The Washington herald., 1920-03-19

London. March 1S.-Whether view
ed from the position Of bankers
manufacturers, traders or consum-
ers, conflicting trends of opinion
are everywhere to be observed. The
banking world has become adapted
to the deprecated exchange and Is
apparently convinced that II will
last a long time. Stability 10 really
more important than recovery In
the immediate sense, and stability
Is attained through the purchase OF
exchange covering long periods.
The volume Of commercial i'm
ports and exports, excluding gov
ernment-controlled importations, Is
such as to enable the banks to sell
exchange to the importer and ex-
porter for future delivery up to q
year. This system amounts to an
insurance, in which the banks risk
little and the trader gains much
Operating in this way the manufac-
turer Is able to erect a cost-sheet
for operations covering manufac-
ture both for domestic needs and
for export. Essential to the sue
cessful working of this system is
the fact that the pound sterling
stands midway between the dollar
and the more heavily deprecated
cure ncies of the Continent. The
trader tends each day to buy less
with the dollar and more with the
franc, lire or mark; and to sell
more to the dollar and less to the
franc. lire and mark.
In the total sense it Is becoming
each week less true that the United
Kingdom in effect buys from the
United States and sells to France
and Italy. Under these circum-
stances the position of the pound
sterling Is not nearly as difficult
for the manufacturer. trader and
banker as would naturally be as
sumed when measured directly by
depreciation In figures. Upon the
consumer on the other hand the de-
probation Of the currency exerts a
steadily increasing pressure. Prices
are continuously rising, and the
subject will occupy the attention of
Commons In the very near future.
1t was the hope Of the authorities
to accomplish de-control by Aug
ust but this cannot now be attained.
De-control in the face of rising
prices becomes difficult.
situatien M to Provisions.
The United Kingdom. is short in
butter. wheat and wheat products,
and sugar; long in refrigerated
meats, fats, wool and rubber, Stocks
Of raw cotton are in a satisfactory
situation. There are still stocks of
unliquidated copper, but the rise in
tin Is cause of considerable en-
barrassment. According to present
information the failure in the wheat
crop In Australia will throw the
United Kingdom upon North and
South America next year. 1t has
just been determined to fix the
guaranteed price for wheat for this
year at rs shillings per quarter and
for next year to allow home grow
ers the play OF the market up to
100 shillings per quarter or to the
average cost Of the imported quar-
ter. whichever Is lower. This po-
sition Is entirely unsatisfactory to
the farmer, because North Ameri-
can wheat now costs c. I. (. United
Kingdom 12I shillings per quarter
or more.
The shipments of butter from
Denmark to the States have pro-
duced a painful impression in Lon
don. In the United Kingdom are
over 100000 frozen carcasses of
beef and mutton, much of which is
lying In refrigerator ships await
ing discharge. The shipment of
New Zealand mutton to- the United
states will afford desired relief
here, though the Interpretation of
our powers Of consumption aroused
by this transaction Is not compli-
mentary to us. The States may be
expected to import Australian rab-
bit next!
Sugar 10 very scarce, to the aver
age consumer scarcer than during
the war. The United Kingdom Sc.
cured no sugar from Czecho-Slova-
kia. The Britisher Is speechless at
the suggestion that British pur-
chases of Cuban sugar were re-
sponsible for the scarcity Of sugar
In the United States during the
closing months OF last year. De-
spite the painful shortage, a heavy
excursion into the Cuban market
will not occur 30 long as the pound
sterling brings home less than
thirty-five pounds Of raw sugar.
Dercontroi Of sugar is not to be
thought OF.
with the denreci.tton AZ ~