The Washington herald., 1920-02-16
WORLD TRADE
FOR AMERICA
Knocking at Our Door,
But Care Must be
Exercised.
FORESIGHT IS NEEDED
Political Chickering'S Abroad
Offer American Export
ers Rare Opportunity.
FORESIGHT IS NEEDED

ers Rare Opportunity.
THE precipitate decline of their
foreign exchanges to record low lev
els has brought the governments of
Europe to a realization Of the impos-
sibility Of continuing longer the pol
icies under which their economic life
was sustained during the war;" says
the Guaranty Trust Company Of New
York. 1t is now beginning to be seen
that the present situation arises from
their failure during the past year to
impose upon themselves and upon the
business interests of their several
countries such restrictions as would
have operated to reduce expenditures
to the point of bare necessity while
taeir basic industries were being re-
established upon a permanently pros
porous basis. While the conferences
of Tearing bankers and business men
have as yet brought forth no conipre-
hensive plan of relief. il Is apparent
from the numerous Individual express
sions of opinion that the evils of in
fiated currency and decreased produc-
ton in the face Of a world shortage
of commodities are at last understood.
Accumulations of gold. in some in
stances beyond anything known be-
fore the war, are no bar to declines
in the value Of currencies so long as
the central banks continue to Issue
their notes in settlement OF the or
dinary expenditures Of government
and to meet the still tremendous sums
that are carried in the Governmental
statements as war expenses. Appre-
IL IL o -
settlement Of the numerous questions
as to national boundaries, trade
routes, repayments, and reparations
which the treaty Of peace left unde-
cided altogether or dependent upon
fortuitous circumstances
The plain fact seems to be that
consideration of the economic well
fare of Europe as a whole has been
subordinated to national aspira- |
tions. For more than a year the |
chancelleries of Europe have been
given over to political chickering's. |
while business interests have been |
either neglected altogether or so |
hedged about by restriction incl |
dental to the maintenance of the |
war basis that all large efforts to /
solve their problems have been of
little avail. Now that the conse- |
quences appear in a depreciation of
exchanges to the danger point. |
there is every reason to believe |
that in the next few months Eu- |
rope will evolve some broad gauged |
plan for the rehabilitation of her
economic affairs.
Effect I'm America.
The American producer and ex-
porter are deeply concerned In all
this. 1t Is obvious that the immedi-
ate effect OF such a decline in ex-
change on Europe as that recently
is a cancellation Of orders
and an obligation upon the Euro
pean importer to make future con-
tracts with greater discrimination.
English cotton goods manufacturers
are reported TO be cancelling orders
already. and even to be reshipping
raw materials from their ware !
houses. Probably that method of
solving the problem will not go far, /
because Europe must have large !
of foods, raw materials, !
and machinery in any event, but /
there will be a wholesale cutting
of luxury imports. Such things as
must be bought will be more rigidly
inspected. The inclination of Eu-
rope will be to look elsewhere for
her requirements, to accept substi-
tutes, unless the American exporter
can make the combination of quality
and price especially attractive. In
other words, the easy sellers mar
ket that developed during the war
will give way in some degree to the
necessity for greater caution and
now imposed upon our /
customers. This ,possfufr-
ity is a challenge to the far-sighted-
ness of the American producer Here
Is his opportunity to test his abil-
ity to compete in a world market
before his competitors have entirely
freed themselves from their difficult
ties. All the chances are in his
favor. but he must exercise greater
care than was needful during the
war period. Frequently he win have |
to let the present shadow go in
order to make sure of the future |
substance. 1t is a time full of op- |
for the trader Of broad |
vision and fine appreciation Of the |
subtleties involved in holding a mar
ket.
Chicago Buying Heavily.
asia presents another interesting |
situation in foreign trade. Meas !
III