
Standard Tool Company, Cleveland.
Ohio; the Russell-Jennings Company.
Chester. Conn: Wright Wire Com
pany, Worcester, Mass: 4. NJ. Town
send G. Co. of New York. textile mills:
c. c. Belknap Glass Co., Seattle, Wash.
and Brinnis Tool Company. Los Angeles.
say they are about to give up American
connections unless something is done at
once to relieve the money situation.
Glass Businexs n Pointer.
AS an illustration. it may be pointed
out that heretofore all the glass busi-
ness belonged to Europe. especially
Belgium. During the past few years
America was able>to annex most all
of it.
representative of the Sydney firm
is authority for the information that
he was obliged to cancel one order
for 100000 worth of glass, and had
stopped orders during the past three
months reaching over $l.50O.00O. All
of these orders were turned over to
Belgium and Italy instead. where the
pound note is worth % shillings. in
This makes a difference of over 30
per cent. az the loss is over 25 per
cent in the United States, while in
Belgium and Italy there is a premium
Of that amount.
Auto Trade Gets jolt.
A textile company, with twenty
mills in the United States. had one or
der of 10000 dozen of ladies' hose
Cancelled along with other orders.
hs
given an awful jolt. One agent In
Melbourne had orders for 700 cars.
while another in Sydney had nearly
| 500 sold, with others amounting to
| over 500. making total of 1000 cars,
all Cancelled on account Of the money
exchange.
The United States was getting all
the big orders for lawn mowers. axe
handles and other articles of the kind
but the money exchange has driven
the business to Norway and Sweden.
| immense orders having been given to
these countries in the past two weeks
Half Million Order Lost.
One firm in the United States lost
an order for over a half million dol
lars for axes and handles alone.
Speaking of the matter A. ]. Slut
senting many American firms. said:
"Tt is regrettable that the money
exchange trouble should come up just
at time when prospects Were so
bright for big trade between America
and Australia. Our people have been
| working hard for many years to
foster trade between the two coun-
tries, but it seems that just at time
when things looked brightest our
| hopes are dashed to pieces on account
of the loss in exchange.
War Changes Everything.
There was a time when England
France and Germany had everything
their own way and it was a hard
matter to break in. Some Of the
firms were content to keep on doing
business on the old basis with their
European friends. but the war chang
ed everything. 1t gave the manufac-
turers in the United States an op-
portunity to get in with their goods
and prove their superiority in some
| respects.
1T was also desirable to have
American goods. owing to the quicker
transportation facilities. which meant
much to the business men here.
Trade Gone with One Blow.
"It has taken a long time to build
up the trade and now il seems to have
gone with one blow.
There is absolutely no reason for
such a difference in money between
the two countries, and I think the
matter should be taken up by the
United States government and also by
the Chamber of Commerce of the
United States, for IL is most important
to the manufacturers Of America